ALPHA MOCK EXAMS Flashcards by Wendell Tan

The appraisal, assessment,
levy and collection of real
property tax shall be guided by
the following fundamental
principles, except:

A. Real property shall be appraised at
its current and assessed value
B. Real property shall be classified for
assessment purposes on the basis of
its actual use
C. Real property shall be assessed
on the basis of a uniform
classification within each local
government unit
D. The appraisal and assessment of
real property shall be equitable

A. Real property shall be appraised at
its current and assessed value

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In the conjugal partnership of
gains, what kind of property
does the spouses have, except

A. Gains realized by the joint or merged
property and efforts of spouses
B. Property from a game of chance
C. Winning from a game of chance
D. Property owned by spouses
exclusively

D. Property owned by spouses
exclusively

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The real estate service
practice is guided by a set of
prescribed rules of conduct,
morals and values embodied in
the

A. Rules of court
B. Appraiser’s code of ethics
C. professional code of governance
D. National code of ethics and
responsibilities

D. National code of ethics and
responsibilities

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Lessors’ right to possess
leased property upon
termination of the lease contract
is known as the right of

A. Termination
B. Remainder
C. covenant
D. Reversion

D. Reversion

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Is the assigning of new
assessed values to property,
particularly real estate, as the
result of a general, partial, or
individual reappraisal of the
property

A. Re-evaluation
B. Adjustment
C. Reassessment
D. Normalizing

C. Reassessment

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The term synergistic
value can be defined as

A. Incremental value created by
combining two or more sites to
produce greater utility
B. Value associated with the plot of the
land on which the improvement is built
C. Value of a plot of land according to
tax rolls
D. Total value of a parcel of land that
has subdivided

A. Incremental value created by
combining two or more sites to
produce greater utility

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An appraisal by more than
one appraiser, which states
common conclusions of all

A. Lot appraisal
B. Mass appraisal
C. Joint appraisal
D. Joint review

C. Joint appraisal

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Refers to a commercial,
industrial service or investment
entity pursuing an economic
activity

A. Financial interest
B. Shopping center
C. Commercial property
D. Business

D. Business

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Acquisition of private land by
the government for public use
could be undertaken thru the
following procedures, except

A. Negotiated sale or purchase
B. Expropriation
C. Exchange or barter
D. Foreclosure

D. Foreclosure

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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

A. Dominant estate

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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

A. Amenities

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What terms apply to the rent
specified in a lease?

A. Based rent
B. Market rent
C. Contract rent
D. Gross rent

C. Contract rent

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The following
terminates conjugal
partnership of gains, except:

A. Upon the death of either spouse
B. When the spouses have agreed
and are separated for more than 10
years
C. When the marriage is declared void
D. When there is a decree of legal
separation

B. When the spouses have agreed
and are separated for more than 10
years

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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

B. A process in which older homes in a
neighborhood are remodeled and
different residents replace the lower income residents

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The predominant
depreciation category for a
residential location on heavily
traveled national highway is

A. Physical deterioration—curable
B. Physical deterioration—long-lived
incurable
C. Functional obsolescence—curable
D. External obsolescence—
incurable

D. External obsolescence—
incurable

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You were recently asked to
appraise the Midnight blue
hostel. The bank asked you to
value the property for loan
purposes. The comparables
sales you used in this analysis
were all sales of the entire
operation. The income used in
your calculation was based on
the rental rate of each sleeping
room and the sales at the
restaurant and the bar. You are
most likely appraising

A. Market value of the fee simple
interest
B. Market value of the leased fee
interest
C. Going-concern value
D. Value in use

C. Going-concern value

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In a high demand market, the
cost of building a new property
will increase substantially until

A. It becomes impossible for prices to
go higher
B. The supply increases because
new builders get into the market
C. The charges from suppliers and
subcontractors go down
D. The BSP increases interest rates

B. The supply increases because
new builders get into the market

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Short term
financing instruments are part of
the

A. Capital market
B. Money market
C. feasibility study
D. absorption analysis

B. Money market

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Capital is

A. Accumulated wealth, a lump
sum available for investments
B. The location of the center of
government
C. A death sentence
D. The building in which a legislative
body meets

A. Accumulated wealth, a lump
sum available for investments

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Supply of single-family
residential properties is most
affected by

A. An increase in employment in
the area
B. A decrease in mortgage interest rate
C. An increase in the number of
apartments built
D. An increase in the number of homes
built

D. An increase in the number of homes
built

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Which of the following does
not belong to the real estate
service profession?

A. Appraiser
B. Dealer
C. Broker
D. Salesperson

B. Dealer

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Under the PVS, GN100 refers
to Mass Appraisal for property
taxation; while GN300 refers to

A. Reviewing valuations
B. Consideration of hazardous and
toxic substances in valuation
C. Valuation of agricultural
properties
D. Valuation of properties in the
extractive industries

A. Reviewing valuations

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A valuer who is employ or
either the entity that owns the
assets or the accounting firm
responsible for preparing the
entity’s financial record and/or
reports as a

A. External valuer
B. Internal valuer
C. general valuer
D. Assessor

B. Internal valuer

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The valuation
report communicates to users
and third-party readers the
following except

A. The value conclusion
B. Appraisal fee
C. Conforms the basis of the
valuation
D. Any assumptions or limiting

B. Appraisal fee

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If the metes and-bounds method of legally describing land is being used, which of the following statement is CORRECT? A. The straight point must be a natural benchmark B. There must be a define point of beginning C. Monuments cannot be used as part of the description D. No other methods, such as lot-and block, can be used as part of the description

B. There must be a define point of beginning

All of the following areas of regulation affect appraisers except A. PRC B. LGU Planning Office C. DTI D. Register of Deeds

D. Register of Deeds

REIT assets must be fully validated at least ______ by an independent appraiser/valuer duly accredited by the SEC: A. Once a year B. Once every two years C. Once every three years D. Once every five years

