FUNDAMENTALS OF REAL ESTATE APPRAISAL

Set Z
SET A: Fundamentals of Real Estate Appraisal 200 Questions – 4 hours)
SET B: Professional Appraisal Practice 200 Questions – 4 hours)

1. It is the amount by which the value of controlling interests exceeds the value of a non-controlling interests in a business enterprise it is know as
a. Asset investment
b. Carrying amount
c. Working capital
d. Control premium
2. Which of the following statements applies to corner influence?
a. Corner sites are preferable to interior properties
b. Corner sites have a higher value per sqm than other sites
c. Corner sites have greater utility than other sites
d. Corner influence tables can be used to determine how a corner site affects the property’s value
3. An objective kind of values that can be estimated for items and a property bought and sold in the market is called
a. Estimated value
b. Value in change
c. Salvage value
d. Zonal value
4. The approach to value would involve an investigation into the rent schedules of the subject property and the comparables
a. Cost approach
b. Sales comparison approach
c. Market data approach
d. Income approach
5. The form of deed used to return title to property owner when the debt secured by a deed of trust is paid in full is the
a. Reconveyance deed
b. Deed of donation
c. Contract to sell
d. Quit claim
6. Zoning is an example of, what power of the government?
a. Escheat power
b. Eminent domain
c. Expropriation
d. Police power
7. Important reference material that maybe available from Assessors Office is
a. Vicinity map
b. Location map
c. Geographic map
d. Parcelliary map
8. Refers to a lot with direct access to any street or highway
a. Key lot
b. Landlocked lot
c. Corner lot
d. Cul-de-sac
9. Refers to the right of the property owner to everything produced there by or which is incorporated or attached, either naturally or artificially.
a. Attachment
b. Adhesion
c. Occupation
d. Accession
10. Amount that could be realized from sale of a dismantled asset to be removed for used wholly or partially.
a. Scrap value
b. Salvage value
c. Sound value
d. Liquidation value
11. Amount that would that would be realized from disposition of the property in the used market assuming a relative short period of time.
a. Liquidation value
b. Scarp value
c. Salvage value
d. Sound value
12. Appraisal for the price that a property would sale based on quik sales.
a. Scrap value
b. Market value
c. Sound value
d. Liquidation value
13. Which of the following approaches to value would involve an investigation of the rent schedules of the subject property and the comparables?
a. Cost approach
b. Income approach
c. Market data approach
d. Capitalization approach
14. The method of construction cost or reproduction cost estimating is
a. Cost method
b. Appraisal method
c. Straight-line method
d. Quantity survey method or volume method or area method
15. 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 opposite utility to the subject property
b. Would have utility subject property
c. Would have similar utility to the subject property
d. Would have replacement to the subject property
16. There is a theory that all structures have a total useful life that can be predicted. The method estimating accrued depreciation based on this theory is
called
a. Volume method
b. Cost-to-cure-method
c. Straight-line-method
d. Quantity survey method
17. The direct sales comparison approach is based primarily on or relies on the
a. Principle of consistency
b. Principle of substitution
c. Principle of change
d. Principle of conformity
18. The cost of improvements identical utility or exact replica to the subject property is called
a. Reproduction cost
b. Replacement cost
c. Original cost
d. Sales cost
19. Effective/Actual age is
a. Total economic life minus actual age
b. Total economic life minus effective age
c. Total utility minus diminished utility
d. Actual age adjusted for obsolescence
20. Accrued depreciation is
a. Proportional with the passage of time
b. A reproduction in a price
c. A future loss in value
d. A loss in utility
21. An estimate derived from observing completed transaction involving a large degree of amenities or
other personal and unpredictable factors is called
a. Cost value
b. Market value
c. Caprice value
d. Zonal value
22. Market value is based on
a. Most probable value
b. Insurable value
c. Sentimental value
d. Value in use
23. The appraisal process requires the appraiser to collect, record and verify
a. Data on the subject property’s neighborhood only
b. Data on all neighborhood in the city
c. General data on the region, city and neighborhood
d. Data on an annual basis
24. The process of identifying and analyzing sub-markets of a larger market is known as
a. Market analysis
b. Market substitution
c. Market segmentation
d. Market distribution
25. Why is the gross income multiplier normally not subject to adjustments by the appraiser? It is because
a. Relative disability is presumed to be reflected in the gross income generated in the market place
b. It is impossible to make adjustments when using the income data
c. Any differences between properties would be significant
d. The income approach never allows for adjustments for any kind
26. All the factors being equal, as the location of an income property becomes less desirable, the cap rate use will be
a. Lower
b. Less reliable
c. Less desirable
d. Higher
27. For the purpose of estimating vacancy rates in an appraisal engagement, which of the following statements is correct to estimate the value of a free
simple state?
a. The vacancy rate used in an appraisal should reflect the typical vacancy rate for comparable properties
b. Project that are being the highest and the best use of the site normally would have no vacancy
c. The vacancy rate should always be zero
d. The vacancy rate should never be zero
28. The principle of substitution implies that the value of a property trends to be indicated by value of an equally desirable property.
a. Comparable
b. Appraised
c. Replaceable
d. Anticipation
29. In appraisal, which of the following would NOT be considered in the market data approach?
a. Sales price of comparable properties
b. Terms of sale of comparable properties
c. Acquisition cost to present owner of the subject
d. Location of each comparable property
30. Which of the following statements applies the best to a property with a non-conforming use?
a. The existing conforming use in the highest and best use
b. A non-conforming is used likely to arise from changes in zoning
c. In the sales comparison approach, an appraiser does not have to make a separate adjustment for the non-conforming use
d. A conforming use property may be under improved but cannot be over improve
31. The value of real state is determined in the market mainly by its
a. Price
b. Size
c. Productivity
d. Mortgage
32. Primary data refers to
a. The main data used by the appraiser
b. Data collected by the appraiser
c. Data that have a direct impact on value
d. Data published by a reliable source
33. Applicant for the licensure examination for real state service shall file the following documents except:
a. Birth certificate(NSO) or valid Philippine passport, or any proof of citizenship
b. Transcript of record and/or diploma with scanned picture; notarized certification by employer of his/her year of experience or prerequisite
certification of registration(COR) and/or Professional Identification card(PIC) or DTI license( for real estate consultant)
c. NBI clearance; duly notarized accredited seminar and/or training certificate; community tax certificate
 d. 4 colored passport size picture with light background and complete name tag
34. Per 30 sec of IRR RESA, all positions in government requiring the services of registered license real estate service practitioners within __ years from
effectivity shall be filled only by registered and licensed real estate service practitioners.
a. 1year
b. 3 years
c. 2 years
d. 4 years
35. Under PRBRES Circular#2011-04, series of 2011 signed last January 20, 2011, the applicants for licensure examination shall be required to
undertake trainings and seminars, except
a. 60hours lecture, classroom and/or seminar hours on real estate subjects and/or modules for applicant to the board exam from an accredited
service provider
b. May submit only the 60 hours of training service provider
c. 60 hours of on-the-job training, apprenticeship and/or consultants with at least 5 years of real estate practice, developer in good standing with
HLURB; provincial city and municipal assessor and government appraiser; accredited service
d. May opt to take the full 120 hours thru seminars, training, and workshops
36. No partnership or corporation shall engage in the business of real estate service unless it is duly registered with the sec and the persons authorized
to act for the partnership or corporation are all __ real estate brokers, appraisers or consultants as the case may be.
a. Registered and licensed
b. Registered
c. Recorded and listed
d. Registered and listed
37. Under sec. 32 the partnership or corporation shall regularly submit the list of its real estate service practitioners to the PRC and SEC as part of its
___ reportorial requirements.
a. Monthly
b. Annual
c. Quarterly
d. bi-Monthly
38. A plot of land already prepared for underlying a structure or development is referred as
a. Site
b. Subdivision
c. Lot
d. Land
39. The term economic base analysis can be describe as
a. Analysis of the economic activity of a community that allowed it to attract income from outside its boundaries
b. Analysis of populations trends in a community
c. Compilation demographic data from comparable areas
d. Analysis of how interests rates will affect the base rent on a property
40. There are various types of appraisal report, which of the following is the final step of the appraisal process?
a. Narrative report
b. Form report
c. Bank from report
d. Letter of opinion
41. For an appraiser to value a property using the sales comparison approach, which of the following type of market would best provide confidence and
reliability?
a. Seller’s market
b. Inactive market
c. Buyer’s market
d. Active market
42. The term leasehold estate refers to the rights of
a. The owner of the property that has been leased
b. The tenant who leased property
c. The owner of a property that is not currently leased
d. The trustee who holds the lease
43. Which of the following statements applies to a corner influence?
a. Corner site have a higher value than other site
b. Corner site are preferable to interior property
c. Corner site have greater utility than other sites
d. Corner site is an adjoining of lots of two lots
44. What rental units of comparison is of primary importance of appraising office buildings with multiple tenants?
a. Rent per room per year
b. Rent per floor per year
c. Rent for sqm. of net rentable area per year
d. Rent per building
45. The amount of money the property would command under current market conditions which can be different from contract rent because this is
the amount of the property would command ignoring the leases.
a. Market rent
b. Effective rent
c. Contract rent
d. Percentage rent
46. Refers to materials, labor, fees and charges in builder’s contract
a. Replacement cost
b. Unit is place costs
c. Reproduction cost
d. Direct costs
47. These costs are incurred in the building construction, but not typically included the builder’s contract.
a. Replacement cost
b. Indirect cost
c. Reproduction cost
d. Direct cost
48. The amount of money in a lease contact that exceeds the market rent
a. Market rent
b. Effective rent
c. Contract rent
d. Percentage rent
49. This is the annual yield rate or return on capital that is generated within and investment portfolio over a period of ownership
a. Overall capitalization rate
b. Discount rate
 c. Yield rate
d. Internal rate of return
50. The Philippine total land area is distributed as follows
a. 40% forestland; 40% alienable lands; 20% private lands
b. 30% forestland; 30% public lands; 40% private lands
c. 50% forestland; 47% alienable; 3% unclassified lands
d. 20% forestlands; 20% alienable; 30% public lands; 30% private lands
51. Refers to the classification of properties according to its use –
a. residential, industrial, commercial,
b. present property and future property agricultural, special
c. agriculture, forest park or timber, mineral and parks
d. public domain and private ownership
52. The following does not represent the economics characteristics of real estate, except –
a. scarcity, improvements, permanence of investment and area preference
b. land is immobile, indestructible, land is unique
c. land is scars and limited, land is unique and immobile
d. scarcity, availability of land, uniqueness of land
53. Cost approach is often given more weight in the appraiser should –
a. an old or obsolete buildings
b. single family houses more than 10 years old
c. new buildings or special-use buildings
d. commercial and industrial properties
54. in reconciliation and conclusion of value, the appraiser should –
a. describe the relevance of each value
b. provide arguments to justify his or her final approach explored conclusion of value
c. discuss the reliability of the data used
d. do all of the above
55. It is the study of human use and understanding of the world, the spatial and organized of human activity and its interrelationships with the physical
government –
a. geography
b. physical geography
c. human geology
d. human and physical geography
56. Neighborhood social influences includes all of the following, except –
a. occupant age levels
b. vacancy rates
c. occupant skills levels
d. population density
57. An independent entity engaged by a REIT to value its real estate –
a. property appraiser
b. property valuer
c. appraiser
d. assets valuer
58. In matters of integrity, a Valuer/Appraiser must –
a. at all times maintain a high standard of honesty and integrity and conduct their activities in a manner not detrimental to their clients the public,
their professional or their respective nation professional valuation/ appraise
b. at all times deal with clients affair with proper discretion and confidentiality
c. perform an assignment with the strictest independence, objectivity, and impartiality without accommodation
d. not act in manner that is misleading or fraudulent
59. In matters of confidentiality, a valuer must-
a. at all times maintain a high standard of honesty and integrity and conduct their activities in a manner not detrimental to their clients the public,
their professional or their respective nation professional valuation/ appraise
b. at all times deal with clients affair with proper discretion and confidentiality
c. perform an assignment with the strictest independence, objectivity, and impartiality without accommodation
d. not act in manner that is misleading or fraudulent
60. It refers to the study of the earths surface including people’s responses to topography and climate as well as the soil, vegetation, distribution and
interaction of the difference phenomena on earth –
a. demographics
b. biodiversity
c. ecology
d. geography
61. The Greek word “geopraphia” which means –
a. earth surfave
b. earth description
c. earth atmosphere
d. earth innerphere
62. In sale of real property, deferred payment means the:
a. initial payment in a particular year exceeds 30% of the selling price
b. initial payment in a particular year exceeds 25% of the selling price
c. initial payment in a particular year exceeds 35% of the selling price
d. initial payment in a particular year exceeds 40% of the selling price
63. Particular student is a stockholder is a stockholder who is, directly or indirectly, the beneficial owner of ______ of any class investor securities of the
REIT –
a. more than 25%
b. more than 20%
c. more than 15%
d. more than 10%
64. It deals with the natural features of the earth –
a. Geography
b. Physical geography
c. Human Geography
d. Physical Geography and human geography
65. An appraisal may include
a. Property description, opinion of personal condition, opinion of market value
b. property claims, opinion of property condition, opinion of market value
c. property description, opinion of property condition, opinion of market value
d. property description, opinion of property condition, opinion of market situation
66. Valuer’s comply with a valuation standard either by;
a. requirement placed upon them by law and regulation and choice only
b. requirement placed upon them by law or instructions of clients, intended users, and/or experience only.
c. requirements placed upon them by law or regulations, choice, instructions, of clients intended users, and/or nation societies or
organizations or experience.
d. requirements placed upon them choice, instructions of clients, intended users, and/or national societies or organization or experience only
67. Refers to the study of the relationship between human being relative to their physical environment and cultural behaviors.
a. biogeography
b. geomorphology
c. human geography
d. ecology
68. Refers to the redistribution of lands, regardless of crops or fruits produced, to farmers and regular farm workers who are landless, irrespective of
tenurial arrangement, to include the totality of factors and support service designed to lift the economic status of the beneficiaries and all other
arrangements alternative to the physical redistribution of lands, such us production or profit-sharing, labor administration and the distribution of
shares of stock which will allow beneficiaries to receive a just share of fruits of the lands they work.
a. social justice
b. agrarian reform
c. program beneficiaries development
d. land tenure improvement
69. Refer to the study in understanding the physical effects of adding greenhouse gases to the atmospheres radiation balance –
a. biogeography and oceanography
b. geomorphology and pedogenesis
c. geomorphology and hydrology
d. climatology and meteorology
70. It gives emphasis to the study of man’s imprints upon earth, such as the distribution of population, various settlement patterns and the features
resulting from man’s productive activities in earning and living fall within this division.
a. biogeography
b. geomorphology
c. human geography
d. ecology
71. The sales comparison approach relies on the principles of
a. principle of substitution
b. principle of supply and demand
c. principle of anticipation
d. principle of highest and best use
72. Most residential appraisals are based –
a. leased fee
b. fee simple ownership
c. leasehold interest
d. co-ownership interest
73. A church in a residential area is an example of –
a. a nonconforming use
b. police power
c. forecast absorption
d. private restriction
74. It deals with the study of the distribution of cultural traits such as customs, traditions, taboos, religions, dialects and dwelling.
a. cultural geography
b. geomorphology
c. human geography
d. ecology
75. Referred to as the “Citizenship Retention and Re-acquisition Act of 2003” allowing dual citizens.
a. Republic act 6225
b. Republic act 9255
c. Republic Act 9225
d. Republic act 9252
76. It deals with the study of the numbers and distribution of the people and also related to demography, the statistical study of population.
a. cultural geography
b. population geography
c. human geography
d. ecology
77. Ms. Clara is married to Mr. Claro, she stated her marital status and the name of her husband in Absolute deed of sale, such information is
requirement under –
a. RA 9225
b. PD 957
c. PD 1529
d. BP 185
78. Refers to the study of the widely varying economic condition across the earth –
a. cultural geography
b. population geography
c. human geography
d. economic geography
79. It deals with the study of the relationship between political units such as provinces or states nation or union of nations –
a. political geography
b. population geography
c. human geography
d. economic geography
80. Refers to the study of cities with the important roles cities play in the life of a nation –
a. political geography
b. urban geography
c. human geography
d. economic geography
81. Refers to a jurisdictional requirement for registration involving land –payment of entry and registration fees entry of the document in the primary entry
book or day book
a. only choices a and b
b. only choices a and c
82. Refers to a shareholder of a REIT other than the non-public shareholders –
a. public shareholders
 b. investor
c. shareholder
d. sponsor
83. Is the systematic study of origin, distribution and significance of the major physical features of the earth such us land forms, climates,
topography, oceans, geographic, arrangement of people and natural resources and numerous other relationship to one another –
a. human geography
b. physiology
c. physical geography
d. philology and ecology
84. In matters of disclosure, it is essential that valuers/appraisers develop and communicati0on their analyses, opinions and conclusion to users of their
services thru –
a. financial reports that are meaningful and not misleading and that disclose anything that might be taken to affect objectivity
b. report that are misleading and that disclose anything that might be taken to affect objectivity
c. appraisal reports that are meaningful and not misleading and that disclose anything that might be taken to affect objectivity
d. appraisal report that are meaningful and not misleading and that disregard anything that might be taken to affect objectivity.
85. The Philippine / International Valuation Standard (IVS) –
a. does not have any formal authority in law or is intended to be just complementary to the rules, by law and regulation of national associations
controlling or monitoring the activities of the valuers
b. does not have any formal authority in law is intended to be just complementary to the rules, by laws and regulations of nation
associations controlling or monitoring the activities of the valuers
c. does not have any formal authority in law is intended to be just complementary to the rules, by laws and regulations of national associations
d. controlling and monitoring the activities of the valuers
86. Refers to the monthly payment made by a buyer an installment basis –
a. amortization
b. option payment
c. monthly payment
d. monthly amortization
87. Refers to a professional administrator of real properties who is engaged by the REIT to provide the property management services.
a. Property Consultant
b. Property Manager
c. Property specialist
d. Property Marketing consultant
88. It analyzes differences and similarities in climate from place. It considers wind movement, cloud formation, temperature changes and precipitation
of all kind.
a. Biogeography
b. Physiology
c. Geomorphology
d. Climatology
89. Refers to any person who is acting alone or in conjunction with one or more other persons, directly or indirectly, contributes cash or property in
establishing a REIT.
a. public shareholders
b. investor
c. geomorphology
d. climatology
90. The sponsor/promoter of the REIT refers to the following except:
a. a director, principal officer or principal stockholders of the sponsor/promoter of the REIT
b. a investor or principal stockholder of the REIT
c. an associate of a director, principal officer or principal stockholder of the REIT or its sponsor/promoter
d. a related corporation to the REIT or its sponsor/promoter
91. The cost of installing an air conditioner system in an office building is justified only if the rental increase that can expected as a result of the
installation exceeds the amount spent
a. principle of substitution
b. principle of progression
c. principle of regression
d. principle of contribution
92. It refers to the study of land and water forms as well as the development of irregularities in the surface of the earth like; glaciations, river floodplains,
underground caves, shorelines, coral reefs, sand dunes, volcanic features and the erosion cycle.
a. biogeography
b. physiology
c. geomorphology
d. climatology
93. The effectivity of RA#6657 or the comprehensive Agrarian Law -
a. June 10, 1988
b. June 15, 1988
c. June 20, 1988
d. June 5, 1988
94. Vacancy and collection losses are deducted from gross income using-
a. Environmental science
b. Human Geography
c. Economic Geography
d. Ecology
95. It covers all the science including ecology, geology and climatory or phenology that deals with the environment –
a. Environmental Science
b. Human Geography
c. Ecology
d. Genecology
96. It is a scientific study of population characteristics –
a. Geography
b. Demography
c. Ecology
d. Genecology
97. In many down town areas, parking areas making more profits than older office buildings. The applicable economic principle is?
a. Principle of substitution
b. Principle of supply and demand
c. Principle of anticipation
d. Principle of highest and best use
98. A program has been announced for a multi-million-peso shopping mall to be constructed in to vacant lot you own property values in the area of the
proposed site will tend to increase as a result of this announcement. The applicable economic principle is?
a. Principle of substitution
b. Principle of progression
c. Principle of anticipation
d. Principle of regression
99. It refers to the elements of geography
a. psychology and human geography
b. physical geography
c. physical geography and human geography
d. geography and ecology
100. It is the degree of variation of life forms within a given ecosystem, biome or an entire planet; it is the measure of health of an ecosystem –
a. Biodiversity
b. Ecology
c. Demography
d. Geography
101. Cash Advances granted to officers and employees which may be classified into:
a. Regular cash advance
b. Special cash advances
c. Optional cash advances
d. A and B only
e. B and C only
102. Cash Advances granted to cashiers, disbursing officers, paymasters and/or property/supply officers for salaries and wages,
commutable allowances, honoraria and other similar payments and petty cash operating expenses the explicit authority.
a. Regular cash advance
b. Special cash advances
c. Optional cash advances
d. Specific cash advances
e. NOTA
103. Cash Advances granted on the explicit authority of the agency heads to duly designated disbursing officers or employees for other
legally authorized purposes.
a. Regular cash advance
b. Special cash advances
c. Optional cash advances
d. Specific cash advances
e. NOTA
104. Peddlers shall be taxed at a rate
1. not exceeding Fifty Pesos (₱50.00) per peddler annually.
2. not exceeding Fifty Pesos (₱50.00) per peddler quarterly.
3. Sixty Pesos (₱60.00) per peddler annually.
4. not exceeding Fifty Pesos (₱50.00) per peddler monthly.
5. NOTA
105. May levy an amusement tax
i. Province ii. Municipal iii. City. iv. Barangay
a. i and ii only
b. i, ii, ii and iv
c. i and iii
d. ii and iii
106. A _____________ shall be issued to every person or corporation upon payment of the community tax.
a. Community tax certificate
b. Certificate of Title
c. Tax Declaration
d. Birth certificate
e. NOTA
107. The Province may impose the following taxes except.
a. Tax on Transfer of Real Property Ownership
b. Tax on Business of Printing and Publication
c. Franchise Tax
d. Tax on Sand, Gravel and Other Quarry Resources
e. Capital Gain Tax
108. Is a levy on real property determined on the basis of a fixed proportion of the value of the property.
a. Ad Valorem Tax"
b. Value Added Tax
c. Real Property Tax
d. Estate Tax
e. Capital Gain Tax
109. The permit to extract sand, gravel and other quarry resources shall be issued exclusively by the ___________________.
a. Provincial Governor
b. Municipal Mayor
c. Punong Barangay
d. AOTA
e. NOTA
110. The following are exempt from the community tax, except:
a. Diplomatic and consular representatives
b. Transient visitors when their stay in the Philippines does not exceed three (3) months
c. Transient visitors when their stay in the Philippines does exceed three (3) months
d. NOTA
e. AOTA
111. The taxation on ownership of real property by a person is governed by:
a. Local Government Code of 1991
 b. Tax Code of 1997
c. National Internal Revenue Code
d. Bureau of Internal Revenue Regulations
112. Prompt payments of Real Property tax may be given a discount of ….
a. ten percent (10%)
b. Twenty percent (20%)
c. Thirty percent (30%) of Real Property tax
d. Five percent (5%)
e. Three percent (3%)
113. Advanced payments of Real Property may be entitled to the maximum discount of ….
a. ten percent (10%)
b. Twenty percent (20%)
c. Thirty percent (30%)
d. Five percent (5%)
e. Three percent (3%)
114. The inherent power of the State to impose and collect taxes for the purpose of defraying government necessary expenses for public
funds
a. Zoning
b. Taxation
c. Escheat
d. Assessment
115. The number of ranking eligible recommendees of the governor or mayor, as the case may be, subject to civil service law, rules and
regulations from which the Secretary of Finance shall appoint a Local Treasurer.
a. 2
b. 3
c. 4
d. 5
e. None of the above
116. The following are some of the requirements for the appointment of a Local Treasurer except:
a. A resident of the local government unit concerned
b. A holder of a college degree
c. A Certified Public Accountant
d. A first grade civil service eligible or its equivalent
e. Years of experience in treasury or accounting service
117. The plantilla of personnel in the local government unit concerned in relation to the position of Local Treasurer should show the following
information except:
a. Designation of Position
b. Appropriation or Budget Item Number
c. Range/Salary Grade of the Position
d. Documents establishing compliance to the prescribed requirements
e. Authorized and Actual Salary per annum
118. The delegation of the Appointing Authority over Provincial, City and Municipal Treasurers and their Assistants may be given by the
Secretary of Finance to:
a. BLGF Executive Director
b. Local Treasurer
c. Provincial Governor
d. Department of Budget and Management
e. Local Chief Executive
119. Requests for relief, transfer, or detail of Treasurers and Assistant Treasurers shall be acted upon only for justificable reasons and after
compliance with the requisites of due process comprising with the following except:
a. Treasurer consents to the action taken
b. Completion of the final audit finding of cash shortage and properly validated
c. Termination of the formal investigation
d. Treasurer has been formally charged with a grave offence
e. 90 day preventive suspension has expired
120. Unless sooner revoked, the designation of the OIC/ICO of Local Treasury Offices and Acting Assistant Provincial/City/Municipal
Treasurers shall be a period of:
a. 3 months
b. 6 months
c. 1 year
d. 3 years
e. 6 years
121. The designation, conditioned upon a satisfactory performance and in the absence of any derogatory report and/or adverse information
against the designate, can be extended only:
a. Once
b. Twice
c. Thrice
d. Upon recommendation by the Local Chief Executive
e. None of the above
122. Designations and extensions thereof shall be processed by the Regional Office within:
a. Within 3 days before the expected temporary or permanent vacancy
b. Within 5 days before the expected temporary or permanent vacancy
c. Within 10 days before the expected temporary or permanent vacancy
d. Within 15 days before the expected temporary or permanent vacancy
e. None of the above
123. Submissions by the Regional Office for designations and extensions thereof shall be confirmed within:
a. 10 days from the issuance of the Order
b. 15 days from the issuance of the Order
c. 30 days from the issuance of the Order
 d. 45 days from the issuance of the Order
e. None of the above
124. The Local Treasurer shall submit certified statement covering income and expenditures to the LCE on or before:
a. April 14 of each year
b. July 15 of each year
c. September 5 of each year
d. December 31 of each year
e. None of the above

