1.

A life estate is a(n) within 18 months from the sale shall be

a. present, possessory interest. assessed additional deficiency capital gains
b. estate of tenancy. tax inclusive of penalties and
c. future interest. a. 5% p.a.
d. fee simple defeasible. b. 20% p.a.
2. During the research of a subject property an c. 25% p.a.
appraiser learns the occupants (parents) d. 10% p.a.
have been granted a life estate by their 11. Ground floor of a condominium project per
children. What interest do the children hold in BIR 28-29 shall be considered as
the property? commercial and a additional rate shall be
a. Remainder man added on established residential zonal value
b. Trustee of
c. Life tenant a. 20%
d. Trustor b. 15%
3. Property acquired by a spouse c. 10%
during marriage by gift or d. 25%
inheritance is 12. The estate tax return shall be filed with the
a. marital property BIR within
b. separate property a. 90 days from the death of the decedent
c. community property b. 120 days from the death of the decedent
d. jointly owned property c. 60 days from the death of the decedent
4. A deed of trust is d. 180 days from the death of the
a. A document that makes a third party decedent
responsible for the money 13. Taxpayer has__ to redeem his real property
b. A document that gives a third party the which was levied and subsequently forfeited
deed until the mortgage loan is paid and acquired by the local government for tax
off delinquency
c. A deed given by a prisoner who has a. 3 years
behaved for many years. b. 1 year
d. Used as a tool to make foreclosure more c. 5 years
efficient d. 2 years
5. Based on net gift the maximum rate of donor 14. The following composed the board of
tax is (2021) assessment of Makati city, except
a. 6% a. city assessor
b. 15% b. register of deed
c. 10% c. city treasurer
d. 30% d. city engineer
6. The rate of real estate tax in municipalities 15. Documentary stamp tax on the sale of
within metro manila is not more than property must be paid
a. 5% a. within 30 days from the date of
b. 10% notarization
c. 2% b. within 5 days after the close of the
d. 20% month of the date of sale
7. Under the local government code, c. within 10 days after the close of the
agricultural lands of more than one hectare month of the date of sale
are subject to additional tax of no more than d. at the time payment of capital gains tax
5% of assessed value when at lest 16. Value placed on taxable property by the
a. entire area is uncultivated assessor for ad valorem tax purpose
b. 50% of the area is uncultivated a. economic value
c. 30% of the area is uncultivated b. assessed value
d. 20% of the area is uncultivated c. appraised value
8. Annual levy on real estate equivalent to 1% d. market value
of the assessed value which shall be in 17. The property sold is an ordinary asset, what
addition to the basic real estate tax is the applicable tax
a. ad valorem tax a. estate tax
b. special education fund tax b. capital gains tax
c. excise tax c. percentage tax
d. vat d. creditable withholding tax
9. Capital gains on the sale of real estate 18. Tax fixed on documents, instruments and
classified as capital asset is papers evidencing acceptance, assignment
a. prepaid income tax or sale of a right, property or obligation
b. expanded withholding tax a. community tax
c. creditable tax on sale b. excise tax
d. creditable tax on sale
10. BIR revenue regulation no 17-2003, the
seller of a family home who failed to utilized
the proceeds to acquire a new residence
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 c. estate tax d. Prospect
d. documentary stamp tax e. Alter Ego
19. Banks acquired assets which form part of its 28. The documentary stamp on lease of real
real estate inventories at the close of its estate is P6.00 for the first P2,000.00 or
accounting period shall be classified fraction thereof and additional (2021)
a. ordinary asset a. P0.50 for every P1,000 in excess of the
b. fixed asset first P2,000
c. capital asset b. P1.00 for every P1,000 in excess of the
d. tangible asset first P2,000
20. Sale of a dealer of a residential dwelling is c. P1.50 for every P1,000 in excess of the
not subject to VAT when the price does not first P2,000
exceed (2021) d. P2.00 for every P1,000 in excess of the
a. 1,500,000.00 first P2,000
b. 1,000,000.00 e. P3.00 for every P1,000 in excess of the
c. 2,500,000.00 first P2,000
d. 3,199,200.00 29. Under BIR Revenue Regulation No. 17-
21. Which of the following cannot be issued 2003, the seller of a family home who failed
condominium certificates of titles to utilize the proceeds to acquire a new
a. subdivision lots residence within 18 months from the sale
b. two level row house shall be assessed additional deficiency
c. one level raw house capital gains tax inclusive of penalties and:
d. industrial warehouse a. 5% interest per annum
22. The required number of votes of registered b. 10% interest per annum
owners to authorize a condominium c. 15% interest per annum
corporation to sell or otherwise dispose of d. 20% interest per annum
the common areas in a condominium project e. 25% interest per annum
is 30. The rate of real estate tax in municipalities
a. unanimous votes within Metro Manila is not more than
b. Simple majority votes a. One-half percent of assessed value
c. 2/3 votes b. Three percent of assessed value
d. 1/3 votes c. One percent of assessed value
23. A space to be considered a condominium d. None of the above
unit e. Two percent of assessed value
a. at least 5 storey high 31. Based on net gifts,
b. manage by condominium corporation the maximum rate
c. be susceptible to independent use and of donor’s tax is:
owner ship a. Ten Percent
d. unencumbered by any restriction b. Fifteen percent
24. The right of an owner lessor to receive the c. Thirty percent
contract rent and reversion of property at the d. Twenty percent
end of the lease is e. Twenty-five percent
a. fee simple 32. The value placed on taxable property by the
b. lease fee estate assessor for ad valorem tax purpose is:
c. net lease a. Market Value
d. freehold b. Appraised Value
25. An authority given by the developer to a c. Assessment Value
broker to look for a supplier of backfilling d. Assessed Value
materials who shall be paid with developed e. Economic Value
lots is: 33. The estate tax return shall be filed with the
a. Procurement agency BIR within :
b. Sales agency a. 60 days from death of decedent
c. General Brokerage b. 180 days from death of decedent
d. None of the above c. 90 days from death of decedent
e. Exchange agency d. 240 days from death of decedent
26. An agreement between an owner and a e. 120 days from death of decedent
broker to sell a real estate property: 34. Under the Local Government Code, the next
a. Listing period for the property owner to file a sworn
b. Power of Attorney declaration of ownership and value with the
c. Authority to sell assessor is:
d. None of the Above a. Year 2018
e. Joint venture b. Year 2019
27. In the real estate c. None of the above
business, another d. Year 2020
term for the owner is: e. Year 2021
a. Customer 35. The documentary stamp tax
b. Principal on the sale of property must
c. None of the above be paid
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 a. Within thirty (30) days a. Undertaking to surrender land in
from the date of excess of retention limits
notarization b. Affidavit of compliance with CARL
b. Within five (5) days after the close of c. Affidavit of total or aggregate
the month of the date of sale landholding
c. Within ten (10) days after the close of the d. Certification from DAR
month of the date of sale e. Affidavit of waiver
d. At the time of payment of capital gains tax 43. The retention limit of landowners under the
e. At any time CARP is:
36. The ground floor of a condominium project, a. 5 has for the landowner and 3 has per
per BIR 28-98, shall be considered as child irrespective of age
commercial and an additional rate shall be b. 5 has for the landowner and 3 has per
added on established residential zonal value child who must be at least 15 years old
of: c. 5 has for the landowner and 5 has per
a. 10% child whether or not they till the land or
b. 25% manage the farm
c. 15% d. 5 has for the landowner and 3 has per
d. 30% child who must be at least 15 years old
e. 20% and is actually tilling the land or
37. The schedule of fair market value in managing the farm
municipalities in Metro Manila is prepared by: e. 5 has for the landowner and 3 has per
a. MMDA child who must be over 21 years old
b. Bureau of Internal Revenue 44. A buyer of a subdivision lot on installment
c. Concerned Municipal Assessor after sufficient notice to the developer
d. Sangguniang Bayan by ordinance discontinued paying amortization because
e. None of the above the developer failed to develop the
38. The amount of family home equivalent to the subdivision as certified by the HLURB in
fair market value considered as allowable such a situation and under P.D. 957, the
deductions from the estate of the decedent buyer is entitled to a refund which would be:
a. P 500,000.00 a. Total payment made less penalty
b. P 1,000,000.00 charges.
c. P1,500,000.00 b. Total payments made less penalty and
d. P 2,000,000.00 interest charges.
e. P 750,000.00 c. Total payments made less penalty
39. A taxpayer has ____ to redeem his real charges plus interest on total payment.
property which was levied and d. Total payments including penalty charges
subsequently forfeited and acquired by e. None of the above.
the local government for tax delinquency. 45. Unless extended for justifiable cause, the
a. 1 year period of completion of development of a
b. 60 days subdivision project, counted from issuance of
c. 2 years license to sell, is:
d. 4 years a. Six months
e. 3 years b. Eighteen months
40. In case of foreclosure sale where right of c. Twelve months
redemption is not exercised by the d. Twenty four months
mortgagor, who pays the capital gains tax? e. None of the above
a. Owner-mortgagor 46. Registration of a mortgage covering
b. Buyer of the property a subdivision project or completion
c. None of the above of development of a subdivision
d. Creditor-bank project is at the:
e. Any of the above a. Local Government Unit
41. The documentary stamp on every b. Housing and Urban Development
mortgage or pledge of real estate is: Coordinating Council
(2021) c. Home Insurance Guarantee Corporation
a. P40.00 for the 1st P5,000.00 plus d. Department of Human Settlement and
P20.00 for every P5,000.00 thereafter Urban Development
b. P10.00 for every P5,000.00 or fraction e. National Housing Authority
thereof 47. In the absence of any provision in the master
c. P15.00 for every P5,000.00 or fraction deed of a condominium project, the interest
thereof of the unit o owners in the common areas
d. P2.00 on each P200.00 or fraction thereof shall be:
e. None of the above a. Proportionate
42. In case of sale of agricultural lands not b. Decided by the condominium corporation
exceeding five (5) hectares, aside from c. Based on Value
clearance from DAR, buyer must also d. None of the above
submit what document? e. Equal
48. Urban Development and Housing Act:
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 a. R.A. 7279 a. Local Government e. National Housing
b. R.A. 9279 Authority
c. R.A. 7927 b. Housing and Urban Development
d. R.A. 7972 Coordinating Council
e. None of the above c. Department of Human Settlement and
49. Condominium Act: Urban Development
a. R.A. 4727 d. Land Registration Authority
b. R.A. 4276 57. Under the local government code, the
c. R.A. 2774 appraisal of the fair market value of real
d. R.A. 4726 property shall be based on
e. None of the above a. actual use
50. Document to be b. independent appraisal value
checked before c. declaration of lot owner
buying a subdivision d. assessed value
lot: 58. When to pay Estate tax if the case is settled
a. Development judicially
permit a. Not exceeding 2 years
b. Map b. not exceeding 10 years
c. License to sell c. Not exceeding 3 years
d. None of the above d. Not exceeding 5 years
e. Bureau of Land approval e. Not exceeding 4 years
51. Sometimes referred to as vertical 59. When to pay Estate tax
subdivision: if the case is settled
a. Row Houses extra judicially
b. Mansion a. Not exceeding 2
c. Town Houses years
d. None of the above b. not exceeding 10
e. Condominium years
52. Subdivision and c. Not exceeding 3 years
Condominium Buyers d. Not exceeding 5 years
Protective Decree: e. Not exceeding 4 years
a. P.D. 1216
b. P.D. 957 60. It is the introduction of harmful substance or
c. B.P. 220 by products into the environment
d. None of the above a. Degradation
e. P.D. 1981 b. Pollution
53. The area reserved for roads, alleys and open c. Solid waste
spaces in a subdivision project with an area d. Contamination
of one hectare or more is: e. Discharge
a. 20% of gross area 61. It is a certification issued by the EMB
b. 25% of gross area certifying that based on the submitted project
c. 30% of gross area description, the project is not covered by the
d. 35% of gross area EIS system and is not required to secure an
e. None of the above ECC
54. For a space to be considered a condominium a. Environmental compliance certificate
unit, it must: b. Feasibility study
a. be encompassed by interior surface of c. Project impact study
walls, floors and ceilings d. Environmental impact study
b. be managed by a condominium e. certificate of non coverage
corporation 62. what is EMB under the bureau of DENR
c. be susceptible of independent use and a. Ecosystem Management bureau
ownership b. Environmental Management Bureau
d. be unencumbered by any restriction c. External Management bureau
e. at least five storeys high d. Environmentally Management Bureau
55. In mixed use condominium project, the e. Ecology Management bureau
master deed may be amended by simple 63. Under HDMF circular 189-C, a qualified
majority of unit owners. Majority is based on: Pagibig member can purchase residential lot
a. Number of condominium units not exceeding
b. Floor area of ownership a. 500 sq.m.
c. Total area of condominium units b. 1,000 sq.m.
d. Any of the above c. 750 sq.m.
e. None of the above d. 1,500 sq.m.
56. Amendment to the master deed of a e. 250 sq.m.
condominium project approved by majority 64. Maximum amount of loan available under
of registered owners also need to be Unified Home Lending Program
approved by the city engineer and: a. 250,000.00
b. 375,000.00
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 c. 200,000.00 c. real estate investment trust
d. 500,000.00 d. real estate investment corporation
e. 300,000.00 e. Philippine stock exchange
65. Zero Assessment level refers to an 72. The Real estate investment trust act
assessment of all building whose market a. RA 9856
value does not exceed-_______ which are b. RA 9886
exempted from payment of real property c. RA 9865
taxes d. RA 9646
a. 75,000.00 e. RA 9586
b. 175,000.00 73. A real estate investment trust is a
c. 125,000.00 a. a public company
d. 275,000.00 b. upon and after listing, have at least 1,000
e. 150,000.00 public shareholders
66. How often does the real property c. maintain as a listed company in sec/pse
assessment be revised by the City/ Municipal d. nota
assessor e. all of the above
a. every year 74. Real estate investment trust must distribute
b. 7 years annually at least ______ of its distributable
c. 3 years income as dividends to its shareholder
d. 5 years a. 50%
e. 10 years b. 20%
67. A tax imposed on the sale, donation, barter c. 75%
or any other mode of transferring real d. 90%
property ownership or title e. 40%
a. simple fee/tax 75. The price or value of property agreed upon
b. registration fee the seller who is not is compelled to sell and
c. filing fee/tax a buyer who is not compelled to buy, both
d. excise tax knowing all material facts relative to the
e. transfer fee/tax property and the transaction
68. Who is the chairman of LBAA or a. appraised value
Local board of assessment b. assessed value
Appeal c. economic value
a. Provincial auditor d. fair market value
b. Register of Deeds e. zonal value
c. City Treasurer 76. The sale of or transfer of real property to real
d. Fiscal estate investment trust, which includes the
e. City Assessor sale or transfer of any and all security
69. Tax interest thereto, shall be subject to.
imposed on a. 25% of the applicable DST
every citizen b. 10% of the applicable DST
of the c. 75% of the applicable DST
Philippines d. 50% of the applicable DST
a. excise 77. Income payment to real estate investment
tax trust shall be subject to a lower creditable
b. Real withholding tax of
property a. 5%
tax b. 1%
c. documentary tax c. 10%
d. Ad valorem tax d. 7.5%
e. Community tax e. 2%
70. All real estate broker and private appraiser 78. Real estate investment trust may only invest
shall be required to post a professional in
indemnity insurance/cash or surety bond, in a. REAL ESTATE RELATED ASSET
an amount with no less than_____, without b. DEBTS SECURITIES, MANAGE FUNDS
prejudice to additional requirement of the AND LISTED SHARES ISSUED BY
client. It will be renewable every 3 years. LOCAL OR FOREIGN NON PROPERTY
a. 2,000 pesos CORPORATIONS
b. 15,000 pesos c. REAL ESTATE LOCATED IN THE
c. 5,000 pesos PHILS
d. 20,000 pesos d. GOVERNMENT SECURITIES ISSUED
e. 10,000 pesos IN BEHALF OF THE GRP OR THE
71. a stock corporation established principally for GOVERNMENT OF THE OTHER
the purpose of owning income generating COUNTRIES AND SECURITIES ISSUED
real estate assets BY MULTILATERAL AGENCIES
a. real estate trust e. ALL OF THE ABOVE
b. real estate company 79. Transfer of awarded lands from CARP is
prohibited for a period of
5
 a. 5 years 87. Which of the following types of property is
b. 8 years subject to ad valorem taxation?
c. 20 years a. property owned by a religious
d. 15 years organization and used for a religious
e. 10 years purpose
80. PD 1517 or Urban Land Reform Law an area b. new industrial plants that state and
considered urban when it has a population local governments have induced,
density of at least an area of. with tax exemption as an incentive,
a. 1,000 resident per sq.km. and at least to locate within their jurisdictions
25% of active resident engage in non c. commercial buildings leased in part by
agricultural activities nonprofit foundations
b. 1,000 resident per sq.km. and at least d. state colleges and universities
50% of active resident engage in non e. a state capitol
agricultural activities 88. A person owning less than the entire bundle
c. 1,500 resident per sq.km. and at least of rights has
50% of active resident engage in non a. escheat
agricultural activities b. personal property
d. 2,000 resident per sq.km. and at least c. a fee simple title
70% of active resident engage in non d. a fee tail
agricultural activities e. a partial interest
e. 1,000 resident per sq.m. and at least 25% 89. A metes and bounds description begins
of active resident engage in non and ends with the
agricultural activities a. street and house number
b. grid coordinates
SET 2 REA MOCK EXAM c. block number
d. iron pin
81. In economics, the four factors of production e. point of beginning
are 90. A (n) ____ identifies a property in such a way
a. land, labor, capital, and improvements that it CANNOT be confused with any other
b. land, labor, capital and property.
entrepreneurship a. coded map book
c. land, labor, capital and money b. full city survey
d. land, improvements, labor and materials c. legal description
e. land, labor, site, and improvements d. engineering report
82. The law of supply and demand is e. narrative appraisal
a. basic economic principle 91. All of the following statements are true
b. legislated by Congress EXCEPT
c. seldom used in the appraisal process a. REAL PROPERTY IS A TYPE OF
d. not a applicable in the short term SERVICE
e. all of the above b. VALUE IS DEPENDENT ON MARKET
83. Which of the is NOT an agent of production? CONDITIONS
a. land c. A GOOD OR SERVICE HAS NO VALUE
b. capital IN EXCHANGE UNLESS IT
c. transportation POSSESSES CERTAIN ECONOMIC
d. entrepreneurship AND LEGAL CHARACTERISTICS
e. labor d. THE PRICE REPRESENTING VALUE IS
84. Political forces affecting value may include USUALLY QUOTED IN TERMS OF
a. life-styles and living standards MONEY
b. topography e. REAL ESTATE MAY BE SOLD FOR
c. athletic levels and recreation facilities ALL CASH OR FINANCING
d. government spending and taxation ARRANGED
policy 92. All of the following will affect the
e. primary registration and turnout market value of a property
85. What are the two categories of tangible EXCEPT
property? a. POLITICAL FACTORS
a. real property and personal property b. LEGAL USE RESTRICTION
b. intangible property and real property c. ACQUISITION COST TO PRESENT
c. real estate and intangible property OWNER
d. legal and illegal investments d. ECONOMIC FACTORS
e. open and shut transactions e. SOCIAL CONCERNS
86. Zoning is an exercise of the 93. Market value is ____ the same as selling
a. equity courts price.
