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JULY-72024-Mock-Exam-01-100pts
JULY-72024-Mock-Exam-01-100pts
State Finished
Completed on Sunday, 7 July 2024, 9:36 PM
Time taken 1 hour 23 mins
Grade 80.00 out of 100.00
Question 1
Correct
a. Land
b. Improvements
c. Unique properties
d. Single family homes
Question 2
Incorrect
a. The differences in the motivations of the sellers and buyers on the date of sale
b. The differences in the market on the effective date and the comparable
c. The differences in the rights in rights in realty transferred between the subject and comparable
d. Physical differences in the subject and the comparable
The correct answer is: The differences in the rights in rights in realty transferred between the subject and comparable
Question 3
Correct
The correct answer is: To the comparable to make them like the subject appraised
Question 4
Incorrect
The correct answer is: Describe in the report the appraiser’s lack of knowledge and/or experience and the steps taken to complete the
assignment competently.
Question 5
Correct
005. After two of more approaches to value have been tested, the appraiser should:
Correct
006. All but which of the following expenses is subtracted from a property’s gross income to determine its net income?
a. Maintenance
b. Income taxes
c. Management
d. Insurance expense
Question 7
Correct
007. All of the following are examples of variable operating expenses except:
Question 8
Correct
008. All other factors being equal, as the location of an income property becomes less desirable, the cap rate used will be:
a. Lower
b. Higher
c. Less reliable
d. Unaffected
Correct
009. Among the various demographic effects on housing demand a highly mobile population will generally require more than a stable
population.
a. Financing
b. Rental units
c. New construction
d. Bedroom
Question 10
Correct
010. An account whose balance represents a third party’s interest in the assets of the company is a/an:
a. Capital account
b. Contra account
c. Asset account
d. Liability account
Question 11
Correct
011. An adjustable-rate mortgage, a straight note, and a fully amortized fixed-rate loan differ primarily in their:
a. Amount
b. Payment plan
c. Security
d. Maturity period
Correct
012. An affirmative statement attesting to the fact that the Valuer has followed the ethical and professional requirements in performing the
assignment
a. Compliance Statement
b. Valuer’s Certifications
c. Statement of Facts and Limiting Conditions
d. None of these
Question 13
Correct
013. An allowance for vacancies and collections losses is usually calculated as a percentage of:
a. Net income
b. Actual gross income
c. Potential gross income
d. Taxable income
Question 14
Incorrect
014. An analysis of sales of several properties indicates a typical ratio of site value to total value. This ratio is then applied to the subject
property.
Correct
Question 16
Incorrect
016. An appraisal for the price that a property would sell for based on a quick sale would be | | estimating what type of value?
a. Market Value
b. Use Value
c. Liquidation value
d. Going-concern value
Question 17
Incorrect
Correct
The correct answer is: Market conditions change from time to time
Question 19
Correct
a. Property description
b. Estimate of market value
c. Opinion of property condition
d. All of these
Question 20
Correct
a. 90 days
b. Until the property is sold
c. One year
d. Hie date of the appraisal
Incorrect
021. An appraiser considers a house’s lay-out, traffic patterns, and mechanical systems primarily as aspects of its:
a. Architectural quality
b. Type and style
c. Amenity value
d. Functional utility
Question 22
Incorrect
022. An appraiser has determined that the annual NOI of the subject property P 1,300,000.00. By screening the market data, the appraiser has
compiled:
a. 77%
b. 0.7%
c. 7.7%
d. 7%
Question 23
Correct
a. Clipboard
b. Measuring tape
c. Camera
d. All of these
Correct
024. An appraiser is analyzing the current market value of an investment property with a land value of P 100,000.00 (estimated by analyzing
comparable):
a. P 166,290.00
b. P 23,000.00
c. P 100,000.00
d. P 266,290.00
Question 25
Correct
Question 26
Correct
a. Creates
b. Estimates
c. Establishes
d. Critiques
Correct
027. An appraiser who describes a property as an over-improvement for its neighborhood is primarily applying of:
Question 28
Correct
028. An easement to protect certain historic properties through prohibition of certain physical changes is classified as a/an:
a. Easement appurtenant
b. Preservation easement
c. Historic easement
d. All of the above
Question 29
Correct
a. Value system
b. Market
c. Economic base
d. Price mechanism
Incorrect
a. Replaceable
b. Functional depreciation
c. Physical depreciation
d. Economic obsolescence
e. All of the above
Question 31
Incorrect
031. An estimate of the rate which a particular type of space will be sold each year is referred to as:
a. Presales
b. Occupancy
c. Absorption
d. Rent up
Question 32
Incorrect
The correct answer is: Gasoline fuel pumps bolted to the ground in a tenant-occupied property
Question 33
Incorrect
033. An example of external obsolescence in a single family residence could be the result of:
a. An outdated kitchen
b. Construction of a freeway adjacent to the property
c. Peeling exterior paint and cracked exterior stucco
d. A swimming pool taking up most of the back yard where today’s buyer would prefer a vegetable garden
Question 34
Correct
034. A homeowner purchased two adjacent lots in a tract subdivision 20 years ago and built a single-unit residence entirely on one lot,
utilizing:
a. Surplus land
b. Vacant site
c. Excess land
d. Underutilized site
Question 35
Correct
a. An item that is scheduled to be cured but has not yet been cured
b. An item that is already cured
c. An item that cannot be physically cured
d. An item that will not return as much in value as it cost to fix
The correct answer is: An item that will not return as much in value as it cost to fix
Question 36
Correct
a. In the employ of either the entity that owns the assets or the accounting firm responsible for preparing the entity’s financial record
and/
b. Generally capable of meeting all the requirements of independence and professional objectivity required under the International
Valuation
c. Both of these
d. None of these
Question 37
Correct
037. An investor paid P 50,000,000.00 for a building that earns a net of P 5,000,000.00 per year. What is the capitalization rate of the
investment?
