Basic Appraisal Test D.

the Right to use the property for any purpose, legal

1. Which of the following definitions is appropriate for or otherwise
the term REAL ESTATE.
A. Land and anything permanently attached to the land 11. Which of the following is not an example of special
B. Property that is not encumbered by leases purpose real estate?
C. Building and other improvements A. A private school B. A public school
D. Building and Fixture C. Shopping center D. A house and lot

2. POLICE POWER includes all of the following except. 12. Which of the following are the limitations to
A. Zoning B. Deed restriction property ownership?
C. Building codes D. Subdivision regulation A. Police power, eminent domain, taxation and escheat
B. Scarcity, improvements, and area preference scarcity,
3. Which of the following best defines real estate. improvements, and area preference
A. Land and the air above it C. Right to enjoy, possess, exclude others, right to
B. Land and buildings permanently affixed to it dispose
C. Land and all things permanently affixed to it D. Interest, benefits, amenities
D. Land and the mineral rights in the land
13. Can personal property be converted into real
4. The bundle of legal rights is included in. property through what process?
A. Land B. Real estate A. Severance B. Accession
C. Real property D. Trade fixtures C. Conversion D. Annexation

5. All of the following would be considered real estate 14. Real estate refers to the following?
except. A. Land and improvements whether natural or man-
A. Fences B. Buildings made
C. Growing trees D. Farm equipment B. Land, improvements, rights, benefits, interest
C. Land and buildings and inherent rights of ownership
6. Which of the following is not an economic D. Trees, fence, road, drainage system
characteristic of real estate?
A. Indestructibility B. improvements 15. What are the two classifications of properties as to
C. Area reference D. Scarcity ownership under the Civil Code?
A. Public domain and private ownership
7. Which of the following best defines real estate? B. Movable or personal
A. Land and the air above it C. Immovable or real property
B. Land and buildings permanently affixed to it D. Within the commerce of man and outside the
C. Land and all things permanently affixed to it commerce
D. Land and the mineral rights in the land
16. What are the two classification of Properties
8. Real property can be converted into personal according to mobility and non-mobility?
property through? A. Movable or personal and immovable or real property
A. Severance B. Accession B. Public domain and private ownership
C. Conversion D. Inference C. Present property and future property
D. Within the commerce of man and outside the
9. The term non-homogeneity refers to? commerce of man
A. Scarcity B. Immobility
C. Uniqueness D. Indestructibility 17. What are the classification of Properties according
to use?
10. The bundle of right includes all of the following A. Residential, industrial, commercial, agricultural,
except? special
A. The right to exclude someone from the property B. Public domain and private ownership
B. right to enjoy property within the framework of law C. Present property and future property
C. The right to sell or otherwise convey the property D. Agricultural, forest park or timber, mineral and Parks
 18. Which of the following represents the economic C. Permanence of investment D. Land is unique
characteristics of real estate?
A. A Scarcity, Improvements, permanence of investment 27. An economic characteristics of real estate which
and area preference says the building or improvement on one parcel of land
B. Land is immobile, indestructible, land is unique has an effect on the value and utilization of neighboring
C. Land is scars and limited, land is unique and immobile tract and can be a direct bearing on the whole
D. Scarcity, availability of land, uniqueness of land community or neighborhood is?
A. Land is unique B. Improvements
19. Any person directly engaged as principal in the C. Permanence of investment D. Scarcity
business of buying or selling is?
A. Real estate broker B. Real estate dealer 28. The most important economic characteristics of
C. Dealer D. Real estate developer real estate is referred to as?
A. Area preference or "situs" B. Improvements
20. Refers to any natural or juridical person engage in C. Permanence of investment D. Land is unique
the business of developing real estate development
projects for his/her or own account and offering them 29. No two parcels of land are ever exactly the same is
for sale or lease is called? referred to as?
