2000 To 08 EXAM Appraisal 52 Pages Ok To W Ans

COMPILATION OF PAST APPRAISERS EXAM With CES Annotation
Compiled by : CES Real Estate Academy To minimize review time and cost
1. The added value inherent in the combined common ownership of two or more contiguous lots.
a. Corner influence c. Cooperative interest

b. Plottage value d. Joint venture
• The value of ONE is more than the SUM of the parts. This is most applicable to commercial
lots – the bigger the better – more UTILITY more VALUE.
2. The rate in percent which is the sum of the interest rate and recapture rate for building
a. Over all rate c. Split rate

b. Capitalization rate d. Interest rate
• Formula : OAR = Interest Rate + Recapture Rate

• Recapture rate = 100% / Remaining Economic Life
• Recapture rate = 100% / Economic Life less Effective Age
3. The method of construction cost or reproduction cost estimation:
a. Volume method c. Quantity survey method

b. Floor area method d. All of the above
• The floor are method is the MOST commonly used method by appraisers – EASIEST
• Replacement Cost = Floor Area x Cost per SQM.
• Quantity Survey Method – the BEST but the HARDEST.
4. There is an important technical difference between the terms reproduction cost and replacement cost.
Replacement cost refers to:
a. The cost of constructing an exact replica building

b. The cost of constructing a building that would have similar utility to the subject property
c. The cost of reproducing the subject building
d. None of the above
5. In eminent domain cases, the courts have determined “just compensation” to mean:
a. The fair market value of the property

b. Current market value plus compensation for anticipated future benefits
c. The market value plus compensation for anticipated future benefits
d. All of the above
• Eminent Domain is the right of the government to take private property for public use but
with just compensation. Expropriation is the process of taking.
• For the lot, the OFFERED AMOUNT by the government is BIR zonal value.
6. There is a theory that all structures have a total useful life that can be predicted. The method estimating
accrued depreciation based on this theory.
a. The capitalized income or rental method

b. The sales data or market method (abstraction method)
c. The straight-line or age-life method
d. The cost.-to-cure or observed condition method
• In accounting we use ACTUAL AGE for depreciation, in appraisal we use EFFECTIVE AGE.
• When you read Net Income before recapture, it is Net Income before depreciation expense.
Depreciation is not a deduction in computing NOI.
7. The sales comparison approach relies on the principle of
a. Anticipation c. Substitution
b. Leverage d. Highest and best use
• Sales comparison approach is the same as Market Data Approach

• Sales comparison approach can be used in all 3 approaches to value.
• Substitution is to Market Data and Cost Approach, anticipation is to Income Approach.
8. The transaction price of a property is its
a. Sales price c. Insurance value

b. Market value d. Asking price
• Price and cost are ACTUAL, while value is just an ESTIMATE

• How much did you sell – P1M
• How much is your cost in buying – P1M + DST + Transfer Tax + Registration Fee
• Mr. Appraiser, how much do you think is the fair market value of my property before I sell
it? My estimate is about P900K
9. To be considered comparable to the subject property, a comparable must have been sold
a. In arm’s length transaction c. Without any form of secondary financing

b. With a conventional mortgage d. For all cash
• Arms length when buyer and seller are acting in their own self interest, property is to be
sold in a typical market
• Unrepresentative sale ( ex. Sale of parents to children, sale under duress, undervalued sale)
is the opposite of arms length transaction sale.
10. The cost that would be incurred in acquiring an equal desirable substitute property
a. Reproduction cost c. Comparative cost

b. Replacement cost d. All of the above
• Reproduction is EXACT replica or IDENTICAL, replacement is SIMILAR.

11. Land prices are analyzed and adjusted as part of the comparative process. This adjustment could involved:
a. Adding or subtracting lumpsum amount

b. Adding or subtracting percentage
c. Accumulating percentage
• Example of adjustments:
• 1. Time element 2. Market resistance or discount factor 3. Physical and economic factors.
• The comparable is the one being adjusted to get the value of subject property
• Of all adjustments, LOCATION is the most important to be considered.
12. Conclusion as to the highest and best use is part of which step
a. Defining the appraisal problem

b. Preliminary survey
c. Analyzing the data
d. Making the final estimate of value
• It is HBU conclusion not VALUE conclusion
13. An objective kind of values that can be estimated for items and properties bought and sold in the market
is called
a. Value in use c. Income approach

b. Value in exchange d. All of the above
• Subjective value is the seller’s value – acting in his self interest
14. Which of the approaches to value would involve an investigation into the rent schedules of the subject
property and the comparable
a. Cost approach c. Income approach

b. Market approach d. All of the above
• RENT means income
15. The form of deed used to return the title to real estate to its owner when the debt secured by a deed of
trust is paid in full is the
a. Warranty need c. Quitclaim deed

b. Reconveyance deed d. Tax deed
• Example : 1) Redemption in a pacto de retro sale 2. Redemption iIn dacion en pago 3.

Return of excess will to legitime thru court order.
16. Which of the following is NOT considered the fundamental principle in property taxation?
Real property is:
a. Appraised at current and fair market value
b. Assessed on the basis of actual use
c. Assessed on the basis of schedules of value
d. Assessed on the basis of uniform classification
17. To adjust the sale price of the comparable sale with a the (10%) percent better location you should.
a. Add 10% to the price c. Multiply the price by 10%

b. Subtract 10% from the price d. None of the above
• It means that the comparable has better location

• If the subject has better location - ADD
18. The index method of estimating construction cost is based on:
a. The original cost of improvement New CPI = New Cost

b. The cost of new improvement at current prices Old CPI Old Cost
c. Book value
d. The national cost average of all components
• The BIR used the CPI method in estimating selling prices of real estate exempted to VAT
• P1919,500.00 or less - VAT exempt for residential lots
• P3199,200.00 or less – VAT exempt for residential dwellings and condominiums
• Commercial condos regardless of amount is VATABLE
• Parking slots are all VATABLE
19. In the land residual technique, the appraiser starts with the assumption of
a. Replacement cost c. Net capitalization

b. Building value d. Land value
• Land residual because building is still new, highest and best-use and there’s little
comparable on land prices in the area
20. In the building residual technique, the appraisers start with the assumption of.
a. Replacement cost c. Net capitalization

b. Building value d. Land value
21. Scheduled rent that is higher than market rent creates.
a. Overage rent c. Excess rent

b. Gross rent d. Escalator
• Scheduled rent is sometimes called CONTRACT RENT or actual rent.
22. Other name for contract rent is
a. Market rent c. Economic rent

b. Scheduled rent d. Surplus rent
23. Zoning is an excise of a government’s
a. Police power c. Right of condemnation

b. Power of eminent domain d. Right of priority
24. A good sign of continued real estate appreciation is
a. High properly tax rate c. Minimal tax base

b. Low property tax rate d. Strong economic base
25. When choosing a comparable sales for the sales comparison approach, property characteristic that should
be identical or very similar to those of the subject property include.
a. Size of lot and building c. Number and type of rooms

b. Age of building and type of d. All of the above
construction
26. What term is used to describe a study of the cost-benefit relationship of an economic endeavor?
a. Investment analysis c. Market analysis

b. Feasibility analysis d. Cash flow analysis
27. Real properties are classified for realty tax purposes:
a. Land c. Building
b. Machinery d. All of the above
• Including plants and trees like mango plantation, coconut plantation, mahogany
plantation (in commercial quantities are subject to realty tax)
28. The leased under which the tenant pays a fixed rental and the landlord pays all the expenses of
ownership is the.
a. Gross lease c. Escalator clause
b. Triple net lease d. Expense-stop clause
• It is NET LEASE if the lessee pays for all that includes realty taxes and maintenance.
29. Those assets which are physical and material in nature:
a. Intangible c. Tangible
b. Fixed d. Liquid
• Example of intangible asset: 1. Goodwill, 2. Well experienced manager
30. The age indicated by the condition and utility of the structure is called:
a. Actual age c. Condition of sale

b. Effective age d. Accumulated age
31. 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 lease
c. Building and other improvements
d. Building and fixtures
32. The local Board of Assessment Appeals (LBAA) is chaired by the:
a. Provincial/City Assessor
b. Provincial/City Treasurer
c. The Provincial Engineer
d. The Provincial Prosecutor
e. The Register of Deeds
33. Which of the following examples BEST reflects investment value?

a. Value to a typical buyer or seller
b. Value to a specific buyer
c. Value for insurance purposes
d. Value for property tax purposes
34. In the series 9, 7, 3, 9, 6, 5, 3, 7, 2, 3 the midrange is
a. 5 c. 3
b. 5.5 d. None of the above
Arrange first to: 2, 3, 3,3, 5, 6, 7, 7, 9, 9

