REA Mock Examination With Answer

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GOOD LUCK!
PART 1: FUNDAMENTALS
1. The enactment of the Real Estate Service Act created a body that will regulate the
real estate service practice. This regulatory body is named
a. Professional Regulatory Commission
b. Professional Regulatory oard of Real Property Practitioners
c. Professional Regulatory Board of Real Estate Service
d. Professional Regulatory oard for Appraisers
!. This term refers to an o"cial in the local government unit# who performs appraisal
and assessment of real properties# including plants# e$uipment# and machineries#
essentially for ta%ation purposes.
a. Appraiser
b. Assessor
c. Consultant
d. ro&er
'. A duly registered and licensed natural person who wor&s in a local government unit
and performs appraisal and assessment of real properties# including plants#
e$uipment# and machineries# essentially for ta%ation purposes is referred to as
a. real estate appraiser
b. real estate bro&er
c. real estate consultant
d. real estate assessor
(. A duly accredited natural person who performs service for# and in behalf of a real
estate bro&er who is registered and licensed by the Professional Regulatory oard of
Real Estate Service for or in e%pectation of a share in the commission# professional
fee# compensation or other valuable consideration is referred to as
a. real estate salesperson
b. real estate bro&er
c. real estate appraiser
d. real estate consultant
). This term refers to a person who conducts valuation*appraisal+ speci,cally# one who
possesses the necessary $uali,cations# license# ability and e%perience to e%ecute or
direct the valuation*appraisal of real property.
a. Appraiser
b. ro&er
c. Assessor
d. Consultant
-. .e,ned as the physical land and those human/made items# which attach to the land.
a. Real property
b. Real estate
c. Personal property
d. Asset
0. The ownership of real estate is called
a. bundle of rights.
b. real property.
Page 1 of 36 Mock Examination - Fundamentals
c. fee simple.
d. freehold.
1. 2ncludes all the rights# interests# and bene,ts related to the ownership of real estate.
a. bundle of rights.
b. real property.
c. fee simple.
d. freehold.
3. A term used for the amount as&ed# o4ered# or paid for a good or service.
a. Cost
b. 5alue
c. Price
d. Replacement cost
16. The price paid for goods or services or the amount re$uired to create or produce the
good or service.
a. 5alue
b. Price
c. Cost
d. Selling price
11. An economic concept referring to the price most li&ely to be concluded by the buyers
and sellers.
a. Cost
b. Value
c. Price
d. 7ar&et
1!. The environment in which goods and services trade between buyers and sellers
through a price mechanism.
a. Market
b. 7edium
c. Stoc& e%change
d. Appraisal
1'. A statement of the fundamental measurement principles of a valuation on a speci,ed
date.
a. 7ar&et value
b. Selling price
c. Economic condition
d. Basis of value
1(. 2n mar&ets characterised by e%treme volatility or severe dise$uilibrium between
supply and demand# the highest and best use of a property may be a * an
a. holding for future use.
b. interim use.
c. e%isting use.
d. commercial utility
1). 8here land use and 9oning are in a state of change# the immediate highest and best
use of a property may be a * an
a. interi use.
b. present use.
c. residential use.
d. commercial use.
1-. This principle holds that a prudent person would not pay more for a good or service
than the cost of ac$uiring an e$ually satisfactory substitute good or service.
a. Principle of highest and best
b. Principle of anticipation
c. Principle of substitution
d. Principle of competition
10. This comparative approach considers the sales# listings or o4ers of similar or
substitute properties and related mar&et data# and establishes a value estimate by
processes involving comparison.
a. Market data approach
b. Cost approach
c. 2ncome approach
d. Contractor:s method
11. This comparative approach considers income and e%pense data relating to the
property being valued and estimates value through a capitalisation process.
a. 7ar&et data approach
b. !ncoe approach
c. Cost approach
d. Residual techni$ue
13. This comparative approach considers the possibility that# as an alternative to the
purchase of a given property# one could ac$uire a modern e$uivalent asset that
would provide e$ual utility.
b. 2ncome approach
c. Cost approach
d. uilding residual techni$ue
!6. A duly registered and licensed natural person who# for a professional fee# commission
or other valuable consideration# acts as an agent of a party in a real estate
transaction to o4er# advertise# solicit# list# promote# mediate# negotiate or e4ect the
meeting of the minds on the sale# purchase# e%change# mortgage# lease or ;oint
venture# or other similar transactions on real estate or any interest therein.
a. Real estate appraiser
b. Real estate salesperson
c. Real estate broker
d. Real estate developer
!1. 2n asset valuation# this term refers to the ad;ustments made to the cost of
reproducing or replacing the asset to re<ect physical deterioration and functional
=technical> and e%ternal =economic> obsolescence in order to estimate the value of
the asset.
a. .eterioration
b. "epreciation
c. Replacement cost
d. Reproduction cost
!!. 2n property appraisal# these are suppositions ta&en to be true# involving facts#
conditions# or situations a4ecting the sub;ect =property being appraised># or the
approach in the valuation.
a. Assuptions
b. 7ar&et conditions
c. Perceptions
d. ?bservations
!'. A duly registered and licensed natural person who# for a professional fee#
compensation or other valuable consideration# o4ers or renders professional advice
and ;udgment on@ =i> the ac$uisition# enhancement# preservation# utili9ation or
disposition of lands or improvements thereon+ and =ii> the conception# planning#
management and development of real estate pro;ects.
a. Real estate bro&er
b. Real estate appraiser
c. Real estate consultant
d. Real estate developer
!(. These are constraints that maybe imposed by clients or by statutory law that would
li&ely to a4ect valuation.
a. #iiting Conditions
b. Assumptions
c. ?bservations
d. 5aluation methods
!). A person who possesses the necessary $uali,cations# ability# and e%perience to
e%ecute*performed a valuation.
a. Appraiser or valuer
b. Consultant
c. ro&er
d. Salesperson
!-. 2s a valuer or an appraiser who is in the employ of either the entity that owns the
assets or the accounting ,rm responsible for preparing the entity:s ,nancial record
and*or reports.
a. E%ternal 5aluer
b. Public Sector Appraiser
c. !nternal Valuer
d. 5aluer Aeneral
!0. 2s a valuer or an appraiser# together with any associates# has no material lin&s with
the client# an agent acting on behalf of the client or the sub;ect of the assignment.
a. E$ternal Valuer
b. 2nternal 5aluer
c. Assessor
d. ro&er
!1. As provided for in the Philippine 5aluation Standards# the four property types are@
a. Real estate# asset# machinery# plant and e$uipment
b. Real property% personal property% businesses and &nancial interests
c. Real estate# ,%ture# chattel and trade related
d. Real property# machinery# e$uipment and plant
!3. Bamilies are more aware of recycling their consumer wastes than ever before. This is
an e%ample of which &ind of force@
a. Social
b. Aovernmental
c. Economic
d. Environmental
'6. Absolute ownership sub;ect only to limitations imposed by the country is &nown as
a. 'ee siple estate.
b. Ceasehold estate.
c. Cease fee estate.
d. Severalty.
