Quiz
SUPERQUIZ DELUXE!!!
Questions in this quiz (149)
1The greatest possible degree of ownership in real property is
- AFee Simple
- BEstate at Will
- CEstate for Years
- DLife Estate
2What type of ownership has definite rights of survivorship?
- AJoint tenancy
- BTenancy in common
- CSeveralty
- DLife Estate
3An appraisal is:
- AA prediction of the sales price
- BAn estimate of value
- CAn estimate of sales price
- DA mathematically precise forecast of value
4The boundary of a neighborhood might logically be set at
- AJurisdictional boundaries
- BWell sharp change in economic benefits
- CA sharp change in economic benefits
- DAll of these answers are valid.
5Of the four essential elements of value, which of the following must be coupled with purchasing power?
- ADemand
- BWantedness
- CScarcity
- DUtility
6Of the following conditions, which is most likely to cause the price to be different from the value.
- ALocation
- BSupply and demand
- CAvailability of financing
- DUninformed parties
7The bundles of rights includes
- AThe right to occupy, exclude others, or to sell
- BThe right to borrow against
- CThe right to convey by inheritance
- DAll of these answers are valid
8When 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
- AReversion
- BRemainder
- CEminent domain
- DEscheat
9When should property be reappraised?
- ANewly constructed
- BChange of Ownership
- CDecline in Value
- DAll these answers are valid
10Which of the following are private rather than public limitations to property rights?
- AZoning
- BHealth and safety laws
- CRight to tax
- DDeed restrictions
11Controls that arise from the government's police power include all except which of the following?
- ADeed restrictions
- BZoning regulations
- CSubdivision requirements
- DBuilding and safety regulations
12The 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:
- AAnticipation
- BHighest and best use
- CChange
- DSubstitution
13A 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?
- ASubstitution
- BContribution
- CProgression
- DRegression
14Which statement is not true?
- AValue of property depends on the expectations of buyers and sellers.
- BAn appraisal is a supportable estimate of value as of a particular date
- CIt is not necessary to analyze market data for a letter report
- DValue is not based on the amount of sales commission.
15An appraisal may be necessary to establish a value for:
- ACondemnation
- BTaxation
- CLending purposes
- DAll of the answers are valid
16When a very expensive home is built in a neighborhood of small modest homes, the results will most likely be:
- AIncrease the value of the smaller homes
- BDecrease the value of the more expensive home
- CIncrease the value of the more expensive home
- DNot exert any influence on housing values in the neighborhood
17The value of a property tends to be set by the cost of acquiring an equally desirable property. This is a statement of the principle:
- ASubstitution
- BBalance
- CCompetition
- DAppraisal
18The interaction of supply and demand factors in real estate markets:
- AAdjust demand to supply
- BCreates value and sets price
- CCauses demand to decrease as the supply dwindles
- DIs highly predictable, allowing the appraiser to predict the future housing needs with near certainty
19The first step in the appraisal process is to:
- AGather the data
- BInspect the property
- CDecided which approach to use
- DDefine the appraisal problem
20Which appraisal principle states that economic factors outside the property may have a positive or negative effect on the property's value?
- AAnticipation
- BSubstitution
- CContribution
- DExternalities
21What 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?
- ASubstitution
- BConformity
- CAnticipation
- DContribution
22Which of the following statements is incorrect in regard to a life estate?
- AIt may be leased
- BIt may be sold
- CIt may be mortgaged
- DIt is inheritable
23A 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:
- Avariance
- Bnonconforming use
- Ctransitional use
- Dplanned unit development
24The process of a local government in exercising its power of eminent domain is known as:
- Apolice power
- Bcondemnation
- Cescheat
- Durban renewal
25Which of the following rights of government is based on police power?
- AEminent domain
- BTaxation
- CEscheat
- DZoning
26What term is used to describe the value to a typical buyer?
- AMarket value
- BInvestment value
- CSale value
- DUse value
27When appraising property the appraiser must appraise the appraisal unit which is:
- ALand
- BImprovements
- CCommonly bought and sold in the open market
- DProperties under the same ownership that are continuous
28The legal right of government to acquire private property for a public use or purpose with just compensation is known as:
- APolice power
- BEminent domain
- CCondemnation
- DEscheat
29What term is used for a transaction in which all parties to the transaction are dealing from equal bargaining positions?
