2014 PRACTICE TESTS REAL ESTATE APPRAISERS? LICENSURE EXAMINATIONS INSTRUCTION; SHADE THE LETTER OF YOUR ANSWER CORRESPONDING TO THE BOX ON THE ANSWER SHEET PROVIDED. NO ERASURES ARE ALLOWED AS IT WILL INVALIDATE THE RESULT OF YOUR EXAMINATION. GOOD LUCK TO ALL. PART 1— FUNDAMENTALS OF REAL ESTATE APPRAISAL (50%) 1, The correct translation of Professional Regulations Commission in Filipino is: A Komisyon sa Regulasyon ng Propesyonal (C) Komisyon sa Regulasyon ng mga Propesyonal B_ _Komisyon ng Regulasyon sa Propesyonal D Komisyon ng Regulesyon sa mga Propesyonal 2. Inreal estate the term improvements refer to the following, except. A buildings only wees and buildings B buildings, fences, walkways ©) bundle of rights 3. In Juary 2014, PRC Chairman Teresita Manzala signed a memorandum order on the requirements for the renewal of licenses of real estate practitioners. Which of the following is not? A CPD Certificate ¢ CMIGS B Surety Bond © — ww Clearance 4. Which type of studies test the ability of various proposed improvements to meet investment objectives? A Market CS Marketebility B Feasibility WD —Cost-benetit 5. Based on the latest SPD Guidelines, the required CPD credits for all registered professionals is: A 3credit units 45 credit units B 60eredit units D 120 credit units 6. Inpreparing an appeaisal report, the definition of the assignment identifies all the following except A the real estate being appraised Bote highest and best use for the property B __thereal property right D the date of the value estimate 7. Anew Commissioner of the PRC was recently appointed to fil in the vacancy. She is: Atty. Teresita Manzala Jennifer Jardin Manali B. Gigi Chuachiaco D Alfredo Po 8, The three approachés to estimating value are A cost, income, and abstraction © allocation, income, and sales comparison B) cost, market data & income D.__Sales comparison, cost, and residual 9. A large home built in an area of small cottage is an example of: over-improvement Cand regression B —_under-improvement D __fianctional obsolescence 10, 24. ‘The period over which a building may be profitably used is its A Actual life C Useful ife B Physical life: Do Effective life 11, An improvement’s remaining economic life is A its chronological age © _ itseffective age 1|Page12, 13, 14. 15, 16, 1. 18. 19. 20. ai. C the future time span over which the improvement is expected to generate benefits D its effective age minus its chronological age ‘The date of sale of a comparable identifies A the motivation for the sale © the point in time when adjustments take place B the terms of sale the market conditions when the sale was made ‘The highest price estimated in terms of money that a real property is acquired by a buyer who is willing to buy and a seller who is willing to sell but is not obliged or anxious to sell; both of whom have adequate knowledge of the actual and potential use of the property offered for a reasonable time in the open market and neither parties under pressure to buy or sell: Market Value © Value in Use B' Fair Market Value D Value in Exchange ‘The four (4) property types for appraisal or valuation are the following A. Residential, Commercial, Industrial, Agricultural ® _ Real Propény, Personal Property, Businesses, Financial Interests C, Land, Buildings, Machineries, Businesses D, Mineral, Timberland, Real estate, Real Property Which of the following represents the economic characteristics of real estate? Scarcity, I;nprovements, permanence of investient and area preference B and is immobile, indestructible, land is unique C land is soars and limited, land is unique and immobile D scarcity, availabilty of land, uniqueness of land ‘A transaction fieely arrived at in the open market, unaffected by abnormal pressure or by the absence of normal competitive negotiation as might be true inthe case of a transaction between related parties. ‘Anms length transaction C Market forces ‘Actual Salz D Flipping A Statement that appraisers, in thei professional capacity, personally conducted the appraisal in an objective manner. Such a statement penis appraisers to state their precise position, thus protecting their integrity and the validity of their appraisals A. Valuation Statement © _ Cantification of Value B Appraisal Siatement D Appraisal Certificate ‘The value existing in the proven property operation, considered as an entity with business established, as distinct from the value of real estate only, ready to operate but without a going business. A Business Value ‘© Going Concer Value B Lease Interest D Financial interest ‘A valuation techaique which presumes that income can be split between land and improvements and that ‘the residual to land can be then capitalized into value. A Cost Approach GH Ses ospwon omen B —_Tacome Approach Land Residual Technique A process of analyzing sets of property and market data to determine the specific parameters of a valuation model A Mass Appraisal Model © Income Approach © Model Calibration D Cost Approach ‘The cost of constructing 2 similar property which is equally desirable and has the same utility as the one ‘under appraisal, ‘A. Unit In Place Cost ©- Replacement Cost B Quantity Survey D Reproduction Cost 2|Page22, 2. 