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Residential Sales Comparison and Income Approaches > Chapter 4: Procedures of the sales comparison approach > Flashcards

Chapter 4: Procedures of the sales comparison approach Flashcards

1
Q

Adjustments only need to be made (and should be made) when there is a

A

significant, measurable difference between the subject property and a comparable sale.

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2
Q

The order in which quantitative adjustments are applied to the sale prices of comparable properties

A

sequence of adjustments

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3
Q 
“Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat” is the definition of
Leased fee
Partial Interest
An estate
Fee simple estate
A

fee simple estate

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4
Q 
“Divided or undivided rights in real estate that represent less than the whole, i.e., a fractional interest such as a tenancy in common, easement, or life interest” is the definition of
Condominium
Partial interest
Divided interest
Limited partnership
A

partial interest

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5
Q 
In traditional appraisal theory, the first step in the adjustment sequence is an adjustment for
Market conditions
Real property rights appraised
Sales or financing concessions
Physical characteristics
A

real property rights appraised

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6
Q

There are many kinds of partial interests. Some are specific forms of ownership that are created by special situations. These would include:

A

life interests
leased fee interests
leasehold interests

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7
Q

Rights of use, occupancy, and control, limited to the lifetime of a designated party, sometimes referred to as the life tenant.

A

life interest

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8
Q

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

A

leased fee interest

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9
Q

The right held by the lessee to use and occupy real estate for a stated term and under the conditions specified in the lease

A

leasehold interest

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10
Q

An easement that benefits a legal person or entity (individual, corporation, partnership, LLC, government entity, etc.) and not a particular tract of land; an easement having a servient estate but no dominant estate.

A

easement in gross

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11
Q

An easement that is 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 new owners

A

easement appurtenant

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12
Q

The right to perform a specific act on a property owned by another

A

affirmative easement

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13
Q

An easement preventing a property owner from certain, otherwise permitted, uses of his or her land, e.g., agreeing not to do something such as building a wall or fence blocking an adjoining property’s view.

A

negative easement

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14
Q

Examples of negative easements would include:

A 
Conservation easements
Drainage easements
Historic preservation easement
Subsurface rights
Air rights
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15
Q

An interest in real estate restricting future land use to preservation, conservation, wildlife habitat, or some combination of those uses. A conservation easement may permit farming, timber harvesting, or other uses of a rural nature as well as some types of conservation-oriented development to continue, subject to the easement

A

conservation easement

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16
Q

The right to drain surface water from one owner’s land over the land of one or more adjacent owners

A

drainage easement

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17
Q

The preservation of historic sites, structures, and districts by regulation or rehabilitation.

A

historic preservation

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18
Q

raditionally considered a type of preservation easement that protected only the facade of a building, not the entire structure.

A

facade easement

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19
Q

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.

A

subsurface rights

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20
Q

The right to undisturbed use and control of designated air space above a specific land area within stated elevations. Air 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 structure on an adjoining lot. Air rights do not always include development rights

A

air rights

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21
Q

A 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

A

transferable development rights

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22
Q 
"The right to perform a specific act on a property owned by another" is the definition of
License
Negative Easement
Encroachment
Affirmative Easement
A

affirmative easement

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23
Q

A leasehold interest may have value when
The Contract Rent is less than Market Rent
The Contract Rent is more than Market Rent
There is a positive cash flow
The capitalization rate is more than the discount rate

A

the contract rent is less than market rent

24
Q 
“An easement that benefits a legal person or entity (individual, corporation, partnership, LLC, government entity, etc.) and not a particular tract of land; an easement having a servient estate but no dominant estate” is the definition of a(an)
Easement Appurtenant
Easement in Gross
License
Negative easement
A

easement in gross

25
Q

most common types of partial interests:

A

Condominiums
Cooperatives
PUDs
Timeshares

26
Q

A multiunit structure, or a unit within such a structure, with a condominium form of ownership.