Add the two middle numbers and divide by 2 (because the series is even)
If the series is uneven, just pick the middle number
35. Which of the following statement is NOT necessarily correct regard to a local zoning ordinance?
a. Zoning can established heights restrictions on buildings
b. Zoning prevents decline in property values within a certain zoning district.
c. Zoning is often used to separate incompatible land uses
d. Zoning established setback requirements for improvements on land.
36. Important reference materials may be secured form the Office of the City/Municipal Assessor such as:
a. Transfer of Certificates of the Title Number
b. Realty Tax Receipts
c. City/Town Development Plan
d. Parcelliary Map
• Example is when the DPWH will take a portion of your property in expropriation, the
portion to be taken by the government is shown in a parcelliary plan.
37. The income approach to value is based primarily on which of the following economic principles?
a. Anticipation c. Highest and best use

b. Conformity d. Substitution
• Substitution is to Market Data (sales comparison) or Cost Approach.
38. The principle of Substitution implies that the value of a property trends to be Indicated by value of an
equally desirable property:
a. Comparable c. Replaceable
b. Repairable d. None to the above
39. Which of the following conditions lowers property values?
a. Neighborhood conformity c. Excessive demand

b. Deferred maintenance d. Highest degree of utility
40. The difference between reproduction cost new and current market value.
a. Accrued depreciation c. Sound value

b. Physical obsolescence d. Trend index
• Building Value = Replacement or Reproduction Cost New less Accrued Depreciation
41. A lot with direct access to any street or highway?
a. Interior lot c. Landlocked

b. Key lot d. Cul-de-sac
42. A parallelogram whose angles are oblique and whose sides are equal.
a. Square c. Rhombus
b. Rectangle d. Trapezium
• It is a slanted square or rectangle.
43. The Market Data Approach is also known as…
a. Comparative-sales approach c. Sales-comparison approach

b. Market-comparison approach d. All of the above
44. No person shall be deprived of his/her property except by competent authority and for public use and
always upon payment of-
a. Zonal value c. Just compensation

b. Assessor’s value d. Appraised value
45. __________ is the right of the property owner to everything which is produced thereby or which is
incorporated or attached thereto, either naturally of artificially.
a. Accession c. Attachment
b. Adhesion d. Occupation
• Example : 1) natural fruits such as plants and trees 2) artificial like planting of rice,
building fixtures introduced by the lessee
46. Whenever a river, changing its course by natural course, opens a new be through a private estate, this
bed shall become public dominion.
a. True c. It depends
b. False d. None of the above
47. A contract cannot be sued upon enforced unless it is ratified is called
a. Rescissible contract c. Unenforacable contract

b. Voidable contract d. Void contract
48. One (1) square kilometer is equivalent to

a. 10 hectares c. 2.471 acres
b. 0.386 square mile d. None of the above
49. When both parties agree to cancel a contract they effect a:

a. Rescission c. Novation
b. Release d. Reformation
50. Which of the following features represents physical data that must be considered by the
appraiser?
a. Easement c. Public restrictions
b. Plottage d. Utility restrictions
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51. In condemnation appraisal, the government pays for special sentimental value and for moving
expenses.
a. True b. False
• Under RA 7279, there is such thing as DISTURBANCE COMPENSATION
52. What is plottage value?

a. The value of the land between the subject property and other property
b. The bonus that sometimes may be obtained from the consolidation of the lots
c. The price of land per lot
d. The debt divide by the frontage
53. Which approaches are most applicable to the appraisal of a new house?
a. Gross rent multiplier analysis, Cost approach
b. Market Data Approach, income Approach
c. Cost approach, income approach
d. Direct comparison approach, cost approach
54. In purchasing an older structure the buyer would give most consideration to its
a. Effective age c. Actual age
b. Economic life d. Useful age
55. Which of the following is NOT a method of appraising unimproved real property?
a. Reproduction technique
b. Direct sales comparison approach
c. Cost of development methods
d. Abstraction
56. Which element of comparison is more important in site valuation than in improved property
valuation?
a. Location c. Conditions
b. Size d. Date of sale
57. Effective age is

a. Total economic life minus remaining life
b. Total economic life minus actual age
c. Actual age adjusted for obsolescence
d. Total utility minus diminished utility
58. Accrued depreciation is

a. A future loss in value
b. A reduction in the original cost in accounting
c. A loss in utility
d. Proportional with the passage time
• Replacement Cost less Market Value of Improvement

= Accrued Depreciation in appraisal
59. An estimate derived from observing completed transaction involving a large degree of amenities
or other personal and unpredictable factor is called
a. Cost value c. Caprice value
b. Asking value d. Market value
60. An appraisal for the price that a property would sell for based on a quick sales would be
estimating what type of value?
a. Market value c. Going concern value
b. Use value d. Liquidation value
• It is usually lower than market value.

61. The principle that prevent an appraiser from appraising a lot to its commercial potential and the
improvements thereon for residential value is -
a. Principle of increasing and decreasing return
b. Principle of consistent use
c. Principle of highest and best use
d. Principle of anticipation
62. An appraisal may include

a. Property description c. Estimate of market value
b. Opinion property condition d. All of the above
63. An individual owned parcel includes a share of common areas in a

a. Subdivision c. Freehold
b. Condominium d. Life estate
64. Market value is based on

a. Insurable value c. Cost
b. Most probable value d. Value in use
65. Short-term financing instruments are part of the

a. Money market c. Absorption analysis
b. Capital market d. Feasibility study
66. An important influence on real estate financing is the

a. Prime rate banks charge on home loans
b. Discount rate the BSP charges member banks
c. Prime rate the BSP charges member banks
d. Discount rate charged on home improvement loans
67. The appraisal process requires the appraiser to collect, record, verify
a. Only data on the subject property’s neighborhood
b. Data on all neighborhoods in the city
c. Data on an annual basis
d. General data on the region, city and neighborhood
68. Private deed restrictions often are enforced through a

a. Zoning variance c. Homeowner’s association
b. Zoning board d. Housing cooperative
69. If a commercial structure is a rectangle with side of 65 meters and 135 meters and the current
local cost to build a similar structure is Php 4,500 per square meter, what is the estimated
construction cost of the structure using the square meter method?
a. P18,000,000 c. P39,487,500
b. P180,000,000 d. P36,450,000
• This is floor area method

• Length x width = Area x Floor Area = Estimated Cost
70. All other factors being equal, as the location of an income property become less desirable, the
cap rate used will be
a. Lower c. Less reliable
b. Higher d. Unaffected
• If desirable use lower cap rate, value increases

• If less desirable use higher cap rate, value decreases
71. The mean of five houses sales prices of P100,000, P75,000, P175,000, P200,000, P200,000
a. P140,000 c. P700,000
b. P150,000 (average) d. P175,000
• Study how to compute 1) mean 2) median 3) mode - STATISTICS
72. The peso value or percentage amounts that when added to or subtracted from the sales price of
a comparable to provide an indication of the value of a subject property, are referred to as
a. Comps c. Multipliers
b. Adjustments d. Sales
73. The process of identifying and analyzing sub-markets of a larger market is known as
a. Extraction c. Market segmentation
b. Market allocation d. Substitution
74. The proximity of a parcel of land to a supporting land use is referred to as

a. Location quotient c. Highest and best use
b. Linkage d. Land efficiency
75. If an appraiser is asked to render an opinion of value based on the specific requirements and
needs of a purchaser or investor, the appraiser is more than likely estimating which of the valuing
values?
a. Market value c. Value in exchange
b. Investment value d. Most likely sales value
76. A description of the surface features of land such as elevation or drainage is known as its
a. Location c. Topography
b. Plottage d. Restrictive covenant
77. Why is the gross income multiplier normally not subject to adjustments by the appraiser?
a. It is impossible to make adjustments when using income data

b. Relative desirability is presumed to be reflected in the gross income generated in the
market place
c. Any differences between properties would be insignificant
d. The income approach never allows for adjustments of any kind
• The comparable income property has the same characteristics that of the subject property,
more or less, they have the same operating expenses .
78. A statement or material facts or conditions on which another person can rely because it cannot
be denied at a later date
a. Appraisal report c. Lease contract
b. Estoppels certificate d. Estate
79. Separates or different rates used to capitalize income imputable to land and to building
a. Interest rate c. Overall rate
b. Capitalization rate d. Split rate
• Example : Overall rate for the building, interest rate for the land
80. Increase in retail sales “back to school” time is an example of which and of economic trend?
a. Business c. Cyclical
b. Seasonal d. Long term secular
81. The amount of entrepreneurial profit

a. Reflect the success of the project
b. Is based on how project expenses are categorized
c. Will always be the same, provided the project is completed within its estimated
budget
d. Cannot be estimated accurately
82. Another term for developer’s profit is

a. Contractor’s profit c. Project profit
b. Entrepreneurial profit d. Management profit
83. The level of business activity in a community is
a. Economic base c. Measuring lie
b. Tax base d. Discount rate
84. Any method for bringing waste natural resources into productive use
a. Subdivision c. Backfilling
b. Reclamation d. Appropriation
85. Which of the following statement is CORRECT for the purpose of estimating vacancy rates in an appraisal
used to estimate the value of a fee simple estate?
a. Projects that are being the highest and best use of the site normally would have no vacancy
b. The vacancy rate used in an appraisal normally should be the vacancy rate currently
experienced by the project
c. The vacancy rate used in an appraisal should reflect the typical vacancy rate for
comparable properties
d. The vacancy rate should never be zero
86. An appraiser calculates the present value of income based on the contract rent and adds the present
value of the reversion at the end of the lease. What legal interest is being valued?
a. Life estate c. Fee simple estate
b. Leased fee estate d. Leasehold estate
87. The amount that might be realized from sale of property, or components thereof, to be removed for use,
wholly or in part, elsewhere.
i. Scrap value iii. Liquidation value
ii. Salvage value iv. Sound value
88. Which approach to value would be most likely to be used in appraising a public library?
i. Income iii. Cost
ii. Market data iv. All of the above
89. Which of the following would not be considered in the market data approach to appraisal?
i. Sale price of comparable properties
ii. Terms of sale of comparable properties
iii. Location of each comparable property
iv. Acquisition cost to present owner of the subject
90. Base rate means

i. The rent covering the ground floor
ii. The minimum rent stipulated in a lease
iii. The rent based on the net income
iv. None of the above
91. Real property is listed, valued and assessed in the name of
i. Owner or administrator of the property
ii. Anyone having legal interest
iii. Estate, heirs and devised
iv. All of the above
92. A house which cost P400,000.00 is surrounded by house prices substantially higher. Which principle
would be most applicable to the P400,000.0 house in current appraisal?
i. Substitution iii. Regression
ii. Contribution iv. Progression
93. The interest belonging to the tenants created by the leasing of the property
i. Leasehold estate iii. Contract rent
ii. Economic rent iv. Leasehold estate
94. Which of the following statement applies to a property with a nonconforming use?
i. The existing nonconforming use in the highest and best use

ii. A nonconforming use is likely to arise from changes in zoning
iii. A conforming use property may be underimproved but cannot be overimprove
iv. In the sales comparison approach, an appraiser does not have to make a separate
adjustment for the nonconforming use
95. The annual property tax on a parcel of land you are appraising is P5,000.00. The taxing authority assesses
land at 50 percent of market value. If the tax rate is 2% of the assessed value, what is the estimated
market value of the land?
i. P500,000.00 iii. P5,000,000.00
ii. P250,000.00 iv. None of the above
Answer: P500K x 50% = 250K x 2% = 5K ( YOU MUST KNOW THE SEQUENCE)

