JAYFRED T.

JUMAWID

REAL ESTATE APPRAISER

RED OCTOBER EDUCATIONAL AND TRAINING CENTER, INC.-KORONADADAL

1. Which of the following definitions is appropriate for the term REAL ESTATE?
A.
Land and anything permanently attached to the land
B.
Property that is not encumbered by leases
C.
Building and other improvements
D.
Building and Fixture
2. POLICE POWER includes all of the following except.
A.
Zoning
B.
Deed restrictions
C.
Building codes
D.
Subdivision regulation
3. Which of the following best defines real estate.
A.
Land and the air above it
B.
Land and buildings permanently affixed to it
C.
Land and all things permanently affixed to it
D.
Land and the mineral rights in the land
4. The bundle of legal rights is included in.
A.
Land
B.
Real estate
C.
Real property
D.
Trade fixtures
5. All of the following would be considered real estate except.
A.
Fences
B.
Buildings
C.
Growing trees
D.
Farm equipment
6. Which of the following is not an economic characteristic of real estate?
A.
B.
C.
D.

Indestructibility
TVA)9i-e-A i t improvements
Area reference
Scarcity

7. Which of the following best defines real estate?

A.
B.
C.
D.

Land and the air above it

Land and buildings permanently affixed to it
Land and all things permanently affixed to it
Land and the mineral rights in the land

8. Real property can be converted into personal property through?

A.
B.
C.
D.

Severance
Accession
Conversion
Inference

9. The term non-homogeneity refers to ?

A.
B.
C.
D.

Scarcity
Immobility
Uniqueness
Indestructibility

10. The bundle of right includes all of the following except ?

A.
The right to exclude someone from the property
B.
The right to enjoy property within the framework of law
C.
The right to sell or otherwise convey the property
D.
The Right to use the property for any purpose, legal or otherwise
11. Which of the following is not an example of special purpose real estate?
A.
A private school
B.
A public school
C.
Shopping center
D.
A house and lot
12. Which of the following are the limitations to property ownership?
A.
Police power, eminent domain, taxation and escheat
B.
Scarcity, improvements, and area preference scarcity, improvements, and area preference
C.
Right to enjoy, possess, exclude others, right to dispose
D.
Interest , benefits, amenities
13. Can personal property be converted into real property through what process?
A.
Severance
B.
Accession
C.
Conversion
D.
Annexation
14. Real estate refers to the following?
A.
Land and improvements whether natural or man made
B.
Land, improvements, rights, benefits, interest
C.
Land and buildings and inherent rights of ownership
D.
Trees, fence, road, drainage system
15. What are the two classifications of properties as to ownership under the CivilCode?
A.
Public domain and private ownership
B.
Movable or personal
C.
Immovable or real property
D.
Within the commerce of man and outside the commerce
16. What are the two classification of Properties according to mobility and non mobility?
A.
Movable or personal and immovable or real property
B.
Public domain and private ownership
C.
Present property and future property
D.
Within the commerce of man and outside the commerce of man
17. What are the classification of Properties according to use?
A.
Residential, industrial, commercial, agricultural, special
B.
Public domain and private ownership
C.
Present property and future property
D.
Agricultural, forest park or timber, mineral and Parks

18. Which of the following represents the economic characteristics of real estate?
A.
A Scarcity, Improvements, permanence of investment and area preference preference
B.
Land is immobile, indestructible, land is unique
C.
Land is scars and limited, land is unique and immobile
D.
Scarcity, availability of land, uniqueness of land

19. Any person directly engaged as principal in the business of buying or selling is ?
A.
Real estate broker
B.
Real estate dealer
C.
Dealer
D.
Real estate developer
20. Refers to any natural or juridical person engage in the business of developingreal estate development projects for
his/her or own account and offering them for sale orlease is called?
A.
Real estate dealer
B.
Real estate dealer
C.
Real estate project developer
D.
Real estate developer
21. Under RA 9646, what constitute the real estate service practitioners?
A.
Real estate salesman, broker, appraiser and consultant
B.
Real estate salesman, real estate developer, dealer
C.
Real estate developer, real estate dealer, salesman
D.
Real estate developer, realtor, real estate consultant
22.

The two major characteristics of real estate that affects its value?
A.
Economic and physical characteristics
B.
Political and environmental
C.
Natural or physical
D.
Economic and environmental

23.

Which of the following is not an economic characteristics of real estate ?

