Deck 17: Appraising Special Ownership and Interests

Question 1

The value of the lessee's interest in real property can be measured by capitalizing the difference between the contract and market rents.

Answer 1

True

Question 2

According to HUD, mobile homes constructed after 1976 are properly classified as manufactured homes.

Answer 2

True

Question 3

The owners of row houses and townhouses usually own the individual lot where the unit is located.

Answer 3

True

Question 4

The landlord's interest in investment property is called the leasehold estate.

Question 5

Planned unit developments usually involve common areas and homeowners' associations.

Question 6

A gross lease requires the tenant to pay all operating expenses.

Question 7

A condominium unit may be described as the ownership of an airspace combined with a joint ownership of the land and the common areas.

Question 8

The benefits that belong to the leased fee interest include the lease income and the rights to the reversion.

Question 9

Eminent domain appraisals involve essentially the same general purpose as other appraisals; the estimate of market value.

Question 10

In mortgaged property, the market value of the lender's real property ownership interest can be less than the remaining balance on the loan.