b. police powers a. always
c. Environmental Protection Agency b. usually
d. Right of condemnation c. never
e. Right of escheat d. none of the above
e. sometimes
6
94. Price is 102. In analyzing the economic environment and
a. market value market area, it is best to
b. a historical fact a. start at the general level and work
c. most probable sales price down to the specific
d. all of the above b. start at the specific and work up to the
e. investment value general level
95. Functional utility depends on c. limit the analysis to the national level
a. zoning d. generally consider traffic flow
b. wear and tear on the structure 103. Which of the following reports is usually NOT
c. tastes and standards prepared by a real estate appraiser?
d. age of the equipment a. marketability study
e. insurance requirements b. economic study
96. Value in use is c. feasibility study
a. subjective d. transportation network study
b. objective e. valuation study
c. readily measurable 104. An appraisal of a specific-purpose for
d. a market phenomenon insurance purpose would depend most
e. synonymous with market price heavily on
97. The value added to total property value by a a. book value
particular component is an example of the b. highest and best use
principle of c. cost estimate
a. substitution d. specialty value
b. contribution e. land value
c. anticipation 105. The first step in the appraisal process is to
d. conformity a. define the problem to be solved
e. change b. gather relevant data
98. The concept that the value of a particular c. analyze the data
components is measure by the amount that d. inspect the property
its absence would detract from the value of e. set the fee to be charged
the whole is 106. An appraisal is
a. opportunity cost a. an estimate of net
b. contribution realizable value
c. substitution b. always concerned
d. conformity with the market value
e. competition c. an appraiser’s
99. The market loss cause by depreciation in opinion of market
an older structure may be offset by all of value
the following EXCEPT d. a precise statement of value
a. architectural interest e. a broker’s comparative sales analysis
b. historical registration with further detail
c. strong demand relative to supply 107. The “as of” date in an appraisal report is
d. strong supply relative to demand a. the date to which the value applies
e. renovation of the structure b. immaterial to the value estimate
a. S c. the date on which the report is delivered
b. to pass the real estate broker’s license d. the date on which the property will be
examination conveyed
c. to understand other real estate courses e. the anticipated closing date
d. to communicate with appraisers 108. Sales data descriptions of an appraisal
e. all of the above report contain
100. A dramatic change in short-term demand for a. details about each comparable sale
real estate in the local market is likely to b. an analysis of the date, using the value
immediately precipitate approaches
a. construction c. the investigation of market forces
b. activity d. analysis of the street each comparable
c. price changes property is on
d. no change in supply e. zoning details
e. conversions 109. All of the following are ways to delineate a
101. The area and community analysis section of neighborhood EXCEPT
an appraisal report a. natural barriers
a. should “sell” the community b. streets
b. should describe the community c. UTILITY SERVICE
objectively d. income characteristics
c. is a study by the estate’s industrial e. political boundaries
development commission 110. All of the following are sources of
d. considers the negative aspects only comparable sales EXCEPT
e. considers the positive aspects only

7
 a. public records 118. The form of an appraisal report
b. mortgage services a. has no influence on the appraisal
c. brokers process
d. appraisers b. is the same, regardless of the problem
e. buyers and sellers c. is set by the amount of the fee
111. Which of the following criteria most d. is determined by the appraiser
completely define “highest and best use”? e. determines the appraisal framework
a. legally authorized, politically viable, 119. The effective age and the useful life of a
and socially acceptable building represent judgments made by the
b. physically possible, comparable to other a. appraiser
uses in the neighborhood, and legally b. buyer
authorized c. property owner
c. physically possible, legally d. insurer
permissible, financially feasible, and e. tax assessor
generating a higher present land value 120. The period over which existing improvements
than any other use are expected to continue to contribute to
d. comparable to other uses in the property value is their
neighborhood, physically possible, and a. effective age
generating a higher present land value b. period of diminishing returns
than any other use c. remaining economic life
e. the tallest and most beautiful structure d. chronological age
that can be placed on land e. remaining physical life
112. The three basic approaches used to estimate 121. For a building, effective age is best defined
value are as
a. use, exclusion, and disposition a. the average age of the roof
b. cost, sales comparison, and use b. the actual age divided by the age-life
c. cost, sales comparison, and market data c. the age of other property in equivalent
d. cost, sales comparison, and production condition and utility the chronological
e. cost, sales comparison, and income age of the building
capitalization d. the chronological age of the building
113. Units of comparison are used in e. the period over which the building may be
a. only the sales comparison approach effectively used
b. only the cost approach 122. The utility of real estate is its
c. only the income capitalization approach a. attractiveness to the trained observer
d. A, B and C b. longevity
e. the appraisal of special-purpose c. capacity to satisfy human needs and
properties only desires
114. When reconciling the adjusted sales prices d. effective demand
of comparables, the greatest emphasis e. remaining economic life
should be given to 123. In appraising a residence, adjustments are
a. the average NOT made to the comparable property for
b. the median a. age
c. the mode b. terms of sale
d. the mean of A, B, and C c. lot value
e. none of the above d. size
115. Which of the following forms of appraisal e. ASSESSED VALUATION
report is NOT recommended? 124. When a site has improvements on it, the
a. completely filled-in institutional form highest and best use
b. telephone conversation a. is not definable
c. letter report b. is its existing use
d. long narrative report c. is its potential use
e. demonstration d. depends on whether or not the existing
116. Which of the following approaches would use is changeable
probably be given the most weight in e. MAY BE DIFFERENT FROM ITS
appraising a large office building? EXISTING USE
a. reproduction cost 125. To be considered as a comparable, a
b. income capitalization property
c. subdivision development a. a must have been sold within the past 5
d. market absorption years
e. replacement cost b. must be competitive with the subject
117. The form in which a formal appraisal is c. must have been sold by an open-market
presented is called transaction
a. a presentation of value d. must be a similar color
b. a value certification e. both B and C
c. an appraisal log 126. The direct sales comparison approach is
d. a narrative better than the income or cost approach
e. an appraisal report because
8
 a. FEWER COMPARABLE PROPERTIES a. +P8,850
ARE REQUIRE, SO IT IS EASIER TO b. +P4,425
OUTLINE THE RESULTS TO CLIENTS c. - 8,850
b. THERE ARE FEWER MATHEMATICAL d. - 4,425
CALCULATIONS, SO THERE IS LESS e. 0
CHANCE OF MATHEMATICAL ERRORS 133. What is the garage adjustment for
c. THE MARKET FOR REAL ESTATE IS Comparable 2?
SLOW TO CHANGE a. 0
d. IT IS ALWAYS EASIER TO OBTAIN b. +P3,000
DATA FOR THE DIRECT SALES c. - 1,500
COMPARISON APPROACH d. - 3,000
e. NONE OF THE ABOVE TRUE e. - 1,500
127. The appraisal of an established 20-year old 134. What is the garage adjustment for
motel on a road with numerous competitive Comparable 3?
motels would most likely be based on the a. + 3,000
a. square foot are of improvements b. +1,500
b. number of units c. -3,000
c. reproduction cost d. -1,500
d. gross rent multiplier e. 0
e. occupancy rate 135. In estimating the market value of a
128. In applying gross rent multiplier analysis to comparable sale, an appraiser must consider
the subject property, the appraiser would use all of the following EXCEPT
the a. whether the transaction was made in
a. market rental cash, terms equivalent to cash, or other
b. actual rent being paid precisely revealed terms
c. rent currently asked by the owner b. whether the property had reasonable
d. rent offered by a potential tenant exposure in a competitive market
e. rent listed in advertising the property 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
136. The terms financing, whether good or
bad,
Other Adjustments: Each square foot of a. have no effect on the market price
livable area is judged to be worth 30; b. HAVE NO EFFECT ON THE MARKET
condition grades are fair, good, and excellent VALUE
, with each difference in condition grade c. have no effect on affordability
worth 5%; a two-care garage is judged to be d. depend on fiscal and monetary policy
worth 1,500 more than a one-car garage. e. should be ignored when adjusting
comparables
129. What is the size adjustment for 137. Adjustments to the property rights
Comparable 1? conveyed, financing, conditions of sale,
a. +1,500 date of sale, and location are often made
b. +3,000 to the ____ of the comparable property.
c. - 1,500 a. unit price
d. - 3,000 (90,000 – 87,000) b. ACTUAL SALES PRICE
e. 0 c. price per square foot
130. What is the size adjustment for d. gross income multiplier
Comparable 2? e. cash equivalent value
a. +1,500 (88,500 – 87,000) 138. Cumulative percentage adjustments may
b. + 3,000 be used
c. - 1,500 a. WHEN THE CHARACTERISTICS ARE
d. - 3,000 INTERDEPENDENT
e. 0 b. when the characteristics are independent
131. What is the condition adjustment for c. when dollar figures are available
Comparable 1? d. when unimproved properties are being
a. +9,000 appraised
b. +4,500 e. under no circumstances
c. -9,000 139. The best unit of comparison for vacant
d. 4,500 land is
e. 0 a. the square foot
132. What is the condition adjustment for b. the total lot
Comparable 2?
9
 c. a combination of square foot and front 146. In analyzing obsolescence , the test of
foot units curability of a component in a building is
d. the linear foot whether the cost to cure is no greater than
e. THE UNIT CONSIDERED IMPORTANT the
BY THE MARKET a. EXPECTED INCREASE IN VALUE
140. You are asked to appraise a vacant building b. reproduction cost new
lot. The neighborhood is about 75% built-up. c. replacement cost
Most lots in the area are from 55 ft. to 85 ft. d. installation cost
to 65 ft. wide; the lot under appraisal is 60 ft. e. economic life of the new component
Comparable sales indicate that lots are 147. Which of the following is NOT a type of
selling at 120 to 150 per front foot. What is a depreciation?
good estimate of the price range for this lot? a. ENTREPRENEURIAL LOSS
a. 9,000-11,000 b. functional obsolescence
b. 7,200-9,000 c. external obsolescence
c. 5,400-6,750 d. economic obsolescence
d. 6,600-7,600 e. physical deterioration
e. 6,600-11,250 148. Estimation of occurred depreciation and
obsolescence does NOT involve
Solution a. physical deterioration
60(120 – 150) b. functional obsolescence
c. economic obsolescence
141. In appraising a residential property by the d. wear and tear
cost appraiser considers the e. financial structure
a. sales prices of comparable properties 149. In appraisal, accrued depreciation is really
b. deprecation of the land an estimate of
c. DEPRECIATION OF IMPROVEMENTS a. physical deterioration
d. potential for new competition b. capital recovery
e. potential misuse of this approach c. diminished utility
142. In the cost approach, ____ is deducted after d. sinking fund factor
estimating the cost to reproduce an existing e. book depreciation
structure. 150. The cost approach NOT useful for
a. land cost a. checking value approaches
b. cash equivalence b. appraising institutional or special-use
c. cost to maturity properties
d. legal factors c. ESTIMATING THE VALUE OF NEW
e. DEPRECIATION PROPERTY
143. Economic obsolescence does NOT result d. appraising older homes in an active
from market
a. and outdate kitchen e. insurance appraisals
b. construction of a freeway near the 151. How much is curable physical
property deterioration?
c. the presence of an earthquake fault a. 250
nearby b. 2,500
d. BUILDING RESTRICTIONS IN THE c. 750
COMMUNITY d. 1,000 (750 + 250)
e. factors external to the subject property e. none of the above
itself 152. How much is functional obsolescence?
144. Reproduction or replacement cost includes a. 250
all of the following EXCEPT b. 6,500 (4000 + 2500)
a. AN OUTDATED KITCHEN c. 750
b. CONSTRUCTION OF A FREEWAY d. 4,000
NEAR THE PROPERTY e. 1,200
c. THE PRESENCE OF AN EARTHQUAKE 153. How much is environmental obsolescence?
FAULT NEARBY a. 250
d. BUILDING RESTRICTIONS IN THE b. 2,500
COMMUNITY c. 750
e. FACTORS EXTERNAL TO THE d. 4,000
SUBJECT PROPERTY ITSELF e. 1,200 (External Obsolescence)
145. Reproduction or replacement cost includes 154. An appraisal of a freestanding store and the
all of the following EXCEPT land it occupies is an unbiased estimate of
a. DIRECT OR HARD COSTS the value of an interest in
b. INDIRECT OR SOFT COSTS a. personal property
c. ENTREPRENEURIAL PROFIT b. mortgages
d. FIXED AND VARIABLE EXPENSES OF c. real estate
OPERATIONS d. personal property and land
e. ELEVATOR SHAFTS e. real estate plus business value

10
155. 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
156. 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
157. 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
158. 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
159. 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 (50K × 1.155)
b. 37,500
c. 87,500
d. 7,500
e. 57,500
160. 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. 600,000
e. none of the above
Solution
PV = FV/S = 1M/1.154 = 572,000
161. 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
162. 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
163. 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
164. The land on which a 10-year-old house is
located is valued at P28,000, and the
reproduction cost of the dwelling is P92,000.
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. P96,000
b. P117,700
c. P101,600
d. P120,000
e. P117,000
2% × 10 × 92,000 = 18,400
92,000 – 18,400 – 28,000 = 101,600
165. Effective gross income is income after an
allowance for
a. depreciation
b. both A and B
c. operating expenses
d. none of the above
e. cash expenditures
166. 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
167. 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
168. 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
11
169. A 200-unit apartment complex includes 80 e. 4%
one-bedroom units that rent for 475 and 120 177. In a high-rise, 100-unit apartment building
two-bedroom units that rent for 575 monthly. there is a basement laundry area that brings
The vacancy rate is 5%; miscellaneous in 100 monthly from the concessionaire. The
income is 5,000 annually. Operating laundry income is
expenses amount to 400,000. The mortgage a. included, as miscellaneous income, in
loan requires annual payments of 630,000. potential gross income
Potential gross income is b. included, as other income, in effective
a. 1,289,000 gross income
b. 107,000 c. deducted from effective gross income
c. 1,284,000 d. added to before-tax cash flow
d. none of the above e. distributed to the maintenance workers
e. 112,000
170. Effective gross income is SET 1 MOCK EXAM REA
a. 1,224,800
b. P107,000 178. The present and future demand for a
c. 1,220,000 property and its absorption rate is considered
d. none of the above in a
e. 824,800 a. letter in appraisal
171. Net operating income is b. market feasibility study
a. 1,224,800 c. market segmentation
b. 424,800 d. highest and best used analysis
c. 1,220,000 e. transmittal letter
d. none of the above 179. The appraiser final estimate should be based
e. 824,800 on
172. Before-tax cash flow is a. average of three value indications
a. 1,030,000 obtained by three approaches
b. 194,800 b. weighing of the reliability of the
c. 824,800 information analyzed in each of the
d. none of the above three approaches
e. 424,800 c. the most sophisticated guess technique
173. To obtain the present value of a series of d. adjustment for most recent indicators in
incomes, a (n) ____ rate is applied. the local market
a. discount 180. the appropriate time adjustment is concluded
b. equity capitalization to be an increase of 7% per year
c. income (E) stated compounded. The time adjustment for a
d. overall capitalization comparable sales property that should for
174. A fast-food chain could buy the building and 80,000.00 two years ago.
land necessary for a new outlet for 200,000. a. 11,529
Instead, an investor bought the property for b. 11,200
this amount and lease it for 2,000 per month c. 9,200
over a 20-year term. Rent is payable at the d. 91,592
end of each month. What yield to maturity is e. 5,600
implied by the lease, assuming that, at the 181. the criteria for determining the highest and
end of 20 years, the property is still worth best used include all of the following
about P200,000? EXCEPT
a. 8% a. physical possibility
b. 14% b. probable use
c. 10% c. financial feasibility
d. 15% d. effect on community welfare
e. 12% e. legal permissibility
175. When market rent is less than contract 182. the broad forces affecting value do not
rent, the difference is known as include
a. overage rent a. physical
b. gross rent b. social
c. excess rent c. life cycle
d. slippage rent d. economic
e. percentage rent e. political
176. If a particular buyer requires as recapture of 183. the certification of value section of an
the building portion of the purchase price in appraisal report states everything EXCEPT
25 years, what is the indicated recapture rate that
for the building, assuming straight-line a. the appraiser has no interest in the
recapture? property
a. 0.25% b. the fee is not contingent upon any aspect
b. 20% of the report
c. 2% c. the facts are correct to the best of the
d. 25% appraiser knowledge
12
 d. last year the property was appraised
by the another person
e. the property was personally inspected by
the appraiser
184. 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
185. 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
186. 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 nontypical
property to appraisal practice
187. real estate in a submarket is
a. a group of sales 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
188. the fact that rents for equally desirable
space tend to be set by the market reflects
the principle of
a. balance
b. substitution
c. externalities
d. consistent used
e. conformity
189. 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
190. the last step in the appraisal report is to
a. write the report
b. reconcile all data
c. analyze the data
d. inspect the property
e. set the fee to be charge
191. the form of which a formal appraisal is
presented is called
a. a presentation of value
b. an appraisal log
c. an appraisal report
d. a value certification
e. a narrative report
192. a formal appraisal must include the
a. date of value estimate
b. signature of the appraiser
c. identification of property appraised
d. certification
e. all of the above
193. the highest and best used of land as if vacant
forms part of the basis for
a. mortgage-equity analysis
b. property rights adjustment
c. an operating expense estimate
d. the cost approach
e. the square footage practice
194. identifying and studying submarkets of a
larger market is called
a. market research
b. market survey
c. market agglomeration
d. market segmentation
e. market data
195. the identification and study of a pertinent
market is called
a. market analysis
b. neighborhood review
c. property research
d. market reflection
e. market interaction
196. which of the following is important for good
appraisal communication
a. word choice
b. reading level
c. grammatical correctness
d. clarity
e. all of the above
197. all of the following are true except
a. real property is a type of service
b. value is dependent on market condition
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
financed
198. in estimating the market value of 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
13
 d. Whether the replacement cost of the c. the as of date of appraisal
property corresponds to its market d. anticipated loan to value ratio for the
value subject property
e. Whether the seller was related to the e. similar to the principle of substitution
buyer 207. the principle of_______states that the value
199. in preparing the appraisal report, levels are sustained when the various
your analysis concludes that one elements in an economic or environmental
of the approaches to value is not mix are in equilibrium
applicable to this particular case. a. anticipation
You should b. equivalence
a. omit the approach all together c. substitution
b. base the approach on hypothetical data d. balance
c. state that the approach is not relevant e. highest and best used
d. state that the approach is not 208. price and value are
applicable, explain the reason for this a. not necessarily the same
contention b. synonymous
e. find another approach so as to include c. different, depending on financing terms
three approaches d. almost the same in an active market
200. in the cost approach the site is valued as if it e. interchangeably in a report
were 209. the purpose of a ____ is to
a. vacant and available for development analyzed a property potential for
to its highest and best use success
b. improved and suited for its intended use a. feasibility study
or development b. marketability study
c. developed and operating c. market segmentation study
d. attractively landscape d. appraisal report
e. without nearby utilities e. need study
201. investment value is best describe as 210. a use must be_____ to be considered as a
a. market price possible alternative for highest and best used
b. market value a. physically and legally possible and
c. the cost of acquiring a competitive financially feasible
substitute property with the same utility b. physically and legally possible
d. the present worth of anticipated future c. Already in existence and legal
benefits to a certain entity d. Physically possible and appropriate
e. value in exchange e. Legal and profitable
202. location decision involve analysis on which 211. an appraiser
three level a. determines the price
a. general, specific, detailed b. defends value
b. country, state, community c. estimates price
c. residential, commercial, industrial d. estimates value
d. country, state, county e. determines value
e. region, neighborhood, site 212. the objective of the appraisal should be
203. the length of a tract of land along a street is stated in the report
called a. the market needs it
a. depth b. it define the problems and identifies
b. width the value sought
c. frontage c. it identifies the function of the report
d. abutment d. it absolves the appraiser of liability
e. lineage e. there are too many definitions of market
204. the most comprehensive type of appraisal price
report is 213. the value estimate provided in an appraisal
a. form report a. changes with the use to which it is put
b. oral report b. changes with the function of the appraisal
c. letter report c. remains the same regardless of use
d. narrative demonstration report d. depends upon the use or function of the
e. unbiased report appraisal
205. the principle of ______states that buyer e. always reflects market value
will not pay more for the a site than for 214. population increases______demand for
another equally desirable one housing
a. anticipation a. depress the
b. imbalance b. are incapable of simulating the
c. substitution c. have no effect on the
d. balance d. are likely to create a
e. conformity e. are determined by the
206. the principle of anticipation is 215. environment hazards that an appraiser
a. future oriented must be conscious of include all of the
b. past oriented following except
14
 a. asbestos a. inconsiderate
b. radon b. unethical
c. drano c. illegal
d. urea formaldehyde d. ethical
e. PVC e. questionable
216. In analyzing the environment and market 225. it is_________to provide a value range to a
area, it is best to client who request it and understand its
a. start at the general level and work meaning and use.
