Started on Sunday, 7 July 2024, 8:13 PM

State Finished
Completed on Sunday, 7 July 2024, 9:36 PM
Time taken 1 hour 23 mins
Grade 80.00 out of 100.00

Question 1

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001. Accrued depreciation is not applicable to:

a. Land 
b. Improvements
c. Unique properties
d. Single family homes

The correct answer is: Land

Question 2

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002. Adjustment for real property rights conveyed reflect:

a. The differences in the motivations of the sellers and buyers on the date of sale
b. The differences in the market on the effective date and the comparable 
c. The differences in the rights in rights in realty transferred between the subject and comparable
d. Physical differences in the subject and the comparable

The correct answer is: The differences in the rights in rights in realty transferred between the subject and comparable
Question 3

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003. Adjustment are made:

a. To the comparable to make them like the market

b. To the subject to make it like the market
c. To the subject to make it like the comparable
d. To the comparable to make them like the subject appraised 

The correct answer is: To the comparable to make them like the subject appraised

Question 4
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004. After accepting assignments are made:

a. Keep quiet so that nobody will know further.

b. Take all steps necessary or appropriate to complete the assignment competently.
c. Describe in the report the appraiser’s lack of knowledge and/or experience and the steps taken to complete the assignment
competently.
d. All of these 

The correct answer is: Describe in the report the appraiser’s lack of knowledge and/or experience and the steps taken to complete the
assignment competently.

Question 5

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005. After two of more approaches to value have been tested, the appraiser should:

a. Use the highest amount estimated

b. Rely on the asking price
c. Apply the reconciliation process 
d. Average the result

The correct answer is: Apply the reconciliation process

Question 6

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006. All but which of the following expenses is subtracted from a property’s gross income to determine its net income?

a. Maintenance
b. Income taxes 
c. Management
d. Insurance expense

The correct answer is: Income taxes

Question 7
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007. All of the following are examples of variable operating expenses except:

a. Use the highest amount estimated 

b. Rely on the asking price
c. Apply the reconciliation process
d. Average the result

The correct answer is: Use the highest amount estimated

Question 8
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008. All other factors being equal, as the location of an income property becomes less desirable, the cap rate used will be:

a. Lower
b. Higher 
c. Less reliable
d. Unaffected

The correct answer is: Higher

Question 9

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009. Among the various demographic effects on housing demand a highly mobile population will generally require more than a stable
population.

a. Financing
b. Rental units 
c. New construction
d. Bedroom

The correct answer is: Rental units

Question 10
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010. An account whose balance represents a third party’s interest in the assets of the company is a/an:

a. Capital account
b. Contra account
c. Asset account
d. Liability account 

The correct answer is: Liability account

Question 11

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011. An adjustable-rate mortgage, a straight note, and a fully amortized fixed-rate loan differ primarily in their:

a. Amount
b. Payment plan 
c. Security
d. Maturity period

The correct answer is: Payment plan

Question 12

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012. An affirmative statement attesting to the fact that the Valuer has followed the ethical and professional requirements in performing the
assignment

a. Compliance Statement 
b. Valuer’s Certifications
c. Statement of Facts and Limiting Conditions
d. None of these

The correct answer is: Compliance Statement

Question 13
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013. An allowance for vacancies and collections losses is usually calculated as a percentage of:

a. Net income
b. Actual gross income
c. Potential gross income 
d. Taxable income

The correct answer is: Potential gross income

Question 14

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014. An analysis of sales of several properties indicates a typical ratio of site value to total value. This ratio is then applied to the subject
property.

a. Sales comparison approach 

b. Allocation method
c. Extraction method
d. Land residual technique

The correct answer is: Allocation method

Question 15

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015. An appraisal consulting assignment:

a. Always includes an opinion of value 

b. Never includes an opinion of value
c. Sometimes include an opinion of value
d. Can include an opinion of value

The correct answer is: Always includes an opinion of value

Question 16
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016. An appraisal for the price that a property would sell for based on a quick sale would be | | estimating what type of value?