- AAnticipation
- BThird Party market
- COpen market
- DSecondary market
30Which statement is true about the relationship between the market value of a property and its sales price at the time of the property sold?
- AThey are the same at that point in time
- BThe price will always exceed market value
- CThe market value will always exceed the price
- DThe price could be more or less than the market value depending on the motivations of the buyer and seller and details of the transactions
31A study of the supply and demand conditions in a specific area is referred to as:
- AAssemblage
- BProjection analysis
- CEconomic base
- DMarket analysis
32In 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:
- AAnticipation
- BBalance
- CContribution
- DSubstitution
33Which of the following principles best describes the effect of an international airport on the value of a nearby residential subdivision?
- ASubstitution
- BHighest and best use
- CExternalities
- DConformity
34Which of the following best describes what an appraiser does in rendering an opinion of value for tract of land?
- ADetermines value
- BCalculate value
- CEstimates value
- DPredicts value
35The primary reason an appraiser analyzes a neighborhood is to:
- AIdentify the area of a zoning map
- BIdentify and evaluate factors that may influence property values
- CSatisfy requirements of tax law
- DDetermine assessed value for tax purposes
36The process by which the appraiser correlates the indicators of value into a final estimate of the defined value is known as:
- AAveraging
- BReconcilitation
- CCapitalization
- DRecapitulation
37Poor room arrangement is an example of:
- AFunctional obsolescence
- BPhysical curable depreciation
- CExternal obsolescence
- DPhysical incurable depreciation
38In which case is it best to use cost approach?
- AImprovement is new or in its early life
- BImprovement is middle age
- CImprovement is late in life
- DOnly when none of the approaches apply
39When the improvement is new and represents highest and best use, the upper limit of real property value is usually found by the:
- ACost approach
- BSales comparison approach
- CIncome approach
- Dapproach that measures the type of benefits of the subject property
40How 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"- A160
- B90
- C320
- D50
41Residential lots are often described by reference to their relation to streets and surrounding lots. Which of the following has the least thru-traffic?
- ACorner
- BInside or interior
- CCul-de-sac
- DT-intersection
42The area of a township is:
- A1 mile square
- B6 square miles
- C36 square miles
- D27,878,400 square feet
43Which of the following would you consider to be external obsolescence?
- ANormal wear and tear
- BPoor architectural design
- CTermite and pest damage
- DChange in zoning
44The type of depreciation that is considered to be nearly always incurable is:
- APhysical depreciation
- BExternal obsolescence
- CFunctional obsolescence
- DAccrued depreciation
45Of the following property defects, which is least likely to be curable?
- ADeferred maintenance
- BMisplaced improvements
- CLack of built-ins
- DInadequate bathrooms
46As contrasted with the term "reproduction cost," "replacement cost" refers to:
- AThe cost of constructing a building that will be one of like utility as the one being appraised
- BThe cost of constructing a replica building
- CThe cost of reproducing the subject building
- DNone of these
47"Effective" age most nearly means:
- AAverage age
- BAge perceived by the market
- COriginal age
- DThe difference between original and average age
48When measuring for living or floor area, the appraiser uses:
- AOutside measurements including wall thickness
- BOutside wall measurements excluding wall thickness
- CInterior measurements only
- DNone of these
49Construction classification refers to the:
- AType of use or occupancy
- BType of basic frame, wall, floor and roof construction
- CThe quality of construction
- DNumber of stories in a building
50The three methods of legal description for real estate are:
- AMetes and bounds; subdivision; rectangular survey
- BLot, block and tract; base line and meridian; Government survey
- CMetes and bounds; rectangular survey; government survey
- DMetes and bounds; government survey; lot, block and tract
51The process of reconciliation involves:
- AAveraging the closest estimates of value
- BGiving an average to each approach used
- CPrimary consideration to the most reliable approach
- DAveraging all approaches, giving each equal weight
52A 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?
- A$42,000
- B$172,000
- C$192,760
- DNone of these
53A means by which land is specifically and definitely located is known as a:
- AReference to monument and reference point
- BLegal description
- CGovernment tract and policy
- DMetes and tract survey
54Which of the following is true?
- AThe bundle of rights is indivisible
- BZoning is one example of a government restriction
- CDeed restrictions are examples of government controls placed on real estate
- DProperty ownership rights are absolute
55Which approach to value is considered to be the most direct?
