McKissock Basic Appraisal Principles Exam Questions and Answers

McKissock Basic Appraisal Principles Exam Questions and Answers An appraiser paid a referral fee in conjunction with an assignment. Which statement is TRUE regarding this situation, according to USPAP? -Answer-The appraiser must disclose that a fee was paid, but does not have to disclose the amount paid. An appraiser finds out after completing an appraisal that the lender/client's loan did not close. What should the appraiser do regarding the appraisal fee? -Answer-Charge the agreed-upon fee regardless of whether the loan closed An appraiser finds that the pending sale price of the subject residential property is not supported by market data. To avoid causing a problem for the buyer and seller, the appraiser reconciles the value conclusion to meet the sale price anyway. Which statement is true regarding this situation? -Answer-The appraiser has violated his ethical obligations by doing this. An appraiser accepts an appraisal on a property that is under contract for purchase. Based on a request from the client, the appraiser agrees to select and use only the data that supports the pending contract sale price of the subject property. Which statement is TRUE regarding this situation? -Answer-The appraiser has violated the ETHICS RULE by doing this. Appraiser Amy agrees to pay a fee to be included on Lender B's "approved appraiser" list. Which statement is TRUE regarding this situation? -Answer-This is permissible under USPAP as long as it is disclosed. The fact that the appraiser has previously appraised a property is: -Answer-Not confidential information, and can be disclosed Jack, an appraiser, needs to locate information on zoning ordinances for a property he is appraising. Which resource would most likely have this type of information available on its website? -Answer-Local government website The web site with the largest amount of demographic information is -Answer- EDI stands for -Answer-Electronic Data Interchange Fannie Mae and Freddie Mac created the Uniform Mortgage Data Program (UMDP) for the purpose of -Answer-Standardizing appraisal data Standardizing lending data provided to Fannie Mae and Freddie Mac Protecting sensitive data UAD compliance is required for single-family appraisal reports prepared for -Answer-all of these; VA loan, FHA loan, a conventional loan that is going to be sold to Fannie Mae What would be the correct way to format the date March 15, 2013 in a UAD-compliant appraisal report? -Answer-03/15/2013 Land is a long lasting asset, and has a long economic life as compared to other assets. What characteristic of land does this refer to? -Answer-durability An appraisal is best described as -Answer-an opinion of value "An identified parcel or tract of land, including improvements, if any" is the definition of - Answer-real estate Modern definitions of the word "appraisal" have replaced the word _______ with ________. -Answer-estimate, opinion The public restriction on property rights that allows the government to place a lien on a property is -Answer-taxation Physical land and appurtenances attached to the land is the definition of -Answer-real estate An appraisal is a( n) ____________ of value. -Answer-opinion Which of the following would MOST LIKELY be considered personal property? -Answer- window air conditioner Which is NOT considered to be real estate? -Answer-property rights The process of eminent domain is administered through -Answer-condemnation Which is NOT a public restriction of private property rights? -Answer-easement "The earth's surface, both land and water, and anything that is attached to it whether by the course of nature or human hands" is the definition of -Answer-real estate "The interests, benefits, and rights, inherent in the ownership of real estate" is the definition of -Answer-real property Trade fixtures are most commonly found in ___________ property. -Answer-rented commercial property "A pledge of a described property interest as collateral or security for the repayment of a loan under certain terms and conditions" is the definition of -Answer-Mortgage "A document or a clause in a document in which the borrower accepts responsibility for the repayment of a debt" is the definition of -Answer-Mortgage Note Physical land and appurtenances attached to the land is the definition of -Answer-Real Estate Police power would include all of the following EXCEPT -Answer-Taxation A rectangular lot measures 222.5 feet by 1372.25 feet. How many acres is this? - Answer-7.01 Which system of legal descriptions came into common usage in the 1950s with the development of large subdivisions? -Answer-Lot and block Which system of legal description is the earliest of systems used in the U.S.? -Answer- Metes and bounds How many acres are in a quarter-section? -Answer-Section =640 *640/4= 160 Which system of legal descriptions is based on standardized measurements and consistent rectangles and squares? -Answer-Rectangular survey A farmer purchased a half-section for $456,000. How much did he pay for the property per acre? -Answer-*640/2 = 320 456,000/320= 1425 In the rectangular survey system, a section contains _____ square mile(s) -Answer-1 The most recent system of legal descriptions is the ______________ system. -Answer- Lot and Block A rod contains ______ feet. -Answer-16.5 In the rectangular survey system, a township contains ______ square miles. -Answer- 36 A lot contains 2.41 acres. It sells for $150,000. How much did it sell for per square foot? -Answer-2.41 X 43560 = 104,979.6 150,000 / 104979.6 = $1.43 A chain contains ____ feet. -Answer-66 The bearing relative to north or south is called -Answer-Metes Mary Jones has a property with no road frontage. She has an access right of way across the property of her neighbor Bob Smith for ingress, egress, and regress. Who has the dominant tenement in this situation? -Answer-Mary Jones True or False? When a property is leased, two separate estates are created. -Answer- True An easement that has, by definition, both dominant and servient tenements is -Answer- an easement appurtenant True or False? Fee simple estate is not limited by the governmental powers of taxation, eminent domain, police power, and escheat. -Answer-False Martha wants to purchase a property with her three sons. She wants a 70% ownership interest, and her sons will each have a 10% interest. What form