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This test is made up of practice exams given to us by fellow trainees and peers. Please check answers if you are not sure with these. Please email me at johncmarquez2@yahoo.com (or text!) if you feel any of these answers are wrong. Thanks
John Smith
Quiz by John Smith, updated more than 1 year ago
John Smith
Created by John Smith over 8 years ago
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Resource summary

Question 1

Question
The greatest possible degree of ownership in real property is
Answer
  • Fee Simple
  • Estate at Will
  • Estate for Years
  • Life Estate

Question 2

Question
What type of ownership has definite rights of survivorship?
Answer
  • Joint tenancy
  • Tenancy in common
  • Severalty
  • Life Estate

Question 3

Question
An appraisal is:
Answer
  • A prediction of the sales price
  • An estimate of value
  • An estimate of sales price
  • A mathematically precise forecast of value

Question 4

Question
The boundary of a neighborhood might logically be set at
Answer
  • Jurisdictional boundaries
  • Well sharp change in economic benefits
  • A sharp change in economic benefits
  • All of these answers are valid.

Question 5

Question
Of the four essential elements of value, which of the following must be coupled with purchasing power?
Answer
  • Demand
  • Wantedness
  • Scarcity
  • Utility

Question 6

Question
Of the following conditions, which is most likely to cause the price to be different from the value.
Answer
  • Location
  • Supply and demand
  • Availability of financing
  • Uninformed parties

Question 7

Question
The bundles of rights includes
Answer
  • The right to occupy, exclude others, or to sell
  • The right to borrow against
  • The right to convey by inheritance
  • All of these answers are valid

Question 8

Question
When the title to property reverts to the state because the owner left no will or heirs, it is because of the government's right of
Answer
  • Reversion
  • Remainder
  • Eminent domain
  • Escheat

Question 9

Question
When should property be reappraised?
Answer
  • Newly constructed
  • Change of Ownership
  • Decline in Value
  • All these answers are valid

Question 10

Question
Which of the following are private rather than public limitations to property rights?
Answer
  • Zoning
  • Health and safety laws
  • Right to tax
  • Deed restrictions

Question 11

Question
Controls that arise from the government's police power include all except which of the following?
Answer
  • Deed restrictions
  • Zoning regulations
  • Subdivision requirements
  • Building and safety regulations

Question 12

Question
The Petersons found a home they like very much but decided not to buy it after learning the price. Their reasoning was probably based on principle of:
Answer
  • Anticipation
  • Highest and best use
  • Change
  • Substitution

Question 13

Question
A home which cost $150,000 is surrounded by homes priced substantially higher. Which principle would be most applicable to the $150,000 in a current appraisal?
Answer
  • Substitution
  • Contribution
  • Progression
  • Regression

Question 14

Question
Which statement is not true?
Answer
  • Value of property depends on the expectations of buyers and sellers.
  • An appraisal is a supportable estimate of value as of a particular date
  • It is not necessary to analyze market data for a letter report
  • Value is not based on the amount of sales commission.

Question 15

Question
An appraisal may be necessary to establish a value for:
Answer
  • Condemnation
  • Taxation
  • Lending purposes
  • All of the answers are valid

Question 16

Question
When a very expensive home is built in a neighborhood of small modest homes, the results will most likely be:
Answer
  • Increase the value of the smaller homes
  • Decrease the value of the more expensive home
  • Increase the value of the more expensive home
  • Not exert any influence on housing values in the neighborhood

Question 17

Question
The value of a property tends to be set by the cost of acquiring an equally desirable property. This is a statement of the principle:
Answer
  • Substitution
  • Balance
  • Competition
  • Appraisal

Question 18

Question
The interaction of supply and demand factors in real estate markets:
Answer
  • Adjust demand to supply
  • Creates value and sets price
  • Causes demand to decrease as the supply dwindles
  • Is highly predictable, allowing the appraiser to predict the future housing needs with near certainty

Question 19

Question
The first step in the appraisal process is to:
Answer
  • Gather the data
  • Inspect the property
  • Decided which approach to use
  • Define the appraisal problem

Question 20

Question
Which appraisal principle states that economic factors outside the property may have a positive or negative effect on the property's value?
Answer
  • Anticipation
  • Substitution
  • Contribution
  • Externalities