A.
Improvements
B.
Permanence of investment
C.
Land is unique
D.
Scarcity
24. Which of the following is not a physical characteristics of real estate?
A.
Scarcity
B.
Land is immobile
C.
Land is indestructible
D.
Land is unique
25. The geographical location of a parcel of land can never be change is referred toas?
A.
Immobility
B.
Idestructibility
C.
Uniqueness
D.
Permanence
26. This definition that land is thought of as a rare commodity, and the total supply is fixed is ?
A.
Scarcity
B.
Improvements
C.
Permanence of investment
D.
Land is unique

27. An economic characteristics of real estate which says the building or improvementon one parcel of land has an effect
on the value and utilization of neighboring tract andcan be a direct bearing on the whole community or neighborhood is?
A.
Land is unique
B.
Improvements
C.
Permanence of investment
D.
Scarcity
28. The most important economic characteristics of real estate is referred to as ?
A.
Area preference or "situs"
B.
Improvements
C.
Permanence of investment
D.
Land is unique
29. No two parcels of land are ever exactly the same is referred to as?
A.
Land is unique
B.
Land is permanent
C.
Land is immobile
D.
Land is scars
30. Which of the word is defined as the earth's surface extending downward to thecenter of the earth and upward to
infinity?
A.
Land
B.
Real estate
C.
Real property
D.
Realty
31. Which of the word is defined as land at, above and below the earth's surface,including all things permanently attached
to it, whether natural or artificial is ?
A.
Realty
B.
Real estate
C.
Land
D.
Real property
32.

The word being referred to as the interest, benefits and rights inherent to theownership of real estate is?
A.
Land
B.
Real estate
C.
Real property
D.
Land and improvements

33. Which of the following are the two concepts of real estate that a registered licenseeor broker should know and
understand ?
A.
Legal concept of real estate and bundle of rights
B.
Legal aspect of ownership and inherent rights of ownership
C.
Bundle of rights theory and economic characteristics
D.
Fee simple and bundle of rights theory
34. The Bundle of rights is defined as ?
A.
The rights inherent to property ownership such as the right to enjoy, right to possess, right to dispose, right
to recover right to the fruits and the right to exclude others the right to exclude others right to 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, 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.
B.
C.
D.

"Jus vindicandi" or The right to recover

"Jus Utendi" or the right to use
"Jus possidendi" or the right to posses
"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.
B.
C.
D.

"Jus vindicandi" or the right to recover

"Jus Utendi" or the right to use
"Jus fruendi" or The right to the fruits
"Jus possidendi" or the right to posses

37. The rights f 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 othersafety laws are examples of what
right of government on real estate ownership?
A.
Taxation
B.
Policed power
C.
Eminent domain
D.
Escheat
40. The right reserved by government to take private property for public use beneficial tothe public upon payment of just
compensation?
A.
Power of eminent domain
B.
Escheat
C.
Police power
D.
Taxation
41. The word referred to as the absolute right of ownership without limitations as to anyparticular class of heirs or
restrictions but subject to the limitations of the four (4) powersof 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 ofraising funds for its operations and
services that otherwise protect and benefit thecitizenry ?
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.
B.
C.
D.

Residential, industrial, commercial, agricultural and special purpose

Residential, condominium, townhouse, memorial park
Real property, real estate, personal property, agricultural land
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.
B.
C.
D.

Residential, commercial, industrial, agricultural

Agricultural, timberland, mineral, residential
Real property, personal property, business and financial interest
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 thelease he installs a window type aircondition placed in the opening provided for on oneside 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 intoone larger parcel could have a greater
value than the two parcels valued separately iscalled?
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 mostnewly 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 areamay 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 costinvolves the estimated cost of the raw
materials needed to build the structure, plus laborand 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 Percent
B.
10.5 percent
C.
15 percent
D.
8 percent

60. Certain figures must be determined by an appraiser before value can be computedby the income capitalization
approach. Which of the following is not required for thisprocess?
A.
Annual net operating income
B.
Capitalization rate
C.
Accrued depreciation
D.
Annual gross income
61. The income capitalization approach would be given the most weight in the valuationof what type of property?
A.
Single family dwelling
B.
Industrial property
C.
Strip shopping center
D.
School
62. The market value of a parcel of real estate is:
A.
An estimate of its future benefit
B.
The amount of money paid for the property
C.
An estimate of the most probable price it should bring
D.
Its value without improvement
63. Capitalization is the process by which annual net operating income is used to
A.
Determine cost
B.
Estimate value
C.
Establish depreciation
D.
Determine potential tax value
64. From the reproduction or replacement cost of a building the appraiser deductsdepreciation, which represents:
A.
The remaining economic life of the building
B.
Remodeling cost to increase rental
C.
Loss of value due to any cause
D.
Cost to modernize the building
65. In the Sales Comparison Approach or Direct Market Comparison Approach to valuethe probable sales price of a building
may be estimated by:
A.
B.
C.
D.

Capitalizing net operating income

Considering sales of similar properties
Deducting accrued depreciation
Determining construction cost

66. Which of the following factor e important in comparing properties underthe Sales Comparison Approach or rDiect
Market Comparison Approach to value?
A.
B.
C.
D.

