The three distinct boards of TAF are
Appraisal Qualification Board, Appraisal Standards Board, Appraisal Practices Board.
Appraisal Certification Team, Temporary Certified Appraisers, Appraisal Communications Committee.
Appraiser, Appraiser Qualifier, Appraisal Law.
Appraisal Brokers, Appraisal Oversight, and Appraisal Training.
The gross rent multiplier uses
sale price and monthly rental rates.
sale price and depreciation.
sale price and budget costs.
sale price, monthly rental rates, and fixed costs.
External obsolescence in a property is generally
a result of poor maintenance.
due to architectural faults.
a type of depreciation that is incurable.
caused by the aging process.
The decision to convert a two-family residential home into a commercial office, housing a real estate firm and an insurance company is an example of what appraisal principle?
Plottage increments
Highest and best use
Anticipation
Regression and progression
Peeling paint on a home is an example of
inferior product selection.
economic obsolescence.
functional obsolescence.
physical deterioration.
Market value is defined by all EXCEPT
the assumption that the buyer and seller are sufficiently informed.
the allowance of a reasonable time for market exposure.
the relation to the price for which the property should sell in the open market.
the consideration of the price for which the property was last sold.
A property valuation provided to a lending institution for distressed properties on the market is a
real estate appraisal.
broker’s price opinion.
short sale analysis.
All of the above.
When an appraiser uses the phrase “effective age,” he or she is referring to
the number of years since improvements were made.
the age of the property based on its condition.
the estimated total life of an improvement.
the number of years during which the property will yield a worthwhile return on investment.
Which principle is the sales approach based on?
Conformity
Change
Anticipation
Substitution
Which BEST describes the principle that a home maintains its highest value by being in a neighborhood with similar-type housing?
Competition
Highest and best use
Regression and progression
Conformity
The first step in an appraisal is to
compare sold properties.
define the problem.
analyze the neighborhood.
gather data.
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The percentage which expresses the amount of risk that an investor is willing to make is called the
cap rate.
NOI.
loan to value ratio.
discount rate.
The term “NOI” MOST NEARLY means
the amount of money in annual income.
the amount of money left after the vacancy rate is deducted.
the amount of money left after the vacancy rate and operating expenses are deducted.
the amount of money left after the vacancy rate, operating expenses, and mortgage payments are deducted.
When an investor uses borrowed money to purchase a piece of investment property, he or she is taking advantage of
leverage.
capital gain.
depreciation.
basis.
When an investor was analyzing the risks in a property, he was considering an 8% return on his investment compared to a 10% return. In terms of the purchase price, what will happen?
The higher the risk, the lower the purchase price.
The lower the risk, the lower the purchase price.
The purchase price would be the same either way.
The higher the risk, the higher the purchase price.
What is an income tax term meaning an investment that will reduce or shield other money from income tax?
Appreciation
Capitalization
Adjusted basis
Tax shelter
When a business has been in operation for a long time, what type of value does it have?
Market value
Going concern value
Tax value
Capital value
An example of an “intangible” asset for a business would be
ovens and dishes used for the business.
the number of tables filled every day.
how many workers the business needs.
the reputation or goodwill of the business.
Which is NOT an advantage of investing in real estate?
Good rate of return
Hedge against inflation
Equity buildup
Lack of liquidity
An investor was looking at a sixteen-unit apartment building. Four of the units rented for $600, four for $750, four for $725, and four for $800 per month. The building had monthly expenses of $1200. If the investor wants an 8% rate of return, how much should he pay for the building?
$750,000
$1,000,000
$1,545,000
$1,725,000
In analyzing the value of a business, the method that is used to determine the value if the business were to bankrupt is called
cost approach.
income approach.
comparable sales approach.
liquidation approach.
Accrual accounting is where
cash is counted as it comes in and goes out.
future income and future debts are shown as they are received and invoiced.
debts are allowed to remain unpaid.
income is measured as it is collected.
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Mr. Smith likes to pay his taxes quarterly instead of once a year. If the assessed value on his home is $80,000 and the rate is 3.50 mills, what is his quarterly tax?
$60
$70
$280
$800
Tom sold his home for $140,000, paying a 7% real estate commission. He bought the home for $45,000, paid $2,000 in closing costs, and added a new fireplace and family room for $35,000. After figuring the adjusted basis for this home, what is the amount of taxable gain?
$35,000
$48,200
$58,000
$95,000
Paul Smith is not happy with the appraised value of his home. He appealed to the County Appraiser’s office and was turned down. He has also been turned down by the Value Adjustment Board. What can he do next?
He can do nothing since the Value Adjustment Board has turned him down.
He can appeal to the FREC for relief.
He can appeal to the district court in a Certiorari hearing.
He can appeal to the Department of Business and Professional Registration.
Homestead fraud
can result in a 50% penalty for the amount taken.
can result in a lien on all properties owned by the person committing fraud.
is a felony.
can result in a 25% penalty for the amount taken.
How much is the total Homestead Exemption for a person who is 65 years of age whose household income does not exceed $20,000?
$10,000
$100,000
50%
100%
The purpose of the Florida Green Belt Law is
to protect wetlands from being populated.
to protect city and county parks.
to protect the Everglades.
to protect agricultural land from high taxes.
The city wants to pave the road in front of Sam Smith’s house. Sam has 110 front feet. The cost to pave is $35 a linear foot, and the city will pay 25% of the paving. What is Sam’s cost?
$1,925.00
$2,887.50
$962.50
$1,443.75
“Trim” means
Tax Revenues in Measurement.
Take Resident’s Income in Measurement.
Truth in Millage.
Total Revenue in Marketing.