'1. A duly registered and licensed natural person who# for a professional fee#
compensation or other valuable consideration# performs or renders# or o4ers
to perform services in estimating and arriving at an opinion of or acts as an e%pert on
real estate values# such services of which shall be ,nally rendered by the preparation
of the report in acceptable written form.
a. Real estate appraiser
b. Real estate assessor
c. Real estate bro&er
d. Real estate consultant
'!. 2nterests in items that are not permanently attached or a"%ed to real estate and are
generally characteri9ed by their moveability.
a. Real estate property
b. Bi%tures
d. Chattel
''. Any commercial# industrial# service or investment entity pursuing an economic
activity is referred to as
a. Binancial interests
b. Real property
d. Business
'(. 2nterests 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 speci,ed period# or from the creation or
investment instruments secured by pooled real estate assets.
a. usiness
b. 'inancial interests
d. Real estate investment trust
'). The process of ac$uiring private property for public use is called
a. Eminent domain
b. Police power
c. Escheat
d. Condenation
'-. A type of business involving a combination of two or more entities that ;oin to
underta&e a speci,c pro;ect.
a. Syndication
b. Cimited partnership
c. (oint venture
d. Aeneral partnership
'0. 2n statistics# this term refers to the di4erence between the highest and the lowest
scores.
a. Standard deviation
b. 7ode
c. 7ean
d. Range
'1. This economic principle relates to the principle of balance as well as to the principle
of contribution. This principle holds that as capital units are added# a certain point is
reached where the added units do not contribute value commensurate with their
costs.
a. Principle of substitution
b. Principle of balance
c. Principle of contribution
d. Principle of increasing and decreasing returns
'3. The right of government to ac$uire private property for public use is referred to as
a. einent doain.
b. police power.
c. escheat.
d. ta%ation.
(6. Ta% 2mposed on pro,t presumed have been reali9ed on the sale or disposition of lands
and*or buildings.
a. Estate ta%
b. Capital gains ta$
c. 2nheritance ta%
d. Realty ta%
(1. 2n statistics# this term refers to the measurement of how much all the scores in a
distribution typically deviate or vary from the mean.
a. Standard "eviation
b. 5ariance
c. 7ode
d. Range
(!. An ownership arrangement in which all partners share in investment gains and losses
and each is fully responsible for all liabilities.
a. Cimited partnership
b. )eneral partnership
c. Doint venture
d. Syndication
('. Ta% imposed on the right to transmit real and personal properties upon death of the
property owner =decedent>.
a. 2nheritance ta%
b. Capital gains ta%
c. Estate ta$
d. Real estate ta%
((. Refers to government housing pro;ects which may either be a subdivision or a
condominium intended for homeless low/income family bene,ciaries
a. Residential subdivision
b. Cow cost housing
c. Sociali*ed housing
d. 7arginal housing
(). An item that was once personal property that has become part of the real estate is
referred to as
a. Real property
b. Real estate
c. 'i$ture
d. E$uipment
(-. The purest and most complete form of real estate ownership is
a. leased fee estate.
b. Ceasehold estate.
c. 'ee siple.
d. Real property.
(0. The right of government to regulate land use for the public good.
a. Escheat
b. Eminent domain
c. Police po+er
d. Ta%ation
(1. 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. 7ar&et value
d. Ci$uidation value
(3. The right of governments to ac$uire private property for public use# such as a road
widening.
a. Einent doain
b. E%propriation
c. Police power
d. Condemnation
)6. A limitation on the use of real estate through a written legal document that is usually
recorded.
a. 7ortgage
b. "eed restriction
c. Cien
d. Chattel
)1. This term refer to the conveyance of the right to use part of a land for a speci,c
purpose and thus divide the bundle of rights.
a. Cease
b. Encroachment
c. Easeent
d. Contract
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)!. A loan or promissory note that is secured by the real estate.
a. Cease
b. Mortgage
c. Cien
d. Chattel
)'. A trespass on another:s land is a from of a * an
a. Easement
b. Encroachent
c. 7ortgage
d. Restriction
)(. A government restriction imposed on ownership of real estate that actually means
going to the state.
a. Eminent domain
b. Police power
c. Escheat
d. Ta%ation
)). The most common form of ownership where one person or corporation owns the
entire bundle of rights# still sub;ect to governmental and private restrictions.
a. Severalty
b. Condominium
c. Ceased fee
d. Real property
)-. This term means is that the property itself cannot be divided# only the ownership
interest.
a. Cease interest
b. Real property
c. ,ndivided interests
d. Binancial interests
)0. A form of ownership in which a corporation owns the land and improvements# and the
residents own stoc& in the corporation. Then# the corporation signs an e%clusive lease
with the tenant/stoc&holder.
a. Cooperative
b. Condominium
c. Time/share
d. Severalty
)1. A form of partial ownership in which other tenants in common purchase the right of
use*occupancy for a speci,ed period of time# say one wee& per year.
a. Cooperative
b. Condominium
c. -ie.share
d. Severalty
)3. The ,nal step in the valuation process.
a. 2denti,cation of the real estate
b. .ata analysis
c. Correlation of value
d. Valuation reporting
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-6. Communicates to users and third/party readers the value conclusion and con,rms
the basis of the valuation# the purpose of the valuation# and any assumptions or
limiting conditions underlying the valuation.
a. Valuation report
b. 5aluation process
c. Correlation of value
d. 5aluation approaches
-1. The following statements are true when applied to 5aluation Standards e%cept
a. Standards are statements of recogni9ed principles and concepts
b. Standards are statement of best practice in procurement and reporting
c. Standards are statements of accepted de,nitions
d. Standards prescribe speci&c ethods of valuation for di/erent
purposes
-!. The value of property to a particular investor# or a class of investors# for identi,ed
investment or operational ob;ectives.
a. !nvestent Value
b. 5alue in use
c. Aoing concern value
d. 7ar&et value
-'. An amount above the 7ar&et 5alue that re<ects particular attributes of an asset that
are only of value to a particular purchaser.
a. Plottage value
b. Special Value
c. 2nvestment value
d. 5alue in use
-(. This is a form of ownership in which an owner has an interest =usually fee simple> in a
certain unit de,ned such as the space between the interior walls# the ceiling# and the
<oor of that unit and the owner also owns a pro/rata share of the common areas
=drives# grounds# recreational amenities# etc.> within the development.
a. Cooperative
b. Ceased fee estate
c. Bee simple
d. Condoiniu
-). An additional element of value created by the combination of two or more interests
where the value of the combined interest is worth more than the sum of the original
interests.
a. Synergistic value.

b. 7ar&et value
c. 2nvestment value
d. Aoing concern value
--. The 2nternational Binancial Reporting Standards adopt these two models for the
recognition of property assets in the balance sheet@
a. Cost model and value in use model
b. Cost odel and fair value odel
c. Cost model and investment value model
d. Cost model and going concern value model
-0. Assets owned and*or controlled by governmental or $uasi/governmental entities to
provide goods or services to the general public.
