Live Stream Course Review Exam #3

Question 1 of 50

A capital deficit area is

an area where growth is faster than available savings to finance it.
an area where growth requirements are less than the savings available to finance it.
an area where disintermediation is taking place.
a county where public revenue is exceeded by expenses.

Question 2 of 50

Which is not a cause of physical deterioration?

lack of maintenance
wear and tear from use
the traffic pattern in a home
exposure to the elements

Question 3 of 50

Which appraisal technique is best suited for government buildings?

Cost depreciation approach
Comparable sales approach
Income approach
Unit in place method

Question 4 of 50

The comprehensive plan should be designed to

preserve the status quo.
be flexible.
meet the needs of the planning board.
concentrate the poor and the wealthy into separate areas.

Question 5 of 50

Which is correct?

Commercial banks are the primary source of short-term commercial loans.
An increase in demand for loans usually results in decreased interest rates.
The market responds quickly to supply and demand.
Real estate is homogeneous.

Question 6 of 50

Ad valorem means as to

quality
quantity
value
taxes

Question 7 of 50

Which can be depreciated for tax purposes?

intangible assets
improvements
land
land and improvements

Question 8 of 50

The Rural Housing Services Administration is NOT

funded through the Department of Veteran's Affairs.
generally designed for rural communities.
able to guarantee loans made by other lenders.
able to offer farm loans to agricultural workers.

Question 9 of 50

A special tax assessment is paid by

property owners who benefit by the improvement.
special bond issue.
addition to regular millage.
the state.

Question 10 of 50

A property owner’s request is rejected by the Zoning Board of Adjustment. He should

appeal to the school board.
get the neighbors to sign a petition.
appeal to the courts.
contact the county tax collector.

Question 11 of 50

Over-improvement is an example of

Physical deterioration.
Functional obsolescence.
Economic obsolescence.
Depreciation in general.

Question 12 of 50

Which receive revenue from real property taxes?

local, state, and federal government
city, county, and state
city, county, and school board
county, state and school board

Question 13 of 50

Which is NOT a major factors of comparison when estimating real property value?

Market conditions
Location
Physical characteristics
Floor plan

Question 14 of 50

A mill is

one thousandth of a dollar.
.01.
one tenth of a dollar.
one hundredth of a dollar.

Question 15 of 50

In the cost depreciation approach to appraising, the value of the land is

determined using the cost approach.
added to the depreciated cost of the building.
depreciated due to its wasting away.
not used in the approach.

Question 16 of 50

Which term applies to the appraisal of real property?

consideration
covenant
retail value
most probable price

Question 17 of 50

To determine the correct amount of property tax, multiply the tax rate by the

assessed value of the property.
last recorded sale price.
taxable value of the property.
appraised value of the property.

Question 18 of 50

What is the top tax rate on long-term capital gains?

15%
20%
28%
45%

Question 19 of 50

Special assessments are used to pay for

government expenditures over and above the budgeted amounts.
the paving of interstate highways.
regional sewage treatment facilities.
improvements that directly benefit the affected property owners.

Question 20 of 50

The mandatory distance between lot lines and building improvements is known as

a variance.
zoning.
frontage.
a set-back.

Question 21 of 50

Which is correct?

Value, price, and cost are synonymous.
If no reliable comparable sales are available, the comparable sales approach would be difficult to use.
The income approach is normally used to value public buildings.
The cost approach is most appropriate for apartment properties.

Question 22 of 50

Greenbelt laws provide for

The setting aside of some areas as parks.
Land that may never be used.
The assessment of land used in farming as agricultural land for property tax purposes no matter where it is located.
Areas of special concern by the environmentalists.

Question 23 of 50

Which is correct?

A certified appraiser needs a real estate license in addition to an appraiser's license.
The appraiser's estimate is the market price of the subject.
The least profitable use of real estate is its highest and best use.
Price is the amount paid for a property.

Question 24 of 50

When using the income approach for an appraisal, one item that is not deducted from the gross income is

the mortgage payment.
insurance.
property taxes.
vacancy.

Question 25 of 50

Which deductible expense for federal income tax purposes is available to homeowners?

property taxes
insurance expense
depreciation
maintenance

Question 26 of 50

Which is NOT correct?

As credit increases, demand increases.
As income increases, demand increases.
As price increases, demand increases.
As the cost of supplies and materials increases, supply decreases.

