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Azure Tide Section 16 Exam Questions with Complete Solutions Graded A+
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Azure Tide Section 16 Exam Questions with Complete Solutions Graded A+
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Azure Tide Section 16Exam Questions and
Complete Solutions
Graded A+
The Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) is a provision under Title XI
that mandates states to license and certify appraisers. - Answer: True
In real estate, the definition of highest and best use is always based on how the property is currently
being used. - Answer: False
The definition of highest and best use involves four tests. It is 1. the most probable use of land or
improved property that is legally possible, 2. physically possible, 3. financially feasible (and appropriately
supportable) from the market, and 4. which results in maximum profitability.
According to Florida Statutes 475, real estate licensees may perform appraisal for a commission as long
as the appraisal follows USPAP standards, are not being performed for a federally related transaction,
and the licensee is not referring to him or herself as an actual certified appraiser. - Answer: False
According to Florida Statutes 475, real estate licensees may perform appraisal for compensation as long
as the appraisal follows USPAP standards, are not being performed for a federally related transaction,
and the licensee is not referring to him or herself as an actual certified appraiser. Must be a flat fee not a
percentage of the value
Cost is how much money is required to produce the item. Price is the amount actually paid for an item.
And value is how much something is worth to the average buyer and seller at the time value is being
determined. - Answer: True
, The Concept of Substitution means that a buyer will be willing to pay more for a property that has lower
quality features substituted with higher quality features. - Answer: False
The Concept of Substitution means that a prudent buyer or investor will pay no more for a property than
the cost of acquiring, through purchase or construction, an equally desirable alternative property.
Appraisers commonly use the Comparative Market Analysis to determine value. - Answer: False
Appraisers commonly use the Cost Deprecation Approach, the Comparable Sales Approach, or the
Income Approach within an appraisal to determine value. Whereas real estate licensees commonly use
the Comparative Market Analysis (CMA) to determine value.
Progression is the value of an inferior property being enhanced by association with superior properties
whereas regression is the value of a superior property that is adversely affected by association with
inferior properties - Answer: True
Rather than ordering a full appraisal, lenders may utilize an Automated Valuation Model which is a
computer program that provides a quick synopsis of value. - Answer: True
Liquidation value is when property is sold piece by piece rather than as a whole unit. - Answer: False
Salvage value is when property is sold piece by piece rather than as a whole unit. Liquidation value is
when money is needed quickly, a property can be sold at a value less than it would be within a normal
timeframe.
When figuring operating expenses to calculate net operating income, you can include the cost of the
mortgage as an expense. - Answer: False
Operating expenses include fixed expenses, variable expenses, and reserves for replacements of building
components. Not included in operating expenses are Depreciation, Costs of mortgage, and Income
taxes.
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