a.

Court
b. City/Municipal Treasurer
c. Bank in the name of the lessor
d. Any of the above

8. When the interest of participation of condominium unit owners in the common area is
proportionate, the formula applied is

a. Unit area divided by total area of the common area

b. Unit area divided by total area of all condominium units
c. Unit area divided by total area of all condominium units and common area
d. Unit area divided by total floor area of condominium building

9. A bank’s acquired assets which part of its real estate inventories at the close of its accounting
period shall be classified as

a. Ordinary assets
b. Capital assets
c. Fixed assets
d. None of the above

10. Total refund to buyer for developer’s failure to complete the development within the
reglamentary period is equivalent to

a. 50% of total payment inclusive of amortization interest less penalty interest

b. 50% of total payment inclusive of amortization interest and penalty interest
c. 100% of total payment inclusive of amortization less penalty interest
d. 100% of total payment less penalty interest plus legal interest

11. In the cost approach value, physical deterioration is estimated by the formula

a. Economic life divided by chronological age

b. Chronological life divided by economic life
c. Economic life divided by effective age
d. Effective age divided by economic life

12. The principle of value which states that the value of a property tends to be enhanced when
there is reasonable homogeneity in use:

a. Principle of highest and best use

b. Principle of conformity
c. Principle of increasing returns
d. Principle of progression

13. Husband and wife can sell property to each other in the following circumstances except when

a. A separation of property was agreed upon in the prenuptial agreement