A. Real estate dealer B. Real estate dealer A. Land is unique B. Land is permanent
C. RE project developer D. Real estate developer C. Land is immobile D. Land is scars

21. Under RA 9646, what constitute the real estate 30. Which of the word is defined as the earth's surface
service practitioners? extending downward to the center of the earth and
A. Real estate salesman, broker, appraiser and upward to infinity?
consultant A. Land B. Real estate
B. Real estate salesman, real estate developer, dealer C. Real property D. Realty
C. Real estate developer, real estate dealer, salesman
D. Real estate developer, realtor, real estate consultant 31. Which of the word is defined as land at, above and
below the earth's surface, including all things
22. The two major characteristics of real estate that permanently attached to it, whether natural or artificial
affects its value? is?
A. Economic and physical characteristics A. Realty B. Real estate
B. Political and environmental C. Land D. Real property
C. Natural or physical
D. Economic and environmental 32. The word being referred to as the interest, benefits
and rights inherent to the ownership of real estate is?
23. Which of the following is not an economic A. Land B. Real estate
characteristics of real estate? C. Real property D. Land and improvements
A. Scarcity B. Improvements
C. Permanence of investment D. Land is unique 33. Which of the following are the two concepts of real
estate that a registered licensee or broker should know
24. Which of the following is not a physical and understand?
characteristics of real estate? A. Legal concept of real estate and bundle of rights
A. Scarcity B. Land is immobile B. Legal aspect of ownership and inherent rights of
C. Land is indestructible D. Land is unique ownership
C. Bundle of rights theory and economic characteristics
25. The geographical location of a parcel of land can D. Fee simple and bundle of rights theory
never be change is referred to as?
A. Immobility B. Indestructibility 34. The Bundle of rights is defined as?
C. Uniqueness D. Permanence A. The rights inherent to property ownership such as
the right to enjoy, right to possess, right to dispose,
26. This definition that land is thought of as a rare right to recover right to the fruits and the right to
commodity, and the total supply is fixed is? exclude others the right to exclude others right to
A. Scarcity B. Improvements
possess, right to dispose, right to recover right to the
fruits and the right to exclude others
B. The bundle of sticks representing rights of ownership
C. The rights, benefits, and interest representing
ownership
D. The benefits, amenities, facilities, and utilities we
enjoy as owners
35. Under the bundle of rights concept, which right
includes the right to sell, donate, will, pledge or
mortgage ?
A. "Jus vindicandi" or the right to recover
B. "Jus Utendi" or the right to use
C. "Jus possidendi" or the right to possess
D. "Jus fruendi" or the right to the fruits
36. Which of the rights includes the three (3) kinds of
fruits, such as natural fruits, industrial fruits and civil
fruits ?
A. "Jus vindicandi" or the right to recover
B. "Jus Utendi" or the right to use
C. "Jus fruendi" or the right to the fruits
D. "Jus possidendi" or the right to posses
37. The rights of ownership are limited by four (4)
powers of government namely?
A. Police power, eminent domain, taxation and escheat
B. Taxation, just compensation, condemnation, escheat
C. Eminent domain, expropriation, taxation and
confiscation
D. Expropriation, taxation, escheat and police power
38. The word referred to as the absolute right of
ownership without limitations as to any particular class
of heirs or restrictions but subject to the limitations of
the four (4) powers of government is?
A. Rights in Fee simple B. Policed power
C. Eminent domain D. Absolute right
39. Zoning rules and regulations or ordinances, traffic
regulations, fire codes, and other safety laws are
examples of what right of government on real estate
ownership?
A. Taxation B. Police power
C. Eminent domain D. Escheat
40. The right reserved by government to take private
property for public use beneficial to the public upon
payment of just compensation?
A. Power of eminent domain B. Escheat
C. Police power D. Axation
41. The word referred to as the absolute right of
ownership without limitations as to any particular class
of heirs or restrictions but subject to the limitations of
the four (4) powers of government is?
A. Rights in Fee simple B. Policed power
C. Eminent domain D. Absolute right
42. Which right of government is imposed on real
estate ownership for the purpose of raising funds for its
operations and services that otherwise protect and
benefit the citizenry?
