TAB - Tennessee Affiliate Broker Exam

Question 21: A state transportation department needs a strip of frontage from a private parcel to widen a highway, and it pays the owner fair market value for the strip taken. Which government power is being exercised?

Taxation

Police power

Eminent domain

Escheat

Question 22: A city installs new sidewalks along one street and charges each abutting owner a one-time amount measured by the feet of frontage on the improvement. Which kind of charge is this?

An ad valorem tax

A transfer tax

An impact fee

A special assessment

Question 23: A city divides its territory into mapped districts that list permitted uses and set limits on building height, setbacks, and lot coverage to guide orderly growth. Which control is this?

Zoning

A deed restriction

A subdivision regulation

A building code

Question 24: An owner of an oddly shaped corner lot cannot meet the required front setback because of the parcel's unusual geometry and asks the board of zoning appeals for relief. Which form of relief fits this request?

A zoning amendment

An area variance

A special use permit

A nonconforming use status

Question 25: A small corner grocery operated lawfully for years, and then the neighborhood was rezoned to allow only single-family homes. The store keeps operating afterward. What status does the grocery now hold?

An illegal use subject to closure

A use permitted by variance

A legal nonconforming use

A conditional use under a permit

Question 26: A deed conveys a lot with the grantee's promise that no structure other than a single-family dwelling will be built, and a buyer later begins framing a duplex. What is the neighbors' usual remedy?

Reverter of the lot to the grantor

Rezoning of the lot by the city

Automatic forfeiture of the buyer's title

An injunction halting the violation

Question 27: A homeowner spent a certain amount to build her house, the open market suggests it should bring a different figure, and a buyer actually paid yet another sum. Which term names what the buyer actually paid?

Price

Assessed value

Value

Cost

Question 28: A Knoxville investor inherits a wooded parcel that buyers admire and that is genuinely scarce, yet it has no recorded access easement, so no one can use or finance it. Which characteristic of value is missing?

Demand

Utility

Scarcity

Situs

Question 29: Two nearly identical ranch houses sit four blocks apart in Chattanooga, one priced well above the other. Informed buyers pursue the cheaper one and force the dearer to come down. Which principle is at work?

Conformity

Anticipation

Substitution

Contribution

Question 30: A large, finely built home stands in a Jackson neighborhood of modest ranches and will not recover its construction cost because the surrounding homes set a ceiling. Which principle explains this drag on its value?

Contribution

Progression

Conformity

Regression

Question 31: A Germantown seller spent a large sum on a saltwater pool and expects his asking figure to rise by that amount, but his agent says the pool adds far less. Which principle does the agent rely on?

Contribution

Anticipation

Substitution

Balance

Question 32: An appraiser screens uses for a vacant tract and applies one test before any other, discarding any use the law forbids no matter how profitable it might prove. Which test is applied first?

Financially feasible

Legally permissible

Maximally productive

Physically possible

Question 33: A major employer announces a future campus east of Nashville, and land prices in the corridor begin climbing on the day of the press conference, years before anyone is hired. Which principle does this illustrate?

Supply and demand

Change

Anticipation

Competition

Question 34: An appraiser must value a typical three-bedroom suburban home in Williamson County in a neighborhood where similar houses sell frequently. Which approach to value will most likely carry the greatest weight?

The cost approach

The income approach

The gross rent multiplier method

The sales comparison approach

Question 35: An appraiser must value a newly built church for which no recent sales of comparable buildings exist and which produces no rental income to capitalize. Which approach to value best fits this property?

The cost approach

The income approach

The gross income multiplier method

The sales comparison approach

Question 36: Within the cost approach, an appraiser estimates the cost to construct a building of equivalent usefulness using current materials, design, and standards rather than copying outdated features. Which term names this estimate?

Salvage value

Replacement cost

Reproduction cost

Accrued depreciation

Question 37: An investor is deciding what to pay for a fully leased apartment building, weighing the rental stream the property is expected to produce. Which approach to value speaks most directly to this purchase decision?

The cost approach

The sales comparison approach

The income approach

The index method

Question 38: A Hendersonville affiliate broker prepares a market study from sold, active, and expired listings to recommend a listing price for a seller. Which statement best describes the legal status of this study?

