TEXAS SENIOR PROPERTY TAX
CONSULTANT EXAM QUESTIONS AND
ANSWERS
Economic Forces - Correct Answers -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 - Correct Answers -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 - Correct Answers -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 - Correct Answers -Easy to identify, the desirability of
these factors depend upon the property use type. They include: Location,
Transportation, Topography, and Climate/weather.
General Warranty - Correct Answers -A title transfer that offers a guarantee of the title
from the seller to the buyer.
Leasehold Estate - Correct Answers -A tenant or lessee may most likely possess this
type of interest.
Manner of Attachment - Correct Answers -Used in determining when personal property
becomes a fixture.
Real Property - Correct Answers -An intangible interest in real estate.
Real Estate - Correct Answers -The tangible bricks and mortar and land.
Police Power - Correct Answers -Building Codes and zoning represent this power of
government.
Private Restrictions - Correct Answers -A lease and mortgage
Encroachment - Correct Answers -A toolshed that is partly on a neighbor's lot
,Severalty - Correct Answers -The most common form of ownership. Means one
(Individual) - One person or corporation owns entire bundle of rights
A type of special ownership - Correct Answers -Condominium
A leased fee estate is an interest controlled by the - Correct Answers -Landlord
A leasehold estate is created by a? - Correct Answers -Lease
The most common value estimate provided in an appraisal of a single-family home. -
Correct Answers -Market Value
General Data - Correct Answers -The four forces on real estate -Social, economic,
physical/environmental, and governmental.
Specific Data - Correct Answers -Data gathered in the analysis of a certain property
(Subject Property)
Primary Data - Correct Answers -Data that the appraiser personally collects
Which type of appraisal would likely be sought in the appraisal of an established
business operation? - Correct Answers -Going Concern Value
Which valuation would be based on a limited marketing period? - Correct Answers -
Liquidation Value
Which value provides the basis of the real estate tax liability for a property? - Correct
Answers -Assessed Value
What is the value to a specific occupant? - Correct Answers -Value in use
The value to a particular investor - Correct Answers -Investment Value
The four agents of production - Correct Answers -land, labor, capital, entrepreneurship
To have value, an item must possess what characteristics? - Correct Answers -Scarcity,
utility, effective purchasing power, and desirability.
Comparing an items value to the items cost is an evaluation of the items - Correct
Answers -contribution
What two components comprise effective demand? - Correct Answers -Desire and
effective purchasing power
,Scarcity, utility, effective purchasing power, and desire all relate to - Correct Answers -
Economic Characteristics of Value
Decreasing Returns - Correct Answers -When the yield of a product falls as the cost is
increased.
Profit - Correct Answers -Entrepreneurial incentive
Demand Unit - Correct Answers -The combination of desirability and effective
purchasing power
economies of scale - Correct Answers -The theory that each incremental item becomes
less expensive as the volume is increased.
Neighborhood - Correct Answers -A group of complimentary land uses
Mortgage - Correct Answers -A capital market instrument
Amortization - Correct Answers -The systematic reduction of debt over time
A point equals - Correct Answers -1 percent of the loan amount
An organized exchange conduit - Correct Answers -A characteristic indicative of an
efficient market
Feasibility study - Correct Answers -Examines the profitability of a proposed property.
Office of Management and Budget - Correct Answers -Body of Government that
controls fiscal policy
Principal and interest - Correct Answers -Payments of an amortizing mortgage are
comprised of these.
Adjustable rate mortgage - Correct Answers -A mortgage in which the interest rate
floats with an indexed rate.
In identifying the real estate, the appraiser should consider the following. - Correct
Answers -Location of the land
Most real estate appraisal assignments involve the valuation of this interest - Correct
Answers -Fee simple interest
Real estate and real property are - Correct Answers -Separate and distinct
Forms of identifying real estate - Correct Answers -governmental 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 - Correct Answers -consult with the client as to treatment of the item
When appraising fractional interests, the appraiser usually begins with - Correct
Answers -the entire bundle-of-rights (fee simple)
An example of an economic force - Correct Answers -A 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 - Correct Answers -An 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 - Correct Answers -Strict 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 - Correct Answers -A 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 - Correct Answers -Real 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 -
Correct Answers -Fixture
Forms of ownership limitations - Correct Answers -Lease, Mortgage and easement
Forms of special ownership - Correct Answers -Condominium, Co-Operative, Time-
share
A ceiling fan installed in a home is considered - Correct Answers -A fixture that is now
part of the real estate
Forms of legal descriptions - Correct Answers -Metes and Bounds method, Monument
System, Government Survey System
What is a condition in the definition of market value? - Correct Answers -Buyer and
seller are typically motivated
CONSULTANT EXAM QUESTIONS AND
ANSWERS
Economic Forces - Correct Answers -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 - Correct Answers -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 - Correct Answers -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 - Correct Answers -Easy to identify, the desirability of
these factors depend upon the property use type. They include: Location,
Transportation, Topography, and Climate/weather.