96. Which of the following test would be appropriate for determining when personal property becomes real
property?
i. Items attached are personal property if not classified as trade fixtures
ii. Items attached are personal property if attached by the lessee
iii. Items attached are personal property if the tenant is on a month-to-month lease
iv. Items attached are personal property if they can be removed without damage
97. What term is used to describe tangible and intangible factors that enhance the desirability and thus add
to the value of real estate?
i. Amenities iii. Enhancement
ii. Goodies iv. Negative externalities
98. In regard to an unpaid property that has become due and payable, which of the following statement is
INCORRECT?
i. The property tax is a specific lien against the property
ii. The claim of the taxing authority is superior to any private claim
iii. The property may be sold to satisfy the claim
iv. Any other property owned by the individual owner may be sold to satisfy the claim
against the property in question
99. The cost of improvements identical utility to those of the subject property is called the subject’s
a. Reproduction cost c. Sales price

b. Replacement cost d. Market value
100. The peso value or percentage amounts that, when added to or subtracted from the sale price of a
comparable to provide an indication of the value of a subject property, are referred to as:
a. Comps c. Multipliers
b. Adjustment d. Sales
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101. The house flooring as an area of 30 square meters. How many vinyl tiles are needed If the tiles size is 12
inch. By 12 inch. (choose the nearest answer)
a. 350 tiles c. 380 tiles
b. 332 tiles d. 323 tiles
102. A hectometer is equivalent to:

a. 1 meter c. 100 meters
b. 10 meters d. 300 meters
103. A building has rental income of P350/month. Using a monthly gross rent multiplier of 125, the value of
the building would be estimated at
a. P35,714.00 c. P43,750.00
b. P473,500.00 d. P375,142.00
104. Which of the following is not a test to determine whether a given piece of personal property is a fixture?
a. The intention of the person affixing the personal property of the land
b. The method of affixation
c. The use or adaptability of the personal property to the
d. All of the above
• Fixture is real estate while trade fixture is personal property
105. As the supply of the developable land decreases, and as demand continues to rise, the value of the
remaining land will generally
a. Remain about the same
b. Tend to rise in value
c. Tend to fall in value
d. Demand has no effect in values
106. The principle of increasing or decreasing return can best be applied when there is
a. An improvement on a parcel of land
b. An under improvement on a period of land
c. A poorly designed home
107. A statement of limiting conditions in necessary in an appraisal because
a. It notifies the client of items subject to which the appraisal is made
b. It protects the appraiser against conditions which he or she does not have control
c. It limits the liability of the appraiser
d. All of the above
108. Which of the following is NOT a basic method of land valuation?

a. The market approach
b. The land development approach
c. The capitalization approach
d. The land-residual approach
109. The most important variable of the market approach of land valuation?
a. Sufficient number of recent sales
b. Proper tax records
c. Land and improvements assesses on the same basis
d. Proper tax assessment
110. Which of the following land valuation approaches considers the depreciated value of the improvement?
a. The comparative approach
b. The abstractive approach
c. The land development approach
111. Which of the following types of depreciation is always for all practical purpose, incurable?
a. Economic obsolescence
b. Functional obsolescence
c. Physical deterioration
d. None of the above; all types of depreciation are, practically speaking, curable
112. Regard to zoning, which of the following statement is CORRECT?

a. Zoning ordinances are always more restrictive than deed restriction
b. A nonconforming use and a variance refer to the same thing
c. Zoning normally establishes land-use districts and provided for different restriction with
east districts
d. Exclusionary zoning and spot zoning to the same thing
113. The area of a trapezoid is computed as:

a. ½ sum of parcel side x altitude
b. ½ sum of all side x inside radius
c. ½ sum of all side x height
d. Sum of all side x inside radius
114. The capitalization of a rental loss is used to measure which of the following types of depreciation
a. Incurable functional and economic obsolescence
b. Curable functional and economic obsolescence
c. Curable physical deterioration
115. The determination of the capitalization rate by the process of dividing the net income by the selling price
is:
a. The comparative sales approach
b. The band-of-investment method
c. The summation method
116. The term reconciliation as used in appraising means?

a. The process of determining value by referring to the highest sales that have occurred in the
neighborhood
b. The process of bringing together all of the sales in the area and analyzing them
c. The process of bringing together the values indicated by each approach so that the
appraiser can form an opinion about the value of the subject property
d. The process of analyzing comparable rental properties and establishing a gross rental
multiplier
117. In the appraisal of a new, detached, single-family residence, a proper weighting would include
a. The market approach c. The income approach
b. The cost approach d. Both a and b
118. Which of the following is a limitation of the cost approach?

a. Need to find a sufficient number of comparable sales
b. Losses validity when applied to significantly over improved properties
c. Need comparable rental information
d. Need proper capitalization rate
119. An owner of a parcel of land leases the land to a tenant for ten years. The next day the owner sells the
land to a third party. Which of the following statement is CORRECT?
a. The new owner has an option as to whether to accept the terms of the lease
b. The tenant may voluntarily terminate the lease
c. The tenant’s leasehold is not affected
d. The tenant’s legal interest in automatically terminated by operation of law
120. The purpose of the appraisal assignment is usually to estimate which type of value?
a. Investment value c. Value is use
b. Market value d. Replacement value
121. All improvement cost, less depreciation, are subtracted from sales price to derive land value in the
process is called?
a. Ground rent capitalization c. Entrepreneurial enterprise
b. Extraction d. Assemblage
122. In using the cost approach to appraising, the estimated construction cost of improvements usually will be
based on
a. Their original cost
b. The cost of new improvements at current prices
c. Book value
d. The nation cost average of all components
123. The principle that prevents an appraiser from appraising a lot for its commercial potential and the
improvements thereon for residential value is the:
a. Principle of increasing and decreasing return
b. Principle of consistent use
c. Principle of highest and best use
d. Principle of anticipation
124. Which of the following would be considered in the market data approach to appraisal?
a. Sale price of comparable properties
b. Terms of sale of comparable properties
c. Location of each comparable property
d. Acquisition cost to prevent owner of the subject
125. The following are economic indicators, except:

a. Investment and savings
b. Population, employment and unemployment
c. Gross domestic product
d. Volume of traffic
126. In considering the highest and best use of a parcel of land to be improved with an office building, the
appraiser determines the optimal land/building ratio for the parcel. Which of the following economic
principles illustrate this?
a. Anticipation d. Substitution
b. Balance e. None of the above
c. Contribution
127. The age indicated by the condition and utility of a structure:

a. Actual age d. Effective age
b. Economic life e. None of the above
c. Useful life
128. This method may indicate whether or nor he structure is an over or under-improvement and whether or
not it has come into being with some aspects of built-in depreciation:
a. Sound value d. Building residual technique
b. Reproduction cost new e. None of the above
c. Property residual technique
129. To be considered comparable to the subject property, a comparable must have been sold:
a. In an arm’s-length transaction
b. With a conventional mortgage
c. Without any form of secondary financing
d. For all cash
e. None of the above
130. A home costing P400,000.00 is surround by home priced substantially higher. Which principle would be
most applicable to the P400,000.00 home in a current appraisal.
a. Substitution d. Progression
b. Contribution e. None of the above
c. Regression
131. A recently sold commercial property with the following known facts: the selling price was P435,000.00.
The site value is P125,000.00, and the building’s estimated remaining economic life is 25 years. Total net
operating income is P57,000.00. What is the overall cap rate for the property?
a. 12.5% d. 14.25%
b. 13% e. None of the above (57K/435K = 13.10
c. 13.5%
132. Under what classification does a machinery and equipment fall with an assessed value of P40,000.00 or
50% of its market Value?
a. Agriculture d. Industrial
b. Commercial e. None of the above
c. Residential
133. Which of the following features represent physical data that must be considered by the appraiser?
a. Easements d. Utility connection
b. Plottage e. None of the above
c. Public restriction
134. An appraisal for the price that a property would self for based on a quick sale would be estimating what
type of value?
a. Market value d. Liquidation value
b. Use value e. None of the above
c. Going-concern value
135. Legally speaking, a condominium can be which of the following types of property?
a. Residential d. All of the above
b. Commercial e. None of the above
c. Industrial
136. The legal right of the state to acquire property of a decedent who died without a will and without heirs is
referred to as what?
a. Eminent domain c. Dedication
b. Escheat d. Devise
137. Why is the gross income multiplier normally NOT subject to adjustments by the appraisers?
a. It is impossible to make adjustment when using income data
b. Relative desirability is presumed to be reflected in the gross income generated in the
market place
c. Any differences between properties would be insignificant
d. The income approach never allows for adjustments of any kind
138. Effective gross income (EFI) is the anticipated income from operation of a project after adjustment for:
a. Operating expenses d. All of the above
b. Realty tax and insurance e. None of the above
c. Vacancy and credit
139. The form of deed used to return title to real estate to its owner when the debt secured by a deed of trust
is paid in full is the:
a. Warranty deed c. Quitclaim deed
b. Reconveyance deed d. Tax deed
140. When choosing comparable sales for the sales comparison approach, property characteristics that should
be identical or very similar to those of the subject property include:
a. Size of lot and building
b. Age of building and type of construction
c. Number and type of room
d. All of the above
141. It is designed to reflect the recapture of the original investment over the economic life of the
improvement, to give the investor an acceptable rate of return (yield) on the original investment, and to
prove for the return of borrowed capital.
a. Discount rate c. Capitalization rate
b. Rate of return d. Yield rate
142. The financial devise used to maximize cash flow using other people’s money is commonly referred to as:
a. Liquidity c. Tax shelter
b. Equity d. Leverage
143. In regard to zoning, which of the following statements is CORRECT?