down to the specific a. foolish
b. start at the specific and work up to the b. appropriate
general level c. un ethical
c. limit the analysis to the national level d. approximate
d. limit the analysis to the local level e. difficult
e. generally consider the traffic flow 226. any recent sale of a subject property being
217. the first step in general process is to appraised
a. define the problem a. should be considered confidential
b. gather data b. cannot, under any circumstances, be
c. analyze data considered in estimating the current
d. determine the approaches to value market value of the property
e. make a final value estimate c. should be discussed in appraisal
218. combining to or more sites in order to report
develop one site with a greater value than d. was not an arms length sale
the individual sites have separately called e. should be used as comparable sale,
a. synergy though adjusted for its time and terms
b. plottage 227. the dimensions of a
c. surplus land warehouse are customarily
d. excess land measured from
e. highest and best use of land a. a roof line
219. assemblage is b. the midpoint of exterior wall
a. always reflect in the market value c. the inside of finished wall
b. the act of bringing to or more smaller d. the outside of finished wall
lots into common ownership for use e. be reasonable or appropriate
c. inappropriate for parcels two or more 228. the construction of a luxury home in a
hectares neighborhood almost completely developed
d. uneconomical with one and two bedroom apartments
e. illegal would
220. typically, land is appraised by the a. produce external obsolescence
a. square foot b. be called an under improvement
b. front foot acre c. results in plottage value
c. all of the above d. results in neighborhood amenities
d. none of the above e. be reasonable or appropriate
221. it is_________for an appraiser to 229. the most detailed, complex, costly and time
receive or pay finders or referral consuming method of cost estimation is the
fees a. quantity survey
a. reasonable b. trade breakdown
b. unethical c. comparative unit
c. necessary d. unit in place
d. customary e. comparable unit
e. convenient 230. An improvements remaining economic life
222. a sale between relatives is considered a. it is chronological stage
a. an arms length transaction b. it is effective age
b. a purely comparable sale c. is the period over which the
c. an open market sale improvements are expected to
d. a distorted sale generate benefits
e. a good deal d. is effective age minus chronological age
223. What of the following is true about zoning e. effective age ;us chronological age
a. it reflects the expectation that government 231. the cost approach most applicable when the
will preserve property values property being appraise
b. it is based on the right of government a. has old improvement
to regulate for health, moral, welfare b. has relative new improvements that
and safety represent the highest and best use of
c. it is inappropriate for parcels withed uses the land
d. it represents an effort to establish the c. suffers substantial functional
land highest and best use obsolescence
e. it represent the right to reuse the property d. is more costly than the surroundings
224. for an appraiser to use the assistance of e. has many older features that make
another appraiser is interesting reading in a report
15
232. 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
233. 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
234. 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
235. markets in residential real estate are
a. equivalent to those for securities
b. related to physical boundaries
c. local
d. physically obscure
e. found by courthouse sales
236. inflation tends to increase the value of
a. fixed income securities
b. mortgages
c. deeds in lieu of foreclosure
d. real estate
e. debts
237. Real estate markets
a. are international in scope
b. meet none pf 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
238. The subject property has 85% occupancy.
What conclusion would you most likely draw
if the typical occup0nacy 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.
239. The fact that the value of a property tends
to equal the cost of an equally desirable
substitute is an example of the principle of
a. balance
b. substitution
c. contribution
d. diminishing returns
e. supply and demand
240. Population flow to different regions of the
United States will change primarily because
of
a. changing economic opportunities
b. environmental control legislation
c. rezoning legislation
d. state tax policies
e. air conditioning in the Sunbelt
241. 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. operating expenses
c. net operating income
d. potential gross income
e. occupancy rate
242. 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. 75,000
c. 68,750
d. 61,125
e. 13,750
243. 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
244. The total income anticipated from income
property operations after vacancy and
collection allowances and operating
expenses are deducted is
a. net operating income
b. before-tax cash flow
c. effective gross income
d. potential gross income
e. property residual income
245. Which principle of value best affirms that
value is the present worth of expected future
benefits?
a. supply and demand
b. balance
c. substitution
d. anticipation
e. conformity
246. Which principle of value best affirms that
the maximum value of property generally
cannot exceed the cost of its replacement?
a. increasing and decreasing returns
b. supply and demand
c. substitution
d. balance
e. anticipation
247. Which of the following would be classified
as a tangible rather than an intangible
amenity?
a. pride of ownership
b. a sense of security
c. a free dishwasher
d. work satisfaction
e. clean air
16
248. Which type of property is subject to ad 256. Income capitalization is the term used to
valorem taxation? describe the process of estimating the
a. property owned by a religious value of income property by studying
organization and used for religious expected future income. This process
purpose a. converts the net income of a property
b. new industrial plants that state and local into its equivalent capital value
governments have induced, with tax b. reflects the time value of money by
exemption as an incentive, to locate reducing or discounting future income into
within their jurisdictions its present worth
c. commercial property with more that c. focuses on the present worth of future
50% nonprofit tenants benefits
d. state colleges and universities d. uses markets interest rates
e. a state capitol e. all of the above
249. Compared with other assets, real estate is 257. to earn 12% on your investment, what should
a. immobile you pay for a property earns 6,000.00 per
b. expensive month and has operating expenses of
c. long-lived 1,250.00 per month
d. mortgagable a. 475,000.00
e. all of the above b. 150,000.00
250. All of the following are sources of c. 229,166.00
comparable sales EXCEPT d. 333,333.00
a. public records e. 400,000.00
b. brokers
c. buyers and sellers 6,000 – 1,250 × 12 /12%
d. mortgage servicers
e. appraisers 258. the land development method is used to
251. An allowance for vacancy and collection loss estimate the value of vacant acreage that is
is estimated as a percentage of ready to be subdivided. This method
a. net operating income requires
b. before-tax cash flow a. STUDY OF CURRENT SALES OF
c. effective gross income SUBDIVIDED LOTS
d. potential gross income b. THE PROJECTION OF LAND OF
e. after-tax cash flow SUBDIVIDED LOTS
252. The annual net operating income c. RTC approval
from an apartment house is d. Both A and B
11,000. If a capitalization rate of e. None of the above
11% is used, the indicated market 259. a technique in income capitalization in which
value is the analyst need not distinguish interest rates
a. 126,000 from capital recovery rates, but that is most
b. 176,000 useful for comparable income
c. 100,000 a. DIRECT CAPITALIZATION
d. 242,000 b. building residual
e. 2,420 c. land residual
253. which of the following is true of a gross lease d. bank of investment
a. the tenant pays all operating expense e. internal rate of return
b. the landlord pays all operating 260. cash on cash return is
expense a. the annual cash flow divided by the
c. this lease is used only for commercial equity investment
properties b. an internal rate of return that
d. rent rises with the cost of living represents annual income and all
e. this lease must be drafted by an attorney gains or losses prorated to an effective
254. a forecast using discounted cash flow annual amount
analysis would include c. a percentage or decimal rate that,
a. income, vacancy and operating expense when divided into a periodic income
b. an economic analysis amount, offers a lump-sum capital
c. reversion at the end of the holding period value for income
d. discounting expected future cash flows to d. a value that does not change with time
a present value e. none of the above
e. all of the above 261. Which report is usually NOT prepared by
255. in discounted cash flow analysis, the a real estate appraiser?
reversion to be received at the end of the a. marketability study
holding period is b. economic study
a. a separate cash flow c. feasibility study
b. an annuity in arrears d. MINERAL VALUATION STUDY
c. an ordinary annuity e. highest and best use
d. percentage of annual income 262. Questions 86-89 based on the information
e. amount to be capitalized in perpetuity below.
17
 You are appraising a 40-acre tract of d. 1,284,000
unimproved by a real land. The size is zoned e. Cannot be calculated from the information
for single-family residential use. All utilities given
are available along the street on which the 267. Effective gross income is
land fronts. The engineers who will plat the a. 1,224,800
proposed subdivision told you that 20% of b. 1,220,000
the land area will be used for streets and c. 824,800
sidewalks. Zoning will permit four lots per d. 107,000
acre of net developable land after deducting e. Cannot be calculated from the information
streets. Research indicates that lots similar given
to those that will be available on the subject 268. Net operating income is
land will sell for 18,000 each and that the a. 1,224,800
entire tract can be developed and sold in 1 b. 184,800
year. You find that 40% of the sale price of c. 424,800
each lot must be allocated to selling cost, d. None of the above
overhead, contingencies, carrying cost, and e. Cannot be calculated from the information
developer’s profit, and that 2,000 feet of given
streets (including water, storm sewer, and 269. Before-tax cash flow is
sanitary sewer lines) must be installed at a a. 1,030,000
cost of 80 per foot. b. 184,800
c. 194,800
What is the number of lots to be developed? d. None of the above
a. 40 e. Cannot be calculated from the information
b. 128 given
c. 80 270. Questions 94-97 are based on the following
d. 88 information:
e. 32 A building contains 50 one-bedroom units
263. What is the gross amount that will be and 150 two-bedroom units. The one
realized from the sale of all the lots? bedroom units rent for 550 monthly; two
a. 720,000 bedroom are 675. the vacancy rate is 7%;
b. 2,304,000 operating expenses are estimated at 40% of
c. 1,440,000 effective gross income. There is 2,000.00
d. 1,584,000 annual income for vending machines.
e. 576,000
264. What is the cost of potential gross income is
installing streets, water, a. 64,735
and sewer lines? b. 1,547,000
a. 16,000 c. 1,545,000
b. 32,000 d. 717,425
c. 64,000 e. None of the above
d. 160,000 271. effective gross income is
e. None of the above a. 64,735
265. What is the amount of selling cost, b. 1,547,000
overhead, contingencies, carrying cost, c. 1,545,000
and developer’s profit? d. 1,438,850
a. 921,6000 e. None of the above
b. 576,000 272. Net operating income is
c. 288,000 a. 64,375
d. 633,600 b. 268,970
e. None of the above c. 863,310
266. Questions 90-93 are based on the d. 719,425
information below: e. None of the above
A 100-unit apartment complex includes 40 273. operating expense are
one-bedroom units that rent for 950 and 60 a. 1,545,000
two-bedroom units that rent for 1,150 b. 54,075
monthly. The vacancy rate is 5%; c. 2,000
miscellaneous income is 5,000 annually. d. 719,425
Operating expenses amount to 400,000. The e. 575,540
mortgage loan requires payments of 630,000 274. in one step of the land value residual
annually. technique, the building capitalization rate is
applied to the known building value to
Potential gross income is estimate the
a. 1,289,000 a. highest and best use of the site
b. 112,000 b. cost of the building
c. 107,000 c. income needed to support the land
d. net operating income needed to support
the building
18
 e. land value
275. the basic formula of property
valuation via income
capitalization is
a. V=IR
b. V=I/R
c. V=R/I ?
d. V=SP/GR
e. V=I/F
276. all of the following lease provisions are
advantageous to the lessee EXCEPT
a. an escape clause
b. a renewal option
c. a purchase option
d. an escalation clause
e. none of the above

19
 MOCK EXAM SET-A-1 2. All other factors being equal, as the location
 Appraiser’s /brokers Exam of an income property becomes less
Mock Exam Set B-2 desirable the cap rate used will be
 Appraiser’s /Broker’s Exam a. Lower
Mock Exam Set C-3 b. Higher
 Appraiser’s /Broker Exam Reviewer c. Less reliable
Mock Exam Set D-4 d. Unaffected
 Multiple choice 3. Recapture generally applies to
 MULTIPLE CHOICE a. WASTING ASSETS, SUCH AS
 APPRAISER’S/BROKER’S EXAM BUILDINGS
REVIEWER b. Non-wasting assets, such as land
EXAM SET E -3 (PAST EXAMS) c. Both a and b
 APPRAISER/BROKERS’ EXAM d. Neither a nor b
REVIEWER 4. In the land residual technique, the
MOCK EXAM SET F appraiser starts with an assumption of.
 Appraiser’s/Broker’s Exam: Reviewer a. Replacement cost
(Financing) b. Building value
Mock Exam Set G-3 c. Net capitalization
 Appraiser’s/Broker Exam Reviewer d. Land value
Mock Exam Set H 5. In the building residual technique, the
Censing Rules and Regulations appraiser starts with an assumption of
 REAL ESTATE LAWS a. Replacement cost
 URBAN AND RURAL LAND USE b. Building value
OWNERSHIP CARP c. Net capitalization
 APPRAISER’S /BROKER’SEXAM d. Land value
REVIEWER 6. The cash on cash rate is the same as the
MOCK EXAM SET I a. Yield capitalization rate
 APPRAISER’S/BROKER EXAM: b. EQUITY DIVIDED RATE
REVIEWER c. Overall capitalization rate
MOCK EXAM SET J (ECONOMICS) d. Break-even point
 MOCK EXAM ON PATENTS/AGRARIAN 7. Name the two component rates that are
REFORM inherent in every capitalization rate
 BUSLAW 1. OBLIGATIONS AND a. Investors rate
CONTRACTS WITH REAL PROPERTY b. Leased rate
LAWS c. Interest and recapture rates
MULTIPLE CHOICE. WRITE THE LETTER d. Interest and depreciation rates
OF THE CORRECT ANSWER. 8. Under which method are the recapture
 ELECT.2 Real Estate Brokerage installments lowest in the earlier year?
MULTIPLE CHOICE. Choose the letter of a. Annuity
your correct answer. b. Straight-line
 MOCK EXAM. SET O c. Gross income multiplier method
 Mock Exam Set P d. Band of investment method
 ANSWER KEY MOCK EXAM SET Q 9. Under which methods are the installment
 Answer key MOCK EXAM SET Q highest?
 Part I: FUNDAMENTALS OF REAL a. Annuity
ESTATE SERVICES ME Set S- 1.1 100 b. Straight-line
item c. Gross income multiplier method
 MOCK EXAM SET S -1.2 d. Band of investment method
 Part II: special/Technical Knowledge 10. Which recapture method suggests the
Mock Exam S-1.3 100 items greatest reduction in risk?
 MOCK EXAM SET -1.4 a. Annuity-line
 MOCK EXAM SET -1.5 b. Straight-line
 THEORIES AND PRINCIPLES IN c. Gross investment method
APPRAISAL d. Band of investment method
 STANDARDS AND ETHICS 11. Schedule rent (or contract rent) that is
 HUMAN AND PHYSICAL GEOGRAPHY higher than market rent creates
 REAL ESTATE FINANCING a. Overage rent
 LAND MANAGEMENT SYSTEM AND b. Gross rent
REAL PROPERTY LAWS c. Excess rent
d. Escalator rent
MOCK EXAM SET-A-1 12. The amount paid over minimum base rent
in a percentage is
1. Income property investments a. Overage rent
a. Low risk=low cap rate=high value b. Gross rent
b. Low risk=low cap rate=low value c. Excess rent
c. Low risk=low cap rate=low value d. Escalator rent
d. Low risk=low cap rate=high value
20
13. The lease under which the tenant pays a a. 2.143589 (1.108)
fixed rental and the landlord pays all b. 2.357948
expenses of ownership is the c. 1.948717
a. Gross rate lease d. 2.182875
b. Triple net lease 25. Calculate the monthly payment required to
c. Net lease amortize a loan of P270,000 at 9 ½ percent
d. Percentage lease interest for e term of 40 years.
14. An index will be referred to in a (n) a. P221.40
a. Gross lease b. P2,187.17
b. Triple net lease c. P2,403
c. Escalator clause d. P2,214
d. Expenses-stop clause Formula
15. The interest of a sublessee is a PMT = PV × Si/S – 1
a. Leasehold 26. The factor used to find the monthly payment
b. Lease fee required to amortize a loan of P147,000 at 11
c. Subleasehold percent interest over 30 years is
d. Sandwich lease a. .0092
16. Increase in maintenance costs are passed b. .0096
on to tenants under a (n) c. .0100
a. Tax-stop clause d. .0097
b. Expense-stop clause Formula
c. Gross lease Amortizations Factor = Si/S – 1
d. Escalator clause 27. Geography is the scientific study of the
17. The average of all variates is the location of people and activities across the
a. Mean earth’s surface and the reason for
b. Mode their______.
c. Median a. Existence
d. Range b. DISTRIBUTION
18. The center of all variates is the c. Planning
a. Mean d. Space
b. Mode 28. The system used to transfer locations on the
c. Median /Mid range earth’s surface to locations on the map is
d. Range ____.
19. The different between the highest and lowest a. Platting
radiates is the b. Mapping
a. Mean c. Projection
b. Mode d. Survey
c. Median 29. The Greek scholar who invented the word
d. Range Geography is ___.
20. The mean of five house sales prices of a. Hipparchus
P100,000, P75,000,P175,000, P200,000, b. ERATOSTHENES
and P150,000 is c. Ptolemy
a. P140,000 (P700K/5) d. Aristotle
b. P150,000 30. The scientific study of population
c. P700,000 characteristics is ____.
d. P175,000 a. Migration
21. The median of the house sales price in b. Ecumene
question 20 is c. Density
a. P140,000 d. Demography
b. P150,000 31. In economic development, economic factor
c. P700,000 indicators are availability of consumer goods,
d. P175,000 worker productivity, access to raw materials,
22. The aggregate of the house sales prices economic structure and___.
in question 20 is a. Density
a. P140,000 b. GNP
b. P150,000 c. Population
c. P700,000 d. Per capita income
d. P175,000 32. In determine the quality of Life (QOL), it is
23. What is the value in 5 years of an investment based on indicators of socioeconomic
of P7,500 at 10% compounded daily. environment and ______.
a. P20,387 a. PHYSICAL ENVIRONMENT
b. P12,365 b. Planning
c. P12,340 c. Population
d. P12,290 d. Migration
24. To determine the value in 8 years of an 33. Urbanized is a process of becoming from a
investment of P10,000 at 10% compounded state of less concentration to state of___.
annually the applicable factors is a. Threshold
21
 b. More concentration d. None of the above
c. Calamity 41. In regard to zoning, which of the following
d. Divisiveness statement is CORRECT?