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a. Public sector assets
b. Real estate
c. 2ncome generating assets
d. Real property
-1. This concept is based on the notion that although two or more parcels of real estate
may have physical similarities and closely resemble one another# there may be
signi,cant di4erences in how they can be used.
a. Etility
b. 5alue
c. 0ighest and best use
d. Substitution
-3. The approach to value perceives value as created by the e%pectation of future
bene,ts =income streams>.
b. !ncoe approach
c. Cost approach
d. Allocation
06. This approach to value recogni9es that property prices are determined by the mar&et.
7ar&et 5alue can# therefore# be calculated from a study of mar&et prices for
properties that compete with one another for mar&et share.
b. Cost approach
c. Capitali9ation process
d. 2ncome approach
01. 8hen data are available# this approach to value is the most direct and systematic
approach to estimating value.
a. Cost approach
b. 2ncome approach
c. Market data approach
d. Residual techni$ue
0!. .escribes a valuation where an entire business is transferred as an operational entity.
a. )oing concern value
b. 5alue in use
c. 7ar&et value
d. 2nvestment value
0'. This approach to value is also &nown as the contractor:s method# and is recogni9ed in
most countries.
b. Asset based valuation
c. Cost approach
d. 2ncome approach
0(. A form of real property# arising from the contractual relationship between one who
owns the property and one who typically receives a non/permanent right to use the
property in return for rental payments or other valuable economic consideration.
a. #ease interests
b. Bee simple
c. Breehold
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Mock Examination - Fundamentals
d. Condominium
0). 2n business valuation# this approach may be similar to the cost approach used by
appraisers of di4erent types of assets.
a. 2ncome approach
b. 7ar&et data approach
c. Residual techni$ue
d. Asset.based approach
0-. Speci,c materials that# by their presence or pro%imity# may have adverse e4ect on
property value because of their potential to cause harm to life/forms.
a. Bully depreciated buildings and improvements
b. 0a*ardous and to$ic substances
c. Fon/fruit bearing trees
d. 2nformal settlers
00. The current cost of replacing an asset with its modern e$uivalent asset less
deductions for physical deterioration and all relevant forms of obsolescence and
optimi9ation.
a. Replaceent cost
b. Reproduction cost
c. Cost to cure
d. Guantity survey method
01. Refers to the loss in value of an asset resulting from wear and tear over time#
including any lac& of maintenance.
a. Bunctional obsolescence
b. Economic obsolescence
c. .eferred maintenance
d. Physical deterioration
03. Refers to loss in value that can be caused by advances in technology that result in
new assets being capable of a more e"cient delivery of goods and services.
a. 'unctional obsolescence
c. .eferred maintenance
d. Physical deterioration
16. A charge against a property in which the property is security for payment of a debt is
called a
a. lien.
b. mortgage.
c. escheat.
d. restriction.
11. The Enchanted Hingdom theme par& in Sta. Rosa has had a signi,cant impact on
uses of land in its vicinity for many years and an in<uence on the value of that land.
8hich of the four forces does this representI
a. Social
b. Aovernmental
c. Econoic
d. Environmental
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1!. A ,nancial modeling techni$ue used in the income approach to value that is based on
e%plicit assumptions regarding the prospective income and e%penses of a property or
business.
a. .irect capitali9ation
b. Annuity method
c. "iscounted cash 1o+ analysis
d. 2nvestment method
1'. A type of review underta&en to ensure that a valuation meets or e%ceeds the
compliance re$uirements or guidelines of the speci,c mar&et and# at a minimum#
conforms to Aenerally Accepted 5aluation Principles of the Philippine 5aluation
Standards.
a. Bield review
b. Technical review
c. .es& review
d. Adinistrative revie+
1(. The rights and privileges granted to the owner of intangible assets.
a. Personal property
b. undle of rights
c. !ntangible property
d. Tangible property
1). A valuation review that is limited to the data presented in the report# which may or
may not be independently con,rmed.
a. Bield review
b. Technical review
c. "esk revie+
d. Administrative review
1-. This theory involves the concept that land cannot be valued under one highest and
best use while the improvements are valued based on another highest and best use.
a. Consistent use
b. Contribution
c. alance
d. Anticipation
10. Refers to a housing program and pro;ects covering houses and lots or homeless only
underta&en by the government or the private sector for the underprivileged and
homeless citi9ens.
a. #o+ cost housing
b. Sociali9ed housing
c. Subdivision development
d. liss pro;ect
11. A valuation review performed by an appraiser to form an opinion as to whether the
analyses# opinions# and conclusions in the report under review are appropriate#
reasonable# and supportable.
a. Bield review
b. -echnical revie+
c. .es& review
d. Administrative review
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13. These are individual properties# such as hotels# fuel stations# and restaurants that
usually change hands in the mar&etplace while remaining operational.
a. Speciali9ed properties
b. Public sector assets
c. 2nstitutional properties
d. -rade related properties
36. A revenue/raising procedure# based on the assessed value of property related to a
scale of charges de,ned by statute within a speci,ed time/frame.
a. Aross income ta%ation
b. Ad valore ta$ation
c. Capital gains ta%ation
d. Estate ta%ation
31. 2n mass appraisal# this is the process of analy9ing sets of property and mar&et data to
determine the speci,c parameters operating upon a model.
a. Standard deviation
b. Range
c. 7ode
d. Calibration
3!. The practice of appraising multiple properties as of a given date by a systematic and
uniform application of appraisal methods and techni$ues that allow for statistical
review and analysis of results.
a. Mass appraisal
b. 5aluation process
c. 7ultiple regression
d. Arid analysis
3'. Represents the ownership interest of a lessor owning real estate that is sub;ect to
lease to others
a. Ceasehold fee estate
b. #eased fee estate
c. Partial interest
d. undle of rights
3(. Any form of lease rental arrangement in which the lessor receives a form of rental
that is based on the earnings of the lessee. Percentage rent is an e%ample.
a. -urnover rent
b. ase rent
c. 7ar&et rent
d. Economic rent
3). Rights generally inherent in the ownership of real estate include are referred to as
a. Property rights
b. Real property
c. Bundle of rights
d. Cease interests
3-. At the most fundamental level# value is created and sustained by the interrelationship
of ,ve factors that are associated with any product# service# or commodity. These
factors are J
a. Etility# need# purchasing power# buyers and sellers
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b. Capital mar&ets# money mar&ets# discount rate and reserve re$uirements
c. ,tility% scarcity% desire% purchasing po+er% and transferability
d. Cocation# si9e# shape# terrain and elevation
30. 2n property mar&ets# this represents the $uantity of property interests that are
available for sale or lease at various prices in a given mar&et within a given period of
time# assuming labour and production costs remain constant.
a. .emand
b. Purchasing power
c. .esirability
d. Supply
31. 2n property mar&ets# this constitutes the number of possible buyers or renters
see&ing speci,c types of property interests at various prices in a given mar&et within
a given period of time# assuming other factors such as population# income# future
prices# and consumer preferences remain constant.
a. "eand
b. Supply
c. Active mar&et
d. E"cient mar&et
33. This economic principle holds that value is simply a function of the present worth of
future bene,ts.
a. Principle of substitution
b. Principle of contribution
c. Principle of anticipation
d. Principle of highest and best use
166. Public sector land valuation and ta%ation in the Philippines is the domain of
two =!> arms of the government# namely@
a. .epartment of udget and 7anagement and Cocal Aovernment Enits
b. Cand Registration Authority and ureau of 2nternal Revenue
c. #ocal )overnent ,nits and Bureau of !nternal Revenue
d. Cocal Aovernment Enits and Fational Ta% Research Center
161. Related to the property itself# this principle holds that value is achieved and
maintained when all elements are in proper proportion.