a. Zoning ordinances are always more restrictive than deed restrictions
b. A nonconforming use and variance refer to the same thing
c. Zoning normally establishes land-use districts and provided for different restriction within
each district
d. Exclusive zoning and spot zoning refer to the same thing
144. A comparable site sold a month ago from P25,000.00 per square meter. Its location is considered 15%
superior and its shape and topography is 10% inferior to the subject site. The time adjustment is 12% per
years. Determine the adjustment sale price of the comparable site using straight plus and minus
adjustment.
a. P18,250.00 /meter d. P23,987.50
b. P24,250.00 /square meter e. All of the above
c. P25,750.00 /square meter
• Solution: (25K + 250) x .95 = 23,987.50
145. The boundaries of a neighborhood might be determined by:

a. An economic change is use
b. Physical features such as lakes, river, or freeways
c. Zoning or city limits
d. All of the above
146. The net income before recapture is estimated by deducting the following from the effective gross income:
a. All expenses in the operation of the property including depreciation
b. All expenses excluding depreciation
c. All real estate taxes only
d. All building expenses excluding maintenance and repair cost
147. Private deed restriction often are enforce through a:

a. Zoning variance c. Homeowner’s association
b. Zoning board d. Housing cooperative
148. Practical use of the comparable listings in the valuation of a residential lot generally:
a. Offers to buy set the upper limit of value and listing to sell set the lower limit of value
b. Listings to sell the upper limit of value and offered to buy the set of lower limit of value
c. both a and b
e. All of the above
149. Rent saving is the difference between:

a. Market rent and economic rent
b. Market rent and contract rent
c. Flat contract rent and Step-Up Contract Rent
d. Sublease rent and Lessee’s Rent
150. R.A. 7279, Sec-18, specifies that developers of proposed subdivision projects shall be required to develop
an area for so socialized housing equivalent to:
a. 25% of the total subdivision area
b. 20% of the net saleable area
c. 20% of the total subdivision area
d. 25% of the cost of development
• This is already amended : now (effective July 2017) 15% for horizontal subdivision and 5% for
condominium projects. See www.hlurb.gov.ph
151. Accrued depreciation is classified into three types or categories. Which of the following
should not be included?
a. Functional obsolescence c. Detrimental obsolescence
b. Economic obsolescence d. Physical obsolescence
152. Which of the following land valuation approaches considers the depreciated value of the
improvements:
a. The comparative approach c. The land development approach
b. The abstract approach d. None of the above
153. Recapture of the investment capital in real estate finance is that portion of the loan payment
that is earmarked for:
a. Interest on money due c. Interest and principal payment
b. Payoff of principal d. None of the above
154. The three criteria that, in part, define the “highest and best use are.”
a. The use must be physically possible, legally acceptable, and generate a higher
present land value than any other use
b. The use must legally acceptable, politically possible, and socially advantageous
c. The use must be physically possible, comparable to other uses in the neighborhood,
and legally acceptable
d. The use must be comparable to other uses, physically possible, and generate a higher
present land use that other uses
155. Assuming four different shapes of a 500 square meter house, which would be the most expensive
to build, assuming the same materials and quality of construction?
a. A rectangle d. A U-shape
b. An L-shape e. None of the above
c. An H-shape
156. Of the three approaches to valuing a parcel of real estate, which values the lands separately
from the improvement.
a. Income approach
b. Market approach
c. Comparative approach
d. Cost approach
157. All of the following consider the time value of money except
a. At present value d. Payback period
b. Discounted cash flow e. Compound interest
c. Internal rate of return
158. The simplest and most reliable method of income capitalization is:
a. The direct capitalization technique
b. The building residual technique
c. The land technique
d. The equity residual technique
159. A statement of limiting conditions is necessary in an appraisal because:
a. It notified the client of items subject to which the appraisal is made
b. It protect the appraiser against conditions which he or she does not have control
c. It limits the liability of the appraiser
160. Generally the most reliable approach in the appraisal of a single-family residential property is
a. Market approach d. Summation approach
b. Cost approach e. None of the above
c. Income approach
161. The most important variable of the market approach to land valuation is:
a. Sufficient number of recent sales
b. Proper tax records
c. Land and improvements assessment on the same basis
d. Proper tax assessment
162. The appraiser’s conclusion of value should be based on:

a. An average of the limit conclusions indicated by the three approaches to value
b. A weighting of the importance of the value indicated by each of the three
approaches to value
c. None of the above
d. All of the above
163. Assuming four different shapes of a 500 square meter house which would be the least expensive
to build, assuming the same materials and quality of construction?
a. A rectangle c. An H-shape
b. An L-shape d. A U-shape
164. There are four methods for measuring accrued depreciation. Which on of the following would
probably be used for estimating the value loss from deferred maintenance?
a. The sales data or market method
b. The straight-line or age-life method
c. The cost-to-cure or observe condition method
d. The capitalized income or rental method
165. In market value appraisals, which of the following items should be excluded from the expense
statement?
a. Loan interest payments c. Project expenses
b. Necessary current expenses d. None of the above
166. In utilizing the income approach, the appraiser considers the remaining economic life of:
I. The building and other items within the building
II. The building only
a. I only d. Neither I or II
b. II only e. None of the above
c. Both I and II
167. Ideally, the appraiser of a residential property will collect data on comparable property sales
that occurred earlier than:
a. Six months prior to the date of appraisal
b. One year prior to the sate of appraisal
c. 18 months prior to the date of appraisal
d. Two years prior to the date of appraisal
168. Capitalization is the process whereby:

a. Income is converted to an indication of value
b. Syndicates are formed
c. Income approach for income properties
d. Income approach for residential properties
169. The most common type of partial-interest appraisal involves:

a. A leased property d. None of the above
b. A time-shared residence e. All of the above
c. A row-house
• Why partial? Owner gives up possession in favor of the lessee. He becomes naked owner.
170. Which of the following is an advantage of a two-storey house over a single-storey house?
a. Stairs
b. Lower construction cost per square meter
c. Easier to point and maintain error
d. Less danger in case of fire
171. The total anticipated revenue from income property operations after vacancy and collection
losses are deducted is:
a. Net operating income d. Potential gross income
b. Before-tax cash flow e. Property residual income
c. Effective gross income
172. Which of the following land valuation approaches considers the depreciated value of the
improvements:
a. The comparative approach c. The land development approach
b. The abstract approach d. None of the above
173. Recapture of the investment capital in real estate finance is that portion of the loan payment
that is earmarked for:
a. Interest on money due c. Interest and principal payment
b. Payoff of principal d. None of the above
174. The three criteria that, in part, define the “highest and best use are.”
a. The use must be physically possible, legally acceptable, and generate a higher present
land value than any other use
b. The use must legally acceptable, politically possible, and socially advantageous
c. The use must be physically possible, comparable to other uses in the neighborhood, and
legally acceptable
d. The use must be comparable to other uses, physically possible, and generate a higher
present land use that other uses
175. Generally the most reliable approach in the appraisal of a single-family residential property is
the:
a. Market approach d. Summation approach
b. Cost approach e. None of the above
c. Income approach
176. The appraiser’s conclusion of value should be based on:

a. An average of the limit conclusions indicated by the three approaches to value
b. A weighing of the importance of the value indicated by each of the three
approaches to value
c. None of the above
d. All of the above
177. Primary data refers to:

a. The main data used by the appraiser
b. Data collected by the appraiser
c. Data that have a direct impact on value
d. Data published by a reliable source
178. What is meant by the term surplus productivity?

a. The excess in revenues received above the market rate
b. The income attributable to land rent that remains after labor, capital and
coordination have been charged
c. The income received after operating expenses, taxes and debt service have been paid
d. The income received after the marginal level of productivity is reached
179. The term investment value is BEST described as value to:

a. A typical investor c. A user
b. A particular investor d. A lender
180. Risk due to the use of debt financing is referred to as:

a. Interest risk c. Leverage risk
b. Financial risk d. Equity risk
181. All of the following types of board forces affect value except
a. Physical d. Social
b. Intellectual e. Economic
c. Political
182. Social, economic, governmental, and environmental influences that affect property value are
called
a. Laws d. Consequences
b. Forces e. Impacts
c. Factors
183. The value of real estate is determined in the market mainly by its
a. Price d. Size
b. Productivity e. Height
c. Mortgage
184. Rights of condemnation are held by a

a. State government agency
b. Local agency or authority representing the national government agency
c. Utility company
d. Small municipality
e. All of the above
185. 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 owner
d. No two parcels have the same tax levies
186. Which of the following is a basic component of value?