A

condominium

27
Q

A form of property ownership in which each unit owner holds stock in a cooperative apartment building or housing corporation. Stockholders receive a proprietary lease on a specific apartment and are obligated to pay a monthly maintenance charge that represents the proportionate share of operating expenses and debt service on any underlying mortgage, which is paid by the corporation. This proportionate share is based on the proportion of the total stock owned

A

cooperative

28
Q

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 development; usually includes common area and common area maintenance obligations in the form of owners association dues

A

PUD

Planned unit development

29
Q

Limited ownership interests in, or the rights of use and occupancy of, residential apartments or hotel rooms. There are two forms of timesharing: fee timeshares and nonfee timeshares. Fee timeshares may be based on timeshare ownership or interval ownership. There are three types of nonfee timeshares: a prepaid lease arrangement, a vacation license, and a club membership

A

timesharing

30
Q 
“A multiunit structure, or a unit within such a structure, with a condominium form of ownership” is the definition of a
Condominium
Cooperative
Life estate
REIT
A

condominium

31
Q 
The most desirable form of timesharing is called \_\_\_\_\_\_\_\_\_\_\_ timesharing.
Nonfee
Fee
Title
Warranty
A

fee

32
Q 
“Trespassing on the domain of another” is the definition of
Adverse possession
Easement
Encroachment
Conservation easement
A

encroachment

33
Q

An estate held by two or more persons, each of whom has an undivided interest.”

A

tenancy in common

34
Q

Joint ownership by two or more persons with the right of survivorship.

A

joint tenancy

35
Q

An estate held by a husband and wife in which neither has a disposable interest in the property during the lifetime of the other, except through joint action

A

tenancy by the entirety

36
Q

Besides the forms of individual ownership that we previously mentioned, real property can be owned by various legal entities, including:

A

Land Trusts
Partnerships
Corporations
Syndications

37
Q

A 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 loan.

A

land trust

38
Q

A business arrangement in which two or more persons jointly own a business and share in its profits and losses

A

partnership

39
Q

An ownership arrangement in which all partners share in investment gains and losses and each has personal and unlimited responsibility for all liabilities.

A

general partnership

40
Q

“An 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 capital contributions

A

limited partnership

41
Q

In law, an organization that acts as a single legal entity in performing certain activities, usually business for profit; also includes charitable, educational, and religious organizations

A

corporation

42
Q

A private or public partnership that pools funds for the acquisition and development of real estate projects or other business ventures

A

syndication

43
Q

“A corporation or trust that combines the capital of many investors to acquire or provide financing for all forms of real property.

A

Real Estate Investment Trust (REIT)

44
Q

Which statement is TRUE about syndications?
They are private partnerships only.
They are public partnerships only.
They can be either a private or public partnership.
They must be corporations.

A

They can be either a private or public partnership.

45
Q 
An estate in severalty involves \_\_\_\_\_\_\_\_\_\_\_\_ owner(s).
Only one
More than one
At least two
Corporate
A

`only one

46
Q 
A limited partnership has
Limited partners only
General partners only
Both general and limited partners
Only one general partner
A

both general and limited partners

47
Q 
"A limitation that passes with the land regardless of the owner; usually limits the property's type or intensity of use” is the definition of
Encroachment
Air rights
Deed restriction
Adverse possession
A

deed restriction

48
Q 
A tenancy in severalty involves \_\_\_\_\_\_\_\_\_\_\_\_ owner(s).
Only one
More than one
At least two
Corporate
A

only one

49
Q 
Which is NOT a form of partial interest?
Fee simple estate
Life estate
Leased fee estate
Leasehold estate
A

fee simple estate

50
Q 
Fannie Mae says most appraisal forms require the appraiser to use a \_\_\_\_\_\_\_\_\_\_ sales comparison analysis in which he or she assigns a dollar value to reflect the \_\_\_\_\_\_\_\_\_ reaction to any features of the comparable sales that differ from those of the subject property.
Quantitative, market’s
Quantitative, seller's
Qualitative, market’s
Qualitative, seller’s
A

quantitative, market’s

51
Q 
An estate in severalty involves \_\_\_\_\_\_\_\_\_\_\_\_ owner(s).
Only one
More than one
At least two
Corporate
A

one

52
Q 
In traditional appraisal theory, the first item in the adjustment sequence is
Market conditions
Real property rights appraised
Sales or financing concessions
Physical characteristics
A

real property rights appraised

53
Q 
Which of the following are NOT classified as negative easements?
Conservation easements
Drainage easements
Historic preservation easements
Transferable Development Rights
A

transferable development rights

54
Q 
"The order in which quantitative adjustments are applied to the sale prices of comparable properties” is the definition of
Ranking
Ordinal analysis
Sales grid
Sequence of adjustments
A

sequence of adjustments

55
Q 
A remainderman is found in a \_\_\_\_\_\_\_\_\_ interest.
Fee simple
Life
Leased fee
Leasehold
A

life

56
Q 
"Trespassing on the domain of another” is the definition of
Adverse possession
Easement
Encroachment
Conservation easement
A

encroachment

Residential Sales Comparison and Income Approaches (19 decks)

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