MBR Real Estate Manual 2013

12.3 Real Estate Math – Engineering

By Engr. Wilfredo L. Segovia
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MATH FUNDAMENTALS

1. FRACTIONS
A fraction is a numeric representation showing a part of the whole. A fraction is expressed in two ways:
1) As a whole number divided by another. Example “1/2” or “one-half”.
(Numerator/denominator).
2) As a decimal number. Example: The fraction “1/2” can also be expressed as 0.50 which is
actually “50/100”. Decimal fractions use a base of 10, 100, 1,000 etc.
Examples: 0.2 - means 2 parts out of 10 or 2/10
0.02 - means 2 parts out of 100 or 2/100
0.002 - means 2 parts out of 1,000 or 2/1000

2. PERCENTAGE
Percent (or the symbol “%”) is actually a fraction multiplied by 100. In effect a “percent” means the
number of parts in a base of 100. Thus: 10 % - means 10 parts of 100 or 10/100
To obtain the percentage, always multiply a fraction by 100. Vice-versa, to obtain the fraction in decimal
form, divide the percentage by 100.

3. LINES
A line connects two points. Lines are either straight or curvilinear. Properties are bounded by lines.

4. POLYGON
A polygon is an area enclosed by several lines. Land is divided into lots. Lots are polygons.

5. ANGLES
An angle is the amount of rotation by a line against another line. Angles are measured in radians or
degrees.-minutes-seconds. 2Pi radians = 360 degrees. 1 degree = 60 minutes; 1 minute = 60 seconds.

6. BEARING
A bearing is a line's direction, given in terms of two parameters: the quadrant where the line lines and its
angle of deviation from the true North-South line.

7. TIME MEASUREMENT
Since interest rates are time-bound, it is necessary to make certain assumption when computing interest for
periods that are fractions of a year (either as “days” or “months”). In most instances, it is assumed that a
year is composed of 360 days or 12 months for simplicity. In some instances the exact figure of 365 days
(except in leap years) is also used, but rarely. In general, unless otherwise specified, interest rates are “per
annum” or for one year.

PHYSICAL PROPERTIES OF REAL ESTATE

All kinds of real estate property are identified by a description which includes the following measurable
elements: Nature of the property, Location, Size, and Measurements.

1) Nature of the property – land, house, house+lot, building, condo, warehouse, etc.
2) Location – address; plus sometimes the property’s distance from known landmarks;

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3) Size: Math is involved here: size is usually given in the form of area measure.
Examples: Square meters, hectares, number of stories…
Note: 1 hectare = 100 x 100 meters or 10,000 square meters

Areas are used to define not only land but also buildings. For buildings, what is measured is the floor area.

Floor Area Terminologies

 Building footprint – refers to the area of the land covered by a building. Some portions of the
land have to be set aside as “setbacks” required by the law.
 Gross floor area – refers to the sum total of all the floor areas bounded by the exterior face of
walls in each floor or storey of a building;
 Net floor area – usually refers to the total floor areas that are salable or rentable.
 Common areas – refers to the areas used in common, such as stairs, elevator shafts, hallways,
parking lots, etc.
 Efficiency – refers to the ratio of net floor area vs gross floor area.
Example: The net floor area is 7,000 sq. meters. The gross floor area is 10,000 sq.meters. The
efficiency is 70%.
 Floor area ratio (FAR) – is a recently adapted measure of building density. FAR is the ratio of a
building’s gross floor area vs. the lot area. FAR is used in Makati City to limit density; it is also
used in most subdivisions developed by Ayala.

Example: The lot area is 1,000 sq. meters. After checking with the Zoning department, you are
informed that the maximum FAR is 4. Thus the maximum gross area of the building should not
exceed –
Gross floor area = 4 x 1,000 or 4,000 sq. meters.

In Makati City, the areas devoted to parking and driveways are exempted from the FAR limit. How
many stories can you build if the building footprint is to be set at 50% of the lot area?
Lot area = 1,000 sq. meters
Footprint = 50% of 1,000 = 500 sq. meters.
Number of stories = FA / 500 = 4,000 / 500 = 8 stories.

SURVEYING

Surveying refers to the process of measuring and locating land. Technical professionals who undertake
this work are called “Land Surveyors.” Land surveying used to be just a module of civil engineering which
required a 2-year study. When land surveying was professionalized, the land surveyors were required to
take a full 5-year academic courses as “Geodetic Engineers” and they became licensed through a board
examination. Thus land surveyors are now called geodetic engineers.

