The Income Approach is based on the principle of
anticipation
The Cost Approach is based on the principle of
substitution
A house with an older composition shingle roof has some missing shingles
that were blown away by heavy winds. The missing shingles has caused water leaks
water in the attic. This is an example of
physical depreciation
The power to acquire private property for public use
eminent domain
A property owner recently developed a property to an orchard with
desirable varieties. Total cost (land, orchard development, etc.) was $2,400,000.
Shortly after the orchard development was completed the property sold for $2,650,000.
The difference betwee
entrepreneurial profit
The following is not part of criteria used for estimating the highest and best use of land
maximal reciprocity
The difference between physically depreciated reproduction cost new and
contributory value (assuming no influence from factors outside the property boundaries)
functional obsolescence
When using the Cost Approach, and assuming no influence from factors
outside the property boundaries, land is valued as though vacant and added to
physically depreciated replacement cost of improvements
The act or process of acquiring private property for public use
condemnation
A valuation method used to convert a series of anticipated future income
expectancies into an indication of current value
discounted cash flow
A valuation method used to convert an estimate of a single year's income
expectancy into an indication of current value
direct capitalization
What interests does a property owner hold if their entire property has been
leased to a tenant?
leased fee estate
An area has had an excellent reputation for many years for good quality
tree fruit production. However, during the past few years most local fruit
processing plant operators in the area have relocated to another part of the state and the
previous local pr
external obsolescence
The capitalized value of a property will increase, decrease, or not change when all
other income and expense items remain constant, but
property taxes increase by 10 percent
decrease
The capitalized value of a property will increase, decrease, or not change when all
other income and expense items remain constant, property taxes increase by 10 percent
decrease
The capitalized value of a property will increase, decrease, or not change when all
other income and expense items remain constant, but an adjoining neighbor begins growing a new crop on an experimental
basis
no change
What is the primary reason capitalization rates differ between the three
types of property owner operations (owner-operator, sharecrop landlord, and cash rent
landlord)?
financial risk
What is the period of time during which permanent plantings contribute
value to a property?
economic life
When a property is leased to a tenant
the lessor leases the property to the lessee
A leasehold estate is the property interest that belongs to
the lessee
A leased fee estate is the property interest that belongs to
the lessor
When a sandwich lease exists
none of the above
An agricultural conservation easement is
a property encumbrance that nearly always continues in perpetuity
A benefit of conservation easements
all of the above
A bargain sale of a conservation easement
includes both cash payment and donation of an easement
Regarding marketing of undivided partial ownership interests in real
property
buyers typically have high risk tolerance
Regarding undivided partial ownership interests in real property, a partition is
a legal action to divide property into separate ownerships
A person with the right to occupy and use a portion of a property for the
duration of his/her life
Life tenant
A person who owns property encumbered by another's right to occupy and
use a portion of a property for the duration of his/her life
Remainderman
Permanent plantings
all of the above
Characteristics of riparian water rights include all but
they allow use of water from multiple basins at a single location
The set of laws commonly referred to by the acronym SGMA
establish priorities for aquifer management
In eminent domain, severance damages are
damages occurring to the remaining property
Groundwater overdraft
can cause land subsidence
The following is not part of criteria used for estimating the highest and
best use of land
typical crops and normal acres
The difference between physically depreciated reproduction cost new
and contributory value
functional obsolescence
The capitalized value of a property will increase, decrease, or not change when Typical crop yields increase by 10 percent
Increase
Regarding marketing of undivided partial ownership interests in real
property (2)
buyers are typically all-cash buyers
What two actions can cause a California property that is not
subject to a Williamson Act contract to be reassessed for property tax purposes?
Ownership change and improvements added to the property
California water rights regulation began in
1914
California appropriative water rights
all of the above
Honey bees are placed in orchards during the bloom season to
pollinate blossoms