General Warranty - Correct Answers -A title transfer that offers a guarantee of the title
from the seller to the buyer.
Leasehold Estate - Correct Answers -A tenant or lessee may most likely possess this
type of interest.
Manner of Attachment - Correct Answers -Used in determining when personal property
becomes a fixture.
Real Property - Correct Answers -An intangible interest in real estate.
Real Estate - Correct Answers -The tangible bricks and mortar and land.
Police Power - Correct Answers -Building Codes and zoning represent this power of
government.
Private Restrictions - Correct Answers -A lease and mortgage
Encroachment - Correct Answers -A toolshed that is partly on a neighbor's lot
,Severalty - Correct Answers -The most common form of ownership. Means one
(Individual) - One person or corporation owns entire bundle of rights
A type of special ownership - Correct Answers -Condominium
A leased fee estate is an interest controlled by the - Correct Answers -Landlord
A leasehold estate is created by a? - Correct Answers -Lease
The most common value estimate provided in an appraisal of a single-family home. -
Correct Answers -Market Value
General Data - Correct Answers -The four forces on real estate -Social, economic,
physical/environmental, and governmental.
Specific Data - Correct Answers -Data gathered in the analysis of a certain property
(Subject Property)
Primary Data - Correct Answers -Data that the appraiser personally collects
Which type of appraisal would likely be sought in the appraisal of an established
business operation? - Correct Answers -Going Concern Value
Which valuation would be based on a limited marketing period? - Correct Answers -
Liquidation Value
Which value provides the basis of the real estate tax liability for a property? - Correct
Answers -Assessed Value
What is the value to a specific occupant? - Correct Answers -Value in use
The value to a particular investor - Correct Answers -Investment Value
The four agents of production - Correct Answers -land, labor, capital, entrepreneurship
To have value, an item must possess what characteristics? - Correct Answers -Scarcity,
utility, effective purchasing power, and desirability.
Comparing an items value to the items cost is an evaluation of the items - Correct
Answers -contribution
What two components comprise effective demand? - Correct Answers -Desire and
effective purchasing power
,Scarcity, utility, effective purchasing power, and desire all relate to - Correct Answers -
Economic Characteristics of Value
Decreasing Returns - Correct Answers -When the yield of a product falls as the cost is
increased.
Profit - Correct Answers -Entrepreneurial incentive
Demand Unit - Correct Answers -The combination of desirability and effective
purchasing power
economies of scale - Correct Answers -The theory that each incremental item becomes
less expensive as the volume is increased.
Neighborhood - Correct Answers -A group of complimentary land uses
Mortgage - Correct Answers -A capital market instrument
Amortization - Correct Answers -The systematic reduction of debt over time
A point equals - Correct Answers -1 percent of the loan amount
An organized exchange conduit - Correct Answers -A characteristic indicative of an
efficient market
Feasibility study - Correct Answers -Examines the profitability of a proposed property.
Office of Management and Budget - Correct Answers -Body of Government that
controls fiscal policy
Principal and interest - Correct Answers -Payments of an amortizing mortgage are
comprised of these.
Adjustable rate mortgage - Correct Answers -A mortgage in which the interest rate
floats with an indexed rate.
In identifying the real estate, the appraiser should consider the following. - Correct
Answers -Location of the land
Most real estate appraisal assignments involve the valuation of this interest - Correct
Answers -Fee simple interest
Real estate and real property are - Correct Answers -Separate and distinct
Forms of identifying real estate - Correct Answers -governmental 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 - Correct Answers -consult with the client as to treatment of the item
When appraising fractional interests, the appraiser usually begins with - Correct
Answers -the entire bundle-of-rights (fee simple)
An example of an economic force - Correct Answers -A 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 - Correct Answers -An 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 - Correct Answers -Strict 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 - Correct Answers -A 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 - Correct Answers -Real 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 -
Correct Answers -Fixture
Forms of ownership limitations - Correct Answers -Lease, Mortgage and easement
Forms of special ownership - Correct Answers -Condominium, Co-Operative, Time-
share
A ceiling fan installed in a home is considered - Correct Answers -A fixture that is now
part of the real estate
Forms of legal descriptions - Correct Answers -Metes and Bounds method, Monument
System, Government Survey System
What is a condition in the definition of market value? - Correct Answers -Buyer and
seller are typically motivated