a. Market Value 
b. Use Value
c. Liquidation value
d. Going-concern value

The correct answer is: Liquidation value

Question 17
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017. An appraisal is made as of a specific date of:

a. Establish the due date of the fee

b. Prove that the appraiser inspected the property
c. Satisfy the requirements of the client
d. Indicate the date when the buyer agreed to purchase the property 

The correct answer is: Satisfy the requirements of the client

Question 18

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018. An appraisal is made as a specified date because:

a. The property may have changed since the appraiser inspected it

b. It expires 30 days thereafter
c. Market conditions change from time to time 
d. The buyer agrees to purchase the property on that date

The correct answer is: Market conditions change from time to time

Question 19
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019. An appraisal may include a/an:

a. Property description
b. Estimate of market value
c. Opinion of property condition
d. All of these 

The correct answer is: All of these

Question 20
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020. An appraisal of current market value is considered to be accurate for:

a. 90 days
b. Until the property is sold
c. One year
d. Hie date of the appraisal 

The correct answer is: Hie date of the appraisal

Question 21

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021. An appraiser considers a house’s lay-out, traffic patterns, and mechanical systems primarily as aspects of its:

a. Architectural quality 
b. Type and style
c. Amenity value
d. Functional utility

The correct answer is: Functional utility

Question 22
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022. An appraiser has determined that the annual NOI of the subject property P 1,300,000.00. By screening the market data, the appraiser has
compiled:

a. 77%
b. 0.7% 
c. 7.7%
d. 7%

The correct answer is: 7%

Question 23

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023. An appraiser inspected a property would probably take along a:

a. Clipboard
b. Measuring tape
c. Camera
d. All of these 

The correct answer is: All of these

Question 24

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024. An appraiser is analyzing the current market value of an investment property with a land value of P 100,000.00 (estimated by analyzing
comparable):

a. P 166,290.00
b. P 23,000.00
c. P 100,000.00 
d. P 266,290.00

The correct answer is: P 100,000.00

Question 25
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025. An appraiser looking at a neighborhood’s employment patterns might consider:

a. Total number employed

b. Mix of industries
c. Wage and skill levels
d. All of these 

The correct answer is: All of these

Question 26

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026. An appraiser value:

a. Creates
b. Estimates 
c. Establishes
d. Critiques

The correct answer is: Estimates

Question 27

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027. An appraiser who describes a property as an over-improvement for its neighborhood is primarily applying of:

a. Highest and best use

b. Balance
c. Conformity 
d. Demographics

The correct answer is: Conformity

Question 28
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028. An easement to protect certain historic properties through prohibition of certain physical changes is classified as a/an:

a. Easement appurtenant
b. Preservation easement 
c. Historic easement
d. All of the above

The correct answer is: Preservation easement

Question 29
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029. An economic environment in which a commodity is exchanged is known as a/an:

a. Value system
b. Market 
c. Economic base
d. Price mechanism

The correct answer is: Market

Question 30

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030. An effect caused by deterioration and/or obsolescence is:

a. Replaceable
b. Functional depreciation
c. Physical depreciation 
d. Economic obsolescence
e. All of the above

The correct answer is: All of the above

Question 31

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031. An estimate of the rate which a particular type of space will be sold each year is referred to as:

a. Presales
b. Occupancy 
c. Absorption
d. Rent up

The correct answer is: Absorption

Question 32
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032. An example of a trade fixture is:

a. Gasoline fuel pumps bolted to the ground in an owner-occupied property 

b. Gasoline fuel pumps bolted to the ground in a tenant-occupied property
c. The window blinds in an office building’s window
d. The kitchen sinks in your house

The correct answer is: Gasoline fuel pumps bolted to the ground in a tenant-occupied property
Question 33

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033. An example of external obsolescence in a single family residence could be the result of:

a. An outdated kitchen
b. Construction of a freeway adjacent to the property
c. Peeling exterior paint and cracked exterior stucco
d. A swimming pool taking up most of the back yard where today’s buyer would prefer a vegetable garden 

