28 Questions
How do land use regulations impact the supply of real estate?
They determine what land can be used for different purposes like residential, commercial, and industrial uses
What is the most common designation of appraiser used by private lenders?
AACI (Accredited Appraiser Canadian Institute)
What is the primary difference between a CRA and an AACI?
An AACI can provide valuation and consulting services for various property types
When would a private lender consider using the Income Approach for property valuation?
For valuing commercial properties like apartment buildings
What is one of the purposes of a real estate appraisal?
Determining the cost to rebuild the home in case of damage
Which of the following is NOT used as security for mortgage financing?
Mobile homes
How does population growth affect the demand for housing?
It increases the demand for housing
Which of the following is NOT one of the purposes of completing a real estate appraisal?
Calculating future property taxes
What type of property would a real estate investor be interested in based on their preferred rate of return?
Duplex
How does the makeup of the population impact the types of housing in demand?
Different age groups prefer different types of housing
What is the primary purpose of using the direct capitalization approach?
Estimate market value for income-producing properties
When is the cost approach typically included in a residential appraisal?
To illustrate the cost of replacing the property
What is the most common approach to determining value for a private lender?
Direct comparison approach
What do Automated Valuation Models (AVMs) primarily use to calculate property value?
Public record data on residential properties
Are Automated Valuation Models (AVMs) generally suitable for private lenders?
No, except in a stagnant market
What risk assessment tool is commonly used by CMHC and Sagen, despite not being a valuation model?
Automated underwriting systems
What is the instrument used to discharge the debt registered against the borrower’s property that releases the lender’s interest in the property?
Discharge of charge
What is it referred to as when a lender wishes to increase the amount of security by placing a mortgage on both of her client’s properties?
Blanket mortgage
What is a judgment, in relation to a debt?
Court's ruling on debt owed
In Sasha’s example, what does a partial discharge refer to?
Lender partially releasing a security
What is the purpose of filing a writ of seizure and sale against a debtor's land?
To enforce payment of a debt
When can a creditor file a writ of seizure and sale against a debtor?
If the debtor owns land, now or in the future
What are the two automated underwriting systems mentioned in the text?
CMHC's 'emili' and Sagen's 'MySagen'
Which of the following is NOT one of the three types of appraisal reports mentioned?
Comparative Market Analysis (CMA)
Which type of appraisal is most suitable for private lenders?
Full appraisal
Why is a full appraisal considered to offer the highest level of protection for lenders?
It involves a complete inspection of the subject property, including interior and exterior photographs.
What is the legal instrument used to register a mortgage debt against the borrower's property?
Charge/Mortgage
Which entities DO NOT have access to the 'emili' and 'MySagen' automated underwriting systems?
Private lenders
Learn about the different purposes of real estate appraisals, including determining insurable value, property tax rate application, and investor pricing decisions.
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