It is an evaluation as defined by federal banking rules

It is a broker price opinion for a lender

It is an appraisal because it analyzes comparable data

It is a comparative market analysis, not an appraisal

Question 39: A bank needs a value opinion for a federally related mortgage on a home priced above the residential threshold. Who may lawfully prepare the appraisal the transaction requires?

A state-licensed or certified appraiser

A home inspector retained by the buyer

Any real estate affiliate broker

The principal broker of the listing firm

Question 40: After developing three approaches that each indicate a different figure, an appraiser must arrive at a single final opinion of value. Which action reflects sound reconciliation of the indications?

Averaging the three indications mathematically

Weighting each indication by data quality and relevance

Adopting whichever indication is highest

Reporting the value before applying the approaches

TAB Tennessee Affiliate Broker Exam - Set 1 - Part 2

Question 21: A state transportation department needs a strip of frontage from a private parcel to widen a highway, and it pays the owner fair market value for the strip taken. Which government power is being exercised?

Question 22: A city installs new sidewalks along one street and charges each abutting owner a one-time amount measured by the feet of frontage on the improvement. Which kind of charge is this?

Question 23: A city divides its territory into mapped districts that list permitted uses and set limits on building height, setbacks, and lot coverage to guide orderly growth. Which control is this?

Question 24: An owner of an oddly shaped corner lot cannot meet the required front setback because of the parcel's unusual geometry and asks the board of zoning appeals for relief. Which form of relief fits this request?

Question 25: A small corner grocery operated lawfully for years, and then the neighborhood was rezoned to allow only single-family homes. The store keeps operating afterward. What status does the grocery now hold?

Question 26: A deed conveys a lot with the grantee's promise that no structure other than a single-family dwelling will be built, and a buyer later begins framing a duplex. What is the neighbors' usual remedy?

Question 27: A homeowner spent a certain amount to build her house, the open market suggests it should bring a different figure, and a buyer actually paid yet another sum. Which term names what the buyer actually paid?

Question 28: A Knoxville investor inherits a wooded parcel that buyers admire and that is genuinely scarce, yet it has no recorded access easement, so no one can use or finance it. Which characteristic of value is missing?

Question 29: Two nearly identical ranch houses sit four blocks apart in Chattanooga, one priced well above the other. Informed buyers pursue the cheaper one and force the dearer to come down. Which principle is at work?

Question 30: A large, finely built home stands in a Jackson neighborhood of modest ranches and will not recover its construction cost because the surrounding homes set a ceiling. Which principle explains this drag on its value?

Question 31: A Germantown seller spent a large sum on a saltwater pool and expects his asking figure to rise by that amount, but his agent says the pool adds far less. Which principle does the agent rely on?

Question 32: An appraiser screens uses for a vacant tract and applies one test before any other, discarding any use the law forbids no matter how profitable it might prove. Which test is applied first?

Question 33: A major employer announces a future campus east of Nashville, and land prices in the corridor begin climbing on the day of the press conference, years before anyone is hired. Which principle does this illustrate?

Question 34: An appraiser must value a typical three-bedroom suburban home in Williamson County in a neighborhood where similar houses sell frequently. Which approach to value will most likely carry the greatest weight?

Question 35: An appraiser must value a newly built church for which no recent sales of comparable buildings exist and which produces no rental income to capitalize. Which approach to value best fits this property?

Question 36: Within the cost approach, an appraiser estimates the cost to construct a building of equivalent usefulness using current materials, design, and standards rather than copying outdated features. Which term names this estimate?

Question 37: An investor is deciding what to pay for a fully leased apartment building, weighing the rental stream the property is expected to produce. Which approach to value speaks most directly to this purchase decision?

Question 38: A Hendersonville affiliate broker prepares a market study from sold, active, and expired listings to recommend a listing price for a seller. Which statement best describes the legal status of this study?

Question 39: A bank needs a value opinion for a federally related mortgage on a home priced above the residential threshold. Who may lawfully prepare the appraisal the transaction requires?

Question 40: After developing three approaches that each indicate a different figure, an appraiser must arrive at a single final opinion of value. Which action reflects sound reconciliation of the indications?

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