APPRAISAL REPORT

PICTURE OF PROPERTY

RESIDENTIAL HOUSE AND LOT

ADDRESS

PREPARED FOR:

JUAN DELA CRUZ

Property Registered Owner

CONFIDENTIAL
DATE OF THIS TRANSMITTAL LETTER

Mr. Juan dela Cruz

Property Owner

______________ Street, Valle Verde 5

Brgy Ugong, Pasig City, Metro Manila

Re : Appraisal of Property

Dear Mr. Dela Cruz :

Pursuant to your instruction, we have made an investigation and appraisal of a real estate property, a
residential house and lot, located at No. ______________, Valle Verde 5 Subdivision, Barangay Ugong,
Pasig City, Metro Manila and herewith submits our report.

It is our understanding that the appraisal shall be for possible sale and you wish us to render an opinion of
the fair market value of the property as of ________ – the day the property was actually inspected by the
undersigned appraiser.

The term fair market value, as used herein, is defined as the most likely value or amount in terms of
money at which the property would change hands between a willing buyer and a willing seller in an arms-
length transaction, in the open market, both having a reasonable knowledge of all the relevant facts,
neither being under compulsion to buy nor sell and both are acting in their own self interest.

Our report consist of –

This letter summarizing the result of our investigation;

Certificate of the appraiser;

Limiting condition;

Narrative report of land and improvement;

Plans showing the shape of the land and general location of the property and arrangement of the
improvements and representative photographs of the property.

Based on the above investigation and analysis of all relevant factors, and as supported by accompanying
narrative report, it is our opinion that the estimated value of the property are as follows:
 Fair Market Value

Land P 36,000,000.00

Building and other structures 5,500,000.00

Total P 41,500,000.00

THEREFORE, it is our opinion that the amount of FORTY ONE MILLION, FIVE HUNDRED
THOUSAND PESOS (P 41,500,000.00, Philippine Currency, fairly represents the fair market value of
the property as of __________________ subject to the attached limiting conditions.

We have made no investigation and assume no responsibility for the titles or liabilities against the
property appraised.

WE HEREBY CERTIFY that we have neither present nor prospective interest on the property or on the
value reported and our fee is not contingent to the value reported.

Respectfully yours,

Cesson Appraisal Corporation

By: Cesar E. Santos - Certified Property Valuer

PRC Appraiser’s License No. 1889
Until December 31, 2023

PTR No. _________________

Until December 31, 2021
Issued on _______________
At Marikina City, Metro Manila

CERTIFICATION OF THE APPRAISER

 DATE
___________________

I HEREBY CERTIFY THAT:

To the best of my knowledge and belief, the statements of fact upon which the analysis, opinion
and conclusion expressed in this report are based, are true and correct; that this report set forth all
of the limiting condition affecting the analysis, in accordance with the generally accepted
valuation principles and procedures and in conformity with the requirement of the Code of Ethics
applying to the Realty Appraisal Service in the Philippines and the Philippine Valuation
Standards.

I have neither present nor contemplated future interest in the property appraised, nor any personal
interest or bias on the subject matter or the parties involved in the appraisal.

This appraisal include land and building and other land improvement located at _____________
Street, Valle Verde 5, Pasig City, Metro Manila and was done directly by the undersigned.

In my opinion, the Fair Market Value of the property as of ________________, is estimated at :

FORTY ONE MILLION, FIVE HUNDRED THOUSAND PESOS

(P41,500,000.00 ), Philippine Currency

As of ( DATE OF INSPECTION)

CESSON APPRAISAL CORPORATION

By: Cesar E. Santos – Appraiser

PRC License No. 1889

 LIMITING CONDITIONS

1. All existing liens and encumbrances, if any, have been disregarded and the properties are
appraised as though free and clear under responsible ownership. The rights appraised are
presumed to be good and marketable. No responsibility is assumed for the matters legal in nature.