A. Once a year

The primary purpose of Truth in Lending is to: A. Disclose the true costs of obtaining credit B. Control the true costs to close a transaction C. Disclose the true costs of a loan only. D. Control interest rates on behalf of the consumer

A. Disclose the true costs of obtaining credit

The following are methods in estimating reproduction cost except A. Quantity survey method B. Observed condition breakdown method C. Unit-in-place method D. Per sq meter method

B. Observed condition breakdown method

As to distribution of the proceeds of Real Estate Tax Property. In case of province which shall accrue 35%, municipal 40%, and barangay is ____? A. 25% B. 30% C. 35% D. 40%

A. 25%

How many members of the Professional Regulatory Board shall represent the government assessors and appraisers who are in active government service? A. One (1) B. Two (2) C. Three (3) D. Four (4)

B. Two (2)

The assessment levels to be applied to the fair market value of real property to determine its assessed value shall be A. Exact B. Fixed C. Current D. Change every 3 years

B. Fixed

Buffer trips and public easements along rivers, lakes and coastal areas are marked out within a zone of certain number of meters in urban areas. A. 5 meters B. 10 meters C. 3 meters D. 20 meters

C. 3 meters

The total number of ethnolinguistic groups of indigenous people is A. 75 B. 100 C. 110 D. 130

C. 110

Which of the following if not valid criterion for a code of ethics A. Ethics is concern for good behavior not only for our own personal wellbeing but also of human society as whole B. Ethics is right for right’s sake C. Ethics is subservient to laws and regulations D. Ethics is having high moral sense

C. Ethics is subservient to laws and regulations

Neighborhood social influences includes all of the following except A. Occupant age levels B. Occupant skill levels C. Vacancy rates D. Population density

C. Vacancy rates

A legally non-conforming use is A. A use that was illegally established and maintained B. A use that was not legally established and maintained and still does not conform to existing zoning C. A use that was not legally established and maintained but the government is not enforcing the laws D. A use that was legally established and maintained but no longer conforms to existing zoning

D. A use that was legally established and maintained but no longer conforms to existing zoning

A real estate mall developer purchases a site with the intent of building a regional mall because the immediate area has a significant number of households, and the income level of those households is affluent. What type of force is the neighborhood going through? A. Social B. Governmental C. Economic D. Environmental

A. Social

Which of the following features represents physical data that must be considered by the appraiser? A. Public Restrictions B. Easements C. Plottage D. Utility connections

B. Easements

A good unit of comparison for an apartment building would be rent per: A. Room B. Floor C. Cubic foot of storage area D. Lineal foot of road frontage

A. Room

It is a relatively small area focused on protection of small features to protect or preserve nationally significant natural features on account of their special interest or unique characteristics. A. Natural Biotic Area B. Minor protected area C. Natural monument D. Environmental monument

C. Natural monument

Conclusion as to the highest and best use is part of making the- A. The initial estimate of value B. The final estimate of value C. The mid estimate of value D. Progressive estimate of value

B. The final estimate of value

Valuation is the process estimating market value of an identified interest on a specific parcel of real estate for a particular date while evaluation is the study of the A. orderly process on real estate or interests in real property B. estimation on real estate or interests thereof C. nature, quality or utility of a specific real estate or interests thereof D. services to clients that deals with marketability and development of real property

C. nature, quality or utility of a specific real estate or interests thereof

Based on the Philippine Valuation Standards, there are only two (2) values, namely: market value and non-market value, which of the following are not non-market value? A. Liquidation value, Prompt sale value B. Insured value, special value C. Owners value, Plottage value D. Salvage Value, Scrap Value

D. Salvage Value, Scrap Value

A technique used by market analysis and appraisers that attempts to measure the current economic activity and expected future economic growth in a specific geographic area A. Site analysis B. Economic base analysis C. Basic industry analysis D. Non-Basic industry analysis

B. Economic base analysis

The sales comparison approach involves various elements of comparison. Which of the following elements is not one employed in this approach? A. Cost B. Property rights being conveyed C. Conditions of sale D. Date of sale

A. Cost

Which of the following is NOT one of the modes of extinguishing a contract of Agency? A. Withdrawal of the agent B. Withdrawal of the deposit in the bank C. Death, civil interdiction of the agent D. Expiration of the period of the agency

B. Withdrawal of the deposit in the bank

For Residential and Commercial Condominium Projects, the minimum parking slot requirement shall be: A. one for every 4 studio units B. one for every 3 one-bedroom units C. one for every 2 three-bedroom units D. based on the National Building Code of the Philippines

D. based on the National Building Code of the Philippines

A land use pattern which redirects development away from the urban core or city center toward identified urban growth areas or nodes A. Multi-nodal B. Concentric C. Linear D. Grid

A. Multi-nodal

Two bookstores are located on the same city street, and both have had good business for ten years. One store is improved with new displays, better lighting, computerized inventory control, and a snack bar. Because the store is part of a chain, resetting costs are absorbed without a general increase in prices. The other bookstore begins losing customers. Which basic value principle(s) does the foregoing case illustrate? A. Competition B. Contribution C. Both a and b D. None of the above

C. Both a and b

A single family homeowner who builds a new and unique structure will commonly find that A. The uniqueness will cause the market to like it and pay more of it B. Properties that do not conform to the popular designs will sell for more C. By definition, uniqueness means that fewer people will want to buy it D. The market will pay as much for this property as any other because of its unique nature

C. By definition, uniqueness means that fewer people will want to buy it

Manila, Jaro, Vigan and Nueva Caceres were chartered cities during the Spanish time A. Manila B. Jaro C. Vigan D. Nueva Caceres

D. Nueva Caceres

Refers to the profit generated from the investment A. Return on Capital B. Return on net expenses C. Return of Capital D. Return on Capital net of Expenses

A. Return on Capital

It is a representation in words or an equation of the relationship between value and variables representing factors of supply and demand A. Cost B. Value C. Calibration model D. Valuation model

