Texas Senior Property Tax Consultant
Exam
Economic Forces - answer A consumer's ability to purchase and use real estate.
Examples are; Income Levels, Employment, Housing Construction Costs, Credit
Availability, Interest Rates and Utility Costs
Social Forces - answer Relate to trends in society or culture. Sometimes imagined,
sometimes based on actual facts or figures. Include: Population Trends, Family
Composition, Aging of Americas Population, Evolution of Home Offices, Environmental
Consciousness, Leisure Time, and The family and functional utility.
Governmental Forces - answer Maybe on national, state or local level and include:
Taxes, Federal monetary policy, Real Estate taxes and assessments, Labor issues,
Quality of Schools, Quality of Services.
Environmental / Physical Forces - answerEasy to identify, the desirability of these
factors depend upon the property use type. They include: Location, Transportation,
Topography, and Climate/weather.
General Warranty - answerA title transfer that offers a guarantee of the title from the
seller to the buyer.
Leasehold Estate - answerA tenant or lessee may most likely possess this type of
interest.
Manner of Attachment - answerUsed in determining when personal property becomes a
fixture.
Real Property - answerAn intangible interest in real estate.
Real Estate - answerThe tangible bricks and mortar and land.
Police Power - answerBuilding Codes and zoning represent this power of government.
Private Restrictions - answerA lease and mortgage
Encroachment - answerA toolshed that is partly on a neighbor's lot
Severalty - answerThe most common form of ownership. Means one (Individual) - One
person or corporation owns entire bundle of rights
,A type of special ownership - answerCondominium
A leased fee estate is an interest controlled by the - answerLandlord
A leasehold estate is created by a? - answerLease
The most common value estimate provided in an appraisal of a single-family home. -
answerMarket Value
Which type of appraisal would likely be sought in the appraisal of an established
business operation? - answerGoing Concern Value
Which valuation would be based on a limited marketing period? - answerLiquidation
Value
Which value provides the basis of the real estate tax liability for a property? -
answerAssessed Value
What is the value to a specific occupant? - answerValue in use
The value to a particular investor - answerInvestment Value
The four agents of production - answerland, labor, capital, entrepreneurship
To have value, an item must possess what characteristics? - answerScarcity, utility,
effective purchasing power, and desirability.
Comparing an items value to the items cost is an evaluation of the items -
answercontribution
What two components comprise effective demand? - answerDesire and effective
purchasing power
Scarcity, utility, effective purchasing power, and desire all relate to - answerEconomic
Characteristics of Value
Decreasing Returns - answerWhen the yield of a product falls as the cost is increased.
Profit - answerEntrepreneurial incentive
Demand Unit - answerThe combination of desirability and effective purchasing power
economies of scale - answerThe theory that each incremental item becomes less
expensive as the volume is increased.
Neighborhood - answerA group of complimentary land uses
,Mortgage - answerA capital market instrument
Amortization - answerThe systematic reduction of debt over time
A point equals - answer1 percent of the loan amount
An organized exchange conduit - answerA characteristic indicative of an efficient market
Feasibility study - answerExamines the profitability of a proposed property.
Office of Management and Budget - answerBody of Government that controls fiscal
policy
Principal and interest - answerPayments of an amortizing mortgage are comprised of
these.
Adjustable rate mortgage - answerA mortgage in which the interest rate floats with an
indexed rate.
General Data - answerThe four forces on real estate -Social, economic,
physical/environmental, and governmental.
Specific Data - answerData gathered in the analysis of a certain property (Subject
Property)
Primary Data - answerData that the appraiser personally collects
In identifying the real estate, the appraiser should consider the following. -
answerLocation of the land
Most real estate appraisal assignments involve the valuation of this interest -
answerFee simple interest
Real estate and real property are - answerSeparate and distinct
Forms of identifying real estate - answergovernmental survey, lot and block system, and
metes and bounds
If an appraiser is uncertain as to whether a fixture is to be treated as real or personal
property, he should - answerconsult with the client as to treatment of the item
When appraising fractional interests, the appraiser usually begins with - answerthe
entire bundle-of-rights (fee simple)
, An example of an economic force - answerA manufacturing plant reopening after
closing, and the Disney theme park outside Orlando and its impact on uses of land in
southwest Orlando.
Examples of social forces - answerAn increasing divorce rate, and an area that has a
reputation for being a neighborhood with a low crime rate and excellent quality of life,
and Los Angeles having some major issues in its economic expansion in the 1980's
including civil rights issues, crime and illegal immigration. Families more aware of
recycling their consumer wastes than ever before.
Examples of governmental forces - answerStrict building codes requiring poured
concrete foundations for homes within the city and a zoning code that does not allow
satellite dishes in the front yard. The department of defense building a nuclear
submarine base in an area increasing development.
Examples of Environmental forces - answerA neighborhood that has excellent views of
the ocean, and San Francisco, a city influenced by its strategic location along the
Pacific Ocean and its favorable climate. A severe hurricane damaging the Miami region
in August 1991.
A fee simple interest in a property is an example of - answerReal Property
A window air conditioner that is permanently attached to a home and built in with
caulked, side/top/bottom molding and screwed to the window frame is an example of a -
answerFixture
Forms of ownership limitations - answerLease, Mortgage and easement
Forms of special ownership - answerCondominium, Co-Operative, Time-share
A ceiling fan installed in a home is considered - answerA fixture that is now part of the
real estate
Forms of legal descriptions - answerMetes and Bounds method, Monument System,
Government Survey System
What is a condition in the definition of market value? - answerBuyer and seller are
typically motivated
What is a reasonable marketing period for a single-family residence? - answerUnkown:
each individual market is different and a reasonable marketing period depends upon an
analysis of each market.
