1. Synergy or Plottage is
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a. The process whereby large parcels of land are divided into lots and recorded in the register of
deeds
b. Is the assemblage of two or more parcels of land
c. Is the name of the discount given when larger parcels sell for more per hectare than smaller
ones
d. An incremental increase of value that results when two or more sites are combined to
produce greater utility
 
 
2. The length of a tract of land along a street is called the land’s
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a. depth
b. width
c. frontage
 
d. abutment

 
3. Refers to prices or values of land adjacent to or “across the fence” from railroad,
pipeline, highway or other corridor real estate.
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a. buyer’s market
b. across the fence value
c. corner influence
 
d. property line

Correct answer
b. across the fence value
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The correct answer is b. across the fence value.

Across the fence value refers to prices or values of land adjacent to or “across the fence” from
railroad, pipeline, highway or other corridor real estate. It takes into account factors such as noise
pollution, visual impact and access restrictions on properties near corridors due to their proximity.
Buyer’s market, corner influence and property line are not related to across the fence value.

 
4. A _______ is an article that was once personal property, but that has been installed
in or attached to land or a building so that such article is regarded in law as part of the
real estate
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a. Fixture
 
b. Trade fixture
c. domestic trade
d. all of the above
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The correct answer is a. Fixture.

A fixture is an article that was once personal property, but that has been installed in or attached to
the land or a building so that such an article is regarded in law as part of the real estate. This
includes chattels that are attached permanently, either by annexation or affixation, to the land or
some interest therein. Trade fixtures are a special type of fixture which are owned by the tenant and
designed to be used in the tenant's trade or business. Domestic trade is not related to fixtures.

 
5. A trade fixture:
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a. Contributes to the value of the property to which it is attached

b. Contributes nothing to the value of real estate
c. Is considered, but given no value by real estate appraisers
d. Both (b) and (c)
 
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The correct answer is d. Both (b) and (c).

A trade fixture contributes nothing to the value of the real estate and is considered but given no
value by real estate appraisers. Trade fixtures are not considered to be part of the real estate and
thus cannot contribute to its value. Instead, they are personal property that can be removed after
use. Additionally, trade fixtures cannot be sold with the real estate and must be returned to the
original owner upon completion of the lease or sale.

 
6. What term is used to describe a study of the cost -benefit relationship of an economic
endeavor?
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a. Investment analysis
b. Cash flow analysis
 
c. Feasibility analysis
d. Market analysis

Correct answer
c. Feasibility analysis
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The correct answer is c. Feasibility Study.

The term used to describe a study of the cost-benefit relationship of an economic endeavor is
feasibility analysis. Feasibility analysis is used to determine whether or not a proposed project is
worth pursuing. It requires an in-depth look at all aspects of the venture, including its potential risks
and rewards. By examining these factors, feasibility analysis can help decision-makers decide
whether or not to move forward with the project.

 
7. Gentrification is
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a. A class of citizens who live in blighted areas

b. A process in which older homes in a neighborhood are remodeled and different residents
replace the lower-income residents
 
c. A group of complementary land uses
d. A part of the life cycle of a market area in which property values are stable and the
maintenance levels are adequate

 
8. Linkages are
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a. The devices used to change a property from one use to another

b. The relationships between a buyer and seller in a real estate deal
c. Time-distance relationships between a property use and the supporting facilities
 
d. The tools necessary to market real estate
 
9. The scientific study of population statistics is
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a. scientography
b. demography
 
c. segmentation
d. forecasting

 
10. Another term for developer’s profit is
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a. contractor’s profit
b. entrepreneurial profit
 
c. surplus productivity
d. management profit
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The correct answer is b) entrepreneurial profit.

This term refers to the amount of money that a developer makes from creating and selling their
products or services. Entrepreneurial profit is usually generated through investments, such as
venture capital funding, royalties from licenses, fees for services rendered, and other sources. It can
also be gained through developing innovative solutions to problems or providing efficient processes.
Entrepreneurial profits are the lifeblood of many developers and provide them with a source of
income to support their work.