125. The City or Municipal Treasurer, jointly with the City or Municipal Accountant, shall issue a certified statement covering actual income
on or before:
a. April 14 of each year
b. July 15 of each year
c. September 5 of each year
d. December 31 of each year
e. None of the above
126. The Local Treasurer shall be a member of the following Local Committees and Boards except:
a. Selection and Promotion Board of the BLGF Offices
b. Local Finance Committee
c. Bids and Awards Committee
d. Local School Boards
e. Appraisal Committee for purposes of expropriation and purchase of real property
127. A property record, which is a traditional assessment document maintained by the provincial, city or municipal assessors, showing,
among others the market and assessed values of the property as the basis for the collection of real property tax
a. Declaration of Real Property
b. Declaration of Real Estate
c. Declaration of Real Property Tax
d. Declaration of Real estate Tax
128. A sale of property after a period of non-payment of taxes.
a. Auction Sale
b. Tax Sale
c. Tax Deficiency
d. Foreclosure Proceeding
129. Land is historically considered as a source of wealth, power, and prestige as much as it has become one of government’s basic
sources of:
a. Raising public funds
b. Assessment
c. Taxation
d. Collecting Taxes
130. The earliest forms of property taxation were employed by the:
a. Spaniards
b. Roman Empire
c. Americans
d. Japanese
131. This became the earliest forms of “tax rolls” listing the taxability of land, farm implements, money, clothing, and transport and cargo
modes such as ships, carriages, and mules.
a. Spanish Census
b. Roman Census
c. American Census
d. Japanese Census
132. During this regime in the Philippines there was no system of real property taxation as it is applied today.
a. A Spanish
b. Roman Empire
c. American Regime
d. Japanese
133. The Spanish “encomienda system levied taxes on male tenant farmers of military age (16 – 60) in a form of tribute or _________ for
the privilege of working the land.
a. Special tax
b. Property tax
c. Income Tax
d. Personal tax
134. The short-lived “1st Philippine Republic of 1898 provided for a system of realty taxation but was not implemented completely under the:
a. Malolos Constitution
b. Both A & B
c. Philippine Constitution
d. None of the above
135. The ________ laid the ground works of real property taxation in the Philippines. In 1901, the Philippine Commission promulgated Act
Nos. 82 and 83 authorizing municipal and provincial treasurers to levy realty taxes at rates not exceeding ½ of1% and 3/8 of 1%,
respectively, in the organization of local governments.
a. Spaniards
b. Roman Empire
c. Americans
d. Japanese
136. The Administrative Code of 1916 (Act No. 2657) incorporated the:
a. Municipal Code and Provincial Act
b. City and Provincial Act
c. City and Municipal Act
d. None of the Above
137. Act No. 3995 created the:
 a. Office of the City Assessor
b. Office of the Provincial Assessor
c. Office of the Municipal Assessor
d. Office of the District Assessor
138. The National Assembly of 1939 enacted the:
a. Commonwealth Act No. 470
b. Administrative Code of 1916
c. Act No. 3995 `
d. None of the Above
139. During Martial Law, sweeping reforms on real property taxation were introduced through:
a. PD 25 and 76
b. PD 25 and 26
c. PD 75 and 76
d. None of the Above
140. This Code became the basis of the Real Property Tax Administration System in the Philippines in 1974.
a. Real Property Tax Code
b. Valuers Code
c. Real Property Code
d. Tax Code
141. The Office of the Municipal Assessor was created in:
a. 1976
b. 1978
c. 1977
d. 1979
142. PD 464, as amended, was recognized under the:
a. Local Government Code of 1983
b. Local Government Code of 1985
c. Local Government Code of 1984
d. Local Government Code of 1986
143. The 1987 Constitution paved the way for the Local Government Code of 1991 which refers to:
a. RA 7160
b. RA 6425
c. RA 7835
d. RA 7279
144. In 2001, the Land Administration and Management Program, Phase I (LAMP 1), a 15 – 20 year commitment of the Philippine
Government was launched. This was aimed at, but not:
a. poverty alleviation
b. economic growth
c. equitable real property valuation
d. assessment and taxation
145. On October 13, 2009, Executive Order No. 833 this office was created for purposes of sustaining and instituting real property valuation
reforms
a. Property Valuation Office
b. Philippine Valuation Office
c. Real Property Valuation Office
d. Philippine Property Valuation office
146. DOF Department Order No. 37-09 prescribed the Philippine Valuation Standards (1st Edition) – Adoption of the IVSC Valuation
Standards under Philippine Setting, on:
a. September 19, 2009
b. November 19, 2009
c. October 19, 2009
d. December 19, 2009
147. The filing of sworn declaration of the true value of property in the assessor, by the owner or administrator is required under Section 202
of the Local Government Code:
a. once every three years
b. once every two years
c. once every 5 years
d. once every 10 years
148. Such filing of the declaration is supposed to coincide with the once every three years conduct of the general revision of:
a. real property assessments
b. real property appraisal
c. real property taxation
d. real property valuation
149. The Local Government Code requires the person acquiring at any time real property or making any improvement on real property
belonging to him, to prepare and submit to the assessor, a sworn statement declaring the true value of the property:
a. within 30 days after the acquisition of such property or the completion of the improvements made
b. within 60 days after the acquisition of such property or the completion of the improvements made
c. within 90 days after the acquisition of such property or the completion of the improvements made
d. within 120 days after the acquisition of such property or the completion of the improvements made
150. The deputized Examiners shall perform the following activities except:
a. Review of pertinent records of the business establishment to be examined
b. Review of the working papers, if any, of the business establishment, if previously examined
c. Submission to the Owner/President of the business establishment to be examined the Letter of Appointment/Authority to conduct
the examination
d. Acceptance of books of accounts and documents for verification/examination
e. Preparation of Bank Reconciliation Statements
151. Declaring newly acquired, newly built, or newly transferred real property is required under the following conditions, but not:
a. The property may be assessed at the proper time and avoid on the part of the property owner the accumulation of back taxes.
b. Real property records may be updated to indicate present ownership
 c. Real property records may be amended, corrected, or updated to accordingly reflect the changes in the condition, classification,
taxability, or other variations made on the property.
d. Real property records may be revised to indicate previous ownership
152. Declaring newly acquired, newly built, or newly transferred real property is required under the following conditions, but not:
a. Demolition of buildings or other structures
b. Dismantling and cessation of operation of machinery
c. Change in classification and or Correction in area
d. Conversion of presently taxable properties to exempt
153. All assessors are required to prepare and maintain an assessment roll wherein all taxable real property located within their areas of
jurisdiction shall be:
a. listed
b. assessed
c. taken
d. transferred
154. A copy of the assessment roll must be transmitted to their respective local treasurers; except in cases where the assessors’ records are
computerized and the same are directly and operationally connected to the Treasurers’ Offices in the form of:
a. assessment network system
b. local area networking or LAN.
c. city network system
d. municipal network system
155. For purposes of recording and maintaining statistical data, a separate roll shall be prepared for:
a. exempt properties.
b. taxable properties
c. assessed properties
d. listed properties
156. The four (4) most important elements of the assessment process are the following, except:
a. Classification, Actual use, Assessed Value, Assessment Levels
b. Assessment levels, Actual Use, Assessment Levels, Tax rate
c. Assessed value, Classification, Tax Rate, Actual Use
d. Assessed value, Classification, Tax Rate, Assessment Levels
157. Classification of real property provides for the foundation of equity and uniformity in realty:
a. Assessment
b. Valuation
c. Taxation
d. Classification
158. Taxes are imposed uniformly upon the same classes of property within the territorial jurisdictions of local government units:
a. levying the tax
b. determining the tax
c. identifying the property
d. classifying the tax
159. The basis for the assessment of real property in the Philippines, regardless of where the property is located, whoever owns it, and
whoever uses it.
a. Classifying the property
b. Actual Use of the property
c. Assessing the property
d. Assessment Levels
160. Assessment levels are fixed on the basis of:
a. Actual use of the property
b. Assessing the property
c. Classifying the property
d. Assessment Levels
161. The assessed or taxable value is the basis for the computation of the:
a. Assessed Value
b. Realty tax
c. Assessed levels
d. Tax Due
162. Under local government code, the local government/sanggunian can set the assessment levels which can be prescribed through
ordinance at:
a. Minimum rates
b. Standard rates
c. Maximum rates
d. regular rates
163. The local government/sanggunian can increase or decrease assessment levels, provided that the rates shall not exceed the rates
prescribed by the code and that such increase or decrease of the assessment levels shall not be made effective between:
a. Standard Revisions
b. General Revisions
c. Regular Revisions
d. None of the above
164. The value multiplied by the tax rate equals the tax due from the real property is the:
a. Market Value
b. Appraised Value
c. Tax Due
d. Assessed Value
165. Classification or grouping real property for taxation purposes provides mechanisms for uniformity which is fundamental requirement in:
a. Taxation
b. Assessment
c. Valuation
d. Appraisal
166. Real property shall be appraised at its current and fair market value based on the duly approved or enacted
 a. Assessment Roll
b. Schedule of Fair Market Values
c. Assessment Levels
d. Classification of Real Properties
167. The proceeds of the basic real property tax, including interest thereon, and proceeds from the use, lease or disposition, sale or
redemption of property acquired by public auction by the city shall be distributed accordingly. At what percentage of the proceeds will
accrue to the General Fund of the city?
a. 30%
b. 70%
c. 40%
d. 50%
e. 25%
168. The proceeds of the basic real property tax, including interest thereon, and proceeds from the use, lease or disposition, sale or
redemption of property acquired by public auction by the province shall be distributed accordingly. At what percentage of the proceeds
will accrue to the barangay where the property is located or equally to all component barangays of the city?
a. 30%
b. 70%
c. 40%
d. 50%
e. 25%
169. Liquidation of the cash advance for Petty Operating Expenses shall be supported by the following reports and documents except:
a. Report of Disbursements
b. Approved Requisition and Issue Voucher with the Certificate of Emergency Purchase, if necessary
c. Receipts, Sales Invoices
d. Certificate of Acceptance/Inspection
e. Canvass of at least 3 suppliers
170. Examples of the use of intelligence and/or confidential expenses are as follows except:
a. Purchase of information relevant to security and peace and order.
b. Payment of allowances for special security personnel.
c. Payment of rewards.
d. Rentals and other incidental expenses related to the maintenance of safe houses.
e. Purchase of supplies, materials and equipment necessary for intelligence and confidential operations and/or projects.
171. The annual appropriations for discretionary purposes of the local chief executive shall not exceed at what percentage of the actual
receipts derived from basic real property tax in the next preceding calendar year.
a. 3
b. 2
c. 5
d. 10
e. None of the above
172. An act providing for the recognition and use of electronic commercial and non-commercial transactions, penalties for unlawful use
thereof, and other purposes.
a. R.A. No. 7160
b. R.A. No. 6657
c. R.A. No. 6810
d. R.A. No. 8792
e. R.A. No. 7279
173. An act instituting a comprehensive agrarian reform program to promote social justice and industrialization providing the mechanism for
its implementation and for other purposes.
a. R. A. No. 7160
b. R. A. No. 6657
c. R. A. No. 6810
d. R. A. No. 8792
e. R. A. No. 7279
174. The basic real property tax and any other tax levied under Title 2, Book II of R. A. No. 7160 shall, from the date they become due, be
collected within:
a. 5 years
b. 7 years
c. 10 years
d. 15 years
e. 20 years
175. The proceeds of the basic real property tax, including interest thereon, and proceeds from the use, lease or disposition, sale or
redemption of property acquired by public auction by the province shall be distributed accordingly. At what percentage of the proceeds
shall be distributed among the component barangays of the cities where the property is located?
a. 30%
b. 70%
c. 40%
d. 50%
e. 25%
176. Under R. A. No. 7160, failure to post and publish the itemized monthly collections and disbursements of the LGU within the prescribed
period shall be punished by:
a. A fine not exceeding Php 500.00 or by imprisonment not exceeding 1 month or both
b. A fine between Php 1,000.00 – Php 5,000.00 or by imprisonment between 1 – 6 months or both
c. A fine between Php 200.00 – Php 10,000.00 or penalty of prision correccional in its minimum period or both
d. Sufficient ground for administrative disciplinary action against the officials and employees involved
e. Automatic dismissal from the service after due notice and hearing
177. Under the Revised Penal Code, frauds against the public treasury and similar offenses by a public officer, such as (1) Demanding,
directly or indirectly, the payment of sums different from or larger than those authorized by law, (2) Failing voluntarily to issue a receipt,
as provided by law, for any sum of money collected by him officially, (3) Collecting or receiving, directly or indirectly, by way of payment
or otherwise, things or objects of nature different from that provided by law, shall be punished by:
 a. A fine not exceeding Php 500.00 or by imprisonment not exceeding 1 month or both
b. A fine between Php 1,000.00 – Php 5,000.00 or by imprisonment between 1 – 6 months or both
c. A fine between Php 200.00 – Php 10,000.00 or penalty of prision correccional in its minimum period or both
d. Sufficient ground for administrative disciplinary action against the officials and employees involved
e. Automatic dismissal from the service after due notice and hearing
178. Under R. A. No. 7160 and without prejudice to criminal prosecution under the Revised Penal Code and other applicable laws, any Local
Treasurer who fails to issue or execute the warrant of distraint or levy after the expiration of the time prescribed, or who is found guilty
of abusing the exercise thereof by competent authority shall be punished by:
a. A fine not exceeding Php 500.00 or by imprisonment not exceeding 1 month or both
b. A fine between Php 1,000.00 – Php 5,000.00 or by imprisonment between 1 – 6 months or both
