FUNDAMENTALS OF REA Flashcards
It is the amount by which the value of controlling interests exceeds the value of a non-controlling interests in a business enterprise it is know as
a. Asset investment
b. Carrying amount
c. Working capital
d. Control premium
d. Control premium
Which of the following statements applies to corner influence?
a. Corner sites are preferable to interior properties
b. Corner sites have a higher value per sqm than other sites
c. Corner sites have greater utility than other sites
d. Corner influence tables can be used to determine how a corner site affects the property’s value
b. Corner sites have a higher value per sqm than other sites
An objective kind of values that can be estimated for items and a property bought and sold in the market is called
a. Estimated value
b. Value in change
c. Salvage value
d. Zonal value
b. Value in change
The approach to value would involve an investigation into the rent schedules of the subject property and the comparables
a. Cost approach
b. Sales comparison approach
c. Market data approach
d. Income approach
d. Income approach
The form of deed used to return title to property owner when the debt secured by a deed of trust is paid in full is the
a. Reconveyance deed
b. Deed of donation
c. Contract to sell
d. Quit claim
a. Reconveyance deed
Zoning is an example of, what power of the government?
a. Escheat power
b. Eminent domain
c. Expropriation
d. Police power
d. Police power
Important reference material that maybe available from Assessors Office is
a. Vicinity map
b. Location map
c. Geographic map
d. Parcelliary map
d. Parcelliary map
Refers to a lot with direct access to any street or highway
a. Key lot
b. Landlocked lot
c. Corner lot
d. Cul-de-sac
a. Key lot
Refers to the right of the property owner to everything produced there by or which is incorporated or attached, either naturally or artificially.
a. Attachment
b. Adhesion
c. Occupation
d. Accession
d. Accession
Amount that could be realized from sale of a dismantled asset to be removed for used wholly or partially.
a. Scrap value
b. Salvage value
c. Sound value
d. Liquidation value
a. Scrap value
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. Scarp value
c. Salvage value
d. Sound value
a. Liquidation value
Appraisal for the price that a property would sale based on quick sales.
a. Scrap value
b. Market value
c. Sound value
d. Liquidation value
c. Sound value
Which of the following approaches to value would involve an investigation of the rent schedules of the subject property and the comparables?
a. Cost approach
b. Income approach
c. Market data approach
d. Capitalization approach
b. Income approach
The method of construction cost or reproduction cost estimating is
a. Cost method
b. Appraisal method
c. Straight-line method
d. Quantity survey method or volume method or area method
d. Quantity survey method or volume method or area method
There is an important technical difference between the terms reproduction cost and replacement cost. Replacement cost refers to the cost of
constructing a building that
a. Would have opposite utility to the subject property
b. Would have utility 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
There is a theory that all structures have a total useful life that can be predicted. The method estimating accrued depreciation based on this theory is called
a. Volume method
b. Cost-to-cure-method
c. Straight-line-method
d. Quantity survey method
c. Straight-line-method
The direct sales comparison approach is based primarily on or relies on the
a. Principle of consistency
b. Principle of substitution
c. Principle of change
d. Principle of conformity
b. Principle of substitution
The cost of improvements identical utility or exact replica to the subject property is called
a. Reproduction cost
b. Replacement cost
c. Original cost
d. Sales cost
a. Reproduction cost
Effective/Actual age is
a. Total economic life minus actual age
b. Total economic life minus effective age
c. Total utility minus diminished utility
d. Actual age adjusted for obsolescence
d. Actual age adjusted for obsolescence
Accrued depreciation is
a. Proportional with the passage of time
b. A reproduction in a price
c. A future loss in value
d. A loss in utility
a. Proportional with the passage of time
An estimate derived from observing completed transaction involving a large degree of amenities or other personal and unpredictable factors is called
a. Cost value
b. Market value
c. Caprice value
d. Zonal value
c. Caprice value
Market value is based on
a. Most probable value
b. Insurable value
c. Sentimental value
d. Value in use
a. Most probable value
The appraisal process requires the appraiser to collect, record and verify
a. Data on the subject property’s neighborhood only
b. Data on all neighborhood in the city
c. General data on the region, city and neighborhood
d. Data on an annual basis
c. General data on the region, city and neighborhood
The process of identifying and analyzing sub-markets of a larger market is known as
a. Market analysis
b. Market substitution
c. Market segmentation
d. Market distribution
c. Market segmentation
Why is the gross income multiplier normally not subject to adjustments by the appraiser? It is because
a. Relative disability is presumed to be reflected in the gross income generated in the market place
b. It is impossible to make adjustments when using the income data
c. Any differences between properties would be significant
d. The income approach never allows for adjustments for any kind
a. Relative disability is presumed to be reflected in the gross income generated in the market place
All the factors being equal, as the location of an income property becomes less desirable, the cap rate use will be
a. Lower
b. Less reliable
c. Less desirable
d. Higher
d. Higher
For the purpose of estimating vacancy rates in an appraisal engagement, which of the following statements is correct to estimate the value of a free
simple state?
a. The vacancy rate used in an appraisal should reflect the typical vacancy rate for comparable properties
b. Project that are being the highest and the best use of the site normally would have no vacancy
c. The vacancy rate should always be zero
d. The vacancy rate should never be zero
a. The vacancy rate used in an appraisal should reflect the typical vacancy rate for comparable properties
The principle of substitution implies that the value of a property trends to be indicated by value of an equally desirable property.
a. Comparable
b. Appraised
c. Replaceable
d. Anticipation
c. Replaceable
In appraisal, which of the following would NOT be considered in the market data approach?