34. The two factors considered in relation to a. Zoning ordinances are always more
migration are___. restrictive that deed restrictions
a. Push and pull b. A nonconforming use and variance refer
b. Push and push to the same thing
c. Come and go c. Zoning normally establishes land-use
d. Pull and pull districts and provided for different
35. Geography has relations to other disciplines restriction within each district
and such as biological, physical social, d. Exclusive zoning and spot zoning refers
mathematical and ____. to the same thing
a. Medical 42. A comparable site sold a month ago @
b. CULTURAL P25,000.00 per square meter. Its location is
c. Arts humanities considered 15% superior and its and
d. Botanical topography is 10% inferior to the subject site.
36. _______ concerns with the relationship The time adjustment is 12% per year.
between humans and the physical Determine the adjustment sale price of the
environment. comparable site using straight plus minus
a. Physical density adjustment
b. Physical geography a. P18,250.00 per sqm
c. HUMAN GEOGRAPHY b. P24,000.00 per sqm
d. Human density c. P25,750.00 per sqm
37. A property has 25 apartment units, 15 units d. P26,250.00 per sqm
two bedroom unit renting for P5,000.00 per 43. Building Residential, 4 T&B and 4 car garage
month each and 10 one bedrooms unit residential building was sold for
renting for 2,000.00 per month east. There P20,000,000.00 Using. The rules of thumb of
are 14 two bedroom units occupied and 8 building to land ratio of 3:2 what is the value
one bedroom units occupied. of the building?
The potential gross income yearly is. a. P10,000,000.00
a. P1,000,000.00 b. P11,000,000.00
b. P1,120,000.00 c. P12,000,000.00
c. P1,140,000.00 d. P8,000,000,00
d. P1,150,000.00 44. An appraiser was asked t compute for the
fair market rent per (square meter) of a
15 × 5K × 12 = 900K P500.00 per square meter vacant
10 × 2K × 12 = 240K commercial lot using the following
PGI = 1.14M assumptions
Fair market value of lot per sq.m –P12,00.00
38. If house in your area have increase in value Interest rate -10% p.a
8% during the past year and the average They yearly market rent is:
price of house sold last year was a. P500,000.00
P95,000.00. what is the average price of b. P600,000.00
houses sold today c. P700,000.00
a. P101,000.00 d. P800,000.00
b. P101,500.00 45. If a commercial structure is a rectangle with
a. P102,600.00 (95K × 1.08) sides of 65 meters and 135 and the current
c. P103,000.00 local cost to built a similar structure is
39. An appraisal is last to be made of a three- 4,500/sqm using the square meter method
bedroom house. One comparable with two a. P18,000,000.00
bedrooms sold for P50,000.00. the appraiser b. P180,000,000.00
makes an adjustment of P1,000.00 to the c. P 39,487,500.00 (65 × 135 × 4600)
comparable to account for the difference in d. P36,450,000.00
the number of bedrooms. The adjustment 46. A house and lot are priced at P8,800,000.00.
sales price of the comparable is: the lot alone is valued P1650,000.00. what
a. P49,000.00 percentage of the total asking price is
b. P51,000.00 attributable to the value of the lot?
c. P52,000.00 a. 18.8%
d. P53,000.00 b. 19.0%
40. Which of the following estimated would result c. 18 and ¾ % (1.65M/8.8M)
n a capitalization rate of 4 percent d. 18 and ¼ %
a. Potential gross income P200,000.00; 47. R.A 7279, Sec-18 specifies that developers
value P5,000,000.00 of proposed subdivision projects shall be
b. Effective gross income P200,000.00; required to develop an area for socialized
value P5,000,000.00 housing equivalent to:
c. Net operating income P200,000.00; a. 25% of the total subdivision area
value P5,000,000.00 b. 20% of the net saleable area
22
 c. 20% of the total subdivision area
d. 25% of the cost development.
48. The basic formula for property valuation via
income capitalization is:
a. Value=Income x Rate
b. Value= Income/Rate
c. Value=Rate/Income
d. Value=Selling Price/Income
49. In a property residential capitalization
approach what is the value an improved
property with a net income of P80,000.00 a
year, an interest rate 8% and rate recapture
of 2%?
a. P1,000,000.00
b. P800,000.00 (80K/8%+2%)
c. P840,000.00
d. P850,000.00
50. If houses in your area have increased in
valued 8% during the past years and the
average price of houses sold last year was
P95,000.00. what is the average price
houses sold today?
b. P101,000.00
c. P101,500.00
d. P102,600.00 (95K × 1.08)
e. P103,000.00
51. Assuming four different shapes of a 500
square meters houses which would be the
least expensive to built, assuming the same
materials and quality of construction?
a. A RECTANGLE
b. An L-shape
c. An H-shape
d. A U-shape
52. Assume the following figures:
Annual net income form property -
P100,000.00
Land Value -P200,000.00
Interest rate -8%
Recapture rate (based on the remaining
economic life of 25 years) -4%. What is the
property value indicated by the building
residual technique?
a. P800,000.00
b. P900,000.00
c. P960,000.00
d. P980,000.00
53. Ideally, the appraiser of a residential property
will collect data on comparable property
sales that occurred earlier than:
a. SIX MONTHS PRIOR TO THE DATE OF
APPRAISAL
b. One year prior to the date of appraisal
c. 18 months to the appraisal
d. Two years prior to the date of appraisal
54. Which of the following is an advantage of two
storey houses a single storey house?
a. Stairs
b. LOWER CONSTRUCTION COST PER
SQUARE METER
c. Easier paint maintain error
d. Less to paint and maintain error
55. When a part of a building or an obstruction
physically intrudes, overlaps, or trespasses
the property of another, this is referred to as
an:
a. Assemblage
b. Escheat
c. Easement
d. Encroachment
56. The term real estate is generally used to
refer to the physical land improvements,
whereas the term real property denotes:
a. Machinery and equipment
b. Surface rights only
c. Legal interest and rights inherent in
ownership
d. Air and subsurface rights
57. What is the distinction between the term
market price and market value?
a. Market price is what is the seller asks for,
while market is what the buyer actually
pays
b. Market price is what the property seller
for, while market value is what is what
the sales price should be to typical
buyer
c. Market price is what is currently owned
the property, while market value is what is
bought for
d. Market price is synonyms with
replacement cost, while market value is
the same as assessed value
58. The assessor’s Office is an agency where we
inquire and conduct research on
a. Title verification
b. Certification lot plan
c. Zonal value
d. Cadastral map/tax map
59. An appraisal is best defined as:
a. An unbiased opinion of the quality, value
or utility of an interest in real estate and
related personality
b. An unbiased opinion of the likely price for
which a parcel of real estate would sell at
a given date
c. The process of studying the nature,
quality, or utility of an interest in real
estate in which a value estimate is not
necessarily required
d. The process of developing an opinion
as to market value or other defined
value of a specified interest in a
specified in time
60. Edwin owned a small farm of 1,500 sq.m in
Antipolo. When he died, he had no heirs, no
friends, and no will.
a. The state will take the property and
sell it
b. The land will be in Bob’s name forever
because he died without heir
c. The land will pass to the first person to
occupy the land for seven years (i.e.,
squatter’s rights)
d. The land will pass to the adjacent owner
equally.
61. A 7-years old residence is currently valued at
P720,000. What was the original if it has
appreciated by 60% since it is built?
a. P720,000
b. P450,000
c. P378,000.00
d. P1,152,000.00
23
62. In a soft market a landlord accepted a new
tenant with 60-month lease at P5,000 per
month but gave the new tenant six months
free rent. Using the average rent method,
what is the effective monthly rent?
a. P5,555
b. P4,500 (60×50)0/66)
c. P3,000
d. P5,000
63. An office building recently sold for
Php50,000,000. Given the following
information:
Gross (potential) income: Php10,000,000
Vacancy factor : 8 percent
Expenses :45 percent of effective gross
income
Annual mortgage payment :Php4,125,000
Equity :Php12,500,000
What is the overall rate of return for the
property? What is the pre-tax cash flow?
a. 8.3 percent
b. 10 percent
c. 10.12%
d. 9%
Solution.
10M – 8% - 45% /50Mx100
64. If the subject property is 10% superior to
Comparable Sale no. 1 and the comparable
sold for P1,000,000, what is the indicated
value of the subjected?
a. P1,000,000 x 0.90=P900,000
b. P1,000,000 x 1.10=P1,100,000
c. P1,000,0q00/1.10=P9069,090
d. P1,000,000/0.90=P1,111,111
65. A tenant has a least that states the base rent
is P5,000 per month plus 3% of the sales
above P50,000 in gross sales per month.
The tenant’s sales last year were P850,000.
How much rent was paid last year?
a. P25,500
b. P75,000
c. P60,000
d. P67,500
66. If comparable sale# 1 sold for Php2,000,000
and has two-car garage, adding Php100,000
to the value and the subject property does
not have a garage, the indicated value of the
subject property would be found by:
a. Subtracting Php100,000 from the subject
property
b. Adding Php100,000 to the comparable
sale
c. Subtracting Php100,000 from the
comparable sale
d. Adding Php100,000 to the subject
property
67. A residence has been listed for sale for the
last six months at a price of P1,249,000 and
it has not sold, in this market, the average
marketing period is 45 days for this type for
property.
a. The subject property’s market value could
be higher than the list price
b. The subject property’s market value could
be higher or lower than the list price
c. The subject property’s market value is
less than the list price
d. The subject property’s market value could
be lower than the list price
68. A comparable property sold six months ago
for Php1,250,000. Market investigation
indicates the following:
Location adjustment +5 percent Adjustment
Sequence: Time, Age, Location
Time adjustment +6 perecent P1,250,000 X
1.60 X.93 X 1.05 (round it) =1,293,862.5
Age adjustment +7 percent(dep-ed)
Give the above information, what is the
indicated value based on the comparable
property?
a. Php1,232,250.00
b. Php1,300,000.00
c. Php1,325,000.00
d. Php1,293,860.00
69. A property has an overhead garage door that
is 13 years old. It cost P19,000 to replace
Because the inclement weather comes outs
of the northwest, these doors typically last 15
years if they face the west and 25 years if
they face east. This door faces east. What is
the amount of value left in this item?
a. P9,120.00
b. P9,880.00
c. P16,470.00
d. P2,660.00
13/15 (19,000) = 9,880
19,000 – 9,880 = 9,120.00
70. The area of rectangle with a base of 10
meters length and a length of 20 meters is
a. 250 sq.m
b. 200 sq.m (10×20)
c. 300 sqm.
d. 400 sqm.
71. All of the following statement are true
except:
a. Real property refers to items that are
not permanently fixed to a part of the
real estate
b. Appraising is the art and items that are
not permanently fixed to a part of the
estate
c. Assets value change with time
d. Market change with supply and demand
72. The principle of substitution holds that a
purchaser will pay not more for a property
than
a. The minimum he can afford
b. THE COST OF ACQUIRING AND
EQUALLY DESIRABLE SUBSTITUTE
c. The price of a previously owned property
d. The price of a property with grater utility
73. Which of the following conditions is assumed
in the normal definition of market value
a. The estate value is as of a future date
b. The property will sell promptly
c. Payment will be made in cash or its
equivalent
d. Only the buyer is knowledgeable as to the
potential uses of the property
74. In which market are the there many potential
buyers but few properties available?
a. Demand
b. Buyer’s
24
 c. SELLER’S 85. A 7 years old residential is currently valued
d. Low-price at P720,000. That is the original value f it has
75. To estimate market value, an appraiser appreciated by 60 percent since it was built?
follows the a. P270,000.00
a. Appraiser report b. P378,000.00
b. Valuation process c. P450,000.00 (720K/160%)
c. Evaluation methodology d. P152,000.00
d. Appraisal guidelines 86. ____ includes not only the ground or soil but
76. An appraisal of real estate everything which is attached to the earth
a. Guarantee its value whether by course nature or by man
b. Assure its value a. Land
c. Determine its value b. Building
d. Estimates its value c. Other land improvements
77. In which market is the direct sales d. Real Estate
comparison approach most applicable? 87. This evolution of value theory emphasized
a. Seller’s the relationship of market price and value,
b. Buyer’s normal value under conditions of balance
c. Reasonable supply and demand
d. Active a. Social theory of Mill
78. The legal right to move items such as topsoil b. Cost theory of Adam Smith
or coal from another is known as a/an: c. THEORIES OF AUSTRIAN SCHOOL
a. Easement d. Theories of Physiocrats
b. Profit 88. Under the international valuation standards
c. Escheat (IVSC), two types of values are:
d. EMBLEMENTS/FRUITS a. Fair market value and sound value
79. The process of change the use of a building b. MARKET VALUE AND NON-MARKET
from an apartment complex to a VALUE
condominium form of ownership is normally c. Economic value and market value
referred to as a (n): d. Fair market value and liquidation value
a. CONVERSION 89. Under IVSC, the “C” standards for:
b. Proration a. Corporation
c. Interim use b. COMMITTEE
d. Variance c. Conference
80. Which approach would best when appraising d. Charter
a 15-to-20 years old house? 90. A property with an annual net income of
a. Cost P382,500.00 was recently sold for
b. Sales comparison P4,250,000.00. the remaining economic life
c. Income capitalization of the building is estimated to be 25 years.
d. Replacement cost new les depreciation Linda value is estimated to be P900,000.00.
81. Before reconciliation the appraiser should Based on the data gathered. The overall rate
a. Re-inspect the subject property of the property is:
b. EVALUATION THE RELIABILITY OF a. 8%
EACH APPROACH TO VALUE b. 9% (382,500/4,250,000)(100)
c. Review the over-all appraiser process c. 10%
and check for technical accuracy d. 12%
d. Seek the property owner’s opinion 91. There are various types of appraisal reports.
82. A large home built in an area of small cottage Which of the following step would be the final
is an example of: one taken the appraisal process?
a. Over-improvement a. Narrative report
b. Under-improvement b. Bank form report
c. Land regression c. PERSONAL LETTER OF OPINION
d. Functional obsolescence d. Valuation report
83. The walls between two condominium units 92. A house and lot is period at P7,500,000.00.
are NORMALLY considered to be: the lot alone is valued P2,531,250.00. what
a. Individual unit elements percentage of the total asking price is
b. Common elements attribute to the house?
c. LIMITED COMMON ELEMENTS a. 33 ¾ %
d. Propriety lease elements b. 33 ¼%
84. What would be the indicated value of a c. 66 ¼%
property that rented for P7,500 per month, d. 66 ¾%
using a monthly gross rent multiplier of 110, 93. The value of the property with a monthly net
if the express attributable to the property income of P75,000.00 and with an overall
were P1,250 per month? capitalization rate of 9% is.
a. P756,700.00 a. P833,333.00
b. P825,000.00 (7,500 – 1,250)(12)(110) b. P10,000,000.00
c. P687,500.00 c. P1,000,000.00
d. P611,250.00 d. P900,000.00
25

94. A regression gives information to estimate
monthly rent for apartments:
 Rent=250+(75xRooms)+(50xstudents)
+(25xdistance)=
 Where: 225 × 2 = 1,250
 Rooms is the number of rooms in the
apartment
 Students id the percent of students in the
apartment building (0=- percent)
 Distance is the distance from the periphery
of the campus
 The rent for an apartment with 3 rooms, 100
percent students and 50 meters from
campus would be:
a. Php1,500.00
b. Php1,775.00
c. Php2,500.00
d. Php3,000.00
95. Building value :Php50,000,000.00
Net operating income :Php8,350,000.00
Building capitalization rate :14 percent
Land capitalization rate :9 percent
What is the residual income to the land?
a. Php 1,350,000.00
b. Php 3,850,000.00
c. Php 4,500,000.00
d. Php 70,000,000.00
96. What is the present value of a 40-years net
income of Php 10,000 per year if payments
are in advance and the net income is
discounted at a rate of 12 percent?
a. P82,330.00
b. P82,438,.00
c. P92,210.00
d. P92,330.00
APPRAISER’S /BROKER’S EXAM
MOCK EXAM SET C-3
97. Cost value are MOST likely to be similar
under which of the following conditions?
a. The property is new
b. The property is small
c. The property is special purpose
d. The property has no deferred
maintenance
98. Highest best use analysis s used to
determine which of the following factors?
a. THE TYPE OF PROPERTY TO UP ON A
SITE
b. THE AMOUNT OF CAPITAL TO INVEST
IN A SITE FOR IMPROVEMENTS
c. WHETHER ANY EXISTING BUILDING
ON A SITE SHOULD BE DEMOLISHED
d. ALL OF THE ABOVE
99. A property has an appraised value of
P1,000,000.00. The owner currently owes
P600,000.00 in mortgage loans against the
property. The owner’s equity is:
a. P400,000.00 (1M-600k)
b. P600,000.00
c. P140,000.00
d. P160,000.00
100. Which of the following valuation concepts
is indicative of special purpose
properties, such as churches or schools,
when the continuation of the special use
is assumed?
a. Value in exchange
b. Value in use
c. Value in perpetuity
d. Book value
101. Which of the following explanation BEST
description the term market place?
a. The amount of money actually paid in a
transaction sale price
b. The amount of the loan
c. The amount of money necessary to
replace the property reproduction
d. Same term as market value
102. What economic principles is BEST
illustrated when an appraiser concludes
that modernization of the plumbing system
in the subject property will increase the value
of the property by more than the cost of
modernization?
a. Anticipation
b. Balance
c. Contribution
d. Substitution
103. Which of the following statements is
CORRECT in regard to the highest and
best use of a parcel of land?
a. Unimproved land does not have a highest
and best use.
b. If the improvement to the land is a house,
then the highest and best use is always
residential
c. The highest and best use can change
over time
d. Highest and best use is strictly n
economic concept and is not influence by
physical and legal considerations.
104. The total loan payment made on a parcel f
real estate during any one year is
generally referred to as:
a. DEPT SERVICE
b. Equity
c. Mortgage constant
d. Cash flow
105. The test used to determine whether or not
an article is a fixture depends on all the
following conditions EXCEPT:
a. Reasonable intent of the party attaching
the object.
b. Adaptation of the object
c. Cost of the item being attached
d. Method of attachment
106. The legal estate in land that provides
degree or extent of ownership rights
recognized by law any may be referred to by
which of the following terms?
a. FEE OWNERSHIP
b. FEE SIMPLE
c. FEE SIMPLE ABSOLUTE
d. ALL OF THE ABOVE
107. Which of the following action is an example
of the legal of government based on
police power?
a. Taxation
b. Escheat
c. Eminent domain
d. Zoning
26
108. In a voluntary conveyance of real estate,
the ____conveys the title to the property
and the ____ receives the title.
a. Grantor, grantee
b. Grantee, grantor
c. Owner, seller
d. Grantee, grantor
109. All legal rights, such as riparian or
easements that “go with land” when title to
the land is transferred are known as:
a. Encroachment
b. Seizings
c. APPURTENANCES
d. Easements
110. Numerous public and private limitations
are placed on real property. Some are
voluntary and others are involuntary. Which
of the following limitations is NOT an
example of a private involuntary limitations?
a. encroachment
b. Adverse possession prescription
c. Mechanics lien
d. Deed restriction
111. Reference to a plat map would be made in
which of the following legal description
methods?
a. Lot and block mids & bound
b. Rectangular survey
c. Street address
d. Monuments
112. Which of the following terms refers to the
right of a person who owns a property
free and clear of any leases?
a. Leased fee estate
b. Leasedhold estate
c. Fee simple estate
d. Lesse’s estate
113. When a building, a part of a building or an
obstruction physically intrudes, overlaps,
or trespasses the property of another, this is
referred to as an:
a. Escheat
b. Easement
c. Encroachment
d. Assemblage
114. An appraisal is best defined as:
a. An unbiased opinion of the most likely
price for which a parcel of real estate
would sell at a given date.
b. An unbiased opinion of the nature,
quality, value or utility of an interest of an
interest in real estate and related
personally
c. The process of developing an opinion
as to market value or other defined
value of a specified interest in a
specified point in time.
d. The process of studying the nature,
quality of an interest in real estate in
which a value estimate is not necessarily
required.