By definition, market value is? - answerThe most probable price
Exam
Economic Forces - answer A consumer's ability to purchase and use real estate.
Examples are; Income Levels, Employment, Housing Construction Costs, Credit
Availability, Interest Rates and Utility Costs
Social Forces - answer Relate to trends in society or culture. Sometimes imagined,
sometimes based on actual facts or figures. Include: Population Trends, Family
Composition, Aging of Americas Population, Evolution of Home Offices, Environmental
Consciousness, Leisure Time, and The family and functional utility.
Governmental Forces - answer Maybe on national, state or local level and include:
Taxes, Federal monetary policy, Real Estate taxes and assessments, Labor issues,
Quality of Schools, Quality of Services.
Environmental / Physical Forces - answerEasy to identify, the desirability of these
factors depend upon the property use type. They include: Location, Transportation,
Topography, and Climate/weather.
General Warranty - answerA title transfer that offers a guarantee of the title from the
seller to the buyer.
Leasehold Estate - answerA tenant or lessee may most likely possess this type of
interest.
Manner of Attachment - answerUsed in determining when personal property becomes a
fixture.
Real Property - answerAn intangible interest in real estate.
Real Estate - answerThe tangible bricks and mortar and land.
Police Power - answerBuilding Codes and zoning represent this power of government.
Private Restrictions - answerA lease and mortgage
Encroachment - answerA toolshed that is partly on a neighbor's lot
Severalty - answerThe most common form of ownership. Means one (Individual) - One
person or corporation owns entire bundle of rights
,A type of special ownership - answerCondominium
A leased fee estate is an interest controlled by the - answerLandlord
A leasehold estate is created by a? - answerLease
The most common value estimate provided in an appraisal of a single-family home. -
answerMarket Value
Which type of appraisal would likely be sought in the appraisal of an established
business operation? - answerGoing Concern Value
Which valuation would be based on a limited marketing period? - answerLiquidation
Value
Which value provides the basis of the real estate tax liability for a property? -
answerAssessed Value
What is the value to a specific occupant? - answerValue in use
The value to a particular investor - answerInvestment Value
The four agents of production - answerland, labor, capital, entrepreneurship
To have value, an item must possess what characteristics? - answerScarcity, utility,
effective purchasing power, and desirability.
Comparing an items value to the items cost is an evaluation of the items -
answercontribution
What two components comprise effective demand? - answerDesire and effective
purchasing power
Scarcity, utility, effective purchasing power, and desire all relate to - answerEconomic
Characteristics of Value
Decreasing Returns - answerWhen the yield of a product falls as the cost is increased.
Profit - answerEntrepreneurial incentive
Demand Unit - answerThe combination of desirability and effective purchasing power
economies of scale - answerThe theory that each incremental item becomes less
expensive as the volume is increased.
Neighborhood - answerA group of complimentary land uses
,Mortgage - answerA capital market instrument
Amortization - answerThe systematic reduction of debt over time
A point equals - answer1 percent of the loan amount
An organized exchange conduit - answerA characteristic indicative of an efficient market
Feasibility study - answerExamines the profitability of a proposed property.
Office of Management and Budget - answerBody of Government that controls fiscal
policy
Principal and interest - answerPayments of an amortizing mortgage are comprised of
these.
Adjustable rate mortgage - answerA mortgage in which the interest rate floats with an
indexed rate.
General Data - answerThe four forces on real estate -Social, economic,
physical/environmental, and governmental.
Specific Data - answerData gathered in the analysis of a certain property (Subject
Property)
Primary Data - answerData that the appraiser personally collects
In identifying the real estate, the appraiser should consider the following. -
answerLocation of the land
Most real estate appraisal assignments involve the valuation of this interest -
answerFee simple interest
Real estate and real property are - answerSeparate and distinct
Forms of identifying real estate - answergovernmental survey, lot and block system, and
metes and bounds
If an appraiser is uncertain as to whether a fixture is to be treated as real or personal
property, he should - answerconsult with the client as to treatment of the item
When appraising fractional interests, the appraiser usually begins with - answerthe
entire bundle-of-rights (fee simple)
, An example of an economic force - answerA manufacturing plant reopening after
closing, and the Disney theme park outside Orlando and its impact on uses of land in
southwest Orlando.
Examples of social forces - answerAn increasing divorce rate, and an area that has a
reputation for being a neighborhood with a low crime rate and excellent quality of life,
and Los Angeles having some major issues in its economic expansion in the 1980's
including civil rights issues, crime and illegal immigration. Families more aware of
recycling their consumer wastes than ever before.
Examples of governmental forces - answerStrict building codes requiring poured
concrete foundations for homes within the city and a zoning code that does not allow
satellite dishes in the front yard. The department of defense building a nuclear
submarine base in an area increasing development.
Examples of Environmental forces - answerA neighborhood that has excellent views of
the ocean, and San Francisco, a city influenced by its strategic location along the
Pacific Ocean and its favorable climate. A severe hurricane damaging the Miami region
in August 1991.
A fee simple interest in a property is an example of - answerReal Property
A window air conditioner that is permanently attached to a home and built in with
caulked, side/top/bottom molding and screwed to the window frame is an example of a -
answerFixture
Forms of ownership limitations - answerLease, Mortgage and easement
Forms of special ownership - answerCondominium, Co-Operative, Time-share
A ceiling fan installed in a home is considered - answerA fixture that is now part of the
real estate
Forms of legal descriptions - answerMetes and Bounds method, Monument System,
Government Survey System
What is a condition in the definition of market value? - answerBuyer and seller are
typically motivated
What is a reasonable marketing period for a single-family residence? - answerUnkown:
each individual market is different and a reasonable marketing period depends upon an
analysis of each market.
By definition, market value is? - answerThe most probable price