a. Principle of conformity
d. Principle of increasing and decreasing returns
16!. This economic principle holds that as time and mar&et conditions change# so
does supply and demand for real estate# and thus# the value of real estate.
a. Principle of change
b. Principle of substitution
c. Principle of anticipation
d. Principle of progression or regression
16'. This economic principle holds that a prudent purchaser would pay no more for
a home than it would cost him or her to build or buy another one.
a. Principle of conformity
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d. Principle of substitution
16(. A valuation review that includes inspection of the e%terior and sometimes the
interior of the sub;ect property and possibly inspection of the comparable properties
to con,rm the data provided in the report.
a. Technical review
b. .es& review
c. Administrative review
d. 'ield revie+
16). 2t is de,ned as that logical# legal# and most probable use which will yield the
greatest net income to the land over a sustained period of time.
a. 2nterim use
b. Actual use
c. 0ighest and best use
d. E%isting use
16-. An KKKKKKKKKKKKKK mar&et is one that is characteri9ed by goods or services that
are easily produced and readily transferable# with a large number of buyers and
sellers.
a. Active
b. Calm
c. 2ne"cient
d. E2cient
160. 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 do9en
b. Econoies of scale
c. Anticipation
d. 2ncreasing returns
161. The surplus productivity principle recogni9es the four agents of production#
which are
a. Cand# buildings# other land improvements and machinery
b. Plant# machinery# e$uipment and technology
c. #and% labor% capital and entrepreneurship
d. Cand# buildings# labor and capital
163. 2n any enterprise# labor must be paid ,rst# with capital paid after that#
entrepreneurship is then paid. The residual income is attributed to the land =including
buildings>. This concept is applies in what economic principle a4ecting valuesI
a. Economies of scale
b. Contribution
c. alance
d. Surplus productivity
116. This term means coordination or management.
a. Capital
b. Cabor
c. Entrepreneurship
d. Production
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111. This comparative approach considers the sales or o4ers of similar or
substitute properties and related mar&et data# and establishes a value estimate by
processes involving comparison.
b. 2ncome approach
c. Cost approach
d. .evelopment techni$ue
11!. The process of orchestrating land# labor# and capital to produce an item.
a. Conduction
b. Analysis
c. Entrepreneurship
d. Capitali9ation
11'. The forces that impact real estate values are the following@
a. Physical# economical# sociological and physiological
b. Population# income level# s&ill levels and social environ
c. Social% econoic% physical or environental and governental
d. Political# economical# governmental and physical
11(. These forces relate to trends in society or culture# and sometimes these forces
are imagined while at other times they are based on actual facts and ,gures.
a. Environmental
b. Aovernmental
c. Physical
d. Social
11). A * An KKKKKKKKKKKKKKKKKKKKKK is a group of complementary land uses.
a. Lone
b. Area
c. 3eighborhood
d. 7unicipality
11-. 2n the application of this techni$ue 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 techni4ue
b. Cand residual techni$ue
c. Property residual techni$ue
d. .evelopment techni$ue
110. The term used to describe the connecting of complementary uses to the
homogenous land uses =9one> is
a. linkage.
b. road networ&.
c. Passage.
d. right/of/way.
111. Feighborhoods and 9ones ali&e generally e%ist in one of four life cycle stages+
these are J
a. growth# stability# renovation# and rebirth
b. growth# decline# reconstruction# and revitali9ation
c. gro+th% stability% decline% and revitali*ation.
d. growth# stability# decline and rebuilding
Page 16 of
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113. These are assets that embody a cultural# historic# and* or architectural
heritage.
a. Agricultural properties
b. 0istoric properties
c. Trade related properties
d. Public sector assets
1!6. The initial stage in a neighborhood or 9one:s life cycle. This refers to the
period in which the neighborhood or 9one is e%panding and developing.
a. Revitali9ation
b. .ecline
c. Stability
d. )ro+th
1!1. 8hen a neighborhood can no longer compete with other comparable
neighborhoods# it usually enters the KKKKKKKKKKKKKKKKK stage of its life cycle.
a. Revitali9ation
b. "ecline
c. Stability
d. Arowth
1!!. The act of distinguishing or delineating mar&ets that the appraiser should
consider in his data program is called
a. mar&et segregation.
b. mar&et analysis.
c. arket segentation.
d. mar&et study.
1!'. 2n this type of mar&et# goods and services are not readily produced or easily
transferable# with no readily identi,ed group of buyers and sellers active in a
particular mar&etplace.
a. E"cient mar&et
b. !ne2cient arket
c. uyer:s mar&et
d. Seller:s mar&et
1!(. The study of a speci,c mar&et. 2t is the collection and dissection of data and
the conversion of that data to information that can be used for analysis and decision/
ma&ing by an appraiser or analyst.
a. 7ar&etability study
b. Beasibility study
c. Market analysis
d. 2nvestment analysis
1!). A rate of return used to convert a monetary sum# payable or receivable in the
future# into present value. Theoretically it should re<ect the opportunity cost of
capital# i.e.# the rate of return the capital can earn if put to other uses having similar
ris&.
a. 2nternal rate of return
b. "iscount rate
c. ?verall rate
d. 2nvestment rate
Page 1 of
36
1!-. The three types of mar&et analysis are@
a. Market study% arketability study and feasibility study
b. 7ar&et data approach# sales comparison approach and o4ers
c. 2nvestment analysis# economic base analysis# monetary analysis
d. Statistical study# mar&et study and demographics study
1!0. The analysis of an environment of buyers*sellers and*or landlords*tenants
=lessors*lessees>.
c. Market study
1!1. Type of mar&et analysis that addresses the time re$uired to absorb a
particular product# and the price or rent level at which that product would be
accepted into the mar&etplace.
a. Marketability study
c. 7ar&et study
1!3. A KKKKKKKKKKKK study is simply a comparison of cost versus the value if the
pro;ect is underta&en.
b. 'easibility study
c. 7ar&et study
1'6. A study underta&en for the purposes of development and investment# the
evaluation of investment performance# or the analysis of a transaction involving
investment properties.
a. Economic base study
b. 7ar&et study
c. Beasibility study
d. !nvestent analysis
1'1. A mortgage secured by a group of properties or a number of lots.
a. Blanket ortgage
b. Simple mortgage
c. Cein
d. 7echanic:s lien
1'!. 2f the contract rent and the mar&et rent are e$ual# the Ceasehold or Cessee:s
2nterest is KKKKKKKKKKKKKKK# assuming there is no leasehold improvement.
a. Positive lease
b. Fegative lease
c. 5ero
d. alanced
1''. This comparative approach to value involves the cost of ac$uiring e$uivalent
land and constructing an e$uivalent new structure.
b. Cost approach
c. 2ncome approach
Page 1! of
36
d. uilder:s method
1'(. 2n operating lease# the value of the Cessee:s 2nterest is estimated as the
present value
a. of rental payment for remaining life of the lease agreement
b. of rental gain or loss and the value of the leasehold iproveent% if
any
c. of rental payment plus reversion value of the property at the end of the lease
agreement
d. of rental gain or loss plus reversion value of the leasehold improvement# if any
1'). A KKKKKKKKKKKKKKKKKKKKK leasehold interest is created when the contract rent is
higher than the current mar&et rent.
