Appraisal Principles

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An appraiser pays a fee for the procurement of an assignment. Where in the appraisal report does this payment have to be disclosed?
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Terms in this set (311)
An appraiser pays a fee for the procurement of an assignment. Where in the appraisal report does this payment have to be disclosed?
in the certification and transmittal letter where conclusions are stated
"A development right that cannot be used by the landowner, or that the owner chooses not to use, but can be sold to landowners in another location" are called _____________ rights.
transferable development
"The geographic region from which a majority of demand comes and which the majority of the competition is located" is the definition of
market area
"A mortgage in which the interest rate may move up or down, following a specified schedule or in accordance with the movements of a standard or index to which it is tied" is the definition of a(n) ______________ mortgage.
adjustable rate
The strongest form of deed is the __________ deed.
warranty
"For real property, a personal, unassignable, and typically revocable privilege or permit to perform some activity on the land of another without obtaining an interest in the property" is the definition of
license
The Conduct Section of the ETHICS RULE states, in part, that an appraiser must perform assignments with
Impartiality, objectivity, and independence
When estimating the value of a fireplace in a single-family home, the most important principle is the principle of
contribution
Property Owner A has the right to develop his property into 10 lots. He sells this right to nearby Property Owner B who wishes to develop his property into additional lots. This is an example of
transferable development rights
In a trust deed state, title to a property is vested in the __________ until the mortgage lien is satisfied.
trustee
All of the following could be participants in a real property market EXCEPTsellers landlords appraisers (assessors)A lot measures 178 feet by 464 feet. It sold for $80,000. What did it sell for per acre? HINT: Round the acreage amount to two decimal places.$42,105The interest rate that banks charge when lending money to their highest rated customers is called the __________ rate.primeThe Appraisal Foundation is anot-for-profit organization8.8% is the same as.088"A value that cannot be imputed to any part of the physical property, e.g., the excess value attributable to a favorable lease or mortgage, the value attributable to goodwill" is the definition of ____________ value.intangibleWhich entity is responsible for monitoring state appraiser licensing and certification agencies?The Appraisal SubcommitteeWhich statement about price, cost, and value is TRUE?Price and value can be the same in some situations.What is the median of these numbers: 19, 11, 64, 36, 81, 22, 35, 95?35.5Which of the following would be private restrictions on property rights? taxation and police power easement and eminent domain escheat and easement deed restriction and mechanic's lientaxation and police power easement and eminent domain escheat and easement (deed restriction and mechanic's lien)The four elements of value are desire, _________, scarcity, and ________.utility, effective purchasing powerWhat is the median of the following set of gross rent multipliers? (95, 93, 120, 94, 93, 129)94.5You have found comparable sales of rural land parcels that indicate the following sale prices per acre: ($930, $775, $1202, $995, $1612, $906). What is the mode of these indications?there is no modeReporting requirements for real property appraisers are set forth in STANDARD ___ of the Uniform Standards of Professional Appraisal Practice.2Your property, which consists of a house and lot, is valued at $244,000. You want to insure it for 80% of value and the annual insurance premium will cost $5.75 per thousand. How much will your insurance cost per month?$93.53The nationally-recognized ethical and performance standards for appraisers are known asUSPAPWhich agency is charged with monitoring coastal habitats?NOAAHow is the Appraisal Subcommittee funded?through a National Registry fee charged to each appraiserWhich is NOT true of a fee simple estate?It is not limited by governmental powers.Under the current qualification criteria, an applicant for Appraiser Trainee must have completed ___ creditable hours of experience.0The four agents of production are land, ________, capital, and _____________.labor, entrepreneurial coordinationThe median price of homes sold in your county 6 months ago was $224,650. Prices have been increasing at the rate of 7% per year. What is the median price of homes today?$232,513"The right held by the lessee to use and occupy real estate for a stated term and under the conditions specified in the lease" is the definition ofleasehold estate"The rate at which vacant space in a property or a group of properties for sale or lease has been or is expected to be successfully sold or leased over a specified period of time" is the definition of a(n) __________ rate.absorptionAn appraisal is defined as the act or process of developing an ________ of _______.opinion, valueWhat type of property ownership is characterized by the purchase of shares of stock in a corporation, which provides a proprietary lease to occupy an apartment unit?cooperativeWhich entity is responsible for making periodic changes to USPAP?Appraisal Standards Board"An analysis of the market conditions of supply, demand, and pricing for a specific property type in a specific area" is the definition ofmarket studyA circle contains _______ degrees.360What is the purpose of a state's statute of frauds?requires certain documents to be in writing"A lease that provides for specified changes in the amount of rent at one or more points during the lease term" is called a(n) ____________ lease.graduated-paymentWhat is a corporation or trust that functions like a mutual fund for real estate, by combining the capital of many investors to acquire real estate?REITThe primary purpose of USPAP is to protectpublic trustYou want to buy a house for $216,500. You can get a loan for 90% of value. You will also have to pay 1.5 points on the loan. If you have to pay both the down payment and the loan points at closing, how much will you have to deliver to closing to cover these?