a. Sales price of comparable properties
b. Terms of sale of comparable properties
c. Acquisition cost to present owner of the subject
d. Location of each comparable property
c. Acquisition cost to present owner of the subject
Which of the following statements applies the best to a property with a non-conforming use?
a. The existing conforming use in the highest and best use
b. A non-conforming is used likely to arise from changes in zoning
c. In the sales comparison approach, an appraiser does not have to make a separate adjustment for the non-conforming use
d. A conforming use property may be under improved but cannot be over improve
b. A non-conforming is used likely to arise from changes in zoning
The value of real state is determined in the market mainly by its
a. Price
b. Size
c. Productivity
d. Mortgage
c. Productivity
Primary data refers to
a. The main data used by the appraiser
b. Data collected by the appraiser
c. Data that have a direct impact on value
d. Data published by a reliable source
b. Data collected by the appraiser
Applicant for the licensure examination for real state service shall file the following documents except:
a. Birth certificate(NSO) or valid Philippine passport, or any proof of citizenship
b. Transcript of record and/or diploma with scanned picture; notarized certification by employer of his/her year of experience or prerequisite
certification of registration(COR) and/or Professional Identification card(PIC) or DTI license( for real estate consultant)
c. NBI clearance; duly notarized accredited seminar and/or training certificate; community tax certificate
d. 4 colored passport size picture with light background and complete name tag
d. 4 colored passport size picture with light background and complete name tag
Per 30 sec of IRR RESA, all positions in government requiring the services of registered license real estate service practitioners within __ years from
effectivity shall be filled only by registered and licensed real estate service practitioners.
a. 1year
b. 3 years
c. 2 years
d. 4 years
b. 3 years
Under PRBRES Circular#2011-04, series of 2011 signed last January 20, 2011, the applicants for licensure examination shall be required to
undertake trainings and seminars, except
a. 60hours lecture, classroom and/or seminar hours on real estate subjects and/or modules for applicant to the board exam from an accredited
service provider
b. May submit only the 60 hours of training service provider
c. 60 hours of on-the-job training, apprenticeship and/or consultants with at least 5 years of real estate practice, developer in good standing with
HLURB; provincial city and municipal assessor and government appraiser; accredited service
d. May opt to take the full 120 hours thru seminars, training, and workshops
b. May submit only the 60 hours of training service provider
No partnership or corporation shall engage in the business of real estate service unless it is duly registered with the sec and the persons authorized
to act for the partnership or corporation are all __ real estate brokers, appraisers or consultants as the case may be.
a. Registered and licensed
b. Registered
c. Recorded and listed
d. Registered and listed
a. Registered and licensed
Under sec. 32 the partnership or corporation shall regularly submit the list of its real estate service practitioners to the PRC and SEC as part of its___ reportorial requirements.
a. Monthly
b. Annual
c. Quarterly
d. bi-Monthly
b. Annual
A plot of land already prepared for underlying a structure or development is referred as
a. Site
b. Subdivision
c. Lot
d. Land
a. Site
The term economic base analysis can be describe as
a. Analysis of the economic activity of a community that allowed it to attract income from outside its boundaries
b. Analysis of populations trends in a community
c. Compilation demographic data from comparable areas
d. Analysis of how interests rates will affect the base rent on a property
a. Analysis of the economic activity of a community that allowed it to attract income from outside its boundaries
There are various types of appraisal report, which of the following is the final step of the appraisal process?
a. Narrative report
b. Form report
c. Bank from report
d. Letter of opinion
d. Letter of opinion
For an appraiser to value a property using the sales comparison approach, which of the following type of market would best provide confidence and
reliability?
a. Seller’s market
b. Inactive market
c. Buyer’s market
d. Active market
d. Active market
The term leasehold estate refers to the rights of
a. The owner of the property that has been leased
b. The tenant who leased property
c. The owner of a property that is not currently leased
d. The trustee who holds the lease
b. The tenant who leased property
Which of the following statements applies to a corner influence?
a. Corner site have a higher value than other site
b. Corner site are preferable to interior property
c. Corner site have greater utility than other sites
d. Corner site is an adjoining of lots of two lots
a. Corner site have a higher value than other site
What rental units of comparison is of primary importance of appraising office buildings with multiple tenants?
a. Rent per room per year
b. Rent per floor per year
c. Rent for sqm. of net rentable area per year
d. Rent per building
c. Rent for sqm. of net rentable area per year
The amount of money the property would command under current market conditions which can be different from contract rent because this is
the amount of the property would command ignoring the leases.
a. Market rent
b. Effective rent
c. Contract rent
d. Percentage rent
a. Market rent
Refers to materials, labor, fees and charges in builder’s contract
a. Replacement cost
b. Unit is place costs
c. Reproduction cost
d. Direct costs
d. Direct costs
These costs are incurred in the building construction, but not typically included the builder’s contract.