Question 21

Question
What term is used to explain the appraisal principle that states the value of a property is influenced by its being in harmony with the surrounding properties?
Answer
  • Substitution
  • Conformity
  • Anticipation
  • Contribution

Question 22

Question
Which of the following statements is incorrect in regard to a life estate?
Answer
  • It may be leased
  • It may be sold
  • It may be mortgaged
  • It is inheritable

Question 23

Question
A land use that existed before a certain zoning district was established and is currently not consistent with the restrictions imposed on land uses in that district is referred to as a:
Answer
  • variance
  • nonconforming use
  • transitional use
  • planned unit development

Question 24

Question
The process of a local government in exercising its power of eminent domain is known as:
Answer
  • police power
  • condemnation
  • escheat
  • urban renewal

Question 25

Question
Which of the following rights of government is based on police power?
Answer
  • Eminent domain
  • Taxation
  • Escheat
  • Zoning

Question 26

Question
What term is used to describe the value to a typical buyer?
Answer
  • Market value
  • Investment value
  • Sale value
  • Use value

Question 27

Question
When appraising property the appraiser must appraise the appraisal unit which is:
Answer
  • Land
  • Improvements
  • Commonly bought and sold in the open market
  • Properties under the same ownership that are continuous

Question 28

Question
The legal right of government to acquire private property for a public use or purpose with just compensation is known as:
Answer
  • Police power
  • Eminent domain
  • Condemnation
  • Escheat

Question 29

Question
What term is used for a transaction in which all parties to the transaction are dealing from equal bargaining positions?
Answer
  • Anticipation
  • Third Party market
  • Open market
  • Secondary market

Question 30

Question
Which statement is true about the relationship between the market value of a property and its sales price at the time of the property sold?
Answer
  • They are the same at that point in time
  • The price will always exceed market value
  • The market value will always exceed the price
  • The price could be more or less than the market value depending on the motivations of the buyer and seller and details of the transactions

Question 31

Question
A study of the supply and demand conditions in a specific area is referred to as:
Answer
  • Assemblage
  • Projection analysis
  • Economic base
  • Market analysis

Question 32

Question
In considering the highest and best use of a parcel of land to be improved with an office building, the appraiser determines the optimal land and building increments for the parcel. Which of the following economic principles does this illustrate:
Answer
  • Anticipation
  • Balance
  • Contribution
  • Substitution

Question 33

Question
Which of the following principles best describes the effect of an international airport on the value of a nearby residential subdivision?
Answer
  • Substitution
  • Highest and best use
  • Externalities
  • Conformity

Question 34

Question
Which of the following best describes what an appraiser does in rendering an opinion of value for tract of land?
Answer
  • Determines value
  • Calculate value
  • Estimates value
  • Predicts value

Question 35

Question
The primary reason an appraiser analyzes a neighborhood is to:
Answer
  • Identify the area of a zoning map
  • Identify and evaluate factors that may influence property values
  • Satisfy requirements of tax law
  • Determine assessed value for tax purposes

Question 36

Question
The process by which the appraiser correlates the indicators of value into a final estimate of the defined value is known as:
Answer
  • Averaging
  • Reconcilitation
  • Capitalization
  • Recapitulation

Question 37

Question
Poor room arrangement is an example of:
Answer
  • Functional obsolescence
  • Physical curable depreciation
  • External obsolescence
  • Physical incurable depreciation

Question 38

Question
In which case is it best to use cost approach?
Answer
  • Improvement is new or in its early life
  • Improvement is middle age
  • Improvement is late in life
  • Only when none of the approaches apply

Question 39

Question
When the improvement is new and represents highest and best use, the upper limit of real property value is usually found by the:
Answer
  • Cost approach
  • Sales comparison approach
  • Income approach
  • approach that measures the type of benefits of the subject property

Question 40

Question
How many acres are there in the parcel of land described below? "The SW 1/4 of the SE 1/4 of the NW 1/4, and the SW 1/4 of the NW 1/4 of Section 20"
Answer
  • 160
  • 90
  • 320
  • 50

