REVIEW QUESTIONS ON MODULE 5

1. Zonal value is the basis of computing:

a. Capital Gains Tax
b. Documentary Stamp Tax
c. Estate tax of Donors Tax Due
d. All of the above

2. BIRs assigned zonal value shall apply to:

a. Land
b. Condominiums
c. Townhouses covered by CCT
d. All of the above

3. Zonal value applies on all internal revenue taxes due on sales, exchange or other
dispositions of real properties provided that the zonal value is higher than:
a. The fair market value as shown in the tax declaration
b. The gross selling price/consideration as shown in the duly notarized document
of sale or exchange of real properties
c. A only
d. A & B

4. Under Department Order No. 35-04 who creates the committees that attend to the
establishment or revision of zonal values in a particular area:
a. BIR
b. Department of Finance
c. Department of Justice
d. Assessors, Treasurers and Municipal or City Planning and Devt Office

5. How many committees are created under Department Order 35-04?

a. 4
b. 2
c. 3
d. 5

6. What are the composition of Sub Technical Committee on Real Property Valuation
(STCRPV)?
a. Revenue District Officer and Municipal/City/Provincial Assessors
b. Local Development Officer (from Mayors Office) & 2 licensed and competent
appraisers from a reputable association or organization of realty appraisers
c. A only
d. A & B

7. Which committee are the 2 licensed private appraisers member of?

a. STCRPV - Sub-Technical Committee on Real Property Valuation
b. TCRPV - Technical Committee on Real Property Valuation
c. ECRPV - Executive Committee on Real Proper Valuation
d. All of the above

8. Among the committees, whose function is to study, prepare and conduct the public
hearing on the proposed Schedule of Zonal Values of real properties within the
jurisdiction of the Revenue District Office
a. ECRPV
b. TCRPV
c. STCRPV
d. All of the above
9. How are the final recommended value established?
a. Average of the 2 lowest value submitted by BIR, Assessors Office and 2
licensed appraisers
b. Average of the 3 submitted values by BIR, Assessors Office and 2 licensed
appraisers
c. Average of the 2 highest values submitted by BIR, Assessors Office and 2
licensed appraisers
d. None of the above

10. What are the basis of the recommended zonal value in a particular area?
a. Acceptable methods of appraisal of real properties
b. Consummated or actual sales appearing in documents filed in government
offices such as ROD, BIR, LRC
c. Private records or listings of banks, realtors, agents, salespersons and
appraisers
d. Records from Assessors office
e. All of the above

11. How many days from the date of public hearing, are given to property
owners/taxpayers who have objections, protests, issues and concerns on the
recommended zonal value established by STCRPV?
a. 30 days
b. 20 days
c. 15 days
d. 10 days

12. Who acts as the Chairman of ECRPV?

a. Secretary of Department of Finance
b. BIR Commissioner
c. Revenue District Officer
d. Register of Deeds

13. The Real Property Taxation System in the Philippines wherein Provincial and
Municipal Board of Assessors Office were created, started during:
a. Spanish Regime called encomiendas
b. American Regime
c. Japanese Regime
d. Chinese Regime

14. Republic Act 7160 is also known as:

a. Local Government Code of 1991
b. An Act Revising and Compiling Assessment Laws
c. Bureau of Local Government Finance
d. Non of the above

16. It is a levy on real property determined on the basis of fixed proportion of the value
of the property:
a. Ad Valorem Tax
b. Capital Gains Tax
c. Assessment Level
d. Documentary stamp tax

17. It is the percentage applied to the market value to determine the taxable value of
the property:
a. Ad Valorem Tax
b. Capital Gains Tax
c. Assessment Level
d. Documentary stamp tax
18. It is the taxable value or the market value of the property multiplied by the
assessment level:
a. Assessed value
b. Assessment
c. Assessment level
d. Market value in Tax Declaration

19. It refers to a document accompanied by maps and all the taxable improvements on
such lands, a current and fair market value, and assessment level to be able to arrive at
an assessed value for each land and each improvement.
a. Tax mapping system
b. Comprehensive Land Use Plan
c. Highest and best Use Study
d. Assessed Value

20. It refers to the act or process of changing the current use of a piece of agricultural
land into some other uses as approved by Department of Agrarian Reform.
a. Land Use Conversion
b. Reclassification of Land
c. Land Use
d. Highest and Best Use

21. Refer to all lands, buildings and other improvements thereon actually, directly and
exclusively used for hospitals, cultural or scientific purposes and those owned and used
by local water districts, and government owned and controlled corporations rendering
special public services in the supply and distribution of water and generation and
transmission of electric power.
a. Special purpose properties
b. Special Classes of Real Property
c. Special Economic zones
d. None of the above

22. It is the process of valuing a group of properties as of a given date using standard
methodology, employing common data and allowing for statistical testing.
a. Subdivision appraisal
b. Mass appraisal
c. Group appraisal
d. None of the above

23. This refers to the act of specifying how agricultural lands shall be utilized for non-
agricultural uses such as a residential, commercial or industrial as embodied in the land
use plan, subject to the requirements and procedures for land use conversion. It also
includes the reversion of non-agricultural lands to agricultural use.
a. Agricultural Land Conversion
b. Highest and Best use of Agricultural Lands
c. Reclassification of agricultural lands
d. Reassessment

