Metes" refers to __________ and "bounds" refers to _________.
bearing, distance
True or False? A lot and block legal description always gives the lot size and dimensions.
False
Which system of legal descriptions is based on standardized measurements and consistent rectangles and squares?
rectangular survey
A rancher owns 8 full sections and 3 half sections. He sells off 5 quarter sections. How many acres are left?
5280
A rectangular lot measures 8 chains and 36 links by 4 chains and 24 links. How many acres is that?
3.55
The bearing relative to north or south is called
metes
Which system of legal descriptions is found primarily in the Northeast?
Metes and Bounds
True or False? FHA will not insure a mortgage on a property that is subject to an encroachment.
F
When appraising a property that is subject to a life interest, an appraiser is MOST likely to use
a discount based on a mortality table
True or False? When a property is leased, two separate estates are created.
T
A right or interest in property" is the definition of
estate
Type of building development designed as a grouping of complementary land uses, such as housing, schools, recreation, retail, office, and industrial parks, contained within a single master development; usually includes common area and common area mainten
PUD
A drainage easement is an example of a(n)
negative easement
A facade easement is a type of________________ easement.
historic
An easement that benefits a legal person or entity (individual, corporation, partnership, LLC, government entity, etc.) and not a particular tract of land" is the definition of a(an)
easement in gross
Which type of deed is similar to a mortgage document?
trust deed
Which is the best type of deed for the buyer?
warranty deed
From the buyer's standpoint, what is the weakest type of deed?
quitclaim deed
Damages awarded in a lawsuit as a punishment and example to others for malicious, evil or particularly fraudulent acts" is the definition of _____________ damages.
punitive
The cancellation of a contract by mutual agreement of the parties" is the definition of
rescission
A contract in which one party makes a promise in order to induce another party to do something is a(n) __________________ contract.
unilateral
A deed that conveys real property from a seller to a buyer but does not guarantee clear title; used by court officials and fiduciaries to convey property they hold by force of law, but to which they do not hold title is the definition of a ____________dee
bargain and sale
A legally binding agreement between two or more persons that represents their promise to do or not to do a particular thing" is the definition of a(n)
contract
A form of conveyance in which any interest the grantor possesses in the property described in the deed is conveyed to the grantee without warranty of title" is the definition of a ________________ deed.
quitclaim
A reconveyance may be employed if there is a
deed of trust
Which kind of lease is commonly found in retail properties?
percentage
The area associated with a subject property that contains its direct competition" is the definition of
market area
In a real property market, which factor of the supply and demand equation is dynamic and subject to immediate change?
demand
Which of these would be considered the most INEFFICIENT market?
the real property market
The principle of supply and demand states, in part, that the price of real property varies directly with ________ and inversely with __________.
demand, supply
A real estate market is defined in terms of __________.
competition
A neighborhood consists of ____________ land uses, while a district consists of __________ land uses.
complementary, homogeneous
You are an investor who owns a parcel of real property. You want to cash out your investment, and it takes you a year to market your property and close the sale. What investment factor does this demonstrate?
liquidity
Where are short-term money instruments bought and sold?
money market
The "price" of money is expressed as
interest rate
True or False? Money is a commodity that is bought and sold on the market.
True
How are members of the Board of Governors of the Federal Reserve System selected?
they are appointed by the President and confirmed by the Senate
The Federal Reserve's efforts to influence the level of economic activity by regulating the availability of money and the rate of interest" is the definition of
monetary policy
Who appoints members to the Federal Reserve Board?
pres
To whom is the Fed accountable?
congress
The interest rate that is charged by the Fed when lending money to banks is called the _______ rate.
discoutn
Money market is defined as the interaction of buyers and sellers who trade
short-term money instruments
What federal government entity is overseeing the conservatorship of Fannie Mae and Freddie Mac?
Federal Housing Finance Agency (FHFA)
What type of purchase contract involves the purchaser making payments to the seller until the total purchase price is paid and then the seller delivers the deed?
contract for deed
The process of retiring a debt or recovering a capital investment, typically through scheduled, systematic repayment of the principal; a program of periodic contributions to a sinking fund or debt retirement fund" is the definition of
amortization
With a traditional amortized loan, at what point does most of the payment go toward interest?
the beginning of the loan period
How is the FHA mortgage insurance program funded?
by mortgage insurance premiums paid by borrowers
Which of the following is an insured loan?
FHA
A mortgage that has priority over all other mortgage liens on a property is a
first mortgage
The mortgage meltdown of the late 2000s resulted in
lessened availability of mortgage loans
Which federal agency is responsible for monitoring coastal habitats?
NOAA
To get a permit to drain a wetlands area, you must contact
U.S. Army Corps of Engineers
The prime source for population demographics is
U.S. Bureau of the Census
Generally, low interest rates encourage _________, while high interest rates encourage __________.
borrowing, saving
When is an appraiser required to develop an opinion of reasonable exposure time in an appraisal?
when reasonable exposure time is a component of the definition of value being used
A bank acquires a property at foreclosure, and they need to sell it very quickly. They ask an appraiser to provide them a value opinion based on a restricted marketing time, and considering they are under extreme compulsion to sell. What type of value is
liquidation value
Exposure time is a _____________ developed by the appraiser.
retrospective opinion
The market value of an established and operating business including the real property, personal property, financial assets, and the intangible assets of the business" is the definition of:
market value of the going concern
USPAP says "When reasonable exposure time is a component for the definition of value being developed, the appraiser must also develop an opinion of ___________ time linked to the value opinion.
reasonable exposure
A comparable property was offered on the market for 8 months at $429,000, with no offers. It was reduced to $419,000 and was on the market for another 6 months. It was reduced again to $359,000 and it sold for $355,000 in 3 months. What is the reasonable
3 Mos
The four criteria for highest and best use are
legally permissible, physically possible, financially feasible, maximally productive
Supply and price move in a(n) ____________ relationship.
inverse
The concept of highest and best use applies to
both vacant land and improved property
In appraisal, the concept that the value of an inferior property is enhanced by its association with better properties of the same type" is the definition of the principle of
progression
In the agents of production theory, the return on land would be __________ and the return on labor would be ________.
renrt wages
A subject property's market area would be defined as
the area from where demand comes and that contains its competition
A large local employer announces plans for immediate expansion, which will add 400 new jobs. There are only 180 houses available for sale in the market at this time. What is MOST likely to happen in the near future?
the number of building permits issued will increase
The rate at which vacant space in a property or group of properties for sale or lease has been or is expected to be successfully sold or leased over a specified period of time" is the definition of a(n) __________ rate.
absorption
The process by which submarkets within a larger market are identified and analyzed" is the definition of
market segmentation
Which of the following would NOT be considered in supply analysis?
population trends
Which of these would NOT be a submarket of the market for residential properties in Anytown, USA?
residential properties
The objective analysis of observable and/or quantifiable data indicating discernible patterns of urban growth, structure, and change that may detract from or enhance property values is the definition of
market area analysis