Question 41

Question
Residential lots are often described by reference to their relation to streets and surrounding lots. Which of the following has the least thru-traffic?
Answer
  • Corner
  • Inside or interior
  • Cul-de-sac
  • T-intersection

Question 42

Question
The area of a township is:
Answer
  • 1 mile square
  • 6 square miles
  • 36 square miles
  • 27,878,400 square feet

Question 43

Question
Which of the following would you consider to be external obsolescence?
Answer
  • Normal wear and tear
  • Poor architectural design
  • Termite and pest damage
  • Change in zoning

Question 44

Question
The type of depreciation that is considered to be nearly always incurable is:
Answer
  • Physical depreciation
  • External obsolescence
  • Functional obsolescence
  • Accrued depreciation

Question 45

Question
Of the following property defects, which is least likely to be curable?
Answer
  • Deferred maintenance
  • Misplaced improvements
  • Lack of built-ins
  • Inadequate bathrooms

Question 46

Question
As contrasted with the term "reproduction cost," "replacement cost" refers to:
Answer
  • The cost of constructing a building that will be one of like utility as the one being appraised
  • The cost of constructing a replica building
  • The cost of reproducing the subject building
  • None of these

Question 47

Question
"Effective" age most nearly means:
Answer
  • Average age
  • Age perceived by the market
  • Original age
  • The difference between original and average age

Question 48

Question
When measuring for living or floor area, the appraiser uses:
Answer
  • Outside measurements including wall thickness
  • Outside wall measurements excluding wall thickness
  • Interior measurements only
  • None of these

Question 49

Question
Construction classification refers to the:
Answer
  • Type of use or occupancy
  • Type of basic frame, wall, floor and roof construction
  • The quality of construction
  • Number of stories in a building

Question 50

Question
The three methods of legal description for real estate are:
Answer
  • Metes and bounds; subdivision; rectangular survey
  • Lot, block and tract; base line and meridian; Government survey
  • Metes and bounds; rectangular survey; government survey
  • Metes and bounds; government survey; lot, block and tract

Question 51

Question
The process of reconciliation involves:
Answer
  • Averaging the closest estimates of value
  • Giving an average to each approach used
  • Primary consideration to the most reliable approach
  • Averaging all approaches, giving each equal weight

Question 52

Question
A particular improvement being appraised is known to have cost $122,000 in 1976, Your construction cost index indicates that today's costs are 58% higher. What is the indicated reproduction cost today?
Answer
  • $42,000
  • $172,000
  • $192,760
  • None of these

Question 53

Question
A means by which land is specifically and definitely located is known as a:
Answer
  • Reference to monument and reference point
  • Legal description
  • Government tract and policy
  • Metes and tract survey

Question 54

Question
Which of the following is true?
Answer
  • The bundle of rights is indivisible
  • Zoning is one example of a government restriction
  • Deed restrictions are examples of government controls placed on real estate
  • Property ownership rights are absolute

Question 55

Question
Which approach to value is considered to be the most direct?
Answer
  • The sales comparison approach
  • The cost approach
  • The income approach
  • None of these

Question 56

Question
The cost approach is more reliable when appraising
Answer
  • Developed housing
  • Income properties
  • Older houses
  • New improvements

Question 57

Question
The typical appraisal assignment is to appraise
Answer
  • The "fee simple" ownership
  • The value of the mining rights
  • The value subject to an existing loan
  • The leased fee

Question 58

Question
The cost approach is generally unreliable in the appraisal of older buildings because
Answer
  • Original cost figures are not available
  • Depreciation is difficult to estimate
  • Good locations maintain high values
  • Too much write-off has been taken

Question 59

Question
In the cost approach, value is estimated by:
Answer
  • Adding estimated depreciated cost new of the improvements to the estimated depreciated site value
  • Adding estimated cost new of the improvements to the estimated depreciated site value
  • Adding estimated depreciation cost new of the improvements to the estimated site value
  • Adding the estimate cost new of the improvements to the estimated site value

Question 60

Question
The replacement cost method most commonly used is:
Answer
  • Square foot
  • Segregated cost
  • Cubic foor
  • Quantitative survey