24, 2s. 26. 27. 28. 29. 20, 31 32. 33, ‘The cost of constructing an exact replica of the building being appraised using current prices of labor and ineterals end contactors prastios A Unit In Place Cost ¢ Replacement Cost B Quantity Survey B—_ Reprodvction Cos ‘This refers to the historical age or chronological age which is the mumber of years that have elapsed since building construction was completed. A Useful Age © Beonomic Age Actual Age D Normal Age ‘A person who is pada referral fee for locating and promoting business opportunities for others: A Flip © Bird Dog B Crack B Swinger Is used when the value of the land can be estimated with reasonable accuracy using the market comparables A Development Approach C Cost Approach ® Sales Comparison D Building Residual Technique Jn real estate lav, the property retained when the owner splits off and conveys part of the property 10 gr party but retains some rights such as an easement for access (a driveway) or utilities, ‘Servient Estate C Right of Way B Dominant Estate D Basement An appraisal by more than one appraiser, which states common conclusions of all A Tot Appraisel © oict Appraisal Bo Mass Appraisel D —_‘Toint Review Represents the ownership interest of a lessor owning real estate, subject to Lease to others. ® Lease Fee Estate C Lease interest B __Leaschold Estate D Leasehold Right ‘The interest belonging to the tenants created by the leasing of property. A Lease Fee Estate C Lease Interest ® —_Leaschold Estate D Leasehold Rights ‘A method investors may use to determine market value. This method calculates the market value of a property by using the gross rents an investor anticipates the property will produce at end of year 1 inultipled by a given factor A Gross Investment Value © Gross Income Multiplier B Gross Leave Value DB Gross Lease Multiplier Real property wich has an easement or other use imposed upon it in favor of another property, such as right of way or use for access to an adjoining property or utility lines. 9 Servient Estate c Right of Way Dominant state D Easement Based on the PVS, here are only two (2) values, namely Market Value and A. Appraised Value © Fair Market Value @® —_Non- Market Vale D. Sound Value A method of land valuation in the absence of vacant land sales, whereby improvement values obtained from the cost model are subtracted from sales prices of improved parcels to yield residual land value estimates. Abstraction Method © Anticipation B Allocation 1D Capitalization 3) Page34, 35. 36. 31, 38. 39. 40. al. 42, 43. 44 45, It includes interests in tangible and intangible items which are not real estat. Items of tangible personal property are not permanently affixed to real estate and are generally characterized by their own moveability. A Realestate ©. —Property B. Real property ©) Personal Property ‘These refers to plant, machinery and equipment are tangible or physical assets which are intended to be used on a continuing basis as part of an enterprise. A Real estate © Property B. Real propery Personal Property Ieis the loss in value brought about by physical deterioration andor obsolescence, Depreciation C Over-improvement B’ —_Obsoleseence D_ Physical Deterioration ‘The loss in value due to wear and tear and exposure to the elements is known as Depreciation —— Over-improvement Obsolescence © Physical Deterioration ‘The loss in value within the property as a result of the development of new technology, changes in design or market preferences is called ‘A Depreciation © Fasotional Obsolescence B Obsolescence B Physical Deterioration ‘tis the loss in value resulting from external influences. Economic;Obsolescence CC ——_Fumeticnal Obsolescence B Obsolescence D Physical Deterioration ‘This refers to thel amount of money necessary to purchase the finished goods or item of property manufactured when offered forsale inthe open marcet. A Cost © —Valoe ® Price D Amount It is an economic concept referring to the amount most likely to be agreed upon by buyers and sellers in an ‘open market transaction where its economic concept reflects the market’s view of the benelits that accrue to one who owns the good or receives the services as of the effective date of valuation. A Cost © Value B Price B Amount To estimate market.value, an appraiser follows the A appraisal report © evauntion methodology valuation process D appraisal guidelines ‘This principle refers to an over-improvement or under improvement that reflects lack of conformity as between one property and its environment. @ conformity supply and demand B change D substitution This principle may be said to be the principe of increasing and decreasing retums as it applies to some portion of improvements A conformity c change © — coatrbuion D substitution Ics that principle, which at the time of appraisal is likely to produce the greatest net return, highest and best use Cc change 4|Page46. 