2. No instrument survey was made to pinpoint the exact location and boundaries of the property. It
is then assumed that the property as indicated on plans or as shown by owners/representatives is
the property described in the Transfer Certificate of Title.

3. Plots and other illustrative data used in the report are presented as aids in visualizing the property
and its environs. Although preparation of materials was based on the best available data, it should
not be considered as a survey nor scaled for size.

4. No soil analysis or geological studies were made in conjunction with this report.

5. Erasure on appraisal date and values invalid this report.

6. Neither the whole nor any part of this report and valuation, nor any reference thereto, may be
included in any document, circular or statement without our written approval of the form and
context in which it will appear.

7. This appraisal report is invalid unless it bears the service seal of CESSON APPRAISAL
CORPORATION

FORM-NARRATIVE REPORT
GENERAL
The report covers an investigation and appraisal of certain real estate property located at
_____________Valle Verde 5 Subdivision, Barangay Ugong, Pasig City, Metro Manila, Philippines. The
appraisal was made for the purpose of expressing an opinion of the fair market value of the property as of
________________________.

“Fair Market Value” as used herein is defined as the amount in terms of money at which the property
would change hands between a willing buyer and a willing seller in the open market both having
reasonable knowledge of all the relevant facts, neither under compulsion to buy or sell and with equity to
both.

In this definition, it is assumed that the title to the property is good, marketable, free from liens and
encumbrances, and in fee simple.

The rights appraised in this report are the property rights in fee simple, free and clear. Fee simple is
defined as a fee without limitation to any class of heirs or restrictions on transfer of ownership but subject
to the limitation of eminent domain, escheat, police power and taxation.

THE PROPERTY

The property subject to this appraisal includes land and building and other land improvement, located at
_______________ Street, Valle Verde 5, Brgy. Ugong, Pasig City, Metro Manila. Property identification
and description per title and tax declaration are as follows:

LOT DESCRIPTION PER TITLE:

 TCT No. - PT-68345

 Registry of Deeds
 Registered Owner
 Date Registered
 Title Serial No.
 Lot Area
 Street Frontage
 Average Depth
 Approximate shape
 Lot / Block No.
 Survey No.
- Pasig, Metro Manila
- Juan dela Cruz married to ___________
- ________________________________
- 1061991
- 400 square meters
- 16 meters fronting ___________Street
- 25 meters
- perfect rectangle
- Lot ___, Blk. ____
- (LRC) Psd-222577

LOT DESCRIPTION PER TAX DECLARATION

 Registered owner - Juan dela Cruz married to __________________

 Tax declaration number - _______________________________________
  Property identification no. - _______________________________________
 Lot area per TD - 400 square meters
 Classification - residential
 Actual use - residential

BUILDING AND OTHER STRUCTURES :

 Kind - two-storey, well ventilated concrete residential house

 Year built - 20 years ago more or less according to the owner
 Ground Floor Area:
o spacious living room, ceramic tiles
o family room (parquet flooring) with toilet and bath
o separate dining and breakfast area
 ceramic tile flooring
o spacious kitchen and informal kitchen
 Marble flooring
o maids and drivers quarters with common toilet and bath
o four (4) car garage ( 2 covered) – washout pebbles
o garden
o stock room at the back
o perimeter fence (CHB)
 Second Floor
o Stairs - wooden planks
o Flooring - Tongue and Groove (T&G) wooden flooring
o Three (3) bedrooms with built in closet in each
 with toilet and bath each with bath tub at master’s bedroom
 marble finish
o Family room (TV room)
 Roofing - Galvanized iron
 Exterior walls - CHB painted
 Interior walls - CHB painted
 Doors - panel and flush type
 Ceiling - plywood, painted
 Windows - glass on steel casement
 Estimated floor area : about 300 square meters