c. A fine between Php 200.00 – Php 10,000.00 or penalty of prision correccional in its minimum period or both
d. Sufficient ground for administrative disciplinary action against the officials and employees involved
e. Automatic dismissal from the service after due notice and hearing
179. Under R. A. No. 7160, the enforcement of any tax ordinance or revenue measure after due notice of the disapproval or suspension
thereof shall be:
a. A fine not exceeding Php 500.00 or by imprisonment not exceeding 1 month or both
b. A fine between Php 1,000.00 – Php 5,000.00 or by imprisonment between 1 – 6 months or both
c. A fine between Php 200.00 – Php 10,000.00 or penalty of prision correccional in its minimum period or both
d. Sufficient ground for administrative disciplinary action against the officials and employees involved
e. Automatic dismissal from the service after due notice and hearing
180. The Barangay Kagawad who is designated as Chairman of the Committee on Appropriation shall be responsible in monitoring the
approved appropriations and the charges against the following funds except:
a. 20% Development Fund
b. Calamity Fund
c. Sangguniang Kabataan Fund
d. The Local Budget
e. Gender and Development Fund
181. The following are classified as Personal Services except:
a. Salaries and Wages (Regular)
b. Salaries and Wages (Contractual)
c. Special allowances
d. Honoraria
e. Cash Gift
182. The frequency of which the Barangay Treasurer shall record all the checks issued in the Summary of Checks Issued.
a. Daily
b. Weekly
c. At the end of the month
d. On or before the 5th day of the following month
e. None of the above
183. The frequency of which the Barangay Record Keeper shall record check disbursement based on the certified Summary of Checks
Issued in the Check Disbursement Register.
a. Daily
b. Weekly
c. At the end of the month
d. On or before the 5th day of the following month
e. None of the above
184. The schedule of which the Barangay Record Keeper shall submit the Check Disbursement Register together with the Summary of
Check Issued to the City/Municipal Accountant for recording of the checks issued in the books.
a. Daily
b. Weekly
c. At the end of the month
d. On or before the 5th day of the following month
e. None of the above
185. The schedule for which the Check Disbursement Register shall be totaled, balanced, ruled recapitulated and certified.
a. Daily
b. Weekly
c. At the end of the month
d. On or before the 5th day of the following month
e. None of the above
186. The barangay Disbursement Voucher in 4 copies shall be distributed to the following except:
a. Local Auditor concerned
b. City/Municipal Accountant
c. Attached to the city/municipal Disbursement Voucher
d. Barangay Treasurer
e. Punong Barangay
187. The cash advance for payroll charged against Barangay Funds maintained by depository bank shall be liquidated.
a. Within 3 days after the end of the pay period
b. Within 5 days after the end of the pay period
c. Upon demand by the Barangay Treasurer
d. Upon full release of the amount to intended recipients
e. Within 15 days after the end of the pay period
188. At what percentage of the General Fund of the barangay shall the budget for the Sangguniang Kabataan be?
a. 10%
b. 3%
c. 20%
d. 5%
e. None of the above
189. Sanggunian Kabataan budgeting is the same as that of the other LGUs. The major phases are the following except:
a. Budget Preparation
 b. Budget Authorization
c. Budget Review and Execution
d. Budget Accountability and Reporting
e. None of the above
190. A pleasurable diversion and entertainment. It is synonymous to relaxation, avocation, pastime, or fun.
a. Amusement Places
b. Agricultural Product
c. Business taxes
d. Business
e. Amusement
191. These include theaters, cinemas, concert halls, circuses and other places of amusement where one seeks admission to entertain
oneself by seeing or viewing the show or performance.
a. Amusement Places
b. Agricultural Product
c. Business taxes
d. Business
e. Amusement
192. It means trade or commercial activity regularly engaged in as a means of livelihood or with a view to profit.
a. Amusement Places
b. Agricultural Product
c. Business taxes
d. Business
e. Amusement
193. It include non-bank financial intermediaries, lending investors, finance and investment companies, pawnshops, money shops,
insurance companies, stock markets, stock brokers and dealers in securities and foreign exchange, as defined under applicable law, or
rules and regulations thereunder.
a. Central Bank
b. Credit card companies
c. Banks and other financial institutions
d. Financial service providers
e. Banking investments
194. It is the capital which a person employs in any undertaking, or which he contributes to the capital of a partnership, corporation, or any
other juridical entity or association in a particular taxing jurisdiction.
a. Corporation
b. Capital Investment
c. Contractor
d. Countryside and Barangay Business Enterprise
e. Charges
195. These refer to pecuniary liability, as rents or fees against persons or property.
a. Corporation
b. Capital Investment
c. Contractor
d. Countryside and Barangay Business Enterprise
e. Charges
196. They refer to every natural or juridical being, susceptible of rights and obligations or of being the subject of legal relations.
a. Residents
b. Peddler
c. Persons
d. Operator
e. Civilian
197. It refer to natural persons who have their habitual residence in the province, city, or municipality where they exercise their civil rights
and fulfill their civil obligations, and to juridical persons for which the law or any other provisions creating or recognizing them fixes their
residence in a particular province, city or municipality.
a. Residents
b. Peddler
c. Persons
d. Operator
e. Civilian
198. It means a sale where the purchaser buys the commodity for his own consumption irrespective of the quantity of the commodity sold.
a. Wharfage
b. Wholesale
c. Retail
d. Vessel
e. Operator
199. After service of the Warrant of Levy, the Local Treasurer shall proceed to publicly advertise for sale or auction the property or a usable
portion thereof as may be necessary to satisfy the tax delinquency and expenses of sale which shall be effected by the issuance of a
Notice of Sale and the posting and publication thereof, within:
a. 3 days
b. 5 days
c. 10 days
d. 15 days
e. 30 days
200. It is issued by the Local Treasurer concerned, together with the official receipt and tax clearance which shall in effect extinguish the
tax lien on the property if the owner of the real property or person having legal interest therein pays the delinquent tax, the interest due
thereon and the expenses of sale before the date fixed for the sale.
a. Certificate of Release
b. Proof of Service
c. Warrant of Levy
d. Certificate of Redemption
 e. Certificate of Sale
201. It is issued by the Local Treasurer to the purchaser containing the name of the purchaser, a description of the property sold, the
amount of the delinquent tax, the interest due thereon, the expenses of sale and brief description of the proceedings.
a. Certificate of Release
b. Proof of Service
c. Warrant of Levy
d. Certificate of Redemption
e. Certificate of Sale
202. It is issued by the Local Treasurer to the owner of the delinquent real property or person having legal interest therein invalidating the
Certificate of Sale issued to the purchaser if he pays the amount of the delinquent tax, including the interest due thereon and the
expenses of the sale plus interest of 2% per month within one year from date of sale.
a. Certificate of Release
b. Proof of Service
c. Warrant of Levy
d. Certificate of Redemption
e. Certificate of Sale
203. Real property shall be assessed on the basis of a:
a. general classification within each local government unit
b. uniform classification within each local government unit
c. standard classification within each local government unit
d. regular classification within each local government unit
204. What is Local Treasury Operation Form 90?
a. Certified List of All Real Property Tax Delinquency
b. Warrant of Levy
c. Notice of Levy
d. Certificate of Sale of Delinquent Property
205. What is Local Treasury Operation Form 96?
a. Certified List of All Real Property Tax Delinquency
b. Warrant of Levy
c. Notice of Levy
d. Certificate of Sale of Delinquent Property
206. What is Local Treasury Operation Form 93?
a. Certified List of All Real Property Tax Delinquency
b. Warrant of Levy
c. Notice of Levy
d. Certificate of Sale of Delinquent Property
207. Compute the total annual realty tax due for the following given data.
Lot area : 270 sqm
FMV : P1,500.00
Classification : Agricultural
Location : Province
a. P3,240.00 (270×1.5K)40%x2%
b. P1,620.00 q
c. P4,860.00
d. P8,100.00
e. NOTA
208. Compute the basic real property tax of the lot owned by the private school located at province with an assessed value of P3,500,000.00
a. P0
b. P35,000.00
c. P70,000.00
d. P5,100.00
e. NOTA
209. Compute the franchise tax for the newly started business with a capital investment of P3,500,000.00.
a. P1,750.00 (3.5M×0.05%)
b. P17,500.00
c. P0
d. P1,570.00
e. NOTA
210. Compute the business tax for printing and publication located in the city with an annual gross receipts of P1,600,000.00.
a. P12,000.00 (1.6M×0.75%)
b. P8,000.00
c. P800.00
d. P1,200.00
e. NOTA
211. Before giving a demonstration you should;
a. summarize the lesson and emphasize the key points.
b. have a last practice so that you will be more confident.
c. position yourself so that everybody can see you.
212. When checking on the team members or I/Cs, make sure that;
a. they follow your guidelines and are able to meet the expectations.
b. they follow your methods exactly.
c. their plans must fit your style of working.
213. Why is it advisable to get demonstrators for your lessons?
a. Because if anything goes wrong you can inform them.
b. To avoid having all the trainees looking at you.
c. So that you can concentrate on your explanation.
214. You may maintain less eye contact with audiences who are;
a. very interested in your presentation.
b. not showing interest and are distracting to you.
 c. listening to you for the first time.
215. What is verbal impact?
a. It is the words and sentence constructions used in your speech.
b. It is the loudness and clarity of your speech.
c. It is your body improvement and posture.
216. Leadership may be defined as;
a. the ability to motivate people to work towards a common goal.
b. the ability to command people to work towards a common goal
c. the ability to discipline people
217. Good communication skills and motivation techniques;
a. are the foundation of leadership.
b. will earn you respect from people.
c. are helpful to your leadership.
218. A leader should not;
a. be confident.
b. magnify his achievement.
c. receive encouragement.
219. Eye contact with your audiences is important because;
a. it tells them that you are interested in them.
b. it makes them afraid and listen to you.
c. it is impolite to have your eyes wonder; around.
220. It is good to be creative in your planning but;
a. do not break the traditions.
b. focus on your objectives.
c. you must execute the details personally so that they will be what you want.
221. Effective up-front speaking;
a. will improve the commitment of your people.
b. helps you to capture the interest and comprehension of your audiences.
c. makes your plans successful.
222. The first step in designing your plans is;
a. study your resources and limitations.
b. define your objectives.
c. design the action plans.
223. A leader must know how to lead because;
a. this will keep his team motivated and effective by meeting their objectives.
b. without challenges, people will feel bored.
c. this is how leadership potential can be measured.
224. Your boss made a bad decision. Do you advise your boss, or just do what you are told ?
a. Advise your boss
b. Just do what you are told
c. Resign, find another job
d. None of these
225. You find out something illegal is going on in your operation, do you blow the whistle, or say nothing?
a. Say nothing
b. Resign, find another job
c. Blow the whistle
d. None of these
226. Someone who has more skills than you in your own area is looking to join the company, do you push them out, or bring them on?
a. Push them out
b. Bring them on
c. Resign, find another job
d. None of these
227. Someone has been wrongfully terminated, do you take a stand and say something, or say nothing and save your job?
a. Take a stand and say something
b. Say nothing and save your job
c. Resign, find another job
d. Simply start find another job
228. As a team leader, what can you do to encourage leadership potential in your fellow Guiders?
a. Take time to plan when you can all meet together.
b. Make sure that each leader has the necessary books and resources.
c. Encourage new leaders to use their own talents and skills to enrich your program.
d. All the above
229. You don’t like someone in another department, do you make their life miserable, or try to ease the pain?
a. Make their life miserable
b. Try to ease the pain
c. Resign, find another job
d. Simply start find another job
230. What are 2 practical ways that you can teach and practice leadership skills with girls?
a. Include the girls in planning
b. For Pathfinders and Senior Branch Members, give them the freedom to plan and carry out their own ideas. Be there to support,
encourage and assist when needed.
c. Assign regular duties for each patrol. If one patrol is responsible for Campfire, then make sure there are resources to use, such as
song books, a book of readings, campfire games, a file of songs the girls know, a Guider to assist if needed.
d. All the above
231. INVENTION is to PIRACY as WRITING is to.
a. printing
b. Breach
c. Copyright
d. reproduction
 e. Plagiarism
232. EXPORT is to WREST as CONSPIRE is to.
a. plot
b. Climinate
c. Entice
d. deduce
e. Astonish
233. FROWN is to SMILE as CONTINUE is to.
a. lengthen
b. deviate
c. Prolong
d. rest
e. Terminate
234. FLOWING is to AERATION as HARROWING is to.
a. germination
b. oisturization
c. Seeding
d. crop rotation
e. Dissemination
235. BACKWARD is to FORWARD as ANCESTRY is to.
a. origin
b. Lineage
c. Prototype
d. progency
e. Heritage
236. ADMONISH is to ADVISE as to INTIMIDATE is to.
a. insult
b. Flatter
c. Forgive
d. threaten
e. Befriend
237. JEALOUSY is to SUSPICION as TRUST is to.
a. envy
b. Courage
c. Deceit
d. confidence
e. Unworthiness
238. OCCUPY is to ABANDON as SEIZE is to.
a. cherish
b. Invade
c. Reach
d. release
e. Clasp
239. ETYMOLOGY is to WORD as LINEAGE is to.
a. descendant
b. Description
c. Letter
d. formation
e. Structure
240. DISMAL is to GLOOMY as ENTHUSLASTIC is to.
a. eager
b. Effective
c. Indifferent
d. dull
e. Talkative
241. FARE is to ABILITY as EMINENECE is to.
a. Ancestry
b. Rank
c. Income
d. Religion
e. Nationality
242. JOVIAL is to EHILLOW as ALIANCE is
a. Intramural
b. League
c. Game
d. School
e. Symbol
243. RESCUE is to GRANT as RECART is to.
a. Memory
b. Judgement
c. Belief
d. decision
e. Suspicion
244. SYNONYM is to MEANING as HOMONYM is to.
a. Origin
b. Usage
c. Sound
d. Tense
e. Syllable
245. COPIOUS is to AMOUNT as SPACIOUS is to.
a. extent
b. Mass
c. Quality
d. Motion
e. Speed
246. ALLEGIANCE is to LOYALTY as TREASON is to.
a. Rebellion
b. War
c. Obedience
d. disconnect
e. Nationalism
247. ATLAS is to MARS as ANTHOLOGY is to .
a. Letters
b. Stories
c. Stamps
d. Picture
e. Insects
248. NATURE is to MURTURE as HEREDITY is to .
a. genetics
b. Health
c. Succession
d. environment
e. Evolution
249. DETERIORATION is to OBJECTS as ATROPHY is to .
a. cars
b. Organs
c. Styles
d. devices
e. Furniture
250. FROWN is to SMILE as STRENGTH is to .
a. rest
b. Terminate
c. Lengthen
d. Deviate
e. Prolong