47. 8 49. 50. sl. 2 3. 35. 56. 37. B contribution D substitution ‘The principle which refers to the application of larger and larger amounts of the agents in production will produce greater and greater net income (increasing returns) up to a point (surplus productivity), is called as: ‘increasing and decreasing returns C supply and demand B change D- substitution ‘An appraisal principle, which holds thatthe value of a property tends to be enhanced by association with superior properties. progression © balance Bo regression D highest and best use A principle in appraisal, which refers to the agents in production are labor, coordination, capital and land. Land has the last claim on the surplus productivity of the agents in production. A progressica balance B regression D—_highest and best use ‘This appraisal principle holds that 2 commodity is scarce and the demand is high, hence, its value increases is called as: supply and demand C balance BW regression D highest and best use ‘The process of making an estimate of value of any aset/property in accordance with the generally accepted standards on a given date: Appraisal C Value in Use Valuation, D Value in Exchange It is the process of determining monetary values of the property rights encompassed in an ownership at some specific time/period: A Appraisal © Valuein Use ‘Valuation D Value in Exchange Studies on collecting, organizing, analyzing, and interpreting numerical information refers to © Saatstios C Constant B Variable D Population Which of the following is not an element of appraisal or valuation? A Asof Specific Date Presentation and analysis of data B _Fachal Data, Sales or Listings © inspection and Identification of Property A right to develop the space above a piece of property, building, or other structure, such as a highway. A AirSpace C Transfer Development Rights Air Rights D Floor Area Ratio ‘The following are three basic maps used except A, Physical Map Road Map B Political Map ©) Climate Map ‘The Luzon Datum of 1911 in this province is used as point number 1 forall mapmakers in the Philippines ‘and is the geographic center ofthe country. A Catandua © — Marinduaue Bo Masbate * D ——__Romblon ‘The landlocked provinces have no access to sea or ocean. In other word it has no Coasttine C Shoreline B Borderline D Boundary 5|Page58, 59, 60. 6 62. 63, 66. 66. 67. 68. 69, 0. Itis the study of the environment, people and the resources they use A, Geography Physical Geography JB(_—_-Haman Geosraphy ‘Human and Physical Geography Ttis the study of human use and understanding of the world, the spatial and organization of human activity ands interelationships with the physial environment ‘Geography © Physical Geography Hitman Geography D Human and Physical Geography Ideals with the netural features of the earth, A Geography © __ Physical Geography D B Human Geography Human and Physical Geography Itis the description ofa place in relation to another Relative location C Exact location B-—_Absolute location D Reference location ‘The location of a place using lines of latitude and longitude is A Relative location Exact location ® Absolute location D Reference location Iisa temitory or part ofa territory lying wholly within the boundaries of another @ keine C Extateritoriality Exclave D —— Quairipoine Tes one which soll atached ta nrg piece tot actully contiguous witht A Enclave Extrateritoiality Exclave 5 Quadripoint ‘The first individual to accurately calculate the conference ofthe cath Eratosthenes C Einstein Acistotle D Mozart He is « geographer who first suggested that the discipline of geography could be divided into three distinct branches Bemhardus Varenius C Carl Ritter B ‘Fredrich Retze! D Alexander von Humboldt ‘The most important economic characteristic of real estate, also known as “situs”, is ® Area Preference CC" Permanence of Improvements Be Scarcity DD Fixity tis the application of economic techniques to real estate markets which describe, explain, and pre ee ‘of prices, supply, and demand, Real Estate Economies C Supply and demand B Economics D . Demographics In real estate economics, the main determinants of the demand for housing is: A Supply Cc Demand Demographics D Cost Refers to the capacity to satisfy wants, production by labor and their exchangeability: Economic Utility C Economic Value B Economic Life D Exchange Valuen. R B. 14, 1S. 76. 