Mock Board

Fundamentals of Real Estate Brokerage/ Appraisal-50%

Instructions:
Choose the best answer, In your answer sheet find the letter of the question and fill in the
space that corresponds to the letter of the answer you have chosen

1. If the land value in a subdivision has increased by 15% this year and the average price of land sold last
year was P 3.50M, what is that average price of the land sold today?
a. P3.378M c. P4.742>
b. P4.025M d. P4.575M
2. The following are techniques of estimating depreciation, except-
A. market Extraction method c. break down method
b. age-life method d. Useful life method
3. Which of the following is a basic component of value?
a. Utility; Scarcity c. Demand coupled with purchasing power
b. Transferability d. All of the above
4. To be considered comparable to the subject, a comparable should have been sold in-
a. Market transaction c. Sector transaction
b. Arms-length-transaction d. Real estate transaction
5. The cost of the improvement which is identical utility or the exact replica to the subject is called –
a. Reproduction cost c. Replacement cost
b. Cost d. Original cost
6. Conclusion as to the highest and best use is part of making the-
a. The initial estimate of value c. The mid estimate of value
b. The final estimate of value d. Progressive estimate of value
7. There is a theory that all structures have a total useful that can be predicted. The method of estimating
accrued depreciation based on this theory is-
a. Volume method c. Cost-to-cure-method
b. straight-line-method d. Quantity survey method
8. There is an important technical difference between the term reproduction cost and replacement cost.
Replacement cost refers to the cost of constructing a building that-
a. would have similar utility to the comparable
b. would have utility to the subject property
c. would have similar utility to the subject property
d. would have replacement to the subject property
9. The value of a building with a net operating income of P2000, 000 and with an over-all capitalization
rate of 9.5% is-
a. P2, 115, 840 c. P2, 155, 000
b. P2.105, 000 d. P2, 001, 500
10. The band of investment refers to a valid capitalization method that is used to build a capitalization rate
using just two components: financing and equity. It is determined using the formula: Cap Rate =
Financing Component + Equity Component. Financing and equity components, respectively refers to-
a. the annual mortgage constant multiplied by the loan to value ratio and the investor’s required
equity rate multiplied by the percentage of cash equity
b. The investor’s required equity yield rate multiplied by the percentage of cash equity and the
annual mortgage constant multiplied by the loan to value ratio
c. The mortgage multiplied by the percentage of value ratio and the investor’s required equity
yield rate multiplied by the percentage of cash equity
d. The investor’s required yield rate multiplied by the percentage of cash equity and the annual
mortgage constant multiplied by the percentage of cash equity
11. The three (3) traditional cost- estimating methods, except:
a. Replacement/Reproduction cost c. Unit-in-Place method
b. Comparative-Unit method d. Quantity Survey method
12. Refers to the right of the property owner to everything produced thereby or which is incorporated or
attached, either naturally or artificially.
a. Attachment c. Adhesion
b. Occupation d. Accession
13. Based on the Philippine valuation standards, there are only two (2) values, namely: Market value and
non-market value, which of the following are not non-market value?
a. Liquidation value, Prompt sale value
b. Insured value, special value
c. Owners value, Plottage value
d. Salvage value, Scrap value
14. A valuation review that is limited to the data presented in the report which may or may not be
independently confirm.
a. Desk review c. Technical review
b. Administrative review d. Field review
15. A Filipino citizen may apply for a free patent title under RA#10023 and in the case of 1st and 2nd class
municipalities, it should not exceed-
a. 200 square meters c. 650 square meters
b. 750 square meters d. 1,000 square meters
16. Amount that could be realized from sale of a dismantled asset to be removed for used wholly or
partially.
a. Scrap value c. Salvage value
b. Sound value d. Liquidation value
17. Amount that would be realized from disposition of the property in the used market assuming a
relative short period of time.
a. Liquidation value c. Scrap Value
b. salvage value d. Sound value
18. Appraisal for the price that a property would sale based on quick sales.
a. Scrap value c. Market value
b. Sound value d. Liquidation value
19. The age indicated by the condition and utility of a structure and is based on an appraiser’s judgment
and interpretation of market perceptions.
a. Effective age c. Actual age
b. Useful life d. Remaining economic life
20. In income approach to value by discounted cash flow analysis value is estimated by-
a. FV =PV x (1+i) n c. V = L/R
b. PV =FV / (1+i) n d. A & B
21. A former natural born Filipino citizen may acquire a property for residential purposes for a maximum
area of-
a. 1,000 square meters of urban land or four hectares of rural land
b. 1,000 square meters of urban land or two hectares of rural land
c. 1,000 square meters of urban land or one hectares of rural land
d. 1,000 square meters of urban land or three hectares of rural land
22. If a person died leaving a will, what is that special court proceedings that must be instituted to
determine the validity of the testamentary disposition of the deceased?
a. Probate proceedings
b. Petition to remove cloud o title
c. Reconstitution of land title
d. Petition for partition of property
23. The legal right of the state to acquire property of a decedent who died without a will and without heirs
is referred to as?