D. Valuation model

The process of valuing a group of properties as of a given date using standard methodology, employing common data, and allowing for statistical testing A. Mass appraisal B. Model calibration C. Income Approach D. Cost Approach

A. Mass appraisal

Train services are provided by three main railway networks that serve different areas of metro manila and parts of Luzon except A. Philippine national railways B. North rail transit C. Manila light rail transit D. Manila metro rail transit system

B. North rail transit

These are conditions and assumptions under which appraisal is made A. Limiting conditions B. Explanation C. Waiver D. Assumptions

A. Limiting conditions

Which of the following estimates would result in a capitalization rate of 8% A. Property value of P 2.500.000, potential gross income of P 200,000 B. Property value of P 2,500,000, effective gross income of P 200,000 C. Property value of P 2,500,000, net operating income of P 200,000 D. Property value of P 4,000,000, net operating income of P 320,800

C. Property value of P 2,500,000, net operating income of P 200,000

It occurs when invested money gains value A. Discounting B. Demography C. Compounding D. Market existence

C. Compounding

Which of the following statements is incorrect? A. Valuation standards are statements of recognized principles and concept B. Valuation standards describe the different valuation mythologies C. Valuation standards are statements of accepted definitions D. Valuation standards are statements of best practice of valuation and reporting

B. Valuation standards describe the different valuation mythologies

When a property’s highest and best use is likely to change in the near future the prevailing highest and best use is known as A. Interim use B. Pending use C. Temporary use D. Alternative use

A. Interim use

An external valuer is A. A valuer who, together with any associates, has no material links with the client B. A valuer who, together with any associates, has no material links in the subject of assignment C. A valuer who, together with any associates, has no material links with the agent acting on behalf of the client D. All of the above

D. All of the above

As provided by the code of ethics and responsibilities, which of the following should be displayed by the real estate appraiser’s office? A. AIPO Receipt B. Surety Bond C. Professional Identification Card D. Certificate of Registration

D. Certificate of Registration

Which of the following real estate transactions will make use of a junior lien? A. The seller carries the Orst deed of trust B. The buyer puts up a 20% down payment and obtains an 80% loan C. The buyer puts up a 10% down payment and obtains an 80% loan as the seller carries a 10% second deed of trust D. An all-cash sale

C. The buyer puts up a 10% down payment and obtains an 80% loan as the seller carries a 10% second deed of trust

The peak of the business cycle, where there is full employment and national output is at full capacity. A. Recovery B. Summit C. Prosperity D. Safety

C. Prosperity

He popularized that population growth will always tend to outrun the food supply and that of the improvement of human kind is not possible without stringent limits of production A. Adam Smith B. Thomas Robert Malthus C. David Ricardo D. Jennifer Aniston

B. Thomas Robert Malthus

Efficiency and diligence requires that A. A valuer should act promptly and efficiency in carrying out the clients instructions and should keep the client informed of the valuers’ program B. Instruction should be declined where circumstances preclude sufficient diligent C. Either a or b D. Both a and b

A. A valuer should act promptly and efficiency in carrying out the clients instructions and should keep the client informed of the valuers’ program

In a court case, the real estate appraiser was called to testify and under the code of ethics he must testify in a manner – A. To protect the interest of the client B. To protect both their interest C. to protect his interest D. To testify in a truthful manner

D. To testify in a truthful manner

This capitalization process considers the time value of money and is applied to a series of net operating incomes for a period of years A. Direct capitalization B. Yield capitalization C. Discounted rate D. Internal rate of return

B. Yield capitalization

A _________________ leasehold interest is created when the market rent is greater than the contract rent. A. Negative B. Equal C. Zero D. Positive

D. Positive

The rate that equates the present value of the net cash flows of a project with the present value of the capital investment. A. Discounting rate B. Overall rate C. Internal rate of return D. Recapture rate

C. Internal rate of return

It is the fundamental to the process of Philippine Valuation Standards (PVS) that valuation or appraisal performed in compliance with PVS should be provided by Professional Valuers or Real Estate Appraisers who are ______? A. honest and competent, free of bias or self-interest, whose report are clear, will mislead and will not disclose all materials essential to the proper understanding of the valuation/appraisal B. honest and competent, free of bias or self-interest, whose report are representative of client’s interest and shall not disclose all materials essential to the proper understanding of the valuation/appraisal C. dishonest and incompetent, free of bias or self-interest, whose report are clear, will mislead and will not disclose all materials essential to the proper understanding of the valuation/appraisal D. honest and competent, free of bias or self-interest, whose report are clear, will not mislead and will disclose all materials essential to the proper understanding of the valuation/appraisal

D. honest and competent, free of bias or self-interest, whose report are clear, will not mislead and will disclose all materials essential to the proper understanding of the valuation/appraisal

Interest Rate + Recapture Rate equals A. Discounting rate B. Overall rate C. Internal rate of return D. Return on investment

B. Overall rate

These are individual properties, such as hotels, fuel stations, and restaurants that usually change hands in the marketplace while remaining operational. A. Specialized properties B. Public sector assets C. Institutional properties D. Trade related properties

D. Trade related properties

A revenue-raising procedure, based on the assessed value of property related to a scale of charges defined by statute within a specified time-frame. A. Gross income taxation B. Ad valorem taxation C. Capital gains taxation D. Estate taxation

B. Ad valorem taxation

In mass appraisal, this is the process of analyzing sets of property and market data to determine the specific parameters operating upon a model. A. Standard deviation B. Range C. Mode D. Calibration

D. Calibration

Any form of lease rental arrangement in which the lessor receives a form of rental that is based on the earnings of the lessee. Percentage rent is an example. A. Turnover rent B. Base rent C. Market rent D. Economic rent

A. Turnover rent

At the most fundamental level, value is created and sustained by the interrelationship of five factors that are associated with any product, service, or commodity. These factors are – A. Utility, need, purchasing power, buyers and sellers B. Capital markets, money markets, discount rate and reserve requirements C. Utility, scarcity, desire, purchasing power, and transferability D. Location, size, shape, terrain and elevation

