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D1-FUNDAMENTALS OF REAL ESTATE APPRAISAL S1
D1-FUNDAMENTALS OF REAL ESTATE APPRAISAL S1
MULTIPLE CHOICE
1) The following are several methods of estimating depreciation, except –
A. Existing use
B. Immediate next use
C. Ordinary and necessary use
D. Most probable use that is legally and physically possible and provides the highest
financial returns
A. Depth
B. Frontage
C. Width
D. Abutment
A. Land regression
B. Over-improvement
C. Under-improvement
D. Functional obsolescence
A. Actual life
B. Useful life
C. Physical life
D. Effective life
10) It includes the ground or soil and everything which is attached to the earth whether by
nature or by man.
A. Land
B. Other land improvements
C. Building
D. Real property
11) Maximum area for acquisition of a former natural born Filipino for residential
purposes is –
12) When one or two parcels are consolidated so that its increment in value as whole is
much more than the total sum of the value of each parcel of land separately owned is called
–
A. Cost value
2 | PART 1 - GENERAL/FUNDAMENTALS OF REAL ESTATE SERVICE (8:00 AM – 10:00 AM)
B. Economic value
C. Market value
D. Plottage value
14) At present about 24.2 million parcels are within A&D allocated as follows:
16) The following are land tenure for urban and rural areas, except –
A. Absolute ownership
B. Less than absolute
C. Fee simple or freehold
D. Lease Fee or Leasehold
17) The right of the government to acquire private property for public use upon payment
of just
A. Police Power
B. Expropriation
C. Escheat
D. Eminent Domain
18) The estimated period over which the property as anticipated may profitably be
utilized is –
A. useful life
B. economic life
C. remaining economic life
D. cycle
20) A declaration which states that upon expiration of 2 years of holding a property
claimed, the person(s) unlawfully deprived of participation thereof upon presentation of a
verified petition from the registered heirs, legatees, creditors, the Register of Deeds shall
cancel the two (2) years liens annotated on title without a court order.
21) It is the reversion of private property to the State due to intestate death of the
principal.
A. Escheat
B. hereditary
C. Escrow
D. Sole heir
22) The power of eminent domain is exercised through the right of condemnation which
means that the public authority taking the property should not follow a legal procedure
A. True
B. False
C. It depends on the jurisdiction.
D. The statement is incomplete.
23) Refers to an interest belonging to the tenants created by virtue of a lease contract.
A. Leasehold Estate
B. Economic
C. Contract rent
D. Leased fee estate
A. Escheat
B. Police Power
C. Eminent Domain
D. Encroachment
25) Refers to the sudden removal of land from one parcel to another.
4 | PART 1 - GENERAL/FUNDAMENTALS OF REAL ESTATE SERVICE (8:00 AM – 10:00 AM)
A. Distribution
B. Avulsion
C. Alluvium
D. Substitution
26) In Eminent Domain cases, the courts have determined (just Compensation to mean
A. PUD
B. Condominium
C. Stock cooperative
D. Life estate
A. Zoning variance
B. Zoning board
C. Housing cooperative
D. Homeowner's association
29) The acquisition of title by adverse possession or open and uninterrupted possession in
the concept of owner is –
A. Prescription
B. Avulsion
C. Accretion
D. Alluvion
30) To be admitted to the licensure examination for real estate service, a candidate should
be:
31) No foreigner may be admitted to take the board exam nor be granted with the Special
or Temporary permit to practice in the Philippines unless there is –
A. Foreign Intervention
B. Foreign request
5 | PART 1 - GENERAL/FUNDAMENTALS OF REAL ESTATE SERVICE (8:00 AM – 10:00 AM)
C. Foreign reciprocity
D. Foreign arrangement
32) In order that a candidate may be deemed to have passed the examination, he/ she must
have obtained in all subjects with no rating below____________ in any subject.
