Basic Appraisal1.Which of the following definitions is appropriate for the term real estate?

A.Land and anything permanently attached to the land

B.Property that is not encumbered by leases

C.Building and other improvements

D.Building and Fixture

2.Police power includes all of the following except.

A.Zoning

B.Deed restrictions

C.Building codes

D.Subdivision regulation

3.Which of the following best defines real estate?

A.Land and the air above it

B.Land and buildings permanently affixed to it

C.Land and all things permanently affixed to it

D.Land and the mineral rights in the land

4.The bundle of legal rights is included in.

A.Land

B.Real estate

C.Real property

D.Trade fixtures

5.All of the following would be considered real estate except.

A.Fences

B.Buildings

C.Growing trees

D.Farm equipment

6.Which of the following is not an economic characteristic of real estate?

A.Indestructibility

B.improvements

C.Area reference

D.Scarcity

7.Which of the following best defines real estate?

A.Land and the air above it

B.Land and buildings permanently affixed to it

C.Land and all things permanently affixed to it

D.Land and the mineral rights in the land

8.Real property can be converted into personal property through?

A.Severance

B.Accession

C.Conversion

D.Inference

9.The term non-homogeneity refers to?

A.Scarcity

B.Immobility

C.Uniqueness

D.Indestructibility

10.The bundle of right includes all of the following except?

A.The right to exclude someone from the property

B.The right to enjoy property within the framework of law

C.The right to sell or otherwise convey the property

D.The Right to use the property for any purpose, legal or otherwise

11.Which of the following is not an example of special purpose real estate?

A.A private school

B.A public school

C.Shopping center

D.A house and lot

12.Which of the following are the limitations to property ownership?

A.Police power, eminent domain, taxation and escheat

B.Scarcity, improvements, and area preferencescarcity, improvements, and area preference

C.Right to enjoy, possess, exclude others, right to dispose

D.Interest , benefits, amenities

13.Can personal property be converted into real property through what process?

A.Severance

B.Accession

C.Conversion

D.Annexation

14.Real estate refers to the following?

A.Land and improvements whether natural or man made

B.Land, improvements, rights, benefits, interest

C.Land and buildings and inherent rights of ownership

D.Trees, fence, road, drainage system

15.What are the 2 classifications of properties as to ownership under the Civil Code?

A.Public domain and private ownership

B.Movable or personal

C.Immovable or real property

D.Within the commerce of man and outside the commerce

16.What are the 2 classifications of properties according to mobility and non mobility?

A.Movable or personal and immovable or real property

B.Public domain and private ownership

C.Present property and future property

D.Within the commerce of man and outside the commerce of man

17.What are the classifications of properties according to use?

A.Residential, industrial, commercial, agricultural, special

B.Public domain and private ownership

C.Present property and future property

D.Agricultural, forest park or timber, mineral and Parks

18.Which of the following represents the economic characteristics of real estate?

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

19.Any person directly engaged as principal in the business of buying or selling is?

A.Real estate broker

B.Real estate dealer

C.Dealer

D.Real estate developer

20.Refers to any natural or juridical person engage in the business of developing real estate development projects for his/her or own account and offering them for sale or lease is called?

A.Real estate dealer

B.Real estate dealer

C.Real estate project developer

D.Real estate developer

21.Under RA 9646, what constitute the real estate service practitioners?

A.Real estate salesman, broker, appraiser and consultant

B.Real estate salesman, real estate developer, dealer

C.Real estate developer, real estate dealer, salesman

D.Real estate developer, realtor, real estate consultant

22.The two major characteristics of real estate that affects its value?

A.Economic and physical characteristics

B.Political and environmental

C.Natural or physical

D.Economic and environmental

23.Which of the following is not an economic characteristic of real estate?

A.Improvements

B.Permanence of investment

C.Land is unique

D.Scarcity

24.Which of the following is not a physical characteristic of real estate?

A.Scarcity

B.Land is immobile

C.Land is indestructible

D.Land is unique

25.The geographical location of a parcel of land can never be change is referred to as?

A.Immobility

B.Indestructibility

C.Uniqueness

D.Permanence

26.This definition that land is thought of as a rare commodity, and the total supply is fixed is?

A.Scarcity

B.Improvements

C.Permanence of investment

D.Land is unique

27.An economic characteristic of real estate which says the building or improvement on one parcel of land has an effect on the value and utilization of neighboring tract and can be a direct bearing on the whole community or neighborhood is?

A.Land is unique

B.Improvements

C.Permanence of investment

D.Scarcity

28.The most important economic characteristics of real estate is referred to as?

A.Area preference or "situs"

B.Improvements

C.Permanence of investment

D.Land is unique

29.No two parcels of land are ever exactly the same is referred to as?