C. Utility, scarcity, desire, purchasing power, and transferability

Public sector land valuation and taxation in the Philippines is the domain of two (2) arms of the government, namely: A. Department of Budget and Management and Local Government Units B. Land Registration Authority and Bureau of Internal Revenue C. Local Government Units and Bureau of Internal Revenue D. Local Government Units and National Tax Research Center

C. Local Government Units and Bureau of Internal Revenue

An ______________ market is one that is characterized by goods or services that are easily produced and readily transferable, with a large number of buyers and sellers. A. Active B. Calm C. Inefficient D. Efficient

D. Efficient

This theory is based on the idea that the greater the volume of an item, the less each incremental volume should cost A. Cheaper by the dozen B. Economies of scale C. Anticipation D. Increasing returns

B. Economies of scale

The process of orchestrating land, labor, and capital to produce an item A. Conduction B. Analysis C. Entrepreneurship D. Capitalization

C. Entrepreneurship

Choose from the following the economic factors affecting the resources and efforts of people to achieve their social ideals. I. Natural resources, quantity, quality, location, rate of depletion II. Commercial and industrial trends III. Employment trends and wage levels IV. Availability of money and credit V. Price level interest rates, tax burdens VI. Other factors affecting purchasing power A. I, II, III, IV, VI B. I, II, III, IV, V, VI C. II, III, IV, V, VI D. I, II, III, V, VI

B. I, II, III, IV, V, VI

In the application of this technique to estimate value, the building value is estimated as the present value of the residual income attributable to the building of an income producing property. A. Building residual technique B. Land residual technique C. Property residual technique D. Development technique

A. Building residual technique

These are assets that embody a cultural, historic, and/ or architectural heritage. A. Agricultural properties B. Historic properties C. Trade related properties D. Public sector assets

B. Historic properties

The process by which a least cost replacement option is determined for the remaining service potential of an asset A. Reproduction cost new B. Capitalization C. Value engineering D. Optimization

D. Optimization

A method of estimating the reproduction cost or replacement cost involves a complete cost itemization of all direct and indirect costs to be incurred or incurred in the construction of an improvement A. Index method B. Cost-in-place method C. Quantity survey method D. Comparative method

C. Quantity survey method

The process of retiring a mortgage or debt over a specified time period. A. Debt service B. Installment C. Amortization D. Equity

C. Amortization

It creates a lien in favor of the mortgages on the property of the mortgages A. Lending B. Financing C. Mortgage D. Discounting

C. Mortgage

A credit regulation device of the BSP that refers to the percentage of deposits that must be retained by banks A. Discounted rates B. Fiscal policy C. Credit regulation D. Reserve requirement

D. Reserve requirement

The price paid for goods or services, or the amount required to create or produce the goods or service A. Value B. Price C. Cost D. Selling price

C. Cost

In property appraisal, these are suppositions taken to be true, involving facts, conditions, or situations affecting the subject (property being appraised), or the approach in the valuation A. Assumptions B. Market conditions C. Perceptions D. Observations

A. Assumptions

Families are more aware of recycling their consumer waste than ever before. This is an example of which kind of force: A. Social B. Governmental C. Economic D. Environmental

A. Social

Which of the following is the responsibility of the Real Estate Practitioner’s Professional Rules of Ethics and Responsibilities as to FELLOW PRACTITIONERS? A. The Practitioner shall always set a good example as a responsible law abiding citizen. B. The Practitioner shall respect the dignity, reputation, and privacy of fellow practitioners. C. The practitioner shall always maintain transparency in all dealings with the Client. D. The Practitioner shall strictly observe client-practitioner confidentially

B. The Practitioner shall respect the dignity, reputation, and privacy of fellow practitioners.

Interests in property resulting from the legal division of ownership interests in businesses and real property, from the contractual grant of an optional right to buy or sell property at a stated price within a specified period, or from the creation or investment instruments secured by pooled real estate assets A. Business B. Financial interests C. Personal property D. Real estate investment trust

B. Financial interests

Select from the following the considerations involved in the determination of the highest and Best Use. (I) To establish whether a use is physically possible, regard will be had to what would be considered reasonable participants. (II) To reflect the requirement to legally permissible, any legal restrictions on the user of the asset need to be taken into account as well as the likelihood that these restrictions will change. (III) The Requirement that the use be financially feasible takes into account whether an alternative use that is physically possible and legally permissible will generate sufficient return to a typical participant, after taking into account the cost of conversion to that use, over and above the return on existing use A. II and III B. I and II C. I, II, III D. I and III

C. I, II, III

A type of business involving a combination of two or more entities that join to undertake a specific project A. Syndication B. Limited partnership C. Joint venture D. General partnership

C. Joint venture

In statistics, this term refers to the difference between the highest and the lowest scores. A. Standard deviation B. Mode C. Mean D. Range

D. Range

Tax Imposed on profit presumed have been realized on the sale or disposition of lands and/or buildings A. Estate tax B. Capital gains tax C. Inheritance tax D. Realty tax

B. Capital gains tax

In matters of impartiality, a Real Estate Appraiser/ Valuer must _____. A. at all times deal with client’s affair with proper discretion and confidentiality B. not act in a manner that is misleading or fraudulent C. at all times maintain a high standard of honesty and integrity and conduct their activities in a manner not detrimental to their clients D. perform an assignment with the strictest independence, objectivity, and impartiality and without accommodation of personal interest

D. perform an assignment with the strictest independence, objectivity, and impartiality and without accommodation of personal interest

This describes the value of an asset that has reached the end of its economic life for the purpose it was made, and the asset may still have value for an alternative use or for recycling. A. Scrap value B. Salvage value C. Market value D. Liquidation value

B. Salvage value

Financial institution which is primarily concerned with the safe keeping of funds through the acceptance of deposits of money provision of credit through lending money A. Commercial Bank B. Pawnshop C. Central Bank D. Saving Bank

A. Commercial Bank

The final step in the valuation process A. Identification of the real estate B. Data analysis C. Correlation of value D. Valuation reporting

