Exam (elaborations)
REE 4103 Exam 1.
Exam of 16 pages for the course REE 4103 at REE 4103 (REE 4103 Exam 1.)
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REE 4103 Exam 1"Bundle of Rights" for Real Property Ownership - ANS-1) Right to Do nothing
2) Right to Sell all or a part of the property
3) Right to Leave
4) Right to Occupy
5) Right to Mortgage the property
6) Right to Give an interest away
*Ms. GLOD
3 Approaches to Value - ANS-1) Cost
2) Sales comparison
3) Income Capitalization
3 principle methods used to describe real property - ANS-1) metes and bounds
2) the rectangular (government) survey system
3) the lot and block system
3 reporting options: - ANS-1) Self-contained
2) Summary
3) Restricted use
3 types of activities Appraisers do: - ANS-1) Appraisal
2) Appraisal Consulting
3) Appraisal Review
4 Agents of Production - ANS-*Combined to create real estate and that the sum of costs
to develop a property is one of the basic measures of real property value available to
appraisers.
1) Land - the earths surface
2) Labor - direct and indirect costs required to construct and market improvements
3) Capital - accumulated wealth; a sum of money available for investment
4) Entrepreneurial coordination - the ability of an entrepreneur to combine land, labor,
and capital in the development of real prop.
4 economic factors that create value: - ANS-1) Governmental and Legal
2) Economic
3) Social
4) Geographic and Environmental
,4 Economic Values that create value are: - ANS-1) Utility
2) Scarcity
3) Desire
4) Effective purchasing power
Abandonment - ANS-the relinquishing of all interests in the property
Abatement - ANS-the correction of an unlawful building condition or removal of
environmental contamination
Acceleration clause - ANS-allows the lender to demand immediate repayment of the
entire balance if a condition for repayment occurs
Acre - ANS-a measure of land of any shape which equals to 43,560 sqft
Act of God - ANS-damage caused by nature rather than destruction by man
ad valorem tax - ANS-a real estate tax based on the assessed value of the property,
which is not necessarily equivalent to its market value
air rights - ANS-the right to undisturbed use and control of designated air space above a
specific land area within air space above a specific land area within stated elevations.
Such rights may be acquired to construct a building above the land or building of
another or to protect the light and air of an existing or proposed structute on an
adjoining lot
Amenity - ANS-a benefit of real estate that enhances its attractiveness, but is not
essential to its use (scenic view, swimming pool, tennis court)
amenity - ANS-a tangible or intangible benefit of real property that enhances its
attractiveness or increases the satisfaction of the user, but is not essential to its use
analysis of highest and best use - ANS-Land valuation is directly related to highest and
best use analysis.
*includes consideration of both the land as though vacant and the property as improved.
The conclusion is specified in terms of use, timing, and market participants.
Annexation - ANS-a city adding additional land to increase land
, Anticipation - ANS-the appraisal principle which holds that Value can increase or
decrease based on the expectation of some future benefit or detriment produced by the
property.
Appraisal - ANS-the act or process of developing an opinion of value
Arterial - ANS-a major through street that carries a large volume of traffic
assemblage - ANS-the combining of two or more parcels, usually but not necessarily
contiguous, into one ownership or use; the process that creates plottage value
assessed value - ANS-the value of a property according to the tax rolls in ad valorem
taxation
*may be higher or lower than market value
assessed value - ANS-the 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
Attributes of Land - ANS--Each parcel is unique in its location and composition
-physically immobile
-durable
-supply is finite
-useful to people
Automated Valuation Model (AVM) - ANS-computer software program that uses
property database information to pull relevant comparable information and assign a
value or range of value to a particular property
Avigation Easement - ANS-an easement over private property abutting an airport
runway, which limits the height of crops, trees, structures, etc...
Balance - ANS-the appraisal principle that states that the greatest value in a property
Will occur when the type and size of the improvements are proportional to each other as
well as the land.
base line - ANS-in the government system line running due east and west
Base Rent - ANS-a specific amount used as a minimum rent in a lease which uses a
percentage or overage for additional rent
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