115. In the appraisal process, the property being
appraisal is referred to as the:
a. Comparable property
b. Assessed property
c. Subject property
d. Appraised property
116. The appraisal process undertaken by an
appraiser consists of many steps. What is
the correct first step in the appraiser
process?
a. Definition of the problem
b. Collection and analysis of data
c. Analysis of highest and best use
d. Initial estimate of value
117. The objective of undertaking an appraisal of
real estate is to:
a. Determine asking price
b. Estimate value
c. Establish loan value
d. Identify legal rights and interest that may
exist
118. If comparable sale #1 sold for Php2,000,000
and has a two-car garage, adding
Php100,000 to the value, and the subject
property does not have a garage, the
indicated value of the subject property would
be found by:
a. Adding Php100,000 to the comparable
sale
b. Subtracting Php100,000 from the
comparable sale
c. Adding Php100,000 to the subject
property
d. Subtracting Php100,000 from the subject
property
119. When an appraiser is using the sales
comparison approach, one of the elements of
comparison that may have to be adjustment
is often referred to as a time adjustment.
What does the time adjustment provide?
a. An adjustment for the period of time
between when a listing is taken on
property and when the property actually
sells.
b. An adjustment between the date of
sale of a comparable and the date of
the appraisal to allow for any changes
over time
c. An adjustment between the listing date of
a comparable sale and date the subject
property is actually appraised
d. An adjustment for the period of time
between the actual sale of a comparable
for the appraisal assignment
120. An appraiser has been asked to estimate the
value of a lot. In the same neighborhood, the
appraiser collects the following sales data:
Lot Sales Price Time of
Sale Sale
1 150,020 Php 4 months
144,250 x 1.04 ago
2 149,991 Php 2 months
147,050 x 1.02 ago
3 194,968 Php 3 months
145,600 x 1.03 ago
449,979/3
=149,993
The price appreciation for lots is estimated to
be at the rate of 1% per month (simple, not
compound) given the above information,
what is the estimated value of the subject
property?
27
 a. Php50,000
b. Php100,000
c. P140,000.00
d. P150,000.00
121. Deferred maintenance usually results in
which of the following losses in value?
a. Incurable physical depreciation
b. Curable physical depreciation
c. Curable functional obsolescence
d. Curable external obsolescence
122. What terms applies to the effect on value
of location or proximity to the intersection
of two streets?
a. Corner influence
b. Amenity
c. Externality
d. Plottage
123. Functional obsolescence could be caused
by which of the following?
a. A ceiling that is to high
b. Deferred maintenance
c. A poor location
d. A worn-out roof
124. The building cost estimate method that
replicates the contractor’s development of a
bid and is the most comprehensive way
estimate building costs, si known as the:
a. Unit-n-place method
b. Quantity survey method
c. Breakdown method
d. Comparative unit methods
125. Included in the cost approach to value is all
of the following components EXCEPT:
a. Replacement cost
b. Highest and best of the land
c. Acquisition cost
d. Accrued depreciation
126. In regard to accrued depreciation, which of
the following terms does NOT belong
together?
a. Physical deterioration-curable
b. Functional obsolescence-incurable
c. Economic obsolescence-curable
(incurable)
d. Functional obsolescence-curable
127. The combining of two or more into a
single ownership with the value of the
assembled lots being more than the sum of
the values of the individual lot is referred to
as:
a. Highest and best use
b. Economic rent
c. Escheat
d. Plottage
128. Another term used to denote the actual age
of a building is
a. Chronological age HISTORICAL
b. Effective age
c. Economic age
d. Depreciated age
129. A building has a roof that originally had an
expected life of 25 years. The roof’s effective
age is 15 years. A new roof will cost
Php100,000 to install. Using a straight line
method, what amount of depreciation would
be charged of the roof?
a. Php40,000
b. Php60,000
c. P580,000.00
d. P100,000.00
130. The basic capitalization formula used in
the income approach to value contains
three Components. Those three components
are:
a. Market, cost, income
b. Value, rate, income
c. Physical, functional, economic
d. Potential, gross, net income
131. What is the gross income multiplier for a
property with a current market value of
Php570,000 and rents for Php5,000 per
month?
a. 9
b. 9.5
c. 10
d. 10.5
Sol. 5k × 12 = 60k
570k/60k = 9.5
132. The peso amount of rent received from a
parcel of real estate when rented in an open,
competitive market is referred to as:
a. Economic rent market
b. Contract rent
c. Ground rent
d. Gross rent
133. A mortgage loan for Php 300,000 at 9
percent annum for 30 years has been made.
What is the amount of interest for the first
month?
a. Php163.90
b. Php900.00
c. P2,250.00
d. P2,413.90
Sol. 9%/12 = 0.0075 × 300K = 2,2250
134. What is the range of a group of variables
indicate to the appraiser?
a. The value of the highest sample
b. The difference between the lowest and
the highest values
c. The average for the group
d. The percentage variation from the mean
135. Which of the following types of lease does
NOT provided at least some protection to the
lessor against inflation?
a. Flat lease
b. Index lease
c. Reappraisal lease
d. Graduated lease
136. Which of the following statement is
CORRECT in regard to assessed value?
a. The assessed value must equal the
market value
b. The assessed value is used primarily
to calculate property taxes
c. The assessed value is used primarily to
calculate property insurance
d. The assessed value will never exceed
cost
137. A father sells his home to his daughter and
her husband. Such a sale would NORMALLY
be described as which of the following sales?
a. Arm’s-length sale unrepresentative
b. Illegal sale
c. Distorted sale
28
 d. Forced sale d. Escheat
138. In collection data, an appraiser concludes 147. A worn path crosses an owner’s property.
that comparable properties have increased in What legal doctrine would require a potential
value at a 6-pecent for a comparable that purchaser to take note of the fact that there
sold years ago for Php1,000,000 is: may be an unrecorded prescriptive easement
a. Php60,000 against that property?
b. Php120,000 a. Actual notice
c. P123,600.00 (1.06)2 b. Constructive notice
d. P1,123,600.00 c. Lis pendens
Sol. 1M(1.06)2 d. Escheat
139. Which of the following actions is NOT 148. An individual owner of a condominium unit is
characteristic of market value? in default on payment of the property taxes to
a. Sale as soon as possible the local government Of the following
b. Well informed buyers choices, which is the only available to the
c. Typical financing taxing authority?
d. Typically motivated sellers a. Levy the tax on the entire condominium
140. Which of the following factors is NOT project
normally considered to affect the supply b. Procedure against the individual unit
of real estate? c. Place a lien on the common areas
a. Volume of new construction d. Foreclose against the homeowners
b. Standing stock association
c. Land use and city growth 149. The legal right of government to acquire
d. Competition private property for a public use or purpose
141. What term best describes the effect of a with just compensation is known as:
power on the value of a nearby home? a. Nothing
a. Balance b. Air rights only
b. Externalities c. Everything below the surface only
c. Contribution d. Every above and below the surface
d. Conformity 150. In regard to the legal concept of land, what is
142. Which of the following appraisal principles a landowners entitled to in additional to the
holds that market value is indicated by surface rights?
the value of another property with similar a. Nothing
utility? b. Air rights only
a. Supply and demand c. Everything below the surface only
b. Substitution d. Everything above and below the
c. Competition surface
d. Balance 151. The term real estate is generally
143. The specific use of a parcel of land that a. Air and sub surface rights
gives that land the greatest residual of b. Surface rights only
income is referred to as the land’s c. Machinery and equipment
a. Intrinsic use d. Legal interests and rights inherent in
b. Highest and best use ownership
c. Income producing use 152. Which of the following activities is NOT a
d. Efficient use public limitation on real estate
144. The proper or most correct of an a. Building codes
improvement to land, such as the b. Zoning
construction of a house, is normally c. Adverse possession
strongly influenced by the application of d. Fire codes
which of the following economic principles? 153. If the metes and-bounds method of legally
a. Conformity describing land is being used, which of the
b. Encroachment following statement is CORRECT?
c. Escheat a. The straight point must be an natural
d. Substitution benchmark
145. The term lenders often use to refer to the b. There must be a define point of
relative amount of money they will lend beginning
on a specific parcel of property is known c. Monuments cannot be used as part of the
as: description
a. Gross rent multiplier d. No other methods, such as lot-and-block,
b. Debt-to-equity ration can be used as part of the description
c. Value to loan ratio 154. Which of the following terms refer to the
d. Loan to value ratio legal interest belonging to a person who
146. Effective demand in the market place for is leasing property from someone else?
housing varies MOST directly with which of a. Leased fee estate
the following conditions? b. Leasehold estate
a. Purchasing power c. Fee simple estate
b. Interest rates d. Lesee’s estate
c. Lis pendens
29
155. Which of the following terms refers to the d. Time value of money adjustment
stages that a neighborhood goes through 162. The building cost method that finds the cost
over time? of the component parts of a building through
a. Revitalization standard cost estimated and then adjusts for
b. Leasehold cycle the condition of the component, time and
c. Life cycle location is known as the:
d. Change a. Unit-in-place method
156. The term appraisal refers to: b. Quantity survey method
a. The process of estimating the market c. Break-down method
value of property d. Comparative unit method
b. The valuation of a market and how it 163. Maria’s house was built 12 years ago.
affects property values Because he keeps it in excellent condition, it
c. The process of estimating the most likely shows only as much wear as a typical five-
sales price of a property year-old house. Maria’s house therefore has
d. The act of process of developing an an effective age of:
opinion of value a. 5 years
157. The date of valuation for an appraisal is b. 7 years
determined by which of the following? c. 12 years
a. The actual date the appraisal is signed d. 17 years
b. The date the appraisal assignment is 164. Which of the following methods is the MOST
accepted detailed in estimating the costs of
c. The date the property is actually reproducing abuilding as part of the cost
inspected approach to value?
d. Whatever date is specified in the a. Unit-in-price
appraisal report b. Quantity survey
158. What is the PRIMARY purpose of economic c. Comparative unit
base analysis? d. Trade breakdown
a. To forecast future economic growth in 165. The cost approach to value takes into
an area and divided that growth consideration all of the following factors
between basic and non-basic EXCEPT:
industries a. Value of the land
b. To forecast changes in local zoning b. Replacement (Reproduction) cost of the
ordinances improvements
c. To determine property tax rates and the c. Original sales price
likely amount of tax due on property d. Physical defects
d. To forecast inflation rates 166. When using cost approach to value, an
159. In using the sales comparison approach, the appraiser should value the land as though:
appraiser finds that in term of location, sale1 a. It has been improved with a building
is superior to the subject property but is b. It is currently being used with an interim
inferior to sell#2. The correct procedure use
would be to adjust: c. It is vacant and available for highest
a. Both sales down to the subject and best use
property d. Zoning ordinance are not
b. Both sales up to the subject property 167. A tract of land containing four hectares
c. Sale#1 down and selle#2 up recently sold for Php600 per square meter.
d. Sale#1 up and sale#2 down What is the estimated land value?
160. A single-family residential located on a busy a. P600,000.00
street rents for Php500 per month less than b. P2,400,000.00
similar rental properties located on other c. P6,000,000.00
streets in the same area. The average gross d. P24,000,000.00
rent multiplier in this neighborhood id 110. Sol 600 × 40,000
What is the lump peso adjustment for the 168. What is the correct percentage of accrued
locational obsolescence of the residence? depreciation for a 15-year old building if the
a. P500 building has an effective age of 20 years and
b. P6,000 a remaining economic life of 30 year?
c. P50,000.00 a. 20 percent
d. P55,000.00. b. 30 percent
Sol. 5k × 110% c. 40 percent
161. The adjustment in the sales comparison d. 60 percent
approach that involves comparing two 169. What term applies to the rent specified in a
properties with similar feature and lease?
characteristics but different date of sale is a. Based rent
referred to as the: b. Market rent
a. Loan closing adjustment c. Contract rent
b. Time adjustment (market d. Gross rent
contributions)
c. Appreciation in value adjustment
30
170. The sale comparison approach is said to
be most reliable when of the following
market exist?
a. Active market
b. In acted market
c. Buyer’s market
d. Seller’s market
171. Numerous elements should be identified
when an appraiser is attempting use the
sale comparison approach to value. Which
of the following list BEST explains elements
of comparison?
a. Demand, supply, utility, transferability
b. Physical, functional, economic, location
c. Date of sale, location, physical,
condition of sale
d. Location, location, location location
172. What term is used to describe tangible and
intangible factors that enhance the
desirability and thus add to the value of real
estate?
a. Amenities
b. Goodies
c. Enhancements
d. Negative externalities
173. In the short run, which of the following
conditions has the MOST effect on real
estate price?
a. More changes in demand than changes
in supply
b. More changes supply than in demand
c. More inflation than demand
d. More sellers than buyers
174. What term is used to describe the value to a
typical investor?
a. Market value
b. Investment value
c. Sale value
d. Use value
175. Which of the following statements applies
to a property with a nonconforming use?
a. The existing nonconforming use is the
highest and best use
b. A nonconforming use is likely to arise
from changes in zoning
c. A nonconforming use property may be
under improved but cannot be over
improved
d. In the sales comparison approach, an
appraiser
176. Owner A gives owner B an easement across
A’s land to shorten the distance B has to
travel to each land he owns. The land B
owns has benefited by this easement and
is known as the:
a. Dominant estate
b. Service estate
c. Lien estate
d. Estate in gross
177. A description of the surface feature of a
parcel of land such as elevation or drainage
is known as its:
a. Location
b. Plottage
c. Topography
d. Restriction covenant
178. An owners of a parcel of land leases the land
to a tenant for ten years. The next day the
owner sells the land to a thirty. Which of the
following statements is CORRECT?
a. The new owner has an option as to
whether to accept the terms of the lease
b. The tenant may voluntary terminate the
lease
c. The tenant’s leasehold is not affected
d. The term legal interest is automatically
terminated by operation of law
179. Which of the following approaches to value
uses market data?
a. Income approach
b. Direct sales comparison approaches
c. Cost approach
d. All three approaches
180. Which of the following estimates would
result in a capitalization rate of 20
percent?
a. Potential gross income P1,000,000, value
P5,000,000
b. Effective gross income P1,000,000, value
P5,000,000
c. Net operating income P1,000,000,
value P5,000,000
d. Cash flow P1,000,000, value P5,000,000
181. In estimating the net operating income of a
building one of the necessary steps is the
calculation of other income”. Which of the
following items is NOT considered other
income?
a. Parking fees
b. Telephone switchboard services
c. TV closed-circuit connection fees
d. Escalation clauses in leases
182. A leased interest may be created only if the
contract rent is:
a. Greater than market rent
b. Equal to market rent
c. Less than market rent
d. A flat rent
183. Suppose a property’s NOI and value are
expected to change over an investment
holding period. What would be the
relationship between the overall rate and the
property yield rate?
a. The overall rate would be less than the
property yield rate
b. The overall rate would be equal to the
property yield rate
c. The overall rate would be greater than
the property yield rate
d. More information is required determine
the relationship between the overall rate
and the property yield rate
184. Which of the terms BEST describes a pattern
or income cash flow that is regular and
predictable?
a. Reversion
b. Lease
c. Annuity
d. Payment
185. A property has NOI of Php1,000,000, interest
payment of Php800,000 and principal
payments of Php100,000. What is the debt
coverage ratio?
31
 a. 0.80
b. .0.90
c. 1.11
d. 1.25
186. A small restaurant contains an oven and a
freezer, each of which cost Php9,000 and
has estimated useful life of 10 years
Carpeting costs Php35,000 and has an
estimated usefull life of seven years. What
annual reserve for replacement would be
appropriate for these items?
a. P5,900.00
b. P6,070.00
c. P6,800.00
d. P5,000.00
187. If a property has an overall capitalization rate
of .095 and a mortgage at a 75 percent loan-
to value ratio having an annual mortgage
constant of .11, what is the equity dividend
rate?
a. 0.05
b. 0.06
c. 0.07
d. 0.09
188. The term effective rate refers to the:
a. Loan constant on a mortgage
b. True rate of return considering all
relevant finance expenses
c. Interest rate after inflation is considered
d. Rate at which future payments are
discounted to present cash flows
189. What is the present value of a 40 years net
income of Php10,000 per year if payment are
in advance and the net income is discounted
at a rate of 12 percent?(Factor=8.233030)
a. P82,330
b. P82,438
c. P92,210.00
d. P92,330.00
190. When a property’s vacancy and bad debts
is building from the property’s gross
(potential) income which of the following
incomes is derived?
a. Effective gross income
b. Net operating income
c. Taxable income
d. Cash flow income
191. The basic equation in the income approach
to value is:
a. Rate divided by income equal value
b. Income divided by rate equals value
c. Rate times income equals value
d. Rate plus income equals value
192. One of the standard techniques by
appraisers when analyzing the income of
property is to divided the income being
generated between the land and the
improvements and then to capitalize the
residential income to the improvements into
a estimate. Such a techniques is referred to
as the:
a. Land residential technique
b. Building residential technique
c. Property residential technique
d. Plottage residential technique
193. The income approach to value:
a. Is based on the principle of anticipation
b. Translated the ability of property to
generate income into an indication of
value
c. Requires an estimate of net operating
income of property
d. All of the above are correct
194. The lump sum that an investor at the
termination an investment is referred to as
the:
a. Remainder
b. Reversion
c. Lump sum
d. Gain
195. Which of the following land uses is
generally NOT considered income
property?
a. hotels
b. Undeveloped land
c. Office buildings
d. Apartment buildings
196. A collection of retail store which a common
parking area generally one or more large
department, discount, or stores; and
sometimes including an enclosed mall or
walkway, is commonly referred to as a:
a. Mall
b. Retail complex
c. Mixed use development
d. Shopping center
197. What is the distinction between the terms
market price and market value?
a. Market price is synonymous with
replacement cost, while market value is
the same as assessed value
b. Market price is what the seller asks for,
while market value is what the buyer
actually pays
c. Market price is what the property sells,
for, while value is what sales price
should be to a typical buyer
d. Market price is what is currently owned
the property, while market value is what is
bought for
198. Under which of the following conditions
would an appraiser appraise the value of
the property as of future date?
a. If the current use is the highest and best
use
b. If the appraiser uses all three approaches
to value
c. If the market is stable and there is no
inflation
d. If the value is appropriately defined for
a future date of the value
199. What type of analysis identifies land uses
that are legally permissible, physically
possible and financially feasible?
a. Sensitivity
b. Highest and best use
c. Feasibility
d. Supply and demand
200. Included in the definition of highest best use
are certain tests or criteria that must be met.