- AThe sales comparison approach
- BThe cost approach
- CThe income approach
- DNone of these
56The cost approach is more reliable when appraising
- ADeveloped housing
- BIncome properties
- COlder houses
- DNew improvements
57The typical appraisal assignment is to appraise
- AThe "fee simple" ownership
- BThe value of the mining rights
- CThe value subject to an existing loan
- DThe leased fee
58The cost approach is generally unreliable in the appraisal of older buildings because
- AOriginal cost figures are not available
- BDepreciation is difficult to estimate
- CGood locations maintain high values
- DToo much write-off has been taken
59In the cost approach, value is estimated by:
- AAdding estimated depreciated cost new of the improvements to the estimated depreciated site value
- BAdding estimated cost new of the improvements to the estimated depreciated site value
- CAdding estimated depreciation cost new of the improvements to the estimated site value
- DAdding the estimate cost new of the improvements to the estimated site value
60The replacement cost method most commonly used is:
- ASquare foot
- BSegregated cost
- CCubic foor
- DQuantitative survey
61An item of accrued depreciation is curable if the cost to cure is not greater than the:
- AReproduction cost
- BReplacement cost
- CExpected increase in value
- DActual installation cost
62An example of functional obsolescence is:
- AThe advent of a freeway through the neighborhood
- BAn outmoded kitchen
- CA change in zoning
- DA shutdown of vital industry in the area
63A curable item of depreciation is:
- AA poor floor plan
- BOutdated plumbing fixture
- CA room addition
- DA change from stucco to wood siding
64If 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?
- A$120,000
- B$8,000
- C$80,000
- D$200,000
65A prospective use that represents the "Highest and Best Use" of the land must be:
- ALegally permitted
- BPhysically possible
- CReasonably probable
- DAll of these answers are valid
66The orderly plan of action in the appraisal of real property is known as which of the following?
- AAppraisal methodology
- BAppraisal objectives
- CAppraisal process
- DAppraisal purpose and scope
67As it used in appraising, the term "reconciliation" means
- AThe process of analyzing comparable rental properties and establishing a gross rent multiplier
- BThe process of bringing together all of the sales in the area and analyzing them
- CThe 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
- DThe process of determining value by referring to the highest sales that have occurred in the neighborhood
68For 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?
- ADairy farm
- BSite for six-unit apartment
- CSite for a 4,800-square foot office
- DAll these answers are valid
69The principle of substitution can be applied to
- AThe comparative sales approach
- BThe cost approach
- CThe income sales approach
- DAll of the approaches
70In the rectangular survey system a legal description describing, one quarter of a section contains
- A160 acres
- B40 acres
- C460 acres
- Dnone of these are correct
71A vacant lot measures 200 feet by 381 feet. What is its estimated worth if the land is valued at $20,000 per acre?
- A$20,000
- B$28,000
- C$33,500
- D$35,000
72Excess land is land that is:
- Anot as valuable because it is not necessary to accommodate a site's highest and best use
- Bvaluable, possesses significant utility and not needed to support existing improvement
- Calways used for expansion of the existing impovement
- Dnot included in the estimated value of the property
73The term "plottage" refers to:
- Avalue created by land that is not necessary for the primary improvements but is part of the economic unit
- Ban increment of value that results when two or more sites are combined under single ownership
- Cthe results of a survey that is plotted on a map
- Dnone of these answers are correct
74A lot measuring 130 by 200 feet recently sold for $71,500. What was the selling price per square foot?
- A$550.00
- B$357.50
- C$2.75
- D$5.50
75A 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?
- A$94,950
- B$105,500
- C$109,950
- D$120,500
76The proximity of a parcel of land to a supporting land use is referred to as:
- ALocation quotient
- BLinkage
- CHighest and best use
- DLand efficiency
77Which statement is true?
- AValue of property depends on the expectations of buyers and sellers
- BAn appraisal is a supportable estimate of value as of a particular date
- CIt is necessary to analyze market data for an appraisal report
- DAll are true
78Owner 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:
- ADominant estate
- BServient estate
- CLien estate
- DEstate in gross
79A parcel of land 440 feet by 792 feet contains how many acres?
- A4
- B8
- C12
- D36
80The description of the surface features of a parcel of land such as elevation or drainage is known as its:
- ALocation
- BPlottage
- CTopography
- DRestrictive covenant
81Which statement is true about the relationship between the market value of a property and its sales price at the time the property sold?
