BREA Broker Exam study guide
BREA Broker Exam · Work through your exam, one topic at a time.
The California Bureau of Real Estate Appraisers (BREA) licenses and regulates real estate appraisers in California. The broker-level credential sits at the top of the appraiser licensing ladder in the state, and it is aimed at appraisers who want to sign complex assignments, supervise and take responsibility for other appraisers' work, and operate at the highest level of independence the profession allows. The BREA Broker Exam study guide has 8 sections and about 2,181 words.
01Real Estate Appraisal Principles and Procedures
Appraisal rests on a body of economic principles and a repeatable process. Candidates must know the principles: supply and demand , substitution , highest and best use , conformity , progression and regression , anticipation , contribution , balance , and externalities .
308 words, about 2 min02Valuation Approaches and Methods
Candidates must command the sales comparison , cost , and income approaches and know when each applies. Sales comparison suits residential and vacant land; cost suits new or special-purpose property; income suits income-producing property.
263 words, about 1 min03Real Estate Law, Regulations, and Ethics
Understand the bundle of rights: surface, subsurface, air, and the right to use, exclude, and transfer. Distinguish fee simple absolute , leased fee , leasehold , life estate , and easements (appurtenant versus in gross, prescriptive versus by necessity).
260 words, about 1 min04Appraisal Standards and USPAP
USPAP has standards (development and reporting), standards rules (ethics, competency, scope of work, jurisdiction exception), and statements and advisory opinions . Know that the Ethics Rule , Competency Rule , Scope of Work Rule , and Jurisdictional Exception Rule apply to all assignments.
267 words, about 1 min05Market Analysis and Highest and Best Use
Market analysis examines demand , supply , and the interaction of price, rent, and vacancy. Know the four tests of highest and best use: legally permissible , physically possible , financially feasible , and maximally productive .
273 words, about 1 min06Property Description and Analysis
Candidates must read and interpret legal descriptions: metes and bounds , lot and block , government survey (section, township, range), and monument systems. Know that a section is 640 acres, a quarter section 160 acres, and that township is 36 sections.
279 words, about 1 min07Appraisal Report Writing and Review
A credible report states the intended use , intended user , purpose , definition of value , effective date , scope of work , and certification . It must contain enough information for the intended user to understand the analysis-not necessarily every data point, but sufficient support for the conclusions.
269 words, about 1 min08Real Estate Finance and Economics
Know loan-to-value , debt service coverage ratio , amortization , and the difference between fixed-rate and adjustable-rate loans. LTV = loan ÷ value; DSCR = NOI ÷ debt service.
262 words, about 1 min