 REA Fundamentals by the Professional Regulatory Board of

 PART II: Professional Appraisal Practice Real Estate Service for or in expectation of
 SET Exam 1 a share in the commission, professional fee,
 SET Exam 2 compensation or other valuable
 SET EXAM 3 consideration.
 PART 1: FUNDAMENTALS a. Real estate appraiser
 PART 2: PROFESSIONAL PRACTICE b. real estate assessor
 SET A MOCK EXAM REA c. Real estate consultant
 SET B MOCK EXAM REA d. real estate salesperson
 SET C MOCK EXAM REA e. Real estate broker
 SET D – MOCK EXAM REA 4. A duly registered and licensed natural
 SET 2 REA MOCK EXAM person who, for a professional fee,
 SET 1 MOCK EXAM REA commission or other valuable consideration,
 GENERAL/FUNDAMENTALS OF REAL acts as an agent in a real estate transaction
ESTATE to offer, advertise, solicit, list, promote,
 Choose the BEST Answer mediate, negotiate or effect the meeting of
the minds on the sale, purchase, exchange,
REA Fundamentals mortgage, lease or joint venture, or other
similar transactions on real estate or any
1. A duly registered and licensed natural interest therein.
person who works in a local government a. Real estate appraiser
unit and performs appraisal and b. real estate assessor
assessment of real estate properties, c. Real estate consultant
including plants, equipment, and d. real estate salesperson
machineries, essentially for taxation e. Real estate broker
purposes. 5. A duly registered and licensed natural
a. Real estate appraiser person who, for a professional fee,
b. Real estate assessor compensation or other valuable
c. Real estate consultant consideration, performs or renders, or offers
d. Real estate salesperson to perform services in estimating and
e. Real estate broker arriving at an opinion of or acts as an expert
2. A duly registered and licensed natural on real estate values, such services of
person who, for a professional fee, which shall be finally rendered by the
compensation or other valuable preparation of the report in acceptable
consideration, offers or renders professional written form.
advice and judgment on: (i) the acquisition, a. Real estate appraiser
enhancement, preservation, utilization or b. real estate assessor
disposition of lands or improvements c. Real estate consultant
thereon; and (ii) the conception, planning, d. real estate salesperson
management and development of real e. Real estate broker
estate projects. 6. In corporate practice of real estate service,
a. Real estate appraiser there shall be at one license real estate
b. real estate assessor broker for every
c. Real estate consultant a. 25 accredited salesperson
d. real estate salesperson b. 35 accredited salesperson
e. Real estate broker c. 20 accredited salesperson
3. A duly accredited natural person who d. 40 accredited salesperson
performs service for, and in behalf of a real e. 30 accredited salesperson
estate broker who is registered and licensed 7. what is PRBRES
c. 1
d.
Compiled by Miguelle L. Dela Fuente
 a. Philippine regulating board of real estate
service
b. Philippine regulation board of real
estate service
c. Philippine regulatory board of real estate
service
d. Philippine regulatory board of real estate
salesperson
8. Who is the Chairperson of PRBRES
a. Jose Arnold M. Tan
b. Rafael M. Fajardo
c. Ofelia C. Binag
d. Lovelika T. Bautista
e. Pilar M. Tores-Banaag
9. Who is the Chairman of PRC
a. Jose Y. Cueto
b. Eduardo G. Ong
c. Yolanda D. Reyes
d. Teofilo S. Pilando
10. Refers to any natural or juridical person
engaged in the business of developing real
estate development project for his/her own
account and offering them for sale
a. Real estate person
b. Real estate developer
c. Real estate development project
d. Real estate consultant
e. Real estate dealer
11. Refers to an official in the local government
unit, who performs appraisal and
assessment of real properties, including
plants, equipment and machineries for
taxation purposes.
a. Valuer
b. Local assessing operation officer
c. Appraiser
d. Tax Mapper
e. Assessor
12. Composition of the board of PRBRES
a. 1 chairperson and 3 members
b. 1 chairperson and 4 members
c. 1 chairperson and 2 members
d. 1 chairperson and 7 members
e. 1 chairperson and 5 members
13. For Real estate salesperson to be
accredited by the board must at least meet
the ff. requirements of (2021_
a. at least high school graduate and 80
credit units of seminar and training
b. at least 1 year of college and 12 credit
units of seminar and training
c. at least high school graduate and 12
credit units of seminar and training
d. at least 2 years of college and 8 credit
units of CPD seminar
14. Any violation of RA 9464, including violation
of IRR shall meted the penalty of a fine of
not less than______ or imprisonment of not
less than______ upon discretion of the
court
a. 100,000.00 and 6 months
b. 50,000.00 and 2 years
c. 100,000.00 and 2 years
d. 100,000.00 and 1 year
15. In relation to question number 633. In case
the violation is committed by an license real
estate service practitioner, the penalty shall
be_______the aforesaid fine and
imprisonment
a. Tripled
b. doubled
c. fivefold
d. reclusion perpetua
e. one half
16. The realty service practice can be
performed by juridical persons, except: 8
a. Real estate salesperson
b. Real estate consultant
c. Real estate broker
d. All of the above
e. Real estate appraiser
17. The national integrated organization of
natural persons duly registered and
licensed as real estate service practitioners
a. Accredited and Integrated
Professional Organization
b. Professional Regulatory Board of Real
Estate Service
c. Professional Regulation Commission
d. Philippine Association of Real Estate
Practitioners
e. None of the above
18. Conducts licensure examinations for the
practice of the real estate service
procession
a. Accredited and Integrated Professional
Organization
b. Professional Regulatory Board of Real
Estate Service
c. Professional Regulation Commission
d. Philippine Association of Real Estate
Practitioners
e. None of the above
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19. The minimum educational requirement for
an applicant for a real estate broker’s
license is: (2021)
a. Holder of BSREM degree
b. 108 units in college
c. 72 units in college
d. 144 units in college
e. 82 units in college
20. A broker’s complaints for non-payments of
commission by the developer shall be filed
with:
a. HLURB
b. BTRCP
c. HUDCC
d. Regular Court
e. NHMFC
21. A licensed real estate practitioner is
qualified to be appointed as member of the
Professional Regulatory Board of Real
Estate Service provided that prior to his/her
appointment, he/she has been an active
licensed practitioner for at least:
a. Twenty years
b. Five years
c. Fifteen years
d. Three years
e. Ten years
22. To constitute negligence or failure to
disclose or ascertain to any person with
whom a broker is dealing relative to the
property and within his knowledge at the
time of the transaction, what matters must
the broker fail to disclose?
a. Previous owner of property or history of
title
b. Fair market value of the property
c. Location, topography, and shape of
property
d. Material fact, data or information
e. Whether property is updated in tax
payments
23. The scope of brokerage as follows, but not:
a. Authority to look for property
b. Engagement to look for a buyer
c. Procurement of insurance for properties
secured by real estate
d. Procurement of loans secured by real
estate
e. Procurement of tenants for rental
properties
24. Any of these acts shall be grounds for
revocation of license except:
a. Procurement of Certificate of
Registration of real estate service
practitioner by fraud or deceit
b. Unprofessional or unethical conduct
c. Allowing an unqualified person to
practice the profession by using one’s
certificate of registration
d. Non-payment of dues
e. Misleading ads
25. Under the Code of Ethics, the following is
considered ethical:
a. Negotiate a property listed directly with
the owner if the listing broker goes out of
town for a few days and cannot be
contacted
b. Should cooperate with other brokers on
property listed provided they are
members of any national real estate
broker’s association
c. Use the services of the salesman of
another broker provided the salesman is
paid the agreed upon commission
d. Willingly share with other brokers the
lessons from his experience and
study
26. The national integrated organization of
natural person duly registered and license
as real estate service practitioner
a. Philippine association of real estate
practitioner
b. Philippine realtors board
c. Philippine regulation commission
d. Accredited and integrated
professional organization
e. All of the above
27. Any of these acts shall be ground for
revocation of license except.
a. non payment of dues
b. engaging in the practice of the
profession during the period of ones
suspension
c. unprofessional or unethical
d. allowing an unqualified person to
practice the profession by using ones
certificate of registrations
28. Realty service practice can be performed by
juridical persons except
a. real estate consultant
b. real estate broker
c. real estate appraiser
d. real estate sales person
e. all of the above
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29. What should be indicated by the broker in c. bind the principal in the contract
his letterhead, dry seal, sigh board, d. place for sale sign in the property
advertisement or other announcement in e. cooperate with other broker
relation to real service practice 35. Real estate practitioner to be appointed as
a. price of the property member of the PRBRES provided that the
b. address of the owner prior his appointment he has been active for
c. ptr number at least
d. license number a. 5 years
e. house number b. 20 years
30. Real estate broker must not encourage the c. 15 years
following act when with a sale transaction to d. 10 years
help the client reduce cost e. 25 years
a. undervalue the amount in the deed of 36. Real estate service practitioner consist of
sale the following except
b. pay to BIR where the property is located a. real estate sales person
c. pay the proper taxes on time b. real estate assessor
d. register immediately the sale with the c. real estate appraiser
ROD d. real estate broker
e. pay the taxes on sale on time e. real estate dealer
31. The following acts are unethical except 37. The following subject in the real estate
a. delaying submission of formal offer that broker exam licensure exam except
he had received from a prospective a. property management
buyer in the hope of securing a higher b. subdivision development
offer c. real estate laws and taxation
b. keeping a special bank account, d. fundamentals of property ownership
separate and distinct from his own e. code of ethics and responsibilities
funds, for all monies received in trust 38. Act as agent of a party in a real estate
for other persons such as clients transaction to offer, solicit, list, promotes.
money and similar items Mediate, negotiate or effect the meeting of
c. disclosing the client confidential the minds on the sale, purchase, exchange,
personal information to a fellow broker in mortgage, lease or joint venture or other
order to facilitate the sale of the client similar transactions in real estate or any
d. encouraging the parties to a sale to interest therein
indicate a consideration lower than the a. real estate consultant
actual selling price b. real estate appraiser
32. Renewal of professional id card of resp c. real estate assessor
a. every year d. real estate broker
b. 2 years e. real estate sales person
c. 3 years 39. The board may reinstate any revoked
d. 4 years certificate of registration
e. 5years a. for reasons deemed proper and
33. Minimum requirement for applicant for real sufficient
estate broker exam is b. upon application and compliance with
a. 80 units in college the require CPE
b. 60 units in college c. after the expiration of 2 years from the
c. Holder of vocational date of revocation
d. BS REM degree d. none of the above
e. High school graduate e. all of the above
34. Real estate broker is usually authorized to 40. Following are restriction of property rights
the following acts except except
a. advertise the listing a. zoning
b. look for the property b. escrow
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 c. taxation b. Equipment
d. escheat c. real estate
41. The best evidence of ownership is d. property
a. ax declaration 48. Real properties used for family homes or
b. Vicinity map house and lot where the family resides
c. Torrens title a. life estate
d. None of the above b. real estate
e. Technical description c. fee tail
42. Refers to the compulsory successional d. remainder
rights granted by the law and the same e. homestead estate
cannot be taken by anybody except when 49. Doctrine which reserve to the state the full
alienated during the lifetime of the testator ownership of all natural resources or natural
with consideration wealth that may be found in the bowels of
a. Legitime the earth.
b. intestate a. public domain
c. Succession b. regalian doctrine
d. hier c. res allicujos
e. testate d. stewardship principle
43. Immovable or real property in favor the e. res alienate
easement is established 50. Right to the state to en act laws and enforce
a. servient estate them for the safety, order, health, morals
b. fixture and general welfare of the public
c. dominant estate a. Escheat
d. legitime b. eminent domain
e. land estate c. police power
44. Immovable or real property subjected to the d. taxation
easement established e. zoning
a. servient estate 51. Power of the state to imposed and collect
b. fixture takes and other charges on real estate
c. dominant estate a. Escheat
d. legitime b. eminent domain
e. land estate c. police power
45. Buyers who paid installment of less than 2 d. taxation
years are also protected by the Maceda law e. zoning
and entitled to a grace period of___days 52. Reversion of privately owned properties in
from the added their installment become favor of the state upon the death of the
due and demandable owner who is not survived with any heir
a. 30 days a. escheat
b. 15 days b. police power
c. 20 days c. zoning
d. 25 days d. eminent domain
e. 60 days e. taxation
46. Maceda , how many times the can the 53. Power of the state to take private property
buyers exercise his rights for public use upon payment of just
a. once every 10 years compensation
b. once every 3 years a. Escheat
c. once every 2 years b. eminent domain
d. none of the above c. police power
e. once every 5 years d. taxation
47. Anything which is or maybe the object of e. zoning
appropriation
a. Tax d. asset
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54. Refers to the used of restrictions of a 60. The absence of marriage settlements, or
particular areas or delineation of allowable when the regime is void what system shall
areas for use govern
a. Escheat a. co ownership
b. eminent domain b. extra judicial
c. police power c. judicial settlement
d. taxation d. capital property
e. zoning e. absolute community of property
55. Under the phil constitution that every 61. Exclusive property brought by the husband
property owners are bound to used or to the marriage as his own.
utilized their lands in a manner that will a. co ownership
promote welfare and benefits not only for b. extra judicial
themselves but also for the state c. B. judicial settlement
a. public domain d. capital property
b. regalian doctrine e. absolute community of property
c. res allicujos 62. Exclusive property brought by the wife to
d. stewardship principle the marriage as his own.
e. res alienate a. co ownership
56. Owner of the property adjoining or abutting b. extra judicial
the bank of river c. Paraphernal property
a. Avulsion d. capital property
b. land owner e. absolute community of property
c. Accession 63. Right of common dominion which two or
d. land lord more persons have in spiritual part of the
e. riparian owner property or thing which is not physically
57. Property owned by the state in its divided
proprietary or private capacity which is not a. co ownership
devoted to public used or public service and b. extra judicial
the development of national wealth c. Paraphernal property
a. public domain d. capital property
b. regalian doctrine e. absolute community of property
c. res allicujos 64. Increase in value of real estate without any
d. stewardship principle effort or expense of the owner
e. patrimonial property a. avulsion
58. Any and unknown deposit of money, b. accession
precious object or jewelry and the lawful c. adhesion
ownership thereof is unknown. Its d. erosion
ownership belongs to the land 65. Acquisition of alienable land of the public
a. yamasita treasure domain by homestead patent, free patent,
b. alluvium sales patent, government awards
c. hidden treasure a. private grant
d. minerals b. inheritance
e. accession c. involuntary grant
59. System of land registration by which the title d. public grant
is recorded becomes indefeasible, absolute 66. The process by which the current of the
and imprescriptible river, creek or torrens segregated from the
a. Torres system estate a known portion and transfer it to
b. Tax declaration another estate
c. Allen system a. reclamation
d. Bonds b. accretion
e. Torrens system c. avulsion
d. alluvium
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67. The right of an owner-lessor to receive the 74. A deed should be recorded because
contract rent and reversion of the property a. Recording gives public notice of the
at the end of the lease is called: transaction and sets the priority
a. Fee simple b. It is required by law
b. Leasehold c. Title does not pass until the deed is
c. Lease fee estate recorded
d. Net lease d. Recording makes the deed a legal
e. None of the above document
68. A legal provision which requires agreement 75. The addition to the land through processes
for the sale of real estate to be in writing of nature, such as deposits of soil carried by
and subscribed to by the parties to be streams.
enforceable by action a. avulsion
a. Defeasance clause b. alluvium
b. Parole clause c. accretion
c. Statute of Fraud d. usufruct
d. Enforceability clause 76. The sudden removal of land from one
e. Evidentiary clause parcel to another when a body of water,
69. Real property consists of such as a river, abruptly changes.
a. Rights in realty a. Avulsion
b. Land and all improvements thereon b. alluvium
c. The right to use or occupy real estate c. Accretion
d. Single-family residences d. usufruct
70. Real property includes 77. The soil gradually deposited by the process
a. Any and all buildings on the subject site of accretion, usually considered to belong to
b. All interests, benefits, and rights the owner of he land to which it is added.
inherent in the ownership of real a. avulsion
estate b. alluvium
c. The physical land and appurtenances c. accretion
affixed to the land d. usufruct
d. Property that is not artificial 78. Land is unique because
71. What are the considerations in determining a. No two parcels have the same soil
whether something attached to real property composition
is a fixture? b. No two parcels have the same owners
a. method by which the item is attached; c. No two parcels have the same tax levies
adaptability of the item for the land’s d. No two parcels can occupy the same
ordinary use space on the face of the earth
b. relationship of the parties; intention of 79. The supply of land is
the person in placing the item in the land a. Increasing all the time
agreement of the parties b. Infinite
c. both a and b c. Established by the surveyors
d. none of the above d. Finite
72. The highest form of real property ownership 80. The concepts of land are
is a. Land is immobile, durable, finite and
a. homestead estate useful
b. leasehold estate b. Social, economic, governmental and
c. fee simple legal, geographic and environmental
d. life estate c. Land, labor, capital, and
73. Jackfruit that fell on the ground are entrepreneurialism
a. ordinarily real estate d. Leasehold, leased fee, and fee simple
b. both of the above 81. Knowledge of land value is required for all
c. ordinarily personal property of the following except
d. none of the above a. property taxation
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 b. fire insurance
c. a ground lease
d. a grazing lease
82. Real estate is
a. The rights in realty
b. The physical land and appurtenances
affixed to the land
c. What transfers on the day of closing
d. The "bundle of rights"
83. Items that are built to be permanent and
intended to be included with real property
are
a. Trade fixtures
b. Personal property
c. Real estate
d. Chattel fixtures
84. The terms “real estate” and “real property”:
a. Mean exactly the same thing in all cases
b. Are defined to refer to the physical land
and the bundle of rights respectively
c. Are both important concepts in appraisal
d. Both (b) and (c)
85. The value most commonly sought in real
estate appraisals is
a. Investment value
b. Insurable value
c. Value in use
d. Market value
86. The four agents of production are
a. Land, labor, capital, improvements d.
Land, improvements, labor, materials
b. Land, labor, capital, entrepreneurship
c. Land, labor, capital, money
87. The value of improved residential real
estate is most influenced by
a. Passage of time
b. Brokers opinions of the value of
properties
c. Changes in shopping patterns for
consumers of goods and services
d. Cost of` construction increases
88. Real property has value because a
a. a. It is nearby
b. It is desirable
c. It is popular
d. It provides future benefits
89. When real property is sold by one person to
another, the amount of money used to
compensate the seller is called
a. The cost of the real property
b. The price of the real property
c. The value of the real property
d. The income of the real property
90. A single- family home owner who builds a
new and unique structure will commonly
find that
a. The uniqueness will cause the market to
like it and pay more for it
b. Properties that do not conform to the
popular designs will sell for more
c. By definition, uniqueness means that
fewer people will want to bu y it
d. The market will pay as much for this
property as any other because of its
unique nature
91. When demand for housing increases, the
supply
a. Increases immediately
b. Is unaffected
c. Increases slowly
d. Will diminish
92. Overproduction of new homes
a. Causes oversupply and lower prices
b. Causes increases in demand
c. Causes prices to increase
d. Causes the market to move toward a
state of equilibrium
93. The city planning department indicated a
vacant residential lot located in the flood
zone cannot be given a building permit. This
site
a. Has lost nearly all utility
b. Has lost all desirability
c. Has become scarce
d. Has lost any effective purchasing power
94. Demand for real estate may be affected by
a. Increasing population and employment
b. Increases in purchasing power
c. Availability of mortgage financing
d. All of the above
95. A less expensive house tends to gain in
value because of more expensive
neighborhood houses because of
a. Progression Principle
b. Both of the above.
c. Regression Principle
d. None of the above.
96. A good’s capacity to satisfy human desires
or needs is known as
a. Creative demand
b. Functional obsolescence
c. Utility
d. Effective demand
8
97. Two homes in the same addition have the a. buyer’s market
same amenities, size, features, and b. corner influence
location. One is priced at P1,000,000 and c. across the fence value
the other is priced at P1,100,000. d. property line
a. The lower-priced home will sell quickly. e. corner influence
b. The lower-priced home will attract 103. A _______ is an article that was once
more demand. personal property, but that has been
c. The lower-priced home will get more installed in or attached to land or a building
showings. so that such article is regarded in law as
d. The lower-priced home will sell for the part of the real estate.
full list price. a. Fixture
98. In a high demand market, the cost of b. domestic trade
building a new property will increase c. Trade fixture
substantially until d. all of the above
a. It becomes impossible for prices to go 104. A trade fixture:
higher a. Contributes to the value of the property
b. The supply increases because new to which it is attached
builders get into the market b. Contributes nothing to the value of
c. The charges from suppliers and real estate
subcontractors go down c. Is considered, but given no value by real
d. The BSP increases interest rates estate appraisers
99. The four forces that influence real estate d. Both (b) and (c)
values are 105. Which of the following courses would
a. Social, economic, governmental, and benefit a professional appraiser?
environmental a. real estate finance, land use planning,
b. Land, labor, capital, and green space real estate law
c. Eminent domain, police power, escheat, b. urban sociology, demographics,
and taxation information systems
d. Governmental, social, taxation, and c. All of the above .
economic conditions d. None of the above.
100. Synergy or Plottage is 106. An appraisal may include a(n)
a. The process whereby large parcels of a. property description
land are divided into lots and recorded in b. opinion of value
the register of deeds c. estimate of market value
b. Is the assemblage of two or more d. all of the above
parcels of land 107. The reliability of an appraisal depends on
c. Is the name of the discount given when the
larger parcels sell for more per hectare a. knowledge and judgment of the
than smaller ones appraiser
d. An incremental increase of value that b. accuracy of the data used
results when two or more sites are c. Both a and b.
combined to produce greater utility d. Neither a nor b.
101. The length of a tract of land along a street is 108. An appraisal of current market value is
called the land’s considered to be accurate for.
a. depth a. 90 days
b. frontage b. one year 20
c. b. width c. until the property is sold
d. abutment d. date of appraisal
102. Refers to prices or values of land adjacent 109. Appraisals are always used
to or “across the fence” from railroad, a. To make residential mortgages
pipeline, highway or other corridor real b. to settle lawsuit
estate. c. To settle divorces
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 d. to solve problem that involve real
estate values
110. What term is used to describe a study of
the cost -benefit relationship of an
economic endeavor?
a. Investment analysis
b. Feasibility analysis
c. Cash flow analysis
d. Market analysis
111. The mayor of a small town recently hired
you to estimate the value of a new one-
story, three- bay fire station. The fire station
was built last year at a cost of P2.5 million
(land and buildings). Similar-size d, one
year-old commercial buildings in
comparable locations are selling for P2
million. lf you appraise this building for
approximately P2.5 million, you probably
have conveyed
a. Market value
b. actual use
c. Investment value
d. value in transition
112. You were recently asked to appraise the
Midnight blue hostel. The bank asked you to
value the property for loan purposes. The
comparables sales you used in this analysis
were all sales of the entire operation. The
income used in your calculation was based
on the rental rate of each sleeping room
and the sales at the restaurant and the bar.
You are most likely appraising
a. Market value of the fee simple interest
b. Market value of the leased fee interest
c. Going-concern value
d. Value in use
113. Investment value is best measured by
a. Market price to a specific investor
b. Market value to a specific investor
c. The cost of acquiring a competitive
substitute property with the same utility
to a typical purchaser
d. The present worth of anticipated
future benefits to a specific investor
114. Estimating market value requires
identification of the desires and priorities of
a. Well-informed buyers and sellers
b. A typically informed purchaser
c. A fully informed seller
d. A typically informed seller
115. Market value is based on
a. insurable value
b. cost
c. most probable price
d. value in use
116. Which of the following is not a part of the
market value definition?
a. Buyer and seller are typically motivated
b. The property sells in 90 to 120 days
c. Payment is made in cash or cash
equivalent terms
d. Both parties are well informed
117. Julita Cruz owns a vacation home near a
small town almost 1 kilometers from the city
in which she lives and works. She doesn’t
use her vacation house more than three
weeks every year. The last time she stayed
there, she noticed that a gas station had
been built a few hundred yards down the
road. After talking to the owner, she
discovered that a zoning change had been
put into effect to allow construction of a new
shopping center on land adjacent to the gas
station. While Ms. Cruz’s property was not
rezoned, she realizes that it won’t be
suitable as a vacation retreat once the
shopping center is built. Which basic value
principle(s) does the foregoing case
illustrate?
a. Highest and best use (HABU)
b. conformity
c. change
d. all of the above
118. Two bookstores are located on the same
city street, and both have had good
business for ten years. One store is
improved with new displays, better lighting,
computerized inventory control, and a snack
bar. Because the store is part of a chain,
reSET ing costs are absorbed without
general increase in prices. The other
bookstore begins losing customers. Which
basic value principle(s) does the foregoing
case illustrate?
a. competition
b. contribution
c. Both a and b.
d. None of the above.
119. 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
10
 principle(s) does the foregoing case financially feasible, and maximally
illustrate? productive
a. Internalities b. Physically correct and legally possible
b. externalities c. In existence already and legal
c. Both a and b d. Physically possible and appropriate
d. None of the above 126. Highest and best use analysis requires
120. A church in a residential area is an example an estimate of the use as though vacant
of and as improved to
a. police power a. Estimate the value of the improvements
b. a nonconforming use b. Ensure that appraisers recognize that
c. forecast absorption the properly could be worth more without
d. a private restriction the buildings than with them
121. An homeowner purchased two adjacent lots c. Estimate functional obsolescence
in a tract subdivision 20 years ago and built caused by inappropriate improvements
a single-unit residence entirely on one lot, d. All of the above
utilizing the second lot as a side yard. The 127. The concept of consistent use requires
homeowner has decided to build a smaller an improvement to be valued based on a
home on the vacant side lot and retain the use that is consistent with the site’s
existing home as a rental. What term highest and best use. This means
applies to the second yard? a. The highest and best use of the site as
a. Surplus land though vacant must always consider the
b. Vacant site improvements thereon
c. Excess land b. The highest and best use as improved
d. Underutilized site would always be consistent with the "as
122. The value of improved residential real vacant" analysis
estate is most influenced by c. The improvement value must be
a. Passage of time adjusted down if the land’s highest
b. Brokers opinions of the value of and best use is different than the
properties improved highest and best use
c. Changes in shopping patterns for d. The vacant land value can never exceed
consumers of goods and services the improved value
d. Cost of` construction increases 128. When a property’s highest and best use
123. A buyer invests in a small strip center is likely to change in the near future, the
because she believes the property will net prevailing highest and best use is called
P350,000 per year. This is an example of a(n)
a. Anticipation a. Pending use
b. Change b. Temporary use
c. Competition c. Interim use
d. Substitution d. Alternative use
124. The statement “property values are created 129. A legally nonconforming use is
and sustained when the characteristics of a a. A use that was legally established
property conform to the demand of its and maintained but no longer
market" refers to conforms to existing zoning
a. Use value b. A use that was illegally established and
b. Contribution maintained
c. Conformity c. A use that was not legally established
d. Supply and demand analysis and maintained and still does not
125. To be considered the highest and best use, conform to existing zoning
a use must be d. A use that was not legally established
a. Physically possible, legally and maintained but the government is
permissible, appropriately justified, not enforcing the laws

11
130. The purpose of regulating the real estate different residents replace the lower-
service practitioners practice in the income residents
Philippines is to c. A group of complementary land uses
a. Protect the public from dishonest realty d. A part of the life cycle of a market area
practitioners. in which property values are stable and
b. Protect realty practitioners from unfair the maintenance levels are adequate
competition. 137. Linkages are
c. Upgrade the standards of realty service a. The devices used to change a property
practice. from one use to another
d. All of the above. b. The relationships between a buyer and
131. Market area life cycles include seller in a real estate deal
a. Growth, stability, decline, and c. Time-distance relationships between
revitalization a property use and the supporting
b. Growth, stability, decline, and facilities
gentrification d. The tools necessary to market real
c. Growth, stability, appreciation, and estate
decline 138. The scientific study of population statistics
d. Growth, level of appreciation, and is
decline a. scientography
132. Neighborhood social influences include all b. egmentation
of the following except c. demography
a. Population density d. forecasting
b. Occupant age levels 139. What form of diffusion is represented by the
c. Occupant skill levels spread of Shoe Mart (SM)?
d. Vacancy rates a. cascade.
133. The economic base is b. relocation.
a. The lower line in a graph showing the c. reverse hierarchical
economy of a community d. stimulus.
b. The ratio of basic industries to technical 140. A real estate market is
Industries in a community a. A shopping center office of a realty
c. An inexpensive, large string instrument company
d. The economic activity that enables it b. A group of individuals or firms that
to attract income from outside its are in contact with one another for
borders the purpose of conducting real estate
134. Economic influences include all of the transactions
following except c. A list of potential buyers for the subject
a. Occupant income levels d. A list of potential sellers who have
b. Crime levels property similar to the one requested by
c. Property rent levels the buyer
d. Birth rate 141. What will be the best tool for locating the
135. Governmental influences include all of the next Jollibee fast food restaurant in a city?
following except a. GPS (Global Positioning System).
a. Tax burdens b. GIS (Geographic Information
b. Zoning, building, and housing codes System).
c. Special assessments c. Microsoft Words.
d. Changes in property use d. Remote Sensing.
136. Gentrification is 142. The industry competition which arises from
a. A class of citizens who live in blighted profits refers to
areas a. Principle of Change
b. A process in which older homes in a b. Principle of Substitution
neighborhood are remodeled and c. Principle of Conformity
d. Principle of Supply and Demand
12
 e. Principle of Competition
143. The value of a property will reach to its
maximum level when the factors of
production such as: land, labor, capital,
coordination or entrepreneurship are in
balance refers to
a. Principle of Balance
b. Principle of Substitution
c. Principle of Conformity
d. Principle of Anticipation
e. HABU
144. The principle of increase and decreasing
returns applied to a portion or the whole of
an improvement refers to
a. Principle of Anticipation
b. Principle of Contribution
c. Principle of Conformity
d. Principle of Substitution
e. HABU
145. The net income remaining after the cost of
labor, capital and coordination have been
paid refers to
a. HABU
b. Principle of Substitution
c. Principle of Anticipation
d. Principle of Surplus Productivity
e. Principle of Conformity
146. The result of reasonable degree of
architectural homogeneity and compatible
land uses brought about by market
attitudes, societal trends, economic
conditions and public policy refers to
a. HABU
b. Principle of Substitution
c. Principle of Conformity
d. Principle of Anticipation
e. Principle of Utility
147. The meeting desires and requirements of
human beings. It is not only the capacity to
give satisfaction in use but also the power
to excite desire for continued possession
refers to
a. HABU
b. Principle of Substitution
c. Principle of Conformity
d. Principle of Anticipation
e. Principle of Utility
148. The factor where the value is increased if
supply is reduced by effective demand,
resulting in scarcity refers to
a. Principle of Anticipation
b. HABU
c. Principle of Supply and Demand
d. Principle of Consistent Use
e. Principle of Contribution
149. That factor where the property is cannot be
valued on the basis of one use for land and
another use of improvements refers to
a. Principle of Consistent Use
b. HABU
c. Principle of Anticipation
d. Principle of Substitution
e. Principle of Contribution
150. Refers to the most profitable and likely
use of the property at the time of
appraisal. It refers to that which in all
probability will yield the maximum return at
a given time. It is the first necessary
consideration in studying a tract of land to
estimate its value.
a. Principle of Supply and Demand
b. Principle of Contribution
c. Principle of Substitution
d. Principle of Anticipation
e. Principle of Highest and Best Use
151. Is the amount that maybe recovered when
the property will be retired or disposed at a
future time.
a. Salvage Value
b. Scrap Value
c. Market Value
d. Principle of Substitution
e. Principle of Anticipation
152. Is the fair market value of the land in a
specific zone or area as established by the
BIR.
a. Salvage Value
b. Scrap Value
c. Market Value
d. Zonal Value
e. Principle of Contribution
153. One which states that the maximum value
of a property tends to be set by the cost of
purchasing an equally desirable and
valuable replacement property, as the basic
principle that underlies the Market Data
Approach of Sales Comparison,
a. Principle of Anticipation
b. Principle of Highest and Best Use
c. Principle of Substitution
d. Principle of Supply and Demand
e. Principle of Contribution
13
154. To be considered comparable to the subject 161. The cost of improvements identical in
property, a comparable must have been design and material to those of the subject
sold property is called the subject’s
a. in an arm’s-length transaction a. reproduction cost
b. with a conventional mortgage b. replacement cost
c. without any form of secondary financing c. sales price
d. for all cash d. market value
155. One method of compensating for sales 162. The cost of improvements identical in
that involved different terms of financing is utility to those of the subject property is
use of the called the subject’s
a. financing readjustment grid a. reproduction cost
b. loan-to-value ratio b. replacement cost
c. cash equivalency technique c. sales price
d. operating statement ratio d. market value
156. Recent sales of comparable sites 163. In using the cost approach to appraising,
competitive with the subject site the estimated construction cost of
a. Are the most reliable guide to the improvements usually will be based on
probable current market behavior and a. their original cost
reactions of informed buyers. b. the cost of new improvements at
b. Do not indicate any probable current current prices
market behavior and reaction of c. book value
informed buyers. d. the national cost average of all
c. Both a and b. components
d. None of the above. 164. The index method of estimating
157. Site valuation techniques include construction cost is based on
a. Sales comparison method; allocation a. the original cost of improvements
method; abstraction method b. the cost of new improvements at current
b. Subdivision development method; prices
ground rent capitalization; land residual c. book value
method d. the national cost average of all
c. both a and b components
d. none of the above 165. The amount of entrepreneurial profit
158. Another term for developer’s profit is a. reflects the success of the project
a. contractor’s profit b. is based on how project expenses are
b. entrepreneurial profit categorized
c. surplus productivity c. always be the same, provided the
d. management profit project is completed within its estimated
159. Depending on market practice, budget
entrepreneurial profit can be estimated as d. cannot be estimated accurately
percentage of 166. The predominant depreciation category for
a. direct and indirect costs plus land value a residential location on heavily traveled
b. the value of the completed project national highway is
c. both a and b a. Physical deterioration—curable
d. none of the above b. Physical deterioration—long-lived
160. Barricade around the construction site is a incurable
building c. Functional obsolescence—curable
a. direct cost d. External obsolescence—incurable
b. indirect cost 167. The predominant depreciation category
c. overhead expense for severe termite damage throughout a
d. incidental expense structure
a. Physical deterioration—curable

14
 b. Physical deterioration—long-lived
incurable
c. Functional obsolescence—curable
d. External obsolescence—incurable
168. The ratio of total operating expenses to
effective gross income is the
a. operating expense ratio
b. net income ratio
c. effective gross income ratio
d. break-even ratio
169. The ratio of net operating income to
effective gross income is the
a. operating expense ratio
b. net income ratio
c. effective gross income ratio
d. break-even ratio
170. The ratio of the operating expenses plus
annual debt service to potential gross
income is the
a. operating expense ratio
b. net income ratio
c. effective gross income ratio
d. break-even ratio
171. To arrive at net operating income,
expenses are deducted from
a. operating profit
b. gross income
c. Effective gross income
d. None of these
172. In the formula for the operating expense
ratio
a. operating expenses are divided by
effective gross income
b. effective gross income is divided by
operating expenses
c. potential gross income is divided by
effective gross income
d. effective gross income is divided by
potential gross income
173. In the formula for the net income ratio
a. effective gross income is divided by
potential gross income
b. potential gross income is divided by
effective gross income
c. effective gross income is divided by net
operating income
d. net operating income is divided by
effective gross income
174. The data needed for an appraisal by the
income approach using direct capitalization
are
a. the potential gross income from the
property, which includes the annual
income from all sources; the amount of
the expected annual effective gross
income from the property, estimated by
subtracting anticipated vacancy and
collection losses from potential gross
income;
b. net operating income, found by
deducting normal annual operating and
other expenses from the effective gross
income; the capitalization rate for the
property; that is, the rate that can be
applied to the property’s net annual
income, the result being the appraiser’s
estimate of the property’s value;
c. both a and b
d. none of the above
175. While working on an appraisal of a
residential property in a new home
subdivision, the appraiser finds that the
builders have a total of 100 home sites
currently offered for sale. In measuring
market demand the appraiser notes that all
of the builders are currently averaging 2
new sales contracts per month (combined),
and are expecting to sell 24 homes within
the next year. What conclusion could be
drawn with regard to the 100 available
home sites and a market period of the next
12 months?
a. The market is in a condition of supply
and demand.
b. The market is in a condition of balance.
c. The market is in a condition of
oversupply.
d. The market is in a condition of
undersupply.
176. For land sales to be used as comparables,
they must be
a. competitive with the subject
b. relatively recent
c. open market transactions
d. all of the above
177. A bad floor plan would generally be
classified as
a. physical depreciation
b. economic obsolescence
c. functional obsolescence
d. economic deterioration
178. The valuation technique in which land and
building are valued separately is
15
 a. The income capitalization approach d. legal and illegal investments
b. The sales comparison approach e. open and shut transactions
c. Linear regression 186. Zoning is an exercise of the
d. The cost approach a. equity courts
179. Land valuation techniques include b. police powers
a. Subdivision development, depreciated c. Environmental Protection Agency
cost, consensus d. Right of condemnation
b. Sales comparison approach, consensus, e. Right of escheat
extraction 187. Is the amount paid by the lessee of a house
c. Sales comparison approach, or flat fee of a commercial bldg.
allocation, extraction a. economic rent
d. Assessment multipliers, assessor’s b. rental
opinions, multiple regression multipliers c. interest
180. Land value can be estimated using all of the d. market price
following techniques except e. lease
a. The sales comparison method 188. The revenue derived from the use of land
b. The cost method and of the forces inherent to land
c. The income method a. economic rent
d. The allocation method b. rental
181. Improvement cost data can be obtained c. interest
from d. price
a. Builders e. lease
b. Cost Manuals 189. It is the price of any commodity in its
c. Sales of new homes market at a specified time
d. All of the above a. economic rent
182. In economics, the four factors of production b. rental
are c. interest
a. land, labor, capital, and improvements d. market price
b. land, labor, capital and e. lease
entrepreneurship 190. Functional utility depends on
c. land, labor, capital and money a. zoning
d. land, improvements, labor and materials b. age of equipment
e. land, labor, site, and improvements c. wear and tear on the structure
183. Which of the is NOT an agent of d. insurance requirements
production? e. tastes and standards
a. land 191. Value in use is
b. transportation a. subjective
c. labor b. objective
d. capital c. readily measurable
e. entrepreneurship d. a market phenomenon
184. Political forces affecting value may include e. synonymous with market price
a. life-styles and living standards 192. The value added to total property value by a
b. topography particular component is an example of the
c. athletic levels and recreation facilities principle of
d. government spending and taxation a. substitution
policy b. anticipation
e. primary registration and turnout c. change
185. What are the two categories of tangible d. contribution
property? e. conformity
a. real property and personal property 193. The concept that the value of a particular
b. intangible property and real property components is measure by the amount
c. real estate and intangible property
16
 that its absence would detract from the d. None of the above.
value of the whole is 200. Plant for the supply of electricity, gas,
a. opportunity cost heating, cooling or ventilation and
b. substitution equipment such as elevators
c. competition a. Should be reflected in the value of the
d. contribution real estate interest
e. conformity b. Would not normally be reflected in the
194. The market loss cause by depreciation in an value of the real estate interest
older structure may be offset by all of the c. Both of the above.
following EXCEPT d. None of the above.
a. architectural interest 201. Plant and equipment are
b. historical registration a. Tangible assets
c. strong demand relative to supply b. Intangible assets
d. strong supply relative to demand c. Both of the above.
e. renovation of the structure d. None of the above.
195. Studying appraisal helps a person 202. Intangible assets that can have an impact
a. to improve value estimation skills on the value of plant and equipment include
b. to pass the real estate broker’s license a. production records
examination b. patents
c. to understand other real estate courses c. operating software
d. to communicate with appraisers d. All of the above.
e. all of the above 203. The value of patterns and dies is often
196. Plant and Equipment are inextricably linked to
a. tangible assets, other than realty. a. associated intellectual property rights
b. tangible assets, other than personality. b. operating software
c. intangible assets, other than realty. c. Both of the above.
d. intangible assets, other than personality. d. None of the above.
197. Assets that are inextricably combined with 204. The period over which property may be
others and that may include specialized profitably used is
buildings, machinery, and equipment. a. Invested Capital
a. Plant b. Capital Structure
b. Machinery c. Going Concern
c. equipment d. Economic Life
d. Business asset 205. Valuations of plant and equipment can
198. Individual machines or a collection of be carried out using any of the following
machines. A machine used for a specific approaches:
process in connection with the operation of a. the sales comparison approach.
the entity. b. the cost approach (depreciated
a. Plant replacement cost)
b. Machinery c. the income capitalization approach
c. equipment d. All of the above.
d. Business asset 206. Which of the following types of property is
199. For assets in the public sector, the subject to ad valorem taxation?
assumption equivalent to a business a. property owned by a religious
continuing as a going concern is that the organization and used for a religious
public sector assets purpose
a. Will continue to be used for the b. new industrial plants that state and local
provision of the relevant public good governments have induced, with tax
or service. exemption as an incentive, to locate
b. Will cease to be used for the provision of within their jurisdictions
the relevant public good or service. c. commercial buildings leased in part
c. Both of the above. by nonprofit foundations
17
 d. state colleges and universities a. depreciation
e. a state capitol b. externalities
207. A person owning less than the entire bundle c. obsolescence
of rights has d. damages
a. escheat e. loss
b. a fee simple title 214. Loss in value of property because of
c. a partial interest external influence
d. personal property a. external loss
e. a fee tail b. external obsolescence
208. All of the following statements are true c. economic obsolescence
EXCEPT d. functional obsolescence
a. real property is a type of service e. external forces
b. value is dependent on market conditions 215. Real estate investment using others people
c. a good or service has no value in money
exchange unless it possesses certain a. loan
economic and legal characteristics b. investment
d. the price representing value is usually c. leverage
quoted in terms of money d. fullback
e. real estate may be sold for all cash or e. lending
financing arranged 216. Appraisal under the unified housing loan
209. All of the following will affect the market program shall be undertaken by
value of a property EXCEPT a. NHA
a. political factors b. HLURB
b. economic factors c. HDMF
c. legal use restriction d. HIGC
d. social concerns e. HUDCC
e. acquisition cost to present owner 217. Loss in value of property because of the
210. Capacity to satisfy wants, production by buyers desire or because of the presence of
labor and their exchangeability fixtures which are not desirable
a. economic concept a. external loss
b. economic principle b. external obsolescence
c. economic value c. economic obsolescence
d. economic utility d. functional obsolescence
e. economic forces e. external forces
211. Amount may be recovered when the 218. The selling price of real estate is usually
property will be retired or disposed at a based on its:
future time a. Market Value
a. scrap value b. Exchange Value
b. book value c. Speculative Value
c. zonal value d. None of the above
d. salvage value e. Intrinsic Value
e. market value 219. The average selling price of homes in a
212. Fair market value of the land in a specific district can best be determined by:
zone or areas as established by the BIR a. Comparative Analysis
a. scrap value b. Any of the above
b. book value c. Assessed Value
c. zonal value d. None of the above
d. salvage value e. An appraisal
e. market value 220. Conjugal partnership can be dissolved by:
213. Impairment of the desirability and a. Legal separation
usefulness of a real property brought by b. Annulment of marriage
the physical, economic, and other changes c. Judicial separation of property
18
 d. Any of the above 227. The study of current supply and demand
e. None of the above conditions in a particular area for particular
221. Income approach in appraisal would be type of property is:
most widely used: a. Market analysis
a. On commercial and investment b. Absorption method
properties c. Real Estate appraisal
b. On properties heavily insured d. Income projection
c. On newly opened subdivision e. Cash flow analysis
d. None of the above 228. A loss in value from any cause is a
e. On properties heavily mortgage common definition of:
222. The best evidence of ownership is a. Depreciation
a. Tax declaration b. Economic obsolescence
b. Vicinity map c. Functional obsolescence
c. Torrens title d. Effective age
d. None of the above e. None of the above
e. Technical description 229. The process of making installment
223. The application of more factors of payments consisting of principal and
production will tend to increase net income interest that reduces the loan balance:
up to certain point beyond which the a. Amortization
introduction of more factors of production b. Liquidation
will tend to decrease net income c. Acceleration
a. principle of conformity d. Hypothecation
b. principle of substitution e. None of the above
c. principle of progression 230. The income approach to value is an
d. principle of increasing and application of the principle of:
diminishing return a. Anticipation
e. principle of regression b. Substitution
224. The displacement of present resident by c. Progression
people of lower economic status d. Highest and Best Use
a. progression e. None of the above
b. substitution 231. The following are determinants of value in
c. gentrification appraisal of realty except:
d. infiltration a. Transferability
e. nuclei b. Scarcity
225. The principle of value which states that c. Demand
value of a property tends to be enhanced d. Utility
when there is reasonable homogeneity in e. Purchasing Power
use: 232. In the computation of depreciation of
a. Principle of conformity properties, the method widely used by the
b. Principle of progression practitioner is the:
c. Principle of highest and best use a. Straight line method
d. None of the above b. Declining balance method
e. Principle of increasing and diminishing c. Diminishing return method
return d. None of the above
226. The increase in value of real estate without e. Cost benefits method
any effort or expense of the owner is: 233. An appraisal principle which holds that the
a. Unearned increment value of property tends to be enhanced by
b. Accretion association with superior properties is:
c. Unearned income a. Principle of Progression
d. Accession b. Principle of Attrition
e. Adhesion c. Principle of Regression
d. None of the above
19
 e. Principle of Infiltration 240. lines in topographic map which indicate the
234. Is a factor derived from comparable elevation of the terrain at various sections
properties and applied to expected rental of the land
income in order to estimate a value. It may a. contour line
be used in finding the value of a property. It b. tie back
is the ratio that expresses the relation c. Tie line
between gross income and sales prices of a d. Bearings
property. e. Metes and bounds
a. Gross Income Multiplier 241. Subdivision plan for flat terrain
b. Multiplier Effect Factor a. Gridiron
c. Zonal Value b. cul de sac
d. Market Value c. tie line
e. Scrap Value d. square planning
235. Method of identifying the boundaries of a e. Chaplan
parcel of land by placing pins or stakes 242. Refers to subd scheme wher the resulting
on the ground blocks rectangular in shape
a. subdivision survey a. Gridiron
b. relocation survey b. cul de sac
c. topographic survey c. tie line
d. schematic survey d. square planning
e. geodetic survey e. chaplan
236. Survey of land to determine the elevation 243. Directions of any respective given
or undulation of the terrain at various meridian.
section a. contour line
a. subdivision survey b. Bearings
b. relocation survey c. tie back
c. topographic survey d. Metes and bounds
d. rectangular survey e. Tie line
e. geodetic survey 244. Prepared out of a cadastral survey of
237. Grid of north and south meridians and extensive area consisting of several lots for
east and west lines surveyed by the cadastral registration proceedings
government in identifying Philippines a. Phil map
boundaries b. Cadastral map
a. subdivision survey c. Vicinity map
b. relocation survey d. Territorial map
c. topographic survey e. Tax map
d. rectangular survey 245. Land located in the fringes of built up
e. geodetic survey communities which has the provincial
238. Survey plan indicating the division of the characteristics but is favored with city
property utilities, amenities and facilities
a. subdivision plan a. city land
b. leche plan b. urbanized land
c. location plan c. metropolis land
d. vicinity plan d. idle land
e. lot plan 246. Lands in metro manila or NCR are covered
239. Imaginary lines connection to point 1 of a by the Urban Land Reform Law when they
lot with a reference point such as BLBM located within _______areas for priority
a. contour line development sites
b. Bearings a. 214
c. tie back b. 234
d. Metes and bounds c. 224
e. Tie line d. 244
20
247. Wrote eight volume guide to geography; 254. Relative location of place compared with
forerunner of the present geography other places, identification of streets,
a. Hipparchus buildings and landmarks to direct people to
b. Aristotle a desired location
c. Ptolemy a. land
d. Erastosthenes b. lot site
e. Humbult and ritter c. toponym
248. The earth is sphere d. situation
a. Hipparchus e. mathematical location
b. Aristotle 255. The science of making map
c. Ptolemy a. calligraphy
d. Erastosthenes b. surveying
e. Humbult and ritter c. mapping
249. Drew imaginary lines on the surface of the d. cartography
earth in order to describe the location of e. pattern
places 256. Two dimensional flat representation of the
a. Hipparchus earth surface or portion of it
b. Aristotle a. calligraphy
c. Ptolemy b. surveying
d. Erastosthenes c. map
e. Humbult and ritter d. cartography
250. Says geographers should study human e. pattern
environment relationships by concentrating 257. The portion of earth occupied by permanent
on how physical environment causes social human settlement
development a. toponym
a. Hipparchus b. demography
b. Aristotle c. density
c. Ptolemy d. Ecumene
d. Erastosthenes 258. Geometric arrangement of object
e. Humbult and ritter a. toponym
251. Used the word geography and calculated b. demography
the circumference of the earth within 0.5 c. density
percent accuracy d. ecumene
a. Hipparchus e. pattern
b. Aristotle 259. Frequency that something occurs within
c. Ptolemy a given unit of area
d. Erastosthenes a. toponym
e. Humbult and ritter b. demography
252. Physical character of the location c. density
a. land d. ecumene
b. site e. pattern
c. toponym 260. Migration to location
d. situation a. emigration
e. mathematical location b. migration
253. Place given to a portion of the earth surface c. immigration
or nominal location d. net migration
a. land e. exodus
b. lot site 261. Permanent move to a new location
c. toponym a. emigration
d. situation b. migration
e. mathematical location c. immigration
d. net migration
21
 e. exodus a. Physical
262. Mass departure from a location b. Cultural
a. emigration c. Economic
b. migration d. Political
c. immigration e. Social
d. net migration 269. Factors what will influence value which
e. exodus forces include the nature or basic industry
263. Difference between the number of and business activity in the neighborhood,
immigrants and the number of imegrants trend of employment, and expansion of
a. emigration housing programs;
b. migration a. Physical
c. immigration b. Cultural
d. net migration c. Economic
e. exodus d. Political
264. A kind of survey where the shape of the e. Social
earth is taken into account in computing 270. Factors that will influence value which refer
results is known as: to the location and age of the neighborhood
a. Plane survey (size, area, shape and land topography),
b. Geodetic survey type of improvements and architectural
c. Topographic survey trends, street pattern, sidewalks and
d. Cadastral survey underground drainage.
e. Hydrographic survey a. Physical
265. A metes and bounds description begins and b. Cultural
ends with the c. Economic
a. street and house number d. Political
b. block number e. Social
c. point of beginning 271. Former natural born Filipino citizen who
d. grid coordinates acquired foreign citizenship and has not
e. iron pin applied and been granted dual citizenship,
266. A (n) ____ identifies a property in such a can purchase for his use as residence
way that it CANNOT be confused with any a. 1,000 sq.m. of urban land and 1 has
other property. of rural land
a. coded map book b. 1,000 sq.m. of urban land and 2 has of
b. full city survey rural land
c. legal description c. 1,000 sq.m. of urban land and 5 has of
d. engineering report rural land
e. narrative appraisal d. 1,000 sq.m. of urban land and 3 has of
267. Factors that will influence value related to rural land
population growth, birth control measures 272. Buyers of real property covered by RA 6552
and migration do not include installment buyers of
a. Physical a. industrial lots
b. Cultural b. house and lot packages
c. Economic c. residential subd lots
d. Political d. residential condominiums
e. Social 273. Retention limits under carp for foreign
268. Factors that will influence value which are individuals on lease, management grower
governmental based. It is the degree of or service contract
efficiency in the maintenance of peace and a. not more than 100 has
order and the effort of providing the b. not more than 500 has
essential services like: utilities, zoning and c. not more than 10 has
land use ordinance, anti-squatting law, d. not more than 1,000 has
rental control law and etc.
22
274. Comprehensive agrarian reform program a. land reform
extension with reforms b. land exchange
a. RA 8435 c. land assembly
b. PD 957 d. land banking
c. RA 6657 281. States that a specified party must be given
d. RA 9700 an opportunity before any others to either
275. RA 6552 or the Maceda law accept or reject an offer
a. realty installment and protective decree a. right to redeem
b. realty installment buyers protection b. right of first refusal
act c. right to recover
c. realty installment and buyers protective d. right to reject
decree 282. Easement is to real property, usufruct is to:
d. realty installment and financing a. Personal property
276. Process of bartering land for another piece b. Real property
of land and or shares of stock of equal c. Personal or real property
value in the government or quasi d. None of the above
government corporation e. Personal and real property
a. land assembly 283. As a mode of acquiring title to real property,
b. land reform prescription in good faith is:
c. land banking a. 5 years
d. land exchange b. 15 years
277. Acquisitions of lots of varying ownership c. 30 year
through, among others, expropriation or d. 50 years
negotiated purchase for the purpose of e. 10 years
planning and development unrestricted by 284. The bundle of rights inherent in ownership
individual property boundaries without any limitations other than those
a. expropriation imposed by law or contract is:
b. land banking a. Fee Estate
c. land assembly b. Lease fee estate
d. land reform c. Fee simple
278. In the absence of pre nuptial agreement all d. Tenancy in common
properties of the husband and wife shall e. None of the above
only have a total retention of 285. The following liens can be found at the back
a. 1 has of the title except:
b. 5 has a. Real estate tax liens
c. 10 has b. Mechanic’s liens
d. 3 has c. Mortgage lien
279. Refers to the commitment for more than a d. Judgment liens
limited duration of funds, land resources, e. None of the above
facilities and service by the two or more 286. Seizure of a property by court order, usually
legally separate interest, to an enterprise for done to have it available in the event of
their mutual benefit adverse judgment in a pending suit, is:
a. corporation a. Escheat
b. land assembly b. Forfeiture
c. cooperative c. Foreclosure
d. joint venture d. Attachments
280. Acquisition of land in advance of actual e. Conveyance
need for the purpose of acquiring lands at 287. A buyer of real estate has already paid in 8
existing use value and disposing of them in years of installment a total amount of
a manner which would influence land price P520,000.00 inclusive of P20,000.00
formation and promote planned penalty interest. The cash surrender value
development of the property based on Maceda Law is:
23
 a. P200,000.00 c. Suspend payment if X fails to make the
b. P250,000.00 necessary repairs.
c. P325,000.00 d. Demand payment reimbursement
d. P350,000.00 constituting one half of the value of the
e. None of the above usual improvements introduced in good
288. A stipulation in a mortgage contract where faith
the mortgagee is authorized to appropriate e. All of the above
the property upon default or non-payment of 294. A special power of attorney to sell a real
debt is: estate carries with it all the following
a. Dacion en Pago except:
b. Pactum de non Aliendo a. Power to find a purchaser
c. Tacita Reconduta b. Power to fix the term of sale
d. None of the above c. Power to sell directly
e. Pactum Commissorium d. None of the above
289. A contract where the property is e. Power to sell only for cash
hypothecated to secure an obligation where 295. A mortgage which covers two or more
the creditor is given the right to possess the properties is called:
property and collect the fruits thereof is: a. Open mortgage
a. Real estate mortgage b. Close mortgage
b. Blanket mortgage c. Equitable mortgage
c. Equitable mortgage d. Blanket mortgage
d. Antichresis e. Conventional mortgage
e. None of the above 296. In the absence of any stipulation on the
290. The conveyance of real estate in payment period, the vendor in a pacto de retro sale
of an obligation is: may repurchase the property within:
a. Pacto en retro sale a. 4 years
b. Dacion en pago b. 6 years
c. Quit claim Deed c. 8 years
d. Cession of ownership d. 10 years
e. Deed of waiver e. None of the above
291. The voluntary transfer of title on a real 297. Husband and wife can sell property to each
estate is: other in the following circumstances:
a. Adverse possession a. Separation of property was agreed upon
b. Quit claim in the pre-nuptial agreement
c. Alienation b. There has been a judicial separation of
d. Surrender property
e. None of the above c. There has been a legal separation
292. A provision in the blanket mortgage that d. Any of the above
property whose loan value has been fully 298. Document to be checked before buying a
paid shall be released from the mortgage subdivision lot
a. Defeasance clause a. license to sell
b. Acceleration clause b. development permit
c. Termination clause c. approve plan
d. None of the above d. map
e. Automatic redemption clause e. none of the above
293. X, owner of a 10- door apartment rented a 299. Condominium act
unit to Y for a period of one year. Under the a. RA 2774
law on lease, Y, without the consent of X, b. RA 4276
may perform any of the following acts, c. RA 4727
except: d. RA 4726
a. Sublease the unit e. NOTA
b. Assign his rights 300. Urban Development and housing Act

24
 a. RA 7927 d. commercial area
b. RA 7972 306. Title to condominium unit is vested in
c. RA 9279 a. lot owner of the condo project
d. RA 7279 b. corporation owning the building
e. NOTA c. association of the bldg
301. In the absence of any provision in the d. owner of the condominium unit
master deed of a condominium project, the e. NOTA
interest of the unit owner in the common 307. sometimes referred to as a vertical subd.
areas shall be; a. condominium
a. equal b. town houses
b. based on value c. row houses
c. decided by the condominium corporation d. mansion
d. proportionate e. NOTA
e. NOTA 308. Subdivision and condominium buyers
302. Unless justifiable cause, the period of protective decree
completion of development of a subdivision a. PD 1216
project counted from issuance of license to b. PD 957
sell is; c. PD 1981
a. eighteen months d. BP 220
b. twenty four months e. NOTA
c. six months 309. The term of a condominium corporation is
d. twelve months a. 10 years
e. NOTA b. 50 years
303. Registration of mortgage covering a c. 25 years
subdivision project or completion of d. Co terminus with the duration of
development of a subdivision project is a condo project
a. NHA e. ALL OF ABOVE
b. DHSUD 310. The performance bond for a subd project
c. LGU may be in the form of a surety bond
d. HUDCC equivalent to
e. HIGC a. 30% of the development cost
304. A buyer of a subdivision lot on installment b. 40% of the development cost
after sufficient notice to the developer c. 20% of the development cost
discontinued paying amortization because d. 10% of the development cost
the developer failed to develop the subd as e. 25% of the development cost
certified by the HLURB in such a situation 311. The areas reserve for parks, playground
and under PD 957, the buyer is entitled to a and recreational areas of a subd project are
refund which would be a. saleable lots
a. Total payment made less penalty b. non alienable public land
charges c. Exclusively owned by the owner
b. Total payment made less penalty plus developer
interest charges d. Co owned by the developer and lot
c. Total payment made less penalty owner
charges and interest on total payment 312. The area reserved for roads, alleys and
d. Total payment plus penalty charges open spaces in a subd. Project with an area
e. NOTA of one hectare or more is
305. Provided by RA 7279 a developer of a a. 10% of the gross area
subd. Project is required to develop an b. 30% of the gross area
equivalent 20% of the project for c. 35% of the gross area
a. socialized housing d. 25% of the gross area
b. economic housing 313. In mixed use condominium project, the
c. open space master deed may be amended by the
25
 simple majority of unit owners. Majority is 320. In what form of property ownership is an
based on. exclusive right to an identified segment of
a. floor area of ownership airspace conveyed along with an interest in
b. number condominium units common in the rest of the parcel?
c. total area of condominium units a. House and lot
d. all of the above b. both of the above
314. The amendment of master of deed of a c. Townhouse
condominium project is decided by the d. Condominium
majority of registered owners must be 321. The property of a person who dies leaving
approved by the HLURB and no heirs passes to the state by the right of
a. City or municipal council a. acquisition
b. City of Municipal Engineer b. escheat
c. City of Municipal Mayor c. condemnation
d. City or Municipal Assessor d. eminent domain
315. Amendment to the master of deed of a 322. Condemnation of private property for public
condominium project approved by majority use is called the right of
of registered owner also need to be a. Seizure
approved by the city engineer and b. Eminent Domain
a. NHA c. Escheat
b. HUDCC d. Acquisition
c. LRA 323. All of the following areas of regulation affect
d. DHSUD appraisers EXCEPT
e. LGU a. DTI
316. Notice of adverse claim annotated on title is b. LGU Planning Office
valid only for c. PRC
a. 15 days d. DSWD
b. 60 days 324. The agency that now insures deposits in
c. 90 days financial institutions is
d. 10 days a. BSP
e. 30 days b. HUDCC
317. Some old Spanish title , the unit of measure c. HMDF
one 1 “are” is equal to d. PDIC
a. 10 sq.m. 325. The form of deed used to return title to real
b. 1,000 sq.m. estate to its owner when the debt secured
c. 100 sq.m. by a deed of trust is paid in full is the
d. 10,000 sq.m a. warranty deed
e. 1 sq.m. b. quitclaim deed
318. Jose owns a house on a parcel that c. reconveyance deed
includes an easement over the adjoining d. tax deed
property of Tom Yan. The Jose property is 326. Tenancy by the entirety is a form of
the a. marital property ownership
a. Servient tenement b. business property ownership
b. For sale property c. tenancy in common
c. Dominant tenement d. ownership in severalty
d. None of the above 327. The four unities required for a joint
319. Co-owners who have an equal right of tenancy include
possession coupled with a right of a. tenancy, location, title, and possession
survivorship have b. time, title, interest, and possession
a. Tenancy in common c. possession, ownership, use, and
b. Tenancy in partnership enjoyment
c. Joint tenancy d. title, time, location, and possession
d. Marital property 328. A life estate is a(n)

26
 a. present, possessory interest.
b. estate of tenancy.
c. future interest.
d. fee simple defeasible.
329. During the research of a subject property an
appraiser learns the occupants (parents)
have been granted a life estate by their
children. What interest do the children hold
in the property?
a. Remainder man
b. Trustee
c. Life tenant
d. Trustor
330. Property acquired by a spouse during
marriage by gift or inheritance is
a. marital property
b. separate property
c. community property
d. jointly owned property
331. A deed of trust is
a. A document that makes a third party
responsible for the money
b. A document that gives a third party
the deed until the mortgage loan is
paid off
c. A deed given by a prisoner who has
behaved for many years
d. Used as a tool to make foreclosure more
efficient
332. Based on net gift the maximum rate of
donor tax is (2021)
a. 6%
b. 15%
c. 10%
d. 30%
333. The rate of real estate tax in municipalities
within metro manila is not more than
a. 5%
b. 10%
c. 2%
d. 20%
334. Under the local government code,
agricultural lands of more than one hectare
are subject to additional tax of no more than
5% of assessed value when at lest
a. entire area is uncultivated
b. 50% of the area is uncultivated
c. 30% of the area is uncultivated
d. 20% of the area is uncultivated
335. Annual levy on real estate equivalent to 1%
of the assessed value which shall be in
addition to the basic real estate tax
a. ad valorem tax
b. special education fund tax
c. excise tax
d. vat
336. Capital gains on the sale of real estate
classified as capital asset is
a. prepaid income tax
b. expanded withholding tax
c. creditable tax on sale
d. creditable tax on sale
337. BIR revenue regulation no 17-2003, the
seller of a family home who failed to utilized
the proceeds to acquire a new residence
within 18 months from the sale shall be
assessed additional deficiency capital gains
tax inclusive of penalties and
a. 5% p.a.
b. 20% p.a.
c. 25% p.a.
d. 10% p.a.
338. Ground floor of a condominium project per
BIR 28-29 shall be considered as
commercial and a additional rate shall be
added on established residential zonal
value of
a. 20%
b. 15%
c. 10%
d. 25%
339. The estate tax return shall be filed with the
BIR within
a. 90 days from the death of the decedent
b. 120 days from the death of the decedent
c. 60 days from the death of the decedent
d. 180 days from the death of the
decedent
340. Taxpayer has__ to redeem his real property
which was levied and subsequently forfeited
and acquired by the local government for
tax delinquency
a. 3 years
b. 1 year
c. 5 years
d. 2 years
341. The following composed the board of
assessment of Makati city, except
a. city assessor
b. register of deed
c. city treasurer
d. city engineer
342. Documentary stamp tax on the sale of
property must be paid
27
 a. within 30 days from the date of b. Simple majority votes
notarization c. 2/3 votes
b. within 5 days after the close of the d. 1/3 votes
month of the date of sale 350. A space to be considered a condominium
c. within 10 days after the close of the unit
month of the date of sale a. at least 5 storey high
d. at the time payment of capital gains tax b. manage by condominium corporation
343. Value placed on taxable property by the c. be susceptible to independent use
assessor for ad valorem tax purpose and owner ship
a. economic value d. unencumbered by any restriction
b. assessed value 351. The right of an owner lessor to receive the
c. appraised value contract rent and reversion of property at
d. market value the end of the lease is
344. The property sold is an ordinary asset, what a. fee simple
is the applicable tax b. lease fee estate
a. estate tax c. net lease
b. capital gains tax d. freehold
c. percentage tax 352. An authority given by the developer to a
d. creditable withholding tax broker to look for a supplier of backfilling
345. Tax fixed on documents, instruments and materials who shall be paid with developed
papers evidencing acceptance, assignment lots is:
or sale of a right, property or obligation a. Procurement agency
a. community tax b. Sales agency
b. excise tax c. General Brokerage
c. estate tax d. None of the above
d. documentary stamp tax e. Exchange agency
346. Banks acquired assets which form part of its 353. An agreement between an owner and a
real estate inventories at the close of its broker to sell a real estate property:
accounting period shall be classified a. Listing
a. ordinary asset b. Power of Attorney
b. fixed asset c. Authority to sell
c. capital asset d. None of the Above
d. tangible asset e. Joint venture
347. Sale of a dealer of a residential dwelling 354. In the real estate business, another term for
is not subject to VAT when the price does the owner is:
not exceed (2021) a. Customer
a. 1,500,000.00 b. Principal
b. 1,000,000.00 c. None of the above
c. 2,500,000.00 d. Prospect
d. 3,199,200.00 e. Alter Ego
348. Which of the following cannot be issued 355. The documentary stamp on lease of real
condominium certificates of titles estate is P6.00 for the first P2,000.00 or
a. subdivision lots fraction thereof and additional (2021)
b. two level row house a. P0.50 for every P1,000 in excess of the
c. one level raw house first P2,000
d. industrial warehouse b. P1.00 for every P1,000 in excess of the
349. The required number of votes of registered first P2,000
owners to authorize a condominium c. P1.50 for every P1,000 in excess of the
corporation to sell or otherwise dispose of first P2,000
the common areas in a condominium d. P2.00 for every P1,000 in excess of
project is the first P2,000
a. unanimous votes
28
 e. P3.00 for every P1,000 in excess of the a. Within thirty (30) days from the date of
first P2,000 notarization
356. Under BIR Revenue Regulation No. 17- b. Within five (5) days after the close of
2003, the seller of a family home who failed the month of the date of sale
to utilize the proceeds to acquire a new c. Within ten (10) days after the close of
residence within 18 months from the sale the month of the date of sale
shall be assessed additional deficiency d. At the time of payment of capital gains
capital gains tax inclusive of penalties and: tax
a. 5% interest per annum e. At any time
b. 10% interest per annum 363. The ground floor of a condominium project,
c. 15% interest per annum per BIR 28-98, shall be considered as
d. 20% interest per annum commercial and an additional rate shall be
e. 25% interest per annum added on established residential zonal
357. The rate of real estate tax in municipalities value of:
within Metro Manila is not more than a. 10%
a. One-half percent of assessed value b. 25%
b. Three percent of assessed value c. 15%
c. One percent of assessed value d. 30%
d. None of the above e. 20%
e. Two percent of assessed value 364. The schedule of fair market value in
358. Based on net gifts, the maximum rate of municipalities in Metro Manila is prepared
donor’s tax is: by:
a. Ten Percent a. MMDA
b. Fifteen percent b. Bureau of Internal Revenue
c. Thirty percent c. Concerned Municipal Assessor
d. Twenty percent d. Sangguniang Bayan by ordinance
e. Twenty-five percent e. None of the above
359. The value placed on taxable property by the 365. The amount of family home equivalent to
assessor for ad valorem tax purpose is: the fair market value considered as
a. Market Value allowable deductions from the estate of the
b. Appraised Value decedent
c. Assessment Value a. P 500,000.00
d. Assessed Value b. P 1,000,000.00
e. Economic Value c. P1,500,000.00
360. The estate tax return shall be filed with the d. P 2,000,000.00
BIR within : e. P 750,000.00
a. 60 days from death of decedent 366. A taxpayer has ____ to redeem his real
b. 180 days from death of decedent property which was levied and subsequently
c. 90 days from death of decedent forfeited and acquired by the local
d. 240 days from death of decedent government for tax delinquency.
e. 120 days from death of decedent a. 1 year
361. Under the Local Government Code, the b. 60 days
next period for the property owner to file a c. 2 years
sworn declaration of ownership and value d. 4 years
with the assessor is: e. 3 years
a. Year 2018 367. In case of foreclosure sale where right of
b. Year 2019 redemption is not exercised by the
c. Year 2020 mortgagor, who pays the capital gains tax?
d. Year 2021 a. Owner-mortgagor
e. None of the above b. Buyer of the property
362. The documentary stamp tax on the sale of c. None of the above
property must be paid d. Creditor-bank
29
 e. Any of the above d. Total payments including penalty
368. The documentary stamp on every mortgage charges
or pledge of real estate is: (2021) e. None of the above.
a. P40.00 for the 1st P5,000.00 plus 372. Unless extended for justifiable cause, the
P20.00 for every P5,000.00 thereafter period of completion of development of a
b. P10.00 for every P5,000.00 or fraction subdivision project, counted from issuance
thereof of license to sell, is:
c. P15.00 for every P5,000.00 or fraction a. Six months
thereof b. Eighteen months
d. P2.00 on each P200.00 or fraction c. Twelve months
thereof d. Twenty four months
e. None of the above e. None of the above
369. In case of sale of agricultural lands not 373. Registration of a mortgage covering a
exceeding five (5) hectares, aside from subdivision project or completion of
clearance from DAR, buyer must also development of a subdivision project is at
submit what document? the:
a. Undertaking to surrender land in excess a. Local Government Unit
of retention limits b. Housing and Urban Development
b. Affidavit of compliance with CARL Coordinating Council
c. Affidavit of total or aggregate c. Home Insurance Guarantee Corporation
landholding d. Department of Human Settlement and
d. Certification from DAR Urban Development
e. Affidavit of waiver e. National Housing Authority
370. The retention limit of landowners under the 374. In the absence of any provision in the
CARP is: master deed of a condominium project, the
a. 5 has for the landowner and 3 has per interest of the unit o owners in the common
child irrespective of age areas shall be:
b. 5 has for the landowner and 3 has per a. Proportionate
child who must be at least 15 years old b. Decided by the condominium
c. 5 has for the landowner and 5 has per corporation
child whether or not they till the land or c. Based on Value
manage the farm d. None of the above
d. 5 has for the landowner and 3 has per e. Equal
child who must be at least 15 years 375. Urban Development and Housing Act:
old and is actually tilling the land or a. R.A. 7279
managing the farm b. R.A. 9279
e. 5 has for the landowner and 3 has per c. R.A. 7927
child who must be over 21 years old d. R.A. 7972
371. A buyer of a subdivision lot on installment e. None of the above
after sufficient notice to the developer 376. Condominium Act:
discontinued paying amortization because a. R.A. 4727
the developer failed to develop the b. R.A. 4276
subdivision as certified by the HLURB in c. R.A. 2774
such a situation and under P.D. 957, the d. R.A. 4726
buyer is entitled to a refund which would be: e. None of the above
a. Total payment made less penalty 377. Document to be checked before buying a
charges. subdivision lot:
b. Total payments made less penalty a. Development permit
and interest charges. b. Map
c. Total payments made less penalty c. License to sell
charges plus interest on total payment. d. None of the above
e. Bureau of Land approval
30
378. Sometimes referred to as vertical 384. Under the local government code, the
subdivision: appraisal of the fair market value of real
a. Row Houses property shall be based on
b. Mansion a. actual use
c. Town Houses b. independent appraisal value
d. None of the above c. declaration of lot owner
e. Condominium d. assessed value
379. Subdivision and Condominium Buyers 385. When to pay Estate tax if the case is settled
Protective Decree: judicially
a. P.D. 1216 a. Not exceeding 2 years
b. P.D. 957 b. not exceeding 10 years
c. B.P. 220 c. Not exceeding 3 years
d. None of the above d. Not exceeding 5 years
e. P.D. 1981 e. Not exceeding 4 years
380. The area reserved for roads, alleys and 386. When to pay Estate tax if the case is settled
open spaces in a subdivision project with an extra judicially
area of one hectare or more is: a. Not exceeding 2 years
a. 20% of gross area b. not exceeding 10 years
b. 25% of gross area c. Not exceeding 3 years
c. 30% of gross area d. Not exceeding 5 years
d. 35% of gross area e. Not exceeding 4 years
e. None of the above 387. Ecology solid waste management act is
381. For a space to be considered a a. RA 9003
condominium unit, it must: b. RA 9030
a. be encompassed by interior surface of c. RA 467
walls, floors and ceilings d. RA 674
b. be managed by a condominium e. RA 1096
corporation 388. It is the introduction of harmful substance or
c. be susceptible of independent use by products into the environment
and ownership a. Degradation
d. be unencumbered by any restriction b. Pollution
e. at least five storeys high c. Solid waste
382. In mixed use condominium project, the d. Contamination
master deed may be amended by simple e. Discharge
majority of unit owners. Majority is based 389. It is a certification issued by the EMB
on: certifying that based on the submitted
a. Number of condominium units project description, the project is not
b. Floor area of ownership covered by the EIS system and is not
c. Total area of condominium units required to secure an ECC
d. Any of the above a. Environmental compliance certificate
e. None of the above b. Feasibilty study
383. Amendment to the master deed of a c. Project impact study
condominium project approved by majority d. Environmental impact study
of registered owners also need to be e. certificate of non coverage
approved by the city engineer and: 390. what is EMB under the bureau of DENR
a. Local Government e. National Housing a. a. Ecosystem Management bureau
Authority b. Environmental Management Bureau
b. Housing and Urban Development c. External Management bureau
Coordinating Council d. Environmentally Management Bureau
c. Department of Human Settlement and e. Ecology Management bureau
Urban Development 391. The effectivity of Maceda law or RA 6552.
d. Land Registration Authority a. August 16, 1972
31
 b. Feb. 26, 1978 398. Tax imposed on every citizen of the
c. August 26, 1972 Philippines
d. March 12, 1976 a. excise tax
392. Under HDMF circular 189-C, a qualified b. Real property tax
Pagibig member can purchase residential c. documentary tax
lot not exceeding d. Ad valorem tax
a. 500 sq.m. e. Community tax
b. 1,000 sq.m. 399. All real estate broker and private appraiser
c. 750 sq.m. shall be required to post a professional
d. 1,500 sq.m. indemnity insurance/cash or surety bond, in
e. 250 sq.m. an amount with no less than_____, without
393. Maximum amount of loan available prejudice to additional requirement of the
under Unified Home Lending Program client. It will be renewable every 3 years.
a. 250,000.00 a. 2,000 pesos
b. 375,000.00 b. 15,000 pesos
c. 200,000.00 c. 5,000 pesos
d. 500,000.00 d. 20,000 pesos
e. 300,000.00 e. 10,000 pesos
394. Zero Assessment level refers to an 400. a stock corporation established principally
assessment of all building whose market for the purpose of owning income
value does not exceed-_______ which are generating real estate assets
exempted from payment of real property a. real estate trust
taxes b. real estate company
a. 75,000.00 c. real estate investment trust
b. 175,000.00 d. real estate investment corporation
c. 125,000.00 e. Philippine stock exchange
d. 275,000.00 401. The Real estate investment trust act
e. 150,000.00 a. RA 9856
395. How often does the real property b. RA 9886
assessment be revised by the City/ c. RA 9865
Municipal assessor d. RA 9646
a. every year e. RA 9586
b. 7 years 402. A real estate investment trust is a
c. 3 years a. a public company
d. 10 years b. upon and after listing, have at least
e. 5 years 1,000 public shareholders
396. A tax imposed on the sale, donation, c. maintain as a listed company in sec/pse
barter or any other mode of transferring d. nota
real property ownership or title e. all of the above
a. simple fee/tax 403. Real estate investment trust must distribute
b. registration fee annually at least ______ of its distributable
c. filing fee/tax income as dividends to its shareholder
d. excise tax a. 50%
e. transfer fee/tax b. 20%
397. Who is the chairman of LBAA or Local c. 75%
board of assessment Appeal d. 90%
a. Provincial auditor e. 40%
b. Register of Deeds 404. The price or value of property agreed upon
c. City Treasurer the seller who is not is compelled to sell and
d. Fiscal a buyer who is not compelled to buy, both
e. City Assessor knowing all material facts relative to the
property and the transaction
32
 a. appraised value
b. assessed value
c. economic value
d. fair market value
e. zonal value
405. The sale of or transfer of real property to
real estate investment trust, which includes
the sale or transfer of any and all security
interest thereto, shall be subject to.
a. 25% of the applicable DST
b. 10% of the applicable DST
c. 75% of the applicable DST
d. 50% of the applicable DST
406. Income payment to real estate investment
trust shall be subject to a lower creditable
withholding tax of
a. 5%
b. 1%
c. 10%
d. 7.5%
e. 2%
407. Real estate investment trust may only invest
in
a. real estate related asset
b. debts securities, manage funds and
listed shares issued by local or foreign
non property corporations
c. real estate located in the phils
d. government securities issued in behalf
of the GRP or the government of the
other countries and securities issued by
multilateral agencies
e. all of the above
408. Transfer of awarded lands from CARP is
prohibited for a period of
a. 5 years
b. 8 years
c. 20 years
d. 15 years
e. 10 years
409. PD 1517 or Urban Land Reform Law an
area considered urban when it has a
population density of at least an area of.
a. 1,000 resident per sq.km. and at least
25% of active resident engage in non
agricultural activities
b. 2,000 resident per sq.km. and at least
50% of active resident engage in non
agricultural activities
c. 1,500 resident per sq.km. and at least
50% of active resident engage in non
agricultural activities
d. 2,000 resident per sq.km. and at least
70% of active resident engage in non
agricultural activities
e. 1,000 resident per sq.m. and at least
25% of active resident engage in non
agricultural activities
PART II: Professional Appraisal Practice
SET Exam 1
410. The present and future demand for a
property and its absorption rate is
considered in a
a. letter in appraisal
b. market feasibility study
c. market segmentation
d. highest and best used analysis
e. transmittal letter
411. The appraiser final estimate should be
based on
a. average of three value indications
obtained by three approaches
b. weighing of the reliability of the
information analyzed in each of the
three approaches
c. the most sophisticated guess technique
d. adjustment for most recent indicators in
the local market
412. the appropriate time adjustment is
concluded to be an increase of 7% per year
compounded. The time adjustment for a
comparable sales property that should for
80,000.00 two years ago.
a. 11,529
b. 11,200
c. 9,200
d. 91,592
e. 5,600
413. the criteria for determining the highest and
best used include all of the following
EXCEPT
a. physical possibility
b. probable use
c. financial feasibility
d. effect on community welfare
e. legal permissibility
414. the broad forces affecting value do not
include
a. physical
b. social
c. life cycle
33
 d. economic
e. political
415. the certification of value section of an
appraisal report states everything EXCEPT
that
a. the appraiser has no interest in the
property
b. the fee is not contingent upon any
aspect of the report
c. the facts are correct to the best of the
appraiser knowledge
d. last year the property was appraised
by the another person
e. the property was personally inspected
by the appraiser
416. one implication of competition and excess
profit is that
a. there is a certain optimum combination
of land, labor, capital and
entrepreneurship
b. an estimate of value should be based on
future expectation
c. abnormally high profits cannot be
expected to continue indefinitely
d. maximum value accrues to real estate
when social and economic homogeneity
are present in a neighborhood
417. cost indexes offered by standardized
services are used to
a. derive units of comparison
b. catalog building component
c. estimate operating expenses
d. update past cost into current cost
e. estimate the local consumer price index
418. a summary appraisal report
a. contains many items that are not
considered in practice
b. is an appraisal report prepared for a
client
c. summarizes the item that might be
used in practice
d. may be based on hypothetical or
assumed data
e. should be prepared on a nontypical
property to appraisal practice
419. real estate in a submarket is
a. a group of sales person who deal mostly
in the same type of property
b. a group of sales that occur at the same
time
c. a group of similar properties in the
same area
d. a small portion of the market of similar
properties
e. an area where sandwiches on French
bread are eaten
420. the fact that rents for equally desirable
space tend to be set by the market reflects
the principle of
a. balance
b. substitution
c. externalities
d. consistent used
e. conformity
421. the fee for an appraisal assignment is
a. based on a percentage of the final value
estimate
b. agreed upon during the preliminary
study stage
c. determined after the appraisal is
completed
d. set by the fee schedule of the local
board of realtors
e. set by a fee scale from real estate
commission
422. the last step in the appraisal report is to
a. write the report
b. reconcile all data
c. analyze the data
d. inspect the property
e. set the fee to be charge
423. the form of which a formal appraisal is
presented is called
a. a presentation of value
b. an appraisal log
c. an appraisal report
d. a value certification
e. a narrative report
424. a formal appraisal must include the
a. date of value estimate
b. signature of the appraiser
c. identification of property appraised
d. certification
e. all of the above
425. the highest and best used of land as if
vacant forms part of the basis for
a. mortgage-equity analysis
b. property rights adjustment
c. an operating expense estimate
d. the cost approach
e. the square footage practice
426. identifying and studying submarkets of a
larger market is called
a. market research
34
 b. market survey
c. market agglomeration
d. market segmentation
e. market data
427. the identification and study of a pertinent
market is called
a. market analysis
b. neighborhood review
c. property research
d. market reflection
e. market interaction
428. which of the following is important for
good appraisal communication
a. word choice
b. reading level
c. grammatical correctness
d. clarity
e. all of the above
429. all of the following are true except
a. real property is a type of service
b. value is dependent on market condition
c. a good or service has no value in
exchange unless it possesses certain
economic and legal characteristics
d. the price representing value is usually
quoted in terms of money
e. Real estate may be sold for all cash or
financed
430. in estimating the market value of
comparable sale, an appraiser must
consider all of the following EXCEPT
a. whether the transaction was made in
cash, terms equivalent to cash, or other
precisely revealed terms.
b. Whether the property had reasonable
exposure in a competitive market
c. Whether a fair sale was transacted, with
neither the seller nor the buyer acting
under duress
d. Whether the replacement cost of the
property corresponds to its market
value
e. Whether the seller was related to the
buyer
431. in preparing the appraisal report, your
analysis concludes that one of the
approaches to value is not applicable to this
particular case. You should
a. omit the approach all together
b. base the approach on hypothetical data
c. state that the approach is not relevant
d. state that the approach is not
applicable, explain the reason for this
contention
e. find another approach so as to include
three approaches
432. in the cost approach the site is valued as if
it were
a. vacant and available for development
to its highest and best use
b. improved and suited for its intended use
or development
c. developed and operating
d. attractively landscape
e. without nearby utilities
433. investment value is best describe as
a. market price
b. market value
c. the cost of acquiring a competitive
substitute property with the same utility
d. the present worth of anticipated
future benefits to a certain entity
e. value in exchange
434. location decision involve analysis on
which three level
a. general, specific, detailed
b. country, state, community
c. residential, commercial, industrial
d. country, state, county
e. region, neighborhood, site
435. the length of a tract of land along a street is
called
a. depth
b. width
c. frontage
d. abutment
e. lineage
436. the most comprehensive type of
appraisal report is
a. form report
b. oral report
c. letter report
d. narrative demonstration report
e. unbiased report
437. the principle of ______states that buyer will
not pay more for the a site than for another
equally desirable one
a. anticipation
b. imbalance
c. substitution
d. balance
e. conformity
438. the principle of anticipation is

35
 a. future oriented 445. the value estimate provided in an
b. past oriented appraisal
c. the as of date of appraisal a. changes with the use to which it is put
d. anticipated loan to value ratio for the b. changes with the function of the
subject property appraisal
e. similar to the principle of substitution c. remains the same regardless of use
439. the principle of_______states that the value d. depends upon the use or function of the
levels are sustained when the various appraisal
elements in an economic or environmental e. always reflects market value
mix are in equilibrium 446. population increases______demand for
a. anticipation housing
b. equivalence a. depress the
c. substitution b. are incapable of simulating the
d. balance c. have no effect on the
e. highest and best used d. are likely to create a
440. price and value are e. are determined by the
a. not necessarily the same 447. environment hazards that an appraiser must
b. synonymous be conscious of include all of the following
c. different, depending on financing terms except
d. almost the same in an active market a. asbestos
e. interchangeably in a report b. radon
441. the purpose of a ____ is to analyzed a c. drano
property potential for success d. urea formaldehyde
a. feasibility study e. PVC
b. marketability study 448. In analyzing the environment and market
c. market segmentation study area, it is best to
d. appraisal report a. start at the general level and work
e. need study down to the specific
442. a use must be_____ to be considered as a b. start at the specific and work up to the
possible alternative for highest and best general level
used c. limit the analysis to the national level
a. physically and legally possible and d. limit the analysis to the local level
financially feasible e. generally consider the traffic flow
b. physically and legally possible 449. the first step in general process is to
c. Already in existence and legal a. define the problem
d. Physically possible and appropriate b. gather data
e. Legal and profitable c. analyze data
443. an appraiser d. determine the approaches to value
a. determines the price e. make a final value estimate
b. defends value 450. combining to or more sites in order to
c. estimates price develop one site with a greater value than
d. estimates value the individual sites have separately called
e. determines value a. synergy
444. the objective of the appraisal should be b. plottage
stated in the report c. surplus land
a. the market needs it d. excess land
b. it define the problems and identifies e. highest and best use of land
the value sought 451. assemblage is
c. it identifies the function of the report a. always reflect in the market value
d. it absolves the appraiser of liability b. the act of bringing to or more smaller
e. there are too many definitions of market lots into common ownership for use
price
36
 c. inappropriate for parcels two or more a. should be considered confidential
hectares b. cannot, under any circumstances, be
d. uneconomical considered in estimating the current
e. illegal market value of the property
452. typically, land is appraised by the c. should be discussed in appraisal
a. square foot report
b. front foot acre d. was not an arms length sale
c. all of the above e. should be used as comparable sale,
d. none of the above though adjusted for its time and terms
453. it is_________for an appraiser to receive or 459. the dimensions of a warehouse are
pay finders or referral fees customarily measured from
a. reasonable a. a roof line
b. unethical b. the midpoint of exterior wall
c. necessary c. the inside of finished wall
d. customary d. the outside of finished wall
e. convenient e. be reasonable or appropriate
454. a sale between relatives is considered 460. the construction of a luxury home in a
a. an arms length transaction neighborhood almost completely developed
b. a purely comparable sale with one and two bedroom apartments
c. an open market sale would
d. a distorted sale a. produce external obsolescence
e. a good deal b. be called an under improvement
455. What of the following is true about zoning c. results in plottage value
a. it reflects the expectation that d. results in neighborhood amenities
government will preserve property e. be reasonable or appropriate
values 461. the most detailed, complex, costly and time
b. it is based on the right of government consuming method of cost estimation is the
to regulate for health, moral, welfare a. quantity survey
and safety b. trade breakdown
c. it is inappropriate for parcels withed c. comparative unit
uses d. unit in place
d. it represents an effort to establish the e. comparable unit
land highest and best use 462. An improvements remaining economic life
e. it represent the right to reuse the a. it is chronological stage
property b. it is effective age
456. for an appraiser to use the assistance of c. is the period over which the
another appraiser is improvements are expected to
a. inconsiderate generate benefits
b. unethical d. is effective age minus chronological age
c. illegal e. effective age ;us chronological age
d. ETHICAL 463. the cost approach most applicable when the
e. questionable property being appraise
457. it is_________to provide a value range to a a. has old improvement
client who request it and understand its b. has relative new improvements that
meaning and use. represent the highest and best use of
a. foolish the land
b. appropriate c. suffers substantial functional
c. un ethical obsolescence
d. approximate d. is more costly than the surroundings
e. difficult e. has many older features that make
458. any recent sale of a subject property interesting reading in a report
being appraised 464. price per front foot

