1 | Basic Appraisal by Engr.

Manley Salazar, REB, REA

REBLEX SAMPLE QUESTIONS – BASIC APPRAISAL

By Engr. Manley Salazar, REB, REA

1. List the physical characteristic of land that best fits each description.
a. Land is not standardized. (non-homogeinity)
b. Location of land cannot be changed. (immobility)
c. Land is durable and does not wear out. (indestructibility)

2. List the economic characteristic of land that best fits each description.
a. Investments in land are long term. (fixity)
b. Changes in land will affect its value. (modification)
c. Buyers prefer some locations over others. (situs)
d. The supply of land is fixed. (scarcity)

Are the following statements true (T) or false (F)?

a. Land’s indestructibility makes it easily regulated by local government. (F)
b. Scarcity means that we do not have enough land to satisfy demand. (F)
c. The characteristic of modification means that the changes will always increase a property’s value.
(F)

List the term that best matches each of the following descriptions.
3. The physical characteristic of real estate that land cannot be destroyed. (indestructibility)
4. The economic characteristic of real estate that changes in land may affect its value as well as the
value of surrounding properties. (modification)
5. The physical characteristic of real estate that land cannot be moved. (immobility)
6. The economic characteristic of real estate that refers to the limited supply of land. (scarcity)
7. The economic characteristic of real estate that no two parcels of real estate are alike.
(Non-homogeneity)
8. Investments in real estate are for the long term. (fixity)
9. Refers to people’s preference for some areas over others. (situs)
10. Name the factor affecting the supply or demand for real estate that best fits each description.
a. A measure for the number of units that are not occupied. (vacancy rate)
b. The availability of carpenters and other workers. (supply of labor)
c. The number of people in an area. (population)
d. Zoning laws regulating the type of real estate construction (government controls)
e. The number of people without jobs. (employment levels)
f. Setting interest rates for the country’s money supply. (government financial policy)

Are the following statements true (T) or false (F)?

11. The real estate market is relatively quick to adjust to the forces of supply and demand. (F)
12. If the demand for real estate decreases and the supply increases, prices will increase. (F)
13. If the supply of real estate decreases and the demand increases, prices will increase. (T)
14. Divides real estate markets into submarkets (market segmentation)
15. Details the characteristics of the population (demographics)
16. The percentage of building units that are not occupied (vacancy levels)

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17. List the components included in each of the following terms:

a. Land : earth surface, below and above; natural things attached
b. Real estate : same as above; artificial things attached
c. Real property : land and real estate + interest or rights of ownership

Are the following statements true (T) or false (F)?

18. Trees and shrubs found naturally growing on the property would be considered improvements. (F)
19. Land that is unimproved also might be called raw land. (T)

20. Additions to the property that are created artificially rather than by nature. (improvements)

21. List the test for a fixture that corresponds to each description.
a. The item is securely bolted to the wall. (method of attachment)
b. The item was constructed that so that it would fit into the wall space next to the fireplace.
(adaptation of the article to the real estate)
c. The item is specifically listed in the lease agreement. (intention of the parties)

Are the following statements true (T) or false (F)?

22. Another name for personal property is chattel property. (T)
23. The primary characteristic of personal property is mobility. (F)
24. A trade fixture is considered real property. (F)
25. Objects can be converted from personal property to real property, but not from real property to
personal property. (F)

Supply the term that best matches each of the following descriptions.
26. An item that was once personal property but has been attached to the real estate and has become real
property (fixture)
27. Annual crops on the property that are cultivated by the owner (emblements or fruits)
28. The process of changing real property to personal property (severance)
29. A type of fixture that remains personal property and can be removed by the tenant. (Trade fixture)
30. The process of changing personal property to real property. (attachment)

31. The physical characteristic of real property that no two parcels of land are exactly alike is called - B
a. Immobility c. Situs
b. Non-homogeneity d. Indestructibility

32. The economic characteristics of real property include all of the following except - A
a. Non-homogeneity c. Situs
b. Scarcity d. Fixity (permanence of investment)

33. Which of the following factors would not be considered when determining whether an item of
personal property has become real? - C
a. Method of attachment c. Value of the item
b. Permanence of the installation d. Agreement between the parties

