NSAR Salesperson Licensing Course Exam Questions With All Correct Answers Verified Answers 2025 Marking Scheme New Update

NSAR Salesperson Licensing Course Exam Questions With All Correct Answers Verified Answers 2025 Marking Scheme New Update Subjective Value - Answer- the perception of value in the minds of the buyer and seller Objective Value - Answer- related to the direct cost of creating (e.g. acquiring a lot and building a home) Types of value found in the Canadian Economy - Answer- -insurable; book -appraised -salvage -assessed -liquidation -loan -sentimental Three approaches that appraisers use to establish an estimate of value - Answer- -cost approach (actual cost) -income approach (subjective value) -direct comparison approach (subjective value) market price - Answer- the price for an individual property market value (aka value in exchange) - Answer- an estimate of value arising from many sales (market prices) Definition of Market Value - Answer- The most probable price, as of a specified date, in cash, or in terms equivalent to cash or in other precisely revealed terms, for which the specified property rights should sell after reasonable exposure in a competitive market under all conditions requisite to a fair-sale, with the buyer and seller each acting prudently, knowledgeably, and for self-interest, and assuming that neither is under undue duress. What brokerage should you join after you pass this exam? Let's chat! - Answer- Instagram: @laurahalifaxrealtor Facebook: Laura Sumarah Text: The 4 assumptions of market value - Answer- 1) reasonable time 2) no undue pressure 3) prudent behaviour 4) informed buyer and seller 15 Principles of Value - Answer- - Principle of Anticipation - Principle of Balance - Principle of Change - Principle of Competition - Principle of Conformity - Principle of Consistent Use - Principle of Contribution - Principle of External Factors - Principle of Highest & Best Use - Principle of Increasing/Decreasing Returns - Principle of Progression - Principle of Regression - Principle of Substitution - Principle of Supply & Demand - Principle of Surplus - Productivity Principle of Anticipation - Answer- Buyers buy the present worth of future benefits (e.g. thinking about resale value) Principle of Balance - Answer- Maximum value is maintained through balance (e.g. huge house with only one car garage is not balanced) Principle of Change - Answer- A value today is valid only for today (e.g. large portion of the community will be losing their jobs = lower value of house as lower demand) Principle of Competition - Answer- Excess profit breeds ruinous competition (two people see same opportunity and both jump in; neither will achieve their anticipated profits) Principle of Conformity - Answer- Reasonable conformance with existing standards protects value (houses that conform with one another hold their value) Principle of Consistent Use - Answer- No double dipping when analyzing value (can't give value to the house on a commercial property worth building on; must be viewed together as you'd have to renovate the house to use it commercially) Principle of Contribution - Answer- Value relates to contribution; not cost (owner wants to put in a pool that cost $10,000 but appraiser says it will only improve value of house by $7,000) Principle of External Factors - Answer- Things nearby can influence value (two comparable houses purchased on a quiet vs. noisy street = noisy street will have decreased value) Principle of Highest and Best Use - Answer- Focus on the use that will produce the greatest return (look at the property's current and potential use = large house on lot that a four-plex could be built; value can increase based on this possibility) Principle of Increasing/Decreasing Returns - Answer- More is not necessarily better (building one garage may increase value, but building two more wont increase 3x; it reaches a point) Principle of Progression - Answer- The smallest house on the street might be the best buy (when houses aren't similar; the poorest property increases in value) Principle of Regression - Answer- The largest house on the street might not be the best buy (when houses aren't similar; the highest value home loses value due to it's neighbours) Principle of Substitution - Answer- Buyers look for the best bang for their buck (they value a home by comparing it to a substitute and choose the best priced one) Principle of Supply and Demand - Answer- Market forces are always at work (supply decreases value; demand increases value) Principle of Surplus Productivity - Answer- Net income flows to the land (after all costs are satisfied, the net income flows to land and establishes the value of that land) Definition of Appraisal - Answer- The act or process of estimating value and providing an opinion concerning that value. 8 Steps of the Appraisal Process - Answer- 1) Define the problem 2) Preliminary inspection & planning the work 3) Data collection & analysis 4) Apply the cost approach 5) Apply the direct comparison approach 6) Apply the income approach 7) Reconciliation and final estimate 8) Write the appraisal report Tenure (historical) - Answer- the holding of land without ownership (a right to possess [not own] subject to payment, to a lord or king) Estate (historical) - Answer- the status or extent of rights associated with tenure (e.g. the right to pass on tenure from parent to child) and formed the building blocks of modern real estate law. Definition of Tenure - Answer- A right to hold property Definition of Estate - Answer- An interest in land or, more specifically, the status or extent of rights associated with tenure 5 Estate Types - Answer- - fee simple - leasehold estate - life estate - future estate - estate to uses Which type of estate provides the most rights with least limitations? - Answer- Fee Simple Leasehold vs. Freehold Estates - Answer- Time - In fee simple, ownership is for an indeterminate period of time, while in leasehold, time is finite and is capable of being made certain. Real Estate vs. Real Property - Answer- Real estate typically refers solely to tangible aspects of property, while real property includes both tangible (land and improvement) and intangible (rights). Property is further viewed as either: -real (immovable) -personal (movable) Chattels vs. Fixtures - Answer- Chattels are personal property (clothes, furniture, etc. ) that aren't typically included in a real estate deal. Fixtures are items that are attached to the property that are typically included (shed, dishwasher, etc. ) If chattels should be included or fixtures shouldn't be, they should be listed in the offer. Concurrent Ownsership - Answer- Ownership by two or more persons or entities Joint Tenancy - Answer- Ownership of land by two or more persons whereby, on the death of one, the survivor acquires the whole interest in the property Tenants-in-common - Answer- Ownership of land by two or more persons. The interest of a deceased owner does not pass to the survivor as is the case with joint tenancy, but rather treated as an asset of the deceased's estate. Personal property - Answer- Moveable property, such as chattels, which are not affixed to the land and improvements thereon Fee Simple - Answer- The highest estate or absolute right in real property Chattels - Answer- Personal property which is tangible and moveable Leasehold - Answer- An interest in real estate for a definite period of time Fixtures - Answer- Permanent improvements to property that may not be removed at the expiration of ownership or occupancy (i.e. a lease) unless otherwise agreed Concurrent Ownership - Answer- Two or more persons having ownership at the same time Bundle of Rights - Answer- Ownership rights associated with the possession, use, enjoyment and disposition of real estate. Fractional Interest - Answer- A single right within the bundle of rights in fee simple ownership Land Description - Answer- A written description by which property is precisely identified, often referred to as the legal description Survivorship - Answer- The right os a person to secure ownership by reason of outliving someone with whom an interest in the land is shared Metes and bounds - Answer- The distance and direction of property lines in a land description Point of commencement - Answer- A known point in a land description used as a reference to precisely delineate and fully enclose real estate by means of metes and bounds description Real Property - Answer- Tangible and intangible attributes of land and improvements Abstract - Answer- A written history of the title to a parcel of real estate Real estate - Answer- Land and any improvements located thereon Nova Scotia Property Records Database - Answer- A database providing electronic access to real property information including maps and title information Land Information (LIC) - Answer- Service Nova Scotia & Municipal Relations operates LICs which develop and maintain land information products and services including property mapping, aerial photography and the property record database