 Effective age - about 20 years old

 Maintenance
o Fair
 o Needs some minor repairs and facelifting
 Current tenant
o Owner
 Estimated depreciation
o 20% physical deterioration (because of age) - curable
o 5% functional obsolescence ( specially the façade) - curable
o 5% economic obsolescence
 ( back is fronting busy street – Lanuza) - incurable

NEIGHBORHOOD DATA

The property is located in an exclusive residential area occupied by affluent families. Valle Verde
Subdivision is composed of 6 phases ( Valle Verde 1 to 6). Adjoining neighborhood are mixture of
residential, commercial and industrial development. Valle Verde 5 is a residential subdivision with flat
terrain, concrete roads and curved and underground drainage system. The roads are 10 and 12meters wide
designed to carry light to heavy vehicle and pedestrian traffic load.

Some common landmarks in the vicinity are:

 Valle Verde 1, 2, 3, 4, 5 and 6

 Ortigas Business District
 Eastwood City
 Ortigas and Company Ltd Commercial and Condominium Projects
o Tiendesitas
o Commons (formerly occupied by Pasig City Hall)

COMMUNITY FACILITIES AND UTILITIES

Electricity (Meralco), water (Manila Water), and telephone communication services(PLDT) are available
in the area. Community facilities like public market, commercial centers, churches, private and public
schools are accessible from the property.

Public transportation is available along Lanuza (mostly taxis), jeepneys and buses along Ortigas Avenue.
Street lights, garbage collection, foot and mobile patrol of the Philippine National Police and other
community facilities and utilities are maintained by the city government of Pasig.

ZONING

Valle Verde Subdivisions are strictly for residential use only. Commercial and industrial uses are mostly
along C-5 Road and Ortigas Avenue.
HIGHEST AND BEST USE

On the prevailing usage of the neighborhood we are of the opinion that the current existing use of the lot
already represents the highest and best use of the property – being zoned as residential area.

Highest and best use is defined as the most probable use to which a property can be put. The opinion of
such use maybe on the profitable continuous use to which the property is adapted and needed, or that the
use which is the land may reasonably expected to produce the greatest net return to the land over a period
of time.

VALUATION

In arriving at the value of the property, the basic cost approach was adapted. Under this valuation process,
estimate is made of the current cost of reproduction new of the replaceable property in accordance with
the prevailing market price for material, labor, contractor’s overhead, profits and fees. Adjustments are
made to reflect depreciation resulting from physical deterioration and obsolescence and the value of the
land is added to indicate the value of the land is added to indicate the value of the property.

For valuation of land we have used the customary Market Data Approach whereby the value of the land is
based on sale and listing of comparable property registered with in the vicinity. The technique of the
approach, required the establishing of comparables by reducing reasonable comparative sale and listing
to a common denominator. This is done by adjusting the difference between the subject property and
those actual sales and listing regarded as comparable. The property used as basis of comparison is situated
within the immediate vicinity of the subject property. Our comparison was premised of the factors of
legal use, location, size and shape of the lot and time element.

In valuing land, records of recent sale and offering of similar land are analyzed and comparison is made
such factors as size, characteristic of the lot, location, quality and prospective use.

MARKETABILITY OF THE PROPERTY

 Positive Factors
o It is seller’s market at Valle Verde 5 Subdivision. It is an application of law of supply
and demand-more buyers few sellers. That is why there is an unbelievable appreciation of
property at Valle Verde Subdivisions. Demand is more on smaller lots because it is more
affordable.
 o Location of the property is another positive factor. It is In the midst of commercial
centers; very accessible to Makati, Mandaluyong, San Juan, Quezon City and other parts
of Rizal province

o Size and shape of the lot

 Negative Factors
o Physical depreciation of the property
 Physical - needs some repairs

o Functional obsolescence
 Design of the house, specially the façade

o Economic obsolescence
 The back of the property is a very busy road – Lanuza
 Absorb the sounds and pollution of the vehicles passing Lanuza Street
 Security reason

MARKET COMPARABLES AS OF ___________________

Sources:

 Lamudi, Property 24, Carousel, Locanto, MyProperty

 Fellow appraisers, fellow brokers, newspapers, bank acquired assets, property’s with
for sale sign
Lot area or house and lot

Asking price or actual selling price

Name of informant and contact no.