a. Dedication c. Eminent domain
b. Devise d. Escheat
24. The landlocked provinces have no access to sea or ocean. In other word it has no –
a. Coastline c. Shoreline
b. Borderline d. Boundary
25. One of the regions in the country that all province are landlocked –
a. ARMM c. CAR
b. NCR d. MIMAROPA

26. It describes an area that has its own unifying characteristics. This is done politically-
a. Region c. City
b. Province d. Municipality
27. This occurs through migration, trade and cultural diffusion –
a. Movement c. place
b. Location d. Human environment/interaction
28. It describes how people changes their environment or adapt to it –
a. . Movement c. place
b. Location d. Human environment/interaction
29. It describes an area in terms of its physical and human characteristics such as climate, landform,
waterways, language, religion, Social activities, etc.
a. Movement c. place
b. Location d. human Environment/interaction
30. It is the study of the environment, people and the resources they use-
a. Geography c. Physical geography
b. Human Geography d. Human and Physical Geography
31. It is the study of human use and understanding of the world, the spatial and organization of human
activity and its interrelationship with the physical environment-
a. Geography c. Physical Geography
b. Human Geography d. human and physical Geography
32. It deals with the natural features of the earth.
a. Geography c. Physical Geography
b. Human Geography d. human and physical Geography
33. It is fundamentally concerned with the ways in which patterns on earth surface reflect and influence
physical and human processes-
a. Geography c. Physical Geography
b. Human Geography d. human and physical Geography
34. As provided by the code of ethics and responsibilities, which of the following should be displayed by
the real estate appraiser’s office?
a. AIPO receipt c. Professional Identification care
b. Surety bond d. Certificate of registration
35. The statement that the real estate appraiser should be imbued with a social conscience for he/she
does not live by him/herself and his/her family alone can be reflected in the statement of –
a. No man is an island c. network with others
b. better to live inside a subdivision d. Join a professional organization
36. This is the economic period over which existing improvements are expected to continue to
contribute to property value
a. Effective age c. actual age
b. Useful d. Remaining economic life
37. Eminent domain gives the governments the right to –
a. acquire interest in private property without the consent of the owner
b. Regulate property to protect public safety and health
c. Acquire interest in private property when an owner dies without a will or known heirs
d. Create zoning ordinance
38. Applicable to real estate improvements, overall rate is the rate warranted by prudent investors that will
represent the return on investment and the return of investment for the improvements. It is computed as
follows; overall rate = Interest Rate + recapture Rate where –
a. Interest Rate is the rate of return of investment and Recapture Rate is the rate of return on
investment or 100% divided by Remaining Economic life improvement
b. Interest rate is the rate of return on investment and recapture rate is the rate of return of
investment or 100% divided by effective Economic life of improvement
c. Interest rate is the rate of return on investment and recapture rate is the rate of return of
investment or 100% divided by Estimated Economic life of improvement
d. Interest rate is the rate of return on investment and recapture rate is the rate of return of
investment or 100% divided by Estimated remaining life of improvement
39. Refers to a study undertaken for the purposes of development and investment, the evaluation of
investment performance, or the analysis of a transaction involving investment properties-
a. Market projection studies c. financial projection study
b. Demography studies d. financial position study
40. net present values (NPV) is the measure of the difference between the discounted revenues or
inflows and the costs or outflows in a discounted cash flow analysis. There is little real distinction between
NPV and present Value (PV). NPV is normally used to describe the differences between all discounted
cash flows and the discount rate are market derived the resulting NPV should be indicative of the _____.
a. is often used where the initial outlay or price is included in the cash flow: Market price
b. is not often used where the initial outlay or price is not included in the cash flow: Market Value
c. is often used where the initial outlay or price is not included in the cash flow: Market price
d. is often used where the initial outlay or price is not included in the cash flows: Market Value
41. capitalization rate can be estimated through the following method:_
a. Income Approach: band of Investment method and Build up method
b. Gross Income Multiplier (GIM): band investment method and build up method
c. Gross income multiplier (GIM): Income approach and build up method
d. Gross Income Method (GIM): and build up method
42. In income approach to value by direct capitalization value is estimated by –
a. V=I / R c. I= V x R
b. R = I / V d. all of the above
43. In the conjugal partnership of gains, what kind of property does the spouses have, except –
a. Gains realized by the joint or merged property and efforts of spouses
b. property from a game of chance
c. Winning from a game of chance
d. Property owned by spouses exclusively—
44. This refers to the loss in the value of an improvement because of wear and tear or due the passage of
time –
a. Depreciation c. Functional Depreciation
b. Physical Deprecation d. External Obsolescence
45. It is the result of incompatibility with current market requirements—
a. Depreciation c. Functional Depreciation
b. Physical Depreciation d. External Obsolescence
46. A property has 25 apartment units; 15 bedroom unit renting for P6,000 per month esch and 10 one