Question 61

Question
An item of accrued depreciation is curable if the cost to cure is not greater than the:
Answer
  • Reproduction cost
  • Replacement cost
  • Expected increase in value
  • Actual installation cost

Question 62

Question
An example of functional obsolescence is:
Answer
  • The advent of a freeway through the neighborhood
  • An outmoded kitchen
  • A change in zoning
  • A shutdown of vital industry in the area

Question 63

Question
A curable item of depreciation is:
Answer
  • A poor floor plan
  • Outdated plumbing fixture
  • A room addition
  • A change from stucco to wood siding

Question 64

Question
If the site value is indicated to be $80,000 of the total value in a particular neighborhood, how much improvement value would allocated from a $200,000 sale of a single family home?
Answer
  • $120,000
  • $8,000
  • $80,000
  • $200,000

Question 65

Question
A prospective use that represents the "Highest and Best Use" of the land must be:
Answer
  • Legally permitted
  • Physically possible
  • Reasonably probable
  • All of these answers are valid

Question 66

Question
The orderly plan of action in the appraisal of real property is known as which of the following?
Answer
  • Appraisal methodology
  • Appraisal objectives
  • Appraisal process
  • Appraisal purpose and scope

Question 67

Question
As it used in appraising, the term "reconciliation" means
Answer
  • The process of analyzing comparable rental properties and establishing a gross rent multiplier
  • The process of bringing together all of the sales in the area and analyzing them
  • The process of bringing together the values indicated by each approach so that the appraiser can form an opinion about the value of the subject property
  • The process of determining value by referring to the highest sales that have occurred in the neighborhood

Question 68

Question
For which of the following types of property is "price per acre" the term most often used as a unit of comparison for estimating the land value?
Answer
  • Dairy farm
  • Site for six-unit apartment
  • Site for a 4,800-square foot office
  • All these answers are valid

Question 69

Question
The principle of substitution can be applied to
Answer
  • The comparative sales approach
  • The cost approach
  • The income sales approach
  • All of the approaches

Question 70

Question
In the rectangular survey system a legal description describing, one quarter of a section contains
Answer
  • 160 acres
  • 40 acres
  • 460 acres
  • none of these are correct

Question 71

Question
A vacant lot measures 200 feet by 381 feet. What is its estimated worth if the land is valued at $20,000 per acre?
Answer
  • $20,000
  • $28,000
  • $33,500
  • $35,000

Question 72

Question
Excess land is land that is:
Answer
  • not as valuable because it is not necessary to accommodate a site's highest and best use
  • valuable, possesses significant utility and not needed to support existing improvement
  • always used for expansion of the existing impovement
  • not included in the estimated value of the property

Question 73

Question
The term "plottage" refers to:
Answer
  • value created by land that is not necessary for the primary improvements but is part of the economic unit
  • an increment of value that results when two or more sites are combined under single ownership
  • the results of a survey that is plotted on a map
  • none of these answers are correct

Question 74

Question
A lot measuring 130 by 200 feet recently sold for $71,500. What was the selling price per square foot?
Answer
  • $550.00
  • $357.50
  • $2.75
  • $5.50

Question 75

Question
A house has a living area of 1,900 square feet. An attached garage has a total area of 420 square feet. The building has an expected life of 50 years and an effective age of five years. The lot is worth $15,000. If it costs $50 to reproduce the living area and $25 to reproduce the garage on a square foot basis, what is the indicated value of property?
Answer
  • $94,950
  • $105,500
  • $109,950
  • $120,500

Question 76

Question
The proximity of a parcel of land to a supporting land use is referred to as:
Answer
  • Location quotient
  • Linkage
  • Highest and best use
  • Land efficiency

Question 77

Question
Which statement is true?
Answer
  • Value of property depends on the expectations of buyers and sellers
  • An appraisal is a supportable estimate of value as of a particular date
  • It is necessary to analyze market data for an appraisal report
  • All are true

Question 78

Question
Owner A gives owner B an easement across A's land to shorten the distance B has to travel to reach land he owns. The land B owns has benefited by the easement and is known as the:
Answer
  • Dominant estate
  • Servient estate
  • Lien estate
  • Estate in gross