$24,572.75Valuation Advisories, issued by The Appraisal Foundation, are considered:voluntary guidanceAs part of the overall requirement for continuing education, certified and licensed appraisers must complete the 7-Hour National USPAP Update Course or its equivalent ________ calendar year(s).every 2A problem with the real property market is that the amount of ________ is slow to change.supplyWhich is NOT a requirement of a valid deed?must be recordedWhich of the following statements about offers is FALSE? An offer may never be revoked once delivered to the offeree. An offer may be revoked at any time prior to communication of the acceptance of the offer. An offer may be revoked by the maker of the offer, by giving notice of revocation to the person to whom the offer was made. An offer may be revoked by the lapse of time set forth in the offer.An offer may never be revoked once delivered to the offeree.A rectangular property measures 320 feet by 574.45 feet, and it sold for $263,750. How much did it sell for per acre?$62,500You apply for a mortgage. The lender will allow you to spend up to 28% of your annual income for housing costs, including your mortgage, property taxes, and insurance. Your income is $1,472 every two weeks. If you apply for the loan, how much can your maximum monthly payment be?$893.01Which of these would be considered a public restriction on real property ownership?escheatWhich of the following would NOT be considered a governmental influence on value? zoning utilities wage levels police protectionwage levelsHere are all the sales in your area in the last 4 months. They sold for: $178,500; $166,000; $172,750; $182,000; $168,000; $174,000; $176,000; $184,000; $170,000; $175,000; $172,000; $181,500. What is the mean sale price?$174,979A homeowner fears the construction of a factory nearby will decrease the value of her property. This illustrates the principle ofexternalities"A market in which a drop in demand is accompanied by a relative oversupply and a decline in prices" is the definition of a(n) __________ market.depressedUSPAP requires an appraiser to beobjective"A gathering of people for the buying and selling of things" is the definition ofmarketReal estate includes all of the following EXCEPT land buildings property rights treesProperty RightsA rancher owns six full sections plus three quarter sections. How many acres is that?3,680The current number of appraisal education hours required for Certified General Appraiser applicants is ______ hours.300The ______ maintains a National Registry of appraisers.ASCThe Federal Reserve can influence the level of economic activity byregulating the availability of money regulating the rate of interest neither of these (both of these)A market analysis examines ____________ , where a marketability analysis examines ______________.a type of property, a specific propertyWho is responsible for appointing members to the ASB and AQB?the Board of TrusteesWhich of the following is a characteristic of an effective market? prices relatively low supply and demand operate freely buyers and sellers act rationally all of the aboveall of the aboveThe Management Section of the ETHICS RULE states, in part, "An appraiser must __________ that he or she paid a fee or commission, or gave a thing of value in connection with the procurement of an assignment."discloseThe oldest system of legal descriptions for real estate is:metes and boundsAll of the following would typically be considered to be personal property EXCEPT portable dishwasher wall to wall carpeting countertop microwave clothes dryerwall to wall carpetingTwenty years ago, most appraisal reports that were sent electronically were sent using _____ technology; today, most appraisals are sent electronically using a _______ format.EDI, PDFWhich valuation approach relies most heavily on the principle of substitution?sales comparisonA property has a first mortgage of $100,000, a second mortgage of $20,000, and a third mortgage of $10,000. It is foreclosed and sold for $125,000. The holder of the third mortgage gets ________ and the holder of the second mortgage receives _________.$5,000, $20,000An appraisal is best described asan opinion of valueWhat is the median of these numbers: 17, 12, 54, 36, 71, 28, 31, 55?33.5Police power would include which of the following building codes zoning environmental regulations (all of the above)building codes zoning environmental regulations (all of the above)Supply and demand move in a(n) ____________ relationship.inverseWhich would NOT be an example of demand in a real property market?decreasing building permitsTransportation would be an example of a(n) __________ force affecting property values.governmental_________ is a computerized mapping system for encoding, retrieving, analyzing and presenting geographic or spatial data.GISThe website with the largest amount of demographics information isCensus.govWhich of the following would NOT be considered a negative easement? access right of way conservation easement drainage easement historic preservation easementaccess right of way"Trespassing on the domain of another" is the definition ofencroachmentIn analyzing a real estate purchase contract, you should be able to find all of the following items EXCEPT sale price legal description date of sale amount of property taxesamount of property taxes"An active market in which the sellers of available properties can obtain higher prices than those obtainable in the immediately preceding period; a market in which a few available properties are demanded at prevailing prices by many users and potential users" is the definition of a(n) __________ market.seller'sSonic measuring devices employ _____________ to take measurements.sound wavesYou want to buy a house for $243,500. You can get a loan for 90% of value. You will also have to pay 2.75 points on the loan. How much will you have to deliver to closing to cover both the down payment and the loan points?