SET A: Fundamentals of Real Estate Appraisal 200 Questions – 4 hours)

251. Real property consists of

a. Rights in realty
b. Land and all improvements thereon
c. The right to use or occupy real estate
d. Single-family residences
252. A duly registered and licensed natural person who works in a local government unit and performs appraisal and assessment of real estate
properties, including plants, equipment, and machineries, essentially for taxation purposes.
a. Real estate appraiser
b. real estate assessor
c. Real estate consultant
d. real estate salesperson
e. Real estate broker
253. Julita Cruz owns a vacation home near a small town almost 1 kilometers from the city in which she lives and works. She doesn’t use her vacation
house more than three weeks every year. The last time she stayed there, she noticed that a gas station had been built a few hundred yards down the
road. After talking to the owner, she discovered that a zoning change had been put into effect to allow construction of a new shopping center on land
adjacent to the gas station. While Ms. Cruz’s property was not rezoned, she realizes that it won’t be suitable as a vacation retreat once the shopping
center is built. Which basic value principle(s) does the foregoing case illustrate?
a. Highest and best use (HABU)
b. conformity
c. change
d. all of the above
254. Which of the following is not a part of the market value definition?
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
255. Gentrification is
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
256. The following are restrictions of property rights except
a. Zoning
b. taxation
c. Escrow
d. escheat
257. The addition to the land through processes of nature, such as deposits of soil carried by streams.
a. avulsion
b. alluvium
c. accretion
d. usufruct
258. A duly registered and licensed natural person who, for a professional fee, compensation or other valuable consideration, offers or renders
professional advice and judgment on: (i) the acquisition, enhancement, preservation, utilization or disposition of lands or improvements thereon; and
(ii) the conception, planning, management and development of real estate projects.
 a. Real estate appraiser
b. real estate assessor
c. Real estate consultant
d. real estate salesperson
e. Real estate broker
259. Which of the following courses would benefit a professional appraiser?
a. real estate finance, land use planning, real estate law
b. urban sociology, demographics, information systems
c. All of the above
d. One of the above
260. The four agents of production are
a. Land, labor, capital, improvements
b. Land, improvements, labor, materials
c. Land, labor, capital, entrepreneurship
d. Land, labor, capital, money
261. Linkages are
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
262. 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
a. Legitime
b. intestate
c. Succession
d. heir
e. testate
263. The highest form of real property ownership is
a. homestead estate
b. leasehold estate
c. fee simple
d. life estate
264. A duly registered and licensed natural person who, for a professional fee, compensation or other valuable consideration, performs or renders, or
offers to perform services in estimating and arriving at an opinion of or acts as an expert on real estate values, such services of which shall be finally
rendered by the preparation of the report in acceptable written form.
a. Real estate appraiser
b. real estate assessor
c. Real estate consultant
d. real estate salesperson
e. Real estate broker
265. What term is used to describe a study of the cost -benefit relationship of an economic endeavor?
a. Investment analysis
b. Feasibility analysis
c. Cash flow analysis
d. Market analysis
266. Investment value is best measured by
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
267. The scientific study of population statistics is
a. scientography
b. segmentation
c. demography
d. forecasting
268. The best evidence of ownership is
a. Tax declaration
b. Vicinity map
c. Torrens title
d. None of the above
e. Technical description
269. Real property includes
a. Any and all buildings on the subject site
b. All interests, benefits, and rights inherent in the ownership of real estate
c. The physical land and appurtenances affixed to the land
d. Property that is not artificial
270. In corporate practice of real estate service, there shall be at one license real estate broker for every
a. 25 accredited salesperson
b. 35 accredited salesperson
c. 20 accredited salesperson
d. 40 accredited salesperson
e. 30 accredited salesperson
271. An appraisal may include a(n)
a. property description
b. opinion of value
c. estimate of market value
d. all of the above
272. The value most commonly sought in real estate appraisals is
a. Investment value
b. Insurable value
c. Value in use
d. Market value
273. What form of diffusion is represented by the spread of Shoe Mart (SM)?
a. cascade.
b. relocation
c. reverse hierarchical
d. stimulus
274. Immovable or real property in favor of the easement
a. servient estate
b. fixture
c. dominant estate
d. legitime
e. land estate
275. What are the considerations in determining whether something attached to real property is a fixture?
a. method by which the item is attached; adaptability of the item for the land’s ordinary use
b. relationship of the parties; intention of the person in placing the item in the land; agreement of the parties
c. both a and b
d. none of the above
276. What is PRBRES
a. Philippine regulating board of real estate service
b. Philippine regulation board of real estate service
c. Philippine regulatory board of real estate service
d. Philippine regulatory board of real estate salesperson
277. The statement “property values are created and sustained when the characteristics of a property conform to the demand of its market" refers to
a. Use value
b. Conformity
c. Contribution
d. Supply and demand analysis
278. The value of improved residential real estate is most influenced by
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
279. Countries with a high rate of natural increase will also have a:
a. Long doubling time.
b. Negative population growth.
c. Short doubling time.
d. Inversed, pyramid-shaped population pyramid.
e. All of the above
280. Immovable or real property subjected to the easement
a. servient estate
b. fixture
c. dominant estate
d. legitime
e. land estate
281. Jackfruit that fall on the ground are
a. ordinarily real estate
b. both of the above
c. ordinarily personal property
d. none of the above
282. Who is the Chairperson of PRBRES
a. Edgardo Gutierrez Ong
b. Edmundo Gutierrez Ong
c. Eduardo Gutierrez Ong
d. Elpidio Gutierrez Ong
e. Ernesto Gutierrez Ong
283. The reliability of an appraisal depends on the
a. knowledge and judgment of the appraiser
b. accuracy of the data used
c. Both a and b.
d. Neither a nor b.
284. Synergy or Plottage is
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
285. The population of a country divided by its area determines its:
a. Birth/death rate
b. Population doubling time
c. Rate of natural increase
d. Gravity factor
e. Population density
286. Reversion of privately owned properties in favor of the state upon the death of the owner who is not survived by any heir
a. escheat
b. eminent domain
c. police power
d. taxation
e. zoning
287. Knowledge of land value is required for all of the following except
a. property taxation
b. fire insurance
c. a ground lease
d. a grazing lease
288. Who is the commissioner of PRC
a. Manansala
b. Soliman
c. Ong
d. Carpio
e. Samonte
289. When a property’s highest and best use is likely to change in the near future, the prevailing highest and best use is called
a. Pending use
b. Interim use
c. Temporary use
d. Alternative use
290. Real property has value because
a. It is nearby
b. It is desirable
c. It is popular
d. It provides future benefits
291. It is a kind of surveying in which photographs are used to determine configuration of land, man-made and natural features.
a. Hydrographic survey
b. Photogrammetry survey
c. Aerial survey
d. Cadastral survey
e. Relocation survey
292. Doctrine which reserves to the state the full ownership of all natural resources or natural wealth that may be found in the bowels of the earth.
a. public domain
b. regalian doctrine
c. resallicujos
d. stewardship principle
e. res alienate
293. Items that are built to be permanent and intended to be included with real property are
a. Trade fixtures
b. Personal property
c. Real estate
d. Chattel fixtures
294. Refers to any natural or juridical person engaged in the business of developing real estate development project for his/her own account and offering
them for sale
a. Real estate person
b. Real estate developer
c. Real estate development project
d. Real estate consultant
e. Real estate dealer
295. An appraisal of current market value is considered to be accurate for
a. 90 days
b. one year
c. until the property is sold
d. date of appraisal
296. When real property is sold by one person to another, the amount of money used to compensate the seller is called
a. The cost of the real property
b. The price of the real property
c. The value of the real property
d. The income of the real property
297. A single- family homeowner who builds a new and unique structure will commonly find that
a. The uniqueness will cause the market to like it and pay more for it
b. Properties that do not conform to the popular designs will sell for more
c. By definition, uniqueness means that fewer people will want to buy it
d. The market will pay as much for this property as any other because of its unique nature
298. When demand for housing increases, the supply
a. Increases immediately
b. Is unaffected
c. Increases slowly
d. Will diminish
299. Overproduction of new homes
a. Causes oversupply and lower prices
b. Causes increases in demand
c. Causes prices to increase
d. Causes the market to move toward a state of equilibrium
300. The city planning department indicated a vacant residential lot located in the flood zone cannot be given a building permit. This site
a. Has lost nearly all utility
b. Has lost all desirability
c. Has become scarce
d. Has lost any effective purchasing power
301. Buyers who paid installment of less than 2 years are also protected by the Maceda law and entitled to a grace period of___days from the added their
installment become due and demandable
a. 30 days
b. 15 days
c. 20 days
d. 25 days
e. 60 days
302. Under the Maceda law, how many times the can the buyers exercise his rights
a. once every 10 years
b. once every 3 years
c. once every 2 years
d. none of the aboved
e. once every 5 years
303. Real properties used for family homes or house and lot where the family resides
a. life estate
b. real estate
c. fee tail
d. remainder
e. homestead estate
304. Right of the state to enact laws and enforce them for the safety, order, health, morals and general welfare of the public
a. Escheat
b. eminent domain
c. police power
d. taxation
e. zoning
305. Power of the state to impose and collect taxes and other charges on real estate
a. Escheat
b. eminent domain
 c. police power
d. taxation
e. zoning
306. A deed should be recorded because
a. Recording gives public notice of the transaction and sets the priority
b. It is required by law
c. Title does not pass until the deed is recorded
d. Recording makes the deed a legal document
307. The sudden removal of land from one parcel to another when a body of water, such as a river, abruptly changes.
a. Avulsion
b. alluvium
c. Accretion
d. usufruct
308. The soil gradually deposited by the process of accretion, usually considered to belong to the owner of the land to which it is added.
a. avulsion
b. alluvium
c. accretion
d. usufruct
309. Land is unique because
a. No two parcels have the same soil composition
b. No two parcels have the same owners
c. No two parcels have the same tax levies
d. No two parcels can occup y the same space on the face of the earth
310. The supply of land is
a. Increasing all the time
b. Infinite
c. Established by the surveyors
d. Finite
311. Refers to an official in the local government unit, who performs appraisal and assessment of real properties, including plants, equipment and
machineries for taxation purposes.
a. Valuer
b. Local assessing operation officer
c. Appraiser
d. Tax Mapper
e. Assessor
312. Composition of the board of PRBRES
a. 1 chairperson and 3 members
b. 1 chairperson and 4 members
c. 1 chairperson and 2 members
d. 1 chairperson and 7 members
e. 1 chairperson and 5 members
313. Any violation of RA 9646, including violation of IRR shall meted the penalty of a fine of not less than______ or imprisonment of not less than______
upon discretion of the court
a. 100,000.00 and 6 months
b. 100,000.00 and 1 year
c. 50,000.00 and 2 years
d. 50,000.00 and 1 years
e. 100,000.00 and 2 years
314. In case the violation of RA 9646 and its IRR is committed by an unlicensed real estate service practitioner, the penalty shall be_______ the fine and
imprisonment for licensed violators
a. triple
b. double
c. fivefold
d. four-fold
e. one half
315. The realty service practice can be performed by juridical persons, except:
a. Real estate salesperson
b. Real estate consultant
c. Real estate broker
d. All of the above
e. Real estate appraiser
316. Appraisals are always used
a. To make residential mortgages
b. to settle lawsuits
c. To settle divorces
d. to solve problem that involve real estate values
317. 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). Similarsized, 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
a. Market value
b. use value
c. Investment value
d. value in transition
318. 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
a. Market value of the fee simple interest
b. Market value of the leased fee interest
c. Going-concern value
d. Value in use
319. A buyer invests in a small strip center because she believes the property will net P350,000 per year. This is an example of
a. Anticipation
b. Competition
c. Change
d. Substitution
320. To be considered the highest and best use, a use must be
a. Physically possible, legally permissible, appropriately justified, financially feasible, and maximally productive
 b. Physically correct and legally possible
c. In existence already and legal
d. Physically possible and appropriate
321. Market area life cycles include
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
322. Neighborhood social influences include all of the following except
a. Population density
b. Occupant age levels
c. Occupant skill levels
d. Vacancy rates
323. The economic base is
a. The lower line in a graph showing the economy of a community
b. The ratio of basic industries to technical Industries in a community
c. An inexpensive, large string instrument
d. The economic activity that enables it to attract income from outside the community’s borders
324. Economic influences include all of the following except
a. Occupant income levels
b. Property rent levels
c. Crime levels
d. Birth rate
325. Governmental influences include all of the following except
a. Tax burdens
b. Zoning, building, and housing codes
c. Special assessments
d. Changes in property use
326. Property owned by the state in its proprietary or private capacity which is not devoted to public use or public service and the development of national
wealth
a. public domain
b. regalian doctrine
c. resallicujos
d. stewardship principle
e. patrimonial property
327. Any and unknown deposit of money, precious object or jewelry the lawful ownership of which is unknown
a. yamashita treasure
b. alluvium
c. hidden treasure
d. minerals
e. accession
328. System of land registration by which the title is recorded becomes indefeasible, absolute and imprescriptible
a. Torres system
b. Tax declaration
c. Allen system
d. Bonds
e. Torrens system
329. In the absence of marriage settlements, or when the regime is void, what system shall govern?
a. co ownership
b. extra judicial
c. judicial settlement
d. capital property
e. absolute community of property
330. Exclusive property brought by the husband to the marriage as his own.
a. co ownership
b. extra judicial
c. judicial settlement
d. capital property
e. absolute community of property
331. Assets that are inextricably combined with others and that may include specialized buildings, machinery, and equipment.
a. Plant
b. Equipment
c. Machinery
d. Business asset
332. Individual machines or a collection of machines. A machine used for a specific process in connection with the operation of the entity.
a. Plant
b. Equipment
c. Machinery
d. Business asset
333. For assets in the public sector, the assumption equivalent to a business continuing as a going concern is that the public sector assets
a. Will continue to be used for the provision of the relevant public good or service.
b. Will cease to be used for the provision of the relevant public good or service.
c. Both of the above.
d. None of the above.
334. Plant for the supply of electricity, gas, heating, cooling or ventilation and equipment such as elevators
a. Should be reflected in the value of the real estate interest
b. Would not normally be reflected in the value of the real estate interest
c. Both of the above.
d. None of the above.
335. Plant and equipment are
a. Tangible assets
b. Both of the above.
c. Intangible assets
d. None of the above.
336. Conducts licensure examinations for the practice of the real estate service profession
a. Accredited and Integrated Professional Organization
b. Professional Regulatory Board of Real Estate Service
 c. Professional Regulation Commission
d. Philippine Association of Real Estate Practitioners
e. None of the above
337. A broker’s complaints for non-payments of commission by the developer shall be filed with:
a. HLURB
b. BTRCP
c. HUDCC
d. Regular Court
e. NHMFC
338. A licensed real estate practitioner is qualified to be appointed as member of the Professional Regulatory Board of Real Estate Service provided that
prior to his/her appointment, he/she has been an active licensed practitioner for at least:
a. Twenty years
b. Three years
c. Fifteen years
d. Ten years
e. Five years
339. To constitute negligence or failure to disclose or ascertain to any person with whom a broker is dealing relative to the property and within his/her
knowledge at the time of the transaction, what matters must the broker fail to disclose?
a. Previous owner of property or history of title
b. Fair market value of the property
c. Location, topography, and shape of property
d. Material fact, data or information
e. Whether property is updated in tax payments
340. The scope of brokerage are as follows, but not:
a. Authority to look for property
b. Engagement to look for a buyer
c. Procurement of insurance for properties secured by real estate
d. Procurement of loans secured by real estate
e. Procurement of tenants for rental properties
341. Two bookstores are located on the same city street, and both have had good business for ten years. One store is improved with new displays, better
lighting, computerized inventory control, and a snack bar. Because the store is part of a chain, remodeling costs are absorbed without general
increase in prices. The other bookstore begins losing customers. Which basic value principle(s) does the foregoing case illustrate?
a. competition
b. contribution
c. Both a and b.
d. None of the above.
342. The ratio of net operating income to effective gross income is the
a. operating expense ratio
b. net income ratio
c. effective gross income ratio
d. break-even ratio
343. The ratio of the operating expenses plus annual debt service to potential gross income is the
a. operating expense ratio
b. effective gross income ratio
c. net income ratio
d. break-even ratio
344. To arrive at net operating income, expenses are deducted from
a. operating profit
b. Effective gross income
c. gross income
d. None of these
345. In the formula for the operating expense ratio
a. operating expenses are divided by effective gross income
b. effective gross income is divided by operating expenses
c. potential gross income is divided by effective gross income
d. effective gross income is divided by potential gross income
346. The amount of entrepreneurial profit
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
347. Is the amount paid by the lessee of a house or flat fee of a commercial bldg.
a. economic rent
b. rental
c. interest
d. market price
e. lease
348. The revenue derived from the use of land and of the forces inherent to land
a. economic rent.
b. rental
c. interest
d. price
e. lease
349. It is the price of any commodity in its market at a specified time
a. economic rent
b. rental
c. interest
d. market price
e. lease
350. Functional utility depends on
a. zoning
b. age of equipment
c. wear and tear on the structure
d. insurance requirements
e. tastes and standards
351. Which of the following types of property is subject to ad valorem taxation?
a. property owned by a religious organization and used for a religious purpose
 b. new industrial plants that state and local governments have induced, with tax exemption as an incentive, to locate within their jurisdictions
c. commercial buildings leased in part by nonprofit foundations
d. state colleges and universities
e. provincial capitol
352. A person owning less than the entire bundle of rights has
a. escheat
b. personal property
c. a fee simple title
d. a fee tail
e. a partial interest
353. The right of an owner-lessor to receive the contract rent and reversion of the property at the end of the lease is called:
a. Fee simple
b. Net lease
c. Lease fee estate
d. None of the above
e. Leasehold
354. A legal provision which requires agreement for the sale of real estate to be in writing and subscribed to by the parties to be enforceable by action
a. Defeasance clause
b. Parole clause
c. Statute of Fraud
d. Enforceability clause
e. Evidentiary clause
355. Right of common dominion in which two or more persons have apiritual part of the property or thing which is not physically divided
a. co ownership
b. extra judicial
c. Paraphernal property
d. capital property
e. absolute community of property
356. A real estate market is
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
357. Real estate is
a. The rights in realty
b. The physical land and appurtenances affixed to the land