bedroom unit renting for P3,000 per month each. There are 14-two bedroom unit occupied and 8-one
bedroom occupied. The potential gross income is-
a. P1.248M c. P1.380M
b. P1.200M d. P1.500M
47. If a comparable was sold for P3.0M and has two-car garage valued at p150,000 and the subject
property has a garage, the indicated value of the subject can be computed by –
a. subtracting P150, 000 to the comparable property
b. Adding P75, 000 to the comparable sale
c. Subtracting P75, 000 from the comparable sale
d. adding P150, 000 to the comparable property
48. In a court case, the real estate appraiser was called to testify and under the code of ethics he must
testify in a manner –
a. To protect the interest of the client
b. To protect both their interest
c. to protect his interest
d. To testify in a truthful manner
49. A licensed real estate appraiser can under taken the appraisal of the factory and plant under the
following circumstances –
a. With assistance from one familiar with the appraisal of such
b. Is also a licensed real estate broker with experience
c. The owner is not in a hurry
d. He or she gained experience as an assessor
50. A real Estate appraiser who is also a real estate broker. May not appraise the property of his client if –
a. He will that be paid a professional fee
b. He will also sell the property after appraising it
c. The owner wants a predetermined price of the property
d. He is a new real estate appraiser
51. In case a person owns a piece of land, it can only be used for legal purposes and the government
may exercise its power referred to as –
a. police power c. government restrictions
b. land use plan d. Building permit
52. One of the most important rights of someone who owns agricultural land and which part of the bundle
of rights of an owner is –
a. Right to harvest c. Right to dispose
b. Right to plant d. Right to sell the harvest
53. Under the 1987 Philippine Constitution the government may transfer land to a Filipino Citizen by
homestead provided the size does not exceed—
a. 1, 000 square meters c. 12 hectares
b. 5 hectares d. 10 hectares
54. There are 2 main types of limitations on the right of ownership over land, one of which is legal or by
the government while the other is –
a. Private limitation c. Self - imposed limitation
b Deed of restrictions d. contractual
55. The real estate service practice is guided by a set of prescribed rules of conduct, morals and values
embodied in the –
a. Rules of court
b. Appraiser’s code of ethics
c. professional code of governance
d. National code of ethics and responsibilities
56. social, economic, governmental and environmental influences that affect property value are known as
a. laws c. factors
b. Forces d. Elements
57. Is sometimes called historical age or chronological age, is the number of years that have elapsed
since the building construction was completed.
a. effective age c. Actual age
b. Useful life d. Remaining useful life
58. The most commonly used method of estimating construction cost to derive an estimate in terms of
cost per unit area:
a. Replacement/Reproduction cost
b. Comparative-unit method
c. Unit-in place method
d. Quantity survey method
59. Lessors’ right to possess leased property upon termination of the lease contract is known as the right
of
a. Termination c. covenant
b. Remainder d. reversion
60. The legal mechanism by which local governments regulate the use of privately owned real property to
prevent conflicting land uses and promote orderly development is—
a. Escheat c. Zoning
b. deed restriction d. Eminent domain
61. In expropriation cases, the courts had determined “just compensation” to mean –
a. the current market value less anticipated future benefits
b. the current market value plus compensation for anticipated future benefits
c. the current value plus compensation for consequential loss less anticipated future benefits
d. the current value less compensation for consequential loss plus anticipated future benefits
62. The settlement of undeveloped areas by gratuitously conveying to individuals parcels of land subject
to conditions –
a. Sales patent c. Patent
b. free patent d. Homestead patent
63. Based on government studies the following were problems encountered by the land sector, except –
a. Land conversion policy and procedures that cannot respond to the growing demand for urban
development and protect forest and protected areas; the inability to meet the demand to supply
land for housing, commerce and industry is pushing people into informal arrangements
b. Institutional and policy arrangements that is ambiguous, unclear and ineffective; A rigid and
unresponsive land classification system that affects the legitimacy of existing land and constraints
the development potential of land resources
c. Inequitable property taxation system due to a number of factors including SMVs and ZVs that
does not reflect current market values, Incomplete tax roll and poor tax collection efficiency
 d. Unlimited access to land record due to number of factors including inefficient and incomplete
land record systems and lack of good spatial framework; transparency in land record system and
poor public assessed to records leading to proliferation of fake and spurious titles –
64. Conservation of land was effected by the government through the declaration of the following except;
a. parks and opens spaces
b. green belts and buffer zone
c. Historical and cultural landmark
d. Alienable and disposable spaces
65. The following are significant political influences and problems in the valuation and taxation system,
but not –
a. Multiple, conflicting valuation methodologies: Absence of uniform valuation standard; limited
provisions for formal education & training of assessors appraisers
b. Outdated, distorted real property values; Limited access to information, use of information
technology in the appraisal process
c. Multiple taxes on land ownership & transfers; weak enforcement of land related taxes
d. Law transaction taxes discourage formula transactions & lead to opportunities for inappropriate