78. 19, 80, BL, 82 83, A branch of finance which deals with investing money or wealth in real estate is called: @ Real Bstate Finance C Real Estate Investment Trust, Real Estate Investment D Real Estate Development Comp. A Real Investment Trust company shall distribute annually at least how much dividends to its shareholders: 90% Cc 50% Bo 40% D 75% ‘An abstract sphere within which price-influencing factors tend to operate and wherein the payment of the ‘consideration is accompanied by transfer of right rathgr then by movement of goods is referred to as: A Real Bxae Investment © ‘Real Estate Maret B Real Estate Development Real Estate Marketing ‘This refers tothe actual allowable floor area that could be constructed on the land. A AirSpace C Transfer Development Rights B Ait Rights ©) Floor Area Ratio “The distribution ofthe collected real property tex proceeds in case of cities shall be: City, 70%: Barangay, 30% C City, 75%: Barangay, 25% B City, 80%: Barangay, 20% D "City, 85% Barangay, 15% The distribution ofthe collected real property tax proceeds in case of MM/Municipality shall be: A MMDA, 35%; Municipality 30%; Barangay, 35% where 50% to host barangay B__ MMDA, 35%; Municipality 309%; Barangay, 35% where 50% to host barangay © —_ MMDA’ 35%; Municipality 35%: Barangay, 30% where 50% to host barangay DB —_- MMDA, 30%; Municipality 35%; Barangay, 35% where 50% to host barangay A real estate company that offers common shares to the public ‘vhich is similar to any other stock that represents ownership in an operating business A Real Estate Development Corporation C_——_—Real Estate Investment Company © —_ Real Estate Tavestment Trust. D _Real Estate Development Trust ‘The sale or transferof real property to realestate investment trust shall be subject to: A 10% of the applicable DST Br Soes or de apricable DST B 25% of the applicabie DST D 75% of the applicable DST ‘The desirability of the economic utility of the property is known as: A Economic'Utility Economic Value B Economic Life Economic Obsolescence A Real Investment Trist must have a minimum paid up capital of atleast: 'P300,000,000.00 C —P1,000,000,000.00 B ——_P500,000,000.00 D_—_P5,000,000,000.00 ‘The composite interest rate that represents the anticipated income of the investments made and the return which represents recovery of the investments: ‘A, Capitalization Rate © Nominal Rate Recapture Rate D Over-all Rate of Return Itis a factor derived from comparable properties and applied to expected rental income to estimate a vale: @ Gross Income Multiplier Appraised Value B Gross Income Tax D Gross income Refers to buying an under priced property and then quickly reselling it at market value: Flipping © Deal swinging 7|Page84, 85. 86. 86. 87. 88. 89, ot. 92. 93. 94, B Bird dogging D Brokering ‘The Rule in the appraisal of buildings shall be in accordance with the Base Unit Construction Cast co sMV BW Tax Roll on Buildings D Assessment Roll ‘The Act that provides for the framework ofthe Real Estate Investment Trusts: A RAT219« Cc RAG6S7 B -RA7899 © — Rasss6 1¢ Main Law is the fundamental and highest governing law of the land. This is referred to as the: 1935 Philippine Constitution C Botha &B 1987 Philippine Constitution D None of the above ‘Where there is conilict between laws, which one prevails over the other? the law gdverning the conflict C the more superior law the Philippine Constitution D none of the above ‘The two (2) main sources of laws or statutes are: ® Legislature and President C Decrees and Acts B Congress and Senate D —— Statures and Laws 1 Under Article 13 of the Civil Code, it is provided that when the law speak of years, it shall be understood that this refer to 4 360 days: c 366 days 363 dys D 366% daa This law refers to the Real Investment Trust Act of 2009; A. RAS © Rasese B RA 7279 D RA7160 It is a system implemented by the Stet to administer land rights, to record and register private rights on siate lands; @ Land Administration C Land Registration Tand Management D Land Distibution It is a system implemented by the State to manage the allocation and use of land resources and the social, economic, and environmental issues that relate to its allocation and use. A. Land Administration C Land Registration © Land Management D Land Distbution Land management is implemented within a range of policy and legislative instruments, including the following, but not A. landuse planning; development appicatoo/approvals B Jand administration; land taxation; c environment protection; cultural and heritage protection Jand distribution; land registration ‘The Philippines has a total land area of hectares. . A 20 million .c 40 million ® —wmilion D 50 million ‘The Philippine total land area is distributed as follows; 40% forestland; 40% alienable lands; 20% private lands ® 50% forestland; 47% alicnable lands: 3% unclassified lands B C 30% forest land; 30% public lands; 40% private lands 8|Page95 96. 