The correct answer is: Construction of a freeway adjacent to the property

Question 34
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034. A homeowner purchased two adjacent lots in a tract subdivision 20 years ago and built a single-unit residence entirely on one lot,
utilizing:

a. Surplus land
b. Vacant site
c. Excess land 
d. Underutilized site

The correct answer is: Excess land

Question 35

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035. An incurable functional problem is best defined as:

a. An item that is scheduled to be cured but has not yet been cured
b. An item that is already cured
c. An item that cannot be physically cured
d. An item that will not return as much in value as it cost to fix 

The correct answer is: An item that will not return as much in value as it cost to fix
Question 36

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036. An Internal Value is:

a. In the employ of either the entity that owns the assets or the accounting firm responsible for preparing the entity’s financial record
and/
b. Generally capable of meeting all the requirements of independence and professional objectivity required under the International
Valuation
c. Both of these 
d. None of these

The correct answer is: Both of these

Question 37
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037. An investor paid P 50,000,000.00 for a building that earns a net of P 5,000,000.00 per year. What is the capitalization rate of the
investment?

a. 9.5% pa
b. 10% pa 
c. 10.5% pa
d. None of these

The correct answer is: 10% pa

Question 38
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038. An item of depreciation is curable if:

a. It has any remaining economic life

b. The cost to cure is no greater than the replacement cost 
c. The cost to cure is less than the expected increase in value
d. The cost to cure is no greater than the reproduction cost

The correct answer is: The cost to cure is less than the expected increase in value
Question 39

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039. An office building constructed in 1998 for P 14,900,000.00 had a cost index at that time of 177. What present cost index is 354? The
estimated:

a. P 28,800,000.00
b. P 29,800,000.00 
c. P 30,800,000.00
d. None of these

The correct answer is: P 29,800,000.00

Question 40
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040. An operating expense ratio expresses the relationship between:

a. Total operating expense and total gross income

b. Total operating expense and effective gross income 
c. Variable operating expense and effective gross income
d. Variable operating expense and fixed operating expense

The correct answer is: Total operating expense and effective gross income

Question 41

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041. An opinion of market value via the sales comparison approach is through the eyes of the:

a. Uninformed buyers
b. Well-informed brokers
c. Well-informed sellers
d. Well-informed purchasers 

The correct answer is: Well-informed purchasers

Question 42

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042. An oral lease for one year on a business structure is:

a. Valid and enforceable 

b. Unenforceable
c. Valid but unenforceable
d. Illegal

The correct answer is: Valid and enforceable

Question 43
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043. An ownership “In severalty” is:

a. A title held by several people

b. Sole ownership 
c. A title which has been severed, or sold
d. A form of co-ownership

The correct answer is: Sole ownership

Question 44
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044. Another term for developer’s profit is:

a. Contractor’s profit
b. Entrepreneurial profit 
c. Project profit
d. Management profit

The correct answer is: Entrepreneurial profit

Question 45

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045. Appraisal is defined as:

a. Setting a value
b. An estimate of value 
c. A prediction of value
d. A mathematical calculation of value

The correct answer is: An estimate of value

Question 46
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046. Appraisals are always used:

a. To make residential mortgages

b. To settle divorces
c. To settle lawsuits
d. To solve problems that involve real estate valuation 

The correct answer is: To solve problems that involve real estate valuation

Question 47
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047. Appraised value is rounded to reflect the:

a. Exact anticipated sale price

b. Anticipated sales price to the nearest P 1,000.00
c. Most precise data used
d. Least precise data used 

The correct answer is: Least precise data used

Question 48

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048. Arrangements for access to landlocked parcel would most likely be described in the section of an appraisal report

a. Highest and best use

b. Improvements
c. Site 
d. Neighborhood

The correct answer is: Site

Question 49
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049. As with private sector assets, public sector assets fall into:

a. Operational assets
b. Non-operational assets
c. Both of these 
d. Either of these

The correct answer is: Both of these

Question 50
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050. Assets are:

a. Future economic benefits

b. Controlled by the entity
c. Resulting from past transactions or other past events
d. All of these 