- AThey are the same at that point in time
- BThe price will always exceed market value
- CThe market value will always exceed the price
- DThe price could be more or less than the market value depending on the motivations of the buyer and seller and details of the transaction
82Which of the following land is generally not considered income property?
- AHotels
- BUndeveloped land
- COffice buildings
- DApartment buildings
83The 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:
- AThe development phase
- BThe stable phase
- CDecline phase
- DRehabilitation phase
84Appraisers study real estate markets in order to
- AIdentify changing price trends
- BEvaluate market reaction to property differences
- CEvaluate the strength of various economic forces
- DAll these answers are valid
85Maximum value results where properties in neighborhood are relatively similar. Select the principle which most applies:
- AAnticipation
- BHighest and best use
- CConformity
- DChange
86Value is the present worth of future benefits, according to the principle of:
- AContribution
- BHighest and best use
- CAnticipation
- DSurplus productivity
87The grantor is the:
- ABuyer
- BSeller
- CRenter
- DLender
88Which of the following is not an agent of production?
- ALand
- BTaxes
- CCapital
- DEntrpreneurship
89The principle of increasing and decreasing returns says that maximum value results from adding to agents of production
- AAs long as you can afford to do it
- BTo meet the competition
- CUntil they are in balance
- DAs long as the total net return increases
90The four elements which create value are:
- AScarcity, demand, utility, capacity to private ownership
- BUtility, scarcity, supply, capacity to private ownership
- CEffective demand, immobility, durability, exclusivity
- DSupply, utility, desire, fixed location
91The limitation on fee simple absolute property rights are:
- ATaxation, eminent domain, police power, liens
- BTaxation, police power, easements, escheat
- CTaxation, eminent domain, police power, escheat
- DTaxation, police power, escheat, liens
92If the demand for homes remains constant and the supply:
- ADecreases, the value will increase
- BRemains constant, the value will decrease
- CRemains constant, the value will increase
- DIncreases, the value will increase
93An appraisal report can be
- Aoral or based on the complete analysis required for a written report
- Boral or in writing
- Cbased on the market data or based on the highest and best use
- Dnarrative or writing
94When making an appraisal for property tax purposes the appraiser is to appraise the property at:
- AThe price that was actually paid for the property
- BMarket value
- CThe cost of the property
- DThe use value of the property
95Which economic principle is indicated by the statement, potential buyers of property consider prices paid for similar properties?
- AConformity
- BSubstitution
- CHighest and best use
- DIncreasing returns
96Which of the following is a true statement concerning the accessability of manufactured homes?
- AManufactured homes purchased new after July 1, 1980 are subject to assessment for property taxes
- BManufactured homes purchased new before July 1, 1980 are subject to assessment for property taxes
- CManufactured homes not anchored to permanent foundation are exempt from property taxes
- DAll manufactured home accessory structures are exempt from property taxes
97Residential percent good tables provide the most reliable adjustments to replacement cost estimates of which of the following:
- AResidences constructed prior to 1940
- BResidences whose maintenance is typical of others of the same age
- CResidences located in non-urban areas
- DWood frame structures
98An agreement between the buyer and the seller on the asking price of a property is:
- AAlways assumed to be market value
- BMarket value when similar properties are selling for this amount
- CNever the market value
- DThe market value only when the lender also agrees
99A commercial lot 50 feet wide and 150 feet deep just sold for $70,000 cash. The sale price per front foot comes to:
- A$9.30
- B$466
- C$1,400
- DNone of these answers are correct
100The price paid for a property sold under conditions of duress most likely will represent:
- AA reliable indicator of value of similar properties
- BA reliable indicator of value of sold properties only
- CAn unreliable indicator of value of similar properties and the sold property
- DAn unreliable indicator of value of the sold property
101The presumption that the market value of a property will conform to that sales price of close substitutes is based upon the:
- APrinciple of conformity
- BMarket approach
- CPrinciple of substitution
- DPresumption of market value
102Two 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:
- APrices should be averaged to arrive at market value sale
- BThe highest price is the only one meeting the definition of value
- CBoth prices may be within the band of value
- DNone of these answers are correct
103Generally the rights to be appraised for property tax purposes are:
- AThe fee-simple rights
- BNot subject to government limitations
- COnly those held by the owner of record
- DAll of these answers are valid.