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34. A shopping mall is an example of what type of real estate? - C

a. Industrial c. Commercial
b. Residential d. Special purpose

41. The economic characteristic of scarcity refers to which of the following? - B

a. No two parcels of land are exactly alike
b. There may not be enough land in certain areas to satisfy demand
c. People prefer certain areas
d. The real estate industry has run out of land to continue sufficient development

42. Included in the term real property - D

a. Is anything permanently affixed to the land
b. Are the air rights to the property
c. Are mineral rights to the property
d. All of the above

43. The economic characteristic of situs refers to which of the following? - C

a. No two parcels of land are exactly alike.
b. There may not be enough land in certain areas to satisfy demand
c. People prefer certain areas
d. Land cannot be destroyed

44. A warehouse is an example of what type of real estate? - B

a. Residential c. Special purpose
b. Industrial d. Commercial

45. Of the following items, which would be considered personal property? - A

a. A store’s display counters c. An installed dishwasher
b. A garage d. Growing bushes

46. In the real estate market, supply and demand interact to affect property prices. Which of the following
relationship is not correct? - A
a. When demand decreases, prices increase
b. When supply increase, price decrease
c. When demand decreases, price decrease
d. When supply decreases, price increase

47. The physical characteristics of real property include all of the following except - B
a. Non-homogeneity c. Immobility
b. Situs d. Indestructibility

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48. Which of the following factors would not be considered when determining whether an item of
personal property has become real? - D
a. Agreement between the parties
b. Method of attachment
c. Permanence of the installation
d. The length of time the item was been attached to the property

49. In the real estate market there are several factors that affect the supply and demand of real estate.
Which of the following would not affect the supply of real estate? - A
a. The demographics of the county’s population
b. The availability of building supplies
c. Changes in the local government’s zoning codes
d. The availability of skilled construction labor

50. The term land includes all of the following except - D

a. Trees growing on the property c. Below the property to the center of the earth
b. The property’s surface d. A shed constructed on the property

51. An office building is an example of what type of real estate? - D

a. Residential c. Industrial
b. Special purpose d. Commercial

52. A mobile home on a permanent foundation most likely would be considered - C

a. Chattel property c. Real property
b. A trade fixture d. Personal property

53. The economic characteristic of fixity refers to which of the following statements? - A
a. Investments in real estate are usually for the long term
b. Land cannot be destroyed
c. Land cannot be removed
d. No two parcels of land are exactly alike

54. All of the following are true regarding emblements except they - C
a. Are also called fructus industrials
b. Include cultivated crops
c. Are considered real property
d. Are also called fruits of industry

55. Which of the following is considered to be personal property? - B

a. Trees growing on the property
b. Trade fixtures installed on the property
c. A garage

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d. A driveway

56. Which economic characteristic of real estate refers to the concept that changes in a parcel of land
affect its value either favorably or unfavorably? - D
a. Fixity c. Non-homogeneity
b. Scarcity d. Modifications
57. A tenant occupies a rental unit in an apartment building and installs new wooden kitchen cabinets. At
the end of the lease the tenant wishes to remove the cabinets. Which of the following is true regarding
removal of the cabinets? - D
a. The cabinets can be removed by the tenant
b. The cabinets can be removed, but the tenant owes compensation to the property owner
c. The cabinets must stay, but the tenant is entitled to compensation
d. The cabinets must stay

58. A church is an example of what type of real estate? - B

a. Residential c. Industrial
b. Special purpose d. Commercial

59. A restaurant owner occupying a leased space in a commercial building installs a large neon sign in the
window. The sign would probably be considered - B
a. An emblements c. Real property
b. A trade fixture d. A fixture

60. What physical characteristic makes real estate easy for local governments to tax and cause it to be
heavily influenced by changes in the surrounding areas? - C
a. Indestructibility c. Immobility
b. Non-homogeneity d. Situs

61. Which of the following is included in the definition of real estate but not in the definition of land? - D
a. The air rights c. Below the property to the center of the earth
b. The property’s surface d. Fixtures on the property

62. Which economic characteristic of real estate refers to the concept that the supply of land is limited
and therefore strong demand in certain areas will increase property values? - B
a. Fixity c. Non-homogeneity
b. Scarcity d. Modifications

63. Name at least two examples of police powers.

a. Zoning laws, rent control, easement
b. Building ordinance, environmental laws

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Are the following statements true (T) or false (F)?