a. Positive
b. E$ual
c. Lero
d. 3egative
1'-. A group of homogenous land uses.
a. "istrict
b. Feighborhood
c. City
d. 7unicipality
1'0. Typically a factor produced by two components# which re<ects precise
di4erences between properties and facilitates analysis in the three approaches to
value# e.g.# price per s$uare meter or s$uare foot# or the ratio of a property:s sale
price to its net income =net income multiplier*years: purchase>.
a. Comparable data
b. Elements of comparison
c. ,nits of coparison
d. Physical characteristics
1'1. The cost to create a virtual replica of the e%isting structure# employing the
same design and similar building materials.
a. Replacement cost# new
b. Enit/cost/in/place method
c. Guantity survey method
d. Reproduction cost% ne+
1'3. The current cost of a similar new item having the nearest e$uivalent utility as
the item being appraised.
a. Replaceent cost% ne+
b. Enit/cost/in/place method
d. Reproduction cost# new
1(6. An asset which has a similar function and e$uivalent productive capacity to
the asset being valued# but of a current design and constructed or made using
current materials and techni$ues.
a. Replacement asset
b. Reproduced asset
c. Modern e4uivalent asset
d. Public sector asset
Page 1" of
36
1(1. The process of ad;usting the replacement cost to re<ect that an asset may be
technically obsolete or over/engineered# or the asset may have a greater capacity
than that re$uired.
a. Reproduction cost# new
b. Capitali9ation
c. 5alue engineering
d. 6ptii*ation
1(!. A real estate mall developer purchases a site with the intent of building a
regional mall because the immediate area has a signi,cant number of households
and the income level of those households is aMuent. 8hat type of force is the
neighborhood going throughI
a. Social
b. Aovernmental
c. Economic
d. Environmental
1('. Speci,c characteristics of properties and transactions that cause the prices
paid for real estate to vary.
a. Comparable data
b. Enits of comparison
c. Eleents of coparison
d. Comparable sale prices
1((. 7ethod of estimating the reproduction cost or replacement cost that combines
the direct and indirect costs into a single unit/in/place amount# which when multiplied
by the unit measure of the improvement:s component will yield the cost of the
component.
a. ,nit.in.place
b. Comparative
c. Guantity survey
d. 2nde% or trending
1(). The cost of replacing an asset with an e$ually satisfactory substitute asset+
normally derived from the current ac$uisition cost of a similar asset# new or used# or
of an e$uivalent productive capacity or service potential.
a. Replaceent cost
b. Enit/cost/in place
c. Reproduction cost
d. uilder:s method
1(-. The Subic Breeport Lone is one of the largest developments in Central Cu9on.
8hat force does this representI
a. Social
b. Aovernmental
c. Econoic
d. Environmental
1(0. The process by which a least cost replacement option is determined for the
remaining service potential of an asset.
a. Reproduction cost# new
b. Capitali9ation
c. 5alue engineering
d. 6ptii*ation
Page 2# of
36
1(1. 7ethod of estimating the reproduction cost or replacement cost that involves
the ad;ustment of the original costs to current costs by a multiplier derived from
published cost inde%es.
a. Enit/in/place
b. Comparative
c. Guantity survey
d. !nde$ or trending
1(3. Type of lease which involves the transfer ownership from lessor to lessee.
a. ?perating lease
b. 'inancing lease
c. Ceased fee
d. Ceasehold fee
1)6. Cose in property value are caused by deterioration or obsolescence
a. "epreciation
b. .eferred maintenance
c. Cost to cure
d. Replacement cost
1)1. The di4erence between the cost to reproduce or replace a property and its
present value
a. Replacement cost
b. Cost to cure
c. "epreciation
d. Regression
1)!. 7a;or causes of depreciation are the following e%cept
a. "eferred aintenance
b. Physical deterioration
c. Bunctional obsolescence
d. E%ternal obsolescence
1)'. Refers to the wear and tear from regular use and the impact of the elements
a. Physical deterioration
b. Bunctional obsolescence
c. E%ternal obsolescence
d. Adverse mar&et condition
1)(. 7ethod of estimating reproduction or replacement costs by applying the
average or typical comparative cost =per s$uare/meter cost> of similar improvements.
a. Guantity survey method
b. Enit/in/place method
c. Coparative ethod
d. 2nde% or trending method
1)). This cost estimate envisions constructing a structure of comparable utility#
employing the design and materials that are currently used in the mar&et.
a. Reproduction cost
b. Replaceent cost
d. Enit/in/place method
1)-. The period of time over which improvements contribute to property value.
Page 21 of
36
a. Eseful life
b. Econoic life
c. Remaining life
d. Cifespan
1)0. Cose in value caused by a <aw in the structure# materials# or design that
diminishes the function# utility# and value of the improvement
a. 'unctional obsolescence
c. Physical deterioration
d. .eferred maintenance
1)1. The period of time over which the components of the improvement may
reasonably be e%pected to perform the functions for which they were designed.
a. Economic life
b. ,seful life
c. Remaining life
d. Esed life
1)3. The age indicated by the condition and utility of a structure
a. Esed life
b. Chronological life
c. E/ective age
d. Actual age
1-6. A method of estimating depreciation that involves the development of a
depreciation estimate by studying sales of comparable properties that have
depreciated to a similar degree as the improvement.
a. Cost to cure method
b. Component method
c. Market e$traction ethod
d. ?bserved condition method
1-1. A method of estimating depreciation whereby the appraiser estimates the
total economic life e%pectancy of the e%isting structure as well as its e4ective age#
based on an analysis of sales of similar structures
a. Age.life ethod
b. Component method
c. 7ar&et e%traction method
d. ?bserved condition method
1-!. The estimated period from the actual age of a component to the end of its
total useful life e%pectancy.
a. Remaining economic life
b. Reaining useful life
c. Actual age
d. E4ective age
1-'. An impairment of the utility or salability of an improvement or property due to
negative in<uences outside the property.
a. Bunctional obsolescence
b. Physical deterioration
c. Adverse mar&et condition
d. Econoic obsolescence
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36
1-(. Sometimes called historical age or chronological age# is the number of years
that have elapsed since building construction was completed.
a. E4ective age
b. Actual age
c. Remaining useful life
d. Remaining economic life
1-). A method of estimating the reproduction cost or replacement cost that
involves a complete cost itemi9ation of all direct and indirect cost to be incurred or
incurred in the construction of an improvement.
a. 2nde% method
b. Cost/in/place method
c. 7uantity survey ethod
d. Comparative method
1--. Primarily used to allocate a &nown amount of total depreciation# estimated by
either the mar&et e%traction method or the age/life method# into its components
a. Component method
b. 7ar&et e%traction method
c. Age/life method
d. Breakdo+n ethod
1-0. The process of retiring a mortgage or debt over a speci,ed time period.
a. .ebt service
b. 2nstallment
c. Aorti*ation
d. E$uity
1-1. Represents the money earned for the right to use capital.
a. E$uity
b. Amorti9ation
c. !nterest
d. Principal amount
1-3. Also &nown as debt service.
a. Amorti9ation
b. E$uity
c. 2nstallment
d. Payent
106. Credit regulation devices that the ang&o Sentral ng Pilipinas can use to
regulate the supply of money.