37
 a. a physical unit of comparison
b. not as accurate as price per acre
c. rarely used in residential site analysis
d. an accurate guide to site marketability
e. useful when there are few physical
differences between sites
465. which is the last step in reconciliation
a. identify which of the three approaches is
used
b. apply the three approaches to the data
collected
c. apply to judgment to the data collected
d. review previous work and analysis
e. select a final value of estimate
466. the highest and best use of the site is its
a. existing use
b. most probable use
c. immediate next used
d. synonymous with ordinary and
necessary value
e. different from most probable use
467. markets in residential real estate are
a. equivalent to those for securities
b. related to physical boundaries
c. local
d. physically obscure
e. found by courthouse sales
468. inflation tends to increase the value of
a. fixed income securities
b. mortgages
c. deeds in lieu of foreclosure
d. real estate
e. debts
469. Real estate markets
a. are international in scope
b. meet none pf the criteria of a perfect
market
c. are centralized in nature
d. consist of used property only
e. are well developed in former Communist
countries
470. The subject property has 85% occupancy.
What conclusion would you most likely draw
if the typical occup0nacy rate in the area
was 95%?
a. Advertising is average.
b. The rents are high.
c. The rents are low.
d. Management is good.
e. New construction will occur soon.
471. The fact that the value of a property tends
to equal the cost of an equally desirable
substitute is an example of the principle of
a. balance
b. substitution
c. contribution
d. diminishing returns
e. supply and demand
472. Population flow to different regions of the
United States will change primarily because
of
a. changing economic opportunities
b. environmental control legislation
c. rezoning legislation
d. state tax policies
e. air conditioning in the Sunbelt
473. When each alternative use requires the
same capital investment, the use that
maximizes the investment’s______ on a
long-term basis is the highest and best
use.
a. diversified portfolio
b. operating expenses
c. net operating income
d. potential gross income
e. occupancy rate
474. What would be the indicated value of a
property that rented for 750 per month,
using a monthly gross rent multiplier of 100,
if the expenses attribute to the property
were 115 per month?
a. 75,670
b. 75,000
c. 68,750
d. 61,125
e. 13,750
475. Which of the following criteria most
completely defines “highest and best use”?
a. physically possible, legally
acceptable, and generating a higher
present land value than any other use
b. legally authorized, politically viable, and
socially acceptable
c. physically possible, comparable to other
uses in the neighborhood, and legally
authorized
d. comparable to other local uses,
physically possible, and generating a
higher present land value that any other
use
e. the tallest and most beautiful structure
that can be placed on the land
38
476. The total income anticipated from income 482. All of the following are sources of
property operations after vacancy and comparable sales EXCEPT
collection allowances and operating a. public records
expenses are deducted is b. brokers
a. net operating income c. buyers and sellers
b. before-tax cash flow d. mortgage servicers
c. effective gross income e. appraisers
d. potential gross income 483. An allowance for vacancy and collection
e. property residual income loss is estimated as a percentage of
477. Which principle of value best affirms that a. net operating income
value is the present worth of expected b. before-tax cash flow
future benefits? c. effective gross income
a. supply and demand d. potential gross income
b. balance e. after-tax cash flow
c. substitution 484. The annual net operating income from an
d. anticipation apartment house is 11,000. If a
e. conformity capitalization rate of 11% is used, the
478. Which principle of value best affirms that indicated market value is
the maximum value of property generally a. 126,000
cannot exceed the cost of its replacement? b. 176,000
a. increasing and decreasing returns c. 100,000
b. supply and demand d. 242,000
c. substitution e. 2,420
d. balance 485. which of the following is true of a gross
e. anticipation lease
479. Which of the following would be classified a. the tenant pays all operating expense
as a tangible rather than an intangible b. the landlord pays all operating
amenity? expense
a. pride of ownership c. this lease is used only for commercial
b. a sense of security properties
c. a free dishwasher d. rent rises with the cost of living
d. work satisfaction e. this lease must be drafted by an attorney
e. clean air 486. a forecast using discounted cash flow
480. Which type of property is subject to ad analysis would include
valorem taxation? a. income, vacancy and operating expense
a. property owned by a religious b. an economic analysis
organization and used for religious c. reversion at the end of the holding
purpose period
b. new industrial plants that state and local d. discounting expected future cash flows
governments have induced, with tax to a present value
exemption as an incentive, to locate e. all of the above
within their jurisdictions 487. in discounted cash flow analysis, the
c. commercial property with more that reversion to be received at the end of the
50% nonprofit tenants holding period is
d. state colleges and universities a. a separate cash flow
e. a state capitol b. an annuity in arrears
481. Compared with other assets, real estate is c. an ordinary annuity
a. immobile d. percentage of annual income
b. expensive e. amount to be capitalized in perpetuity
c. long-lived
d. mortgagable 488. a 1,000,000.00 property will have a 70%
e. all of the above loan at an 8% annual mortgage constant.
39
 what must the NOI be to produce 12% cash
on cash return
a. 120,000.00
b. 56,000.00
c. 92,000.00
d. 84,000.00
e. 700,000.00
489. Income capitalization is the term used to
describe the process of estimating the value
of income property by studying expected
future income. This process
a. converts the net income of a property
into its equivalent capital value
b. reflects the time value of money by
reducing or discounting future income
into its present worth
c. focuses on the present worth of future
benefits
d. uses markets interest rates
e. all of the above
490. to earn 12% on your investment, what
should you pay for a property earns
6,000.00 per month and has operating
expenses of 1,250.00 per month
a. 475,000.00
b. 150,000.00
c. 229,166.00
d. 333,333.00
e. 400,000.00
491. The land development method is used to
estimate the value of vacant acreage that is
ready to be subdivided. This method
requires
a. study of current sales of subdivided lots
b. the projection of land of subdivided lots
c. RTC approval
d. Both A and B
e. None of the above
492. a technique in income capitalization in
which the analyst need not distinguish
interest rates from capital recovery rates,
but that is most useful for comparable
income
a. direct capitalization
b. building residual
c. land residual
d. bank of investment
e. internal rate of return
493. cash on cash return is
a. the annual cash flow divided by the
equity investment
b. an internal rate of return that represents
annual income and all gains or losses
prorated to an effective annual amount
c. a percentage or decimal rate that, when
divided into a periodic income amount,
offers a lump-sum capital value for
income
d. a value that does not change with time
e. none of the above
494. Which report is usually NOT prepared by a
real estate appraiser?
a. marketability study
b. economic study
c. feasibility study
d. mineral valuation study
e. highest and best use
495. Questions 86-89 based on the information
below.
You are appraising a 40-acre tract of
unimproved by a real land. The size is
zoned for single-family residential use. All
utilities are available along the street on
which the land fronts. The engineers who
will plat the proposed subdivision told you
that 20% of the land area will be used for
streets and sidewalks. Zoning will permit
four lots per acre of net developable land
after deducting streets. Research indicates
that lots similar to those that will be
available on the subject land will sell for
18,000 each and that the entire tract can be
developed and sold in 1 year. You find that
40% of the sale price of each lot must be
allocated to selling cost, overhead,
contingencies, carrying cost, and
developer’s profit, and that 2,000 feet of
streets (including water, storm sewer, and
sanitary sewer lines) must be installed at a
cost of 80 per foot.
496. What is the number of lots to be developed?
a. 40
b. 128
c. 80
d. 88
e. 32
497. What is the gross amount that will be
realized from the sale of all the lots?
a. 720,000
b. 2,304,000
c. 1,440,000
d. 1,584,000
e. 576,000
40
498. What is the cost of installing streets, water, d. None of the above
and sewer lines? e. Cannot be calculated from the
a. 16,000 information given
b. 32,000
c. 64,000 Questions 94-97 are based on the following
d. 160,000 information:
e. None of the above 504. A building contains 50 one-bedroom units
499. What is the amount of selling cost, and 150 two-bedroom units. The one-
overhead, contingencies, carrying cost, and bedroom units rent for 550 monthly; two
developer’s profit? bedroom are 675. the vacancy rate is 7%;
a. 921,6000 operating expenses are estimated at 40% of
b. 576,000 effective gross income. There is 2,000.00
c. 288,000 annual income for vending machines.
d. 633,600 505. potential gross income is
e. None of the above a. 64,735
b. 1,547,000
Questions 90-93 are based on the c. 1,545,000
information below: d. 717,425
A 100-unit apartment complex includes 40 e. None of the above
one-bedroom units that rent for 950 and 60 506. effective gross income is
two-bedroom units that rent for 1,150 a. 64,735
monthly. The vacancy rate is 5%; b. 1,547,000
miscellaneous income is 5,000 annually. c. 1,545,000
Operating expenses amount to 400,000. d. 1,438,850
The mortgage loan requires payments of e. None of the above
630,000 annually. 507. Net operating income is
a. 64,375
500. Potential gross income is b. 268,970
a. 1,289,000 c. 863,310
b. 112,000 d. 719,425
c. 107,000 e. None of the above
d. 1,284,000 508. operating expense are
e. Cannot be calculated from the a. 1,545,000
information given b. 54,075
501. Effective gross income is c. 2,000
a. 1,224,800 d. 719,425
b. 1,220,000 e. 575,540
c. 824,800 509. in one step of the land value residual
d. 107,000 technique, the building capitalization rate is
e. Cannot be calculated from the applied to the known building value to
information given estimate the
502. Net operating income is a. highest and best use of the site
a. 1,224,800 b. cost of the building
b. 184,800 c. income needed to support the land
c. 424,800 d. net operating income needed to support
d. None of the above the building
e. Cannot be calculated from the e. land value
information given 510. the basic formula of property valuation via
503. Before-tax cash flow is income capitalization is
a. 1,030,000 a. V=IR
b. 184,800 b. V=I/R
c. 194,800 c. V=R/I ?
41
 d. V=SP/GR e. Right of escheat
e. V=I/F 518. Which of the following types of property is
511. all of the following lease provisions are subject to ad valorem taxation?
advantageous to the lessee EXCEPT a. property owned by a religious
a. an escape clause organization and used for a religious
b. a renewal option purpose
c. a purchase option b. new industrial plants that state and local
d. an escalation clause governments have induced, with tax
e. none of the above exemption as an incentive, to locate
within their jurisdictions
SET Exam 2 c. commercial buildings leased in part
by nonprofit foundations
512. In economics, the four factors of production d. state colleges and universities
are e. a state capitol
a. land, labor, capital, and improvements 519. A person owning less than the entire bundle
b. land, labor, capital and of rights has
entrepreneurship a. escheat
c. land, labor, capital and money b. personal property
d. land, improvements, labor and materials c. a fee simple title
e. land, labor, site, and improvements d. a fee tail
513. The law of supply and demand is e. a partial interest
a. a basic economic principle 520. A metes and bounds description begins and
b. legislated by Congress ends with the
c. seldom used in the appraisal process a. street and house number
d. not a applicable in the short term b. grid coordinates
e. all of the above c. block number
514. Which of the is NOT an agent of d. iron pin
production? e. point of beginning
a. land 521. A (n) ____ identifies a property in such a
b. capital way that it CANNOT be confused with any
c. transportation other property.
d. entrepreneurship a. coded map book
e. labor b. full city survey
515. Political forces affecting value may include c. legal description
a. life-styles and living standards d. engineering report
b. topography e. narrative appraisal
c. athletic levels and recreation facilities 522. All of the following statements are true
d. government spending and taxation EXCEPT
policy a. real property is a type of service
e. primary registration and turnout b. value is dependent on market conditions
516. What are the two categories of tangible c. a good or service has no value in
property? exchange unless it possesses certain
a. real property and personal property economic and legal characteristics
b. intangible property and real property d. the price representing value is usually
c. real estate and intangible property quoted in terms of money
d. legal and illegal investments e. real estate may be sold for all cash or
e. open and shut transactions financing arranged
517. Zoning is an exercise of the 523. All of the following will affect the market
a. equity courts value of a property EXCEPT
b. police powers a. political factors
c. Environmental Protection Agency b. legal use restriction
d. Right of condemnation c. acquisition cost to present owner
42
 d. economic factors 531. Studying appraisal helps a person
e. social concerns a. to improve value estimation skills
524. Market value is ____ the same as selling b. to pass the real estate broker’s license
price. examination
a. always c. to understand other real estate courses
b. usually d. to communicate with appraisers
c. never e. all of the above
d. none of the above 532. A dramatic change in short-term demand for
e. sometimes real estate in the local market is likely to
525. Price is immediately precipitate
a. market value a. construction
b. a historical fact b. activity
c. most probable sales price c. price changes
d. all of the above d. no change in supply
e. investment value e. conversions
526. Functional utility depends on 533. The area and community analysis section of
a. zoning an appraisal report
b. wear and tear on the structure a. should “sell” the community
c. tastes and standards b. should describe the community
d. age of the equipment objectively
e. insurance requirements c. is a study by the estate’s industrial
527. Value in use is development commission
a. subjective d. considers the negative aspects only
b. objective e. considers the positive aspects only
c. readily measurable 534. In analyzing the economic environment and
d. a market phenomenon market area, it is best to
e. synonymous with market price a. start at the general level and work
528. The value added to total property value by a down to the specific
particular component is an example of the b. start at the specific and work up to the
principle of general level
a. substitution c. limit the analysis to the national level
b. contribution d. generally consider traffic flow
c. anticipation 535. Which of the following reports is usually
d. conformity NOT prepared by a real estate appraiser?
e. change a. marketability study
529. The concept that the value of a particular b. economic study
components is measure by the amount that c. feasibility study
its absence would detract from the value of d. transportation network study
the whole is e. valuation study
a. opportunity cost 536. An appraisal of a specific-purpose for
b. contribution insurance purpose would depend most
c. substitution heavily on
d. conformity a. book value
e. competition b. highest and best use
530. The market loss cause by depreciation in an c. cost estimate
older structure may be offset by all of the d. specialty value
following EXCEPT e. land value
a. architectural interest 537. The first step in the appraisal process is
b. historical registration to
c. strong demand relative to supply a. define the problem to be solved
d. strong supply relative to demand b. gather relevant data
e. renovation of the structure c. analyze the data
43
 d. inspect the property
e. set the fee to be charged
538. An appraisal is
a. an estimate of net realizable value
b. always concerned with the market value
c. an appraiser’s opinion of market
value
d. a precise statement of value
e. a broker’s comparative sales analysis
with further detail
539. The “as of” date in an appraisal report is
a. the date to which the value applies
b. immaterial to the value estimate
c. the date on which the report is delivered
d. the date on which the property will be
conveyed
e. the anticipated closing date
540. Sales data descriptions of an appraisal
report contain
a. details about each comparable sale
b. an analysis of the date, using the value
approaches
c. the investigation of market forces
d. analysis of the street each comparable
property is on
e. zoning details
541. All of the following are ways to delineate
a neighborhood EXCEPT
a. natural barriers
b. streets
c. utility service
d. income characteristics
e. political boundaries
542. All of the following are sources of
comparable sales EXCEPT
a. public records
b. mortgage services
c. brokers
d. appraisers
e. buyers and sellers
543. Which of the following criteria most
completely define “highest and best use”?
a. legally authorized, politically viable, and
socially acceptable
b. physically possible, comparable to other
uses in the neighborhood, and legally
authorized
c. physically possible, legally
permissible, financially feasible, and
generating a higher present land
value than any other use
d. comparable to other uses in the
neighborhood, physically possible, and
generating a higher present land value
than any other use
e. the tallest and most beautiful structure
that can be placed on land
544. The three basic approaches used to
estimate value are
a. use, exclusion, and disposition
b. cost, sales comparison, and use
c. cost, sales comparison, and market data
d. cost, sales comparison, and production
e. cost, sales comparison, and income
capitalization
545. Units of comparison are used in
a. only the sales comparison approach
b. only the cost approach
c. only the income capitalization approach
d. A, B and C
e. the appraisal of special-purpose
properties only
546. Final value estimates should be rounded
to reflect the
a. absence of good data
b. property’s location
c. fact that a selling price will probably be a
round number
d. lack of precision associated with an
opinion
e. high value of real estate
547. When reconciling the adjusted sales
prices of comparables, the greatest
emphasis should be given to
a. the average
b. the median
c. the mode
d. the mean of A, B, and C
e. none of the above
548. Which of the following forms of appraisal
report is NOT recommended?
a. completely filled-in institutional form
b. telephone conversation
c. letter report
d. long narrative report
e. demonstration
549. Which of the following approaches would
probably be given the most weight in
appraising a large office building?
a. reproduction cost
b. income capitalization
c. subdivision development
d. market absorption
44
 e. replacement cost
550. The form in which a formal appraisal is
presented is called
a. a presentation of value
b. a value certification
c. an appraisal log
d. a narrative
e. an appraisal report
551. The form of an appraisal report
a. has no influence on the appraisal
process
b. is the same, regardless of the problem
c. is set by the amount of the fee
d. is determined by the appraiser
e. determines the appraisal framework
552. The effective age and the useful life of a
building represent judgments made by the
a. appraiser
b. buyer
c. property owner
d. insurer
e. tax assessor
553. The period over which existing
improvements are expected to continue
to contribute to property value is their
a. effective age
b. period of diminishing returns
c. remaining economic life
d. chronological age
e. remaining physical life
554. For a building, effective age is best
defined as
a. the average age of the roof
b. the actual age divided by the age-life
c. the ag of other property in equivalent
condition and utility
chronological age of the building
d. the chronological age of the building
e. the period over which the building may
be effectively used
555. The utility of real estate is its
a. attractiveness to the trained observer
b. longevity
c. capacity to satisfy human needs and
desires
d. effective demand
e. remaining economic life
556. In appraising a residence, adjustments are
NOT made to the comparable property for
a. age
b. terms of sale
c. lot value
d. size
e. assessed valuation
557. When a site has improvements on it, the
highest and best use
a. is not definable
b. is its existing use
c. is its potential use
d. depends on whether or not the existing
use is changeable
e. may be different from its existing use
558. To be considered as a comparable, a
property
a. a must have been sold within the past 5
years
b. must be competitive with the subject
c. must have been sold by an open-
market transaction
d. must be a similar color
e. both B and C
559. The direct sales comparison approach is
better than the income or cost approach
because
a. fewer comparable properties are require,
so it is easier to outline the results to
clients
b. there are fewer mathematical
calculations, so there is less chance of
mathematical errors
c. the market for real estate is slow to
change
d. it is always easier to obtain data for the
direct sales comparison approach
e. none of the above true
560. The appraisal of an established 20-year old
motel on a road with numerous competitive
the motels would most likely be based on the
a. square foot are of improvements
b. number of units
c. reproduction cost
d. gross rent multiplier
e. occupancy rate
561. In applying gross rent multiplier analysis
to the subject property, the appraiser would
use the
a. market rental
b. actual rent being paid
c. rent currently asked by the owner
d. rent offered by a potential tenant
e. rent listed in advertising the property
45
 a. 0
b. + 3,000
c. +1,500
d. -3,000
e. - 1,500
568. In estimating the market value of a
comparable sale, an appraiser must
consider all of the following EXCEPT
Other Adjustments: Each square foot of a. whether the transaction was made in
livable area is judged to be worth 30; cash, terms equivalent to cash, or other
condition grades are fair, good, and precisely revealed terms
excellent , with each difference in condition b. whether the property had reasonable
grade worth 5%; a two-care garage is exposure in a competitive market
judged to be worth 1,500 more than a one- c. whether a fair sale was transacted, with
car garage. neither the seller nor the buyer acting
562. What is the size adjustment for Comparable under duress
1? d. whether the replacement cost of the
a. +1,500 property corresponds to its market
b. +3,000 value
c. - 1,500 e. whether the seller was related to the
d. - 3,000 buyer
e. 0 569. The terms financing, whether good or
563. What is the size adjustment for Comparable bad,
2? a. have no effect on the market price
a. +1,500 b. have no effect on the market value
b. + 3,000 c. have no effect on affordability
c. - 1,500 d. depend on fiscal and monetary policy
d. - 3,000 e. should be ignored when adjusting
e. 0 comparables
564. What is the condition adjustment for 570. Adjustments to the property rights
Comparable 1? conveyed, financing, conditions of sale,
a. 0 date of sale, and location are often made to
b. +9,000 the ____ of the comparable property.
c. +4,500 a. unit price
d. -9,000 b. actual sales price
e. - 4,500 c. price per square foot
565. What is the condition adjustment for d. gross income multiplier
Comparable 2? e. cash equivalent value
a. 0 571. Cumulative percentage adjustments may
b. +P8,850 be used
c. +P4,425 a. when the characteristics are
d. - 8,850 interdependent
e. - 4,425 b. when the characteristics are
566. What is the garage adjustment for independent
Comparable 2? c. when dollar figures are available
a. 0 d. when unimproved properties are being
b. +P3,000 appraised
c. - 1,500 e. under no circumstances
d. - 3,000 572. The best unit of comparison for vacant
e. - 1,500 land is
567. What is the garage adjustment for a. the square foot
Comparable 3? b. the total lot

46
 c. a combination of square foot and front e. factors external to the subject property
foot units itself
d. the linear foot 578. Reproduction or replacement cost
e. the unit considered important by the includes all of the following EXCEPT
market a. direct or hard costs
573. You are asked to appraise a vacant building b. indirect or soft costs
lot. The neighborhood is about 75% built- c. entrepreneurial profit
up. Most lots in the area are from 55 ft. to d. fixed and variable expenses of
85 ft. to 65 ft. wide; the lot under appraisal operations
is 60 ft. Comparable sales indicate that lots e. elevator shafts
are selling at 120 to 150 per front foot. What 579. In analyzing obsolescence , the test of
is a good estimate of the price range for this curability of a component in a building is
lot? whether the cost to cure is no greater than
a. 9,000-11,000 the
b. 7,200-9,000 a. expected increase in value
c. 5,400-6,750 b. reproduction cost new
d. 6,600-7,600 c. replacement cost
e. 6,600-11,250 d. installation cost
574. In appraising a residential property by e. economic life of the new component
the cost appraiser considers the 580. Which of the following is NOT a type of
a. sales prices of comparable properties depreciation?
b. deprecation of the land a. entrepreneurial loss
c. depreciation of improvements b. functional obsolescence
d. potential for new competition c. external obsolescence
e. potential misuse of this approach d. economic obsolescence
575. In the cost approach, ____ is deducted e. physical deterioration
after estimating the cost to reproduce an 581. Estimation of occurred depreciation and
existing structure. obsolescence does NOT involve
a. land cost a. physical deterioration
b. cash equivalence b. functional obsolescence
c. cost to maturity c. economic obsolescence
d. legal factors d. wear and tear
e. depreciation e. financial structure
576. Economic obsolescence does NOT 582. In appraisal, accrued depreciation is
result from really an estimate of
a. and outdate kitchen a. physical deterioration
b. construction of a freeway near the b. capital recovery
property c. diminished utility
c. the presence of an earthquake fault d. sinking fund factor
nearby e. book depreciation
d. building restrictions in the 583. The cost approach NOT useful for
community a. checking value approaches
e. factors external to the subject property b. appraising institutional or special-use
itself properties
577. Reproduction or replacement cost c. estimating the value of new property
includes all of the following EXCEPT d. appraising older homes in an active
a. an outdated kitchen market
b. construction of a freeway near the e. insurance appraisals
property 584. An appraiser noted the following about a
c. the presence of an earthquake fault rental home:
nearby needs exterior paint 750 cost to cure
d. building restrictions in the community needs new water heater 250 cost to cure
47
 has one bath in market for two 4,000 d. equal amounts of principal are repaid
capitalized rent loss each period
has poor floor pan 2,500 capitalized rent e. there is a balloon payment at maturity
loss 592. When each alternative use requires the
is located next to a convenience store 1,200 same capital investment, the use that
capitalized rent loss maximizes the investment’s ____ on a
585. How much is curable physical deterioration? long-term basis is highest and best use.
a. 250 a. diversified portfolio
b. 2,500 b. potential gross income
c. 750 c. operating expenses
d. none of the above d. occupancy rate
e. 4,000 e. net operating income
586. How much is functional obsolescence? 593. Land purchased for 50,000 cash
a. 250 appreciates at the rate of 15% compounded
b. 2,500 annually. About how much is the land worth
c. 750 after 5 years? Disregard taxes, insurance,
d. 4,000 and selling expenses.
e. 1,200 a. 100,000
587. How much is environmental obsolescence? b. 37,500
a. 250 c. 87,500
b. 2,500 d. 7,500
c. 750 e. 57,500
d. 4,000 594. A land speculator expects that a certain
e. 1,200 100-acre tract can be sold to a subdivider 4
588. An appraisal of a freestanding store and years from now for 10,000 per acre. If
the land it occupies is an unbiased holding and selling costs are disregarded,
estimate of the value of an interest in what cash price today (rounded to the
a. personal property nearest 1,000) would allow the speculator to
b. mortgages realize a 15% compounded annual rate of
c. real estate return on the entire tract?
d. personal property and land a. 572,000
e. real estate plus business value b. 6,000
589. The term vertical interest does NOT refer c. 5,000
to rights to d. none of the above
a. subsurface mineral extraction e. 600,000
b. the construction and railroad tunnels 595. Gross income multipliers are generally
c. the use and regulation of air space considered part of
d. subdivision and development a. the cost approach
e. the construction of buildings over b. the direct sales comparison approach
railroad yards c. the income capitalization approach
590. Inflation tends to increase the value of d. the insurance approach
a. fixed-income securities e. none of the above
b. tangible long-lived investments 596. Use of a gross rent multiplier is valid
c. mortgages when the subject and comparable
d. debts properties have similar
e. deeds in lieu of foreclosure a. potential gross incomes
591. With an amortized mortgage loan, b. operating expense ratios
a. interest only is paid until maturity c. effective gross incomes
b. some principal is repaid with each d. cash flows
payment e. net operating incomes
c. the entire principal is repaid before
maturity
48
597. Time-distance relationship between a appraiser will consider all of the following
site and all relevant origins and EXCEPT
destinations are called a. return on invested capital
a. access roads b. risk factors
b. linkages c. return of invested capital
c. transit facilities d. the interest rate on the existing loan,
d. synergies which was arranged last year
e. ingress and egress e. the interest rate prevailing in the market

598. The land on which a 10-year-old house is A 200-unit apartment complex includes 80
located is valued at P28,000, and the one-bedroom units that rent for 475 and 120
reproduction cost of the dwelling is two-bedroom units that rent for 575
P92,000. Straight-line depreciation is 2% monthly. The vacancy rate is 5%;
per year, applied to the building only. If miscellaneous income is 5,000 annually.
there is no other obsolescence, what is the Operating expenses amount to 400,000.
indicated value of the property? The mortgage loan requires annual
a. P96,000 payments of 630,000.
b. P117,700 603. Potential gross income is
c. P101,600 a. 1,289,000
d. P120,000 b. 107,000
e. P117,000 c. 1,284,000
d. none of the above
2% × 10 × 92,000 = 18,400 e. 112,000
92,000 – 18,400 – 28,000 = 101,600 604. Effective gross income is
a. 1,224,800
599. Effective gross income is income after an b. P107,000
allowance for c. 1,220,000
a. depreciation d. none of the above
b. operating expenses e. 824,800
c. both A and B 605. Net operating income is
d. none of the above a. 1,224,800
e. cash expenditures b. 424,800
600. In discounted cash flow analysis, the c. 1,220,000
reversion to be received at the end of the d. none of the above
holding period is e. 824,800
a. a separate cash flow 606. Before-tax cash flow is
b. an annuity in arrears a. 1,030,000
c. an ordinary annuity b. 194,800
d. a percentage of annual income c. 824,800
e. an amount to be capitalized in perpetuity d. none of the above
601. To earn 12% annual cash return on a cash e. 424,800
investment, what should you pay for a 607. To obtain the present value of a series of
property that earns 4,000 per month and incomes, a (n) ____ rate is applied.
has operating expenses of 1,250 per a. discount
month? b. equity capitalization
a. 150,000 c. income
b. 333,333 d. stated
c. 275,000 e. overall capitalization
d. 400,000 608. A fast-food chain could buy the building and
e. 229,166 land necessary for a new outlet for 200,000.
602. In selecting an overall capitalization rate for Instead, an investor bought the property for
an income-producing property, the this amount and lease it for 2,000 per month
49
 over a 20-year term. Rent is payable at the
end of each month. What yield to maturity is
implied by the lease, assuming that, at the
end of 20 years, the property is still worth
about P200,000?
a. 8%
b. 14%
c. 10%
d. 15%
e. 12%
609. When market rent is less than contract
rent, the difference is known as
a. overage rent
b. gross rent
c. excess rent
d. slippage rent
e. percentage rent
610. If a particular buyer requires as recapture of
the building portion of the purchase price in
25 years, what is the indicated recapture
rate for the building, assuming straight-line
recapture?
a. 0.25%
b. 20%
c. 2%
d. 25%
e. 4%
611. In a high-rise, 100-unit apartment building
there is a basement laundry area that brings
in 100 monthly from the concessionaire.
The laundry income is
a. included, as miscellaneous income, in
potential gross income
b. included, as other income, in
effective gross income
c. deducted from effective gross income
d. added to before-tax cash flow
e. distributed to the maintenance workers
SET EXAM 3
612. A building is depreciated at 2.5% per year
on a straight-line basis. What is the
estimated useful life of the building?
Estimated Useful life = 1/n = 1/2.5% = 40
years
613. A residential land is located at Orange City
with an area of 2,200 square meters and
cost per sq.m. is P3,500. It has a corner
influence of 25% because of its location,
topography advantage of 20% because it is
plain and a plottage of 10% because of its
shape. Compute the value of the property.
Land Value (2,200 @P3,500/sq.m.) = P
7,700,000
Add Adjustment factors:
Corner influence (P7.70M x 25%) =
1,925,000
Topography advantage (P7.70M x 20%) =
1,540,000
Plottage (P7.70M x10%) = 770,000
Value of the Property = 11,935,000
614. Using the 4-3-2-1 depth rule, if a 10-hectare
belonging to different owners namely;
Mamita, Tiyo, Alan and L.A was sold for
P10,0M, what is the share of each owner?
1st Lot owner: (P10.0M x40%) P4.0M
2nd Lot owner: (P10.0M x30%) P3.0M
3rd Lot owner: (P10.0M x20%) P2.0M
4th Lot owner: (P10.0M x10%) P1.0M
Note: 4-3-2-1 Rule means:
“4” = 40% of the lot value (front quarter)
adjacent
to the road;
“3” = 30% of the lot value (second quarter);
“2” = 20% of the lot value (third quarter);
“1” = 10% of the lot value (fourth quarter)
615. Rebisco bought 50 hectares of land at P700
per sq.m. If the medium subd. development
costs of P1,000/sq.m. is based on the
saleable area which is 60% of the gross
area, compute the following:
a. Total land acquisition cost;
b. Total Development cost;
c. Total unit costs per sq.m. of the saleable
lots;
d. If the projected gross mark up is 100%
of the total unit costs/sq.m. of the
saleable lots, what will be the selling
price per square meter?
Land Acquisition Cost: 50 hectares x 10,000
sq.m. @P700/sq.m. = P350.00M
Development Cost: 500,000 sq.m. x
@P1,000/sq.m. = P500.00M
Lot Unit Cost = (Land Acquisition Cost +
Developmental Cost) / Saleable area =
P(350.0M + P500.0M) / 300,000 sq.m. =
2,8533/sq.m.
50
 Selling Price/sq.m.= Unit Cost + Desired
Profit = 2,8533+2,8533 =5,766/sq.m.
616. For Question Nos. 5-7 A Real Estate
Property was valued and assessed by Mun.
Assessor in the following amount and rate:
Total SEF Tax for one year, net of 10%
P152,100
TOTAL BASIC AND SEF, net of 10%
discount = P456,300
620. A commercial property producing an annual
gross income of P390,000 was sold two
months ago for P3,412,500. What is the
property's gross income multiplier?
Annual Gross income / Sales Price =
P3,412,500.00 / 390,000.00 = 8.75 GIM

621. The property under appraisal is a 25 year-

old apartment building producing a net
operating income of P50,000 a year.
Compute the value of the property,
617. compute the following: assuming a remaining economic life of 40
years for the building at 10.5% interest rate
Basic realty tax before discount for one and land value is estimated at P100,000.00
quarter?:
Land: P5.0M x 50% x 2%/4 quarters = Net Operating Income
P12,500 P50,000.00
Building: P15.0M x 80% x 2%/4 quarters Less: Income due to land (P100,000 x
= 60,000 10.5%) 10,500.00
Machineries: P3.0M x 80% x 2%/4 Income due to building
quarters = 12,000 P39,500.00
Total Realty Tax for one quarter = Building Value {P39,500/12.04 (10.5% +
P84,500 1.54 (1/65)}
P328,073.00
618. Total Special Education Fund Tax for one Add: Land Value
year before discount? 100,000.00
Land: P5.0M x 50% x 1% P 25,000 Total Property Value
Building: P15.0M x 80% x 1% 120,000 P428,073.00
Machineries: P3.0M x 80% x 1% 24,000
Total Realty Tax for one quarter P169,000 V=I/R
Where: V= Value
619. Total Taxes (basic and SEF) for one-year I= income
discount is 10%? Rate= interest rate
Land: P12,500 x 90% x 4 quarters
P 45,000 622. To find the Building value, the Rate should
Building: P60,000 x 90% x 4 quarters be interest rate plus recapture rate; formula
P216,000 property, assuming a Rate= interest rate +
Machineries: P12,000 x 90% x 4 quarters Recapture rate Recapture rate=
P43,200 1/Economic life of the building
Total Basic Tax for one year, net of 10%
P304,200 623. 10: You can afford to put 10,000 in a
Land: P25,000 x 90% savings account today that pays 6% interest
P 22,500 compounded annually. How much will you
Building: P120,000 x 90% have 5 years from now if you make no
108,000 withdrawals?
Machineries: P24,000 x 90% PV = 10,000 i = .06 n = 5
21,600
51
 FV = 10,000 (1 + .06)5 = 10,000
(1.3382255776)
ANSWER = 13,382.26
624. Another financial institution offers to pay 6%
compounded semiannually. How much will
your 10,000 grow to in five years at this
rate?
PV = 10,000 i = .06 / 2 = .03 n = 5 * 2 = 10
FV = 10,000 (1 + .03)10 = 10,000
(1.343916379)
ANSWER= 13,439.16
625. What amount will accumulate if we deposit
5,000 at the end of each year for the next 5
years? Assume an interest of 6%
compounded annually. FV = PMT ([(1 + i )n
– 1]/i )
FVoa = PMT ((1 + i)n - 1) / i
PV = 5,000
i = .06
n=5
FVoa = 5,000 (1.3382255776 - 1) / .06
ANSWER = 5,000 (5.637092) = 28,185.46
FVad = FVoa (1+i)
PV = 5,000 i = .06 n = 5
FVoa = 28,185.46 (1.06) = 29,876.59
626. What amount will accumulate if we deposit
5,000 at the beginning of each year for the
next 5 years? Assume an interest of 6%
compounded annually.
FV = PMT ([(1 + i )n + 1]/i )
FVad = FVoa (1+i)
PV = 5,000 i = .06 n = 5
FVoa = 28,185.46 (1.06) = 29,876.59
627. You want to buy a house 5 years from now
for 150,000. Assuming a 6% interest rate
compounded annually, how much should
you invest today to yield 150,000 in 5
years?
PV=FV(1+i)^-n pv=150000(1.06)^-5
PV = FV [( 1 ) /(1 + i)n
FV = 150,000
i =.06
n=5
PV = 150,000 [( 1 ) / (1 + .06)5]
= 150,000 [( 1 ) / 1.3382255776 ]
ANSWER = 112,088.73
628. What amount must you invest today at 6%
compounded annually so that you can
withdraw 5,000 at the end of each year for
the next 5?
PV = PMT [( 1-(1 + i)-n ] / i
5000((1-(1+.06)^-5))/.06
PMT = 5,000
i = .06
n=5
PVoa = 5,000 [(1 - (1/(1 + .06)5)) / .06] =
5,000 (4.212364)
Answer= 21,061.82
PART 1: FUNDAMENTALS
629. The enactment of the Real Estate Service
Act created a body that will regulate the real
estate service practice. This regulatory
body is named
a. Professional Regulatory Commission
b. Professional Regulatory Board of Real
Property Practitioners
c. Professional Regulatory Board of
Real Estate Service
d. Professional Regulatory Board for
Appraisers
630. This term refers to an official in the local
government unit, who performs appraisal
and assessment of real properties, including
plants, equipment, and machineries,
essentially for taxation purposes.
a. Appraiser
b. Assessor
c. Consultant
d. Broker
631. A duly registered and licensed natural
person who works in a local government
unit and performs appraisal and
assessment of real properties, including
plants, equipment, and machineries,
essentially for taxation purposes is referred
to as
a. real estate appraiser
b. real estate broker
c. real estate consultant
d. real estate assessor
632. A duly accredited natural person who
performs service for, and in behalf of a real
estate broker who is registered and
licensed by the Professional Regulatory
Board of Real Estate Service for or in
expectation of a share in the commission,
professional fee, compensation or other
valuable consideration is referred to as
52
 a. real estate salesperson d. Market
b. real estate broker 640. The environment in which goods and
c. real estate appraiser services trade between buyers and sellers
d. real estate consultant through a price mechanism.
633. This term refers to a person who conducts a. Market
valuation/appraisal; specifically, one who b. Medium
possesses the necessary qualifications, c. Stock exchange
license, ability and experience to execute or d. Appraisal
direct the valuation/appraisal of real 641. A statement of the fundamental
property. measurement principles of a
a. Appraiser valuation on a specified date.
b. Broker a. Market value
c. Assessor b. Selling price
d. Consultant c. Economic condition
634. Defined as the physical land and d. Basis of value
those human-made items, which 642. In markets characterised by extreme
attach to the land. volatility or severe disequilibrium
a. Real property between supply and demand, the
b. Real estate highest and best use of a property may
c. Personal property be a / an
d. Asset a. holding for future use.
635. The ownership of real estate is called b. interim use.
a. bundle of rights. c. existing use.
b. real property. d. commercial utility
c. fee simple. 643. Where land use and zoning are in a state of
d. freehold. change, the immediate highest and best
636. Includes all the rights, interests, and use of a property may be a / an
benefits related to the ownership of real a. interim use.
estate. b. present use.
a. bundle of rights. c. residential use.
a. real property. d. commercial use.
b. fee simple. 644. This principle holds that a prudent person
c. freehold. would not pay more for a good or service
637. A term used for the amount asked, than the cost of acquiring an equally
offered, or paid for a good or service. satisfactory substitute good or service.
a. Cost a. Principle of highest and best
b. Value b. Principle of anticipation
c. Price c. Principle of substitution
d. Replacement cost d. Principle of competition
638. The price paid for goods or services or 645. This comparative approach considers the
the amount required to create or sales, listings or offers of similar or
produce the good or service. substitute properties and related market
a. Value data, and establishes a value estimate by
b. Price processes involving comparison.
c. Cost a. Market data approach
d. Selling price b. Cost approach
639. An economic concept referring to the c. Income approach
price most likely to be concluded by the d. Contractor’s method
buyers and sellers. 646. This comparative approach considers
a. Cost income and expense data relating to the
b. Value property being valued and estimates value
c. Price through a capitalisation process.
53
 a. Market data approach enhancement, preservation, utilization or
b. Income approach disposition of lands or improvements
c. Cost approach thereon; and (ii) the conception, planning,
d. Residual technique management and development of real
647. This comparative approach considers the estate projects.
possibility that, as an alternative to the a. Real estate broker
purchase of a given property, one could b. Real estate appraiser
acquire a modern equivalent asset that c. Real estate consultant
would provide equal utility. d. Real estate developer
a. Market data approach 652. These are constraints that maybe
b. Income approach imposed by clients or by statutory law
c. Cost approach that would likely to affect valuation.
d. Building residual technique a. Limiting Conditions
648. A duly registered and licensed natural b. Assumptions
person who, for a professional fee, c. Observations
commission or other valuable consideration, d. Valuation methods
acts as an agent of a party in a real estate 653. A person who possesses the necessary
transaction to offer, advertise, solicit, list, qualifications, ability, and experience to
promote, mediate, negotiate or effect the execute/performed a valuation.
meeting of the minds on the sale, purchase, a. Appraiser or valuer
exchange, mortgage, lease or joint venture, b. Consultant
or other similar transactions on real estate c. Broker
or any interest therein. d. Salesperson
a. Real estate appraiser 654. Is a valuer or an appraiser who is in the
b. Real estate salesperson employ of either the entity that owns the
c. Real estate broker assets or the accounting firm responsible
d. Real estate developer for preparing the entity’s financial record
649. In asset valuation, this term refers to the and/or reports.
adjustments made to the cost of a. External Valuer
reproducing or replacing the asset to reflect b. Public Sector Appraiser
physical deterioration and functional c. Internal Valuer
(technical) and external (economic) d. Valuer General
obsolescence in order to estimate the value 655. Is a valuer or an appraiser, together with
of the asset. any associates, has no material links with
a. Deterioration the client, an agent acting on behalf of the
b. Depreciation client or the subject of the assignment.
c. Replacement cost a. External Valuer
d. Reproduction cost b. Internal Valuer
650. In property appraisal, these are c. Assessor
suppositions taken to be true, involving d. Broker
facts, conditions, or situations affecting the 656. As provided for in the Philippine Valuation
subject (property being appraised), or the Standards, the four property types are:
approach in the valuation. a. Real estate, asset, machinery, plant and
a. Assumptions equipment
b. Market conditions b. Real property, personal property,
c. Perceptions businesses and financial interests
d. Observations c. Real estate, fixture, chattel and trade
651. A duly registered and licensed natural related
person who, for a professional fee, d. Real property, machinery, equipment
compensation or other valuable and plant
consideration, offers or renders professional
advice and judgment on: (i) the acquisition,
54
657. Families are more aware of recycling b. Financial interests
their consumer wastes than ever before. c. Personal property
This is an example of which kind of force: d. Real estate investment trust
a. Social 663. The process of acquiring private property
b. Governmental for public use is called
c. Economic a. Eminent domain
d. Environmental b. Police power
658. Absolute ownership subject only to c. Escheat
limitations imposed by the country is known d. Condemnation
as 664. A type of business involving a combination
a. Fee simple estate. of two or more entities that join to undertake
b. Leasehold estate. a specific project.
c. Lease fee estate. a. Syndication
d. Severalty. b. Limited partnership
659. A duly registered and licensed natural c. Joint venture
person who, for a professional fee, d. General partnership
compensation or other valuable 665. In statistics, this term refers to the
consideration, performs or renders, or offers difference between the highest and
to perform services in estimating and the lowest scores.
arriving at an opinion of or acts as an expert a. Standard deviation
on real estate values, such services of b. Mode
which shall be finally rendered by the c. Mean
preparation of the report in acceptable d. Range
written form. 666. This economic principle relates to the
a. Real estate appraiser principle of balance as well as to the
b. Real estate assessor principle of contribution. This principle
c. Real estate broker holds that as capital units are added, a
d. Real estate consultant certain point is reached where the added
660. Interests in items that are not permanently units do not contribute value commensurate
attached or affixed to real estate and are with their costs.
generally characterized by their movability. a. Principle of substitution
a. Real estate property b. Principle of balance
b. Fixtures c. Principle of contribution
c. Personal property d. Principle of increasing and
d. Chattel decreasing returns
661. Any commercial, industrial, service or 667. The right of government to acquire private
investment entity pursuing an economic property for public use is referred to as
activity is referred to as a. eminent domain.
a. Financial interests b. police power.
b. Real property c. escheat.
c. Personal property d. taxation.
d. Business 668. Tax Imposed on profit presumed have been
662. Interests in property resulting from the legal realized on the sale or disposition of lands
division of ownership interests in and/or buildings.
businesses and real property, from the a. Estate tax
contractual grant of an optional right to buy b. Capital gains tax
or sell property at a stated price within a c. Inheritance tax
specified period, or from the creation or d. Realty tax
investment instruments secured by pooled 669. In statistics, this term refers to the
real estate assets. measurement of how much all the scores in
a. Business a distribution typically deviate or vary from
the mean.
55
 a. Standard Deviation b. Salvage value
b. Variance c. Market value
c. Mode d. Liquidation value
d. Range 677. The right of governments to acquire
670. An ownership arrangement in which all private property for public use, such as a
partners share in investment gains and road widening.
losses and each is fully responsible for all a. Eminent domain
liabilities. b. Expropriation
a. Limited partnership c. Police power
b. General partnership d. Condemnation
c. Joint venture 678. A limitation on the use of real estate
d. Syndication through a written legal document that is
671. Tax imposed on the right to transmit real usually recorded.
and personal properties upon death of the a. Mortgage
property owner (decedent). b. Deed restriction
a. Inheritance tax c. Lien
b. Capital gains tax d. Chattel
c. Estate tax 679. This term refers to the conveyance of
d. Real estate tax the right to use part of a land for a
672. Refers to government housing projects specific purpose and thus divide the
which may either be a subdivision or a bundle of rights.
condominium intended for homeless low- a. Lease
income family beneficiaries b. Encroachment
a. Residential subdivision c. Easement
b. Low cost housing d. Contract
c. Socialized housing 680. A loan or promissory note that is secured by
d. Marginal housing the real estate.
673. An item that was once personal property a. Lease
that has become part of the real estate is b. Mortgage
referred to as. c. Lien
a. Real property d. Chattel
b. Real estate 681. A trespass on another’s land is a from of a /
c. Fixture an
d. Equipment a. Easement
674. The purest and most complete form of real b. Encroachment
estate ownership is c. Mortgage
a. leased fee estate. d. Restriction
b. Leasehold estate. 682. A government restriction imposed on
c. Fee simple. ownership of real estate that actually means
d. Real property. going to the state.
675. The right of government to regulate land a. Eminent domain
use for the public good. b. Police power
a. Escheat c. Escheat
b. Eminent domain d. Taxation
c. Police power 683. The most common form of ownership where
d. Taxation one person or corporation owns the entire
676. This describes the value of an asset that bundle of rights, still subject to
has reached the end of its economic life governmental and private restrictions.
for the purpose it was made and the asset a. Severalty
may still have value for an alternative use b. Condominium
or for recycling. c. Leased fee
a. Scrap value d. Real property
56
684. This term means is that the property
itself cannot be divided, only the
ownership interest.
a. Lease interest
b. Real property
c. Undivided interests
d. Financial interests
685. A form of ownership in which a
corporation owns the land
improvements, and the residents own stock
in the corporation. Then, the corporation
signs an exclusive lease with the tenant
stockholder.
a. Cooperative
b. Condominium
c. Time-share
d. Severalty
686. A form of partial ownership in which other
tenants in common purchase the right of
use/occupancy for a specified period of
time, say one week per year.
a. Cooperative
b. Condominium
c. Time-share
d. Severalty
687. The final step in the valuation process.
a. Identification of the real estate
b. Data analysis
c. Correlation of value
d. Valuation reporting
688. Communicates to users and third-party
readers the value conclusion and confirms
the basis of the valuation, the purpose of
the valuation, and any assumptions or
limiting conditions underlying the valuation.
a. Valuation report
b. Valuation process
c. Correlation of value
d. Valuation approaches
689. The following statements are true when
applied to Valuation Standards except
a. STANDARDS ARE STATEMENTS OF
RECOGNIZED PRINCIPLES AND
CONCEPTS
b. STANDARDS ARE STATEMENT OF
BEST PRACTICE IN PROCUREMENT
AND REPORTING
c. STANDARDS ARE STATEMENTS OF
ACCEPTED DEFINITIONS
d. STANDARDS PRESCRIBE SPECIFIC
METHODS OF VALUATION FOR
DIFFERENT PURPOSES
690. The value of property to a particular
investor, or a class of investors, for
identified investment or operational
objectives.
a. Investment Value
and b. Value in use
c. Going concern value
d. Market value
691. An amount above the Market Value that
reflects particular attributes of an asset that
are only of value to a particular
purchaser.
a. Plottage value
b. SPECIAL VALUE
c. Investment value
d. Value in use
692. This is a form of ownership in which an
owner has an interest (usually fee simple) in
a certain unit defined such as the space
between the interior walls, the ceiling, and
the floor of that unit and the owner also
owns a pro-rata share of the common areas
(drives, grounds, recreational amenities,
etc.) within the development.
a. Cooperative
b. Leased fee estate
c. Fee simple
d. Condominium
693. An additional element of value created
by the combination of two or more
interests where the value of the
combined interest is worth more than
the sum of the original interests.
a. SYNERGISTIC VALUE.
b. Market value
c. Investment value
d. Going concern value
694. The International Financial Reporting
Standards adopt these two models for the
recognition of property assets in the
balance sheet:
a. Cost model and value in use model
b. COST MODEL AND FAIR VALUE
MODEL
c. Cost model and investment value model
d. Cost model and going concern value
model
695. Assets owned and/or controlled by
governmental or quasi-governmental
57
 entities to provide goods or services to the b. Asset based valuation
general public. c. Cost approach
a. PUBLIC SECTOR ASSETS d. Income approach
b. Real estate 702. A form of real property, arising from the
c. Income generating assets contractual relationship between one
d. Real property who owns the property and one who
696. This concept is based on the notion that typically receives a non-permanent right
although two or more parcels of real estate to use the property in return for rental
may have physical similarities and closely payments or other valuable economic
resemble one another, there may be consideration.
significant differences in how they can be a. Lease interests
used. b. Fee simple
a. Utility c. Freehold
b. Value d. Condominium
c. Highest and best use 703. In business valuation, this approach
d. Substitution may be similar to the cost approach
697. The approach to value perceives value as used by appraisers of different types of
created by the expectation of future benefits assets.
(income streams). a. Income approach
a. Market data approach b. Market data approach
b. Income approach c. Residual technique
c. Cost approach d. ASSET-BASED APPROACH
d. Allocation 704. Specific materials that, by their presence or
698. This approach to value recognizes that proximity, may have adverse effect on
property prices are determined by the property value because of their potential to
market. Market Value can, therefore, be cause harm to life-forms.
calculated from a study of market prices for a. Fully depreciated buildings and
properties that compete with one another improvements
for market share. b. Hazardous and toxic substances
a. Market data approach c. Non-fruit bearing trees
b. Cost approach d. Informal settlers
c. Capitalization process 705. The current cost of replacing an asset with
d. Income approach its modern equivalent asset less deductions
699. When data are available, this approach for physical deterioration and all relevant
to value is the most direct and forms of obsolescence and optimization.
systematic approach to estimating a. Replacement cost
value. b. Reproduction cost
a. Cost approach c. Cost to cure
b. Income approach d. Quantity survey method
c. Market data approach 706. Refers to the loss in value of an asset
d. Residual technique resulting from wear and tear over time,
700. Describes a valuation where an entire including any lack of maintenance.
business is transferred as an operational a. Functional obsolescence
entity. b. Economic obsolescence
a. Going concern value c. Deferred maintenance
b. Value in use d. PHYSICAL DETERIORATION
c. Market value 707. Refers to loss in value that can be caused
d. Investment value by advances in technology that result in
701. This approach to value is also known as the new assets being capable of a more
contractor’s method, and is recognized efficient delivery of goods and services.
in most countries. a. FUNCTIONAL OBSOLESCENCE
a. Market data approach b. Economic obsolescence
58
 c. Deferred maintenance
d. Physical deterioration
708. A charge against a property in which the
property is security for payment of a
debt is called a
a. LIEN.
b. mortgage.
c. escheat.
d. restriction.
709. The Enchanted Kingdom theme park in
Sta. Rosa has had a significant impact
on uses of land in its vicinity for many
years and an influence on the value of
that land. Which of the four forces does
this represent?
a. Social
b. Governmental
c. ECONOMIC
d. Environmental
710. A financial modeling technique used in
the income approach to value that is
based on explicit assumptions regarding
the prospective income and expenses of
a property or business.
a. Direct capitalization
b. Annuity method
c. Discounted cash flow analysis
d. Investment method
711. A type of review undertaken to ensure that
a valuation meets or exceeds the
compliance requirements or guidelines of
the specific market and, at a minimum,
conforms to Generally Accepted
Valuation Principles of the Philippine
Valuation Standards.
a. Field review
b. Technical review
c. Desk review
d. ADMINISTRATIVE REVIEW
712. The rights and privileges granted to the
owner of intangible assets.
a. Personal property
b. Bundle of rights
c. INTANGIBLE PROPERTY
d. Tangible property
713. A valuation review that is limited to the
data presented in the report, which may
or may not be independently confirmed.
a. Field review
b. Technical review
c. DESK REVIEW
d. Administrative review
714. This theory involves the concept that land
cannot be valued under one highest and
best use while the improvements are valued
based on another highest and best use.
a. Consistent use
b. Contribution
c. Balance
d. Anticipation
715. Refers to a housing program and projects
covering houses and lots or homeless only
undertaken by the government or the
private sector for the underprivileged and
homeless citizens.
a. Low cost housing
b. Socialized housing
c. Subdivision development
d. Bliss project
716. A valuation review performed by an
appraiser to form an opinion as to whether
the analyses, opinions, and conclusions in
the report under review are appropriate,
reasonable, and supportable.
a. Field review
b. Technical review
c. Desk review
d. Administrative review
717. These are individual properties, such as
hotels, fuel stations, and restaurants that
usually change hands in the marketplace
while remaining operational.
a. Specialized properties
b. Public sector assets
c. Institutional properties
d. Trade related properties
718. A revenue-raising procedure, based on the
assessed value of property related to a
scale of charges defined by statute within a
specified time-frame.
a. Gross income taxation
b. AD VALOREM TAXATION
c. Capital gains taxation
d. Estate taxation
719. In mass appraisal, this is the process of
analyzing sets of property and market
data to determine the specific
parameters operating upon a model.
a. Standard deviation
b. Range
c. Mode
d. CALIBRATION
720. The practice of appraising multiple
properties as of a given date by a
59
 systematic and uniform application of d. SUPPLY
appraisal methods and techniques that 726. In property markets, this constitutes the
allow for statistical review and analysis of number of possible buyers or renters
results. SEEKING SPECIFIC TYPES OF
a. MASS APPRAISAL PROPERTY interests at various prices in a
b. Valuation process given market within a given period of time,
c. Multiple regression assuming other factors such as population,
d. Grid analysis income, future prices, and consumer
721. Represents the ownership interest of a preferences remain constant.
lessor owning real estate that is subject to a. DEMAND
lease to others b. Supply
a. Leasehold fee estate c. Active market
b. Leased fee estate d. Efficient market
c. Partial interest 727. This economic principle holds that value is
d. Bundle of rights simply a function of the present worth of
722. Any form of lease rental arrangement in future benefits.
which the lessor receives a form of rental a. Principle of substitution
that is based on the earnings of the lessee. b. Principle of contribution
Percentage rent is an example. c. Principle of anticipation
a. TURNOVER RENT d. Principle of highest and best use
b. Base rent 728. Public sector land valuation and taxation
c. Market rent in the Philippines is the domain of two (2)
d. Economic rent arms of the government, namely:
723. Rights generally inherent in the a. Department of Budget and Management
ownership of real estate include and Local Government Units
are referred to as b. Land Registration Authority and Bureau
a. Property rights of Internal Revenue
b. Real property c. LOCAL GOVERNMENT UNITS AND
c. Bundle of rights BUREAU OF INTERNAL REVENUE
d. Lease interests d. Local Government Units and National
724. At the most fundamental level, value is Tax Research Center
created and sustained by the 729. Related to the property itself, this principle
interrelationship of five factors that are holds that value is achieved and maintained
associated with any product, service, or when all elements are in proper
commodity. These factors are – proportion.
a. Utility, need, purchasing power, buyers a. Principle of conformity
and sellers b. Principle of balance
b. Capital markets, money markets, c. Principle of contribution
discount rate and reserve requirements d. Principle of increasing and decreasing
c. Utility, scarcity, desire, purchasing returns
power, and transferability 730. This economic principle holds that as time
d. Location, size, shape, terrain and and market conditions change, so does
elevation supply and demand for real estate, and
725. In property markets, this represents the thus, the value of real estate.
quantity of property interests that are a. Principle of change
AVAILABLE FOR SALE OR LEASE at b. Principle of substitution
various prices in a given market within a c. Principle of anticipation
given period of time, assuming labour and d. Principle of progression or regression
production costs remain constant. 731. This economic principle holds that a
a. Demand prudent purchaser would pay no more for a
b. Purchasing power home than it would cost him or her to build
c. Desirability or buy another one.
60
 a. Principle of conformity (including buildings). This concept applies
b. Principle of balance in what economic principle affecting values?
c. Principle of contribution a. Economies of scale
d. Principle of substitution b. Contribution
732. A valuation review that includes c. Balance
inspection of the exterior and sometimes d. SURPLUS PRODUCTIVITY
the interior of the subject property and 738. This term means coordination or
possibly inspection of the comparable management.
properties to confirm the data provided in a. Capital
the report. b. Labor
a. Technical review c. ENTREPRENEURSHIP
b. Desk review d. Production
c. Administrative review 739. This comparative approach considers the
d. Field review sales or offers of similar or substitute
733. It is defined as that logical, legal, and most properties and related market data, and
probable use which will yield the greatest establishes a value estimate by processes
net income to the land over a sustained involving comparison.
period of time. a. Market data approach
a. Interim use b. Income approach
b. Actual use c. Cost approach
c. Highest and best use d. Development technique
d. Existing use 740. The process of orchestrating land, labor,
734. An ______________ market is one and capital to produce an item.
that is characterized by goods or a. Conduction
services that are easily produced and b. Analysis
readily transferable, with a large c. ENTREPRENEURSHIP
number of buyers and sellers. d. Capitalization
a. Active 741. The forces that impact real estate values
b. Calm are the following:
c. Inefficient a. Physical, economical, sociological and
d. EFFICIENT physiological
735. This theory is based on the idea that the b. Population, income level, skill levels and
greater the volume of an item, the less each social environ
incremental volume should cost. c. SOCIAL, ECONOMIC, PHYSICAL OR
a. Cheaper by the dozen ENVIRONMENTAL AND
b. ECONOMIES OF SCALE GOVERNMENTAL
c. Anticipation d. Political, economical, governmental and
d. Increasing returns physical
736. The surplus productivity principle 742. These forces relate to trends in society or
recognizes the four agents of production, culture, and sometimes these forces are
which are imagined while at other times they are
a. Land, buildings, other land based on actual facts and figures.
improvements and machinery a. Environmental
b. Plant, machinery, equipment and b. Governmental
technology c. Physical
c. Land, labor, capital and d. SOCIAL
entrepreneurship 743. A / An ______________________ is a
d. Land, buildings, labor and capital group of complementary land uses.
737. In any enterprise, labor must be paid a. Zone
first, with capital paid after that, b. Area
entrepreneurship is then paid. The c. NEIGHBORHOOD
residual income is attributed to the land d. Municipality
61
 b. market analysis.
744. In the application of this technique to c. market segmentation.
estimate value, the building value is d. market study.
estimated as the present value of the 751. In this type of market, goods and services
residual income attributable to the building are not readily produced or easily
of an income producing property. transferable, with no readily identified
a. BUILDING RESIDUAL TECHNIQUE group of buyers and sellers active in a
b. Land residual technique particular marketplace.
c. Property residual technique a. Efficient market
d. Development technique b. INEFFICIENT MARKET
745. The term used to describe the connecting of c. Buyer’s market
complementary uses to the homogenous d. Seller’s market
land uses (zone) is 752. The study of a specific market. It is the
a. LINKAGE. collection and dissection of data and the
b. road network. conversion of that data to information
c. Passage. that can be used for analysis and
d. right-of-way. decision-making by an appraiser or
746. Neighborhoods and zones alike analyst.
generally exist in one of four life cycle a. Marketability study
stages; these are – b. Feasibility study
a. growth, stability, renovation, and rebirth c. MARKET ANALYSIS
b. growth, decline, reconstruction, and d. Investment analysis
revitalization 753. A rate of return used to convert a
c. GROWTH, STABILITY, DECLINE, AND monetary sum, payable or receivable in
REVITALIZATION. the future, into present value.
d. growth, stability, decline and rebuilding Theoretically it should reflect the
747. These are assets that embody a cultural, opportunity cost of capital, i.e., the rate
historic, and/ or architectural heritage. of return the capital can earn if put to
a. Agricultural properties other uses having similar risk.
b. HISTORIC PROPERTIES a. Internal rate of return
c. Trade related properties b. DISCOUNT RATE
d. Public sector assets c. Overall rate
748. The initial stage in a neighborhood or d. Investment rate
zone’s life cycle. This refers to the period in 754. The three types of market analysis are:
which the neighborhood or zone is a. MARKET STUDY, MARKETABILITY
expanding and developing. STUDY AND FEASIBILITY STUDY
a. Revitalization b. Market data approach, sales
b. Decline comparison approach and offers
c. Stability c. Investment analysis, economic base
d. GROWTH analysis, monetary analysis
749. When a neighborhood can no longer d. Statistical study, market study and
compete with other comparable demographics study
neighborhoods, it usually enters the 755. The analysis of an environment of
_________________ stage of its life cycle. buyers/sellers and/or landlords/tenants
a. Revitalization (lessors/lessees).
b. Decline a. Marketability study
c. Stability b. Feasibility study
d. Growth c. MARKET STUDY
750. The act of distinguishing or delineating d. Investment analysis
markets that the appraiser should consider 756. Type of market analysis that addresses
in his data program is called the time required to absorb a particular
a. market segregation. product, and the price or rent level at
62
 which that product would be accepted b. OF RENTAL GAIN OR LOSS AND THE
into the marketplace. VALUE OF THE LEASEHOLD
a. Marketability study IMPROVEMENT, IF ANY
b. Feasibility study c. of rental payment plus reversion value of
c. Market study the property at the end of the lease
d. Investment analysis agreement
757. A ____________ study is simply a d. of rental gain or loss plus reversion
comparison of cost versus the value if the value of the leasehold improvement, if
project is undertaken. any
a. Marketability study 763. A _____________________ leasehold
b. Feasibility study interest is created when the contract rent
c. Market study is higher than the current market rent.
d. Investment analysis a. Positive
758. A study undertaken for the purposes of b. Equal
development and investment, the c. Zero
evaluation of investment performance, or d. NEGATIVE
the analysis of a transaction involving 764. A group of homogenous land uses.
investment properties. a. DISTRICT
a. Economic base study b. Neighborhood
b. Market study c. City
c. Feasibility study d. Municipality
d. INVESTMENT ANALYSIS 765. Typically, a factor produced by two
759. A mortgage secured by a group of components, which reflects precise
properties or a number of lots. differences between properties and
a. Blanket mortgage facilitates analysis in the three approaches
b. Simple mortgage to value, e.g., price per square meter or
c. Lein square foot, or the ratio of a property’s sale
d. Mechanic’s lien price to its net income (net income
760. If the contract rent and the market rent multiplier/years’ purchase).
are equal, the Leasehold or Lessee’s a. Comparable data
Interest is _______________, assuming b. Elements of comparison
there is no leasehold improvement. c. UNITS OF COMPARISON
a. Positive lease d. Physical characteristics
b. Negative lease 766. The cost to create a virtual replica of the
c. ZERO existing structure, employing the same
d. Balanced design and similar building materials.
761. This comparative approach to value a. Replacement cost, new
involves the cost of acquiring equivalent b. Unit-cost-in-place method
land and constructing an equivalent new c. Quantity survey method
structure. d. Reproduction cost, new
a. Market data approach 767. The current cost of a similar new item
b. COST APPROACH having the nearest equivalent utility as
c. Income approach the item being appraised.
d. Builder’s method a. Replacement cost, new
762. In operating lease, the value of the b. Unit-cost-in-place method
Lessee’s Interest is estimated as the c. Quantity survey method
present value 768. An asset which has a similar function
a. of rental payment for remaining life of and equivalent productive capacity to
the lease agreement the asset being valued, but of a current
design and constructed or made using
current materials and techniques.
a. Replacement asset
63
 b. Reproduced asset 774. The Subic Freeport Zone is one of the
c. MODERN EQUIVALENT ASSET largest developments in Central Luzon.
d. Public sector asset What force does this represent?
769. The process of adjusting the replacement a. Social
cost to reflect that an asset may be b. Governmental
technically obsolete or over-engineered, or c. Economic
the asset may have a greater capacity d. Environmental
than that required. 775. The process by which a least cost
a. Reproduction cost, new replacement option is determined for the
b. Capitalization remaining service potential of an asset.
c. Value engineering a. Reproduction cost, new
d. OPTIMIZATION b. Capitalization
770. A real estate mall developer purchases c. Value engineering
a site with the intent of building a d. OPTIMIZATION
regional mall because the immediate 776. Method of estimating the reproduction
area has a significant number of cost or replacement cost that involves
households and the income level of the adjustment of the original costs to
those households is affluent. What type current costs by a multiplier derived from
of force is the neighborhood going published cost indexes.
through? a. Unit-in-place
a. SOCIAL b. Comparative
b. Governmental c. Quantity survey
c. Economic d. Index or trending
d. Environmental 777. Type of lease which involves the transfer
771. Specific characteristics of properties ownership from lessor to lessee.
and transactions that cause the prices a. Operating lease
paid for real estate to vary. b. FINANCING LEASE
a. Comparable data c. Leased fee
b. Units of comparison d. Leasehold fee
c. ELEMENTS OF COMPARISON 778. Lose in property value are caused by
d. Comparable sale prices deterioration or obsolescence
772. Method of estimating the reproduction cost a. DEPRECIATION
or replacement cost that combines the b. Deferred maintenance
direct and indirect costs into a single unit- c. Cost to cure
in-place amount, which when multiplied by d. Replacement cost
the unit measure of the improvement’s 779. The difference between the cost to
component will yield the cost of the reproduce or replace a property and its
component. present value
a. Unit-in-place a. Replacement cost
b. Comparative b. Cost to cure
c. Quantity survey c. DEPRECIATION
d. Index or trending d. Regression
773. The cost of replacing an asset with an 780. Major causes of depreciation are the
equally satisfactory substitute asset; following except
normally derived from the current a. Deferred maintenance
acquisition cost of a similar asset, new or b. Physical deterioration
used, or of an equivalent productive c. Functional obsolescence
capacity or service potential. d. External obsolescence
a. Replacement cost 781. Refers to the wear and tear from regular
b. Unit-cost-in place use and the impact of the elements
c. Reproduction cost a. Physical deterioration
d. Builder’s method b. Functional obsolescence
64
 c. External obsolescence
d. Adverse market condition
782. Method of estimating reproduction or
replacement costs by applying the average
or typical comparative cost (per square-
meter cost) of similar improvements.
a. Quantity survey method
b. Unit-in-place method
c. Comparative method
d. Index or trending method
783. This cost estimate envisions constructing a
structure of comparable utility, employing
the design and materials that are currently
used in the market.
a. Reproduction cost
b. Replacement cost
c. Quantity survey method
d. Unit-in-place method
784. The period of time over
which improvements
contribute to property
value.
a. Useful life
b. ECONOMIC LIFE
c. Remaining life
d. Lifespan
785. Lose in value caused by a flaw in the
structure, materials, or design that
diminishes the function, utility, and value of
the improvement
a. Functional obsolescence
b. Economic obsolescence
c. Physical deterioration
d. Deferred maintenance
786. The period of time over which the
components of the improvement may
reasonably be expected to perform the
functions for which they were designed.
a. Economic life
b. USEFUL LIFE
c. Remaining life
d. Used life
787. The age indicated by the condition and
utility of a structure
a. Used life
b. Chronological life
c. EFFECTIVE AGE
d. Actual age
788. A method of estimating depreciation that
involves the development of
depreciation estimate by studying sales
of comparable properties that have
depreciated to a similar degree as the
improvement.
a. Cost to cure method
b. Component method
c. Market extraction method
d. Observed condition method
789. A method of estimating depreciation
whereby the appraiser estimates the
total economic life expectancy of the
existing structure as well as its effective
age, based on an analysis of sales of
similar structures
a. Age-life method
b. Component method
c. Market extraction method
d. Observed condition method
790. The estimated period from the actual age of
a component to the end of its total useful
life expectancy.
a. Remaining economic life
b. REMAINING USEFUL LIFE
c. Actual age
d. Effective age
791. An impairment of the utility or salability of
an improvement or property due to
negative influences outside the property.
a. Functional obsolescence
b. Physical deterioration
c. Adverse market condition
d. Economic obsolescence
792. Sometimes CALLED HISTORICAL AGE
OR CHRONOLOGICAL AGE, is the
number of years that have elapsed since
building construction was completed.
a. Effective age
b. ACTUAL AGE
c. Remaining useful life
d. Remaining economic life
793. A method of estimating the reproduction
cost or replacement cost that involves a
complete cost itemization of all direct and
indirect cost to be incurred or incurred in the
construction of an improvement.
a. Index method
b. Cost-in-place method
c. QUANTITY SURVEY METHOD
d. Comparative method
794. Primarily used to allocate a known amount
of total depreciation, estimated by either the
a market extraction method or the age-life
method, into its components
a. Component method
65
 b. Market extraction method b. Market rent
c. Age-life method c. Rental rate
d. BREAKDOWN METHOD d. Leased fee
795. The process of retiring a mortgage or 802. Financial vehicles with traditional
debt over a specified time period. maturities or investment periods of
a. Debt service less than one year.
b. Installment a. Capital markets
c. AMORTIZATION b. Cash deposits
d. Equity c. Time deposits
796. Represents the money earned for the d. MONEY MARKETS
right to use capital. 803. In the income approach to value,
a. Equity reconstructed operating statements specify
b. Amortization that the income projection is subject to the
c. Interest assumption that the property is run by a / an
d. Principal amount a. expert competent management.
797. Also known as debt service. b. AVERAGE COMPETENT
a. Amortization MANAGEMENT.
b. Equity c. inefficient operator.
c. Installment d. substandard management.
d. PAYMENT 804. Financial vehicles with usual maturities
798. Credit regulation devices that the of more than one year.
Bangko Sentral ng Pilipinas can use to a. CAPITAL MARKETS
regulate the supply of money. b. Cash deposits
a. Lending rates and amortization rates c. Time deposits
b. Capitalization rates and mode of d. Money markets
payments 805. In this technique the land value is
c. DISCOUNT RATES AND RESERVE estimated as the present value of the
REQUIREMENTS residual income attributable to the land of
d. Production of new bills and disposal of an income producing property.
old bills a. Building residual technique
799. The government’s management of b. Development technique
revenues (taxes) and expenses c. LAND RESIDUAL TECHNIQUE
(appropriations) is called d. Discounted cash flow analysis
a. monetary policy 806. A loan for personal property and secured by
b. FISCAL POLICY personal property.
c. repayment policy a. Real estate mortgage
d. credit policy b. Chattel mortgage
800. The Philippines’ fiscal policy is managed c. Liens
by the d. Blanket mortgages
a. Bangko Sentral ng Pilipinas 807. __________ specify that the income
b. Department of Finance projection is subject to the assumption that
c. Department of Budget and Management the property is run by a reasonably efficient
d. Department of Justice operator or average competent
801. The estimated amount for which a property, management.
or space within a property, should lease on a. Operating statements supplied by client
the date of valuation between a willing b. Operating statements supplied by agent
lessor and a willing lessee on appropriate of client
lease terms in an arm’s length transaction, c. OPERATING STATEMENTS
after proper marketing wherein the parties RECONSTRUCTED BY THE
had each acted knowledgeably, prudently, APPRAISER
and without compulsion d. Operating statements reconstructed by
a. Contract rent the internal auditor
66
808. The process of converting an income
stream into value.
a. CAPITALIZATION
b. Investment analysis
c. Market analysis
d. Depreciation
809. The resulting amount of reducing the
annual potential gross income by a
vacancy allowance amount.
a. Gross profit
b. Net operating income
c. Effective net income
d. Effective gross income
810. Operating expenses are deducted from
the effective gross income to determine
the
a. ANNUAL NET OPERATING INCOME
FOR THE PROPERTY.
b. annual net profit for the property.
c. annual gross profit for the property.
d. annual depreciation of the property.
811. Process of converting income into value
by dividing a single year’s stabilized net
operating income, by an all-risks rate.
a. Yield capitalization
b. Discounted cash flow analysis
c. DIRECT CAPITALIZATION
d. Valuation approach
812. In the application of the discounted
cash flow analysis to operating real
properties, the value of the property
is estimated as the net present value
of
a. The series of periodic net operating
incomes.
b. The reversion value, anticipated at the
end of the projection period.
c. THE SERIES OF PERIODIC NET
OPERATING INCOMES, ALONG WITH
AN ESTIMATE OF THE REVERSION
VALUE, ANTICIPATED AT THE END
OF THE PROJECTION PERIOD.
d. The value of the business at the end of
the projection period.
813. Profit-making entities operating to
provide consumers with products
or services.
a. Financial interests
b. Real property
c. Public sector asset
d. BUSINESSES
814. A credit regulation device of the BSP that
refers to the percentage of deposits that
must be retained by banks.
a. Discounted rates
b. Fiscal policy
c. Credit regulation
d. RESERVE REQUIREMENT
815. In the application of the discounted cash
flow analysis to development properties, the
value of the properties is estimated as the
present value of the
a. THE SERIES OF NET CASH FLOWS
THAT ARE DISCOUNTED OVER THE
PROJECTED DEVELOPMENT AND
MARKETING PERIODS.
b. The series of periodic net operating
incomes, along with an estimate of the
reversion value, anticipated at the end of
the projection period.
c. The series of dividends and the value of
the business at the end of the projection
period.
d. The series of periodic net operating
incomes.
816. This capitalization process considers the
time value of money, and is applied to a
series of net operating incomes for a
period of years.
a. Direct capitalization
b. YIELD CAPITALIZATION
c. Discounted rate
d. Internal rate of return
817. The estimated period over which existing
improvements are expected to continue to
contribute to property value
a. Remaining useful life
b. Effective age
c. Actual age
d. Remaining economic life
818. A method that is used to build a
capitalization rate using just two
components; financing and equity.
a. Build-up method
b. All risks method
c. Band of investment method
d. Gross income multiplier method
819. Defines the percentage number used to
determine the current value of a property
based on estimated future operating
income.
a. Absorption rate
67
 b. Selling rate b. OVERALL RATE
c. Buying rate c. Internal rate of return
d. Capitalization rate d. Recapture rate
820. Acquisition of private land by the 827. Interest Rate + Recapture Rate equals
government for public use could be a. Discounting rate
undertaken thru the following procedures, b. OVERALL RATE
except c. Internal rate of return
a. Negotiated sale or purchase d. Return on investment
b. Expropriation 828. This government or public restriction to
c. Exchange or barter ownership provides that if a person dies
d. Foreclosure without a will and heirs, that person is said
821. A _________________ leasehold interest to have died intestate, and that person’s
is created when the market rent is property transfers to the state.
greater than the contract rent. a. Eminent domain
a. Negative b. Police power
b. Equal c. Escheat
c. Zero d. Expropriation
d. Positive
822. The rate that equates the present value of PART 2: PROFESSIONAL PRACTICE
the net cash flows of a project with the
present value of the capital investment. 829. If a property’s net income ratio is 0.80,
a. DISCOUNTING RATE what is its operating expense ratio?
b. Overall rate a. 0.02
c. Internal rate of return b. 2.0
d. Recapture rate c. 0.80
823. This rate reflects both the return on the d. 0.20
invested capital and the return of the
original investment, which are basic An office building was recently sold for
considerations of potential investors. P60,000,000. Given the following
a. Discounting rate information:
b. Overall rate Gross potential income : P12,000,000
c. INTERNAL RATE OF RETURN Vacancy factor : 10%
d. Recapture rate Expenses : 45% of effective
824. The rent specified by a given lease gross income
arrangement. Annual mortgage payment : P4,500,000
a. Economic rent Equity : P12,500,000
b. Market rent 830. What is the equity dividend rate or cash-on-
c. Contract rent cash rate of return?
d. Rental rate a. 7.48%
825. The following are standard tests for highest b. 12.00%
and best of real property, except c. 11.52%
a. PHYSICALLY POSSIBLE d. 7.50%
b. POLITICALLY PERMISSIBLE
c. FINANCIALLY FEASIBLE Solution
d. MAXIMALLY PRODUCTIVE GPI 12M
826. Applicable to real estate improvements, the Less: Vacancy 10% 1.2M
rate warranted by prudent investors that will EGI 10.8M
represent the return on investment (usually Less: Exp.45% 4.86M
the interest rate or capitalization rate) and NOI 5.94M
the return of investment, for improvements, Less: Debt Service 4.5M
this is represented by the recapture rate. BTCF 1.44M
a. Discounting rate
68
 Dividend Rate or COC = BTFC/EQUITY = Land Cap Rate 8%
1.44M/12.5M = 11.52% Building Rate 14%
NOI 545,000
831. For the office building above and the same
information, what is the over-all rate of Income Due to Building = BV×BR =
return for the property? 2.4M×14% = 336K
a. 8.58% Income Due to Land = NOI – Income Due to
b. 12.00% Building = 545K – 336K = 209K
c. 7.50% Land Value = Income Due to Land/Land
d. 9.90% Rate = 209K/8% = 2,612,500
Total Value = Building Value + Land Value
Solution = 2.4M+2,612,500 = 5,012,500
Over All Rate Of Return
RO = NOI/SP = 5.94M/60M = 9.9% 835. To adjust the sale price of a comparable
sale with a 10% better location, you should
832. If the land value in a subdivision has a. Add 10% to the sale price of the
increased by 12% during the past year comparable
and the average price of land sold last b. Multiply the sale price of comparable by
year was P 1,560,000, what is the 10%
average price of land sold today? c. Subtract 10% from the price of the
a. P 1,372,800 subject of appraisal
b. P 1,716,000 d. Subtract 10% from the sale price of
c. P 1,572,500 the comparable
d. P 1,747,200 836. Subject of appraisal is a 4-bedroom house.
Based on the following paired data
Averagae Selling Price = 1.56M×1.12 = gathered, what would be estimated value of
1,747,200 the subject of appraisal?
Market data:
833. A commercial property producing an annual 3-bedroom house was recently sold for P
gross income of P768,500 was sold two 6,455,000
months ago for P5,620,000. What is the 2-bedroom house was recently sold for P
property’s gross income multiplier? 6,250,000
a. 7.50 a. P 6,455,000
b. 7.40 b. P 6,600,000
c. 7.21 c. P 6,660,000
d. 7.31 d. P 6,665,000
8.50 GIM = Sales Price/Gross Income =
5.62M/768,500 = 7.31 Solution
Value of 2BR : 6,250,000
834. What is the value of a property with a Value of 3BR : 6,455,000
building value of P2,400,000, a land Value of 4BR : 6,455,000 + (6,455,000 –
capitalization rate of 8.0%, building overall 6,250,00) = 6,660,000
rate of 14% and net operating income of
P545,000? 837. A residential house was constructed in
a. P 4,012,000 2001 for P 12,568,000. The cost index
b. P 6,812,500 published at that time was 178.20. The
c. P 4,921,000 current cost index from the same cost
d. P 5,012,500 reporting service is 360.70. What is the
current indicated reproduction cost of the
Solution residential house?
Given: a. P 25,439,000
Building Value 2.4M b. P 25,349,000
69
 c. P 25,136,000 a. Property value of P 2,500,000, potential
d. P 25,316,000 gross income of P 200,000
b. Property value of P 2,500,000, effective
Solution gross income of P 200,000
Given: c. Property value of P 2,500,000, net
House Built 2001 : 12,568,000 operating income of P 200,000
Cost Index 2001 : 178.20 d. Property value of P 4,000,000, net
Current Index : 360.70 operating income of P 320,800
842. The property subject of appraisal is 15%
RCN = 12,568,000 × (360.70/178.20) = superior than the subject of a comparable
25,439,268.24 sale. The comparable was sold for
P2,212,000, what is the indicated value of
838. What is the indicated value of a 6-year-old the subject?
building with a floor area of 360 square a. P 1,880,200
meters, if the current cost of construction of b. P 1,923,500
similar buildings is P15,000 per square c. P 2,602,400
meter of the floor area, and the estimated d. P 2,543,800 (2,212,000 × 1.15)
depreciation of the building is 2% per year? 843. An office building has depreciated by 50%
a. P 4,572,000 since it was built 25 years ago. If it would
b. P 4,752,000 cost P 39,200,000 to build today, and if
c. P 5,400,000 similar sites are for P 25,000,000, what is
d. P 5,752,000 the estimated market value of the property
today?
Solution a. P 64,200,000
RCN = 360 × 15K = 5.4M b. P 48,520,000
Less Depreciation (2% × 6 × RCN) = 648K c. P 44,600,000
VALUE = 5.4M – 648K = 4,752,000 d. P 54,600,000

839. A building has a rental income of P 60,600 Assume the following:

per month. Using an annual gross rent Annual net operating income of the property
multiplier of 15, the value of the building : P 1,100,000
would be estimated at – Land value : P 4,500,000
a. P 909,000 Interest rate : 8%
b. P 10,800,000 Recapture rate : 4%
c. P 727,200 844. What is the property value by the building
d. P 10,908,000 residual technique?
a. P 10,666,667
60,600×12×15 = 10,908,000 b. P 11,666,667
c. P 9,666,667
840. The value of a property consisting of land d. P 12,666,667
and building with an annual net operating
income of P330,000 and with an over-all Solution
capitalization rate of 12.50% is – Income Due to Land
a. P 2,640,000 = LV×BR
b. P 2,750,000 = 4.5M×8%
c. P 2,400,000 = 360K
d. P 2,570,000
Income Due to Building
330K/12.5% = 2,640,000 = NOI – Income Due to Land
= 1.1M – 360K
841. Which of the following estimates would = 740K
result in a capitalization rate of 8% -
70
 Building Value maintenance. What is its value of the
= Income Due to Building/(Land Rate + building (exclusive of land value)?
Recapture Rate) a. P 72,000,000
= 740K/12% b. P 64,000,000
= 6,166,666.67 c. P 80,000,000
d. P 75,000,000
Total Property Value
= Building Value + Land Value Solution
= 4.5M + 6,166,666.67 RCN = 80M
= 10,666,666.67 Less: Accrued Depreciation = 10/50 (RCN)
= 16m
845. Mr. B owns a parcel of land leased to Mr. C Building Value 80M – 16M = 64M
at an annual rental rate of P1,000,000. The
lease has a remaining life of 6 years. What 849. A 10-year-old building is currently valued at
is the present value of the rentals if the P7,200,000. What was its original value if it
interest rate is 10% per year? Present worth has appreciated by 60% since it was built?
factor for annuity is 4.35526 and lump sum a. P 4,320,000
is 0.56447. b. P 2,880,000
a. P 4,355,260 c. P 4,500,000
b. P 3,386,820 d. P 5,142,900
c. P 1,771,573 850. The appropriate adjustment for time is
d. P 1,771,561 determined to be 8% per year. The time
adjustment for a comparable property that
Solution was sold a year ago for P10,000 per square
Present Value = 1M × Annuity Factor meter is
4.35526 = 4,355,260 a. Less P 800 per square meter
b. Plus, P 1,000 per square meter
846. A building was constructed 10 years ago c. Plus, P 800 per square meter (10K ×
and is well-maintained that based on the 8%)
observation of the appraiser its condition is d. Less P 1,000 per square meter
similar to other 6-year-old buildings. The 851. A lessee is renting a commercial space with
effective age of the building is a base rent of P7,000 per month plus 5% of
a. 10 years the gross sales exceeding P100,000 per
b. 4 years month. The lessee’s gross sales last year
c. 6 years was P1,600,000. How much rent was paid
d. 16 years last year?
847. A building was constructed 10 years ago a. P 184,000
and is well-maintained that based on the b. P 104,000
observation of the appraiser its condition is c. P 84,000
similar to other 6-year-old buildings. The d. P 114,000
actual age of the building is
a. 10 years Solution
b. 4 years Annual Rent = 7K × 12 = 84K
c. 6 years
d. 16 years Gross Sales = 1.6M
848. The reproduction cost new of a commercial Less: Threshold = 100K × 12 = 1.2M
building is estimated to be P80,000,000. 1.6M – 1.2M = 400K
The building should have an economic life
of 50 years, and it is now five years old. Overage Rent = 400K×5% = 20K
However, based on the observation of the Total Rent = Annual + Overage Rent = 84K
appraiser its effective age is similar to other + 20K = 104,000
10-year-old building due to poor
71
852. A 30-year mortgage covering 75% of d. P3,600,000
property value can be obtained from a bank
for 8.5%. The mortgage constant is 0.092. Solution
Equity for this type of property requires 12% Annual Rent = 24K × 12 = 288K
return. Value = I/R = 288K/8% = 3.6M
a. 9.00%
b. 9.90% 857. If a particular buyer requires a recapture of
c. 10.00% the building portion of the price in 30 years,
d. 10.50% what is the indicated recapture rate of the
building?
Solution a. 3%
RO = (.75 × .092) + (.25 + .12) = 0.069 + b. 3 ½%
0.03 = .099 or 9.90% c. 3 1/3% (1/30)
d. 3 ¼%
853. What would be recapture rate of a 858. Mr. A is leasing a 60-square meter
building having a remaining economic commercial space for P3,000 per square
life of 12 years – meter per year. Research indicate that
a. 112% similar space has a going market rate of
b. 88% P3,200 per square meter per year. What is
c. 8.33% (1/12) (100) the rental gain realized by Mr. A per year?
d. 8.00% a. P 1,200
854. In a property residual capitalization b. P 12,000
approach, what is the value of an improved c. P 2,400
property with a net income of P180,000 a d. P 24,000
year, an interest rate of 8% and a recapture
rate of 2%? Solution
a. P1,800,000 (180K/(8% + 2%) Market Rent – 3,200
b. P 2,250,000 Contract Rent – 3,000
c. P 3,000,000 Gain = 3.2K – 3K = 200 × 12 = 12,000
d. P 1,500,000
855. A house and lot is priced at P7,500,000. 859. A house and lot is priced at P8,800,000.
The lot alone is valued at P2,531,250. What The lot alone is valued at P1,650,000. What
is the percentage of the total asking price is percentage of the total asking price is
attributed to the house? attributable to the value of the lot?
a. 33 ¾ % a. 18.5 %
b. 33 ¼ % b. 19.0 %
c. 66 ¼ % c. 18 ¾ %
d. 66 ¾ % d. 18 ¼ %