D. Valuation reporting

Provided below are non-exhaustive list of circumstances that commonly include an intangible asset valuation component. Identify these purposes. (I) Valuation of intangible assets are often required in connection with accounting for business combinations, assist acquisitions and sales, and impairment analysis. (II) Valuations are frequently needed for transfer pricing analyses, estate and gift tax planning and reporting, and ad valorem taxation analyses. (III) Intangible assets may be the subject of litigation, requiring valuation analysis in circumstances such as a shareholder disputes, damage calculations and material dissolutions(divorce). (IV) Other statutory or legal events may require the valuation of intangible assets such as compulsory purchases/eminent domain proceedings. (V) Valuers are often asked to value intangible assets as part of general consulting, collateral and transactional support engagements. A. I, IV, III, V only B. I, II, III, IV, V C. II, III, IV, V only D. I, II, III, only

B. I, II, III, IV, V

The present and future demand for a property and its absorption rate is considered in a A. letter in appraisal B. market feasibility study C. market segmentation D. highest and best used analysis

B. market feasibility study

The appraiser final estimate should be based on A. average of three value indications obtained by three approaches B. weighing of the reliability of the information analyzed in each of the three approaches C. the most sophisticated guess technique D. adjustment for most recent indicators in the local market

B. weighing of the reliability of the information analyzed in each of the three approaches

The form of which a formal appraisal is presented is called A. A presentation of value B. A narrative report C. An appraisal report D. A value certification

C. An appraisal report

The following are considered essential elements of a real estate contract, EXCEPT _______. A. Consent of the parties B. A lawful object C. Consideration D. Parol evidence

D. Parol evidence

Who is the chairman of LBAA or Local board of assessment Appeal? A. Register of Deeds B. City Treasurer C. Fiscal D. City Assessor

A. Register of Deeds

Determine the disposition of title upon the death of any of the co-owners in a joint tenancy A. Convey title without the permission of co-owners; probate is usually required, B. Convey title without the permission of co-owners; no probate nor will required due to the right of survivorship. C. Convey title with the permission of co-owners; probate is usually required. D. Convey title with the permission of co-owners; no probate nor will required due to the right survivorship.

B. Convey title without the permission of co-owners; no probate nor will required due to the right of survivorship.

The Professional Rules of Ethics and Responsibilities to the Government are the following, EXCEPT, the Practitioner shall _______. A. Comply with Sec 33 and Sec 38, Art IV RA 9646 B. pay correct taxes and fees required by law. They shall not encourage, tolerate, or participate directly or indirectly in the evasion of illegal reduction in the payment due to the government. C. secure all necessary licenses, permits and authority as may be required by law, ordinance or rules and regulations D. always set a good example as a law-abiding citizen

A. Comply with Sec 33 and Sec 38, Art IV RA 9646

Value in use is A. Subjective B. Objective C. Readily measurable D. A market phenomenon

A. Subjective

The “as of” date in an appraisal report is A. the date to which the value applies B. immaterial to the value estimate C. the date on which the report is delivered D. the date on which the property will be conveyed

A. the date to which the value applies

Common items such as materials and labor are included in Direct cost. What others are included? I. transport, installation costs II. professional, and other fees (commissions, etc.) III. overheads, taxes IV. finance cost (interest on debt financing) V. profit margin/return to investors A. I, II, III, IV B. II, III, IV, V C. I, III, IV, V D. I, II, III, IV, V

C. I, III, IV, V

To be considered comparable to the subject property, a comparable must have been sold in A. Market transaction B. Industry transaction C. Real estate transaction D. Arms-length-transaction

D. Arms-length-transaction

The total loan payment made on a parcel of real estate during any one year is generally referred to as: A. Debt service B. Equity C. Mortgage constant D. Cash flow

A. Debt service

Public and private agricultural land is excluded from CARP when it has a slope or gradient of: A. Nine percentage B. Twelve percentage C. Eighteen Percentage D. Fifteen percentage

C. Eighteen Percentage

It is a relatively large area not materially altered by human activity where extractive resource uses are not allowed and maintained to protect outstanding natural & scenic areas of national or international significance for scientific, educational & recreational use. A. Protected area B. National Park C. Natural Park D. Protected Landscapes/seascapes

C. Natural Park

What is the title of Part II of the Philippine Valuation Standards 2nd Edition, 2018? A. Valuation of properties in the Extractive Industries B. Mass Appraisal for Property Taxation C. Philippine Context Focusing on Valuation for Taxation and Other Purposes D. International Valuation Standards (IVS) 2017

C. Philippine Context Focusing on Valuation for Taxation and Other Purposes

The statement that the real estate appraiser should be imbued with a social conscience for he/she does not live by him/herself and his/her family alone can be reflected in the statement of – A. No man is an island B. Better to live inside a subdivision C. Network with others D. Join a professional organization

A. No man is an island

The following are the necessary qualifications of an Appraiser to estimate property value of diversified purpose as: I. Transactions involving transfer of property ownership. II. Pending settlement of taxes and establishment on the basis of taxes III. Property treated as fixed asset in financial reporting IV. Establishment of rental rates V. Establishment payment of just compensation in condemnation proceedings A. I.II.III.IV.V B. I.III.IV.V C. I.II.III.V D. I.II.III.IV

A. I.II.III.IV.V

The area of a triangular plot is computed by the formula A. ½ length x width B. ½ altitude x width C. ½ length x base D. ½ altitude x base

D. ½ altitude x base

An appraisal report can be undertaken in the following types, EXCEPT: A. Form Report B. Oral Report C. Marketing Report D. Narrative Report

C. Marketing Report

The correct translation of professional regulations commission in Filipino is A. Komisyon sa regulasyon ng propesyonal B. Komisyon sa regulasyon ng mga propesyonal C. Komisyon ng regulasyon sa propesyonal D. Komosyon ng regulasyon sa mga propesyonal