practices
66. The minimum amount of Filipino ownership of a real estate corporation which intends to buy a
condominium unit shall be –
a. 40% c. 20%
b. 60% d. 100%
67. the following are techniques of estimating depreciation, except –
a. Market extraction method c. break down method
b. Age-life method d. useful life method
68. Which of the following is a basic component of value?
a. utility; scarcity c. Demand coupled with purchasing power
b. transferability d. all of the above
69. To be considered comparable to the subject, a comparable should have been sold in
a. market transaction c. Sector transaction
b. arms-length-transaction d. Real estate transaction
70. The cost of the improvement which is identical utility or the exact replica to the subject is called –
a. reproduction cost c. replacement cost
b. cost d. original cost
71. Conclusion as to the highest and best use is part of making the –
a. The initial estimate of value c. the mid estimate of value
b. The final estimate of value d. progressive estimate of value
72. These is a theory that all structures have a total useful life that can be predicted. The method of
estimating accrued depreciation based on this theory is –
a. volume method c. cost to cure method
b. straight-line-method d. quantity survey method
73. There is an important technical difference between the terms reproduction cost and replacement cost.
Replacement cost refers to the cost of constructing a building that –
a. would have similar utility to the comparable
b. would have utility to the subject property
c. would have similar utility to the subject property
d. would have replacement to the subject property
74. Acquisition by former natural born Filipino citizens is not limited to voluntary deeds but includes
involuntary deeds. The maximum area that may be acquired for residential purposes is –
a. 1, 000 square meters of urban land or 1 hectares of rural urban
b. 5, 000 square meters of urban land or 3 hectares of rural urban
c. 10, 000 square meters of urban land or 10 hectares of rural urban
d. 50, 000 square meters of urban land or 30 hectares of rural urban
75. Land management activities of the government is referred to as the –
a. Public land management
b. Public land registration
c. Public land administration
d. public land development
76. LGU’s process of converting agricultural lands to other uses thru an ordinance after conducting public
hearing is called –
a. land conversion/classification c. land development
b. Land administration d. land management
77. Acquisition by former natural born Filipino citizen is not limited to voluntary deeds, but includes
involuntary deeds. The maximum area that may be acquired for business purpose is –
a. 1, 000 square meters of urban land or 1 hectares of rural urban
b. 5, 000 square meters of urban land or 3 hectares of rural urban
c. 10, 000 square meters of urban land or 10 hectares of rural urban
d. 5 hectares of urban land or 30 hectares of rural land
78. Basic requirements and conditions for conversion includes the following, but not –
a. the land ceased to be economically feasible and sound for agricultural purposes
b. the land shall have substantially greater economic value for residential, determined by the local
legislative body concerned
 c. the land is located and already zoned as residential by the LGU
d. the land shall have greater economic value for commercial or industrial purposes
79. Refers to the acquisition by exchanging land for another piece of land of equal value or for shares of
stock in a government or quasi-government corporation whose book value is equal value to the land
being exchanged—
a. Land swapping c. land merger
b. land exchange d. land trade-in
80. This refers to the acquisition of lots of varying ownership through purchase or expropriation without
individual property restrictions –
a. land distribution c. land expropriation
b. land assembly/consolidation d. land management
81. Refers to the advance acquisition of land which value was based on existing use –
a. land assembly/consolidation c. land banking
b. land management d. land administration
82. Land disposition by way of public auction is –
a. Homestead c. patent
b. free patent d. sales patent
83. An administrative process under pubic land act for those who could not establish sufficient legal basis
for the title thereto but had occupied the land based on the prescribed period as provided by law –
a. sales Patent c. patent
b. Free Patent d. homestead patent
84. A valuation review performed by an appraiser to form an opinion as to whether the analyses, opinions
and conclusions in the report under review are appropriate, reasonable, and supportable.
a. Desk review c. technical review
b. Compliance review d. field review
85. A financial modeling technique based on explicit assumptions regarding the prospective income and
expenses or business of a property which involves the projection of a series of periodic cash flows either
to an operating property, development property or a business.
a. Direct capitalization
b. Net present value
c. mass appraisal
d. Discounting cash flow analysis?
86. Which of the following statements applies to a property with a nonconforming use?
a. The existing nonconforming use is the highest and best use
b. A nonconforming use is likely to arise from changes in zoning
c. A nonconforming use property may be under-improved but cannot be over improved
d. In the sales comparison approach, the appraiser does not have to make a separate adjustment
for the nonconforming use
87. Marketing data approach is also known as –
a. Comparative sales approach
b. Sales comparison approach
c. Sales approach
d. Comparative market approach
88. No personal shall be deprived of his property except by competent authority and for public use and
always upon payment of –
a. Just Compensation c. amortization
b. Contract price d. remuneration
89. Under the Philippine valuation standards, Guidance notes 13 (GN13) pertains to mas appraisal for
property taxation and GN5 pertains to –
a. Valuation of intangible Assets
b. Valuation of Agricultural properties
c. Consideration of hazardous and toxic substances in valuation
d. Valuation of personal property
90. The element of value includes which of the following?
a. Scarcity c. balance
b. Anticipation d. competition
91. Refers to the right of the property owner to everything which is produced thereby or which is
incorporated/attached, either naturally or artificially.