a. Cending rates and amorti9ation rates
b. Capitali9ation rates and mode of payments
c. "iscount rates and reserve re4uireents
d. Production of new bills and disposal of old bills
101. The government:s management of revenues =ta%es> and e%penses
=appropriations> is called
a. monetary policy
b. &scal policy
c. repayment policy
d. credit policy
Page 23 of
36
10!. The Philippines: ,scal policy is managed by the
a. ang&o Sentral ng Pilipinas
b. "epartent of 'inance
c. .epartment of udget and 7anagement
d. .epartment of Dustice

10'. The estimated amount for which a property# or space within a property# should
lease on the date of valuation between a willing lessor and a willing lessee on
appropriate lease terms in an arm:s/length transaction# after proper mar&eting
wherein the parties had each acted &nowledgeably# prudently# and without
compulsion
a. Contract rent
b. Market rent
c. Rental rate
d. Ceased fee
10(. Binancial vehicles with traditional maturities or investment periods of less than
one year.
a. Capital mar&ets
b. Cash deposits
c. Time deposits
d. Money arkets
10). 2n the income approach to value# reconstructed operating statements specify
that the income pro;ection is sub;ect to the assumption that the property is run by a *
an
a. e%pert competent management.
b. average copetent anageent.
c. ine"cient operator.
d. substandard management.
10-. Binancial vehicles with usual maturities of more than one year.
a. Capital arkets
b. Cash deposits
c. Time deposits
d. 7oney mar&ets
100. 2n this techni$ue the land value is estimated as the present value of the
residual income attributable to the land of an income producing property.
a. uilding residual techni$ue
b. .evelopment techni$ue
c. #and residual techni4ue
d. .iscounted cash <ow analysis
101. A loan for personal property and secured by personal property.
a. Real estate mortgage
b. Chattel ortgage
c. Ciens
d. lan&et mortgages
103. KKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKKK specify that the income pro;ection is
sub;ect to the assumption that the property is run by a reasonably e"cient operator
or average competent management.
Page 24 of
36
a. ?perating statements supplied by client
b. ?perating statements supplied by agent of client
c. 6perating stateents reconstructed by the appraiser
d. ?perating statements reconstructed by the internal auditor
116. The process of converting an income stream into value.
a. Capitali*ation
b. 2nvestment analysis
c. 7ar&et analysis
d. .epreciation
111. The resulting amount of reducing the annual potential gross income by a
vacancy allowance amount.
a. Aross pro,t
b. Fet operating income
c. E4ective net income
d. E/ective gross incoe
11!. ?perating e%penses are deducted from the e4ective gross income to
determine the
a. annual net operating incoe for the property.
b. annual net pro,t for the property.
c. annual gross pro,t for the property.
d. annual depreciation of the property.
11'. Process of converting income into value by dividing a single year:s stabili9ed
net operating income# by an all/ris&s rate.
a. Nield capitali9ation
b. .iscounted cash <ow analysis
c. "irect capitali*ation
d. 5aluation approach
11(. 2n the application of the discounted cash <ow analysis to operating real
properties# the value of the property is estimated as the net present value of
a. The series of periodic net operating incomes.
b. The reversion value# anticipated at the end of the pro;ection period.
c. -he series of periodic net operating incoes% along +ith an estiate
of the reversion value% anticipated at the end of the pro8ection
period.
d. The value of the business at the end of the pro;ection period.
11). Pro,t/ma&ing entities operating to provide consumers with products or
services.
a. Binancial interests
b. Real property
c. Public sector asset
d. Businesses
11-. A credit regulation device of the SP that refers to the percentage of deposits
that must be retained by ban&s.
a. .iscounted rates
b. Biscal policy
c. Credit regulation
d. Reserve re4uireent
Page 25 of
36
110. 2n the application of the discounted cash <ow analysis to development
properties# the value of the properties is estimated as the present value of the
a. -he series of net cash 1o+s that are discounted over the pro8ected
developent and arketing periods.
b. The series of periodic net operating incomes# along with an estimate of the
reversion value# anticipated at the end of the pro;ection period.
c. The series of dividends and the value of the business at the end of the
pro;ection period.
d. The series of periodic net operating incomes.
111. This capitali9ation process considers the time value of money# and is applied
to a series of net operating incomes for a period of years.
a. .irect capitali9ation
b. 9ield capitali*ation
c. .iscounted rate
d. 2nternal rate of return
113. The estimated period over which e%isting improvements are e%pected to
continue to contribute to property value
a. Remaining useful life
b. E4ective age
c. Actual age
d. Reaining econoic life
136. A method that is used to build a capitali9ation rate using ;ust two components+
,nancing and e$uity.
a. uild/up method
b. All ris&s method
c. Band of investent ethod
d. Aross income multiplier method
131. .e,nes the percentage number used to determine the current value of a
property based on estimated future operating income.
a. Absorption rate
b. Selling rate
c. uying rate
d. Capitali*ation rate
13!. Ac$uisition of private land by the government for public use could be
underta&en thru the following procedures# e%cept
a. Fegotiated sale or purchase
b. E%propriation
c. E%change or barter
d. 'oreclosure
13'. A KKKKKKKKKKKKKKKKK leasehold interest is created when the mar&et rent is
greater than the contract rent.
a. Fegative
b. E$ual
c. Lero
d. Positive
Page 26 of
36
13(. The rate that e$uates the present value of the net cash <ows of a pro;ect with
the present value of the capital investment.
a. "iscounting rate
b. ?verall rate
c. 2nternal rate of return
d. Recapture rate
13). This rate re<ects both the return on the invested capital and the return of the
original investment# which are basic considerations of potential investors.
a. .iscounting rate
b. ?verall rate
c. !nternal rate of return
d. Recapture rate
13-. The rent speci,ed by a given lease arrangement.
a. Economic rent
b. 7ar&et rent
c. Contract rent
d. Rental rate
130. The following are standard tests for highest and best of real property# e%cept
a. physically possible
b. politically perissible
c. ,nancially feasible
d. ma%imally productive
131. Applicable to real estate improvements# the rate warranted by prudent
investors that will represent the return on investment =usually the interest rate or
capitali9ation rate> and the return of investment# for improvements# this is
represented by the recapture rate.
a. .iscounting rate
b. 6verall rate
d. Recapture rate
133. 2nterest Rate O Recapture Rate e$uals
a. .iscounting rate
b. 6verall rate
d. Return on investment
!66. This government or public restriction to ownership provides that if a person
dies without a will and heirs# that person is said to have died intestate# and that
person:s property transfers to the state.
a. Eminent domain
b. Police power
c. Escheat
d. E%propriation
Page 2 of
36
PART 2: PROFESS$ONAL PRACT$CE
1. 2f a property:s net income ratio is 6.16# what is its operating e%pense ratioI
a. 6.6!