Kinds of Land Surveys

1) Cadastral surveys.

Cadastral surveys are large-scale surveys initiated by government in order to locate and define boundaries
of large tracts of lands for the purpose of classifying them as to alienable and disposable or for reservation
as public domain. Private cadastral surveys are also needed to define large parcels of privately-owned
properties.

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A major purpose of cadastral surveys done by government is to put in place the reference points to be used
by both public and private surveyors to tie down the exact location of a piece of property.
Cadastral survey maps can easily be identified when you are able to read “metes and bounds” – or
descriptive information either found along property lines or on a tabulated format on the same sheet.
Cadastral maps also contain the parcel, block, lot numbers.

2) Subdivision surveys.

Subdivision surveys are just like cadastral surveys but it’s purpose is to show the subdivision of a large
tract of land into smaller parcels or lots. Subdivision surveys can be two types –

a) Simple subdivisions – shows merely a large parcel of land divided into several smaller lots.
b) Complex subdivision – shows a large parcel of land divided into small lots as well as other spaces
allocated for roads, parks and playgrounds, and spaces for community facilities.

2) Topographic surveys

Topo surveys are those made to measure the variation of levels of a property, thus defining its terrain.
Topo survey maps can be identified when you see numerous series of curvilinear dotted lines all over the
entire map. Each of these lines represents a “contour line” which is identified by a number known as the
elevation. The number “25” means all the points over which that line passes is 25 meters (or whatever
units) from the reference elevation or “datum”. By reading the spacing of contour lines and the contour
interval, one can visualize the terrain. Terrain means the slope of land – from flat to steep. Topo maps
also contain additional physical information such as the location of large trees, utilities, buildings and
structures, etc. The amount of information can be defined by the client. Topo surveys are needed by
planners and engineers who will develop subdivision and other types of real estate projects.

3) Hydrographic surveys

Hydro surveys are similar to topo surveys but these define the levels of land beneath waters. Hydro
surveys are needed to define depths of bodies of water – rivers, lakes, and coastal areas. They are needed
by planners and engineers who will develop water-related facilities such as dams, river-bank
improvements, marinas, ports and harbors, as well as reclamation projects.

Surveying Techniques
Surveying is a science that has evolved over generations as technology became available.

1) Transit-and-tape. The old method of surveying used telescope-like instruments called transits.
Transits allowed the surveyor to peer and focus the scope on an identified point. As the scope’s
position is set, a compass-like device beneath the scope can record the line’s angle of deviation from a
reference line. Thus, the line’s direction is established. To establish distance, the tape-men make an
actual measurement using a cloth tape. To measure elevations, the same procedure is used except that
levels are read from one point to another using the leveled scope focused on a rod with measurements
– the stadia rod.

2) Electronic techniques. Today, geodetic engineers still use a scope to sight direction but the modern
transit is now equipped to measure distance by bouncing and receiving a pulse which allows the
equipment’s electronics to immediately define distance. Points are also located using GPS – Global
Positioning Systems. GPS involves detecting the positions of several orbiting satellites, and through
electronic triangulation, determining a point’s exact coordinates on the surface of the earth.

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3) Photogrammetry. Slow-flying aircraft with special cameras mounted on its belly are used. Numerous
aerial photographs are needed to create topographic maps and preliminary cadastral maps. Aerial
surveying is more useful for large-scale topo surveying. The numerous aerial photos are digitized into
electronic equipment which are able to correlate dimensions and ground levels and then generate topo
maps. Aerial photography must be supplemented by ground crews who establish control points and
also define the extent of vegetative cover.

Basic Measurements of Land

Land is described not just by giving its size or area but also by defining its boundaries. You can read the
boundary description in a typical TCT (Transfer Certificate of Tile). A piece of land is a polygon (a shape
with many sides). Each side is a line. A line is defined by giving its direction and its length.
Example: “N 45 degrees 30 minutes E, 100 meters.”
N45 deg 30min E is the direction, while 100 meters is the length.

Directions are described using the points of the compass: NSWE. A line's direction is defined as a bearing
and a distance. A bearing consists of an angular deviation and a quadrant location. The angle is given in
degrees-minutes-seconds. There are only 4 quadrants: NW, NE, SW, SE. The maximum degrees within a
quadrant is only 90 degrees, thus no line will have more than 90 degree deviation. Using the clock’s
minute hand as an analogy, the NE quadrant is up to 15 minutes, SE from 15 to 30 minutes, SW from 30 to
45 minutes and NW from 45 to 60.