Question 79

Question
A parcel of land 440 feet by 792 feet contains how many acres?
Answer
  • 4
  • 8
  • 12
  • 36

Question 80

Question
The description of the surface features of a parcel of land such as elevation or drainage is known as its:
Answer
  • Location
  • Plottage
  • Topography
  • Restrictive covenant

Question 81

Question
Which statement is true about the relationship between the market value of a property and its sales price at the time the property sold?
Answer
  • They are the same at that point in time
  • The price will always exceed market value
  • The market value will always exceed the price
  • The price could be more or less than the market value depending on the motivations of the buyer and seller and details of the transaction

Question 82

Question
Which of the following land is generally not considered income property?
Answer
  • Hotels
  • Undeveloped land
  • Office buildings
  • Apartment buildings

Question 83

Question
The houses in a neighborhood under study were all built around 20 years ago. Most are owner occupied and well maintained. In all likelihood, the neighborhood is in:
Answer
  • The development phase
  • The stable phase
  • Decline phase
  • Rehabilitation phase

Question 84

Question
Appraisers study real estate markets in order to
Answer
  • Identify changing price trends
  • Evaluate market reaction to property differences
  • Evaluate the strength of various economic forces
  • All these answers are valid

Question 85

Question
Maximum value results where properties in neighborhood are relatively similar. Select the principle which most applies:
Answer
  • Anticipation
  • Highest and best use
  • Conformity
  • Change

Question 86

Question
Value is the present worth of future benefits, according to the principle of:
Answer
  • Contribution
  • Highest and best use
  • Anticipation
  • Surplus productivity

Question 87

Question
The grantor is the:
Answer
  • Buyer
  • Seller
  • Renter
  • Lender

Question 88

Question
Which of the following is not an agent of production?
Answer
  • Land
  • Taxes
  • Capital
  • Entrpreneurship

Question 89

Question
The principle of increasing and decreasing returns says that maximum value results from adding to agents of production
Answer
  • As long as you can afford to do it
  • To meet the competition
  • Until they are in balance
  • As long as the total net return increases

Question 90

Question
The four elements which create value are:
Answer
  • Scarcity, demand, utility, capacity to private ownership
  • Utility, scarcity, supply, capacity to private ownership
  • Effective demand, immobility, durability, exclusivity
  • Supply, utility, desire, fixed location

Question 91

Question
The limitation on fee simple absolute property rights are:
Answer
  • Taxation, eminent domain, police power, liens
  • Taxation, police power, easements, escheat
  • Taxation, eminent domain, police power, escheat
  • Taxation, police power, escheat, liens

Question 92

Question
If the demand for homes remains constant and the supply:
Answer
  • Decreases, the value will increase
  • Remains constant, the value will decrease
  • Remains constant, the value will increase
  • Increases, the value will increase

Question 93

Question
An appraisal report can be
Answer
  • oral or based on the complete analysis required for a written report
  • oral or in writing
  • based on the market data or based on the highest and best use
  • narrative or writing

Question 94

Question
When making an appraisal for property tax purposes the appraiser is to appraise the property at:
Answer
  • The price that was actually paid for the property
  • Market value
  • The cost of the property
  • The use value of the property

Question 95

Question
Which economic principle is indicated by the statement, potential buyers of property consider prices paid for similar properties?
Answer
  • Conformity
  • Substitution
  • Highest and best use
  • Increasing returns

Question 96

Question
Which of the following is a true statement concerning the accessability of manufactured homes?
Answer
  • Manufactured homes purchased new after July 1, 1980 are subject to assessment for property taxes
  • Manufactured homes purchased new before July 1, 1980 are subject to assessment for property taxes
  • Manufactured homes not anchored to permanent foundation are exempt from property taxes
  • All manufactured home accessory structures are exempt from property taxes

Question 97

Question
Residential percent good tables provide the most reliable adjustments to replacement cost estimates of which of the following:
Answer
  • Residences constructed prior to 1940
  • Residences whose maintenance is typical of others of the same age
  • Residences located in non-urban areas
  • Wood frame structures

Question 98

Question
An agreement between the buyer and the seller on the asking price of a property is:
Answer
  • Always assumed to be market value
  • Market value when similar properties are selling for this amount
  • Never the market value
  • The market value only when the lender also agrees