Solution Solution
HL – 7.5M HL Value = 8.8M
Less Land – 2,531,250 Land Value = 1.65K
House Value = 4,968,750/7.5M = 66.25% Value of Land Percentage =
1,650,000/8.8M = 18.75% or 18 3/4
856. A vacant lot is rented for a car display for
P24,000 per month. The interest rate 860. A property with an annual net income of
applicable to this type of property is 8%. P336,000 was sold for P4,200,000. The
Compute the value of the property by remaining life of the building is 40 years.
income approach. Land value is P1,200,000. What is the
a. P2,400,000 overall rate for the property?
b. P2,600,000 a. 6.00%
c. P2,800,000 b. 7.00%
72
 c. 8.00%
d. 9.00%
Solution
Over all Rate = 336K/4.2M (100) = 8%
861. A comparable land was sold a year ago for
P30,000 per square meter. Its location is
considered 15% inferior and its shape and
topography is 10% superior to the subject
site. The time adjustment is 3% per year.
Determine the adjusted sale price of the
comparable site.
a. P 29,400 per square meter
b. P 32,400 per square meter
c. P 30,600 per square meter
d. P 38,400 per square meter
Solution
30K × 1 + (15% - 10% + 3%) = 32,400
862. A property with an annual net operating
income of P336,000 was sold for
P4,200,000. The remaining life of the
building is 40 years. Land value is
P1,200,000. What is the value of the
building?
a. P 3,000,000 (4,200 – 1200)
b. P 2,000,000
c. P 2,500,000
d. P 3,500,000
863. A property was sold for P60,000,000. Using
the rule-of-thumb of building-to-land ratio of
4:2, what is the value of the building?
a. P 20,000,000
b. P 30,000,000
c. P 40,000,000 (60M × 4/6)
d. P 50,000,000
864. A 10-year old residential apartment has a
reproduction cost of P6,250,000, broken
down into P 2,500,000 representing the
structural component, and P 3,750,000 for
the other component. Yearly allowance for
ordinary structural deterioration is 2%, while
the depreciation rate for the curable
component is 5% per year. Economic
obsolescence result in a rental loss of
P60,000 per year. What is the estimated
value of the building?
a. P 5,150,000
b. P 3,875,000
c. P 3,275,000
d. P 3,775,000
Solution
RCN : 6,250,000
Structural Component : 2,500
Other Component : 3,750,000
Deterioration : 2% per year
Depreciation : 5% per year
Economic Obsolescence rental loss :
60K per year
RCN Structural Component = 2.5M – (2% ×
10 × RCN) = 2.5M – 500K = 2M
RCN Other Component = 3.75M – ( 5% ×
10 × RCN) = 3.75M – 1.875M = 1.875M
Total RCN = 2M + 1.875M = 3.875M
865. A comparable property sold six months ago
for P1,250,000. Market investigation
indicates the following
Location adjustment : +5%
Time adjustment : +6%
Age adjustment : -7%
Given the above information, what is the
indicated value based on the comparable
property?
a. P1,232,250
b. P1,300,000
c. P1,325,000
d. P1,293,860
Solution
1,25M – (5% + 6% - 7%) = 1.3M
866. What is the reversion value of a property
with an estimated market value of
P12,540,000 2 years from now at an
interest rate of 10% per year?
a. P 15,048,000
b. P 15,173,400
c. P 10,363,635
d. P 10,157,400
PV = FV/ (1+i)2 = 12.54M/1+.1)2 = 12.54M /
1.21 = 10,363,636.36
867. A comparable property is identical to the
subject property being appraised. The
comparable was sold six months ago for
P1,000,000. As the appraiser, you must
make an adjustment for the time difference
73
 between the subject property and the PV = V(1+i)n
comparable. You have found a paired sale V = 200,000/1.1
of two houses, one of which was sold one V = 181.818
year ago for P800,000, and the other sold
yesterday for P880,000. What is the proper 870. A commercial structure is a rectangle with
estimated adjusted sales price for your sides of 80 meters and 145 meters and the
comparable? current local cost to build a similar structure
a. P880,000 is P18,500 per square meter. What is the
b. P1,000,000 estimated construction cost of the
c. P1,050,000 structure?
d. P1,100,000 a. P 214,600,000
b. P 208,800,000
Solution c. P 218,600,000
1M : Sold 6 Months d. P 215,600,000
800K : Sold 1 yr. ago
880K : Sold yesterday Questions nos. 47 to 49 are based on the
following information:
880K/800K = 1.10 or 10% in value in 1 year Building Value : P50,000,000
1M × 1.05 = 1,050,000 adjusted sales Net Operating Income : P8,350,000
price Building Capitalization Rate : 14%
Land Capitalization Rate : 9%
868. If a property has a net income ratio of 0.75 871. What is the residual income to the land?
and a gross income multiplier of 9, what is a. P 1,350,000
the indicated over-all capitalization rate? b. P 4,500,000
a. 6.75% c. P 3,850,000
b. 8.33% d. P 70,000,00
c. 2.78%
d. 12.00% Solution
Income of Building = Building Value ×
Solution Building Rate
GIM : 9 = 50M × 14% = 7M
NIR : .75 Income Land = NOI – Income of Building
= 8.35M – 7M = 1.35M
Gross Rent Multiplier = Sales Price /
Gross Income = .75/9 = 8.33% 872. What is the value of the land?
a. P 4,500,000
869. Corporation T is to lease a parcel of land for b. P15,000,000
1 year at P2,000,000. Research indicate c. P 9,642,850
that similar land has a market rent of d. P 42,777,750
P2,200,000 per year. What is the estimated
value of the leasehold interest if the rental Solution
payment is to be paid as a lump sum Value of Land = Land Income / Land Cap
amount today and the interest rate is 10%? Rate
a. P 200,000 = 1.35M/.09 = 15M
b. P 220,000
c. P 180,000 873. What is the total value of the property?
d. P 181,818 a. P 54,500,000
b. P 65,000,000
Solution c. P 59,642,850
Contract Rent : 2M d. P 92,777,750
Market Renr : 2.2M
Value : ?
74
 Total Property Value = Land Value + SET A MOCK EXAM REA
Building Value
= 15M+50M = 65M 880. A duly registered and licensed natural
person who works in a local government
For questions nos. 46 to 50: unit and performs appraisal and
874. Subject of appraisal is a house and lot and assessment of real estate properties,
the comparables are as follows: including plants, equipment, and
machineries, essentially for taxation
purposes.
a. Real estate appraiser
b. real estate assessor
c. Real estate consultant
d. real estate salesperson
e. Real estate broker
881. A duly registered and licensed natural
person who, for a professional fee,
compensation or other valuable
consideration, offers or renders professional
advice and judgment on: (i) the acquisition,
875. What is the adjustment for type of data – enhancement, preservation, utilization or
sale vs. offer? disposition of lands or improvements
a. P 120,000 thereon; and (ii) the conception, planning,
b. P 80,000 management and development of real
c. P 170,000 estate projects.
d. P 180,000 a. Real estate appraiser
b. real estate assessor
1,530,000 – 1,450,000 = 80,000 c. Real estate consultant
d. real estate salesperson
876. What is the adjustment for location? e. Real estate broker
882. A duly accredited natural person who
a. P 100,000
b. P 10,000 performs service for, and in behalf of a real
c. P 60,000 estate broker who is registered and licensed
d. P 110,000 by the Professional Regulatory Board of
877. What is the adjustment for type of Real Estate Service for or in expectation of
construction? a share in the commission, professional fee,
a. P 180,000 compensation or other valuable
b. P 120,000 consideration.
c. P 60,000 a. Real estate appraiser
d. P 90,000 b. real estate assessor
878. What is the adjustment for no. of c. Real estate consultant
bedrooms? d. real estate salesperson
a. P 50,000 e. Real estate broker
883. A duly registered and licensed natural
b. P 60,000
c. P 120,000 person who, for a professional fee,
d. P 40,000 commission or other valuable consideration,
879. What is the estimated value of the property
acts as an agent in a real estate transaction
assuming the data have equal importance? to offer, advertise, solicit, list, promote,
a. P 1,451,000 mediate, negotiate or effect the meeting of
b. P 1,451,100 the minds on the sale, purchase, exchange,
c. P 1,452,300 mortgage, lease or joint venture, or other
d. P 1,450,000 similar transactions on real estate or any
interest therein.
75
 a. Real estate appraiser
b. real estate assessor
c. Real estate consultant
d. real estate salesperson
e. Real estate broker
884. A duly registered and licensed natural
person who, for a professional fee,
compensation or other valuable
consideration, performs or renders, or offers
to perform services in estimating and
arriving at an opinion of or acts as an expert
on real estate values, such services of
which shall be finally rendered by the
preparation of the report in acceptable
written form.
a. Real estate appraiser
b. real estate assessor
c. Real estate consultant
d. real estate salesperson
e. Real estate broker
885. In corporate practice of real estate service,
there shall be at one license real estate
broker for every
a. 25 accredited salesperson
b. 35 accredited salesperson
c. 20 accredited salesperson
d. 40 accredited salesperson
e. 30 accredited salesperson
886. what is PRBRES
a. Philippine regulating board of real estate
service
b. Philippine regulation board of real estate
service
c. Philippine regulatory board of real
estate service
d. Philippine regulatory board of real estate
salesperson
887. Who is the Chairperson of PRBRES
a. Jose Arnold M. Tan
b. Rafael M. Fajardo
c. Ofelia C. Binag
d. Lovelika T. Bautista
e. Pilar M. Tores-Banaag
888. Who is the Chairman of PRC
a. Jose Y. Cueto
b. Eduardo G. Ong
c. Yolanda D. Reyes
d. Teofilo S. Pilando
889. Refers to any natural or juridical person
engaged in the business of developing real
estate development project for his/her own
account and offering them for sale
a. Real estate person
b. Real estate developer
c. Real estate development project
d. Real estate consultant
e. Real estate dealer
890. Refers to an official in the local government
unit, who performs appraisal and
assessment of real properties, including
plants, equipment and machineries for
taxation purposes.
a. Valuer
b. Local assessing operation officer
c. Appraiser
d. Tax Mapper
e. Assessor
891. Composition of the board of PRBRES
a. 1 chairperson and 3 members
b. 1 chairperson and 4 members
c. 1 chairperson and 2 members
d. 1 chairperson and 7 members
e. 1 chairperson and 5 members
892. For Real estate salesperson to be
accredited by the board must at least meet
the ff. requirements of (2021_
a. at least high school graduate and 80
credit units of seminar and training
b. at least 1 year of college and 12 credit
units of seminar and training
c. at least high school graduate and 12
credit units of seminar and training
d. at least 2 years of college and 8 credit
units of CPD seminar
893. Any violation of RA 9464, including
violation of IRR shall meted the penalty of
a fine of not less than______ or
imprisonment of not less than______ upon
discretion of the court
a. 100,000.00 and 6 months
b. 50,000.00 and 2 years
c. 100,000.00 and 2 years
d. 100,000.00 and 1 year
894. In relation to question number 633. In case
the violation is committed by an license real
estate service practitioner, the penalty shall
be_______the aforesaid fine and
imprisonment
a. Tripled
b. doubled
c. fivefold
d. reclusion perpetua
e. one half
76
895. The realty service practice can be
performed by juridical persons, except:
a. Real estate salesperson
b. Real estate consultant
c. Real estate broker
d. All of the above
e. Real estate appraiser
896. The national integrated organization of
natural persons duly registered and
licensed as real estate service practitioners
a. Accredited and Integrated
Professional Organization
b. Professional Regulatory Board of Real
Estate Service
c. Professional Regulation Commission
d. Philippine Association of Real Estate
Practitioners
e. None of the above
897. Conducts licensure examinations for the
practice of the real estate service
procession
a. Accredited and Integrated Professional
Organization
b. Professional Regulatory Board of Real
Estate Service
c. Professional Regulation Commission
d. Philippine Association of Real Estate
Practitioners
e. None of the above
898. The minimum educational requirement for
an applicant for a real estate broker’s
license is: (2021)
a. Holder of BSREM degree
b. 108 units in college
c. 72 units in college
d. 144 units in college
e. 82 units in college
899. A broker’s complaints for non-payments
of commission by the developer shall be
filed with:
a. HLURB
b. BTRCP
c. HUDCC
d. NHMFC
e. Regular Court
900. A licensed real estate practitioner is
qualified to be appointed as member of
the Professional Regulatory Board of
Real Estate Service provided that prior to
his/her appointment, he/she has been an
active licensed practitioner for at least:
a. Twenty years
b. Five years
c. Fifteen years
d. Three years
e. Ten years
901. To constitute negligence or failure to
disclose or ascertain to any person with
whom a broker is dealing relative to the
property and within his knowledge at the
time of the transaction, what matters must
the broker fail to disclose? a. Previous
owner of property or history of title
a. Fair market value of the property
b. Location, topography, and shape of
property
c. Material fact, data or information
d. Whether property is updated in tax
payments
902. The scope of brokerage as follows, but not:
a. Authority to look for property
b. Engagement to look for a buyer
c. Procurement of insurance for properties
secured by real estate 9
d. Procurement of loans secured by real
estate
e. Procurement of tenants for rental
properties
903. Any of these acts shall be grounds for
revocation of license except:
a. Procurement of Certificate of
Registration of real estate service
practitioner by fraud or deceit
b. Unprofessional or unethical conduct
c. Allowing an unqualified person to
practice the profession by using one’s
certificate of registration
d. Non-payment of dues
e. Misleading ads
904. Under the Code of Ethics, the following is
considered ethical:
a. Negotiate a property listed directly with
the owner if the listing broker goes out of
town for a few days and cannot be
contacted
b. Should cooperate with other brokers on
property listed provided they are
members of any national real estate
broker’s association
c. Use the services of the salesman of
another broker provided the salesman is
paid the agreed upon commission
77
 d. Willingly share with other brokers the a. delaying submission of formal offer that
lessons from his experience and he had received from a prospective
study buyer in the hope of securing a higher
905. The national integrated organization of offer
natural person duly registered and license b. keeping a special bank account,
as real estate service practitioner separate and distinct from his own
a. Philippine association of real estate funds, for all monies received in trust
practitioner for other persons such as clients
b. Philippine realtors board money and similar items
c. Philippine regulation commission c. disclosing the client confidential
d. Accredited and integrated personal information to a fellow broker in
professional organization order to facilitate the sale of the client
e. E. All of the above d. encouraging the parties to a sale to
906. Any of these acts shall be ground for indicate a consideration lower than the
revocation of license except. actual selling price
a. non payment of dues 911. Renewal of professional id card of resp
b. engaging in the practice of the a. every year
profession during the period of ones b. 2 years
suspension c. 3 years
c. unprofessional or unethical d. 4 years
d. allowing an unqualified person to e. 5years
practice the profession by using ones 912. Minimum requirement for applicant for real
certificate of registrations estate broker exam is
907. Realty service practice can be performed by a. 80 units in college
juridical persons except b. 60 units in college
a. real estate consultant c. Holder of vocational
b. real estate broker d. BS REM degree
c. real estate appraiser e. High school graduate
d. real estate sales person 913. Real estate broker is usually
e. all of the above authorized to the following
908. What should be indicated by the acts except
broker in his letterhead, dry seal, a. advertise the listing
sigh board, advertisement or other b. look for the property
announcement in relation to real c. bind the principal in the contract
service practice d. place for sale sign in the property
a. price of the property e. cooperate with other broker
b. address of the owner 914. Real estate practitioner to be appointed as
c. ptr number member of the PRBRES provided that the
d. license number prior his appointment he has been active for
e. house number at least
909. Real estate broker must not encourage the a. 5 years
following act when with a sale transaction to b. 20 years
help the client reduce cost c. 15 years
a. undervalue the amount in the deed of d. 10 years
sale e. 25 years
b. pay to BIR where the property is located 915. Real estate service practitioner consist of
c. pay the proper taxes on time the following except
d. register immediately the sale with the a. real estate sales person
ROD b. real estate assessor
e. pay the taxes on sale on time c. real estate appraiser
910. The following acts are unethical except d. real estate broker

78
 e. real estate dealer d. hier
916. The following subject in the real estate e. testate
broker exam licensure exam except 922. Immovable or real property in favor the
a. property management easement is established
b. subdivision development a. servient estate
c. real estate laws and taxation b. fixture
d. fundamentals of property ownership c. dominant estate
e. code of ethics and responsibilities d. legitime
917. Act as agent of a party in a real estate e. land estate
transaction to offer, solicit, list, promotes. 923. Immovable or real property subjected to
Mediate, negotiate or effect the meeting of the easement established
the minds on the sale, purchase, exchange, a. servient estate
mortgage, lease or joint venture or other b. fixture
similar transactions in real estate or any c. dominant estate
interest therein d. legitime
a. real estate consultant e. land estate
b. real estate appraiser 924. Buyers who paid installment of less than
c. real estate assessor 2 years are also protected by the Maceda
d. real estate broker law and entitled to a grace period
e. real estate sales person of___days from the added their
918. The board may reinstate any revoked installment become due and demandable
certificate of registration a. 30 days
a. FOR REASONS DEEMED PROPER b. 15 days
AND SUFFICIENT c. 20 days
b. UPON APPLICATION AND d. 25 days
COMPLIANCE WITH THE REQUIRE e. 60 days
CPE 925. Maceda , how many times the can the
c. AFTER THE EXPIRATION OF 2 buyers exercise his rights
YEARS FROM THE DATE OF a. once every 10 years
REVOCATION b. once every 3 years
d. NONE OF THE ABOVE c. once every 2 years
e. ALL OF THE ABOVE d. none of the above
919. Following are restriction of property rights e. once every 5 years
except 926. Anything which is or maybe the object of
a. zoning appropriation
b. escrow a. Tax
c. taxation b. asset
d. escheat c. Equipment
920. The best evidence of ownership is d. real estate
a. Tax declaration e. property
b. Vicinity map 927. Real properties used for family homes or
c. Torrens title house and lot where the family resides.
d. None of the above a. life estate
e. Technical description b. real estate
921. Refers to the compulsory successional c. fee tail
rights granted by the law and the same d. remainder
cannot be taken by anybody except when e. homestead estate
alienated during the lifetime of the testator 928. Doctrine which reserve to the state the full
with consideration ownership of all natural resources or natural
a. Legitime wealth that may be found in the bowels of
b. intestate the earth.
c. Succession
79
 a. public domain c. res allicujos
b. regalian doctrine d. stewardship principle
c. res allicujos e. res alienate
d. stewardship principle 935. Owner of the property adjoining or abutting
e. res alienate the bank of river
929. Right to the state to en act laws and enforce a. Avulsion
them for the safety, order, health, morals b. land owner
and general welfare of the public c. Accession
a. escheat d. land lord
b. eminent domain e. riparian owner
c. police power 936. Property owned by the state in its
d. taxation proprietary or private capacity which is not
e. zoning devoted to public used or public service and
930. Power of the state to imposed and collect the development of national wealth
takes and other charges on real estate a. public domain
a. Escheat b. regalian doctrine
b. eminent domain c. res allicujos
c. police power d. stewardship principle
d. taxation e. patrimonial property
e. zoning 937. Any and unknown deposit of money,
931. Reversion of privately owned properties in precious object or jewelry and the lawful
favor of the state upon the death of the ownership thereof is unknown. Its
owner who is not survived with any heir ownership belongs to the land
a. escheat a. yamasita treasure
b. police power b. alluvium
c. zoning c. hidden treasure
d. eminent domain d. minerals
e. taxation e. accession
932. Power of the state to take private property 938. System of land registration by which
for public use upon payment of just the title is recorded becomes
compensation indefeasible, absolute and
a. Escheat imprescriptible
b. eminent domain a. Torres system
c. police power b. Tax declaration
d. taxation c. Allen system
e. zoning d. Bonds
933. Refers to the used of restrictions of a e. Torrens system
particular areas or delineation of allowable 939. The absence of marriage settlements, or
areas for use when the regime is void what system shall
a. Escheat govern
b. eminent domain a. co ownership
c. police power b. extra judicial
d. taxation c. judicial settlement
e. zoning d. capital property
934. Under the phil constitution that every e. absolute community of property
property owners are bound to used or 940. Exclusive property brought by the husband
utilized their lands in a manner that will to the marriage as his own.
promote welfare and benefits not only for a. co ownership
themselves but also for the state b. extra judicial
a. public domain c. judicial settlement
b. regalian doctrine d. capital property
e. absolute community of property
80
941. Exclusive property brought by the wife to d. Enforceability clause
the marriage as his own. e. Evidentiary clause
a. co ownership 948. Real property consists of
b. extra judicial a. Rights in realty
c. Paraphernal property b. Land and all improvements thereon
d. capital property c. The right to use or occupy real estate
e. absolute community of property d. Single-family residences
942. Right of common dominion which two or 949. Real property includes
more persons have in spiritual part of the a. Any and all buildings on the subject site
property or thing which is not physically b. All interests, benefits, and rights
divided inherent in the ownership of real
a. co ownership estate
b. extra judicial c. The physical land and appurtenances
c. Paraphernal property affixed to the land
d. capital property d. Property that is not artificial
e. absolute community of property 950. What are the considerations in determining
943. Increase in value of real estate without any whether something attached to real property
effort or expense of the owner is a fixture?
a. avulsion a. METHOD BY WHICH THE ITEM IS
b. accession ATTACHED; ADAPTABILITY OF
c. adhesion THE ITEM FOR THE LAND’S
d. erosion ORDINARY USE
944. Acquisition of alienable land of the public b. RELATIONSHIP OF THE PARTIES;
domain by homestead patent, free patent, INTENTION OF THE PERSON IN
sales patent, government awards PLACING THE ITEM IN THE LAND
a. private grant AGREEMENT OF THE PARTIES
b. inheritance c. BOTH A AND B
c. involuntary grant d. NONE OF THE ABOVE
d. public grant 951. The highest form of real property ownership
945. The process by which the current of the is
river, creek or torrens segregated from a. homestead estate
the estate a known portion and transfer b. leasehold estate
it to another estate c. fee simple
a. reclamation d. life estate
b. accretion 952. Jackfruit that fell on the ground are
c. AVULSION a. ordinarily real estate
d. alluvium b. both of the above
946. The right of an owner-lessor to receive the c. ORDINARILY PERSONAL PROPERTY
contract rent and reversion of the property
at the end of the lease is called: d. none of the above
a. Fee simple 953. A deed should be recorded because
b. Leasehold a. Recording gives public notice
c. Lease fee estate of the transaction and sets
d. Net lease the priority
e. None of the above b. It is required by law
947. A legal provision which requires agreement c. Title does not pass until the deed is
for the sale of real estate to be in writing recorded
and subscribed to by the parties to be d. Recording makes the deed a legal
enforceable by action document
a. Defeasance clause 954. The addition to the land through
b. Parole clause processes of nature, such as deposits of
c. Statute of Fraud soil carried by streams.
81
 a. avulsion 962. Items that are built to be permanent and
b. alluvium intended to be included with real property
c. ACCRETION are
d. usufruct a. Trade fixtures
955. The sudden removal of land from one b. Personal property
parcel to another when a body of water, c. Real estate
such as a river, abruptly changes. d. Chattel fixtures
a. AVULSION 963. The terms “real estate” and “real
b. alluvium property”:
c. Accretion a. Mean exactly the same thing in all cases
d. usufruct b. ARE DEFINED TO REFER TO THE
956. The soil gradually deposited by the PHYSICAL LAND AND THE BUNDLE
process of accretion, usually OF RIGHTS RESPECTIVELY
considered to belong to the owner of c. ARE BOTH IMPORTANT CONCEPTS
he land to which it is added. IN APPRAISAL
a. avulsion d. Both (b) and (c)
b. ALLUVIUM 964. The value most commonly sought in real
c. accretion estate appraisals is
d. usufruct a. Investment value
957. Land is unique because b. Insurable value
a. No two parcels have the same soil c. Value in use
composition d. Market value
b. No two parcels have the same owners 965. The four agents of production are
c. No two parcels have the same tax levies a. Land, labor, capital, improvements
d. No two parcels can occupy the same b. Land, improvements, labor, materials
space on the face of the earth c. Land, labor, capital, entrepreneurship
958. The supply of land is d. Land, labor, capital, money
a. Increasing all the time 966. The value of improved residential real
b. Infinite estate is most influenced by
c. Established by the surveyors a. Passage of time
d. Finite b. Brokers opinions of the value of
959. The concepts of land are properties
a. Land is immobile, durable, finite and c. Changes in shopping patterns for
useful consumers of goods and services
b. Social, economic, governmental and d. COST OF` CONSTRUCTION
legal, geographic and environmental INCREASES
c. Land, labor, capital, and 967. Real property has value because a
entrepreneurialism a. It is nearby
d. Leasehold, leased fee, and fee simple b. It is desirable
960. Knowledge of land value is required for all c. It is popular
of the following except d. It provides future benefits
a. property taxation 968. When real property is sold by one person to
b. fire insurance another, the amount of money used to
c. a ground lease compensate the seller is called
d. a grazing lease a. The cost of the real property
961. Real estate is b. THE PRICE OF THE REAL PROPERTY
a. The rights in realty c. The value of the real property
b. The physical land and appurtenances d. The income of the real property
affixed to the land 969. A single- family home owner who builds a
c. What transfers on the day of closing new and unique structure will commonly
d. The "bundle of rights" find that

82
 a. The uniqueness will cause the market to
like it and pay more for it
b. Properties that do not conform to the
popular designs will sell for more
c. By definition, uniqueness means that
fewer people will want to buy it
d. The market will pay as much for this
property as any other because of its
unique nature
970. When demand for housing increases, the
supply
a. Increases immediately
b. Is unaffected
c. INCREASES SLOWLY
d. Will diminish
971. Overproduction of new homes
a. Causes oversupply and lower prices
b. Causes increases in demand
c. Causes prices to increase
d. Causes the market to move toward a
state of equilibrium
972. The city planning department indicated a
vacant residential lot located in the flood
zone cannot be given a building permit. This
site
a. Has lost nearly all utility
b. Has lost all desirability
c. Has become scarce
d. Has lost any effective purchasing power
973. Demand for real estate may be affected
by
a. Increasing population and employment
b. Increases in purchasing power
c. Availability of mortgage financing
d. All of the above
974. A less expensive house tends to gain in
value because of more expensive
neighborhood houses because of
a. Progression Principle
b. Both of the above.
c. Regression Principle
d. None of the above.
975. A good’s capacity to
satisfy human desires or
needs is known as
a. Creative demand
b. Functional obsolescence
c. Utility
d. Effective demand
SET B MOCK EXAM REA
976. Two homes in the same addition have
the same amenities, size, features,
and location. One is priced at
P1,000,000 and the other is priced at
P1,100,000.
a. The lower-priced home will sell
quickly.
b. The lower-priced home will attract
more demand.
c. The lower-priced home will get more
showings.
d. The lower-priced home will sell for the
full list price.
977. In a high demand market, the cost of
building a new property will increase
substantially until
a. It becomes impossible for prices to go
higher
b. The supply increases because new
builders get into the market
c. The charges from suppliers and
subcontractors go down
d. The BSP increases interest rates
978. The four forces that influence real estate
values are
a. Social, economic, governmental, and
environmental
b. Land, labor, capital, and green space
c. Eminent domain, police power, escheat,
and taxation
d. Governmental, social, taxation, and
economic conditions 19
979. Synergy or Plottage is
a. The process whereby large parcels of
land are divided into lots and recorded in
the register of deeds
b. Is the assemblage of two or more
parcels of land
c. Is the name of the discount given when
larger parcels sell for more per hectare
than smaller ones
d. An incremental increase of value that
results when two or more sites are
combined to produce greater utility
980. The length of a tract of land along a street is
called the land’s
a. depth
b. frontage
c. width
d. abutment
981. Refers to prices or values of land adjacent
to or “across the fence” from railroad,
83
 pipeline, highway or other corridor real c. To settle divorces
estate. d. to solve problem that involve real
a. buyer’s market estate values
b. corner influence 988. What term is used to describe a study of
c. across the fence value the cost -benefit relationship of an
d. property line economic endeavor?
e. corner influence a. Investment analysis
982. A _______ is an article that was once b. Feasibility analysis
personal property, but that has been c. Cash flow analysis
installed in or attached to land or a building d. Market analysis
so that such article is regarded in law as 989. The mayor of a small town recently hired
part of the real estate. you to estimate the value of a new one-
a. Fixture story, three- bay fire station. The fire station
b. domestic trade was built last year at a cost of P2.5 million
c. Trade fixture (land and buildings). Similar-size d, one
d. all of the above year-old commercial buildings in
983. A trade fixture: comparable locations are selling for P2
a. Contributes to the value of the property million. lf you appraise this building for
to which it is attached approximately P2.5 million, you probably
b. Contributes nothing to the value of have conveyed
real estate a. Market value
c. Is considered, but given no value by real b. ACTUAL USE
estate appraisers c. Investment value
d. Both (b) and (c) d. value in transition
984. Which of the following courses 990. You were recently asked to appraise the
would benefit a professional Midnight blue hostel. The bank asked you to
appraiser? value the property for loan purposes. The
a. REAL ESTATE FINANCE, comparables sales you used in this analysis
LAND USE PLANNING, REAL were all sales of the entire operation. The
ESTATE LAW income used in your calculation was based
b. URBAN SOCIOLOGY, on the rental rate of each sleeping room
DEMOGRAPHICS, INFORMATION and the sales at the restaurant and the bar.
SYSTEMS You are most likely appraising
c. ALL OF THE ABOVE . a. Market value of the fee simple interest
d. ONE OF THE ABOVE. b. Market value of the leased fee interest
985. An appraisal may include a(n) c. GOING-CONCERN VALUE
a. PROPERTY DESCRIPTION d. Value in use
b. OPINION OF VALUE
c. ESTIMATE OF MARKET VALUE 991. Estimating market value requires
d. ALL OF THE ABOVE identification of the desires and priorities
986. An appraisal of current market value is of
considered to be accurate for a. Well-informed buyers and sellers
a. 90 days b. A typically informed purchaser
b. one year 20 c. A fully informed seller
c. until the property is sold d. A typically informed seller
d. DATE OF APPRAISAL 992. Market value is based on
987. Appraisals are always used a. insurable value
a. To make residential mortgages b. cost
b. to settle lawsuit

84
 c. most probable price homes in the immediate area. Which
d. value in use basic value principle(s) does the
993. Which of the following is not foregoing case illustrate?
a part of the market value a. Internalities
definition? b. externalities
a. Buyer and seller are c. Both a and b.
typically motivated d. None of the above
b. The property sells in 90 to 120 days 997. A church in a residential area is an example
c. Payment is made in cash or cash of
equivalent terms a. police power
d. Both parties are well informed b. a nonconforming use
994. Julita Cruz owns a vacation home near a c. forecast absorption
small town almost 1 kilometers from the city d. a private restriction
in which she lives and works. She doesn’t 998. An homeowner purchased two adjacent lots
use her vacation house more than three in a tract subdivision 20 years ago and built
weeks every year. The last time she stayed a single-unit residence entirely on one lot,
there, she noticed that a gas station had utilizing the second lot as a side yard. The
been built a few hundred yards down the homeowner has decided to build a smaller
road. After talking to the owner, she home on the vacant side lot and retain the
discovered that a zoning change had been existing home as a rental. What term
put into effect to allow construction of a new applies to the second yard?
shopping center on land adjacent to the gas a. Surplus land
station. While Ms. Cruz’s property was not b. Vacant site
rezoned, she realizes that it won’t be c. Excess land
suitable as a vacation retreat once the d. Underutilized site
shopping center is built. Which basic value 999. The value of improved
principle(s) does the foregoing case residential real estate is most
illustrate? influenced by
a. HIGHEST AND BEST USE (HABU) a. Passage of time
b. CONFORMITY b. Brokers opinions of the value of
c. CHANGE properties
d. ALL OF THE ABOVE c. Changes in shopping patterns for
995. Two bookstores are located on the same consumers of goods and services
city street, and both have had good d. Cost of` construction increases
business for ten years. One store is 1000. A buyer invests in a small strip center
improved with new displays, better lighting, because she believes the property will
computerized inventory control, and a snack net P350,000 per year. This is an
bar. Because the store is part of a chain, re example of
SET ing costs are absorbed without general a. Anticipation
increase in prices. The other bookstore b. Change
begins losing customers. Which basic value c. Competition
principle(s) does the foregoing case d. Substitution
illustrate? 1001. The statement “property values are
a. COMPETITION created and sustained when the
b. CONTRIBUTION characteristics of a property conform to the
c. BOTH A AND B. demand of its market" refers to
d. None of the above. a. Use value
996. A single-family neighborhood is located b. Contribution
adjacent to an airport. Excessive noise c. Conformity
caused by airplanes flying overhead d. Supply and demand analysis
and the potential danger they create 1002. To be considered the highest and best
have adversely affected the value of use, a use must be
85
 a. Physically possible, legally c. A use that was not legally established
permissible, appropriately justified, and maintained and still does not
financially feasible, and maximally conform to existing zoning
productive d. A use that was not legally established
b. Physically correct and legally possible and maintained but the government is
c. In existence already and legal not enforcing the laws
d. Physically possible and appropriate 1007. The purpose of regulating the real estate
1003. Highest and best use analysis service practitioners practice in the
requires an estimate of the use as Philippines is to
though vacant and as improved to a. Protect the public from dishonest realty
a. ESTIMATE THE VALUE OF THE practitioners.
IMPROVEMENTS b. Protect realty practitioners from unfair
b. ENSURE THAT APPRAISERS competition.
RECOGNIZE THAT THE PROPERLY c. Upgrade the standards of realty service
COULD BE WORTH MORE WITHOUT practice.
THE BUILDINGS THAN WITH THEM d. All of the above.
c. ESTIMATE FUNCTIONAL 1008. Market area life cycles include
OBSOLESCENCE CAUSED BY a. Growth, stability, decline, and
INAPPROPRIATE IMPROVEMENTS revitalization
d. ALL OF THE ABOVE b. Growth, stability, decline, and
1004. The concept of consistent use requires gentrification
an improvement to be valued based on a c. Growth, stability, appreciation, and
use that is consistent with the site’s highest decline
and best use. This means d. Growth, level of appreciation, and
a. The highest and best use of the site as decline
though vacant must always consider the 1009. Neighborhood social
improvements thereon influences include all of the
b. The highest and best use as improved following except
would always be consistent with the "as a. Population density
vacant" analysis
c. The improvement value must be b. Occupant age levels
adjusted down if the land’s highest c. Occupant skill levels
and best use is different than the d. Vacancy rates
improved highest and best use 1010. The economic base is
d. The vacant land value can never exceed a. The lower line in a graph showing the
the improved value economy of a community
1005. When a property’s highest and best b. The ratio of basic industries to technical
use is likely to change in the near future, Industries in a community
the prevailing highest and best use is c. An inexpensive, large string instrument
called a(n) d. The economic activity that enables it
a. Pending use to attract income from outside its
b. Temporary use borders
c. Interim use 1011. Economic
d. Alternative use influences include
1006. A legally nonconforming use is all of the following
a. A use that was legally established except
and maintained but no longer a. Occupant
conforms to existing zoning income levels
b. A use that was illegally established and b. Crime levels
maintained c. Property rent levels
d. Birth rate

86
1012. Governmental influences include all of c. Microsoft Words.
the following except d. Remote Sensing.
a. Tax burdens 1018. The industry
b. Zoning, building, and housing codes competition which
c. Special assessments arises from profits
d. Changes in property use refers to
1013. Gentrification is a. Principle of
a. A class of citizens who live in blighted Change
areas
b. A process in which older homes in a b. Principle of
neighborhood are remodeled and Substitution
different residents replace the lower- c. Principle of Conformity
income residents d. Principle of Supply and Demand
c. A group of complementary land uses e. Principle of Competition
d. A part of the life cycle of a market area 1019. The value of a property will reach to its
in which property values are stable and maximum level when the factors of
the maintenance levels are adequate production such as: land, labor, capital,
1014. Linkages are coordination or entrepreneurship are in
a. The devices used to change a property balance refers to
from one use to another a. Principle of Balance
b. The relationships between a buyer and b. Principle of Substitution
seller in a real estate deal c. Principle of Conformity
c. Time-distance relationships between d. Principle of Anticipation
a property use and the supporting e. HABU
facilities 1020. The principle of increase and decreasing
d. The tools necessary to market real returns applied to a portion or the whole of
estate an improvement refers to
1015. What form of diffusion is a. Principle of Anticipation
represented by the spread of Shoe b. Principle of Contribution
Mart (SM)? c. Principle of Conformity
a. cascade. d. Principle of Substitution
b. relocation. e. HABU
c. reverse hierarchical 1021. The net income remaining after the cost
d. stimulus. of labor, capital and coordination have been
1016. A real estate market is paid refers to
a. A shopping center office of a realty a. HABU
company b. Principle of Substitution
b. A group of individuals or firms c. Principle of Anticipation
that are in contact with one d. Principle of Surplus Productivity
another for the purpose of e. Principle of Conformity
conducting real estate 1022. The result of reasonable degree of
transactions architectural homogeneity and compatible
c. A list of potential buyers for the land uses brought about by market
subject attitudes, societal trends, economic
d. A list of potential sellers who have conditions and public policy refers to
property similar to the one requested by a. HABU
the buyer b. Principle of Substitution
1017. What will be the best tool for locating the c. Principle of Conformity
next Jollibee fast food restaurant in a city? d. Principle of Anticipation
a. GPS (Global Positioning System). e. Principle of Utility
b. GIS (Geographic Information 1023. The meeting desires and requirements
System). of human beings. It is not only the capacity
87
 to give satisfaction in use but also the a. Salvage Value
power to excite desire for continued b. Scrap Value
possession refers to c. Market Value
a. HABU d. Zonal Value
b. Principle of Substitution e. Principle of Contribution
c. Principle of 1029. One which states that the maximum
Conformity value of a property tends to be set by the
d. Principle of cost of purchasing an equally desirable and
Anticipation valuable replacement property, as the
e. Principle of basic principle that underlies the Market
Utility Data Approach of Sales Comparison,
1024. The factor where the value is increased a. Principle of Anticipation
if supply is reduced by effective demand, b. Principle of Highest and Best Use
resulting in scarcity refers to c. Principle of Substitution
a. Principle of Anticipation d. Principle of Supply and Demand
e. Principle of Contribution
b. HABU 1030. To be considered comparable to the
c. Principle of Supply and Demand subject property, a comparable must have
been sold
d. Principle of Consistent Use a. in an arm’s-length transaction
e. Principle of Contribution b. with a conventional mortgage
1025. That factor where the property is cannot c. without any form of secondary financing
be valued on the basis of one use for land d. for all cash
and another use of improvements refers to 1031. One method of compensating for sales
a. Principle of Consistent Use that involved different terms of financing
b. HABU is use of the
c. Principle of Anticipation a. financing readjustment grid
d. Principle of Substitution b. loan-to-value ratio
e. Principle of Contribution c. CASH EQUIVALENCY TECHNIQUE
1026. Refers to the most profitable and likely d. operating statement ratio
use of the property at the time of appraisal. 1032. Recent sales of comparable sites
It refers to that which in all probability will competitive with the subject site
yield the maximum return at a given time. It a. Are the most reliable guide to the
is the first necessary consideration in probable current market behavior and
studying a tract of land to estimate its reactions of informed buyers.
value. b. Do not indicate any probable current
a. Principle of Supply and Demand market behavior and reaction of
b. Principle of Contribution informed buyers.
c. Principle of Substitution c. Both a and b.
d. Principle of Anticipation d. None of the above.
e. Principle of Highest and Best Use 1033. Site valuation techniques include
1027. Is the amount that maybe recovered a. SALES COMPARISON METHOD;
when the property will be retired or ALLOCATION METHOD;
disposed at a future time. ABSTRACTION METHOD
a. Salvage Value b. SUBDIVISION DEVELOPMENT
b. Scrap Value METHOD; GROUND RENT
c. Market Value CAPITALIZATION; LAND RESIDUAL
d. Principle of Substitution METHOD
e. Principle of Anticipation c. BOTH A AND B
1028. Is the fair market value of the land in a d. none of the above
specific zone or area as established by the
BIR.
88
1034. Depending on market practice, d. the national cost average of all
entrepreneurial profit can be estimated as components
percentage of
a. DIRECT AND INDIRECT COSTS PLUS 1040. The predominant depreciation
LAND VALUE category for a residential location on
b. THE VALUE OF THE COMPLETED heavily traveled national highway is
PROJECT a. Physical deterioration—curable
c. BOTH A AND B b. Physical deterioration—long-lived
d. none of the above incurable
1035. Barricade c. Functional obsolescence—curable
around the d. External obsolescence—incurable
construction 1041. The predominant depreciation
site is a category for severe termite damage
building throughout a structure
a. DIRECT a. Physical deterioration—curable
COST b. Physical deterioration—long-lived
b. indirect cost incurable
c. overhead expense c. Functional obsolescence—curable
d. incidental expense d. External obsolescence—incurable
1036. The cost of improvements identical in 1042. The ratio of total operating
design and material to those of the expenses to effective gross
subject property is called the subject’s income is the
a. reproduction cost a. OPERATING EXPENSE
b. replacement cost RATIO
c. sales price b. net income ratio
d. market value c. effective gross income ratio
1037. The cost of improvements identical in d. break-even ratio
utility to those of the subject property is 1043. The ratio of net operating
called the subject’s income to effective gross
a. reproduction cost income is the
b. replacement cost a. operating expense ratio
c. sales price b. NET INCOME RATIO
d. market value c. effective gross income ratio
1038. In using the cost approach to d. break-even ratio
appraising, the estimated 1044. The ratio of the operating expenses plus
construction cost of improvements annual debt service to potential gross
usually will be based on income is the
a. their original cost a. operating expense ratio
b. THE COST OF NEW IMPROVEMENTS b. net income ratio
AT CURRENT PRICES c. effective gross income ratio
c. book value d. BREAK-EVEN RATIO
d. the national cost average of all 1045. To arrive at net
components operating income,
1039. The index method of expenses are deducted
estimating construction from
cost is based on a. operating profit
a. THE ORIGINAL b. gross income
COST OF c. Effective gross income
IMPROVEMENTS d. None of these
b. the cost of new improvements at current 1046. In the formula for the operating expense
prices ratio
c. book value
89
 a. operating expenses are divided by a. The market is in a condition of supply
effective gross income and demand.
b. effective gross income is divided by b. The market is in a condition of balance.
operating expenses c. The market is in a condition of
c. potential gross income is divided by oversupply.
effective gross income d. The market is in a condition of
d. effective gross income is divided by undersupply.
potential gross income 1050. For land sales to
1047. In the formula for the net income ratio be used as
a. effective gross income is divided by comparables, they
potential gross income must be
b. potential gross income is divided by a. COMPETITIVE
effective gross income WITH THE
c. effective gross income is divided by net SUBJECT
operating income b. RELATIVELY RECENT
d. net operating income is divided by c. OPEN MARKET TRANSACTIONS
effective gross income d. ALL OF THE ABOVE
1048. The data needed for an appraisal by the 1051. A bad
income approach using direct capitalization floor plan
are would
a. the potential gross income from the generally
property, which includes the annual be
income from all sources; the amount of classified
the expected annual effective gross as
income from the property, estimated by a. physical
subtracting anticipated vacancy and deprecia
collection losses from potential gross tion
income; b. economic obsolescence
b. net operating income, found by c. functional obsolescence
deducting normal annual operating and d. economic deterioration
other expenses from the effective gross 1052. The valuation technique in which
income; the capitalization rate for the land and building are valued separately
property; that is, the rate that can be is
applied to the property’s net annual a. The income capitalization approach
income, the result being the appraiser’s b. The sales comparison approach
estimate of the property’s value; c. Linear regression
c. both a and b d. The cost approach
d. none of the above 1053. Land valuation techniques include
1049. While working on an appraisal of a a. Subdivision development, depreciated
residential property in a new home cost, consensus
subdivision, the appraiser finds that the b. Sales comparison approach, consensus,
builders have a total of 100 home sites extraction
currently offered for sale. In measuring c. Sales comparison approach,
market demand the appraiser notes that all allocation, extraction
of the builders are currently averaging 2 d. Assessment multipliers, assessor’s
new sales contracts per month (combined), opinions, multiple regression multipliers
and are expecting to sell 24 homes within 1054. Land value can be estimated
the next year. What conclusion could be using all of the following techniques
drawn with regard to the 100 available except
home sites and a market period of the next a. The sales comparison method
12 months? b. The cost method
c. The income method
90
 d. The allocation method c. interest
1055. Which of the is NOT an agent of d. market price
production? e. lease
a. land 1062. Functional utility depends on
b. transportation a. zoning
c. labor b. age of equipment
d. capital c. wear and tear on the structure
e. entreprenuership d. insurance requirements
1056. Political forces affecting value may e. tastes and standards
include 1063. Value in use is
a. life-styles and living standards a. subjective
b. topography b. objective
c. athletic levels and recreation facilities c. readily measurable
d. government spending and taxation d. a market phenomenon
policy e. synonymous with market price
e. primary registration and turnout 1064. The value added to total property
1057. What are the two categories of tangible value by a particular component is an
property? example of the principle of
a. real property and personal property a. substitution
b. intangible property and real property b. anticipation
c. real estate and intangible property c. change
d. legal and illegal investments d. contribution
e. open and shut transactions e. conformity
1058. Zoning is an exercise of the 1065. The concept that the value of a
a. equity courts particular components is measure by the
b. police powers amount that its absence would detract from
c. Environmental Protection Agency the value of the whole is
d. Right of condemnation a. opportunity cost
e. Right of escheat b. substitution
1059. Is the amount paid by the lessee c. competition
of a house or flat fee of a commercial d. contribution
bldg. e. conformity
a. economic rent 1066. The market loss cause by depreciation
b. rental in an older structure may be offset by all of
c. interest the following EXCEPT
d. market price a. architectural interest
e. lease b. historical registration
1060. The revenue derived from the c. strong demand relative to supply
use of land and of the forces d. strong supply relative to demand
inherent to land e. renovation of the structure
a. economic rent 1067. Studying appraisal helps a person
b. rental a. to improve value estimation skills
c. interest b. to pass the real estate broker’s license
d. price examination
e. lease c. to understand other real estate courses
1061. It is the price of any d. to communicate with appraisers
commodity in its market at e. all of the above
specified time 1068. Plant and Equipment are
a. economic rent a. TANGIBLE ASSETS, OTHER THAN
b. rental REALTY.
b. tangible assets, other than personality.
c. intangible assets, other than realty.
91
 d. intangible assets, other than personality. d. ALL OF THE ABOVE.
1074. The value of
patterns and dies is
SET C MOCK EXAM REA often inextricably
linked to
1069. Assets that are inextricably combined a. ASSOCIATED
with others and that may include INTELLECTUAL
specialised buildings, machinery, and PROPERTY
equipment. RIGHTS
a. PLANT b. operating software
b. Machinery c. Both of the above.
c. equipment d. None of the above.
d. Business asset 1075. The period over
1070. Individual machines or a which property may
collection of machines. A machine be profitably used is
used for a specific process in a. Invested Capital
connection with the operation of the b. Capital Structure
entity. c. Going Concern
a. Plant d. Economic Life
b. MACHINERY 1076. Valuations of plant and equipment can
c. equipment be carried out using any of the following
d. Business asset approaches:
1071. For assets in the public sector, the a. the sales comparison approach.
assumption equivalent to a business b. the cost approach (depreciated
continuing as a going concern is that the replacement cost)
public sector assets c. the income capitalization approach
a. WILL CONTINUE TO BE USED FOR d. All of the above.
THE PROVISION OF THE 1077. Which of the following types of property
RELEVANT PUBLIC GOOD OR is subject to ad valorem taxation?
SERVICE. a. property owned by a religious
b. Will cease to be used for the organization and used for a
provision of the relevant public good religious purpose B. new
or service. industrial plants that state and
c. Both of the above. local governments have induced,
d. None of the above. with tax exemption as an
1072. Plant for the supply of electricity, gas, incentive, to locate within their
heating, cooling or ventilation and jurisdictions
equipment such as elevators b. commercial buildings leased in part
a. Should be reflected in the value of the by nonprofit foundations
real estate interest c. state colleges and universities
b. Would not normally be reflected in the d. a state capitol
value of the real estate interest 1078. A person owning less than the entire
c. Both of the above. bundle of rights has
d. None of the above. a. escheat
1073. Intangible assets that can have an b. a fee simple title
impact on the value of plant and equipment c. a partial interest
include d. personal property
a. PRODUCTION RECORDS e. a fee tail
b. PATENTS 1079. All of the following statements are true
c. OPERATING SOFTWARE EXCEPT
92
 a. real property is a type of service b. external obsolescence
b. value is dependent on market conditions c. economic obsolescence
c. a good or service has no value in d. functional obsolescence
exchange unless it possesses certain e. external forces
economic and legal characteristics 1086. Real estate investment using others
d. the price representing value is usually people money
quoted in terms of money a. loan
e. real estate may be sold for all cash or b. investment
financing arranged c. leverage
1080. All of the following will affect d. fullback
the market value of a property e. lending
EXCEPT 1087. Appraisal under the unified housing loan
a. political factors program shall be undertaken by
b. economic factors a. NHA
c. legal use restriction e. social concerns b. HLURB
d. acquisition cost to present owner c. HDMF
1081. Capacity to satisfy wants, production d. HIGC
by labor and their exchangeability e. HUDCC
a. economic concept 1088. Loss in value of property because of the
b. economic principle buyers desire or because of the presence of
c. economic value fixtures which are not desirable
d. economic utility a. external loss
e. economic forces b. external obsolescence
1082. Amount may be recovered when the c. economic obsolescence
property will be retired or disposed at a d. functional obsolescence
future time e. external forces
a. zonal value 1089. The selling price of real estate is usually
b. salvage value based on its:
c. market value a. Market Value
d. Book value b. Exchange Value
1083. Fair market value of the land in a c. Speculative Value
specific zone or areas as established by the d. None of the above
BIR e. Intrinsic Value
a. scrap value 1090. The average selling price of homes
b. book value in a district can best be determined by:
c. zonal value a. Comparative Analysis
d. salvage value b. Any of the above
e. market value c. Assessed Value
1084. Impairment of the desirability and d. None of the above
usefulness of a real property brought by e. An appraisal
the physical, economic, and other changes 1091. Conjugal partnership can be dissolved
a. depreciation by:
b. externalities a. Legal separation
c. obsolescence b. Judicial separation of property
d. damages c. Annulment of marriage
e. loss d. Any of the above
1085. Loss in value of property because of e. None of the above
external influence 1092. Income approach in appraisal would be
a. external loss most widely used:

93
 a. On commercial and investment e. Adhesion
properties 1098. The study of current supply and demand
b. On properties heavily insured conditions in a particular area for particular
c. On newly opened subdivision type of property is:
d. None of the above a. Market analysis
e. On properties heavily mortgage b. Absorption method
1093. The best evidence of ownership is c. Real Estate appraisal
a. Tax declaration d. Income projection
b. Vicinity map e. Cash flow analysis
c. Torrens title 1099. A loss in value from any cause is a
d. None of the above common definition of:
e. Technical description a. Depreciation
1094. The application of more factors of b. Economic obsolescence
production will tend to increase net c. Functional obsolescence
income up to certain point beyond which d. Effective age
the introduction of more factors of e. None of the above
production will tend to decrease net 1100. The process of making installment
income payments consisting of principal and
a. principle of conformity interest that reduces the loan balance:
b. principle of substitution a. Amortization
c. principle of progression b. Liquidation
d. principle of increasing and c. b. Acceleration
diminishing return d. Hypothecation
e. principle of regression e. None of the above
1095. The displacement of present resident 1101. The income approach to value is an
by people of lower economic status application of the principle of:
a. progression a. Anticipation
b. substitution b. Substitution
c. gentrification c. Progression
d. INFILTRATION d. Highest and Best Use
e. nuclei e. None of the above
1096. The principle of value which states that 1102. The following are
value of a property tends to be enhanced determinants of value in
when there is reasonable homogeneity in appraisal of realty except:
use: a. Transferability
a. Principle of conformity b. Scarcity
c. Demand
b. Principle of progression d. Utility
c. Principle of highest and best use e. Purchasing Power
1103. In the computation of depreciation of
d. None of the above properties, the method widely used by
e. Principle of increasing and diminishing the practitioner is the:
return a. Straight line method
1097. The increase in value of real estate b. Declining balance method
without any effort or expense of the owner c. Diminishing return method
is: d. None of the above
a. Unearned increment e. Cost benefits method
b. Accretion 1104. An appraisal principle which holds that
c. Unearned income the value of property tends to be enhanced
d. Accession by association with superior properties is:
94
 a. Principle of Progression a. contour line
b. Principle of Attrition b. Bearings
c. Principle of Regression c. tie back
d. None of the above d. Metes and bounds
e. Principle of Infiltration e. Tie line
1105. Is a factor derived from comparable 1111. lines in topographic map which indicate
properties and applied to expected rental the elevation of the terrain at various
income in order to estimate a value. It may sections of the land
be used in finding the value of a property. It a. contour line
is the ratio that expresses the relation b. tie back
between gross income and sales prices of a c. Tie line
property. d. Bearings
a. Gross Income Multiplier e. Metes and bounds
b. Multiplier Effect Factor 1112. Subdivision plan for flat terrain
c. Zonal Value e. Market Value a. Gridiron
d. Scrap Value b. cul de sac
1106. Method of identifying the boundaries of c. tie line
a parcel of land by placing pins or stakes on d. square planning
the ground e. chaplan
a. subdivision survey 1113. Refers to subd scheme where the
b. relocation survey resulting blocks rectangular in shape
c. topographic survey a. Gridiron
d. schematic survey b. cul de sac
e. geodetic survey c. tie line
1107. Survey of land to determine the d. square planning
elevation or undulation of the terrain at e. chaplan
various section 1114. Directions of any respective given
a. subdivision survey meridian.
b. relocation survey a. contour line
c. topographic survey b. Bearings
d. rectangular survey c. tie back
e. geodetic survey d. Metes and bounds
1108. Grid of north and south meridians and e. Tie line
east and west lines surveyed by the 1115. Prepared out of a cadastral survey of
government in identifying Philippines extensive area consisting of several lots
boundaries for cadastral registration proceedings
a. subdivision survey a. Phil map
b. relocation survey b. Cadastral map
c. topographic survey c. Vicinity map
d. rectangular survey d. Territorial map
e. geodetic survey e. Tax map
1109. Survey plan indicating the division of the 1116. Land located in the fringes of built up
property communities which has the provincial
a. subdivision plan characteristics but is favored with city
b. leche plan utilities, amenities and facilities
c. location plan a. city land
d. vicinity plan b. urbanized land
e. lot plan c. metropolis land
1110. Imaginary lines connection to point 1 of d. idle land
a lot with a reference point such as BLBM
95
1117. Lands in metro manila or NCR are 1123. Physical character of the location
covered by the Urban Land Reform Law a. land
when they located within _______areas for b. site
priority development sites c. toponym
a. 2 d. situation
1 e. mathematical location
b. 2 1124. Place given to a portion of the earth
3 surface or nominal location
c. 2 a. land
2 b. lot site
d. 244 c. toponym
1118. Wrote eight volume guide to d. situation
geography; forerunner of the present e. mathematical location
geography 1125. Relative location of place compared with
a. Hipparchus other places, identification of streets,
b. Aristotle buildings and landmarks to direct people to
c. Ptolemy a desired location
d. Erastosthenes a. land
e. Humbult and ritter b. lot site
1119. The earth is sphere c. toponym
a. Hipparchus d. situation
b. Aristotle e. mathematical location
c. Ptolemy 1126. The science of making map
d. Erastosthenes a. calligraphy
e. Humbult and ritter b. surveying
1120. Drew imaginary lines on the surface of c. mapping
the earth in order to describe the location of d. cartography
places e. pattern
a. Hipparchus 1127. Two dimensional flat representation of
b. Aristotle the earth surface or portion of it
c. Ptolemy a. calligraphy
d. Erastosthenes b. surveying
e. Humbult and ritter c. map
1121. Says geographers should study human d. cartography
environment relationships by concentrating e. pattern
on how physical environment causes social 1128. The portion of earth occupied by
development permanent human settlement
a. Hipparchus a. toponym
b. Aristotle b. demography
c. Ptolemy c. density
d. Erastosthenes d. Ecumene
e. Humbult and ritter 1129. Geometric arrangement of object
1122. Used the word geography and a. toponym
calculated the circumference of the earth b. demography
within 0.5 percent accuracy c. density
a. Hipparchus d. ecumene
b. Aristotle e. pattern
c. Ptolemy 1130. Frequency that something occurs within
d. Erastosthenes a given unit of area
e. Humbult and ritter a. toponym
96
 b. demography d. engineering report
c. density e. narrative appraisal
d. ecumene 1138. Factors that will influence value related
e. pattern to population growth, birth control measures
1131. Migration to location and migration
a. emigration a. Physical
b. migration b. Cultural
c. immigration c. Economic
d. net migration d. Political
e. exodus e. Social
1132. Permanent move to a new location 1139. Factors that will influence value which
a. emigration are governmental based. It is the degree of
b. migration efficiency in the maintenance of peace and
c. immigration order and the effort of providing the
d. net migration essential services like: utilities, zoning and
e. exodus land use ordinance, anti-squatting law,
1133. Mass departure from a location rental control law and etc.
a. emigration a. Physical
b. migration b. Cultural
c. immigration c. Economic
d. net migration d. Political
e. exodus e. Social
1134. Difference between the number of 1140. Factors what will influence value which
immigrants and the number of imegrants forces include the nature or basic industry
a. emigration and business activity in the neighborhood,
b. migration trend of employment, and expansion of
c. immigration housing programs;
d. net migration a. Physical
e. exodus b. Cultural
1135. A kind of survey where the shape of the c. Economic
earth is taken into account in computing d. Political
results is known as: e. Social
a. Plane survey 1141. Factors that will influence value
b. Geodetic survey which refer to the location and age of
c. Topographic survey the neighborhood (size, area, shape
d. Cadastral survey and land topography), type of
e. Hydrographic survey improvements and architectural
1136. A metes and bounds description begins trends, street pattern, sidewalks and
and ends with the underground drainage.
a. street and house number a. Physical
b. block number b. Cultural
c. point of beginning c. Economic
d. grid coordinates d. Political
e. iron pin e. Social
1137. A (n) ____ identifies a property in such a 1142. Former natural born Filipino citizen who
way that it CANNOT be confused with any acquired foreign citizenship and has not
other property. applied and been granted dual citizenship,
a. coded map book can purchase for his use as residence
b. full city survey
c. legal description
97
 a. 1,000 sq.m. of urban land and 1 has planning and development unrestricted by
of rural land individual property boundaries
b. 1,000 sq.m. of urban a. expropriation
land and 2 has of rural b. land banking
land c. land assembly
c. 1,000 sq.m. of urban d. land reform
land and 5 has of rural 1149. In the absence of pre nuptial agreement
land all properties of the husband and wife shall
d. 1,000 sq.m. of urban only have a total retention of
land and 3 has of rural a. 1 has
land b. 5 has
1143. Buyers of real property c. 10 has
covered by RA 6552 do not d. 3 has
include installment buyers 1150. Refers to the commitment for more than
of a limited duration of funds, land resources,
a. industrial lots facilities and service by the two or more
b. house and lot packages legally separate interest, to an enterprise for
c. residential subd lots their mutual benefit
d. residential condominiums a. corporation
1144. Retention limits under carp for foreign b. land assembly
individuals on lease, management grower c. cooperative
or service contract d. joint venture
a. not more than 100 has 1151. Acquisition of land in advance of actual
b. not more than 500 has need for the purpose of acquiring lands at
c. not more than 10 has existing use value and disposing of them in
d. not more than 1,000 has a manner which would influence land price
1145. Comprehensive agrarian reform formation and promote planned
program extension with reforms development
a. RA 8435 a. land reform
b. PD 957 b. land exchange
c. RA 6657 c. land assembly
d. RA 9700 d. land banking
1146. RA 6552 or the Maceda law 1152. States that a specified party must be
a. realty installment and protective decree given an opportunity before any others to
b. realty installment buyers protection either accept or reject an offer
act a. right to redeem
c. realty installment and buyers protective b. right of first refusal
decree c. right to recover
d. realty installment and financing d. right to reject
1147. Process of bartering land for another 1153. Easement is to real property, usufruct is
piece of land and or shares of stock of to:
equal value in the government or quasi a. Personal property
government corporation b. Real property
a. land assembly c. Personal or real property
b. land reform d. None of the above
c. land banking e. Personal and real property
d. land exchange 1154. As a mode of acquiring title to real
1148. Acquisitions of lots of varying ownership property, prescription in good faith is:
through, among others, expropriation or a. 5 years
negotiated purchase for the purpose of b. 15 years
98
 c. 30 year e. Pactum Commissorium
d. 50 years 1160. A contract where the property is
e. 10 years hypothecated to secure an obligation
1155. The bundle of rights inherent in where the creditor is given the right to
ownership without any limitations other than possess the property and collect the
those imposed by law or contract is: fruits thereof is:
a. Fee Estate a. Real estate mortgage
b. Lease fee estate b. Blanket mortgage
c. Fee simple c. Equitable mortgage
d. Tenancy in common d. Antichresis
e. None of the above e. None of the above
1156. The following liens can 1161. The conveyance of
be found at the back of the real estate in payment of
title except: an obligation is:
a. Real estate tax liens a. Pacto en retro sale

b. Mechanic’s liens b. Dacion en pago

c. Mortgage lien c. Quit claim Deed
d. Judgment liens d. Cession of ownership
e. None of the above e. Deed of waiver
1157. Seizure of a property by court order,
usually done to have it available in the 1162. A provision in the blanket mortgage that
event of adverse judgment in a pending property whose loan value has been fully
suit, is: paid shall be released from the mortgage
a. Escheat a. Defeasance clause
b. Forfeiture b. Acceleration clause
c. Foreclosure c. Termination clause
d. Attachments d. None of the above
e. Conveyance e. Automatic redemption clause
1158. A buyer of real estate has already paid in 8 1163. X, owner of a 10- door apartment rented
years of installment a total amount of a unit to Y for a period of one year. Under
P520,000.00 inclusive of P20,000.00 the law on lease, Y, without the consent of
penalty interest. The cash surrender value X, may perform any of the following acts,
of the property based on Maceda Law is: except:
a. P200,000.00 a. Sublease the unit
b. P250,000.00 b. Assign his rights
c. P325,000.00 c. Suspend payment if X fails to make
d. P350,000.00 the necessary repairs.
e. None of the above d. Demand payment reimbursement
1159. A stipulation in a mortgage constituting one half of the value of
contract where the mortgagee is the usual improvements introduced
authorized to appropriate the in good faith
property upon default or non- e. All of the above
payment of debt is: 1164. A special power of attorney to sell a real
a. Dacion en Pago estate carries with it all the following except:
b. Pactum de non Aliendo a. Power to find a purchaser
c. Tacita Reconduta b. Power to fix the term of sale
d. None of the above c. Power to sell directly
d. None of the above
e. Power to sell only for cash
99
1165. A mortgage which a. equal
covers two or more b. based on value
properties is called: c. decided by the condominium corporation
a. Open mortgage d. proportionate
e. NOTA
b. Close mortgage 1172. Unless justifiable cause, the period of
c. Equitable mortgage completion of development of a subdivision
d. Blanket mortgage project counted from issuance of license to
e. Conventional mortgage sell is;
1166. In the absence of any stipulation on the a. eighteen months
period, the vendor in a pacto de retro sale b. twenty four months
c. six months
may repurchase the property within:
d. twelve months
a. 4 years
e. NOTA
b. 6 years
1173. Registration of mortgage covering a
c. b. 8 years
subdivision project or completion of
d. 10 years development of a subdivision project is a
e. None of the above a. NHA
b. DHSUD
SET D – MOCK EXAM REA c. LGU
d. HUDCC
1167. Husband and wife can sell property to
e. HIGC
each other in the following circumstances:
1174. A buyer of a subdivision lot on
a. Separation of property was agreed upon
installment after sufficient notice to the
in the pre-nuptial agreement
developer discontinued paying amortization
b. There has been a judicial separation of
because the developer failed to develop the
property
subd as certified by the HLURB in such a
c. There has been a legal separation
situation and under PD 957, the buyer is
d. Any of the above
entitled to a refund which would be
1168. Document to be checked before buying
a. Total payment made less penalty
a subdivision lot
charges
a. license to sell
b. Total payment made less penalty plus
b. development permit
interest charges
c. approve plan
c. Total payment made less penalty
d. map
charges and interest on total payment
e. none of the above
d. Total payment plus penalty charges
1169. Condominium act
e. NOTA
a. RA 2774
1175. Provided by RA 7279 a developer of a
b. RA 4276
subd. Project is required to develop an
c. RA 4727
equivalent 20% of the project for
d. RA 4726
a. socialized housing
e. NOTA
b. economic housing
1170. Urban Development and housing Act
c. open space
a. RA 7927
d. commercial area
b. RA 7972
1176. Title to condominium unit is vested in
c. RA 9279
a. lot owner of the condo project
d. RA 7279
b. corporation owning the building
e. NOTA
c. association of the bldg
1171. In the absence of any provision in the
d. owner of the condominium unit
master deed of a condominium project, the
e. NOTA
interest of the unit owner in the common
1177. sometimes refered to as a vertical subd.
areas shall be;
100
 a. condominium majority of registered owners must be
b. town houses approved by the HLURB and
c. row houses a. City or municipal
d. mansion council
e. NOTA b. City of Municipal
1178. Subdivision and condominium buyers Engineer
protective decree c. City of Municipal Mayor
a. PD 1216 d. City or Municipal Assessor
b. PD 957 1185. Amendment to the master of deed of a
c. PD 1981 condominium project approved by majority
d. BP 220 of registered owner also need to be
e. NOTA approved by the city engineer and
1179. The term of a condominium corporation a. NHA
is b. HUDCC
a. 10 years c. LRA
b. 50 years d. DHSUD
c. 25 years e. LGU
d. Co terminus with the duration of 1186. Notice of adverse claim annotated on
condo project title is valid only for
e. ALL OF ABOVE a. 15 days
1180. The performance bond for a subd b. 60 days
project may be in the form of a surety bond c. 90 days
equivalent to d. 10 days
a. 30% of the development cost e. 30 days
b. 40% of the development cost 1187. Some old Spanish title , the
c. 20% of the development cost unit of measure one 1 “are” is
d. 10% of the development cost equal to
e. 25% of the development cost a. 10 sq.m.
1181. The areas reserve for parks, playground b. 1,000 sq.m.
and recreational areas of a subd project are c. 100 sq.m.
a. saleable lots d. 10,000 sq.m
b. non alienable public land e. 1 sq.m.
c. Exclusively owned by the owner 1188. Jose owns a house on a parcel that
developer includes an easement over the adjoining
d. Co owned by the developer and lot property of Tom Yan. The Jose property is
owner the
1182. The area reserved for roads, alleys a. Servient tenement
and open spaces in a subd. Project with b. For sale property
an area of one hectare or more is c. Dominant tenement
a. 10% of the gross area d. None of the above
b. 30% of the gross area 1189. Co-owners who have an equal right of
1183. In mixed use condominium project, the possession coupled with a right of
master deed may be amended by the survivorship have
simple majority of unit owners. Majority is a. Tenancy in common
based on. b. Tenancy in partnership
a. floor area of ownership c. Joint tenancy
b. number condominium units d. Marital property
c. total area of condominium units 1190. In what form of property ownership is
d. all of the above an exclusive right to an identified segment
1184. The amendment of master of deed of a of airspace conveyed along with an interest
condominium project is decided by the in common in the rest of the parcel?
a. House and lot
101
 b. both of the above b. time, title, interest, and possession
c. Townhouse c. possession, ownership, use, and
d. Condominium enjoyment
1191. The property of a person who dies d. title, time, location, and possession
leaving no heirs passes to the state by the 1198. A life estate is a(n)
right of a. present, possessory interest.
a. acquisition b. estate of tenancy.
b. escheat c. future interest.
c. condemnation d. fee simple defeasible.
d. eminent domain 1199. During the research of a subject
1192. Condemnation of private property for property an appraiser learns the occupants
public use is called the right of (parents) have been granted a life estate by
a. Seizure their children. What interest do the children
b. Eminent Domain hold in the property?
c. Escheat a. Remainder man
d. Acquisition b. Trustee
1193. All of the following areas of regulation c. Life tenant
affect appraisers EXCEPT d. Trustor
a. DTI 1200. Property acquired by a spouse
b. LGU Planning Office during marriage by gift or
c. PRC inheritance is
d. DSWD a. marital property
1194. The agency that now insures deposits in b. separate property
financial institutions is c. community property
a. BSP d. jointly owned property
b. HUDCC 1201. A deed of trust is
c. HMDF a. A document that makes a third party
d. PDIC responsible for the money
1195. The form of deed used to return b. A document that gives a third party
title to real estate to its owner when the deed until the mortgage loan is
the debt secured by a deed of trust is paid off
paid in full is the c. A deed given by a prisoner who has
a. warranty deed behaved for many years.
b. quitclaim deed d. Used as a tool to make foreclosure more
c. reconveyance deed efficient
d. tax deed 1202. Based on net gift the maximum rate of
1196. Tenancy by the entirety is a form of donor tax is (2021)
a. marital property ownership a. 6%
b. business property ownership b. 15%
c. tenancy in common c. 10%
d. ownership in severalty d. 30%
1197. The four 1203. The rate of real estate tax in
unities municipalities within metro manila is not
required for a more than
joint tenancy a. 5%
include b. 10%
a. tenancy, c. 2%
location, d. 20%
title, and 1204. Under the local government code,
possession agricultural lands of more than one hectare
are subject to additional tax of no more than
5% of assessed value when at lest
102
 a. entire area is uncultivated 1211. The following composed the board of
b. 50% of the area is uncultivated assessment of Makati city, except
c. 30% of the area is uncultivated a. city assessor
d. 20% of the area is uncultivated b. register of deed
1205. Annual levy on real estate equivalent to c. city treasurer
1% of the assessed value which shall be in d. city engineer
addition to the basic real estate tax 1212. Documentary stamp tax on the sale of
a. ad valorem tax property must be paid
b. special education fund tax a. within 30 days from the date of
c. excise tax notarization
d. vat b. within 5 days after the close of the
1206. Capital gains on the sale of real estate month of the date of sale
classified as capital asset is c. within 10 days after the close of the
a. prepaid income tax month of the date of sale
b. expanded withholding tax d. at the time payment of capital gains tax
c. creditable tax on sale 1213. Value placed on taxable property by the
d. creditable tax on sale assessor for ad valorem tax purpose
1207. BIR revenue regulation no 17-2003, the a. economic value
seller of a family home who failed to utilized b. assessed value
the proceeds to acquire a new residence c. appraised value
within 18 months from the sale shall be d. market value
assessed additional deficiency capital gains 1214. The property sold is an ordinary asset,
tax inclusive of penalties and what is the applicable tax
a. 5% p.a. a. estate tax
b. 20% p.a. b. capital gains tax
c. 25% p.a. c. percentage tax
d. 10% p.a. d. creditable withholding tax
1208. Ground floor of a condominium project 1215. Tax fixed on documents, instruments
per BIR 28-29 shall be considered as and papers evidencing acceptance,
commercial and a additional rate shall be assignment or sale of a right, property or
added on established residential zonal obligation
value of a. community tax
a. 20% b. excise tax
b. 15% c. estate tax
c. 10% d. documentary stamp tax
d. 25% 1216. Banks acquired assets which form part
1209. The estate tax return shall be filed with of its real estate inventories at the close of
the BIR within its accounting period shall be classified
a. 90 days from the death of the decedent a. ordinary asset
b. 120 days from the death of the decedent b. fixed asset
c. 60 days from the death of the decedent c. capital asset
d. 180 days from the death of the d. tangible asset
decedent 1217. Sale of a dealer of a residential dwelling
1210. Taxpayer has__ to redeem his real is not subject to VAT when the price does
property which was levied and subsequently not exceed (2021)
forfeited and acquired by the local a. 1,500,000.00
government for tax delinquency b. 1,000,000.00
a. 3 years c. 2,500,000.00
b. 1 year d. 3,199,200.00
c. 5 years 1218. Which of the following cannot be issued
d. 2 years condominium certificates of titles
a. subdivision lots
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 b. two level row house 1225. The documentary stamp on lease of real
c. one level raw house estate is P6.00 for the first P2,000.00 or
d. industrial warehouse fraction thereof and additional (2021)
1219. The required number of votes of a. P0.50 for every P1,000 in excess of the
registered owners to authorize a first P2,000
condominium corporation to sell or b. P1.00 for every P1,000 in excess of the
otherwise dispose of the common areas in a first P2,000
condominium project is c. P1.50 for every P1,000 in excess of the
a. unanimous votes first P2,000
b. Simple majority votes d. P2.00 for every P1,000 in excess of
c. 2/3 votes the first P2,000
d. 1/3 votes e. P3.00 for every P1,000 in excess of the
1220. A space to be considered a first P2,000
condominium unit 1226. Under BIR Revenue Regulation No. 17-
a. at least 5 storey high 2003, the seller of a family home who
b. manage by condominium corporation failed to utilize the proceeds to acquire a
c. be susceptible to independent use new residence within 18 months from the
and owner ship sale shall be assessed additional
d. unencumbered by any restriction deficiency capital gains tax inclusive of
1221. The right of an owner lessor to receive penalties and:
the contract rent and reversion of property a. 5% interest per annum
at the end of the lease is b. 10% interest per annum
a. fee simple c. 15% interest per annum
b. lease fee estate d. 20% interest per annum
c. net lease e. 25% interest per annum
d. freehold 1227. The rate of real estate tax in
1222. An authority given by the developer to municipalities within Metro Manila is not
a broker to look for a supplier of more than
backfilling materials who shall be paid a. One-half percent of assessed value
with developed lots is: b. Three percent of assessed value
a. Procurement agency c. One percent of assessed value
b. Sales agency d. None of the above
c. General Brokerage e. Two percent of assessed value
d. None of the above 1228. Based on net
e. Exchange agency gifts, the
1223. An agreement between an owner maximum rate of
and a broker to sell a real estate donor’s tax is:
property: a. Ten Percent
a. Listing b. Fifteen percent
b. Power of Attorney c. Thirty percent
c. Authority to sell d. Twenty percent
d. None of the Above e. Twenty-five percent
e. Joint venture 1229. The value placed on taxable property by
1224. In the real estate the assessor for ad valorem tax purpose is:
business, another a. Market Value
term for the owner is: b. Appraised Value
a. Customer c. Assessment Value
b. Principal d. Assessed Value
c. None of the e. Economic Value
above 1230. The estate tax return shall be filed with
d. Prospect the BIR within :
e. Alter Ego
104
 a. 60 days from death of decedent d. P 2,000,000.00
b. 180 days from death of decedent e. P 750,000.00
c. 90 days from death of decedent 1236. A taxpayer has ____ to redeem his
d. 240 days from death of decedent real property which was levied and
e. 120 days from death of decedent subsequently forfeited and acquired by
1231. Under the Local Government Code, the the local government for tax
next period for the property owner to file a delinquency.
sworn declaration of ownership and value a. 1 year
with the assessor is: b. 60 days
a. Year 2018 c. 2 years
b. Year 2019 d. 4 years
c. None of the above e. 3 years
d. Year 2020 1237. In case of foreclosure sale where right of
e. Year 2021 redemption is not exercised by the
1232. The documentary stamp mortgagor, who pays the capital gains tax?
tax on the sale of property a. Owner-mortgagor
must be paid b. Buyer of the property
a. Within thirty (30) days c. None of the above
from the date of d. Creditor-bank
notarization e. Any of the above
b. Within five (5) days after the close of 1238. The documentary stamp on every
the month of the date of sale mortgage or pledge of real estate is:
c. Within ten (10) days after the close of (2021)
the month of the date of sale a. P40.00 for the 1st P5,000.00 plus
d. At the time of payment of capital gains P20.00 for every P5,000.00
tax thereafter
e. At any time b. P10.00 for every P5,000.00 or fraction
1233. The ground floor of a condominium thereof
project, per BIR 28-98, shall be considered c. P15.00 for every P5,000.00 or fraction
as commercial and an additional rate shall thereof
be added on established residential zonal d. P2.00 on each P200.00 or fraction
value of: thereof
a. 10% e. None of the above
b. 25% 1239. In case of sale of agricultural lands
c. 15% not exceeding five (5) hectares, aside
d. 30% from clearance from DAR, buyer must
e. 20% also submit what document?
1234. The schedule of fair market value in a. Undertaking to surrender land in
municipalities in Metro Manila is prepared excess of retention limits
by: b. Affidavit of compliance with CARL
a. MMDA c. Affidavit of total or aggregate
b. Bureau of Internal Revenue landholding
c. Concerned Municipal Assessor d. Certification from DAR
d. Sangguniang Bayan by ordinance e. Affidavit of waiver
e. None of the above 1240. The retention limit of landowners under
1235. The amount of family home equivalent to the CARP is:
the fair market value considered as a. 5 has for the landowner and 3 has per
allowable deductions from the estate of the child irrespective of age
decedent b. 5 has for the landowner and 3 has per
a. P 500,000.00 child who must be at least 15 years old
b. P 1,000,000.00
c. P1,500,000.00
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 c. 5 has for the landowner and 5 has per c. Based on Value
child whether or not they till the land or d. None of the above
manage the farm e. Equal
d. 5 has for the landowner and 3 has per 1245. Urban Development and Housing Act:
child who must be at least 15 years a. R.A. 7279
old and is actually tilling the land or b. R.A. 9279
managing the farm c. R.A. 7927
e. 5 has for the landowner and 3 has per d. R.A. 7972
child who must be over 21 years old e. None of the above
1241. A buyer of a subdivision lot on 1246. Condominium Act:
installment after sufficient notice to the a. R.A. 4727
developer discontinued paying amortization b. R.A. 4276
because the developer failed to develop the c. R.A. 2774
subdivision as certified by the HLURB in d. R.A. 4726
such a situation and under P.D. 957, the e. None of the above
buyer is entitled to a refund which would be: 1247. Document to be
a. Total payment made less penalty checked before
charges. buying a subdivision
b. Total payments made less penalty lot:
and interest charges. a. Development
c. Total payments made less penalty permit
charges plus interest on total payment. b. Map
d. Total payments including penalty c. License to sell
charges d. None of the above
e. None of the above. e. Bureau of Land approval
1242. Unless extended for justifiable cause, 1248. Sometimes referred to as vertical
the period of completion of development of subdivision:
a subdivision project, counted from a. Row Houses
issuance of license to sell, is: b. Mansion
a. Six months c. Town Houses
b. Eighteen months d. None of the above
c. Twelve months e. Condominium
d. Twenty four months 1249. Subdivision and
e. None of the above Condominium Buyers
1243. Registration of a mortgage Protective Decree:
covering a subdivision project or a. P.D. 1216
completion of development of a b. P.D. 957
subdivision project is at the: c. B.P. 220
a. Local Government Unit d. None of the above
b. Housing and Urban Development e. P.D. 1981
Coordinating Council 1250. The area reserved for roads, alleys and
c. Home Insurance Guarantee Corporation open spaces in a subdivision project with an
d. Department of Human Settlement and area of one hectare or more is:
Urban Development a. 20% of gross area
e. National Housing Authority b. 25% of gross area
1244. In the absence of any provision in the c. 30% of gross area
master deed of a condominium project, the d. 35% of gross area
interest of the unit o owners in the common e. None of the above
areas shall be: 1251. For a space to be considered a
a. Proportionate condominium unit, it must:
b. Decided by the condominium a. be encompassed by interior surface of
corporation walls, floors and ceilings
106
 b. be managed by a condominium 1257. It is the introduction of harmful
corporation substance or by products into the
c. be susceptible of independent use environment
and ownership a. Degradation
d. be unencumbered by any restriction b. Pollution
e. at least five storeys high c. Solid waste
1252. In mixed use condominium project, the d. Contamination
master deed may be amended by simple e. Discharge
majority of unit owners. Majority is based 1258. It is a certification issued by the EMB
on: certifying that based on the submitted
a. Number of condominium units project description, the project is not
b. Floor area of ownership covered by the EIS system and is not
c. Total area of condominium units required to secure an ECC
d. Any of the above a. Environmental compliance certificate
e. None of the above b. Feasibility study
1253. Amendment to the master deed of a c. Project impact study
condominium project approved by majority d. Environmental impact study
of registered owners also need to be e. certificate of non coverage
approved by the city engineer and: 1259. what is EMB under the bureau of DENR
a. Local Government e. National Housing a. Ecosystem Management bureau
Authority b. Environmental Management Bureau
b. Housing and Urban Development c. External Management bureau
Coordinating Council d. Environmentally Management Bureau
c. Department of Human Settlement and e. Ecology Management bureau
Urban Development 1260. Under HDMF circular 189-C, a qualified
d. Land Registration Authority Pagibig member can purchase residential
1254. Under the local government code, lot not exceeding
the appraisal of the fair market value of a. 500 sq.m.
real property shall be based on b. 1,000 sq.m.
a. actual use c. 750 sq.m.
b. independent appraisal value d. 1,500 sq.m.
c. declaration of lot owner e. 250 sq.m.
d. assessed value 1261. Maximum amount of loan available
1255. When to pay Estate tax if the case is under Unified Home Lending Program
settled judicially a. 250,000.00
a. Not exceeding 2 years b. 375,000.00
b. not exceeding 10 years c. 200,000.00
c. Not exceeding 3 years d. 500,000.00
d. Not exceeding 5 years e. 300,000.00
e. Not exceeding 4 years 1262. Zero Assessment level refers to an
1256. When to pay assessment of all building whose market
Estate tax if the case value does not exceed-_______ which are
is settled extra exempted from payment of real property
judicially taxes
a. Not exceeding 2 a. 75,000.00
years b. 175,000.00
b. not exceeding 10 c. 125,000.00
years d. 275,000.00
c. Not exceeding 3 years e. 150,000.00
d. Not exceeding 5 years 1263. How often does the real property
e. Not exceeding 4 years assessment be revised by the City/
Municipal assessor
107
 a. every year c. real estate investment trust
b. 7 years d. real estate investment corporation
c. 3 years e. Philippine stock exchange
d. 5 years 1269. The Real estate investment trust act
e. 10 years a. RA 9856
1264. A tax imposed on the sale, donation, b. RA 9886
barter or any other mode of transferring real c. RA 9865
property ownership or title d. RA 9646
a. simple fee/tax e. RA 9586
b. registration fee 1270. A real estate investment trust is a
c. filing fee/tax a. a public company
d. excise tax b. upon and after listing, have at least
e. transfer fee/tax 1,000 public shareholders
1265. Who is the chairman of c. maintain as a listed company in sec/pse
LBAA or Local board of d. nota
assessment Appeal e. all of the above
a. Provincial auditor 1271. Real estate investment trust must
b. Register of Deeds distribute annually at least ______ of its
c. City Treasurer distributable income as dividends to its
d. Fiscal shareholder
e. City Assessor a. 50%
1266. Tax b. 20%
imposed c. 75%
on every d. 90%
citizen of e. 40%
the 1272. The price or value of property agreed
Philippines upon the seller who is not is compelled to
a. excise sell and a buyer who is not compelled to
tax buy, both knowing all material facts relative
b. Real to the property and the transaction
propert a. appraised value
y tax b. assessed value
c. documentary tax c. economic value
d. Ad valorem tax d. fair market value
e. Community tax e. zonal value
1267. All real estate broker and private 1273. The sale of or transfer of real property to
appraiser shall be required to post a real estate investment trust, which includes
professional indemnity insurance/cash or the sale or transfer of any and all security
surety bond, in an amount with no less interest thereto, shall be subject to.
than_____, without prejudice to additional a. 25% of the applicable DST
requirement of the client. It will be b. 10% of the applicable DST
renewable every 3 years. c. 75% of the applicable DST
a. 2,000 pesos d. 50% of the applicable DST
b. 15,000 pesos 1274. Income payment to real estate
c. 5,000 pesos investment trust shall be subject to a lower
d. 20,000 pesos creditable withholding tax of
e. 10,000 pesos a. 5%
1268. a stock corporation established b. 1%
principally for the purpose of owning income c. 10%
generating real estate assets d. 7.5%
a. real estate trust e. 2%
b. real estate company
108
1275. Real estate investment trust may only
invest in
a. REAL ESTATE RELATED ASSET
b. DEBTS SECURITIES, MANAGE
FUNDS AND LISTED SHARES
ISSUED BY LOCAL OR FOREIGN
NON PROPERTY CORPORATIONS
c. REAL ESTATE LOCATED IN THE
PHILS
d. GOVERNMENT SECURITIES ISSUED
IN BEHALF OF THE GRP OR THE
GOVERNMENT OF THE OTHER
COUNTRIES AND SECURITIES
ISSUED BY MULTILATERAL
AGENCIES
e. ALL OF THE ABOVE
1276. Transfer of awarded lands from CARP is
prohibited for a period of
a. 5 years
b. 8 years
c. 20 years
d. 15 years
e. 10 years
1277. PD 1517 or Urban Land Reform Law an
area considered urban when it has a
population density of at least an area of.
a. 1,000 resident per sq.km. and at least
25% of active resident engage in non
agricultural activities
b. 1,000 resident per sq.km. and at least
50% of active resident engage in non
agricultural activities
c. 1,500 resident per sq.km. and at least
50% of active resident engage in non
agricultural activities
d. 2,000 resident per sq.km. and at least
70% of active resident engage in non
agricultural activities
e. 1,000 resident per sq.m. and at least
25% of active resident engage in non
agricultural activities
SET 2 REA MOCK EXAM
1278. In economics, the four factors of
production are
a. land, labor, capital, and improvements
b. land, labor, capital and
entrepreneurship
c. land, labor, capital and money
d. land, improvements, labor and materials
e. land, labor, site, and improvements
1279. The law of supply and demand is
a. basic economic principle
b. legislated by Congress
c. seldom used in the appraisal process
d. not a applicable in the short term
e. all of the above
1280. Which of the is NOT an agent of
production?
a. land
b. capital
c. transportation
d. entrepreneurship
e. labor
1281. Political forces affecting value may
include
a. life-styles and living standards
b. topography
c. athletic levels and recreation facilities
d. government spending and taxation
policy
e. primary registration and turnout
1282. What are the two categories of tangible
property?
a. real property and personal property
b. intangible property and real property
c. real estate and intangible property
d. legal and illegal investments
e. open and shut transactions
1283. Zoning is an exercise of the
a. equity courts
b. police powers
c. Environmental Protection Agency
d. Right of condemnation
e. Right of escheat
1284. Which of the following types of property
is subject to ad valorem taxation?
a. property owned by a religious
organization and used for a
religious purpose
b. new industrial plants that state and
local governments have induced,
with tax exemption as an incentive,
to locate within their jurisdictions
c. commercial buildings leased in part
by nonprofit foundations
d. state colleges and universities
e. a state capitol
1285. A person owning less than the entire
bundle of rights has
a. escheat
b. personal property
c. a fee simple title
109
 d. a fee tail a. market value
e. a partial interest b. a historical fact
1286. A metes and bounds description c. most probable sales price
begins and ends with the d. all of the above
a. street and house number e. investment value
b. grid coordinates 1292. Functional utility depends on
c. block number a. zoning
d. iron pin b. wear and tear on the structure
e. point of beginning c. tastes and standards
1287. A (n) ____ identifies a property in such a d. age of the equipment
way that it CANNOT be confused with any e. insurance requirements
other property. 1293. Value in use is
a. coded map book a. subjective
b. full city survey b. objective
c. legal description c. readily measurable
d. engineering report d. a market phenomenon
e. narrative appraisal e. synonymous with market price
1288. All of the following statements are true 1294. The value added to total property value
EXCEPT by a particular component is an example of
a. REAL PROPERTY IS A TYPE OF the principle of
SERVICE a. substitution
b. VALUE IS DEPENDENT ON MARKET b. contribution
CONDITIONS c. anticipation
c. A GOOD OR SERVICE HAS NO d. conformity
VALUE IN EXCHANGE UNLESS IT e. change
POSSESSES CERTAIN ECONOMIC 1295. The concept that the value of a
AND LEGAL CHARACTERISTICS particular components is measure by the
d. THE PRICE REPRESENTING VALUE amount that its absence would detract from
IS USUALLY QUOTED IN TERMS OF the value of the whole is
MONEY a. opportunity cost
e. REAL ESTATE MAY BE SOLD FOR b. contribution
ALL CASH OR FINANCING c. substitution
ARRANGED d. conformity
1289. All of the following will affect e. competition
the market value of a property 1296. The market loss cause by
EXCEPT depreciation in an older structure may be
a. POLITICAL FACTORS offset by all of the following EXCEPT
b. LEGAL USE RESTRICTION a. architectural interest
c. ACQUISITION COST TO PRESENT b. historical registration
OWNER c. strong demand relative to supply
d. ECONOMIC FACTORS d. strong supply relative to demand
e. SOCIAL CONCERNS e. renovation of the structure
1290. Market value is ____ the same as selling a. S
price. b. to pass the real estate broker’s license
a. always examination
b. usually c. to understand other real estate courses
c. never d. to communicate with appraisers
d. none of the above e. all of the above
e. sometimes 1297. A dramatic change in short-term
1291. Price is demand for real estate in the local market is
likely to immediately precipitate
a. construction
110
 b. activity d. a precise statement of value
c. price changes e. a broker’s comparative sales analysis
d. no change in supply with further detail
e. conversions 1304. The “as of” date in an appraisal
1298. The area and community analysis report is
section of an appraisal report a. the date to which the value applies
a. should “sell” the community b. immaterial to the value estimate
b. should describe the community c. the date on which the report is delivered
objectively d. the date on which the property will be
c. is a study by the estate’s industrial conveyed
development commission e. the anticipated closing date
d. considers the negative aspects only 1305. Sales data descriptions of an appraisal
e. considers the positive aspects only report contain
1299. In analyzing the economic environment a. details about each comparable sale
and market area, it is best to b. an analysis of the date, using the value
a. start at the general level and work approaches
down to the specific c. the investigation of market forces
b. start at the specific and work up to the d. analysis of the street each comparable
general level property is on
c. limit the analysis to the national level e. zoning details
d. generally consider traffic flow 1306. All of the following are ways to delineate
1300. Which of the following reports is usually a neighborhood EXCEPT
NOT prepared by a real estate appraiser? a. natural barriers
a. marketability study b. streets
b. economic study c. UTILITY SERVICE
c. feasibility study d. income characteristics
d. transportation network study e. political boundaries
e. valuation study 1307. All of the following are sources of
1301. An appraisal of a specific-purpose for comparable sales EXCEPT
insurance purpose would depend most a. public records
heavily on b. mortgage services
a. book value c. brokers
b. highest and best use d. appraisers
c. cost estimate e. buyers and sellers
d. specialty value 1308. Which of the following criteria most
e. land value completely define “highest and best
1302. The first step in the appraisal process is use”?
to a. legally authorized, politically viable,
a. define the problem to be solved and socially acceptable
b. gather relevant data b. physically possible, comparable to other
c. analyze the data uses in the neighborhood, and legally
d. inspect the property authorized
e. set the fee to be charged c. physically possible, legally
1303. An appraisal is permissible, financially feasible, and
a. an estimate of net generating a higher present land
realizable value value than any other use
b. always concerned d. comparable to other uses in the
with the market neighborhood, physically possible, and
value generating a higher present land value
c. an appraiser’s than any other use
opinion of market e. the tallest and most beautiful structure
value that can be placed on land
111
1309. The three basic approaches used to 1316. The effective age and the useful life of a
estimate value are building represent judgments made by the
a. use, exclusion, and disposition a. appraiser
b. cost, sales comparison, and use b. buyer
c. cost, sales comparison, and market data c. property owner
d. cost, sales comparison, and production d. insurer
e. cost, sales comparison, and income e. tax assessor
capitalization 1317. The period over which existing
1310. Units of comparison are used in improvements are expected to continue to
a. only the sales comparison approach contribute to property value is their
b. only the cost approach a. effective age
c. only the income capitalization approach b. period of diminishing returns
d. A, B and C c. remaining economic life
e. the appraisal of special-purpose d. chronological age
properties only e. remaining physical life
1311. When reconciling the adjusted sales 1318. For a building, effective age is best
prices of comparables, the greatest defined as
emphasis should be given to a. the average age of the roof
a. the average b. the actual age divided by the age-life
b. the median c. the age of other property in
c. the mode equivalent condition and utility the
d. the mean of A, B, and C chronological age of the building
e. none of the above d. the chronological age of the building
1312. Which of the following forms of appraisal e. the period over which the building may
report is NOT recommended? be effectively used
a. completely filled-in institutional form 1319. The utility of real estate is its
b. telephone conversation a. attractiveness to the trained observer
c. letter report b. longevity
d. long narrative report c. capacity to satisfy human needs and
e. demonstration desires
1313. Which of the following approaches d. effective demand
would probably be given the most weight in e. remaining economic life
appraising a large office building? 1320. In appraising a residence, adjustments
a. reproduction cost are NOT made to the comparable property
b. income capitalization for
c. subdivision development a. age
d. market absorption b. terms of sale
e. replacement cost c. lot value
1314. The form in which a formal appraisal is d. size
presented is called e. ASSESSED VALUATION
a. a presentation of value 1321. When a site has improvements on it, the
b. a value certification highest and best use
c. an appraisal log a. is not definable
d. a narrative b. is its existing use
e. an appraisal report c. is its potential use
1315. The form of an appraisal report d. depends on whether or not the existing
a. has no influence on the appraisal use is changeable
process e. MAY BE DIFFERENT FROM ITS
b. is the same, regardless of the problem EXISTING USE
c. is set by the amount of the fee 1322. To be considered as a comparable, a
d. is determined by the appraiser property
e. determines the appraisal framework
112
 a. a must have been sold within the past 5 excellent , with each difference in condition
years grade worth 5%; a two-care garage is
b. must be competitive with the subject judged to be worth 1,500 more than a one-
c. must have been sold by an open-market car garage.
transaction
d. must be a similar color 1326. What is the size adjustment for
e. both B and C Comparable 1?
1323. The direct sales comparison approach is a. +1,500
better than the income or cost approach b. +3,000
because c. - 1,500
a. FEWER COMPARABLE PROPERTIES d. - 3,000 (90,000 – 87,000)
ARE REQUIRE, SO IT IS EASIER TO e. 0
OUTLINE THE RESULTS TO CLIENTS 1327. What is the size adjustment for
b. THERE ARE FEWER MATHEMATICAL Comparable 2?
CALCULATIONS, SO THERE IS LESS a. +1,500 (88,500 – 87,000)
CHANCE OF MATHEMATICAL b. + 3,000
ERRORS c. - 1,500
c. THE MARKET FOR REAL ESTATE IS d. - 3,000
SLOW TO CHANGE e. 0
d. IT IS ALWAYS EASIER TO OBTAIN 1328. What is the condition adjustment for
DATA FOR THE DIRECT SALES Comparable 1?
COMPARISON APPROACH a. +9,000
e. NONE OF THE ABOVE TRUE b. +4,500
1324. The appraisal of an established 20-year c. -9,000
old motel on a road with numerous d. 4,500
competitive motels would most likely be e. 0
based on the 1329. What is the condition adjustment for
a. square foot are of improvements Comparable 2?
b. number of units a. +P8,850
c. reproduction cost b. +P4,425
d. gross rent multiplier c. - 8,850
e. occupancy rate d. - 4,425
1325. In applying gross rent multiplier analysis e. 0
to the subject property, the appraiser would 1330. What is the garage adjustment for
use the Comparable 2?
a. market rental a. 0
b. actual rent being paid b. +P3,000
c. rent currently asked by the owner c. - 1,500
d. rent offered by a potential tenant d. - 3,000
e. rent listed in advertising the property e. - 1,500
1331. What is the garage adjustment for
Comparable 3?
a. + 3,000
b. +1,500
c. -3,000
d. -1,500
e. 0
1332. In estimating the market value of a
comparable sale, an appraiser must
Other Adjustments: Each square foot of consider all of the following EXCEPT
livable area is judged to be worth 30;
condition grades are fair, good, and
113
 a. whether the transaction was made in e. THE UNIT CONSIDERED IMPORTANT
cash, terms equivalent to cash, or other BY THE MARKET
precisely revealed terms 1337. You are asked to appraise a vacant
b. whether the property had reasonable building lot. The neighborhood is about 75%
exposure in a competitive market built-up. Most lots in the area are from 55 ft.
c. whether a fair sale was transacted, with to 85 ft. to 65 ft. wide; the lot under
neither the seller nor the buyer acting appraisal is 60 ft. Comparable sales
under duress indicate that lots are selling at 120 to 150
d. WHETHER THE REPLACEMENT per front foot. What is a good estimate of
COST OF THE PROPERTY the price range for this lot?
CORRESPONDS TO ITS MARKET a. 9,000-11,000
VALUE b. 7,200-9,000
e. whether the seller was related to the c. 5,400-6,750
buyer d. 6,600-7,600
1333. The terms financing, whether good or e. 6,600-11,250
bad,
a. have no effect on the market price Solution
b. HAVE NO EFFECT ON THE MARKET 60(120 – 150)
VALUE
c. have no effect on affordability 1338. In appraising a residential property by
d. depend on fiscal and monetary policy the cost appraiser considers the
e. should be ignored when adjusting a. sales prices of comparable properties
comparables b. deprecation of the land
1334. Adjustments to the property rights c. DEPRECIATION OF IMPROVEMENTS
conveyed, financing, conditions of sale, d. potential for new competition
date of sale, and location are often made e. potential misuse of this approach
to the ____ of the comparable property. 1339. In the cost approach, ____ is deducted
a. unit price after estimating the cost to reproduce an
b. ACTUAL SALES PRICE existing structure.
c. price per square foot a. land cost
d. gross income multiplier b. cash equivalence
e. cash equivalent value c. cost to maturity
1335. Cumulative percentage adjustments d. legal factors
may be used e. DEPRECIATION
a. WHEN THE CHARACTERISTICS ARE 1340. Economic obsolescence does NOT
INTERDEPENDENT result from
b. when the characteristics are a. and outdate kitchen
independent b. construction of a freeway near the
c. when dollar figures are available property
d. when unimproved properties are being c. the presence of an earthquake fault
appraised nearby
e. under no circumstances d. BUILDING RESTRICTIONS IN THE
1336. The best unit of comparison for COMMUNITY
vacant land is e. factors external to the subject property
a. the square foot itself
b. the total lot 1341. Reproduction or replacement cost
c. a combination of square foot and front includes all of the following EXCEPT
foot units a. AN OUTDATED KITCHEN
d. the linear foot b. CONSTRUCTION OF A FREEWAY
NEAR THE PROPERTY
c. THE PRESENCE OF AN
EARTHQUAKE FAULT NEARBY
114
 d. BUILDING RESTRICTIONS IN THE 1348. How much is curable physical
COMMUNITY deterioration?
e. FACTORS EXTERNAL TO THE a. 250
SUBJECT PROPERTY ITSELF b. 2,500
1342. Reproduction or replacement cost c. 750
includes all of the following EXCEPT d. 1,000 (750 + 250)
a. DIRECT OR HARD COSTS e. none of the above
b. INDIRECT OR SOFT COSTS 1349. How much is functional
c. ENTREPRENEURIAL PROFIT obsolescence?
d. FIXED AND VARIABLE EXPENSES OF a. 250
OPERATIONS b. 6,500 (4000 + 2500)
e. ELEVATOR SHAFTS c. 750
1343. In analyzing obsolescence , the test of d. 4,000
curability of a component in a building is e. 1,200
whether the cost to cure is no greater than 1350. How much is environmental
the obsolescence?
a. EXPECTED INCREASE IN VALUE a. 250
b. reproduction cost new b. 2,500
c. replacement cost c. 750
d. installation cost d. 4,000
e. economic life of the new component e. 1,200 (External Obsolescence)
1344. Which of the following is NOT a type of 1351. An appraisal of a freestanding store and
depreciation? the land it occupies is an unbiased estimate
a. ENTREPRENEURIAL LOSS of the value of an interest in
b. functional obsolescence a. personal property
c. external obsolescence b. mortgages
d. economic obsolescence c. real estate
e. physical deterioration d. personal property and land
1345. Estimation of occurred depreciation and e. real estate plus business value
obsolescence does NOT involve 1352. The term vertical interest does NOT
a. physical deterioration refer to rights to
b. functional obsolescence a. subsurface mineral extraction
c. economic obsolescence b. the construction and railroad tunnels
d. wear and tear c. the use and regulation of air space
e. financial structure d. SUBDIVISION AND DEVELOPMENT
1346. In appraisal, accrued depreciation is e. the construction of buildings over
really an estimate of railroad yards
a. physical deterioration 1353. Inflation tends to increase the value
b. capital recovery of
c. diminished utility a. fixed-income securities
d. sinking fund factor b. TANGIBLE LONG-LIVED
e. book depreciation INVESTMENTS
1347. The cost approach NOT useful for c. mortgages
a. checking value approaches d. debts
b. appraising institutional or special-use e. deeds in lieu of foreclosure
properties 1354. With an amortized mortgage loan,
c. ESTIMATING THE VALUE OF NEW a. interest only is paid until maturity
PROPERTY b. SOME PRINCIPAL IS REPAID WITH
d. appraising older homes in an active EACH PAYMENT
market c. the entire principal is repaid before
e. insurance appraisals maturity