A. Rights in Fee simple B. Policed power
C. Eminent domain D. Taxation
43. The four ordinary classification of real estate
according to use and normally referred to in the
ordinary course of buying and selling are?
A. Residential, industrial, commercial, agricultural and
special purpose
B. Residential, condominium, townhouse, memorial
park
C. Real property, real estate, personal property,
agricultural land
D. Realty, personal property, mineral, forest land
44. Which of the following are the four (4) property
types based on the International Valuation Council
(1VSC)?
A. Real property, personal property, business and
financial interest
B. Residential, commercial, industrial, agricultural
C. Agricultural, timberland, mineral, residential
D. Public domain, private ownership, present property,
immovable
45. Which of the following are the constitutional
classification of real property provided for in ART.XII
Section 3 of the constitution?
A. Residential, commercial, industrial, agricultural
B. Agricultural, timberland, mineral, residential
C. Real property, personal property, business and
financial interest
D. Agricultural, forest/or timber, mineral and national
parks
46. Which of the following are the two classification of
real property according to existence provided for in Civil
Code of the Philippines?
A. Movable or personal and immovable or real property
B. Public domain and private ownership
C. Real property and personal property
D. Present property and future property
 47. Which of the following are the constitutional
classification of real property provided for in ART.XII
Section 3 of the constitution?
A. Residential, commercial, industrial, agricultural
B. Agricultural, timberland, mineral, residential
C. Real property, personal property, business and
financial interest
D. Agricultural, forest/or timber, mineral and national
parks
48. RDL is renting a single-family home under a one
year lease. Two months into the lease he installs a
window type air-condition placed in the opening
provided for on one side of the building. Which of the
following is true?
A. RDL cannot take out the or bring the unit with him
after the lease
B. RDL can take the unit because by its nature it is a
personal thing
C. Air condition units are permanent improvements of a
building
D. Because of the nature of the property, the air
condition is considered a trade fixture
49. All of the following would be consideration for an
item being real property except?
A. The cost of an item when it was bought or purchased
B. The method of its attachment to other real property
C. The intended use of the item by its owner
D. The manner in which the item is actually used with
other real property
50. Which of the following makes use of a rate of
investment return?
A. The Sales comparison Approach or Direct Market
Comparison
B. Cost approach
C. Income capitalization approach
D. Gross income multiplier method
51. The elements of value include which of the
following?
A. Anticipation B. Balance
C. Competition D. Scarcity
52. The principle of value that states that two adjacent
parcels of land combined into one larger parcel could
have a greater value than the two parcels valued
separately is called?
A. Substitution B. Plottage
C. Regression D. Progression
53. The amount of money a property commands in the
market place is its?
A. Intrinsic value B. Market value
C. Capitalization rate D. A gross income multiplier
54. RDL had his "dream house" constructed for
P6,000,000 in an area where most newly constructed
houses are not as well equipped as his and typically sell
for onlyP2,000,000. The value of RDL house is likely to
be affected by the principle of?
A. Progression B. Assemblage
C. Change D. Regression
55. In question No. 55 the owners of the lesser- valued
houses in RDL immediate area may be affected by the
principle of?
A. Progression B. Increasing return
C. Competition D. Regression
56. Accrued depreciation for appraisal purpose is not
caused by which of the following?
A. Functional obsolescence B. Physical deterioration
C. External obsolescence D. Accelerated depreciation
57. Reconciliation refers to which of the following?
A. Loss of value due to any cause
B. Separating the value of the land from the total value
of property
C. The process by which an appraiser determines
highest & best use
D. Analyzing the results obtained by the 3 approaches
to value to determine the final estimate of value
58. One method an appraiser can use to determine a
building reproduction cost involves the estimated cost
of the raw materials needed to build the structure, plus
labor and indirect cost. This is called the:
A. Square foot method B. Quantity survey method
C. Cubic foot method D. Unit-in place method
59. If a properties annual net income is P24,000 and it
is valued at P300,000. What is its capitalization rate?
A. 12.5 % B. 10.5 % C. 15 % D. 8 %
60. Certain figures must be determined by an appraiser
before value can be computed by the income
capitalization approach. Which of the following is not
required for this process?