Which of the following condition is NOT a
certain the highest and best use of land?
a. Physical possible
b. Legally permissible
32
 c. Financially feasible
d. Supply and demand
201. When two or more individual parcels are
legally encumbered by one mortgage and
one of the parcels is to be freed from the
encumbrance, the instrument used is a (n):
a. Partial release of mortgage
b. Satisfied agreement
c. Sub assignment of mortgage
d. Estopped certificate
202. Which of the following statement is NOT
necessarily correct about a local zoning
ordinaries?
a. Zoning can establish height restriction on
building
b. Zoning is often used to separate
income incomparable land uses
c. Zoning is often used separate
incompatible land uses
d. Zoning establishes setback requirements
for improvements on land
203. A mortgage secured by a legal claim
against two or more separate properties is
referred to as a:
a. Wraparound mortgage
b. Participation mortgage
c. Blanket mortgage
d. Ground lease mortgage
204. The property tax due on real estate
calculated by what method?
a. A condominium the tax rate by the
assessed value
b. Multiplying the tax rate by the
assessed value
c. Dividing the tax rate by the most probable
sales price
d. Multiplying the rate by the most probable
sales price
205. Which of the following statement is
CORRECT in regard to a condominium
form of ownership?
a. A condominium is a legal form of
property ownership
b. A condominium provides each unit owner
with a propriety lease
c. A condominium provides the same legal
interest as a cooperative
d. A condominium may not be owned by
tenants in common
206. What is the tax rate in all kinds of Real
properties?
a. 1%
b. 2%
c. 5%
d. 3%
e.
APPRAISER’S /BROKER EXAM REVIEWER
MOCK EXAM SET D-4
207. List the physical characteristic of land
that best fits each description.
1. Land is not standardized.
2. Location of land cannot be change.
3. land is durable and does not wear out.
208. List the economic characteristic of land
that best fits each description.
1. Investments in land are long term.
2. Change in land will affect its value.
3. Buyers prefer some locations over others.
4. The supply of land is fixed.
209. Are the following statements true (T) or
false (F)?
1. F land’s indestructibility makes it easily
regulated by local government
2. F Scarcity means that we do not have
enough land to satisfy demand
a. F The characteristic of modification
means that the changes will always
increase a property’s value.
MULTIPLE CHOICE
210. The income approaches would be best used
in appraising a (n)
a. Single-fanfily residence.
b. Church
c. Apartment building.
d. School
211. The sales comparison ( market data)
approach can be used effectively in an
appraisal if
a. Current construction costs are available.
b. The property generates income
c. Depreciation for the property can be
calculated.
d. There are recent sales of similar
properties.
212. One of the concepts used in appraisal is
“highest and best use,” which refers to
a. The property’s current use.
b. The legal use that will yield the
through long standing use.
c. Acquiring title to the property through long
standing use.
d. Acquiring a zoning variance for a more
valuable use.
213. Which of the following methods is used to
calculate the gross rent multiplier?
a. Divided the sale price by gross rent.
b. Multiply the capitalization rate by net
income
c. Divide net income by the capitalization
rate
d. Multiply gross rent by the capitalization
rate
214. Which of the following steps is used in the
cost approach to estimating property value?
a. Estimate the market value of the land
b. Determine the capitalization rate
c. Determine the vacancy rate
d. Identify several similar buildings have
recently sold
215. A property appraisal is the
a. Selling price
b. Depreciable basis
c. Estimate of market value
d. Utility value.
216. In the cost approach to estimating value, the
type of depreciation that is always
considered incurable is
a. Physical deterioration
b. Functional obsolescence
c. Economic obsolescence.
d. Market obsolescence.
33
217. What is the gross rent multiplier for a 226. The last house in a new development sold
property if the annual gross income from a for twice the price paid for the first houses
building is P66,000, net operating income is sold in the same development. The higher
P29,500 And the building sells for P561,00? price is a result of
a. 6.5 a. Supply and demand
b. 7.2 b. Conformity
c. 8.1 c. Progression
d. 8.5 (561,000/66,000) d. Contribution
218. To determine the listing price of a 227. which of the following appraisal method
residential property, an most likely would requires that the appraiser calculate the
use a (n) amount of accrued depreciation
a. Income analysis a. cost approach
b. Cost analysis b. income approach
c. Competitive market analysis c. sales comparison approach
d. Assessment analysis d. gross income multiplier
219. To determine the listing price of a church, 228. Which of the following is considered
an appraiser most likely would use a (n) economic obsolescence?
a. Income analysis a. A leaky roof
b. Cost analysis b. Abandoned building in the area
c. Market analysis c. Outmode plumbing fixture
d. Data comparison analysis. d. A cracked foundation
220. If an expensive home is built in an area 229. A group investor making very high profits
consisting of less expensive homes, its value from shopping most likely would concerned
will be affected by the concept of. with the principle of
a. Functional obsolescence a. Conformity
b. Regression b. Progression
c. Contribution c. Competition
d. progression d. Contribution
221. In performing an appraisal of single-family 230. An appraiser calculates the replacement cost
residence, the appraiser reduced its value of building when using the
because of functional obsolescence. The a. Cost approach
appraiser was referring to b. Sales comparison approach
a. Proximity to a waste incinerator c. Income approach
b. Special assessment on the property d. Gross rent multiplier
c. A cracked foundation. 231. An appraiser estimating the value of property
d. A one-car garage. with a net income of P40,000 decides to use
222. To determine the listing price of an office an 8 percent capitalization rate instead of a
building, an appraiser most likely would use 10 percent rate. Use of the lower rate result
a (n) in
a. Income analysis a. A 2 percent decrease in the appraised
b. Cost analysis value
c. Market analysis b. A P1000,000 decrease in the appraise
d. Data comparison analysis. in the appraise value
223. According to the principle of conformity, c. A P1,000,000 decrease in the appraise
the highest value for a house obtain if its value
location is d. No change in the appraised value.
a. Next to an office building
b. In a residential development Solution
c. Near a shopping center 40,000/8% = 500,000
d. Across the street from a church 40,000/10% = 400,000
224. Which of the following would an appraiser 5000-4000 = 100,000
most likely consider function
obsolescence? 232. The economic effect of an improvement
a. Deterioration of the property on a property’s value is indicated by the
b. Location next to a noisy factory appraisal principle of
c. A leaky roof a. Reproduction
d. A house in an exclusive area with a b. Contribution
one car garage c. Progression
225. A competitive market analysis (CMA) is d. Diminishing returns
frequently prepared by a real estate agent to 233. All of the following statements describing the
estimate the most probable sales price of a capitalization rate are false except
property. This method is based on the a. The rate is divided by net income to
a. Gross rent multiplier determine value
b. Cost approach b. An increase in the rate result in an
c. Market approach increase in value
d. Income approach c. The rate increase when the
investment’s risk increase
34
 d. The rate represents the return on the b. Income approach
investment c. Sales comparison approach
234. An appraise who calculates the cost of d. Gross income multiplier approach
reproducing a building is finding the 244. When using the sales comparison approach,
a. Present of the building all of the following important characteristics
b. Current cost to duplicate the building in selecting comparables excepts
c. Depreciated value of the building a. Sales dates of the properties
d. Current cost to build a similar building b. Location of the properties
cheaper materials c. Cost to the sellers
235. A property has monthly net income of d. Number of rooms
P1,800, and appraiser believes a 9 percent 245. An investigates the zoning code for a
rate of return is appropriate for the property. property determine how much should be
Its value would be estimated at offered for the property. The investor’s
a. P20,000.00 decision will be based on the concept of
b. P21,600.00 a. Anticipation
c. P240,000.00 (1800 × 12)/9% b. Competition
d. P2,400,000.00 c. Highest and best use
236. An investor who follows the concept that “the d. Contribution
whole is worth more than parts” is using 246. To calculate net operating income in an
the concept of appraisal, all of the following are deductible
a. Depreciation from gross effective income except
b. Progression a. Loan payments
c. Plottage b. Repairs
d. Contribution c. Cleaning expenses
237. An appraiser who calculates the cost d. Legal fees
constructing an older building using modern 247. Which of the following is deducted from
techniques and materials is finding building’s potential gross income to calculate effective
a. Unit cost when using the income approach?
b. Replacement cost a. Legal expenses
c. Reproduction cost b. Repairs
d. Operating cost c. Loan payments
238. Physical deterioration is a result of all of the d. Vacancy loss
following except 248. Estimating the value of property requires a
a. Poor floor plan systematic set of procedures. The first in the
b. Cracked sidewalks appraisal process is typical to
c. Peeling paint a. Develop an appraisal plan
d. Broken windows b. Collect general data on the area
239. For a property to have all of the following c. Define the purpose of the appraisal
must be present except d. Estimate the value of the land
a. Competition 249. What is the value of a property that produces
b. Utility gross income of P94,000 and the GIM is 8.5?
c. Demand a. P66,583
d. Transferability b. P110,588
240. An incurable cause of property c. P132,706
depreciation is d. P799,000 (94K×8.5)
a. Physical deterioration 250. An appraiser would use the cost approach
b. Functional obsolescence as the primary appraisal method for a
c. Zoning obsolescence a. Parking garage
d. Economic obsolescence b. Condominium
241. Which of the following is not an approach to c. Shopping mall
estimating property value? d. Public school
a. Income approach 251. An investor purchased a property for
b. Cost approach P450,000. If the property has annual net
c. Assessment approach income of P36,000, the capitalization rate on
d. Sales comparison approach the investment is
242. An investor is willing to pay a premium for a a. 6.6 percent
commercial property because he believes b. 8 percent 36K/450K
there will be an increase in the area’s c. 9 percent
population. The investor’s decision is based d. 12.5 percent
on the concept of 252. If appraising a newly single-family house,
a. Anticipation an appraiser would be most interested in the
b. Competition a. Cost constructing the house
c. Conformity b. Capitalization rate of the house
d. Contribution c. Location of the house
243. An appraiser estimating the value of d. Gross rent multiplier
vacant land is using the 253. To calculate the monthly gross rent multiplier
a. Cost approach of a property
35
 a. Multiply the monthly gross income by 12
b. Divide the purchase price by the gross
monthly income
c. Divide the capitalization rate by the
monthly gross income
d. Divide the annual gross income by the
purchase price
254. Using the cost approach an appraiser
determines that the value of a property is
P230,000. If the appraiser estimated the cost
of replacing the structures on the property at
P160,000 and the value at P90,000, what
was the amount of accrued estimated by the
appraiser for the property?
a. P10,000
b. P20,000 (160K+90K-230K
c. P60,000
d. P90,000
255. An apartment building has six units that rent
for P750 a month. If the purchase price of the
property is P480,000 the property’s annual
gross income multiplier is
a. 7
b. 9 (480K)/(750×6×12)
c. 54
d. 10
256. An appraiser calculates a separate value for
the land when using the
a. Sales comparison approach
b. Income approach
c. Cost approach
d. Gross rent multiplier approach
257. If an appraiser uses more than one appraisal
method and assign deferent weights to
results of each, she is using
a. Substitution
b. Contribution
c. Replacement
d. Reconciliation
258. An apartment building has a capitalization
rate of 6 percent. If the expenses on the
property increase by P6,000 while the rent
remain the same, the property value will
a. Remain unchanged
b. Increase by P6,000
c. Decrease by P36,000
d. Decrease by P100,000 (6K/6%)
APPRAISER’S/BROKER’S EXAM REVIEWER
EXAM SET E -3 (PAST EXAMS)
259. Land survey always uses a reference point
which could be:
a. Bureau of Lands Location Monument
b. Municipal Location Monument
c. Provincial Boundary Monument
d. City Boundary Monument
e. All of the above
260. Amendment to the master deed of
condominium project approved by majority of
registered unit owner shall be based on:
a. Number of condominium units
b. Floor area of ownership
c. Total area of condominium units
d. Any of the above
261. Same owner of a 10-door apartment rented a
unit to Emma for a payment for one year.
Under the law on lease, Emma, without the
consent of Jane may perform of the following
acts, excepts:
a. Sublease the unit
b. Assign his rights
c. Suspend payment if Jane fails to make
the necessary repairs
d. Demand payment reimbursement
consulting one half the value of the useful
improvements introduce in good faith.
262. A case of sale of real property paid under
deferred payment basis the payment of the
documentary stamp tax shall accrue upon.
a. Notarization of Transfer document
b. Execution of the Deed of Absolute Sale
c. Executive of Contract to Sell
d. Payment of the full amount
263. Principle of ownership which mandates
property owners to use their property in a
manner that will promote not only their
interest but also the general welfare
a. Principle of social justice
b. Principle of progression
c. Stewardship principle
d. Principle of conformity
264. Under BIR Revenue Regulation No.
1:7,2003, the seller of payment home who
failed to utilize the proceeds of the sale to
acquire a new residence within 18 months
from sale shall be assessed additional
deficiency capital gains inclusive penalties
and
a. 10% percent per annum
b. 25% interest per annum
c. 15% interest per annum
d. 20% interest per annum
265. Landless extended for justifiable cause, the
period of completion of development of a
subdivision project, counted license to sell, is
a. Six months
b. Twelve months
c. Eighteen months
d. Twenty four months
266. Segregate of return earned by an investor
which does not included allowance for capital
recovery is:
a. Discount rate
b. Interest rate
c. Recapture rate
d. Investment rate
267. Has ruled that all agricultural lands that are
already classified as commercial, industrial
or residential before June 15, 1988 no longer
need any conversion clearance even if it is
still devoted to agricultural activity
a. Republic Act 6657
b. DOJ Opinion No. 44, Series of 1990
c. R.A 7279
d. PP 27
268. I paid real property tax is subject to 2% per
month interest, up to a maximum period of
a. 12 months
b. 24 months
c. 36 months
d. Until paid
36
269. Filipino citizen can acquire by patent d. 1,000 square meters of urban land or 3
agricultural lands of the public domain not hectares of rural land
exceeding: 277. Per BIR 28-98, the ground floor of a
a. Five hectares condominium project shall be commercial
b. Seven hectares and additional rate shall be added to an
c. Ten hectares established residential zonal value
d. Twelve hectares a. 10%
270. A former natural-born Filipino citizen can b. 20%
acquire urban land for business purposes no c. 25%
exceeding: d. 15%
a. 1,00 sq.m 278. The rate of real estate tax in municipalities
b. 10,000 sq.m within Metro Manila is not more than:
c. 5,000 sqm a. One-half percent assessed value
d. 3 hectares b. Two and a half percent of assessed value
271. It is a legal principle that if at the end of the c. One percent of assessed value
lease period the lessee continuous d. Two percent of assessed value
occupancy with the acquiescence of the 279. The payment of estate tax, an allowed
lessor and without notice to vacate, it is deduction to the gross estate of a decedent
understood that there is an implied new is funeral expenses which is
lease. a. 5% of gross estate or P200,000.00
a. Pactum de non aliendo whichever is lower
b. Pacto de retro b. 5% of gross estate or P200,000.00
c. Pactum Commisorium whichever is higher
d. Tacita Reconducta c. 10% of gross estate or P200,000.000
272. An authority given by the developer to a whichever is lower
broker to look for a supplier of backfilling d. 10% of gross estate or P200,000.00
materials who shall be with developed lot is: whichever is higher
a. Procurement agency 280. spouses who were married after the
b. General brokerage effectivity of the Family Code without any
c. Exchange agency pre-nuptial agreement shall be governed by:
d. Sales agency a. Conjugal partnership of gains
273. An agreement where the consideration of a b. Absolute separation of property
contract is deposited with a third party who is c. Absolute community of property
authorized to release said consideration to d. Any of the above
the seller the latter has compiled certain 281. The following persons are disqualified to
condition is: become lessee except:
a. Option a. Lawyers with respect to property of their
b. Escrow clients under litigation which they take
c. Contract to sell part.
d. Hold over clause b. Executors and administrators of
274. A contract where real estate is hynothecated properties
to secure an obligation where the creditor is c. Husband and wife when there is
given the right to possess the property and separation of property in marriage
collect the fruits therefore is known as: settlement and when there is judicial
a. Equitable mortgage separation of property
b. Real estate mortgage d. Guardian with respect to property of ward
c. Antichresis under guardianship
d. Blanket mortgage 282. The priority right of a tenant to buy the land
275. It a deceased owner of a land died instestate located in an urban land reform area is
without any obligation, the document to be known as:
executed to transfer title to the sole her is: a. Tenant’s possessory right
a. Extrajudicial settlement of estate b. Tenant’s retention right
b. Affidavit of adjudication c. Tenant’s incremental right
c. Deed of donation d. Tenant’s right of first refusal
d. Deed of conveyance 283. A petition may filed by one or more owners of
276. A former natural born Filipino citizen may in condominium project when damage to the
addition to acquiring residential land under project has rendered one-half or more of the
B.P. 185 may still acquire land for business units untenantable and unit owners holding
or other purposes under R.A. 8179 provided more than 30 percent interest in the common
the real does not exceed areas are opposed to repair or restoration
a. One (1) hectares of urban land or 2 project:
hectares of rural land a. 30%
b. 5,000 square meters of urban land or 3 b. 40%
hectares of rural land c. 50%
c. 5, 000 square meters of urban land or 5 d. 60%
hectares of rural land

37
284. 18% percent interest per annum, how much
is the interest of P500,000.00 for 65 days
where number of days in a year is 360?
a. P15,000.00
b. P16,027.70
c. P16,250.00
d. P90,000.00
285. The capital gains tax due on the sale of
P2,000,000.00 property with P500,000.00
initial payment is:
a. P100,000.00
b. P120,000.00
c. P20,000.00
d. P30,000.00 (500K×6%)
286. The best evidence fee simple ownership is a
Torrens Title because it is indefeasible and :
a. Imprescriptible
b. Binding against the whole world
c. Has priority against a tax declaration
d. All of the above
287. Under R.A. 8791, the maximum redemption
period after extrajudicial foreclosure of a
mortgage executed by a corporation in favor
of the bank is:
a. 3 months
b. 6 months
c. 12 months
d. none of the above
288. A clause used in leases and mortgages that
cancel specified right upon the occurrence of
condition such as cancellation of mortgage
upon repayment of mortgage loan:
a. Acceleration Clause
b. Defeasance Clause
c. Automatic Redemption Clause
d. Hold over Clause
289. In sale with assumption of mortgage, the
basis of the documentary stamp on the sale
is
a. The down payment
b. The contract price
c. Selling price
d. None of the above
290. Under R.A.6732, administrative
reconstitution of lost destroyed original
copies of certificates may be availed of when
the lost or destroyed certificates in the
registry of deeds consist of at least:
a. 10% of all titles in the registry
b. 40% of all titles in the registry
c. 20% of all the titles in the registry
d. 30% percent of all titles in the registry
291. When the loan is fully amortized by equal
monthly payment the amount applied to the
principal:
a. Decreases while interest payment
increases
b. Increases while interest decreases
c. Increase by a constant amount
d. None of the above
292. To avail of exemption from capital gains in
the sale of a family home, the seller is
required, among others, to notify the BIR
through a prescribed form his intention to
avail of the exemption. The notice must be
filed within:
a. 15 days from the date of sale
b. 30 days from the date of sale
c. 60 days from the date of sale
d. None of the above
293. When the interest of participation of
condominium unit owners in the common
areas in common is proportionate, the
formula applied is.