 
11. The cost of improvements identical in design and material to those of the subject
property is called the subject’s
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a. reproduction cost
 
b. replacement cost
c. sales price
d. market value
Feedback
reproduction cost - exact replica
replacement cost - same utility

 
12. The cost of improvements identical in utility to those of the subject property is called
the subject’s
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a. reproduction cost
b. replacement cost
 
c. sales price
d. market value
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reproduction cost - exact replica

replacement cost - same utility

 
13. The index method of estimating construction cost is based on
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a. the original cost of improvements

b. the cost of new improvements at current prices
 
c. book value
d. the national cost average of all components

Correct answer
a. the original cost of improvements

 
14. The amount of entrepreneurial profit
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a. reflects the success of the project

 
b. is based on how project expenses are categorized
c. always be the same, provided the project is completed within its estimated budget
d. cannot be estimated accurately

 
15. A person owning less than the entire bundle of rights has
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A. escheat
B. a fee simple title
C. a partial interest
 
D. personal property
E. a fee tail

 
16. All of the following statements are true EXCEPT
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A. real property is a type of service

B. value is dependent on market conditions
C. a good or service has no value in exchange unless it possesses certain economic and legal
characteristics
D. the price representing value is usually quoted in terms of money
 
E. real estate may be sold for all cash or financing arranged

Correct answer
A. real property is a type of service

 
17. All of the following will affect the market value of a property EXCEPT
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A. political factors
B. legal use restriction
C. acquisition cost to the present owner
 
d. economic factors
e. social concerns
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The correct answer is C. Acquisition cost to the present owner.

This factor does not affect the market value of a property because it is based on the price paid by
the current owner, which has no bearing on the property's current value. Political, legal use
restrictions, and economic and social concerns are all factors that can influence the market value of
a property. Therefore, they are not the correct answer.
 
18. Capacity to satisfy wants, production by labor and their exchangeability
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A. economic concept
B. economic principle
 
C. economic value
D. economic utility
E. economic forces

Correct answer
D. economic utility
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The correct answer is D. Economic utility.

Utility refers to the capacity of a good or service to satisfy wants and provide benefits. It is an
economic concept that encompasses production by labor, exchangeability, and value. This concept
is important in economics because it helps explain how people make decisions about what goods or
services they purchase. The idea of utility also explains why certain goods and services are more
desirable than others. The utility is a key element in economic theory, as it provides a way to
measure the value of goods and services relative to each other.

 
19. Amount may be recovered when the property will be retired or disposed at a future
time
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A. scrap value
B. book value
C. zonal value
D. salvage value
 
E. market value
Feedback

The correct answer is D. Salvage value.

Salvage value is the estimated amount that can be recovered when the property is retired or
disposed of at a future time. It is the estimated resale price for an old asset that has been fully
depreciated, and it's calculated by subtracting the estimated disposal costs from the estimated
proceeds expected to be received upon its sale. It can also be seen as the expected residual value
of the asset. The other choices are not related to this definition.
 
20. Fair market value of the land in a specific zone or areas as established by the BIR
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A. scrap value
B. book value
C. zonal value
 
D. salvage value
E. market value

 
21. The selling price of real estate is usually based on its:  
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a. Market Value
 
b. Speculative Value
c. Intrinsic Value
d. Exchange Value
e. None of the above
Feedback

The correct answer is a. Market Value.

Real estate market value is the amount for which an asset would be exchanged between
knowledgeable, willing parties in an arms-length transaction. It takes into account factors such as
location, size, amenities, and local economic conditions that affect what someone is willing to pay for
a property.

 
22. The average selling price of homes in a district can best be determined by:
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a. Comparative Analysis
 
b Assessed Value
c. An appraisal
d. Any of the above
e. None of the above

Correct answer
c. An appraisal
 
23. The best evidence of ownership is
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a. Tax declaration
b. Torrens title
 
c. Technical description
d. Vicinity map
e. None of the above

 
24. The following are determinants of value in appraisal of realty except:
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a. Transferability
 
b. Demand
c. Scarcity
d. Utility
e. Purchasing Power

Correct answer
e. Purchasing Power

 
25. Factors that will influence value related to population growth, birth control measures
and migration
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a. Physical
b. Economic
c. Social
 
d. Cultural
e. Political

 
26. Factors that will influence value which are governmental based. It is the degree of
efficiency in the maintenance of peace and order and the effort of providing the
essential services like: utilities, zoning and land use ordinance, anti-squatting law, rental
control law and etc.
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a. Physical
b. Economic
c. Social
d. Cultural
e. Political
 
 
27. Factors what will influence value which forces include the nature or basic industry
and business activity in the neighborhood, trend of employment, and expansion of
housing programs;
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a. Physical
b. Economic
 
c. Social
d. Cultural
e. Political

 
28. Factors that will influence value which refer to the location and age of the
neighborhood (size, area, shape and land topography), type of improvements and
architectural trends, street pattern, sidewalks and underground drainage.
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a. Physical
 
b. Economic
c. Social
d. Cultural
e. Political

 
29. Refers to the commitment for more than a limited duration of funds, land resources,
facilities and service by the two or more legally separate interest, to an enterprise for
their mutual benefit
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A. corporation
B. land assembly
C. cooperative
D. joint venture
 
 
30. Easement is to real property, usufruct is to:
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a. Personal property
 
b. Personal or real property
c. Personal and real property
d. Real property
e. None of the above