$30,376.63Which of the following is NOT a characteristic of land? mobility unique location durability finite supplymobilityWhich statement about price, cost, and value is TRUE? Price and value are always the same. Price and cost have the same definition. Price and value can be the same in some situations. Cost and value mean the same thing.Price and value can be the same in some situations.USPAP defines _________ as the amount asked, offered, or paid for a property.priceThe intent of USPAP is to ____________ a high level of __________ in professional appraisal practice.promote and maintain, public trustThe current number of appraisal education hours required for Certified Residential Appraiser applicants is ______ hours.200A facade easement is a type of_______________ easement.historic preservationThe _______ maintains a national registry of state certified and licensed appraisers who are eligible to perform appraisals in federally related transactions.Appraisal SubcommitteeA lot measures 569.32 feet by 414.90 feet. How many acres is that?5.4265% of the houses in a neighborhood are split levels and 15% are ranches. There are a total of 300 houses. How many are ranches?45Electronic Data Interchange for transmitting appraisal reports became popular in thelate 1990s"The ownership interest held by the lessor, which includes the right to receive the contract rent specified in the lease plus the reversionary right when the lease expires" is the definition ofleased fee interestUSPAP includes performance standards for the appraisal ofA client asks an appraiser to omit the client's identity from the appraisal report. What can the appraiser do?omit the client's identity from the report but identify the client in the workfileThe ________ is responsible for establishing criteria for individuals to become real property appraisers.Appraiser Qualifications BoardThe first appraiser organizations were formed in the1930sNormally the first step in highest and best use analysis is to research the uses that arelegally permissibleThe federal financial institutions regulatory agencies directly involved in fair lending include all of the following EXCEPT Fannie Mae FDIC OCC FRBFannie MaeWhich is NOT a characteristic of tenancy in common? no limit to the number of tenants in common the ownership does not have to be in equal amounts there is a right of survivorship interest can be sold or passed to heirsthere is a right of survivorship"A neighborhood characterized by homogeneous land use, e.g., apartment, commercial, industrial, agricultural" is the definition ofdistrict"A business arrangement in which two or more persons jointly own a business and share in its profits and losses" is the definition ofpartnershipIn analyzing a real estate purchase contract you should be able to find all of the following items EXCEPT sale price legal description date of sale prior transfer date and purchase priceprior transfer date and purchase priceWhich of the following types of investments has historically generated the highest return on investment?real estateJanet has a property with no road frontage. She has an access right of way across the property of her neighbor Ivan for ingress, egress, and regress. Who has the servient tenement in this situation?IvanThe real property market is generally classified as a(n) __________ market.imperfectAppraiserOne who is expected to perform valuation services competently and in a manner that is independent, impartial, and objective.As defined by USPAP any communication, written or oral, of an appraisal or appraisal review that is transmitted to the client or a party authorized by the client upon completion of assignmentreportnarrative reportA written communication of the results of a valuation or review assignment presented to the client in narrative style rather than on a form or orallyAppraisers qualification board (AQB)establishes the qualifications that all states must meet in licensing, certification and re-certification of appraisers establishes requirements for qualifying education courses that applicants take to become appraisersMarket DefinitionA set of arrangements in which buyers and sellers are brought together through the price mechanism The aggregate of possible buyers and sellers and the transactions between them.Supply and Demand in Real Estate Appraisalprice of real property varies directly with, but not necessarily proportionately, with demand and inversely, but not necessarily proportionately, with supply.Real property marketBuyers and sellers of particular real property and the transactions that occur among themActive marketA market characterized by numerous transactionsBuyer's marketA market in which buyers haver the advantage; exists when market prices are relatively low due to an oversupply of property or reduced buyer demandSeller's martketAn active market in which the sellers of available properties can obtain higher prices than those obtainable in the immediately preceding period A market in which a few available properties are demanded at prevailing prices by many users and potential usersDepressed marketA market in which a drop in demand is accompanied by a relative oversupply and a decline in pricesCharacteristics of a good marketHomogenous products prices are relatively low prices are stable products are easily transportable organized market mechanism a large number of buyers and sellers buyers and sellers are knowledgeable buyers and sellers act rationally little regulation or government intervention