a. Unit area divided by total area of the
common area
b. Unit area divided by total area of all
condominium units
c. Unit area divided by total area of all
condominium units and common area
d. Unit area divided by total floor area of
condominium building
294. On bank’s acquired assets which part of its
real estate inventories at the close at the
close of its accounting period shall be
classified as:
a. Ordinary Assets
b. Capital Assets
c. Fixed Assets
d. None of the above
295. Total refund to buyer for developer’s failure
to complete the development within the
reglamentary period is equivalent to : (PD
957)
a. 50% of total payment inclusive of
amortization interest less penalty interest
b. 50% of total payment inclusive of
amortization interest and penalty interest
c. 100% of total payment inclusive of
amortization less penalty interest
d. 100% of total payment less penalty
interest plus legal interest
296. In the cost approach to value, physical
deterioration is estimated by the formula:
a. Economic life divided by chronological
age
b. Chronological life divided by economic life
c. Economic life divided life divided by
effective age
d. Effective age divided by economic life
297. The principle of value which states that the
value of a property tends to be enhanced
when there is reasonable homogeneity in
use:
a. Principle of Highest and Best Use
b. Principle of Conformity
c. Principle of Increasing Returns
d. Principle of Progression
298. A building is depreciated at 2.5% per year on
a straight line basis. What is the estimated
useful life of the building?
a. 30 years
b. 40 years (1/2.5%)
c. 50 years
d. 60 years
299. Several houses valued at P1,000,000.00 and
P2,000,000.00 were built an area where an
existing house valued at P300,00000 is
located. As a result, the value of the latter
increased. The real estate principle of value
that applies to this situation is called the
principle of
a. Substitution
b. Improvement
38
 c. Progression c. P1,650,000.00
d. Regression d. P1,500,000.00
300. Capital Gains Tax on the sale of real 310. Registration of mortgage covering projects
classified as capital assets is a: can only be affected when the deed is
a. Creditable tax on the sale accompanied by a permit to mortgage issued
b. Deductible item from income tax by:
c. Final withholding tax a. Local government unit
d. Expanded withholding tax b. Housing and Urban Development
301. The real estate broker is usually authorized Coordinating Council
to do all of the following except: c. Home Insurance Guarantee Corporation
a. Advertise the listing d. House and Land Use Regulatory Board
b. Cooperative with brokers 311. The documentary stamp on lease of real
c. Place for sale sign on the property estate is P3.00 for the first P2,000.00 or
d. Bind the principal in a contract fraction thereof and additional:
302. When a property is sold to 2 or more buyer’s a. P0.50 for every P1,000.00 in excess for
the property goes to first P2,000.00
a. Buyer in good faith and who first b. P1.00 for every P1,000.00 in excess for
registered with Register of Deeds first P2,000.00
b. Buyer who pays the highest price c. P1.50 for every P1,000.00 in excess for
c. Buyer who was first in possession first P2,000.00
d. None of the above d. P2.00 for every P1,000.00 in excess for
303. The position of trust assumed by the broker first P2,000.00
as an agent for the principal is described as: 312. The selling price if house and lot is
a. Trusteeship P800,000.00. if its appraised value of
b. Confidential P720,000.00 and loan to collateral ratio is
c. Fiduciary relationship 80% what is it loan value?
d. Code of conduct a. P640,000.00
304. If the property is an ordinary assets, what is b. P576,000.00
the applicable tax? c. P720,000.00
a. Capital Gains Tax d. P648,000.00
b. CWT 313. The capital gains tax on the sale of
c. Percentage tax P2,000,000.00 property with P600,000.00
d. Estate tax initial payment is:
305. Essential requirements of a Contract of Sale. a. P100,000.00
a. Consent or meeting of the minds of buyer b. P120,000.00
and seller c. P30,000.00
b. Object or subject matter d. P36,000.00
c. Cause or consideration 314. What is the cost of the fence with total length
d. All of the above of 75 meters, with height above the ground of
306. A stipulation which authorizes the mortgage 2 meters and ½ meter below, if cost square
to appropriate the property as his own upon is P1,500.00?
failure of the debtor to fulfill the principle a. P225,000.00
obligations. This is void and of no legal b. P281,250.00
effect. c. P140,625.00
a. Pactum Commisorium d. P112,500.00
b. Pactum De Non Aliendo 315. Using the 4-3-2-1 rule (depth rule) if a 5-
c. Pacto de retro sale hectare belonging to different owners was
d. Res Nullius sold for P10,000,000.00 what is the sum
307. The type of loan wherein the lender has share of lot owners owning the first quarter
some or complete control over the project abutting the road?
and the income for a certain period, part or a. P2,500,000.00
all which is assigned to him to amortize the b. P4,000,000.00
project, is: c. P5,000.000.00
a. Straight Loan d. P6,000,000.00
b. Flat Loan 316. The maximum area of residential land (urban
c. Turn-key loan area) which a former natural born Filipino
d. Amortization loan citizen may acquire:
308. The best evidence of ownership is: a. 10,000 sq. m
a. Transfer Certificate of Title b. 500 sq. m
b. Tax Declaration c. 10 sq. m.
c. Realty tax d. 1,000 sq. m.
d. Vicinity map 317. When a done of a parcel of land is a
309. The Seller realized a 30% gross profit over stranger, the donor’s tax rate is:
his cost. If the property is sold at a. 20%
P1,950,000.00, the cost is: b. 6%
a. P1,365,000.00 c. 30%
b. P1,350,000.00 d. 25%
39
318. The collateral value of a house and lot
package is determined by applying the:
a. Economic Value
b. Assessed Value
c. Appraised Value
d. Loan to Value Ratio
319. The use of borrowed funds to increase
purchasing power is ideally to increase the
profitability of an investment is:
a. Limited Liability
b. Debt coverage
c. Leverage
d. Interim financing
320. The amount of family home equivalent to fair
market value considered as allowable
deduction from the estate of a decedent:
a. P500,000.00
b. P1,000,000.00
c. P2,000,000.00
d. P750,000.00
321. The estate Tax Return shall be filed and paid
with the BIR within:
a. 60 days from death of decedent
b. 90 days from death of decedent
c. 120 days from death of decedent
d. 180 days from death of decedent
322. Under the Urban Land Reform Law (P.D.
1517) an area is considered urban when it
has a population density of at least 1,000
and where at least 50% of economically
active residents are engage in non-
agricultural activities.
a. 500 residents per square kilometer
b. 1,000 residents per square kilometers
c. 1,500 residents per square kilometers
d. 2,000 residents per square kilometers
323. An appraisal technique in which comparative
estimates are made between prices paid in
actual transactions and the current listings:
a. Cost Approach
b. Income Approach
c. Market Approach
d. Economic Approach
324. The maximum term of loan under Pag-IBIG
loan amounting to P6 million
a. 20 years
b. 25 years
c. 15 years
d. 30 years
325. A subdivision plan needs only the approval of
the Land Registration Authority or Land
Management Bureau to effect segregation of
tiles when the resulting number of lots is:
a. Nine (9) or less
b. Ten (10) or less
c. Twelve (12) or less
d. Fifteen (15) or less
326. A four storey building has a regular shape
street frontage of 10 meters and depth of 20
meters, and height of 16 meters. If cost to
construct is P4,000.00 per cubic meter, what
is the reproduction cost of the new building?
a. P12,800,000.00
b. P13,200,000.00
c. P12,560,000.00
d. P15,120,000.00
327. In case of refuse by the lessor to accept
payment of the rental agreed upon, the
lessee may either deposit, by way of
consignation, the amount in:
a. Court
b. City Municipal Treasury
c. Bank in the name of the lessor
d. Any of the above
328. Husband and wife can sell property to each
other in the fo9llowing circumstances except
when:
a. A separation of property was agreed
upon in the prenuptial agreement
b. There has been a judicial separation of
property
c. There has been a legal separation
d. Spouses have been separated for
more than 10 years (ANNULMENT)
329. In a sale of property on installment plan
where buyer is not engaged in trade or
business, the application rate of tax is based
on
a. Gross Selling Price
b. Fair Market Value
c. A or B , whichever is higher
d. Assessed Value
330. Under RA 7279__ shall be restored to only
when modes of acquisition have been
exhausted.
a. Negotiated Purchase
b. Land Consolidation
c. Expropriation
d. Joint Venture Agreement
331. The schedule of market value for ad valorem
tax in municipalities outside Metro Manila is
prepared by
a. Municipal Assessor
b. Provincial Assessor
c. Sangguniang Panlalawigan
d. Provincial Treasurer
332. Property escheated to the government is
considered as
a. Public Dominion
b. Patrimonial Property
c. Regalian Property
d. Any of the above
333. The use borrowed funds to increase
purchasing power is ideally to increase the
profitability of
an investments:
a. limited Liability
b. Debt Coverage
c. leverage
d. Internal Financing
334. The income approach in estimating the
value of an investment property is an
application of
a. Principle of substitution
b. Principle of progression
c. Principle of contribution
d. Principle ofAnticiplation
335. Under Urban land Reform Act (PD1517), the
acquisition of lots of varying ownership
through, among others, expropriation or
negotiated purchase for the purpose of
planning is
a. Land Banking
40
 b. Land Exchange 345. In the absence of any provision in the master
c. Land Use Plan deed of a condominium project, the share of
d. Land Assembly the unit owners in the common area is
336. The principle of value which states that the a. Proportionate to his unit area
value of a property tends to be enhance b. Based on the value of his unit
where is reasonable homogeneity in use c. Equal to all other unit
a. Principle of highest and Best Use d. Deed by the majority of owners
b. Principle of Conformity e. Determine by the condominium
c. Principle of Increasing Return corporation
d. Principle of progression 346. The right of an owner-lessor to receive the
337. It refers to a grid of north and south correct rent and reversion of the property at
(meridians), and east and west (Parallels) the end of the lease is called
lines surveyed by the government in a. Fee simple
identifying Philippines boundaries. b. Leasehold
a. Meters and Bounds c. Lease fee estate
b. Rectangular survey d. Net Lease
c. Cardinal Direction 347. In case of false or fraudulent Estate, Donor
d. Monuments or Capital Gains “Tax BIR form was willfully
338. it is ratio that expresses the relation gross made, how much
income and sales price of a property a. 20%
a. capitalization b. 30%
b. gross Income Multiplier c. 25%
c. Recapture d. 50%
d. Effective Gross Income 348. For purposes of determining whether a seller
339. A loss in value from any cause” is a common transferor can be considered as habitually
definition of engaged in real estate business, he should
a. Effective Age offer satisfactory evidence that the
b. Functional Obsolescence consummated at least 6 taxable real estate
c. Depreciation transactions during the preceding year.
d. Economic Obsolescence a. Five
340. The value placed on taxable property by the b. Six
assessor for ad valorem purpose is: c. Eight
a. Appraised Value d. Ten
b. Assessed Value 349. the articles of Incorporation of homeowners
c. Fair market Value association is registered with:
d. Economic Value a. securities and Exchange Commission
341. The following are methods of acquiring lands b. housing and Land Use Regulatory
for purposes of Urban Development and Board
Housing Act, Except: c. home Guaranty Corporation
a. Foreclosure d. HUDCC
b. Joint venture agreement 350. Conversion permit of agricultural land of not
c. Negotiated purchase more than 5 hectares shall be approved by
d. Land swapping the:
342. Where a conflict arise on the issue of just a. Municipal agrarian Reform Office
compensation, the concerned agency b. Provincial Agrarian Reform Office
expropriating is required to initially pay an c. Secretary, DAR
amount equivalent to 100% of the d. Regional Agrarian Reform Office
a. Offered amount 351. If TCT has an annotation that says “subject
b. Appraised Value Rules 74, Section 4 of the Rules of Court; it
c. Assessed Value means that the property is an inherited and
d. Zonal value any heir unduly deprived of his lawful
343. The following are of property descriptions participation in the estate has 2 years assert
ordinary used in deeds, contracts, to sell and his right over said property.
leases, except: a. Two 2 years
a. Rectangular survey b. Four 4 years
b. Lot number c. Five 5 years
c. Bearing and azimuth d. Ten 10 years
d. Monuments 352. The acquisition of the land in advance of
e. Metes and bounds actual need based on present value for
344. Refers to an Imaginary line connecting from future planned development is referred to in
a reference point ‘I” of any given lot plan the Urban Land Reform Law as:
a. Cardinal direction a. Land Assembly
b. Boundary line b. Land Banking
c. Azimuth c. Urban Renewal
d. Tie line d. New Settlement Development
353. The type of listing that gives the real estate
broker the greatest protection
41
 a. Exclusive Agency Listing d. Four (4) years
b. Net Listing 363. The maximum period that a foreigner
c. Exclusive Right to Sell Listing (individual may lease real estate including
d. Multiple Listing renewal is.
e. Open Listing a. 25 years
354. The following are determinants of value in b. 50 year
appraisals of really , except c. 75 years
a. Contribution d. 99 years
b. Demand 364. The principle holds that when two or more
c. Purchasing commodities with subdivision the same utility
d. scarcity are available, the one with the lowest price
355. Property held by the owner as inventory or receives the greatest demands and widest
stock in trade of buy and sell business or distribution.
used in connection with trade business or a. Principle of Contribution
source of income is referred to as b. Principle of Substitution
a. Capital Asset c. Principle of Balance
b. Ordinary Asset d. Principle of Completion
c. Fixed Asset 365. An estimate or opinion of value is:
d. Intangible Asset a. Accounting
356. Subdivision and Condominium Buyers b. Valuation
Protective Decree c. Appraisal
a. PD 200 d. computation
b. PD 1996 366. if the contract is under Maceda law, a buyer
c. PD 957 who has paid 2 years installment shall be
d. PD 1081 refunded an amount equivalent to:
357. Urbanizable areas refer to sites and lands a. 60%percent of the total payments made
which, considering present characteristics b. 50% of the payment payments made
and prevailing condition, display marked and c. 40% of the total payments made
great potential of becoming urban areas d. 30% of the total payments made
within the period of 367. Land valuation guidelines for socialized
a. Two (2) years housing is set by the:
b. Three (3) years a. HUDCG
c. Five (5) years (per RA 7279) b. NHA
d. Ten (10) years c. Department of Finance
358. The following are modes of acquiring lands d. Regular court
for the purposes of the Urban Development 368. The schedule of fair market value in the
and Housing Act of 1992 except. municipalities in Metro Manila is prepared by:
a. Joint Ventura agreement a. MMDA
b. Negated purchase b. Concerned municipal assessor
c. Community mortgage c. Bureau of International Revenue
d. Accretion d. Sangguniang bayanby ordinance
359. In mixed use condominium projects, the 369. The following compose the Board of
master deed may be amended by simple Assessment Appeals in the city of Makati,
majority of the owners. Majority is based on: except:
a. Number of Condominium units a. Registered of Deeds
b. Floor area of ownership b. City Prosecutor
c. Total area of condominium units c. City Assessor
d. Any of the above d. City Engineer
360. Conjugal partnership can be dissolved by: 370. A taxpayer has____ to redeem his real
a. Legal Separation property which was levied and subsequently
b. Annulment of Marriage forfeited and acquired by the Local
c. Judicial Degree of Separation of Property Government unit due to tax delinquency.
d. Any of the Above a. 1 year
361. Amended to the master deed of a b. 4 years
condominium project approved by majority of c. 60 days
the registered owners need also be approved d. 3 years
by the city/municipal engineer and: 371. In addition to the basic property tax, a
a. Local government province may levy an annual tax on an
b. Housing and Urban Development agricultural land, planted to perennial crops
Coordinating Council with less than 50 trees to a hectare at the
c. Housing and Land Use Regulatory rate of not exceeding__ of the assessed
Board, HLURB value of the property.
d. LAND Registration Authority a. 1%
362. Unless revalidated, tax credit life is up to: b. 2%
a. One (1) year c. 3%
b. Two (2) years d. 4%
c. Five (5) years e. 5%
42
372. Seizure of a property by a court order,
usually done to have it available in the event
of adverse judgment of a pending suit, is:
a. Escheat
b. Forfeiture
c. Foreclosure
d. Attachment
373. This government agency is responsible for
the preparation of comprehensive land use in
a locality.
a. Local government unit
b. HUDCC
c. DAR
d. HLURB
374. Under the Rent Control Law (RA 9653), the
lessor may ask for a deposit rental not
exceeding:
a. I month
b. 2 months
c. 3 months
d. 1 year
375. Any amendment to the master deed of a
condominium project decided by the majority
of owners must be approved by the HLURB
and
a. City/Municipal Mayor
b. City/Municipal Council
c. City/Municipal Engineer
d. City/Municipal Development Planning
Officer
376. Easement is to real property, usufruct is to:
a. Personal property
b. Real property
c. Personal or real property
d. None of the above
377. Which of the following statement is not true?
a. Full ownership equals naked ownership
plus usufruct
b. Usufruct equals naked ownership plus
full ownership
c. Naked ownership equals full ownership
minus usufruct
d. Usufruct equals full ownership minus
naked ownership
378. The zonal value of a property can be
obtained from
a. Assessor’s Office
b. Bureau of Internal Revenue
c. Land Registration Administration
d. All of the above
379. If the contract of Sale is to Deed of Sale;
Contract to Sell is to
a. Pacto de Retro Sale
b. Deed of Conditional Sale
c. Deed of Sale with Mortgage
d. Dacion en Pago
380. The following are properties of lands that
may be acquired for socialized housing
purpose under RA7279, except:
a. Lands owned by the government
b. Privately owned lands
c. Alienable lands of public domain
d. Registered but idle lands (should be
unregistered)
381. In subdivision selling, the sales is considered
a paid-up sale when the buyer has paid the:
a. Fifty percent of the purchase price
b. Reservation deposit
c. Stipulated earnest money
d. Required down payment
382. The rate of the property tax in a municipality
or city within Metro Manila is
a. Not more than one percent of the
assessed value
b. Not more than two percent of the
assessed value
c. Not more than ten percent of the
assessed value
d. Not more than fifteen percent of the
assessed value
383. A kind of survey where the shape of the
earth is taken into account in computing
result is known as.
a. Plane survey
b. Geodetic survey
c. Topographic survey
d. Cadastral survey
384. The rational approach of allocating available
land resources as equitably among
competing user group is
a. Land assembly
b. Land use plan
c. On-site development
d. Urban renewal
385. Registration of a real estate instrument can
be due course without the presentation of the
owner’s duplicate certificate of the title when
the document is
a. Notice of Adverse Claim
b. Notice of list pendens
c. Writ of attachment
d. All of the above
386. Special power of attorney are necessary in
the following cases, except
a. To perform acts of administration
b. To lease any real property for more than
a year
c. To convey real rights on immovable
property
d. To cancel any obligation gratuitously
387. In a sale a retro where it is stipulated that the
vendor has the right to repurchase the
property “when he has the means”, he has
10 to redeem it.
a. Three 3 years
b. Four 4 years
c. Ten 10 years
d. Twenty 20 years
388. The minimum educational requirement that
an application for a license as an appraiser is
a. Seventy two (72) units in college
b. Eight two (82) units in college
c. One hundred forty four(44)
d. College graduate, 4-years course
389. Which of the following government agencies
is in charge of the over-all strategies for the
country’s National Housing Program?