a. Utility
b. Scarcity
c. Demand coupled with purchasing power
d. Transferability
e. All of the above
187. A collection of retail stores with a common parking area and generally one or more large
department, discount, or food stores; and sometimes including an enclosed mall or walkway, is
commonly referred to as a:
a. Mall c. Mixed – use development
b. Retail complex d. Shopping center
188. A large national tenant that copies space in a shopping center is often referred to as a (n):
a. Discount tenant c. Department store
b. Anchor tenant d. Mall tenant
189. What is the distinction between the terms market price and market value?
a. Market price is synonymous with replacement cost, while market value is the same
as assessed value
b. Market price is what the seller asks for, while market value is what the buyer actually
pays
c. Market price is what the property sells for, while market value is what the sales
price should be to a typical buyer
d. Market price is what is currently owned on the property, while market value is what
is bought for
190. Eminent domain requires

a. Appraisal process for the estimation of real property value
b. Just compensation for specific types of financial loss
c. Due process for the taking of property through condemnation
d. Both a and b
e. Both b and c
191. Price and value are

a. Not necessarily the same
b. Synonymous
c. Different, depending on financing terms
d. Close together in an inactive market
e. Used interchangeably in a report
192. All of the following statement are true except:
a. Real property refers to items that are not permanently fixed to a part of the real
estate
b. Appraising is the art and science of estimating the value of asset
c. Asset typically requiring appraisal include real and personal property
d. Assets value change with time
e. Market change with supply and demand
193. The principle of substitution holds a purchaser will pay no more for a property than
a. The maximum he can afford
b. The cost of acquiring an equally desirable substitute
c. The price of a previously owned property
d. The price of property with greater utility
e. None of the above.
194. Which of the following conditions is assumed in the normal definition of market value?
a. The estate value is as of a future date
b. The property will sell promptly
c. Payment will be made in cash or its equivalent
d. Only the buyer is knowledgeable as to the potential uses of the property
195. In considering the highest and best use of parcel of land to be improved with an office building,
the appraiser determines the optimal land to building ratio for the parcel. Which of the following
economic principles does this illustrate?
a. Anticipation c. Contribution
b. Balance d. Substitution
196. An estimate of the accrued depreciation is an important part of the cost approach to value
which of the following economic principles is the foundation on which estimating accrued
depreciation is based?
197. The sales comparison approach involves a step undertaken by the appraiser to adjust for such
items as square meter, age, quality of construction, etc. What economic principle is the
foundation on which this adjustment process is undertaken?
a. Anticipation c. Substitution
b. Contribution d. Surplus productivity
198. Which of the following commonly accepted economic principle is used to explain that when
several parcels of property with substantially the same utility are available on the market, the
one with the lowest asking price will attract the greatest demand?
199. In which market are there many potential buyers but few properties available?
a. Demand d. Low-priced
b. Buyer’s e. Normal
c. Seller’s
200. Which type of studies tests the ability of various proposed improvements to meet investment
objectives?
a. Market d. Cost-benefit
b. Feasibility e. Prospectus
c. Marketability
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201. To estimate market value, an appraisers follows the

a. Appraisal report d. Appraisal guidelines
b. Valuation process e. Report evaluation technique
c. Evaluation methodology
202. An appraisal of real estate

a. Guarantees its value d. Estimates its value
b. Assures its value e. Segments its value
c. Determine its value
203. In which market is the direct sales comparison approach most applicable?
a. Seller’s d. Active
b. Buyer’s e. Calm
c. Reasonable
204. The financial device used to maximize cash flow using other people’s money is commonly
referred to as:
a. Liquidity c. Leverage
b. Equity d. Tax shelter
205. The legal right to remove items such as topsoil or coal from another is known as a/an:
a. Easement c. Escheat
b. Profit d. Emblements
206. A tax assessment is intended to accomplish which of the following result?
a. Set the maximum price paid at a foreclosure sale
b. Establish the asking price of property when listed for sale by the owner
c. Aid the determination of how much property tax is due
d. Determine market value
207. The process of changing the use of building from an apartment complex to a condominium
form of ownership is normally referred to as a(n):
a. Conversion c. Interim use
b. Proration d. Variance
208. A mortgage secured by a legal claim against two or more separate properties is referred to as
a:
a. Wrap-around mortgage c. Blanket mortgage
b. Participation mortgage d. Ground lease mortgage
209. The criteria for determining highest and best use include all of the following except
a. Physical possibility d. Maximal productivity
b. Financial feasibility e. Effect on community welfare
c. Legal permissibility
210. Which approach would be best when appraising a 15-to-20 year-old house?
a. Cost d. Income capitalization
b. Feasibility study e. Replacement Cost less depreciation
c. Sales comparison
211. Before reconciliation the appraiser should

a. Re-inspect the subject property
b. Evaluate the reliability of each approach to value
c. Review the over-all appraisal process and check for technical accuracy
d. Seek the property owner’s opinion
e. Average the results from the approaches used
212. The cost approach is often given more weight in the appraisal of
a. Old or obsolete buildings
b. Single family houses more than 10 years old
c. New buildings or special- use buildings
d. Commercial and industrial buildings
e. Vacant land
213. Which of the following is the longest and most detailed type of appraisal report?
a. Letter report d. Subdivision report
b. Form report e. Detailing report
c. Narrative report
• The form report is the filling the blanks type commonly used by banks
214. The extension of some improvements or object, such as building or driveway, across the legal
boundary of an adjoining tract of land is referred to as a (n):
a. Easement c. Encroachment
b. Emblement d. Profit
215. The legal right of the state to acquire property of a decent who died without a will and without
heirs is referred to as what?
a. Eminent domain c. Dedication
b. Escheat d. Devise
216. Which of the following terms applies to an item that originally was personally property but has
real property as a result of being attached to a building?
a. Real property c. Appendix
b. Fixture d. Chattel
o Trade fixture is personal property

o Fixture is real estate
217. Which of the following terms refers to the rights of a person who owns a property but has leased
it to someone else?
a. Leased fee estate c. Fee simple estate
b. Leasehold estate d. Lessee’s estate
218. Eminent domain gives the government the right to:

a. Acquire interest in private property without the consent of the owner
b. Regulate property to protect public safety and health
c. Acquire interest in private property when an owner dies without a will or known heirs
d. Create zoning ordinance
219. A large home built in an area of small cottage is an example of:

a. Over-improvement d. Functional obsolescence
b. Under-improvement e. Environmental aesthetics
c. Land regression
220. The period over which a building may be profitably used is its
a. Actual life d. Normal life
b. Physical life e. Effective life
c. Useful life
o It may also mean ECONOMIC LIFE
221. An improvement’s remaining economic life is

a. Its chronological age
b. Its effective age
c. The future time span over which the improvement is expected to generate benefits
d. Its effective age minus its chronological age
e. Its effective age plus its chronological age
222. The term metes-and-bound refers to:

a. A method for describing property
b. An appraisal of a property
c. The transportation to a site
d. The linkage to a property
223. A clause in a deed that limits the use of real estate is referred to as a:
a. Carry-over clause c. Veto clause
b. Subordination clause d. Deed restriction
224. The walls between two condominium units are NORMALLY considered to be:
a. Individual unit elements c. Limited common elements
b. Common elements d. Proprietary lease elements
225. This evolution of value theory emphasized the relationship of market, price and value; normal
value under conditions of balanced supply and demand
a. Social theory of Mill c. Theories of Austrian School
b. Cost theory of Adam Smith d. Theories Physiocrats
226. Under the international Valuation Standards (IVSC), two types of values are:
a. Fair market value and sound value
b. Market value and non-market value
c. Economic value and market vale
d. Fair market value and liquidation value
227. The right of a lessor to possess lease property upon the termination of lease is known as the
right of:
a. Termination c. Remainder
b. Covenant d. Reversion
228. The legal mechanism by which local governments regulate the use of privately owned real
property to prevent conflicting land uses and promote orderly development is known as?
a. Escheat c. Deed restriction
b. Zoning d. Eminent domain
229. The allocation of value between land and building is referred to as:
a. Absorption c. Extrapolation
b. Abstraction d. Interpolation
230. The process of developing an opinion of value is referred to as a (n):

a. Market analysis c. Appraisal
b. Investment analysis d. Extraction
231. The term topography refers to the:
a. Process of mapping an area by metes and bounds

b. Process of developing a legal description for a site
c. Configuration of the surface of the land
d. Soil condition of a site
232. Under the IVSC, the “C” stands for:
a. Corporation c. Conference
b. Committee d. Charter
233. ______________ is the amount that has been asked, offered or paid for the item
a. Cost c. Price
b. Value d. Market value
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A property with an annual net income of P382,500.00 was recently sold for P4,250,000.00. The
remaining economic life of the building is estimated to be 25 years. Land value is estimated to be
P900,000.00 Based on the data gathered,
234. The overall rate of the property is:

a. 8% c. 10%
b. 9% d. 12%
235. The value of the building is:
a. 3,250,000.00 c. 3,350,000.00
b. 3,450,000.00 d. 3,500,000.00
236. The recapture rate of the building is:
a. 4% c. 5%
b. 6% d. 3.33%
237. Ratio of the building to total value is:
a. 88.78% c. 73.83%
b. 68.78% d. 78.82%
238. The indicated rate of return is: (pure interest rate)
a. 5.84% c. 5.69%
b. 7.79% d. 5.53%
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239. The term economic base analysis can be described as a (n):

a. Analysis of the economic activity of a community that allowed it to attract income
from outside its boundaries
b. Analysis of population trends in a community
c. Compilation of demographic data from comparable area
d. Analysis of how interest rates will affect the base rent on a property
240. There are various types of appraisal reports. Which of the following step would be the final one
taken in the appraisal process?
a. Narrative report c. Personal letter of opinion
b. Bank form report d. Form report
241. What rental unit of comparison is of primary importance in appraising office buildings with
multiple tenants?
a. Rent per room per year
b. Rent per floor per year
c. Rent per square meter of net rentable area per year
d. Rent per cubic meter of gross leasable area per year
242. The area of a right triangle with a height of 10 ft. and a base of 4 ft is:
a. 40 sq. ft. c. 1.85 sqm (10/3.28 x 4/3.28/ 2 /3.28)
b. 25 sq. ft. d. 3.72 sqm.
243. Paired data sets analysis could be used to estimate which of the following factors?
a. Value of location c. Age of the property
b. Regression analysis d. Reproduction cost new
244. When value is estimated by analyzing sales price of similar properties (comparables) recently
sold, this is referred to as what approach to value?
a. Income approach c. Cost approach
b. Market approach d. Sales value approach
245. What term is used to denote the cost of an exact duplication of the property?
a. Replacement cost c. Original cost
b. Reproduction cost d. Construction cost
246. Which of the following statements applies to corner influence?

