REE4103 Exam Questions With Correct Answers

REE4103 Exam Questions With Correct Answers Appraisal - answerThe act or process of developing an opinion of value of an asset. The asset in question could be anything from fine art to machinery and equipment, or even a specific type of business. - An appraisal is someone's opinion, rathe than an undeniable fact The Uniform Standards of Professional Appraisal Practice - answerWhat does USPAP stand for? highlight the ethical codes that valuation professionals must follow. It requires that appraisers "collect, verify, and analyze all information necessary to achieve credible assignment results" For example, USPAP defines an appraiser as "one who is expected to perform valuation services competently and in a manner that is independent, impartial and objective. - answerWhat does the USPAP do? Real estate - answer- An identified parcel or tract of land, including improvements, if any - the physical land and appurtenances affixed to the land structures. - It is immobile and tangible. What are the tangible components that the legal definition of real estate includes? - answer- land - all things that are a natural part of land, such as trees and minerals - all things that are attached to land by people, such as building and site improvement Real property - answerThe interests, benefits, and rights inherent in the ownership of real estate - Items that have been installed or attached to the land or building in a permanent manner. fee simple interest - answerWhat is the most complete form of ownership? EXAM STUDY MATERIALS July 30, 2024 11:26 AM Fee simple interest - answerAbsolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation , eminent domain, police power, and escheat Bundle of rights - answerThe total range of private ownership interests in real property - the right to sell an interest - the right to lease an interest - the right to occupy the property - the right to mortgage an interest - the right to give an interest away - answerWhat are the rights included in the bundle of rights? What is ownership of the fee simple interest equivalent to? - answerOwnership of the complete bundle of rights - taxation - eminent domain - police power - escheat - answerWhat are the four powers of government that private ownership is subject to? A leased fee - answerIf there are leases in place, even at market rates and terms, the interest is what? Personal property - answerMovable items of property that are not permanently affixed to, or part of, the real estate. - This is not endowed with the rights of real property ownership Intangible assets - answerThose assets that are not tangible real property, tangible personal property, or financial assets. Something that is not material, not corporeal, not substantially real. - Transfer of ownership - Financing and Credit - Litigation - Investment Counseling, decision making, and accounting - answerWhat are the type of uses of appraisals? EXAM STUDY MATERIALS July 30, 2024 11:26 AM What are the attributes of land? - answer- each parcel of land is unique in its location and composition - land is physically immobile - Land is durable - The supply of land is finite - land is often useful to people ... includes not only the ground, or soil, but everything that is attached to the earth, whether by course of nature, as are trees and herbage, or by hand of man, as are houses and other buildings. It includes not only the surface of the earth but everything under it and over it. - answerLand The difference between private ownership and public ownership. - answerWhat is a major distinction in real property ownership? Public ownership - answerA major distinction in real property - Streets and roads, municipal utility systems, and other public facilities such as city halls, prisons, and public works facilities. - are usually owned by governmental bodies for the benefit of all citizens in a jurisdiction. - Usually created in response to public necessity or public demand Four agents of production - answerThe production of goods, services, and income depend on the combination of these 1. Land 2. Labor 3. Capital 4. Entrepreneurial coordination - answerWhat are the four agents of production? Economic concept of value - answerIt is created in the minds of the individuals who make up the market. The relationships that create this are complex, and this may change when the factors that influence this changes What are the four interdependent economic factors that create value? - answer- utility - scarcity - desire - effective purchasing powe