24. It refers to housing programs undertaken either by the government of private sector
for the underprivileged and homeless in accordance with R.A. 7279
a. Socialized Housing
b. Mass Housing
c. Either A or B
d. None of the above

25. It is also known as Property Identification Map

a. GIS
b. Vicinity Map
 c. Compound Layout
d. Tax Map

26. The Assessors Office is an agency where we inquire and conduct research on
a. TCT/CCT
b. Investment Value
c. Zonal Value
d. Tax Declaration, Cadastral Map and Tax Map

27. The schedule of market value for ad valorem tax in municipalities outside Metro
Manila is prepared by:
a. Municipal Assessor
b. Provincial Assessor
c. Sangguniang Panlalawigan
d. Provincial Treasurer

28. The value placed on taxable property by the assessor for ad valorem purposes is
a. Appraised Value
b. Economic Value
c. Fair Market Value
d. Assessment Value

29. The schedule of market value in the different municipalities is prepared by:
a. BIR
b. Concerned municipal assessor
c. Sangguniang Bayan through an ordinance
d. Register of Deeds

30. The zonal value of a property can be obtained from

a. Assessors Office
b. Bureau of Internal Revenue
c. Internet
d. Land Registration Administration

31. In case of disagreement with the valuation of the City Assessor on the market value
of the property, the owner may appeal the same to the Local Board Assessment Appeals
within how many days from receipt of the notice of assessment.
a. 60 days
b. 45 days
c. 30 days
d. 120 days

32. Under Republic Act No. 7160, the Provincial, City and Municipal Assessors are
mandated with the ff functions except:
a. To assess properties with back taxes for collection purpose
b. Collect taxes from taxpayers
c. To recommend amendment of the Schedule of Fair Market Value to the
Sanggunian, if need be
d. To declare properties if owners fail to do it within the prescribed time

33. The Assessor is mandated to make General Revision of Assessments and Propety
Reclassification every:
a. 5 years
b. 10 years
c. 3 years
d. 4 years
34. This refers to the ratio of a buildings total floor area to the size of the piece of land
upon which it is built. It can also refer to limits imposed on such a ration.
a. Floor area ratio (FAR)
b. Floor space ratio (FSR)
c. Floor space index (FSI)
d. Site ratio/plot ratio
e. Any of the above

35. The formula for FAR is:

a. Floor area ratio = (total covered area on all floors of all buildings on a certain
lot)/(area of the lot)
b. FAR = Lot area/ Gross floor area
c. FAR = Lot area X 2
d. None of the above

36. A dual agency in the negotiation of a sale of real property is lawful if:
a. Both brokers agree
b. The broker of the seller agrees
c. Both buyer and seller agree
d. The escrow agent agrees

37. The sidewalks in a condominium are:

a. Made at least 4 feet wide
b. Tarmac
c. Common areas
d. All of the above

38. Percolation test refers to:

a. Water wells
b. Soil analysis
c. Sewage
d. Flood control

39. In doing a feasibility study for residential development, taking into consideration
national economic conditions, all of the following items would be necessary except:
a. Analysis of economic basis
b. Target markets
c. Specific data related to the proposed project
d. Local zoning codes

40. Which of the following will have an impact on the real estate market in years to
come?
a. Land use regulation
b. Consumerism
c. The real estate industry
d. All of the above

41. What does ad valorem mean?

a. According to value
b. For life
c. At will
d. To the use and benefit

42. A lessor leased a property to a lessee for a 5-year period. The lessor died. The lessee
found out that the lessor had only a life estate in the property. The new owner wanted
to cancel the lease:
a. The lease expired at the death of the lessor
b. The lease was valid because it did not have clauses allowing for the sale of the
 property.
c. The lease was valid for the entire length of the original lease.
d. The new owner of the property must renew the lease.

43. An estate in real property consisting of an undivided interest in common in a portion

of a parcel of real property, together with a separate interest in space could be:
a. Residential
b. Commercial
c. Industrial
d. Any of the above

44. A residential property is reassessed:

a. When the government needs the money
b. When the property is destroyed by fire and then reconstructed
c. Every time the property is sold
d. Every 3 years.

45. What is the difference between real property tax and assessment bonds?
a. Special assessments are levied by special improvement districts only
b. Assessments have superiority over property taxes
c. Special assessments are used for local improvements
d. Assessments are subordinate to real estate taxes

46. What type of organization is formed in order to create a Real Estate Investment
Trust (REIT)?
a. Corporation
b. Limited Partnership
c. General Partnership
d. Syndication

47. An attorney-in-fact is:

a. An attorney or executor of an estate
b. A principal in a transaction
c. A legally competent person acting on behalf of another
d. All of the above

48. In order for a contract for the transfer of real property to be binding on the buyer
and seller, it must:
a. Be recorded
b. Have an offer and acceptance
c. Be acknowledged
d. Satisfy all of the above

49. A contract signed under duress would be:

a. Void
b. Unenforceable
c. Voidable
d. Illegal

50. Why is legal description recommended in a sales contract?

a. To help cooperating salespersons to find the property
b. The lender requests it
c. The seller may have other properties in the area
d. For the title company to locate the property.