supply and demand operate freelyCharacteristics that a real estate market don't haveHomogenous products Low prices Transportable Products Organized Market Mechanism Large numbers of Buyers and Sellers Knowledgeable Buyers and Sellers Rational Buyers and Sellers Little RegulationDoes supply or demand move faster?DemandImperfect MarketA market in which product differentiation exists, there is a lack of important product or market information, and some of the producers and/or consumers are significant enough to affect the price and quantity of goods by their actions alone.NeighborhoodA group of complementary land uses; a congruous grouping of inhabitants, buildings, or business enterprises.DistrictA neighborhood characterized by homogeneous land use, e.g., apartment, commercial, industrial, agricultural.Market AreaThe geographic region from which a majority of demand comes and in which the majority of competition is located.Factors that are responsible for short-term real property cycleslevel of interest rates amount of credit availableAmenityA tangible benefit of real estate that enhances its attractiveness or increase3s the satisfaction of the user. Typically a focus of owner occupant buyersNatural amenities examplespleasant location by the water scenic view of the surrounding areaComponents of Real Property Appraiser Qualification CriteriaQualifying Education Experience Examinations Continuing EducationWhat is the purpose of qualifying educationTo ensure that appraisers participate in a program that maintains and increases their skill, knowledge, and competency in real property appraisingWhen was the appraisal foundation established1987When was the Uniform Standards of Professional Appraisal Practice adopted by the Appraisal Standards BoardJanuary 1989Three principle boards if the Appraisal FoundationBoard of Trustees (BOT) Appraisal Standards Board (ASB) Appraiser Qualifications Board (AQB)What is the Board of Trustees (BOT) responsible forappointing member of the ASB, AQB, APB Creating requirements for licensure, certification, and recertification of appraisersWhat is the Appraisal Standards Board (ASB) responsible forCreating ethic standards for ethics and performance of appraisersWhat does the Appraisal Standards Board (ASB) use to create their standardsUniform Standards of Professional Appraisal Practice (USPAP)What did Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) dorequires each state must establish an agency for the licensing and certification of real property appraisers Established the Appraisal Subcommittee (ASC)When did Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) become effective1991What did the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA)establish1. Each state create an agency for the licensing and certification of real property appraisers 2. The Appraisal Subcommittee (ASC)The two advisory councils within the Appraisal foundationAppraisal Foundation Advisory Council (TAFAC) Industry Advisory Council (IAC)What does the Appraisal Foundation Advisory Council (TAFAC) doMakes recommendations to the other boards on major issues before them(T/F) The Appraisal Standards Board (ASB) have all authority and power over the subject, style, content, and substance of USPAPTrueWhat does the Appraisal Standards Board (ASB) doSets forth the rules for appraisal practice, including the standards for developing an appraisal or appraisal review and reporting its resultsWhat does USPAP includeDefinitions Preamble Rules Standards Rules CommentsWhat authority does the Appraisal Qualifications Board (AQB) have?Over the establishment of education, experience, and other criteria for licensing, certification, and re-certification of qualified appraisersHow does the Appraisal Qualifications Board (AQB) establish the education, experience, and other criteria for licensing, certification, and re-certification of qualified appraisersdefining, issuing, and promoting such qualification criteriaWhat does the AQB establishQualification criteria for state licensing, certification and recertification of appraisers(T/F) The Appraisal Subcommittee (ASC) is a federal government entityTrueWhat are the Appraisal Subcommittee's duties listed in FIRREAMonitor the requirements established by states for the certification and licensing of individuals who are qualified to preform appraisals in connection with federally related transactions, including a code of professionals Monitor the requirements established by the Federal financial institutions' regulatory agencies Maintain a national registry of state certified and licensed appraisers who are eligible to preform appraisals in federally related transactions Transmit an annual report to Congress Monitor and review the practices, procedures, activities and organizational structure if The Appraisal FoundationWhat are the federal financial institutions regulatory agencies that are directly involved in fair lending1. Department if the Treasury 2. Office of the Comptroller of the Currency (OCC) 3. Federal Deposit Insurance Corp (FDIC) 4. Federal Reserve System (FRB) 5. National Credit Union Administration (NCUA)What is the Ethics Rule according to USPAPAn appraiser must promote and preserve the public trust inherent in appraisal practice by observing the highest standards of professional ethicsWhat is the definition of bias according to USPAPa preference or inclination that precludes an appraiser's impartiality, independence, or objectivity in an assignmentWhat is the definition of the word assignment according to USPAPa valuation service that is provided by an appraiser as a consequence of an agreement with a clientWhat is the definition of the word client according to USPAPThe party or parties who engage, by employment or contract, an appraiser in a specific assignmentWhat is the definition of the word Real Estate according to The dictionary of Real Estate AppraisalAn identified parcel or tract of land, including improvements, if any