A. 3 years
B. yearly
C. 2 years
D. 5 years
34) The only accredited and integrated professional organization of Real Estate Service
Practitioners is –
35) The highest price estimated in terms of money that a real property is acquired by a
buyer who is willing to buy and a seller who is willing to sell but is not obliged or anxious
to sell; both of whom have adequate knowledge of the actual and potential use of the
property offered for reasonable time in the open market and neither parties under pressure to
buy or sell.
A. Market Value
B. Valuation
C. Value in Use
D. Value in Exchange
36) The amount and duration of the Professional Indemnity Insurance of Real Estate
Appraiser is
37) Licensed and accredited persons found violating any provision of RA#9646 and its
IRR shall be imposed with a fine of –
38) Unlicensed persons found violating any provision of RA#9646 and its IRR shall be
imposed with a fine of –
39) Lawyers of PRC shall assist PRBRES in implementing the provision of RA#/964 and
shall act as _against Illegal practitioners and/or violators.
A. Investigator
B. Sheriff
C. Prosecutor
D. Lawyers
41) The following are the meaning of the seal of the PRBRES, which one is not correct?
A. Land - real estate; structures - improvement on land; trees & fruits -agriculture
produce; green lines - real estate practitioners
B. Red, white, blue, yellow - color of the Philippine flag, blue - service; green -
environment & ecology
C. Land - prime rice land; red - alertness, vigilance
D. Sun and rays - life & light; rising sun-vital role of RESP in Philippine progress; map
of the Philippines - the Philippine archipelago
42) Social, economic, governmental and environmental influences that affect property
value is called?
A. Laws
B. Forces
C. Factor
D. Consequences
44) The value of real estate is determined in the market mainly by its –
A. Price
B. Financing
C. Productivity
D. Location
46) One of the limitations on the exercise of right in fee simple is Eminent Domain and in
the exercise thereof it requires compliance of –
A. Will sell
B. Could sell
C. Should sell
D. Was sold -
a. 5 hectares for the landowners and 3 hectares per child irrespective of age
b. 5 hectares for the landowner and 3 hectares per child who should be at least 15
years old and actually tilling or managing the land
c. 5 hectares for the landowner and 3 hectares per child who should be at least 15 years
old
d. 5 hectares for landowner and 5 hectares per child whether or not they till or manage
the land
51) This law concerns natural-born Filipino citizens who has lost their Philippine
citizenship and would like to acquire private land herein for 1,000 sqm in urban area or 1
hectare in rural area for a maximum of 2 lots situated in different municipalities/cities
A. RA#7042 C. RA#9225
B. PD#957 D. BP#185
A. Client C. User
B. Appraiser D. Company
53) The law pertaining to natural born Filipino citizen who has lost their Philippine
Citizenship and has legal capacity to enter into contract may be a transferee of private land
of a maximum area of 5, 000 sqm in urban area or 3 hectares of rural lands.
54) Refers to a body responsible for the inculcating the skills and knowledge of the Real
Estate Professionals is called –
55) The PRBRES shall be appointed by after being recommended by PRC and
nominated by PhilRES- the AIPO of Real Estate Professionals
A. PD#27 c. EO#129
B. RA#6657 d. EO#128
A. Sale of private parties regardless of hectares executed before the effectivity of CARP
provided, the sale was registered with the Registered of Deeds within 3months from
June 15, 1988
B. Sale to private parties executed before the effectivity of CARP covering areas to
be retained in favor of transferees whose total landholdings including the land to
be acquired do not exceed 5 hectares
C. Sale to private parties executed after the effectivity of CARP covering areas to be
retained in favor of transferees whose total landholdings including the land to be
acquired do not exceed 5 hectares
D. Sale in favor of the government, Land Bank of Debt.of Agrarian Reform regardless of
hectarages; Sale by the beneficiaries after 10 years from the issuance and registration
of Certificate of Land Ownership Awards (CLOAs)
58) Tenants may be awarded five (5) hectares of unirrigated lands and if irrigated
lands.