A.Land is unique

B.Land is permanent

C.Land is immobile

D.Land is scars

30.Which of the word is defined as the earth's surface extending downward to the center of the earth and upward to infinity?

A.Land

B.Real estate

C.Real property

D.Realty

31.Which of the word is defined as land at, above and below the earth's surface, including all things permanently attached to it, whether natural or artificial is?

A.Realty

B.Real estate

C.Land

D.Real property

32.The word being referred to as the interest, benefits and rights inherent to the ownership of real estate is?

A.Land

B.Real estate

C.Real property

D.Land and improvements

33.Which of the following are the 2 concepts of real estate that a registered licensee or broker should know and understand?

A.Legal concept of real estate and bundle of rights

B.Legal aspect of ownership and inherent rights of ownership

C.Bundle of rights theory and economic characteristics

D.Fee simple and bundle of rights theory

34.The Bundle of rights is defined as?

A.The rights inherent to property ownership such as the right to enjoy, right to possess, right to dispose, right to recover right to the fruits and the right to exclude others

B.The bundle of sticks representing rights of ownership

C.The rights, benefits, and interest representing ownership

D.The benefits, amenities, facilities, utilities we enjoy as owners

35.Under the bundle of rights concept, which right includes the right to sell, donate, will, pledge or mortgage?

A."Jus vindicandi" or the right to recover

B."Jus Utendi" or the right to use

C."Jus possidendi" or the right to posses

D."Jus fruendi" or the right to the fruits

36.Which of the rights includes the 3 kinds of fruits, such as natural fruits, industrial fruits and civil fruits?

A."Jus vindicandi" or the right to recover

B."Jus Utendi" or the right to use

C."Jus fruendi" or The right to the fruits

D."Jus possidendi" or the right to posses

37.The rights of ownership are limited by 4 powers of government namely?

A.Police power, eminent domain, taxation and escheat

B.Taxation, just compensation, condemnation, escheat

C.Eminent domain, expropriation, taxation and confiscation

D.Expropriation, taxation, escheat and police power

38.The word referred to as the absolute right of ownership without limitations as to any particular class of heirs or restrictions but subject to the limitations of the four (4) powers of government is?

A.Rights in fee simple

B.Policed power

C.Eminent domain

D.Absolute right

39.Zoning rules and regulations or ordinances, traffic regulations, fire codes, and other safety laws are examples of what right of government on real estate ownership?

A.Taxation

B.Police power

C.Eminent domain

D.Escheat

40.The right reserved by government to take private property for public use beneficial to the public upon payment of just compensation?

A.Power of eminent domain

B.Escheat

C.Police power

D.Taxation

41.The word referred to as the absolute right of ownership without limitations as to any particular class of heirs or restrictions but subject to the limitations of the 4 powers of government is?

A.Rights in Fee simple

B.Policed power

C.Eminent domain

D.Absolute right

42.Which right of government is imposed on real estate ownership for the purpose of raising funds for its operations and services that otherwise protect and benefit the citizenry?

A.Rights in Fee simple

B.Policed power

C.Eminent domain

D.Taxation

43.The 4 ordinary classification of real estate according to use and normally referred to in the ordinary course of buying and selling are?

A.Residential, industrial, commercial, agricultural and special purpose

B.Residential, condominium, townhouse, memorial park

C.Real property, real estate, personal property, agricultural land

D.Realty, personal property, mineral, forest land

44.Which of the following are the 4 property types based on the International Valuation Council (IVSC)?

A.Real property, personal property, business and financial interest

B.Residential, commercial, industrial, agricultural

C.Agricultural, timberland, mineral, residential

D.Public domain, private ownership, present property, immovable

45.Which of the following are the constitutional classifications of real property provided for in ART.XII Section 3 of the constitution?

A.Residential, commercial, industrial, agricultural

B.Agricultural, timberland, mineral, residential

C.Real property, personal property, business and financial interest

D.Agricultural, forest/or timber, mineral and national parks

46.Which of the following are the 2 classifications of real property according to existence provided for in Civil Code of the Philippines?

A.Movable or personal and immovable or real property

B.Public domain and private ownership

C.Real property and personal property

D.Present property and future property

47.Which of the following are the constitutional classifications of real property provided for in ART.XII Section 3 of the constitution?

A.Residential, commercial, industrial, agricultural

B.Agricultural, timberland, mineral, residential

C.Real property, personal property, business and financial interest

D.Agricultural, forest/or timber, mineral and national parks

48.RDL is renting a single-family home under a one year lease. Two months into the lease he installs a window type air-condition placed in the opening provided for on one side of the building. Which of the following is true?