Land and all things that are a natural part of the land, e.g., trees and minerals, as well as things that are attached to the land by people, e.g., buildings and site improvements. All permanent building attachments such as plumbing, heating and cooling systems; electrical wiring; and built-in items like elevators or lifts are also a part of real estate. Real estate includes all attachments, both below and above ground.What does Real Estate includeBuildings Improvements - Sidewalks - Driveways - Sheds - Fences - Patios - In ground pools - Tennis courts Trees LandscapingWhat is the general definition of Land1. In law, the solid surface on the earth, as distinguished from water 2. One of the four agents of production in economic theoryWhat is the general definition of Subsurface rights1. The rights to the use and profits of the underground portion of a designated property; usually refers to the right to extract coal, minerals, oil, gas, or other hydrocarbon substances as designated in the grant; may include a right of way over designated portions of the surface 2. The right to construct and maintain tunnels, subways, sub cellars, pipelines, sewers, etc.What is the general definition of Air rightsThe right to undisturbed use and control of designated air space above a specific land area within stated elevations.What is the general definition of Transferable development rightsA development right that cannot be used by the landowner, or that the owner chooses not to use, but can be conveyed to landowners in another location or leased for a period of years to then revert back to the original owner; TDRs are said to be transferred from a landowner in a sending district to the use of a landowner in a receiving district.What is the definition of fixtureAn article that was once personal property but has since been installed or attached to the land or building in a rather permanent manner so that it is regarded in law as part of the real estateWhat is the definition of Personal property1. The interests, benefits, and rights inherent in the ownership of tangible objects that are considered by the public as being personal; also called tangible personal property. 2. Identifiable tangible objects that are considered by the general public as being "personal"What is the definition of Trade FixturesArticles placed in or attached to rented buildings by a tenant to help carry out the trade or business of the tenant are generally regarded as trade fixtures. For example, a tenant's shelves used to display merchandise are trade fixtures and retain the character of personal property, as opposed to all other fixtures that were but are no longer personal property when they are attached to and become part of the real estate. Despite the consensus on the concept of trade fixtures in general, applicable law and custom govern when a specific item is a trade fixture in a particular assignmentWhat is the definition of Real property1. An interest or interests in real estate 2. The interests, benefits, and rights inherent in the ownership of real estate. 3. All rights, interests, and benefits related to the ownership of real estateWhat is the definition of the bundle of rights theoryThe concept that compares property ownership to a bundle of sticks with each stick representing a distinct and separate right of the property owner, e.g., the right to use real estate, to sell it, to lease it, to give away, or to choose to exercise all or none of these rightsWhat does the bundle of rights includeUse the property Sell it Lease it Give it away Transfer it by will or trust Choose not to do anythingWhat is the definition of Eminent DomainThe right of government to take private property for public use upon the payment of just compensation. The Fifth Amendment of the U.S. Constitution, also known as the takings clause, guarantees payment of just compensation upon appropriation of private property.What is the definition of Police PowerThe inherent power of government to regulate property in order to protect public health, safety, and general welfareWhat is the definition of EscheatThe right of government that gives the state titular ownership of a property when its owner dies without a will or any ascertainable heirsWhat are some of the private restrictions or limitations on property rightsMortgages Mechanic's liens Deed restrictions Conditions, Covenants and restrictions (CC&Rs)What is the definition of mortgageA pledge of a described property interest as collateral or security for the repayment of a loan under certain terms and conditionsWhat is the definition of mortgage noteA document or a clause in a document in which the borrower accepts responsibility for the repayment of a debtWhat is the definition of mechanic's lienA legal claim placed on real estate by someone who is owed money for labor, services or supplies contributed to the property for the purpose of improving it. Typical lien claimants are general contractors, subcontractors and suppliers of building materials. A mechanics' lien claimant can sue to have the real estate sold at auction and recover the debt from the proceeds.What is the definition of a deed restrictionA provision written into a deed that limits the use of land. They usually remain in effect when title passes to subsequent ownersWhat are CC&Rs defined as"A list of expressed assurances and limitations on land use; often found in contracts between a land subdivider and a lot purchaser. CC&Rs should be specified in the conveyance. Also referred to as conditions, covenants and restrictions or condominium covenants."What is the definition of a legal descriptionA description of land that identifies the real estate according to a system established or approved by law; an exact description that enables the real estate to be located and identified Must be uniqueWhat are the three most common systems of legal descriptions-Lot and block -Metes and bounds -Rectangular surveyWhat is the definition of a lot