97. 98. 99, D_ 20% forestland; 20% alienable lands; 30% public lands; 30% private lands ‘The following are the Categories of lands, except A Protected areas Privately owned land B Alienable and disposable (A&D) ©) Forest and Unclassified lands Qurrently about 24:2 million parcels are within A&D; 13.1 million already tiled and 11.1 million untitled lands B 13 million already titled and 11.2 million untitled lands C 13.2 million already titled and 11 million untitled lands D 12 million already titled and 12 million untitled lands “To this end, the State shall regulate the acquisition, ownership, use, and disposition of property and its A improvements © investments ‘increments D intelligence ‘The General Rule in Land Ownership and Transfer is that only Filipino citizens and corporations at least sixty percent of the capital of which is owned by Filipinos are entitled to acquire and own jand in the Philippines. The exceptions to the General Rule ~ Alien acquisition of real estate in the Philippi allowed in the following cases, except: A Acquisition before the 1935 Constitution B Acquisition thru hereditary succession if the acquiree isa legal heir Purchase of not more than 40% interest in a condominium project (RA 4726) oO Purchase by former natural born Filipino citizens Acquisition by former natural bom Filipino citizens is not limited to voluntary deeds, but includes involuntary deeds. The maximum area that may be acquired for residential purposes is @ 1,000 squere meters of urban land or I hectare of rural land 5,000 square meters of urban land or 3 hectares of rural land c 10,000 square meters of urban land aid 10 hectares or rural land D 50,000 sqcare meters of urban land or 30 hectares of rural land ‘Acquisition by former natural bom Filipino citizens is not limited to voluntary deeds, but includes involuntary deeds. The maximum area that may be acquired for business purpose is A 1,000 square meters of urban land or I hectare of rural lend ® 5,000 square meters of urban land or 3 hectares of rural and C 10,000 sqtiare meters of urban land and 10 hectares or rural land DS hectares of urban land or 30 hectares of rural land 9|Page2014 PRACTICE TESTS REAL ESTATE APPRAISERS’ LICENSURE EXAMINATIONS INSTRUCTION: SHADE THE LETTER OF YOUR ANSWER CORRESPONDING TO THE BOX ON THE ANSWER SHEET PROVIDED. NO ERASURES ARE ALLOWED AS IT WILL INVALIDATE THE RESULT OF YOUR EXAMINATION. GOOD LUCK TO ALL. CE PART 2~— PROFESSIONAL APPRAISAL PRACTICE (50%) 1, Tf a particular buyer requires a recapture of’ the building portion of the price in 30 years, what is the indicated recapture rate of the building? A % 9 31B% Bo 3K% 3%% 2. A T-year-old residence is currently valued at P720,000. What was the original value if it has appreciated by 60 percent since it was built? A P270,000 450,000 B 378,000 i,152,000 3. It is when data volume becomes large datsbase management system (software) to store, organize, and ‘manage data are stored conceptually a8 a collection of tables. A People Gata B Organization ©) Data Managément 4, _Bifeetive Gross Income isthe anticipated income from operation of a project after adjustment for A realty tax and insurance CC operating expenses vacancy ane credit loss D _allofthe above To adjust sale price of a comparable sale witha ten pereent(10%) better location, you should A add 10% to the price © subtract 10% to the price B__muiply the price by 10% D none of the above 6-10. _K F Sy Development Corporation plans to put up a residentiel-commercial condominium tower in Ortigas Center, Pasig City on a 2,000 square meter lot following a floor area ratio of 20 times. The frontage of the otis 40 meters and 2 depth of 50 meters. The setback is S meters and an easement of 2 meters at the sides ‘and rear portion of the lot. To maximize his profits, he bought the air rights of the adjoining building which has a FAR of only 2 times. 11, What is the maximum floor area that he can put up on the lot? A 75,852 square meters 158,824 square meters B 1,548 square meters 76,000 square meters 12, What isthe projected floor area ofthe building? @ 76,000 square meters c 75,852 square meters 58,824 square motors D 1,548 square meters 13. Whatis the total namber of floors can he built if he wjll observe the FAR of 20 times? A AT storeys 49 storeys B46 storeys DBD 48sstoreys 14. Whatiis the final floor area of the building? A 80,000 square meters C 76,000 square meters 10 [Page15, 16. nn 18, 19, 20. 21. 22. 23. 24, 25. 75,852 square meters D 58,824 square meters low much isthe transfer development rights that he bought? 