B. Komisyon sa regulasyon ng mga propesyonal

A parallel beam is known as – A. A jamb B. A girder C. A joist C. a batten

C. A joist

In a conventionally constructed house, the highest member of the frame is – A. Rafter B. Ridge board C. Girder D. Collar beam

B. Ridge board

One acre is equivalent to A. 15,280 sqft B. 10,560 sqft C. 5,280 sqft D. 43,560 sqft

D. 43,560 sqft

It refers to a heating system based on hot water A. Hydronic system B. Cogeneration system C. Convector system D. Hydraulic system

A. Hydronic system

Identify the government office/division that shall prepare a list of real properties in the assessment roll showing the names of the landowners, lot and title numbers, areas, land classification, market and assessed values taken from existing tax declaration of all land parcel within the Urban Zone Bureau of Local Government Finance B. Provincial Assessor C. City or Municipal Assessor D. Land Management Bureau

C. City or Municipal Assessor

Which approach to value would be most likely to be used in appraising a public library? A. Income Approach B. Market Data Approach C. Cost Approach D. Replaceable Approach

C. Cost Approach

What law provides designated HLURB as sole regulatory power in house and lot development, mandated to encourage greater participation of the private sector for the lowcost housing liberalization of development standards, simplification of regulations and decentralization of licenses and permits? A. EO 70 B. EO 90 C. PD 457 D. PD 1216

B. EO 90

A differentiation of the subject property from other properties by sub classification into smaller groups with differing physical and locational characteristics. A. Aggregation B. Economic consideration C. Economic classification D. Disaggregation

D. Disaggregation

Land, Labor, Capital and management introduced into a real property at an increasing rate until a maximum return is reached, demonstrates most nearly the principle of: A. Conformity B. Substitution C. Regression D. Balance

D. Balance

What principle states that between dissimilar properties, the value of the lesser-quality property is favorably affected by the presence of the better-quality property? A. Conformity B. Substitution C. Progression D. Competition

C. Progression

What are the four elements of value in real estate? A. Demand, utility, scarcity. and transferability B. Utility, scarcity, uniqueness, demand C. Scarcity, demand, transferability, immobility D. Demand, utility, immobility, scarcity

A. Demand, utility, scarcity. and transferability

What is the term used that refers to the face of a building especially the principal front that looks onto a street or open space? A. Frontage B. Portrait C. Façade D. Perspective

C. Façade

Which foreign technology company was blacklisted by the U.S. Government in May 2019 because it was alleged that its equipment are pervasively unsafe? A. Panasonic B. Samsung C. Huawei D. Xiaomi

C. Huawei

What refers to Cost Approach? Define from the following statements. I. A Single Universal approach to value real estate II. A method of estimating reproduction and replacement cost III. An estimate of the investment requires to duplicate the property in its present condition IV. The approach used to determine the cost of replacing the property loss of deterioration V. A method to estimate the value plus the cost of replacement and improvements minus depreciation A. I, III, IV, V B. II, III, IV, V C. I, II, III, IV D. I, II, IV, V

B. II, III, IV, V

What is also known as the Guideline Transactions Method, which utilizes information on transactions involving assets that are the same or similar to the subject asset to arrive at an indication of value? A. Gordon growth model B. Market approach consideration C. Comparable transaction method D. Guideline publicly-traded comparable method

C. Comparable transaction method

What should the appraiser do in a case that in the preparation of the appraisal report. his/her analysis found out that one of the approaches uses is not applicable in the engagement? A. State in the report that the approach is not applicable and explain his/her reason B. Use hypothetical date to make the approach applicable C. Do not include the approach in the report D. Just state in the report that the approach is not relevant

A. State in the report that the approach is not applicable and explain his/her reason

In valuation, the appraiser is also aware that the sales price of a property is also the __________________ A. market value B. appraised value C. transaction price D. insurance value

C. transaction price

Select from the following checklist of observable attributes of real property (Land) that should not be overlooked in conducting field inspection. I. Geographic location (topography, squatters) II. Physical condition (shape, size, swamp) III. Land improvements (plants, structures) IV. Legal limitations (zoning, easements) V. Services available (utilities, amenities, facilities) A. I, II, III, IV, V B. II, III, IV, V C. I, II, IV, V D. I, II, III, IV

A. I, II, III, IV, V

Which of the following is not one of the required qualifications for assessors? A. A resident of the LGU concerned B. Lawyer C. First grade civil service eligible D. Civil or mechanical engineer

B. Lawyer

Choose from the following what Appraisal or Valuation is all about. I. An Act of estimating the value of a property for a specific purpose as of a specific date II. A Valuation of property by the estimate of an authorized person III. The result of valuing the property, making a cost estimate, forecasting earnings or any combination of two more stated results IV. The determination of the monetary values of the property rights encompass in an ownership at some specified time/period A. I. III. IV B. II. III. IV C. IV. II. I D. I. II. III. IV

D. I. II. III. IV

In the sales comparison approach, an adjustment was made because the comparable was sold as a life estate and the subject involves a fee simple absolute estate. This element of comparison is with respect to the A. financing terms B. conditions of sale C. market conditions D. property rights conveyed

D. property rights conveyed

The method of construction cost or reproduction cost estimating. A. Volume Method B. Area Method C. Quantity Survey Method D. All of the above

C. Quantity Survey Method

A large home built in an area of small cottage is an example of A. over-improvement B. under-improvement C. land regression D. functional obsolescence

A. over-improvement

Enumerate the KEY STEPS in the Guidelines of Publicly-traded Comparable Method. I. Identify the relevant guideline publicly-traded comparable and calculate the key valuation metrics for those transactions II. Identify the valuation metrics/comparable evidence that are used by participants in the relevant market III. perform a consistent comparative analysis of qualitive and quantitative similarities and differences between the publicly-traded comparable and the subject asset IV. Make necessary adjustments to the valuation metrics to reflect differences between the subject asset and the publicly-traded comparable V. Apply the adjusted valuation metrics to the subject asset and if multiple valuation metrics are used, weight the indications of value. A. III, IV, V, I, II B. II, I, III, IV, V C. I, II, III, IV, V D. III, IV, I, V, II

