1. What type of appraisal is the most comprehensive?

Restricted use

Self-contained

Summary

2. Which of the following is not a purpose of an appraisal?

To help stakeholders identify property-specific risks and red flags

To help stakeholders compare properties

To estimate a fair and reasonable market value for the property

3. Real estate appraisal formats are designed to give credit analysts and account managers

Key information about stakeholder credentials and previous sale/transaction history

Detailed insights on property-specific value and comparable properties

Guidance with regards to deal structure and underwriting

4. The intended user of a real estate appraisal is most commonly...

A mutually agreed upon advisor for the transaction agreed upon by all stakeholders

An individual or corporation

A prospective buyer or their agent

5. A prospective appraisal has a completion date

In the present and an effective date in the present based on current conditions

In the present and an effective date in the future based on pending changes

In the present and an effective date in the future based on new information that has come to light

6. If the lender is not expressly listed as the client in an appraisal, additional correspondence is required in the form of a...

Letter of reliance

Letter of transmittal

Notarized letter

7. The bulk of the site-specific information can be found in what section of the appraisal:

Addenda/Appendices

Property Valuation

Property Description

8. The important elements in the terms of reference include everything except...

The valid period of the appraisal

The legal description of the lot

The scope of the appraisal

9. In a leasehold estate, which of the following is true

Rights to use the land expire on a predetermined date

Commercial mortgages are generally issued against these

The owner is permitted to divide the estate

10. What is a leading indicator that a property is not currently achieving its highest and best use?

Vacant property commands a significant premium to its peer group on the open market

Cap rate is high relative to its geographic and structural equivalents

Net operating income generated from the property is lower than peers

11. The cost approach to valuation is based on the concept of...

Expected appreciation of the subject property

Expected useful life of the property

Replacement cost

12. The income approach to valuation assumes that the value of an income-producing property is equal to

The most accurate valuation based on actual historical financial information

Consistently higher property valuation

A slightly more speculative present value

13. Of the two forms of the income approach to valuation, the DCF is considered to produce a

Consistently higher property valuation

The most accurate valuation based on actual historical financial information

A slightly more speculative present value

14. You should ensure there is a signed certificate which expressly outlines all of the following except:

Conclusions limited only by reported assumptions and limiting conditions

The appraiser has personally inspected the property

Compensation is not contingent on the report

Disclaimer of limited liability for the valuation

15. A form of the income approach to valuation is the discounted cash flow (DCF). In what situation may a DCF be used?

Near-term future tenancy is a non-issue as the tenant is in a perpetual lease

When the property is generating recurring revenue

When considerable building upgrades are pending