115
 d. equal amounts of principal are repaid d. cash flows
each period e. net operating incomes
e. there is a balloon payment at maturity 1360. Time-distance relationship between a
1355. When each alternative use requires the site and all relevant origins and destinations
same capital investment, the use that are called
maximizes the investment’s ____ on a long- a. access roads
term basis is highest and best use. b. linkages
a. diversified portfolio c. transit facilities
b. potential gross income d. synergies
c. OPERATING EXPENSES e. ingress and egress
d. occupancy rate 1361. The land on which a 10-year-old house
e. net operating income is located is valued at P28,000, and the
1356. Land purchased for 50,000 cash reproduction cost of the dwelling is
appreciates at the rate of 15% P92,000. Straight-line depreciation is 2%
compounded annually. About how much per year, applied to the building only. If
is the land worth after 5 years? Disregard there is no other obsolescence, what is the
taxes, insurance, and selling expenses. indicated value of the property?
a. 100,000 (50K × 1.155) a. P96,000
b. 37,500 b. P117,700
c. 87,500 c. P101,600
d. 7,500 d. P120,000
e. 57,500 e. P117,000
1357. A land speculator expects that a certain
100-acre tract can be sold to a subdivider 4
years from now for 10,000 per acre. If 2% × 10 × 92,000 = 18,400
holding and selling costs are disregarded, 92,000 – 18,400 – 28,000 = 101,600
what cash price today (rounded to the
nearest 1,000) would allow the speculator to 1362. Effective gross income is income after
realize a 15% compounded annual rate of an allowance for
return on the entire tract? a. depreciation
a. 572,000 b. both A and B
b. 6,000 c. operating expenses
c. 5,000 d. none of the above
d. 600,000 e. cash expenditures
e. none of the above 1363. In discounted cash flow analysis,
the reversion to be received at the
Solution end of the holding period is
PV = FV/S = 1M/1.154 = 572,000 a. a separate cash flow
b. an annuity in arrears
1358. GROSS INCOME MULTIPLIERS are c. an ordinary annuity
generally considered part of d. a percentage of annual income
a. the cost approach e. an amount to be capitalized in perpetuity
b. the direct sales comparison approach 1364. To earn 12% annual cash return on a
c. the income capitalization approach cash investment, what should you pay for a
d. the insurance approach property that earns 4,000 per month and
e. none of the above has operating expenses of 1,250 per
1359. Use of a gross rent multiplier is valid month?
when the subject and comparable a. 150,000
properties have similar b. 333,333
a. potential gross incomes c. 275,000
b. OPERATING EXPENSE RATIOS d. 400,000
c. effective gross incomes e. 229,166
116
1365. In selecting an overall capitalization rate 2,000 per month over a 20-year term. Rent
for an income-producing property, the is payable at the end of each month. What
appraiser will consider all of the following yield to maturity is implied by the lease,
EXCEPT assuming that, at the end of 20 years, the
a. return on invested capital property is still worth about P200,000?
b. risk factors a. 8%
c. return of invested capital b. 14%
d. the interest rate on the existing loan, c. 10%
which was arranged last year d. 15%
e. the interest rate prevailing in the market e. 12%
1366. A 200-unit apartment complex includes 1372. When market rent is less than
80 one-bedroom units that rent for 475 and contract rent, the difference is known as
120 two-bedroom units that rent for 575 a. overage rent
monthly. The vacancy rate is 5%; b. gross rent
miscellaneous income is 5,000 annually. c. excess rent
Operating expenses amount to 400,000. d. slippage rent
The mortgage loan requires annual e. percentage rent
payments of 630,000. 1373. If a particular buyer requires as
Potential gross income is recapture of the building portion of the
a. 1,289,000 purchase price in 25 years, what is the
b. 107,000 indicated recapture rate for the building,
c. 1,284,000 assuming straight-line recapture?
d. none of the above a. 0.25%
e. 112,000 b. 20%
1367. Effective gross income is c. 2%
a. 1,224,800 d. 25%
b. P107,000 e. 4%
c. 1,220,000 1374. In a high-rise, 100-unit apartment
d. none of the above building there is a basement laundry area
e. 824,800 that brings in 100 monthly from the
1368. Net operating income is concessionaire. The laundry income is
a. 1,224,800 a. included, as miscellaneous income, in
b. 424,800 potential gross income
c. 1,220,000 b. included, as other income, in
d. none of the above effective gross income
e. 824,800 c. deducted from effective gross income
1369. Before-tax cash flow is d. added to before-tax cash flow
a. 1,030,000 e. distributed to the maintenance workers
b. 194,800
c. 824,800 SET 1 MOCK EXAM REA
d. none of the above
e. 424,800 1375. The present and future demand for a
1370. To obtain the present value of a series property and its absorption rate is
of incomes, a (n) ____ rate is applied. considered in a
a. discount a. letter in appraisal
b. equity capitalization b. market feasibility study
c. income (E) stated c. market segmentation
d. overall capitalization d. highest and best used analysis
1371. A fast-food chain could buy the building e. transmittal letter
and land necessary for a new outlet for 1376. The appraiser final estimate should be
200,000. Instead, an investor bought the based on
property for this amount and lease it for
117
 a. average of three value indications b. an estimate of value should be based on
obtained by three approaches future expectation
b. weighing of the reliability of the c. abnormally high profits cannot be
information analyzed in each of the expected to continue indefinitely
three approaches d. maximum value accrues to real estate
c. the most sophisticated guess technique when social and economic homogeneity
d. adjustment for most recent indicators in are present in a neighborhood
the local market 1382. cost indexes offered by standardized
1377. the appropriate time adjustment is services are used to
concluded to be an increase of 7% per year a. derive units of comparison
compounded. The time adjustment for a b. catalog building component
comparable sales property that should for c. estimate operating expenses
80,000.00 two years ago. d. update past cost into current cost
a. 11,529 e. estimate the local consumer price index
b. 11,200 1383. a summary appraisal report
c. 9,200 a. contains many items that are not
d. 91,592 considered in practice
e. 5,600 b. is an appraisal report prepared for a
1378. the criteria for determining the highest client
and best used include all of the following c. summarizes the item that might be
EXCEPT used in practice
a. physical possibility d. may be based on hypothetical or
b. probable use assumed data
c. financial feasibility e. should be prepared on a nontypical
d. effect on community welfare property to appraisal practice
e. legal permissibility 1384. real estate in a submarket is
1379. the broad forces affecting value do not a. a group of sales person who deal mostly
include in the same type of property
a. physical b. a group of sales that occur at the same
b. social time
c. life cycle c. a group of similar properties in the
d. economic same area
e. political d. a small portion of the market of similar
1380. the certification of value section of an properties
appraisal report states everything EXCEPT e. an area where sandwiches on French
that bread are eaten
a. the appraiser has no interest in the 1385. the fact that rents for equally desirable
property space tend to be set by the market
b. the fee is not contingent upon any reflects the principle of
aspect of the report a. balance
c. the facts are correct to the best of the b. substitution
appraiser knowledge c. externalities
d. last year the property was appraised d. consistent used
by the another person e. conformity
e. the property was personally inspected 1386. the fee for an appraisal assignment is
by the appraiser a. based on a percentage of the final value
1381. one implication of competition and estimate
excess profit is that b. agreed upon during the preliminary
a. there is a certain optimum combination study stage
of land, labor, capital and c. determined after the appraisal is
entrepreneurship completed

118
 d. set by the fee schedule of the local 1394. all of the following are true except
board of realtors a. real property is a type of service
e. set by a fee scale from real estate b. value is dependent on market condition
commission c. a good or service has no value in
1387. the last step in the appraisal report is exchange unless it possesses certain
to economic and legal characteristics
a. write the report d. the price representing value is usually
b. reconcile all data quoted in terms of money
c. analyze the data e. Real estate may be sold for all cash or
d. inspect the property financed
e. set the fee to be charge 1395. in estimating the market value of
1388. the form of which a formal appraisal is comparable sale, an appraiser must
presented is called consider all of the following EXCEPT
a. a presentation of value a. whether the transaction was made in
b. an appraisal log cash, terms equivalent to cash, or other
c. an appraisal report precisely revealed terms.
d. a value certification b. Whether the property had reasonable
e. a narrative report exposure in a competitive market
1389. a formal appraisal must include the c. Whether a fair sale was transacted, with
a. date of value estimate neither the seller nor the buyer acting
b. signature of the appraiser under duress
c. identification of property appraised d. Whether the replacement cost of the
d. certification property corresponds to its market
e. all of the above value
1390. the highest and best used of land as if e. Whether the seller was related to the
vacant forms part of the basis for buyer
a. mortgage-equity analysis 1396. in preparing the appraisal
b. property rights adjustment report, your analysis concludes
c. an operating expense estimate that one of the approaches to
d. the cost approach value is not applicable to this
e. the square footage practice particular case. You should
1391. identifying and studying submarkets of a a. omit the approach all
larger market is called together
a. market research b. base the approach on hypothetical data
b. market survey c. state that the approach is not relevant
c. market agglomeration d. state that the approach is not
d. market segmentation applicable, explain the reason for this
e. market data contention
1392. the identification and study of a pertinent e. find another approach so as to include
market is called three approaches
a. market analysis 1397. in the cost approach the site is valued as
b. neighborhood review if it were
c. property research a. vacant and available for development
d. market reflection to its highest and best use
e. market interaction b. improved and suited for its intended use
1393. which of the following is important for or development
good appraisal communication c. developed and operating
a. word choice d. attractively landscape
b. reading level e. without nearby utilities
c. grammatical correctness 1398. investment value is best describe as
d. clarity a. market price
e. all of the above b. market value
119
 c. the cost of acquiring a competitive a. not necessarily the same
substitute property with the same utility b. synonymous
d. the present worth of anticipated c. different, depending on financing terms
future benefits to a certain entity d. almost the same in an active market
e. value in exchange e. interchangeably in a report
1399. location decision involve analysis on 1406. the purpose of a ____ is to
which three level analyzed a property potential for
a. general, specific, detailed success
b. country, state, community a. feasibility study
c. residential, commercial, industrial b. marketability study
d. country, state, county c. market segmentation study
e. region, neighborhood, site d. appraisal report
1400. the length of a tract of land along a e. need study
street is called 1407. a use must be_____ to be considered as
a. depth a possible alternative for highest and best
b. width used
c. frontage a. physically and legally possible and
d. abutment financially feasible
e. lineage b. physically and legally possible
1401. the most comprehensive type of c. Already in existence and legal
appraisal report is d. Physically possible and appropriate
a. form report e. Legal and profitable
b. oral report 1408. an appraiser
c. letter report a. determines the price
d. narrative demonstration report b. defends value
e. unbiased report c. estimates price
1402. the principle of ______states that d. estimates value
buyer will not pay more for the a site e. determines value
than for another equally desirable one 1409. the objective of the appraisal should be
a. anticipation stated in the report
b. imbalance a. the market needs it
c. substitution b. it define the problems and identifies
d. balance the value sought
e. conformity c. it identifies the function of the report
1403. the principle of anticipation is d. it absolves the appraiser of liability
a. future oriented e. there are too many definitions of market
b. past oriented price
c. the as of date of appraisal 1410. the value estimate provided in an
d. anticipated loan to value ratio for the appraisal
subject property a. changes with the use to which it is put
e. similar to the principle of substitution b. changes with the function of the
1404. the principle of_______states that the appraisal
value levels are sustained when the c. remains the same regardless of use
various elements in an economic or d. depends upon the use or function of the
environmental mix are in equilibrium appraisal
a. anticipation e. always reflects market value
b. equivalence 1411. population increases______demand for
c. substitution housing
d. balance a. depress the
e. highest and best used b. are incapable of simulating the
1405. price and value are c. have no effect on the

120
 d. are likely to create a d. customary
e. are determined by the e. convenient
1412. environment hazards that an 1419. a sale between relatives is considered
appraiser must be conscious of a. an arms length transaction
include all of the following except b. a purely comparable sale
a. asbestos c. an open market sale
b. radon d. a distorted sale
c. drano e. a good deal
d. urea formaldehyde 1420. What of the following is true about
e. PVC zoning
1413. In analyzing the environment and market a. it reflects the expectation that
area, it is best to government will preserve property
a. start at the general level and work values
down to the specific b. it is based on the right of government
b. start at the specific and work up to the to regulate for health, moral, welfare
general level and safety
c. limit the analysis to the national level c. it is inappropriate for parcels withed
d. limit the analysis to the local level uses
e. generally consider the traffic flow d. it represents an effort to establish the
1414. the first step in general process is to land highest and best use
a. define the problem e. it represent the right to reuse the
b. gather data property
c. analyze data 1421. for an appraiser to use the assistance of
d. determine the approaches to value another appraiser is
e. make a final value estimate a. inconsiderate
1415. combining to or more sites in order to b. unethical
develop one site with a greater value than c. illegal
the individual sites have separately called d. ethical
a. synergy e. questionable
b. plottage 1422. it is_________to provide a value range
c. surplus land to a client who request it and understand its
d. excess land meaning and use.
e. highest and best use of land a. foolish
1416. assemblage is b. appropriate
a. always reflect in the market value c. un ethical
b. the act of bringing to or more smaller d. approximate
lots into common ownership for use e. difficult
c. inappropriate for parcels two or more 1423. any recent sale of a subject property
hectares being appraised
d. uneconomical a. should be considered confidential
e. illegal b. cannot, under any circumstances, be
1417. typically, land is appraised by the considered in estimating the current
a. square foot market value of the property
b. front foot acre c. should be discussed in appraisal
c. all of the above report
d. none of the above d. was not an arms length sale
1418. it is_________for an appraiser e. should be used as comparable sale,
to receive or pay finders or referral though adjusted for its time and terms
fees 1424. the dimensions of a
a. reasonable warehouse are customarily
b. unethical measured from
c. necessary a. a roof line
121
 b. the midpoint of exterior wall b. apply the three approaches to the data
c. the inside of finished wall collected
d. the outside of finished wall c. apply to judgment to the data collected
e. be reasonable or appropriate d. review previous work and analysis
1425. the construction of a luxury home in a e. select a final value of estimate
neighborhood almost completely 1431. the highest and best use of the site is its
developed with one and two bedroom a. existing use
apartments would b. most probable use
a. produce external obsolescence c. immediate next used
b. be called an under improvement d. synonymous with ordinary and
c. results in plottage value necessary value
d. results in neighborhood amenities e. different from most probable use
e. be reasonable or appropriate 1432. markets in residential real estate are
1426. the most detailed, complex, costly and a. equivalent to those for securities
time consuming method of cost estimation b. related to physical boundaries
is the c. local
a. quantity survey d. physically obscure
b. trade breakdown e. found by courthouse sales
c. comparative unit 1433. inflation tends to increase the value of
d. unit in place a. fixed income securities
e. comparable unit b. mortgages
1427. An improvements remaining economic c. deeds in lieu of foreclosure
life d. real estate
a. it is chronological stage e. debts
b. it is effective age 1434. Real estate markets
c. is the period over which the a. are international in scope
improvements are expected to b. meet none pf the criteria of a perfect
generate benefits market
d. is effective age minus chronological age c. are centralized in nature
e. effective age ;us chronological age d. consist of used property only
1428. the cost approach most applicable when e. are well developed in former Communist
the property being appraise countries
a. has old improvement 1435. The subject property has 85%
b. has relative new improvements that occupancy. What conclusion would you
represent the highest and best use of most likely draw if the typical occup0nacy
the land rate in the area was 95%?
c. suffers substantial functional a. Advertising is average.
obsolescence b. The rents are high.
d. is more costly than the surroundings c. The rents are low.
e. has many older features that make d. Management is good.
interesting reading in a report e. New construction will occur soon.
1429. price per front foot 1436. The fact that the value of a property
a. a physical unit of comparison tends to equal the cost of an equally
b. not as accurate as price per acre desirable substitute is an example of the
c. rarely used in residential site analysis principle of
d. an accurate guide to site marketability a. balance
e. useful when there are few physical b. substitution
differences between sites c. contribution
1430. which is the last step in reconciliation d. diminishing returns
a. identify which of the three approaches is e. supply and demand
used

122
1437. Population flow to different regions of e. property residual income
the United States will change primarily 1442. Which principle of value best affirms that
because of value is the present worth of expected
a. changing economic opportunities future benefits?
b. environmental control legislation a. supply and demand
c. rezoning legislation b. balance
d. state tax policies c. substitution
e. air conditioning in the Sunbelt d. anticipation
1438. When each alternative use requires the e. conformity
same capital investment, the use that 1443. Which principle of value best affirms
maximizes the investment’s______ on a that the maximum value of property
long-term basis is the highest and best use. generally cannot exceed the cost of its
a. diversified portfolio replacement?
b. operating expenses a. increasing and decreasing returns
c. net operating income b. supply and demand
d. potential gross income c. substitution
e. occupancy rate d. balance
1439. What would be the indicated value e. anticipation
of a property that rented for 750 per 1444. Which of the following would be
month, using a monthly gross rent classified as a tangible rather than an
multiplier of 100, if the expenses intangible amenity?
attribute to the property were 115 per a. pride of ownership
month? b. a sense of security
a. 75,670 c. a free dishwasher
b. 75,000 d. work satisfaction
c. 68,750 e. clean air
d. 61,125 1445. Which type of property is subject to ad
e. 13,750 valorem taxation?
1440. Which of the following criteria most a. property owned by a religious
completely defines “highest and best use”? organization and used for religious
a. physically possible, legally purpose
acceptable, and generating a higher b. new industrial plants that state and local
present land value than any other use governments have induced, with tax
b. legally authorized, politically viable, and exemption as an incentive, to locate
socially acceptable within their jurisdictions
c. physically possible, comparable to other c. commercial property with more that
uses in the neighborhood, and legally 50% nonprofit tenants
authorized d. state colleges and universities
d. comparable to other local uses, e. a state capitol
physically possible, and generating a 1446. Compared with other assets, real estate
higher present land value that any other is
use a. immobile
e. the tallest and most beautiful structure b. expensive
that can be placed on the land c. long-lived
1441. The total income anticipated from d. mortgagable
income property operations after e. all of the above
vacancy and collection allowances and 1447. All of the following are sources of
operating expenses are deducted is comparable sales EXCEPT
a. net operating income a. public records
b. before-tax cash flow b. brokers
c. effective gross income c. buyers and sellers
d. potential gross income
123
 d. mortgage servicers a. converts the net income of a
e. appraisers property into its equivalent capital
1448. An allowance for vacancy and collection value
loss is estimated as a percentage of b. reflects the time value of money by
a. net operating income reducing or discounting future income
b. before-tax cash flow into its present worth
c. effective gross income c. focuses on the present worth of future
d. potential gross income benefits
e. after-tax cash flow d. uses markets interest rates
1449. The annual net operating e. all of the above
income from an apartment house 1454. to earn 12% on your investment, what
is 11,000. If a capitalization rate should you pay for a property earns
of 11% is used, the indicated 6,000.00 per month and has operating
market value is expenses of 1,250.00 per month
a. 126,000 a. 475,000.00
b. 176,000 b. 150,000.00
c. 100,000 c. 229,166.00
d. 242,000 d. 333,333.00
e. 2,420 e. 400,000.00
1450. which of the following is true of a gross
lease 6,000 – 1,250 × 12 /12%
a. the tenant pays all operating expense
b. the landlord pays all operating 1455. the land development method is used
expense to estimate the value of vacant acreage
c. this lease is used only for commercial that is ready to be subdivided. This
properties method requires
d. rent rises with the cost of living a. STUDY OF CURRENT SALES OF
e. this lease must be drafted by an attorney SUBDIVIDED LOTS
1451. a forecast using discounted cash flow b. THE PROJECTION OF LAND OF
analysis would include SUBDIVIDED LOTS
a. income, vacancy and operating expense c. RTC approval
b. an economic analysis d. Both A and B
c. reversion at the end of the holding e. None of the above
period 1456. a technique in income capitalization in
d. discounting expected future cash flows which the analyst need not distinguish
to a present value interest rates from capital recovery rates,
e. all of the above but that is most useful for comparable
1452. in discounted cash flow analysis, the income
reversion to be received at the end of the a. DIRECT CAPITALIZATION
holding period is b. building residual
a. a separate cash flow c. land residual
b. an annuity in arrears d. bank of investment
c. an ordinary annuity e. internal rate of return
d. percentage of annual income 1457. cash on cash return is
e. amount to be capitalized in perpetuity a. the annual cash flow divided by the
1453. Income capitalization is the term equity investment
used to describe the process of b. an internal rate of return that
estimating the value of income property represents annual income and all
by studying expected future income. gains or losses prorated to an
This process effective annual amount
c. a percentage or decimal rate that,
when divided into a periodic income
124
 amount, offers a lump-sum capital a. 16,000
value for income b. 32,000
d. a value that does not change with c. 64,000
time d. 160,000
e. none of the above e. None of the above
1458. Which report is usually NOT prepared 1462. What is the amount of selling cost,
by a real estate appraiser? overhead, contingencies, carrying cost,
a. marketability study and developer’s profit?
b. economic study a. 921,6000
c. feasibility study b. 576,000
d. MINERAL VALUATION STUDY c. 288,000
e. highest and best use d. 633,600
1459. Questions 86-89 based on the e. None of the above
information below. 1463. Questions 90-93 are based on the
You are appraising a 40-acre tract of information below:
unimproved by a real land. The size is A 100-unit apartment complex includes 40
zoned for single-family residential use. All one-bedroom units that rent for 950 and 60
utilities are available along the street on two-bedroom units that rent for 1,150
which the land fronts. The engineers who monthly. The vacancy rate is 5%;
will plat the proposed subdivision told you miscellaneous income is 5,000 annually.
that 20% of the land area will be used for Operating expenses amount to 400,000.
streets and sidewalks. Zoning will permit The mortgage loan requires payments of
four lots per acre of net developable land 630,000 annually.
after deducting streets. Research indicates
that lots similar to those that will be Potential gross income is
available on the subject land will sell for a. 1,289,000
18,000 each and that the entire tract can be b. 112,000
developed and sold in 1 year. You find that c. 107,000
40% of the sale price of each lot must be d. 1,284,000
allocated to selling cost, overhead, e. Cannot be calculated from the
contingencies, carrying cost, and information given
developer’s profit, and that 2,000 feet of 1464. Effective gross income is
streets (including water, storm sewer, and a. 1,224,800
sanitary sewer lines) must be installed at a b. 1,220,000
cost of 80 per foot. c. 824,800
d. 107,000
What is the number of lots to be developed? e. Cannot be calculated from the
a. 40 information given
b. 128 1465. Net operating income is
c. 80 a. 1,224,800
d. 88 b. 184,800
e. 32 c. 424,800
1460. What is the gross amount that will be d. None of the above
realized from the sale of all the lots? e. Cannot be calculated from the
a. 720,000 information given
b. 2,304,000 1466. Before-tax cash flow is
c. 1,440,000 a. 1,030,000
d. 1,584,000 b. 184,800
e. 576,000 c. 194,800
1461. What is the cost of d. None of the above
installing streets, water, e. Cannot be calculated from the
and sewer lines? information given
125
1467. Questions 94-97 are based on the 1473. all of the following lease provisions are
following information: advantageous to the lessee EXCEPT
A building contains 50 one-bedroom units a. an escape clause
and 150 two-bedroom units. The one b. a renewal option
bedroom units rent for 550 monthly; two c. a purchase option
bedroom are 675. the vacancy rate is 7%; d. an escalation clause
operating expenses are estimated at 40% of e. none of the above
effective gross income. There is 2,000.00
annual income for vending machines. GENERAL/FUNDAMENTALS OF
REAL ESTATE
potential gross income is
a. 64,735 1474. Those who had passed the DTI
b. 1,547,000 licensure examinations in 2007 and prior
c. 1,545,000 years but failed to obtain their license upon
d. 717,425 effectivity of R.A .No.9646 may still register
e. None of the above upon effectivity of the RESA without
1468. effective gross income is examinations provided they have earned
a. 64,735 CEP or CPE units as follows:
b. 1,547,000 a. 120 CEP or CPE credit units
c. 1,545,000 b. 12 CEP or CPE credit units
d. 1,438,850 c. 15 CEP or CPE credit units
e. None of the above d. 18 CEP OR CPE CREDIT UNITS
1469. Net operating income is 1475. Ownership of land in the Philippines is
a. 64,375 governed by law such as, the1987
b. 268,970 Philippine Constitution. In addition, it may
c. 863,310 also be provided by
d. 719,425 a. Executive Order of the President
e. None of the above b. SPECIAL LAWS OF THE
1470. operating expense are LEGISLATURE
a. 1,545,000 c. House Bills in Congress
b. 54,075 d. Special Exemption Orders
c. 2,000 1476. The principle that states that all lands of
d. 719,425 the public domain belong tothe state is
e. 575,540 referred to as
1471. in one step of the land value residual a. Public domain doctrine
technique, the building capitalization rate is b. Regalian doctrine.
applied to the known building value to c. Patrimonial doctrine
estimate the d. State doctrine
a. highest and best use of the site 1477. As a real estate practitioner, we should
b. cost of the building but not:
c. income needed to support the land a. willingly share the lessons and
d. net operating income needed to support experiences with fellow brokers
the building b. solicit a listing currently listed exclusively
e. land value with another broker
1472. the basic formula of c. pass a listing to a third broker without
property valuation via income the knowledge and consent of the listing
capitalization is broker
a. V=IR d. put sign or notice of a property for sale
b. V=I/R without authority from the owner
c. V=R/I ? 1478. Under the law, private corporations
d. V=SP/GR and associations may hold such alienable
e. V=I/F
126
 lands of the public domain only by lease, b. Right of way passage
not to exceed a total area of c. Right of way for people
a. 1,000 has d. Right o way encroachment
b. 500 has. 1484. A lessee who rented out an office space
c. 12 has. will pay his monthly rental to the owner in
d. 3 has. the amount of P35,000 per month and a
1479. The national integrated organization of deposit ofP70,000. How much withholding
natural persons duly registered and tax must he deduct from the payment
licensed as Real Estate Service a. P 1,750 (35,000 × 5%)
Practitioners is called b. P 3,500
a. Accredited Practitioners Organization c. P 5,250
b. Integrated and Accredited Professional d. P 10,500
Practitioners 1485. Corporations or partnerships may
c. Accredited and Integrated acquire land in the Philippines provided that
Professional Organization it is
d. Accredited and Integrated National a. Not more than 1000 has.
Organization b. Not more than 40% foreign capital
1480. An idle land consisting of 2.5 hectares c. Not more than 5 hectares
valued at P 100 per square meter was d. Not more than 1 hectare for residential
being taxed by the municipal assessor and land
classified as agricultural. If the idle land tax 1486. The following is not exempted from
imposed is 4% by the ordinance, how much basic real estate tax imposed by the city :
will the owner pay for idle land tax ? a. Real property owned by the Republic of
a. P 40,000 the Philippines
b. P 100,000 b. All lands, buildings and
c. P 20,000 improvements actually, directly and
d. P 50,000 exclusively used for charitable, religious
or educational purposes;
2.5hc × 10,000 × 100 × 40% × 4% = 40,000 c. Private cemeteries or burial grounds;
d. Machineries and equipment that are
1481. The power of the state to regulate the actually, directly and exclusively used by
use of one’s property for legal purposes local water district and government
only is referred to as owned or controlled corporations
a. Escheat engaged in the supply of water and/or
b. Eminent domain generation of electric power
c. Police power 1487. David, an Australian citizen, may not
d. Power to issue permit be allowed to own the following property in
1482. In determining the value of the house the Philippines
and the tax declaration being presented a. Residential condominium unit
was issued 3 or more years, the seller shall b. Commercial Office condominium unit
submit the following to the BIR c. House and lot
a. An updated tax declaration d. House built on leased land
b. The latest tax declaration 1488. Janet wants to become a dual citizen,
c. CERTIFICATION FROM THE while in the Philippines, she must file a
ASSESSOR WHETHER THE SAME IS petition for dual citizenship with this
STILL THE LATEST OR NOT government agency
d. Certification of improvement by the a. Department of Foreign Affairs
Assessor b. Philippine Embassy
1483. It is the right given to an owner of an c. Bureau of Civil Registry
adjoining land to pass or have access thru d. BUREAU OF IMMIGRATION
another land is called 1489. The Register of Deeds required
a. RIGHT OF WAY EASEMENT an affidavit of waiver from a foreigner who is
127
 married to a Filipina to register the sale,
which is considered
a. A valid requirement of the Register of
Deeds
b. Void
c. Voidable
d. Required only if the foreigner is a
husband
1490. The best evidence of ownership of a
condominium unit is
a. Tax declaration of the condo unit
b. Condominium Certificate of title
c. Transfer certificate of title
d. Contract to sell on the unit
1491. The Family Code of the Philippines,
under EO 209, became effective on
a. August 3, 1988
b. August 3, 1996
c. August 8, 1988
d. August 1, 1988
1492. For the acquisition of a residential
condominium unit by a former natural born
citizen who has become a foreigner, it is
required the
a. Execute a sworn statement under BP
185
b. Must become a dual citizen
c. Not used in buy and sell of property
d. Not exceed 40% of the units
1493. The Board, in coordination with the
AIPO of real estate service practitioners,
shall prepare, update and maintain a roster
of real estate service practitioners which
shall contain the following information,
except
a. names of all registered real estate
service practitioners
b. FIELD OF SPECIALIZATION IN REAL
ESTATE SERVICE
c. their residence and office addressed
d. license numbers
1494. It is the conveyance of the right to enjoy
the fruits of the property owned by a person
a. Contract of lease
b. Usufruct
c. Right of way
d. Sale of property
1495. For Cebu City, the basic tax it may
charge for real estate taxes shall be
a. Not exceeding 1% of the assessed value
b. Not exceeding 1% of the fair market
value
c. Not exceeding 2% of the fair market
value
d. Not exceeding 2% of the assessed
value
1496. The following is not considered as good
evidence or proof of ownership of one’s
land
a. tax declaration,
b. realty tax receipts,
c. deed of sale
d. LOT PLAN
1497. As best evidence of ownership in fee
simple is the transfer certificate of title as it
is imprescriptible and
a. Indefeasible
b. With original copy in the Register of
Deeds
c. Issued by the Register of Deeds
d. Signed by the Register of Deeds
1498. Under BP 185, urban land shall be land
located in
a. Urban areas
b. Commercial areas
c. Residential subdivisions
d. Central business district areas
1499. No deed of sale in favor of a transferee
under Batas PambansaBlg. 185 shall be
registered by the Register of Deeds unless
accompanied by a sworn statement
showing the following, except:
a. names and addresses of his parents,
of his spouse and children, if any;
b. area, location and mode of acquisition of
his landholdings in the Philippines, if
any;
c. his intention to reside permanently in the
Philippines;
d. HOW THE TRANSFEREE BECAME A
FOREIGNER
1500. The following person cannot be
considered to be a Filipino citizen under the
present law
a. Born of Filipino Father
b. A dual citizen under RA 9225
c. Declared a Filipino citizen by the
President
d. A naturalized Filipino
1501. The PRBRES shall have the power
to prescribe guidelines and criteria for this
requirement for real estate service
practitioners in consultation with the
accredited and integrated professional
128
 organization of real estate service
practitioners
a. CONTINUING PROFESSIONAL
EDUCATION
b. Continuing Education for Professionals
c. Continuing Education Program
d. Continuing Practitioners Education
1502. Referred to also as age of majority, at
what age may a person buy and sell
property on his or her own
a. 18 YEARS OLD
b. 18 years old with the consent of the
parents
c. 18 years old with legal guardian
d. 21 years old
1503. For a couple planning to get married, the
property relations where each will own his
or her own properties now and in the future,
is referred to as
a. Relative Community of Property
b. Separation of Conjugal Property
c. Conjugal Partnership of Gains
d. Absolute Community of Property
1504. In case of non-redemption of the
property foreclosed extrajudicially the bank,
when is the deadline to pay the capital
gains tax by the highest bidder
a. Within 30 days from auction sale
b. Within 30 days from registration of
certificate of sale
c. Within 30 days from expiration of period
of redemption
d. Within 30 days from notarization of
the certificate of sale
1505. For an applicant for the licensure
examination for real estate consultants,
he/she must show proof that he/she has
experience as alicensed real estate broker
for at least
a. Five (5) years
b. Ten (10) years
c. Fifteen (15) years
d. Three (3) years
1506. Under the Code of Ethics, the following
is considered ethical,
a. Negotiate a property listed directly with
the owner
b. Cooperate with other brokers on
property listed even if not licensed
c. Willingly share with other brokers the
lessons from his experience and
study
d. Inform and criticize among fellow
brokers another broker who is not
handling the sale properly
1507. The Declaration of Principles of the
Code of Ethics for Realty Service
Practitioners clearly states the Golden Rule
which says
a. “Treat others as you want them to be
treated”
b. “Do not do unto others what you want
others do to you”
c. “Do unto others what you do not want
others do unto you “
d. “TREAT OTHERS AS YOU LIKE THEM
TO TREAT YOU”
1508. The following shall be considered under
RA. No. 9646 as engaging in real estate
service practice
a. A person, natural or juridical, who shall
directly perform by himself/herself the
acts mentioned in Section 3hereof with
reference to his/her or its own property,
except real estate developers
b. Any receiver, trustee or assignee in
bankruptcy or insolvency proceedings
c. Any person acting pursuant to the order
of any court of justice
d. ANY PERSON WHO IS A DULY
CONSTITUTED ATTORNEY-IN-FACT
FOR PURPOSES OF SALE,
MORTGAGE, LEASE OR EXCHANGE,
OR OTHER SIMILAR CONTRACTS OF
REAL ESTATE, WHO REQUIRE
COMPENSATION OR
REMUNERATION
1509. A Professional Identification Card shall
likewise be issued to every registrant for
real estate service practice. upon payment
of the required fees but does not indicate
the following
a. registration number
b. DATE OF RELEASE BY PRC
c. expiration date
d. duly signed by the chairperson of the
Board
1510. A listing currently listed with a real estate
broker and obtained and acquired by
another broker must not be solicited or
obtained by said broker unless :
a. The authority of the listing broker is non-
exclusive
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 b. The authority of the listing broker has
expired and the owner did not renew the
authority
c. The authority of the listing broker has
been revoked and the owner gives only
non-exclusive listing
d. THE OWNER, WITHOUT
SOLICITATION FROM THE NEW
BROKER, OFFERS TO LIST THE
SAME WITH THE NEW BROKER
AFTER THE AUTHORITY OF THE
LISTING BROKER HAS EXPIRED OR
HAS BEEN REVOKED
1511. The bundle of rights excludes the
following as a right of ownership
a. Right to use
b. RIGHT TO PUT UP STRUCTURE
BEYOND RESTRICTIONS
c. Right to enjoy the fruits on the land
d. Right to possess
1512. A sign of a property for sale or lease
should not be placed on a vacant parcel of
land by more than one broker and only if
a. The broker has an exclusive listing
b. The sign should be of the same size as
the other signs
c. The broker is authorized by the owner
d. The address of the broker is indicated
on the sign
1513. The following acts of a broker are
considered unethical. Which act is
considered ethical?for other persons such
as client’s money and similar items.
a. Encouraging the parties to a sale to
undervalue the sale
b. Keeping a special bank account,
separate and distinct from his own
funds, for all monies received in trust
c. Disclosing his client’s confidential
personal information to a fellowbroker in
order to close the sale.
d. Delaying submission of a formal offer
that he had received from a prospective
buyer in the hope of securing a higher
offer.
1514. There is a Professional Regulatory
Board of Real Estate Service, to be chosen
from three (3) recommendees chosen by
the Commission from a list of nominees
submitted by the accredited and integrated
professional organization of real
estate service practitioners consisting of
a. Three (3) nominees per position
b. FIVE (5) NOMINEES PER POSITION
c. Ten (10) nominees per position
d. Two (2) nominees per position
1515. A broker has just received from a fellow
broker’s client a written offer to purchase a
property of his seller, together with a check
for earnest money payment. Which of the
following steps is the most proper and
ethical for him to take?
a. Call another fellow broker whose
client is also interested in the property to
improve the offer.
b. Call the seller immediately to
inform him about the offer and submit
both the written offer and the earnest
money payment.
c. Show the offer to another prospective
buyer in the hope of getting a better
price for the seller.
d. Reject the first offer outright based on
his opinion that the offered price is too
low.
1516. Under DTI then, the Code of Ethics
covering practitioners is referred to as
a. NATIONAL CODE OF ETHICS
FOR THE REALTY SERVICE
PRACTICE
b. National Code of Ethics for Practitioner
c. Code of Ethics for the Service Practice
d. Code of Ethics and Responsibilities
1517. It is not a ground for the Board not to
register and issue a certificate of
registration to any successful examinee
after passing the examinations
a. convicted by a court of any criminal
offense involving moral turpitude
b. FOUND GUILTY BY HIS OR HER
ASSOCIATION OF VIOLATION OF
THE CODE OF ETHICS.
c. found guilty of immoral or dishonorable
conduct after investigation by the Board
d. has been found to be psychologically
unfit.
1518. When a licensed broker accepts a
listing from a fellow practitioner, the
following should not be followed
a. The agency of the broker who offers the
listing should be respected until it has
expired and the listing comes to his
attention from a different source.
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 b. THE AGENCY OF THE LISTING
BROKER SHOULD BE RESPECTED
PERPETUALLY IN ALL DEALINGS
WITH HIS CLIENT/PRINCIPAL.
c. The agency of the broker who offers the
listing should be respected until the
owner, without solicitations, offers to list
with him
d. The listing should not be passed to a
third broker without the knowledge and
consent of the listing broker.
1519. For the results of the licensure
examination, it shall be released by the
Board from the last day of the examination
within
a. Five (5) days
b. Ten (10) days
c. Fifteen (15) days
d. One (1) month
1520. Which one of the following acts of a
broker can be considered within the bounds
of the code of ethics?
a. Encouraging the parties to a sale to
indicate a consideration which is lower
than the actual price.
b. SERVING AS A WITNESS IN COURT
PROCEEDINGS INVOLVING
PROPERTY OWNED BY HIS CLIENT.
c. Criticizing the acts of another broker
who does not know how to handle the
transaction.
d. Delaying submission of a formal offer
that he had received from a prospective
buyer.
1521. In case the heirs will just file and pay
now the estate tax return of their deceased
father who died 10 years ago or sometime
2003, the value of the property of the estate
shall be based on
a. Value of the BIR or zonal value upon
filing
b. Value at time of death of the Assessor
c. Value at the time of filing in 2014 of the
BIR or assessor whichever’s higher, at
the time of filing
d. Value of based on the BIR or
Assessors value whichever is higher,
at the time of death
1522. In an ad in a newspaper which one of
the following newspaper line ads is blatantly
unethical?
a. “HOUSE ON A VERY QUIET
NEIGHBORHOOD”
b. “WITH 24 HOURS SECURITY
GUARDS!”
c. “THE VALUE OF THIS PROPERTY
WILL INCREASE IN ONE YEAR!”
d. “COOL WEATHER!”
1523. The Board shall also prescribe the
essential requirements as to the curricula
and facilities of schools & colleges seeking
permission to open academic courses or
already offering such courses in real estate
service, in cooperation with the
a. Commission on Higher Education
b. Department of Education and Culture
c. National Association of Real Estate
Service Practitioners
d. Philippine Association of Schools and
Colleges
1524. It is not a subject in the examinations for
real estate brokers
a. Condominium concept and other types
of real estate holdings;
b. Real estate finance and economics;
c. Basic principles of ecology;
d. LAND MANAGEMENT AND REAL
A PROPERTY LAWS
1525. The real estate broker takes
the following steps as a licensed real estate
broker. Which action can be considered
unethical?
a. He accepted an exclusive listing for
an abandoned house and lot even with
his knowledge that somebody
died violently in the property.
b. He proceeds to entertain prospective
buyers all the while disclosing to them
the crime committed inside the property.
c. He also advertised the listing giving
the exact address for an open house on
one weekend.
d. HE INVITES HIS FRIENDS TO
ATTEND THE OPEN HOUSE HOPING
THAT REAL BUYERS WILL FEEL
THAT THERE ARE MANY OTHERS
INTERESTED IN THE PROPERTY.
1526. The following applicant is not required
to undergo an examination to be given by
the Board as provided for in R.A No. 9646
a. Real Estate Salesperson
b. Real estate broker
c. Real estate assessor
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 d. Real estate appraiser
1527. Three of the following are tricks
employed by unethical real estate brokers
when bringing clients to view their listings.
Which one is ethical?
a. Using a roundabout route
avoid eyesores near the neighborhood.
b. EMPLOYING A CLEANING COMPANY
TO FRESHEN THE SMELL OF THE
HOUSE INTERIORS.
c. Forecasting changes from residential to
commercial zoning to hintat high rates of
value appreciation
d. Showing another inferior property to
position his listing as the better
alternative
1528. After a sale is consummated, the broker
should not do the following:
a. accept commission from both
the seller and buyer without the
knowledge of either of the parties.
b. assist the buyer to acquire possession
and ownership of the real property
bought as agreed
c. see to it that both the buyer and seller
concluded a fair contract advantageous
to both
d. in case called upon to act as a witness,
should give testimonies in the most
unbiased, honest, truthful
and professional manner.
1529. What will be the donor’s tax rate to be
paid by a relative if he donates a parcel of
land to his fourth cousin in the net amount
of P12,000,000
a. 20%
b. 30%
c. 15%
d. 10%
1530. There are times when a broker has to
share his listings with other brokers. In case
of sale, the listing broker should not do
the following:
a. share the commission as agreed upon
b. NEGOTIATE DIRECTLY WITH THE
CLIENT WITHOUT THE CONSENT OF
THE OTHER BROKER
c. not seek unfair advantage over his
fellow broker
d. not criticize publicly the other broker
1531. When advertising a property listing, the
broker should not:
a. ADVERTISE WITHOUT THE
CONSENT OF THE OWNER
b. state the real estate broker’s license
number in the ads
c. state the true picture of the property
to d. advertise within the period of authority
1532. To the ethical broker, the principle of full
disclosure dictates that vital information that
can affect the property or the transaction
should be disclosed and explained to his
client. Which one of the following is contrary
to an ethical disclosure?
a. Changes or planned changes in
zoning affecting the property
b. YOUR OPINION OF FUTURE LAND
VALUES IN THE VICINITY OF THE
PROPERTY
c. Details of the contract
d. Sale of similar properties in the vicinity
1533. The ethical broker always strives to
protect his clients’ interests. Which of the
following is not ethical and is not in the best
interest of your client/seller?
a. Maintain utmost confidentiality on
matters not directly related to the
property
b. Strive to be familiar with laws and
ordinances on real estate
c. DISCUSS THE NEGOTIATING
POSITION OF YOUR CLIENT WITH
THE BUYER’S BROKER TO HASTEN
THE SALE
d. Tell your client/seller that his price is too
high and give opinion on the fair market
value of the property
1534. The following common property relations
may be agreed upon in the marriage
settlement, except
a. Relative Community of Property
b. Separation of Conjugal Property
c. Conjugal Partnership of Gains
d. Absolute Community of Property
1535. The National Code of Ethics and
Responsibilities under the RESA does not
cover the following real estate
practitioner
a. Real Estate Developers
b. Real Estate Assessors
c. Real Estate Salespersons
d. Real Estate Appraisers
1536. In case of violation of the Code of Ethics
of a broker who is a member of a real estate
132
 service organization, the sanction that
may not be imposed
a. Suspension from association
b. Expulsion from association
c. REMOVAL OF LICENSE BY THE
ASSOCIATION
d. Fine imposed by the association
1537. Dan and Jean executed a marriage
settlement specifying that the regime of
separation of property shall govern their
property relations during marriage. They are
married in proper ceremonies on December
1, 1988. Under the Family Code, which of
the following systems shall govern their
property relations during their marriage?
a. Absolute community of property
b. Separation of property
c. Conjugal partnership of gains
d. Exclusive property
1538. In his advertisements, brochures or
announcements regarding a property for
sale, he should present the following,
except
a. a true picture of the property, its
improvements, or rights and interests
therein
b. material facts concerning the property
c. whatever liens or encumbrances it may
have, if any, and
d. the minimum price the owner would
be willing to accept
1539. As a real estate appraiser, the appraiser
may not undertake to make an appraisal or
render an opinion in the following case
a. If within his field of his experience and
competence
b. if he will also be the broker who will
sell the property being appraised
c. he obtains the assistance of another
practitioner familiar with such type of
property or
d. the facts are fully disclosed by the client.
1540. The State recognizes the vital role of
real estate service practitioners in the
social, political, economic development and
progress of the country in the following,
but not
a. promoting the real estate market
b. ENHANCED INCOME FROM INCOME
TAXES OF PRACTITIONERS
c. stimulating economic activity
d. enhancing government income from real
property-based transactions
1541. The policies, resolutions and rules
and regulations issued or promulgated by
the Board shall be subject to the review and
approval the
a. Professional Regulatory Commission
b. Professional Regulatory Board of
Real Estate Service
c. PROFESSIONAL REGULATION
COMMISSION
d. Office of the President
1542. What will the total real estate taxes to be
paid by a lot owner for the year if his land
consisting of 450 sq.m. And with a fair
market value of the assessor at P6,000 per
square meter is classified as commercial
the tax rate is the maximum imposable by
the city
a. P 54,000
b. P 27,000
c. P 10,800
d. P 40,500
450 × 6,000 × 50% = 1.35M
RPT = 1.35M × 2% = 27,000
SEF = 1.35M × 1% = 13,500
TOTAL = 27,000 + 13,500 = 40,500
1543. The Chairperson and the Members
of the Board shall, at the time of their
appointment, must possess the following
qualification of having been an active
licensed practitioner of real estate service,
at the time of his appointment, for at least
a. Five (5) years
b. Ten (10) years
c. Twelve (12) years
d. Fifteen (15) years
1544. The chairperson or any member of the
Board may be suspended or removed by
the President of the Philippines, upon the
recommendation of the Commission and
after due notice and hearing in a proper
administrative investigation to be conducted
by the Commission but not on the
following ground:
a. Neglect of duty,
b. Abuse of power,
c. COMPLAINT FOR MURDER
d. Unprofessional, unethical conduct
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1545. The certificate of registration to
be issued to the real estate service
practitioner shall be valid until
a. REMAINS IN FULL FORCE AND
EFFECT UNTIL REVOKED OR
SUSPENDED IN ACCORDANCE WITH
R.A . NO. 9646.
b. Remains in full force and effect until
every 3 years
c. Expires every December 31 of each
year
d. Remains in full force and effect until
revoked by HLUR
1546. The Board may, after giving proper
notice and hearing to the party concerned,
revoke the certificate of registration and the
professional identification card of a real
estate service practitioner, but not
on thefollowing ground
a. PROCUREMENT OF A DRIVER’S
LICENSE BY FRAUD OR DECEIT;
b. Allowing an unqualified person to
practice the profession by using one’s
certificate of registration
c. Unprofessional or unethical conduct
d. Malpractice or violation of any of the
provisions of RA. No. 9646
1547. As a real estate appraiser, he should not
undertake the following, except
a. render an opinion without careful
and thorough analysis
b. render an appraisal report in letter
form
c. render the appraisal with a gains tax and documentary stamps tax will
predetermined price
d. render an interpretation without
considering all factors affecting the value
of the property
1548. No foreign real estate service
practitioner shall be admitted to the
licensure examination, be given a certificate
of registration or a professional identification
card, be issued a Special/Temporary
Permit, or be entitled to any of the privileges
under R.A No. 9646 and the IRR unless
a. He becomes a dual citizen
b. He is a former natural born Filipino
c. There is foreign reciprocity with his
country
d. There is a foreign treaty with his country
1549. All real estate brokers and private real
estate appraisers shall be required to post
an amount to be determined by the Board,
which in nocase shall be less than Twenty
thousand pesos (P20,000.00),renewable
every
a. One (1) year
b. Two (2) years
c. Three (3) years
d. Until revoked.
1550. A capital asset is property held by the
taxpayer, whether or not connected with his
trade/business, such as
a. Stock in trade of the taxpayer
b. Other property of a kind which would
properly be included in the inventory of
the taxpayer if on hand at the close of
the taxable year
c. Property held primarily for sale to
customers in the ordinary course of his
trade or business
d. PROPERTY USED AS RESIDENCE BY
THE TAXPAYER
1551. The owner of a house and lot sold the
property owned by him and rented out to
foreigners in the business of leasing in the
amount of P4,500,000. The rate of tax on
the sale shall be
a. 1.5%
b. 3.0%
c. 5.0%
d. 6.0
1552. A real estate broker sold a parcel of land
in the amount of P5,800,000, inclusive of
the broker’s commission of 5%. If the capital
be for the buyer’s account, how much will
be the net amount received by the owner
a. P 5,162,000
b. B. P 5,510,000 (5.8M × 95%)
c. P 5,075,00
d. P 5,423,000
1553. Under the Code of Ethics, the Realty
Service Practice is not considered the
following
a. a profession
b. BUSINESS
c. calling
d. occupation,
1554. A BIR large taxpayer with its head office
located in Manila sold its parcel of land located
in Batangas City to a buyer from Lipa City
but who was doing business in Lucen.
Where should the tax on the sale be paid ?
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 a. Manila 1559. The foreclosed asset of a bank was sold
b. Batangas City in the amount of P1,900,00 to the buyer.
c. Lipa City What will be the tax rate on the sale of the
d. Lucena said asset
1555. How much should the documentary a. 1.5%
stamp tax be paid on the sale of a parcel of b. 3.0%
land whose selling price is P 4,500,000 but c. 6.0%
the zonal value was P5,000,000 and the fair d. 5.0%
market value in the tax declaration was P 1560. The real estate broker who intends to
3,200,000 practice in the City of Makati must also pay
a. P 75,000 (5M × 1.5%) the professional tax to
b. P 67,500 a. PRC
c. P 60,000 b. PRBRES
d. P 48,000 c. Bureau of Internal Revenue
1556. The following is not a power of the d. City of Makati
Professional Regulatory Board 1561. A real estate broker will be earning a
a. Conduct licensure examinations for the total professional fee in the amount of
practice of the real estate service P2,500,000, inclusive of VAT. How much
profession will be the net amount to be received by the
b. Prescribe the appropriate, syllabi of the broker after deducting the withholding tax if
subjects for examination with their tables the broker had reported his income would
of specifications; go beyond P720,000 for the year
c. Issue, suspend, revoke or reinstate, after due a. P 2,250,000
notice and hearing, certificates of b. P 2,008,929
registration or professional identification c. P 1,897,321
cards for the practice of real estate d. P 2,125,000
service; Solution
d. REMOVE OR EXPEL A REAL ESTATE 2.5M × 12/112 = 267,857.14
SERVICE PRACTITIONER FROM HIS 2.5M – 267,857.14 = 2,232,142.857 × 15%
ASSOCIATION = 334,821.4286
1557. An owner who leases out his house 2,232,141.857 - 334,821.4286 = 1,897,321
regularly in his business of leasing earns a
monthly rental of P50,000 one residential 1562. The Real Estate Service Act of the
house and another P 150,000 per month on Philippines governs thefollowing
his rentals from his office building. How practitioners, except
much will be his total output VAT for the a. Real Estate consultant
year ? b. Real estate assistant assessor
a. P 216,000 c. Real estate salesperson
b. P 288,000 (50K + 150K )(12)(12%) d. Real estate dealer
c. P 72,000 1563. An owner sold his house and lot
d. P 240,000 consisting of 300 sq.m. forP5,200,000, but
1558. The Board shall adopt and promulgate based on the BIR Zonal Values, the lot
the Code of Ethics and Responsibilities zonal value was P 8,000 per square meter
for real estate service practitioners which and verification with the assessor showed
shall be referred to as that the fair market value of the lot was P
a. National Code of Ethics for the Realty 1,800,000 and the house at P 2,200,000.
Practice What will be the basis for the payment of
b. National Code of Ethics for Practitioners capital gains tax ?
c. National Code of Ethics for the a. P 5,200,000
Service Practice b. P 4,600,000
d. National Code of Ethics and c. P 4,000,000
Responsibilities d. P 2,400,000
135
1564. The maximum interest penalty that may
be imposed for unpaid real estate taxes in
2004 shall be
a. 12 months
b. 10 years
c. 36 MONTHS
d. Until paid
1565. A province or city, or a municipality
within the Metropolitan Manila Area,
may levy and annual tax on idle lands at the
rate not exceeding five percent (5%) of the
assessed value on the following
a. RESIDENTIAL VACANT LOT OF 1,200
SQ.M.
b. One hectare of land planted with 60
mahogany trees
c. Lot being disputed among two owners
d. 2 hectares of agricultural land ¾
of which are cultivated
1566. As exceptions to the general rule, alien
acquisition of real estate in the Philippines
is not allowed in the following case :
a. Acquisition before the 1935 Constitution;
b. Acquisition by hereditary succession ;
c. Purchase by aliens of not more than
40% of the units in condominium project;
d. PURCHASE BY A FORMER FILIPINO
CITIZEN
1567. The assessor put a fair market value of
P5,500 per square meter on a 1,000 sq.m.
land located in a outside a residential
subdivision and used in the business
of parking space. How much is the
assessed value of the land if the
assessment level of residential land is 20%
and commercial land is 50%
a. P 5,500,000
b. P 1,100,000
c. P 2,750,000 (5.5M × 1,000 × 50%)
d. P 1,650,000
1568. How much will be the quarterly
payments for special fund tax will have to be
made by the owner if he owns a house and lot
valued by the City Assessor at P2,000,000
where the basic tax rate is 2%
a. P 8,000
b. P 2,000
c. P 4,000
d. P 1,000
Solution
2M × 20% = 400K × 2% / 4 = 2,000
1569. No real estate salesperson, either
directly or indirectly, can negotiate, mediate
or transact any real estate transaction for
and in behalf of a real estate broker without
first already.
a. Taking the examinations as a real estate
salesperson
b. Securing an authorized accreditation
as real estate salesperson for the real
estate broker
c. Posting the required bond of P 1,000
with HLURB
d. Obtaining a professional identification
card
1570. During the fall of real estate prices, the
owner sold a parcel of land at P3,600,000
but the zonal value then was P 4,000,000
while the fair market value in the tax
declaration at the time of sale was
P2,300,000. If the transfer tax is ½ of 1%, how
much transfer tax shall be paid by the buyer
a. P 20,000
b. P 18,000
c. P 11,500
d. P 40,000
4M × .005 = 20,000
1571. In case the appeal to the Local Board of
Assessment Appeals is not in your favor,
where may you bring it up on appeal
a. Regional trial court
b. Central Board of Assessors Appeal
c. CENTRAL BOARD OF ASSESSMENT
APPEALS
d. Department of Interior and Local
Government
1572. There are four professional sectors under the
PRC, to which does real estate service belong
to
a. Medical and Health
b. BUSINESS, EDUCATION AND
MANAGEMENT
c. Engineering
d. Technology
1573. What is the monthly penalty interest on
the basic real estate taxes in case one fails
to pay the tax due last year on a lot of 500
sqms classified as commercial and valued
by the assessor at P 2,500 per square
meter with a basic tax rate of 2%
a. P 250.00 per month
136
b. P 12,500.00 per month
c. P 3,000,00 per year
d. P 240.00 per month

Solution
MV = 500 sq.m × 2500 = 1.25M
AV = 1.25M × 50% = 625K
RPT = 625K × 2% = 12,500
Penalty = 12,500 × 2% = 250

137
 MOCK EXAM SET-A-1
 Appraiser’s /brokers Exam
Mock Exam Set B-2
 Appraiser’s /Broker’s Exam
Mock Exam Set C-3
 Appraiser’s /Broker Exam Reviewer
Mock Exam Set D-4
 Multiple choice
 MULTIPLE CHOICE
 APPRAISER’S/BROKER’S
REVIEWER
EXAM SET E -3 (PAST EXAMS)
 APPRAISER/BROKERS’
REVIEWER
MOCK EXAM SET F
 Appraiser’s/Broker’s Exam: Reviewer
(Financing)
Mock Exam Set G-3
 Appraiser’s/Broker Exam Reviewer
Mock Exam Set H
Censing Rules and Regulations
 REAL ESTATE LAWS
 URBAN AND RURAL LAND USE
OWNERSHIP CARP
 APPRAISER’S /BROKER’SEXAM
REVIEWER
MOCK EXAM SET I
 APPRAISER’S/BROKER
REVIEWER
MOCK EXAM SET J (ECONOMICS)
 MOCK EXAM ON PATENTS/AGRARIAN
REFORM
 BUSLAW 1. OBLIGATIONS
CONTRACTS WITH REAL PROPERTY
LAWS
MULTIPLE CHOICE. WRITE THE LETTER
OF THE CORRECT ANSWER.
 ELECT.2 Real Estate Brokerage
MULTIPLE CHOICE. Choose the letter of
your correct answer.
 MOCK EXAM. SET O
 Mock Exam Set P
 ANSWER KEY MOCK EXAM SET Q
 Answer key MOCK EXAM SET Q
 Part I: FUNDAMENTALS OF REAL
ESTATE SERVICES ME Set S- 1.1 100
item
 MOCK EXAM SET S -1.2
 Part II: special/Technical Knowledge
Mock Exam S-1.3 100 items
 MOCK EXAM SET -1.4
 MOCK EXAM SET -1.5
 THEORIES AND PRINCIPLES IN
APPRAISAL
 STANDARDS AND ETHICS
 HUMAN AND PHYSICAL GEOGRAPHY
 REAL ESTATE FINANCING
 LAND MANAGEMENT SYSTEM AND
REAL PROPERTY LAWS
MOCK EXAM SET-A-1
EXAM
1. Income property investments
a. Low risk=low cap rate=high value
EXAM b. Low risk=low cap rate=low value
c. Low risk=low cap rate=low value
d. Low risk=low cap rate=high value
2. All other factors being equal, as the location
of an income property becomes less
desirable the cap rate used will be
a. Lower
b. Higher
c. Less reliable
d. Unaffected
3. Recapture generally applies to
a. WASTING ASSETS, SUCH AS
BUILDINGS
b. Non-wasting assets, such as land
c. Both a and b
EXAM: d. Neither a nor b
4. In the land residual technique, the
appraiser starts with an assumption of.
a. Replacement cost
b. Building value
AND c. Net capitalization
d. Land value
5. In the building residual technique, the
appraiser starts with an assumption of
a. Replacement cost
b. Building value
c. Net capitalization
d. Land value
6. The cash on cash rate is the same as the
a. Yield capitalization rate
b. EQUITY DIVIDED RATE
c. Overall capitalization rate
d. Break-even point
7. Name the two component rates that are
inherent in every capitalization rate
a. Investors rate
b. Leased rate
c. Interest and recapture rates
d. Interest and depreciation rates
138
8. Under which method are the recapture d. Escalator clause
installments lowest in the earlier year? 17. The average of all variates is the
a. Annuity a. Mean
b. Straight-line b. Mode
c. Gross income multiplier method c. Median
d. Band of investment method d. Range
9. Under which methods are the installment 18. The center of all variates is the
highest? a. Mean
a. Annuity b. Mode
b. Straight-line c. Median /Mid range
c. Gross income multiplier method d. Range
d. Band of investment method 19. The different between the highest and
10. Which recapture method suggests the lowest radiates is the
greatest reduction in risk? a. Mean
a. Annuity-line b. Mode
b. Straight-line c. Median
c. Gross investment method d. Range
d. Band of investment method 20. The mean of five house sales prices of
11. Schedule rent (or contract rent) that is P100,000, P75,000,P175,000, P200,000,
higher than market rent creates and P150,000 is
a. Overage rent a. P140,000 (P700K/5)
b. Gross rent b. P150,000
c. Excess rent c. P700,000
d. Escalator rent d. P175,000
12. The amount paid over minimum base rent 21. The median of the house sales price in
in a percentage is question 20 is
a. Overage rent a. P140,000
b. Gross rent b. P150,000
c. Excess rent c. P700,000
d. Escalator rent d. P175,000
13. The lease under which the tenant pays a 22. The aggregate of the house sales prices
fixed rental and the landlord pays all in question 20 is
expenses of ownership is the a. P140,000
a. Gross rate lease b. P150,000
b. Triple net lease c. P700,000
c. Net lease d. P175,000
d. Percentage lease 23. What is the value in 5 years of an
14. An index will be referred to in a (n) investment of P7,500 at 10% compounded
a. Gross lease daily.
b. Triple net lease a. P20,387
c. Escalator clause b. P12,365
d. Expenses-stop clause c. P12,340
15. The interest of a sublessee is a d. P12,290
a. Leasehold 24. To determine the value in 8 years of an
b. Lease fee investment of P10,000 at 10% compounded
c. Subleasehold annually the applicable factors is
d. Sandwich lease a. 2.143589 (1.108)
16. Increase in maintenance costs are passed b. 2.357948
on to tenants under a (n) c. 1.948717
a. Tax-stop clause d. 2.182875
b. Expense-stop clause
c. Gross lease
139
25. Calculate the monthly payment required to d. Per capita income
amortize a loan of P270,000 at 9 ½ percent 32. In determine the quality of Life (QOL), it is
interest for e term of 40 years. based on indicators of socioeconomic
a. P221.40 environment and ______.
b. P2,187.17 a. PHYSICAL ENVIRONMENT
c. P2,403 b. Planning
d. P2,214 c. Population
Formula d. Migration
PMT = PV × Si/S – 1 33. Urbanized is a process of becoming from a
26. The factor used to find the monthly payment state of less concentration to state of___.
required to amortize a loan of P147,000 at a. Threshold
11 percent interest over 30 years is b. More concentration
a. .0092 c. Calamity
b. .0096 d. Divisiveness
c. .0100 34. The two factors considered in relation to
d. .0097 migration are___.
Formula a. Push and pull
Amortizations Factor = Si/S – 1 b. Push and push
27. Geography is the scientific study of the c. Come and go
location of people and activities across the d. Pull and pull
earth’s surface and the reason for 35. Geography has relations to other disciplines
their______. and such as biological, physical social,
a. Existence mathematical and ____.
b. DISTRIBUTION a. Medical
c. Planning b. CULTURAL
d. Space c. Arts humanities
28. The system used to transfer locations on d. Botanical
the earth’s surface to locations on the map 36. _______ concerns with the relationship
is ____. between humans and the physical
a. Platting environment.
b. Mapping a. Physical density
c. Projection b. Physical geography
d. Survey c. HUMAN GEOGRAPHY
29. The Greek scholar who invented the word d. Human density
Geography is ___. 37. A property has 25 apartment units, 15 units
a. Hipparchus two bedroom unit renting for P5,000.00 per
b. ERATOSTHENES month each and 10 one bedrooms unit
c. Ptolemy renting for 2,000.00 per month east. There
d. Aristotle are 14 two bedroom units occupied and 8
30. The scientific study of population one bedroom units occupied.
characteristics is ____. The potential gross income yearly is.
a. Migration a. P1,000,000.00
b. Ecumene b. P1,120,000.00
c. Density c. P1,140,000.00
d. Demography d. P1,150,000.00
31. In economic development, economic factor
indicators are availability of consumer 15 × 5K × 12 = 900K
goods, worker productivity, access to raw 10 × 2K × 12 = 240K
materials, economic structure and___. PGI = 1.14M
a. Density
b. GNP 38. If house in your area have increase in value
c. Population 8% during the past year and the average
140
 price of house sold last year was
P95,000.00. what is the average price of
houses sold today
a. P101,000.00
b. P101,500.00
a. P102,600.00 (95K × 1.08)
c. P103,000.00
39. An appraisal is last to be made of a three-
bedroom house. One comparable with two
bedrooms sold for P50,000.00. the 44.
appraiser makes an adjustment of
P1,000.00 to the comparable to account for
the difference in the number of bedrooms.
The adjustment sales price of the
comparable is:
a. P49,000.00
b. P51,000.00
c. P52,000.00
d. P53,000.00
40. Which of the following estimated would
result n a capitalization rate of 4 percent
a. Potential gross income P200,000.00;
value P5,000,000.00 45.
b. Effective gross income P200,000.00;
value P5,000,000.00
c. Net operating income P200,000.00;
value P5,000,000.00
d. None of the above
41. In regard to zoning, which of the following
statement is CORRECT?
a. Zoning ordinances are always more 46.
restrictive that 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 refers
to the same thing
42. A comparable site sold a month ago @ 47.
P25,000.00 per square meter. Its location is
considered 15% superior and its and
topography is 10% inferior to the subject
site. The time adjustment is 12% per year.
Determine the adjustment sale price of the
comparable site using straight plus minus
adjustment
a. P18,250.00 per sqm 48.
b. P24,000.00 per sqm
c. P25,750.00 per sqm
d. P26,250.00 per sqm
43. Building Residential, 4 T&B and 4 car
garage residential building was sold for
P20,000,000.00 Using. The rules of thumb
of building to land ratio of 3:2 what is the
value of the building?
a. P10,000,000.00
b. P11,000,000.00
c. P12,000,000.00
d. P8,000,000,00
An appraiser was asked t compute for the
fair market rent per (square meter) of a
P500.00 per square meter vacant
commercial lot using the following
assumptions
Fair market value of lot per sq.m –
P12,00.00
Interest rate -10% p.a
They yearly market rent is:
a. P500,000.00
b. P600,000.00
c. P700,000.00
d. P800,000.00
If a commercial structure is a rectangle with
sides of 65 meters and 135 and the current
local cost to built a similar structure is
4,500/sqm using the square meter method
a. P18,000,000.00
b. P180,000,000.00
c. P 39,487,500.00 (65 × 135 × 4600)
d. P36,450,000.00
A house and lot are priced at
P8,800,000.00. the lot alone is valued
P1650,000.00. what percentage of the total
asking price is attributable to the value of
the lot?
a. 18.8%
b. 19.0%
c. 18 and ¾ % (1.65M/8.8M)
d. 18 and ¼ %
R.A 7279, Sec-18 specifies that developers
of proposed subdivision projects shall be
required to develop an area for 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 development.
The basic formula for property valuation via
income capitalization is:
a. Value=Income x Rate
b. Value= Income/Rate
c. Value=Rate/Income
141
 d. Value=Selling Price/Income
49. In a property residential capitalization
approach what is the value an improved
property with a net income of P80,000.00 a
year, an interest rate 8% and rate recapture
of 2%?
a. P1,000,000.00
b. P800,000.00 (80K/8%+2%)
c. P840,000.00
d. P850,000.00
50. If houses in your area have increased in
valued 8% during the past years and the
average price of houses sold last year was
P95,000.00. what is the average price
houses sold today?
b. P101,000.00
c. P101,500.00
d. P102,600.00 (95K × 1.08)
e. P103,000.00
51. Assuming four different shapes of a 500
square meters houses which would be the
least expensive to built, assuming the same
materials and quality of construction?
a. A RECTANGLE
b. An L-shape
c. An H-shape
d. A U-shape
52. Assume the following figures:
Annual net income form property -
P100,000.00
Land Value -P200,000.00
Interest rate -8%
Recapture rate (based on the remaining
economic life of 25 years) -4%. What is the
property value indicated by the building
residual technique?
a. P800,000.00
b. P900,000.00
c. P960,000.00
d. P980,000.00
53. 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 date of appraisal
c. 18 months to the appraisal
d. Two years prior to the date of appraisal
54. Which of the following is an advantage of
two storey houses a single storey house?
a. Stairs
b. LOWER CONSTRUCTION COST PER
SQUARE METER
c. Easier paint maintain error
d. Less to paint and maintain error
55. When a part of a building or an obstruction
physically intrudes, overlaps, or trespasses
the property of another, this is referred to as
an:
a. Assemblage
b. Escheat
c. Easement
d. Encroachment
56. The term real estate is generally used to
refer to the physical land 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
57. What is the distinction between the term
market price and market value?
a. Market price is what is the seller asks
for, while market is what the buyer
actually pays
b. Market price is what the property
seller for, while market value is what
is what the sales price should be to
typical buyer
c. Market price is what is currently owned
the property, while market value is what
is bought for
d. Market price is synonyms with
replacement cost, while market value is
the same as assessed value
58. The assessor’s Office is an agency where
we inquire and conduct research on
a. Title verification
b. Certification lot plan
c. Zonal value
d. Cadastral map/tax map
59. An appraisal is best defined as:
a. An unbiased opinion of the quality, value
or utility of an interest in real estate and
related personality
b. An unbiased opinion of the 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
142
 d. The process of developing an opinion sold for P1,000,000, what is the indicated
as to market value or other defined value of the subjected?
value of a specified interest in a a. P1,000,000 x 0.90=P900,000
specified in time b. P1,000,000 x 1.10=P1,100,000
60. Edwin owned a small farm of 1,500 sq.m in c. P1,000,0q00/1.10=P9069,090
Antipolo. When he died, he had no heirs, no d. P1,000,000/0.90=P1,111,111
friends, and no will. 65. A tenant has a least that states the base
a. The state will take the property and rent is P5,000 per month plus 3% of the
sell it sales above P50,000 in gross sales per
b. The land will be in Bob’s name forever month. The tenant’s sales last year were
because he died without heir P850,000. How much rent was paid last
c. The land will pass to the first person to year?
occupy the land for seven years (i.e., a. P25,500
squatter’s rights) b. P75,000
d. The land will pass to the adjacent owner c. P60,000
equally. d. P67,500
61. A 7-years old residence is currently valued 66. If comparable sale# 1 sold for
at P720,000. What was the original if it has Php2,000,000 and has two-car garage,
appreciated by 60% since it is built? adding Php100,000 to the value and the
a. P720,000 subject property does not have a garage,
b. P450,000 the indicated value of the subject property
c. P378,000.00 would be found by:
d. P1,152,000.00 a. Subtracting Php100,000 from the
62. In a soft market a landlord accepted a new subject property
tenant with 60-month lease at P5,000 per b. Adding Php100,000 to the comparable
month but gave the new tenant six months sale
free rent. Using the average rent method, c. Subtracting Php100,000 from the
what is the effective monthly rent? comparable sale
a. P5,555 d. Adding Php100,000 to the subject
b. P4,500 (60×50)0/66) property
c. P3,000 67. A residence has been listed for sale for the
d. P5,000 last six months at a price of P1,249,000 and
63. An office building recently sold for it has not sold, in this market, the average
Php50,000,000. Given the following marketing period is 45 days for this type for
information: property.
Gross (potential) income: Php10,000,000 a. The subject property’s market value
Vacancy factor : 8 percent could be higher than the list price
Expenses :45 percent of effective gross b. The subject property’s market value
income could be higher or lower than the list
Annual mortgage payment :Php4,125,000 price
Equity :Php12,500,000 c. The subject property’s market value
What is the overall rate of return for the is less than the list price
property? What is the pre-tax cash flow? d. The subject property’s market value
a. 8.3 percent could be lower than the list price
b. 10 percent 68. A comparable property sold six months ago
c. 10.12% for Php1,250,000. Market investigation
d. 9% indicates the following:
Solution. Location adjustment +5 percent Adjustment
10M – 8% - 45% /50Mx100 Sequence: Time, Age, Location
64. If the subject property is 10% superior to Time adjustment +6 perecent P1,250,000 X
Comparable Sale no. 1 and the comparable 1.60 X.93 X 1.05 (round it) =1,293,862.5
Age adjustment +7 percent(dep-ed)
143
 c. Payment will be made in cash or its
Give the above information, what is the equivalent
indicated value based on the comparable d. Only the buyer is knowledgeable as to
property? the potential uses of the property
a. Php1,232,250.00 74. In which market are the there many
b. Php1,300,000.00 potential buyers but few properties
c. Php1,325,000.00 available?
d. Php1,293,860.00 a. Demand
69. A property has an overhead garage door b. Buyer’s
that is 13 years old. It cost P19,000 to c. SELLER’S
replace Because the inclement weather d. Low-price
comes outs of the northwest, these doors 75. To estimate market value, an appraiser
typically last 15 years if they face the west follows the
and 25 years if they face east. This door a. Appraiser report
faces east. What is the amount of value left b. Valuation process
in this item? c. Evaluation methodology
a. P9,120.00 d. Appraisal guidelines
b. P9,880.00 76. An appraisal of real estate
c. P16,470.00 a. Guarantee its value
d. P2,660.00 b. Assure its value
13/15 (19,000) = 9,880 c. Determine its value
19,000 – 9,880 = 9,120.00 d. Estimates its value
70. The area of rectangle with a base of 10 77. In which market is the direct sales
meters length and a length of 20 meters is comparison approach most applicable?
a. 250 sq.m a. Seller’s
b. 200 sq.m (10×20) b. Buyer’s
c. 300 sqm. c. Reasonable
d. 400 sqm. d. Active
71. All of the following statement are true 78. The legal right to move items such as
except: topsoil or coal from another is known as
a. Real property refers to items that are a/an:
not permanently fixed to a part of the a. Easement
real estate b. Profit
b. Appraising is the art and items that are c. Escheat
not permanently fixed to a part of the d. EMBLEMENTS/FRUITS
estate 79. The process of change the use of a building
c. Assets value change with time from an apartment complex to a
d. Market change with supply and demand condominium form of ownership is normally
72. The principle of substitution holds that a referred to as a (n):
purchaser will pay not more for a property a. CONVERSION
than b. Proration
a. The minimum he can afford c. Interim use
b. THE COST OF ACQUIRING AND d. Variance
EQUALLY DESIRABLE SUBSTITUTE 80. Which approach would best when
c. The price of a previously owned property appraising a 15-to-20 years old house?
d. The price of a property with grater utility a. Cost
73. Which of the following conditions is b. Sales comparison
assumed in the normal definition of market c. Income capitalization
value d. Replacement cost new les depreciation
a. The estate value is as of a future date 81. Before reconciliation the appraiser should
b. The property will sell promptly a. Re-inspect the subject property