64. Building codes regulate the purposes for which buildings may be used. (F)
65. Amendments, unlike variances, require a change to the zoning laws. (T)
66. Zoning laws are not set by the federal government. (T)
67. How does a town obtain its power to control land through zoning laws? Answer: ordinance or
enabling laws
68. Under what circumstances might a nonconforming use be brought back into conformance with zoning
laws?
a. Following reasonable time for phasing out (like industrial to commercial)
b. The structure is destroyed
c. The non-conforming use is abandoned.
d. Title to the property is transferred

Supply the term that best matches each of the following descriptions.
69. The government power to create laws to protect the public health and safety and promote the general
welfare (police power)
70. Local laws that regulate the control and use of land. (zoning laws)
71. Use in existence prior to the zoning law that is allowed to continue. (non-conforming use)
72. Changing an area from higher-density use to lower-density use. (downzoning)
73. Permission for a property owner to use the land in a way not allowed under the zoning law. (variance
)
74. Enacted to protect the public health and safety from inferior construction practices. (building codes)
75. Permission granted by a local government to build a specific structure. (building permit)
76. A document issued by a local government permitting a new building to be occupied that is issued only
if the building is in compliance with building codes (certificate of occupancy)
77. Name the element of value the best fits each description.
a. Wanted by someone with the purchasing power to obtain it. (demand)
b. Refers to the supply of something in relation to the demand for it. (scarcity)
c. Satisfies a need. (utility)
d. Ability to pass title to someone else (transferability)

Are the following statements true (T) or false (F)?

78. The appraiser’s objective is to estimate the market price of the property. (F)
79. A parcel of real estate may have many values at one time. (T)
80. The market value is the highest price the property will bring on the open market. (F)

Supply the term that best matches each of the following descriptions.
81. The total in pesos for replacing the land and constructing the improvements on the property (cost)
82. The most probable price for a property if payment is made in cash and the parties are knowledgeable,
well informed, and acting without pressure (market value)
83. What a property actually sells for (price)
84. The process of estimating and supporting an opinion of value (appraisal)

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85. Name the economic principle that best fits each description. (Principles of Values)
a. A property’s value is diminished by P10,000 because it lacks a garage. (contribution)
b. An owner adds a fourth bedroom to her home and realizes a significant gain in property value.
The addition of a fifth bedroom a year later results in only a modest increase in value. (increasing
and diminishing balance)
c. A prospective buyer believes a suburb will be passing a rent control ordinance. (anticipation)
d. After reviewing a property, a buyer decides that its greatest value could be realized if a strip mall
was built on it. (HBU)
e. A developer decides to assemble four adjacent lots so than an office building can be built.
(plottage)
f. A property’s value passes through a renewal phase. (change)
g. A property owner’s house is worth approximately the same as other similar houses on the block.
(substitution)
h. A homeowner’s property value suffers because it is next to a house that has become rundown.
(regression)
i. A homeowner’s property value benefits because it is next to a house that recently has been
renovated. (progression)

Are the following statements true (T) or false (F)?

86. A property’s highest and best use is the always the existing use of the property. (F)
87. The principle of contribution provides that the value of the property will increase by the cost of any
improvements. (F)
88. The highest and best use of a property may change. (T)

Supply the term that best matches each of the following descriptions. (Principles of Values)
89. The value of property is maximized if it is used in the same way as neighboring properties.
(conformity)
90. The value of real estate does not remain constant. (change)
91. Effect on the value of property based on some future event. (anticipation)
92. Effect of an improvement on a property’s value. (contribution)
93. Property values change as these two forces adjust themselves in the real estate market. (supply and
demand)
94. Process of merging lots. (assemblage or consolidation)
95. The value of a better property will decrease if it is near a poorer quality property. (regression)
96. Combining lots to increase the value of the new larger lot over the sum
of the smaller ones. (plottage)
97. The value of a poorer property will increase if it is near a better quality property. (progression)
98. The one legal use that provides a property its greatest value. ( HBU)
99. The maximum value of a property is equal to the cost of purchasing an equally desirable property.
(substitution)

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