A.RDL cannot take out the or bring the unit with him after the lease

B.RDL can take the unit because by its nature it is a personal thing

C.Air condition units are permanent improvements of a building

D.Because of the nature of the property, the air condition is considereda trade fixture

49.All of the following would be consideration for an item being real property except?

A.The cost of an item when it was bought or purchased

B.The method of its attachment to other real property

C.The intended use of the item by its owner

D.The manner in which the item is actually used with other real property

50.Which of the following makes use of a rate of investment return?

A.The Sales comparison Approach or Direct Market Comparison

B.Cost approach

C.Income capitalization approach

D.Gross income multiplier method

51.The elements of value include which of the following?

A.Anticipation

B.Balance

C.Competition

D.Scarcity

52.The principle of value that states that two adjacent parcels of land combined into one larger parcel could have a greater value than the two parcels valued separately is called?

A.Substitution

B.Plottage

C.Regression

D.Progression

53.The amount of money a property commands in the market place is

A.Intrinsic value

B.Market value

C.Capitalization rate

D.A gross income multiplier

54.RDL had his "dream house" constructed for P6,000,000 in an area where most newly constructed houses are not as well equipped as his and typically sell for onlyP2,000,000. The value of RDL house is likely to be affected by the principle of?

A.Progression

B.Assemblage

C.Change

D.Regression

55.In question No. 54 the owners of the lesser- valued houses in RDL immediate area may be affected by the principle of?

A.Progression

B.Increasing return

C.Competition

D.Regression

56.Accrued depreciation for appraisal purpose is not caused by which of the following?

A.Functional obsolescence

B.Physical deterioration

C.External obsolescence

D.Accelerated depreciation

57.Reconciliation refers to which of the following?

A.Loss of value due to any cause

B.Separating the value of the land from the total value of property

C.The process by which an appraiser determines highest & best use

D.Analyzing the results obtained by the 3 approaches todetermine the final estimate of value

58.One method an appraiser can use to determine a building reproduction cost involves the estimated cost of the raw materials needed to build the structure, plus labor and indirect cost. This is called the:

A.Square foot method

B.Quantity survey method

C.Cubic foot method

D.Unit-in place method

59.If a properties annual net income is P24,000 and it is valued at P300,000. What is its capitalization rate?

A.12.5 Percent

B.10.5 percent

C.15 percent

D.8 percent

60.Certain figures must be determined by an appraiser before value can be computed by the income capitalization approach. Which of the following is not required for this process?

A.Annual net operating income

B.Capitalization rate

C.Accrued depreciation

D.Annual gross income

61.The income capitalization approach would be given the most weight in the valuation of what type of property?

A.Single family dwelling

B.Industrial property

C.Strip shopping center

D.School

62.The market value of a parcel of real estate is:

A.An estimate of its future benefit

B.The amount of money paid for the property

C.An estimate of the most probable price it should bring

D.Its value without improvement

63.Capitalization is the process by which annual net operating income is used to

A.Determine cost

B.Estimate value

C.Establish depreciation

D.Determine potential tax value

64.From the reproduction or replacement cost of a building the appraiser deducts depreciation, which represents:

A.The remaining economic life of the building

B.Remodeling cost to increase rental

C.Loss of value due to any cause

D.Cost to modernize the building

65.In the Sales Comparison Approach or Direct Market Comparison Approach to value the probable sales price of a building may be estimated by:

A.Capitalizing net operating income

B.Considering sales of similar properties

C.Deducting accrued depreciation

D.Determining construction cost

66.Which of the following factor are important in comparing properties under the Sales Comparison Approach or Direct Market Comparison Approach to value?

A.Difference in dates of sale

B.Difference in financing

C.Difference in appearance and condition

D.Difference in original cost

67.In the income capitalization approach to value:

A.The reproduction or replacement cost of the building is computed

B.The capitalization rate must be estimated

C.Depreciation must be determined

D.Sales of similar properties must be considered

68.The appraised value of a residence with four bedrooms and one bedroom would probably be reduced because of:

A.External obsolescence

B.Functional obsolescence

C.Physical deterioration-curable

D.Physical deterioration-incurable

69.A factor representing the percentage increase in construction cost over time is used in the:

A.Square foot method

B.Quantity survey method

C.Unit-in-place method

D.Index method

70.Demand has no effect on value unless there is also:

A.A need

B.Purchasing power

C.A scarcity

D.An adequate supply

71.Depth tables would most likely be used in appraising what kind of property?

A.Residential

B.Industrial

C.Commercial

D.Agricultural

72.Which of the following is a physical factor affecting value?

A.Community standards

B.Price levels

C.Lot size

D.Population growth

73.The fact that individual properties, neighborhood and others are constantly changing is called the principle of?