Question 99

Question
A commercial lot 50 feet wide and 150 feet deep just sold for $70,000 cash. The sale price per front foot comes to:
Answer
  • $9.30
  • $466
  • $1,400
  • None of these answers are correct

Question 100

Question
The price paid for a property sold under conditions of duress most likely will represent:
Answer
  • A reliable indicator of value of similar properties
  • A reliable indicator of value of sold properties only
  • An unreliable indicator of value of similar properties and the sold property
  • An unreliable indicator of value of the sold property

Question 101

Question
The presumption that the market value of a property will conform to that sales price of close substitutes is based upon the:
Answer
  • Principle of conformity
  • Market approach
  • Principle of substitution
  • Presumption of market value

Question 102

Question
Two identical properties have recently sold, one for $60,000 and the other $55,000. Both sales appear to meet the conditions of a market value sale. The proper conclusion for you to draw is that:
Answer
  • Prices should be averaged to arrive at market value sale
  • The highest price is the only one meeting the definition of value
  • Both prices may be within the band of value
  • None of these answers are correct

Question 103

Question
Generally the rights to be appraised for property tax purposes are:
Answer
  • The fee-simple rights
  • Not subject to government limitations
  • Only those held by the owner of record
  • All of these answers are valid.

Question 104

Question
Replacement cost, as used in the field of appraisal, may be defined as the cost, as of the date of:
Answer
  • Appraisal, of replacing the existing improvement with an exact utility replica
  • Appraisal, of replacing the existing improvement with one of like utility
  • Construction, of replacing the existing improvement with an exact replica
  • Construction, of replacing the existing improvement with one of like utility

Question 105

Question
Satisfactory application of the appraisal process permits the appraiser to:
Answer
  • State an opinion of value at the beginning of the process
  • Withhold the value decision until the making an analysis of the separate value indicators
  • By-pass the steps when the sales price of the subject seems reasonable
  • Base the value decision on the average of the separate value indicators

Question 106

Question
Which of the following procedures would be most valid in the market approach when comparing houses with normal size differences:
Answer
  • Apply the average price per square foot derived from sales
  • Apply the median price per room derived from sales
  • Adjust each comparable sale by dollar amount derived from sales for size difference
  • Use the average price paid for total property unit

Question 107

Question
Which of the following categories of depreciation cannot be cured by the property owner:
Answer
  • Physical deterioration
  • Functional obsolescence caused by some deficiency
  • Functional obsolescence caused by excessiveness or over adequacy
  • Economic obsolescence

Question 108

Question
The township is:
Answer
  • An unincorporated town located in rule area
  • A geographical area that contains 36 square miles
  • A geographical area that contains one 36 square mile
  • The six mile wide strip that runs parallel to the prime meridian

Question 109

Question
In the replacement cost approach, representative costs should reflect:
Answer
  • The costs of the most efficient builders in the area
  • Cost dictated by local representatives of the Carpenter's Union
  • The costs of typical builders who are doing the bulk of the work in the area
  • A statistical sample of construction costs in the area

Question 110

Question
Lannie and Carol bought a homesite several years ago. It remained vacant until this year when they built and coccupied a new home. How should the assessor treat the property?
Answer
  • Appraise the new building; reappraise the land
  • Appraise the new building; do not reappraise the land
  • Do not appraise the new building; reappraise the land
  • Do not appraise the new building

Question 111

Question
Property tax laws permit the preparation of current market value appraisals under which of the following circumstances?
Answer
  • Only if the property experiences a change in ownership, new construction or becomes less valuable than the base year value
  • Only if the property experiences a change in ownership or new construction
  • Only if the property experiences a change in ownership
  • Only if the property experiences new construction

Question 112

Question
The definition of personal property as defined in the Revenue and Taxation Code:
Answer
  • All property except real estate
  • Only property capable of being moved
  • Only property that can be assessed on the unsecured roll
  • All of these answers are valid.