If a line is like the clock’s hands at 6:00, then it is “Due North” if going upwards, and “Due South”
going downwards. It follows that if the clock shows 3:45, the line is “Due West” going to the left
and “Due East” going to the right.

Example: (Clock analogy – the time is 6:05). Thus the minute hand is 1/3 of the quadrant and
deviates from the NS line by 30 degrees. The line’s description will read: “N 30 degree, 0
minutes, E”. N 45 degrees E will be like a line where the minute hand of the clock is at 6:07:30.
While S 45 degrees E will be a line where the clock reads 6:22:30. S 45 degrees W will be
6:37:30, while N45 degrees W will be 6:52:30.

It is very important to make sure that lines which follow another are correctly defined in terms of which
quadrant the line lies. If there’s an error in the quadrant, the lines will not connect and the polygon will not
close.

Property Lines
A lot's boundary is defined by a technical description. This can be found in two documents: the lot's title
or TCT and the lot's survey plan. In the TCT, the technical description is given in narrative form like this:

“.....Starting at Point 1, being 1,000 meters S 45 degrees E from BLLM No. 234, and proceeding S 88
degrees 00 minutes E, 25.00 meters to Point 2; thence S 2 degrees 0 minutes W, 15 meters to Point 3;
then N 88 degrees 00 minutes W, 25 meters to Point 4; then N 2 degrees 00 minutes E, 15.00 meters to
the point of beginning Point 1; containing an area of 375 sq. meters...”

(Note: BLLM is the technical name of the nearest reference point, usually established by government at a
fixed location and defined with coordinates.) The above narrative description appears complex. You can
simplify it by making a table, similar to what you will find in a lot survey plan:

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Line 1-2 S 88 degrees E 25 meters

Line 2-3 S 2 degrees W 15 meters
Line 3-4 N 88 degrees W 25 meters
Line 4-1 N 2 degrees E 15 meters

How to Plot a Technical Description.

Plotting a property’s boundary will require the use of tools to measure both distance and angles.
Manually – a ruler and a protractor. With a computer, you can use a software called CAD. Let's plot
the above technical description.

1) On a large sheet of paper, mark the point of beginning “Point 1”.

2) Draw Line 1-2. Using a protractor, measure an angle 88 degrees and draw it 25 meters long
within the SE quadrant. (Use a scale, such as 1 cm = 1 meter or smaller).
3) From Point 2, draw Line 2-3. Use the protractor to measure the angle 2 degrees SW and draw it
15 meters long.
4) Repeat the process for Lines 3-4 and 4-1, etc..

By making a rough plotting, you can often detect if there are errors in the technical description.
Mostly the errors are in terms of bearings and the polygon does not close. The detailed accuracy of
property measurements are usually the concern of surveyors or geodetic engineers. However, real
estate professionals also need a fundamental understanding about how property boundaries are
defined.

Global Mapping
Part of engineering in real estate is mapping. Global mapping involves locating points on the earth’s
spherical surface. This is done by measuring angles from reference points – latitudes and longitudes.
Global mapping relies on three reference lines:

The first reference line is the vertical axis about which the earth spins – this is the “vertical” line thru the
center of the sphere from the north pole to the south pole. It is called the earth’s axis.

The second reference line is a “horizontal” circular line drawn at the sphere’s midpoint, equidistant from
the north and south poles. This is the equator. Circular lines drawn around the earth’s surface, parallel to
the equator, are lines of latitude; also called parallels. The angular distance between the equator and
points north or south of it is called the latitude.

The third reference line is a great “vertical” circular line drawn along Greenwich, England. This is the
zero or prime meridian. Circular lines parallel to these, always intersecting the poles, are called longitude
lines or meridians. The angular distances of such lines from Greenwich is called longitude.

For precision, degrees of latitude and longitude can be further subdivided into minutes and seconds: there
are 60 minutes (') per degree, and 60 seconds (") per minute. For example, a coordinate might be written
65° 32' 15". Degrees can also be expressed as decimals: 65.5375, degrees and decimal minutes: 65° 32.25',
or even degrees, minutes, and decimal seconds: 65° 32' 15.275". All these notations allow us to locate
places on the Earth quite precisely – to within inches.

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A degree of latitude is approximately 69 miles, and a minute of latitude is approximately 1.15 miles. A
second of latitude is approximately 0.02 miles, or just over 100 feet.