a. Corner sites have a higher value per square meter than other sites
b. Corner sites are preferable to interior properties
c. Corner sites have greater utility than other sites
d. Corner influence tables can be used to determine how a corner site affects the
property’s value
247. Cost and value are MOST likely to be similar under which of the following conditions?
A. The property has no deferred maintenance
B. The property is special purpose
C. The property is new
D. The property is small
248. The term real estate is generally used to refer to the physical land and improvements, whereas
the term real property denotes:
A. Machinery and equipment
B. Surface rights only
C. Legal interest and rights inherent in ownership
D. Air and subsurface rights
249. Demand for housing is affected when

A. The builders do not recognize a downturn in the market
B. Builders cannot find enough building materials to complete the job
C. A new factory opens hiring several hundred new employees
D. Zoning laws restrict new construction to the point that not enough homes are built
250. Which of the following explanations BEST describes the term market price?
A. The amount of money actually paid in transaction
B. The amount of the loan
C. The amount of money necessary to replace the property
D. Same term as market value
251. Market area life cycles include
A. Growth, stability, decline, and revitalization
B. Growth, level of appreciation, and decline
C. Growth, stability, decline and gentrification
D. Growth, stability, appreciation, and decline
252. Functional obsolescence in utility is

A. An impairment of the functional capacity of a property or building
B. The lack of a utility room in a house
C. A weak market segment
D. A weak market due to oversupply of homes
253. What term is used to describe tangible and intangible factors that enhance the desirability and
thus add to the value of real estate?
A. Enhancement C. Goodies
B. Amenities D. Negative externalities
254. Units of comparison

A. Are items that represent a breakdown of the price based on a significant variable
B. Classifications are difficult to estimate
C. Are the characteristics that cause the prices paid for real estate to vary
D. Rates are difficult to estimate
255. The following are economic indicators, EXCEPT:

A. Investment and savings D. Population, employment and
B. Volume of traffic unemployment
C. Gross domestic product
256. HVAC is an acronym for

A. Heating, ventilating, and cooling
B. Hot, vertical, and cramped
C. High, vacant, and cold
D. Heating, ventilating, air-conditioning
257. When real property is sold by one person to another, the amount of money used to compensate
the seller is called
A. The income of the real property
B. The price of the real property
C. The value of the real property
D. The cost of the real property
258. A district is
A. An area with a neighborhood where all the properties are vacant
B. A type of neighborhood that is characterized by homogeneous land use
C. An area where city attorneys reside
D. Delineation if zoning classifications
259. Demand is one of the essential elements or characteristics of value, however, for demand to
influence value there must also be
A. Need C. Good sales technique
B. An adequate supply D. Purchasing power
260. Items that are built to be permanent and intended to be included with real property are
A. Trade fixtures C. Personal property
B. Chattel fixtures D. Real Estate
261. The concept of consistent use requires an improvement to be valued base on a use that is
consistent with the site’s highest and best use. This means
A. The highest and best use of the site as though vacant must always consider the
improvements thereon
B. The vacant land value can never exceed the improved value
C. The improvement value must be adjusted down if the land’s highest and best use is
different that the improved highest and best use
D. The highest and best use as improved would always be consistent with the “as vacant”
analysis
262. An existing site has improvement such as a building. Which of the following statements BEST
describes the highest and best use of the site?
A. If the improvement is a residence, then the land does not have a highest and best
B. It cannot be determined
C. It is automatically the current use since the site is improved
D. It may be different from the current use
263. Which principle of value suggest that the value of a property is equal to the present value of
the property’s projected income?
A. Balance C. Anticipation
B. Opportunity cost D. Substitution
264. One reason to estimate the highest and best “as though vacant” and “as improved” is
A. It necessitates a land value estimate for analytical purpose
B. To recognize when the improvements should be rated
C. To increase the size of the report, which increases the fee
D. To allow estimating physical depreciation
265. The value of a property excluding land as if disposed of the materials it contains, rather than for
its continued use without special repairs or adoption is called
A. Scrap value C. Special value
B. Liquidation value D. Salvage value
266. A decrease in land value is the result of
A. Wear and tear C. Functional obsolescence
B. Physical obsolescence D. Obsolescence
E. Market forces
o We do not depreciate land

o Three kinds of depreciation : 1) physical 2) functional and 3) economic obsolescence
267. An opinion of market value via the sales comparison approach is through the eyes of the
A. Well-informed sellers C. Uniformed buyers
B. Well-informed brokers D. Well-informed purchasers
268. The four forces that influence real estate values are
A. Eminent domain, police power, escheat, and taxation
B. Land, labor, capital and green space
C. Governmental, social, taxation, and economic conditions
D. Social, economic, governmental and environmental
269. Land values are never penalized because of the functional problems in existing buildings because
A. All of the above
B. Land can change
C. Buildings can removed or altered
D. Buildings do not contribute value
270. Market value is

A. Equal to market price
B. An estimate of a price that would have been negotiated for a sale today
C. A measure of value in use
D. Equal to coast to replace
271. The principle of ____________ states that the quality of a neighborhood has an impact on the
value of a property located within it.
A. Conformity C. Increasing and decreasing returns

B. Progression and regression D. Change
o Progression and regression are products of the Law of Attraction
272. An appraisal is best defined as:

A. An unbiased opinion of the nature, quality, value or utility of an interest in real estate
and related personally
B. An unbiased opinion of the most likely price for which a parcel of real estate would
sell at a given date
C. The process of studying the nature, quality, or utility of an interest in real estate in
which a value estimate is not necessarily required
D. The process of developing an opinion as to the market value or other defined value
of a specified interest in a specified point in time
273. A technique used by market analysis and appraisers that attempts to measure the current
economic activity and expected future economic growth in a specific geographic area is
commonly referred to as:
A. Site analysis C. Basic industry analysis
B. Economic base analysis D. Non basic industry analysis
274. Which of the following commonly accepted economic principles is used to explain that when
several parcels of property with substantially the same utility are available on the market, the
one with the lowest asking price will attract the greatest demand?
A. Substitution C. Contribution
B. Anticipation D. Balance
275. Giving a client a range of values rather than a single value opinion
A. Implies that you are pliable
B. Allows for a greater probability of correctness
C. Implies that you do not know you are doing
D. Is not allowed
276. Market value can be described as

A. The present worth of future benefits
B. The price a person paid for real property
C. Whatever someone will pay for something
D. The cost of the land plus the cost of the building
277. Replacement cost is best used

A. For non-residential properties only
B. To eliminate all functional obsolescence from the cost approach
C. For residential properties
D. To eliminate some functional obsolescence from the cost approach
278. An irregularly shaped lot is located in an area where the zoning setback, requires the owner may
seek what type of adjustment from the local authority?
A. Exception C. Special use permit
B. Variance D. Nonconforming use
279. What term best describes the effect of a power plant on the value of a nearby home?
A. Externalities C. Conformity
B. Balance D. Contribution
280. The test of legal permissibility includes all of the following requirements except
A. Compliance with supply and demand criteria
B. Deed and plot restriction
C. Zoning requirements, building codes, and historic district controls
D. Compliance with lease provisions
281. All legal rights such as riparian rights or easements, that “go with the land”, when title to the
land is transferred are known as:
A. Seizings C. Appurtenances
B. Easements D. Encroachment
282. Social, economic, governmental, and environmental influences that affect value are called
A. Laws D. Factors
B. Impacts E. Consequences
C. Forces
283. Owner A gives owner B an easement across A’s land to shorten the distance B has to travel to
reach land he owns. The land B owns has benefited by this easement and is known as the:
A. Dominant estate C. Servient estate
B. Estate in gross D. Lien estate
284. The method of estimating total replacement cost of a building that measures the total floor area
and multiplies this total by the current cost per square meter is referred to as which of the
following method?
A. Comparative unit method C. Quantity survey method
B. Unit-in-place method D. Builder’s method
285. Which of the following approaches to value sees market data?