The correct answer is: All of these

Question 51

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051. Assets that are inextricably combined with others and that may include specialized buildings, machinery, and equipment

a. Plant 
b. Machinery
c. Equipment
d. Business asset

The correct answer is: Plant

Question 52
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052. At the regional level, the real estate market is usually most affected by:

a. Population, income, and employment levels 

b. Government policies
c. Sociological factors
d. Availability of mortgages funds

The correct answer is: Population, income, and employment levels

Question 53
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053. Authorizes the local legislative body to enact land use plan and zoning ordinance:

a. National Internal Revenue Code (NIRC)

b. Local Government Code (LGC) 
c. New Civil Code (NCC)
d. Revised Administrative Code (RAC)

The correct answer is: Local Government Code (LGC)

Question 54

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054. Barricade around the construction site is a building.

a. Direct cost 
b. Indirect cost
c. Overhead expense
d. Incidental expense

The correct answer is: Direct cost

Question 55
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055. Base rate means:

a. The rent based on the net income

b. The minimum rent stipulated in a lease 
c. The rent covering the ground floor
d. None of the above

The correct answer is: The minimum rent stipulated in a lease

Question 56
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056. Basic demand for housing is almost always effective demand.

a. The same as
b. Greater than 
c. Less than
d. Unrelated to

The correct answer is: Less than

Question 57

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057. Basic information for the income capitalization approach is the:

a. Current cost of reproduction or replacement

b. Highest and best use
c. Earnings a property is capable of producing 
d. Most recent price paid by a willing buyer to a willing seller

The correct answer is: Earnings a property is capable of producing

Question 58
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058. Common interim uses include:

a. New car automobile

b. High-rise parking lots
c. Small office buildings with short leases
d. Surface parking lots 

The correct answer is: Surface parking lots

Question 59
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059. Condemnation of private property for public use is called the right of:

a. Seizure
b. Escheat
c. Eminent Domain 
d. Acquisition

The correct answer is: Eminent Domain

Question 60

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060. Contract rent is the:

a. Rent specified in the lease 

b. Rent which could be earned by the property in a competitive market
c. Profit from a business operated on the premises
d. Market rent

The correct answer is: Rent specified in the lease

Question 61
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061. Co-owners who have an equal right of possession coupled with a right of survivorship have:

a. Tenancy in common
b. Joint tenancy 
c. Tenancy in partnership
d. Marital property

The correct answer is: Joint tenancy

Question 62
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062. Cost indexes are used to:

a. Derive units of comparison

b. Catalog building components
c. Estimate operating expenses
d. Translate past costs to current costs 

The correct answer is: Translate past costs to current costs

Question 63

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063. Could a newly constructed building that is the highest and best use of its site ever be worth less than it cost?

a. No, because the market looks at highest and best use

b. Yes, due to external obsolescence
c. No, because physical deterioration takes at least a year to appear
d. Yes, due to functional obsolescence 

The correct answer is: Yes, due to functional obsolescence

Question 64
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064. Current listing that have been exposed to the market for a reasonable time:

a. Tell the appraiser what the subject*s investment value is 

b. Tell the appraiser what the subject*s in use is
c. Tell the appraiser what the subject’s market value is
d. Tell the appraiser what the subject’s market value cannot exceed

The correct answer is: Tell the appraiser what the subject’s market value is

Question 65
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065. Data requirements for an appraisal are primarily determined by:

a. The professional appraiser

b. The client
c. The nature of the problem 
d. Local custom

The correct answer is: The nature of the problem

Question 66

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066. Defect in a property cause by a deficiency or super adequacy in the structure, materials, or design would be an example of:

a. Curable functional obsolescence

b. Incurable functional obsolescence 
c. Curable economic obsolescence
d. Incurable economic obsolescence

The correct answer is: Incurable functional obsolescence

Question 67
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067. Deferred maintenance would most likely result in:

a. Incurable functional obsolescence

b. Curable functional obsolescence 
c. Incurable physical deterioration
d. Curable physical deterioration

The correct answer is: Curable physical deterioration

Question 68
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068. Demand for real estate may be affected by:

a. Increasing population and employment

b. Availability of mortgage financing
c. Increases in purchasing power
d. All of these 