and block systemA system for the legal description of land that refers to parcels' lot and block numbers, which appear on recorded maps and plats of subdivided land; may also be used for assessment maps most recent of the systems of legal descriptionWhat is the definition of metes and bounds systemA system of the legal description of land that refers to the parcel's boundaries, which are formed by the point of beginning and all intermediate points (bounds) and the courses or angular direction of each point (metes) Earliest of the systems of legal descriptionMetes-refers to bearing or direction relative to North or South 1 Full circle = 360 degrees 1 degree = 60' (60 "minutes") 1' = 60" (60 "seconds") 1 degree = 3,600" (60 seconds per minute x 60 minutes per degree)How many degrees are in 1 full circle360How many minutes are in 1 degree60How many seconds are in 1 minute60How many seconds are in 1 degree3600Bounds-the distances that a boundary runs at that prescribed angle; distances are indicated by feet 1 Mile = 8 Furlongs 1 Furlong = 660 Feet, or 10 Chains 1 Chain = 66 Feet, or 4 Rods 1 Rod = 16.5 Feet, or 25 Links 1 Link = 7.92 Inches, or 0.67 FeetHow many furlongs are in 1 mile8How many feet are in 1 furlong660How many chains are in 660 feet10How many feet are in 1 chain66How many rods are in 66 feet4How many rods are in 1 chain4How many feet are in 1 rod16.5How many Links are in 1 rod25How many inches are in 1 link7.92How many feet are in 1 link0.67How many square feet are in an acre?43,560What is the definition of the rectangular survey systemA land survey system that divides land into townships and ranges approximately six miles square, each normally containing 36 one-square-mile sections of 640 acres, except when adjusted for the curvature of the earthHow many square miles are in 1 township36How many square miles are in 1 section1How many acres are in 1 square mile640How many acres are in 1/4 of a section160How many acres are in 1 quarter-quarter section40What is the definition of an estateA right or interest in property. Defines an owner's degree, quantity, nature, and extent of interest in real property.What is the definition of a fee simple estateAbsolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by governmental powers of taxation, eminent domain, police power, and escheatWhat is the definition of partial interestDivided or undivided rights in real estate that represent less that the whole, i.e., a fractional interest such as a tenancy in common, easement, or life interestWhat is the definition of life interestRight of use, occupancy, and control, limited to the lifetime of a designated party, sometimes referred to as the life tenantWhat is the definition of a leased fee interestThe ownership interest held by the lessor, which includes the right to receive the contract rent specified in the lease plus the reversionary right when the lease expiresWhat is the definition of a leasehold interestthe right held by the leasee to use and occupy real estate for a stated term and under the conditions specified in the leaseWhat is the definition of an easementThe right to use another's land for a stated purposeWhat is the defintion of an easement in grossAn easement that benefits a legal person or entity and not a particular tract of land; an easement having a servient estate but no dominant estateWhat is the definition of a easement appurtenantAn easement that us attached to, benefits, and passes with the transfer of the dominant estate; runs with the land for the benefit of the dominant estate and continues to burden the servient estate, although such an estate may be transferred to the new ownersWhat is the definition of affirmative easementThe right to preform a specific act on a property owned by anotherWhat is the definition of a negative easementAn easement preventing a property owner from certain, otherwise permitted, uses of their land, e.g., agreeing not to do something such as building a wall or fence blocking an adjoining property's view.What is the definition of a conservation easementAn interest in real property restricting future land use to preservation, conservation, wildlife habitat, or some combination of those uses.What is the definition of a drainage easement / right of wayThe right to drain surface water from one's land over the land of one or more adjacent ownersWhat is the definition of a historic preservation easementA type of easement in gross that protects historically or architecturally significant properties by prohibiting or requiring review of future alterations or additions to protected features.What is the definition of a facade easementType of preservation easement that only protects a certain part of a building not including the structureWhat is the definition of a licenseFor real property, a personal, unassignable, and typically revocable privilege or permit to perform some activity on the land of another without obtaining an interest in the property.What is the definition of encroachmentTrespassing on the domain of anotherWhat is the definition of tenancy in severaltyAn estate in property help by one ownerWhat is the definition of tenancyThe holding of property by any form of titleWhat forms of ownership are included in concurrent ownershipTenancy in common Joint tenancy Tenancy by the entiretyWhat is the definition of tenancy in commonAn estate held by two or more persons, each of whom has an undivided interestWhat is the definition of joint tenancyJoint ownership by two or more persons with the right of survivorshipWhat is the definition of tenancy by the entiretyAn estate held by a husband and wife in which neither has a disposable interest in the property during the lifetime of other, except through joint actionWhat is the definition of a land trustA legal vehicle for partial ownership interests in real estate in which independently owned properties are conveyed to a trustee; may be used to effect a profitable assemblage or in