A. Income approach C. All these approaches
B. Cost approach D. Direct sales comparison approach
286. Which approach would be best when appraising a 15 to 20 year old house?
A. Cost
B. Replacement cost new less accrued depreciation
C. Income comparison
D. Sales comparison
287. Given the following information:

o Building capitalization rate : 0.11
o Land capitalization rate : 0.09
o Land value as a percent of total value : 35 percent
What is the overall capitalization rate by using the band of investment approach?
A. 0.100 C. 0.110
B. 0.103 D. 0.097
288. A residence has been listed for sale for the last six months at a price of P1,249,000 and it has
not sold. In this market, the average marketing period is 45 days for this type of property.
A. The subject property’s market value could be higher than the list price
B. The subject property’s market value could be higher or lower than the list price
C. The subject property’s market value is less than the list price
D. The subject property’s market value could be lower than the list price
289. Land value can be estimated using all the following techniques except
A. The income method C. The cost method
B. The sales comparison D. The allocation method
method
290. The cost approach to value is generally MOST accurate when which of the following situation
exists?
A. The building is old and suffers from a great deal of depreciation
B. The building is new and is being used under its highest and best use
C. The building is old and reproduction or replacement cost is not known
D. A vacant tract of land is being appraised
291. A comparable property sold six months ago for P1,250,000.

Market investigation indicates the following:
o Location adjustment : +5 percent
o Time adjustment : +6 percent
o Age adjustment : -7 percent
Given the above information, what is the indicated value based on the comparable property?
A. P1,232,250 C. P1,325,000
B. P1,300,000 D. P1,293,860 (rounded)
▪ P1250,000 x 0.93 x 1.06 x 1.05 = P1293,862.50
292. Elements of comparison are

A. Items that represent the bottom line price after all of the adjustment
B. A weatherman’s comparison report
C. Items that represent a breakdown of the price based on a significant variable
D. The characteristics that cause the price paid for real estate to vary
293. A cost estimating method in which appraisers estimate the current cost of construction based
on the amount paid for the building when it was built is called
A. Cost engineered services C. Cost index trending
B. Segregated cost D. Unit-in-place method
294. Normally the amount of money a lender will agree to lend against a specific parcel of real estate
is based on which of the following prices or values?
A. Contract price
B. Assessed value
C. Contract price or appraised value, whichever is lower
D. Appraised value
295. The total loan payment made on a parcel of real estate during any one year is generally referred
as:
A. Equity C. Mortgage constant
B. Cash flow D. Debt service
296. A type of written report that provides none of the supporting data that the appraiser used to
determine the value estimate and includes no discussion on the particular methods used and
how any differences in valuation between methods were reconciled:
A. Letter of opinion report C. Draft final report
B. Full narrative report D. Form report
297. The final value opinion should be

A. Very precise
B. Never be rounded
C. Rounded to allow the lender to make the loan
D. Rounded to show that the number is an estimate, not a precise calculation
298. In the valuation process, when does the reconciliation of value indications to a final value
estimate take place
A. After completion of each approach
B. After completion of all three approaches
C. Periodically during the appraisal process
D. After the legal description is complete
299. The data of valuation for an appraisal is determined by which of the following?
A. The date the property is actually inspected
B. The actual date the appraisal is signed
C. Whatever date is specified in the appraisal report
D. The date the appraisal assignment is accepted
300. An appraisal report must reflect a credible estimate of value and must identify:
A. All of the above
B. The intended use of the report
C. The client and other intended users
D. Division of interest, such as the fractional interest, physical segment and partial
holding.
301. A bank underwriter is also the chief appraiser. She is licensed to do appraisals but now only
underwrites loans. When she reads an appraisal she is
A. An unlimited reviewer C. A technical reviewer
B. A contract reviewer D. An administrative reviewer
302. Neighborhood social influences include all of the following EXCEPT

A. Occupant age levels C. Vacancy rates
B. Occupant skill levels D. Population density
303. The declining balances of depreciation from year to year. A relatively large deduction is made
on the first year and gradually decreases from year to year.
A. Future depreciation C. Accelerated depreciation
B. Physical deterioration D. Accrued depreciation
304. Valuers comply with a valuations standard either by:

A. Any of these
B. Requirement placed upon them by law or regulation
C. Choice
D. The instructions of clients, intended users, and/or national societies or organizations
305. Anything which affects or limits the fee simple title to property, such as mortgages, easements
or restrictions of any kind is called:
A. Equity C. Encumbrances
B. Escheat D. Encroachment
306. Recent sales of comparable sites competitive with the subject site
A. Both A and B
B. Are the most reliable guide to the probable current market behavior and reactions
of informed buyers
C. Do not indicate any probable current market behavior and reaction of informed
buyers
D. None of these
307. The sudden removal of land from one parcel to another when a body of water, such as a river,
abruptly changes.
A. Usufruct C. Avulsion
B. Accretion D. Alluvium
308. A district is
A. A type of neighborhood that is characterized by homogeneous land use
B. Delineation of zoning classification
C. An area where city attorneys reside
D. An area within a neighborhood where all the properties are vacant
309. Land is unique because

A. No two parcels have the same owners
B. No two parcels have the same tax levies
C. No two parcels have the same soil composition
D. No two parcels can occupy the same space on the face of the earth
310. The leased fee interest consist of the following EXCEPT:

A. The right to express an opinion on the market price of a certain subject
B. The right to reversion of the land at the termination of the lease, that is, the right of
revision
C. The right to any adjustment for the improvements at the end of the lease (if there is
any, subject to provision of the lease of control)
D. The right to receive the rent provided for under the lease
311. In a high demand market, the cost of building a new property will increase substantially until
A. The supply increases because new builders get into the market
B. The charges from suppliers and subcontractors go down
C. It becomes impossible for prices to go higher
D. The BSP increases interest rate
312. The agency that now insures deposits in financial institutions is

A. HIGC C. PDIC
B. BSP D. GSIS
313. A stipulation authorizing mortgagee (creditor, lender) to appropriate the property as his own if
the mortgagor fails to pay the principle obligation at the stipulated time is called:
A. Pacto commissorion C. Pactum commissorium
B. Ad valorem D. Tacita reconducta
314. The exercise of police power by the municipality or city in regulating and controlling the
character and use of property is called:
A. Zoning ordinance C. Zoning
B. Writ execution D. Procuring cause
315. It is performed with the same basic method as simple linear regression, but the analysis is
expanded to include more than one dependent variable:
A. Simple regression C. Multiple regression analysis
B. Regression analysis D. Multiple analysis
316. A loss in property value from any cause.

A. Acceleration C. Obsolescence
B. Deterioration D. Depreciation
317. All of the following areas of regulation affect appraisers EXCEPT

A. PRC C. DTI
B. LGU Planning Office D. DSWD
318. Is a survey to determine the boundaries of each lot in a subdivision:

A. Complex subdivision C. Subdivision survey
B. Relocation Survey D. Simple subdivision
• It is relocation survey if subdivision is not mentioned.
319. A less expensive house tends to gain in value because of more expensive neighborhood housed
because of
A. Regression principle C. None of these
B. Progression principle D. Both of the above
320. Which of the following is NOT a part of the market value definition?
A. The property sells in 90 to 120 days
B. Both parties are well informed
C. Buyer and seller are typically motivated
D. Payment is made in cash or cash equivalent terms
321. A non-possessing interest held by one person in land of another whereby the first person in
accorded partial use of such land to a specific purpose is called:
A. Easement C. Eminent domain
B. Forced price D. Encumbrances
322. Plant and equipment are

A. None of these C. Intangible assets
B. Tangible assets D. Both of these
323. Economic influences include all of the following EXCEPT
A. Property value levels C. Occupant income levels
B. Property rent levels D. Crime levels
324. The main function of this government agency is to coordinate activities of government housing
agencies to ensure accomplishment of National Shelter Program.
A. National Home Mortgage Finance Corp.
B. Home Guaranty Corp.
C. National Housing Authority
D. Housing and Urban Development Coordinating Council
325. The sum of the asset accounts (less provision for depreciation, depletion, and amortization)
minus the liability accounts shown on the balance sheet refers to as:
A. Stockholders equity C. Book value
B. Net book value D. Asset value
326. A single-family neighborhood is located adjacent to an airport. Excessive noise caused by

airplanes flying overhead and the potential danger they create have adversely affected the
value of homes in the immediate area. Which basic value principle(s) does the foregoing case
illustrate?
A. Both A and B C. Internalities
B. None of these D. Externalities
327. Power of the government to take the private property for public use with payment of
compensation to the owner.
A. Escheat C. Condemnation
B. Eminent domain D. Fee simple
328. It is the reference point with known geographic position established by the Bureau of Land:
A. Tie Point C. None of these
B. Mode D. IVS
329. The following is truly a global valuation standard:

A. AVA C. one of these
B. USPAP D. IVS
330. In the valuation process, when does the reconciliation of value indications to a final value
estimate take place?
A. After the legal description is complete
B. After completion of all three approaches
C. After completion of each approach
D. Periodically during the appraisal process
331. It is a measure of how much the actual values of a population or sample deviate from the mean:
A. Mean C. Standard Deviation
B. Range D. Average Deviation
332. A legally nonconforming use is
A. A use that was illegally established and maintained

B. A use that was not legally established and maintained and still does not conform to
existing zoning
C. A use that was not legally established and maintained but the government is not
enforcing the laws
D. A use that was legally established and maintained but no longer conforms existing
zoning
333. The predominant depreciation category for a residential location on heavily traveled highway
is
A. Physical deterioration – long lived incurable
B. Physical deterioration – curable
C. Functional obsolescence – curable
D. External obsolescence – incurable
334. A land contract, also known as a conditional sales contract or installment sales contract, is
A. A sales contract with a mortgage loan
B. A sale of real property where the seller finances the sale and transfers the rights in
realty
C. A purchase agreement with many conditions on
D. A sale of real estate with the seller financing the sale but retaining the deed until
the loan is paid off
335. Preamble: In recognizing the _________ of his report, _________ a professional appraiser must
arrive at and report his opinion of ___________ within generally accepted standards of ethics
practice to elicit credibility and objectivity of the report.
A. Ethical standards; authenticity
B. Responsibilities to his client and other users; value
C. Standards of appraising and user; evaluation
D. Responsibilities to his colleagues and other users; cost
336. If a property has a net income ratio of .75 and a gross income multiplier of 9, what is the
indicated overall capitalization rate?
A. 6.75 percent C. 2.78 percent
B. 8.33 percent D. 12.00 percent
337. In valuation: the act of process of intrusion of an inferior class property usage other than the
highest and best use of the land.
A. Infiltration C. Process of valuation
B. Highest and best use D. Process of intrusion
338. An External Valuer is:

A. All of these
B. A Valuer who, together with any associates, has no material links with the client
C. A valuer who, together with any associates, has no material links with the subject of
the assignment
D. A valuer who, together with any associates, has no material links with an agent acting
on behalf of the client
339. The index method of estimating construction cost is based on

A. The cost of new improvements at current prices
B. The national cost average of all components
C. Book value
D. The original cost of improvements
340. A hectare of a land contains ________________ square meters.

