IAAO 101 - Review Questions And Answers Verified 100% Correct

IAAO 101 - Review Questions And Answers Verified 100% Correct List any two types of private encumbrances that can be placed on ownership of real property. - ANSWER Rights of co-owners Condo and subdivision restrictions Covenants, conditions and restrictions found in the chain of title to the property Mortgages Easements and rights of way Liens and judgments Leases The principle of ____________ states that value is created by the expected future benefits to be derived from the property. - ANSWER anticipation The six basic rights associated with property are as follows: - ANSWER Sell Lease Use Give away Enter or leave Refuse to do any of the above. The ownership of all legal rights to property is known as ____ _______. - ANSWER fee simple (fee simple absolute) Determining the identity of the property to be appraised is a part of the ______ step in the appraisal process. - ANSWER first The three types of boundaries used to delineate neighborhoods are _____, ______, and ______. - ANSWER political man-made natural Under the step in the appraisal process that is termed data collection and analysis, specific data include - ANSWER Site data The four forces that influence value and must be considered in neighborhood analysis are as follows - ANSWER Physical (environmental) Economic Governmental Social The typical life cycle of a neighborhood can be extended or shortened by changes in _______ factors. - ANSWER economic An area of complementary land uses in which all properties are similarly influenced by the four forces affecting value is termed a ___________. - ANSWER neighborhood Municipal services, planning and zoning are examples of _________ forces that affect neighborhoods. - ANSWER governmental What are the four basic elements of supply? - ANSWER Cost of production Price of other goods Entrepreneur expectations Number of sellers The four factors affecting land values are as follows: - ANSWER Physical (environmental) Economic Governmental Social The Principle of __________ __________ states that returns to land are what remain after returns to labor, management and capital are satisfied. - ANSWER Surplus Productivity List the six methods of land valuation: - ANSWER Direct sales comparison Allocation Abstraction Anticipated use or development Capitalization of ground rent Land residual technique A complete set of ________ maps showing boundaries, parcel size, sales information, and other relevant features of all parcels in a jurisdiction is a necessary tool for assessors. - ANSWER cadastral The practice of measuring the direction of property lines with compass bearings and the distance with measuring chains or tapes in order to obtain a property description is known as ______ ______ ______. - ANSWER metes and bounds A township in the Public Land Survey System contains ____ sections, with each section containing _____ acres. - ANSWER 36 640 When land is valued by using the direct sales comparison approach , sales must first be ________ into homogeneous groups. - ANSWER stratified Improvements such as streets, sidewalks, and the availability of utilities are considered _________ improvements. - ANSWER off-site Which method of land valuation compares the property being appraised to comparable vacant parcels that have recently sold? - ANSWER direct sales comparison Front foot, square foot and acre are examples of basic _____ of __________. - ANSWER units comparison In the direct sales comparison approach to land valuation, adjustments are always made to the ________ property, never to the _______ property. - ANSWER comparable subject If a comparable lot that sold is superior in some aspect to the subject lot, a _________ adjustment would be made to the comparable property. - ANSWER negative A method of valuing land that subtracts the depreciated value of the improvement from the sale price is known as _________. - ANSWER abstraction The preferred method of valuing land if adequate data is available is the - ANSWER Direct sales comparison method A land-to-building ratio of 1:4 means land represents ____ percent of the value. - ANSWER 20 The appropriate map scale for suburban areas and small towns is - ANSWER 1" = 200' The merging of adjacent parcels into one common ownership without creating an increase in the unit value is known as _________. - ANSWER assemblage The property account number, linking ownership records, tax maps and assessment records, is known as the _________ ________. - ANSWER parcel identifier Land that has been developed to the extent that it is ready to be built upon is considered _____. - ANSWER site