104Replacement cost, as used in the field of appraisal, may be defined as the cost, as of the date of:
- AAppraisal, of replacing the existing improvement with an exact utility replica
- BAppraisal, of replacing the existing improvement with one of like utility
- CConstruction, of replacing the existing improvement with an exact replica
- DConstruction, of replacing the existing improvement with one of like utility
105Satisfactory application of the appraisal process permits the appraiser to:
- AState an opinion of value at the beginning of the process
- BWithhold the value decision until the making an analysis of the separate value indicators
- CBy-pass the steps when the sales price of the subject seems reasonable
- DBase the value decision on the average of the separate value indicators
106Which of the following procedures would be most valid in the market approach when comparing houses with normal size differences:
- AApply the average price per square foot derived from sales
- BApply the median price per room derived from sales
- CAdjust each comparable sale by dollar amount derived from sales for size difference
- DUse the average price paid for total property unit
107Which of the following categories of depreciation cannot be cured by the property owner:
- APhysical deterioration
- BFunctional obsolescence caused by some deficiency
- CFunctional obsolescence caused by excessiveness or over adequacy
- DEconomic obsolescence
108The township is:
- AAn unincorporated town located in rule area
- BA geographical area that contains 36 square miles
- CA geographical area that contains one 36 square mile
- DThe six mile wide strip that runs parallel to the prime meridian
109In the replacement cost approach, representative costs should reflect:
- AThe costs of the most efficient builders in the area
- BCost dictated by local representatives of the Carpenter's Union
- CThe costs of typical builders who are doing the bulk of the work in the area
- DA statistical sample of construction costs in the area
110Lannie 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?
- AAppraise the new building; reappraise the land
- BAppraise the new building; do not reappraise the land
- CDo not appraise the new building; reappraise the land
- DDo not appraise the new building
111Property tax laws permit the preparation of current market value appraisals under which of the following circumstances?
- AOnly if the property experiences a change in ownership, new construction or becomes less valuable than the base year value
- BOnly if the property experiences a change in ownership or new construction
- COnly if the property experiences a change in ownership
- DOnly if the property experiences new construction
112The definition of personal property as defined in the Revenue and Taxation Code:
- AAll property except real estate
- BOnly property capable of being moved
- COnly property that can be assessed on the unsecured roll
- DAll of these answers are valid.
113The California Constitution provides that:
- AAll property is taxable
- BAll property is taxable except for unsecured personal property
- CAll property is taxable except for disabled veteran's homes
- DAll property is taxable unless otherwise provided
114The 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:
- ADue to functional obsolescence
- BDue to physical deterioration
- CDue to economic obsolescence
- DAll of these answers are valid
115The term "Unit appraisal" refers to:
- AAppraisal of the unit of property commonly traded in the market
- BSeparate appraisal of the units of land, improvements, and personal property
- CAppraisal of all assessable property within the same ownership unit
- DAppraisal of property that comprises one assessment
116The reactions of people in the market toward real estate are different from many other commodities because:
- AReal estate is immobile
- BThe nature of the real estate market is different
- CBenefits of real estate are yielded over a longer period of time
- DAll of these answers are valid
117Land value can be estimated by:
- AVacant land sales
- BCapitalization of ground rents
- CLand residual capitalization technique
- DAll of these answers are valid
118What would be the documentary transfer tax on all cash sale of $65,000?
- A$71.50
- B$65.00
- C$650.00
- D$715.00
119If a documentary transfer tax of $275.00 is paid, what is the indicated price of the sale assuming cash to a new loan?
- A$275,000
- B$302,000
- C$250,000
- D$200,000
120One of the basic assumptions of Income Approach is that:
- AValue is a function of income
- BExpense for management in a large building is more
- CThe market approach should agree with the Income approach
- DNone of the answers are correct
121A 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?
- A0.16
- B1.60
- C16.0
- D160.0
122If the appropriate monthly gross rent multiplier is 180 and the monthly rental is $600, what is the indicated value of the subject property?
- A$160,000
- B$180,000
- C$108,000
- D$110,000
123The maximum earnings of a property based on economic rent is:
- AEffective gross income
- BA long term annuity
- CA reversionary right
- DGross income
124An 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:
- A$1,064,000
- B$1,120,000
- C$688,000
- D$1,075,000
125How many acres are in the S 1/2 of the SW 1/4 of section 12.
- A4 acres
- B40 acres
- C10 acres
- D80 acres
126When 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):
- Ainterim use
- Btemporary use
- Csecondary use
- Dcurrent use
127An 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?