36,000 square meters C~ 38,000 square meters B 76,000 square meters D 80,000 square meters ‘The tenant pays a fixed amount and gets to use the property for a specific time. At the end of the lease, the sroperty reverts back to the landlord. Flat Rental Lease © Step Up/Down Lease B Variable Rate Lease D Revaluation Lease ‘The tenant will pay one amount now and usually a higher mount later which is a common condition of long-term lease in which increases are needed inthe later years. A Flat Rental Lease © "Step Up/Down Lease © —_Vasiablo Rate Lease D ——_Rovalustion Lease ‘These leases are scheduled with increases or decreases on certain dates, where the rent can increase due to inflation or can be scheduled to go down as the tenant improvement expense is amortized. A. Flat Reetal Lace ‘© Step Up/Down Lease B Variable Rate Lease. D ‘Revaluation Lease ‘These Jeases require the property to be reevaluated (usually at market value) and the value of the property snultiplied by a factor to calculate the rental rate, A FlatRental Lease Step Up/Down Lease ‘This type of lease-is usuelly used for rentel properties. The tenant pays a flat mount eech year plus percentage of sales.or a percentage of the sales from the first peso on A FlatRental Lease > Step Up/Down Lease @ — Peroentege Lease D Revaluation Leese ‘The amount of money the property would command under current market conditions which can be different from contract rent because this is the ammount the property would command ignoring the leases. Market rent C Effective rent B Contract ent D Percentage rent This represents the potential gross income and this makes some appraisal assignments easier because the 157,s0000 D — Pi72-soo.0o. Go Kong Wei Land Corporation will put up a residentia-commercial condominium tower in Ortigas Conter, Pasig City on a 2,000 square meter lot following a oor area ratio of 20 times. The frontage of the lot is 40 meters and a depth of 50 meters. He made a setback of 5 meters and easement of 2 meters atthe sides and rear portion of the lot. To maximize his profits, he bought the air rights of the adjoining building Which hasa FAR of nly 2 tines, ‘What is the maximum floor area that he can put up on the lot? A 75852 square meters $8,824 square meters B 1,548 square meters ©) 76,000 square meters What is the projected floor area of the building? 76,000 square meters C 75,852 square meters B 58,824 square meters D 1,548 square meters, ‘What is the total number of floors can he built if he will observe the FAR of 20 times? A AT storeys © 49storeys B46 storeys D—8storeys ‘What isthe final floor area of the building? A 80,000 square meters € 76,000 square meters @® 75,852 sqpiare meters D 58,824 square meters Yow much is the tansfer development rights that he bought? 36,000 square meters C 38,000 square meters B 76,000 square meters D 80,000 square meters 14|Page37 58. 59. 60. 6 62. 63. 64. 65, 67. A comparable site was sold a month ago for P25,000 per square meter. Its location is considered 15% superior and its shape and topography is 19% inferior to the subject site. The time adjustment is 12% per ar. Determine the adjusted sale price of the comparable site using straight plus and minus adjustment: 6 'P26,250.00 per square meter C ——P25,750 per square meter 1P24,250.00 per square meter D —_P24,000 per square meter Ifthe subject property is 10% superior to the comparable sale and the comparable was sold for P1,000,000, ‘what isthe indicated value of the subjeot? é 1,000,000 x 0.90 = P900,000 C —_P1,000,000 / 1.10 = P909,000 ILL 1,000,000 x 1.10=P1,100,000 D —_Pi,000,000/0.9 ‘The appropriate adjustment for time is determined to be 9% per year. The time adjustment for a comparable property that was sold a year ago for P100,000 per square meter is: A” Less P9,000 per square meter © Pius P9,000 per square meter B_ Plus P6,050 per square meter D Less P6,000 per square meter If a comparable was sold for P2,000,000 and has two-car garage, adding P100,000 to the value, and the subject property does not have a garage, the indicated value of the subject property would be found by: ‘A-—‘Subtracting P100,000 from the subject property B_ Adding P100,000 to the comparable sale © Subtracting P100,000 from the comparable sale D —_ Adding P100,000 to the subject property ‘A residential house with a total area of 85 sq. m. was built and occupied in 2012. The Structural type falls under I-A-1-G with a unit cost of construction of P5,340.00/sq. m. Compute the Market Value of the property if said building hos a carport measuring 3m x Sm and 10 mm thick pavement with an area of 60 59, m. Market Value of carport is 40% of BUCC as per schedule, Market Value of pavement is P 250.00%qm. | © P500,940.00 © __Ps00,940.00 B —_P4S3,900.00 D 