America's Real Estate Academy, Inc.

provides that an easement will automatically be extinguished when the servient and dominant estates are brought under the same ownership.

Appraisers adjust for property differences using lump-sum dollar amounts, percentage, or unit adjustments. Ultimately, all adjustments will be converted to a dollar amount for the purpose of adjusting the comparable’s sales price. Which type adjustment the appraiser will use depends in large part on how the differences are perceived by the market participants.

A lump-sum dollar adjustment allows the appraiser to quantify the contributory value of a specific feature or item and make the specific dollar adjustment directly for that feature or item. Appraisers will typically make lump-sum dollar adjustments for the following items or features: site/view, condition, basements, energy efficient items, heating and cooling systems, garages or carports, pools, porches, patios, fireplaces, and detached buildings.

is a piece of property that benefits from a right attached to another piece of property due to an appurtenant easement.

money deposited by a buyer under the terms of a contract, will be forfeited if the buyer defaults, but will be applied to the purchase price if the sale is closed.

is the right that a party or parcel of real estate has to cross or use the land of another.

Easements may affect value and are not always visible. Appraiser should require access to a survey, plat, and complete legal description to minimize the likelihood that an easement or encroachment will be overlooked when attempting to determine value. Common easements include power line, drainage, and underground utility easements.

is the right to use real estate that vests in a person or entity such as a power company or railroad. There is a servient estate but no dominant estate.

For example, an electric company may own an easement across several properties to install power poles and transmission wires. Other common easements in gross are found in utility easements, oil pipeline easement, sewer easements, and drainage easements. Unlike commercial easements in gross, personal easements in gross generally expire with death of the easement holder.

one of the four broad categories of factors affecting the value of real estate, which are - physical, social, economic and governmental. 

Economic factors that affect real estate markets originate at the national level and at the state and local level. From a national perspective the federal government’s monetary and fiscal policies may cause changes in interest rates, inflation, and the cost of housing. On a local level, the availability of high wage employment, financially sound employers, a good economic base, and a community that encourages business development are all favorable factors for real estate markets.

is the period of time a component or structure will contribute value to the property. Every improvement has a physical life and an economic life. Appraisers are concerned with economic life because economic life is tied to value.

An air-conditioning unit may only have an economic life of 5 years before it loses all book value. If it is well maintained, it may be useful for 15 years.