Question

1. Reconciliation occurs when

	A.	A landlord has a complaint with a renter and they settle their differences outside of court.
	B.	A bank has multiple appraisals and it chooses the best one
	C.	A lender has multiple valuations done and it averages them all to come to a value
	D.	An appraiser uses several different valuation approaches and arbitrarily assigns a weight to each of them to come up with a value.

2. Which of the following statements is true about obsolescence?

	A.	External obsolescence occur due to the exterior walls of the building deteriorating over time
	B.	Functional obsolescence occurs when a building is not up to date with current technology
	C.	Physical obsolescence occurs when a buildings fittings are out of style
	D.	A building owner has more control over external obsolescence than functional obsolescence

3. Which of the following statements is true about obsolescence?

	A.	External obsolescence occur due to the exterior walls of the building deteriorating over time
	B.	Functional obsolescence occurs when a building is not up to date with current technology
	C.	Physical obsolescence occurs when a buildings fittings are out of style
	D.	A building owner has more control over external obsolescence than functional obsolescence

4. Which of the following statements about lender title insurance is correct?

	A.	Banks pay for it because they benefit from it
	B.	All easements show up in a title search
	C.	It is require by the lender to obtain a mortgage
	D.	It is limited to 3 past transactions

Answer 1

ANSWER . Reconciliation in accounting is a process to check or to validitate two same accounting transactions recorded in different sets of books .It helps to check the error if any while recording the transaction (due to the double entery system )every transaction which is debit must have credit effect also . so validating debit balance with the credit balance is the reconciliation of satement .

The right answer is B that is reconciliation happens when the bank has multiple appraisals and it chooses the best one . as appraisal refers to estimation of values to its best way. because reconciliation is something to resolve the problem or any dilemna to its best proper way .

IN option A , the landlord and the renter settle the differences outside the court it means there is no recording of transaction in the books of accounts so , reconciliation can't be done.
In option C , a lender has multiple valuations done and it averages them to come to a value , here he has just apply the concept of averaging. and the same value will be  debited as well as credited so there is no reconciliation.
in option D, an apraiser arbitarily assingns a weight to different valuation approaches to come to a single value. . the word arbitarily makes the whole concept of reconciliation goes wrong. .

2. obsolescence refers to the state of not being in used due to the invention of something new and more efficient . there are various types of obselence like functional obselence, physical obselence, external obselence, economic obselence etc
1. external obselence refers to the factors outside the walls of property that causes reduction in its value for example , environment factors, social factors , loaction factors. it is a type of depreciation that causes fall in the value due to the surroundings of the property.
2. functional obselence occurs when asset becomes less useful or desirable due to outdated design, lack of improvements , outdated architechural design, building style and changing technology.
3. physical obselence occurs due to mishandling , negligence in care due to deffered maintenance. for example, leaking of roof etc .
SO FROM THE ABOVE DEFINITIONS IT IS CLEAR THAT THE STATEMENT B IS THE CORRECT ONE OUT OF OTHERS.

3. Lender title insurance protects the holder of the title from financial downfall in the value of property. it provides protection to property buyers and mortgage lenders.it is purchased by lenders that is banks or any financial institutes to avail financial protection that may arise due to property's title related issues. it is require by the lender to obtain a mortgage.

option A,B AND C are correct regarding title issues.