1. The four forces that influence real estate values are

*
1/1

a. Social, economic, governmental, and environmental

 
b. Land, labor, capital, and green space
c. Eminent domain, police power, escheat, and taxation
d. Governmental, social, taxation, and economic conditions
Feedback

The correct answer is A. Social, economic, governmental, and environmental.

Remember the P-E-G-S

Physical/Environmental, Economic, Governmental, Social

 
2. The reliability of an appraisal depends on the
*
1/1

a. knowledge and judgment of the appraiser

b. accuracy of the data used
c. Both a and b.
 
d. Neither a nor b
Feedback

The answer to this question is "both a and b."

The reliability of an appraisal relies heavily on the knowledge and judgment of the appraiser as well
as the accuracy of the data used. An appraiser must have a deep understanding of the market, local
trends, property values, etc., in order to make reliable assessments. At the same time, they must
use accurate data such as comparable sales and current market information to ensure their
appraisal is reliable. If either the appraiser’s knowledge or the accuracy of the data used is lacking,
then the reliability of an appraisal will be compromised.

 
3. An appraisal of current market value is considered to be accurate for
*
1/1

a. 90 days
b. until the property is sold
c. one year
d. date of appraisal
 
Feedback

The correct answer is d. date of appraisal.

An appraisal of current market value is an estimate for what a property is worth based on its
features, location, and other factors as determined by a professional appraiser at the time of the
inspection. This value is considered to be accurate only for the day that it was determined and may
not reflect any changes in the market or the property that occur afterward. As such, it is only a
temporary assessment and not necessarily reliable for any time period beyond the day of the
appraisal. It does not stay accurate until the property is sold or for any particular length of time after
its initial assessment.

 
4. Appraisals are always used
*
1/1

a. To make residential mortgages

b. To settle divorces
c. to settle lawsuit
d. to solve problem that involve real estate values
 
 
5. The mayor of a small town recently hired you to estimate the value of a new one-
story, three- bay fire station. The fire station was built last year at a cost of P2.5 million
(land and buildings). Similar-size d, one year-old commercial buildings in
comparable locations are selling for P2 million. lf you appraise this building for
approximately P2.5 million, you probably have conveyed.
*
1/1

a. Market value
b. Investment value
c. actual use
 
d. value in transition

 
6. You were recently asked to appraise the Midnight blue hostel. The bank asked you to
value the property for loan purposes. The comparable sales you used in this analysis
were all sales of the entire operation. The income used in your calculation was based
on the rental rate of each sleeping room and the sales at the restaurant and the bar.
You are most likely appraising.
*
0/1

a. Market value of the fee simple interest

b. Market value of the leased fee interest
 
c. Going-concern value
d. Value in use

Correct answer
c. Going-concern value

 
7. Investment value is best measured by
*
1/1

a. Market price to a specific investor

b. Market value to a specific investor
c. The cost of acquiring a competitive substitute property with the same utility to a typical
purchaser
d. The present worth of anticipated future benefits to a specific investor
 
Feedback

If an investor is interested in determining the investment value, then the present worth of anticipated
future benefits to that specific investor provides the most suitable measure.

 
8.  Estimating market value requires identification of the desires and priorities of
*
1/1

a. Well-informed buyers and sellers

 
b. A fully informed seller
c. A typically informed purchaser
d. A typically informed seller

 
9.   Market value is based on
*
1/1

a. insurable value
b. most probable price
 
c. cost
d. value in use
Feedback

Most probable price is a term used to describe the amount that could be reasonably expected for a
given product or service if it were sold on the open market.

 
10.   Which of the following is not a part of the market value definition?
*
1/1

a. Buyer and seller are typically motivated

b. The property sells in 90 to 120 days
 
c. Payment is made in cash or cash equivalent terms
d. Both parties are well informed
Feedback

The correct answer is b. The property sells in 90 to 120 days.

Market value is defined as the highest price a buyer, motivated and willing, would pay, and a seller,
motivated and willing, would accept when both parties are well-informed on all material facts and
neither party is under any compulsion to buy or sell. Payment for this transaction can be made in
cash or cash equivalent terms. Therefore, option b is not included in the definition of market value
because it does not affect the price that would be paid for a property.

 
11. The value of improved residential real estate is most influenced by
*
1/1

a. Passage of time
b. Brokers opinions of the value of properties
c. Changes in shopping patterns for consumers of goods and services
d. Cost of` construction increases
 
 
12. The purpose of regulating the real estate service practitioners practice in the
Philippines is to
*
1/1

a. Protect the public from dishonest realty practitioners.

b. Protect realty practitioners from unfair competition.
c. Upgrade the standards of realty service practice.
d. All of the above.
 