A. Annual net operating income
B. Capitalization rate
C. Accrued depreciation
D. Annual gross income
 61. The income capitalization approach would be given 68. The appraised value of a residence with four
the most weight in the valuation of what type of bedrooms and one bedroom would probably be
property? reduced because of:
A. Single family dwelling B. Industrial property A. External obsolescence
C. Strip shopping center D. School B. Functional obsolescence
C. Physical deterioration-curable
62. The market value of a parcel of real estate is: D. Physical deterioration-incurable
A. An estimate of its future benefit
B. The amount of money paid for the property 69. A factor representing the percentage increase in
C. An estimate of the most probable price it should construction cost over time is used in the:
bring A. Square foot method
D. Its value without improvement B. Quantity survey method
C. Unit-in-place method
63. Capitalization is the process by which annual net D. Index method
operating income is used to
A. Determine cost 70. Demand has no effect on value unless there is also:
B. Estimate value A. A need B. Purchasing power
C. Establish depreciation C. A scarcity D. An adequate supply
D. Determine potential tax value
71. Depth tables would most likely be used in
64. From the reproduction or replacement cost of a appraising what kind of property?
building the appraiser deducts depreciation, which A. Residential B. Industrial
represents: C. Commercial D. Agricultural
A. The remaining economic life of the building
B. Remodeling cost to increase rental 72. Which of the following is a physical factor affecting
C. Loss of value due to any cause value?
D. Cost to modernize the building A. Community standards B. Price levels
C. Lot size D. Population growth
65. In the Sales Comparison Approach or Direct Market
Comparison Approach to value the probable sales price 73. The fact that individual properties, neighborhood
of a building may be estimated by: and others are constantly changing is called the
A. Capitalizing net operating income principle of?
B. Considering sales of similar properties A. Change B. Competition
C. Deducting accrued depreciation C. Conformation D. Coagulation
D. Determining construction cost
74. When a commodity is scarce and the demand is
66. Which of the following factor is important in high, its value increases. This is called the principle of?
comparing properties under the Sales Comparison A. Anticipation B. Conformity
Approach or Direct Market Comparison Approach to C. Competition D. Supply and Demand
value?
A. Difference in dates of sale 75. The term plottage is closely associated with:
B. Difference in financing A. Residential value B. Conformity
C. Difference in appearance and condition C. Capitalization D. Assemblage
D. Difference in original cost
76. The appraisal report may be in a:
67. In the income capitalization approach to value: A. Letter form, short form, or oral form
A. The reproduction or replacement cost of the building B. Letter form, short form, or narrative form
is computed C. Letter form, perfect form, or oral form
B. The capitalization rate must be estimated D. Letter form, long form, or narrative form
C. Depreciation must be determined
D. Sales of similar properties must be considered
77. The methods of appraising includes the:
A. Cost approach
B. Evaluation approach
C. Gross divider approach
D. Reconciliation approach
78. The narrative form of appraisal report will include
all of the following except:
A. The educational qualification of the appraiser/valuer
B. The data used with an analysis of them
C. The financial terms
D. A description of the property
79. Which of the following is the least important in
determining the market value of a home?
A. Size of the lot B. Original cost
C. Quality of construction D. Location
80. Reconciliation, one of the last steps in the
appraisal/valuation process, is:
A. Averaging the three approaches
B. Correlating
C. Establishing the median value
D. Discounting the value to a single family residence
81. The term Highest and Best Use refers to:
A. The use most beneficial to the community
B. The greatest value of improvement
C. The use that results to the greatest net return
D. The description of the property
82. In appraising a home, which method is used most
frequently?