A. 100,000 C. 1,000,000
B. 1,000 D. 10,000
341. Integrity requires a valuer not to

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

A. The amount obtainable from the sale an asset or cash generating unit in an arm’s
length transaction between knowledgeable, willing parties, less the cost of disposal
B. The income received after the marginal level of productivity is reached
C. An imaginary line connecting from the known geographic position to the point at
the corner
D. The geographical location where the sale took place which definitely affects the
selling price
343. An appraiser pays a “finder’s fee” to a license real estate agent without disclosing the amount
of the fee to the appraisal client.
A. USPAD does not have a provision on the matter
B. USPAP prohibits such practice (under management)
C. None of these
D. USPAP allows such practice
344. In what principles that the value of investments chosen can be measured in terms of the value
of investment options or opportunities foregone?
A. Principle of conformity C. Principle of balance
B. Principle of opportunity D. Principle of contribution
cost
345. A ____________ is an article that was once personal property, but that has been installed
in or attached to land or building so that such article is regarded in law as part of the real estate.
A. Domestic fixture C. All of these
B. Trade fixture D. Fixture
346. A yield rate used to convert future payments or receipts to present value
A. Discount rate C. Over all rate
B. Capitalization rate D. Split rate
347. Efficiency and Diligence require

A. Either a or b
B. A valuer should act promptly and efficiently in carrying out the client’s instructions
and should keep the client informed of the valuer’s progress
C. Both a and b
D. Instructions should be declined where circumstances preclude sufficient diligent
enquiry, quality of work, and completion within a reasonable time.
348. A lease in which the tenant pays all or most of the property changes in addition to the stipulated
rent:
A. Flat lease C. Modified gross lease
B. Gross lease D. Net lease
349. The form of deed used to return title to real estate to its owner when the debt secured by a
deed of trust is paid in full is the
A. Reconveyance deed C. Quitclaim deed
B. Tax deed D. Warranty deed
350. Refers to the rights which are inherent or appurtenant to ownership and it includes the right to
possess, to use, to dispose, to recover and to collect the fruits:
A. Quieting of title C. Torrens system
B. Fee simple D. Bundle of rights
351. Which statement is NOT a fundamental principle in the appraisal and assessment of real
property for taxation purposes as provided for under P.D. 464
A. The goal of property assessment shall be the equitable distribution of the tax burden
B. Real property shall be appraised at its current and fair market value
C. The appraisal of real property shall be uniform in each local political subdivision
D. Real property shall be classified for assessment purpose on the basis of its intended
use
352. Two recently sold properties selected for their similarities, which maybe compared to determine
the value of dissimilarities is known as :
A. Capital property C. Paraphernal property
B. Heterogeneity principle D. Matched pair
353. The city has planning department indicated a vacant residential lot in the flood zone cannot be
given building permit. This site
A. Has become scarce
B. Has lost nearly all utility
C. Has lost any effective purchasing power
D. Has lost all desirability
354. Period over which improvements to real estate contribute to property value
A. Effective age C. Remaining economic life
B. Economic life D. Actual age
355. A hold or claim which one person has upon property of another as security for a debt or change,
judgement, mortgage, taxes is :
A. Laches C. Quit claim
B. Mechanics lien D. Lien
356. Real property consists of

A. Single-family residences
B. Rights in realty
C. The right to use or occupy real estate
D. Land and all improvements thereon
357. This concept involves the development of value based on analysis of similar (but not identical)
properties using some measure of utility as the basis of comparison:
A. Percent of cost C. Condition
B. Comparable match D. Direct match
358. To arrive at net operating income, expenses are deducted from

A. Effective gross income C. Gross income
B. Operating profit D. None of these
359. The lessee pays the lessor a fixed percentage on the total amount transacted in the leased
property is called a:
A. Inflation-indexed lease C. Step-up lease
B. Percentage lease D. Flat lease
360. When a property’s highest and best use is likely to change in the near future, the prevailing
highest and best use is called a (n)
A. Interim use C. Pending use
B. Temporary use D. Alternative use
361. Real property includes

A. The physical land and appurtenances affixed to the land
B. Property that is not artificial
C. Any and all buildings on the subject site
D. All interests, benefits and rights inherent in the ownership
362. The estimated additional cash inflow at the end of the economic life of the subject property
under appraisal known as :
A. Reversion value C. Market value
B. Discounting D. Present value
363. One method of compensing for sales that involved different terms of financing is use of the
A. Cash equivalent technique C. Operating statement ratio
B. Loan-to-value technique D. Financing readjustments grid
364. A parameter used to describe a population which is the sum of all the variates refers to as :
A. Mode C. Average Deviation
B. Standard Deviation D. Aggregate
365. In real estate development, land is the last to be paid. Land gets what’s left over after labor,
coordination, and capital have been paid. In any real estate development projects, the more the
income left over for land, the higher the value of the land. In what principle is this?
A. Principle of surplus productivity
B. Principle of supply and demand
C. Principle of substitution
D. Principle of consistent use
366. A lender has quoted an interest rate of 5.5% per annum with monthly payments. What is the
interest payment in the first month for a P1,000,000 mortgage amount? Round your answer
A. P6,000 C. P7,000
B. P5,000 (rounded) 4583 D. P4,000
o Interest per month = Principal x Rate /mo. x Time (one month)
367. It is in this principle that property values are affected by influences and events originating outside
the property itself
A. Principle of conformity C. Principle of change
B. Principle of balance D. Principle of externalities

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COMPILATION OF PAST APPRAISERS EXAM With CES Annotation

a. Corner influence c. Cooperative interest

a. Over all rate c. Split rate

• Formula : OAR = Interest Rate + Recapture Rate

3. The method of construction cost or reproduction cost estimation:

a. Volume method c. Quantity survey method

a. The cost of constructing an exact replica building

a. The fair market value of the property

a. The capitalized income or rental method

7. The sales comparison approach relies on the principle of

• Sales comparison approach is the same as Market Data Approach

8. The transaction price of a property is its

a. Sales price c. Insurance value

• Price and cost are ACTUAL, while value is just an ESTIMATE

a. In arm’s length transaction c. Without any form of secondary financing

a. Reproduction cost c. Comparative cost

• Reproduction is EXACT replica or IDENTICAL, replacement is SIMILAR.

a. Adding or subtracting lumpsum amount

a. Defining the appraisal problem

• It is HBU conclusion not VALUE conclusion

a. Value in use c. Income approach

• Subjective value is the seller’s value – acting in his self interest

a. Cost approach c. Income approach

• RENT means income

a. Warranty need c. Quitclaim deed

• Example : 1) Redemption in a pacto de retro sale 2. Redemption iIn dacion en pago 3.

a. Add 10% to the price c. Multiply the price by 10%

• It means that the comparable has better location

18. The index method of estimating construction cost is based on:

a. The original cost of improvement New CPI = New Cost

a. Replacement cost c. Net capitalization

a. Replacement cost c. Net capitalization

21. Scheduled rent that is higher than market rent creates.

a. Overage rent c. Excess rent

• Scheduled rent is sometimes called CONTRACT RENT or actual rent.

22. Other name for contract rent is

a. Market rent c. Economic rent

23. Zoning is an excise of a government’s

a. Police power c. Right of condemnation

a. High properly tax rate c. Minimal tax base

a. Size of lot and building c. Number and type of rooms

a. Investment analysis c. Market analysis

27. Real properties are classified for realty tax purposes:

29. Those assets which are physical and material in nature:

• Example of intangible asset: 1. Goodwill, 2. Well experienced manager

a. Actual age c. Condition of sale

a. Land and anything permanently attached to the land

33. Which of the following examples BEST reflects investment value?

34. In the series 9, 7, 3, 9, 6, 5, 3, 7, 2, 3 the midrange is

Arrange first to: 2, 3, 3,3, 5, 6, 7, 7, 9, 9

a. Anticipation c. Highest and best use

• Substitution is to Market Data (sales comparison) or Cost Approach.

a. Neighborhood conformity c. Excessive demand

a. Accrued depreciation c. Sound value

• Building Value = Replacement or Reproduction Cost New less Accrued Depreciation

41. A lot with direct access to any street or highway?

a. Interior lot c. Landlocked

• It is a slanted square or rectangle.

43. The Market Data Approach is also known as…