a. Replacement cost
b. Indirect cost
c. Reproduction cost
d. Direct cost
b. Indirect cost
The amount of money in a lease contact that exceeds the market rent
a. Market rent
b. Effective rent
c. Contract rent
d. Percentage rent
b. Effective rent
This is the annual yield rate or return on capital that is generated within and investment portfolio over a period of ownership
a. Overall capitalization rate
b. Discount rate
c. Yield rate
d. Internal rate of return
d. Internal rate of return
The Philippine total land area is distributed as follows
a. 40% forestland; 40% alienable lands; 20% private lands
b. 30% forestland; 30% public lands; 40% private lands
c. 50% forestland; 47% alienable; 3% unclassified lands
d. 20% forestlands; 20% alienable; 30% public lands; 30% private lands
c. 50% forestland; 47% alienable; 3% unclassified lands
Refers to the classification of properties according to its use –
a. residential, industrial, commercial,
b. present property and future property agricultural, special
c. agriculture, forest park or timber, mineral and parks
d. public domain and private ownership
a. residential, industrial, commercial,
The following does not represent the economics characteristics of real estate, except –
a. scarcity, improvements, permanence of investment and area preference
b. land is immobile, indestructible, land is unique
c. land is scars and limited, land is unique and immobile
d. scarcity, availability of land, uniqueness of land
a. scarcity, improvements, permanence of investment and area preference
Cost approach is often given more weight in the appraiser should –
a. an old or obsolete buildings
b. single family houses more than 10 years old
c. new buildings or special-use buildings
d. commercial and industrial properties
c. new buildings or special-use buildings
in reconciliation and conclusion of value, the appraiser should –
a. describe the relevance of each value
b. provide arguments to justify his or her final approach explored conclusion of value
c. discuss the reliability of the data used
d. do all of the above
d. do all of the above
It is the study of human use and understanding of the world, the spatial and organized of human activity and its interrelationships with the physical
government –
a. geography
b. physical geography
c. human geology
d. human and physical geography
b. physical geography (check)
Neighborhood social influences includes all of the following, except –
a. occupant age levels
b. vacancy rates
c. occupant skills levels
d. population density
c. occupant skills levels (CHECK)
An independent entity engaged by a REIT to value its real estate –
a. property appraiser
b. property valuer
c. appraiser
d. assets valuer
b. property valuer
In matters of integrity, a Valuer/Appraiser must –
a. at all times maintain a high standard of honesty and integrity and conduct their activities in a manner not detrimental to their clients the public,
their professional or their respective nation professional valuation/ appraise
b. at all times deal with clients affair with proper discretion and confidentiality
c. perform an assignment with the strictest independence, objectivity, and impartiality without accommodation
d. not act in manner that is misleading or fraudulent
a. at all times maintain a high standard of honesty and integrity and conduct their activities in a manner not detrimental to their clients the public,
their professional or their respective nation professional valuation/ appraise
In matters of confidentiality, a valuer must-
a. at all times maintain a high standard of honesty and integrity and conduct their activities in a manner not detrimental to their clients the public,
their professional or their respective nation professional valuation/ appraise
b. at all times deal with clients affair with proper discretion and confidentiality
c. perform an assignment with the strictest independence, objectivity, and impartiality without accommodation
d. not act in manner that is misleading or fraudulent
b. at all times deal with clients affair with proper discretion and confidentiality
It refers to the study of the earths surface including people’s responses to topography and climate as well as the soil, vegetation, distribution and
interaction of the difference phenomena on earth –
a. demographics
b. biodiversity
c. ecology
d. geography
d. geography
The Greek word “geopraphia” which means –
a. earth surface
b. earth description
c. earth atmosphere
d. earth innerphere
b. earth description
In sale of real property, deferred payment means the:
a. initial payment in a particular year exceeds 30% of the selling price
b. initial payment in a particular year exceeds 25% of the selling price
c. initial payment in a particular year exceeds 35% of the selling price
d. initial payment in a particular year exceeds 40% of the selling price
b. initial payment in a particular year exceeds 25% of the selling price
Particular student is a stockholder who is, directly or indirectly, the beneficial owner of ______ of any class investor securities of the
REIT –
a. more than 25%
b. more than 20%
c. more than 15%
d. more than 10%
d. more than 10%
It deals with the natural features of the earth –
a. Geography
b. Physical geography
c. Human Geography
d. Physical Geography and human geography
b. Physical geography
An appraisal may include
a. Property description, opinion of personal condition, opinion of market value
b. property claims, opinion of property condition, opinion of market value
c. property description, opinion of property condition, opinion of market value
d. property description, opinion of property condition, opinion of market situation
c. property description, opinion of property condition, opinion of market value
Valuer’s comply with a valuation standard either by;
a. requirement placed upon them by law and regulation and choice only
b. requirement placed upon them by law or instructions of clients, intended users, and/or experience only.
c. requirements placed upon them by law or regulations, choice, instructions, of clients intended users, and/or nation societies or
organizations or experience.
d. requirements placed upon them choice, instructions of clients, intended users, and/or national societies or organization or experience only
c. requirements placed upon them by law or regulations, choice, instructions, of clients intended users, and/or nation societies or
organizations or experience
Refers to the study of the relationship between human being relative to their physical environment and cultural behaviors.
a. biogeography
b. geomorphology
c. human geography
d. ecology
d. ecology
Refers to the redistribution of lands, regardless of crops or fruits produced, to farmers and regular farm workers who are landless, irrespective of
tenurial arrangement, to include the totality of factors and support service designed to lift the economic status of the beneficiaries and all other
arrangements alternative to the physical redistribution of lands, such us production or profit-sharing, labor administration and the distribution of
shares of stock which will allow beneficiaries to receive a just share of fruits of the lands they work.
a. social justice
b. agrarian reform
c. program beneficiaries development
d. land tenure improvement
b. agrarian reform
Refer to the study in understanding the physical effects of adding greenhouse gases to the atmospheres radiation balance –
a. biogeography and oceanography
b. geomorphology and pedogenesis
c. geomorphology and hydrology
d. climatology and meteorology
d. climatology and meteorology
It gives emphasis to the study of man’s imprints upon earth, such as the distribution of population, various settlement patterns and the features
resulting from man’s productive activities in earning and living fall within this division.
