Ch 1 : Characteristics Of Property And Value
Influences on real estate value and the legal considerations in appraisal
- 1.Property is best defined as:
- A.
Real estate
- B.
Real property
- C.
Personal property
- D.
Anything capable of being owned and gained lawfully
- 2.Which of these is considered real property?
- A.
Cut timber
- B.
Airspace
- C.
Trade fixtures
- D.
Jewelry
- 3.Which of the following is not one of the tests of a fixture?
- A.
Method of attachment
- B.
Time of attachment
- C.
Adaptability of the item
- D.
Relationship of the parties
- 4.Tenant Bob installs a ceiling fan. Bob informs landlord Pat that he will re-install the old fixture when he moves. Of the five tests of a fixture, this is an example of:
- A.
Intention
- B.
Attachment
- C.
Relationship
- D.
Adaptation
- 5.In legal terms, _______________ is a general term for various legal rights, which attach to certain types of information, ideas, or other intangibles.
- A.
Intellectual property
- B.
Industrial property
- C.
Chattel fixtures
- D.
Personal property
- 6.The primary difference between condemnation through exercise of the power of eminent domain and condemnation through the exercise of police power is:
- A.
There is no compensation necessary in the exercise of eminent domain.
- B.
There is no payment involved in condemnation under police power.
- C.
One is a power of the public body, and the other is not.
- D.
There is no difference.
- 7.In most cases, when there is a conflict between a public (governmental) restriction on a property and a private deed restriction, which one must be adhered to?
- A.
The public or governmental restriction
- B.
The private deed restrictions
- C.
The one that is most restrictive
- D.
The one that is least restrictive
- 8.Privately owned real property in most states is subject to real estate taxation. Exempt properties may include:
- A.
Churches.
- B.
Schools.
- C.
Non-profit organizations.
- D.
All of the above.
- 9.For an appraiser, value is:
- A.
Always a fact, never an opinion.
- B.
Not a fact, it is a qualified opinion.
- C.
Based on fact and is an unbiased opinion.
- D.
Neither a fact nor an opinion.
- 10.Price is the amount asked, offered, or paid for a property. Once stated, price:
- A.
Must be disclosed publicly.
- B.
Is relevant only to the buyer and seller.
- C.
It a fact, whether it is publicly disclosed or retained in private.
- D.
Is not related to value.
- 11.The value of real property is best measured by:
- A.
Demand, depreciation, scarcity, and utility.
- B.
Cost, demand, transferability, and utility.
- C.
Cost, feasibility, utility, and scarcity.
- D.
Demand, utility, scarcity, and transferability.
- 12.The ultimate test of functional utility is:
- A.
Design.
- B.
Marketability.
- C.
Utility.
- D.
Maintenance costs.
- 13.According to the USPAP, the most probably price that a property should bring in a competitive and open market under all conditions requisite to a fair sale is known as:
- A.
Market value.
- B.
Marketability.
- C.
Market price.
- D.
Market stability.
- 14.A sale that is characterized as an arm's-length transaction is a sale:
- A.
Between related parties.
- B.
In which all involved parties act in their own self-interest.
- C.
In which either the buyer or seller is acting under duress.
- D.
That includes creative financing or sales concessions.
- 15.As used in appraisal agreements, investment value is not market value, but is value to a(n):
- A.
Individual.
- B.
Appraiser.
- C.
Assessor.
- D.
Broker.
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