A degree of longitude varies in size. At the equator, it is approximately 69 miles, the same size as a degree
of latitude. The size gradually decreases to zero as the meridians converge at the poles. At a latitude of 45
degrees, a degree of longitude is approximately 49 miles. Because a degree of longitude varies in size,
minutes and seconds of longitude also vary, decreasing in size towards the poles.

Measurements of Buildings

Measurements of buildings is simpler. Usually, the measurement lines are shown only along the X-Y grid.
The grids are numbered, 1,2,3,etc in one direction and lettered in the other direction. Measurements are
given in metric units, mm, cm, or meters. One meter = 100 cm = 1000 mm.
The measurements of a building are usually found in the architectural plans of the building. If it still to be
constructed, these plans are called the Construction Drawings. If it is an older completed building, these
are called the “As-built Drawings.” Many old buildings do not have As-builts, so you may have to make
your own actual measurements.

Basic Map Elements

1) Orientation. A map usually shows a symbol to identify its porientation. Usually, this will appear like
an arrowhead pointing upward. By usual convention, UP is North.

2) Scale. A map will contain either a numerical scale or a graphic scale.

Numerical Scale: A numerical scale is usually expressed as a RATIO. Example: 1:100 A numerical
scale has no units because it can be used for any unit.

Graphic Scale: A graphic scale appears as a drawing of a bar divided into segments. Each segment
represents a measure of distance.

Both scales can be found in most maps. Thus, if the numerical scale is 1:100, it could show a bar of 5
centimeters long divided into 5 segments, each to mean 100cm or 1 meter.

3) Map Symbols. Numerous map symbols can be found, depending on its use. Symbols are of two
types – Abbreviations and Icons. Abbreviations is self-explanatory. Icons are small drawings
representing something.

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Sample questions
Q. A topographic map is a –
a) Graphical sketch of directions to a specific place;
b) A plan showing the metes and bounds of a large tract of land;
c) A plat showing blocks, lots and streets;
d) Plan showing the terrain and essential features of a piece of property.

Q. The description defining property lines in terms of their directions and distances –
A. Metes and bounds B. Cardinal directions C. Property route D. Schedule of property lines

Q. A legal description is –
A. Street number, name and locality of the property;
B. Narrative description of the property’s size, shape and improvements;
C. The property’s TCT number and nothing else;
D. A line by line technical description of the property’s boundary lines.

Q. A line giving distance and direction to a known monument set up by the government’s land
management agency –
A. Monument locator B. Tie line C. Reference point D. Point of origin

Q. The “Property Identification Number” can be found in the –

A. Transfer certificate of title B. Original certificate of title
C. Comprehensive land us plan D. Tax map of LGU

Q. A building density limit set by zoning laws which is derived as a multiple of the lot area –
A. Height limit B. Floor area ratio C. Zoning classification D. Lot setbacks

Q. Imaginary lines around the earth used to define location in which the value of zero lies along the
equator;
A. Meridians B. Latitude C. Longitudes D. Coordinates

Q. The location on the earth used as the reference point for longitudes –
A. Greenwich B. Equator C. Iceland D. North Pole E. South Pole

Q. The unit of measure used to describe lines of latitude and longitude in global mapping –
A. Miles B. Kilometers C. Angles D. Parallels

Q. What is the equivalent of a property of 2 hectares in acres?

A. 4.94 acres B. 2.47 acres C. 20,000 sq. meters D. 3 acres

Q. Survey method using pictures taken from a flying object and converting them into maps –
A. Photogrammetry B. Hydrographic survey C. Aerial photography D. Cadastral survey

Q. Bearings found in land survey plans designate –

A. Measurement of a property line
B. Angle of deviation from the North-South line;
C. Angle of deviation from the West-East line
D. All of the above.

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Q. The following information can not be found in the Memorandum of Encumbrances at the back
of a title document, except –
A. Technical description of the lot
B. Number of the previous title
C. Description of the tie line
D. Cancellation of mortgage
E. Lot owner’s name

Q. A surveying plan symbol used to designate a survey for a subdivision –

A. BLLM B. CBM C. PBM D. BBM E. PSU

Q. Instrument used to define location using latitude and longitude –

A. Transit / Theodolite B. Compass C. GPS device D. Total Station

Q. In a technical description, the property corners are represented by –

A. Letters B. Numbers C. Letters and numbers D. None of the above

Q.A survey of a large area of land in which corrections are made to account for the curvature
of the earth.
A. Plane survey B. Global survey C. Topographic survey D. Geodetic survey

Q. Information found in a topographic map which when analyzed will define the terrain of the
property –
A. Contour lines B. Spot elevations C. Benchmarks D. All of the above

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