a. biogeography
b. geomorphology
c. human geography
d. ecology
c. human geography
The sales comparison approach relies on the principles of
a. principle of substitution
b. principle of supply and demand
c. principle of anticipation
d. principle of highest and best use
a. principle of substitution
Most residential appraisals are based –
a. leased fee
b. fee simple ownership
c. leasehold interest
d. co-ownership interest
b. fee simple ownership
A church in a residential area is an example of –
a. a nonconforming use
b. police power
c. forecast absorption
d. private restriction
a. a nonconforming use
It deals with the study of the distribution of cultural traits such as customs, traditions, taboos, religions, dialects and dwelling.
a. cultural geography
b. geomorphology
c. human geography
d. ecology
a. cultural geography
Referred to as the “Citizenship Retention and Re-acquisition Act of 2003” allowing dual citizens.
a. Republic act 6225
b. Republic act 9255
c. Republic Act 9225
d. Republic act 9252
c. Republic Act 9225
It deals with the study of the numbers and distribution of the people and also related to demography, the statistical study of population.
a. cultural geography
b. population geography
c. human geography
d. ecology
b. population geography
Ms. Clara is married to Mr. Claro, she stated her marital status and the name of her husband in Absolute deed of sale, such information is
requirement under –
a. RA 9225
b. PD 957
c. PD 1529
d. BP 185
c. PD 1529
Refers to the study of the widely varying economic condition across the earth –
a. cultural geography
b. population geography
c. human geography
d. economic geography
d. economic geography
It deals with the study of the relationship between political units such as provinces or states nation or union of nations –
a. political geography
b. population geography
c. human geography
d. economic geography
a. political geography
Refers to the study of cities with the important roles cities play in the life of a nation –
a. political geography
b. urban geography
c. human geography
d. economic geography
b. urban geography
Refers to a shareholder of a REIT other than the non-public shareholders –
a. public shareholders
b. investor
c. shareholder
d. sponsor
a. public shareholders
Is the systematic study of origin, distribution and significance of the major physical features of the earth such us land forms, climates,
topography, oceans, geographic, arrangement of people and natural resources and numerous other relationship to one another –
a. human geography
b. physiology
c. physical geography
d. philology and ecology
c. physical geography
In matters of disclosure, it is essential that valuers/appraisers develop and communication their analyses, opinions and conclusion to users of their services thru –
a. financial reports that are meaningful and not misleading and that disclose anything that might be taken to affect objectivity
b. report that are misleading and that disclose anything that might be taken to affect objectivity
c. appraisal reports that are meaningful and not misleading and that disclose anything that might be taken to affect objectivity
d. appraisal report that are meaningful and not misleading and that disregard anything that might be taken to affect objectivity
c. appraisal reports that are meaningful and not misleading and that disclose anything that might be taken to affect objectivity
The Philippine / International Valuation Standard (IVS) –
a. does not have any formal authority in law or is intended to be just complementary to the rules, by law and regulation of national associations
controlling or monitoring the activities of the valuers
b. does not have any formal authority in law is intended to be just complementary to the rules, by laws and regulations of nation
associations controlling or monitoring the activities of the valuers
c. does not have any formal authority in law is intended to be just complementary to the rules, by laws and regulations of national associations
d. controlling and monitoring the activities of the valuers
b. does not have any formal authority in law is intended to be just complementary to the rules, by laws and regulations of nation
associations controlling or monitoring the activities of the valuers (check)
Refers to the monthly payment made by a buyer an installment basis –
a. amortization
b. option payment
c. monthly payment
d. monthly amortization
d. monthly amortization
Refers to a professional administrator of real properties who is engaged by the REIT to provide the property management services.
a. Property Consultant
b. Property Manager
c. Property specialist
d. Property Marketing consultant
b. Property Manager
It analyzes differences and similarities in climate from place. It considers wind movement, cloud formation, temperature changes and precipitation
of all kind.
a. Biogeography
b. Physiology
c. Geomorphology
d. Climatology
d. Climatology
Refers to any person who is acting alone or in conjunction with one or more other persons, directly or indirectly, contributes cash or property in establishing a REIT.
a. public shareholders
b. investor
c. geomorphology
d. climatology
a. public shareholders
The sponsor/promoter of the REIT refers to the following except:
a. a director, principal officer or principal stockholders of the sponsor/promoter of the REIT
b. a investor or principal stockholder of the REIT
c. an associate of a director, principal officer or principal stockholder of the REIT or its sponsor/promoter
d. a related corporation to the REIT or its sponsor/promoter
b. a investor or principal stockholder of the REIT
The cost of installing an air conditioner system in an office building is justified only if the rental increase that can expected as a result of the
installation exceeds the amount spent
a. principle of substitution
b. principle of progression
c. principle of regression
d. principle of contribution
d. principle of contribution
It refers to the study of land and water forms as well as the development of irregularities in the surface of the earth like; glaciations, river floodplains,
underground caves, shorelines, coral reefs, sand dunes, volcanic features and the erosion cycle.
a. biogeography
b. physiology
c. geomorphology
d. climatology
c. geomorphology
The effectivity of RA#6657 or the comprehensive Agrarian Law -
a. June 10, 1988
b. June 15, 1988
c. June 20, 1988
d. June 5, 1988
b. June 15, 1988
Vacancy and collection losses are deducted from gross income using-
a. Environmental science
b. Human Geography
c. Economic Geography
d. Ecology
c. Economic Geography
It covers all the science including ecology, geology and climatory or phenology that deals with the environment –
a. Environmental Science
b. Human Geography
c. Ecology
d. Genecology
a. Environmental Science
It is a scientific study of population characteristics –
a. Geography
b. Demography
c. Ecology
d. Genecology
b. Demography
In many down town areas, parking areas making more profits than older office buildings. The applicable economic principle is?