Difference in dates of sale

Difference in financing
Difference in appearance and condition
Difference in original cost

67. In the income capitalization approach to value:

A.
B.
C.
D.

The reproduction or replacement cost of the building is computed

The capitalization rate must be estimated
Depreciation must be determined
Sales of similar properties must be considered

68. The appraised value of a residence with four bedrooms and one bedroom wouldprobably be reduced because of:
A.
External obsolescence
B.
Functional obsolescence
C.
Physical deterioration-curable
D.
Physical deterioration-incurable
69. A factor representing the percentage increase in construction cost over time is used in the:
A.
Square foot method
B.
Quantity survey method
C.
Unit-in-place method
D.
Index method
70. Demand has no effect on value unless there is also:
A.
A need
B.
Purchasing power
C.
A scarcity
D.
An adequate supply
71. Depth tables would most likely be used in appraising what kind of property?
A.
Residential
B.
Industrial
C.
Commercial
D.
Agricultural
72. Which of the following is a physical factor affecting value?
A.
Community standards
B.
Price levels
C.
Lot size
D.
Population growth
73. The fact that individual properties, neighborhood and others are constantlychanging is called the principle of?
A.
Change
B.
Competition
C.
Conformation
D.
Coagulation
74. When a commodity is scarce and the demand is high, its value increases. This iscalled the principle of?
A.
Anticipation
B.
Conformity
C.
Competition
D.
Supply and Demand
75. The term plottage is closely associated with:
A.
Residential value
B.
Conformity
C.
Capitalization
D.
Assemblage
76. The appraisal report may be in a:
A.
Letter form, short form, or oral form
B.
Letter form, short form, or narrative form
C.
Letter form, perfect form, or oral form
D.
Letter form, long form, or narrative form

77. The methods of appraising includes the :

A.
B.
C.
D.

Cost approach
Evaluation approach
Gross divider approach
Reconciliation approach

78. The narrative form of appraisal report will include all of the following except:
A.
B.
C.
D.

The educational qualification of the appraiser/valuer

The data used with an analysis of them
The financial terms
A description of the property

79. Which of the following is the least important in determining the market value of a home?
A.
B.
C.
D.

Size of the lot

Original cost
Quality of construction
Location

80. Reconciliation, one of the last steps in the appraisal/valuation process, is:
A.
B.
C.
D.

Averaging the three approaches

Correlating
Establishing the median value
Discounting the value to a single family residence

81. The term Highest and Best Use refers to:

A.
B.
C.
D.

The use most beneficial to the community

The greatest value of improvement
The use that results to the greatest net return
The description of the property

82. In appraising a home, which method is used most frequently?

A.
B.
C.
D.

The cost approach

The sales comparison /direct market comparison approach
The income approach
The gross monthly multiplier

83. The Cost Approach results in the most accurate appraisal of:
A.
B.
C.
D.

An old building
A single family residence
A new building
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.
B.
C.
D.

No two parcels have the same soil composition

No Two parcels can occupy the same space on the face of the earth
No two parcels have the same tax levies
No two parcels have the same owners

86. Appraisal are always used :

A.
B.
C.
D.

To settle divorces
To settle lawsuit
To make residential mortgages
To solve problems that involve real estate valuation

87. An Appraiser/Valuer.
A.
B.
C.
D.

Measures and develops an opinion of value

Measures price
Determines market value
Determine price

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.
B.
C.
D.

Acting as an appraiser
Acting as a consultant, not an appraiser
Violating the code of ethics for appraiser
Not competent to perform the assignment

89. Value is a word of many meanings, but the general meaning is?
A.
B.
C.
D.

Any price something is sold for

Worth of something to someone for some purpose
The future worth of an object
The present worth of future benefits

90. To qualify for the appraiser's licensure 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 awill and without heirs is referred to
as what?
A.
B.
C.
D.

Eminent domain
Escheat
Police power
Taxation

92. In regard to Zoning, which of the following statement is CORRECT?

A.
B.
C.
D.

Zoning ordinance are always restrictive than deed of restrictions

Nonconforming use and variance refer to the same thing
Zoning normally establish land use district and provides restrictions
Exclusionary zoning and spot zoning refer to the same thing

93. Land value can be estimated using the following techniques except?
A.
B.
C.
D.

The cost approach

The abstraction and allocation method
The income approach
The sales comparison or direct market comparison approach

94. The date of the value opinion is:

A.
B.
C.
D.

The date the appraiser was on site

The Date the appraiser was on the site (i.e. inspection date)
The date stipulated by the client
The date the appraiser received the order or assignment

95. The valuation process defining the value estimated is included in the:
A.
B.
C.
D.

Definition of problem
Highest and best use
Land value opinion
Preliminary analysis and data collection and selection

96. The valuation technique in which land and building are valued separately is:
A.
B.
C.
D.

The Cost Approach

The sales comparison approach
The income approach
The replacement cost

97. Which of the following is...rer,rti Qfor Highest and Best Use
A.
B.
C.
D.

Legal permissibility
Maximum size of improvement
Physical possibility
Financial feasibility

98. Adjustments are made:

A.
B.
C.
D.

To the comparables to make them like the market

The subject to make it like the market
To the comparables to make it like the comparables
To The comparables to make them like the subject appraised

99. What law governs the realty service practice in the Philippines?
A.
Republic Act No. 8975
B.
Republic Act No. 4996
C.
Republic Act No. 9646
D.
Republic Act No. 9966