Mineral rights have been severed from a parcel and sold to a third party. What must the appraiser establish?
Correct Answer
C) Which rights are included in the assignment
Why this is correct: The first step in any appraisal is to identify the property rights being appraised. With severed mineral rights, the appraiser must determine whether the assignment is for the surface estate only, the mineral estate, or some other interest. Why the other choices are wrong: "The market value of the minerals in place" may be relevant but is secondary to defining the interest appraised. "Whether the surface owner may extract them" relates to legal rights but isn't the primary task. "The date on which the severance was recorded" is a factual detail, not the core analytical requirement. Exam tip: Always start by defining the property interest being valued. Severed rights create partial interests.
Why This Is the Correct Answer
Why this is correct: The first step in any appraisal is to identify the property rights being appraised. With severed mineral rights, the appraiser must determine whether the assignment is for the surface estate only, the mineral estate, or some other interest. Why the other choices are wrong: "The market value of the minerals in place" may be relevant but is secondary to defining the interest appraised. "Whether the surface owner may extract them" relates to legal rights but isn't the primary task. "The date on which the severance was recorded" is a factual detail, not the core analytical requirement. Exam tip: Always start by defining the property interest being valued. Severed rights create partial interests.
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