144
 b. EVALUATION THE RELIABILITY OF b. MARKET VALUE AND NON-MARKET
EACH APPROACH TO VALUE VALUE
c. Review the over-all appraiser process c. Economic value and market value
and check for technical accuracy d. Fair market value and liquidation value
d. Seek the property owner’s opinion 89. Under IVSC, the “C” standards for:
82. A large home built in an area of small a. Corporation
cottage is an example of: b. COMMITTEE
a. Over-improvement c. Conference
b. Under-improvement d. Charter
c. Land regression 90. A property with an annual net income of
d. Functional obsolescence P382,500.00 was recently sold for
83. The walls between two condominium units P4,250,000.00. the remaining economic life
are NORMALLY considered to be: of the building is estimated to be 25 years.
a. Individual unit elements Linda value is estimated to be P900,000.00.
b. Common elements Based on the data gathered. The overall
c. LIMITED COMMON ELEMENTS rate of the property is:
d. Propriety lease elements a. 8%
84. What would be the indicated value of a b. 9% (382,500/4,250,000)(100)
property that rented for P7,500 per month, c. 10%
using a monthly gross rent multiplier of 110, d. 12%
if the express attributable to the property 91. There are various types of appraisal
were P1,250 per month? reports. Which of the following step would
a. P756,700.00 be the final one taken the appraisal
b. P825,000.00 (7,500 – 1,250)(12)(110) process?
c. P687,500.00 a. Narrative report
d. P611,250.00 b. Bank form report
85. A 7 years old residential is currently valued c. PERSONAL LETTER OF OPINION
at P720,000. That is the original value f it d. Valuation report
has appreciated by 60 percent since it was 92. A house and lot is period at P7,500,000.00.
built? the lot alone is valued P2,531,250.00. what
a. P270,000.00 percentage of the total asking price is
b. P378,000.00 attribute to the house?
c. P450,000.00 (720K/160%) a. 33 ¾ %
d. P152,000.00 b. 33 ¼%
86. ____ includes not only the ground or soil c. 66 ¼%
but everything which is attached to the earth d. 66 ¾%
whether by course nature or by man 93. The value of the property with a monthly net
a. Land income of P75,000.00 and with an overall
b. Building capitalization rate of 9% is.
c. Other land improvements a. P833,333.00
d. Real Estate b. P10,000,000.00
87. This evolution of value theory emphasized c. P1,000,000.00
the relationship of market price and value, d. P900,000.00
normal value under conditions of
balance supply and demand A regression gives information to estimate
94.
a. Social theory of Mill monthly rent for apartments:
b. Cost theory of Adam Smith  Rent=250+(75xRooms)+(50xstudents)
c. THEORIES OF AUSTRIAN SCHOOL +(25xdistance)=
d. Theories of Physiocrats  Where: 225 × 2 = 1,250
88. Under the international valuation standards  Rooms is the number of rooms in the
(IVSC), two types of values are: apartment
a. Fair market value and sound value
145
 Students id the percent of students in the
apartment building (0=- percent)
 Distance is the distance from the periphery
of the campus
 The rent for an apartment with 3 rooms,
100 percent students and 50 meters from
campus would be:
a. Php1,500.00
b. Php1,775.00
c. Php2,500.00
d. Php3,000.00
95. Building value :Php50,000,000.00
Net operating income :Php8,350,000.00
Building capitalization rate :14 percent
Land capitalization rate :9 percent
What is the residual income to the land?
a. Php 1,350,000.00
b. Php 3,850,000.00
c. Php 4,500,000.00
d. Php 70,000,000.00
96. What is the present value of a 40-years net
income of Php 10,000 per year if payments
are in advance and the net income is
discounted at a rate of 12 percent?
a. P82,330.00
b. P82,438,.00
c. P92,210.00
d. P92,330.00
APPRAISER’S /BROKERS EXAM
MOCK EXAM SET B-2
97. Which principle of value suggests that the
maximum value of a property generally
cannot exceed the cost of its replacement?
a. Balance
b. SUBSTITUTION
c. Anticipation
d. Opportunity cost
98. Which of the following statement is NOT
true in regard to real estate markets?
a. Price is seldom equal to value
b. Supply and demand are seldom in
balance
c. SUPPLY ADJUSTS MORE QUICKLY
THAN DEMAND
d. There are many government regulations
99. The term absorption rate refers to:
a. An estimate of the expected annual
sales or new occupancy of a particular
type of land use
b. AN ESTIMATE OF THE RATE AT
WHICH A TYPE OF REAL ESTATE
SPACE WILL BE SOLD OR
OCCUPIED.
c. The rate at which the cash flows from a
property will cover the initial investment
in the property
d. The rate of retain used converted future
payments into present cash values?
100. Which of the following explanations would
be the BEST definition of market value?
a. Value top a typical investor
b. Value to any a typical who is willing
purchase the property in the open
market
c. Value to a typical seller
d. Value to the user who pays market rent
101. The term market value is MOST closely
associated with which of the following
value concepts?
a. Highest sales price
b. Value in exchange
c. Values in use
d. Assessed value
102. Which of the following economic principles
BEST explains the occurrence of located
location obsolescence resulting from a
change in surrounding land use?
a. Anticipation
b. Conformity
c. Contribution
d. Substitution
103. What economic principle suggest that the
value of property is created and
maintenance when there is equilibrium in
the supply, demand and location of real
estate ?
a. Balance
b. Equilibrium
c. Substitution
d. Surplus productivity
104. Which of the following land uses would NOT
be considered a single purpose property?
a. Nuclear power plant
b. Grain elevator
c. GOLF COURSE
d. Cemetery
105. Normally, the amount of money a lender will
agree to lend against a specified parcel of
real estate is based on which of the
following prices or values?
a. Contract price
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 b. Appraisal value a. MORTGAGE, MORTGAGEE
c. CONTRACT PRICE OR APPRAISAL b. Mortgage, mortgagor
VALUE, WHICHEVER VALUE, c. Mortgage, financial intermediary
WHICHEVER IS LESS d. Agent, principal
d. Assessed value 113. The term fee simple estate refers to an
106. The legal ownership rights in real estate estate that:
are limited by all of the following conditions a. Has all lease at the market rate
EXCEPT: b. Has been leased at a specified fee
a. Private voluntary restrictions such as c. IS NOT A SUBJECT TO ANY LEASES
deed restrictions d. Is fully encumbered by leases
b. The law of nuisance 114. What term is used to identify recently sold
c. SUPPLY OF REAL ESTATE IN THE or leased properties that are similar to a
MARKETPLACE particular property being evaluated and
d. Public Limitations such as eminent used to indicate the value for the property
domain being appraisal?
107. The real property in a condominium form of a. Subjects
ownership in severalty is referred to as: b. COMPARABLES
a. Unit c. Relatives
b. Common area d. Outliers
c. Limited common area 115. Reconciliation criteria used to estimate the
d. Cooperative final value in an appraisal included which of
108. Property taxes levied local governments are the following factors?
normally referred to as ad valorem taxes. a. Appropriateness, accuracy, market
The term ad valorem means: evidence
a. Ability to pay b. Appropriateness, quality of evidence,,
b. ACCORDING TO VALUE accuracy
c. According to most likely sales price c. ACCURACY, DIFFERENCES IN
d. Ability to collect the tax VALUE, APPROPRIATENESS
109. If a commercial use such as retail store is d. Quantity of evidence, accuracy, market
permitted to remain in business following a value
zoning change to residential use, the owner 116. In the valuation process, which of the
is said to have received a: following steps identifies the items that
a. VARIANCE contribute to a concise appraisal completed
b. Nonconforming use in a through and efficient manner?
c. Local exception a. Definition of the problem
d. Buffer zone use b. DATA COLLECTION AND PROBLEM
110. A hectare of land contains___ square c. Highest and best use analysis
meters d. Reconciliation
a. 10,000 117. A common phrase included in all real estate
b. 1,000 appraisal forms includes the use of the “as
c. 100,000 of” date Normally, the “as of “date in an
d. 1,000,000 appraisal report refers to the date:
111. A fixture such as a permanent book case or a. The appraisal assignment was accepted
wall-to-wall carpeting is legally treated as: b. The appraisal assignment is to be
a. Personalities delivered
b. REALITY c. OF THE LAST INSPECTION
c. Intangible property d. The loan is to close
d. Personal property 118. In using the sales comparison approach,
112. When a real estate is put up as a collateral the appraiser finds that one of the
for a loan, the borrower is known as comparables is superior to the subject
the____ and the lender is known as property in terms of location. In this event
the____. what adjustment will be made?
147
 a. The comparable will be adjusted upward
b. THE COMPARABLE WILL BE
ADJUSTED DOWNWARD
c. The subject property will be adjusted
upward
d. The subjected property will be adjusted
downward
119. Normally, the comparable sales approach
would be considered the MOST reliable
when which of the following condition exist?
a. The approach is new and an occupied
b. A high rate of inflation exists
c. Obsolescence must be measured
d. ACCESS TO RELIABLE MARKET
DATA EXISTS
120. Your appraising assignment involves the
estimation of value for a 10 meter parcel of
land. You have identified and examined 10
comparables that are similar to the subject
property except for size differentials. You
have developed a simple linear regression
equation in which sales price (expressed in
thousands of pesos)is the depended
variable and size (expressed in square
meters) is the independent variable. The
equation you have developed is Y=180,000
+ 1,000 (x) using equation and the
information given, what is the indicated
sales price for the subject property?
a. Php 180,000
b. Php 360,000
c. Php 280,000
d. Php 435,000
121. In appraising a property, the appraiser
identifies a similar property that appears to
be a very good comparable. The appraiser
finds that when the comparable sold, very
favorable financing was part of the sales. In
regard to the comparable, what is the
appropriate action?
a. Not use the sale under any condition
b. Give the sale less weight than any of the
other comparables
c. ADJUST THE SALES PRICE FOR
CASH EQUIVALENT EQUIVALENCY
AND EXPLAIN
d. Do nothing because the comparable
sold thus represents normal market
activity
122. The portion of land that is NOT necessary
for the existing improvement is referred to
as:
a. Over improved land
b. Excess land
c. Useless land
d. Under improved land
123. The term site refers to:
a. Land that has been improved
b. Land within a certain set of boundaries
c. A legal description of a plot of land
d. Raw land within no improvements
124. _____ is the estimated cost at current price
to construct an exact replica of the building
using the same standards, materials,
design, and lay out and including any
deficiencies, super adequacies, and
obsolescence as the subject building.
a. Replacement cost
b. Unit-in-place cost
c. Reproduction cost
d. Market cost
125. The cost approach to value is generally
MOST accurate when which of the following
situations exists?
a. The building is sold 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 sold and reproduction or
replacement cost is not known
d. A vacant tract of land is being appraised
126. In the appraisal of real estate, the
necessary step taken by the appraiser of
valuing the land if vacant is part of which
approach to value?
a. Cost
b. Sales comparison
c. Income capitalization
d. Gross rent multiplier
127. Which of the following statement is
CORRECT in regard to estimating the
value of residential real estate?
a. The highest and best use of a site with a
newly constructed house property
located on the site is always its present
value
b. The total area of a single family
residence for purpose of using the cost
approach to value is calculated by
summing the interior areas of the
structure
c. A newly constructed house cannot
suffer from any type of depreciation
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 d. TOTAL ACCRUED IS A LOSS IN
VALUE FROM CAUSES
128. Super adequacies that might exist in a
structure would be recognized and included
in which of the following types of
depreciation?
a. Physical deterioration
b. FUNCTIONAL OBSOLESCENCE
c. Economic obsolescence
d. Local obsolescence
129. A house being appraised has a total living
area of 50 squares. For a house similar
construction quality, national cost services
indicates a cost of Php 15,000 per square
meter. The location multiplier is .95.the cost
figure are five months old and the appraiser
estimates that construction costs have
increase 5 percent during this period. What
tis period. What is the current estimated
replacement cost of this house?
a. Php 712, 425
b. Php 748,125
c. Php 784,500.00
d. Php 874,000.00
Sol.50×15K = AMORTIZATION
750K×95%=712,500+5%=748,125
130. 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
methods?
a. Comparative unit method
b. Builder’s methods
c. Unit in place method
d. Quantity survey method
131. The term amortization refers to:
a. An increase in value of the property
b. An decrease in value of the property
c. Periodic repayment of debt normally
in equal amount
d. Assessment of property for tax purposes
132. The amount of debt payment due on a loan
is function of the amount borrowed, the
interest charged, and the term of the loan.
In regard to the term, which of the following
statement is CORRECT?
a. The longer the term, the greater the
periodic payment
b. THE LONGER THE TERM, THE LESS
THE PERIODIC PAYMENT
c. The longer the term, the higher the
interest rate charged and thus the higher
payment
d. The longer the term, the lower the
interest rate charged and thus the higher
the employment
133. You have collected the following data on a
comparable property, which you plan to use
in estimating the gross rent multiplier for
rental properties in a neighborhood: sales
price is Php1,000,000, annual rent is
Php60,000, annual property taxes is
Php9,000, monthly mortgage payment is
Php 7,150.
What is the monthly gross rent multiplier
indicated by this property?
a. 100
b. 125
c. 150
d. 200
134. When payments on a loan are not to
cover the interest on a loan, which of the
following result is applicable?
a. THE LOAN HAS NEGATIVE
b. The loan will never get repaid
c. The loan has debt coverage ratio less
than one
d. The loan is a reverse annuity mortgage
135. Reversion can follow which of the
following types of legal estates?
a. Leasehold
b. Fee simple
c. Tenancy in common
d. Fee simple absolute
136. Which of the following statements would
be CORRECT if contract rent is likely to
exceed market rent for the term of the
lease?
a. THE LEASEHOLD ESTATE IS NOT
LIKELY TO HAVE ANY VALUE
b. The leased fee estate is probably less
valuable than a fee simple estate in the
property
c. The leasehold interest will be greater
than the fee simple value
d. The leasehold value is not affected by
the contract rent
137. Which of the following terms refers to a
lease used to sublease a property?
a. Blanket lease
b. Subordinated lease
149
 c. Sandwich lease
d. Double lease
138. Which of the following reasons is often
given as a weakness or disadvantage of
using the sales comparison approach?
a. The market may be too active
b. There may be so many sales that the
appraiser cannot find comparables
c. The sale comparison approaches is
based on historical information or
offering in the market
d. A competitive and knowledgeable
market may exist
139. Which principle of value suggests that the of
a property is equal to the present value of
the property’s project-income?
a. Balance
b. Anticipation
c. Opportunity cost
d. Substitution
140. What term applies to the difference between
the purchase price and the net proceeds
from any mortgage (s) used to purchased
property’s?
a. Asset
b. Reversion
c. Capitalizations tax
d. Equity
141. The relationship of a property to other
properties in terms of time and distance
preferences is referred to as:
a. Linkage
b. Externality
c. District
d. Neighborhood
142. The demand for new homes in a market
area is estimated to be 500 per year.
Developer abel’s new subdivision, when
completed, is expected to capture 10
percent of the market. Therefore Abel’s
subdivision has an expected absorption rate
of:
a. 50 percent
b. 5 percent
c. 50 homes per year
d. 10 homes per year
143. The market value of a property and the
selling price of that same property could
be equal under which of the following
conditions?
a. They are always equal
b. They are never equal
c. They are sometimes equal
d. They are only equal rental property
144. Which of the following economic principle is
the underlying justification as to why the
adjustment process is used in the sales
comparison (market) approach?
a. Anticipation
b. Contribution
c. Highest and best use
d. Opportunity cost
145. _____refers to that possible and legal use
of land that will preserve the land’s utility
and generate a net income that forms when
capitalized, the greatest present value of
the land.
a. Linkage
b. Present value
c. Market value
d. Highest and best value
146. The primary difference between a straight-
term (interest-only) mortgage and a fully
amortized mortgage is in the:
a. Loan-to-value ratio
b. Interest rate
c. Length of the loan
d. Method of principle repayment
147. In regard to an easement which of the
following statement is CORRECT?
a. An easement is a person property right
rather than a real property right
b. An easement must always be in writing
c. An easement, once created, becomes a
life estate
d. An easement may be terminated once
the purpose for which it was created
no longer exists.
148. An irregularly shaped lot is located in an
area where the zoning setback required of
1.5 meters would result in a planned
building not property fitting on the lot. To
seek relief from the harshness of this
requirement, the owner seek what type of
adjustment from the local authority?
a. Nonconforming use
b. Exception
c. Variance
d. Special use permit
149. In referring to various parties in a deed, the
grantee is the:
a. Seller
b. Buyer
c. Broker
150
 d. Escrow agent
150. The walls located between two
condominium units are normally
considered:
a. Individual unit elements
b. Limited common elements
c. Public elements
d. Propriety lease elements
151. In determining whether an item is real
property, which of the following test is
NORMALLY considered?
a. Manner of attachment intention of the
party who made the attachment,
purpose for which the item is used
b. Manner of attachment, age of the item,
cost of the item
c. Number of the items in question, current
market value, purpose for which the item
is used
d. Actual owner, cost of the item, current
market value.
152. The private right and privileges of real
property ownership are limited are limited
by what four powers of government?
a. Police power, eminent domain,
taxation, escheat
b. Police power, adverse possession,
taxation escheat
c. Eminent domain, zoning, condemnation,
taxation
d. Zoning, police power, escheat, adverse
possession
153. A written instrument, usually under seal,
conveying some property interest from a
grantor to a grantee is a common definition
of which of the following?
a. Mortgage
b. Lease
c. Deed
d. Sale contract
154. A current land use that existed prior to the
establishment of zoning district and is NOT
consistent with the current restrictions
impose on land uses in that district s called
a (n):
a. Variance
b. Nonconforming use
c. Illegal use
d. Transitional use
155. In the valuation process, when does the
reconciliation of value indications to a final
value estimate take place?
a. After completing of each approach
b. AFTER COMPLETION OF ALL THREE
APPROACHES
c. After the legal description is complete
d. Periodically during the appraisal process
156. Which of the following statement is
CORRECT in regard to the range of value
used in the final value estimate?
a. There should be a single point estimate,
not a range of values
b. A good range in values is plus or minus
5 percent
c. THE RANGE OF VALUE DEPENDS
ON THE PRECISION ASSOCIATED
WITH THE ESTIMATE AND THE
CONFIDENCE THE APPRAISER HAS
IN THE VALUE
d. The price should be given in whole
numbers
157. Comparing the physical components of
the subject property with those of
comparable properties is part of what step
in the appraisal process?
a. Defining the problem
b. Collecting the data
c. Analyzing data via the sales
comparison approach
d. Recording the value approaches
158. Which of the following guidelines is the
PRIMARY one that should be followed by
an appraiser in regard to the collection and
analysis of data analysis data use in the
appraiser process?
a. They should be limited to public land
record
b. They should be primary data only
c. They should be current
d. They should have a bearing or
influence on the estimating of value
159. The valuation process has numerous steps
that should be followed. Which of the
following steps is NOT a normally
acceptable one undertaken by an appraisal
process
a. Definition of the problem
b. Collection and analysis of data
c. Averaging of the three approaches to
value/weighing
d. Report of the defined value
160. Which of the following statements BEST
describes how the adjustment process is
used in the comparable sale approaches?
151
 a. The subject property is adjusted to the c. Cost of replacing the feature must be
comparables to make it as similar as the same as lot less than the
possible anticipated increase in value
b. The comparables are adjusted to the d. Contribution of the improved feature to
subject property to make them as the income of the property must be
similar as possible greater than the cost to install it
c. The subject property is valued using its 164. The term frontage refers to the:
highest and best use a. Curb length along the perimeter of a
d. Accrued depreciation is subtracted from property
replacement cost to estimate the value b. Width of a site
of the subject property c. Linear distance of a piece of land
161. Numerous elements of comparison are along a lake, river, street or highway
used by appraisers in the sales comparison d. Distance between the form front f a site
approaches. Which of the following and the back of the site
elements is NOT one that should be 165. A residential neighborhood may suffer from
employed in this approach? economic obsolescence as a result of which
a. Conditions of false of the following conditions?
b. Property rights being conveyed a. An increase in mortgage interest rates
c. Cost b. Expansion of an airport runway on an
d. Location adjoining property
162. An appraiser is attempting to estimate the c. Highest and best use of the surrounding
value of a house. The subject property has land
four bedrooms and a swimming pool. The d. A decrease in the millage rate used to
appraiser has found three comparables that calculate property taxes
have recently sold. 166. A lot measuring 10 meters by 12 meters by
Comp Sales Bedr Swim 21 meters costs Php315,000. At the same
arable Price ooms ming rate per square meter, what would a lot
(in Pool measuring 12.5 meters by 25 meters cost?
Php) a. Php 312,500
1 1,100 5 No b. Phph 315,000
,00 c. Php 393,750
2 1,010 4 No d. Php 468,750
,000 167. Corner influence is MOST important to
3 1,040 3 Yes the appraiser under which of the following
,000 conditions?
The appraiser estimates that each a. Traffic flow on the road fronting the
bedrooms has a worth of Php 100,000 and property is only one way
swimming pool is worth of Php150,000. b. The property is zone highway
Given the above information, what is commercial
estimated value of the subject property c. Access to the property is readily
using the average derived from the available
comparable d. Investigation and analysis show
a. Php 1,010,000 concerns to be valuable
b. Php 1,040,000 168. A house with a total living area of 100

c. Php 1,150.000 square meters would cost Php 10,000 per

d. Php 1,250,000
163. For functional obsolescence to be
curable, the
a. cost of replacing the feature must be
less than the value of the feature
b. Feature as improved must contribute to
the income of the property
square meter to reproduce new. It has an
expected economic life of 50 years and is
estimated to have an effective age of five
years. The lot has market value of
Php2,500,000. What is the estimated value
of the property using the cost approach?
a. Php 4,000,000
152
 b. Php 2,600,000
c. Php 3,400,000
d. Php 3,500,000
Sol. Effective age/Economic life = 5/50 =
0.1
1M-10%=900k+2,5M=3.4M
169. In regard to various statistical test
undertaken by appraisers, which of the
following statements is CORRECT with
respect to the median?
a. The median and the mode are always
the same
b. The median is the most commonly
occurring value in a group
c. The median is the middle value in a
group
d. The median as always greater than the
mean
170. The term ground lease applies to what
type of lease?
a. A lease that applies to the ground floor
of a structure
b. Any lease that includes land
c. A lease allowing something to be
removed from the land
d. A lease that applies to the land only
171. A comparable property sold six months ago
for Php 1,250,000. Market investigation
indicates the following:
Location adjustment : +5 percent
Time adjustment : +6 percent
Age adjustment : -7 percent
Given the above information, what is the
indicated value based on the comparable
property?
a. Php 1,232,250
b. Php 1,293,860
c. Php 1,300,000
d. Php 1,325,000
Sol.
1,250,000+6%=1,325,00+5%=1,391,250-
7%=1,293,860
172. Data obtained from published sources
are referred to as:
a. Primary data
b. Secondary data
c. General data
d. Specific data
173. Market rental rates tend to be set the rate
that prevails for equally desirable space.
This is a reflection of what appraisal
principle?
a. Anticipation
b. Balance
c. Substitution
d. Competition
174. The process of identifying and analyzing
submarkets of a larger market is known as:
a. Extraction
b. Market allocation
c. Market segmentation
d. Substitution
175. When a property’s highest and best is in a
stage of transaction, which of the following
action is required of the appraiser?
a. Consider interim use
b. Ignore interim use
c. Consider interim use only if it result in a
higher value
d. Consider interim use only if it result in a
lower value
176. The common areas in a condominium
project normally are owned by whom?
a. The developer
b. The homeowners association
c. Each individual unit owner or
corporation
d. The board of directors of the
homeowner’s association
177. A strip of land used to separate two
adjoining parcels of land that have
incompatible uses, such as a residential
subdivision and an industrial park, is
referred to as a:
a. Buffer zone
b. Planned unit development
c. Nonconforming use
d. Variance
178. In appraising a condominium, an
appraiser should consider the following
approach(es) to value:
a. Cost approach
b. Sales comparison approach
c. Income comparison
d. All three approaches
179. 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 highest and best use of the
site normally would no vacancy
b. The vacancy rate in an appraisal
normally should be the vacancy rate
currently experiences by the project
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 c. The vacancy rate in an appraisal
should reflect the typical vacancy
rate for comparable properties
d. The vacancy rate should never be zero
180. As the degree of risk and uncertainty
associated with the income potential of
property increases, the income generated
by that property may be capitalized a higher
rate. This action will bring about which of
the following results?
a. A hgher capitalization rate will mean a
higher value
b. A higher capitalization rate will mean
a lower value
c. A change in the capitalization rate will
have no bearing on the estimate of value
d. A change in the capitalization rate will
have an effect on value only if the
property is being under its highest and
best use
181. An office building has 1,00 square meters of
net leased space. The owner has an annual
mortgage payment Php 750,000 and
expects operating expenses to be Php
250,000. If the owner wants a before tax
cash flow Php 500,000, what should the
gross rent square meter be on a monthly
basis?
a. Php 100
b. Php 125
c. Php 150
d. Php 1,500
182. Demand is one of the essential elements
or characteristics of value, however, for
demand to value where must also be.
a. Purchasing power
b. Need
c. An adequate supply
d. Good sales technique
183. Which of the following calculations is NOT a
type of yield rate?
a. INTERNATIONAL RATE OF RETURN
b. DISCOUNT RATE
c. OVERALL CAPITALIZATION RATE
d. INTEREST RATE
184. What information is NOT needed to apply
the building residential technique?
a. Building value
b. Land value
c. Net operating income
d. Land and building capitalization rate
185. What term used to denote the difference, if
any, between the present value of expected
benefits, or positive cash flows, and the
present value of capital outlays, or negative
cash flows?
a. Profitability index
b. Net present value
c. Internal of return
d. Net cash flow
186. Given the following information
Building capitalization rate:
Land capitalization rate
Land value as a percent of total value:
What is the overall capitalization rate by
using the band of investment approach?
a. 0.097
b. 0.100
c. 0.103
d. 0.110
187. Given the following information, what is the
building capitalization rate for the subject
property?
Land value : Php600,000
Net operating income : Php250,000
Land capitalization rate : 8 percent
Overall capitalization rate : 9 percent
a. 10.9 percent
b. 9.3 percent
c. 8.4 percent
d. 8.8 percent
188. If a property has a net income ratio of .75
and gross income multiplier of 9, what is the
indicated overall capitalization rate?
a. 2.78 percent
b. 6.75 percent
c. 8.33 percent
d. 12.00 percent
189. The term holding period usually refers to
the:
a. Time span in which improvements
continue to contribute to value
b. Period of time which net income remains
greater than operating expense
c. TIME SPAN OF OWNERSHIP
d. Period of time that this since
construction of the improvements
190. Capitalization is the process of:
a. Forecasting future yields of a property
b. Calculating expenses to find price
c. Deducting expenses to find net assets
d. CONVERTING INCOME INTO A
VALUE INDICATION
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191. Which of the following statements BEST a. Dividing market rent by gross rent
describes the amount of adjustment an multiplier
appraiser should make for vacancy b. Dividing market rent by net income
allowance in a property? c. Multiplying operating expenses by gross
a. 5 percent of gross income rent multiplier
b. 1 percent for each year property has d. MULTIPLYING MARKET RENT BY
been rented GROSS RENT MULTIPLIER
c. Somewhere between 5 percent and 10 197. Which of the following statement is MOST
percent descriptive of what occurs with a
d. THE AMOUNT WILL VARY WITH capitalization rate used in the income
EACH PROPERTY approach to value?
192. Which of the following returns would be a. THE CAPITALIZATION RATE
include in the capitalization rate established INCREASES WHEN THE RISK
by the appraiser for a property with a INCREASES
declining value a constant land value? b. The capitalization rate increases when
a. Return on the land and building the risk increases
b. RETURN ON THE LAND AND c. The capitalization rate increases when
BUILDING AND RECAPTURE OF THE risk decreases
BUILDING d. The capitalization rate remains the same
c. Return on the land and building and as long as there is possible net income
recapture of the land and building 198. A set percentages indicating the
d. Return on the land and building and proportion of site value attributable to each
recapture of the land additional amount of depth in the lot is
193. In addition to the income generated by referred to as:
rents, what else does the income approach a. DEPTH TABLE
always require the appraiser to analyze? b. Multiplication tables
a. Total debt service c. Plottages
b. Pretax cash flow d. Grid
c. OPERATING EXPENSES 199. Risk due to the use of depth financing is
d. After-tax cash flow referred to as:
194. A 10-unit apartment complex has been a. Interest risk
purchased for Php 25,000,000. A 75 b. Financial risk
percent loan has been obtained. Vacancy c. Leverage risk
allowance, operating expenses, reserve d. Equity risk
accounts, and debt services equal 200. A large national tenant that occupies
Php2,375,000 annually. How much must space in a shopping center is often to as
each unit rent for monthly to generate a 10- a (n):
percentr dividend rate? a. Discount tenant
a. P 23,750 b. Another tenant
b. P 24,000 c. Department store
c. P 25,000.00 d. Mall tenant
d. P 30,000.00 201. Which of the following conditions is NOT
195. The mathematical process of converting a basic assumption in the definition of
investment in flows or an income into a market value?
present value is commonly referred to as: a. The seller receives cash or its equivalent
a. Compounding b. Both the buyer and seller are
b. DISCOUNTING knowledgeable about current market
c. Amortization conditions
d. Equity reduction c. The value will be as of a specific date
196. In analyzing the market by using a gross d. The property will sell promptly
rent multiplier (GRM) technique, value is
estimated by doing which of the following?
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202. Which of the following conditions is b. A nonconforming use and a variance
assumption in the normal definition of refer to the same thing
market value? c. Zoning normally establishes land use
a. The stated value is a of a future date districts and provides for different
b. The property will sell promptly restrictions with each district
c. Payment will be made in cash or its d. Exclusionary zoning and spot zoning
equivalent refer to the same thing
d. Only the buyers knowledgeable as to the 208. The extension of some improvements or
potential uses of the property object, such as a building or driveway,
203. In considering the highest and best use of a across the legal boundary of an adjoining
parcel of land to be improved with an office tract of land is referred to as a (n):
building the appraiser determine the optimal a. Easement
land to building ratio for the parcel. Which b. Emblements
of the following economic principles does c. Encroachment
this illustrate? d. Profit
a. Anticipation 209. The legal right of the state to acquire
b. Balance property of a decedent who died without a
c. Contribution will and without heirs is referred to as what?
d. Substitution a. Eminent domain
204. An existing site has an improvement on it b. Escheat
such as a building. Which of the following c. Dedication
statements BEST describes the highest and d. Devise
best use of that site?
a. It cannot determined
b. It is automatically the current use the APPRAISER’S /BROKER’S EXAM
site is improved MOCK EXAM SET C-3
c. It may be different from the current
use (IMERIM USE) 210. Cost value are MOST likely to be similar
d. If the improvement is a residence, then under which of the following conditions?
the land does not have a highest and a. The property is new
best use b. The property is small
205. A tax assessment is intended to accomplish c. The property is special purpose
which of the following results? d. The property has no deferred
a. Set the maximum price paid at a maintenance
foreclose sale 211. Highest best use analysis s used to
b. Establish the asking price of property determine which of the following factors?
when listed for sale by the owner a. THE TYPE OF PROPERTY TO UP ON
c. Aid determination of how much A SITE
property tax is due b. THE AMOUNT OF CAPITAL TO
d. Determine market value INVEST IN A SITE FOR
206. The process of changing the use of a IMPROVEMENTS
building from an apartment complex to a c. WHETHER ANY EXISTING BUILDING
condominium form of ownership is normally ON A SITE SHOULD BE
referred to as a (n) DEMOLISHED
a. Conversion d. ALL OF THE ABOVE
b. Proration 212. A property has an appraised value of
c. Interim use P1,000,000.00. The owner currently owes
d. Variance P600,000.00 in mortgage loans against the
207. In regard to zoning, which of the following property. The owner’s equity is:
statement is CORRECT? a. P400,000.00 (1M-600k)
a. Zoning ordinance are always more b. P600,000.00
restriction than deed restrictions c. P140,000.00
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 d. P160,000.00 a. Reasonable intent of the party attaching
213. Which of the following valuation the object.
concepts is indicative of special purpose b. Adaptation of the object
properties, such as churches or schools, c. Cost of the item being attached
when the continuation of the special use d. Method of attachment
is assumed? 219. The legal estate in land that provides
a. Value in exchange degree or extent of ownership rights
b. Value in use recognized by law any may be referred to
c. Value in perpetuity by which of the following terms?
d. Book value a. FEE OWNERSHIP
214. Which of the following explanation BEST b. FEE SIMPLE
description the term market place? c. FEE SIMPLE ABSOLUTE
a. The amount of money actually paid in a d. ALL OF THE ABOVE
transaction sale price 220. Which of the following action is an example
b. The amount of the loan of the legal of government based on
c. The amount of money necessary to police power?
replace the property reproduction a. Taxation
d. Same term as market value b. Escheat
215. What economic principles is BEST c. Eminent domain
illustrated when an appraiser concludes d. Zoning
that modernization of the plumbing system 221. In a voluntary conveyance of real estate,
in the subject property will increase the the ____conveys the title to the property
value of the property by more than the cost and the ____ receives the title.
of modernization? a. Grantor, grantee
a. Anticipation b. Grantee, grantor
b. Balance c. Owner, seller
c. Contribution d. Grantee, grantor
d. Substitution 222. All legal rights, such as riparian or
216. Which of the following statements is easements that “go with land” when title
CORRECT in regard to the highest and to the land is transferred are known as:
best use of a parcel of land? a. Encroachment
a. Unimproved land does not have a b. Seizings
highest and best use. c. APPURTENANCES
b. If the improvement to the land is a d. Easements
house, then the highest and best use is 223. Numerous public and private limitations
always residential are placed on real property. Some are
c. The highest and best use can change voluntary and others are involuntary. Which
over time of the following limitations is NOT an
d. Highest and best use is strictly n example of a private involuntary limitations?
economic concept and is not influence a. encroachment
by physical and legal considerations. b. Adverse possession prescription
217. The total loan payment made on a parcel c. Mechanics lien
f real estate during any one year is d. Deed restriction
generally referred to as: 224. Reference to a plat map would be made in
a. DEPT SERVICE which of the following legal description
b. Equity methods?
c. Mortgage constant a. Lot and block mids & bound
d. Cash flow b. Rectangular survey
218. The test used to determine whether or c. Street address
not an article is a fixture depends on all d. Monuments
the following conditions EXCEPT:

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225. Which of the following terms refers to the 231. If comparable sale #1 sold for
right of a person who owns a property Php2,000,000 and has a two-car garage,
free and clear of any leases? adding Php100,000 to the value, and the
a. Leased fee estate subject property does not have a garage,
b. Leasedhold estate the indicated value of the subject property
c. Fee simple estate would be found by:
d. Lesse’s estate a. Adding Php100,000 to the comparable
226. When a building, a part of a building or an sale
obstruction physically intrudes, overlaps, b. Subtracting Php100,000 from the
or trespasses the property of another, this comparable sale
is referred to as an: c. Adding Php100,000 to the subject
a. Escheat property
b. Easement d. Subtracting Php100,000 from the
c. Encroachment subject property
d. Assemblage 232. When an appraiser is using the sales
227. An appraisal is best defined as: comparison approach, one of the elements
a. An unbiased opinion of the most likely of comparison that may have to be
price for which a parcel of real estate adjustment is often referred to as a time
would sell at a given date. adjustment. What does the time adjustment
b. An unbiased opinion of the nature, provide?
quality, value or utility of an interest of a. An adjustment for the period of time
an interest in real estate and related between when a listing is taken on
personally property and when the property actually
c. The process of developing an opinion sells.
as to market value or other defined b. An adjustment between the date of
value of a specified interest in a sale of a comparable and the date of
specified point in time. the appraisal to allow for any
d. The process of studying the nature, changes over time
quality of an interest in real estate in c. An adjustment between the listing date
which a value estimate is not necessarily of a comparable sale and date the
required. subject property is actually appraised
228. In the appraisal process, the property d. An adjustment for the period of time
being appraisal is referred to as the: between the actual sale of a comparable
a. Comparable property for the appraisal assignment
b. Assessed property 233. An appraiser has been asked to estimate
c. Subject property the value of a lot. In the same
d. Appraised property neighborhood, the appraiser collects the
229. The appraisal process undertaken by an following sales data:
appraiser consists of many steps. What Lot Sales Price Time of
is the correct first step in the appraiser Sale Sale
process? 1 150,020 Php 4 months
a. Definition of the problem 144,250 x 1.04 ago
b. Collection and analysis of data 2 149,991 Php 2 months
c. Analysis of highest and best use 147,050 x 1.02 ago
d. Initial estimate of value 3 194,968 Php 3 months
230. The objective of undertaking an appraisal 145,600 x 1.03 ago
of real estate is to: 449,979/3
a. Determine asking price =149,993
b. Estimate value The price appreciation for lots is estimated
c. Establish loan value to be at the rate of 1% per month (simple,
d. Identify legal rights and interest that may not compound) given the above information,
exist
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 what is the estimated value of the subject a. Highest and best use
property? b. Economic rent
a. Php50,000 c. Escheat
b. Php100,000 d. Plottage
c. P140,000.00 241. Another term used to denote the actual age
d. P150,000.00 of a building is
234. Deferred maintenance usually results in a. Chronological age HISTORICAL
which of the following losses in value? b. Effective age
a. Incurable physical depreciation c. Economic age
b. Curable physical depreciation d. Depreciated age
c. Curable functional obsolescence 242. A building has a roof that originally had an
d. Curable external obsolescence expected life of 25 years. The roof’s
235. What terms applies to the effect on value effective age is 15 years. A new roof will
of location or proximity to the cost Php100,000 to install. Using a straight
intersection of two streets? line method, what amount of depreciation
a. Corner influence would be charged of the roof?
b. Amenity a. Php40,000
c. Externality b. Php60,000
d. Plottage c. P580,000.00
236. Functional obsolescence could be caused d. P100,000.00
by which of the following? 243. The basic capitalization formula used in
a. A ceiling that is to high the income approach to value contains
b. Deferred maintenance three Components. Those three
c. A poor location components are:
d. A worn-out roof a. Market, cost, income
237. The building cost estimate method that b. Value, rate, income
replicates the contractor’s development of a c. Physical, functional, economic
bid and is the most comprehensive way d. Potential, gross, net income
estimate building costs, si known as the: 244. What is the gross income multiplier for a
a. Unit-n-place method property with a current market value of
b. Quantity survey method Php570,000 and rents for Php5,000 per
c. Breakdown method month?
d. Comparative unit methods a. 9
238. Included in the cost approach to value is b. 9.5
all of the following components EXCEPT: c. 10
a. Replacement cost d. 10.5
b. Highest and best of the land Sol. 5k × 12 = 60k
c. Acquisition cost 570k/60k = 9.5
d. Accrued depreciation 245. The peso amount of rent received from a
239. In regard to accrued depreciation, which parcel of real estate when rented in an
of the following terms does NOT belong open, competitive market is referred to as:
together? a. Economic rent market
a. Physical deterioration-curable b. Contract rent
b. Functional obsolescence-incurable c. Ground rent
c. Economic obsolescence-curable d. Gross rent
(incurable) 246. A mortgage loan for Php 300,000 at 9
d. Functional obsolescence-curable percent annum for 30 years has been
240. The combining of two or more into a made. What is the amount of interest for the
single ownership with the value of the first month?
assembled lots being more than the sum of a. Php163.90
the values of the individual lot is referred to b. Php900.00
as: c. P2,250.00
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 d. P2,413.90 a. Volume of new construction
Sol. 9%/12 = 0.0075 × 300K = 2,2250 b. Standing stock
247. What is the range of a group of variables c. Land use and city growth
indicate to the appraiser? d. Competition
a. The value of the highest sample 254. What term best describes the effect of a
b. The difference between the lowest power on the value of a nearby home?
and the highest values a. Balance
c. The average for the group b. Externalities
d. The percentage variation from the mean c. Contribution
248. Which of the following types of lease does d. Conformity
NOT provided at least some protection to 255. Which of the following appraisal principles
the lessor against inflation? holds that market value is indicated by
a. Flat lease the value of another property with
b. Index lease similar utility?
c. Reappraisal lease a. Supply and demand
d. Graduated lease b. Substitution
249. Which of the following statement is c. Competition
CORRECT in regard to assessed value? d. Balance
a. The assessed value must equal the 256. The specific use of a parcel of land that
market value gives that land the greatest residual of
b. The assessed value is used primarily income is referred to as the land’s
to calculate property taxes a. Intrinsic use
c. The assessed value is used primarily to b. Highest and best use
calculate property insurance c. Income producing use
d. The assessed value will never exceed d. Efficient use
cost 257. The proper or most correct of an
250. A father sells his home to his daughter and improvement to land, such as the
her husband. Such a sale would construction of a house, is normally
NORMALLY be described as which of the strongly influenced by the application of
following sales? which of the following economic principles?
a. Arm’s-length sale unrepresentative a. Conformity
b. Illegal sale b. Encroachment
c. Distorted sale c. Escheat
d. Forced sale d. Substitution
251. In collection data, an appraiser concludes 258. The term lenders often use to refer to the
that comparable properties have increased relative amount of money they will lend
in value at a 6-pecent for a comparable that on a specific parcel of property is known
sold years ago for Php1,000,000 is: as:
a. Php60,000 a. Gross rent multiplier
b. Php120,000 b. Debt-to-equity ration
c. P123,600.00 (1.06)2 c. Value to loan ratio
d. P1,123,600.00 d. Loan to value ratio
Sol. 1M(1.06)2 259. Effective demand in the market place for
252. Which of the following actions is NOT housing varies MOST directly with which of
characteristic of market value? the following conditions?
a. Sale as soon as possible a. Purchasing power
b. Well informed buyers b. Interest rates
c. Typical financing c. Lis pendens
d. Typically motivated sellers d. Escheat
253. Which of the following factors is NOT 260. A worn path crosses an owner’s
normally considered to affect the supply property. What legal doctrine would require
of real estate? a potential purchaser to take note of the fact
160
 that there may be an unrecorded
prescriptive easement against that
property?
a. Actual notice
b. Constructive notice
c. Lis pendens
d. Escheat
261. An individual owner of a condominium unit
is in default on payment of the property
taxes to the local government Of the
following choices, which is the only
available to the taxing authority?
a. Levy the tax on the entire condominium
project
b. Procedure against the individual unit
c. Place a lien on the common areas
d. Foreclose against the homeowners
association
262. The legal right of government to acquire
private property for a public use or purpose
with just compensation is known as:
a. Nothing
b. Air rights only
c. Everything below the surface only
d. Every above and below the surface
263. In regard to the legal concept of land, what
is a landowners entitled to in additional to
the surface rights?
a. Nothing
b. Air rights only
c. Everything below the surface only
d. Everything above and below the
surface
264. The term real estate is generally
a. Air and sub surface rights
b. Surface rights only
c. Machinery and equipment
d. Legal interests and rights inherent in
ownership
265. Which of the following activities is NOT a
public limitation on real estate
a. Building codes
b. Zoning
c. Adverse possession
d. Fire codes
266. If the metes and-bounds method of
legally describing land is being used, which
of the following statement is CORRECT?
a. The straight point must be an natural
benchmark
b. There must be a define point of
beginning
c. Monuments cannot be used as part of
the description
d. No other methods, such as lot-and-
block, can be used as part of the
description
267. Which of the following terms refer to the
legal interest belonging to a person who
is leasing property from someone else?
a. Leased fee estate
b. Leasehold estate
c. Fee simple estate
d. Lesee’s estate
268. Which of the following terms refers to the
stages that a neighborhood goes through
over time?
a. Revitalization
b. Leasehold cycle
c. Life cycle
d. Change
269. The term appraisal refers to:
a. The process of estimating the market
value of property
b. The valuation of a market and how it
affects property values
c. The process of estimating the most likely
sales price of a property
d. The act of process of developing an
opinion of value
270. The date of valuation for an appraisal is
determined by which of the following?
a. The actual date the appraisal is signed
b. The date the appraisal assignment is
accepted
c. The date the property is actually
inspected
d. Whatever date is specified in the
appraisal report
271. What is the PRIMARY purpose of economic
base analysis?
a. To forecast future economic growth
in an area and divided that growth
between basic and non-basic
industries
b. To forecast changes in local zoning
ordinances
c. To determine property tax rates and the
likely amount of tax due on property
d. To forecast inflation rates
272. In using the sales comparison approach,
the appraiser finds that in term of location,
sale1 is superior to the subject property but
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 is inferior to sell#2. The correct procedure a. Unit-in-price
would be to adjust: b. Quantity survey
a. Both sales down to the subject c. Comparative unit
property d. Trade breakdown
b. Both sales up to the subject property 278. The cost approach to value takes into
c. Sale#1 down and selle#2 up consideration all of the following factors
d. Sale#1 up and sale#2 down EXCEPT:
273. A single-family residential located on a busy a. Value of the land
street rents for Php500 per month less than b. Replacement (Reproduction) cost of the
similar rental properties located on other improvements
streets in the same area. The average c. Original sales price
gross rent multiplier in this neighborhood id d. Physical defects
110. What is the lump peso adjustment for 279. When using cost approach to value, an
the locational obsolescence of the appraiser should value the land as though:
residence? a. It has been improved with a building
a. P500 b. It is currently being used with an interim
b. P6,000 use
c. P50,000.00 c. It is vacant and available for highest
d. P55,000.00. and best use
Sol. 5k × 110% d. Zoning ordinance are not
274. The adjustment in the sales comparison 280. A tract of land containing four hectares
approach that involves comparing two recently sold for Php600 per square meter.
properties with similar feature and What is the estimated land value?
characteristics but different date of sale is a. P600,000.00
referred to as the: b. P2,400,000.00
a. Loan closing adjustment c. P6,000,000.00
b. Time adjustment (market d. P24,000,000.00
contributions) Sol 600 × 40,000
c. Appreciation in value adjustment 281. What is the correct percentage of accrued
d. Time value of money adjustment depreciation for a 15-year old building if the
275. The building cost method that finds the cost building has an effective age of 20 years
of the component parts of a building through and a remaining economic life of 30 year?
standard cost estimated and then adjusts a. 20 percent
for the condition of the component, time and b. 30 percent
location is known as the: c. 40 percent
a. Unit-in-place method d. 60 percent
b. Quantity survey method 282. What term applies to the rent specified in a
c. Break-down method lease?
d. Comparative unit method a. Based rent
276. Maria’s house was built 12 years ago. b. Market rent
Because he keeps it in excellent condition, c. Contract rent
it shows only as much wear as a typical d. Gross rent
five-year-old house. Maria’s house 283. The sale comparison approach is said to
therefore has an effective age of: be most reliable when of the following
a. 5 years market exist?
b. 7 years a. Active market
c. 12 years b. In acted market
d. 17 years c. Buyer’s market
277. Which of the following methods is the d. Seller’s market
MOST detailed in estimating the costs of 284. Numerous elements should be identified
reproducing abuilding as part of the cost when an appraiser is attempting use the
approach to value? sale comparison approach to value.
162
 Which of the following list BEST explains
elements of comparison?
a. Demand, supply, utility, transferability
b. Physical, functional, economic, location
c. Date of sale, location, physical,
condition of sale
d. Location, location, location location
285. What term is used to describe tangible and
intangible factors that enhance the
desirability and thus add to the value of real
estate?
a. Amenities
b. Goodies
c. Enhancements
d. Negative externalities
286. In the short run, which of the following
conditions has the MOST effect on real
estate price?
a. More changes in demand than changes
in supply
b. More changes supply than in demand
c. More inflation than demand
d. More sellers than buyers
287. What term is used to describe the value to a
typical investor?
a. Market value
b. Investment value
c. Sale value
d. Use value
288. Which of the following statements
applies to a property with
nonconforming use?
a. The existing nonconforming use is the
highest and best use
b. A nonconforming use is likely to arise
from changes in zoning
c. A nonconforming use property may be
under improved but cannot be over
improved
d. In the sales comparison approach, an
appraiser
289. Owner A gives owner B an easement
across A’s land to shorten the distance B
has to travel to each land he owns. The
land B owns has benefited by this
easement and is known as the:
a. Dominant estate
b. Service estate
c. Lien estate
d. Estate in gross
290. A description of the surface feature of a
parcel of land such as elevation or
drainage is known as its:
a. Location
b. Plottage
c. Topography
d. Restriction covenant
291. An owners of a parcel of land leases the
land to a tenant for ten years. The next day
the owner sells the land to a thirty. Which of
the following statements is CORRECT?
a. The new owner has an option as to
whether to accept the terms of the lease
b. The tenant may voluntary terminate the
lease
c. The tenant’s leasehold is not affected
d. The term legal interest is automatically
terminated by operation of law
292. Which of the following approaches to value
uses market data?
a. Income approach
b. Direct sales comparison approaches
c. Cost approach
d. All three approaches
293. Which of the following estimates would
result in a capitalization rate of 20
percent?
a. Potential gross income P1,000,000,
value P5,000,000
b. Effective gross income P1,000,000,
a value P5,000,000
c. Net operating income P1,000,000,
value P5,000,000
d. Cash flow P1,000,000, value
P5,000,000
294. In estimating the net operating income of a
building one of the necessary steps is the
calculation of other income”. Which of the
following items is NOT considered other
income?
a. Parking fees
b. Telephone switchboard services
c. TV closed-circuit connection fees
d. Escalation clauses in leases
295. A leased interest may be created only if
the contract rent is:
a. Greater than market rent
b. Equal to market rent
c. Less than market rent
d. A flat rent
296. Suppose a property’s NOI and value are
expected to change over an investment
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 holding period. What would be the
relationship between the overall rate and
the property yield rate?
a. The overall rate would be less than the
property yield rate
b. The overall rate would be equal to the
property yield rate
c. The overall rate would be greater than
the property yield rate
d. More information is required determine
the relationship between the overall rate
and the property yield rate
297. Which of the terms BEST describes a
pattern or income cash flow that is regular
and predictable?
a. Reversion
b. Lease
c. Annuity
d. Payment
298. A property has NOI of Php1,000,000,
interest payment of Php800,000 and
principal payments of Php100,000. What is
the debt coverage ratio?
a. 0.80
b. .0.90
c. 1.11
d. 1.25
299. A small restaurant contains an oven and a
freezer, each of which cost Php9,000 and
has estimated useful life of 10 years
Carpeting costs Php35,000 and has an
estimated usefull life of seven years. What
annual reserve for replacement would be
appropriate for these items?
a. P5,900.00
b. P6,070.00
c. P6,800.00
d. P5,000.00
300. If a property has an overall capitalization
rate of .095 and a mortgage at a 75 percent
loan-to value ratio having an annual
mortgage constant of .11, what is the equity
dividend rate?
a. 0.05
b. 0.06
c. 0.07
d. 0.09
301. The term effective rate refers to the:
a. Loan constant on a mortgage
b. True rate of return considering all
relevant finance expenses
c. Interest rate after inflation is considered
d. Rate at which future payments are
discounted to present cash flows
302. What is the present value of a 40 years net
income of Php10,000 per year if payment
are in advance and the net income is
discounted at a rate of 12 percent?
(Factor=8.233030)
a. P82,330
b. P82,438
c. P92,210.00
d. P92,330.00
303. When a property’s vacancy and bad debts
is building from the property’s gross
(potential) income which of the following
incomes is derived?
a. Effective gross income
b. Net operating income
c. Taxable income
d. Cash flow income
304. The basic equation in the income
approach to value is:
a. Rate divided by income equal value
b. Income divided by rate equals value
c. Rate times income equals value
d. Rate plus income equals value
305. One of the standard techniques by
appraisers when analyzing the income of
property is to divided the income being
generated between the land and the
improvements and then to capitalize the
residential income to the improvements into
a estimate. Such a techniques is referred to
as the:
a. Land residential technique
b. Building residential technique
c. Property residential technique
d. Plottage residential technique
306. The income approach to value:
a. Is based on the principle of anticipation
b. Translated the ability of property to
generate income into an indication of
value
c. Requires an estimate of net operating
income of property
d. All of the above are correct
307. The lump sum that an investor at the
termination an investment is referred to as
the:
a. Remainder
b. Reversion
c. Lump sum
d. Gain
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308. Which of the following land uses is Which of the following condition is NOT a
generally NOT considered income certain the highest and best use of land?
property? a. Physical possible
a. hotels b. Legally permissible
b. Undeveloped land c. Financially feasible
c. Office buildings d. Supply and demand
d. Apartment buildings 314. When two or more individual parcels are
309. A collection of retail store which a common legally encumbered by one mortgage and
parking area generally one or more large one of the parcels is to be freed from the
department, discount, or stores; and encumbrance, the instrument used is a (n):
sometimes including an enclosed mall or a. Partial release of mortgage
walkway, is commonly referred to as a: b. Satisfied agreement
a. Mall c. Sub assignment of mortgage
b. Retail complex d. Estopped certificate
c. Mixed use development 315. Which of the following statement is NOT
d. Shopping center necessarily correct about a local zoning
310. What is the distinction between the terms ordinaries?
market price and market value? a. Zoning can establish height restriction
a. Market price is synonymous with on building
replacement cost, while market value is b. Zoning is often used to separate
the same as assessed value income incomparable land uses
b. Market price is what the seller asks for, c. Zoning is often used separate
while market value is what the buyer incompatible land uses
actually pays d. Zoning establishes setback
c. Market price is what the property requirements for improvements on land
sells, for, while value is what sales 316. A mortgage secured by a legal claim
price should be to a typical buyer against two or more separate properties is
d. Market price is what is currently owned referred to as a:
the property, while market value is what a. Wraparound mortgage
is bought for b. Participation mortgage
311. Under which of the following conditions c. Blanket mortgage
would an appraiser appraise the value of d. Ground lease mortgage
the property as of future date? 317. The property tax due on real estate
a. If the current use is the highest and best calculated by what method?
use a. A condominium the tax rate by the
b. If the appraiser uses all three assessed value
approaches to value b. Multiplying the tax rate by the
c. If the market is stable and there is no assessed value
inflation c. Dividing the tax rate by the most
d. If the value is appropriately defined probable sales price
for a future date of the value d. Multiplying the rate by the most probable
312. What type of analysis identifies land sales price
uses that are legally permissible, 318. Which of the following statement is
physically possible and financially CORRECT in regard to a condominium
feasible? form of ownership?
a. Sensitivity a. A condominium is a legal form of
b. Highest and best use property ownership
c. Feasibility b. A condominium provides each unit
d. Supply and demand owner with a propriety lease
313. Included in the definition of highest best use c. A condominium provides the same legal
are certain tests or criteria that must be met. interest as a cooperative

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 d. A condominium may not be owned by
tenants in common
319. What is the tax rate in all kinds of Real
properties?
a. 1%
b. 2%
c. 5%
d. 3%
e.
APPRAISER’S /BROKER EXAM REVIEWER
MOCK EXAM SET D-4
320. List the physical characteristic of land
that best fits each description.
1. Land is not standardized.
2. Location of land cannot be change.
3. land is durable and does not wear out.
321. List the economic characteristic of land
that best fits each description.
1. Investments in land are long term.
2. Change in land will affect its value.
3. Buyers prefer some locations over
others.
4. The supply of land is fixed.
322. Are the following statements true (T) or
false (F)?
1. F land’s indestructibility makes it easily
regulated by local government
2. F Scarcity means that we do not have
enough land to satisfy demand
a. F The characteristic of modification
means that the changes will always
increase a property’s value.
MULTIPLE CHOICE
323. The income approaches would be best
used in appraising a (n)
a. Single-fanfily residence.
b. Church
c. Apartment building.
d. School
324. The sales comparison ( market data)
approach can be used effectively in an
appraisal if
a. Current construction costs are available.
b. The property generates income
c. Depreciation for the property can be
calculated.
d. There are recent sales of similar
properties.
325. One of the concepts used in appraisal is
“highest and best use,” which refers to
a. The property’s current use.
b. The legal use that will yield the
through long standing use.
c. Acquiring title to the property through
long standing use.
d. Acquiring a zoning variance for a more
valuable use.
326. Which of the following methods is used to
calculate the gross rent multiplier?
a. Divided the sale price by gross rent.
b. Multiply the capitalization rate by net
income
c. Divide net income by the capitalization
rate
d. Multiply gross rent by the capitalization
rate
327. Which of the following steps is used in the
cost approach to estimating property value?
a. Estimate the market value of the land
b. Determine the capitalization rate
c. Determine the vacancy rate
d. Identify several similar buildings have
recently sold
328. A property appraisal is the
a. Selling price
b. Depreciable basis
c. Estimate of market value
d. Utility value.
329. In the cost approach to estimating value,
the type of depreciation that is always
considered incurable is
a. Physical deterioration
b. Functional obsolescence
c. Economic obsolescence.
d. Market obsolescence.
330. What is the gross rent multiplier for a
property if the annual gross income from a
building is P66,000, net operating income is
P29,500 And the building sells for P561,00?
a. 6.5
b. 7.2
c. 8.1
d. 8.5 (561,000/66,000)
331. To determine the listing price of a
residential property, an most likely would
use a (n)
a. Income analysis
b. Cost analysis
c. Competitive market analysis
d. Assessment analysis
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332. To determine the listing price of a church, 339. The last house in a new development sold
an appraiser most likely would use a (n) for twice the price paid for the first houses
a. Income analysis sold in the same development. The higher
b. Cost analysis price is a result of
c. Market analysis a. Supply and demand
d. Data comparison analysis. b. Conformity
333. If an expensive home is built in an area c. Progression
consisting of less expensive homes, its d. Contribution
value will be affected by the concept of. 340. which of the following appraisal method
a. Functional obsolescence requires that the appraiser calculate the
b. Regression amount of accrued depreciation
c. Contribution a. cost approach
d. progression b. income approach
334. In performing an appraisal of single-family c. sales comparison approach
residence, the appraiser reduced its d. gross income multiplier
value because of functional 341. Which of the following is considered
obsolescence. The appraiser was referring economic obsolescence?
to a. A leaky roof
a. Proximity to a waste incinerator b. Abandoned building in the area
b. Special assessment on the property c. Outmode plumbing fixture
c. A cracked foundation. d. A cracked foundation
d. A one-car garage. 342. A group investor making very high
335. To determine the listing price of an office profits from shopping most likely would
building, an appraiser most likely would concerned with the principle of
use a (n) a. Conformity
a. Income analysis b. Progression
b. Cost analysis c. Competition
c. Market analysis d. Contribution
d. Data comparison analysis. 343. An appraiser calculates the replacement
336. According to the principle of conformity, cost of building when using the
the highest value for a house obtain if its a. Cost approach
location is b. Sales comparison approach
a. Next to an office building c. Income approach
b. In a residential development d. Gross rent multiplier
c. Near a shopping center 344. An appraiser estimating the value of
d. Across the street from a church property with a net income of P40,000
337. Which of the following would an appraiser decides to use an 8 percent capitalization
most likely consider function rate instead of a 10 percent rate. Use of the
obsolescence? lower rate result in
a. Deterioration of the property a. A 2 percent decrease in the appraised
b. Location next to a noisy factory value
c. A leaky roof b. A P1000,000 decrease in the appraise
d. A house in an exclusive area with a in the appraise value
one car garage c. A P1,000,000 decrease in the appraise
338. A competitive market analysis (CMA) is value
frequently prepared by a real estate agent d. No change in the appraised value.
to estimate the most probable sales price
of a property. This method is based on the Solution
a. Gross rent multiplier 40,000/8% = 500,000
b. Cost approach 40,000/10% = 400,000
c. Market approach 5000-4000 = 100,000
d. Income approach
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345. The economic effect of an improvement d. Broken windows
on a property’s value is indicated by the 352. For a property to have all of the following
appraisal principle of must be present except
a. Reproduction a. Competition
b. Contribution b. Utility
c. Progression c. Demand
d. Diminishing returns d. Transferability
346. All of the following statements describing 353. An incurable cause of property
the capitalization rate are false except depreciation is
a. The rate is divided by net income to a. Physical deterioration
determine value b. Functional obsolescence
b. An increase in the rate result in an c. Zoning obsolescence
increase in value d. Economic obsolescence
c. The rate increase when the 354. Which of the following is not an approach
investment’s risk increase to estimating property value?
d. The rate represents the return on the a. Income approach
investment b. Cost approach
347. An appraise who calculates the cost of c. Assessment approach
reproducing a building is finding the d. Sales comparison approach
a. Present of the building 355. An investor is willing to pay a premium for a
b. Current cost to duplicate the building commercial property because he believes
c. Depreciated value of the building there will be an increase in the area’s
d. Current cost to build a similar building population. The investor’s decision is based
cheaper materials on the concept of
348. A property has monthly net income of a. Anticipation
P1,800, and appraiser believes a 9 percent b. Competition
rate of return is appropriate for the property. c. Conformity
Its value would be estimated at d. Contribution
a. P20,000.00 356. An appraiser estimating the value of
b. P21,600.00 vacant land is using the
c. P240,000.00 (1800 × 12)/9% a. Cost approach
d. P2,400,000.00 b. Income approach
349. An investor who follows the concept that c. Sales comparison approach
“the whole is worth more than parts” is d. Gross income multiplier approach
using the concept of 357. When using the sales comparison
a. Depreciation approach, all of the following important
b. Progression characteristics in selecting comparables
c. Plottage excepts
d. Contribution a. Sales dates of the properties
350. An appraiser who calculates the cost b. Location of the properties
constructing an older building using modern c. Cost to the sellers
techniques and materials is finding d. Number of rooms
building’s 358. An investigates the zoning code for a
a. Unit cost property determine how much should be
b. Replacement cost offered for the property. The investor’s
c. Reproduction cost decision will be based on the concept of
d. Operating cost a. Anticipation
351. Physical deterioration is a result of all of the b. Competition
following except c. Highest and best use
a. Poor floor plan d. Contribution
b. Cracked sidewalks
c. Peeling paint
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359. To calculate net operating income in an b. Divide the purchase price by the
appraisal, all of the following are deductible gross monthly income
from gross effective income except c. Divide the capitalization rate by the
a. Loan payments monthly gross income
b. Repairs d. Divide the annual gross income by the
c. Cleaning expenses purchase price
d. Legal fees 367. Using the cost approach an appraiser
360. Which of the following is deducted from determines that the value of a property is
potential gross income to calculate P230,000. If the appraiser estimated the
effective when using the income approach? cost of replacing the structures on the
a. Legal expenses property at P160,000 and the value at
b. Repairs P90,000, what was the amount of accrued
c. Loan payments estimated by the appraiser for the property?
d. Vacancy loss a. P10,000
361. Estimating the value of property requires a b. P20,000 (160K+90K-230K
systematic set of procedures. The first in c. P60,000
the appraisal process is typical to d. P90,000
a. Develop an appraisal plan 368. An apartment building has six units that rent
b. Collect general data on the area for P750 a month. If the purchase price of
c. Define the purpose of the appraisal the property is P480,000 the property’s
d. Estimate the value of the land annual gross income multiplier is
362. What is the value of a property that a. 7
produces gross income of P94,000 and the b. 9 (480K)/(750×6×12)
GIM is 8.5? c. 54
a. P66,583 d. 10
b. P110,588 369. An appraiser calculates a separate value
c. P132,706 for the land when using the
d. P799,000 (94K×8.5) a. Sales comparison approach
363. An appraiser would use the cost approach b. Income approach
as the primary appraisal method for a c. Cost approach
a. Parking garage d. Gross rent multiplier approach
b. Condominium 370. If an appraiser uses more than one
c. Shopping mall appraisal method and assign deferent
d. Public school weights to results of each, she is using
364. An investor purchased a property for a. Substitution
P450,000. If the property has annual net b. Contribution
income of P36,000, the capitalization rate c. Replacement
on the investment is d. Reconciliation
a. 6.6 percent 371. An apartment building has a capitalization
b. 8 percent 36K/450K rate of 6 percent. If the expenses on the
c. 9 percent property increase by P6,000 while the rent
d. 12.5 percent remain the same, the property value will
365. If appraising a newly single-family house, a. Remain unchanged
an appraiser would be most interested in b. Increase by P6,000
the c. Decrease by P36,000
a. Cost constructing the house d. Decrease by P100,000 (6K/6%)
b. Capitalization rate of the house
c. Location of the house APPRAISER’S/BROKER’S EXAM
d. Gross rent multiplier REVIEWER
366. To calculate the monthly gross rent EXAM SET E -3 (PAST EXAMS)
multiplier of a property
a. Multiply the monthly gross income by 12
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372. Land survey always uses a reference point d. 20% interest per annum
which could be: 378. Landless extended for justifiable cause, the
a. Bureau of Lands Location Monument period of completion of development of a
b. Municipal Location Monument subdivision project, counted license to sell,
c. Provincial Boundary Monument is
d. City Boundary Monument a. Six months
e. All of the above b. Twelve months
373. Amendment to the master deed of c. Eighteen months
condominium project approved by majority d. Twenty four months
of registered unit owner shall be based on: 379. Segregate of return earned by an investor
a. Number of condominium units which does not included allowance for
b. Floor area of ownership capital recovery is:
c. Total area of condominium units a. Discount rate
d. Any of the above b. Interest rate
374. Same owner of a 10-door apartment rented c. Recapture rate
a unit to Emma for a payment for one year. d. Investment rate
Under the law on lease, Emma, without the 380. Has ruled that all agricultural lands that are
consent of Jane may perform of the already classified as commercial, industrial
following acts, excepts: or residential before June 15, 1988 no
a. Sublease the unit longer need any conversion clearance even
b. Assign his rights if it is still devoted to agricultural activity
c. Suspend payment if Jane fails to make a. Republic Act 6657
the necessary repairs b. DOJ Opinion No. 44, Series of 1990
d. Demand payment reimbursement c. R.A 7279
consulting one half the value of the d. PP 27
useful improvements introduce in good 381. I paid real property tax is subject to 2% per
faith. month interest, up to a maximum period of
375. A case of sale of real property paid under a. 12 months
deferred payment basis the payment of the b. 24 months
documentary stamp tax shall accrue upon. c. 36 months
a. Notarization of Transfer document d. Until paid
b. Execution of the Deed of Absolute Sale 382. Filipino citizen can acquire by patent
c. Executive of Contract to Sell agricultural lands of the public domain not
d. Payment of the full amount exceeding:
376. Principle of ownership which mandates a. Five hectares
property owners to use their property in a b. Seven hectares
manner that will promote not only their c. Ten hectares
interest but also the general welfare d. Twelve hectares
a. Principle of social justice 383. A former natural-born Filipino citizen can
b. Principle of progression acquire urban land for business purposes
c. Stewardship principle no exceeding:
d. Principle of conformity a. 1,00 sq.m
377. Under BIR Revenue Regulation No. b. 10,000 sq.m
1:7,2003, the seller of payment home who c. 5,000 sqm
failed to utilize the proceeds of the sale to d. 3 hectares
acquire a new residence within 18 months 384. It is a legal principle that if at the end of the
from sale shall be assessed additional lease period the lessee continuous
deficiency capital gains inclusive penalties occupancy with the acquiescence of the
and lessor and without notice to vacate, it is
a. 10% percent per annum understood that there is an implied new
b. 25% interest per annum lease.
c. 15% interest per annum a. Pactum de non aliendo
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 b. Pacto de retro and additional rate shall be added to an
c. Pactum Commisorium established residential zonal value
d. Tacita Reconducta a. 10%
385. An authority given by the developer to a b. 20%
broker to look for a supplier of backfilling c. 25%
materials who shall be with developed lot is: d. 15%
a. Procurement agency 391. The rate of real estate tax in municipalities
b. General brokerage within Metro Manila is not more than:
c. Exchange agency a. One-half percent assessed value
d. Sales agency b. Two and a half percent of assessed
386. An agreement where the consideration of a value
contract is deposited with a third party who c. One percent of assessed value
is authorized to release said consideration d. Two percent of assessed value
to the seller the latter has compiled certain 392. The payment of estate tax, an allowed
condition is: deduction to the gross estate of a decedent
a. Option is funeral expenses which is
b. Escrow a. 5% of gross estate or P200,000.00
c. Contract to sell whichever is lower
d. Hold over clause b. 5% of gross estate or P200,000.00
387. A contract where real estate is whichever is higher
hynothecated to secure an obligation where c. 10% of gross estate or P200,000.000
the creditor is given the right to possess the whichever is lower
property and collect the fruits therefore is d. 10% of gross estate or P200,000.00
known as: whichever is higher
a. Equitable mortgage 393. spouses who were married after the
b. Real estate mortgage effectivity of the Family Code without any
c. Antichresis pre-nuptial agreement shall be governed by:
d. Blanket mortgage a. Conjugal partnership of gains
388. It a deceased owner of a land died b. Absolute separation of property
instestate without any obligation, the c. Absolute community of property
document to be executed to transfer title to d. Any of the above
the sole her is: 394. The following persons are disqualified to
a. Extrajudicial settlement of estate become lessee except:
b. Affidavit of adjudication a. Lawyers with respect to property of their
c. Deed of donation clients under litigation which they take
d. Deed of conveyance part.
389. A former natural born Filipino citizen may in b. Executors and administrators of
addition to acquiring residential land under properties
B.P. 185 may still acquire land for business c. Husband and wife when there is
or other purposes under R.A. 8179 provided separation of property in marriage
the real does not exceed settlement and when there is judicial
a. One (1) hectares of urban land or 2 separation of property
hectares of rural land d. Guardian with respect to property of
b. 5,000 square meters of urban land or ward under guardianship
3 hectares of rural land 395. The priority right of a tenant to buy the land
c. 5, 000 square meters of urban land or 5 located in an urban land reform area is
hectares of rural land known as:
d. 1,000 square meters of urban land or 3 a. Tenant’s possessory right
hectares of rural land b. Tenant’s retention right
390. Per BIR 28-98, the ground floor of a c. Tenant’s incremental right
condominium project shall be commercial d. Tenant’s right of first refusal