a. Accretion c. attachment
b. Adhesion d. accession
92. The four (4) property types for appraisal/valuation are the following:
a. Residential, Commercial, Industrial, Agricultural
b. Reap property, Personal property, Businesses, financial interest
c. Land, Building, Machineries, Businesses
d. Mineral, Timberland, Real estate, Real property
93. Under BP 185, a land to be classified as urban area means –
a. Residential, Commercial, Industrial, Agricultural
b. Reap property, Personal property, Businesses, financial interest
c. Land, Building, Machineries, Businesses
d. Mineral, Timberland, Real estate, Real property
94. Natural born citizens of the Philippines who became citizens of a foreign country shall retain their
Philippine citizenship under the dual citizenship law, upon –
 a. Becoming a permanent resident
b. Renouncing their foreign citizenship
c. Application with the DFA
d. Taking oath of allegiance to the Philippines
95. Which of the following is not a criterion for highest and best use?
a. Legal permissibility
b. Physical possibility
c. Maximum size of improvement
d. financial feasibility
96. Under the Philippine valuation standards, Guidance Notes 15 (GN15) pertains to valuation of historic
properties and GN9 pertains to –
a. Valuation of Intangible Assets
b. Valuation of agricultural properties
c. Discounted cash flow (DCF) analysis for market valuations and investment analysis
d. Business valuation
97. Whenever a river changing its course by natural courses opens a new bed through a private estate,
this bed shall became –
a. Public Dominion c. open property
b. Reclamation area d. private property
98. What is the period of right of redemption in pacto de retro sale?
a. it depends on the agreement of the parties which in no case shall exceed 10 years
b. it depends on the agreement of the parties which in no case shall exceed 8 years. In the
absence thereof, the period shall be 4 years
c. it depends on the agreement of the parties which in no case shall exceed 10 years. In the
absence thereof, the period shall be 2 years
d. it depends on the agreement of the parties which in no case shall exceed 10 years. In the
absence thereof, the period shall be four years
99. The age indicated by the condition and utility of the structure is called –
a. Economic age c. estimated age
b. Effective age d. actual age
100. Lands of the public domain are classified into –
a. agricultural, residential, timberlands, and industrial
b. agricultural, mineral, timberlands or forest and national park
c. commercial, agricultural, residential, industrial, resort and institutional
d. commercial, agricultural, residential, mineral, industrial, timberland and special
101. The method of construction cost of reproduction cost estimating is
a. Cost method
b. Straight line method
c. Quantity survey method or volume method or area method
d. Market method
102. When choosing comparable for the market comparison approach
a. Replacement cost
b. Economic, functional, economic obsolescence
c. Reproduction cost
d. The size of lot and building, age building, type of construction, number and type of rooms
103. Under the Philippine valuation standards, guidance notes 1 pertains to real property valuation and
guidance notes 2 pertains to
a. Business valuation
b. Valuation of agricultural properties
c. Valuation of plant, machinery, and equipment
d. Valuation of lease interests
104. Under the Philippine valuation standards, guidance notes 4 pertains to valuation of intangible assets
and guidance notes 10 pertains to
a. Valuation of agricultural properties
b. Business valuation
c. Valuation plant, machinery, equipment
d. Valuation of lease interests
105. The estimated additional cash inflow at the end of the economic life of the subject is known as
a. Reversion value or exit value c. Discounting cash flow
b. Market value d. present value
106. An appraiser acting for two or more parties in the same matter, without the written consent of those
concerned is
a. Maybe is in conflict of interest c. it is ethical
b. Is just human d. is following PVS
107. The Philippine valuation standards defines a value as a person of good repute who
a. Follow all the requirements of the PVS code of conduct
b. Is a member of a recognized national professional valuation body
c. Pursue a program of professional learning throughout his/her career
d. A,B,C
108. Efficiency and diligence requires that
a. A valuer should act promptly and efficiency in carrying out the clients instructions and should
keep the client informed of the valuers’ program
b. Instruction should be declined where circumstances preclude sufficient diligent
c. Either a or b
d. Both a and b
109. An external valuer is
a. A valuer who, together with any associates, has no material links with the client
b. A valuer who, together with any associates, has no material links in the subject of assignment
c. A valuer who, together with any associates, has no material links with the agent acting in behalf
of the client
d. All of the above
110. Integrity requires a valuer not to
a. Knowingly develop and communicate a report that contains false, inaccurate or biased
opinions and analysis
b. Act in a manner that is misleading and fraudulent
c. Contribute to or participate in a valuation service that other reasonable valuers would not