The correct answer is: All of these

Question 69

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069. Demographic patterns such as family size, and community attitudes such as pride of ownership are examples of________factors
influencing:

a. Physical and environmental

b. Economic
c. Governmental and legal
d. Social 

The correct answer is: Social

Question 70
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070. Depending on market practice, entrepreneurial profit can be estimated as percentage of:

a. Direct and indirect costs plus land value

b. The value of the completed project
c. Both of these 
d. None of these

The correct answer is: Both of these

Question 71

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071. During the research of a subject property an appraiser learns the occupants (parents) have been granted a life estate by their children.
What?

a. Remainder-man 
b. Life tenant
c. Trustee
d. Trustor

The correct answer is: Remainder-man

Question 72

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072. Each product in a real estate market is unique because of its:

a. Market segment
b. Bundle of rights
c. Location and immobility 
d. Amenity value

The correct answer is: Location and immobility

Question 73
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073. Effective age is:

a. The economic life minus actual age

b. Actual age of properties with better-than-normal maintenance
c. Total economic life minus remaining economic life
d. Total utility minus diminished utility 

The correct answer is: Total utility minus diminished utility

Question 74
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074. Effective demand means:

a. Need or desire for a product or service

b. Need or desire coupled with ability to buy
c. Ability to buy, whether or not one is currently interested
d. Demand which can be met by the available supply at any given time 

The correct answer is: Demand which can be met by the available supply at any given time
Question 75

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075. Effective gross income (EGI) is the anticipated income from operation of a project after adjustment for:

a. Operating expenses
b. Vacancy and credit loss 
c. Realty tax and insurance
d. All of the above

The correct answer is: Vacancy and credit loss

Question 76
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076. Elements of comparison are:

a. Items that represent the bottom line price after all of the adjustments
b. Items that represent a breakdown of the prices paid for real estate to vary
c. The characteristics that cause the prices paid for real estate to vary 
d. A weatherman’s comparison report

The correct answer is: The characteristics that cause the prices paid for real estate to vary

Question 77
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077. Elements of comparison for which comparable data may be adjusted include:

a. Property rights conveyed

b. Financing terms
c. Physical characteristics of the property 
d. None of the above

The correct answer is: Physical characteristics of the property

Question 78

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078. Elements of comparison in the sales comparison approach include:

a. Net operating income

b. Financing terms
c. Accrued depreciation 
d. Vacancy rates

The correct answer is: Financing terms

Question 79
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079. Estimating market value requires identification of the desires and properties of:

a. Well-informed buyers and sellers 

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

The correct answer is: Well-informed buyers and sellers

Question 80
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080. Examples of assumptions that may be appropriate in different circumstances, or for different valuation purposes include:

a. That the plant and equipment are valued as a whole, in-situ (in place) and as part of the business as a going concern.
b. That the plant and equipment are valued in-situ but on the assumption that the business is closed.
c. That the plant and equipment is valued as individual terms for removal from their current location.
d. All of these 

The correct answer is: All of these

Question 81

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081. Expenditures made immediately after purchase:

a. Reflect the cost to update the property up to the new home market standards.
b. Reflect anything paid by the buyer during the warranty period.
c. Reflect the cost of replacing the decorating to bring the home up to the buyer’s standards.
d. Reflect anything the buyer knew they would have to correct and probably factored the cost of into the price paid. 

The correct answer is: Reflect anything the buyer knew they would have to correct and probably factored the cost of into the price paid.

Question 82
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082. Failure to perform a contract is a:

a. Rescission
b. Breach 
c. Novation
d. Reformation

The correct answer is: Breach

Question 83
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083. Financing terms adjustments reflect:

a. The differences in sale prices of properties that sold for cash or market value rate financing and the ones that sold with special
financing.
b. The differences in the market on the effective date and the comparable. 
c. The differences in sale prices of properties that sold for cash and the ones that sold with financing.
d. The differences in the motivations of the sellers and buyers on the date of sale.