Question 27 of 50

Situs refers to

concealment of construction defects.
the economic quality resulting from the location and immobility of real estate.
the most profitable use of property.
the quality of topography of land providing the best prospect for development.

Question 28 of 50

The best indicator of supply and demand in residential housing is

the growth of population in an area.
vacancy ratio.
economic factors.
the number of housing units.

Question 29 of 50

The tax rate for cities and counties in Florida is capped at

5 mils.
10 mils.
12 mils.
15 mils.

Question 30 of 50

The amount of dollars spent to create an improvement is called

price.
cost.
retail value.
probable value.

Question 31 of 50

An appraiser measured the exterior of a home and found it to be 40 feet by 60 feet. Disregarding other factors, what is the cost per square foot if the house sold for $57,000?

$20.00
$22.50
$23.75
$25.25

Question 32 of 50

Henry Johnson purchased his residence in 2016 and sold it in 2020 for a gain of $185,000. He is 58 years of age. How will this be handled on his 2020 tax return?

Taxes on the home may be deferred, but not eliminated.
He may exclude the entire gain on the sale when computing his tax liability.
He may take a once-in-a-lifetime exclusion of $125,000, but must pay taxes on the balance of the gain.
He may defer all gain, but the price of the new home must be equal to or greater than the adjusted sales price of the old home.

Question 33 of 50

Market value is

the cost of reproducing an existing property.
the asking price for a piece of property.
the cost of replacing a piece of property.
an imaginary price that property would bring in an imaginary world.

Question 34 of 50

Income is $20,000. The capitalization rate is 10%. What is the value?

$50,000.00
$100,000.00
$200,000.00
$250,000.00

Question 35 of 50

A study of the physical nature of land including soil type and load-bearing capacity is a

physical use study.
base economics study.
physiographic study.
density study.

Question 36 of 50

In Florida, property tax assessments must be based on

the previous sales price.
just value.
best use value.
legal value.

Question 37 of 50

A 4-bedroom house with 1 bath has

functional obsolescence.
physical deterioration.
external obsolescence.
curable depreciation.

Question 38 of 50

When a county government in Florida must collect delinquent property taxes, it issues a

property tax certificate.
judgment lien.
tax deed.
special assignment.

Question 39 of 50

Which receives substantial reduction of property taxes?

public schools
government property
public libraries
farmers

Question 40 of 50

An appraiser measures the number of square feet in an existing home by

measuring from the exterior walls.
measuring from wall to wall inside each room.
getting the dimensions from the builder's blueprints.
obtaining the measurements from the tax appraiser's record.

Question 41 of 50

When the value of a business’s tangible assets is subtracted from the purchase price of a business, the amount remaining represents the

price paid for goodwill.
long-term liabilities of the business.
accounts payable to the business.
sales taxes collected but not yet remitted to the State.

Question 42 of 50

In order to better estimate the demand for dwelling space, most experts charged with analysis of new housing starts will use as a basis for their analysis

total population size.
the numbers of new households and their size.
average family income.
average family size.

Question 43 of 50

As net income increases, value

decreases.
increases.
is unaffected.
none of the above

Question 44 of 50

Land value is obtained separately under which approach to estimating value?

income approach
cost approach
market approach
multiplier approach

Question 45 of 50

The laissez-faire philosophy of government

involves government control over the economies of land use.
results in decreased regulation of private business.
represents a fairness attitude on the part of government involvement.
involves the President's ability to shape government policy.

Question 46 of 50

The most supportable, defensible approach to appraising real property is the

comparable sales approach.
income capitalization approach.
liquidation analysis.
cost-depreciation approach.

Question 47 of 50

John and Mary operate a small grocery store in Monticello for 10 years. The county commission changes the zoning to residential. They

must stop operation immediately.
probably could operate for a period of time under non-conforming uses.
should appeal to the legislature.
should appeal the FREC.

Question 48 of 50

The Truth-in-Lending Law of 1969, enacted to protect the consumer, is implemented by

Regulation Z.
RESPA.
Regulation D.
a Property Report.

Question 49 of 50

The highest and best use of property is

the legal use of property related to the largest improvement that may be placed on it.
the legal and possible use which generates the most return on the land when compared to alternatives.
the economic use of the land relative to its residential use.
the permanence of improvements to property.

Question 50 of 50

The planning commission

has members who are salaried.
acts as advisor to the elected city government.
is made up of professional planners.
is made up of elected members.

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