some cases to facilitate the assigning of property as collateral for a loanWhat is the definition of a partnershipA business arrangement in which two or more persons jointly own a business and share in its profits and lossesWhat is the definition of a general partnershipAn ownership arrangement in which all partners share in investment gains and losses and each has personal and unlimited responsibility for all liabilitiesWhat is the definition of a limited partnershipAn ownership arrangement consisting of general and limited partners. General partners manage the business and assume full liability for partnership debt, while limited partners are passive and liable only to the extent of their own capitalWhat is the definition of a corporationIn law, an organization that acts as a single legal entity in preforming certain activities , usually business for profit; also includes charitable, educational, and religious organizationsWhat is the definition of a syndicationA private or public partnership that pools funds for the acquisition and development of real estate projects or other business venturesWhat is the definition of a real estate investment trustA corporation or trust that combines the capital of many investors to acquire or provide financing for all forms of real propertyWhat is the definition of cooperative ownershipA form of property ownership in which each unit owner holds stock in a cooperative apartment building or housing corporation.What id the definition of a planned unit development (PUD)A type of building development designed as a grouping of complementary land uses, such as housing, schools, recreation, retail, office and industrial parks contained within a single master developmentWhat is the definition of a deedA written, legal instrument that conveys an estate or interest in real property when it is executed and deliveredGrantorThe seller of the propertyGranteeThe buyer of the propertyWhat is the definition of a grant deedA deed containing, or having implied by law, some but not all of the usual covenants of title A deed in which the grantor warrants that they (1) hasn't previously conveyed the estate being granted (2) hasn't encumbered the property except as noted in the deed, and (3) will convey to the grantee any title to the property acquired after the date of the deedWhat is the definition of a quitclaim dedA form of conveyance in which any interest the grantor posses the property described in the deed in conveyed to the grantee without warranty of titleWhat is the definition of a bargin and sale deedA deed that conveys real estate from a seller to a buyer but doesn't guarantee clear title; used by court officials and fiduciaries to convey property they hold by force of law, but to which they don't hold titleWhat is the definition of a tax deedA deed that conveys title to a property purchased at a tax sale; may or may not convey absolute title, free all prior claims and liens, depending on state lawWhat is the definition of a warranty deedA deed that conveys to the grantee title to the property free and clear of all encumbrances, except those specifically set forth in the documentWhat is the definition of a deed of trustA legal instrument similar to a mortgage document, except that three parties are involved in securing the debt: the borrower, a lender, and a trustee who holds property title when the deed of trust is executed and delivered.What is the definition of a reconveyancePassing of title to real property back to the original ownerWhat is the definition of a contractA legally binding agreement between two or more persons that represents their promise to do or not to do a particular thing.What is the definition of an offerA manifestation of willingness to enter into a bargain, which creates in the offeree the power of acceptance A specific proposal to enter into an agreement with anotherWhat is the definition of an acceptanceA manifestation of willingness to be bound by the terms of an offer made in a manner invited or required by the offerExecuted contracta contract that has been fully performed by both partiesExecutory ContractA contract that has not yet been fully performed or completedValid contracta contract that is legally binding and enforceable on all partiesWhat are the 5 elements of a contractCompetent Parties Mutual Agreement Consideration Lawful objective In writing and signedWhat is the definition of a leaseA contract in which the rights to use and occupy land, space, or structures are transferred by the owner to another for a specified period of time in return for a specified rentWhat is the definition of an amenityA tangible or intangible benefit of real-estate that enhances its attractiveness or increases the satisfaction of the userSecondary Mortgage MarketA market created by government and private agencies for the purchase and sale of existing mortgagesContract for DeedA contract in which a purchaser or real estate agrees to pay a small portion of the purchase price when the contract is signed and additional sums, at intervals and in amounts specified in the contract, until the total purchase price is paid and the seller delivers the deedMortgageA pledge of a described property interest as collateral or security for the repayment of a loan under certain terms and conditionsConventional loanA mortgage that is neither insured nor guaranteed by an agency of the government, although it may be privately insured.Guaranteed mortgageA mortgage in which a part other than the borrower assures payment in the event of defaultInsured mortgageA mortgage in which a party other than the borrower assures payment on default by the mortgagor in return for the payment of a premiumFirst MortgageA mortgage that has priority over all other mortgage liens on a propertyJunior LienA lien placed on property after a previous lien has been made and recordedAmortizationThe process of retiring a debt or recovering a capital investment, typically through