Property Valuation
In Montana, when a commercial appraiser must estimate value for a 'leased fee' interest versus a 'leasehold' interest, they are valuing:
ATwo different buildings on the same lot
BThe landlord's ownership interest (leased fee) versus the tenant's right of use under the lease (leasehold)—each has separate value depending on market vs. contract rent✓ Correct
CThe land value versus the building value
DThe mortgage interest versus the equity interest
Explanation
The leased fee interest is the landlord's ownership interest in a leased property. The leasehold interest is the tenant's right to use and occupy under the lease.
Related Montana Property Valuation Questions
- The cost approach to appraisal is most useful for:
- In Montana, 'functional obsolescence' in a property appraisal refers to:
- Which principle of value states that the value of a property is influenced by the values of surrounding properties?
- A Montana property appraiser who is asked to appraise a property by an agent who will only refer future business if the appraiser 'hits the number' should:
- Appreciation in real estate value is most directly influenced by:
- An appraiser values a Missoula apartment building using the income approach. The net operating income (NOI) is $60,000 and the capitalization rate is 6%. What is the estimated value?
- The 'gross rent multiplier' (GRM) method for valuing a Montana rental property involves:
- In Montana, 'functional utility' of a residential property in the sales comparison approach relates to:
Practice More Montana Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Montana Quiz →