Question 113

Question
The California Constitution provides that:
Answer
  • All property is taxable
  • All property is taxable except for unsecured personal property
  • All property is taxable except for disabled veteran's homes
  • All property is taxable unless otherwise provided

Question 114

Question
The analysis of an apartment neighborhood indicates that income expectations have been adversely affected by closing a large industrial plant. This is an example of depreciation:
Answer
  • Due to functional obsolescence
  • Due to physical deterioration
  • Due to economic obsolescence
  • All of these answers are valid

Question 115

Question
The term "Unit appraisal" refers to:
Answer
  • Appraisal of the unit of property commonly traded in the market
  • Separate appraisal of the units of land, improvements, and personal property
  • Appraisal of all assessable property within the same ownership unit
  • Appraisal of property that comprises one assessment

Question 116

Question
The reactions of people in the market toward real estate are different from many other commodities because:
Answer
  • Real estate is immobile
  • The nature of the real estate market is different
  • Benefits of real estate are yielded over a longer period of time
  • All of these answers are valid

Question 117

Question
Land value can be estimated by:
Answer
  • Vacant land sales
  • Capitalization of ground rents
  • Land residual capitalization technique
  • All of these answers are valid

Question 118

Question
What would be the documentary transfer tax on all cash sale of $65,000?
Answer
  • $71.50
  • $65.00
  • $650.00
  • $715.00

Question 119

Question
If a documentary transfer tax of $275.00 is paid, what is the indicated price of the sale assuming cash to a new loan?
Answer
  • $275,000
  • $302,000
  • $250,000
  • $200,000

Question 120

Question
One of the basic assumptions of Income Approach is that:
Answer
  • Value is a function of income
  • Expense for management in a large building is more
  • The market approach should agree with the Income approach
  • None of the answers are correct

Question 121

Question
A house is rented unfurnished for $500 per month. Using the gross rent multiplier method, the appraiser estimated the value of the property to be $80,000. What monthly gross rent multiplier did he use?
Answer
  • 0.16
  • 1.60
  • 16.0
  • 160.0

Question 122

Question
If the appropriate monthly gross rent multiplier is 180 and the monthly rental is $600, what is the indicated value of the subject property?
Answer
  • $160,000
  • $180,000
  • $108,000
  • $110,000

Question 123

Question
The maximum earnings of a property based on economic rent is:
Answer
  • Effective gross income
  • A long term annuity
  • A reversionary right
  • Gross income

Question 124

Question
An apartment has a schedule gross of $140,000 per year. Vacancy and collection loss is 5%. Other expenses will amount to $47,000 per year. Using a gross rent multiplier of 8 will result in an appraisal of:
Answer
  • $1,064,000
  • $1,120,000
  • $688,000
  • $1,075,000

Question 125

Question
How many acres are in the S 1/2 of the SW 1/4 of section 12.
Answer
  • 4 acres
  • 40 acres
  • 10 acres
  • 80 acres

Question 126

Question
When a property's highest and best use can reasonably be expected to change in the near future, the prevailing highest and best use is referred to as a(n):
Answer
  • interim use
  • temporary use
  • secondary use
  • current use

Question 127

Question
An office building has a leasable area of 45,000 square feet. It's current reproduction cost is $65 per square foot. The building is on one acre of land. Comparable land cost $17 per square foot. The building has suffered $40,000 depreciation. What is the total value of the property using the cost approach?
Answer
  • $740,520
  • $2,885,000
  • $3,625,520
  • $3,665,520

Question 128

Question
What information is not needed to apply the building residual technique?
Answer
  • Building value
  • Land value
  • Net operating income
  • Land and building capitalization rates

Question 129

Question
After freeway construction, the volume of business on a street decreased by 50%.This can be considered as:
Answer
  • Functional obssolescence
  • Poor smog controls
  • Poor urban planning
  • External obsolescnce

Question 130

Question
The principle of anticipation can be applied to
Answer
  • An apartment building
  • A commercial structure
  • A single family residence
  • All of these answers are valid

Question 131

Question
Which of the following is exempt from property taxes only when an exemption is filed?
Answer
  • Properties used exclusively for religious worship
  • Business inventories
  • Household personal property of a homeowner
  • All of these answers are valid.

