Factors Affecting Market Value Quiz
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Questions and Answers

Which type of ownership interest in real estate is the highest recognized by law?

  • Fee Simple Qualified
  • Fee Simple Defeasible
  • Life Estate
  • Fee Simple Absolute (correct)

    • What is the key characteristic of a Fee Simple Defeasible ownership?

  • It allows the previous owner to retake possession of the property through legal action.
  • It has limitations on property use that could result in the loss of the ownership right. (correct)
  • It is limited in some way.
  • It requires an action to be taken before ownership will take effect.

    • What is a life estate based on the life of someone other than the holder called?

  • Life Estate Pur Autre Vie (correct)
  • Fee Simple Qualified
  • Fee Simple Absolute
  • Fee Simple Defeasible

    • Which type of limitation on property use results in the automatic return of title to the former owner without the need for legal action?

    <p>Special Limitation</p> Signup and view all the answers

    Which of the following is NOT considered personal property?

    <p>A house</p> Signup and view all the answers

    Which of the following is NOT one of the four elements that create value for real estate?

    <p>Durability</p> Signup and view all the answers

    Which of the following is NOT an economic force influencing value?

    <p>Population growth</p> Signup and view all the answers

    Which of the following is NOT a physical or environmental force influencing value?

    <p>Zoning Laws</p> Signup and view all the answers

    Which form of co-ownership allows each co-tenant to use the entire property and transfer their interest by gift or sale or by will at death?

    <p>Cotenancy</p> Signup and view all the answers

    Which form of co-ownership requires the four unities of ownership and creates a right of survivorship?

    <p>Joint Tenancy</p> Signup and view all the answers

    Which form of co-ownership is automatically terminated in the event of divorce and allows each spouse to have an equal, undivided interest in the property?

    <p>Marital Property</p> Signup and view all the answers

    Which of the following is NOT considered a common area in a condominium?

    <p>Land</p> Signup and view all the answers

    Which form of co-ownership is commonly used in business partnerships and requires all partners to have the right to use the property for partnership purposes?

    <p>Tenancy in Partnership</p> Signup and view all the answers

    What is the main difference between a condominium and a cooperative?

    <p>Financing options</p> Signup and view all the answers

    What is a Planned Unit Development (PUD) characterized by?

    <p>Shared common areas</p> Signup and view all the answers

    Which economic characteristic of land refers to people's choices and preferences for a given area?

    <p>Area Preference</p> Signup and view all the answers

    Which of the following is NOT a factor considered in determining market value?

    <p>Special considerations or concessions granted by anyone associated with the sale</p> Signup and view all the answers

    What does the term 'market value' refer to?

    <p>The estimated amount for which an asset or liability should exchange between a willing buyer and a willing seller</p> Signup and view all the answers

    What is the assumed condition of the buyer in a market value transaction?

    <p>Motivated, but not compelled to buy</p> Signup and view all the answers

    What is the significance of proper marketing in determining market value?

    <p>It exposes the asset to the market to obtain the best price reasonably obtainable</p> Signup and view all the answers

    Which one of these is true about a life estate?

    <p>The land reverts back to the original owner upon the death of the life estate holder.</p> Signup and view all the answers

    What is the main difference between a leasehold estate and a leased fee estate?

    <p>A leasehold estate is held by the tenant, while a leased fee estate is held by the landlord.</p> Signup and view all the answers

    What is an easement in gross?

    <p>An easement that belongs to an individual person or business and does not run with any parcel of land.</p> Signup and view all the answers

    What is the main difference between a license and an easement?

    <p>A license is a temporary permission, while an easement is a permanent right.</p> Signup and view all the answers

    Which principle emphasizes the importance of using the best market information available at the time of a transaction?

    <p>Principle of Substitution</p> Signup and view all the answers

    Which principle states that the value of a property is influenced by the expectation of future benefits?

    <p>Principle of Anticipation</p> Signup and view all the answers

    Which principle states that the value of a property is affected by the interaction of supply and demand in the market?

    <p>Principle of Supply and Demand</p> Signup and view all the answers

    Which principle emphasizes the importance of using comparable properties to determine the value of a property?

    <p>Principle of Substitution</p> Signup and view all the answers

    Which principle states that the value of a property is influenced by the presence of external factors, such as proximity to amenities or nuisances?

    <p>Principle of Externalities</p> Signup and view all the answers

    Which principle states that the value of a property is affected by the interaction of supply and demand in the market?

    <p>Principle of Supply and Demand</p> Signup and view all the answers

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