171
396. A petition may filed by one or more owners a. The down payment
of condominium project when damage to b. The contract price
the project has rendered one-half or more of c. Selling price
the units untenantable and unit owners d. None of the above
holding more than 30 percent interest in the 403. Under R.A.6732, administrative
common areas are opposed to repair or reconstitution of lost destroyed original
restoration project: copies of certificates may be availed of
a. 30% when the lost or destroyed certificates in the
b. 40% registry of deeds consist of at least:
c. 50% a. 10% of all titles in the registry
d. 60% b. 40% of all titles in the registry
397. 18% percent interest per annum, how much c. 20% of all the titles in the registry
is the interest of P500,000.00 for 65 days d. 30% percent of all titles in the registry
where number of days in a year is 360? 404. When the loan is fully amortized by equal
a. P15,000.00 monthly payment the amount applied to the
b. P16,027.70 principal:
c. P16,250.00 a. Decreases while interest payment
d. P90,000.00 increases
398. The capital gains tax due on the sale of b. Increases while interest decreases
P2,000,000.00 property with P500,000.00 c. Increase by a constant amount
initial payment is: d. None of the above
a. P100,000.00 405. To avail of exemption from capital gains in
b. P120,000.00 the sale of a family home, the seller is
c. P20,000.00 required, among others, to notify the BIR
d. P30,000.00 (500K×6%) through a prescribed form his intention to
399. The best evidence fee simple ownership is avail of the exemption. The notice must be
a Torrens Title because it is indefeasible filed within:
and : a. 15 days from the date of sale
a. Imprescriptible b. 30 days from the date of sale
b. Binding against the whole world c. 60 days from the date of sale
c. Has priority against a tax declaration d. None of the above
d. All of the above 406. When the interest of participation of
400. Under R.A. 8791, the maximum redemption condominium unit owners in the common
period after extrajudicial foreclosure of a areas in common is proportionate, the
mortgage executed by a corporation in favor formula applied is.
of the bank is: a. Unit area divided by total area of the
a. 3 months common area
b. 6 months b. Unit area divided by total area of all
c. 12 months condominium units
d. none of the above c. Unit area divided by total area of all
401. A clause used in leases and mortgages condominium units and common area
that cancel specified right upon the d. Unit area divided by total floor area of
occurrence of condition such as condominium building
cancellation of mortgage upon repayment of 407. On bank’s acquired assets which part of its
mortgage loan: real estate inventories at the close at the
a. Acceleration Clause close of its accounting period shall be
b. Defeasance Clause classified as:
c. Automatic Redemption Clause a. Ordinary Assets
d. Hold over Clause b. Capital Assets
402. In sale with assumption of mortgage, the c. Fixed Assets
basis of the documentary stamp on the sale d. None of the above
is
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408. Total refund to buyer for developer’s failure
to complete the development within the
reglamentary period is equivalent to : (PD
957)
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
409. In the cost approach to 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 life divided by
effective age
d. Effective age divided by economic life
410. 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
411. A building is depreciated at 2.5% per year
on a straight line basis. What is the
estimated useful life of the building?
a. 30 years
b. 40 years (1/2.5%)
c. 50 years
d. 60 years
412. Several houses valued at P1,000,000.00
and P2,000,000.00 were built an area
where an existing house valued at
P300,00000 is located. As a result, the
value of the latter increased. The real estate
principle of value that applies to this
situation is called the principle of
a. Substitution
b. Improvement
c. Progression
d. Regression
413. Capital Gains Tax on the sale of real
classified as capital assets is a:
a. Creditable tax on the sale
b. Deductible item from income tax
c. Final withholding tax
d. Expanded withholding tax
414. The real estate broker is usually authorized
to do all of the following except:
a. Advertise the listing
b. Cooperative with brokers
c. Place for sale sign on the property
d. Bind the principal in a contract
415. When a property is sold to 2 or more
buyer’s the property goes to
a. Buyer in good faith and who first
registered with Register of Deeds
b. Buyer who pays the highest price
c. Buyer who was first in possession
d. None of the above
416. The position of trust assumed by the broker
as an agent for the principal is described as:
a. Trusteeship
b. Confidential
c. Fiduciary relationship
d. Code of conduct
417. If the property is an ordinary assets, what is
the applicable tax?
a. Capital Gains Tax
b. CWT
c. Percentage tax
d. Estate tax
418. Essential requirements of a Contract of
Sale.
a. Consent or meeting of the minds of
buyer and seller
b. Object or subject matter
c. Cause or consideration
d. All of the above
419. A stipulation which authorizes the mortgage
to appropriate the property as his own upon
failure of the debtor to fulfill the principle
obligations. This is void and of no legal
effect.
a. Pactum Commisorium
b. Pactum De Non Aliendo
c. Pacto de retro sale
d. Res Nullius
420. The type of loan wherein the lender has
some or complete control over the project
and the income for a certain period, part or
all which is assigned to him to amortize the
project, is:
a. Straight Loan
b. Flat Loan
c. Turn-key loan
d. Amortization loan
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421. The best evidence of ownership is: a. P225,000.00
a. Transfer Certificate of Title b. P281,250.00
b. Tax Declaration c. P140,625.00
c. Realty tax d. P112,500.00
d. Vicinity map 428. Using the 4-3-2-1 rule (depth rule) if a 5-
422. The Seller realized a 30% gross profit over hectare belonging to different owners was
his cost. If the property is sold at sold for P10,000,000.00 what is the sum
P1,950,000.00, the cost is: share of lot owners owning the first quarter
a. P1,365,000.00 abutting the road?
b. P1,350,000.00 a. P2,500,000.00
c. P1,650,000.00 b. P4,000,000.00
d. P1,500,000.00 c. P5,000.000.00
423. Registration of mortgage covering projects d. P6,000,000.00
can only be affected when the deed is 429. The maximum area of residential land
accompanied by a permit to mortgage (urban area) which a former natural born
issued by: Filipino citizen may acquire:
a. Local government unit a. 10,000 sq. m
b. Housing and Urban Development b. 500 sq. m
Coordinating Council c. 10 sq. m.
c. Home Insurance Guarantee Corporation d. 1,000 sq. m.
d. House and Land Use Regulatory 430. When a done of a parcel of land is a
Board stranger, the donor’s tax rate is:
424. The documentary stamp on lease of real a. 20%
estate is P3.00 for the first P2,000.00 or b. 6%
fraction thereof and additional: c. 30%
a. P0.50 for every P1,000.00 in excess for d. 25%
first P2,000.00 431. The collateral value of a house and lot
b. P1.00 for every P1,000.00 in excess package is determined by applying the:
for first P2,000.00 a. Economic Value
c. P1.50 for every P1,000.00 in excess for b. Assessed Value
first P2,000.00 c. Appraised Value
d. P2.00 for every P1,000.00 in excess for d. Loan to Value Ratio
first P2,000.00 432. The use of borrowed funds to increase
425. The selling price if house and lot is purchasing power is ideally to increase the
P800,000.00. if its appraised value of profitability of an investment is:
P720,000.00 and loan to collateral ratio is a. Limited Liability
80% what is it loan value? b. Debt coverage
a. P640,000.00 c. Leverage
b. P576,000.00 d. Interim financing
c. P720,000.00 433. The amount of family home equivalent to
d. P648,000.00 fair market value considered as allowable
426. The capital gains tax on the sale of deduction from the estate of a decedent:
P2,000,000.00 property with P600,000.00 a. P500,000.00
initial payment is: b. P1,000,000.00
a. P100,000.00 c. P2,000,000.00
b. P120,000.00 d. P750,000.00
c. P30,000.00 434. The estate Tax Return shall be filed and
d. P36,000.00 paid with the BIR within:
427. What is the cost of the fence with total a. 60 days from death of decedent
length of 75 meters, with height above the b. 90 days from death of decedent
ground of 2 meters and ½ meter below, if c. 120 days from death of decedent
cost square is P1,500.00? d. 180 days from death of decedent
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435. Under the Urban Land Reform Law (P.D. 441. Husband and wife can sell property to each
1517) an area is considered urban when it other in the fo9llowing circumstances
has a population density of at least 1,000 except when:
and where at least 50% of economically a. A separation of property was agreed
active residents are engage in non- upon in the prenuptial agreement
agricultural activities. b. There has been a judicial separation of
a. 500 residents per square kilometer property
b. 1,000 residents per square kilometers c. There has been a legal separation
c. 1,500 residents per square kilometers d. Spouses have been separated for
d. 2,000 residents per square kilometers more than 10 years (ANNULMENT)
436. An appraisal technique in which 442. In a sale of property on installment plan
comparative estimates are made between where buyer is not engaged in trade or
prices paid in actual transactions and the business, the application rate of tax is
current listings: based on
a. Cost Approach a. Gross Selling Price
b. Income Approach b. Fair Market Value
c. Market Approach c. A or B , whichever is higher
d. Economic Approach d. Assessed Value
437. The maximum term of loan under Pag-IBIG 443. Under RA 7279__ shall be restored to only
loan amounting to P6 million when modes of acquisition have been
a. 20 years exhausted.
b. 25 years a. Negotiated Purchase
c. 15 years b. Land Consolidation
d. 30 years c. Expropriation
438. A subdivision plan needs only the approval d. Joint Venture Agreement
of the Land Registration Authority or Land 444. The schedule of market value for ad
Management Bureau to effect segregation valorem tax in municipalities outside Metro
of tiles when the resulting number of lots is: Manila is prepared by
a. Nine (9) or less a. Municipal Assessor
b. Ten (10) or less b. Provincial Assessor
c. Twelve (12) or less c. Sangguniang Panlalawigan
d. Fifteen (15) or less d. Provincial Treasurer
439. A four storey building has a regular shape 445. Property escheated to the government is
street frontage of 10 meters and depth of 20 considered as
meters, and height of 16 meters. If cost to a. Public Dominion
construct is P4,000.00 per cubic meter, b. Patrimonial Property
what is the reproduction cost of the new c. Regalian Property
building? d. Any of the above
a. P12,800,000.00 446. The use borrowed funds to increase
b. P13,200,000.00 purchasing power is ideally to increase the
c. P12,560,000.00 profitability of
d. P15,120,000.00 an investments:
440. In case of refuse by the lessor to accept a. limited Liability
payment of the rental agreed upon, the b. Debt Coverage
lessee may either deposit, by way of c. leverage
consignation, the amount in: d. Internal Financing
a. Court 447. The income approach in estimating the
b. City Municipal Treasury value of an investment property is an
c. Bank in the name of the lessor application of
d. Any of the above a. Principle of substitution
b. Principle of progression
c. Principle of contribution
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 d. Principle ofAnticiplation expropriating is required to initially pay an
448. Under Urban land Reform Act (PD1517), amount equivalent to 100% of the
the acquisition of lots of varying ownership a. Offered amount
through, among others, expropriation or b. Appraised Value
negotiated purchase for the purpose of c. Assessed Value
planning is d. Zonal value
a. Land Banking 456. The following are of property descriptions
b. Land Exchange ordinary used in deeds, contracts, to sell
c. Land Use Plan and leases, except:
d. Land Assembly a. Rectangular survey
449. The principle of value which states that the b. Lot number
value of a property tends to be enhance c. Bearing and azimuth
where is reasonable homogeneity in use d. Monuments
a. Principle of highest and Best Use e. Metes and bounds
b. Principle of Conformity 457. Refers to an Imaginary line connecting from
c. Principle of Increasing Return a reference point ‘I” of any given lot plan
d. Principle of progression a. Cardinal direction
450. It refers to a grid of north and south b. Boundary line
(meridians), and east and west (Parallels) c. Azimuth
lines surveyed by the government in d. Tie line
identifying Philippines boundaries. 458. In the absence of any provision in the
a. Meters and Bounds master deed of a condominium project, the
b. Rectangular survey share of the unit owners in the common
c. Cardinal Direction area is
d. Monuments a. Proportionate to his unit area
451. it is ratio that expresses the relation gross b. Based on the value of his unit
income and sales price of a property c. Equal to all other unit
a. capitalization d. Deed by the majority of owners
b. gross Income Multiplier e. Determine by the condominium
c. Recapture corporation
d. Effective Gross Income 459. The right of an owner-lessor to receive the
452. A loss in value from any cause” is a correct rent and reversion of the property at
common definition of the end of the lease is called
a. Effective Age a. Fee simple
b. Functional Obsolescence b. Leasehold
c. Depreciation c. Lease fee estate
d. Economic Obsolescence d. Net Lease
453. The value placed on taxable property by the 460. In case of false or fraudulent Estate, Donor
assessor for ad valorem purpose is: or Capital Gains “Tax BIR form was willfully
a. Appraised Value made, how much
b. Assessed Value a. 20%
c. Fair market Value b. 30%
d. Economic Value c. 25%
454. The following are methods of acquiring d. 50%
lands for purposes of Urban Development 461. For purposes of determining whether a
and Housing Act, Except: seller transferor can be considered as
a. Foreclosure habitually engaged in real estate business,
b. Joint venture agreement he should offer satisfactory evidence that
c. Negotiated purchase the consummated at least 6 taxable real
d. Land swapping estate transactions during the preceding
455. Where a conflict arise on the issue of just year.
compensation, the concerned agency a. Five
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 b. Six a. Capital Asset
c. Eight b. Ordinary Asset
d. Ten c. Fixed Asset
462. the articles of Incorporation of homeowners d. Intangible Asset
association is registered with: 469. Subdivision and Condominium Buyers
a. securities and Exchange Commission Protective Decree
b. housing and Land Use Regulatory a. PD 200
Board b. PD 1996
c. home Guaranty Corporation c. PD 957
d. HUDCC d. PD 1081
463. Conversion permit of agricultural land of not 470. Urbanizable areas refer to sites and lands
more than 5 hectares shall be approved by which, considering present characteristics
the: and prevailing condition, display marked
a. Municipal agrarian Reform Office and great potential of becoming urban
b. Provincial Agrarian Reform Office areas within the period of
c. Secretary, DAR a. Two (2) years
d. Regional Agrarian Reform Office b. Three (3) years
464. If TCT has an annotation that says “subject c. Five (5) years (per RA 7279)
Rules 74, Section 4 of the Rules of Court; it d. Ten (10) years
means that the property is an inherited and 471. The following are modes of acquiring lands
any heir unduly deprived of his lawful for the purposes of the Urban Development
participation in the estate has 2 years assert and Housing Act of 1992 except.
his right over said property. a. Joint Ventura agreement
a. Two 2 years b. Negated purchase
b. Four 4 years c. Community mortgage
c. Five 5 years d. Accretion
d. Ten 10 years 472. In mixed use condominium projects, the
465. The acquisition of the land in advance of master deed may be amended by simple
actual need based on present value for majority of the owners. Majority is based on:
future planned development is referred to in a. Number of Condominium units
the Urban Land Reform Law as: b. Floor area of ownership
a. Land Assembly c. Total area of condominium units
b. Land Banking d. Any of the above
c. Urban Renewal 473. Conjugal partnership can be dissolved by:
d. New Settlement Development a. Legal Separation
466. The type of listing that gives the real estate b. Annulment of Marriage
broker the greatest protection c. Judicial Degree of Separation of
a. Exclusive Agency Listing Property
b. Net Listing d. Any of the Above
c. Exclusive Right to Sell Listing 474. Amended to the master deed of a
d. Multiple Listing condominium project approved by majority
e. Open Listing of the registered owners need also be
467. The following are determinants of value in approved by the city/municipal engineer
appraisals of really , except and:
a. Contribution a. Local government
b. Demand b. Housing and Urban Development
c. Purchasing Coordinating Council
d. scarcity c. Housing and Land Use Regulatory
468. Property held by the owner as inventory or Board, HLURB
stock in trade of buy and sell business or d. LAND Registration Authority
used in connection with trade business or 475. Unless revalidated, tax credit life is up to:
source of income is referred to as a. One (1) year
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 b. Two (2) years 483. A taxpayer has____ to redeem his real
c. Five (5) years property which was levied and subsequently
d. Four (4) years forfeited and acquired by the Local
476. The maximum period that a foreigner Government unit due to tax delinquency.
(individual may lease real estate including a. 1 year
renewal is. b. 4 years
a. 25 years c. 60 days
b. 50 year d. 3 years
c. 75 years 484. In addition to the basic property tax, a
d. 99 years province may levy an annual tax on an
477. The principle holds that when two or more agricultural land, planted to perennial crops
commodities with subdivision the same with less than 50 trees to a hectare at the
utility are available, the one with the lowest rate of not exceeding__ of the assessed
price receives the greatest demands and value of the property.
widest distribution. a. 1%
a. Principle of Contribution b. 2%
b. Principle of Substitution c. 3%
c. Principle of Balance d. 4%
d. Principle of Completion e. 5%
478. An estimate or opinion of value is: 485. Seizure of a property by a court order,
a. Accounting usually done to have it available in the
b. Valuation event of adverse judgment of a pending
c. Appraisal suit, is:
d. computation a. Escheat
479. if the contract is under Maceda law, a buyer b. Forfeiture
who has paid 2 years installment shall be c. Foreclosure
refunded an amount equivalent to: d. Attachment
a. 60%percent of the total payments made 486. This government agency is responsible for
b. 50% of the payment payments made the preparation of comprehensive land use
c. 40% of the total payments made in a locality.
d. 30% of the total payments made a. Local government unit
480. Land valuation guidelines for socialized b. HUDCC
housing is set by the: c. DAR
a. HUDCG d. HLURB
b. NHA 487. Under the Rent Control Law (RA 9653), the
c. Department of Finance lessor may ask for a deposit rental not
d. Regular court exceeding:
481. The schedule of fair market value in the a. I month
municipalities in Metro Manila is prepared b. 2 months
by: c. 3 months
a. MMDA d. 1 year
b. Concerned municipal assessor 488. Any amendment to the master deed of a
c. Bureau of International Revenue condominium project decided by the
d. Sangguniang bayanby ordinance majority of owners must be approved by the
482. The following compose the Board of HLURB and
Assessment Appeals in the city of Makati, a. City/Municipal Mayor
except: b. City/Municipal Council
a. Registered of Deeds c. City/Municipal Engineer
b. City Prosecutor d. City/Municipal Development Planning
c. City Assessor Officer
d. City Engineer 489. Easement is to real property, usufruct is to:
a. Personal property
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 b. Real property
c. Personal or real property
d. None of the above
490. Which of the following statement is not
true?
a. Full ownership equals naked ownership
plus usufruct
b. Usufruct equals naked ownership
plus full ownership
c. Naked ownership equals full ownership
minus usufruct
d. Usufruct equals full ownership minus
naked ownership
491. The zonal value of a property can be
obtained from
a. Assessor’s Office
b. Bureau of Internal Revenue
c. Land Registration Administration
d. All of the above
492. If the contract of Sale is to Deed of Sale;
Contract to Sell is to
a. Pacto de Retro Sale
b. Deed of Conditional Sale
c. Deed of Sale with Mortgage
d. Dacion en Pago
493. The following are properties of lands that
may be acquired for socialized housing
purpose under RA7279, except:
a. Lands owned by the government
b. Privately owned lands
c. Alienable lands of public domain
d. Registered but idle lands (should be
unregistered)
494. In subdivision selling, the sales is
considered a paid-up sale when the buyer
has paid the:
a. Fifty percent of the purchase price
b. Reservation deposit
c. Stipulated earnest money
d. Required down payment
495. The rate of the property tax in a municipality
or city within Metro Manila is
a. Not more than one percent of the
assessed value
b. Not more than two percent of the
assessed value
c. Not more than ten percent of the
assessed value
d. Not more than fifteen percent of the
assessed value
496. A kind of survey where the shape of the
earth is taken into account in computing
result is known as.
a. Plane survey
b. Geodetic survey
c. Topographic survey
d. Cadastral survey
497. The rational approach of allocating available
land resources as equitably among
competing user group is
a. Land assembly
b. Land use plan
c. On-site development
d. Urban renewal
498. Registration of a real estate instrument can
be due course without the presentation of
the owner’s duplicate certificate of the title
when the document is
a. Notice of Adverse Claim
b. Notice of list pendens
c. Writ of attachment
d. All of the above
499. Special power of attorney are necessary in
the following cases, except
a. To perform acts of administration
b. To lease any real property for more than
a year
c. To convey real rights on immovable
property
d. To cancel any obligation gratuitously
500. In a sale a retro where it is stipulated that
the vendor has the right to repurchase the
property “when he has the means”, he has
10 to redeem it.
a. Three 3 years
b. Four 4 years
c. Ten 10 years
d. Twenty 20 years
501. The minimum educational requirement that
an application for a license as an appraiser
is
a. Seventy two (72) units in college
b. Eight two (82) units in college
c. One hundred forty four(44)
d. College graduate, 4-years course
502. Which of the following government agencies
is in charge of the over-all strategies for the
country’s National Housing Program?
a. National Housing Authority
b. Housing and Land Use Regulatory
Board
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 c. Housing and Urban Development d. 18% or more slope
Coordinating Council 511. An annual levy on real property equivalent
d. None of the above to one (1) percent of the assessed value
503. Registration of sale of a five(5) hectare which shall be in addition to the basic real
agricultural land must be accompanied by estate tax called
a. DAR Conversion Permit a. Economic Real Estate Tax
b. HLURB License to Sell b. Special Assessment fund Tax
c. DAR Clearance c. Special Education Fund Tax
d. LGU Development Permit d. Ad Valorem Tax
504. The following are public dominion, except 512. A subdivision where 9% of the gross area
a. Navigate river converted into fishpond is spaces with 66 to 100 family lots per
b. Canal hectares is called
c. Public plaza converted into housing a. Economic subdivision
d. Subdivision roads b. Open market subd.
505. In case of real property, prescription in good c. Socialized Housing
faith is d. Low cost subdivision
a. 5 years 513. In the computation of depreciation of real
b. 15 years properties, the method that is widely used
c. 30 years by practitioners is the
d. 10 years a. Straight line method
506. Ownership of a piece of land can be b. Declining balance method
acquired through any of the following c. Sum-of-the-years digit method
modes, except d. Diminishing return method
a. Tradition 514. The technical description in the TCT of real
b. Prescription property can readily be plotted on a sheet
c. Occupation by using the ff. data
d. Succession a. Bearing and lot points
507. a former natural born Filipino citizen can b. Distance and lot points
acquired not more 5,000 sq. meters of land c. Bearing and tie line
in the urban area for business purposes d. BLLM and tie line
under e. Distance and bearing from lot points
a. BP 185 515. 1:200 means
b. RA 7042 a. 1 cm is equal to 200 centimeters
c. PD 957 b. 1 cm is equal to 12 meters
d. Act 2728 as amended c. 1 meters is equal to 200 meters
e. RA 8179 d. 1 meters is equal to 20 meters
508. The area of a triangular plot is computed by 516. An appraisal principle which holds that the
the formula: value of property tends to be enhance by
a. Length x width association with superior properties, is
b. ½ x length x width a. Principle of infiltration
c. 2 x length x width b. Principle of retrogression
d. Length x width x height c. Principle of progression
509. It means that shortcut to foreclosure, the d. None of the above
mortgagor agrees to sell and transfer the 517. It is refers to land located in the fringes of
mortgage property of the mortgagee. built-up communities has the provincial
a. Dacion en pago characteristics but is
b. Redemption a. Urban land
c. Pacto de retrod auction b. Urbanizable land
510. Excluded from the coverage of CARP. c. Urban land
a. 9% d. Rural land
b. 12%
c. 15%
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518. Jurisdiction for adjudication of buyer’s
complaints subdivision developers is with
the
a. Housing and Urban Development and
Coordinating Council
b. National Housing Authority
c. National and Land Use Regulatory
Board
d. Regular Courts
519. The bundle of rights which is inherent in
ownership without any limitations those
imposed by law or contract is.
a. Free estate
b. Lease free estate
c. Fee simple
d. Tenancy in common
520. The study of current supply and demand
conditions in a particular area for a specific
type of property is
a. Real estate appraising
b. Cash Flow analysis
c. Absorption estimate
d. Market Analysis
521. In the absence of a prenuptial agreement,
the following are excluded from the
community property, except
a. Property acquiring during the marriage
by gratuitous title by either spouse;
unless otherwise provided by the donor
b. Fruits as well as income of property
mentioned in letter (a); unless otherwise
provided by the donor
c. Property for personal and exclusive use
of either spouse
d. Jewelry for personal and exclusive
use of either spouse
e. Property acquired before the marriage
by the either spouse who has legitimate
descendants by a former marriage and
the first as well as the income, if any of
such property
522. The area reserved for parks, playgrounds
and recreational areas of a subdivision
projects are:
a. Exclusively owned by the owner-
developer
b. Co-owned by the developer and
purchasers of subdivision lots
c. Non alienable public lands
d. None of the above
523. The term of a condominium corporation is
a. 50 years
b. Co-terminates with the duration of the
condominium project
c. 25 years
d. Subject to the agreement between the
condominium corp. and the unit owner
524. Area required to be reserved for roads,
alleys and open spaces in a subdivision
with an area of one (1) hectares or more.
a. Twenty percent (20%)of the gross area
b. Thirty-five (35%) of the gross area
c. Twenty-five percent (25%) of the gross
area
d. Thirty percent (30%) of the gross
525. For a space to be considered a
condominium unit, it must
a. Be encompassed by the interior surface
of the walls, floors, ceiling
b. Be managed by a condominium
corporation
c. Be susceptible of independent use
and ownership
d. Be unencumbered by any restriction
526. In case of foreclosure sale where right of
redemption is not exercise by the
mortgagor-owner, who pays the captain
gains tax?
a. Owner-mortgagor
b. Creditor-bank
c. Buyer of the property
d. None of the above
527. It is a contract granting a person the
privilege to buy or not to buy certain objects
at anytime with the agreed period at a fixed
price.
a. Solicitacion
b. Option Contract
c. Aleatory Contract
d. Pacto de Retro Sale
528. It is an encumbrance imposed upon an
immovable for the benefits of another
immovable belonging another
a. Nuisance per accidents
b. Right of way
c. Private nuisance
d. Easement
529. A special power to sell a realty carries with
it all the following except the
a. Power to find a purchaser
b. Power to sell directly
c. Power to sell only for cash
d. Power to fix the term of the sale
e. Power to sell on credit
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 b. Estimate value
APPRAISER/BROKERS’ EXAM REVIEWER c. Opinion of property condition
MOCK EXAM SET F d. All of the above
537. The form of deed to return title to real estate
530. What term is used to describe a study of the to its owner when the debt secured by a
cost benefits relationship of an economic deed of trust or pacto de retro sale is paid in
endeavor? is the
a. Investment analysis a. Warranty deed
b. Market analysis b. Quitclaim deed
c. Feasibility study c. Reconveyance deed
d. Cash flow analysis d. Tax deed
531. What part of the USAP Section 1 states that 538. The form of deed that makes no warranties
the appraiser must advise the clients when express or implied , is the
the assignment calls for something different a. Gran deed
from the work required by the specific b. Quitclaim deed
guidelines? c. Reconveyance deed
a. Ethics provision d. Tax deed
b. Departure provision 539. A type of real estate featuring ownership of
c. Competency provision air space as well as an interest in common
d. Jurisdiction exception in the entire parcel is a
532. The purposes of USAP is to: a. Subdivision
a. Delay government regulation b. CMP
b. Present information that will be c. Condominium
meaning full the client and will not be d. Life estate
misleading in the market place 540. A life estate is a (n)
c. Guarantee professionalism in appraisers a. Present, possessory interest
d. Present information that will be useful to b. Future interest
appraisers c. Fee simple defeasible
533. Indicate whether each of the following is d. Estate of tenancy
ordinary real estate or personal property 541. Under our family Code of 1988, property
a. Window screens acquired by gift or inheritance by a spouse
b. Bathtub in masters bedrooms after marriage with no pre-nuptial
c. Central air conditioning agreement made is under
d. Kitchen cabinets a. Absolute community
e. Child movable playhouse b. Absolute separation
f. Childs movable playhouse (all are real c. Conjugal partnership of gains
estate this) d. All of the above
g. Rosebushes 542. A subdivision map is referred to in the
534. The property of a person who die leaving no a. Lot and block system
heirs passes the state the right of: b. Both a and b
a. Acquisition c. Lot block and tract system
b. Condemnation d. Neither a nor b
c. Escheat 543. The scientific study of population statistic is
d. Eminent domain a. Scientography
535. Condemnation of public property for public b. Demography
use called the right of: c. Segmentation
a. Seizure d. Forecasting
b. Escheat 544. The amount initially paid for good or
c. Eminent domain services is its
d. Acquisition a. Price
536. An appraisal may include b. Investment value
a. Property description c. Market value
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 d. Cost a. A factory
545. Market value is based on b. An automobiles showroom and garage
a. Insurable value c. A public building formerly used a town
b. Higher price hall
c. Most probable price d. Farmland surround by commercial and
d. Value in use in a busy downtown business district
546. Short-term financing instruments are part e. An one-storey retail in a busy downtown
of the business district
a. Money market f. An older, single-family residence in a
b. Absorption neighborhood rezoned to permit high
c. Capital market rise apartments
d. Feasibility g. A medical office building in a suburban
547. Longer-term financing instruments are shopping center
part of the h. A single family, owner-occupied
a. Money market residence
b. Absorption analysis i. A place of ownership
c. Capital market j. A small abandoned roadside restaurant
d. Feasibility adjacent to a new apartment complex
548. Identify the major value principle describe in 550. The appraisal approach that would be most
each case below: useful in valuing
a. A less expensive house trends to gain in a. Single-family residential property
value because of more expensive b. Investment property
neighborhood houses c. Public and religious use properties
Answer: Progression 551. The reliability of an appraisal depends on
b. The value of a property tends to be the
limited by what it costs to buy another a. Knowledge and judgment of the
property similar in physician appraiser
characteristics, function, or income. b. Accuracy of the data used
c. Plans have been announced for a multi- c. Both a and b
million peso shopping center to be built d. Neither a nor b
next door to a vacant lot you own. 552. The sales comparison approach relies on
Property values in the area of the the principle of
proposed site will tend to increase as a a. Anticipation
result of his announcement. b. Substitution
d. The rental value of vacant land can c. Leverage
sometimes be greater that it would be if d. Highest and best-use
the land were improved with a building. 553. Another name for sale comparison
e. In may commercial or downtown areas, a. Cost approach
parking lots make more profit than older b. Market data approach
office buildings. c. Income approach
f. Any investor will probably pay more for d. Substitution approach
the last 20 lots in an area where the 554. The ratio of total operating expenses to
demand for house for houses is great effect gross income is the
than the first 20 lots in the same area. a. Operating expense ratio
g. The cost of installing an air-conditioning b. Effective gross income ratio
in an apartment building is justified only c. Net income ratio
if the rental increase that can be d. Break-even ratio
expected as a result of the installation 555. The ratio of net operating income to
exceeds the amount spent effective gross income is the
549. Decide which appraisal approach(es) would a. Operating expenses ratio
normally carry the most weight in valuing b. Effective gross income ratio
each of the following properties c. Net income ratio
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 d. Break even ratio a. 0.15
556. The ratio of operating expenses plus b. 1.50
annual debt service to potential gross c. 0.58
income is the d. 0.015
a. Operating expense ratio 562. A commercial property producing an annual
b. Effective gross income ratio gross income of P390,000.00 was sold two
c. Net income ratio months age for P3,412,500.00.What is the
d. Break even ratio property’s gross income multiplier?
557. A building that has an effective e gross a. 7
income of P500,000.00 and total operating b. 7.75
expenses of P100,000.00 has an operating c. 8.5
expense ratio of what? d. 8.75 (3,412,500/390,000)
a. 0.10 563. A single family residence that sold recently
b. 0.20 (100k/500k) for P2,850,000.00 can be rented for
c. 0.15 P14,000.00 per month. The property’s gross
d. 0.25 rent multiplier
558. The building above (no. 48) has what net a. 17
income ratio? b. 204 (2,850,000/14,000)
a. 0.80 (1-0.20) c. 207
b. 1.0 d. 210
c. 0.90 564. Vacancy and collection losses are deducted
d. 5.0 from gross income using a(n)
559. The arrive at net below operating income, a. potential gross income multiplier
expenses are deducted from b. gross income multiplier
a. Operating profit c. Effective gross income multiplier
b. Effective gross income d. Gross multiplier
c. Gross income 565. In the formula for the operating expenses
d. None of these ratio
560. In the list below check each item that is not a. Operating expense are divided by
an expense from the appraiser’s point of effective gross income
view: b. Effective gross income is divided by
1) Gas and electricity operating expenses
2) Depreciation of the building c. Potential gross income is divided by
3) Water gross income
4) Realty tax d. Effective gross income is divided by
5) Building insurance potential gross income
6) Income tax 566. In the formula for the net income ratio
7) Supplies a. Effective gross income is divided by
8) Payment on air conditioners potential gross income
9) Janitors salary b. Potential gross income is divided by
10)Management fees effective gross income
11)Repairs and maintenance c. Effective gross is divided by net
12)Legal and accounting fees operating income
13)Principal and interest on mortgage d. Net operating income divided by
14)Advertising effective gross income
15)Painting and decorating
16)Depreciation on equipment Appraiser’s/Broker Exam Reviewer
17)Salaries and wages of employees Mock Exam Set H
18)Reserve for replacements
19)Payments on stoves and refrigerators 567. Refers to real estate services act of the
561. If a property’s net income ratio is 0.85, what Phils of 2009
is its operating ratio? a. RA6732
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 b. RA6552 575. Passed the exam on 2000, unable to secure
c. RA9646 license from DTI, CPE required in general
d. RA9700 a. 12 hrs
e. RA8763 b. 15 hours
568. Deadline of effectivity of Real estate service c. 18 hrs
act of the Phils. d. 24 hours
a. July 30, 2009 e. 120 hours
b. July 30, 2010 576. Minimum acceptable number hours by a
c. July 30, 2010 service provider for brokers exam general
d. June 30, 2010 a. 18 hrs
e. July 1, 2009 b. 15 hours
569. Deadline of registration without examination c. 24 hrs
per IRR of Real estate services act of the d. 60 hours
Phils. e. 120 hours
a. June 30, 2011 577. Minimum acceptable number of training
b. July 30, 2011 hours by a service provider for salesman
c. Dec 31, 2010 with 3-year experience from the effectivity of
d. Dec 30, 2011 the law but without DTI salesmans license
e. July 1, 2011 in general
570. License expired on December 31, 2009 a. 18 hrs
(Registration without examination) b. 15 hours
a. 12 hrs c. 24 hrs
b. 15 hours d. 60 hours
c. 18 hrs e. 120 hours
d. 24 hours 578. For practicing real estate without the
e. 120 hours license is penalized in an amount of no less
571. License expired on December 31, 2008 than
a. 12 hrs a. P100k
b. 15 hours b. P150K
c. 15 hrs c. P200K
d. 24 hours d. P50K
e. 120 hours e. P20k
572. License expired on December 31, 1995 579. However, a license practitioner who violated
a. 12 hrs RESA Lawe is penalized is an amount of no
b. 15 hours less than
c. 18 hrs a. P100K
d. 24 hours b. P200K
e. 120 hours c. P50K
573. Passed the exam on 2008, unable to secure d. P20K
license from DTI, CPE required 580. For practicing real estate without the
a. 12 hrs required license maybe penalized by
b. 15 hours imprisonment of no less than
c. 18 hrs a. 6 months
d. 24 hours b. One year
e. 120 hours c. 2 years
574. Passed the exam on 2007, unable to secure d. 4 years
license from DTI, CPE required e. 3 years
a. 12 hrs 581. Licensed practitioner who violated RESA
b. 15 hours law may be penalized by improvement of no
c. 18 hrs less than
d. 24 hours a. 6 months
e. 120 hours b. One year
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 c. 2 years c. RA9653
d. 4 years d. RA9700
e. 3 years e. PD1216
589. Rent Control Law of 2009
REAL ESTATE LAWS a. RA9632
b. RA9646
582. Refers to law on acquisition by an natural c. RA9653
born Filipino citizen on residential d. RA9700
property e. 8974
a. RA6732 590. Exproriation Law of 2000
b. RA552 a. RA6732
c. RA9653 b. RA6552
d. RA9700 c. RA9653
e. BP 185 d. RA9700
583. Refers to law on acquisition by a natural e. RA8974
born Filipino citizen on commercial 591. Comprehensive Agrarian Reform Law of
property 1988
a. RA6732 a. RA6732
b. RA8179 b. PD1517
c. RA9653 c. RA9653
d. RA9700 d. RA9700
e. BPI185 e. RA6657
584. Urban Development and Housing Act 592. Family Code of 1988
a. RA6732 a. PD 957
b. RA6552 b. EO90
c. RA9653 c. RA9653
d. RA9700 d. RA9700
e. RA7279 e. E.O. 209
585. Property Registration Decree 593. National Shelter Program, designated
a. PD 957 HLURB as the sole regulatory body of
b. PD 1529 housing and land devt.
c. PD 1517 a. PD957
d. PD 1216 b. EO90
e. PD 471 c. RA9653
586. Dual citizenship law d. RA9700
a. RA6732 e. E.O. 209
b. RA6552 594. Home guaranty/Magna Carta for
c. RA9653 Homeowners & Homeowners Association
d. RA9700 a. RA 6732
e. RA9225 b. RA 6552
587. Law that allows foreign investors to private c. RA9653
for a maximum of 50 yrs renewable once d. RA8763
for 25 yrs e. BPI185
a. RA6732 595. Law where HLURB assumed the
b. RA6552 functions of NHA on real estate
c. RA9653 management
d. RA9700 a. RA6732
e. RA7652 b. RA8179
588. Law defining “open space” in residential c. RA9653
subdivision d. RA9700
a. PD957 e. EO648
b. RA6552 596. Maceda law of 1972

186
 a. Ra6732 a. PD 957
b. Ra6552 b. RA6552
c. Ra9653 c. RA4726
d. Ra9700 d. RA9700
e. Ra7279 e. RA9225
597. Subdivision and condominium Buyers 22. An act allowing reconstitution of title
Protective Decree administratively destroyed by fire, flood, etc
a. PD 957 (June 8, 1989)
b. PD 1529 a. PD 957
c. PD 1517 b. RA6552
d. PD 1216 c. RA4726
e. PD471 d. RA9700
598. Dual citizenship law e. RA6732
a. RA6732 604. Law which discontinue the Spanish
b. RA6552 Mortgage Law system of registration (Feb.
c. RA9653 16, 1976)
d. RA9700 a. PD 957
e. RA9225 b. PD 1096
599. Law which regulate the development and c. PD 1529
sale of subdivision and condominium d. PD772
a. PD 957 e. PD892
b. PD 1529 605. Anti squatting law (August 20, 1975)
c. PD 1517 a. PD 957
d. PD27 b. OD 1096
e. PD471 c. PD1529
600. Tenants Emancipation Decree for price d. PD772
and corn lands e. RA7279
a. PD 957 606. An act providing legitimization of children
b. PD 1529 born to parents below marrying age
c. PD1517 a. RA6732
d. PD27 b. RA9858
e. PD471 c. RA9653
601. Law which prohibits the eviction of d. RA9700
occupants from lands identification and e. RA9225
proclaim as APDs or ULRZs and exempting 607. An act provides that age of majority
such land form payment of realty tax (July commences at 18 years as incorporated
23, 1986) under Art 234 of the Family Code
a. PD 957 a. RA6732
b. PD 1529 b. RA9858
c. PD1517 c. RA9653
d. PD2016 d. RA6809
e. PD471 e. RA9225
602. An act authorizing Ministry of Human 608. Law which create DENR, recognization and
Settlements (now HLURB) to establish remaining Dept of Environment , Energy
and promulgate different levels of standards and Natural Resources as DENR (June 10,
for economic and socialized housing. 1987)
a. PD 957 a. PD957
b. PD 1529 b. EO90
c. PD 1517 c. RA9653
d. BPI185 d. EO192
e. BP220 e. E.O. 209
603. Condominium Law 609. LOCAL Government Code of 1991

187
 a. RA8424 20. Law which prohibits the eviction of
b. RA7279 occupants from lands identified and
c. RA9653 proclaimed as APDs or ULRZs and
d. RA9700 exempting such land from payment of realty
e. RA7160 tax (July 23, 1986)
610. Tax Retorn Act of 1997 21. An act authorizing Ministry of Human
a. RA8424 Settlements (now HLURB) to establish and
b. RA7279 promulgate different levels of standards for
c. RA9653 economic and socialized housing
d. RA6552 22. Condominium Law
e. RA4726 22. an act allowing reconstitution of title
611. Brokerage Law administratively destroyed by fire, flood,
a. RA8424 etc (1989)
b. RA2728 23. law which discontinue the Spanish
c. RA9653 Mortgage Law system of registration
d. RA6552 (Feb. 16, 1976)
e. RA4726 24. Anti squatting law (August 20, 1975)
25. An act which legitimization of children born
REAL ESTATE LAWS to parents below marrying age
26. An act which provides that age of majority
1. Refers to law on acquisition by a natural commences at 18 years as incorporated
born Filipino citizen on residential property under Art 234 of the Family Code
2. Refers law on acquisition by a natural born 27. Law which creates DENR , recognization
Filipino citizen on commercial property and remaining Dept of Environment Enegy
3. Urban Development Housing Act and Natural Resources as DENR (June 10,
4. Property Registration Decree 1987)
5. Dual citizenship law 28. Local Government Code of 1991
6. Law that allows foreign investor to lease 29. Reform Act of 1997
private for a maximum of 50 yrs renewable 30. Brokerage Law
once for 25 yrs
7. Red Control Law of 2009 URBAN AND RURAL LAND USE
8. Expropriation Law of 2000 OWNERSHIP CARP
9. Comprehensive Agrarian Reform Law of
1988 612. Under the Urban Reform Law(P.D. 1517),
10. Family Code of 1988 and area is considered urban when has a
11. National Shelter Program, designated population density of at least__ and where
HLURB as the sole regulatory body of at least 50% of economically active
housing and land residents engaged in non-agricultural
12. Development activities.
13. Magna Carta for Homeowners & a. 500 residents per square kilometers
Homeowners Association b. 1,000 residents per square kilometer
14. Law where HLURB assumed the functions c. 1,500 residents per square kilometer
of NHA on real estate management d. 2,000 residents per square kilometers
15. Maceda law of 1972 or Industrial Buyers 613. Under RA 7279,_______shall be resorted to
Protective Act only when other modes of acquisition have
16. Subdivision and Condominium Buyers been exhausted.
Protective Decree a. Negotiated Purchase
17. Dual citizenship law b. Land Consolidation
18. Law which regulate the development sale c. Expropriation
subdivision and condominium d. Joint-Venture Agreement
19. Tenants Emancipation Decree for rice and 614. Property escheated to the government is
corn lands considered as
188
 a. Public Dominion
b. Patrimonial Property
c. Regalia Property
d. Land of Public Domain
615. Under Urban Reform Act (PD 1517), the
acquisition of lots of varying ownership
through, among others, appropriation or
negotiated purchase for the purpose of
planning is
a. Land Banking
b. Land Exchanging
c. Land Use Plan
d. Land Assembly
616. The following are modes of acquiring lands
for purposes of Urban Development and
Housing Act, except:
a. Community mortgage
b. Joint venture agreement
c. Negotiated purchase
d. Land swapping
e. foreclosure
617. conversion permit of agricultural land of not
more than 5 hectares shall be approved by
the:
a. Municipal Agrarian Reform Office
b. Provincial Agrarian Reform Office
c. Regional Agrarian Reform Office
d. Usec. For Legal Affairs, DAR
e. Secretary, DAR
618. The acquisition of the land in advance of
actual need based on present value for
future planned development is referred to in
the Urban Land Reform Law as:
a. Land Assembly
b. Land Banking
c. Urban Renewal
d. New Settlement Development
619. Urbanized areas refer to sites and lands
which, considering present characteristics
and prevailing condition, display marked
and great potential of becoming, urban
areas within the period of
a. Two (2)_ years
b. Three (3) years
c. Five (5) years
d. Ten (10) years
e. None of the above
620. The following are modes of acquiring lands
for the purposes of the Urban Development
and Housing Act of 1992 except.
a. Joint Venture agreement
b. Negotiated purchase
c. Community mortgage
d. Accretion
e. Expropriation
621. Land valuation guidelines for socialized
housing is set by the
a. HUDCC
b. NHA
c. Department of Finance
d. Regular courts
e. Provincial City Assessor
622. This government agency is responsible for
the preparation of comprehensive land use
in a locality
a. Local government unit
b. HUDCC
c. Register of Deeds
d. HLURB
e. DAR
623. The following are priorities of lands that may
be acquired for socialized housing purpose
under RA 7279, except:
a. Lands owner by the government
b. Privately owned lands
c. Registered but idle lands
d. Alienable lands of public domain
e. BLISS not yet acquired
624. Which of the following government agencies
is in charge of the over all strategies for the
country’s National Housing Program?
a. National Housing Authority
b. Housing and Land Use Regulatory
Board
c. Housing and Urban Development
Coordinating Council
d. None of the above
625. Registration of sale of a five (5) hectare
agricultural land must be accompanied by
a. DAR Conversion Permit
b. HLURB License to sell
c. DAR Clearance
d. LGU Development Permit
e. All of the above
626. The following are public dominion, except
a. Navigate river converted into fishpond
b. canal
c. Public plaza converted into housing
d. Subdivision roads
e. Natural resources
627. Ownership of a piece of land can be
acquired through any of the following
modes, except
a. Tradition
189
 b. Presentation d. 3 hectares
c. Occupation e. None of the above
d. Accretion 634. A former natural born Filipino citizen may in
e. succession addition to acquiring residential land under
628. Excluded from the coverage of CARP. B.P. 185 may still acquire land for business
a. 9% or other purpose under R.A. 8179 provided
b. 12% the area does not exceed
c. 15% a. One (1) hectares of urban land or 2
d. 18% or more slope hectares or rural land
629. It is refers to land located in the finges of b. 5,000 hectares meters of urban land
built-up communities which has the or 3 hectares of rural land
provincial characteristics but is flavored c. 5,000 square meters of urban land or 5
with metropolitan utilities, facilities and hectares of rural land
amenities. d. 1,000 square meters of urban land or 3
a. Urban land hectares of rural land
b. Urbanizable land e. None of the above
c. Urban land 635. Spouses who were married after the Family
d. City satellite Code without any pre-nuptial agreement
e. Rural land shall be governed by:
630. Has ruled that all agricultural lands that are a. Conjugal partnership of gains
already classified as commercial, industrial b. Absolute separation of property
or residential before June 15, 1988 no c. Absolute community of property
longer need any conversion clearance even d. Any of the above
if it is still devoted to agricultural activity e. None of the above
a. Republic Act 6657 636. Under R.A. 6732, administrative
b. Republic Act 7279 reconstitution of lost destroyed original
c. Ministry Order No. 39 series of 1985 copies of certificates may be availed of what
d. DOJ Opinion NO 44 SERIES OF 1990 the lost or destroyed certificates in the
e. None of the above registry deeds consist of at least:
631. A principle of ownership which mandates a. 10% of all titles in the registry
property owners to use their property in a b. 20% of all titles in the registry
manner that will promote not only their c. 30% of all titles registry
interest but also the general welfare. d. 40% of all titles in the registry
a. Principle of social justice e. None of the above
b. Stewardship principle
c. Principle of conformity APPRAISER’S /BROKER’SEXAM
d. Principle of progression REVIEWER
e. None of the above MOCK EXAM SET I
632. Filipino citizen can acquired by patent
agricultural lands of the public domain not 637. It is the process of estimating and
exceeding: supporting an opinion of value
a. Five hectares a. Appraisal
b. Seven hectares b. Geographical Information System
c. Ten hectares c. Accounting
d. Twelve hectares d. Statistics
e. None of the above 638. _______ is to process, as______ is to
633. A former natural-born Filipino citizen can process and opinion
acquired urban land for business purpose a. Accounting; Appraisal
no exceeding: b. Appraisal; Valuation
a. 1,000 sq. m. c. Valuation; Appraisal
b. 10, 000 sq. m. d. Accounting; Valuation
c. 5,000 sqm
190
639. It is the art of recording, classifying, b. Both objective
summarizing, in significant manner, in terms c. Subjective, objective
of money, transaction and events, which are d. Both either subjective or objective
in part, at least of a financial character, and 648. The ability to transfer from one person to
interpreting the results thereof another.
a. Appraisal a. Transferability
b. Valuation b. Demand
c. Accounting c. Scarcity
d. Statistics d. Utility
640. The process of changing from real 649. There is _____when the supply of property
property to personal property is called is less than the demand.
a. Severance a. Transferability
b. Adaption of Real Estate Article b. Demand
c. Attachment c. Scarcity
d. Emblements d. Utility
641. The process of changing from personal 650. The property must be needed or wanted
property to real property is called someone who has the purchasing power
a. Severance obtain it.
b. Adaption of Real Estate Article a. Utility
c. Attachment b. Scarcity
d. Emblements c. Demand
642. The two components of real estate are: d. Transferability
a. Chattel and mortgage 651. The criterion of value is
b. Physical and natural assets a. Utility
c. Real property and personal property b. Scarcity
d. Land and improvement c. Demand
643. It is legal concept referring to all rights, d. Transferability
benefits and interest related to the 652. The following are the force influencing
ownership of real estate. value, except
a. Real estate a. Economic
b. Personal property b. Governmental
c. Real property c. Social
d. Stewardship principle of ownership d. Geographical
644. It refers to the artificial asset component in 653. All are economic characteristics of land
a real estate except
a. Trade fixture a. situs
b. Improvement b. Indestructibility
c. Fixture c. Modification
d. Personal property d. Fixity
645. The opposite of market value is 654. Determine which is different among all:
a. Forced value a. Scarcity
b. Trader’s value b. Indestructibility
c. Unrepresentative value c. Immobility
d. Zonal value d. Non-homogeneity
646. Fair Market Value is 655. The following are similarities between
a. The highest price appraisal and accounting, except
b. The most probable price a. Both are in conformity with their
c. The transaction price respective Code of Conduct
d. The original price b. Both involve gathering and recording
647. Value is use is_____, while value in change data
is ___ . c. Bother are involve estimates
a. Objective, subjective d. Both are fields in science
191
656. The accuracy of an appraisal report 662. Prices of water front homes in a developed
depends on: have been rising dramatically because of:
a. Network a. Demand-pull inflation
b. Project Fee b. Stagflation
c. Experience c. Cost-push inflation
d. None of the above d. Leverage
663. A sophisticated investor would consider
APPRAISER’S/BROKER EXAM: REVIEWER paying with maximum leverage when:
MOCK EXAM SET J (ECONOMICS) a. Prices were falling
b. Seeking to reduce risk
657. We study estate economics in order to: c. Prices were expected to continue to
a. Predict what will be happening in the rise rapidly
future d. Interest rates were expected to fall
b. Meet state education requirement 664. Adams Smith believe in:
c. Impress clients with our knowledge a. Laissez-Faire policy
d. Balance our needs with the needs of b. Government guidance to influence the
others economy
658. In comparing the national economy with the c. Command economy
local economy, we should realize that: d. Socialist state
a. A local economy could be different 665. Private property, private enterprise,
than the national economy competitive markets and an profit motive
b. The local economy tends to lag behind are elements of:
the national economy a. Communism
c. The local economy will closely mimic the b. Capitalism
national economy c. Socialism
d. While the national economy can change d. Command economy
the local economy remain constant 666. A market controlled by single producer
659. At the equilibrium point would be a:
a. Quantity supplied would exceed quantity a. Oligopsony
demanded b. Oligopoly
b. Quantity demanded would exceed c. Monopsony
quantity supplied d. Monopoly
c. Quantity demanded would equal 667. Which of the following would be the best
quantity supplied inflation indicator?
d. Consumers will not by and producers a. Balance of trade
will not supply b. National government deficit
660. Which of the following is a true statement c. Consumer price index
regarding demand d. High interest rates
a. Demand for real estate is inelastic 668. Which of the following would be lagging
b. Demand is meaningless without economic indicator?
purchasing power a. Vendor performance
c. Demand decreases with supply b. High interest rates
increases c. Change in consumer price index
d. Demand decreases with increases in d. Poor real estate market
supply 669. A developer considering building new office
661. The real estate marketplace is primarily a: space would be most interested in:
a. National market a. Changes in the office vacancy rate
b. Local market b. Changes in vendor performance
c. Market having inelastic demand c. Changes in the consumer price index
d. Market regarded as a perfect economic d. Changes in the housing affordability
model index

192
670. The return beyond the value of land, labor a. Cluster
material and management would be: b. Strip development
a. Rent c. Megalopolis
b. Wages d. Gentrification
c. Interest 679. A very important determine of real estate
d. Profit value is:
671. Value would be measured by: a. Taxes
a. Price b. Age
b. Profit c. Location
c. Benefits d. Distance from a city’s center
d. The highest and best-use 680. A neighborhood most likely to be relatively
672. The term net value attributable to the stable with well maintained properties would
land would be related to: have:
a. Price a. A high percentage of renters
b. Building residual method b. A high percentage of owner-occupancy
c. Highest and best use c. Commercial and industrial property
d. Income approach mixed among residential uses
673. Imperfection in the real estate market are d. A high percentage of subsidized housing
caused by all except: 681. According to the principle of conformity,
a. Bargaining skills the property in a neighborhood of maximum
b. Production time value would be:
c. Must sell and will sell sellers a. The nicest property among deteriorating
d. Informed buyers and seller structures
674. If everyone in the Philippines began to b. In the center of an area of similar
double his or her rate of savings, the effect properties house
would be: c. A single-family home surrounded by
a. Greater unemployment boardinghouse
b. Increase the velocity of money d. The largest property in the neighborhood
c. An increase in the gross national 682. The principle that the user who wants a site
product the most will pay the most for it known as
d. Inflation the:
675. To fight inflation, the Central Bank could: a. Competition
a. Buy government securities b. First choice
b. Lower taxes c. Supply and demand
c. Increase government spending d. Change
d. Raise interest rates 683. Growth outside the city is known as:
676. When would a mortgage banker be a. Sprawl
interested in selling mortgage it originated in b. Township
quick fashion? c. Gentrification
a. When it believes interest rates will drop d. Suburb
b. When it believes interest rates will 684. Effects of rent control included all,
rise except:
c. When the loans are conforming a. Encourages conversion of apartments to
d. When the bank are loosing clients condominiums
677. The term gentrification refers to a/an: b. Increases likelihood of lower
a. More docile environment maintenance
b. Aging population c. Places a social burden on landlords
c. Male dominated society d. Encourages new development of
d. Back-to-the-city movement of young apartment structures
people 685. Brownfields refers to:
678. A growth where cities have merged together a. Areas without city water
to form a vast metropolis is know as a: b. Areas with contaminated soil
193
 c. Desert land exceed for any natural born
d. Minority areas Filipino citizen.
686. What is redlining? a. 12 hectares
a. Providing a fast tract for development b. 24 hectares
approvals c. 5 hectares
b. Refusal of a lender to loan within the d. 7 hectares
area 694. Under Public Land Act of 1936 (CA141),
c. Rehabilitation the maximum area for free patent subject to
d. Slum clearance government grant should not exceed
687. It is the appraisers job to protect the for cultural minorities.
financial interest of the a. 12 hectares
a. Lender b. 24 hectares
b. Seller c. 5 hectares
c. Borrower d. 7 hectares
d. Broker 695. Under Public Land Act of 1936 (CA141), the
688. An example of smart growth: maximum area for homestead patent
a. Infill developments subject to government grant should not
b. Leapfrog development exceed for any natural born
c. Building more freeways Filipino citizen.
d. Use of annexation to grow a. 12 hectares
689. Which of the following employer actions b. 24 hectares
would contribute to traffic problems? c. 5 hectares
a. Allowing home-based workers d. 7 hectares
b. Implementing trip reduction programs 696. Under the 1987 Constitution, the
c. Using an off-peak workweek maximum area for free patent subject to
d. Providing for the employee parking government grant should not exceed
690. Traffic management could include all for any natural born Filipino citizen.
except: a. 12 hectares
a. Toll road pricing b. 24 hectares
b. Larger parking facilities c. 5 hectares
c. Coordinating traffic signals d. 7 hectares
d. One-way streets 697. Under the 1987 Constitution, the
691. What is suburb? maximum area for homestead patent
a. A rural community subject government grant should not
b. A self sustaining community exceed for any natural born Filipino
c. A community near and subordinate to citizen.
a central city a. 12 hectares
d. A residential community without b. 24 hectares
significant commerce or industry c. 5 hectares
692. Suburb can keep property taxes down d. 7 hectares
by: 698. Under RA10023 of 2010 (New Residential
a. Keeping industry out Free Patent Law), the maximum area for
b. Promoting lower cost homes free patent, subject to government grant if
c. Not allowing shopping centers land is located in a highly urbanized cities,
d. Denser development should not exceed for any
natural born Filipino citizen
MOCK EXAM ON PATENTS/AGRARIAN a. 200 sqm.
REFORM b. 250 sqm.
c. 500 sqm.
693. Under Public Land Act of 1936 d. 750 sqm.
(CA141),the maximum area for free patent 699. Under RA10023 of 2010 (New Residential
subject to government grant should not Free Patent Law), the maximum area for
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 free patent subject to government grant, if one which was judicially secured upon the
land is located in other cities not classified expiration of from dated issuance of
as highly urbanized cities, should not patent.
exceed for any natural born Filipino a. 3 months
citizen. b. 6 months
a. 200 sqm. c. 1 year
b. 250 sqm. d. 2 years
c. 500 sqm. 706. The law the extended the filing of
d. 750 sqm. application for judicial confirmation of
700. Under RA10023 of 2010 (New Residential imperfect or incomplete titles to December
Free Patent Law), the maximum area for 31, 2020. It further limits the area to be
free patent, subject to government grant if applied for 12 hectares only.
land is located in 3rd class municipalities, a. RA9176
should not exceed for any b. CA141
natural born Filipino citizen c. RA10023
a. 1,000 sqm.. d. RA9700
b. 5,000 sqm. 707. Registration of untitled land or lands of
c. 500 sqm. imperfect titles is under .
d. 750 sqm. a. ACT 3344
701. Under RA10023 of 2010 (New Residential b. ACT141
Free Patent Law), the maximum area for c. PD 27
free patent , subject to government grant if d. ACT 2259
land is located in first and second class 708. Ordinary acquisitive prescription is the term
municipalities, should not exceed when person acquires ownership of a
for any natural born Filipino citizen patrimonial property through possession for
a. 1,000 sqm. at least , in good faith and with just title.
b. 5,000 sqm. a. 5 years
c. 500 sqm. b. 10 years
d. 750 sqm. c. 15 years
702. Prescriptive period for free patent under d. 30 years.
Public Land Act of 1936 (CA141) IS of 709. Extraordinary acquisitive prescription is the
continuous occupancy. term when a person’s uninterrupted adverse
a. 10 years possession of patrimonial property for at
b. 15 years least , regardless of good faith or just,
c. 30 years ripens into ownership pursuant to Art. 1137
d. 20 years of Civil Code. The period begins upon the
703. Prescriptive period for free patent under declaration of the government that the
New Residential Free Patent Law of 2010 subject land is longer intended for public
is of continuous occupancy. service. Without such express declaration,
a. 10 years the property even if classified as alienable
b. 15 years or disposable, remain property of public
c. 30 years dominion, pursuant to Act. 420(2) of Civil
d. 20 years Code.
704. Under the 1987 Constitution, the grantee a. 5 years
for homestead patent should be at least b. 10 years
years of age or head of the family. c. 15 years
a. 15 d. 30 years
b. 18. 710. ________ of patent is the operative act to
c. 21 convey the land.
d. 25 a. Conveyance
705. A Torrens title issued on the basis of the b. Grant
free patent becomes as indefeasible as c. Registration
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 d. Award lands of the Public domain not exceeding
711. Redemption period of homestead or free .
patent mortgage in a rural bank under a. 500 hectares
RA720 is from the registration of the b. 1,000 hectares
sheriff’s certificate of sale (titled or untitled). c. 1,024 hectares
a. 5 years d. 1,042 hectares
b. 10 years 717. Under the 1973 Constitution, private
c. 1 year juridical entities were not anymore allowed
d. 2 years to acquire lands of the public domain except
712. Homestead or free patent acquired by rural by lease for a period not exceeding 25
bank under RA 720 due to mortgagor’s years, renewable for not more than 25
failure to exercise his right, he or his heirs years and not to exceed in area.
may still repurchase the property from the a. 500 hectares
expiration of 2-year redemption period b. 1,000 hectares
pursuant to Section 119 of Public Land Act c. 1,024 hectares
(CA141) within . d. 1,042 hectares
a. 5 years 718. Under the 1973 Constitution, Filipino
b. 10 years citizen may lease public may lease public
c. 1 year domain land for a period not exceeding 25
d. 2 years years, renewable for not more than 25
713. Under RA 10023 (Residential Free Patent years and not to exceed in
Law of 2010), any Filipino citizens is area.
qualified to the issuance of free patent if he a. 500 hectares
is actual occupant for at least 10 years and b. 1,000 hectares
paid reality tax for at least . c. 1,024 hectares
a. 2 years d. 1,042 hectares
b. 5 years 719. Under PD 892 of 1976 discounted the
c. 10 years system of land registration under Spanish
d. 15 years Mortgage Law and the use of Spanish titles
714. Residential Free Patent Law of 2010 covers as evidence in land registration
the following lands except: proceedings. By virtue of this, holders of
a. Zoned as residential areas, including Spanish titles must apply for registration
townsites as defined under Public Land within (or until August 16, 1976) from
Act (CA141) the effectivity of this decree or they will be
b. Zoned residential areas located inside a treated as unregistered titles.
delisted military reservation or a. 3 months
abandoned military camp b. 4 months
c. Those of local government units or c. 5 months
townsites d. 6 months.
d. Blighted urban lands. 720. Under Public Land Act of 1936 (CA141)
715. Under the 1987 Constitution, a Filipino Filipino citizen may acquire agricultural land
citizens is may acquire government land by by homestead patent if was at the time of
purchase (sales patent) sold thru sealed application eighteen years old and above or
bidding and the applicant shall have not head of the family does not own more than
less than of the land cultivated in 5 hectares of agricultural land in the
years from dated of ward. Philippines.
a. 1/5 a. 5 hectares
b. ½ b. 12 hectares
c. 2/5 c. 24 hectares
d. ¼ d. 42 hectares
716. Under the 1935 Constitution, private 721. Under Public Land Act of 1936 (CA141)
juridical entities were allowed to acquire homestead certificate of title is issued by
196
 the Director of Lands upon compliance of encumber or dispose of said land or rights
the following conditions: to any person (natural or juridical) except to
a. At least 1/5 of the land has been the government.
improved or cultivated a. 2 years
b. The land shall be cultivated in not less b. 3 years
than one year or more than 5 years from c. 5 years
the date of approval of the application d. 10 years
c. Proof of continuous residency for at 726. LEASE under Commonwealth Act 141
least in the municipality in which the (Public Land Act of 1936) Should not
land is located exceed hectares
a. 1 years a. 1,024 hectares
b. 2 years b. 1,042 hectares
c. 10 years c. 2,000 hectares
d. 30 years d. 2,144 hectares
722. It is government grant of public land of 727. Land leased for grazing purpose not
person to establish and maintain agricultural exceed hectares
homes on condition of actual, continuous a. 1,024 hectares
and personal occupancy of the area as a b. 1,042 hectares
home including cultivation and improvement c. 2,000 hectares
of the land. d. 2,144 hectares
a. Free patent
b. Homestead patent Lessees maybe Filipino citizen of lawful age or
c. Sales patent corporation, association of which at least 60%
d. Emancipation patent of the capital stock belongs to Filipinos; of
723. SALE of agricultural land sales patent) by lease should ne through public bidding and
the government under Public Land Act of minimum bid should at least 3% of the
1936 (CA141), is given to a natural Filipino appraised value of the land.
citizen Of lawful age or head of the family, Lease period
Actual occupants who do not own any  25 years renewable for another 25 years
parcel of land whose total holdings do not  After the lease period, all improvements
exceeds 5 hectares Occupants must be made by the lessee shall become the
residing in the land applied for at least 2 property of the government
years to the date of applicable and the area i. For agricultural purposes
should not to exceed .
a. 24 hectares 728. Patent issued by the President of the
b. 48 hectares Philippines for a particular purpose.
c. 124 hectares Examples are reclaimed area along Roxas
d. 144 hectares. Blvd. and in Cebu Bonifacio
724. SALE of agricultural land (Sales patent) by a. Free patent
the government under Public Land Act of b. Homestead patent
1936 (CA141), is given to corporation (at c. Sales patent
least 60% owned by Filipino citizens) or d. Special patent.
association or partnership not to exceed 729. Law which subject private rice and corn
hectares in case of corporation or lands to agrarian reform coverage under
association or partnership President Marcos in 1972.
a. 1,024 hectares a. RA6657
b. 1,042 hectares b. PD27
c. 124 hectares c. CA141
d. 144 hectares d. PD1529
725. Under Public Land Act of 1936 (CA141) the 730. In all cases, retention of landowner under
grantee of homestead patent may not within PD 27 is hectares
from the date of grant, convey or a. 3 hectares
197
 b. 5 hectares a. One
c. 7 hectares b. Two
d. 12 hectares c. Three
731. The tenant farmer under PD27 is deemed d. Five
owner of a portion of the lot they are 738. Redemption period at Land Bank on
cultivating constituting hectares if not foreclosed property sold under CARP is
irrigated years starting from the date of registration
a. 3 hectares of certificate of sale.
b. 5 hectares a. One
c. 7 hectares b. Two
d. 12 hectares c. Three
732. The tenant farmer under PD27 is deemed d. Five
owner of a portion of the lot they are 739. An agricultural land are considered idle or
cultivating constituting hectares if in abandoned if the owner upon receipt of
irrigated notice of acquisition from the government,
a. 3 hectares. did not cultivate, till or develop the land
b. 5 hectares years.
c. 7 hectares a. One
d. 12 hectares b. Two
733. Retention under CARP is may be c. Three
awarded to each child subject to the d. Four
following qualifications: 1) at least 15 years 740. PD 27 was continued by CARP-RA 6657
of age: 2) actually titling the land or (1988 to 1988); CARP was continued by RA
managing the farm. 8532 for another 10 years (1998-2008);
a. 7 hectares plus 5 hectares CARPER (RA9700) extends CARP by
b. 5 hectares plus 3 hectares another years
c. 7 hectares plus 3 hectares a. 2 years
d. 3 hectares plus 1 hectares b. 3 years
734. Award ceiling for the beneficiary is c. 5 years
hectares under CARP. d. 10 years
a. 3 hectares Proposed budget for CARPER (RA9700) is
b. 5 hectares .
c. 7 hectares 741. the tenant farmer under PD27 is deemed
d. 12 hectares owner of a portion of the lot they are
735. Under CARP a landless beneficiary is one cultivating constituting hectares if
who owns less than hectares of not irrigated
agricultural land. a. 3 hectares
a. 3 hectares b. 5 hectares
b. 2 hectares c. 7 hectares
c. 1 hectares d. 12 hectares
d. Landless 742. The tenant farmer under PD27 is deemed
736. If land acquired by DAR was financed and owner of a portion of the lot they are
mortgaged to Land Bank, loans is payable cultivating constituting hectares if irrigated
in years in 30 equal installments with 6% a. 3 hectares
interest; b. 5 hectares
a. 5 years c. 7 hectares
b. 10 years d. 12 hectares
c. 25 years 743. Retention under CARP is may be
d. 30 years awarded to each child subject to the
737. Related to above (No.44), failure to pay following qualifications:1) at least 15 years
annual amortizations is a ground for of age: 2) actually titling the land or
foreclosure. managing the farm.
198
 a. 7 hectares plus 5 hectares CARPER (RA9700) extends CARP by
b. 5 hectares plus 3 hectares another years.
c. 7 hectares plus 3 hectares a. 2 years
d. 3 hectares plus 1 hectare b. 3 years
744. Award ceiling for the beneficiary is c. 5 years
hectares under CARP. d. 10 years
a. 3 hectares 751. Proposed budget for CARPER (RA9700) is
b. 5 hectares a. Php25 million
c. 7 hectares b. Php50 billion 3 years
d. 12 hectares c. Php100 million
745. Under CARP a landless beneficiary is one d. Php150 billion
who owns less than hectares of 752. Awarded ceiling for beneficiary of CARPER
agricultural land. is hectares.
a. 3 hectares. a. 3 hectares.
b. 2 hectares b. 2 hectares
c. 1 hectares c. 4 hectares
d. Landless d. 5 hectares
746. If land acquired by DAR was financed and
mortgaged to Land Bank, loan is payable in BUSLAW 1. OBLIGATIONS AND
years in 30 equal installments with 6% CONTRACTS WITH REAL PROPERTY
interest; LAWS
a. 5 years MULTIPLE CHOICE. WRITE THE LETTER OF
b. 10 years THE CORRECT ANSWER.
c. 25 years
d. 30 years 753. Can common-law spouses donate
747. Related to above (No. 44), failure to pay properties of substantial value to one
annual amortizations is a ground for another?
foreclosure. a. No, they are only allowed to give
a. One moderate gifts to each other family
b. Two rejoicing.
c. Three b. No, they cannot give anything of value to
d. Five each other to prevent placing their
748. Redemption period at Land Bank on legitimate relative at a disadvantage.
foreclosed property sold under CARP is c. Yes, unlike the case of legally married
years starting from the date of registration spouses, such donations are not
of certificate of sale. prohibited.
a. One d. Yes, as long as they leave sufficient
b. Two property for themselves and for their
c. Three dependents.
d. Five 754. It is juridical necessity to give, to do or not
749. An agricultural land are considered idle or to do.
abandoned if the owner upon receipt of a. Deeds
notice of acquisition from the government, b. Obligation
did not cultivate, till or develop the land for c. Contracts
years. d. Responsibility
a. One 755. A had a 4-storey building which was
b. Two constructed by Engineer B. after five years,
c. Three the building developed cracks and its
d. Four stairway eventually gave way and
750. PD 27 was continued by CARP-RA 6657 collapsed, resulting to injuries to some
(1988 to 1998); CARP was continued by RA lessees. Who should the lessees sue for
8532 for another 10 years (1998-2008); damages?
199
 a. a, the owner
b. b, the engineer
c. both a & b
d. none of the above
756. x owed Y P1.5 million. In his will, X gave Y
legacy of P1 million but will provided that
legacy is to be set off set against the P1.5
million X owed Y. owed Y. After the set off,
X still owed Y P500,000. Can Y still collect
amount?
a. Yes because the designation of Y
legatee created a new and separated
juridical relationship between them,
that testator legatee.
b. It depends upon the discretion of the
court if a claims is filled in the
proceedings,
c. No, because the intention of the testor in
giving the legacy is to abrogate his
obligation to Y.
d. No, because X had no instruction in his
will to deliver more than the legacy of P1
million to Y.
757. Every obligation whose performance does
not upon a future or uncertain event, or
upon a past even unknown to the parties.
a. Pure & Conditional
b. Obligation with Period
c. Alternative Obligation
d. Joint and Solidary
758. The concurrence of two or more
creditors or of two or more debtors in ne
and the same obligation does not imply that
each one of the former has a right to
demand.
a. Pure & Conditional
b. Obligations with Period
c. Alternative Obligation
d. Joint and Solidary
759. Obligations for whose fulfillment a day
certain has been fixed, shall be demandable
only whan that day comes.
a. Pure & Conditional
b. Obligations with Period
c. Alternative Obligation
d. Joint and Solidary
760. A person alternative bound by different
presentations shall completely perform one
of them.
a. Pure & Conditional
b. Obligation with Period
c. Alternative Obligation
d. Joint and Solidary
761. A executed a 5-page notarial will before a
notary public and three witnesses. All of
them signed and every page of the will. One
of witnesses was B, the father of one of the
legatees to the will. What is the effect of B
being a witness to the will?
a. The will is invalidated
b. The will is valid and effective
c. The legacy given to B, child is not
valid
d. The legacy given by A is valid
762. Is the wife who leaves her husband without
just entitled to support?
a. No, because the wife must always be
submissive and respectful to the
husband.
b. Yes, The marriage not having been
dissolved, the husband continues to
have and obligation to support his wife.
c. No, Because in leaving the conjugal
home without just, she forfeits her
right to support.
d. Yes, since the right to receive support is
not to any condition.
763. A buyer order 5,000 apples from the seller
at P20 per apple. The seller delivered 6,000
apples. What are the rights and obligations
of the buyers?
a. He can accept all 6,000 apples and
pay the seller at P20 per apple.
b. He can accept all 6,000 apples and pay
a lesser price for the 1,000 per excess
apples.
c. He can keep the 6,000 apples without
paying for the 1,000 excess since the
seller delivered them anyway.
d. He can cancel the whole transaction
since the seller violated the terms of
their agreement.
764. Conrad and Linda, Both 20 years old,
applied for a marriage license, making it
appear that they were over 25. They
married without their parents” Knowledge
before an unsuspecting judge. After the
couple has been in cohabitations for 6
years, Linda’s parents filed an action to
annual the marriage on ground of lack of
parental consent. Will the case proper?
a. No, since only the couple question
the validity of their marriage after
they 21 of they became 21 of age;
200
 their conhabitation also convalidated
the maariage.
b. No, since Linda’s parents made no
allegations earnest efforts have made to
come to comparison with Conrad and
Linda and which effort failed.
c. Yes, since the marriage is voidable, the
couple being below 21 of age when they
married.
d. yes, since Linda’s parents never gave
their consent to the marriage.
765. Josie owned a lot worth P5 million prior to
her marriage to Rey. Subsequently, their
conjugal partnership spent P3 million for the
construction of a house on the lot. The
construction resulted in an increase in the
value of the house and lot to P9 million.
Who owns the house and the lot?
a. Josie and the conjugal partnership of
gains will own a 50-50 basis.
b. Josie will own both since the value of
the house and the increase in the
property’s value less lot’s value; but
she is to reimburse conjugal
partnership expenses.
c. Josie still the lot, it being her exclusively
property, but the house belongs to the
conjugal partnership.
d. The house and lot shall both belong to
the conjugal partnership, with Josie
entitled to reimbursement for the value
of lot.
766. An action for reconveyance of a registered
piece of land may be brought against the
owner appearing on the title based on claim
that the latter merely holds such tittle in trust
for the plaintiff. The action prescribes,
however, within 10 years from the
registration of the deed or the date of the
issuance of the certificate of title of the
property as long as the trust had not been
repudiated. What is the exception to this 10
years prescriptive period?
a. When the plaintiff had no notice the
deed or the issuance of the certificate of
tittle.
b. When the tittle holder concealed the
matter from the plaintiff.
c. When fortuitous circumstance prevented
the plaintiff from the case sooner.
d. When the plaintiff is in possession of
the property.
767. It is the meeting of minds between two
persons whereby one binds himself, with
respect to the other, to give something or to
render some service.
a. Referendums
b. Memorandums
c. Contracts
d. Obligations
768. It is an obligation that right of action to
compel performance
a. Criminal
b. Artificial
c. Civil
d. Natural
769. It is an obligation that is not being of action
on positive law but on equity
a. Criminal
b. Artificial
c. Civil
d. Natural
770. Pepito execute a wall that he and 3
attesting witnesses signed following the
formalities of law, except that the Notary
acknowledge that the testator signed will in
the presence of the witnesses and the latter
themselves signed the will in the presence
of the testator and of one another. Was the
will validity notarized?
a. No, since it was not notarized on the
occasion when the signatories affixed
their signatories on the will.
b. Yes, since Notary Public has to be
present only when the signatories
acknowledged the acts required of
them in relation to the will.
c. Yes, but the defect in the mere
notarization of the will not fatal to its
execution.
d. No since the notary public did not
require the signatories to sign their
respective attestations again.
771. The shall take place when two persons, in
their own right, are creditors and debtors of
each other
a. Validation
b. Commission
c. Compensation
d. Standardization
772. A contract where consent is given through
mistake, violence, intimidation, undue
influence, or fraud is?
a. Legal
201
 b. Exempted
c. Creditable
d. Voidable
773. Contracts shall be__, in whatever from they
may have been entered into, provided all
the essential requisites for their validity
a. Demanded
b. Open to the public
c. Obligatory
d. Authorized
774. Venecio and Ester lived as common-law
spouses since both have been married to
other persons from whom they had been
separated in fact for several years.
Hardworking and bright, each earned
incomes from their respective professions
and enterprises. What is the nature of their
incomes?
a. Conjugal since earned the same while
living as husband and wife.
b. Separated since their property
relations with their legal spouses still
subsisting.
c. Co-ownership since they agreed to work
for their mutual benefits.
d. Communal since they earned the same
as common-law spouses
775. Defined requirements for
amendments/revocation of enabling or
master deed of condominium and the
disposal of common areas
a. RA 7899
b. RA 6552
c. RA 4726
d. RA 7279
776. When the oblige accepts the performance,
knowing its incompleteness or irregularity,
and without expressing any protest or
objection, the obligation is
a. Fully Paid
b. Paid in Installment
c. Acceptance of Payment
d. Fully Complied
777. Proof of actual damages suffered by the
creditor is not necessary in order that the
penalty may be demanded.
a. TRUE
b. FALSE
c. NOT NECESSARY
d. IF ONLY REQUESTED
778. A executed a Deed of Donation in favor of
B, a bachelor, covering a parcel of land
valued at P1 million.. B was however, out of
the country at the time. For the donation to
be valid.
a. B may e-mail A accepting the donation.
b. The donation may be accepted by B’
father with whom he lives.
c. B can accept the donation anytime
convention to him.
d. B’s mother who has general power of
attorney may accept the donation for
him.
e. None of the above is sufficient to
make B’s acceptance valid
779. O. owners of Lot A, learning that Japanese
soldiers may have buried gold and other
treasures at the adjoining vacant Lot B
belong to spouses X & Y, excavated in Lot
B where she succeeded in unearthing gold
precious stones. How will the treasures
found by be divided?
a. 100% to O as finder?
b. 50% to O and 50% to the spouses X and
Y
c. 50% to O and 50% to the state
d. None of the above
780. It shall not be understood to have paid
unless the thing or service in which the
obligation consist has been completely
delivered or rendered
a. Obligation
b. Debt
c. Notes Payables
d. Credit
781. Remission is essentially gratuitous, and
requires the acceptance by the obligor.
Remission is also known as:
a. Remittances
b. Extinguishment
c. Down payment
d. Condonation
782. Roy and Carlos both undertook a contract
to deliver to Sam in Manila a boat docked in
Subic. Before they could deliver it, however,
the boat sank in a storm. The contract
provides that fortuitous event shall not
exempt Roy and Carlos from their
obligation. Owing to the loss of the motor
boat, such obligation is deemed converted
into one indemnity for damages. Is the
Liability of Roy and Carlos joint or solidary?
202
 a. Neither solidary nor joint since they
cannot waive the defense of fortuitous
event to which they are entitled.
b. Solidary or joint upon the discretion of
Sam.
c. Solidary since Roy and Carlos failed to
perform their obligation to deliver the
amount motor boat.
d. Joint since the conversion of their
liability to one of indemnity for
damages made it joint.
783. It means not only the delivery of money but
also the performance, in any other manner,
of an obligation.
a. Payment
b. Service Delivery
c. Exchange
d. Value
784. It is when the debtor may code or assign his
property to his creditors in payment of his
debts.
a. Full payment
b. Payment in Installment
c. Advance Payment
d. Payment in Cession
785. In the order of intestate succession where
the decedent is legitimate, who is the last
intestate heirs or heir who will inherit if all
heirs in the higher level are disqualified or
unabale to inherit?
a. Nephews and nieces.
b. Brothers and Sisters.
c. State
d. Other collateral relatives up to the 5 th
degree of consanguinity.
786. Every person obliged to give something is
also to take care of it with the proper
diligence of a ___of a family, unless the law
or the stipulation of the parties requires
another standard of care.
a. Humble employee
b. Responsible friend
c. Wise Mother
d. Good Father
787. The right of the creditor for damages when,
through the fault of the debtor, all the things
which are alternatively the object of the
obligation have been lost, or the compliance
of the obligation. What shall be paid by the
obligor if he refuses to pay the penalty or if
he is guilty of fraud in the fulfillment of the
obligation.
a. Principal & Penalty
b. Interest & Surcharges
c. Damages
d. Bail bond
788. Who is the one that can do contract in the
name of another without being authorized
by the latter, or unless he has by law a right
to
a. Debtor
b. Creditor
c. Anyone
d. No one
789. Obligations may be modified by:
a. Compensation all credits prior to the
same and also later ones until he had
knowledge of the assignment
b. Changing their object or principal
conditions
c. Substituting the person of the debtor
d. Subrogating a third person in the rights
of the creditor
790. The creditor has a right to the fruits of the
thing from time the obligation to deliver it
arises. However,
a. He shall be responsible for any
fortuitous event until he has effected the
delivery.
b. He my exercises all the rights and bring
all the actions of the same purpose,
save those which are inherent.
c. He shall acquire no real right over it
until the same has been delivered to
him.
d. He shall extinguish the obligation as
soon as the expires or if it has become
indubitable that event will not take place.
791. The civil code of the Philippines is also
known as:
a. RA 7899
b. RA 1185
c. RA 240
d. RA 386
792. The following requisites of a valid cause:
a. It must be true
b. It must be valued
c. It must exist
d. It must be lawful
ELECT.2 Real Estate Brokerage
MULTIPLE CHOICE. Choose the letter of
your correct answer.
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793. Economic Utility letter to the capacity to a. Progression
satisfy wants production by labor and their: b. Regression
a. Exchangeability c. Gentrification
b. Uniqueness d. Competition
c. Transferability 801. This is a market condition where there are
d. Scarcity more properties more properties for sale
794. The following are purpose of loan allowable than buyers.
under the UHLP, except: a. Seller’s Market
a. Purchase of lot only b. Open Market
b. Purchase of a lot and construction of a c. Buyer’s Market
new house or dwelling unit. d. Property Market
c. Purchase of a newly constructed 802. This is market condition where there are
dwelling unit more buyers than properties for sale.
d. Purchase of two (2) houses and lots a. Open Market
795. A blanket Mortgage is a real estate b. Property Market
mortgage that covers: c. Seller’s Market
a. A single property d. Buyer’s Market
b. All properties e. Tenant’s right of first refusal
c. Several properties f. None of the above
d. Not more than two (2) properties 803. A listing whereby the broker who holds the
796. Interest Rate is the rate of return earned Exclusive Contract to Sell relists it to
by an investor, which does not include not Multiple Listing Several (MLS) is referred to
include allowance: as the:
a. For capital recovery a. Multiple Listing
b. For recapture b. Exclusive Listing
c. For cash flow c. Open Listing
d. For discount d. Net Listing
797. The Gross Income Multiplier is a factor 804. The compensation of the Broker depends
derived from comparable properties and on the overpriced obtained by the buyer. An
applied to expected rental income to agreement by which the broker may retain
estimate as compensation to his services all sms
a. A value paid over and above the net price to the
b. A gross income owners is known as:
c. A established cost a. Multiple Listing
d. A known price b. Net Listing
798. Refers to the act of buying an under priced c. Exclusive Listing
property and then quickly reselling it at d. Open Listing
market value: 805. This is one whereby the listing Broker is not
a. Flipping entitled to a commission in case the
b. Fast break property owner negotiates sale of the
c. Bird dogging property. The property owner can sell the
d. Brokering property himself and is not oblige to pay the
799. A person who gets paid a referral fee broker’s commission.
finding good deals for investors in known a. Multiple Listing
as: b. Net Listing
a. Flipper c. Exclusive Agency Listing
b. Bird dog d. Open Listing
c. Dealer 806. It is a privilege given to the buyer by the
d. Broker property owner to exercise a preferential
800. These refer to the changes that result when right to buy the property for sale within a
wealthier people acquire or rent property in certain period of time at a fixed price. It is
low income and working class communities. also considered as the contract between the
204
 Seller and the Buyer. It is an agreement for under certain terms and conditions within a
the Buyer within a stipulated period. specific period of time is known as:
a. Earnest Money a. Contract of Sale
b. Option Money b. Authority to Sell
c. Down payment c. Contract to Sell
d. Option d. Authority to Sale
807. Refers to the money given to the Seller by 813. As provided in design standards of HLURB,
the Buyer in consideration of the right to the number of row houses shall not exceed
purchase or lease a property within a 20 units per block/cluster but in no case
specified period and at an agreed contract shall this be beyond such numbers of
priced. length.
a. Option Money a. 100 meters
b. Earnest Money b. 400 meters
c. Down payment c. 200 meter
d. Option d. 300 meters
808. Is defined as an amount accompanying an 814. The maximum length of block as provided in
offer to purchase a property. It also refers to the HLURB design standards for a
a part of the purchase price advance by the subdivision shall be 400 meters, however
Buyer to the seller as a taken of good faith blocks exceeding 250 meters shall be
for a perfection of the Contract. provided with an alley at approximately at
a. Option Money certain length.
b. Earnest Money a. 1/3 of its length
c. Down payment b. ¾ of its length
d. Option c. Mid-length or ½ its length
809. A natural or juridical person who has both d. 2/3 of its length
the willingness and the capacity to buy real 815. It refers to the management of the earth’s
properties is called as a: resources in way, which aims to restore and
a. Buyer maintain the balance between human
b. Seller requirements and the other species of the
c. Prospect world.
d. Suspect a. Biodiversity
810. The act of the Broker which is instrumental b. Conservation
in affecting the meeting of the minds c. Ecological footprint
between the seller and the buyer of the real d. Sustainable development
property as to price and terms and done of 816. It is a type of settlement where accretion
the requisites for a broker to be entitled to a occurs nodes or core settlement resulting
commission is referred to as: in agglomeration
a. Escalation Clause a. Organic
b. Grandfather’s Clause b. Planned
c. Judicial Cause c. Neighborhood
d. Procuring Cause d. Municipality
811. It is that price at which the willing seller will 817. The smallest type of settlement in the
sell and the willing Buyer will buy, neither of Philippines
the parties under abnormal pressure. a. Province
a. Fair Market Value b. City
b. Appraisal Value c. Municipality
c. Exchange Value d. Barangay
d. Sound Value 818. It refers to meeting the needs of the present
812. The authority of the Broker to negotiate the without compromising the ability of future
sale lease, purchase, mortgage, mortgage generations to meet their own needs.
or exchange of real property for a fee and a. Biodiversity
b. Conservation
205
 c. Ecological footprint c. Inhabitant, building, ecosystem
d. Sustainable development d. Populations, community organism
819. It is national agenda for sustainable 826. An imbalance or imperfect nature of
development. It outlines the integrating chemical elements and substances in
strategies for the country’s overall material cycles
sustainable development and identifies the a. sediment
intervention areas from the national to the b. Carbon
regional level. c. Pollution
a. PA 20 d. Radiation
b. SD 21 827. The Indigenous Peoples Right Act was
c. PA 21 enacted on Oct. 29, 1997 to address
d. SD 20 marginalization and powerlessness of the
820. The country where industrial district at Indigenous Cultural Communities, which is
kalundborg, often labeled as an “industrial also
ecosystem” a. RA 8371
a. USA b. RA 6552
b. GERMANY c. RA 9646
c. DENMARK d. RA 7279
d. Philippines 828. Green Building is focused on good design
821. The Philippines Environmental System concept in any project development, where
(EIS) was formally established in 1978 by the ecological thinking must be adopted
virtue of through promotion and deduction of people
a. PD 1586 involved in the real estate industry. What
b. RA 6465 considerations are taking part in every
c. RA 1586 aspect of design in building concept?
d. PD 857 a. Social
822. It is process that involves predicting the b. Economic
likely impact f a project on the environment c. Cultural
during, construction, commissioning, d. Environmental
operation and abandonment. 829. Ecology covers the study of
a. ECP a. Population, community, ecosystem
b. EIA b. Ecosystem, organism, inhabitants
c. ECC c. Ecosystem, population, inhabitants
d. ECA d. Inhabitants, population, community
823. A subdivision development is local 830. LEED means:
community that is also referred as a. Leadership in Energy Efficiency Design
a. Municipality b. Leadership in Energy Efficiency Devt
b. neighborhood c. Light Energy Efficiency Design
c. Planned community d. Light Energy Efficiency Development
d. None of the above 831. There is no conclusive estimate on the total
824. It is geographically community, often population of indigenous people in the
within a larger city or suburb country because of the following, except:
a. Municipality a. Indigenous people are aplenty and
b. Neighborhood scattered all over the country
c. Planned community b. Absences of explicit report from the
d. None of the above NSO
825. The term ecology originates from a Greek c. Delineation of ancestral domain has not
word, which means “houses”. In real estate been adopted as census tract.
Ecology there are three relevant ecological d. Absences of regular tracking of time
aspects of green property, which are series data on each ethics group.
a. Population, community, ecosystem
b. Inhabitant, building, community
206
832. The natural process change in response to b. 380
the physical changes of an aging planet is c. 53
called: d. 323 (30 × 10.76)
a. Evolution 839. Refers to the right of the owner-lessor to
b. Ecological Succession receive the contract rent and the reversion
c. Control or Cybernetics of the property at the expiration of the
d. Biogeochemical Cycles contract.
833. The process of making an estimate of value a. Lease Fee Estate
of any asset/property in accordance with the b. Lease Fee Money
generally accepted standards on given c. Lease Contract
date: d. Lease Purchase
a. Appraisal 840. The following are determinants of value,
b. Valuation except:
c. Value in Use a. Demand
d. Value in Exchange b. Scarcity
834. It is the process of determining monetary c. Transferability
values of the property rights encompassed d. Cost
in an ownership at some specific time 841. This principle refers to an over-
period: improvements that reflects lack of
a. Appraisal conformity as between one property and its
b. Value in Use environment.
c. Valuation a. Conformity
d. Value in Exchange b. Change
835. A vacant lot is rented for a car display for c. Supply and demand
P24,000 per month. The interest rate d. Contribution
applicable to this type of property is 8%. 842. The area of a right triangle with a height of
Compute the value of property by income 10ft and a base of 4 ft is
approached: a. 40 sq. ft.
a. P2,400,000 b. 25 sq. ft.
b. P2,600,000 c. 1.85 sqm
c. P2,800,000 d. 3.72 sqm
d. P3,600,000 (24,000×12)/8% Sol. (4×10)/2 = 20 f2
836. In indicates the value of the property traded Is equal to 1.85 sq.m
in the market which is referred to as market
value: MOCK EXAM. SET O
a. Appraised Value DIRECTION: Choose the best answer. In your
b. Valuation sheet, find the number of the question and fill in
c. Value in Use the space that corresponds to the letter of the
d. Value in Exchange answer you have chosen.
837. The highest amount in terms of money that
a property should bring given reasonable 843. A real estate practitioner who is duly
time exposure in the open and competitive registered and licensed natural person who,
market for a fee, compensation or other valuable
a. Market Value consideration, offers or renders professional
b. Fair Market Value advice and judgment on: (i) the acquisition,
c. Fair Value enhancement, preservation, utilization or
d. Appraised Value disposition of lands or improvements
838. The house flooring has an area of 30 thereon and; (ii) the conception, planning,
square meters. How many vinyl tiles are management and development of real
needed if size is 12x12 inches (choose the estate projects.
nearest answer) a. Licensed Real Estate Property Manager
a. 300 b. Licensed Real Estate Appraiser
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 c. Licensed Real Estate Counselor 849. An agreement whereby the seller promises
d. Licensed Real Estate Broker to sell a thing in consideration of the buyer’s
e. Licensed Real Estate Consultant compliance to the terms and conditions of
844. The taking of public property for public use the contract and that only after the buyer’s
with fair compensation to the owner. An compliance will the seller be obliged to
exercise of the Right of Eminent Domain. transfer or convey the ownership of the
a. Community Development thing subject of the contract.
b. Appropriation a. Agreements
c. Lis Pendens b. MOU
d. Condemnation c. Contract to sell
e. Police Power d. Contract to sale
845. Refers to the land and all those items which e. Letter of intent
are attached to the property. It is the 850. Environmental Management Plan is a
physical, tangible entity which can be seen section of the EIS that details the
and touched, together with all the addition prevention, mitigation, contingency and
on above or below the ground. monitoring measures to enhance positive
a. Real Property impacts and minimize negative impacts of a
b. Real Estate proposed projects or undertaking.
c. Personal Property a. EMP
d. Encumbrances b. PD 1586
e. Liens c. PD 1577
846. It is one way of how an agency relationship d. PA21
is created. It means that if the principal e. Agenda 21
makes third persons to believe that 851. A statement or declaration reduced in
someone is his agent and that third party writing sworn to or affirmed before some
deals with the agent, then the principal office who has authority to administer an
cannot deny the agency relationship even oath or affirmation.
though it did not exist in fact. a. Affidavit
a. Agent b. Deed
b. Principal c. Report
c. Estoppel d. Pleading
d. Sub-agent e. Prayer
e. Deceiving Principal 852. Usually refer to real estate properties that
847. A group of investors who have combined were previously mortgaged to the bank, by
their financial resources with the expertise which because the owner failed to pay the
of a real estate professional for the common mortgage.
purpose of acquiring, developing, a. Foreclosed properties
managing, operating or marketing real b. ROPA
estate. c. Mortgaged properties
a. Syndication d. Acquired asset
b. Joint venture e. Bank assets
c. Developer 853. Land that has not been improved with
d. Association buildings. Such land is often left by a
e. Partnership developer in a subdivision for recreational
848. Community Environment and Natural use and enjoyment by all the property
Resources Officer of the DENR owners.
a. Deputy Director a. Vacant lot
b. Secretary of DENR b. Open space
c. CENRO c. Open field
d. PENRO d. Raw land
e. LGU Officials e. Pastured land

208
854. The rights of ownership whereby the owner 860. Means “let the buyer beware” (the buyer is
has the right to enjoy, dispose, and exclude duty-bound to examine the property he is
others and to recover. purchasing and he assumes conditions
a. Bundle of rights which are readily ascertainable on the face
b. Right to dispose of the title)
c. Livery of seisin a. Eros que
d. Absolute fee simple b. Sanctify
e. Freehold in estate in land c. Due diligence
855. The transferring of property to another, the d. Due care
transfer of property and possession of lands e. Caveat emptor
or other things, from one person to another. 861. Similar or like property types of
a. Conveyance neighborhood in which inhabitants have
b. Leasehold interest similar cultural, social and economic
c. Alienation backgrounds.
d. Lease fee interest a. Twin cycle
e. Sale b. Homogenous
856. The periodic payment specified in a loan c. Class A development
contract that covers the repayment needed d. Upper class
to amortize the outstanding debt. e. Heterogeneous
a. Amortization 862. A rise in value or price due to such factors
b. Debt service as inflation or market conditions.
c. Principal payment a. Appreciation
d. Settlement of loan b. Summation
e. Installment c. Upgrade
857. An analysis of the potential uses of a parcel d. Inflation
of land and determination of the highest and e. Purchasing power
best use for the parcel; a compute inventory 863. The liquidation of a financial obligation on
of the parcels in a given community or other installment basis. (A periodic payment
area classified by type of use; plus (in some which includes interest and principal
cases) an analysis of the spatial patterns of necessary to liquidate a financial
use revealed by this inventory. obligation).
a. Physically possible a. Installment
b. Financially viable b. Liquidation
c. Economic studies c. Amortization
d. Land utilization studies d. Settlement
e. GIS e. Buyout
858. A situation in which the rate paid on a 864. A procedure where by property pledged as
mortgage is greater than the rate generated security for a debt is sold to pay the debt in
by an investment on an unlevered basis. the event of default in payments or terms. It
a. Negative leverage is a process instituted by a mortgagee by
b. Positive leverage which the mortgaged property is sold at
c. Income generation public auction to satisfy the principal
d. NPV obligation which the debtor failed to fulfill.
e. ROI a. Auction
859. An analysis of the availability and desire b. Foreclosure
for a specific type of a property. c. Extra judicial settlement
a. Supply and demand study d. Confiscation
b. Market study e. Attachment
c. Location study 865. The transfer of property or right and
d. Project study obligations over it in favor of another. (The
e. Feasibility study one who assigns or transfers a property is
called ASSIGNOR while those to whom
209
 property is assigned are called ASSIGNS or b. Market rate
ASSIGNEES). c. Multiplier rate
a. Transfer of rights d. Interest rate
b. Grant e. Occupancy rate
c. Free patent 872. One qualified to render expert testimony
d. Stewardship a. Friends of court
e. Deed of Assignment b. Expert witness
866. The ratio of the total employment to basic c. Attorney
employment in an economic area, used to d. Licensed real estate Practitioner
protect increased in total employment when e. A & C
basic employment is expected to 873. A written instrument which, when property
a. NSO index executed and delivered, conveys title.
b. Economic indicator a. Deed
c. Economic projection b. TCT
d. Economic base multiplier c. OCT
e. Census d. Affidavit
867. A mortgage that has two or more properties e. Acknowledgement
pledged as security for a debt . 874. Any conditions revealed by a title research
a. Blanket mortgage which affect the title to property; usually
b. AIR mortgage relatively unimportant items but which
c. Judgment lien cannot be removed without a quit claim
d. Annuity mortgage deed or court action.
e. Multiple mortgage a. Wetting of title
868. Where the final installment payment on a b. Quieting of title
note is greater than the proceeding c. Lis pendens
installment payments and the payer pays d. Cloud on the title
the note in full (payment in lump sum e. Rule 74
although not yet due) 875. Largest estate of ownership in real property
a. Balloon payment in which the owner holds all the rights not
b. Amortization payment reserved by society.
c. Installment payment a. Absolute ownership
d. Full settlement b. Fee simple defeasible
e. Final settlement c. Fee simple
869. The right, advantage or privilege which an d. Life estate
individual has in land of another, such as a e. Joint tenancy
right of way 876. A building part of building or obstruction
a. Leasehold interest which intrudes upon or invades a highway
b. Tenancy rights or sidewalk or trespasses upon property of
c. Littoral rights another.
d. Easement a. Encroachment
e. Riparian rights b. Party wall
870. A mortgage which can be paid off on its c. Zoning
maturity d. Police power
a. Open mortgage e. Inclusion
b. Closed mortgage 877. Environmental Impact Statement refers to
c. Both A and B the documents or studies on the
d. Neither A and B environmental impacts of a project including
e. Reversed mortgage the discussions on direct and indirect
871. The income received from rented units in a consequences upon human welfare and
property divided by the income that could ecological and environmental integrity.
be received if all the units were occupied. a. EIA
a. Absorption rate b. ECA
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 c. ECP 883. An agreement between buyer and a seller
d. ECC whereby there is transmission of ownership
e. EIS on the object of the contract.
878. Property owned in common by the husband a. Contract to sell
and wife b. Contract to sale
a. Co-ownership c. Equity redemption
b. Conjugal property d. Redemption clause
c. Capital property e. B & C
d. Dower 884. The right of the government to acquire
e. Courtesy property for necessary public or quasi-
879. It is the issued by the DENR secretary or public use
the Regional Executive Director certifying a. Police power
that based on the representation of the b. Taxation
proponent and the preparers, as reviewed c. Stewardship
and validate by the EIARC, the proposed d. Escheat
project or undertaking will not cause a e. Eminent domain
significant negative environmental impacts; 885. An agreement entrusted to a third person to
that the proponent has complied with all the be held by him until the performance or
requirements of the EIS System, and that fulfillment of some act or condition ETHICS-
the proponents is committed to implement that branch of moral science, idealism,
its approved EMP in the EIS or mitigation justness, and fairness, which treats of the
measures in IEE. duties that member of a profession or craft
a. EIA the owes to the public, to his clients or
b. EIS patron, and to his professional brethren or
c. ECP members.
d. ECC a. Trust
e. EC b. Bank
880. A person appointed by the probate court to c. Financial institution
administer the estate of a deceased person. d. Escrow
a. Judge e. All of the above except D
b. Sheriff 886. The loss of money or anything of value, due
c. Attorney-at-law to failure to perform such as under an
d. Spouse agreement to purchase
e. Administrator a. Inflation
881. It is a judgment for the mortgagor to pay the b. Purchasing power decline
balance of the obligation if the proceeds of c. Peso depreciation
the foreclosure sale are not sufficient to d. Forfeiture
cover the principal obligation. e. GNP decline
a. Balance of payment 887. Payment in kind. Payment of the debt or
b. Outstanding balance obligation with a property
c. Deficiency judgment a. Exchange
d. Judgment lien b. Barter
e. Deficit c. Paper money transaction
882. A provision in contract providing for periodic d. Promissory note
proportional upward or downward e. Dacion en pago
adjustment of price or consideration 888. Right of the original owner to reclaim the
a. Price indicator property sold through judicial foreclosure
b. Escalation clause proceedings by payment of debt, interest,
c. Contract clause and cost.
d. Balance payment a. Equity of redemption
e. C & D b. Redemption

