Basic Principles Final Exam questions
and answers 100% correct
How many acres are in a section? Correct Answer: 640 acres
Eric pays $35,000 to have an inground swimming pool constructed in his back yard. When he sells the
property, he only receives $10,000 more for his property than what similar property sold for without a
pool. This is an example of the principle of Correct Answer: contribution
The oldest system of legal descriptions for real estate is: Correct Answer: metes and bounds
The appraisal standards and qualification criteria promulgated by the boards of The Appraisal
Foundation achieves legal authority by adoption, citation or implementation by Correct Answer:
government agencies
Which valuation approach relies most heavily on the principle of substitution? Correct Answer: sales
comparison
An appraisal is best described as Correct Answer: an opinion of value
A client asks an appraiser to omit the client's identity from the appraisal report. What can the appraiser
do? Correct Answer: omit the client's identity from the report but identify the client in the workfile
Which entity is responsible for monitoring state appraiser licensing and certification agencies? Correct
Answer: The Appraisal Subcommittee
The general rule of contracting with minors is that a contract with a minor is Correct Answer: voidable
at the minor's option
"The interaction of buyers and sellers who trade long-term or intermediate-term money instruments" is
the definition of the _____________ market. Correct Answer: capital
"The party or parties who engage, by employment or contract, an appraiser in a specific assignment" is
the definition of Correct Answer: client
A circle contains _______ degrees. Correct Answer: 360
Can an offer may never be revoked once delivered to the offeree? Correct Answer: No
Rules about Revoking an offer Correct Answer: 1. Can be revoked at any time prior to communication of
the acceptance of the offer.
2. Can be revoked by the maker of the offer, by giving notice of revocation to the person to whom the
offer was made.
, 3. Can be revoked by the lapse of time set forth in the offer.
Supply and demand move in a(n) ____________ relationship. Correct Answer: inverse
"The geographic region from which a majority of demand comes and which the majority of the
competition is located" is the definition of Correct Answer: market area
The ETHICS RULE of USPAP is the ________ of five Rules in USPAP. Correct Answer: first
What type of property ownership is characterized by the purchase of shares of stock in a corporation,
which provides a proprietary lease to occupy an apartment unit? Correct Answer: cooperative
Under the current education criteria, an applicant for Appraiser Trainee must have completed ___
creditable class hours as specified in the required Core Curriculum Appendix. Correct Answer: 75
In analyzing a real estate purchase contract, you should be able to find all of the following items Correct
Answer: sale price
legal description
date of sale
In analyzing a real estate purchase contract, is property taxes included? Correct Answer: Nope
Requirement(s) of a valid real estate contract? Correct Answer: consideration
in writing and signed
lawful objective
A homeowner fears the construction of a factory nearby will decrease the value of her property. This
illustrates the principle of Correct Answer: externalities
Real estate includes what? Correct Answer: trees, Buildings, Land
Does Real Estate or real property include property rights? Correct Answer: Real Property
The real property market is generally classified as a(n) __________ market. Correct Answer: imperfect
In USPAP, the word "Ethics" is defined Correct Answer: Nowhere
"The sum of values for a variable in a sample or population divided by the number of items in the
sample or population" is the definition of Correct Answer: mean
The _____ has oversight authority over state appraisal boards. Correct Answer: ASC
How many sf in an acre? Correct Answer: 43560 SF
"The right held by the lessee to use and occupy real estate for a stated term and under the conditions
specified in the lease" is the definition of Correct Answer: leasehold estate
and answers 100% correct
How many acres are in a section? Correct Answer: 640 acres
Eric pays $35,000 to have an inground swimming pool constructed in his back yard. When he sells the
property, he only receives $10,000 more for his property than what similar property sold for without a
pool. This is an example of the principle of Correct Answer: contribution
The oldest system of legal descriptions for real estate is: Correct Answer: metes and bounds
The appraisal standards and qualification criteria promulgated by the boards of The Appraisal
Foundation achieves legal authority by adoption, citation or implementation by Correct Answer:
government agencies
Which valuation approach relies most heavily on the principle of substitution? Correct Answer: sales
comparison
An appraisal is best described as Correct Answer: an opinion of value
A client asks an appraiser to omit the client's identity from the appraisal report. What can the appraiser
do? Correct Answer: omit the client's identity from the report but identify the client in the workfile
Which entity is responsible for monitoring state appraiser licensing and certification agencies? Correct
Answer: The Appraisal Subcommittee
The general rule of contracting with minors is that a contract with a minor is Correct Answer: voidable
at the minor's option
"The interaction of buyers and sellers who trade long-term or intermediate-term money instruments" is
the definition of the _____________ market. Correct Answer: capital
"The party or parties who engage, by employment or contract, an appraiser in a specific assignment" is
the definition of Correct Answer: client
A circle contains _______ degrees. Correct Answer: 360
Can an offer may never be revoked once delivered to the offeree? Correct Answer: No
Rules about Revoking an offer Correct Answer: 1. Can be revoked at any time prior to communication of
the acceptance of the offer.
2. Can be revoked by the maker of the offer, by giving notice of revocation to the person to whom the
offer was made.
, 3. Can be revoked by the lapse of time set forth in the offer.
Supply and demand move in a(n) ____________ relationship. Correct Answer: inverse
"The geographic region from which a majority of demand comes and which the majority of the
competition is located" is the definition of Correct Answer: market area
The ETHICS RULE of USPAP is the ________ of five Rules in USPAP. Correct Answer: first
What type of property ownership is characterized by the purchase of shares of stock in a corporation,
which provides a proprietary lease to occupy an apartment unit? Correct Answer: cooperative
Under the current education criteria, an applicant for Appraiser Trainee must have completed ___
creditable class hours as specified in the required Core Curriculum Appendix. Correct Answer: 75
In analyzing a real estate purchase contract, you should be able to find all of the following items Correct
Answer: sale price
legal description
date of sale
In analyzing a real estate purchase contract, is property taxes included? Correct Answer: Nope
Requirement(s) of a valid real estate contract? Correct Answer: consideration
in writing and signed
lawful objective
A homeowner fears the construction of a factory nearby will decrease the value of her property. This
illustrates the principle of Correct Answer: externalities
Real estate includes what? Correct Answer: trees, Buildings, Land
Does Real Estate or real property include property rights? Correct Answer: Real Property
The real property market is generally classified as a(n) __________ market. Correct Answer: imperfect
In USPAP, the word "Ethics" is defined Correct Answer: Nowhere
"The sum of values for a variable in a sample or population divided by the number of items in the
sample or population" is the definition of Correct Answer: mean
The _____ has oversight authority over state appraisal boards. Correct Answer: ASC
How many sf in an acre? Correct Answer: 43560 SF
"The right held by the lessee to use and occupy real estate for a stated term and under the conditions
specified in the lease" is the definition of Correct Answer: leasehold estate