Question 132

Question
A warehouse has a market value of $3,000,000. It generates an annual gross income of $500,000. Annual operating expenses are also $350,000. What is the gross income multiplier?
Answer
  • 4
  • 5
  • 6
  • 6.5

Question 133

Question
Land values of parcels which are same size and are side by side:
Answer
  • Should have the same value
  • Must have different values
  • May have different value
  • None of these answer are correct

Question 134

Question
It is proper to adjust a sale price as an indicator of value when the:
Answer
  • Property was not on the open market
  • Buyer was uninformed
  • Sale is old
  • The transaction resulted in cash to the seller

Question 135

Question
Which of the following describes the manner in which the real property transfer tax in California is determined:
Answer
  • $.55 per $500 of cash contribution (new money)
  • $1.10 per $1000 of sales price
  • 2% of the value of the property
  • 11% of the first trust deed

Question 136

Question
The existing lease on a property:
Answer
  • May affect the selling price
  • Will not affect the market value for property tax purposes
  • May meet the requirements of an economic rent
  • All of these answers are valid

Question 137

Question
In valuing an improvement, the interest which a contractor must pay to borrow construction money:
Answer
  • Is properly included as part of the cost approach
  • Should not be included in the cost approach
  • Is an expense to the contractor which should be ignored
  • Is an expense item of the income approach

Question 138

Question
While actual sales are preferred in the market approach, listings and offers may help bracket the value. In this respect:
Answer
  • Listings should not be considered direct evidence
  • Real estate brokers and title companies are other sources of sales data
  • None of these answers are correct
  • Listings should not be considered direct evidence and real estate brokers and title companies are other sources of sales data

Question 139

Question
A house built in 1939, remodeled in 1970, and incorporating all significant features of houses built in 1965 would probably have an effective year of:
Answer
  • 1939
  • 1952
  • 1965
  • 1970

Question 140

Question
While actual sales are preferred in the market approach, listings and offers may help bracket the value. In this respect:
Answer
  • Listings should indicate an upper limit of value
  • Offers should indicate a lower limit of value
  • None of these answers are correct
  • Listings should indicate an upper limit of value and offers should indicate a lower limit of value

Question 141

Question
The reliability of the cost approach is directly related to
Answer
  • Type of construction
  • Estimate of depreciation
  • Manner in which the neighborhood is maintained
  • Ratio of land to building value

Question 142

Question
The basic characteristic of real property is:
Answer
  • Its value is tied to a specific location
  • The benefits are derived over a short period of time
  • Among property types, there is a great degree of standardization
  • All of these answers are valid

Question 143

Question
Which of the following is an example of a taxable possessory interest?
Answer
  • Jake builds a cabin on land he owned by the Balzac Corporation
  • Jake builds a cabin on land he purchased from the U.S. Department of Interior
  • Jake builds a cabin on land he leases from the U.S. Forest Service
  • All of these answers are valid

Question 144

Question
Access the second bedroom of a house may be gained only through the first bedroom. This an example of:
Answer
  • Eminent domain
  • Amenities
  • Functional obsolescence
  • Aversion

Question 145

Question
Which of the following is not a typical purpose of the cost approach?
Answer
  • To appraise unusual properties not commonly found in the open market
  • To appraise older tract homes
  • To check against the values estimated from other approaches
  • To estimate the value of a new property

Question 146

Question
Which of these is considered an indirect cost?
Answer
  • Labor costs
  • Material and equipment costs
  • Interest on construction financing
  • Subcontractors' fees

Question 147

Question
Increasing the floor area of a structure has the usual effect of
Answer
  • Increasing the square foot cost
  • Decreasing the square foot cost
  • Reducing the utility
  • None of these answers are valid

Question 148

Question
The Replacement Cost New (RCN) of the Miramar Hotel is $3,000,000. You determine that land values in the area are estimated to be $10.00/sq. ft. The subject lot size is 22,550 sq. ft. If the property sold for $2,500,000, what is the indicated accrued depreciation?
Answer
  • $225,500
  • $500,000
  • $604,500
  • $725,500

Question 149

Question
Of the following, which is good reason for a separate estimate of site value?
Answer
  • Appraisal of vacant land
  • Allocation for tax purposes
  • Use in the cost approach
  • All of these answers are valid
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