Complete FL Real Estate Exam 88 Study Guide Flashcards

Complete FL Real Estate Exam 88% Study Guide Flashcards How many cubic feet are in a cubic yard? 27 Suppose you want a 2 1/2 acre lot in Section 36. What is the legal description?SW 1/4 of the NE 1/4 of the SE 1/4 of the NW 1/4 of Section 36 Where is each plat map recorded?in the county where the property is locatedso that anyone wishing to find the full legal description can refer to that plat.An example of a Monument would be a(n):Old Dutch Mill,the Stone Fence,the stately old pine What is a section the basis of?A legal description

Principal Meridians run:North and South

What system does most of the country use to determine where a property is located?the U.S. Rectangular Government Survey or acombination of both metes and bounds and U.S. Rectangular Government Survey MARKET VALUEis looking for WHAT THE SALE PRICE would most likely BRING in an open market if the following conditions were met, if certain condition were met.The most important value for a real estate professional is market value. This is the definition used in all loans using federal money, i.e. for any loans sold on the secondary market to Fannie Mae, Freddie Mac or Ginnie Mae.Market value is the most probable price a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus.Appraiser's Ground Rules1. Payment must be in cash or its equivalent - the appraiser assumes the buyer is either paying cash for the property or is in the process of obtaining a loan.2. Buyer and seller must be UNRELATED and acting without undue influence, menace or duress. - The transaction is "Arms Length" meaning there is no relationship between the buyer and seller. Also, the appraiser must assume that no one has been forced into a contract to purchase the property.3.The property must be marketed for a reasonable time in an open and free-flowing market.4. Both buyer and seller must be well-informed consumers.Principles of value1. Highest and Best Use2. Substitution3. The Law of Supply and Demand4. Conformity5. Regression and Progression6. Anticipation7. Contribution8. Assemblage9.Competition10. Change Sections for a township are numbered from front upper ____ to _____ and across a township in a back and forth movement RightLeft

A township is then divided into how many sections?36

• Estimate the value of the propertyby each of the three approaches to value- Market Data

(sales comparison)- Cost (or Summation)- Income How many feet are in a mile?5,280 What is a Fractional Government Lot?are irregularly shaped parcels of land, usually fronting on water, which could not be divided practically into sections under the government survey systemareas which would not be divided practically using the method above and may be supplemented with a "metes and bounds" How is the U.S. Rectangular Government Survey arranged?in a series of grids with lines going north and south and other lines going east and west Each 24x24 square created by these guide meridians and correction lines is called a what?Check What is a legal description used for?as a form of identification,is used on legal papers like contracts,deeds andtitle insurance policies for a particular property What is the word thence used for?to indicate a change in direction Florida's measurement begins where?Tallahassee What is a lot and block system?The system utilizes a map referred to as a plat map Characteristics of VALUE" DUSTS"DEMAND - how much call is there for this property?UTILITY - how useful is the property in connection with the buyer's needs?SCARCITY- how hard to find is the property, how much of this type of property in

this price range is there?TRANSFERABILITY: Can the

seller provide a marketable title? Is the property free of encumbrances unless clearly stated? Will a lender be

willing to loan on the property?SITUS: is the Latin word for

location. In real estate, the term "Location, Location, Location is often used to describe the value of property. In this case, Situs is everything!Where does the survey end?at the place it started- the Point of Beginning or POB Where does the Tallahassee baseline run? East and West

• Analyze and Interpreta)Neighborhood Analysisb)Site analysis

The differences between value, price and cost VALUE is the amount brought in an open market under the above assumptions.PRICE is the amount the buyer will actually pay, sometimes with unusual circumstances.COST is how much cash it takes to build and improve property.Cost may also be historical - for example, what one paid for something is not necessarily what the item is worth today.What is a plat map?laid out with a complete legal description by section, number, etc A Broker's Price Opinionis a property valuation provided to a lending institution for distressed properties on the market.These opinions became valuable in determining short sale approval prices and, in some cases, foreclosure sale prices during the

housing crisis from 2008-2012.Since these valuations were not considered appraisals, no USPAP standards are required.If you want to buy 1/4 of a section how much land is that?The amount of land would be 1/4 of 640 acres= 160 acres.E 1/2 of the NW1/4 of the NE 1/4 of the SW1/4 of Sec. 36 is?2x4x4x4 = 128 640/128 = 5 acres

What does every property have?a Parcel Numberassessed value of the land and structuresowner's name and address of record

• State the problemDETERMINE PROBLEM!"Why am I doing this appraisal?Is

the purpose of this appraisal for market value, insurance value, salvage value, or tax value?" Correction lines running east and west are located every ____ miles north and south more or less of the base line 24 How many acres of land are there in the S 1/2 of the N 1/2 of the SW 1/4?10 acres20 acres40 acres160 acres Take 2x2x4=16. Divide 640 by 16= 40 acres.What States use the metes and bounds system? the original thirteen colonies, plus Hawaii, Kentucky, Maine, Texas, Tennessee, Vermont, West Virginia, and parts of Ohio What is the way to determine the identity of a property?A legal Description What is the starting point of a surveyor called? point of beginning (POB) Real Estate Professionals and Appraisals 475, Florida Statute allows sales associates to appraise real property for any NON-FEDERALLY related real estate transactions.However, any real estate professional who provides an appraisal for a non-federally related transaction must comply with the most current USPAP requirements.Estimates of value are not an exact science.Valuing a property requires experience and knowledge of the market as the person estimating the property will be using "subjective" (based upon opinion) interpretation.A lot contained 600 square yards and had a frontage of 40 feet. If the lot was rectangular in shape, what would be the length of the lot measure?15 feet135 feet185 feet217 feet First, convert square yards into square feet 600 x 9 = 5400 square feet.Area = length x width so if area is known then the formula becomes area ÷ width = length or 5400 ÷ 40 = 135 feet.State Licensed and Certified AppraisersAlthough real estate professionals are empowered to perform appraisals, they cannot perform an appraisal for any federally related real estate transaction. Valuation required for mortgage approval and underwriting must be provided by a non-biased third party with no interest in the actual deal.Alternate Formula to find the number of acres in a tract.640 acres / and divide by the bottom number of each fraction in the legal description. ex. 640/4/4/4/4=If the word AND is used. Do the math then add the two answers together.Where is Range 1E?on the east of the Tallahassee Principal Meridian To correct for the curvature of the earth, guide meridians are drawn every ____ miles east and west of the principal meridians and offset the principal meridian by ____ feet m/l 2450 a)Neighborhood AnalysisA gathering of facts about a neighborhood to determine the appeal to the buyer. These facts include- employment stability- convenience to employment- convenience to shopping- adequacy of public transportation- recreation