B. II, I, III, IV, V

It is the result of incompatibility with current market requirements A. Depreciation B. Physical Depreciation C. Functional Depreciation D. External Obsolescence

C. Functional Depreciation

The most commonly used method of estimating construction cost to derive an estimate in terms of cost per unit area: A. Replacement/Reproduction cost B. Comparative-unit method C. Unit-in place method D. Quantity survey method

B. Comparative-unit method

A financial modeling technique based on explicit assumptions regarding the prospective income and expenses or business of a property which involves the projection of a series of periodic cash flows either to an operating property, development property or a business A. Direct capitalization B. Net present value C. Mass appraisal D. Discounting cash flow analysis

D. Discounting cash flow analysis

The period over which a building may be profitably used is its A. Actual life B. Physical life C. Useful life D. Effective life

C. Useful life

A valuation technique which presumes that income can be split between land and improvements and that the residual to land can be then capitalized into value A. Cost approach B. Income approach C. Sales comparison approach D. Land residual technique

D. Land residual technique

A method that is used to build a capitalization rate using just two components; financing and equity A. Build-up method B. All risks method C. Band of investment method D. Gross income multiplier method

C. Band of investment method

The adjustment in the sales comparison approach that involves comparing two properties with similar feature and characteristics, but different date of sale is referred to as the: A. Loan closing adjustment B. Time adjustment C. Appreciation in value adjustment D. Time value of money adjustment

B. Time adjustment

The following are social indicators for the desirable “Quality of Life” except A. Health B. Public C. Housing D. Religious Tolerance

D. Religious Tolerance

Provinces are further subdivided into cities and municipalities. The Philippines has a total of how many provinces? A. 71 B. 75 C. 78 D. 81

D. 81

It is territory or part of a territory lying wholly within the boundaries of another A. Enclave B. Exclave C. Extraterritoriality D. Quadri point

A. Enclave

It is the description of a place in relation to another A. Relative location B. Absolute location C. exact location D. reference location

A. Relative location

Converting an estimate of income into an estimate of value by use of rate A. Discount rate B. Value estimate C. Capitalization D. Income estimate

C. Capitalization

L, M and N owned property as joint tenants. M died, followed by the death of N. Title to the property would be held by A. L in severalty B. L and the heirs of N as tenants in common C. L and the heirs of N in joint tenancy D. L and the heirs of both M and N as tenants in common

A. L in severalty

There is an important technical difference between the term reproduction cost and replacement cost. Replacement cost refers to the cost of constructing a building that A. would have similar utility to the comparable B. would have utility to the subject property C. would have similar utility to the subject property D. would have replacement to the subject property

C. would have similar utility to the subject property

The band of investment refers to a valid capitalization method that is used to build a capitalization rate using just two components: financing and equity. It is determined using the formula: Cap Rate = Financing Component + Equity Component. Financing and equity components, respectively refers to A. The annual mortgage constant multiplied by the loan to value ratio and the investor’s required equity rate multiplied by the percentage of cash equity B. The investor’s required equity yield rate multiplied by the percentage of cash equity and the annual mortgage constant multiplied by the loan to value ratio C. The mortgage multiplied by the percentage of value ratio and the investor’s required equity yield rate multiplied by the percentage of cash equity D. The investor’s required yield rate multiplied by the percentage of cash equity and the annual mortgage constant multiplied by the percentage of cash equity

A. The annual mortgage constant multiplied by the loan to value ratio and the investor’s required equity rate multiplied by the percentage of cash equity

The three (3) traditional cost- estimating methods, except: A. replacement/reproduction cost B. comparative-unit method C. unit-in-place method D. quantity survey method

A. replacement/reproduction cost

A valuation review that is limited to the data presented in the report which may or may not be independently confirm. A. Desk review B. Administrative review C. Technical review D. Field review

A. Desk review

If a real estate development happens to go bankrupt, who would get the money back first from liquidation? A. Debt financiers B. Equity financiers C. Consultants to the project D. Developers

A. Debt financiers

In using the sales comparison approach, the appraiser finds that in term of location, sale#1 is superior to the subject property but is inferior to sale#2. The correct procedure would be to adjust: A. Both sales down to the subject property B. Both sales up to the subject property C. Sale#1 down and sale#2 up D. Sale#1 up and sale#2 down

A. Both sales down to the subject property

Assume a swimming pool cost P 1M to install; however, the increase in market value of the property is only P100T. Which principle is illustrated? A. Conformity B. Consistent theory C. Contribution D. Balance

C. Contribution

A building was constructed 15 years ago and is well-maintained; based on the observation of the appraiser its condition is similar to other 9-year-old buildings. The effective age of the building is A. 15 years B. 9 years C. 6 years D. 24 years

B. 9 years

To adjust the sale price of a comparable sale with a 12% better location, you should A. Add 12% to the sale price of the comparable B. Multiply the sale price of comparable by 12% C. Subtract 12% from the price of the subject of appraisal D. Subtract 12% from the sale price of the comparable

D. Subtract 12% from the sale price of the comparable

The predominant depreciation category for severe termite damage throughout a structure A. Physical deterioration—curable B. Physical deterioration—long-lived incurable C. Functional obsolescence—curable D. External obsolescence—incurable

B. Physical deterioration—long-lived incurable

The largest lake in the Philippines archipelago is Laguna de bay in the province of Laguna and Rizal. The smallest lake that is in Agusan province is A. Lake Lanao B. Taal Lake C. Naujan Lake D. Lake Lumao

D. Lake Lumao

This defines the nature of the hypothetical transaction, e.g. whether or not there is exposure to a market and the assumed motivation and behavior of the parties A. Valuation process B. Basis of value C. Approach value D. Discounting cash flow analysis