A.Change

B.Competition

C.Conformation

D.Coagulation

74.When a commodity is scarce and the demand is high, its value increases. This is called the principle of?

A.Anticipation

B.Conformity

C.Competition

D.Supply and Demand

75.The term plottage is closely associated with:

A.Residential value

B.Conformity

C.Capitalization

D.Assemblage

76.The appraisal report may be in a:

A.Letter form, short form, or oral form

B.Letter form, short form, or narrative form

C.Letter form, perfect form, or oral form

D.Letter form, long form, or narrative form

77.The methods of appraising includes the :

A.Cost approach

B.Evaluation approach

C.Gross divider approach

D.Reconciliation approach

78.The narrative form of appraisal report will include all of the following except:

A.The educational qualification of the appraiser/valuer

B.The data used with an analysis of them

C.The financial terms

D.A description of the property

79.Which of the following is the least important in determining the market value of a home?

A.Size of the lot

B.Original cost

C.Quality of construction

D.Location

80.Reconciliation, one of the last steps in the appraisal/valuation process, is:

A.Averaging the three approaches

B.Correlating

C.Establishing the median value

D.Discounting the value to a single family residence

81.The term Highest and Best Use refers to:

A.The use most beneficial to the community

B.The greatest value of improvement

C.The use that results to the greatest net return

D.The description of the property

82.In appraising a home, which method is used most frequently?

A.The cost approach

B.The sales comparison /direct market comparison approach

C.The income approach

D.The gross monthly multiplier

83.The Cost Approach results in the most accurate appraisal of:

A.An old building

B.A single family residence

C.A new building

D.Vacant lot

84.Which is not a characteristic of a Capitalization Rate?

A.The greater the risk, the greater the cap rate

B.The lower the risk, the higher the cap rate

C.The lower the cap rate, the higher the value

D.The higher the cap rate, the lower the value

85.Land is unique because:

A.No two parcels have the same soil composition

B.No Two parcels can occupy the same space on the face of the earth

C.No two parcels have the same tax levies

D.No two parcels have the same owners

86.Appraisal are always used :

A.To settle divorces

B.To settle lawsuit

C.To make residential mortgages

D.To solve problems that involve real estate valuation

87.An Appraiser/Valuer.

A.Measures and develops an opinion of value

B.Measures price

C.Determines market value

D.Determine price

88.You are a licensed APPRAISER who has been asked to help sell a small family farm. The client specifically needs help with a marketing plan, deciding what improvements should be made to the property, and how to handle an offer when one comes in. If you accept this assignment, you are:

A.Acting as an appraiser

B.Acting as a consultant, not an appraiser

C.Violating the code of ethics for appraiser

D.Not competent to perform the assignment

89.Value is a word of many meanings, but the general meaning is?

A.Any price something is sold for

B.Worth of something to someone for some purpose

C.The future worth of an object

D.The present worth of future benefits

90.To qualify for the appraiser's licensing examination, the examinees should posses the following

A.Bachelors degree holder

B.Five years experience in appraisal work/as licensed broker

C.Five years experience as real estate consultant

D.Educated, competent, has experience and possesses A & B

91.The right of the government to acquire property of a decedent who died without a will and without heirs is referred to as what?

A.Eminent domain

B.Escheat

C.Police power

D.Taxation

92.In regard to Zoning, which of the following statement is CORRECT?

A.Zoning ordinance are always restrictive than deed of restrictions

B.Nonconforming use and variance refer to the same thing

C.Zoning normally establish land use district and provides restrictions

D.Exclusionary zoning and spot zoning refer to the same thing

93.Land value can be estimated using the following techniques except?

A.The cost approach

B.The abstraction and allocation method

C.The income approach

D.The sales comparison or direct market comparison approach

94.The date of the value opinion is:

A.The date the appraiser was on site

B.The Date the appraiser was on the site (i.e. inspection date)

C.The date stipulated by the client

D.The date the appraiser received the order or assignment

95.The valuation process defining the value estimated is included in the:

A.Definition of problem

B.Highest and best use

C.Land value opinion

D.Preliminary analysis and data collection and selection

96.The valuation technique in which land and building are valued separately is:

A.The Cost Approach

B.The sales comparison approach

C.The income approach

D.The replacement cost

97.Which of the following is Highest and Best Use

A.Legal permissibility

B.Maximum size of improvement

C.Physical possibility

D.Financial feasibility

98.Adjustments are made:

A.To the comparables to make them like the market

B.The subject to make it like the market

C.To the comparables to make it like the comparables

D.To the comparables to make them like the subject appraised

99.What law governs the realty service practice in the Philippines?

A.Republic Act No. 8975

B.Republic Act No. 4996

C.Republic Act No. 9646

D.Republic Act No. 9966