The correct answer is: The differences in sale prices of properties that sold for cash or market value rate financing and the ones that sold with
special financing.
Question 84

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084. For a fully amortized loan, a longer maturity period means periodic payments and total amount paid.

a. Smaller, the same

b. Smaller, larger 
c. Larger, larger
d. The same, larger

The correct answer is: Smaller, larger

Question 85
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085. For appraising a large apartment building, which valuation method would probably be given the greater weight?

a. Cost depreciation
b. Development
c. Sales comparison
d. Income capitalization 

The correct answer is: Income capitalization

Question 86
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086. For assets in the public sector, the assumption equivalent to a business continuing as a going concern is that the public sector assets:

a. Will continue to be used for the provision of the relevant public good or service. 
b. Will cease to be used for the provision of the relevant public good or service
c. Both of the above
d. None of these

The correct answer is: Will continue to be used for the provision of the relevant public good or service.
Question 87

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087. For income tax purposes adjusted basis is original basis less:

a. Property improvements 
b. Excess depreciation
c. Allowable depreciation
d. Outstanding mortgage balance

The correct answer is: Allowable depreciation

Question 88
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088. For land sales to be used as comparable, they must be:

a. Competitive with the subject

b. Relatively recent
c. Open market transactions
d. All of these 

The correct answer is: All of these

Question 89
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089. For the appraisal of a single residential condominium unit, which approach to value is least appropriate?

a. Replacement cost 
b. Sales comparison
c. Income capitalization
d. Gross rent multiplier

The correct answer is: Income capitalization

Question 90

Correct

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090. From an appraisal standpoint, architecture, lay-out, and mechanical systems are primarily aspects of a structures:

a. Amenity value
b. Functional utility 
c. Value in exchange
d. Replacement or reproduction cost

The correct answer is: Functional utility

Question 91
Correct

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091. Functional obsolescence refers to loss of utility caused by:

a. Wearing out of function components

b. Factors inherent in the design of the property 
c. Factors external to the property
d. Deferred maintenance

The correct answer is: Factors inherent in the design of the property

Question 92
Correct

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092. Gentrification is:

a. A class of citizens who live in blighted areas

b. A process in which older homes in a neighborhood are remodeled and different residents replace the lower-income residents 
c. A group of complementary land uses
d. A part of the life cycle of a market area in which property values are stable and the maintenance levels are adequate

The correct answer is: A process in which older homes in a neighborhood are remodeled and different residents replace the lower-income
residents
Question 93

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093. Governmental influences include all of the following except:

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

The correct answer is: Changes in property use

Question 94
Correct

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094. Graphic analysis is an example of:

a. Quantitative adjustment
b. A computer used in land valuation only
c. Computer valuation using a graphics card
d. Quantitative analysis 

The correct answer is: Quantitative analysis

Question 95
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095. Gross rent multiplier analysis should be used in the appraisal of a single-family, owner-occupied house:

a. Never
b. Always, as one of the approaches which are reconciled in the final estimate
c. If there is an active buyer intends to rent the property out 
d. Only if the buyer intends to rent the property out

The correct answer is: Never

Question 96

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096. Growth rate, land use, transportation, utilities, and property compatibility are items in the section of the report:

a. Subject
b. Neighborhood 
c. Site
d. Improvements

The correct answer is: Neighborhood

Question 97
Correct

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097. Highest and best use:

a. Is specified by the client

b. Must be considered in all appraisals
c. Includes two parts when the property is improved, the highest and best use as though vacant and the highest and best 
d. Assumes demand for the property within the existing or proposed site

The correct answer is: Includes two parts when the property is improved, the highest and best use as though vacant and the highest and best

Question 98
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098. Highest and best use analysis is required in:

a. Value use in appraisals

b. All appraisals
c. Market Value approaches 
d. Investment value appraisals

The correct answer is: Market Value approaches

Question 99

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099. Highest and best use analysis requires an estimate of the use as though vacant and as improved to:

a. Estimate the value of the improvements

b. Ensure that appraisers recognize that the properly could be worth more without the improvements
c. Estimate functional obsolescence caused by inappropriate improvements
d. All of the above 

The correct answer is: All of the above

Question 100
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100. Highest and best use is addressed in which section of the report:

a. Improvements
b. Site 
c. Cost approach
d. None of these

The correct answer is: Site