Real Estate Appraisal Purposes

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How do land use regulations impact the supply of real estate?

They only focus on zoning for commercial properties

They determine what land can be used for different purposes like residential, commercial, and industrial uses (correct)

They have no impact on the supply of real estate

They only affect agricultural land use

What is the most common designation of appraiser used by private lenders?

AACI (Accredited Appraiser Canadian Institute) (correct)

RRA (Residential Real Estate Appraiser)

CRP (Canadian Residential Planner)

CTA (Certified Tax Appraiser)

What is the primary difference between a CRA and an AACI?

An AACI specializes in valuing undeveloped residential properties

A CRA focuses on rural property appraisals only

A CRA is limited to residential properties with not more than four self-contained family units

An AACI can provide valuation and consulting services for various property types (correct)

When would a private lender consider using the Income Approach for property valuation?

For valuing commercial properties like apartment buildings (B) Signup and view all the answers

What is one of the purposes of a real estate appraisal?

Determining the cost to rebuild the home in case of damage (D) Signup and view all the answers

Which of the following is NOT used as security for mortgage financing?

Mobile homes (C) Signup and view all the answers

How does population growth affect the demand for housing?

It increases the demand for housing (C) Signup and view all the answers

Which of the following is NOT one of the purposes of completing a real estate appraisal?

Calculating future property taxes (B) Signup and view all the answers

What type of property would a real estate investor be interested in based on their preferred rate of return?

Duplex (C) Signup and view all the answers

How does the makeup of the population impact the types of housing in demand?

Different age groups prefer different types of housing (A) Signup and view all the answers

What is the primary purpose of using the direct capitalization approach?

Estimate market value for income-producing properties (A) Signup and view all the answers

When is the cost approach typically included in a residential appraisal?

To illustrate the cost of replacing the property (B) Signup and view all the answers

What is the most common approach to determining value for a private lender?

Direct comparison approach (D) Signup and view all the answers

What do Automated Valuation Models (AVMs) primarily use to calculate property value?

Public record data on residential properties (A) Signup and view all the answers

Are Automated Valuation Models (AVMs) generally suitable for private lenders?

No, except in a stagnant market (D) Signup and view all the answers

What risk assessment tool is commonly used by CMHC and Sagen, despite not being a valuation model?

Automated underwriting systems (C) Signup and view all the answers

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 (C) Signup and view all the answers

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 (A) Signup and view all the answers

What is a judgment, in relation to a debt?

Court's ruling on debt owed (A) Signup and view all the answers

In Sasha’s example, what does a partial discharge refer to?

Lender partially releasing a security (B) Signup and view all the answers

What is the purpose of filing a writ of seizure and sale against a debtor's land?

To enforce payment of a debt (B) Signup and view all the answers

When can a creditor file a writ of seizure and sale against a debtor?

If the debtor owns land, now or in the future (D) Signup and view all the answers

What are the two automated underwriting systems mentioned in the text?

CMHC's 'emili' and Sagen's 'MySagen' (A) Signup and view all the answers

Which of the following is NOT one of the three types of appraisal reports mentioned?

Comparative Market Analysis (CMA) (D) Signup and view all the answers

Which type of appraisal is most suitable for private lenders?

Full appraisal (C) Signup and view all the answers

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. (B) Signup and view all the answers

What is the legal instrument used to register a mortgage debt against the borrower's property?

Charge/Mortgage (B) Signup and view all the answers

Which entities DO NOT have access to the 'emili' and 'MySagen' automated underwriting systems?

Private lenders (A) Signup and view all the answers