a. Principle of substitution
b. Principle of supply and demand
c. Principle of anticipation
d. Principle of highest and best use
d. Principle of highest and best use
A program has been announced for a multi-million-peso shopping mall to be constructed in to vacant lot you own property values in the area of the
proposed site will tend to increase as a result of this announcement. The applicable economic principle is?
a. Principle of substitution
b. Principle of progression
c. Principle of anticipation
d. Principle of regression
c. Principle of anticipation
It refers to the elements of geography
a. psychology and human geography
b. physical geography
c. physical geography and human geography
d. geography and ecology
c. physical geography and human geography
It is the degree of variation of life forms within a given ecosystem, biome or an entire planet; it is the measure of health of an ecosystem –
a. Biodiversity
b. Ecology
c. Demography
d. Geography
a. Biodiversity
Cash Advances granted to officers and employees which may be classified into:
a. Regular cash advance
b. Special cash advances
c. Optional cash advances
d. A and B only
e. B and C only
d. A and B only
Cash Advances granted to cashiers, disbursing officers, paymasters and/or property/supply officers for salaries and wages,
commutable allowances, honoraria and other similar payments and petty cash operating expenses the explicit authority.
a. Regular cash advance
b. Special cash advances
c. Optional cash advances
d. Specific cash advances
e. NOTA
a. Regular cash advance
Cash Advances granted on the explicit authority of the agency heads to duly designated disbursing officers or employees for other
legally authorized purposes.
a. Regular cash advance
b. Special cash advances
c. Optional cash advances
d. Specific cash advances
e. NOTA
b. Special cash advances
Peddlers shall be taxed at a rate
- not exceeding Fifty Pesos (₱50.00) per peddler annually.
- not exceeding Fifty Pesos (₱50.00) per peddler quarterly.
- Sixty Pesos (₱60.00) per peddler annually.
- not exceeding Fifty Pesos (₱50.00) per peddler monthly.
- NOTA
- not exceeding Fifty Pesos (₱50.00) per peddler annually
May levy an amusement tax
i. Province ii. Municipal iii. City. iv. Barangay
a. i and ii only
b. i, ii, ii and iv
c. i and iii
d. ii and iii
c. i and iii
A _____________ shall be issued to every person or corporation upon payment of the community tax.
a. Community tax certificate
b. Certificate of Title
c. Tax Declaration
d. Birth certificate
e. NOTA
a. Community tax certificate
The Province may impose the following taxes except.
a. Tax on Transfer of Real Property Ownership
b. Tax on Business of Printing and Publication
c. Franchise Tax
d. Tax on Sand, Gravel and Other Quarry Resources
e. Capital Gain Tax
e. Capital Gain Tax
Is a levy on real property determined on the basis of a fixed proportion of the value of the property.
a. Ad Valorem Tax
b. Value Added Tax
c. Real Property Tax
d. Estate Tax
e. Capital Gain Tax
a. Ad Valorem Tax
The permit to extract sand, gravel and other quarry resources shall be issued exclusively by the ___________________.
a. Provincial Governor
b. Municipal Mayor
c. Punong Barangay
d. AOTA
e. NOTA
a. Provincial Governor
The following are exempt from the community tax, except:
a. Diplomatic and consular representatives
b. Transient visitors when their stay in the Philippines does not exceed three (3) months
c. Transient visitors when their stay in the Philippines does exceed three (3) months
d. NOTA
e. AOTA
c. Transient visitors when their stay in the Philippines does exceed three (3) months
The taxation on ownership of real property by a person is governed by:
a. Local Government Code of 1991
b. Tax Code of 1997
c. National Internal Revenue Code
d. Bureau of Internal Revenue Regulations
a. Local Government Code of 1991
Prompt payments of Real Property tax may be given a discount of ….
a. ten percent (10%)
b. Twenty percent (20%)
c. Thirty percent (30%) of Real Property tax
d. Five percent (5%)
e. Three percent (3%)
a. ten percent (10%)
Advanced payments of Real Property may be entitled to the maximum discount of ….
a. ten percent (10%)
b. Twenty percent (20%)
c. Thirty percent (30%)
d. Five percent (5%)
e. Three percent (3%)
b. Twenty percent (20%)
The inherent power of the State to impose and collect taxes for the purpose of defraying government necessary expenses for public
funds
a. Zoning
b. Taxation
c. Escheat
d. Assessment
b. Taxation
A property record, which is a traditional assessment document maintained by the provincial, city or municipal assessors, showing,
among others the market and assessed values of the property as the basis for the collection of real property tax
a. Declaration of Real Property
b. Declaration of Real Estate
c. Declaration of Real Property Tax
d. Declaration of Real estate Tax
a. Declaration of Real Property
A sale of property after a period of non-payment of taxes.
a. Auction Sale
b. Tax Sale
c. Tax Deficiency
d. Foreclosure Proceeding
b. Tax Sale
Land is historically considered as a source of wealth, power, and prestige as much as it has become one of government’s basic
sources of:
a. Raising public funds
b. Assessment
c. Taxation
d. Collecting Taxes
a. Raising public funds
The earliest forms of property taxation were employed by the:
a. Spaniards
b. Roman Empire
c. Americans
d. Japanese
b. Roman Empire
This became the earliest forms of “tax rolls” listing the taxability of land, farm implements, money, clothing, and transport and cargo
modes such as ships, carriages, and mules.
a. Spanish Census
b. Roman Census
c. American Census
d. Japanese Census
b. Roman Census
During this regime in the Philippines there was no system of real property taxation as it is applied today.