a. 9.5% pa
b. 10% pa
c. 10.5% pa
d. None of these
Question 38
Incorrect
The correct answer is: The cost to cure is less than the expected increase in value
Question 39
Correct
039. An office building constructed in 1998 for P 14,900,000.00 had a cost index at that time of 177. What present cost index is 354? The
estimated:
a. P 28,800,000.00
b. P 29,800,000.00
c. P 30,800,000.00
d. None of these
Question 40
Correct
The correct answer is: Total operating expense and effective gross income
Question 41
Correct
041. An opinion of market value via the sales comparison approach is through the eyes of the:
a. Uninformed buyers
b. Well-informed brokers
c. Well-informed sellers
d. Well-informed purchasers
Correct
Question 43
Correct
Question 44
Correct
a. Contractor’s profit
b. Entrepreneurial profit
c. Project profit
d. Management profit
Correct
a. Setting a value
b. An estimate of value
c. A prediction of value
d. A mathematical calculation of value
Question 46
Correct
The correct answer is: To solve problems that involve real estate valuation
Question 47
Correct
Correct
048. Arrangements for access to landlocked parcel would most likely be described in the section of an appraisal report
Question 49
Correct
049. As with private sector assets, public sector assets fall into:
a. Operational assets
b. Non-operational assets
c. Both of these
d. Either of these
Question 50
Correct
Correct
051. Assets that are inextricably combined with others and that may include specialized buildings, machinery, and equipment
a. Plant
b. Machinery
c. Equipment
d. Business asset
Question 52
Correct
052. At the regional level, the real estate market is usually most affected by:
Question 53
Correct
053. Authorizes the local legislative body to enact land use plan and zoning ordinance:
Correct
a. Direct cost
b. Indirect cost
c. Overhead expense
d. Incidental expense
Question 55
Correct
Question 56
Incorrect
a. The same as
b. Greater than
c. Less than
d. Unrelated to
Correct
Question 58
Correct
Question 59
Correct
059. Condemnation of private property for public use is called the right of:
a. Seizure
b. Escheat
c. Eminent Domain
d. Acquisition
Correct
Question 61
Correct
061. Co-owners who have an equal right of possession coupled with a right of survivorship have:
a. Tenancy in common
b. Joint tenancy
c. Tenancy in partnership
d. Marital property
Question 62
Correct
Correct
063. Could a newly constructed building that is the highest and best use of its site ever be worth less than it cost?
Question 64
Incorrect
064. Current listing that have been exposed to the market for a reasonable time:
The correct answer is: Tell the appraiser what the subject’s market value is
Question 65
Correct
Correct
066. Defect in a property cause by a deficiency or super adequacy in the structure, materials, or design would be an example of:
Question 67
Incorrect
Question 68
Correct
Correct
069. Demographic patterns such as family size, and community attitudes such as pride of ownership are examples of________factors
influencing:
Question 70
Correct
070. Depending on market practice, entrepreneurial profit can be estimated as percentage of:
Question 71
Correct
071. During the research of a subject property an appraiser learns the occupants (parents) have been granted a life estate by their children.