regard to be justified
d. All of these
111. The following is truly a global valuation standard
a. Asian valuation standard
b. Uniform standards of professional appraisal practices
c. Philippine valuation standards and development
d. International valuation standard
112. Which of the following is not part of the market value definition?
a. The property sells in 120 to 190 days
b. Both parties are well informed
c. Buyer and seller are typically motivated
d. Payment is made in cash or cash equivalent
113. Plant, machinery and equipment
a. Personal assets c. tangible assets
b. Intangible assets d. all of these
114. What are the types of depreciation?
a. Physical depreciation, functional, accrued
b. Physical depreciation, functional, external
c. Physical depreciation, functional extreme
d. Physical depreciation, accrued, external
115. The term synergistic value can be defined as
a. Incremental value created by combining two or more sites to produce greater utility
b. Value associated with the plot of the land on which the improvement is built
c. Value of a plot of land according to tax rolls
d. Total value of a parcel of land that has subdivided
116. An appraiser acting for two or more parties in the same matter
a. Maybe is in conflict in interest
b. Most probable use that is legal, physically possible and provides the highest financial returns
c. Immediate and necessary use
d. Ordinary and least expensive use
117. The criteria for determining the highest and best include all the following except
a. Physical possibility c. legal and financial feasibility
b. Maximal productivity d. effect on community welfare
118. Which of the following conditions is assumed in a normal definition of market value?
a. The real estate value is as of a future date
b. The property will sell promptly
c. Payment will be made in cash or its equivalent
d. Only the buyer is knowledgeable as to the potential uses of the property
119. A technical review maybe handled by
a. Civil engineer c. another valuer
b. Accountant of the client d. a lawyer
120. On the absence of sufficient direct market evidence this method of appraisal is regarded as an
acceptable method of arriving at the value of specialized assets but must incorporate market observations
by the valuer with regard to current cost and depreciation rates
a. Discounting cash flow
b. Cost to cure method
c. Depreciated replacement cost
d. Building residual technique
121. The international financial reporting standards adopted two models for the recognition
a. Fair value model and impairment value model
b. Cost model and fair value model
c. Reproduction cost model and replacement cost model
d. Market value model and depreciated cost model
122. In real estate law, the property retained when the owner splits off and conveys part of the property to
another party but retains some rights, such as an easement for access or utilities
a. Servant estate c. right of way
b. Dominant estate d. easement
123. An appraisal by more than one appraiser, which states common conclusions of all
a. Lot appraisal c. joint appraisal
b. Mass appraisal d. joint review
124. It represents the ownership interest of a lessor being lease to other
a. Lease fee estate c. lease interest
b. Leasehold estate d. leasehold right
125. Under the international financial reporting standards the fair value of terms of plant, machinery and
equipment is
a. Usually the market value determined by appraisal
b. May be included on an entity’s balance sheet at either cost less depreciation less impairment
c. Both a and b
d. Neither a and b
126. When a property’s highest and best use is likely to change in the near future the prevailing highest
and best use is known as
a. Interim use c. temporary use
b. Pending use d. alternative use
127. The interest belonging to the tenants created by the lease contract is
a. Lease fee estate c. lease interest
b. Leasehold estate d. leasehold fee interest
128. Refers to a method which the investors may use to determine the market value. This method
calculates the value of a subject using the gross rent investor anticipated that the subject will produce at
the end of the year multiplied at a given factor
a. Gross investment value c. gross income multiplier
b. Gross lease value d. gross lease multiplier
129. Real property which has an easement or other use imposed upon it in favor of another property
a. Servant estate c. right of way
b. Dominant estate d. easement
130. Communicates to users and 3rd party readers the value conclusion and conforms the basis of the
valuation the purpose thereto and any assumptions or limiting conditions
a. Appraisal report c. certificate of value
b. Valuation report d. final opinion of value
131. The final step in the valuation process is
a. Reconciliation of values c. valuation reporting
b. Highest and best use analysis d. value declaration
132. Which of the following statements is incorrect?
a. Valuation standards are statements of recognized principles and concept
b. Valuation standards describe the different valuation mythologies
c. Valuation standards are statements of accepted definitions
d. Valuation standards are statements of best practice if valuation and reporting
133. Refers to a commercial, industrial service or investment entity pursuing an economic activity
a. Financial interest c. commercial property
b. Shopping center d. business
134. A person who possesses the necessary qualifications, ability, and experience to execute a valuation
a. Professional real property valuer
b. Licensed civil engineer
c. Professional real estate consultant
d. Professional real estate broker
135. The principle of anticipation is
a. Future oriented
b. Part oriented
c. Involve “as of” date for an appraisal
d. Predicted the loan to value ratio for subject property
136. Which principle of value best affirms that values is the present worth of expected future benefits?
a. Supply and demand c. substitution
b. Balance d. anticipation
137. What principle states that value levels are sustained when the various elements in an economic or
environmental mix are in equilibrium?