- A$740,520
- B$2,885,000
- C$3,625,520
- D$3,665,520
128What information is not needed to apply the building residual technique?
- ABuilding value
- BLand value
- CNet operating income
- DLand and building capitalization rates
129After freeway construction, the volume of business on a street decreased by 50%.This can be considered as:
- AFunctional obssolescence
- BPoor smog controls
- CPoor urban planning
- DExternal obsolescnce
130The principle of anticipation can be applied to
- AAn apartment building
- BA commercial structure
- CA single family residence
- DAll of these answers are valid
131Which of the following is exempt from property taxes only when an exemption is filed?
- AProperties used exclusively for religious worship
- BBusiness inventories
- CHousehold personal property of a homeowner
- DAll of these answers are valid.
132A warehouse has a market value of $3,000,000. It generates an annual gross income of $500,000. Annual operating expenses are also $350,000. What is the gross income multiplier?
- A4
- B5
- C6
- D6.5
133Land values of parcels which are same size and are side by side:
- AShould have the same value
- BMust have different values
- CMay have different value
- DNone of these answer are correct
134It is proper to adjust a sale price as an indicator of value when the:
- AProperty was not on the open market
- BBuyer was uninformed
- CSale is old
- DThe transaction resulted in cash to the seller
135Which of the following describes the manner in which the real property transfer tax in California is determined:
- A$.55 per $500 of cash contribution (new money)
- B$1.10 per $1000 of sales price
- C2% of the value of the property
- D11% of the first trust deed
136The existing lease on a property:
- AMay affect the selling price
- BWill not affect the market value for property tax purposes
- CMay meet the requirements of an economic rent
- DAll of these answers are valid
137In valuing an improvement, the interest which a contractor must pay to borrow construction money:
- AIs properly included as part of the cost approach
- BShould not be included in the cost approach
- CIs an expense to the contractor which should be ignored
- DIs an expense item of the income approach
138While actual sales are preferred in the market approach, listings and offers may help bracket the value. In this respect:
- AListings should not be considered direct evidence
- BReal estate brokers and title companies are other sources of sales data
- CNone of these answers are correct
- DListings should not be considered direct evidence and real estate brokers and title companies are other sources of sales data
139A house built in 1939, remodeled in 1970, and incorporating all significant features of houses built in 1965 would probably have an effective year of:
- A1939
- B1952
- C1965
- D1970
140While actual sales are preferred in the market approach, listings and offers may help bracket the value. In this respect:
- AListings should indicate an upper limit of value
- BOffers should indicate a lower limit of value
- CNone of these answers are correct
- DListings should indicate an upper limit of value and offers should indicate a lower limit of value
141The reliability of the cost approach is directly related to
- AType of construction
- BEstimate of depreciation
- CManner in which the neighborhood is maintained
- DRatio of land to building value
142The basic characteristic of real property is:
- AIts value is tied to a specific location
- BThe benefits are derived over a short period of time
- CAmong property types, there is a great degree of standardization
- DAll of these answers are valid
143Which of the following is an example of a taxable possessory interest?
- AJake builds a cabin on land he owned by the Balzac Corporation
- BJake builds a cabin on land he purchased from the U.S. Department of Interior
- CJake builds a cabin on land he leases from the U.S. Forest Service
- DAll of these answers are valid
144Access the second bedroom of a house may be gained only through the first bedroom. This an example of:
- AEminent domain
- BAmenities
- CFunctional obsolescence
- DAversion
145Which of the following is not a typical purpose of the cost approach?
- ATo appraise unusual properties not commonly found in the open market
- BTo appraise older tract homes
- CTo check against the values estimated from other approaches
- DTo estimate the value of a new property
146Which of these is considered an indirect cost?
- ALabor costs
- BMaterial and equipment costs
- CInterest on construction financing
- DSubcontractors' fees
147Increasing the floor area of a structure has the usual effect of
- AIncreasing the square foot cost
- BDecreasing the square foot cost
- CReducing the utility
- DNone of these answers are valid
148The 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?
- A$225,500
- B$500,000
- C$604,500
- D$725,500
149Of the following, which is good reason for a separate estimate of site value?
- AAppraisal of vacant land
- BAllocation for tax purposes
- CUse in the cost approach
- DAll of these answers are valid
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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
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- John Smith
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