c. What transfers on the day of closing
d. The "bundle of rights"
358. The length of a tract of land along a street is called the land’s
a. depth
b. frontage
c. width
d. abutment
359. 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.
a. Fixture
b. domestic trade
c. Trade fixture
d. all of the above
360. A trade fixture:
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)
361. Any of these acts shall be grounds for revocation of license except:
a. Procurement of Certificate of Registration of real estate service practitioner by fraud or deceit
b. Unprofessional or unethical conduct
c. Allowing an unqualified person to practice the profession by using one’s certificate of registration
d. Non-payment of dues
e. Misleading ads
362. Under the Code of Ethics, the following is considered ethical:
a. Negotiate a property listed directly with the owner if the listing broker goes out of town for a few days and cannot be contacted
b. Cooperate with other brokers on property listed provided they are members of any national real estate broker’s association
c. Use the services of the salesperson of another broker provided the salesperson is paid the agreed upon commission
d. Willingly share with other brokers the lessons from his/her experience and study
363. The national integrated organization of natural persons duly registered and licensed as real estate service practitioner
a. Philippine association of real estate practitioner
b. Philippine realtors board
c. Philippine regulation commission
d. Philippine Institute of Real Estate Service Practitioners
e. All of the above
364. Any of these acts shall be ground for revocation of license except.
a. non payment of dues
b. engaging in the practice of the profession during the period of one’s suspension
c. unprofessional or unethical conduct
d. allowing an unqualified person to practice the profession by using one’s certificate of registration
365. What should be indicated by the broker in his letterhead, dry seal, sigh board, advertisement or other announcement in relation to real service
practice
a. price of the property
b. license number
c. address of the owner
d. house number
e. PTR number
366. Highest and best use analysis requires an estimate of the use as though vacant and as improved to
a. Estimate the value of the improvements
b. Ensure that appraisers recognize that the properly could be worth more without the buildings than with them
c. Estimate functional obsolescence caused by inappropriate improvements
 d. All of the above
367. The concept of consistent use requires an improvement to be valued based on a use that is consistent with the site’s highest and best use. This
means
a. The highest and best use of the site as though vacant must always consider the improvements thereon
b. The highest and best use as improved would always be consistent with the "as vacant" analysis
c. The improvement value must be adjusted down if the land’s highest and best use is different than the improved highest and best use
d. The vacant land value can never exceed the improved value
368. That factor where the property cannot be valued on the basis of one use for land and another use of improvements refers to
a. Principle of Consistent Use
b. HABU
c. Principle of Anticipation
d. Principle of Substitution
e. Principle of Contribution
369. Refers to the most profitable and likely use of the property at the time of appraisal. It refers to that which in all probability will yield the maximum
return at a given time. It is the first necessary consideration in studying a tract of land to estimate its value.
a. Principle of Supply and Demand
b. Principle of Contribution
c. Principle of Substitution
d. Principle of Anticipation
e. Principle of Highest and Best Use
370. The amount that maybe recovered when the property will be retired or disposed at a future time.
a. Salvage Value
b. Scrap Value
c. Market Value
d. Principle of Substitution
e. Principle of Anticipation
371. Demand for real estate may be affected by
a. Increasing population and employment
b. Increases in purchasing power
c. Availability of mortgage financing
d. All of the above
372. A less expensive house tends to gain in value because of more expensive neighborhood houses because of
a. Progression Principle
b. Both of the above.
c. Regression Principle
d. None of the above.
373. A good’s capacity to satisfy human desires or needs is known as
a. Creative demand
b. Functional obsolescence
c. Utility
d. Effective demand
374. Two homes in the same addition have the same amenities, size, features, and location. One is priced at P1,000,000 and the other is priced at
P1,100,000.
a. The lower-priced home will sell quickly.
b. The lower-priced home will attract more demand.
c. The lower-priced home will get more showings.
d. The lower-priced home will sell for the full list price.
375. In a high demand market, the cost of building a new property will increase substantially until
a. It becomes impossible for prices to go higher
b. The supply increases because new builders get into the market
c. The charges from suppliers and subcontractors go down
d. The BSP increases interest rates
376. Power of the state to take private property for public use upon payment of just compensation
a. Escheat
b. eminent domain
c. police power
d. taxation
e. zoning
377. Refers to the use of restrictions of a particular areas or delineation of allowable areas for use
a. escheat
b. eminent domain
c. police power
d. taxation
e. zoning
378. Under the Philippine Constitution, every property owners is bound to use or utilize their lands in a manner that will promote welfare and benefits not
only for themselves but also for the state
a. public domain
b. regalian doctrine
c. resallicujos
d. stewardship principle
e. res alienate
379. Owner of the property adjoining or abutting the bank of river
a. Avulsion
b. land owner
c. Accession
d. land lord
e. riparian owner
380. Exclusive property brought by the wife to the marriage as her own.
a. co ownership
b. extra judicial
c. Paraphernal property
d. capital property
e. absolute community of property
381. All of the following statements are true EXCEPT
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
382. What are the two categories of tangible property?
a. real property and personal property
b. intangible property and real property
c. real estate and intangible property
d. legal and illegal investments
e. open and shut transactions
383. Plant and Equipment are
a. tangible assets, other than realty
b. tangible assets, other than personalty
c. intangible assets, other than realty
d. intangible assets, other than personalty
384. Intangible assets that can have an impact on the value of plant and equipment include
a. production records
b. operating software
c. patents
d. All of the above.
385. The value of patterns and dies is often inextricably linked to
a. associated intellectual property rights
b. operating software
c. Both of the above.
d. None of the above.
386. Real estate broker must not encourage the following act in a sale transaction to help the client reduce cost
a. undervalue the amount in the deed of sale
b. pay to BIR where the property is located
c. pay the proper taxes on time
d. register immediately the sale with the ROD
e. pay the taxes on sale on time
387. The following acts are unethical except
a. delaying submission of formal offer that he had received from a prospective buyer in the hope of securing a higher offer
b. keeping a special bank account, separate and distinct from his own funds, for all monies received in trust for other persons such as
clients’ money and similar items
c. disclosing the client confidential personal information to a fellow broker in order to facilitate the sale of the client
d. encouraging the parties to a sale to indicate a consideration lower than the actual selling price
388. Renewal of professional id card of RESP
a. every year
b. every 4 years
c. every 2 years
d. every 5 years
e. every 3 years
389. Real estate broker is usually authorized to the following acts except
a. advertise the listing
b. look for the property
c. bind the principal in the contract
d. place for sale sign in the property
e. cooperate with other broker
390. Real estate practitioner may be appointed as member of the PRBRES provided that prior to his/her appointment, he/she has been active for at least
a. 5 years
b. 10 years
c. 20 years
d. 25 years
e. 15 years
391. One which states that the maximum value of a property tends to be set by the cost of purchasing an equally desirable and valuable replacement
property, as the basic principle that underlies the Market Data Approach of Sales Comparison,
a. Principle of Anticipation
b. Principle of Highest and Best Use
c. Principle of Substitution
d. Principle of Supply and Demand
e. Principle of Contribution
392. To be considered comparable to the subject property, a comparable must have been sold
a. in an arm’s-length transaction
b. for all cash
c. with a conventional mortgage
d. without any form of secondary financing
393. One method of compensating for sales that involved different terms of financing is use of the
a. financing readjustment grid
b. loan-to-value ratio
c. cash equivalency technique
d. operating statement ratio
394. Recent sales of comparable sites competitive with the subject site
a. Are the most reliable guide to the probable current market behavior and reactions of informed buyers .
b. Do not indicate any probable current market behavior and reaction of informed buyers.
c. Both a and b.
d. None of the above.
395. Site valuation techniques include
a. Sales comparison method; allocation method; abstraction method
b. Subdivision development method; ground rent capitalization; land residual method
c. both a and b
d. none of the above
396. Another term for developer’s profit is
a. contractor’s profit
b. surplus productivity
c. entrepreneurial profit
d. management profit
397. Depending on market practice, entrepreneurial profit can be estimated as percentage of
a. direct and indirect costs plus land value
 b. the value of the completed project
c. both a and b
d. none of the above
398. In economics, the four factors of production are
a. land, labor, capital, and improvements
b. land, labor, capital and entrepreneurship
c. land, labor, capital and money
d. land, improvements, labor and materials
e. land, labor, site, and improvements
399. Which of the following is NOT an agent of production?
a. land
b. capital
c. transportation
d. entrepreneurship
e. labor
400. Political forces affecting value may include
a. life-styles and living standards
b. topography
c. athletic levels and recreation facilities
d. government spending and taxation policy
e. primary registration and turnout
401. Real estate service practitioners consist of the following except
a. real estate sales person
b. real estate broker
c. real estate assessor
d. real estate dealer
e. real estate appraiser
402. The following are subjects in the real estate broker exam licensure exam except
a. property management
b. subdivision development
c. real estate laws and taxation
d. fundamentals of property ownership
e. code of ethics and responsibilities
403. Acts as agent of a party in a real estate transaction to offer, solicit, list, promotes. mediate, negotiate or effect the meeting of the minds on the sale,
purchase, exchange, mortgage, lease or joint venture or other similar transactions in real estate or any interest therein
a. real estate consultant
b. real estate broker
c. real estate appraiser
d. real estate sales person
e. real estate assessor
404. The board may reinstate any revoked certificate of registration
a. for reasons deemed proper and sufficient
b. upon application and compliance with the required CPE
c. after the expiration of 2 years from the date of revocation
d. none of the above
e. all of the above
405. Increase in value of real estate without any effort or expense of the owner
a. Avulsion
b. adhesion
c. Accession
d. erosion
406. Acquisition of alienable land of the public domain by homestead patent, free patent, sales patent, government awards
a. private grant
b. involuntary grant
c. inheritance
d. public grant
407. The process by which the current of the river is segregated from the estate a known portion and transfer it to another estate
a. Reclamation
b. avulsion
c. Accretion
d. alluvium
408. The four forces that influence real estate values are
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
409. Refers to prices or values of land adjacent to or “across the fence” from railroad, pipeline, highway or other corridor real estate .
a. buyer’s market
b. corner influence
c. across the fence value (atf)
d. property line
e. corner influence
410. Estimating market value requires identification of the desires and priorities of
a. Well-informed buyers and sellers
b. A typically informed purchaser
c. A fully informed seller
d. A typically informed seller
411. Market value is based on
a. insurable value
b. cost
c. most probable price
d. value in use
412. A single-family neighborhood is located adjacent to an airport. Excessive noise caused by airplanes flying overhead and the potential danger they
create have adversely affected the value of homes in the immediate area. Which basic value principle(s) does the foregoing case illustrate?
a. internalities
b. externalities
c. Both a and b.
 d. None of the above
413. A church in a residential area is an example of
a. police power
b. a nonconforming use
c. forecast absorption
d. a private restriction
414. A homeowner purchased two adjacent lots in a tract subdivision 20 years ago and built a single-unit residence entirely on one lot, utilizing the second
lot as a side yard. The homeowner has decided to build a smaller home on the vacant side lot and retain the existing home as a rental. What term
applies to the second yard?
a. Surplus land
b. Excess land
c. Vacant site
d. Underutilized site
415. The value of improved residential real estate is most influenced by
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
416. A legally nonconforming use is
a. A use that was legally established and maintained but no longer conforms to existing zoning
b. A use that was illegally established and maintained
c. A use that was not legally established and maintained and still does not conform to existing zoning
d. A use that was not legally established and maintained but the government is not enforcing the laws
417. The purpose of regulating the real estate service practitioners practice in the Philippines is to.
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
418. What will be the best tool for locating the next Jollibee fast food restaurant in a city?
a. GPS (Global Positioning System).
b. GIS (Geographic Information System).
c. Microsoft Word
d. Remote Sensing
419. The industry competition which arises from profits refers to
a. Principle of Change
b. Principle of Substitution
c. Principle of Conformity
d. Principle of Supply and Demand
e. Principle of Competition
420. The value of a property will reach to its maximum level when the factors of production are in balance
a. Principle of Balance
b. Principle of Substitution
c. Principle of Conformity
d. Principle of Anticipation
e. HABU
421. The principle of increase and decreasing returns applied to a portion or the whole of an improvement refers to
a. Principle of Anticipation
b. Principle of Contribution
c. Principle of Conformity
d. Principle of Substitution
e. HABU
422. The net income remaining after the cost of labor, capital and coordination have been paid refers to
a. HABU
b. Principle of Substitution
c. Principle of Anticipation
d. Principle of Surplus Productivity
e. Principle of Conformity
423. The result of reasonable degree of architectural homogeneity and compatible land uses brought about by market attitudes, societal trends, economic
conditions and public policy refers to
a. HABU
b. Principle of Substitution
c. Principle of Conformity
d. Principle of Anticipation
e. Principle of Utility
424. The meeting of desires and requirements of human beings. It is not only the capacity to give satisfaction in use but also the power to excite desire
for continued possession refers to
a. HABU
b. Principle of Substitution
c. Principle of Conformity
d. Principle of Anticipation
e. Principle of Utility
425. The factor where the value is increased if supply is reduced by effective demand, resulting in scarcity refers to
a. Principle of Anticipation
b. HABU
c. Principle of Supply and Demand
d. Principle of Consistent Use
e. Principle of Contribution
426. Is the fair market value of the land in a specific zone or area as established by the BIR.
a. Salvage Value
b. Scrap Value
c. Market Value
d. Zonal Value
e. Principle of Contribution
427. Barricade around the construction site is a building
a. direct cost
b. overhead expense
c. indirect cost
 d. incidental expense
428. The cost of improvements identical in design and material to those of the subject property is called the subject’s
a. reproduction cost
b. sales price
c. replacement cost
d. market value
429. The cost of improvements identical in utility to those of the subject property is called the subject’s
a. reproduction cost
b. sales price
c. replacement cost
d. market value
430. In using the cost approach to appraising, the estimated construction cost of improvements usually will be based on
a. their original cost
b. the cost of new improvements at current prices
c. book value
d. the national cost average of all components
431. The index method of estimating construction cost is based on
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
432. The predominant depreciation category for a residential location on heavily traveled national highway is
a. Physical deterioration—curable
b. Physical deterioration—long-lived incurable
c. Functional obsolescence—curable
d. External obsolescence—incurable
433. The predominant depreciation category for severe termite damage throughout a structure
a. Physical deterioration—curable
b. Physical deterioration—long-lived incurable
c. Functional obsolescence—curable
d. External obsolescence—incurable
434. The ratio of total operating expenses to effective gross income is the
a. operating expense ratio
b. net income ratio
c. effective gross income ratio
d. break-even ratio
435. In the formula for the net income ratio
a. effective gross income is divided by potential gross income
b. potential gross income is divided by effective gross income
c. effective gross income is divided by net operating income
d. net operating income is divided by effective gross income
436. The data needed for an appraisal by the income approach using direct capitalization are
a. the potential gross income from the property, which includes the annual income from all sources; the amount of the expected annual effective
gross income from the property, estimated by subtracting anticipated vacancy and collection losses from potential gross income;
b. net operating income, found by deducting normal annual operating and other expenses from the effective gross income; the capitalization rate
for the property; that is, the rate that can be applied to the property’s net annual income, the result being the appraiser’s estimate of the
property’s value;
c. both a and b
d. none of the above
437. While working on an appraisal of a residential property in a new home subdivision, the appraiser finds that the builders have a total of 100 home sites
currently offered for sale. In measuring market demand the appraiser notes that all of the builders are currently averaging 2 new sales contracts per
month (combined), and are expecting to sell 24 homes within the next year. What conclusion could be drawn with regard to the 100 available home
sites and a market period of the next 12 months?
a. The market is in a condition of supply and demand.
b. The market is in a condition of balance.
c. The market is in a condition of oversupply.
d. The market is in a condition of undersupply.
438. For land sales to be used as comparables, they must be
a. competitive with the subject
b. open market transactions
c. relatively recent
d. all of the above
439. A bad floor plan would generally be classified as
a. physical depreciation
b. functional obsolescence
c. economic obsolescence
d. economic deterioration
440. The valuation technique in which land and building are valued separately is
a. The income capitalization approach
b. Linear regression
c. The sales comparison approach
d. The cost approach
441. Land valuation techniques include
a. Subdivision development, depreciated cost, consensus
b. Sales comparison approach, consensus, extraction
c. Sales comparison approach, allocation, extraction
d. Assessment multipliers, assessor’s opinions, multiple regression multipliers
442. Land value can be estimated using all of the following techniques except
a. The sales comparison method
b. The income method
c. The cost method
d. The allocation method
443. Improvement cost data can be obtained from
a. Builders
b. Sales of new homes
c. Cost Manuals
d. All of the above
444. Zoning is an exercise of the
a. equity courts
b. police powers
c. Environmental Management Bureau
d. Right of condemnation
e. Right of escheat
445. Value in use is
a. subjective
b. a market phenomenon
c. objective
d. synonymous with market price
e. readily measurable
446. The concept that the value of a particular components is measure by the amount that its absence would detract from the value of the whole is
a. opportunity cost
b. contribution
c. substitution
d. conformity
e. competition
447. The market loss cause by depreciation in an older structure may be offset by all of the following EXCEPT
a. architectural interest
b. historical registration
c. strong demand relative to supply
d. strong supply relative to demand
e. renovation of the structure
448. Studying appraisal helps a person
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
449. The period over which property may be profitably used is
a. Invested Capital
b. Going Concern
c. Capital Structure
d. Economic Life
450. Valuations of plant and equipment can be carried out using any of the following approaches:
a. the sales comparison approach.
b. the cost approach (depreciated replacement cost)
c. the income capitalization approach
d. All of the above.