a. A Spanish
b. Roman Empire
c. American Regime
d. Japanese
a. A Spanish
The Spanish “encomienda system levied taxes on male tenant farmers of military age (16 – 60) in a form of tribute or _________ for
the privilege of working the land.
a. Special tax
b. Property tax
c. Income Tax
d. Personal tax
d. Personal tax
The short-lived “1st Philippine Republic of 1898 provided for a system of realty taxation but was not implemented completely under the:
a. Malolos Constitution
b. Both A & B
c. Philippine Constitution
d. None of the above
a. Malolos Constitution
The ________ laid the ground works of real property taxation in the Philippines. In 1901, the Philippine Commission promulgated Act
Nos. 82 and 83 authorizing municipal and provincial treasurers to levy realty taxes at rates not exceeding 1⁄2 of1% and 3/8 of 1%,
respectively, in the organization of local governments.
a. Spaniards
b. Roman Empire
c. Americans
d. Japanese
c. Americans
The Administrative Code of 1916 (Act No. 2657) incorporated the:
a. Municipal Code and Provincial Act
b. City and Provincial Act
c. City and Municipal Act
d. None of the Above
a. Municipal Code and Provincial Act
Act No. 3995 created the:
a. Office of the City Assessor
b. Office of the Provincial Assessor
c. Office of the Municipal Assessor
d. Office of the District Assessor
b. Office of the Provincial Assessor
The National Assembly of 1939 enacted the:
a. Commonwealth Act No. 470
b. Administrative Code of 1916
c. Act No. 3995 `
d. None of the Above
a. Commonwealth Act No. 470
During Martial Law, sweeping reforms on real property taxation were introduced through:
a. PD 25 and 76
b. PD 25 and 26
c. PD 75 and 76
d. None of the Above
a. PD 25 and 76
This Code became the basis of the Real Property Tax Administration System in the Philippines in 1974.
a. Real Property Tax Code
b. Valuers Code
c. Real Property Code
d. Tax Code
a. Real Property Tax Code
The Office of the Municipal Assessor was created in:
a. 1976
b. 1978
c. 1977
d. 1979
b. 1978
PD 464, as amended, was recognized under the:
a. Local Government Code of 1983
b. Local Government Code of 1985
c. Local Government Code of 1984
d. Local Government Code of 1986
a. Local Government Code of 1983
The 1987 Constitution paved the way for the Local Government Code of 1991 which refers to:
a. RA 7160
b. RA 6425
c. RA 7835
d. RA 7279
a. RA 7160
In 2001, the Land Administration and Management Program, Phase I (LAMP 1), a 15 – 20 year commitment of the Philippine Government was launched. This was aimed at, but not:
a. poverty alleviation
b. economic growth
c. equitable real property valuation
d. assessment and taxation
d. assessment and taxation
On October 13, 2009, Executive Order No. 833 this office was created for purposes of sustaining and instituting real property valuation
reforms
a. Property Valuation Office
b. Philippine Valuation Office
c. Real Property Valuation Office
d. Philippine Property Valuation office
a. Property Valuation Office
DOF Department Order No. 37-09 prescribed the Philippine Valuation Standards (1st Edition) – Adoption of the IVSC Valuation
Standards under Philippine Setting, on:
a. September 19, 2009
b. November 19, 2009
c. October 19, 2009
d. December 19, 2009
c. October 19, 2009
The filing of sworn declaration of the true value of property in the assessor, by the owner or administrator is required under Section 202
of the Local Government Code:
a. once every three years
b. once every two years
c. once every 5 years
d. once every 10 years
a. once every three years
Such filing of the declaration is supposed to coincide with the once every three years conduct of the general revision of:
a. real property assessments
b. real property appraisal
c. real property taxation
d. real property valuation
a. real property assessments (check)
The Local Government Code requires the person acquiring at any time real property or making any improvement on real property
belonging to him, to prepare and submit to the assessor, a sworn statement declaring the true value of the property:
a. within 30 days after the acquisition of such property or the completion of the improvements made
b. within 60 days after the acquisition of such property or the completion of the improvements made
c. within 90 days after the acquisition of such property or the completion of the improvements made
d. within 120 days after the acquisition of such property or the completion of the improvements made
b. within 60 days after the acquisition of such property or the completion of the improvements made
The deputized Examiners shall perform the following activities except:
a. Review of pertinent records of the business establishment to be examined
b. Review of the working papers, if any, of the business establishment, if previously examined
c. Submission to the Owner/President of the business establishment to be examined the Letter of Appointment/Authority to conduct
the examination
d. Acceptance of books of accounts and documents for verification/examination
e. Preparation of Bank Reconciliation Statements
e. Preparation of Bank Reconciliation Statements
Declaring newly acquired, newly built, or newly transferred real property is required under the following conditions, but not:
a. The property may be assessed at the proper time and avoid on the part of the property owner the accumulation of back taxes.
b. Real property records may be updated to indicate present ownership
c. Real property records may be amended, corrected, or updated to accordingly reflect the changes in the condition, classification,
taxability, or other variations made on the property.
d. Real property records may be revised to indicate previous ownership
d. Real property records may be revised to indicate previous ownership
Declaring newly acquired, newly built, or newly transferred real property is required under the following conditions, but not:
a. Demolition of buildings or other structures
b. Dismantling and cessation of operation of machinery
c. Change in classification and or Correction in area
d. Conversion of presently taxable properties to exempt
d. Conversion of presently taxable properties to exempt
All assessors are required to prepare and maintain an assessment roll wherein all taxable real property located within their areas of
jurisdiction shall be:
a. listed
b. assessed
c. taken
d. transferred
a. listed
A copy of the assessment roll must be transmitted to their respective local treasurers; except in cases where the assessors’ records
are computerized and the same are directly and operationally connected to the Treasurers’ Offices in the form of:
a. assessment network system
b. local area networking or LAN.
c. city network system
d. municipal network system
b. local area networking or LAN.