scheduled, systematic repayment of the principalFixed rate mortgageA mortgage with an interest rate that does not vary over the life of the loanBaloon MortgageA mortgage that is not fully amortized at maturity, and thus requires a lump sum, or balloon, payment of outstanding balanceGraduated-Payment MortgageA debt secured by real property in which mortgage payments are usually projected to match increases in the borrowers income The periodic payments start out low and gradually increaseAdjustable-rate mortgageA debt secured by real property with an interest rate that may move up or down following a specified schedule or in accordance with the movements of a standard or index to which the interest rate is tiedReverse MortgageType of mortgage whereby age-qualified homeowners systematically borrow against the equity in their homes, receiving regular payments from the lenderDiscount pointsA percentage of the loan that a lender charges a borrower for making a loanDesireA purchaser's wish for an item to satisfy human needs or individual wants beyond essential life-support needs.UtilityIn economics, the ability of a product to satisfy a human want, need, or desireScarcityThe present or anticipated undersupply of an item relative to the demand for it.Effective purchasing powerthe ability of an individual or group to participate in a marketFour main external market forces that affect real propertyGovernmental Economic Social EnvironmentalValueTh present worth of the future benefits that accrue to the real property ownership The monetary relationship between properties and those who buy, sell, or use those propertiesPriceThe amount paid in exchange for a good or commodityCostThe total dollar expenditure to develop an improvement The amount required to create, produce, or obtain a propertyT/F: Cost and value are the sameFalseT/F: Price and value are the sameFalseMarket ValueThe most probable price, as of a specified date, in cash, or in terms equivalent to cash, or in other precisely revealed terms, for which the property should sell after reasonable exposure in a competitive market under all conditions requisite to a fair sale, with a buyer and seller acting prudently, knowledgably, and for self interest, and assuming that neither is under duressArm's length transactiona transaction between two parties that have no relationship with each other and who are negotiating on behalf of their own best interests.Value in exchangeA type of value that reflects the amount that can be obtained for an asset if exchanged between partiesValue in usethe value of a property assuming a specific use, which may or may not be the property's highest and best use on the effective date of the appraisalInsurable valueA type of value for insurance purposesAssessed valueThe value of a property according to the tax rolls in ad valorem taxation; may be higher or lower than market value, or based on an assessment ratio that is a percentage of market value.Intangible valueA value that cannot be imputed to any part of the physical propertyMarket value of the going concernThe market value of an established and operating business including the real property, personal property, financial assets, and intangible of the businessPublic interest valueMonetary worth attributed to features that have no measurable worth in the market but may benefit the public or a specific segment of the publicPrinciple of AnticipationThe percentage that value is created by the expectation of benefits to be derived in the futurePrinciple of ChangeThe result of the cause and effect relationship among the forces that influence real property valuePrinciple of Balancereal property value is created and sustained when contrasting, opposing, or interacting elements are in a state of equilibriumPrinciple of ConformityReal property value is created and sustained when the characteristics of a property conform to the demands of its marketPrinciple of ProgressionThe concept that a lower-priced property will be worth more in a higher-priced neighborhood of comparable propertiesPrinciple of regressionThe concept that a higher-priced property will be worth less in a lower-priced neighborhood of comparable propertiesAgents of productionLand, labor, capital, and entrepreneurial effortFour criteria of Highest and Best UseLegally Permissible, Physically Possible, financially feasible, maximum productiveMarket AnalysisThe study of the supply and demand in a specific area for a specific type of propertyMarket areaThe geographic region from which a majority of demand comes and in which the majority of the competition is locatedMarket area analysisThe objective area analysis of observable and/or quantifiable data indicating discernible patterns of urban growth, structure, and change that may detract from or enhance property valuesMarket segmentationThe process by which submarkets within a larger market are identified and analyzedDisaggerationThe differentiation of a subject property from other properties on the basis of sub classification with differing product characteristicsMarket studyAn analysis of the general market conditions of supply, demand, and pricing for a specific property type in a specific areaAbsorbtion RateThe rate at which vacant space in a property or group of properties for sale or lease has been or is expected to be successfully sold or leased over a specified period of timeAbsorption periodThe actual or expected period required from the time a property, group of properties, or commodity is initially offered for lease, purchase, or use by its eventual users until all portions have been sold or stabilized occupancy has been achievedMarketability analysisA study of how specific property is expected to preform in a specific marketFeasibility analysisThe study of a cost - benefit relationship of an economic endeavorFormula to find the total from part and percentageTotal=Part/percentagePercent change formulaNew / BaseHow many square feet are in an acre?43,560