A. The cost approach
B. The sales comparison /direct market comparison
approach
C. The income approach
D. The gross monthly multiplier
83. The Cost Approach results in the most accurate
appraisal of:
A. An old building B. A single family residence
C. A new building D. Vacant lot
84. Which is not a characteristics of a Cap Rate?
A. The greater the risk, the greater the cap rate
B. The lower the risk, the higher the cap rate
C. The lower the cap rate, the higher the value
D. The higher the cap rate, the lower the value
85. Land is Unique because:
A. No two parcels have the same soil composition
B. No Two parcels can occupy the same space on the
face of the earth
C. No two parcels have the same tax levies
D. No two parcels have the same owners
86. Appraisal are always used:
A. To settle divorces
B. To settle lawsuit
C. To make residential mortgages
D. To solve problems that involve real estate valuation
87. An Appraiser/Valuer.
A. Determine price
B. Measures and develops an opinion of value
C. Measures price
D. Determines market value
88. You are a licensed APPRAISER who has been asked
to help sell a small family farm. The client specifically
needs help with a marketing plan, deciding what
improvements should be made to the property, and
how to handle an offer when one comes in. If you
accept this assignment, you are:
A. Acting as an appraiser
B. Acting as a consultant, not an appraiser
C. Violating the code of ethics for appraiser
D. Not competent to perform the assignment
89. Value is a word of many meanings, but the general
meaning is?
A. Any price something is sold for
B. Worth of something to someone for some purpose
C. The future worth of an object
D. The present worth of future benefits
90. To qualify for the appraiser's licensing examination,
the examinees should possess the following except
A. Bachelors degree holder
B. Five years experience in appraisal work/as licensed
broker
C. Five years experience as real estate consultant
D. Educated, competent, has experience and possesses
A&B
91. The right of the government to acquire property of
a decedent who died without a will and without heirs is
referred to as what?
A. Eminent domain B. Escheat
C. Police power D. Taxation
92. In regard to Zoning, which of the following
statement is CORRECT?
A. Zoning ordinance are always restrictive than deed of C. Land value opinion
restrictions D. Preliminary analysis and data collection and selection
B. Nonconforming use and variance refer to the same
thing 96. The valuation technique in which land and building
C. Zoning normally establish land use district and are valued separately is:
provides restrictions A. The Cost Approach
D. Exclusionary zoning and spot zoning refer to the B. The sales comparison approach
same thing C. The income approach
D. The replacement cost
93. Land value can be estimated using the following
techniques except? 97. Which of the following is not for Highest and Best
A. The cost approach Use?
B. The abstraction and allocation method A. Legal permissibility
C. The income approach B. Maximum size of improvement
D. The sales comparison or direct market comparison C. Physical possibility
approach D. Financial feasibility

94. The date of the value opinion is: 98. Adjustments are made:
A. The date the appraiser was on site A. To the comparables to make them like the market
B. The Date the appraiser was on the site (i.e. inspection B. The subject to make it like the market
date) C. To the comparables to make it like the comparables
C. The date stipulated by the client D. To The comparables to make them like the subject
D. The date the appraiser received the order or appraised
assignment
99. What law governs the realty service practice in the
95. The valuation process defining the value estimated Philippines?
is included in the: A. RA No. 8975 B. RA No. 4996
A. Definition of problem C. RA No. 9646 D. RA No. 9966
B. Highest and best use
1. A 34. A 67. B
2. D 35. A 68. B
3. D 36. C 69. D
4. C 37. A 70. B
5. D 38. A 71. C
6. A 39. B 72. A
7. C 40. A 73. A
8. A 41. A 74. D
9. C 42. D 75. D
10. D 43. A 76. B
11. D 44. A 77. A
12. A 45. D 78. C
13. B 46. D 79. B
14. A 47. D 80. B
15. A 48. B 81. C
16. A 49. A 82. B
17. A 50. B 83. C
18. A 51. D 84. A
19. C 52. B 85. B
20. D 53. B 86. C
21. A 54. D 87. D
22. A 55. A 88. D
23. D 56. D 89. A
24. A 57. D 90. B
25. A 58. B 91. B
26. A 59. A 92. C
27. B 60. C 93. A
28. A 61. C 94. B
29. A 62. C 95. A
30. A 63. B 96. A
31. B 64. C 97. B
32. C 65. B 98. D
33. A 66. D 99. C