b. !.6
c. 6.16
d. :.;:
!. An o"ce building was recently sold for P-6#666#666. Aiven the following information@
Aross potential income @ P1!#666#666
5acancy factor @ 16P
E%penses @ ()P of e4ective gross income
Annual mortgage payment @ P(#)66#666
E$uity @ P1!#)66#666
8hat is the e$uity dividend rate or cash/on/cash rate of returnI
a. 0.(1P
b. 1!.66P
c. <<.=;>
d. 0.)6P
'. Bor the o"ce building above and the same information# what is the over/all rate of
return for the propertyI
a. 1.)1P
b. 1!.66P
c. 0.)6P
Page 2! of
36
d. ?.?:>
(. 2f the land value in a subdivision has increased by 1!P during the past year and the
average price of land sold last year was P 1#)-6#666# what is the average price of
land sold todayI
a. P 1#'0!#166
b. P 1#01-#666
c. P 1#)0!#)66
d. P <%@A@%;::
). A commercial property producing an annual gross income of P0-1#)66 was sold two
months ago for P)#-!6#666. 8hat is the property:s gross income multiplierI
a. 0.)6
b. 0.(6
c. @.B<
d. 1.)6
-. 8hat is the value of a property with a building value of P!#(66#666# a land
capitali9ation rate of 1.6P# building overall rate of 1(P and net operating income of
P)()#666I
a. P (#61!#666
b. P -#11!#)66
c. P (#3!1#666
d. P =%:<;%=::
0. To ad;ust the sale price of a comparable sale with a 16P better location# you should
a. Add 16P to the sale price of the comparable
b. 7ultiply the sale price of comparable by 16P
c. Subtract 16P from the price of the sub;ect of appraisal
d. Subtract <:> fro the sale price of the coparable
1. Sub;ect of appraisal is a (/bedroom house. ased on the following paired data
gathered# what would be estimated value of the sub;ect of appraisalI
7ar&et data@
'/bedroom house was recently sold for P -#())#666
!/bedroom house was recently sold for P -#!)6#666
a. P -#())#666
b. P -#-66#666
c. P C%CC:%:::
d. P -#--)#666

3. A residential house was constructed in !661 for P 1!#)-1#666. The cost inde%
published at that time was 101.!6. The current cost inde% from the same cost
reporting service is '-6.06. 8hat is the current indicated reproduction cost of the
residential houseI
a. P ;=%AB?%:::
b. P !)#'(3#666
c. P !)#1'-#666
d. P !)#'1-#666
16. 8hat is the indicated value of a -/year/old building with a <oor area of '-6 s$uare
meters# if the current cost of construction of similar buildings is P1)#666 per s$uare
Page 2" of
36
meter of the <oor area# and the estimated depreciation of the building is !P per
yearI
a. P 4,572,000
b. P A%@=;%:::
c. P )#(66#666
d. P )#0)!#666
11. A building has a rental income of P -6#-66 per month. Esing an annual gross rent
multiplier of 1)# the value of the building would be estimated at J
a. P 363#666
b. P 16#166#666
c. P 0!0#!66
d. P <:%?:D%:::
1!. The value of a property consisting of land and building with an annual net operating
income of P''6#666 and with an over/all capitali9ation rate of 1!.)6P is J
a. P ;%CA:%:::
b. P !#0)6#666
c. P !#(66#666
d. P !#)06#666
1'. 8hich of the following estimates would result in a capitali9ation rate of 1P /
a. Property value of P !#)66#666# potential gross income of P !66#666
b. Property value of P !#)66#666# e4ective gross income of P !66#666
c. Property value of P ;%=::%:::% net operating incoe of P ;::%:::
d. Property value of P (#666#666# net operating income of P '!6#166
1(. The property sub;ect of appraisal is 1)P superior than the sub;ect of a comparable
sale. The comparable was sold for P!#!1!#666# what is the indicated value of the
sub;ectI
a. P 1#116#!66
b. P 1#3!'#)66
c. P !#-6!#(66
d. P ;%=AB%D::
1). An o"ce building has depreciated by )6P since it was built !) years ago. 2f it would
cost P '3#!66#666 to build today# and if similar sites are for P !)#666#666# what is the
estimated mar&et value of the property todayI
a. P -(#!66#666
b. P (1#)!6#666
c. P AA%C::%:::
d. P )(#-66#666
1-. Assume the following@
Annual net operating income of the property @ P 1#166#666
Cand value @ P (#)66#666
2nterest rate @ 1P
Recapture rate @ (P
8hat is the property value by the building residual techni$ueI
a. P <:%CCC%CC@
b. P 11#---#--0
c. P 3#---#--0
d. P 1!#---#--0
Page 3# of
36
10. 7r. owns a parcel of land leased to 7r. C at an annual rental rate of P1#666#666.
The lease has a remaining life of - years. 8hat is the present value of the rentals if
the interest rate is 16P per yearI Present worth factor for annuity is (.'))!- and
lump sum is 6.)-((0.
a. P A%B==%;C:
b. P '#'1-#1!6
c. P 1#001#)0'
d. P 1#001#)-1
11. A building was constructed 16 years ago and is well/maintained that based on the
observation of the appraiser its condition is similar to other -/year/old buildings. The
e4ective age of the building is
a. 16 years
b. ( years
c. C years
d. 1- years
13. A building was constructed 16 years ago and is well/maintained that based on the
observation of the appraiser its condition is similar to other -/year/old buildings. The
actual age of the building is
a. <: years
b. ( years
c. - years
d. 1- years
!6. The reproduction cost new of a commercial building is estimated to be P16#666#666.
The building should have an economic life of )6 years# and it is now ,ve years old.
Qowever# based on the observation of the appraiser its e4ective age is similar to
other 16/year/old building due to poor maintenance. 8hat is its value of the building
=e%clusive of land value>I
a. P 0!#666#666
b. P CA%:::%:::
c. P 16#666#666
d. P 0)#666#666
!1. A 16/year/old building is currently valued at P0#!66#666. 8hat was its original value if
it has appreciated by -6P since it was builtI
a. P (#'!6#666
b. P !#116#666
c. P A%=::%:::
d. P )#1(!#366
!!. The appropriate ad;ustment for time is determined to be 1P per year. The time
ad;ustment for a comparable property that was sold a year ago for P16#666 per
s$uare meter is
a. Cess P 166 per s$uare meter
b. Plus P 1#666 per s$uare meter
c. Plus P D:: per s4uare eter
d. Cess P 1#666 per s$uare meter
!'. A lessee is renting a commercial space with a base rent of P0#666 per month plus )P
of the gross sales e%ceeding P166#666 per month. The lessee:s gross sales last year
was P1#-66#666. Qow much rent was paid last yearI
a. P 11(#666
b. P <:A%:::
Page 31 of
36
c. P 1(#666
d. P 11(#666
!(. A '6/year mortgage covering 0)P of property value can be obtained from a ban& for
1.)P. The mortgage constant is 6.63!. E$uity for this type of property re$uires 1!P
return.
a. 3.66P
b. ?.?:>
c. 16.66P
d. 16.)6P
!). 8hat would be recapture rate of a building having a remaining economic life of 1!
years J
a. 11!P
b. 11P
c. D.BB>
d. 1.66P
!-. 2n a property residual capitali9ation approach# what is the value of an improved
property with a net income of P116#666 a year# an interest rate of 1P and a
recapture rate of !PI
a. P<%D::%:::
b. P !#!)6#666
c. P '#666#666
d. P 1#)66#666
!0. A house and lot is priced at P0#)66#666. The lot alone is valued at P!#)'1#!)6. 8hat
is the percentage of the total as&ing price is attributed to the houseI
a. '' R P
b. '' S P
c. CC E >
d. -- R P
!1. A vacant lot is rented for a car display for P!(#666 per month. The interest rate
applicable to this type of property is 1P. Compute the value of the property by
income approach.