211
 c. Settlement of the obligation after one e. All of the above
year of the proceeding 895. An annotation in the title which serves as
d. 90 days from the auction notice that the property is subject to a
e. None of the above pending litigation.
889. A claim of a person on property owned by a. Encumbrances
another. b. Rule of 74
a. Assignment of title c. Liens
b. Adverse claim d. Lis pendens
c. Donation e. Color of title
d. Taxation 896. A contract of sale with the stipulation that
e. C & D the vendor shall have the right to buy back
890. A hold or claim which one person has upon the property within the agreed period
a property of another as security for a debt a. Redemption period
or charge, judgments, mortgages b. Before registration of title
a. Encumbrances c. 90 days after the sale
b. Lis pendens d. Pacto de retro sale
c. Annotation e. Buy back provision
d. Lien 897. Means the development of land for
e. Color of title residential, commercial, industrial,
891. The interest or value which an owner has in agricultural, institutional, and recreational
real estate over and above the mortgage purposes or any combination of such
against it. including, but not limited to, tourist, resorts,
a. Property reclamation projects, building or housing
b. Title projects, whether of individual or
c. Interest in the bundle of rights condominium ownership, memorial parks
d. Equity and others of similar nature.
e. Redemption a. Subdivision development
892. The price which a willing seller will sell and b. Mixed used land development project
a willing buyer will buy, neither being under c. PD 957 land development
abnormal pressure. d. Real Estate syndication
a. Current value e. Real Estate Development Project
b. Zonal value 898. A person in a position of trust and
c. Assessed value confidence, as between a principal and a
d. Investment value broker, the broker as fiduciary owes certain
e. Market value loyalty which cannot be breached under
893. The periodic addiction to equity caused by rules of agency.
the gradual reduction in the mortgage a. Transparency
balances as a result of periodic principal b. Agency to sale
repayment provided for in a loan repayment c. Fiduciary
contract. d. Sale, agency and bailment
a. Equity build-up e. Mutual trust partnership
b. Development build-up 899. Measurements and boundaries. A term
c. Project build-up used in describing the boundary lines of
d. Financial build-up land, setting forth all the boundary lines,
e. All of the above together with their terminal points and
894. A document executed by a property owner angles.
which creates or converts his property into a a. National highway length
condominium pursuant to Rep. Act, 4726. b. Post
a. Deed of restrictions c. Map
b. Master deed d. Metes and bounds
c. Articles of incorporation & bylaws e. Legal description
d. CCT
212
900. The improvement which does not produce e. Warranty deed
an adequate return for the amount invested 906. A lease of a property in which the rental is
on a building or property. An improvement based upon the volume of sales made
which is not suitable to the site on which it is upon the leased property.
placed due to excessive size or cost. a. Percentage lease
a. Over-improvement b. Decimal lease
b. Under-improvement c. Month to month lease
c. Excess improvement d. Commercial lease
d. Inadequate improvement e. Variable lease
e. Economic obsolescence 907. Real Estate Service Act of the Philippines
901. A lien created by law which exists in favor of (R.A. No. 9646)
persons who have performed or furnished a. RESAP
materials in the erection or repair of a b. RESA LAW
building. c. PRBRES
a. Mechanics lien d. PRC-PRBRES
b. Seller’s lien e. PHILRES
c. Contractor’s lien 908. Subjective value. The property’s value to its
d. Erection lien occupants or users.
e. None of the above a. Market value
902. Provincial Environment and Natural b. Personal value
Resources Officer of the DENR c. Objectivity value
a. CENRO d. Value in use
b. BENRO e. Subject value
c. PENRO 909. A ______ is commonly known as the
d. PENOY person who engages the agent for
e. All of the above except D representation.
903. The right of the state to enact laws and a. Seller
enforce them for the order, safety, health, b. Developer
morals, and general welfare of the public. c. Principal
a. Barangay power d. Adminstratrix
b. Police power e. Master
c. LGUs ordinance 910. The proof or act of proving at a court that a
d. Escheat last will and testament is actually that of the
e. People power deceased person
904. A deed of release or renunciation of a legal a. Decedent signature
right. A deed to relinquish any interest in b. Dower
property which the grantor may have had a c. Curtesy
protest or adverse claim. d. Holigraphic
a. Adverse claim e. Probate
b. Absolute right claims 911. Shall refer to and shall consist of Real
c. Indigenous right Estate Salesperson, Real Estate Broker,
d. Quit claim Real Estate Appraiser, and Real Estate
e. Reverse claim Consultant.
905. A deed used to convey real property which a. Real estate industry players
contains warranties of title and quite b. Real Estate assessors
possessions. In a warranty deed the grantor c. Real Estate professional practitioners
is to defend the premises against the lawful d. Real Estate service practitioners
claims of the third person. e. All of the above
a. Guaranty deed 912. All or part of a standards rule of USPRCP
b. Deed of sale from which departure is not permitted.
c. Deed of conveyance a. Agreement requirement
d. Deed of real property sale b. Joint undertaking requirement
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 c. Professional fee is contingent b. Appraisal consulting
d. Binding requirement c. Brokerage
e. Acceptance requirement d. Consultancy
913. Considered judgment arrived at after careful e. Dealership
investigation and analysis, discussion and 919. Regional Executive Director of DENR
deliberation with the client in a consulting a. BLUE
engagement. b. RED
a. Objectives c. GREEN
b. Advice d. ED-DENR
c. Goals e. All of the above
d. Acceptance 920. Objective Value. Property’s value to an
e. Decision impartial buyer who represent the market.
914. The exercise of police power by the a. Value in use
municipality or city and regulating and b. Value in review
controlling the character and use of c. Value in exchange
property. d. Debated value
a. CLUP e. Market value
b. Developmental permit 921. A mortgage containing a clause which
c. Locational permit permits the mortgagor to borrow additional
d. Urban planning money after the loan has been reduced,
e. Zoning ordinance without re-writing the mortgage.
915. Includes all the rights and benefits related to a. Close-end mortgage
the owner of real estate. b. Close-open mortgage
a. Personality c. Blanket mortgage
b. Real property d. Endurance mortgage
c. Fee simple e. Open-end mortgage
d. Absolute right 922. Environmentally Critical Area is an area that
e. Voluntary mode of ownership is environmentally sensitive.
916. A writ authorizes and directs the proper a. ECP
officer of the court, usually the sheriff to b. ECA
carry into effect a judgment or decree of the c. EIA
court. d. EES
a. Judgment lien e. ECC
b. Involuntary title transfer 923. The estate that derives benefits from the
c. Execution of judgment servient estate in an easement.
d. Writ of acceptance a. Positive easement
e. Writ of execution b. Negative easement
917. A study of the anticipated movement of c. Servient estate
cash into or out of an investment. d. Easement in gross
a. Reversion e. Dominant estate
b. Cash flow analysis 924. It means that if at the end of the period of
c. Discounted cash flow analysis lease, the lessee continues to enjoy the
d. Investment flow analysis thing leased with the acquiescence of the
e. Yield analysis lessor, it is understand that there is an
918. The provision of competent, disinterested implied new lease.
an unbiased advice, professional guidance, a. Sufferance
and sound judgment on diversified b. Tacita reconducta
problems in the broad field of real estate, on c. Ground lease
a fee basis, by qualified professionals who d. Lease in land
subscribe to a suitable standards of practice e. Leased fee interest
and code of professional ethics. 925. A mortgage which can be paid off at any
a. Valuation time even before its maturity.
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 a. On-going mortgage
b. Residential mortgage
c. Closed mortgage
d. Open mortgage
e. Appreciation mortgage
926. A stipulation which prohibits the mortgagor
from alienating the property within the
period of the mortgage.
a. Restriction
b. Redemption rights
c. Pactum de non aliendo
d. Mortgage theory
e. Pactum de aliendo
927. It is one way of how an agency relationship
is created. It means that if a person having
no authority whatsoever purpose to act as
an agent and the purposed principal later
adopts the acts of that agent, an agency
relationship has retroactively been created.
a. Majority votes
b. Ratification
c. Referendum
d. SPA
e. Authority
928. Any question or doubt arising from historical
or prospective realty investment desire
dealing with difficult decision on available
alternative courses of action, or situation.
This call for the consultant’s decision-
making service.
a. Client’s objective
b. Client’s problem
c. Client’s financial problem
d. Budget constraints
e. All of the above
929. As defined under RESA “a natural or
juridical person who, for in expectation of a
fee, compensation or other valuable
consideration offers or render professional
advice and judgment or; the acquisition,
preservation, utilization or disposition of
land or improvements thereon, or valuable
rights existing or to be created thereon; the
conception, planning and development of
realty projects, which may or otherwise
encumber units like subdivision lots,
condominium units, market stalls, memorial
parks and like”
a. Consulting
b. Counselor
c. Real estate practitioner
d. Real estate consultant
e. All of the above
930. The information pertinent to a specific
assignment. Such data may be divided into
four different classes; general (relating to
the economic and demographic
background, the region, the city and the
neighborhood), specific (relating to the
subject property and comparable properties
in the market), primary (information
gathered by the consultant that is not
available in a published source; such as
property dimensions and characteristics),
and secondary (published information such
as census data).
a. Census
b. Research
c. Survey
d. Statistical analysis
e. Data
931. An analysis of the amount of space (usually
expressed in square meter) or the number
of units (absorption rate) that can be sold,
leased, put into use of traded on the market
during a predetermined or estimated period
of time (absorption period), and at prevailing
prices or rentals.
a. Space market analysis
b. Absorption analysis
c. Asset market analysis
d. Demand market analysis
e. Vacancy analysis
932. The date of the transmittal letter of a written
report or the date a written report lacking a
transmittal letter is prepared by the
consultant. The date of an oral report is the
date it is communicated to or for the client.
The date of the report may or may not be
the same as the effective date at which the
analyses opinion and advice in a consulting
service apply.
a. Date of the engagement
b. Date of the review and evaluation
c. Date of the interview
d. Date of the representation of report
e. Date of the report
933. Refers to a real estate project that is able to
meet defined financial investment
objectives, the ability of a project to produce
sufficient cash flows to repay all the
expenses involved in creating and
marketing the project plus provide a
competitive return to the owner/developer.
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 A criterion of highest and the best use
analysis.
a. Legally permissibility
b. Probable use
c. Economically feasible
d. Land though as vacant
e. Maximally productive
934. Any question, doubt, uncertainty, or
difficulty arising from a historical realty
situation in which something has gone
wrong from a normal situation without yet
available explanation. This call from the
consultant’s
a. Client’s goal & objective
b. Client’s problem
c. Central issue of the engagement
d. Decision process
e. Decision making
935. The reasonable and probable use that in
the highest present value of the land after
considering all legally permissible,
physically possible and economically
feasible uses. Capitalization rates of
discounts rates for each feasible use should
reflect typically returns expected in the
market. Highest and the best use is usually
determined under two different premises; as
if the site was vacant and could be
improved in the optimal manner or as the
site is currently improved.
a. Market study
b. Investment analysis
c. Location analysis
d. Highest and best use (HABU)
e. All of the above
936. A letter accompanying a consulting report
that formally presents the report to the
person who requested it and may include
information such as; address and
description of the property problem, or
property interest subject of consulting
engagement, statement that property
inspection and all necessary analyses were
completed by the consultant, date of
Consulting report, summary conclusion and
recommendation any extraordinary
assumptions or limiting conditions,
consultant’s signature and reference to
accompanying consulting report.
a. Executive summary
b. Proposal letter
c. Letter of intent
d. A &E
e. Letter of transmittal
937. Right of an occupant of land to acquire title
against the real estate owner, where
possession has been actual, continuous,
hostile, visible and distinct and in the
concept of owner for the statutory period.
a. Adverse possession
b. Encroachment
c. Descent
d. Involuntary possession
e. Voluntary
938. A shortened consulting report that states
the conclusions and recommendations of
the consultant’s study and analysis. This
report typically contains a statement of the
problem or issues of the subject of
consulting engagement, purpose of the
consulting engagement, a description of the
analysis, the date of study and analysis,
limiting conditions. Much of the data and
reasoning are omitted.
a. Executive summary
b. Transmittal letter report
c. Letter report
d. Certification letter report
e. All of the above
939. Specifications in a consulting report that
restricts the assumptions in the report to
certain situations, for example, date and
used of the consulting service, definition
value, identification of real estate and
property rights being valued, definition of
surveys used or not used.
a. Absolute condition
b. Limiting condition
c. Hypothetical condition
d. Extraordinary assumption
e. None of the above
940. A study of a proposed economic activity’s
capability of being accomplished under
certain conditions and assumptions of
marketing, technical or financial aspects.
Also, a study of the cost-benefit relationship
of an economic activity.
a. Investment analysis
b. Economic analysis
c. Feasibility analysis
d. Financial analysis
e. Market analysis
941. The identification and analysis of
submarkets within a larger market,
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 resulting in the classification of consumers 945. The desire to buy to satisfy need coupled
or buyers into relatively homogenous with the ability to pay. When the word
groups based on their economic, demand is used in economic writings, this
demographic and/or psychographic demand is usually assumed.
characteristic such as attitudes, habits, and a. Assumed demand
lifestyle. This processes the potential users b. Purchaser’s demand
of the subject property from the general c. Effective demand
population, according to defined consumer d. Inefficient demand
characteristics. e. Ineffective demand
a. Market penetration 946. Information that is not specific to a certain
b. Market aggression property, e.g., interest rates, employment
c. Market segmentation rates and census information.
d. Market qualification a. Specific data
e. Market review b. Direct data
942. A technique used to determine just c. General data
compensation for land that has been d. Population data
partially taken through condemnation. In e. A & C
this method, the value of the property 947. The process of forecasting trends based
before condemnation and after on current and past data patterns and
condemnation is determined. The value of relationships. Extrapolation assumes that
the remaining property not taken through the same economic factors that affected
the condemnation is the difference between past trends are likely to continue over the
the value before and after condemnation. forecasting period.
a. After method a. Probability
b. Future method b. Chances
c. Investment method c. Mean
d. Before and after method d. Tendency
e. C & D e. Extrapolation
948. The date at which the analyses, opinions,
Mock Exam Set P and advice in an appraisal, review or
943. A series of cash flows in which payments consulting service apply.
occur at regular intervals. The payments a. Date of report
could be equal or could represent b. Effective date
mathematically related or non- c. Date of engagement
mathematically related patterns. d. Daye of review
a. Annuity e. A & B
b. Amortized 949. The use for a property which will bring the
c. Periodic optimum or highest returns or advantages
d. Discounting as of a certain time
e. Compounding a. Anticipation principle
944. The act or process of providing information, b. Diminishing return principle
analysis of real estate data, and c. Progression principle
recommendations or conclusions on d. Highest and best use principle(HABU)
diversified problems in real estate, other e. Regression principle
than estimating value in a disinterested 950. A stipulation which authorizes the
manner. mortgagee to appropriate the property as
a. Appraisal his own upon failure of the debtor to fulfill
b. Evaluation the principal obligation
c. Review a. Pactum commissorium
d. Management services b. Pactum de aliento
e. Consulting c. Pactum de dems
d. Outright sale
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 e. Bargain sale 957. Information gathered by the consultant that
951. Delay or negligence in asserting one’s legal is not available in a published source.
right a. Secondary data
a. Manifestation b. NSO
b. Volition c. NEDA
c. Obsession d. Primary data
d. Latches e. B & C
e. Deflection 958. A real estate analysis of a specific property
952. Anything which affects or limits the fee that addresses the ability of the property to
title to property such as mortgages, be absorbed, sold or leased under current
easements, or restrictions of any kind. Liens and anticipated market conditions.
are money encumbrances which make the a. Market study
property security for the payment of a debt b. Marketability study
or obligations such as mortgages and taxes. c. Economic study
a. Liens d. Feasibility study
b. Encumbrance e. Financial study
c. Lis pendens 959. The time period during which an income
d. Rule of 74 property is expected to this lease up to a
e. A & B level stabilized occupancy. Stabilized
953. The clause in a mortgage that gives the occupancy assumes rental achievement at
mortgagor the right to redeem his property market levels as well as physical occupancy
upon the payment of his obligations to the at stabilized levels.
mortgagee. a. Rent-out period
a. Settlement b. Economic rent time period
b. Balloon payment c. Rent-up period
c. Defeasance clause d. Lease period
d. Deficiency judgment e. Market rent time period
e. Extrajudicial 960. Any written communication of a consulting
954. Property exclusively owned by the wife service that is transmitted to the client upon
a. Capital completion of an engagement.
b. Community property a. Executive summary
c. Co-ownership b. Terms of reference
d. Conjugal c. Not to file
e. Paraphernal d. Report
955. Real Estate Investment Trust (REIT) e. All of the above
a. Investment portfolio 961. A method estimating property value by
b. Capital market portfolio discounting on expected future cash flows
c. REIT to a present value by a rate typical for
d. Real estate company for development investors in the marketplace for the interest
e. Vehicle for capital assets for real estate being valued. The approach may or may not
development explicitly include financing.
956. The use or uses of a consultant’s reported a. Residual capitalization
consulting engagement, opinions, and b. Yield capitalization
conclusions, as identified by the consultant c. Annuity capitalization
based on communication with the client at d. Extraction
the time of the engagement. e. Allocation
a. Intended use 962. The authoritative rule which serves as guide
b. Desired results to achieve competent and ethical practice in
c. Goals and objectives developing and reporting the consulting
d. Qualified opinion service.
e. None of the above a. Policy
b. Guidelines
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 c. Administrative orders e. None of the above
d. Circular orders 968. All or part of a standard rule of USPRCP
e. Standard from which departure is permitted under
963. Personalized evidence indicating certain conditions.
authentication of the work performed by the a. Outright guideline
consultant and the acceptance of the b. Standard guidelines
responsibility for content, analyses, and the c. Specific guidelines
conclusions in the report. d. Expressed guidelines
a. Attestation e. Implied guidelines
b. Acknowledgement 969. An appraisal or consulting that estimates
c. Signature the market value of a property to be
d. Pledge acquired for a public use by a government
e. Authentication so that just compensation can be offered to
964. The client and any other party as identified the property owner.
by name or type, as users of the consulting a. Enhancement
report, by the consultant based on b. Utilization
communication with the client at the time of c. Preservation
the engagement. d. Acquisition appraisal/consulting
a. Applicable use e. Disposition
b. Applicable user 970. Income that remains from net operating
c. Applicable intention income (NOI) after debt service is paid but
d. Intend user before ordinary income tax on operations is
e. All of the above except D deducted. Also called equity dividend or
965. Refers to both real estate and real property. per tax cash flow.
In some jurisdiction or usage, the terms real a. Before-interest cash flow
estate and real property may have the same b. After-tax cash flow
meaning. The separate definition c. Tax cash flow
recognizes the tradition as two concepts in d. A & B
appraisal and consulting theory. e. Before-tax cash flow (BTCF)
a. Personality 971. The risk associated with the uncertainty of
b. Estate in land future income flows caused by the nature
c. Movable and immovable of a business. In real estate, business risk
d. Freehold and leasehold includes future variability in rents,
e. Realty vacancies, and operating expenses.
966. Data obtained from published sources that a. Investment risk
have not been collected by the consultant, b. Business risk
e.g., census information, demographic c. Calculated risk
information and published interest rates. d. Management risk
See also data primary data e. Development risk
a. Secondary data 972. The process converting future income to a
b. Primary data present value by mathematically reducing
c. Regional data future cash flow by the implied interest that
d. Key indicator would have been earned assuming an initial
e. NSO social statistics investment, an interest rate and a specified
967. The relative ease with which a person can period (possibly divided into shorter equal
enter or exit a site or building. Accessibility periodic increments).
is important when determining the suitability a. Discounting
of a site or a building for a particular use. b. Compounding
a. Accessibility c. Annuity
b. Encroachment d. Amortized
c. Easement e. A & B
d. Restrictions
219
973. The main tenant in shopping center that e. Directional gravity
attracts shoppers or traffic. Anchors are 978. A public record of the assessed value of
strategically placed to maximize sales for all property in a taxing jurisdiction.
tenants. The type of anchor depends on the a. Assessment list
type of shopping center e.g., supermarket is b. Assessment master list
a typical anchor for a neighborhood c. Assessment property index
shopping center, whereas a major chain or d. Assessment level
department store is a typical anchor for a e. Assessment roll
regional shopping mall. 979. In an eminent domain proceeding, benefits
a. Leasehold interest are the betterment gained from a public
b. Leased fee interest improvement for which private property was
c. Shopping mall tenant taken in the condemnation.
d. Anchor a. Sufferance
e. Anchor tenant b. Severance
974. The ratio of the total amount of the loan c. Burden
divided by the interest capital (equity of d. Benefits
the owner(s). e. B & D
a. Liability-equity ratio 980. An estimate of the total time period over
b. Debt-equity ratio which a property can be successfully
c. Assets-equity ratio sold, leased, put into use or traded in its
d. NPV market area at prevailing prices or rentals.
e. A & C a. Absorption period
975. A ratio that represents the relationship b. Vacancies level
between a particular year’s cash flow c. Market gentrification
and the present value or the interest d. Market penetration
applicable to the cash flow. e. Market maturity
a. Interest rate 981. The party who engages a consultant by
b. Mortgage rate contract in a specific engagement.
c. Recapture rate a. Assessors
d. Effective rate b. Client
e. Capitalization rate c. Tax mappers
976. The act of combining two or more parcels of d. Registrar
land into 1 large tract; usually done to allow e. Appraisers
the construction of a larger building in the 982. The product of disaggregation, defines a
hope that it will produce more income than relatively homogenous supply of housing
several smaller buildings. An additional units that tend to be occupied by a relatively
value (plottage value) may be created homogenous group of households. For
above and beyond the sum of values of the example, the sub-market of 2 bedroom one-
separate parcels when the land is joined level houses selling for P180,000 to
together. P200,000 tends to be occupied by
a. Plottage households with similar economic, social
b. Assemblage and demographic characteristics.
c. Raw land development a. Sub-standard market
d. Consolidation b. Standard market
e. A & C c. Buyer’s market
977. In surveying, a horizontal angle from 0 to 90 d. Housing sub-market
that specify the direction of a course or e. A & D
angle in relation to true north or south. 983. The act or process of evaluating and
a. Direction giving advice on a property or a
b. Distance development projects for the viability in
c. Bearing terms of ROI, pertains to consulting and
d. Azimuth related functions, e.g. HABU analysis,
220
 location/site analysis, market study a. Land
services. b. Real property
a. Appraiser c. Real estate
b. Valuer d. Personal property
c. Custom broker e. Estate in land
d. Stock broker 990. The interest, benefits, and rights inherent in
e. Consultancy the ownership of real estate.
984. Reversion of property to the state owing to a. Fee simple
lack of any heirs capable of inheriting or due b. Bundle of rights
to other causes provided by law c. Stewardship
a. Escheat d. Severalty
b. Confiscation e. Real property
c. Default 991. An estimate of the number of units or
d. Legal actions square meter per time period of a particular
e. Legal decisions property type that can be successfully sold,
985. The work or services performed by real leased, put into use or traded in its market
estate consultants, as defined by USPRCP area at prevailing prices or rentals.
terms in these standards; evaluation, a. Evaluation analysis
review, and consulting. b. Endurance test rate
a. Consulting review c. Absorption rate
b. Consulting property management d. Month’s rate of vacancy
c. Consulting practice e. C & D
d. Consulting on IS 992. The value resulting from business
e. All of the above organization including such things as
986. An addition to land from natural causes management skills, assembled work force,
as for example, from gradual action of the working capital, trade names, franchises,
ocean or the river waters. patents, trademarks, contracts, leases, and
a. Alluvium operating agreements.
b. Accretion a. Enterprise value
c. Littoral b. Corporate value
d. Riparian c. Investors value
e. Prior appropriation d. Asset value
987. A study that reflects the relationship e. Business value
between acquisition price and anticipated 993. Any process of converting income into an
stream of future benefits of a real estate estimate of value.
investment. a. Capitalization
a. Investment analysis b. Yield capitalization
b. Regression analysis c. Residual capitalization
c. Correlation analysis d. Overall rate
d. NPV analysis e. Recapture rate
e. Annuity application analysis 994. The use of borrowed funds to acquire a
988. The sudden removal of land from one capital investment as opposed to investing
parcel to another, when a body of water one’s own funds. In real estate, the property
such as a river, abruptly changes its itself usually serves as the security for the
channel. debt.
a. Avulsion a. Collateral
b. Extraction b. Debt financing
c. Allocation c. Mortgage
d. Grading d. Chattel
e. None of the above e. Debt servicing
989. An identified parcel or tract of land including
improvements, if any.
221
995. The quantity of real property desired at a the government to take private property for
certain price at a specific time in a market public use.
area and/or market segments. a. Sufferance
a. Supply b. Stewardship concept
b. Market penetration c. Confiscatory element
c. Demand d. Force majeure
d. Speculation e. Condemnation
e. Futures 1001. The periodic income or loss arising from
996. The market in which long term or the operation and ultimate resale of an
intermediate term money instruments are income-producing property. The cash flow
traded by buyers and sellers. could further be classified as either before-
a. Money market tax or after-tax cash flow and could also
b. Debentures market reflect the impact of financing. See also
c. Paper money transactions before-tax cash flow (BTF), after-tax cash
d. Economic stabilization instruments flow (ACTF)
e. Capital market a. Economic flow
997. The surface space defined by two b. Market flow
dimensional boundaries of a building, lot, c. Cash flow
market, city or other such space, measured d. Accounting flow
in square units. For example, a rectangular e. Cash flow series of applications
building that measures 30 meters x100 has 1002. Debt instruments that are issued using a
an area of 3,000 square meters. pool of mortgage for collateral. The issuer
a. Circumferential retains the ownership of the mortgage pool
b. Area and issues bonds as debts against the
c. Perpendicular mortgage pool. However, all amortization
d. Volume and prepayments flow through to investors.
e. Directional a. Securitization
998. Dispersion from a central point. The b. Collateralized obligation bonds
movement of people, industry, and business c. Treasury bills
from the city to the suburbs, rural urban d. Collateralized mortgage obligation
fringe and/or smaller cities. The breakdown (CMO)
of en existing business into smaller units e. Money supply
or expansion through the establishment of 1003. The total change in property value
separate units. over a holding period.
a. Qualification a. Appreciation element
b. Isolation b. Change in property value
c. Centralization c. Reversion element
d. Decentralization d. Interest fee in property value
e. B & D e. Economic upgrading value
999. A price expressed in terms of cash as 1004. A clause in the deed of a property that
distinguished from a price that is expressed limits its type of use or intensity of use’
all or partly in terms of the face or nominal usually passes with the land regardless of
amount of notes or other debt securities that the owner.
cannot be sold on the market at their face a. Deed restriction
amount. b. Deed of conveyance
a. Cash equivalent c. Deed of warranty
b. Cash value d. Deed of specific warranty
c. Cash amount e. None of the above
d. Cash price 1005. The nature in which a city grows
e. None of the above outward from its point of origin (sitting
1000. The exercise of the power of eminent factor). City growth can be affected by
domain by the government, i.e., the right of availability of developable land, technology,
222
 transportation modes and the willingness
and ability of the local government to
provide needed services. For example,
cities such as Manila and Makati which
have relatively scarce land grow with an
increasing density of land use.
a. Economic growth
b. Population growth
c. Demographic growth
d. City growth
e. All of the above
1006. The industry in a geographic area that
provides employment opportunities and
allows is to attract income from outside its
boundaries.
a. Territorial base
b. Regional base
c. Economic base
d. Political subdivision base
e. Local economy base
1007. In a condemnation proceeding,
damages that are legally required to be paid
to the owner or tenant of a property that is
being wholly or partially condemned.
Damages are usually limited to the loss of
value in the property. Sentimental value,
inconvenience, and loss of business not
related to the real estate are not typically
compensable. Physical invasion of the
property by a condemning authority or the
taking of some property right must usually
occur before damages are considered
compensable.
a. Just compensation
b. Compensable damages
c. Expropriation damages
d. Condemnation damages
e. Eminent domain damages
1008. An annual financial report that shows
income. Expenses, and profits and is often
to evaluate the return on the investment in
the property.
a. Cash flows statement
b. Discounted cash flow statement
c. Profit and loss statement
d. Income statement
e. Financial position
1009. A study of the fundamental determinants
of the demand and supply for all real estate
in a local economy. Population, households,
employment and income are the variables
on the demand side of local economic
analysis. Past trends and forecasts of these
basic demand determinants are made of a
defined geographic area. Factors on the
supply side of the local economy such as
the amount of land available for specific
land uses, construction costs, local
infrastructure, etc. are also considered.
Economic base analysis and input-output
analysis are two techniques to describe the
local economy.
a. Local land analysis
b. Input-output analysis
c. Land uses analysis
d. Supply and demand analysis
e. Local economic analysis
1010. A person who charges a fee tor
rendering consulting service involving real
estate problem or issues.
a. Remuneration
b. Honorarium
c. Fee consultant
d. Commission
e. Talent fee
1011. The cost to build a structure including
direct cost of labor and materials,
contractor’s overhead and profit plus
indirect cost such as taxes and construction
loan interest. Distinguished from original
cost, which is the cost to the present owner
who may have paid more or less than the
cost of construction.
a. Construction cost
b. Development fee
c. Development excise
d. Development fee
e. A & D
1012. A legal instrument, similar to a mortgage
that conveys title to property to a third party
trustee and secures an obligation owned by
the borrower to the lender.
a. Mortgage
b. Abstract of loan
c. Promissory note
d. Deed of trust
e. C & D
1013. Something of value offered as a
guarantee or security for the fulfillment of a
financial obligation.
a. Deposit
b. Collateral
c. Exchanges of properties
d. Barter
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 e. Offsetting b. Space market
1014. Items that are in need of repair because c. Asset market
upkeep and repairs have been delayed, the d. Competitive market segment
result of which is physical depreciation or e. Buyer’s market
loss in value of a building; a type of 1019. Structure designed for occupancy as
physical deterioration that is usually living quarters by one or more households.
curable. A dwelling is usually equipped with cooking,
a. Deferred maintenance bathing and heating facilities. It does not
b. Physical deterioration include structures used on a transient basis,
c. Economic obsolescent such as hotels or motels.
d. B & C a. Residual
e. None of the above b. Dwelling
1015. Identification of the properties in a c. Commercial
market or trade area that have similar d. Mixed-used development
characteristics and attract the same e. A & C
potential buyers or space users. 1020. In economics, refers to the ability of a
a. Competitive analysis or survey product to maintain a quantity level of
competition supply or demand as the price of that
b. Red ocean infrastructure product changes. It measured as the
c. Blue ocean infrastructure percent change in quantity supplied or
d. Industry development analysis demanded divide by the associated percent
e. Industry development survey change in price.
1016. Costs that are readily identified in the a. Elasticity
construction of real estate such as labor, b. Substitutes
materials and contractor’s overhead and c. Equilibrium
profit. d. Mixtures
a. Indirect costs e. All of the above
b. Cost study 1021. In accounting, a method of recognizing
c. Direct costs and recording items of income and expense
d. Operating expenses to the period in which each is earned or
e. C & D incurred, respectively, regardless of the
1017. A systematic analysis based on specific date of actual payment or collection.
methodology that seeks to identify and a. Cash system
measure any effect on economic activity or b. Accounting system
market indicators resulting from the c. Accrual system
location, introduction or change of a major d. Financial system
land-used activity within the market area. e. All of the above
Examples are proposed overhead high 1022. A financing technique in which the seller
voltage electric transmission line travelling finances part of the purchase through a
the area or the sudden availability of note secured by a junior mortgage or
unexpected information about a major contract for deed.
employer or land user in the area. a. Institutional financing
a. Economic indicator b. Leverage financing
b. Social statistics c. Bridge financing
c. Micro economics d. Carryback financing
d. Fiscal policy e. Creative financing
e. Economic impact study 1023. One who transforms raw land to
1018. The group of properties that are in the improved property by use of labor,
same classification and complete directly materials, capitals and entrepreneur efforts
with the subject property in the immediate in an attempt to put land to its most
market area. profitable use.
a. Segmented market a. Real estate consultant
224
 b. Owner c. Stabilized peso projections
c. Government officials d. Constant peso projections
d. Investors e. Trade of balance projection
e. Developer 1029. A multi-unit structure or property in
1024. A study that analyzes the economic which persons hold fee simple title to
activity of a community, used to predict individual units and an individual interest in
population, income and other variable that common areas.
affect real estate values or land utilization a. Townhouse
based on the relationship between basic b. Time share
and non-basic employment. c. Condominium
a. Economic indicator d. Coop
b. Economic base analysis e. All of the above
c. NSO statistics 1030. The study of characteristics of the
d. NEDA statistical review population in an area, especially in
e. Economic blue print reference to size, density, distribution,
1025. A peso figure that represents only real characteristics and changes in those
growth and does not include inflation. variables. Used particularly in the valuation
a. Floating peso of commercial properties.
b. Constant peso a. Demography
c. Stabilized peso b. Physical geography
d. Matured peso c. Society geography
e. Appreciated peso d. Education geography
1026. The ability to formulate an opinion, e. Human geography
estimate or conclusion about an issue or 1031. A form of ownership in which each
problem given that data or evidence resident of cooperative apartment buildings
available. as purchased shares in a corporation that
a. Conclusion holds title to the building. The individual
b. Hypothesis pays a proportionate share of operating
c. Observation expenses and debt service on the building
d. Analysis owned by the corporation, based on the
e. Judgment amount of stock held in the corporation. In
1027. The area a housing consumer return for stock in the corporation, the
occupies (sleeping, eating, bathing, etc.). individual receives a lease granting
The term housing unit generally implies occupancy of a specific unit in the building.
exclusive control by the occupant over the a. Time sharing
sleeping quarters but does not necessarily b. Cooperative ownership
imply exclusive occupancy of kitchen, c. Tenement
bathroom, and living areas. Technically, the d. Condominium
term dwelling unit refers to a housing unit e. Townhouses
that contains private kitchen and bathroom 1032. A decision making process often used in
facilities, as well as private sleeping and public finance, that forces the decision
living areas that are exclusively occupied by maker to compare all direct and indirect
the household. positive and negative effects of the
a. Lodging unit proposed decision on an objective basis,
b. Dormitorty unit usually in pesos. Benefits must exceed
c. Housing unit costs to justify he projector or adopt the
d. Tenement unit policy.
e. Vacation unit a. Income analysis
1028. Peso projections that account for only b. Profit analysis
real growth and not for inflation. c. Investment analysis
a. Floating rate peso projections d. Rate of return analysis
b. Special drawing rights (SDR) of peso e. Cost-benefit analysis
225
1033. The sum of money an entrepreneur
expects to receive in addition to costs for
the time and effort, coordination and risk
bearing necessary to create project. The
portion associated with creation of the real
estate by a developer is referred to as
developer’s profit. Properties that also
include additional entrepreneurial profit that
is reflected in the going-concern value of
the property.
a. Management profit
b. Stakeholder’s profit
c. Investor’s profit
d. Entrepreneurial profit
e. All of the above
1034. Any method whereby the analyst
prepares a cash flow forecast including
income from operations and resale, selects
a discount rate that reflects the return
expected for the interest and uses the rate
to calculate the present value of each of the
cash flows. The total present value of the
cash becomes the value estimate for that
interest. Sometimes the cash flow forecast
is based on an assumed pattern of change,
e.g., compound growth.
a. NPV
b. Discounted cash flow analysis
c. IRR
d. Cash flow analysis
e. Reversion
1035. The sum of money a developer expects
to receive in addition to costs for the time
and effort, coordination and risk bearing
necessary to develop real estate.
a. Windfall profit
b. Industry profit
c. Developer’s profit
d. Development profit
e. Stakeholder’s profit
1036. An agreement by which a lender receive
some share of the income and/or cash flow
of a property. The participation might be
based on a percentage of the net operating
income, cash flow from operations and/or
the gain from sale of the property.
a. Capital participation
b. Retained earnings
c. Stock participation
d. Equity participation
e. All of the above
1037. The value of a property which includes
the value due to successful operating
business enterprise which is expected to
continue. Going-concern value results from
the process of assembling the land,
building, labor, equipment, and marketing
operation and includes consideration of the
efficiency of plant, the know-how of
management, and the sufficient of capital.
a. Going-concern value
b. Investment value
c. Assessed value
d. Loan value
e. Market value
1038. Any of 3 different types of space in a
house, characterized by the type of use for
that area. For example, the private-sleeping
zone includes the bedrooms, bathrooms
and dressing rooms; the living social zone
includes the living room, dining room, family
or recreation room, den and any enclosed
porches; the working service zone includes
the kitchen, laundry, pantry and other work
area. Halls, stairway and entrances are
considered circulation areas.
a. Staff zone
b. Worker’s zone
c. Utility zone
d. Open space zone
e. House zone
1039. The use of borrowed funds in the
purchase of an investment. If the addition of
the mortgage increases the return to the
equity (equity dividend rate or equity yield
rate), the addition of the mortgage has
resulted in positive leverage. If the addition
of the mortgage decreases the return to the
equity, the addition of the mortgage has
resulted in negative leverage.
a. Creative financing
b. Bridge financing
c. Positive leverage
d. Negative leverage
e. Leverage
1040. A charge levied against developers of
new residential, industrial or commercial
properties by a municipal government to
help pay for the added costs of public
services generated by the new
constructions, for example, charges for
hook-up costs for water and sewer lines,
226
 road improvements, and extra needs for a. Plant
school, fire and police service. b. Furniture & fixtures
a. Impact fees c. Vehicles
b. Utilities fee d. Conveyors
c. Road user fee e. Machinery and equipment
d. Assessment fee 1045. A rate of return that discounts all
e. None of the above expected future cash flows to a present
1041. The estimate time period during which value that is equal to the original
an improvement yields a return over the investment. An IRR can be calculated for
economic rent attribute to the land itself; the any defined cash flows, for example, for the
estimated time period over which an whole property of for just equity position.
improved property has value in excess of its Also called yield rate.
salvage value. a. Annual internal rate of return
a. Effective life b. Effective internal rate of return
b. Useful life c. Internal rate of return (IRR)
c. Economic life d. Risk reversion
d. Residual life 1046. Real estate that is under
e. Recapture life FORECLOSURE or impending foreclosure
1042. A map showing and identifying the because of insufficient income production.
location of land that has been subdivided Any property that falls to continuously
into individual lots. Locations are identified generate enough income to support the
by lots, blocks, and sections. Also given funds to develop it.
may be details such as streets, public a. Property management
easements, monuments, floodplains and b. Property development
elevations. When subdividing land, the c. Foreclosure property
developer generally presents a preliminary d. Distressed property
plat to the appropriate officials for e. Stigmatize property
consideration, and then files a final plat after 1047. Housing units that are actually under
improvements are made and approved. construction. The actual number of housing
a. Vicinity map starts may differ from the number of building
b. Plat permits issued. The number of housing
c. Location map starts is often used as an economic
d. Topographic map measure.
e. Cadastral map a. Foundation
b. Earthmoving
ANSWER KEY MOCK EXAM SET Q c. Horizontal development
d. Vertical development
1043. The process of calculating investment e. Housing starts
returns for multiple sets of assumptions in 1048. Testimony of persons who are skilled in
order to assess the impact that changing some art, science, profession, or business,
the inputs has on the measures of return. that skill or knowledge is not common to
a. Sensitivity analysis others and that has come to such experts
b. Regression analysis by reason of special study and experience
c. Feasibility analysis in such art, science, profession, or
d. Investment analysis business.
e. Project analysis a. Expert witness
1044. All tangible fixed assets (tools, tooling, b. Expert testimony
conveyor and other personal property) other c. Professional testimony
than real estate used in any way to facilitate d. Friends of court
any manufacturing assembly or e. Resource person
warehousing activity. Distinguished from 1049. A sale that occurs because the
fixed building equipment. mortgagor is unable or unwilling to make
227
 payments on the loan. A forced sale may
occur under bankruptcy proceedings or to 1054.
satisfy other outstanding liens.
a. Auction
b. Defaults
c. Forced sale
d. Assumption mortgage
e. None of the above
1050. A type of zoning that excludes racial
minorities and low-income people from an
area. This zoning may be intentional or
unintentional, e.g., specification of a
minimum structure site.
a. Non-conforming 1055.
b. Exception zoning
c. No value zoning
d. Exclusionary zoning
e. A & D
1051. An updating technique that used
population and household size figures from
the previous census, local area data on
building permits, demolitions, conversions,
and vacancies since the last census to
estimate the current number of households.
a. Development inventory method
b. Construction inventory method 1056.
c. Finished inventory method
d. Housing inventory method
e. B & C
1052. Vacant sites or land improved with
buildings devoted to or available for use for
human habitation, e.g., single-family
houses, rental apartments, residential
condominium units, rooming houses. Hotels
or motels are not considered this kind of
property.
a. Special purpose property
b. Mixed use property
c. Institutional property 1057.
d. Government property
e. Residential property
1053. Money or capital used to purchase an
interest in a property usually with the
intention of receiving some sort of cash flow
or profit from the property plus a recovery of
the initial outlay of funds. Is usually
considered a more long term use, as
distinguished from speculation.
a. Placement
b. Deposits
c. Investments 1058.
d. Stocks
e. Futures
Local zoning codes designed to regulate
the density of development on land,
including restrictions on the minimum and
maximum of the floor area per land area,
and living space and recreation space
requirements. Important in the development
of planned unit developments.
a. Land-use intensity
b. Land-use density
c. Land-use development
d. Land-use application for development
e. Land management administration
A land use that is incompatible or that
interferes with the surroundings land uses,
for example, activities that produce
excessive noise or pollution in a residential
area, a junkyard in a residential or other
highly visible area or activities that area are
not socially acceptable.
a. Criminals
b. Nuisance
c. Informal settlers
d. Squatters
e. All of the above
The ability and willingness to pay for an
economic good. The appropriate
multiplication of an income level by the
number of customers. If households are the
consuming unit, then mean household
income should be used in conjunction with
number of households to form the
purchasing.
a. Demand power
b. Utility
c. Scarcity
d. Purchasing power
e. Market value
Total horizontal surface of a specific
floor, or the total area of all floors in a
multistory building, computed from the
outside building dimension of each floor.
Balcony and mezzanine areas are
computed separately and added to the total
floor area.
a. Space
b. FAR
c. Air lots
d. B & C
e. Floor area
A comparison of demand and supply to
determine the existence of present and
228
 future demand or excess supply in a c. Land residual analysis
market. Another way of expressing the d. Gross analysis
same thing is through the use of phrase e. Raw land analysis
“unmet demand or supply shortages”. 1063. A specific provision in a construction
a. Conformity analysis budget for unforeseeable elements of costs
b. Standard analysis that may be encountered within a
c. Gap analysis construction project. Contingencies are
d. Supply/demand analysis different from escalation costs which
e. B & D account for price-level changes over time.
1059. The earth’s surface including the solid a. Overhead allowance
surface of the earth, water and anything b. Contingency allowance
attached to it; natural resources in their c. Indirect allowance
original site, e.g., mineral deposits, timber d. Operating expenses allowance
soil. In law, land is considered to be the e. Developer’s budget allowance
solid surface of the earth and does not 1064. The total floor area of a building
include water. measured in square meter from the external
a. Real property walls, excluding unenclosed areas. Unlike
b. Boulders gross living area measurements.
c. Real estate a. Gross building area (GBA)
d. Land b. Survey method
e. Subsurface c. Per square meter
1060. Property rights that might be purchased d. Cubic meter
with real estate, land buildings and fixtures e. None of the above
that are either tangible or intangible 1065. The process of investigating the
personal property such as furniture in a subgroups of the population who express
hotel or the franchise (business) value of demand for real estate by analyzing their
the hotel. economics, demographic and
a. Realty interest psychographic characteristics such as
b. Non-realty interest attitudes, habits and lifestyles.
c. Goodwill a. Survey
d. Patent b. Compendium
e. Trademarks c. Consumer research
1061. The number of years required for d. Social statistics
cumulative income from an investment to e. Economic indicator
equal the amount initially invested. The 1066. The cost to create a project including
payback period does not consider the time direct costs of labor and materials,
value of money and, therefore, is not a contractor’s overhead and profit plus
discounted cash flow analysis technique. indirect costs such as taxes and
See also discounted cash flow analysis development loan interest.
(DCF). a. Project income
a. Streams of income b. Development program
b. Periodic returns c. Development price
c. Present value d. Development cost
d. Future value e. None of the above
e. Payback period 1067. A measurement of land that abuts the
1062. A method of valuing residential, street line or other landmark such as a river
industrial, or recreational land to be used for or lake. A front meter measurement is
subdivision development. The analysis is typically used for lots in urban areas of
typically used in feasibility studies and when near-uniform depth.
comparable sales are scarce. a. Frontage
a. Land allocation analysis b. Setback on the frontage
b. Subdivision analysis c. Plottage
229
 d. Assemblage a. Employment base
e. Front meter b. Labor employment data
1068. The ratio of benefits generated by an c. Employment rate
improvement divided by the cost of that d. Poverty line
improvement. The ratio must exceed 1.00 e. Effective demand
for the improvement to be considered 1074. The process of changing an income-
desirable. The alternative term, benefit-cost producing property into another use.
ratio, is actually more descriptive. a. Redevelopment
a. Break-even ratio b. Reproduction
b. Supply-demand ratio c. Rehabilitation
c. Cost-benefit ratio d. Preservation & utilization
d. Financial return ratio e. Conversion
e. Equity ratio 1075. The total floor area of a building is
1069. The ease with which building permits for designed for the occupancy of tenants. It
a project may be obtained, as well as the does not include common area but does
proposed project’s ability to meet other include basements.
regulatory requirements. a. Net leasable area (NLA)
a. Development feasibility b. Actual leasable area
b. Project feasibility c. Gross leasable area (GLA)
c. Physical feasibility d. Floor area ratio (FAR)
d. Business plan feasibility e. All of the above except D
e. All of the above 1076. It refers to market value at the present
1070. The climate, topography, natural time.
barrier’s transportation systems and other a. Fair market value
factors of location that affect the value of b. True market value
the property. c. Existing market value
a. Ecology d. Saturated market value
b. Atmosphere e. Current value
c. Stratosphere 1077. A differentiation of the subject
d. Environment property from other properties by sub
e. Social science classification into smaller groups with
1071. A misconception occurring when an differing physical and locational
analyst become overly optimistic about a characteristics.
project. Occurs when the analyst is swayed a. Aggregation
by the client’s enthusiasm for the product b. Economic consideration
and begins to believe that the project is c. Economic classification
unjustified unique in character. d. Disaggregation
a. Optimistic fallacy e. All of the above
b. Euphoria fallacy 1078. An incremental amount paid for a
c. Volitional fallacy property purchased with favorable financing
d. Diplomatic fallacy for example, assumptions of a below-
e. None of the above market interest rate loan.
1072. A mortgage that is not insured or a. Financing leverage
guaranteed by a government agency but b. Bridge financing
may be privately insured. c. Financing premium
a. Sovereign mortgage d. Restructure financing
b. Conventional mortgage e. Creative financing
c. Private mortgage 1079. A process in which neighborhood
d. Development bank financing mortgage properties are purchased and renovated or
e. Government mortgage rehabilitated. This process is not part of the
1073. The number of people in community who normal neighborhood life cycle.
are gainfully employed. a. Gentrification
230
 b. Revitalization being constructed that would constrict the
c. Growth view of a property from road.
d. Stability a. Positive easement
e. Decline b. Negative easement
1080. An apartment building, usually more c. Dominant easement
than four stories high and equipped with d. Visual rights
an elevator and other modern e. Pancramic view rights
conveniences. An apartment building that is 1086. A property that has attached to it a lien,
considered tall in relation to the structures claim, liability or change. For example,
surrounding it. mortgage, taxes and easement cause a
a. Modern building property to be encumbered.
b. Commercial building a. Lien
c. Office building b. Mortgage lien
d. Institutional building c. Judgment lien
e. High-rise apartment building d. Construction lien
1081. The personal earnings after payments to e. Encumbered property
the government, including income taxes are 1087. A study of the current and past vacancy
deducted. levels and/or rates for a particular type of
a. Net operating income real estate, leading to a forecast into the
b. Disposable income near future.
c. Net income before taxes a. Absorption rate
d. Net income after taxes b. Construction months rate
e. Net present value c. Vacancy analysis
1082. A loan used to cover the development d. Supply studies
costs of a project that is typically paid off e. Industry or market rate
from the proceeds for lot or unit sales. 1088. The frequency with which property is
a. Construction loan sold or leased to a new owner or tenant.
b. Blanket loan a. Vacancy
c. Annuity loan b. Turnover
d. Development loan c. Supply turnover
e. None of the above d. Demand requirement
1083. Information about the human e. None of the above
population, especially in reference to 1089. A study of the cost-benefit relationship of
changes in size, density, distribution, and an economic endeavor.
characteristics of the population in a specific a. Economic analysis
area. b. Financial analysis
a. Demography data c. Market analysis
b. Physical geography d. Feasibility analysis
c. Human geography e. Technical analysis
d. Climate geography 1090. Residential space measured by finished
e. All of the above and habitable above-grade areas, excluding
1084. In consulting the property being finished basements or attic areas. It
considered or involved in the feasibility measured by the outside perimeter of the
study, sale, lease and other transaction. building.
a. Subject property a. Gross living area
b. Consulting goals and objectives b. Quantity survey
c. Internal forces of the property c. Per square meter
d. Demographics d. Unit in place
e. Location analysis e. All of the above
1085. The rights to maintain a clear space so 1091. Land within a set of defined boundaries.
that a property may be seen, for example Also called a parcel, plot or tract.
the right to prevent a sign or billboard from a. Land
231
 b. Lot installed within the boundaries of the
c. Air rights property.
d. Surface rights a. Site improvements
e. Subsurface rights b. Off-site improvements
1092. Specifications in a consulting report that c. Project site improvements
restrict the assumptions in the report to d. Inside improvements
certain situations, for example date and use e. Development site
of the consulting service, definition of value, 1097. A description of a parcel of land
identification of real estate and property completes enough to allow a competent
rights being valued definition of surveys surveyor to locate the exact boundaries of
used or nor used. the land.
a. Hypothetical condition a. Legal description
b. Extraordinary assumption b. Metes and bounds
c. Handicap c. Government survey method
d. Restriction d. Lot block survey method
e. Limiting condition e. None of the above
1093. The legal portion of a property that is 1098. A lease for the use and occupancy of
owned, which may be a full or partial land and only. Also called ground lease.
ownership interest, e.g., fee simple interest, a. Economic lease
leased fee interest, leasehold interest, b. Lease for years
subleased interest. c. Percentage lease
a. Interest in property d. Land lease
b. Ownership e. Land perpetuity lease
c. Fee simple defeasible 1099. A thorough study of a location in
d. Partial interest terms of a specific use, environment, time
e. Time sharing and anticipated pattern of change.
1094. A recorded legal notice of the filing of a. Location analysis
a suit in which the title to a property may be b. Market analysis
affected. If this property is purchased, the c. Mapping
buyer is then subject to any judgment d. HABU analysis
entered. The notice of filing is not a lien on e. Investment analysis
the property but rather a notice of pending 1100. The length of a property that abuts the
action. street line or other landmark such as a body
a. Liens of water. Frontage differs from width, which
b. Encumbrances may vary from the front of the lot to the
c. Lis pendens back.
d. Rule of 74 a. Setback
e. Probate proceeding b. Plottage
1095. The objective analysis of observable c. Monumenting
and/or quantifiable data indicating d. Distance
discernible patterns of urban growth e. Frontage
structure and change that may detract from 1101. A structure or building that is
or enhance property values. permanently attached o the land.
a. Location analysis a. Herbage
b. Area or site analysis b. Footings
c. Neighborhood analysis c. Improvement
d. Development analysis d. Foundation
e. In-depth site analysis e. Natural fruits
1096. Physical improvements that are 1102. Environmental forces surroundings as
considered outside the boundaries of a property that causes deterioration of value,
parcel of land, for example, buildings, e.g., overcrowding, incompatible uses or
structures and other support facilities inadequate utilities.
232
 a. Poor urban planning b. Location
b. Lack ecology balance c. Map
c. Environmental critical areas d. Locator
d. Environmental deficiency e. Satellite
e. Environmental impact assessment 1109. A lease for the use and occupancy of
1103. Uncertainty caused by the method of land only. Also called land lease.
financing an investment. a. Lease for years
a. Losses b. Periodic lease
b. Economic fall-out c. Percentage lease
c. Inflation d. Ground lease
d. Recession e. All of the above
e. Financial risk 1110. The ability of real estate project to
1104. A manager, owner or developer who satisfy the explicit objectives of an investor.
assumes that risk and management of a a. Viability
business or enterprise, a promoter, in the b. Acceptable rate of return
sense of one who undertakes to develop. c. Acceptable yield of income
a. Developer d. Most profitable
b. Dealer e. Feasibility
c. Entrepreneur 1111. The total number of persons who occupy
d. Proprietorship a dwelling, including people not related to
e. General partner the householder, non-family occupants
1105. The amount to which an investment of and single-person occupancy.
P1 grows with compound interest after a a. Household
specified number of years at a specified b. Occupants
interest rate. c. Dwellers
a. Time value of money d. Settlers
b. Present value of peso e. None of the above
c. NPV 1112. A consistent flow of money or benefits
d. Future value of peso generated by an investment or property.
e. Sinking fund a. Income stream
1106. The owner’s capital investment in b. NPV
property; the property value less the c. Cash flow
balance of any debt as a particular point in d. Money supply
time. Equity is equal to the property value if e. Micro economic
there is no debt on the property. 1113. The process of dividing a market into
a. Mortgage smaller, more homogenous submarkets
b. Origination based on product characteristics.
c. Equity a. Market segmentation
d. Loan b. Market subdivision
e. Mortgagor c. Market disaggregation
1107. Fair and reasonable compensation to a d. Market aggregation
private owner of a property when property is e. Market efficiency
taken for public use through condemnation. 1114. The average size of a household
a. Just compensation which is calculated by dividing the number
b. Partial taking of people residing in households by the
c. Severance number of households.
d. Arbitrary compensation a. Census
e. All of the above except D b. Social statistics
1108. The time-distance relationship (linkage) c. NSO
between a property or neighborhood and all d. Household size
other origins and destinations. e. Population rate per household
a. Highway
233
1115. A requirements of highest and best use; 1120. A specific area considered to be the
refers to a project that satisfies the prime location in a city.
economic objectives of the investor. a. 75% location
a. Economically viable b. 25% location
b. Financially feasible c. 50% location
c. Legally permissible d. 90% location
d. Physically possible e. 100% location
e. All of the above 1121. A circumstance occurring when either
1116. The use to which a property most the operating expense are greater than
probably will be put, given existing the total income generated by an
improvements, existing use if property and investment or the operating expenses plus
existing market conditions as of the any annual debt service payment are
analysis. Highest and best use in the greater than the income generated in any
context of most probable selling price. one year.
a. Most probable use a. Positive cash flow
b. Progression b. Income statement
c. Regression c. Cash receipts and disbursement
d. Conformity statement
e. Maximally productive d. Projected cash flow
1117. A real estate analysis or valuation e. Negative cash flow
approach to estimating value fro an income- 1122. The monetary worth of an entity or
producing property, where the influence of object.
mortgage financing is considered and the a. Money
investment returns to the equity position are b. Value
given primary importance. c. Price
a. Income capitalization analysis d. Cost
b. Mortgage equity analysis e. Real property
c. Market analysis 1123. The exercise of the power of eminent
d. Investment analysis domain by the government in which part of
e. Cost analysis a private property is taken for public use
1118. The changes that occur in a upon payment of just compensation.
neighborhood over time. The cycle is a. Partial taking
defined by four stages; growth, stability, b. Expropriation
decline and revitalization. Gentrification is c. Just compensation
not part of the natural neighborhood life d. Appropriation
cycle. e. All of the above except
a. Neighborhood life cycle 1124. The current value of a payment or
b. Business cycle series of future payments found by
c. Economic growth cycle discounting the expected payments by a
d. Gentrification desired rate of return in order to
e. Natural life cycle compensate for the time value of money.
1119. Expenditures necessary to maintain the See also discounted cash flow analysis
real property and continue the production of (DCF), internal rate of return (IRR), yield
income. Includes both fixed expenses and capitalization.
variable expenses but does not include debt a. Present value annuity
service, depreciation or capital b. Future value
expenditures. c. Sinking fund value
a. Direct expense d. Present value
b. Administrative expenses e. Annuity value
c. Development expenses 1125. The ratio of the present value of future
d. Operating expenses cash flows at a specified discount rate
e. Fixed/variable expenses divided by the initial cash outlay. Similar to
234
 the net present value expect that the initial that another period is called trending as in
cash outlays is divided into the present trended historical cost of construction.
value of future cash flows instead of a. Trend
subt7racted from the present value of future b. Fad
cash flows. A profitability index greater than c. New product
1 is acceptable. d. Evolution of trend
a. NPV e. All of the above except A.
b. IRR 1130. An outdated appraisal term used
c. Profitability index synonymously with currently acceptable
d. Rate of return term market value.
e. Rate on return a. Appraisal terms of reference
1126. An updating technique used in the b. Market value in use
absence of complete information that c. Value in use
determines from past date the ratio between d. Economic value
two known date elements, only one of which e. Fair market value
is currently known, adjust it for intervening 1131. A parcel of land that has been modified
trends and subsequently multiplies it by the or developed for use in constructing
current known value to derive the unknown improvements, for example, land that has
element. been graded, drained or installed with
a. Ratio analysis (technique) utilities.
b. Empirical analysis a. Improved property
c. Sensitivity analysis b. Improved land
d. Correlation analysis c. Unimproved property
e. Regression analysis d. Developing property
1127. To pay off on loan with the process of a e. Developed property
new, sometimes larger loan. Refinancing is 1132. A study of real estate market
used to produce extra funds from a property conditions for a specific type of property.
and sometimes used after interest rates a. Property data analysis
have dropped to receive a lower interest b. Demand analysis
rate; however, a penalty may be incurred. c. Market analysis
a. Restructure d. Location analysis
b. Hybrid financing e. Market economic analysis
c. Refinance 1133. The stated area of interest in a note or
d. Debt equity contract. This interest rate does not
e. None of the above necessarily equal the effective annual rate
1128. The interaction of buyers and sellers or effective rate of interest.
of existing mortgages. Created by a. Nominal interest rate
government and private agencies, the b. Effective interest rate
secondary mortgage market provides c. Loan interest rate
greater liquidity for the mortgage market. d. Amortization rate
a. Mortgage market e. Discounted rate
b. Arbitrage market 1134. Physical improvements that are
c. Future market constructed within the boundaries of a
d. Secondary mortgage market parcel of land, for example, buildings,
e. Government financial institutions (GFIs) structures and other support facilities
1129. An arrangement of statistical data in installed within the boundaries of the
accordance with its time of occurrence, property.
usually over a period of years. A series of a. Site improvements
related changes that may be identified and b. Attached improvements
projected into probable future pattern. The c. On-site improvements
application of cost or price indexes to d. Off-site improvements
translate purchasing power of one period to e. Inside improvements
235
1135. A class for a subdivision that sets the value of a property designed or adapted
density limits for a development but allows to fit the requirements of the user. In the
for the units to be laid out in clusters in latter case, such value often applies to use
order to provide for common open space. classification of special purpose properly.
a. PB220 a. End-user value
b. CLUP b. Ultimate value
c. Zoning ordinance c. Utility
d. Planned unit development (PUD) d. User value
e. HLURB e. None of the above
1136. The privileges associated with the 1141. The ratio of the area of space that is not
ownership of real estate, including rights rented divided by the total leasable area.
such as the right to sell, lease, occupy, or The ratio of the rent that could be collected
use. Property rights may be divided from vacant space if it was rented divided
separately of the real estate itself. by the total rent the building is capable of
a. Real estate generating.
b. Property rights a. Absorption data
c. Land b. Vacancy rate
d. Personal rights c. GRM
e. None of the above d. Cost approach
1137. A legal instrument by which an estate or e. Construction rate
ownership interest in real property is 1142. The cost of options foregone or
conveyed by a grantor to a grantee without opportunities that are not chosen.
warranty of title. a. Opportunity
a. Deeded b. Leverage
b. Statue of frauds c. Risks
c. MOU d. Return
d. MOA e. High value opportunity
e. Quitclaim
1138. Total retail spending by trade area Answer key
residents, usually stated in terms of store MOCK EXAM SET Q
type. This potential is the product of the
multiplication of population and per capita 1143. The interaction of buyers and sellers of
expenditures. The sales potential provides short-term money instruments.
the support base for the planned new a. Stock market
facilities as well as for existing competitive b. Futures market
facilities both within and beyond the trade c. Money market
area. d. Overnight money market
a. Credit evaluation e. Securitization
b. Demand potential 1144. A geographic area or political jurisdiction
c. Sales potential in which similar property types compete on
d. 7P’s an economic basis for potential buyers,
e. All of the above except C users or patrons.
1139. A map that shows parcels of land in an a. Regional area
assessment district. Also called assessment b. Market segmentation
map or cadastral map. c. Market analysis
a. Tax assessment level d. Market area
b. Tax map e. Market penetration
c. Basic rate 1145. The utilization of a site to produce
d. Special education fund revenue or other benefits.
e. Realty taxation a. Land development
1140. The value of property or space to a b. Land extraction
specific user. Sometimes more particular c. Land allocation
236
 d. Land subdivision development a. Efficient market
e. Land use b. Real estate market
1146. The value of a property to a particular c. Inefficient market
investor. d. Demand market
a. Investment value e. Supply market
b. Interest value 1153. An environment in which demand is
c. Economic value greater than supply for particular product
d. Market value and an income in value for the good
e. Going concern value typically results.
1147. The process of assimilating past a. Utility
information and compiling the data for the b. Demand
purpose of drawing conclusions about the c. Purchasing power
probable happenings or conditions in the d. Inflation/deflation
future. e. Scarcity
a. Researching 1154. The official list of all taxpayers subject to
b. Forecasting a property tax, the amounts of their
c. Population sample assessments and the amounts of taxes due.
d. Evaluation sample a. Tax roll
e. Probability b. Tax assessment
1148. The degree, nature or extent of interest c. Tax assessed
or rights a person has in a property. d. Tax delinquent list
a. Fee simple e. Tax revolution list
b. Life estate 1155. A financial principle based on the
c. Estate assumption that a positive interest can be
d. Freehold interest earned on an investment and therefore,
e. Allodial system money received today is more valuable than
1149. A lot located between the corner lots on money received in the future.
a specific block. a. NPV
a. Key lot b. Return and risk
b. Corner lot c. Anticipation
c. Pole lot d. Time value of money
d. T-lot e. Discounting factors
e. Inside lot 1156. The minimum of the necessities or
1150. A real estate property that is typically luxuries of life to which a person or a group
rented. may be accustomed or to which they aspire.
a. Income property (or income a. Status in life
producing property) b. Educational attainment
b. Commercial property c. Standard of living
c. Industrial property d. High value
d. Business property e. Economic society development
e. Institutional property 1157. The study of real estate returns under
1151. A building on the roof of a structure that different scenarios that represents different
contains elevator machinery, ventilating risk possibilities. Most commonly used in
equipment, etc. association with investment analysis.
a. Roof deck a. Probability analysis
b. Master house b. Risk analysis
c. Penthouse c. Market analysis
d. Maintenance house d. Location analysis
e. Facilities house e. None of the above
1152. The interaction of buyers and sellers 1158. Uncertain arising from the probability
who exchange real property rights for cash that events will not occur as expected.
or other assets. a. Overhead
237
 b. Indirect cost e. Real property
c. Expenses 1165. An analysis to determine if there is
d. Organizational cost unsatisfied, unfulfilled or unmet demand
e. Risk that the proposed site could satisfy.
1159. A financial statement that contains a. Physical geography
forecasts of income and expenses from the b. Human geography
operation of real estate property used on a c. Geophysical analysis
certain set of assumptions. d. Spatial gap analysis
a. Financial position e. GIS
b. Pro-forma statement 1166. Attributes of an investment that
c. Income statement decrease taxes by providing non-cash
d. Balance sheet deductions for depreciation and interest or
e. Cash flow statement provide other opportunities to claim
1160. The interest rate charged by commercial deductions from taxable income.
banks on short-term loans to their most a. Tax shields
reliable and creditworthy customers. b. Tax shelter
a. Nominal rate c. Tax holiday
b. Primate rate d. Tax exemption
c. Effective rate e. Tax capitalization
d. Loan rate 1167. A tract of land that has been improved
e. All of the above with site improvements including streets,
1161. A specific value definition used by amenities, signage, etc. and divided into
accountants when classifying loan losses. lots for sale as either residential,
a. Fair value commercial or industrial sites.
b. Market value a. Subdivision
c. Loan value b. Condominium
d. Investment value c. Townhouses
e. Taxation value d. Farm lots
1162. Costs not directly associated with the e. All of the above
STRUCTURE but incurred during the 1168. A study that defines the demographics
construction period. Also called soft costs. and other characteristics of a user
a. Overhead cost population to see who they are and what
b. Direct cost can be sold to them.
c. Operational cost a. Demand analysis
d. Building cost b. Targeting analysis
e. Indirect cost c. Supply analysis
1163. One of four criteria in highest and best d. Market analysis
use analysis. For a use to be the highest e. Data analysis
and best use, the size, shape and terrain of 1169. Property that is held primarily for
the property must be able to accommodate future sale. Value is based on the future
the use. highest and best use.
a. Legally permissible a. HABU
b. Financially viable b. Investment
c. Most profitable c. Speculative use
d. Physically possible d. Profitable use
e. Maximally productive e. Value in use
1164. An identified parcel of tract of land, 1170. An annual rate of return that results
including improvements if any. when income received is greater than the
a. Land invested capital.
b. Personal property a. Return on capital
c. Land holdings b. Current ratio
d. Real estate c. NPV
238
 d. Return of capital b. Replacement cost
e. IRR c. Cost approach
1171. A study of the outcome occurring d. Duplication approach
under different scenarios. e. Income approach
a. Prediction 1177. An annual cash flow in which either the
b. Prognosis operating expenses are less than the
c. Hypothesis total income generated by an investment
d. Probability analysis or the operating expenses plus any annual
e. Diagnostic analysis debt service are less than the income
1172. Current expenditures for minor generated.
alterations required to keep a building in a. Negative cash flow
operating condition. This term does not b. Break-even cash flow
include replacement or renovation of c. Positive cash flow
substantial parts of the bilding or change in d. Equilibrium point of cash flow
material or form of a building. e. All of the above
a. Repairs 1178. The cost of constructing a building today
b. Enhancement with a structure having the same functional
c. Utilization utility as a structure being appraised. The
d. Replacement cost includes construction using modern
e. Preservation materials and modern techniques.
1173. The interactions of lenders who originate a. Reproduction cost
loans for borrowers usually service the b. Replacement cost
loans and bear the long-term financing risk. c. Substitute cost
a. Secondary market d. Alternative cost
b. Primary mortgage market e. Eventual cost
c. Private mortgage market 1179. The total cash outlay needed to
d. Public mortgage market complete a project including cost such as
e. Secondary mortgage market those needed to obtain construction, land,
1174. Characteristics of potential buyers and equipment, financing and professional
tenants including their attitudes, habits, compensation.
lifestyles, tastes, and preferences. a. Capital equity
a. Lifestyle characteristics b. Debt equity
b. Level of income c. Project equity
c. Market characteristics d. Derivatives approach
d. Psychographic characteristics e. Project cost
e. None of the above 1180. A system of recording construction
1175. The government right to regulate contract income in which income is
property for the purpose of protecting public estimated by the percentage of
safety, health and general welfare, e.g., construction completed. Performance is
condemnation, rent control, zoning. often measured by the amount of costs
a. Expropriation incurred.
b. Police power a. Completion method
c. Zoning b. Percentage of completion method
d. Taxation c. Phases by phase method
e. People’s rights d. Development percentage method
1176. The cost of constructing a building today e. Production development method
with an extra duplicate or replica of a 1181. A financing technique by which the
structure being appraised including all owner sells a property and subsequently
deficiencies, super adequacies and rents it from the buyer for continued use.
obsolescence that are in the current a. Sales-leaseback
building. b. Leaseback
a. Reproduction cost c. Pacto de retro
239
 d. Buy/sale/leaseback d. None of the above
e. All of the above except C 1188. In relation to public, what are the
1182. A percentage number that represents social responsibilities of consultants:
the likelihood that an event will occur. a. Imbued with social responsibilities and
a. Chance conscience being part of society
b. Nil b. Cooperate with t7he government in
c. Prediction protecting the public against deceit,
d. Gut feel misrepresentation, unfair, relevant
e. Probability information and other related unethical
1183. This study identifies whether the product and malpractices of unlicensed and
could be produced at the desirable unauthorized practitioners.
volume and standards of quality with c. Endeavor to present the full disclosure
minimum cost. of pertinent and material facts on the
a. Technical study subject property in advertisements.
b. Market study d. All of the above
c. Financial study 1189. In relation to client, the consultant
d. Management study must adhere the following except:
e. All of the above a. Must be prudent and in good faith in
1184. What is the law that governed the protecting and promoting the interest of
practice of real estate service in the the client
Philippines? b. Shall not accept any professional fee
a. RA No. 9646 from any party except his/her client
b. RA No. 6552 c. Shall charge professional fee even if
c. RA No. 71904 it is not within the standard set by the
d. RA No. 10023 industry
e. None of the above d. All of the above
1185. Pursuant to Section 35, Article IV of RA 1190. In relation to fellow practitioners, the
9646 on the Code of Ethics and consultant must establish fiduciary
Responsibilities, who will approve, adopt relationship, which of the following that will
and promulgate this code of ethics? subscribe this relationship:
a. Professional Regulation Commission a. Shall not use any documents without
b. PRBRES & PRC written consent by the other practitioner
c. PhilRes b. Shall not use or solicit the services of
d. AIPO the employee of another practitioner
1186. On the Professional Rules of Conduct without the written consent by the latter
and Responsibilities, the practitioners shall c. Brokers can engage in slander, oral
be governed by the following: defamation, etc.
a. Relation to Government & Public d. A & B
b. Relation to Principals 1191. In relation to AIPO, consultants must
c. Relation to Fellow Practitioners abide the articles of incorporation and
d. Relation to AIPO bylaws and also must observe and comply
e. All of the above on the following:
1187. In relation to government, which of the a. Shall not swear to support the AIPO
following is the exception for consultants: financially
a. Secure license, permits as required by b. Shall not comply the Code of Ethics and
law Responsibilities
b. Pay all professional fees and taxes for c. Participate in the affairs of AIPO in all
the practice of real estate aspects of its existence
c. Should not encourage, tolerate, and d. A & B
participate in the evasion or illegal 1192. What are the laws governing real
reduction in the payment of all taxes that property taxation?
is due to government
240
 a. Tax Code of 1997 & Local c. Php750,000.00
Government Code of 1991 d. Php400,250.00
b. National Internal Revenue Code of 1997 1200. Threshold for VAT exemption for
c. Comprehensive Tax Reform Program or Socialized Housing?
CTRP a. Php450,000.00
d. Republic Act No. 8424 b. Php750,000.00
1193. Price at which a willing seller is willing to c. Php2,000,000.00
sell and a buyer willing to buy, both being d. Php225,000.00
under no abnormal pressure to sell or buy. 1201. Salient features of RA 7279 requires
a. Fair market value developers to develop for socialized
b. Real estate market housing an area equivalent to 20% of the
c. Zonal value gross area or project cost of the main
d. All of the above subdivision project, at the option of the
1194. Fair market values as determined by the developer. Which is more detailed
BIR in accordance with section 6 of the Tax interpretation of 20% provision?
Code. a. Land equivalent 20% & housing unit
a. Zonal value equivalent to 20% of the aggregate
b. Assessor’s value area of all housing units; OR 20% of
c. Real property the total cost of the project
d. All of the above b. 20% in the general project development
1195. Before determining the applicable tax c. 20% of the approved and negotiated
rate for any real estate transaction, the cost of development
classification of real property must be d. 20% as approved by LGUs and HLURB
determined as to whether it is. 1202. Under what Executive Order (1976) that
a. Capital asset designated the HLURB as the sole
b. Ordinary asset regulatory body for housing and land
c. Capital asset or ordinary asset development.
d. None of the above a. Executive Order No. 89 (1976)
1196. As defined, it is property held by the b. Executive Order No. 123 (1976)
taxpayer, whether or not connected with his c. Executive Order No. 90 (1976)
trade or business. d. None of the above
a. Capital asset 1203. PD 957 otherwise known as the
b. Ordinary asset Subdivision and Condominium Buyers
c. Stock in trade Protective Decree. Which is the exception
d. None of the above on its features?
1197. The following are ordinary assets a. Regulates sale of subdivision and
except: condominium units to buyers
a. Stock in trade of the taxpayer b. Defines sale to be covered by
b. Property subject depreciation registration
c. Property for sale to customer c. Defines duties and responsibilities of
d. Principal residence of the taxpayer owner/developer
1198. What are taxes covered in the Tax Code d. None of the above
of 1997 for real estate transaction? 1204. Under what law that authorized HLURB
a. Capital Gains Tax & Documentary to promulgate different levels of standards
Stamp Tax and technical requirements for economic
b. Estate & Donors Tax and socialized housing projects from those
c. VAT & Withholding Tax provided for under PD 957, PD 1216, PD
d. All of the above 1096 and PD 1185?
1199. What is the threshold for VAT a. Batas Pambansa 220
exemptions for Low Cost Housing? b. Republic Act 7279
a. Php225,000.00 c. Republic Act 7190
b. Php300,000.00 d. Republic Act 8763
241
1205. Defines open spaces in residential various rules. It vests legal status in a
subdivision and amended Sect. 31 of PD project such that its name may be changed
957. only upon proper application and publication
a. PD 1216 among other requirements.
b. PD 957 a. Certificate of Registration (CR)
c. PD 1586 b. License to Sell
d. All of the above c. CAR
1206. Local government is now responsible to d. All of the abov
the issuance of approval of subdivision 1211. This is an interest in real estate
plans to local government units subject to consisting of absolute ownership in a unit of
national laws and standards. residential, commercial, or industrial
a. Devolution of the function of HLURB buildings and common ownership of the
under the RA 7160 land and common areas of condominium
b. Revolution of local government units project.
c. Bigger role for the LGUs Sangguniang a. Townhouse
Panlalawigan or Panlunsod b. Time-share
d. None of the above c. Condominium
1207. It is an amendment to Section 4 and 16 d. Coops
of RA 4726 of the Condominium Act, please 1212. It is the totally of the site (land),
state under what Republic Act of 1995 that condominium units and common areas.
amended RA 4726? a. Condominium Project
a. RA 7899 (1995) b. Condominium Unit
b. RA 7898 c. Common Areas
c. RA 7897 d. None of the above
d. RA 7896 1213. This is the space encompassed by the
1208. Refers to housing programs and projects interior surface of the floor, ceiling, walls,
covering houses and lots or home lots only and exterior doors and windows, which is
undertaken by the Government or the susceptible of independent use and
private sector for the underprivileged and ownership.
homeless citizens which shall include sites a. Condominium Unit
and services development, long-term b. Condominium Project
financing liberation terms on interest c. Condominium
payments, and such other benefits in d. All of the above
accordance with RA 7279. 1214. Refer for the weight, bearing walls,
a. Socialized Housing Project column and beams, stairways, halls,
b. Economic Housing Project elevators, etc.
c. Upscale Housing Development Project a. Condominium Unit
d. Urban Poor Housing Development b. Condominium Project
Project c. Construction Materials
1209. Refers to the purchase by a person, d. Common Areas
natural or judicial, of more than one 1215. This is enabling act of any condominium
saleable lot or unit within HLURB approved project.
subdivision for the purpose of re-selling the a. Articles of Incorporation and Bylaws
same with or without introducing alternation b. Rules and Regulations
in the approved plan. c. Deed of Restrictions
a. Socialized Housing d. Master Deed
b. Bulk Buying 1216. It lays down the provisions for insurance
c. Bulk Selling coverage’s, the management body,
d. Bulk Housing Development maintenance costs and assessment basis
1210. An issuance of HLURB that is proper and audit.
only upon compliance with Section 4 of PD a. Deed of Restrictions
957 and other similar provisions of the b. Articles of Incorporation and Bylaws
242
 c. R & R Assessments for projects likely to have
d. All of the above significant environment impact.
1217. This is the evidence or proof of one’s a. EIA
ownership of the condominium unit. b. ECC
a. Condominium Certificate of Title c. EIS
(CCT) d. Philippine Environmental Impact
b. TCT Statement (PD1586)
c. COT 1225. Is the price of a commodity taken from
d. Free Patent the field of competition and controlled by a
1218. It is a partnership between the land person having exclusive right or ability to
owner and the developer wherein the produce the said commodity?
former contributes the raw land while the a. Manufacturer
latter undertakes and finances all the costs b. Price
to convert the land into a finished home site. c. Monopoly Price
a. Concept of Joint Venture Agreement d. Cost
b. Syndication 1226. Provides that after a certain amount of
c. Brokerage labor with the appropriate tools applied to
d. None of the above the cultivation of given crop on a particular
1219. Laws that ensure rational land use and piece of land, further application thereof
sustainable urban and regional would not yield proportional returns.
development. a. The Law of Diminishing Return
a. Executive Order No. 72 b. Principle of Productivity
b. Memorandum Circular No. 54 c. Principle of Supply and Demand
c. Executive Order No. 124 d. All of the above
d. All of the above 1227. The law that protect the rights of the
1220. It is a legislation providing for a subdivision homeowners and the
comprehensive and continuing urban homeowners association.
development and housing program. a. RA 9904
a. RA 7279 UDHA b. RA 9905
b. RA 7160 Local Government Code c. RA 9906
c. Letter of Instruction NO. 729 d. None of the above
d. Executive Order 72 1228. The law that covers the Real Estate
1221. A national agenda for sustainable Investment Trust (REIT).
development. a. RA 9856
a. A21 b. RA 1234
b. B22 c. RA 9646
c. Philippine Agenda 21 (PA21) d. RA 9904
d. Philippine Political Agenda of 21 1229. Real Estate Finance includes:
1222. CLUP stands for a. Succession
a. Comprehensive Land Use Plan b. Hypothecation
b. Comprehensive Land Uniform Program c. Accretion
c. Comprehensive Land Uniform Platform d. Avulsion
d. All of the above 1230. To be considered comparable to the
1223. PA21 HAS FIVE (5) GOAL ELEMENTS Subject property, a comparable property
a. Poverty Reduction & Social Equity must have been sold-
b. Empowerment ad Good Governance a. With a conventional mortgage
c. Peace and Solidarity b. In an arm’s length transaction
d. Ecological Integrity c. For all cash
e. All of the above d. Without any form of secondary
1224. The legal and procedural framework for 1231. A property is alienated or sold to creditor
conducting Environmental Impact to satisfy a debt in money or in payment of
the loan.
243
 a. Foreclosure a. Market survey
b. Mortgage b. Development Permit or procurement
c. Dacion en Pago of approval
d. Sale c. Topographic survey
1232. The method of construction cost or d. Purchasing power
reproduction cost estimating. 1239. To determine the marketability of a
a. Volume Method proposed subdivision, the following should
b. Area Method be
c. Quantity Survey Method a. Land Conversion
d. Abstraction Method b. Market Aspect
1233. Neighborhood social influences include c. Development Permit
all of the following except d. Loan Collateral
a. Occupant age levels 1240. A type of subdivision wherein a street,
b. Vacancy rates passageway or open space is delineated is
c. Population density called,
d. Occupant skill levels a. Ancestral Domain
1234. This refers to the value an improvement b. Complex Subdivision
adds to the overall value of the property. c. Development Project
a. Contribution d. Simple Subdivision
b. Plottage value 1241. Subdivision project development field
c. Highest and Best Use works includes the following except
d. Salvage Value a. Relocation Survey
1235. What are the types of depreciation? b. Road Works
a. Physical depreciation, Functional c. Market Surveyor
Obsolescence, Accrued Depreciation d. Water Lines Construction
b. Physical depreciation, Functional 1242. The partnership between the landowner
Obsolescence, External and the developer wherein the former
Obsolescence contributes his Rawland while the latter
c. Physical depreciation, Accrued undertakes and finances all the costs to
Depreciation, External Obsolescence convert the land into a finished home site is
d. Accrued Depreciation, External called a;
Obsolescence a. Master Deeds
1236. As defined by PD# 957, a tract of land b. Joint Venture
registered under PD 1529 primarily c. Contract to Sell
partitioned into individual lots for residential d. Mortgage Agreement
purpose with or without improvements
thereon and offered for sale to the public in Part I: FUNDAMENTALS OF REAL ESTATE
cash or installment is called, SERVICES
a. Subdivide ME Set S- 1.1 100 item
b. Distribution
c. Subdivision 1243. Real estate is
d. Subdivision Project a. The rights in realty
1237. A type of subdivision where no street or b. The physical land and appurtenances
open space is delineated is called, affixed to the land
a. Subdivision Lot c. What transfers on the day of closing
b. Simple Subdivision d. The “bundle of rights"
c. Commercial Complex 1244. The addition to the through processes of
d. Memorial Parks nature , such as deposits of soil carried by
1238. A step included in the planning and streams,
development of a subdivision project that a. Avulsion
allows the developer to commence work is b. Accretion
called, c. Alluvium
244
 d. Usufruct a. Acquisition
1245. The sudden removal of land one parcel b. condemnation
to another when a body of water, such as a c. Escheat
river, abruptly change d. Eminent domai
a. Avulsion 1253. Condemnation of private property for
b. Accretion public use is calledthe right of
c. Alluvium a. seizure
d. Usufruct b. escheat
1246. Real property includes c. Eminent Domain
a. Any and all buildings on the subject site d. Acquisition
b. All interests, benefits and rights 1254. All of the following areas of regulation
inherent in the ownership of real affect Broker EXCEPT
estate a. DTI
c. The physical land and appurtenances b. PRC
affixed to the land c. LGU Planning Office
d. Property that is not artificial d. DSWD
1247. The highest form of real property 1255. The form of deed used to return title to
ownership is. real estate to its owner when the debts
a. Homestead estate secured by a deed of fruit is paid in full is
b. Leasehold estate the
c. Fee simple a. Warranty deed
d. Life estate b. reconveyance deed
1248. Jackfruit that fell on the ground are c. Quitclaim deed
a. ordinarily real estate d. Tax deed
b. ordinarily personal property 1256. Tenancy by the entirety is a form of
c. Both of the above a. martial property ownership
d. None of the above b. Tenancy in common
1249. Jose owns a house a parcel that c. Business property ownership
includes an easement over the adjoining d. Ownership in severalty
property of Tom Yan. Jose property is the 1257. The four unities required for a joint
a. servient tenement tenancy include
b. dominant tenement a. Tenancy, location, title, and possession
c. For sale property b. Time, title, interest, and possession
d. None of the above c. Possession, ownership, use, and
1250. Co-owners who have an equal right of enjoyment
prossession coupled with a right of d. Title, time, location, and possessio
survivorshiphave 1258. A life estate is a (n)
a. Tenancy in common a. present, possessory interest
b. Join tenancy b. future interest.
c. Tenancy in partnership c. Estate of tenancy
d. Martial property d. Fee simple defeasible.
1251. In what form of property ownershipis an 1259. During the research of a subject
exclusive right to an identified segmentof property an appraiser learns the occupants
airspace conveyed along with an interest in (parents) have been granted a life estate by
common in the rest of the parcel? their children. What interest do the
a. house and lot childrenhold in the property?
b. town house a. Remainder man
c. Both of the above b. Life tenant
d. Condominium c. Trustee
1252. The property of aperson who dies d. Trustor
leaving no heirs passes to the state by the 1260. Propertyacquired by a spouse during
right of marriageby gift or inheritance is
245
 a. Martial property exemption as an incentives, to locate
b. Community property within their jurisdictions
c. Separate property c. Commercial buildings leased in party
d. Jointly owned property by nonprofit foundations
1261. A deed of trust is d. State colleges and universities
a. A document that makes a third party e. A state capitol
responsible for the money 1268. A person owning less than the entire
b. Document that gives a third party the bundle of rights has
deed until the mortgage loan is paid a. Escheat
off b. Fee simple title
c. A deed given by a prisoner who has c. Personal property
behaved for many years d. A fee tail
d. Used as a tool to make foreclose more 1269. Refers to the compulsory successional
efficient rights granted by the law and the same
1262. Under a deed of fruit, the property owner cannot be taken by anybody except when
is the alienated during the lifetime of the testor
a. Trustor with consideration
b. trustee a. Legitime
c. Beneficiary b. Succession
d. Reconveyance c. Testate
1263. Which of the following liens takes priority d. Intestate
over all other liens? e. Hier
a. real estate tax liens 1270. Immovable or real property in favor the
b. mortgage liens easement is established
c. Judgment liens a. Servient estate
d. Mechanic’s liens b. Dominant
1264. Which is evidence of real estate c. Land estate
ownership? d. Fixture
a. simple e. Legitime
b. title 1271. Immovable or real property subjected to
c. Mortgage the easement established
d. Tax declaration a. Servient estate
1265. Which of the following is Not a type of b. Dominant estate
building code? c. Land estate
a. fire code d. Fixture
b. Rent control code e. Legitime
c. electrical code 1272. Buyers who paidpaid installmentof less
d. plumbing code than 2 years are also protected by the
1266. zoning is an exercise of the Maceda law andentitled to grace period of
a. equity courts ___ days from the added their installment
b. police power become due and demandable
c. environmental Protection Agency a. 30 days
d. right of condemnation b. 20 days
e. right of escheat c. 60 days
1267. which of the following types of of d. 15 days
property is subject to ad valorem taxation? e. 25 days
a. Property owned by a religious 1273. Maceda, how many times the can the
organization and used for a religious buyers exercise his rights
purpose a. Once every 10 years
b. New industrial plants that state and local b. Once every 2 years
governments have induced, with tax c. Once every 5 years
d. Once every 3 years
246
 e. None of the above b. Police power
1274. Anything which is or may be the object c. Zoning
of appropriation d. Eminent domain
a. Tax e. Taxation
b. Equipment 1281. Refers to the used of restrictions of a
c. Property particular areas or delineation of allowable
d. Asset areas for use
e. Real estate a. Escheat
1275. Real properties used for family homes or b. Police power
house and lot where the family resides c. Zoning
a. Life estate d. Eminent domain
b. Fee tail e. Taxation
c. Homestead estate 1282. Under the phil constitution that every
d. Real estate property owners are bound to used or
e. Remainder utilized their lands in a manner that will
1276. Doctrine which reserve to the state the promote welfare and benefits not only for
full ownership of all natural resources or themselves but also for the state
natural wealth that may be found in the a. Public domain
bowels of the earth. b. Res allicujos
a. Public domain c. Res alienate
b. Res allicujos d. Regalia doctrine
c. Res alienate e. Stewardship principle
d. Regalian doctrine 1283. Owner of the property adjoining or
e. Stewardship principle abutting the bank of river
1277. Rightsto the stateto en act laws enforce a. Avulsion
them for the safety, order, health, morals b. Accession
and general welfare of the public c. Riparian owner
a. Escheat d. Land owner
b. Police power e. Land lord
c. Zoning 1284. Property owned by the state in its
d. Eminent domain proprietary or private capacity which is not
e. Taxation devoted to public used or public service and
1278. Power of the state to imposed and the development of national wealth
collect takes and other charges on real a. Public domain
state b. Res allicujos
a. Escheat c. Patrimonial property
b. Police power d. Regalia doctrine
c. Zoning e. Stewardship principle
d. Eminent domain 1285. Any and unknown deposit of money,
e. Taxation precious object or jewelry and the lawful
1279. Reversion of privately ownedproperties ownership thereof is unknown. Its
in favor of the state upon the death of the ownership belongs to the land
owner whoo is not survived with any heir a. Yamasita treasure
a. Escheat b. Hidden treasure
b. Police power c. Accession
c. Zoning d. Alluvium
d. Eminent domain e. Minerals
e. Taxation 1286. The absense of marriage settlements, or
1280. Power of the state to take private when the regime is void what system shall
property for public use upon payment of just govern
compensation a. Co ownership
a. Escheat b. Judicial settlement
247
 c. Absolute community of property 1293. Mode of acquiring property ownership
d. Extra judicial and other real rights through the laps of
e. Capital property time in the manner provided by law
1287. Exclusive property brought by the a. Occupation
husband to the marriage as his own. b. Adverse claim
a. Co ownership c. Forcible entry
b. Judicial settlement d. Prescription
c. Absolute community of property e. Accion publiciana
d. Extra judicial 1294. Summary action to recover physical
e. Capital property possession of real property when a person
1288. Exclsuive property brought by the wife to originally in in possession thereof is deprive
the marriageas his own. by force, strategy, threat, intimidation or
a. Coownership stealth
b. Paraphernal property a. Occupation
c. Absolute community of property b. Adverse claim
d. Extra judicial c. Forcible entry
e. Capital property d. Prescription
1289. Right of common dominion which two or e. Accion publiciana
more persons have in spiritual part of the 1295. Legal provision which requires
property or thing which is not physical agreement for the sale estate to be in
divided writing in order to binding
a. Co ownership a. Occupation
b. Paraphernal property b. Adverse claim
c. Absolute property c. Statute of fraud
d. Extra judicial d. Prescription
e. Capital property e. Accion publiciana
1290. Land in public domain that can only 1296. Renewal of professional id card of resp
alienated a. Every year
a. Timber b. 2 years
b. Mineral c. 3 years
c. Parks d. 4 years
d. Agricultural e. 5 years
e. Forest 1297. Minimum requirement for applicant for
1291. Act liberality the person disposes real estate broker exam is
gratuitously a property or right in favor of a. 80 units in college
another who accept it b. 60 units in college
a. Legitime c. Holder of vocational
b. Inheritance d. Holder college degree
c. Donation e. High school graduate
d. Usufruct 1298. Real estate practitioner to be appointed
e. Will as member of the PRBRES provided that
1292. Real right by virtue of which person is the prior his appointment he has been
given right to enjoy the property of another active for at least
with the obligation of preserving its form and a. 5 years
substances. b. 20 years
a. Legitime c. 15 years
b. Inheritance d. 10 years
c. Donation e. 25 years
d. Usufruct 1299. Real estate service practitioner consist
e. Will of the following except
a. Real estate sales person
b. Real estate assessor
248
 c. Real estate appraiser d. Allowing an unqualified person to
d. Real estate broker practice the profession by using ones
e. Real estate dealer certificate of registrations
1300. In order to qualify for registration without 1305. What should be indicated by the broker
examination, assessor and appraiser must in his letterhead, dry seal, sigh board,
have the following advertisement or other announcement in
a. Have relevant CPE credit units to the relation to real service practice
satisfaction of the board a. Price of the property
b. Have passed RPAO examination b. Address of the owner
c. Holds permanent appointment on the c. Ptr number
date of the effectivity of RA 9646 OR AS d. License number
JULY 30, 2009 e. House number
d. Have at least experience on real 1306. Following are restriction of property
property appraisal or assessment rights except
e. Completed at least 120 accredited a. Zoning
training on real property appraisal b. Escrow
f. Fail of the aboved c. Taxation
1301. The following subject in the real estate d. Escheat
broker exam licensure exam except 1307. Former natural born Filipino citizen who
a. Property management acquired foreign citizenship and has not
b. Subdivision development applied and been granted dual citizenship ,
c. Real estate laws and taxation can purchase for his use as residence
d. Fundamentals of property ownership a. 1,000 sq.m. of urban land and 1 has
e. Code of ethics and responsibilities of rural land
1302. The board may reinstate any revoked b. 1,000 sq.m. of urban land and 2 has of
certificate of registration rural land
a. For reasons deemed proper and c. 1,000 sq.m. of urban land and 5 has of
sufficient rural land
b. Upon application and compliance with d. 1,000 sq.m. of urban land and 3 has of
the require. CPE rural land
c. After the expiration of 2 years from the 1308. Increase in value of real estate without
date of revocation any effort or expense of the owner
d. None of the above a. Avulsion
e. All of the above b. Accession
1303. The national integrated organization of c. Adhesion
natural person duly registered and license d. Erosion
as real estate service practitioner 1309. Acquisition of alienable land of the public
a. Philippine association of real estate domain by homestead patent, free patent,
practitioner sale patent,government awards
b. Philippine realtors board a. Private grant
c. Philippine regulation commission b. Inheritance
d. Accredited and integrated c. Involuntary
professional organization d. Public grant
e. All of the above 1310. In the absence of pre-nuptial agreement
1304. Any of these acts shall be ground fo all properties of the husband and wife shall
revocationof license except. only have a total retention of
a. Non-payment of dues a. 1 has
b. Engaging in the practice of the b. 5 has
professional during the period of one c. 10 has
suspension d. 3 has
c. Unprofessional or unethical 1311. Based on net gift the maximum rate of
donor tax on stranger is
249
 a. 20% a. 90 days from the death of the decedent
b. 10% b. 120 days from the death of the
c. 15% decedent
d. 30% c. 60 days from the death of the decedent
1312. The rate of levy of real estate tax is not d. 180 days from the death of the
more than decedent
a. 5% 1319. Taxpayer hasto redeem his real property
b. 2% which was levied and subsequently foreited
c. 10% and acquired by the lcal government
d. 20% delinquency
1313. Under the local government code, a. 3 years
agricultural lands of more than one hectare b. 5 years
are subject to additional tax of no more than c. 1 year
5% of assessed value when at lest d. 2 years
a. Entire area is uncultivated 1320. The following composed the board of
b. 50% of the area is uncultivated assessment of Makati city, except
c. 30%of the area is uncultivated a. City assessor
d. 20% of the area is uncultivated b. City treasurer
1314. Annual levy on real estate equivalent to c. Registered of deed
1% of the assessed value which shall be in d. City engineer
addition to the basic real estate tax 1321. Documentary stamp tax on the sale of
a. Ad valorem tax propertymust be paid
b. Exercise tax a. Within 30 days from the date of
c. Special education fund tax notarization
d. Vat b. Within 5 days after the close of the
1315. Capital gains on the sale of real estate month of the date of sale
classified as capital asset is c. Within 10 days after the close of the
a. Prepaid income tax month of the date of sale
b. Creditable tax on sale d. At the time payment of capital gains tax
c. Expanded withholding tax 1322. Value placed on taxable property by the
d. Creditable tax on sale assessor for ad valorem tax purpose
1316. BIR revenue regulation no 17-2003, the a. Economic value
seller ofa family home failed to utilized the b. Appraised value
proceeds too acquire a new residence c. Assessed value
within 18 months from the sale shall be d. Market value
assessed additional deficiency capital gains 1323. The property sold is an ordinary asset,
tax inclusive of penalties whatis the applicable tax
a. 5% p.a a. Estate tax
b. 25% p.a b. Percentage tax
c. 20% p.a c. Capital gains tax
d. 10% p.a d. Creditable withholding tax
1317. Ground floor of a condominium 1324. Sale of a dealer of a residential dwelling
projectper BIR 28-29 shall be considered as is not subject to E-VAT when the price does
commercial and additional rate shall be not exceed
added on established residential zonal a. 1,500,000.00
value of b. 2,500,000.00
a. 20% c. 1,000,000.00
b. 10% d. 3,000,000.00
c. 15% 1325. In order to qualify for registration without
d. 25% examination, twenty four hours of continuing
1318. The estate tax return shall be filed with professional educational (CPE) credits are
the BIRwithin needed for:
250
 a. A licensed broker who failed to renew
his license prior to July30, 2009
b. Those who had passed the2009 & 2008
licensure examinations given by DTI but
who had failed to renew their license
upon the effectivity of RA 9646
c. Those who had passed the DTI
licensure examinations given by DTI but
who had failed to renew their license
upon the effectivity of RA 9646
d. Those who had passed the DTI
licensure examinations in 2006 and prior
years but who had failed to renew their
license upon the effectivity of RA 9646
e. None of the above
1326. In order to qualify for registration without
examination, fifteen hours of continuing
professional educational (CPE) credits
are needed for:
a. A licensed broker who failed to renew
his license prior to July30, 2009
b. Those who had passed the2009 &
2008 licensure examinations given by
DTI but who had failed to renew their
license upon the effectivity of RA
9646.
c. Those who had passed the DTI
licensure examinations given by DTI but
who had failed to renew their license
upon the effectivity of RA 9646
d. Those who had passed the DTI
licensure examinations in 2006 and prior
years but who had failed to renew their
license upon the effectivity of RA 9646
e. None of the above
1327. In order to qualify for registration without
examination, eighteen hours of continuing
professional educational (CPE) credits are
needed for:
a. A licensed broker who failed to renew
his license prior to July30, 2009
b. Those who had passed the2009 & 2008
licensure examinations given by DTI but
who had failed to renew their license
upon the effectivity of RA 9646
c. Those who had passed the DTI
licensure examinations given by DTI
but who had failed to renew their
license upon the effectivity of RA
9646
d. Those who had passed the DTI
licensure examinations in 2006 and prior
years but who had failed to renew their
license upon the effectivity of RA 9646
e. None of the above
1328. In order to qualify for registration without
examination, one hundred twenty hours of
continuing professional educational (CPE)
credits are needed for:
a. A licensed broker who failed to renew
his license prior to July30, 2009
b. Those who had passed the2009 & 2008
licensure examinations given by DTI but
who had failed to renew their license
upon the effectivity of RA 9646
c. Those who had passed the DTI
licensure examinations given by DTI bu
who had failed to renew their license
upon the effectivity of RA 9646
d. Those who had passed the DTI
licensure examinations in 2006 and
prior years but who had failed to
renew their license upon the
effectivity of RA 9646
e. None of the above
1329. In order to qualify for registered without
examination, assessors and appraisers
must have the following qualifications:
a. Holds permanent appointment on the
date of effectivity of RA 9646 or as of
July 30, 2009
b. Is performing actual appraisal and
assessment functions for the last 5
years
c. Have passed the Real Property
Assessing Officer (RPAO) Examination
d. Have at least ten years actual
experience in real property appraisal or
assessment and Completed at least one
hundred twenty hours of accredited
training on real property appraisal
e. All of the above
1330. The realty servicepractice can be
performed by juridical persons, except:
a. Real estate salesperson
b. Real estate broker
c. Real estate appraiser
d. Real estate consultant
e. All of the above
1331. The national integrated organization of
natural persons duly registered and
licensed as real estate service practitioners
a. Accredited and Integrated
Professional Organization
251
 b. Professional Regulatory Board of Real a. B.P. 185
Estate Service b. P.D. 957
c. Professional Regulatory Commission c. Act 2728
d. Philippine Association of Real Estate d. R.A 7042
Practitioners e. None of the above
e. None of the above 1338. Ownership of land can be acquired
1332. Conducts license examinations for the through any of the following except:
practice of the real estate service a. Tradition
procession b. Occupation
a. Accredited and Integrated Professional c. Prescription
Organization d. Accretion
b. Professional Regulatory Board of e. Succession
Real Estate Service 1339. Title to an inherited property may be
c. Professional Regulation Commission transferredto the sole upon payment of
d. Philippine Association of Real Estate estate tax andexecution and registration of
Practitioners a legal document:
e. None of the above a. Extra-judicial Settlement of Estate
1333. The minimum educational requirement b. Extra-judicial Partition of Estate
for an applicant for real estate broker’s c. Affidavit of Consolidation
license is: d. Affidavit of adjudication
a. Holder of bachelor’s degree 1340. A TCT has an annotation that” subject to
b. 72 units in college Sec.4, Rule 74of the Rules of Court. It
c. 82 units in college means that the property is subject to claim
d. 108 units in college by any their unduly deprived of lawful
e. 144 units in college participation in the settlement of the
1334. Any of these acts shall be grounds for decedent’s estate within:
revocation of license except: a. 2 years
a. Procurement of Certificate of b. 6 years
Registration of real estate service c. 4 years
practitioner by fraud or deceit d. 10 years
b. Unprofessional or unethical conduct e. None of the above
c. Allowing an unqualified person to 1341. Special power of attorney is necessary
practice the practice the profession by in the following cases except:
using one’s certificate of registration a. To perform acts of administration
d. Non-payment of dues b. To lease real property for more than one
e. Misleading ad year
1335. Conjugal partnership can be dissolved c. To convey real rights on immovable
by: property
a. Legal separation d. To cancel any obligation gratuitously
b. Annulment of marriage e. None of the above
c. Judicial separation of property 1342. It is an encumbrance imposed upon an
d. Any of the above immovable for the benefit of another
e. None of the above immovable belonging to another
1336. The best evidence of ownership is a. Nuisance per se
a. Tax declaration b. Private nuisance
b. Torrens title c. Right of way
c. Technical description d. Easement
d. Vicinity map e. None of the above
e. None of the above
1337. A former natura lborn Filipino citizen can MOCK EXAM SET S -1.2
acquire not more than 5,000 sq.m. of urban
land for business purpose under.
252
1343. The right of the following to the
ownership of everything which is produced
by the land or which is incorporated or
attached thereto, either naturally or
artificially is known as:
a. Prescription
b. Adverse possession
c. Accession
d. Laches
e. None of the above
1344. Property escheated to the government is
considered as:
a. Public Dominion
b. Regalia Property
c. Land and Public Domain
d. Patrimonial Property
e. All of the above
1345. The following are public dominion,
except:
a. Navigable river converted into finished
b. Public plaza converted into housing
project
c. Natural resources
d. Canal
e. Subdivision roads
1346. Husband and wife can sell proeprty to
each other in the following circumstances:
a. Separation of property was agreed upon
in the pre-nuptial agreement
b. There has been a judicial separation of
property
c. There has been a legal separation
d. Any of the above
1347. An annual levy on real estate
equivalentto one percent (1%) of the
assessed value which shall be in addition
shall be in addition to the basic real estate
tax is:
a. Special assessment tax
b. Special education fund tax
c. Ad valorem ax
d. Excise tax
e. Special real estate tax
1348. Capital gains tax on the sale of real
estate classified as capitalasset is a:
a. Creditable tax on the sale
b. Deduction from value added tax e
c. Deduction item from income tax
d. Expanded withholding tax
e. Prepared income tax
1349. Under the Local Government Code,
agricultural lands of more than one hectare
are subject to additional tax of no more than
5% of assessed value when at least ____:
a. Entire area is uncultivated
b. 20% of the area is uncultivated
c. 30% of the area is uncultivated
d. 40% of the area is uncultivated
e. 50% of the area is uncultivated
1350. The documentary stamp on lease of real
estate is P3.00 for the first P2,000.00 or
fraction threof and additional.
a. P0.50 for every P1,000 in excess of the
first P2,000
b. P1.00 for every P1,000 in excess of
the first P2,000
c. P1.50 for every P1,000 in excess of the
first P2,000
d. P2.00 for every P1,000 in excess of the
first P2,000
e. P3.00 for every P1,000 in excess of the
first P2,000
1351. Under BIR Revenue Regulation No. 17-
2003, the seller of a family home who failed
to utilize the proceeds to acquire a new
residence within 18 months from the sale
shall be assessed additional deficiency
capital gains tax inclusive of penalties and:
a. 5% interest per annum
b. 15% interest per annum
c. 25% interest per annum
d. 10% interest per annum
e. 20% interest per annum
1352. The rate of real estate tax in
municipalities within Metro Manila is not
more than
a. One-half percent of assessed value
b. One percent of assessed value
c. Two percent of assessed value
d. Three percent of assessed value
e. None of the above
1353. Based on net gifts, the maximum rate of
door’s tax is:
a. Ten percent
b. Twenty percent
c. Fifteen percent
d. Twenty-five percent
e. Thirty percent
1354. The estate tax return shall be filed with
the BIR within:
a. 60 days from death of decedent
b. 90 days from death of decedent
c. 120 days from death of decedent
d. 180 days from death of decedent
253
 e. 240 days from death of decedent b. Fixed Assets
1355. Unde r the Local Government Code, the c. Capital; Assets
next period for the property owners to file d. Any of the above
sworn declaration of ownership and value e. None of the above
with the assessor is: 1361. In case of foreclosure sale where right of
a. Year 2008 redemption is not exercised by the
b. Year 2010 mortgagor, who pays the capital gains tax?
c. Year 2009 a. Owner-mortgagor
d. Year 2011 b. Creditor-bank
e. None of the above c. Buyer of the property
1356. The documentary stamp tax on the sale d. Any of the above
of property must be paid e. None of the above
a. Within thirty (30)days from the date of 1362. The documentarty stamp on every
notarization mortgage or pledge of real estate is:
b. Within five (5) days after the close of a. P20.00for the 1st P5,000.00 plus
the month of the date of sale P10.00 for every P5,000.00 thereafter
c. Within ten (10) days after close of the b. P10.00 for everyP5,000.00 or fraction
month of the date of sale thereof
d. At the time of payment of capital gains c. P15.00 for every P5,000.00 or fraction
tax thereof
e. At any time d. P2.00 on each P200.00 or fraction
1357. The schedule of fair market value in thereof
municipalities in Metro Manila is prepared e. None of the above
by: 1363. The sale of a dealerof a residential
a. MMDA dwelling is notsubject is to –VAT when the
b. Concerned Municipal Assessor price does notexceed:
c. None of the above a. P1,500,000.00
d. Bureau of Internal Revenue b. P2,500,000.00
e. Sangguniang Bayan by ordinance c. P1,000,000.00
1358. The amount of family home equivalent to d. P3,000,000.00
the fair market value considered as e. None of the above
allowable deductions from the estate of the 1364. During the entire year of 2007, total
decedent reciepts from the lease of 30 residential is
a. P 500,000.00 P2,200,000.00. how much is the output tax
b. P2,000,000.00 for the year 2007?
c. P 1,000,000.00 a. P22,000.00
d. P 750,000.00 b. P264,000.00
e. P 1,500,000.00 c. P800,000.00
1359. A taxpayer has ___ to redeem his real d. P600,000.00
property which was levied and subsequently e. None of the above (2.2M×12/112)
fortified and acquired by the local 1365. A tax fixed on documents,
government for tax delinquency. instrumentand papers evidence
a. 1 year acceptance, assignment or sale of right,
b. 4 years property or obligation:
c. 60 days a. Residence tax
d. 3 years b. Documentary tax
e. 2 years c. Community tax
1360. A bank’s acquired assets which from d. None of the above
part of its real estate inventories at the close 1366. A real estate property with license to sell
of its accounting period shall be classified and classified as ordinary asset was sold for
as: P2,200,000 inclusive of E-VAT. The
a. Ordinary Assets documentary stamp tax for the sale is
254
 a. P33,000 (2.2M×1.5%) a. 22.08%
b. P30,000 b. 27.60%
c. P22,000 c. 25%
d. P32,000 d. 18.27%
e. P35,000 e. 16.82%
1367. A real estate property with license to sell 1373. What is the taxable income for 2008?
and classified as ordinary asset was sold for a. P212,000
P2,200,000 inclusive of E-VAT. The b. P265,000
creditable withholding tax for the sale is c. P167,808
a. P33,000 d. P290,000
b. P60,000 e. P190,000
c. P50,000 1374. What is the taxable income for 2009?
d. P66,000 a. P212,000
e. P110,000 (2.2M×5%) b. P44,160
1368. Mr. Cruise sold to Mrs. Pitt (both natural c. P167,808
Filipino Citizens)in June 20 2008, a d. P290,000
residential lot for P960T, exclusive of e. P190,000
mortgage to be assumed by Mrs. Reed 1375. Under the local government code, the
amounting to P100T. Mrs. Pitt gave a down appraisal of the fair market value of real
payment of P160,000. Both agreed that the property shall be based on
balance will be paid in eight (8)equal a. Actual used
monthly installments beginning July of b. Independent appraisal value
2008. Mr. Cruise realized profit of twenty- c. Declaration of lot owner
five percent (25%) of cost. What is the d. Assessed value
selling price? 1376. A duly registered and licensed natural
a. P1,060,000 person who works in a local government
b. P960,000 unit and performed appraisal and
c. P1,200,000 assessment of real properties, including
d. P1,160,000 plants, equipment, and machineries
e. P1,260,000 essentially for taxation purposes.
1369. What is the contract price? a. Real estate purpose
a. P1,060,000 b. Real estate appraiser
b. P960,000 c. Real estate broker
c. P1,200,000 d. Real estate assessor
d. P1,160,000 e. Rea estate salesperson
e. P1,260,000 1377. A duly registered and licensed natural
1370. D How much is the amount of initial person who, for a professional fee,
payment for 6 months? compensation or other valuable
a. P1,060,000 consideration, offers or renders professional
b. P960,000 advice and judgment on: (i) the acquisition,
c. P760,000 enhan cement, preservation, utilization or
d. P1,160,000 disposition oflands or improvements
e. P1,260,000 thereon;and (ii) the conception, planning,
1371. How much is the gross profit based on management and development and
cost? development of real estate project.
a. P212,000 a. Real estate appraiser
b. P265,000 b. Real estate consultant
c. P240,000 c. Real estate Broker
d. P290,000 d. Real estate assessor
e. 190,000 e. Real estate salesperson
1372. How much is the gross profit rate for tax 1378. A duly accredited natural person who
purpose? perform service for , and in behalf of a real
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 estate broker who is registered and licensed a. Every year
by the Professional Regulatory Board of b. 3 years
Real Estate Service for or in expectation of c. 5 years
a share in the commission, professional fee, d. 7 years
compensation or other valuable e. 10 years
consideration. 1383. A tax imposed on the sale, donation,
a. Real estate appraiser barter or any mode of transferring real
b. Real estate consultant property ownership or title
c. Real estate broker a. Simple fee/tax
d. Real estate assessor b. filing fee/tax
e. Real estate salesperson c. Transfer fee/tax
1379. A duly registered licensed natural d. Registration fee
person who, professional fee, commissionor e. Excise tax
other valuableconsideration, acts as an 1384. What is the chairman of LBAA or Local
agent n a real estate transactionto offer, board of assessment Appeal.
advertise, solicit, list,promot, mediate, a. Provincial auditor
negotiate or effect the meeting of the minds b. City Treasurer
on the sale, purchase, exchange, mortgage, c. City Assessor
lease or joint venture, or other similar d. Register of Deeds
transactions on real estate or any interest e. Fiscal
therein. 1385. Tax imposed on every citizen of the
a. Real estate appraiser Philippines.
b. Real estate consultant a. Excise tax
c. Real estate broker b. Documentary tax
d. Real estate assessor c. Community tax
e. Real estate salesperson d. Real property tax
1380. A duly and licensed natural person who, e. Ad valorem tax
for a professional fee, compensation or 1386. All real estate broker and private
other valuable consideration, performs appraiser shall be required to post a
orrenders, or offers to perform service in professional indemnity insurance cash or
estimating and arriving at an opinion of or surety bond, in an amount with no less
acts as an expert on real estate valuers than__, without prejudice to additional
such services of which shall be finally requirement of the client. It will be
rendered by the presentation of the report in renewable every 3 years .
acceptable written form. a. 2,000 pesos
a. Real estate appraiser b. 5, pesos
b. Real estate consultant c. 10,000 pesos
c. Real estate broker d. 15,000 pesos
d. Real estate assessor e. 20,000 pesos
e. Real estate salesperson 1387. In corporation practice of real estate
1381. A zero Assessment level refers to an ercvice, there shall be at one license real
assessment of all building whose market estate broker for every
value does not exceed which are exempted a. 25 accredited salesperson
from the payment of real property taxes b. 20 accredited salesperson
a. 75,000.00 c. 30 accredited salesperson
b. 125,000.00 d. 35 accredited salesperson
c. 150,000.00 e. 40 accredited salesperson
d. 175,000.00 1388. What is PRBRES
e. 275,000.00 a. Philippines regulating board of real
1382. How often does the real property estate service
assessment be revised by the b. Philippine regulation board of real estate
City/Municipal assessor service
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 c. Philippine regulatory board of real
estate service
d. Philippine regulatory board of real estate
salesperson
1389. Who is the Chairperson of PBRES
a. Edgardo Gutierrez Ong
b. Hon. Ofelia Binag
c. Ernesto Gutierrez Ong
d. Bansan C. Choa
e. Nicolas P. Lapena, Jr.
1390. Who is the commissioner Of PRC 1396.
a. Edgardo Gutierrez Ong
b. Edgardo Gutierrez Ong
c. Ernesto Gutierrez Ong
d. Ernesto Gutierrez Ong
e. Bansan C. Choa
f. Nicolas P. Lapeña Jr.
1391. Refers to any natural or juridical person
engaged in the business of developing real
estate development project for his/her own
account and offering them for sale 1397.
a. Real estate person
b. Real estate development project
c. Real estate dealer
d. Real estate developer
e. Real estate consultant
1392. Composition of the board of PRBRES
a. 1 Chairperson and 3 members
b. 1 Chairperson and 2 members
c. 1 chairperson and 5memebers
d. 1 Chairperson and 4 members 1398.
e. 1 Chairperson and 7 member
1393. For Real estate sale person to be
accredited board must at least meet the ff.
requirements of
a. At least high school graduate and 80
credit units of seminar and training
b. At least 1 year of college and120 credit
units of seminar and training 1399.
c. At least high school graduate and 120
credit units of seminar and training
d. At least 2 years of college and 120
credit units of seminar and training
1394. Any violation of RA 9646, including of
IRR shall meted the capacity of a fine of not
less than ___ or imprisonment of not less
than ___ upon discretion of the court
a. 100,000.00 and 6 months
b. 50,000.00 and 2 years 1400.
c. 100,000.00 and 2 years
d. 100,000.00 and 1 year
1395. In relation to question number 633. In
case the violation is committed by
unlicensed real estate service practioner,
the penalty shall be___ the aforesaid fine
and imprisonment
a. Tripled
b. Fivefold
c. One half
d. Doubled
e. Reclusion perpetua
Is an action intended for the recovery of
a better right to possess, and is a plenary
action in an ordinary civil proceeding which
must be filed within the prescriptive period
of 10 years from disposition
a. Unlawful detainer
b. Accion reinvindicatoria
c. Accion publiciana
d. Replevin
e. Forcible entry
Is an a summary action to recovery
physical possession of real property when a
person originally in possession thereof is
deprive by; intimidation, force, stealth or
threat
a. Unlawful detainer
b. Accion reinvindicatoria
c. Accion publiciana
d. Replevin
e. Forecible entry
Is an action or provisional remedy filed
for the recovery of possession over
personal property.
a. Unlawful detainer
b. Accion reinvindicatoria
c. Accion publiciana
d. Replevin
e. Forecible entry
Is a kind of action that must be brought
between possession a landlord, vendor
vendee or other person of any land or
building is being unlawfully withheld after
the expiration of the right hold possession.
a. Unlawful detainer
b. Accion reinvindicatoria
c. Accionpubliciana
d. Replevin
e. Forecible entry
Is an action to recover ownership over a
real property, which shall be filed with in 10
years if the party seeks to acquire through
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 ordinary prescription or within 30 years if 1406. When to pay Estate Tax if the case is
through extraordinary prescription. settled judicially
a. Unlawful detainer a. Not exceeding2 years
b. Accion reinvindicatoria b. Not exceeding 3 years
c. Accion publiciana c. Not exceeding 4 years
d. Replevin d. Not exceeding 10 years
e. Forecible entry e. Not exceeding 5 years
1401. Shall refer to the ownership of 1407. A residential parcel of land located
intellectual property which includes outside metro manila has a Market value of
technical or professional books reviewer 500,000.00. how much is the basic yearly
and the like real property tax?
a. Patent a. 5,000.00
b. Copyright b. 1,500.00
c. Intellectuals c. 1,000.00 (500K×20%)×1%
d. Inventions d. 2,000.00
e. Discovery 1408. An industrial parcel of land located
1402. How much is the interest imposed on outside metro manila has a Market value of
delinquent real property tax payment, the 5,000,000.00. How much is the basic
tax payer shall pay an interest of ___ per yearly property tax and special education
month but not exceed___ month interest fund Tax?
until fully paid. a. 75,000.00
a. 3% and24 months b. 50,00.00
b. 1% and 36 months c. 60,000.00
c. ½ of 1% and 24 months d. 100,000.00
d. 2% and 36 months 1409. The Net Taxable estate of the decedent
e. 1.5% and 18 months is 15,000.00 How much is the estate Tax?
1403. How much is percentage of transfer fee a. 2,215,000.00
tax on Residential and Agricultural b. 3,500,000.00
properties based on FMV per tax c. 1,750,000.00
declaration of Contract Price which ever is d. 2,650,000.00
higher 1410. Mr. Reyes the Donee donated worth
a. 3/4of 2% 400,000.00 of car to his brother. How much
b. ½ of2% is the donor tax?
c. 1/3 of 1% a. 12,000.00
d. ½ of 1% b. 8,500.00
e. 1.5 % c. 9,750.00
1404. How much is percentage of transfer fee d. 10,000.00
tax on Commercial and industrial properties 1411. Ms. Beautiful donated 1,500,000.00
based on FMV per tax declaration or worth of Rolex watch to Mr. Pogi who is a
Contract Price which ever is higher stranger. How much is the donor’s tax rate
a. ¾ of 1% of Ms. Beautiful?
b. ½ of 2% a. 25%
c. 1/3 of 1% b. 35%
d. ½ of 1% c. 15%
e. 1.5 % d. 30%
1405. When to file Estate Tax return upon 1412. A machine classified as Residential
decedent death worth 250,000.00. How much is the
a. Within 3 months Assessed Value?
b. Within 4 months a. 225,000.00
c. With 5 months b. 125, 000.00
d. Within 6 months c. 200,000.00
e. Within a year d. 100,000.00
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1413. A machine classified as Agricultural b. HDMF
worth as Agricultural worth 250,000.00. c. HUDCC
How much is the Assessed Value? d. PDIC
a. 225,000.00 1420. A mortgage is a
b. 125,000.00 a. Document that makes a borrower
c. 200,000.00 promises to repay the money
d. 100,000.00 b. Document that gives the interest rate
1414. A building of Meralco Electric power and terms of a loan
company with Market Value of 25,000.00. c. Pledge of collateral for a real estate
How much loan
a. 400,000.00 d. Pledge of collateral for a car loan
b. 75,000.00 1421. Under a mortgage, the lender is the
c. 125,000.00 a. Mortgagor
d. 50,000.00 b. Mortgagee
c. Equity investor
Part II: special/Technical Knowledge d. Reconveyance
Mock Exam S-1.3 100 items 1422. The secondary mortgage market
a. Is where second mortgages are bought
1415. The four agents of production are and sold.
a. Land, labor, capital, improvements b. Is investor like Pag-IBIG, SSS, and
b. Land, labor, capital, entrepreneurship GSIS who buy and sell mortgage
c. Land, labor, capital, money loans.
d. Land, improvements, labor, materials c. Is in Makati
1416. Authorizes the local legislative body to d. Is Phil stock exchange
enact land use plan and zoning ordinance: 1423. A creditor’s claim against another’s real
a. National Internal Revenue Code (NIRC) property resulting from a debt owed to the
b. Local Governments Code (LGC) creditor is called a(an)
c. New Civil Code 9NCC) a. Easement
d. Revised Administrative Code b. Not
1417. A deed should be recorded because c. Judgment
a. Recording gives public notice of the d. Lien
transaction and sets the priority 1424. Private deed restrictions often are
b. It is required by law enforced through a
c. Title does not pass until the deed is a. Zoning variance
recorded b. Zoning board
d. Recording makes the deed a legal c. Homeowners’ association
document d. None of the above
1418. A land contract, also known as a 1425. In which of the following types of lease
conditional sales contract or installment arrangements does the lessee agree to pay
sales contract, is rent and assume the financial responsibility
a. A sale of real property where the seller for payment of specific operating expenses?
finance the sale and transfers the rights a. Gross lease
in realty b. Closed-end lease
b. A sale of real property with the seller c. Net-lease
financing the sale retaining the deed d. Ground lease
until the loan is paid off 1426. A revocable personal privilege allowing
c. A purchase agreement with many a person to go up or use land belonging to
conditions on another is called a (an)
d. A sales contract with a mortgage loan a. Easement
1419. The agency that now insures deposits in b. Encroachment
financial institutions is c. License
a. BSP d. Life estate
259
1427. Suppose a lease contract called for rent b. Objective
of P300 per square meter. However, similar c. Readily measurable
space in the market rented for P150 per d. A market phenomenon
square meter the amount specified in the e. Synonymous with market price
lease is known as the ___ rent. 1435. Document to be checked before buying
a. Contract a subdivision lot
b. Market a. License to sell
c. Economic b. Development permit
d. Overage c. Approve plan
1428. A series of equal periodic receipts is d. Map
referred to as a(an) 1436. Condominium act
a. Debt service a. RA 2774
b. Annuity b. RA 4276
c. Equity divided c. RA 4727
d. Amortization d. RA 4726
1429. In economics, the four factors of e. NOTA
production are 1437. Urban Development and housing Act
a. Land, labor, capital and improvements a. RA 7927
b. Land labor capital, and b. RA 7972
entrepreneurship c. RA 9279
c. Land, labor, capital and money d. RA 7279
d. Land, improvements, labor and e. NOTA
materials 1438. In the absence of any provision in the
e. Land, labor, site, and improvements master deed of a condominium project, the
1430. Which is NOT an agent of production interest of the unit owners in the common
a. Land areas shall be;
b. transaction a. Equal
c. Labor b. Based on value
d. Capital c. Decided by the condominium
e. Entrepreneurship corporation
1431. All of the following will affect the market d. Proportionate
value of a property EXCEPT e. NOTA
a. Political factors 1439. Unless justifiable cause, the period of
b. Legal use restriction completion of development of a subdivision
c. Acquisition cost to present owner project counted from issuance of license to
d. Economic factors sell is;
e. Social concerns a. Eighteen months
1432. Market value is____ the same as selling b. Twenty four months
price c. Six months
a. Always d. Twelve month
b. Never e. NOTA
c. Sometimes 1440. Registration of mortgage covering a
d. Usually subdivision project or completion of
e. None of the above development of a subdivision project is a
1433. Price is a. NHA
a. Market value b. HLURB
b. Most probable sales price c. LGU
c. Investment value d. HUDCC
d. A historical fact e. HIGC
e. All of the above 1441. A buyer of a subdivision lot on
1434. Value in use is installment after sufficient notice to the
a. Subjective developer discontinued paying amortization
260
 because the developer failed to develop the c. PD 1981
subd as certified by the HLURB in such a d. BP220
situation and under PD 957, the buyer is e. None of the above
entitled to a refund which would be 1448. The term of a condominium corporation
a. Total payment made less penalty is
charges a. 10 years
b. Total payment made less penalty plus b. 50 years
interest charges c. 25 years
c. Total payment made less penalty d. Co terminus with the duration of
charges and interest on total payment condo project
d. Total payment plus penalty charges e. All of the above
e. NOTA 1449. The performance bond for a subd.
1442. The minimum carriageway of road right Project may be in the form of a surely bond
of way for socialized housing project under equivalent to.
the IRR of BP 220. a. 30% of the development cost
a. 7M b. 40% of the development cost
b. 10M c. 20% of the development cost
c. 6M d. 10% of the development cost
d. 8M e. 25% of the development cost
e. 5M 1450. The areas reserve for parks, playground
1443. Jurisdiction for adjudication of buyers and recreational areas of a subd project
complaint against subd. Developer is with are.
the. a. Saleable lots
a. BTRCP b. Non alienable public land
b. HLURB c. Exclusively owned by the owner
c. HUDCC developer
d. NHA d. Co-owned by the developer and lot
e. NOTA owner
1444. Provided by RA 7279 a developer of 1451. The area reserved for roads, alleys and
subd. Project is required to develop and open spaces in a subd. Project with an area
equivalent 20% of the project for of one hectares or more is
a. Socialized housing a. 10% of the gross area
b. Economic housing b. 30% of the gross area
c. Open space c. 35% of the gross area
d. Commercial area d. 25% of the gross area
1445. Title to condominium unit is vested in. 1452. In mixed use condominium project, the
a. Lot owner of the condo project master deed may be amended by the
b. Corporation owning the building simple majority of unit owners. Majority is
c. Association of the bldg. based on.
d. Owner of the condominium unit a. Floor area of ownership
e. None of the above b. Number condominium units
1446. Sometimes referred to as a vertical c. Total area of condominium units
subd. d. All of the above
a. Condominium 1453. The amendment of master of deed of
b. Town houses condominium project is decided by the
c. Row houses majority of registered owners must be
d. Mansion approved by the HLURB and.
e. Hotel a. City or municipal council
1447. Subdivision and condominium b. City of Municipal Mayor
corporation is c. City of Municipal Engineer
a. PD 1216 d. City or Municipal Assessor
b. PD 957
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1454. Amendment to the master of deed of a c. Redemption
condominium project approved by majority d. Pacto de retro sale
of registered owner also need to be 1461. Liens can be found at the back of the
approved by the city engineer and title except;
a. NHA a. Mechanic liens
b. LRA b. Tax liens
c. LGU c. Judgment liens
d. HUDCC d. REM
e. HLURB 1462. Title to an inherited property maybe
1455. The conveyance of real estate in transferred to sole heir upon payment of
payment of an obligation. estate tax and execution and registration of
a. Dee of waiver a legal document;
b. Dacion en pago a. Affidavit of consolidation
c. Pacto de retro sale b. Affidavit of adjudication
d. Quit claim deed c. Judicial settlement of estate
e. Cession of ownership d. Extra judicial settlement of estate
1456. The voluntary transfer of title to real 1463. Mortgage which covers two or more
estate properties is
a. Alienation a. Close mortgage
b. Quitclaim b. Blanket mortgage
c. surrender c. Equitable mortgage
d. Adverse possession d. Open mortgage
e. Certificate e. Conventional mortgage
1457. A provision in the blanket mortgage that 1464. In the absence of any stipulation on the
property whose loan value has been fully period, the vendor in a pacto de retro sale
paid shall be released from the may repurchase the property within
mortgage. a. 6 years
a. Acceleration clause b. 4 years
b. Defeasance clause c. 10 years
c. Automatic redemption clause d. 15 years
d. Termination clause e. 5 year
1458. Stipulation in mortgage contract where 1465. Maximum period can a foreigner may
the mortgage is authorized to appropriate leased land in the Philippines is
the property upon default or non payment of a. 25 years
debt. b. 50 years
a. Pactum de aliendo c. 99 years
b. Pactum commissorium d. 40 years
c. Tacita reconduta e. 75 years
d. Pledge 1466. Registration of real estate instrument
1459. A contract where the property is can be given due course even without the
hypothecated to secure an obligation where presentation of the owner duplicate
the creditor is given right to possess the certification of title when the documents.
property and collect the fruits there of is. a. Notice of lis pendins
a. Equitable mortgage b. Writ of attachment
b. Antichresis c. Notice of adverse claim
c. Real estate mortgage d. REM
d. Blanket mortgage e. Tax liens
1460. Short of foreclosure, the mortgagor 1467. Under the rent control law, the lessor
agrees to transfer ownership of the may ask for a deposit rental not exceeding
mortgaged property to the mortgagee a. 5 mos
a. Dacion en pago b. 2 mos
b. Auction c. 3 mos
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 d. 1 mos d. Bureau of treasury
e. 4 mos e. HLURB
1468. Conjugal partnership can be dissolved 1474. In real estate business another term for
by the owner is
a. Judicial separation of property a. Principal
b. Conjugal property b. Customer
c. Absolute community of property c. Prospect
d. Conjugal partnership of gains d. Client
1469. Seizure of a property by the court order, e. Owner
usually done to have a it available in the tax 1475. Position assumed by the broker as an
event of adverse judgment in a pending suit agent for the principal is most accurately
a. Foreclosure described as
b. Attachment a. Fiduciary relationship
c. Conveyance b. Trustee
d. Escheat c. Trustor
e. Forfeiture d. Special power of attorney
1470. A TCT has an annotation that says’ e. Administrator
subject to sec.4 rule 74 of the rules of court. 1476. A stock corporation established
It means that the property is subject to claim principally for the purpose of owning income
by any heir who is unduly deprive of lawful generating real estate assets
participation in the settlement of estate; a. Real estate trust
a. 10 years b. Real estate company
b. 5 years c. Real estate investment trust
c. 4 years d. Real estate investment corporation
d. 2 years e. Philippine stock exchange
e. 1 year 1477. The Real estate investment trust act
1471. Following are types of property a. RA 9856
description ordinarily used in deeds, offer, b. RA 9886
contract, contract to sell except; c. RA 9865
a. Metes and bounds d. RA 9646
b. Monuments e. RA 9586
c. Lot number 1478. A real estate investment trust is a
d. Rectangular survey a. A public company
e. All of the above b. Upon and after listing, have at least
1472. Husband and wife can sell property top 1,000 public shareholders
each other in the following circumstances c. Maintain as a listed company in sec/pse
when; d. None of the above
a. spouses have been separated for e. All of the above
more than 10 years 1479. The sale of or transfer of real property to
b. there has been legal separation real estate investment trust, which includes
c. there has been judicial separation of the sale or transfer of any and all security
property interest thereto, shall be subject to.
d. separation of property was agreed upon a. 25% of the applicable DST
prenuptial agreement b. 10% of the applicable DST
e. all of the above c. 75% of the applicable DST
1473. in case of refusal of the lessor to accept d. 50% of the applicable DST
payment of the rental payment of the rental 1480. Income payment of the real estate
agreed upon, the lessee may either deposit investment trust shall be subject to a lower
by way of consignation the payment in creditable withholding tax of
a. bank a. 5%
b. court b. 7.5%
c. LGU c. 1%
263
 d. 2% d. Escrow
e. 10% e. Earnest money
1481. Real estate investment trust may only 1487. Sale where apportion of the purchase
invest in price is paid in cash and balance be paid
a. Real estate related asset thru assumption of existing mortgage
b. Debts securities, manage funds and a. Deed of sale with mortgage
listed shares issued by local or foreign b. Dation en pago
non property corporation c. Sale with assumption of mortgage
c. Real estate located in the phils. d. Open mortgage
d. Government securities issued in behalf e. Partial mortgage
of the GRP or the government of the 1488. Mortgage which permits borrowing
other countries and securities issued by additional funds as a later date against the
multilateral agencies same collateral
e. All of the above a. Blanket mortgage
1482. System of land registration by which the b. Real estate mortgage
title is recorded becomes indefeasible, c. Open ended mortgage
absolute and imprescriptible. d. Half end mortgage
a. Torres system e. Lease mortgage
b. Allen system 1489. Legal principle that these is deemed to
c. Torrens system be an implied new lease contract with the
d. Tax Declaration lessee continues to occupy the leased
e. Bonds premises for at least 15 days after the
1483. Notice of adverse claim annotated on expiration of the lease with the
title is valid only for acquiescense of the lessor.
a. 15 days a. Tacuta reconduccion
b. 90days b. Tacita reconduccion
c. 30 days c. Lease contract
d. 60 days d. Rent contract
e. 10 days e. Leasing and finance
1484. Some old Spanish title, the unit of 1490. Stipulation in mortgage from the used of
measure one 1”are”isequal to land of the forces inherent to the land
a. 10 sq.m. a. Deed of sale withy assumption of
b. 100 sq.m. mortgage
c. 1 sq.m. b. Antichresis
d. 1,000 sq.m. c. Pacto non aliendo
e. 10,000 sq.m. d. Blanket mortgage
1485. Condensed history of title, showing e. Open mortgage
various link in the chain of title, including 1491. Revenue derived from the used of land
liens, encumbrances and other conditions and of the forces inherent to the land.
affecting the title a. Interest
a. TCT b. Economic rent
b. OCT c. Flat rent
c. Abstract of title d. Leased
d. Transfer of title e. Income
1486. An agreement where the consideration 1492. Contract between an owner and tenant
of a contract is deposited with a 3rd party setting forth the condition of the used.
who authorized to release said a. Interest
consideration or payment to the seller after b. Economic rent
complied the conditions c. Flat rent
a. Contract d. Leased
b. Statute of fraud e. Income
c. Option money
264
1493. Extrajudicial foreclosure of mortgage of a. Writ of preliminary attachment
real estate acquired through homestead the b. Levy
redemption period is. c. Deficiency judgment
a. 10 years d. Garnishment
b. 8 years e. Judgment liens
c. 20 years 1500. Transfer of awarded lands from CARP is
d. 5 years prohibited for a period of
e. 15 years a. 5 years
1494. Period does the right to foreclosure a b. 8 years
mortgage prescribe. c. 20 years
a. 10 years d. 15 years
b. 8 years e. 10 years
c. 20 years 1501. PD 1517 or Urban Land Reform Law
d. 5 years and area considered urban when it has a
e. 15 years population density of at least an area of.
1495. An accessory contract whereby the a. 1,000 resident per sq.km. and at least
debtor guarantees the performance of the 25% of active resident engage in non -
principal obligation by subjecting the real agricultural activities
property or rights as security in case if non- b. 2,000 resident per sq.km. and at least
payment of obligation within the agreed 50% of active resident engage in non-
period agricultural activities
a. Leased c. 1,000 resident per sq.km. and at least
b. Negative pledge 50% of active resident engage in non-
c. Real estate mortgage agricultural activities
d. Promissory note d. 2,000 resident per sq.km. and at least
e. Contract of loan 70% of active resident engage in non-
1496. Court action to remove cloud on the title agricultural activities
a. Lis pendens e. 1,000 resident per sq.km. and at least
b. Mechanic petition 25% of active resident engage in non
c. Appeal consulta agricultural activities
d. Petition to quite title 1502. Type of loan where lender has come
e. TRO control over the project and the income for a
1497. It refers to a notice that a property is certain period, part or all which is assigned
subject to pending litigation to him to amortized the project
a. Lis pendens a. Project loan
b. Mechanic petition b. Syndicated loan
c. Appeal consulta c. Turn key loan
d. Petition to quite title d. Chattel loan
e. TRO e. Cash loan
1498. Judgment for the mortgagor to pay the 1503. General banking act, loans maybe
balance of an obligation if proceeds of granted by the banking institutions against
foreclosure sale is not sufficient to cover the real estate security shall not exceed
mortgage obligation. appraisal of real estate security
a. Attachment a. 50%
b. Levy b. 60%
c. Deficiency judgment c. 70%
d. Garnishment d. 75%
e. Judgment liens e. 80%
1499. An annotation on the title which serves 1504. Law providing for comprehensive and
as notice that the property is being held in integrated shelter and urban
reserve or whatever judgment maybe development financing program
rendered against the owner a. RA 7385
265
 b. RA 8573 c. Realty installment and buyers protective
c. RA 7835 decree
d. RA 9646 d. Realty installment and financing
e. RA 6552 1512. Which of the following cannot be issued
1505. Modified system under HLURB whereby condominium certificates of titles
housing loans may be extended through a. Subdivision lots
other conduits like banks. b. One level raw house
a. Community mortgage c. Two level row house
b. Lateral lending program d. Industrial warehouse
c. Pag-ibig fund 1513. The required number of votes of
d. Multi window lending program registered owners owners to authorize a
e. National mortgage condominium corporation to sell or
1506. Purchase of pag ibig bonds is a otherwise dispose of the common areas in a
compliance of socialized housing condominium corporation project is.
component for subdivision project, how a. Unanimous votes
many percent of the total project cost. b. 2/3 votes
a. 15% c. Simple majority votes
b. 25% d. 1/3votes
c. 50% 1514. A space to be considered a
d. 20% condominium unit
e. 30% a. At least 5 storey high
1507. Capacity to satisfy wants, production by b. Manage by condominium corporation
labor and their exchangeability. c. Be susceptible to independent use
a. Economic concept and owner ship
b. Economic principle d. Unencumbered by any restriction
c. Economic value
d. Economic utility MOCK EXAM SET -1.4
e. Economic forces
1508. Buyers of real property covered by RA 1515. The right of an owner lessor to receive
6552 do not include installment buyers of the contract rent and reversion of property
a. Industrial lots at the end of the lease is
b. House and lot packages a. Fee simple
c. Residential subd lots b. Net lease
d. Residential condominiums c. Lease fee estate
1509. Retention limits under carp for foreign d. Freehold
individuals on lease, management grower 1516. A contract of sale is to deed of sale,
or service contract contract to sell is
a. Not more than 100 has a. Deed of conditional sale
b. Not more than 500 has b. Deed of sale with mortgage
c. Not more than 10 has c. Deed of absolute sale
d. Not more than 1,000 has d. Dation en pago
1510. Comprehensive agrarian reform 1517. A subd plan needs only the approval of
program extension with reforms the registration or land management bureau
a. RA 8435 to effect segregation of titles when resulting
b. PD 957 number of lots is
c. RA 6657 a. 9 or less
d. RA 9700 b. 12 or less
1511. RA 6552 or the Maceda law c. 20 or less
a. Realty installment and protective decree d. 10 or less
b. Realty installment buyers protection 1518. An annotation on title which serves as
act notice that the property is being held in