BIR ZONAL VALUE per sqm since ______________ ( source : www.bir.gov.ph)

 Street name / Subdivision - residential regular - P xxxxxxxx

MARKET VALUE COMPUTATION:

 FOR THE LOT

o Nearest comparable - P____________
o Plus or minus adjustment - ____________
o Estimated Land value - 36,000,000.00

 FOR THE IMPROVEMENT

 o Replacement Cost –New
 Estimated floor area of 300sqm. x P25K - 7,500,000.00
o Less : Depreciation (physical and functional)
 30% x P7.5M - 2,250,000.00
o Estimated building value - 5,250,000.00
o Fence and gate - 250,000.00
o Estimated value of improvements - 5,500,000.00

 ESTIMATED LAND AND BUILDING VALUE -

P41,500,000.00

PHP : Forty One Million Five Hundred Thousand Pesos

Philippine Currency, as of March 19, 2014

Appraised by:

Cesson Appraisal Corporation

By: Cesar E. Santos - Appraiser

PRC License No. 1889
Until _________________
PTR No._______________
Until _________________
Issued on _____________
At ___________________

CESSON APPRAISAL CORPORATION LETTERHEAD

January 8, 2007 APPRAISAL PROPOSAL

MR. _______________ – Director

Norwegian Mission Alliance, Phils.

Unit _________________ Building
Emerald Avenue, Ortigas Center
Pasig City, Metro Manila

Thru : Ms. ____________________

Dear Sir:

Greetings! Thank you for giving us another an opportunity to offer our services re-appraisal of several
properties owned by the above institution. Terms and conditions of this assignment are as follows:

 Subject properties - Real estate properties ( 12 sites) located in

Metro Manila, Rizal, Bulacan, and Cavite

 Purpose and scope of work - Fair market value determination

Actual ocular inspection to determine the extent of the
legal and highest and best-use of the properties subject
to limiting conditions stated in this report

 Timetable - 15 working days (excluding Saturdays and

Sundays ) starting from receipt of the following
requirements:

 Requirements - 1) Photocopies of titles and tax declarations

1) Authority to inspect
2) 50% Downpayment
3) Advanced advise to caretakers
 Fee - One Hundred Twenty Thousand Pesos
(Php 120,000.00) net of tax ( same fee as in 2005)

Thank you and we hope we could, again, be of service to your institution soon.

Yours faithfully,

Cesar E. Santos, cpv

President and Appraiser

CESSON APPRAISAL CORPORATION LETTERHEAD

January 17, 2007

MSM Philippines Asset Servicing Corporation

Unit 1112 Ayala Tower One and Exchange Plaza
Ayala Avenue corner Paseo de Roxas
Makati City, Metro Manila
Thru : Mr. Benedict Miranda - Director

Dear Sir:

Greetings! Thank you for giving us again another opportunity to offer our services to your company re-
appraisal of three (3) contiguous lots (fishpond and saltbed)) with an aggregate area of about 219
hectares, located at Barangay Bubog, Municipality of San Jose, Province of Occidental Mindoro.

The purpose of this assignment is to determine its fair market value at the time of inspection and our fee
is THIRTY FIVE THOUSAND PESOS (Php35,000.00) net of government tax and which covers the
following:

 Transportation expenses ( air and land fare )

 Board and lodging ( hotel fees and food)
 Representation expenses ( Register of Deeds and Assessor’s Office)
 Other incidental expenses

Soft copies of the report shall be emailed upon arrival to Manila or on Friday evening ( January 19,
2007).

Again thank you and our best regard.

Yours faithfully,

Cesar E. Santos, cpv

President and Appraiser