SET B: Professional Appraisal Practice 200 Questions – 4 hours)

451. The construction of a luxury home in a neighborhood almost completely developed with one and two bedroom apartments would
a. produce external obsolescence
b. be called an under improvement
c. results in plottage value
d. results in neighborhood amenities
e. be reasonable or appropriate
452. The most detailed, complex, costly and time consuming method of cost estimation is the
a. quantity survey
b. unit in place
c. trade breakdown
d. comparable unit
e. comparative unit
453. An improvement’s remaining economic life
a. Is chronological stage
b. Is effective age
c. The period over which the improvements are expected to generate benefits
d. Is effective age minus chronological age
e. Is effective age vs chronological age
454. The cost approach is most applicable when the property being appraise
a. has old improvement
b. has relatively new improvements that represent the highest and best use of the land
c. suffers substantial functional obsolescence
d. is more costly than the surroundings
e. has many older features that make interesting reading in a report
455. Price per front foot
a. a physical unit of comparison
b. not as accurate as price per acre
c. rarely used in residential site analysis
d. an accurate guide to site marketability
e. useful when there are few physical differences between sites
456. Which is the last step in reconciliation
a. identify which of the three approaches is used
b. apply the three approaches to the data collected
c. apply to judgment to the data collected
d. review previous work and analysis
e. select a final value of estimate
457. The highest and best use of the site is its
a. existing use
b. most probable use
c. immediate next used
d. synonymous with ordinary and necessary value
e. different from most probable use
458. Markets in residential real estate are
 a. equivalent to those for securities
b. physically obscure
c. related to physical boundaries
d. found by courthouse sales
e. local
459. Inflation tends to increase the value of
a. fixed income securities
b. real estate
c. mortgages
d. debts
e. deeds in lieu of foreclosure
460. Real estate markets
a. are international in scope
b. meet none of the criteria of a perfect market
c. are centralized in nature
d. consist of used property only
e. are well developed in former Communist countries
461. The subject property has 85% occupancy. What conclusion would you most likely draw if the typical occupancy rate in the area was 95%?
a. Advertising is average
b. The rents are high
c. The rents are low
d. Management is good
e. New construction will occur soon
462. Population flow to different regions of the Philippines will change primarily because of
a. changing economic opportunities
b. environmental control legislation
c. rezoning legislation
d. local tax policies
e. less typhoons in the southern regions
463. When each alternative use requires the same capital investment, the use that maximizes the investment’s______ on a long-term basis is the highest
and best use.
a. diversified portfolio
b. potential gross income
c. operating expenses
d. occupancy rate
e. net operating income
464. What would be the indicated value of a property that rented for 750 per month, using a monthly gross rent multiplier of 100, if the expenses attribute
to the property were 115 per month?
a. 75,670
b. 61,125
c. 75,000
d. 13,750
e. 68,750
465. Which of the following criteria most completely defines “highest and best use”?
a. physically possible, legally acceptable, and generating a higher present land value than any other use
b. legally authorized, politically viable, and socially acceptable
c. physically possible, comparable to other uses in the neighborhood, and legally authorized
d. comparable to other local uses, physically possible, and generating a higher present land value that any other use
e. the tallest and most beautiful structure that can be placed on the land
466. The total income anticipated from income property operations after vacancy and collection allowances and operating expenses are deducted is
a. net operating income
b. potential gross income
c. before-tax cash flow
d. property residual income
e. effective gross income
467. Which principle of value best affirms that value is the present worth of expected future benefits?
a. supply and demand
b. anticipation
c. balance
d. conformity
e. substitution
468. Which of the following would be classified as a tangible rather than an intangible amenity?
a. pride of ownership
b. work satisfaction
c. a sense of security
d. clean air
e. a free dishwasher
469. Which type of property is subject to ad valorem taxation?
a. property owned by a religious organization and used for religious purpose
b. new industrial plants that state and local governments have induced, with tax exemption as an incentive, to locate within their jurisdictions
c. commercial property with more that 50% nonprofit tenants
d. state colleges and universities
e. a state capitol
470. Compared with other assets, real estate is
a. Immobile
b. mortgageable
c. Expensive
d. all of the above
e. long-lived
471. All of the following are sources of comparable sales EXCEPT
a. public records
b. mortgage servicers
c. brokers
d. appraisers
e. buyers and sellers
472. An allowance for vacancy and collection loss is estimated as a percentage of
a. net operating income
b. potential gross income
c. before-tax cash flow
d. after-tax cash flow
e. effective gross income
473. The annual net operating income from an apartment house is 11,000. If a capitalization rate of 11% is used, the indicated market value is
a. 126,000
b. 242,000
c. 176,000
d. 2,420
e. 100,000
474. Which of the following is true of a gross lease
a. the tenant pays all operating expense
b. the landlord pays all operating expense
c. this lease is used only for commercial properties
d. rent rises with the cost of living
e. this lease must be drafted by an attorney
475. A forecast using discounted cash flow analysis would include
a. income, vacancy and operating expense
b. an economic analysis
c. reversion at the end of the holding period
d. discounting expected future cash flows to a present value
e. all of the above
476. In discounted cash flow analysis, the reversion to be received at the end of the holding period is
a. a separate cash flow
b. an annuity in arrears
c. an ordinary annuity
d. percentage of annual income
e. amount to be capitalized in perpetuity
477. A Php 1,000,000.00 property will have a 70% loan at an 8% annual mortgage constant. What must the NOI be to produce 12% cash on cash return
a. 120,000.00
b. 84,000.00
c. 56,000.00
d. 700,000.00
e. 92,000.00
478. Income capitalization is the term used to describe the process of estimating the value of income property by studying expected future income. This
process
a. converts the net income of a property into its equivalent capital value
b. reflects the time value of money by reducing or discounting future income into its present worth
c. focuses on the present worth of future benefits
d. uses markets interest rates
e. all of the above
479. To earn 12% on your investment, what should you pay for a property that earns 6,000.00 per month and has operating expenses of 1,250.00 per
month
a. 475,000.00
b. 333,333.00
c. 150,000.00
d. 400,000.00
e. 229,166.00
480. The land development method is used to estimate the value of vacant acreage that is ready to be subdivided. This method requires
a. study of current sales of subdivided lots
b. the projection of land of subdivided lots
c. RTC approval
d. Both A and B
e. None of the above
481. A technique in income capitalization in which the analyst need not distinguish interest rates from capital recovery rates, but that is most useful for
comparable income
a. direct capitalization
b. building residual
c. land residual
d. bank of investment
e. internal rate of return
482. Cash on cash return is
a. the annual cash flow divided by the equity investment
b. an internal rate of return that represents annual income and all gains or losses prorated to an effective annual amount
c. a percentage or decimal rate that, when divided into a periodic income amount, offers a lumpsum capital value for income
d. a value that does not change with time
e. none of the above
483. Which report is usually NOT prepared by a real estate appraiser?
a. marketability study
b. mineral valuation study
c. economic study
d. highest and best use
e. feasibility study

Questions 34 – 37 is based on the information below.