The meaning of exempt property in Florida is
the property never has any property tax on it.
the property is taxed, but the owner is exempt from paying it.
the property is taxed on federal property tax but not state property tax.
the property is owned by the city and is not taxed.
What is the purpose of the “Save Our Homes” Amendment?
It provides for multiple housing units for the poor.
It provides a restricted rate increase on the assessed value of the property
It provides the federal government a way to tax Florida property.
It provides for taxation of agricultural lands.
What is boot?
The amount of money after sales expenses have been subtracted
The amount of money after vacancy rates have been subtracted
The amount of money or personal property is given with an exchanged property
The amount of money gained on the sale of a property
Susan and John sold the home they had lived in for 18 months. They had previously sold another house in New York, where they had lived for 15 years. They decided to move into an apartment and sell the house because the view is better. They are filing jointly as a married couple, and they sell the property for $500,000. Will they owe any capital gain on the property?
No, because they are a married couple, filing jointly, and the exemption is $500,000.
No, because they are going to live in an apartment.
Yes, because they have deferred gain on the previous home.
Yes. Because they have not lived in this home for two of the last five years, they do not meet the exemption requirements.
What is the difference between installment sales and like-kind exchanges?
Installment sales are for land only; like-kind exchanges are for real estate only.
Installment sales use real estate brokers; like-kind exchanges do not.
Installment sales collect payments over a number of years; like-kind exchanges have cash as boot.
Installment sales never give the buyer a deed; like-kind exchanges give the buyer a deed.
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The concurrency requirement of the Florida Growth Management Act provides
for all the counties in Florida to raise taxes at the same time.
that all developers must be bonded to sell property.
that all building plans must include services such as roads to be in place before a building permit for building houses is issued.
that all Florida counties share the same planning commission and be licensed to do planning and zoning.
Mr. Jones bought a home from Mrs. Smith. The covenants and restrictions of the subdivision state that no vehicles can be parked on the grass; that the vehicle must be parked on a paved surface. Mr. Jones buys an RV and wants to put it beside the garage on an unpaved part of the yard. He calls the city and finds that the city does not have any restrictions on this. Mr. White, his neighbor, objects to the RV being parked beside the garage. Can Mr. White do anything about this?
Yes. Mr. White can complain to the sheriff about this violation of the subdivision restriction.
Yes. Mr. White can appeal to the court to enforce the subdivision restriction.
No, because the city does not have an ordinance against parking on grass, there is nothing anyone can do.
No. Mr. White will have to sue Mr. Jones for a moving violation.
The members of the local planning board are
paid staff in zoning and planning.
volunteers who are college trained in zoning.
appointed by the governor and report to him.
volunteers in the community who are untrained in zoning.
Commercial zoning is based on
population issues.
intensity issues.
environmental issues.
safety issues.
A shopping mall located in a community where customers would be drawn from outside the community would be a
job opportunity market, which affects demand for homes.
commercial and Industrial venture.
development of regional impact.
concern for environmental impact.
A builder has a 100-acre plot of ground. He sets aside 20% for a school and playground; 15% for roads, drainage ditches, and sidewalks; and 15% for a strip shopping area with parking and buffer. He plans to build three houses per acre. How many homes can be built on this property?
13 homes
50 homes
173 homes
150 homes
The old tire factory has been manufacturing tires for 50 years. It has been grandfathered into the zoning since it was still producing jobs as well as tires. The current zoning is agricultural. The tire business shut down last January, and the building burned to the ground last Saturday night. What can the owners of the property do?
The owners can rebuild the property and sell it as an industrial plant.
The owners can ask for a special exception to rebuild the plant and change businesses.
The owners cannot rebuild the plant, and they must sell the property as agricultural.
They must sell the property to the city because they no longer provide jobs for people.
Florida’s Coastal Construction Control Act does NOT require
A disclosure of a seaward property location
Coastal Construction Control Lines
Special permitting for rebuilding in a seaward area
Setback requirements for modification
Jack wants to build a business with a 42-foot sign on the top of his building. He believes that the sign will generate a lot of business. The city has an ordinance that limits the size of the sign to 30 feet and requires that it be on a signpost, independent of other structures. Jack’s attorney tells Jack he had better check with the city before he builds anything. What can Jack do about the sign issue?
Nothing. The ordinance is very clear that a sign is 30 feet and on a signpost.
Nothing. The 30-foot sign is not big enough to do Jack any good.
Jack can sue the city and get them to change the ordinance since it restricts his business.
Jack can apply to the zoning commission for a variance.
CERCLA stands for
Comprehensive Ecological Reserve Comprehensive Land Act.
Conducive Environmental Requirements for Comprehensive Land Assessment.
Center for Environmental Radiation and Contamination Lead and Acid Reduction.
Comprehensive Environmental Response Compensation and Liability Act.
The National Flood Insurance Program is in place to
buy homes from people in the flood plain.
provide for losses against flooding.
provide hurricane insurance.
protect city buildings against natural disasters.
A salesperson finds out the home he has listed was once used as a meth lab. In this circumstance, he should
perform a clean-up of the home.
disclose.
contact the EPA.
check to see if a local ordinance requires a disclosure.
How do PUDs differ from condominiums?
Condominiums are owned by individuals; PUDs are owned by corporations.
PUDs have a tenant in common ownership with the other owners of common ground; condominiums have joint tenancy ownership.
PUDs have common ground; condominiums do not have common ground.
PUD owners do not have any interest or ownership in the common ground as condominium owners do.
The purpose of zoning is
to protect the value of the individual landowner’s property.
to provide for the health and safety of the community.
to regulate business.
to promote all the same type of housing.