B. Basis of value

On the absence of sufficient direct market evidence this method of appraisal is regarded as an acceptable method of arriving at the value of specialized assets but must incorporate market observations by the valuer with regard to current cost and depreciation rates A. Discounting cash flow B. Cost to cure method C. Depreciated replacement cost D. Building residual technique

C. Depreciated replacement cost

What are the types of depreciation? A. Physical depreciation, functional, accrued B. Physical depreciation, functional, external C. Physical depreciation, functional extreme D. Physical depreciation, accrued, external

B. Physical depreciation, functional, external

The four (4) property types for appraisal/valuation are the following: A. Residential, Commercial, Industrial, Agricultural B. Real Property, Personal Property, Businesses, Financial Interest C. Land, Building, Machineries, Businesses D. Mineral, Timberland, Real estate, Real property

B. Real Property, Personal Property, Businesses, Financial Interest

The Philippine valuation standards defines a value as a person of good repute who A. Follow all the requirements of the pvs code of conduct B. Is a member of a recognized national professional valuation body C. Pursue a program of professional learning throughout his/her career D. A, B, C

D. A, B, C

70. Under the Philippine valuation standards, guidance notes 1 pertains to real property valuation and guidance notes 2 pertains to A. Business valuation B. Valuation of agricultural properties C. Valuation of plant, machinery, and equipment D. Valuation of lease interests

D. Valuation of lease interests

The estimated additional cash inflow at the end of the economic life of the subject is known as A. Reversion value or exit value B. Market value C. Discounting cash flow D. present value

A. Reversion value or exit value

Under the Philippine valuation standards, Guidance notes 13 (GN13) pertains to mass appraisal for property taxation and GN5 pertains to A. Valuation of intangible Assets B. Valuation of Agricultural properties C. Consideration of hazardous and toxic substances in valuation D. Valuation of personal property

D. Valuation of personal property

Integrity requires a valuer not to A. Knowingly develop and communicate a report that contains false, inaccurate, or biased opinions and analysis B. Act in a manner that is misleading and fraudulent C. Contribute to or participate in a valuation service that other reasonable valuers would not regard to be justified D. All of these

D. All of these

The following is truly a global valuation standard A. Asian valuation standard B. Uniform standards of professional appraisal practices C. Philippine valuation standards and development D. International valuation standard

D. International valuation standard

Is sometimes called historical age or chronological age, is the number of years that have elapsed since the building construction was completed. A. effective age B. Useful life C. Actual age D. Remaining useful life

C. Actual age

Is used when the value of the land can be estimated with a reasonable accuracy using the market comparable A. Development approach B. Sales comparison C. cost approach D. Building residual technique

B. Sales comparison

Refers to assets which are not readily convertible into cash. It is synonymous with capital asset which is employed for the purpose of producing revenue. Also referred to tangible assets where there is no proprietary accountable as hospital, religious and charitable organizations, and educational institutions A. Tangible value B. Capital property C. Intangible assets D. Fixed assets

D. Fixed assets

This is the economic period over which existing improvements are expected to continue to A. Contribute to property value B. Effective age C. Useful D. Remaining economic life

Remaining economic life

It is fundamentally concerned with the ways in which patterns on earth surface reflect and influence physical and human processes A. Geography B. Human Geography C. Physical Geography D. human and physical Geography

C. Physical Geography

In income approach to value by discounted cash flow analysis value is estimated by A. FV = PV x (1+i)^ n B. PV = FV / (1+i)^n C. V = I/R D. A & B

D. A & B

Amount that would be realized from disposition of the property in the used market assuming a relative short period of time. A. liquidation value B. salvage value C. Scrap Value D. Sound value

A. liquidation value

Select the primary and principal property assessment records/forms from the following: I. Real Property Field Appraisal and Assessment Sheet (FAAS) for Land and Other Improvements II. Real property Field Appraisal and Assessment Sheet (FAAS) for Buildings and Other Structures III. Real Property Field Appraisal and Assessment Sheet (FAAS) for Machinery IV. Tax Declaration (TD) of Real Property V. Tax Map Control VI. Torrens Title/TCT/OCT A. II, III, IV, V, VI B. I, II, III, IV, V, VI C. I, II, III, IV, V D. I, II, IV, V, VI

C. I, II, III, IV, V

Which of the following is NOT an element of comparison for the subject of an appraisal assignment? A. Property rights conveyed, terms of sale, conditions of sale, market conditions, location, physical and economic characteristics B. Property rights conveyed, financing terms, conditions of sale, market conditions, location, physical and economic characteristics C. Property ownership conveyed, terms of reference, conditions of sale, market conditions, location, physical and economic characteristics D. Property ownership conveyed, financing terms, market conditions, location, depreciation, physical and economic characteristics

C. Property ownership conveyed, terms of reference, conditions of sale, market conditions, location, physical and economic characteristics

The following are the modes of acquiring ownership of real property under Article 712, Book III of the Civil Code of the Philippines, EXCEPT_______. A. intellectual creation, testate and intestate succession B. corporate inconclusion C. by law, occupation, donation D. by means of prescription, tradition

B. corporate inconclusion

An analysis to determine if there are unsatisfied, unfulfilled, or unmet demands that the proposed site could satisfy. A. Sensitivity Analysis B. Spatial Gap Analysis C. Sales Analysis D. Market Analysis

B. Spatial Gap Analysis

Under CREATE as implemented by BIR Revenue Regulations No. NO. 8-2021 dated June 11, 2021, the new threshold for VAT exemption on the sale of real property effective January 1, 2021 shall be? A. P2.50M B. P1.50M C. P3.0M D. P3,199,200

D. P3,199,200

The object of the International Valuation Standard (IVS) is to increase the confidence and trust of users of valuation services by establishing transparent and consistent valuation practices. Enumerate these Standards. I. Identify or develop globally accepted principles and definitions II. Identify and promulgate considerations for the undertaking of valuation assignments and the reporting valuation III. Identify specific matters that require consideration and methods commonly used for valuing different types of assets or liabilities A. I and III B. I and II C. II and III D. I, II, II

D. I, II, II