A. 5 hectares c. 4 hectares
B. 6 hectares d. 3 hectares
60) As an Appraiser you were asked to do an assignment that includes a discounted cash
flow analysis, a technique which you have not been using. You should –
A. Disclose the lack of knowledge and/or experience to the client after accepting the
assignment
B. Take all necessary or appropriate the steps to complete the assignment
competently
C. Turn down the assignment
D. Associate with a colleague reasonably believed to have the necessary experience
61) A deceased owner died intestate without any debt or obligation, the document to be
executed by the sole heir transfer title of the land is called –
62) Real Estate Practitioners shall be governed by the following Rules of Conduct and
Practices, which one is not?
64) What are mandatory information to be reflected in the communications that the Real
Estate Appraiser signs in compliance with Section of RA#9546?
A. License numbers, PRC I.D Number., PhilRES Number & Receipt Number and
PTR including the validity thereof
B. License number, PhilRES Number and Receipt Number and PTR including the
validity thereof
C. License number, PhilRES Number and Receipt Number including the validity thereof
D. License number, PRC I.D Number, PhilRES Number and PTR including the validity
thereof
65) To the ethical Appraiser, the principle of full disclose dictates that vital information
that can affect the property or the transaction should be disclosed and explains to his client.
Which one of the following is contrary to an ethical disclosure?
67) That profession bond of the Real Estate Appraiser is _______for the purpose of
______.
70) If the typical occupancy rate in the vicinity of the Subject is 95%, what conclusion
would you have about the Subject that has 100% occupancy?
71) Which type of study test the ability of various proposed improvement to meet
investment objectives?
A. Market c. Marketability
B. Feasibility d. Cost-benefit
72) Which principle of value best confirms that values is the present worth of expected
future benefits?
74) Refers to a type of rental paid by tenants in ac commercial property based on sales
generated for a period and which is considered less reliable for appraisal purposes because it
is not guarantee is called –
77) The cost of identical utility or exact replica to the Subject property is called –
79) The period of right of Redemption in pacto de retro sale depends on the agreement of
80) The age indicated by the condition and utility of the structure is called –
A. Cost Method
B. Straight-line Method
C. Quantity Survey Method or Volume Method or Area Method
D. Market Method
84) An owner of a parcel of land leased the land to a tenant for 10 years. The next day to
the owner sells the land to a 3rd party. Which of the following statements is CORRECT?
85) Refers to a deed use to return real property title to the registered owner when the
mortgage secured by the deed is fully paid.
87) The extension of some improvements like: building, fence or driveway traversing the
legal boundary of an adjoining lot is –
A. Easement c. Emblements
B. Right-of-Way d. Encroachment
88) A mixed use condo project wanted to amend its Master Deed, what will basis of the
majority vote?
90) Mr. PJ owned a unit in LTBG Tower. He can sell the unit to anybody unless there is –
92) A voluntary transfer or conveyance of private property by private owner like: sale or
donation is considered –
A. Reclamation c. Inheritance
B. Private Grant d. Involuntary Grant
94) The entire parcel of real property divided including all structures thereon refers to –
95) In foreign Investments Act of 1991, a former natural born Filipino who became an
Australian citizen may not acquire land for the following purpose –
96) PTB Corporation mortgaged its property to a bank. For failure to pay its obligation
the collateral property was foreclosed and sold at public auction. What is maximum period
to redeem the property, if the certificate of sale is not yet registered?
97) Republic Act number 6552, or the Maceda Law is also referred to as the:
98) If a unit owner has unpaid assessments, the notice of assessment will be considered a
lien on the condominium unit if –
100) A property has 25 apartment units: 15 two-bedroom unit renting for P6,000 per month
each and 10 one bedroom unit renting for P3,000 per month each. There are 14-two
bedroom unit occupied and 8-one bedroom occupied. The potential gross income is –
A. P1.248M c. P1.440M
B. P1.249M d. P1.500M
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