For purposes of recording and maintaining statistical data, a separate roll shall be prepared for:
a. exempt properties.
b. taxable properties
c. assessed properties
d. listed properties
a. exempt properties
The four (4) most important elements of the assessment process are the following, except:
a. Classification, Actual use, Assessed Value, Assessment Levels
b. Assessment levels, Actual Use, Assessment Levels, Tax rate
c. Assessed value, Classification, Tax Rate, Actual Use
d. Assessed value, Classification, Tax Rate, Assessment Levels
a. Classification, Actual use, Assessed Value, Assessment Levels
Classification of real property provides for the foundation of equity and uniformity in realty:
a. Assessment
b. Valuation
c. Taxation
d. Classification
c. Taxation
Taxes are imposed uniformly upon the same classes of property within the territorial jurisdictions of local government units:
a. levying the tax
b. determining the tax
c. identifying the property
d. classifying the tax
a. levying the tax
The basis for the assessment of real property in the Philippines, regardless of where the property is located, whoever owns it, and
whoever uses it.
a. Classifying the property
b. Actual Use of the property
c. Assessing the property
d. Assessment Levels
b. Actual Use of the property
The value multiplied by the tax rate equals the tax due from the real property is the:
a. Market Value
b. Appraised Value
c. Tax Due
d. Assessed Value
d. Assessed Value
The proceeds of the basic real property tax, including interest thereon, and proceeds from the use, lease or disposition, sale or
redemption of property acquired by public auction by the city shall be distributed accordingly. At what percentage of the proceeds will
accrue to the General Fund of the city?
a. 30%
b. 70%
c. 40%
d. 50%
e. 25%
b. 70%
The proceeds of the basic real property tax, including interest thereon, and proceeds from the use, lease or disposition, sale or
redemption of property acquired by public auction by the province shall be distributed accordingly. At what percentage of the proceeds
will accrue to the barangay where the property is located or equally to all component barangays of the city?
a. 30%
b. 70%
c. 40%
d. 50%
e. 25%
d. 50%
An act providing for the recognition and use of electronic commercial and non-commercial transactions, penalties for unlawful use
thereof, and other purposes.
a. R.A. No. 7160
b. R.A. No. 6657
c. R.A. No. 6810
d. R.A. No. 8792
e. R.A. No. 7279
d. R.A. No. 8792
An act instituting a comprehensive agrarian reform program to promote social justice and industrialization providing the mechanism for
its implementation and for other purposes.
a. R. A. No. 7160
b. R. A. No. 6657
c. R. A. No. 6810
d. R. A. No. 8792
e. R. A. No. 7279
b. R. A. No. 6657
The basic real property tax and any other tax levied under Title 2, Book II of R. A. No. 7160 shall, from the date they become due, be collected within:
a. 5 years
b. 7 years
c. 10 years
d. 15 years
e. 20 years
a. 5 years
The proceeds of the basic real property tax, including interest thereon, and proceeds from the use, lease or disposition, sale or
redemption of property acquired by public auction by the province shall be distributed accordingly. At what percentage of the proceeds
shall be distributed among the component barangays of the cities where the property is located?
a. 30%
b. 70%
c. 40%
d. 50%
e. 25%
a. 30%
Under R. A. No. 7160, failure to post and publish the itemized monthly collections and disbursements of the LGU within the prescribed
period shall be punished by:
a. A fine not exceeding Php 500.00 or by imprisonment not exceeding 1 month or both
b. A fine between Php 1,000.00 – Php 5,000.00 or by imprisonment between 1 – 6 months or both
c. A fine between Php 200.00 – Php 10,000.00 or penalty of prision correccional in its minimum period or both
d. Sufficient ground for administrative disciplinary action against the officials and employees involved
e. Automatic dismissal from the service after due notice and hearing
a. A fine not exceeding Php 500.00 or by imprisonment not exceeding 1 month or both
Under the Revised Penal Code, frauds against the public treasury and similar offenses by a public officer, such as (1) Demanding,
directly or indirectly, the payment of sums different from or larger than those authorized by law, (2) Failing voluntarily to issue a receipt,
as provided by law, for any sum of money collected by him officially, (3) Collecting or receiving, directly or indirectly, by way of payment
or otherwise, things or objects of nature different from that provided by law, shall be punished by:
a. A fine not exceeding Php 500.00 or by imprisonment not exceeding 1 month or both
b. A fine between Php 1,000.00 – Php 5,000.00 or by imprisonment between 1 – 6 months or both
c. A fine between Php 200.00 – Php 10,000.00 or penalty of prision correccional in its minimum period or both
d. Sufficient ground for administrative disciplinary action against the officials and employees involved
e. Automatic dismissal from the service after due notice and hearing
c. A fine between Php 200.00 – Php 10,000.00 or penalty of prision correccional in its minimum period or both
Under R. A. No. 7160 and without prejudice to criminal prosecution under the Revised Penal Code and other applicable laws, any
Local Treasurer who fails to issue or execute the warrant of distraint or levy after the expiration of the time prescribed, or who is found
guilty of abusing the exercise thereof by competent authority shall be punished by:
a. A fine not exceeding Php 500.00 or by imprisonment not exceeding 1 month or both
b. A fine between Php 1,000.00 – Php 5,000.00 or by imprisonment between 1 – 6 months or both
c. A fine between Php 200.00 – Php 10,000.00 or penalty of prision correccional in its minimum period or both
d. Sufficient ground for administrative disciplinary action against the officials and employees involved
e. Automatic dismissal from the service after due notice and hearing
e. Automatic dismissal from the service after due notice and hearing
The following are classified as Personal Services except:
a. Salaries and Wages (Regular)
b. Salaries and Wages (Contractual)
c. Special allowances
d. Honoraria
e. Cash Gift
c. Special allowances
Real property consists of
a. Rights in realty
b. Land and all improvements thereon
c. The right to use or occupy real estate
d. Single-family residences
a. Rights in realty
A duly registered and licensed natural person who works in a local government unit and performs appraisal and assessment of real estate
properties, including plants, equipment, and machineries, essentially for taxation purposes.