 
13. Market area life cycles include
*
1/1

a. Growth, stability, decline, and revitalization

 
b. Growth, stability, decline, and gentrification
c. Growth, stability, appreciation, and decline
d. Growth, level of appreciation, and decline

 
14. Neighborhood social influences include all of the following except
*
1/1

a. Population density
b. Occupant skill levels
c. Occupant age levels
d. Vacancy rates
 
 
15. Economic influences include all of the following except
*
0/1

a. Occupant income levels

b. Crime levels
c. Property rent levels
d. Birth rate
 
Correct answer
b. Crime levels
 
16. Governmental influences include all of the following except
*
1/1

a. Tax burdens
b. Special assessments
c. Zoning, building, and housing codes
d. Changes in property use
 
Feedback

The answer is d. Changes in property use.

Governmental influences involve regulations, laws, and policies that affect people's lives,
businesses, and the environment. These may include tax burdens, special assessments, zoning,
building, and housing codes but do not typically include changes in property use. Changes in
property use are more related to private individuals or entities making decisions regarding their own
properties. These decisions may be impacted by governmental regulations, but they are not
considered a direct influence of the government on its citizens.

 
17. A real estate market is
*
1/1

a. A shopping center office of a realty company

b. A group of individuals or firms that are in contact with one another for the purpose of
conducting real estate transactions
 
c. A list of potential buyers for the subject
d. A list of potential sellers who have property similar to the one requested by the buyer

 
18. Is the amount that maybe recovered when the property will be retired or disposed at
a future time
*
0/1

a. Salvage Value
b. Market Value
c. Principle of Anticipation
d. Scrap Value
 
e. Principle of Substitution
Correct answer
a. Salvage Value

 
19. Is the fair market value of the land in a specific zone or area as established by the
BIR.
*
1/1

a. Salvage Value
b. Market Value
c. Principle of Contribution
d. Scrap Value
e. Zonal Value
 
 
20. The predominant depreciation category for a residential location on heavily traveled
national highway is
*
1/1

a. Physical deterioration—curable
b. Physical deterioration—long-lived incurable
c. Functional obsolescence—curable
d. External obsolescence—incurable
 
 
21. The predominant depreciation category for severe termite damage throughout a
structure
*
0/1

a. Physical deterioration—curable
 
b. Physical deterioration—long-lived incurable
c. Functional obsolescence—curable
d. External obsolescence—incurable

Correct answer
b. Physical deterioration—long-lived incurable

 
22. A bad floor plan would generally be classified as
*
1/1

a. physical depreciation
b. economic obsolescence
c. functional obsolescence
 
d. economic deterioration

 
23. Which of the is NOT an agent of production?
*
1/1

a. land
b. transportation
 
c. labor
d. capital
e. entreprenuership

 
24. Functional utility depends on
*
1/1

a. zoning
B. wear and tear on the structure
C. tastes and standards
 
d. age of equipment
e. insurance requirements

 
25. Value in use is
*
1/1

A. subjective
 
B. objective
C. readily measurable
D. a market phenomenon
Feedback
The answer is A - subjective.

Value in use refers to the utility or usefulness of a product or service for an individual consumer, and
so it can vary from person to person. It is not objective since different people may perceive the same
item differently and thus have different levels of value attached to it. Additionally, it cannot be readily
measured since its components are mainly subjective. Lastly, value in use is not a market
phenomenon since it does not necessarily reflect the actual market price of an item. Rather, it
reflects an individual's personal opinion about its worth. Therefore, value in use is subjective.

 
26. Studying appraisal helps a person
*
1/1

A. to improve value estimation skills

B. to pass the real estate broker’s license examination
C. to understand other real estate courses
D. to communicate with appraisers
E. all of the above
 
 
27. Immovable or real property subjected to the easement established
*
1/1

A. servient estate
 
B. dominant estate
C. land estate
d. fixture
Feedback

The answer is A. Servient Estate.

An easement is the right to use a portion of another's land for a specific purpose. The property over
which an easement provides rights is known as the servient estate, while the benefitting party is
called the dominant estate. In this case, immovable or real property referred to in the question would
be the servient estate, subject to the easement established. The dominant estate is the party that
has the right to use or benefit from the servient estate.

 
28. Following are restriction of property rights except
*
0/1

A. zoning
B. escrow
C. taxation
 
D. escheat

Correct answer
B. escrow
Feedback

The correct answer is B. escrow.

The four restrictions of property rights are P-E-T-E

1. Police power (ex. zoning)
2. Escheat
3. Taxation
4. Eminent Domain

 
29. The best evidence of ownership is
*
1/1

a. Tax declaration
b. Torrens title
 
c. Technical description
d. Vicinity map

 
30. Refers to the compulsory successional rights granted by the law and the same
cannot be taken by anybody except when alienated during the lifetime of the testator
with consideration
*
0/1

A. Legitime
B. Succession
 
C. testate
D. intestate

Correct answer
A. Legitime