You are appraising a 4-hectare tract of unimproved land. The site is zoned for single-family residential use. All utilities are available along the street
on which the land fronts. The engineers who will plat the proposed subdivision told you that 20% of the land area will be used for streets and
sidewalks. Zoning will permit 40 lots per hectare of net developable land after deducting streets. Research indicates that lots similar to those that will
be available on the subject land will sell for 500,000 each and that the entire tract can be developed and sold in 1 year. You find that 40% of the sale
price of each lot must be allocated to selling cost, overhead, contingencies, carrying cost, and developer’s profit, and that 800 meters of streets
(including water, storm sewer, and sanitary sewer lines) must be installed at a cost of 4,000 per foot.
484. What is the number of lots to be developed?
a. 40
 b. 88
c. 128
d. 32
e. 80
485. What is the gross amount that will be realized from the sale of all the lots?
a. 72,000,000
b. 100,584,000
c. 64,000,000
d. 57,600,000
e. 44,000,000
486. What is the cost of installing streets, water, and sewer lines?
a. 1,600,000
b. 3,200,000
c. 2,000,000
d. None of the above
e. 6,400,000
487. What is the amount of selling cost, overhead, contingencies, carrying cost, and developer’s profit?
a. 25,600,000
b. 63,300,600
c. 57,600,000
d. None of the above
e. 28,800,000

Questions 38 - 41 are based on the information below:

100-unit apartment complex includes 40 one-bedroom units that rent for 950 and 60 two-bedroom units that rent for 1,150 monthly. The vacancy rate
is 5%; miscellaneous income is 5,000 annually. Operating expenses amount to 400,000. The mortgage loan requires payments of 630,000 annually.

488. Potential gross income is

a. 1,289,000
b. 1,284,000
c. 112,000
d. Cannot be calculated from the information given
e. 107,000
489. Effective gross income is
a. 1,224,800
b. 107,000
c. 1,220,000
d. Cannot be calculated from the information given
e. 824,800
490. Net operating income is
a. 1,224,800
b. None of the above
c. 824,800
d. Cannot be calculated from the information given
e. 424,800
491. Before-tax cash flow is
a. 1,030,000
b. None of the above
c. 824,800
d. Cannot be calculated from the information given
e. 194,800

Questions 42 - 45 are based on the following information:

building contains 50 one-bedroom units and 150 two-bedroom units. The one-bedroom units rent for 550 monthly; two bedroom are 675. The
vacancy rate is 7%; operating expenses are estimated at 40% of effective gross income. There is 2,000 annual income for vending machines.

492. Potential gross income is

a. 64,735
b. 717,425
c. 1,547,000
d. None of the above
e. 1,545,000
493. Effective gross income is
a. 64,735
b. 1,438,850
c. 1,547,000
d. None of the above
e. 1,545,000
494. Net operating income is
a. 64,375
b. 719,425
c. 268,970
d. None of the above
e. 863,310
495. Operating expenses are
a. 1,545,000
b. 719,425
c. 54,075
d. 575,540
e. 2,000
496. In one step of the land value residual technique, the building capitalization rate is applied to the known building value to estimate the
a. highest and best use of the site
b. cost of the building
c. income needed to support the land
 d. net operating income needed to support the building
e. land value
497. the basic formula of property valuation via income capitalization is
a. V=IR
b. V=SP/GR
c. V=I/R
d. V=I/F
e. V=R/I
498. all of the following lease provisions are advantageous to the lessee EXCEPT
a. an escape clause
b. an escalation clause
c. a renewal option
d. none of the above
e. a purchase option

Questions 49 - 54 are based on the following information:

Factor Subject Comparable Comparable Comparable
1 2 3
Price 90,000 88,500 87,000
Living 1,500 1,600 1,450 1,400
area Good Fair Excellent Good
(sq.ft.) Once- Two-car One-car Two-car
Condition car Last year Last year This year
Garage Now
Time of
sale

Adjusted Sales Price: Prices have been rising by 5% per year in the are for this type of property.
Other Adjustments: Each square foot of livable area is judged to be worth 30; condition grades are fair, good, and excellent , with each difference in
condition grade worth 5%; a two-car garage is judged to be worth 1,500 more than a one-car garage.

499. What is the size adjustment for Comparable 1?

a. +1,500
b. +3,000
c. - 1,500
d. - 3,000
e. 0
500. What is the size adjustment for Comparable 2?
a. +1,500
b. + 3,000
c. - 1,500
d. - 3,000
e. 0
501. What is the condition adjustment for Comparable 1?
a. 0
b. +9,000
c. +4,500
d. -9,000
e. - 4,500
502. What is the condition adjustment for Comparable 2?
a. 0
b. +$8,850
c. +$4,425
d. - 8,850
e. - 4,425
503. What is the garage adjustment for Comparable 2?
a. 0
b. +$3,000
c. - 1,500
d. - 3,000
e. - 1,500
504. What is the garage adjustment for Comparable 3?
a. 0
b. + 3,000
c. +1,500
d. -3,000
e. - 1,500
505. In estimating the market value of a comparable sale, an appraiser must consider all of the following EXCEPT
a. whether the transaction was made in cash, terms equivalent to cash, or other precisely revealed terms
b. whether the property had reasonable exposure in a competitive market
c. whether a fair sale was transacted, with neither the seller nor the buyer acting under duress
d. whether the replacement cost of the property corresponds to its market value
e. whether the seller was related to the buyer
506. The terms financing, whether good or bad,
a. have no effect on the market price
b. have no effect on the market value
c. have no effect on affordability
d. depend on fiscal and monetary policy
e. should be ignored when adjusting comparables
507. Adjustments to the property rights conveyed, financing, conditions of sale, date of sale, and location are often made to the ____ of the comparable
property.
a. unit price
b. actual sales price
c. price per square foot
d. gross income multiplier
 e. cash equivalent value
508. Cumulative percentage adjustments may be used
a. when the characteristics are interdependent
b. when the characteristics are independent
c. when dollar figures are available
d. when unimproved properties are being appraised
e. under no circumstances
509. The best unit of comparison for vacant land is
a. the square foot
b. the total lot
c. a combination of square foot and front foot units
d. the linear foot
e. the unit considered important by the market
510. You are asked to appraise a vacant building lot. The neighborhood is about 75% built-up. Most lots in the area are from 55 ft. to 85 ft. to 65 ft. wide;
the lot under appraisal is 60 ft. Comparable sales indicate that lots are selling at 120 to 150 per front foot. What is a good estimate of the price range
for this lot?
a. 9,000-11,000
b. 6,600-7,600
c. 7,200-9,000
d. 6,600-11,250
e. 5,400-6,750
511. In appraising a residential property, the cost appraiser considers the
a. sales prices of comparable properties
b. deprecation of the land
c. depreciation of improvements
d. potential for new competition
e. potential misuse of this approach
512. In the cost approach, ____ is deducted after estimating the cost to reproduce an existing structure.
a. land cost
b. cash equivalence
c. cost to maturity
d. legal factors
e. depreciation
513. Economic obsolescence does NOT result from
a. an outdated kitchen
b. construction of a freeway near the property
c. the presence of an earthquake fault nearby
d. building restrictions in the community
e. factors external to the subject property itself
514. Reproduction or replacement cost includes all of the following EXCEPT
a. an outdated kitchen
b. construction of a freeway near the property
c. the presence of an earthquake fault nearby
d. building restrictions in the community
e. factors external to the subject property itself
515. Reproduction or replacement cost includes all of the following EXCEPT
a. direct or hard costs
b. indirect or soft costs
c. entrepreneurial profit
d. fixed and variable expenses of operations
e. elevator shafts
516. In analyzing obsolescence , the test of curability of a component in a building is whether the cost to cure is no greater than the .
a. expected increase in value
b. reproduction cost new
c. replacement cost
d. installation cost
e. economic life of the new component
517. Which of the following is NOT a type of depreciation?
a. entrepreneurial loss
b. functional obsolescence
c. external obsolescence
d. economic obsolescence
e. physical deterioration
518. Estimation of occurred depreciation and obsolescence does NOT involve.
a. physical deterioration
b. functional obsolescence
c. economic obsolescence
d. wear and tear
e. financial structure
519. In appraisal, accrued depreciation is really an estimate of
a. physical deterioration
b. capital recovery
c. diminished utility
d. sinking fund factor
e. book depreciation
520. The cost approach is NOT useful for
a. checking value approaches
b. appraising institutional or special-use properties
c. estimating the value of new property
d. appraising older homes in an active market
e. insurance appraisals

Questions 71 - 73 are based on the following information:

An appraiser noted the following about a rental home:

 needs exterior paint 750 cost to cure
needs new water heater 250 cost to cure
has one bath in market for two 4,000 capitalized rent loss
has poor floor plan 2,500 capitalized rent loss
is located next to a convenience store 1,200 capitalized rent loss

521. How much is curable physical deterioration?

a. 250
b. 2,500
c. 750
d. none of the above
e. 4,000
522. How much is functional obsolescence?
a. 250
b. 2,500
c. 750
d. 4,000
e. 1,200
523. How much is environmental obsolescence?
a. 250
b. 2,500
c. 750
d. 4,000
e. 1,200
524. An appraisal of a freestanding store and the land it occupies is an unbiased estimate of the value of an interest in.
a. personal property
b. personal property and land
c. mortgages
d. real estate plus business value
e. real estate
525. The term vertical interest does NOT refer to rights to
a. subsurface mineral extraction
b. the construction and railroad tunnels
c. the use and regulation of air space
d. subdivision and development
e. the construction of buildings over railroad yards
526. Inflation tends to increase the value of
a. fixed-income securities
b. tangible long-lived investments
c. mortgages
d. debts
e. deeds in lieu of foreclosure
527. With an amortized mortgage loan,
a. interest only is paid until maturity
b. some principal is repaid with each payment
c. the entire principal is repaid before maturity
d. equal amounts of principal are repaid each period
e. there is a balloon payment at maturity
528. When each alternative use requires the same capital investment, the use that maximizes the investment’s ____ on a long-term basis is highest and
best use.
a. diversified portfolio
b. potential gross income
c. operating expenses
d. occupancy rate
e. net operating income
529. Land purchased for 50,000 cash appreciates at the rate of 15% compounded annually. About how much is the land worth after 5 years? Disregard
taxes, insurance, and selling expenses.
a. 100,000
b. 37,500
c. 87,500
d. 7,500
e. 57,500
530. A land speculator expects that a certain 100-acre tract can be sold to a subdivider 4 years from now for 10,000 per acre. If holding and selling costs
are disregarded, what cash price today (rounded to the nearest 1,000) would allow the speculator to realize a 15% compounded annual rate of
return on the entire tract?
a. 572,000
b. 6,000
c. 5,000
d. none of the above
e. 600,000
531. Gross income multipliers are generally considered part of
a. the cost approach
b. the direct sales comparison approach
c. the income capitalization approach
d. the insurance approach
e. none of the above
532. Use of a gross rent multiplier is valid when the subject and comparable properties have similar .
a. potential gross incomes
b. operating expense ratios
c. effective gross incomes
d. cash flows
e. net operating incomes
533. Time-distance relationship between a site and all relevant origins and destinations are called
a. access roads
b. linkages
 c. transit facilities
d. synergies
e. ingress and egress
534. The land on which a 10-year-old house is located is valued at 2,800,000, and the reproduction cost of the dwelling is 9,200,000. Straight-line
depreciation is 2% per year, applied to the building only. If there is no other obsolescence, what is the indicated value of the property?
a. 9,600,000
b. 11,770,000
c. 10,160,000
d. 12,000,000
e. 11,700,000
535. An allowance for vacancy and collection is estimated as a percentage of
a. net operating income
b. potential gross income
c. before-tax cash flow
d. after-tax cash flow
e. effective gross income
536. Effective gross income is income after an allowance for
a. depreciation
b. operating expenses
c. cash expenditures
d. both A and B
e. none of the above
537. In discounted cash flow analysis, the reversion to be received at the end of the holding period is
a. a separate cash flow
b. an annuity in arrears
c. an ordinary annuity
d. a percentage of annual income
e. an amount to be capitalized in perpetuity
538. To earn 12% annual cash return on a cash investment, what should you pay for a property that earns 4,000 per month and has operating expenses
of 1,250 per month?
a. 150,000
b. 333,333
c. 275,000
d. 400,000
e. 229,166
539. In selecting an overall capitalization rate for an income-producing property, the appraiser will consider all of the following EXCEPT
a. return on invested capital
b. risk factors
c. return of invested capital
d. the interest rate on the existing loan, which was arranged last year
e. the interest rate prevailing in the market

Questions 90 - 93 are based on the following information:

A 200-unit apartment complex includes 80 one-bedroom units that rent for 4,750 and 120 two-bedroom units that rent for 5,750 monthly. The
vacancy rate is 5%; miscellaneous income is 50,000 annually. Operating expenses amount to 4,000,000. The mortgage loan requires annual
payments of 6,300,000.
540. Potential gross income is
a. 12,890,000
b. 1,070,000
c. 12,840,000
d. none of the above
e. 1,120,000
541. Effective gross income is
a. 12,248,000
b. 1,070,000
c. 12,200,000
d. none of the above
e. 8,248,000
542. Net operating income is
a. 12,248,000
b. 4,248,000
c. 12,200,000
d. none of the above
e. 8,248,000
543. Before-tax cash flow is
a. 10,300,000
b. 1,948,000
c. 8,248,000
d. none of the above
e. 4,248,000
544. To obtain the present value of a series of incomes, a (n) ____ rate is applied.
a. discount
b. equity capitalization
c. income
d. stated
e. overall capitalization
545. A fast-food chain could buy the building and land necessary for a new outlet for 200,000. Instead, an investor bought the property for this amount
and leased it for 2,000 per month over a 20-year term. Rent is payable at the end of each month. What yield to maturity is implied by the lease,
assuming that, at the end of 20 years, the property is still worth about $200,000?
a. 8%
b. 14%
c. 10%
d. 15%
e. 12%
546. When market rent is less than contract rent, the difference is known as
 a. overage rent
b. gross rent
c. excess rent
slippage rent
d. percentage rent
547. If a particular buyer requires as recapture of the building portion of the purchase price in 25 years, what is the indicated recapture rate for the
building, assuming straight-line recapture?
a. 0.25%
b. 20%
c. 2%
d. 25%
e. 4%
548. In a high-rise, 100-unit apartment building there is a basement laundry area that brings in 10,000 monthly from the concessionaire.The laundry
income is
a. included, as miscellaneous income, in potential gross income
b. included, as other income, in effective gross income
c. deducted from effective gross income
d. added to before-tax cash flow
e. distributed to the maintenance workers
549. In economics, the four factors of production are
a. land, labor, capital, and improvements
b. land, labor, capital and entrepreneurship
c. land, labor, capital and money
d. land, improvements, labor and materials
e. land, labor, site, and improvements
550. The law of supply and demand is
a. a basic economic principle
b. legislated by Congress
c. seldom used in the appraisal process
d. not a applicable in the short term
e. all of the above
551. A “Key” lot is:
a. A lot the is shaped like a key
b. A lot that is located at the end of a dead-end street
c. A lot that has several other lots backing onto its side yard
d. None of the above
552. What is a plottage value?
a. The value of land between the subject property and another property
b. The bonus that sometimes maybe obtained from consolidations of lots
c. The price of land per plot
d. The depth divided by the frontage
553. There is an important technical difference between the terms reproductions cost and replacement cost. Replacement cost refers to
a. The cost of constructing an exact replica building
b. The cost of constructing a building that would have similar utility to the subject property .
c. The cost of reproducing the subject building
d. None of the above
554. There is a theory that al structures have a total useful life that can be predicted. The method of estimating accrued depreciation based on this theory
is:
a. The capitalized income or rental method
b. The sales data or market method (abstraction method)
c. The straight-line or age-life method
d. The cost-to-cure or observed condition method
555. The way in which a structure is placed on a lot in relation to other structures in the same area is called
a. Evaluation
b. Topography
c. Conformity
d. Vicinity
e. Orientation
556. Primary data refers to:
a. The main data used by the appraiser
b. Data collected by the appraiser
c. Data that has a direct impact on value
d. Data published by a reliable source
557. A metes and bounds description begins and ends with the
a. street and house number
b. grid coordinates
c. block number
d. iron pin
e. point of beginning
558. A (n) ____ identifies a property in such a way that it CANNOT be confused with any other property.
a. coded map book
b. full city survey
c. legal description
d. engineering report
e. narrative appraisal
559. A hectometer is equivalent to:
a. 1 meter
b. 100 meters
c. 10 meters
d. 1,000 meters
e. 50 meters
560. All of the following will affect the market value of a property EXCEPT
a. political factors
b. economic factors
c. legal use restriction
 d. social concerns
e. acquisition cost to present owner
561. Market value is ____ the same as selling price.
a. always
b. usually
c. never
d. none of the above
e. sometimes
562. Price is
a. market value
b. a historical fact
c. most probable sales price
d. all of the above
e. investment value
563. Functional utility depends on
a. zoning
b. age of the equipment
c. wear and tear on the structure
d. insurance requirements
e. tastes and standards
564. Value in use is
a. subjective
b. a market phenomenon
c. objective
d. synonymous with market price
e. readily measurable
565. The four elements which create value are:
a. scarcity, effective demand, utility, transferability
b. utility, scarcity, supply, transferability
c. effective demand, immobility, durability, exclusivity
d. supply, utility, desire, fixed location
566. Studying appraisal helps a person
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
567. A dramatic change in short-term demand for real estate in the local market is likely to immediately precipitate
a. construction
b. activity
c. price changes
d. no change in supply
e. conversions
568. The area and community analysis section of an appraisal report
a. should “sell” the community
b. should describe the community objectively
c. is a study by the estate’s industrial development commission
d. considers the negative aspects only
e. considers the positive aspects only
569. In analyzing the economic environment and market area, it is best to
a. start at the general level and work down to the specific
b. start at the specific and work up to the general level
c. limit the analysis to the national level
d. generally consider traffic flow
570. Which of the following reports is usually NOT prepared by a real estate appraiser?
a. marketability study
b. economic study
c. feasibility study
d. transportation network study
e. valuation study
571. An appraisal of a specific-purpose for insurance purpose would depend most heavily on
a. book value
b. highest and best use
c. cost estimate
d. specialty value
e. land value
572. The first step in the appraisal process is to
a. define the problem to be solved
b. gather relevant data
c. analyze the data
d. inspect the property
e. set the fee to be charged
573. An appraisal is
a. an estimate of net realizable value
b. always concerned with the market value
c. an appraiser’s opinion of market value
d. a precise statement of value
e. a broker’s comparative sales analysis with further detail
574. The “as of” date in an appraisal report is
a. the date to which the value applies
b. immaterial to the value estimate
c. the date on which the report is delivered
d. the date on which the property will be conveyed
e. the anticipated closing date
575. Sales data descriptions of an appraisal report contain
 a. details about each comparable sale
b. an analysis of the date, using the value approaches
c. the investigation of market forces
d. analysis of the street each comparable property is on
e. zoning details
576. All of the following are ways to delineate a neighborhood EXCEPT
a. natural barriers
b. streets
c. utility service
d. income characteristics
e. political boundaries
577. All of the following are sources of comparable sales EXCEPT
a. public records
b. mortgage services
c. brokers
d. appraisers
e. buyers and sellers
578. Which of the following criteria most completely define “highest and best use”?
a. legally authorized, politically viable, and socially acceptable
b. physically possible, comparable to other uses in the neighborhood, and legally authorized
c. physically possible, legally permissible, financially feasible, and generating a higher present land value than any other use
d. comparable to other uses in the neighborhood, physically possible, and generating a higher present land value than any other use
e. the tallest and most beautiful structure that can be placed on land
579. The three basic approaches used to estimate value are
a. use, exclusion, and disposition
b. cost, sales comparison, and use
c. cost, sales comparison, and market data
d. cost, sales comparison, and production
e. cost, sales comparison, and income capitalization
580. Units of comparison are used in
a. only the sales comparison approach
b. only the cost approach
c. only the income capitalization approach
d. A, B and C
e. the appraisal of special-purpose properties only
581. Final value estimates should be rounded to reflect the
a. absence of good data
b. property’s location
c. fact that a selling price will probably be a round number
d. lack of precision associated with an opinion
e. high value of real estate
582. When reconciling the adjusted sales prices of comparables, the greatest emphasis should be given to
a. the average
b. the mean of A, B, and C
c. the median
d. none of the above
e. the mode
583. Which of the following forms of appraisal report is NOT recommended?
a. completely filled-in institutional form
b. telephone conversation
c. letter report
d. long narrative report
e. demonstration
584. Which of the following approaches would probably be given the most weight in appraising a large office building?
a. reproduction cost
b. income capitalization
c. subdivision development
d. market absorption
e. replacement cost
585. The form in which a formal appraisal is presented is called
a. a presentation of value
b. a value certification
c. an appraisal log
d. a narrative
e. an appraisal report
586. The form of an appraisal report
a. has no influence on the appraisal process
b. is the same, regardless of the problem
c. is set by the amount of the fee
d. is determined by the appraiser
e. determines the appraisal framework
587. The effective age and the useful life of a building represent judgments made by the
a. appraiser
b. buyer
c. property owner
d. insurer
e. tax assessor
588. The period over which existing improvements are expected to continue to contribute to property value is their
a. effective age
b. period of diminishing returns
c. remaining economic life
d. chronological age
e. remaining physical life
589. For a building, effective age is best defined as
a. the average age of the roof
 b. the actual age divided by the age-life
c. the age of other property in equivalent condition and utility
d. the chronological age of the building
e. the period over which the building may be effectively used
590. The utility of real estate is its
a. attractiveness to the trained observer
b. longevity
c. capacity to satisfy human needs and desires
d. effective demand
e. remaining economic life
591. In appraising a residence, adjustments are NOT made to the comparable property for
a. age
b. terms of sale
c. lot value
d. size
e. assessed valuation
592. When a site has improvements on it, the highest and best use
a. is not definable
b. is its existing use
c. is its potential use
d. depends on whether or not the existing use is changeable
e. may be different from its existing use
593. To be considered as a comparable, a property
a. a must have been sold within the past 5 years
b. must be competitive with the subject
c. must have been sold by an open-market transaction
d. must be a similar color
e. both B and C
594. The direct sales comparison approach is better than the income or cost approach because
a. fewer comparable properties are require, so it is easier to outline the results to clients
b. there are fewer mathematical calculations, so there is less chance of mathematical errors
c. the market for real estate is slow to change
d. it is always easier to obtain data for the direct sales comparison approach
e. none of the above is true
595. The appraisal of an established 20-year old motel on a road with numerous competitive motels would most likely be based on the
a. square foot are of improvements
b. gross rent multiplier
c. number of units
d. occupancy rate
e. reproduction cost
596. In applying gross rent multiplier analysis to the subject property, the appraiser would use the
a. market rental
b. actual rent being paid
c. rent currently asked by the owner
d. rent offered by a potential tenant
e. rent listed in advertising the property
597. The present and future demand for a property and its absorption rate is considered in a
a. letter in appraisal
b. market feasibility study
c. market segmentation
d. highest and best used analysis
e. transmittal letter
598. The appraiser final estimate should be based on
a. average of three value indications obtained by three approaches
b. weighing of the reliability of the information analyzed in each of the three approaches
c. the most sophisticated guess technique
d. adjustment for most recent indicators in the local market
599. The appropriate time adjustment is concluded to be an increase of 7% per year compounded. The time adjustment for a comparable sales property
that should sell for 80,000.00 two years ago.
a. 11,529
b. 11,200
c. 9,200
d. 91,592
e. 5,600
600. The criteria for determining the highest and best used include all of the following EXCEPT
a. physical possibility
b. probable use
c. financial feasibility
d. effect on community welfare
e. legal permissibility
601. The broad forces affecting value do not include
a. Physical
b. social
c. life cycle
d. economic
e. political
602. The certification of value section of an appraisal report states everything EXCEPT that
a. the appraiser has no interest in the property
b. the fee is not contingent upon any aspect of the report
c. the facts are correct to the best of the appraiser knowledge
d. last year the property was appraised by the another person
e. the property was personally inspected by the appraiser
603. One implication of competition and excess profit is that
a. there is a certain optimum combination of land, labor, capital and entrepreneurship
b. an estimate of value should be based on future expectation
 c. abnormally high profits cannot be expected to continue indefinitely
d. maximum value accrues to real estate when social and economic homogeneity are present in a neighborhood
604. Cost indexes offered by standardized services are used to
a. derive units of comparison
b. catalog building component
c. estimate operating expenses
d. update past cost into current cost
e. estimate the local consumer price index
605. A summary appraisal report
a. contains many items that are not considered in practice
b. is an appraisal report prepared for a client
c. summarizes the item that might be used in practice
d. may be based on hypothetical or assumed data
e. should be prepared on a non-typical property to appraisal practice
606. Real estate sub-market is
a. a group of sale person who deal mostly in the same type of property
b. a group of sales that occur at the same time
c. a group of similar properties in the same area
d. a small portion of the market of similar properties
e. an area where sandwiches on French bread are eaten
607. The fee for an appraisal assignment is
a. based on a percentage of the final value estimate
b. agreed upon during the preliminary study stage
c. determined after the appraisal is completed
d. set by the fee schedule of the local board of realtors
e. set by a fee scale from real estate commission
608. The last step in the appraisal report is to
a. write the report
b. inspect the property
c. reconcile all data
d. set the fee to be charged
e. analyze the data
609. The form of which a formal appraisal is presented is called
a. a presentation of value
b. a value certification
c. an appraisal log
d. a narrative report
e. an appraisal report
610. A formal appraisal must include the
a. date of value estimate
b. certification
c. signature of the appraiser
d. identification of property appraised
e. all of the above
611. The highest and best use of land as if vacant forms part of the basis for
a. mortgage-equity analysis
b. the cost approach
c. property rights adjustment
d. the square footage practice
e. an operating expense estimate
612. Identifying and studying submarkets of a larger market is called
a. market research
b. market segmentation
c. market survey
d. market data
e. market agglomeration
613. The identification and study of a pertinent market is called
a. market analysis
b. market reflection
c. neighborhood review
d. market interaction
e. property research
614. Which of the following is important for good appraisal communication
a. word choice
b. clarity
c. reading level
d. grammatical correctness
e. all of the above
615. Juan dela Cruz had his "dream house" constructed for P6,000,000 in an area where most newly constructed houses are not as well equipped as his
and typically sell for onlyP2,000,000. The value of Juan’s house is likely to be affected by the principle of .
a. Progression
b. Regression
c. Assemblage
d. Substitution
e. Change
616. In question #165 above, the owners of the lesser- valued houses in Juan’s immediate area may be affected by the principle of
a. Progression
b. Regression
c. Increasing return
d. Substitution
e. Competition
617. In preparing the appraisal report, your analysis concludes that one of the approaches to value is not applicable to this particular case. You should
a. omit the approach all together
b. base the approach on hypothetical data
c. state that the approach is not relevant
 d. state that the approach is not applicable, explain the reason for this contention
e. find another approach so as to include three approaches
618. In the cost approach the site is valued as if it were
a. vacant and available for development to its highest and best use
b. improved and suited for its intended use or development
c. developed and operating
d. attractively landscape
e. without nearby utilities
619. Investment value is best described as
a. market price
b. market value
c. the cost of acquiring a competitive substitute property with the same utility
d. the present worth of anticipated future benefits to a certain entity
e. value in exchange
620. Location decisions involve analysis on which three levels
a. general, specific, detailed
b. country, state, community
c. residential, commercial, industrial
d. country, state, county
e. region, neighborhood, site
621. The lower or outer edge of a roof which projects over the sidewalls of a structure.
a. Cantilever
b. Overhang
c. Eaves
d. Lean-to
e. Beam
622. The most comprehensive type of appraisal report is
a. form report
b. narrative demonstration report
c. oral report
d. unbiased report
e. letter report
623. The principle of anticipation is
a. future oriented
b. past oriented
c. the as of date of appraisal
d. anticipated loan to value ratio for the subject property
e. similar to the principle of substitution
624. Price and value are
a. not necessarily the same
b. synonymous
c. different, depending on financing terms
d. almost the same in an active market
e. interchangeably in a report
625. The purpose of a ____ is to analyze a property’s potential for success
a. feasibility study
b. marketability study
c. market segmentation study
d. appraisal report
e. need study
626. A use must be_____ to be considered as a possible alternative for highest and best use
a. physically and legally possible and financially feasible
b. physically and legally possible
c. Already in existence and legal
d. Physically possible and appropriate
e. Legal and profitable
627. An appraiser
a. determines the price
b. estimates value
c. defends value
d. determines value
e. estimates price
628. The objective of the appraisal should be stated in the report because
a. the market needs it
b. it define the problems and identifies the value sought
c. it identifies the function of the report
d. it absolves the appraiser of liability
e. there are too many definitions of market price
629. The value estimate provided in an appraisal
a. changes with the use to which it is put
b. changes with the function of the appraisal
c. remains the same regardless of use
d. depends upon the use or function of the appraisal
e. always reflects market value
630. Population increases______demand for housing
a. depress the
b. are likely to create a
c. are incapable of simulating the
d. are determined by the
e. have no effect on the
631. Environment hazards that an appraiser must be conscious of include all of the following except
a. asbestos
b. urea formaldehyde
c. radon
d. PVC
 e. drano
632. In analyzing the environment and market area, it is best to
a. start at the general level and work down to the specific
b. start at the specific and work up to the general level
c. limit the analysis to the national level
d. limit the analysis to the local level
e. generally consider the traffic flow
633. The first step in general appraisal process is to
a. define the problem
b. determine the approaches to value
c. gather data
d. make a final value estimate
e. analyze data
634. Combining two or more sites in order to develop one site with a greater value than the individual sites have separately is called
a. synergy
b. excess land
c. plottage
d. highest and best use of land
e. surplus land
635. Assemblage is
a. always reflect in the market value
b. the act of bringing two or more smaller lots into common ownership for use
c. inappropriate for parcels two or more hectares
d. uneconomical
e. illegal
636. Typically, land is appraised by the
a. square foot
b. front foot acre
c. front foot
d. all of the above
e. none of the above
637. It is_________for an appraiser to receive or pay finder’s or referral fees
a. reasonable
b. customary
c. unethical
d. convenient
e. necessary
638. A sale between relatives is considered
a. an arms length transaction
b. a distorted sale
c. a purely comparable sale
d. a good deal
e. an open market sale
639. What of the following is true about zoning
a. it reflects the expectation that government will preserve property values
b. it is based on the right of government to regulate for health, moral, welfare and safety
c. it is inappropriate for parcels without use
d. it represents an effort to establish the land’s highest and best use
e. it represents the right to reuse the property
640. For an appraiser to use the assistance of another appraiser is
a. inconsiderate
b. ethical
c. unethical
d. questionable
e. illegal
641. it is_________to provide a value range to a client who requests it and understands its meaning and use.
a. Foolish
b. approximate
c. Appropriate
d. difficult
e. un ethical
642. Any recent sale of a subject property being appraised
a. should be considered confidential
b. cannot, under any circumstances, be considered in estimating the current market value of the property
c. should be discussed in the appraisal report
d. was not an arms length sale
e. should be used as comparable sale, though adjusted for its time and terms
643. the dimensions of a warehouse are customarily measured from
a. a roof line
b. the midpoint of exterior wall
c. the inside of finished wall
d. the outside of finished wall
e. be reasonable or appropriate
644. A building is depreciated at 2.5% per year on a straight-line basis. What is the estimated useful life of the building?
a. 10 years
b. 30 years
c. 15 years
d. 40 years
e. 20 years
645. A residential land is located at Tagum City with an area of 2,200 square meters and cost per sq.m. is P3,500. It has a corner influence of 25%
because of its location, topography advantage of 20% because it is plain and a plottage of 10% because of its shape. Compute the value of the
property.
a. Php 11,935,000
b. Php 9,240,000
c. Php 11,165,000
 d. Php7 ,700,000
e. Php 9,625,000
646. Using the 4-3-2-1 depth rule, if a 10-hectare belonging to different owners namely; Cora,Thelma, Boy and Alan was sold for P10,0M, what is the
share of Thelma if she owns the 2nd lot?
a. 4,000,000
b. 2,000,000
c. 3,500,000
d. 1,000,000
e. 3,000,000

Questions 197 - 200 are based on the following information:

Rebisco bought 50 hectares of land at P700 per sq.m. If the medium subdivision development costs of P1,000/sq.m. is based on the saleable area,
which is 60% of the gross area, compute the following:

647. Total land acquisition cost

a. Php 35M
b. Php 350M
c. Php 50M
d. Php 500M
e. Php 210M
648. Total Development cost
a. Php 35M
b. Php 350M
c. Php 50M
d. Php 500M
e. Php 210M
649. Total unit costs per sq.m. of the saleable lots
a. Php 2,833
b. Php 5,100
c. Php 8,500
d. Php 1,000
e. Php 1,700
650. If the projected gross mark up is 100% of the total unit costs/sq.m. of the saleable lots, what will be the selling price per square meter?
a. Php 2,833
b. Php 10,200
c. Php 5,667
d. Php 2,000
e. Php 3,400