a. Real estate appraiser
b. real estate assessor
c. Real estate consultant
d. real estate salesperson
e. Real estate broker
b. real estate assessor
Julita Cruz owns a vacation home near a small town almost 1 kilometers from the city in which she lives and works. She doesn’t use her vacation
house more than three weeks every year. The last time she stayed there, she noticed that a gas station had been built a few hundred yards down the
road. After talking to the owner, she discovered that a zoning change had been put into effect to allow construction of a new shopping center on land adjacent to the gas station. While Ms. Cruz’s property was not rezoned, she realizes that it won’t be suitable as a vacation retreat once the shopping center is built. Which basic value principle(s) does the foregoing case illustrate?
a. Highest and best use (HABU)
b. conformity
c. change
d. all of the above
d. all of the above
Which of the following is not a part of the market value definition?
a. Buyer and seller are typically motivated
b. The property sells in 90 to 120 days
c. Payment is made in cash or cash equivalent terms
d. Both parties are well informed
b. The property sells in 90 to 120 days
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
The following are restrictions of property rights except
a. Zoning
b. taxation
c. Escrow
d. escheat
c. Escrow
The addition to the land through processes of nature, such as deposits of soil carried by streams.
a. avulsion
b. alluvium
c. accretion
d. usufruct
c. accretion
A duly registered and licensed natural person who, for a professional fee, compensation or other valuable consideration, offers or renders
professional advice and judgment on: (i) the acquisition, enhancement, preservation, utilization or disposition of lands or improvements thereon; and
(ii) the conception, planning, management and development of real estate projects.
a. Real estate appraiser
b. real estate assessor
c. Real estate consultant
d. real estate salesperson
e. Real estate broker
c. Real estate consultant
Which of the following courses would benefit a professional appraiser?
a. real estate finance, land use planning, real estate law
b. urban sociology, demographics, information systems
c. All of the above
d. One of the above
c. All of the above
The four agents of production are
a. Land, labor, capital, improvements
b. Land, improvements, labor, materials
c. Land, labor, capital, entrepreneurship
d. Land, labor, capital, money
c. Land, labor, capital, entrepreneurship
Linkages are
a. The devices used to change a property from one use to another
b. The relationships between a buyer and seller in a real estate deal
c. Time-distance relationships between a property use and the supporting facilities
d. The tools necessary to market real estate
c. Time-distance relationships between a property use and the supporting facilities
Refers to the compulsory successional rights granted by the law and the same cannot be taken by anybody except when alienated during the lifetime
of the testator with consideration
a. Legitime
b. intestate
c. Succession
d. heir
e. testate
a. Legitime
The highest form of real property ownership is
a. homestead estate
b. leasehold estate
c. fee simple
d. life estate
c. fee simple
A duly registered and licensed natural person who, for a professional fee, compensation or other valuable consideration, performs or renders, or
offers to perform services in estimating and arriving at an opinion of or acts as an expert on real estate values, such services of which shall be finally
rendered by the preparation of the report in acceptable written form.
a. Real estate appraiser
b. real estate assessor
c. Real estate consultant
d. real estate salesperson
e. Real estate broker
a. Real estate appraiser
What term is used to describe a study of the cost -benefit relationship of an economic endeavor?
a. Investment analysis
b. Feasibility analysis
c. Cash flow analysis
d. Market analysis
b. Feasibility analysis
Investment value is best measured by
a. Market price to a specific investor
b. Market value to a specific investor
c. The cost of acquiring a competitive substitute property with the same utility to a typical purchaser
d. The present worth of anticipated future benefits to a specific investor
d. The present worth of anticipated future benefits to a specific investor
The scientific study of population statistics is
a. scientography
b. segmentation
c. demography
d. forecasting
c. demography
The best evidence of ownership is
a. Tax declaration
b. Vicinity map
c. Torrens title
d. None of the above
e. Technical description
c. Torrens title
Real property includes
a. Any and all buildings on the subject site
b. All interests, benefits, and rights inherent in the ownership of real estate
c. The physical land and appurtenances affixed to the land
d. Property that is not artificial
b. All interests, benefits, and rights inherent in the ownership of real estate
In corporate practice of real estate service, there shall be at one license real estate broker for every
a. 25 accredited salesperson
b. 35 accredited salesperson
c. 20 accredited salesperson
d. 40 accredited salesperson
e. 30 accredited salesperson
c. 20 accredited salesperson
An appraisal may include a(n)
a. property description
b. opinion of value
c. estimate of market value
d. all of the above
d. all of the above
The value most commonly sought in real estate appraisals is
a. Investment value
b. Insurable value
c. Value in use
d. Market value
d. Market value
What form of diffusion is represented by the spread of Shoe Mart (SM)?
a. cascade
b. relocation
c. reverse hierarchical
d. stimulus
c. reverse hierarchical
Immovable or real property in favor of the easement
a. servient estate
b. fixture
c. dominant estate
d. legitime
e. land estate
c. dominant estate