a. Anticipation c. substitution
b. Equivalent d. balance
138. This defines the nature of the hypothetical transaction, e.g. whether or not there is exposure to a
market and the assumed motivation and behavior of the parties
 a. Valuation process c. approach value
b. Basis of value d. discounting cash flow analysis
139. Refers to assets which are not readily convertible into cash. It is synonymous with capital asset
which is employed for the purpose of producing revenue. Also referred to tangible assets where there is
no proprietary accountable as hospital, religious and charitable organizations, and educational institutions
a. Tangible value c. intangible assets
b. Capital property d. fixed assets
140. Refers to the value existing in the proven property operation. It is considered as an entity with a
business established distinct from the value of real estate only, ready to operate but with any going
business
a. Business value c. lease interest
b. Going concern value d. financial interest
141. Broadly buildings or other more or less permanent structures or developments located upon or
attached to land
a. Real estate c. personal property
b. Real property d. improvements
142. This principle states that when successive increments of one or more factors of production are
added to fixed amounts of the other factors there is a resulting enhancement of income, initially at an
increasing rate to a point of maximum return and then decreasing until eventually the increment to value
becomes increasingly less than the value of the added factors
a. Increasing and decreasing return c. balance
b. Contribution d. supply and demand
143. An appraisal technique used to estimate the market value of a property on the basis of the income it
produces or its capable of producing. Value is the present worth of future benefits arising from ownership
a. Cost approach c. building residual technique
b. Income approach d. sales comparison approach
144. The rate of return of investment irrespective of, and independent of any capital recovery received or
demanded by the investor or the rate on borrowed money
a. Capitalization rate c. interest rate
b. Recapture rate d. rate of return
145. A valuation technique which presumes that income can be split between land and improvements and
that the residual to land can be then capitalized into value
a. Cost approach c. sales comparison approach
b. Income approach d. land residual technique
146. These are conditions and assumptions under which appraisal is made
a. Limiting conditions c. waiver
b. Explanation d. assumptions
147. The environment or location in which goods and services trade between buyers and sellers through
a price mechanism
a. Demand c. supply
b. Market d. trade area
148. The estimate amount for which a property should exchange on the date of valuation between a
willing buyer and a willing seller in an arm’s length transaction after proper marketing wherein the parties
had each acted knowledgeably, prudently, and without compulsion
a. Fair value c. market value
b. Appraised value d. going concern value
149. Also known as the comparative approach, an appraisal procedure in which the market value
estimate is predicated upon prices paid in actual market transactions and current listings
a. Cost approach c. residual technique
b. Income approach d. market data approach
150. The process of valuing a group of properties as of a given date using standard methodology,
employing common data, and allowing for statistical testing
a. Mass appraisal c. income approach
b. Model calibration d. cost approach
151. A process of analyzing sets of property and market data to determine the specific parameters of a
valuation model
a. Mass appraisal c. income approach
b. Model calibration d. cost approach
152. The cost of constructing a similar property which is equally desirable and has the same utility as the
one under appraisal
a. Unit in place cost c. replacement cost
b. Quantity survey d. reproduction cost
153. The cost of constructing an exact replica of the building being appraised using current prices of labor
and materials and contractor’s practices
a. Unit in place survey c. replacement cost
b. Quantity survey d. reproduction cost
154. This principle states that prudent purchaser would pay no more for real property than the cost of
acquiring an equally desirable substitute on the open market
a. Substitution c. contribution
b. Balance d. supply and demand
155. This principle states that market value is determined by the interaction of the forces of supply and
demand in the appropriate market as of the date of the appraisal
a. Substitution c. contribution
b. Balance d. supply and demand
156. A property that by its nature is perceptible by the sense which is generally used in carrying on an
enterprise
a. Tangible property c. intangible asset
b. Real property d. real estate
157. The period of time over which the structure may reasonably be expected to perform the function for
which it was designed or intended
a. Economic life c. normal life
b. Useful life d. chronological age
158. In general economic theory the capacity of an economic good to satisfy human desires or needs is
known as
a. Desirability c. utility
b. Scarcity d. transferability
159. It is a representation in words or an equation of the relationship between value and variables
representing factors of supply and demand
a. Cost c. calibration model
b. Value d. valuation model
160. The present worth of future benefits arising out of ownership of property value exists when an item of
property has utility is relatively scarce arouses the desire of potential buyer to buy and backed by the