What?
a. Remainder-man
b. Life tenant
c. Trustee
d. Trustor
Correct
a. Market segment
b. Bundle of rights
c. Location and immobility
d. Amenity value
Question 73
Correct
Question 74
Correct
The correct answer is: Demand which can be met by the available supply at any given time
Question 75
Correct
075. Effective gross income (EGI) is the anticipated income from operation of a project after adjustment for:
a. Operating expenses
b. Vacancy and credit loss
c. Realty tax and insurance
d. All of the above
Question 76
Correct
a. Items that represent the bottom line price after all of the adjustments
b. Items that represent a breakdown of the prices paid for real estate to vary
c. The characteristics that cause the prices paid for real estate to vary
d. A weatherman’s comparison report
The correct answer is: The characteristics that cause the prices paid for real estate to vary
Question 77
Correct
077. Elements of comparison for which comparable data may be adjusted include:
Incorrect
Question 79
Correct
079. Estimating market value requires identification of the desires and properties of:
Question 80
Correct
080. Examples of assumptions that may be appropriate in different circumstances, or for different valuation purposes include:
a. That the plant and equipment are valued as a whole, in-situ (in place) and as part of the business as a going concern.
b. That the plant and equipment are valued in-situ but on the assumption that the business is closed.
c. That the plant and equipment is valued as individual terms for removal from their current location.
d. All of these
Correct
a. Reflect the cost to update the property up to the new home market standards.
b. Reflect anything paid by the buyer during the warranty period.
c. Reflect the cost of replacing the decorating to bring the home up to the buyer’s standards.
d. Reflect anything the buyer knew they would have to correct and probably factored the cost of into the price paid.
The correct answer is: Reflect anything the buyer knew they would have to correct and probably factored the cost of into the price paid.
Question 82
Correct
a. Rescission
b. Breach
c. Novation
d. Reformation
Question 83
Incorrect
a. The differences in sale prices of properties that sold for cash or market value rate financing and the ones that sold with special
financing.
b. The differences in the market on the effective date and the comparable.
c. The differences in sale prices of properties that sold for cash and the ones that sold with financing.
d. The differences in the motivations of the sellers and buyers on the date of sale.
The correct answer is: The differences in sale prices of properties that sold for cash or market value rate financing and the ones that sold with
special financing.
Question 84
Correct
084. For a fully amortized loan, a longer maturity period means periodic payments and total amount paid.
Question 85
Correct
085. For appraising a large apartment building, which valuation method would probably be given the greater weight?
a. Cost depreciation
b. Development
c. Sales comparison
d. Income capitalization
Question 86
Correct
086. For assets in the public sector, the assumption equivalent to a business continuing as a going concern is that the public sector assets:
a. Will continue to be used for the provision of the relevant public good or service.
b. Will cease to be used for the provision of the relevant public good or service
c. Both of the above
d. None of these
The correct answer is: Will continue to be used for the provision of the relevant public good or service.
Question 87
Incorrect
087. For income tax purposes adjusted basis is original basis less:
a. Property improvements
b. Excess depreciation
c. Allowable depreciation
d. Outstanding mortgage balance
Question 88
Correct
Question 89
Incorrect
089. For the appraisal of a single residential condominium unit, which approach to value is least appropriate?
a. Replacement cost
b. Sales comparison
c. Income capitalization
d. Gross rent multiplier
Correct
090. From an appraisal standpoint, architecture, lay-out, and mechanical systems are primarily aspects of a structures:
a. Amenity value
b. Functional utility
c. Value in exchange
d. Replacement or reproduction cost
Question 91
Correct
The correct answer is: Factors inherent in the design of the property
Question 92
Correct
The correct answer is: A process in which older homes in a neighborhood are remodeled and different residents replace the lower-income
residents
Question 93
Correct
a. Tax burdens
b. Special assessments
c. Zoning, building, and housing codes
d. Changes in property use
Question 94
Correct
a. Quantitative adjustment
b. A computer used in land valuation only
c. Computer valuation using a graphics card
d. Quantitative analysis
Question 95
Incorrect
095. Gross rent multiplier analysis should be used in the appraisal of a single-family, owner-occupied house:
a. Never
b. Always, as one of the approaches which are reconciled in the final estimate
c. If there is an active buyer intends to rent the property out
d. Only if the buyer intends to rent the property out
Correct
096. Growth rate, land use, transportation, utilities, and property compatibility are items in the section of the report:
a. Subject
b. Neighborhood
c. Site
d. Improvements
Question 97
Correct
The correct answer is: Includes two parts when the property is improved, the highest and best use as though vacant and the highest and best
Question 98
Correct
Correct
099. Highest and best use analysis requires an estimate of the use as though vacant and as improved to:
Question 100
Correct
100. Highest and best use is addressed in which section of the report:
a. Improvements
b. Site
c. Cost approach
d. None of these