a. National Housing Authority
b. Housing and Land Use Regulatory Board
c. Housing and Urban Development
Coordinating Council
d. None of the above
390. Registration of sale of a five(5) hectare
agricultural land must be accompanied by
43
 a. DAR Conversion Permit b. Declining balance method
b. HLURB License to Sell c. Sum-of-the-years digit method
c. DAR Clearance d. Diminishing return method
d. LGU Development Permit 401. The technical description in the TCT of real
391. The following are public dominion, except property can readily be plotted on a sheet by
a. Navigate river converted into fishpond using the ff. data
b. Canal a. Bearing and lot points
c. Public plaza converted into housing b. Distance and lot points
d. Subdivision roads c. Bearing and tie line
392. In case of real property, prescription in good d. BLLM and tie line
faith is e. Distance and bearing from lot points
a. 5 years 402. 1:200 means
b. 15 years a. 1 cm is equal to 200 centimeters
c. 30 years b. 1 cm is equal to 12 meters
d. 10 years c. 1 meters is equal to 200 meters
393. Ownership of a piece of land can be d. 1 meters is equal to 20 meters
acquired through any of the following modes, 403. An appraisal principle which holds that the
except value of property tends to be enhance by
a. Tradition association with superior properties, is
b. Prescription a. Principle of infiltration
c. Occupation b. Principle of retrogression
d. Succession c. Principle of progression
394. a former natural born Filipino citizen can d. None of the above
acquired not more 5,000 sq. meters of land 404. It is refers to land located in the fringes of
in the urban area for business purposes built-up communities has the provincial
under characteristics but is
a. BP 185 a. Urban land
b. RA 7042 b. Urbanizable land
c. PD 957 c. Urban land
d. Act 2728 as amended d. Rural land
e. RA 8179 405. Jurisdiction for adjudication of buyer’s
395. The area of a triangular plot is computed by complaints subdivision developers is with
the formula: the
a. Length x width a. Housing and Urban Development and
b. ½ x length x width Coordinating Council
c. 2 x length x width b. National Housing Authority
d. Length x width x height c. National and Land Use Regulatory
396. It means that shortcut to foreclosure, the Board
mortgagor agrees to sell and transfer the d. Regular Courts
mortgage property of the mortgagee. 406. The bundle of rights which is inherent in
a. Dacion en pago ownership without any limitations those
b. Redemption imposed by law or contract is.
c. Pacto de retrod auction a. Free estate
397. Excluded from the coverage of CARP. b. Lease free estate
a. 9% c. Fee simple
b. 12% d. Tenancy in common
c. 15% 407. The study of current supply and demand
d. 18% or more slope conditions in a particular area for a specific
398. An annual levy on real property equivalent to type of property is
one (1) percent of the assessed value which a. Real estate appraising
shall be in addition to the basic real estate b. Cash Flow analysis
tax called c. Absorption estimate
a. Economic Real Estate Tax d. Market Analysis
b. Special Assessment fund Tax 408. In the absence of a prenuptial agreement,
c. Special Education Fund Tax the following are excluded from the
d. Ad Valorem Tax community property, except
399. A subdivision where 9% of the gross area is a. Property acquiring during the marriage by
spaces with 66 to 100 family lots per gratuitous title by either spouse; unless
hectares is called otherwise provided by the donor
a. Economic subdivision b. Fruits as well as income of property
b. Open market subd. mentioned in letter (a); unless otherwise
c. Socialized Housing provided by the donor
d. Low cost subdivision c. Property for personal and exclusive use
400. In the computation of depreciation of real of either spouse
properties, the method that is widely used d. Jewelry for personal and exclusive use
by practitioners is the of either spouse
a. Straight line method
44
 e. Property acquired before the marriage by
the either spouse who has legitimate APPRAISER/BROKERS’ EXAM REVIEWER
descendants by a former marriage and MOCK EXAM SET F
the first as well as the income, if any of
such property 417. What term is used to describe a study of the
409. The area reserved for parks, playgrounds cost benefits relationship of an economic
and recreational areas of a subdivision endeavor?
projects are: a. Investment analysis
a. Exclusively owned by the owner- b. Market analysis
developer c. Feasibility study
b. Co-owned by the developer and d. Cash flow analysis
purchasers of subdivision lots 418. What part of the USAP Section 1 states that
c. Non alienable public lands the appraiser must advise the clients when
d. None of the above the assignment calls for something different
410. The term of a condominium corporation is from the work required by the specific
a. 50 years guidelines?
b. Co-terminates with the duration of the a. Ethics provision
condominium project b. Departure provision
c. 25 years c. Competency provision
d. Subject to the agreement between the d. Jurisdiction exception
condominium corp. and the unit owner 419. The purposes of USAP is to:
411. Area required to be reserved for roads, alleys a. Delay government regulation
and open spaces in a subdivision with an b. Present information that will be
area of one (1) hectares or more. meaning full the client and will not be
a. Twenty percent (20%)of the gross area misleading in the market place
b. Thirty-five (35%) of the gross area c. Guarantee professionalism in appraisers
c. Twenty-five percent (25%) of the gross d. Present information that will be useful to
area appraisers
d. Thirty percent (30%) of the gross 420. Indicate whether each of the following is
412. For a space to be considered a condominium ordinary real estate or personal property
unit, it must a. Window screens
a. Be encompassed by the interior surface b. Bathtub in masters bedrooms
of the walls, floors, ceiling c. Central air conditioning
b. Be managed by a condominium d. Kitchen cabinets
corporation e. Child movable playhouse
c. Be susceptible of independent use f. Childs movable playhouse (all are real
and ownership estate this)
d. Be unencumbered by any restriction g. Rosebushes
413. In case of foreclosure sale where right of 421. The property of a person who die leaving no
redemption is not exercise by the mortgagor- heirs passes the state the right of:
owner, who pays the captain gains tax? a. Acquisition
a. Owner-mortgagor b. Condemnation
b. Creditor-bank c. Escheat
c. Buyer of the property d. Eminent domain
d. None of the above 422. Condemnation of public property for public
414. It is a contract granting a person the privilege use called the right of:
to buy or not to buy certain objects at a. Seizure
anytime with the agreed period at a fixed b. Escheat
price. c. Eminent domain
a. Solicitacion d. Acquisition
b. Option Contract 423. An appraisal may include
c. Aleatory Contract a. Property description
d. Pacto de Retro Sale b. Estimate value
415. It is an encumbrance imposed upon an c. Opinion of property condition
immovable for the benefits of another d. All of the above
immovable belonging another 424. The form of deed to return title to real estate
a. Nuisance per accidents to its owner when the debt secured by a
b. Right of way deed of trust or pacto de retro sale is paid in
c. Private nuisance is the
d. Easement a. Warranty deed
416. A special power to sell a realty carries with it b. Quitclaim deed
all the following except the c. Reconveyance deed
a. Power to find a purchaser d. Tax deed
b. Power to sell directly 425. The form of deed that makes no warranties
c. Power to sell only for cash express or implied , is the
d. Power to fix the term of the sale a. Gran deed
e. Power to sell on credit b. Quitclaim deed
45
 c. Reconveyance deed next door to a vacant lot you own.
d. Tax deed Property values in the area of the
426. A type of real estate featuring ownership of proposed site will tend to increase as a
air space as well as an interest in common in result of his announcement.
the entire parcel is a d. The rental value of vacant land can
a. Subdivision sometimes be greater that it would be if
b. CMP the land were improved with a building.
c. Condominium e. In may commercial or downtown areas,
d. Life estate parking lots make more profit than older
427. A life estate is a (n) office buildings.
a. Present, possessory interest f. Any investor will probably pay more for
b. Future interest the last 20 lots in an area where the
c. Fee simple defeasible demand for house for houses is great
d. Estate of tenancy than the first 20 lots in the same area.
428. Under our family Code of 1988, property g. The cost of installing an air-conditioning
acquired by gift or inheritance by a spouse in an apartment building is justified only if
after marriage with no pre-nuptial agreement the rental increase that can be expected
made is under as a result of the installation exceeds the
a. Absolute community amount spent
b. Absolute separation 436. Decide which appraisal approach(es) would
c. Conjugal partnership of gains normally carry the most weight in valuing
d. All of the above each of the following properties
429. A subdivision map is referred to in the a. A factory
a. Lot and block system b. An automobiles showroom and garage
b. Both a and b c. A public building formerly used a town
c. Lot block and tract system hall
d. Neither a nor b d. Farmland surround by commercial and in
430. The scientific study of population statistic is a busy downtown business district
a. Scientography e. An one-storey retail in a busy downtown
b. Demography business district
c. Segmentation f. An older, single-family residence in a
d. Forecasting neighborhood rezoned to permit high rise
431. The amount initially paid for good or services apartments
is its g. A medical office building in a suburban
a. Price shopping center
b. Investment value h. A single family, owner-occupied
c. Market value residence
d. Cost i. A place of ownership
432. Market value is based on j. A small abandoned roadside restaurant
a. Insurable value adjacent to a new apartment complex
b. Higher price 437. The appraisal approach that would be most
c. Most probable price useful in valuing
d. Value in use a. Single-family residential property
433. Short-term financing instruments are part b. Investment property
of the c. Public and religious use properties
a. Money market 438. The reliability of an appraisal depends on the
b. Absorption a. Knowledge and judgment of the appraiser
c. Capital market b. Accuracy of the data used
d. Feasibility c. Both a and b
434. Longer-term financing instruments are d. Neither a nor b
part of the 439. The sales comparison approach relies on the
a. Money market principle of
b. Absorption analysis a. Anticipation
c. Capital market b. Substitution
d. Feasibility c. Leverage
435. Identify the major value principle describe in d. Highest and best-use
each case below: 440. Another name for sale comparison
a. A less expensive house trends to gain in a. Cost approach
value because of more expensive b. Market data approach
neighborhood houses c. Income approach
Answer: Progression d. Substitution approach
b. The value of a property tends to be 441. The ratio of total operating expenses to
limited by what it costs to buy another effect gross income is the
property similar in physician a. Operating expense ratio
characteristics, function, or income. b. Effective gross income ratio
c. Plans have been announced for a multi- c. Net income ratio
million peso shopping center to be built d. Break-even ratio
46
442. The ratio of net operating income to c. 8.5
effective gross income is the d. 8.75 (3,412,500/390,000)
a. Operating expenses ratio 450. A single family residence that sold recently
b. Effective gross income ratio for P2,850,000.00 can be rented for
c. Net income ratio P14,000.00 per month. The property’s gross
d. Break even ratio rent multiplier
443. The ratio of operating expenses plus a. 17
annual debt service to potential gross b. 204 (2,850,000/14,000)
income is the c. 207
a. Operating expense ratio d. 210
b. Effective gross income ratio 451. Vacancy and collection losses are deducted
c. Net income ratio from gross income using a(n)
d. Break even ratio a. potential gross income multiplier
444. A building that has an effective e gross b. gross income multiplier
income of P500,000.00 and total operating c. Effective gross income multiplier
expenses of P100,000.00 has an operating d. Gross multiplier
expense ratio of what? 452. In the formula for the operating expenses
a. 0.10 ratio
b. 0.20 (100k/500k) a. Operating expense are divided by
c. 0.15 effective gross income
d. 0.25 b. Effective gross income is divided by
445. The building above (no. 48) has what net operating expenses
income ratio? c. Potential gross income is divided by
a. 0.80 (1-0.20) gross income
b. 1.0 d. Effective gross income is divided by
c. 0.90 potential gross income
d. 5.0 453. In the formula for the net income ratio
446. The arrive at net below operating income, a. Effective gross income is divided by
expenses are deducted from potential gross income
a. Operating profit b. Potential gross income is divided by
b. Effective gross income effective gross income
c. Gross income c. Effective gross is divided by net operating
d. None of these income
447. In the list below check each item that is not d. Net operating income divided by
an expense from the appraiser’s point of effective gross income
view:
1) Gas and electricity Appraiser’s/Broker Exam Reviewer
2) Depreciation of the building Mock Exam Set H
3) Water
4) Realty tax 454. Refers to real estate services act of the Phils
5) Building insurance of 2009
6) Income tax a. RA6732
7) Supplies b. RA6552
8) Payment on air conditioners c. RA9646
9) Janitors salary d. RA9700
10)Management fees e. RA8763
11)Repairs and maintenance 455. Deadline of effectivity of Real estate service
12)Legal and accounting fees act of the Phils.
13)Principal and interest on mortgage a. July 30, 2009
14)Advertising b. July 30, 2010
15)Painting and decorating c. July 30, 2010
16)Depreciation on equipment d. June 30, 2010
17)Salaries and wages of employees e. July 1, 2009
18)Reserve for replacements 456. Deadline of registration without examination
19)Payments on stoves and refrigerators per IRR of Real estate services act of the
448. If a property’s net income ratio is 0.85, what Phils.
is its operating ratio? a. June 30, 2011
a. 0.15 b. July 30, 2011
b. 1.50 c. Dec 31, 2010
c. 0.58 d. Dec 30, 2011
d. 0.015 e. July 1, 2011
449. A commercial property producing an annual 457. License expired on December 31, 2009
gross income of P390,000.00 was sold two (Registration without examination)
months age for P3,412,500.00.What is the a. 12 hrs
property’s gross income multiplier? b. 15 hours
a. 7 c. 18 hrs
b. 7.75 d. 24 hours
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 e. 120 hours 467. For practicing real estate without the required
458. License expired on December 31, 2008 license maybe penalized by imprisonment of
a. 12 hrs no less than
b. 15 hours a. 6 months
c. 15 hrs b. One year
d. 24 hours c. 2 years
e. 120 hours d. 4 years
459. License expired on December 31, 1995 e. 3 years
a. 12 hrs 468. Licensed practitioner who violated RESA law
b. 15 hours may be penalized by improvement of no less
c. 18 hrs than
d. 24 hours a. 6 months
e. 120 hours b. One year
460. Passed the exam on 2008, unable to secure c. 2 years
license from DTI, CPE required d. 4 years
a. 12 hrs e. 3 years
b. 15 hours
c. 18 hrs REAL ESTATE LAWS
d. 24 hours
e. 120 hours 469. Refers to law on acquisition by an natural
461. Passed the exam on 2007, unable to secure born Filipino citizen on residential
license from DTI, CPE required property
a. 12 hrs a. RA6732
b. 15 hours b. RA552
c. 18 hrs c. RA9653
d. 24 hours d. RA9700
e. 120 hours e. BP 185
462. Passed the exam on 2000, unable to secure 470. Refers to law on acquisition by a natural
license from DTI, CPE required in general born Filipino citizen on commercial
a. 12 hrs property
b. 15 hours a. RA6732
c. 18 hrs b. RA8179
d. 24 hours c. RA9653
e. 120 hours d. RA9700
463. Minimum acceptable number hours by a e. BPI185
service provider for brokers exam general 471. Urban Development and Housing Act
a. 18 hrs a. RA6732
b. 15 hours b. RA6552
c. 24 hrs c. RA9653
d. 60 hours d. RA9700
e. 120 hours e. RA7279
464. Minimum acceptable number of training 472. Property Registration Decree
hours by a service provider for salesman with a. PD 957
3-year experience from the effectivity of the b. PD 1529
law but without DTI salesmans license in c. PD 1517
general d. PD 1216
a. 18 hrs e. PD 471
b. 15 hours 473. Dual citizenship law
c. 24 hrs a. RA6732
d. 60 hours b. RA6552
e. 120 hours c. RA9653
465. For practicing real estate without the license d. RA9700
is penalized in an amount of no less than e. RA9225
a. P100k 474. Law that allows foreign investors to private
b. P150K for a maximum of 50 yrs renewable once
c. P200K for 25 yrs
d. P50K a. RA6732
e. P20k b. RA6552
466. However, a license practitioner who violated c. RA9653
RESA Lawe is penalized is an amount of no d. RA9700
less than e. RA7652
a. P100K 475. Law defining “open space” in residential
b. P200K subdivision
c. P50K a. PD957
d. P20K b. RA6552
c. RA9653
d. RA9700
48
 e. PD1216 486. Law which regulate the development and
476. Rent Control Law of 2009 sale of subdivision and condominium
a. RA9632 a. PD 957
b. RA9646 b. PD 1529
c. RA9653 c. PD 1517
d. RA9700 d. PD27
e. 8974 e. PD471
477. Exproriation Law of 2000 487. Tenants Emancipation Decree for price
a. RA6732 and corn lands
b. RA6552 a. PD 957
c. RA9653 b. PD 1529
d. RA9700 c. PD1517
e. RA8974 d. PD27
478. Comprehensive Agrarian Reform Law of e. PD471
1988 488. Law which prohibits the eviction of occupants
a. RA6732 from lands identification and proclaim as
b. PD1517 APDs or ULRZs and exempting such land
c. RA9653 form payment of realty tax (July 23, 1986)
d. RA9700 a. PD 957
e. RA6657 b. PD 1529
479. Family Code of 1988 c. PD1517
a. PD 957 d. PD2016
b. EO90 e. PD471
c. RA9653 489. An act authorizing Ministry of Human
d. RA9700 Settlements (now HLURB) to establish and
e. E.O. 209 promulgate different levels of standards for
480. National Shelter Program, designated economic and socialized housing.
HLURB as the sole regulatory body of a. PD 957
housing and land devt. b. PD 1529
a. PD957 c. PD 1517
b. EO90 d. BPI185
c. RA9653 e. BP220
d. RA9700 490. Condominium Law
e. E.O. 209 a. PD 957
481. Home guaranty/Magna Carta for b. RA6552
Homeowners & Homeowners Association c. RA4726
a. RA 6732 d. RA9700
b. RA 6552 e. RA9225
c. RA9653 22. An act allowing reconstitution of title
d. RA8763 administratively destroyed by fire, flood, etc
e. BPI185 (June 8, 1989)
482. Law where HLURB assumed the functions a. PD 957
of NHA on real estate management b. RA6552
a. RA6732 c. RA4726
b. RA8179 d. RA9700
c. RA9653 e. RA6732
d. RA9700 491. Law which discontinue the Spanish Mortgage
e. EO648 Law system of registration (Feb. 16, 1976)
483. Maceda law of 1972 a. PD 957
a. Ra6732 b. PD 1096
b. Ra6552 c. PD 1529
c. Ra9653 d. PD772
d. Ra9700 e. PD892
e. Ra7279 492. Anti squatting law (August 20, 1975)
484. Subdivision and condominium Buyers a. PD 957
Protective Decree b. OD 1096
a. PD 957 c. PD1529
b. PD 1529 d. PD772
c. PD 1517 e. RA7279
d. PD 1216 493. An act providing legitimization of children
e. PD471 born to parents below marrying age
485. Dual citizenship law a. RA6732
a. RA6732 b. RA9858
b. RA6552 c. RA9653
c. RA9653 d. RA9700
d. RA9700 e. RA9225
e. RA9225
49
494. An act provides that age of majority
commences at 18 years as incorporated
under Art 234 of the Family Code
a. RA6732
b. RA9858
c. RA9653
d. RA6809
e. RA9225
495. Law which create DENR, recognization and
remaining Dept of Environment , Energy and
Natural Resources as DENR (June 10, 1987)
a. PD957
b. EO90
c. RA9653
d. EO192
e. E.O. 209
496. LOCAL Government Code of 1991
a. RA8424
b. RA7279
c. RA9653
d. RA9700
e. RA7160
497. Tax Retorn Act of 1997
a. RA8424
b. RA7279
c. RA9653
d. RA6552
e. RA4726
498. Brokerage Law
a. RA8424
b. RA2728
c. RA9653
d. RA6552
e. RA4726

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