purchasing power
a. Value c. cost
b. Price d. market
161. Non-market value refers to
a. Liquidation value c. special value
b. Valuers other than market d. plottage value
162. This refers to the historical age or chronological age which is the number of years that have elapsed
since building construction was completed
a. Useful age c. economic age
b. Actual age d. normal age
163. A person who is paid a referral fee for locating and promoting business opportunities for others
a. Flip c. bird dog
b. Crack d. swinger
164. Is used when the value of the land can be estimated with a reasonable accuracy using the market
comparable
a. Development approach c. cost approach
b. Sales comparison d. building residual technique
165. The added desirability or utility of a property due to its frontage to two streets, which provides better
ventilation for residential purposes
a. Corner influence c. plottage
b. Corner lot d. plottage value
166. The following are phenomena studied in human geography except
a. Population c. economic activities
b. Settlements d. environment
167. These are phenomena studied in physical geography except
a. Land forms c. transportation
b. Rocks and minerals d. climate and weather
168. Train services are provided by three main railway networks that serve different areas of metro manila
and parts of Luzon except
a. Philippine national railways c. manila light rail transit
b. North rail transit d. manila metro rail transit system
169. The largest lake in the Philippines archipelago is Laguna de bay in the province of Laguna and Rizal.
The smallest lake that is in Agusan province is
a. Lake Lanao c. Naujan Lake
b. Taal lake d. lake Lumao
170. Manila, jaro, vigan and nueva caceres were chartered cities duting the Spanish time
a. Manila c. Vigan
b. Jaro d. Nueva Caceres
171. In 1948 one city, which of the chartered in 1939 became the capital of the Philippines. This city is
a. Manila c. Caloocan City
b. Pasay city d. Quezon City
172. This city was made again the capital city of the Philippines in 1976, which is
a. Manila c. Caloocan City
b. Pasay city d. Quezon City
173. The first individual to accurately calculate the conference of the earth
a. Eratosthenes c. Einstein
b. Aristotle d. Mozart
174. It is the description of a place in relation to another
a. Relative location c. exact location
b. Absolute location d. reference location
175. The location of a place using lines of latitude and longitude is
a. Relative location c. exact location
b. Absolute location d. reference location
176. It is territory or part of a territory lying wholly within the boundaries of another
a. Enclave c. extraterritoriality
b. Exclave d. quadri point
177. It is one which is politically attached to a larger piece but not actually contiguous with it
a. Enclave c. Extraterritoriality
b. Exclave d. Quadri point
178. Since lakes don not allow access to seaborne trade. Rizal province and another province are still
considered to be land locked which is
a. Laguna c. Calamba
b. Cavite d. Batangas
179. It is only region in the Philippines that has separate local government
a. NCR c. CAR
b. Socksargen d. ARMM
180. Provinces are further subdivided into cities and municipalities. The Philippines has a total of how
many provinces?
a. 71 c. 78
b. 75 d. 81
181. The following are social indicators for the desirable “Quality of Life” except
a. Health c. housing
b. Public d. religious tolerance
182. A property producing a gross income of P5.7685M was sold five months ago for P15.620M. What is
the property’s gross income multiplier?
a. 3.50 c. 2.40
b. 2.71 d. 3.00
183. The child may still own a land in the Philippines upon the death of the parents by
a. Acquiring dual citizenship c. marriage contract
b. Marriage to a Filipino d. judicial separation of property
184. For one to have a complete separation of property, the future spouses should execute a document
before marriage known to be
a. Prenuptial agreement c. marriage contract
b. Affidavit of waiver d. judicial separation of property
185. It is the right of a person to the fruits of a property even if the property is not owned by the said
person
a. Usufruct c. harvest agreement
b. Tenancy arrangement d. lease agreement
186. It refers to the temporary or limited turnover of the use and possession of one’s property to another
at an agreed price
a. Assignment of rights c. usufruct
b. Lease contract d. contract to sell
187. The mode of acquiring title like: South road properties in Cebu, mall of Asia in Pasay that requires
government approval for the filling of submerged land is known as
a. Drive pilling c. reclaimed development
b. Filling d. reclamation
188. Larrie migrated to US in 1990 born of Filipino parents: she wanted to retire in the Philippines and
wants to buy a house and lot in Cebu City. She should execute what document?
a. Sworn statement of citizenship c. affidavit under BP 185
b. Affidavit of waive d. Sworn statement of land ownership
189. An owner of a parcel of land leased the land to a tenant for 10 years. Which of the following
statements is correct?
a. The new owner has an option as to whether to accept the terms of the lease
b. The tenant may voluntarily terminate the lease
c. The tenant’s leasehold is not affected
d. The tenant’s legal interest in automatically terminated by operation of law

190. The form of deed use to return title of real property to its owner when the liability secured by a deed
of trust is paid in full is
a. Warranty deed c. Reconveyance Deed
b. Quit claim deed d. Tax Deed
191. This principle state that between dissimilar properties. The worth of the better property is affected
adversely by the presence of the lesser quality property
a. Progression c. regression
b. Increasing returns d. decreasing returns
192. The fundamental valuation principle underlying the sales comparison process is
a. Contribution c. conformity
b. Substitution d. change
193. An environment in which goods and services trade between buyers and sellers through a price
mechanism
a. Economic condition c. market
b. Neighborhood d. social
194. Interest resulting from the legal division of ownership interest in business and real property from the
contractual grant of an optional right of buy or sell property
a. Business c. leasehold
b. Partial interest d. financial interest
195. The valuation report communicates to users and third party readers the following except
a. The value conclusion
b. Appraisal fee
c. Confirms the basis of the valuation
d. Any assumptions or limiting conditions underlying the valuation

196. A valuer who is an the employ or either the entity that owns the assets or the accounting firm
responsible for preparing the entity’s financial record and/or reports as a
a. External valuer c. general valuer
b. Internal valuer d. Assessor
197. The fact that the value of a property tends to the equal the cost of an equally desirable substitute is
an example of the principle of
a. Balance c. contribution
b. Substitution d. diminishing returns
198. The principle of substitution holds that a purchaser will pay no more for a property than
a. The maximum he can afford
b. The cost of acquiring an equally desirable substitute
c. The price of a previous owned property
d. The price of a property with a greater utility

199. Which principle of value best affirms that the maximum value of a property generally cannot exceed
the cost of its replacement?
a. Increasing and decreasing returns c. substitution
b. Supply and demand d. balance
200. Which type of studies test the ability of various proposed improvements to meet investment
objectives?
a. Market c. marketability
b. Feasibility d. cost benefit

GOD BLESS!

TERESITA B.BONGALES,CE,REA.MPA