266
 reserve for whatever judgment may be c. Lease fee estate
rendered against the owner d. Tenancy in common
a. Adverse claim e. None of the above
b. Writ of preliminary attachment 1525. The following liens can be found at the
c. caveatemptor back of the title except:
d. Lis Pendens a. Real estate tax liens
e. None of the above b. Mortgage lien
1519. The study of current supply and demand c. Mechanic’s liens
conditions in a particular area for d. Judgment liens
participation type of property is: e. None of the above
a. Market analysis 1526. Seizure of a property by court order,
b. Real Estate appraisal usually done to have it available in the
c. Cash flow analysis event of adverse judgment in a pending
d. Absorption method suit, is:
e. Income projection a. Escheat
1520. The process of making installment b. Foreclosure
payments consisting of principal and c. Forfeiture
interest that reduces the loan balance: d. Attachments
a. Amortization e. None of the above
b. Acceleration 1527. A buyer of real estate has already paid
c. Liquidation in 8 years of installment a total amount of
d. Hypothecation P520,000.00 inclusive of P20,000.00
e. None of the above penalty interest. The cash surrender value
1521. Under RA 6732, administrative of the property based on Maceda Law is:
reconstitution of lost or destroyed original a. P200,000.00
copies of titles can be availed of when the b. P325,000.00
certificates lost or destroyed area at least: c. P250,000.00
a. 10% of all titles in the registry d. P350,000.00
b. 30% of all titles in the registry e. None of the above
c. 40% of all titles in the registry 1528. X, owner of a10-door apartment rented a
d. 20% of all titles in the registry unit to Y for a period of one year. Under the
e. None of the above law on lease Y, without the consent of X,
1522. Easement is to real property, usufruct is may perform any of the following acts,
to: except:
a. Personal property a. Sublease the unit
b. Personal or real property b. Assign his rights
c. Personal and real property c. Suspend payment if X fails to make the
d. Real property necessary repairs
e. None of the above d. Demand payment reimbursement
1523. As a mode of acquiring title to real constituting one half of the value of the
property without any limitations other than usual improvements introduced in good
those imposed by law or contract faith
a. 5 years e. All of the above
b. 30 years 1529. A special power of attorney to sell a real
c. 15 years estate carries with it all the following
d. 50 years except:
e. 10 years a. Power to find a purchaser
1524. The bundle of rights inherent in b. Power to sell directly
ownership without any limitations other than c. Power to sell only for cash
those imposed by law or contract is: d. Power to fix the term of sale
a. Fee Estate e. None of the above
b. Fee simple
267
1530. The right of an owner-lessor to receive a. Automatic redemption clause
the contract rent and reversion of the b. Non-liability clause
property at the end of the lease is called: c. Defeasance clause
a. Fee simple d. Exculpatory clause
b. Lease fee simple e. Any of the above
c. Leasehold 1537. In case of sale of agricultural lands not
d. Net lease exceeding five (5) hectares, aside from
e. None of the above clearance from DAR, buyer must also
1531. A legal provision which requires submit what document?
agreement for the sale of real estate to be a. Undertaking to surrender land in excess
in writing and subscribed to by the parties to of retention limits
be enforceable by action b. Affidavit of compliance with CARL
a. Defeasance by clause c. Affidavit of total or aggregate
b. Statute of Fraud landholding
c. Evidentiary clause d. Certification from DAR
d. Parole clause e. Affidavit of waiver
e. Enforceability clause 1538. The retention limit of landowners under
1532. In the absence of any stipulation on the the CARP is:
period, the vendor in a pacto de retro sale a. 5 has for the landowner and 3 has per
may repurchase the property within: child irrespective of age
a. 4 years b. 5 has for the landowner and 3has per
b. 8 years child who must be at least 15 years old
c. 6 years c. 5 has for the landowner and 5 has per
d. 10 years child whether or not they till the land or
e. None of the above manage the farm
1533. If a contract of sale is to deed of sale, d. 5 has for the landowner and 3 has per
contract to sell is to: child who must be at least 15 years
a. Pacto de retro sale old and is actually tilling the land or
b. Deed of conditional sale managing the farm
c. Dee of sale with mortgage e. 5 has for the landowner and 3 has per
d. Daction en pago child who must be over 21 years old
e. None of the above 1539. A buyer of a subdivision lot on
1534. In a sale de retro where it is stipulated installment after sufficient notice to the
that the vendor has the right to repurchase developer discontinued paying amortization
the property “when he has the means”, he because the developer failed to develop the
has___ to redeem it. subdivision as certified by the HLURB in
a. 3 years such a situation and under P.D 957, the
b. 10 years buyer is entitled to a refund which would be:
c. 4 years a. Total payment made less penalty
d. 20 years charges
e. None of the above b. Total payments made less penalty
1535. Under the Rent Control Law, the lessor and interest charges
may ask for a deposit rental not exceeding: c. Total payments made less penalty
a. 1 month charge plus interest on total payment
b. 3 months d. Total payments including penalty
c. 2 months charges
d. 4 months e. None of the above
e. 5 months 1540. Unless extended for justifiable cause,
1536. A provision in a mortgage contract which the period of completion of development of
releases the property from the a subdivision project, counted from
encumbrance when the obligation is fully issuance of license to sell, is:
paid a. Six month
268
 b. Twelve months 1546. The performance bond for a subdivision
c. None of the above project may be in the form of a surely bond
d. Eighteen months equivalent to:
e. Twenty four months a. 10% of development cost
1541. Registration of a mortgage covering a b. 20% of development cost
subdivision project or completion of c. 30% of development cost
development of a subdivision project is at d. 40% of development cost
the: e. None of the above
a. Local Government Unit 1547. The amendment to the Master Deed of a
b. Housing and Urban Development condominium project decided by majority of
Coordinating Council registered owners must be approved by the
c. Home Insurance Guarantee Corporation HLURB and:
d. Housing and Land Use Regulatory a. City or municipal mayor
Board b. City or municipal assessor
e. National Housing Authority c. City or municipal engineer
1542. Which of the following cannot be issued d. City or municipal council
condominium certificates of titles? e. City or municipal building official
a. One-level row house 1548. The areas reserved for parks,
b. Industrial Warehouses playgrounds and recreational areas of a
c. Subdivision Lots subdivision project are:
d. Two-level row houses a. Exclusively owned by the owner-
e. None of the above developer
1543. The required number of votes of b. Co-owned by the developer and lot
registered owners to authorize a buyer
condominium corporation to sell or c. Non-alienable public lands
otherwise dispose of the common areas in a d. Saleable lots
condominium project is: e. None of the above
a. Two-thirds 1549. The term of a condominium corporation
b. Three-fourths is:
c. Simple majority a. Fifty years
d. Unanimous b. Twenty-five years
e. None of the above c. Ten years
1544. As provided by R.A. 7279, a developer d. Co-terminus with duration of
of a subdivision project is required to condominium project
develop an equivalent20% of the project for: e. Subject to agreement between the
a. Economic housing condominium corporation and the unit
b. Commercial area 1550. The area reserved for roads, alleys and
c. Socialized housing open spaces in a subdivision project with an
d. Open space area of one hectare or more is:
e. None of the above a. 20% of gross area
1545. Jurisdiction for adjudication of buyer’s b. 30% of gross area
complaints subdivision developers is with c. None of the above
the: d. 25% of gross area
a. Bureau of Trade Regulation and e. 35% of gross area
Consumer Protection 1551. For a space to be considered a
b. Housing and Urban Development condominium unit, it must:
Coordinating Council a. Be encompassed by interior surface of
c. National Housing Authority walls, floor and ceilings
d. Housing and Land Use Regulatory b. Be managed by a condominium
Board corporation
e. Regular courts c. Be unencumbered by any restriction
d. At least five storeys high
269
1552. In mixed use condominium project, the 1559. Types of sale not covered by Maceda
master deed may be amended by simple Law (Sec. 03 of RA 5662)
majority of unit owners. Majority is based a. Sale of Industrial Lots
on: b. Sale of Commercial Bldg
a. Number of condominium units c. Sale to tenant under RA#3844 (Code of
b. Total area of condominium units Agrarian reform in the Phils.)
c. None of the above d. Installment sale by Sale of Mortgage
d. Floor area of ownership and Not Contract to Sell
e. Any of the above e. None of the abvove
1553. The effectivity of Maceda law of RA 1560. The contract is under Maceda Law,
6552. buyer who paid at least2 years installment
a. August16, 1972 shall be refunded the amount of equal to
b. August 26, 1972 ___ of total payment made, (Sec 3b)
c. Feb 26, 1978 a. 25%
d. March 12, 1976 b. 40%
1554. Under HDMF circular 189-C , a qualified c. 50%
pagibig member can purchase residential d. 75%
lot not exceeding 1561. How Many grace period that the buyer is
a. 500 sq.m. entitled if it paid less than 2 years of
b. 750 sq.m. installment?
c. 250 sq.m. a. 30 days
d. 1,000 sq.m. b. 45 days
e. 1,500 sq.m. c. 60 days
1555. Maximum amount of loan available d. 90 days
under Unified Home Lending Program 1562. The law that requires lenders to report
a. 250,000.00 the cost of credit in terms of annual
b. 200,000.00 percentage rate
c. 300,000.00 a. Mortgage law
d. 375,000.00 b. General Banking Act
e. 500,000.00 c. Yield interest act
1556. Is the amount paid by the lessee of a d. Truth in lending act
house or flat fee of a commercial bldg.. e. Multi window lending program
a. Economic rent 1563. The maximum term of loan under
b. Interest Pagibig I & II for loan amount of 450,000.0
c. Lease is
d. Rental a. 15 years
e. Market price b. 20 years
1557. It is the price of any commodity in its c. 25 years
market at a specified time d. 30 years
a. Economic rent e. 35 years
b. Interest 1564. In the sale of house and lot the different
c. Lease between a selling price and loanable
d. Rental amount is as
e. Market price a. Cost
1558. It is a contract between an owner and a b. Loan value
tenant setting for condition of use c. Equity
a. Economic rent d. Capitalization
b. Interest e. Book value
c. Lease 1565. The law that reverted the nature of Pag-
d. Rental ibig membership to mandatory to all SSS
e. Market rent and GSIS members earning at least
4,000.00 a month
270
 a. RA 2477 1572. BP 220 width of stairway shall have a
b. RA 7742 minimum clear width of
c. RA 7279 a. .30 meters
d. RA 1096 b. .40 meters
e. None of the above c. .50 meters
1566. The law that governs the administration, d. .60 meters
appraisal, assessment and collection of real 1573. BP 220 use of ladders may be allowed
properties of which known as Local provided that the maximum distance
Government Code between landings shall be
a. RA 6701 a. 2.00 meters
b. RA 1991 b. 1.50 meters
c. RA 6170 c. 1.75 meters
d. RA 7160 d. 1.80 meters
e. RA 7610 1574. BP 220 stairs shall have a maximum
1567. Under BP220 of subdivision water riser height of ___ and a minimum tread
requirement what is the maximum average width of ___
daily demand liters per capital per day? a. .20 meters and .25meters
a. 250 liters b. .50 meters and .05 meters
b. 100 liters c. .25 meters and .20 meters
c. 150 liters d. .25 meters and .50 meters
d. 200 liters 1575. BP 220 whenever a dwelling abuts on a
1568. In Philippines history, The Philippines property line, a firewall shall be required,
was sold by Spain to America amounting the firewall shall be of MASONRY
to? construction, at least ___ thickness and
a. 150,000,000.00 dollars extend vertically from the lowest portion of
b. 220,000,000.00 dollars the wall adjoining the living units up to the
c. 350,000,000.00 dollars maximum height of___
d. 120,000,000.00 dollars a. 200 mm or 8 inches and .25 meters
1569. 1 hectares land with a low density of 20 b. 150 mmor 6 inches and .30 meters
family lots and below per gross hectares. c. 100 mm or 4 inches and .30 meters
How much is allocated exclusively for parks, d. 150 mm or 6 inches and .25 meters
playgrounds and recreational use? 1576. BP 220 multi family dwellings and
a. 350 sq.m. condominiums (application for both
b. 450 sq.m. economic and socialized housing) non
c. 550 sq.m. residential use shall be ___ of total areas
d. 650 sq.m. which includes hallways, corridors or similar
1570. Under BP220 bathroom shall be spaces which serve both residential and
provided with a windows with an area of non residential areas.
less than of its floor area a. 15%
a. 1/15 b. 20%
b. 1/3 c. 25%
c. 1/25 d. 30%
d. 1/20 1577. A Deed of sale executed at a total
1571. Mezzanine floor in Socialized housing consideration of 800,00. Compute doc
shall have a clear height of not less than __- stamp tax?
above and below it, provided that is shall a. 12,000.00
not cover ___ of the floor area below it. b. 12,500.00
a. 1.50 meters and 60% c. 14,000.00
b. 1.80 meters and 50% d. 10,000.00
c. 2.00 meters and 25% 1578. A deed of mortgage worth 1,200,000 as
d. 1.75 meters and 75% security for a loan house and lot. Compute
doc stamp tax?
271
 a. 4,210.00 a. Delaying submission of formal offer that
b. 2,410.00 the he had received from a prospective
c. 1,240.00 buyer in the hope of securing a higher
d. 2,140.00 offer.
b. Keeping a special bank account,
MOCK EXAM SET -1.5 separate and distinct from his own
funds, for all monies received in trust
1579. Real estate is usually authorized to the for other persons such as client
ff. acts except: money and similar items.
a. Advertise the listing c. Disclosing the client confidential
b. Bind the principal in the contract personal information to a fellow broker in
c. Place for sale sign in the property order to facilitate the sale of the client
d. Cooperate with other broker d. Encouraging the parties to a sale to
e. Cooperate with other broker indicate consideration lower than the
1580. Real estate broker must not encourage actual selling price.
the following act when with a sale 1584. Process of bartering land and for
transaction to help the client reduce cost. another piece of land and or shares of stock
a. Under value the amount in the deed of equal value in the government or quasi
of sale government corporation
b. Pay to BIR where the property is located a. Land assembly
c. Pay the property taxes on time b. Land reform
d. Register immediately the sale with the c. Land banking
ROD d. Land exchange
e. Pay the taxes on sale on time 1585. Acquisitions of lots of varying ownership
1581. To constitute negligence or failure to through, among others, expropriation or
disclose or ascertain to any person with negotiated purchase for the purpose of
whom a broker is dealing relative to the planning and development unrestricted by
property and within his knowledge at the individual property boundaries
time of the transaction, what matters must a. Expropriation
the broker fail to disclosed. b. Land banking
a. Fair market value of the property c. Land assembly
b. Material fact or data or information d. Land reform
c. Location, topography and shape 1586. Refers to the commitment for more than
d. Real property tax receipt a limited duration of funds, land resources,
e. History of title facilities and service by the two or more
1582. Listing currently listed a real estate legally separate interest, to an enterprise for
broker and obtained by another broker must their mutual benefit
not be solicited obtained by said broker a. Corporation
unless b. Land banking
a. The authority of the listing broker has c. Land assembly
expired d. Land reform
b. The listing broker has not returned the 1587. Acquisition of land in advance of actual
call of the another broker for at least a need for the purpose of acquiring lands at
week existing use value and disposing of them in
c. The authority of the listing broker has an manner which influence land price
been revoked formation and promote planned
d. The owner without solicitation from development
the new broker has expired or a. Land reform
revoked. b. Land assembly
e. The authority of the listing broker is not c. Land exchange
exclusive d. Land banking
1583. The following acts are unethical except
272
1588. States that a specified party must be 1595. A document issued by the DENR/EMB
given an opportunity before any others to certifying that the proponent has complied
either accept or reject an offer. with all the requirements of the EIS system
a. Right to redeem and has committed to implement its
b. Land assembly approved environmental management plan.
c. Right of first refusal a. Environmental impact statement
d. Right to reject compliance
1589. A real estate listing is b. Environmental compliance certificate
a. A list of all properties in the area compliance
b. A list of all estate properties held by one c. Certificate of environmental
owner d. Environmental certificate of
c. A written list improvements on the land 1596. The process that involves evaluating
d. Employment of a broker by owner to and predicting the likely impacts of a
sell or lease projection on the environment during
1590. Which of the following listing affords the construction, commissioning, operating and
best production for real estate brokers abandonment.
a. Open listing a. Project impact study
b. Exclusive listing b. Environmental impact study
c. Exclusive right to sell c. Project feasibility study
d. Multiple listing d. Environmental impact assessment
1591. An agreement between an owner and a 1597. Ecological solid waste management act
broker to sell a real estate. a. RA 1586
a. Joint venture b. RA 9003
b. Power of attorney c. RA 9275
c. Listing d. RA 8749
d. Authorization to sell 1598. Under RA 7279___ shall be restored to
1592. An authority given by the developer t a only when other modes of acquisition have
broker to look for a supplier of back filling been exhausted
materials is a. Land swapping
a. Exchange agency b. Land consolidation
b. Procurement agency c. Expropriation
c. General brokerage d. Purchase
d. Sales agency 1599. The priority right of a tenant to buy the
1593. For the hold over clause to entitle the land located in an urban land reform area is
broker to commission even if he closed the known as
sale after the lapse of his authority, the a. Tenant retention right
must b. Tenant right of first refusal
a. Submit written acknowledgement of his c. Tenant incremental right
buyer d. Tenant possessory right
b. Register his property during his authority 1600. The real estate broker is usually
c. Register and negotiate with his authorized to do all the following acts,
prospect during his authority except:
d. None of the above a. Advertise the listing
1594. The commission rate for the sale of real b. Cooperative with other brokers
estate is determined by c. Place “ For Sale sign on the property
a. Agreement between seller and buyer d. Bind the principal in a contract
b. Discretion of the seller e. Look for property
c. Standard rate approved by the broker in 1601. An authority given by the developer to a
a locality broker to look for a supplier of backfilling
d. Fixed schedule of commission approved materials who shall be paid with developed
by the PRC lots is:
a. Procurement agency
273
 b. General Brokerage
c. Exchange agency
d. Sales agency
e. None of the above
1602. The possession of trust assumed by the
broker as an agent for the principal is most
accurately described as:
a. Trusteeship relationship
b. Trustor relationship
c. Amicable relationship
d. Fiduciary relationship
e. None of the above
1603. Which of the following listing affords the
best protection for real estate brokers?
a. Open listing
b. Multiple listing
c. Exclusive agency
d. Exclusive right to sale
e. None of the
1604. A real estate listing is:
a. A list of all estate properties held by one
owner.
b. Employment of broker by owner to
sell or lease
c. A written list of improvements on the
land.
d. A rendition of property for valuation
e. A list of all properties in an area
1605. The commission rate for the sale of real
estate is determine by:
a. Standard rate approved by the brokers
in a locality
b. Fixed schedule of commission approved
by the PRB-RES
c. Discretion of the seller
d. Agreement between seller and broker
e. None of the above
1606. For the :hold-over” clause to entitle the
broker to commission even if the closed the
sale after the lapse of his authority, the
broker must:
a. Register his property during his authority
b. Submit written acknowledgement of his
owner
c. Register and negotiate with his
prospect during his authority
d. All of the above
e. None of the above
1607. To constitute negligence or failure to
disclose or as certain to any person with
whom a broker is dealing relative to the
property and within his knowledge at the
time of the transaction, what matters must
be broker fail to disclose?
a. Previous owner of property or history of
title
b. Fair market value of the property
c. Location, topography, and shape of
property
d. Material fact, data or information.
e. Whether property is update in tax
payments
1608. The scope of brokerage as follows, but
not:
a. Authority to look for property
b. Engagement to look for a buyer
c. Procurement of insurance for properties
secured by real estate
d. Procurement of loans secured by real
estate.
e. Procurement of tenants for rental
properties
1609. Under the Code of Ethics, the following
is considered ethical:
a. Negotiate a property listed directly with
the owner if the listing broker goes out of
town for a few days and cannot be
contacted
b. Should cooperate with other brokers on
property listed provided they are
members of any national real estate
broker’s association
c. Use the services of the salesman of
another broker provided the salesman
the agreed upon commission
d. Willingly share with other brokers the
lessons from his experience and
study.
1610. A listing currently listed with a real estate
broker and obtained and acquired by
another broker must not be solicited or
obtained by said broker unless:
a. The authority of the listing broker is non-
exclusive
b. The authority of the listing broker has
expired
c. The listing broker has not returned the
call or text messages of the other broker
for at least one week
d. The authority of the listing broker has
been revoked
e. The owner, without solicitation from
the new broker, efforts to list the
same with the new broker after the
274
 authority of the listing broker has 1617. The increase in value of real estate
expired or been revoked. without any effort or expense of the owner
1611. A sign giving notice of a property for sale is:
or lease should not be placed on a property a. Unearned increment
by more than one broker, but may be done b. Unearned income
only if c. Accretion
a. The sign is placed at least one meter d. Accession
away from the other sign e. Adhesion
b. The sign should be of the same size as 1618. A land survey always uses a reference
the other signs point. It could be:
c. Authorized by the owner a. Bureau of and Location Monument
d. It should not exceed three signs on the b. Bureau of Lands Barrio Monument
property c. City Boundary Monument
e. The address of the broker is indicated d. Provincial Boundary Monument
on the sign e. Any of the above
1612. In the absence of a valid pre-nuptial THEORIES AND PRINCIPLES IN
agreement, the government property APPRAISAL
relations of a married couple is:
a. Conjugal property 1619. This principle proves that if two similar
b. Complete separation of property houses are for sale, the lower priced house
c. Conjugal partnership of gains generally will be purchased first.
d. Absolute community of property a. Consistent Use
e. Any of the above b. Highest and Best Use
1613. The selling price of real estate is c. Conformity
usually based on its: d. Substitution
a. Market Value 1620. The value of a property is the present
b. Speculative Value worth of all present and future benefits
c. Instrinsic Value arising from ownership and use of real
d. Exchange Value estate.
e. None of the above a. Competition
1614. The average selling price of homes in a b. Anticipation
district can best determined by: c. Surplus Productivity
a. Comparative Analysis d. Consistent Use
b. Assessed Value 1621. Real estate passes through a cycle of (in
c. An appraisal proper order)
d. Any of the above a. Stability, Renewal, Decline,
e. None of the above Revitalization
1615. Income approach in appraisal would be b. Revitalization, Stability, Growth, Decline
most widely used: c. Decline, Stability, Revitalization, Growth
a. On commercial and investment d. Growth, Stability, Decline, Renewal
properties 1622. This principle is attracted by profit,
b. On newly opened subdivision favors the consumer, and may ruin profit if
c. On properties heavily mortgage there is too much it.
d. On properties heavily insured a. Supply and Demand
e. None of the above b. Competition
1616. An estimate or opinion of value c. Increasing Diminishing Returns
a. Appraisal d. Progression/Regression
b. Analysis 1623. An example of a direct violation of the
c. Economic value principle of conformity is:
d. Loan to Value ratio a. Misplaced improvements
e. None of the above b. Social and economic homogeneity
c. High crime rates in the neighborhood
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 d. Poor purchasing power 1631. Land has the last claim to the income of
1624. There is____ contribution if cost is less a property.
or equal than gain in value, while there a. Balance
is____ contribution if cost is greater than b. Change
the gain in value of a property. c. Law of Supply and Demand
a. Negative, positive d. Surplus Productivity
b. Positive, positive 1632. The four agents of production are:
c. Negative, negative a. Land, manpower, capital debt
d. Positive, negative b. Real Estate, purchasing power, cost of
1625. The target or basis of appraisal among money, transaction price
all principle is: c. Land, labor, capital, management
a. Conformity d. Producer, consumer, distributor, receiver
b. Highest and Best Use 1633. Influences outside a property may have
c. Law of Supply and Demand a positive or negative effect on its value.
d. Consistent Use a. Externalities
1626. When several parcel of land are b. Socio-economic factors
consolidated into one larger lot, the value of c. Political influences
the single lot is larger than the sum of the d. Gurable obsolescence
individual lots. 1634. Land cannot be valued on the basis of
a. Increasing and Diminishing Returns one use while the improvements are valued
b. Contribution on the basis of another
c. Plottage a. Highest and best legal use
d. Progression b. Increasing and Diminishing Returns
1627. Synergistic value is also called c. Conformity
a. Caprice value d. Consistent use
b. Marriage value 1635. The value of materials recovered from
c. Investment value depreciated property
d. Fair Market value a. Salvage value
1628. Progression and Regression follows b. Caprice value
the law of: c. Scarp value
a. Increasing and Diminishing Returns d. Unrepresented value
b. Supply and Demand 1636. Value in use is to the ____, while value
c. Attraction in exchange is to the _____.
d. Common law a. Appraiser, owner
1629. That point where over-improvement b. Buyer, owner
causes a decrease in income, and c. Owner, appraiser
eventually a decrease in value of the d. Owner, buyer
property, is proved by: 1637. It is the result of net income divided
a. Law of Increasing and Diminishing to its rate.
Returns a. Loan value
b. Law of Attraction b. Capitalized value
c. Law of Supply and Demand c. Cash value
d. Non-conformity d. Investment Value
1630. Which of the following is not true? 1638. Market value f the assessor is based
a. When supply is high, and demand is on
low, value is low a. Actual use
b. When supply is low, and demand is b. Zoning
high, value is high c. Classification
c. When supply is low, and demand is d. Selling price
high, value is low
d. All of the above STANDARDS AND ETHICS

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1639. The process of analyzing sets of 1647. For purpose of correcting a fellow
property and market data to determine the practitioner’s work a valuer may criticize
specific parameters of a model publicity the former’s work, even if it might
a. Interpretation put him/her in bad light.
b. Calibration a. True
c. Valuation b. Partially true
d. Expropriation c. False
1640. The following are professional conduct d. Depending on the organization they are
of a property valuer except: part of
a. Integrity 1648. A valuer must always disclose a lack of
b. Objectivity skill or competence in an assigned project,
c. Thriftiness and can get assistance from a more
d. Confidentially equipped fellow.
1641. A valuer may accept assignments with a. True
predetermined opinion conclusions, b. Partially false
provided there is consent from the c. False
requesting party. d. Depending on the workflow
a. True
b. Partially true HUMAN AND PHYSICAL GEOGRAPHY
c. False
d. None of the above 1649. The study of the earth and its features
1642. Under the USPAP, a valuer must retain a. Meteorology
file and working papers at least. b. Geography
a. 3 years c. Geology
b. 5 years d. Ecology
c. 4 years 1650. ______is to relative location____ is to
d. 6 years absolute location
1643. Under Philippine Valuation Standards, a. Toponym, Site
the minimum record keeping is. b. Mathematical Situation, Situation
a. 3 years c. Situation, Mathematical Situation
b. 5 years d. Site, Toponym
c. 4 years 1651. A township measures.
d. 6 years a. 6x6 miles
1644. Loss in value is brought by all except: b. 8x8 miles
a. Economic obsolescence c. 7x7 miles
b. Functional obsolescence d. 9x9 miles
c. Change in governance 1652. The following are not physical indicators
d. Physical wear and tear of the quality of life, except:
1645. The National Code of Ethics of DTI a. Housing
contains rules of conduct and practice to the b. Democratic process
following except: c. Land use planning
a. In relation to government d. Recreational resources
b. In relation to fellow practitioners 1653. Crude death rate is
c. In relation to the Church a. Annual number of deaths per 10,000
d. In relation to client square meters of spatial location
1646. A compliance review where a valuer b. Annual number of deaths per 10,000
gives and impartial judgment on work of population
another valuer. c. Annual number of deaths per 1,000 live
a. Technical review births
b. Field review d. Annual number of deaths per 1,000
c. Desk review population
d. Valuation Appraisal review 1654. There is natural increase in fertility if
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 a. Crude birth rate is higher than crude 1661. In a judicial foreclosure, the owner o a
death rate property has 3 months before approval of
b. Crude birth rate is lower than crude court order to redeem his/her land.
annual birth rate a. Right of redemption
c. Crude birth rate is higher than annual b. Reglamentary period
birth rate c. Equity of redemption
d. Crude birth rate is higher than estimated d. Prescriptive period
NSO birth rate 1662. It is the study of the production,
1655. The movement from less distribution and consumption of goods and
concentration to more concentration is. services.
a. Uprise a. Geography
b. Urbanization b. Accounting
c. Growth c. Statistics
d. Revitalization d. Economics
1656. Labor productivity is computed by: 1663. Where buyers and sellers meet to
a. Dividing value of capital to number of exchange trade goods and services with
manpower valu at negotiated prices.
b. Dividing value of goods to number of a. Economy
labor hours b. Market
c. Dividing number of manpower to c. Industry
number of labor hours d. Negotiation
d. Dividing number of labor hours to value 1664. There are more sellers and few buyers
of goods a. Seller’s market
1657. ______ is a term referring to permanent b. Oligopsony
human settlement. c. Buyer’s market
a. Demography d. Oligopoly
b. Ecumene 1665. The main participants in a real estate
c. Migration market are:
d. Census a. Consumers, producers and
1658. The ratio of the length of an object to its distributor’s
length on the earth’s surface is called. b. Owners, renters facilitators
a. Spatial distribution c. Distributors, renovators developers
b. Density d. Users, facilitators, managers
c. Concentration 1666. The following are agents of production
d. Scale except
a. Land
REAL ESTATE FINANCING b. Purchase power
c. Labor
1659. A sale in form but mortgage in d. Entrepreneurship
substance 1667. That value concept that states that
a. Pacto de Retro human labor is the sole creator of value.
b. Pacto de Non Aliendo a. Social theory of Mill
c. Pactum Commissorium b. Cost theory of Adam Smith
d. Dacion en Pago c. Labor theory of Marx
1660. The period for right of redemption for d. Scarcity theory of Malthus
corporations is 1668. That value concept that states that land
a. 1 year if habitually engaged value increases indefinitely.
b. 1 month a. Social theory of Mill
c. 3 months b. Cost theory of Adam Smith
d. 1 year c. Labor theory of Marx
d. Scarcity theory of Malthus

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LAND MANAGEMENT SYSTEM AND REAL 1676. In absolute community regime, the
PROPERTY LAWS following are exclusive properties except.
a. Those acquired by gratuitous title
1669. All public lands cannot be alienated b. Those fruits of labor, gains, in industry or
except: profession
a. Timber c. Those for personal or exclusive use of
b. Agricultural either spouse.
c. Forest d. Those acquired before marriage by
d. Mineral either spouse who has legitimate
1670. Filipinos can purchase and lease how descendants.
many hectares of public land? 1677. When one spouse gains chance
a. 15 hectares purchase, 5 hectares lease (winning in betting), co-ownership of fruits
b. 12 hectares purchase, 500 hectares applies; however, if that spouse loses,
lease a. The other spouse also takes part in the
c. Cannot purchase, but can lease 1000 loss.
hectares b. Only the spouse who gambled is
d. 12 hectares purchase, 5000 hectares answerable/affected in the loss
lease c. There is no provision in the law for such
1671. In order of priority, the least method of d. The law does not recognize because it is
land acquisition the government resorts to an illegal act
is: 1678. Surcharge rate in general for national
a. Land swapping taxes is
b. Expropriation a. 30%
c. Negotiated purchase b. 20%
d. Joint venture agreement c. 25%
1672. An act authorizing HLURB to establish d. 15%
and promulgate standards and 1679. The maximum standard deduction for
requirements for economic and socialized net estate comparison is
housing a. 1 million or total gross receipts of
a. PD 957 expenses, whichever is lower
b. BP 220 b. 1 million
c. EO 209 c. 2 million
d. PD 27 d. 1 million or total taxes paid in the past
1673. The minimum lot size for a single 10 years, whichever is lower
detached lot is: 1680. The number of CPE units required for a
a. .54 sqm board passer last 2007 but failed to obtain
b. 72 sqm. license is.
c. 36 sqm. a. 15 units
d. 32 sqm. b. 24 units
1674. A developer must deliver/turn over at c. 18 units
least phase for every___ hectares every d. 120 units
year. 1681. Penal provision for an unlicensed
a. 20 hectares practitioner is
b. 10 hectares a. P200,000 or 4 years imprisonment
c. 15 hectares b. P200,000 or 4 years imprisonment or
d. 5 hectares both
1675. Subdivision and Condominium Buyer’s c. P100,000 or 2 years imprisonment
Decree d. P100,000 or 2 years imprisonment or
a. PD 592 both
b. PD 100 1682. RA 7279 is also known as.
c. PD 27 a. Comprehensive Agrarian Reform Act
d. PD 957 b. Agricultural Tenancy Act
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 c. Urban Development and Housing Act
d. Urban Land Reform Act
1683. Under the Lina Law, all developers
required to allot.
a. 30% open space, 70% saleable area
b. 20% of total subdivision area or total
subdivision cost
c. At least 20 of gross floor area in a
condominium project
d. None of the above
1684. The physical possession by a person
land devoted to agriculture belong to, or
legally possessed by the another, for the
purpose of product through the labor of the
former.
a. Free patent
b. Agricultural tenancy
c. Irrigable cultivation
d. CLOA
1685. The juridical tie between landholder
and tenant is called
a. Judiciary tenancy
b. Artificial conjugation
c. Tenancy relationship
d. Conjugal gains

280