a. P!#(66#666
b. P!#-66#666
c. P!#166#666
d. PB%C::%:::
!3. 2f a particular buyer re$uires a recapture of the building portion of the price in '6
years# what is the indicated recapture rate of the buildingI
a. 'P
b. ' TP
c. B <FB>
d. ' SP
'6. 7r. A is leasing a -6/s$uare meter commercial space for P'#666 per s$uare meter per
year. Research indicate that similar space have a going mar&et rate of P'#!66 per
s$uare meter per year. 8hat is the rental gain reali9ed by 7r. A per yearI
a. P 1#!66
b. P 1!#666
Page 32 of
36
c. P ;%A::
d. P !(#666
'1. A house and lot is priced at P1#166#666. The lot alone is valued at P1#-)6#666. 8hat
percentage of the total as&ing price is attributable to the value of the lotI
a. 11.) P
b. 13.6 P
c. <D G >
d. 11 S P
'!. A property with an annual net income of P''-#666 was sold for P(#!66#666. The
remaining life of the building is (6 years. Cand value is P1#!66#666. 8hat is the
overall rate for the propertyI
a. -.66P
b. 0.66P
c. D.::>
d. 3.66P
''. A comparable land was sold a year ago for P'6#666 per s$uare meter. 2ts location is
considered 1)P inferior and its shape and topography is 16P superior to the sub;ect
site. The time ad;ustment is 'P per year. .etermine the ad;usted sale price of the
comparable site.
a. P !3#(66 per s$uare meter
b. P B;%A:: per s4uare eter
c. P '6#-66 per s$uare meter
d. P '1#(66 per s$uare meter
'(. A property with an annual net operating income of P''-#666 was sold for P(#!66#666.
The remaining life of the building is (6 years. Cand value is P1#!66#666. 8hat is the
value of the buildingI
a. P B%:::%:::
b. P !#666#666
c. P !#)66#666
d. P '#)66#666
'). A property was sold for P-6#666#666. Esing the rule/of/thumb of building/to/land ratio
of (@!# what is the value of the buildingI
a. P !6#666#666
b. P '6#666#666
c. P A:%:::%:::
d. P )6#666#666
'-. A 16/year old residential apartment has a reproduction cost of P-#!)6#666# bro&en
down into P !#)66#666 representing the structural component# and P '#0)6#666 for
the other component . Nearly allowance for ordinary structural deterioration is !P#
while the depreciation rate for the curable component is )P per year. Economic
obsolescence result in a rental loss of P-6#666 per year. 8hat is the estimated value
of the buildingI
a. P )#1)6#666
b. P '#10)#666
c. P B%;@=%:::
d. P '#00)#666
'0. A comparable property sold si% months ago for P1#!)6#666. 7ar&et investigation
indicates the following@
Page 33 of
36
Cocation ad;ustment @ O)P
Time ad;ustment @ O-P
Age ad;ustment @ /0P
Aiven the above information# what is the indicated value based on the comparable
propertyI
a. P1#!'!#!)6
b. P<%B::%:::
c. P1#'!)#666
d. P1#!3'#1-6
'1. 8hat is the reversion value of a property with an estimated mar&et value of
P1!#)(6#666 ! years from now at an interest rate of 16P per yearI
a. P 1)#6(1#666
b. P 1)#10'#(66
c. P <:%BCB%CB=
d. P 16#1)0#(66
'3. A comparable property is identical to the sub;ect property being appraised. The
comparable was sold si% months ago for P1#666#666. As the appraiser# you must
ma&e an ad;ustment for the time di4erence between the sub;ect property and the
comparable. Nou have found a paired sale of two houses# one of which was sold one
year ago for P166#666# and the other sold yesterday for P116#666. 8hat is the proper
estimated ad;usted sales price for your comparableI
a. P116#666
b. P1#666#666
c. P<%:=:%:::
d. P1#166#666
(6. 2f a property has a net income ratio of 6.0) and a gross income multiplier of 3# what
is the indicated over/all capitali9ation rateI
a. -.0)P
b. D.BB>
c. !.01P
d. 1!.66P
(1. Corporation T is to lease a parcel of land for 1 year at P!#666#666. Research indicate
that similar land have a mar&et rent of P!#!66#666 per year. 8hat is the estimated
value of the leasehold interest if the rental payment is to be paid as a lump sum
amount today and the interest rate is 16PI
a. P ;::%:::
b. P !!6#666
c. P 116#666
d. P 111#111
(!. A commercial structure is a rectangle with sides of 16 meters and 1() meters and
the current local cost to build a similar structure is P11#)66 per s$uare meter. 8hat is
the estimated construction cost of the structureI
a. P ;<A%C::%:::
b. P !61#166#666
c. P !11#-66#666
d. P !1)#-66#666
Guestions nos. (0 to (3 are based on the following information@
Page 34 of
36
uilding 5alue @ P)6#666#666
Fet ?perating 2ncome @ P1#')6#666
uilding Capitali9ation Rate @ 1(P
Cand Capitali9ation Rate @ 3P
('. 8hat is the residual income to the landI
a. P <%B=:%:::
b. P (#)66#666
c. P '#1)6#666
d. P 06#666#66
((. 8hat is the value of the landI
a. P (#)66#666
b. P<=%:::%:::
c. P 3#-(!#1)6
d. P (!#000#0)6
(). 8hat is the total value of the propertyI
a. P )(#)66#666
b. P C=%:::%:::
c. P )3#-(!#1)6
d. P 3!#000#0)6
Bor $uestions nos. (- to )6@
Sub;ect of appraisal is a house and lot and the comparables are as follows@
SEDECT .ATA 1 .ATA ! .ATA ' .ATA ( .ATA )
PR2CE III P1#()6#66
6
P1#'-6#66
6
P1#')6#66
6
P1#(16#66
6
P1#)'6#66
6
TNPE ?B .ATA SACE SACE SACE SACE ?BBER
C?CAT2?F A??. A??. A??. P??R A??. A??.
TNPE ?B
C?FSTRECT2?
F
C?FCRETE C?FCRETE T27ER C?FCRETE T27ER C?FCRETE
F?. ?B
E.R??7S
' ' ' ' ( '
(-. 8hat is the ad;ustment for type of data J sale vs. o4erI
a. P 1!6#666
b. P D:%:::
c. P 106#666
d. P 116#666
(0. 8hat is the ad;ustment for locationI
a. P <::%:::
b. P 16#666
Page 35 of
36
c. P -6#666
d. P 116#666
(1. 8hat is the ad;ustment for type of constructionI
a. P 116#666
b. P 1!6#666
c. P -6#666
d. P ?:%:::
(3. 8hat is the ad;ustment for no. of bedroomsI
a. P =:%:::
b. P -6#666
c. P 1!6#666
d. P (6#666
)6. 8hat is the estimated value of the property assuming the data have e$ual
importanceI
a. P 1#()1#666
b. P <%A=<%<::
c. P 1#()!#'66
d. P 1#()6#666
/// F?TQ2FA B?CC?8S ////
Page 36 of
36

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