467,900.00 “The frst step in the appraisal process isto A Gather data, analyze and classify C Review careflly the entire process B —_Delermino the inforaation isneeded (DS). Analyze the problem Conclusion as to th highest and best use is part of whigh step? A Defining the appraisal problem ‘Analyzing the data B _Preliminery analysis DB ——_- Making the final estimate of value ‘What isthe market value ofa triangular lot with base along the road of 15 meters and a depth of 15 meteis, if the unit market value assigned by the assessor is PLOO/Sq. m.? A P9,000.00 c ‘3,000.00 B ¥22,50000 ® — ¥750000 “The final step inthe valuation proces. A Reconciliation of Values @ Valuation Reporting B Highest and Best Use Analysis Final Opinion of Vale ‘A valuation review performed by a Valuer to form en opinion as to whether the analysis, opinions, and Conclusions in the report under review are sppropriate, reasonable, and supportable: A Administrative review Field review B _Deskreview ©) Technical review ‘A valuation review that includes inspection of the exterior and sometimes the interior of the subject property and possibly inspection ofthe comparable properties to confirm the data provided in the report: 15|Page68. 69. 70. n n. RB 4, 18. 16. 11 8. A. Administrative review "© Field review B Deskreview Technical review ‘A valuation review: performed by a client or user of valuation service as an exercise in due diligence when the valuation is to be used purposes of decision-making such as underwriting, purchasing, or selling the roperty: BP sass resin © Pati B Dekrviow DToxhualveview ‘A valuation review that is limited to the data presented in the report, which may or may not be independently confirmed: Av Technical review © deskreview Bo Fleldreview B Administrative review ‘What is the market value of a triangular lot with apex along the road having a dimension of 15 meters depth and rear perimeter 3f 12 meters, ifthe unit market value assigned by the assessor is P100Vsq, m.? A P9,000,00 © 3,000.00 B P22,500.0 D —_P7,500.00 In cou proceeding wre the AppasevVatur is posted as expe wines, Which oor isos seprprate at tie moment? Short te report © afllmraive repo or form report © Neposton sopra wring Dd Ontrepon A-Valuer or an Appraiser who, together with any associates, has no material links with the client, an agent acting on behalf of the client, or the subject ofthe assignment. a Vale Gr external Valuer B Appraiser ‘D Internal Valuer A Valuer or an Appraiser who is in the employ of either the entity that owns the assets or the accounting firm responsible for preparing the entity's financial record andéor reports. A Valuer External Valuer Bo Appraiser © intemal Valuer ‘The PVS state tho two (2) rules on Standards, What ifthe standards are wrong? The TWO RULES ON STANDARDS SAYS: 1. Follow the STANDARDS. 2. If the Standards are wrong, refer to RULE No. 1 B 2, _ If the Standards are wrong, repeat the Standards C 2 Follow the Standards. D —-2_—_ Disregard the Standards. A type of machinery which is used to transform or process materials from one state to another. This can be movable, permanent or of semi-permanent installation within the plant A Machinery Te Indust Machinery B Commercial Machinery D Agricultural Machinery ‘A (ype of machinery which is used for agricultural purposes such as tractors, imigation pumps, farm implements, etc. A Material Handling Equipment Industrial Machinery B_ Transportation Equipment ® Agricultural Machinery ¢ used in handling or transporting of raw materials andlor finished goods within the plant. (> Material Handling Equipment © Industrial Machinery B _Transportetion Equipment D Agricultural Machinery ‘These include moick vehicles arezalt or watererafl. 16 | Page79. 80. 81 83. 85. 86, 87. 88. A Maierial Handling Equipment C Industrial Machinery ® Transportation Equipment D Agricultural Machinery. A classification of property which consists of physical facilities that are available for production, and includes the necessary installation, service facilities and all other equipments designed for its ‘manufacturing and'industril purpose, including those items for furniture and fixtures forthe administration ‘and proper operaticn of the enterprise. A Meterial Handling Equipment Machinery B ‘Transportation Equipment ® Machinery and Equipment ‘These are properties which do not possess this characteristics of generating monetary returns, but which are of such a nature that the benefits of owmership are derived by use and/or consumption by the owner are derived and/or consumed by the owner A Material Handling Equipment © Investment Property B Transportation Equipment © —_Nominvestinent Property ‘A residential house with a total arca of 85 sq. m. was built and occupied in 2012, The Structural type falls under J-A-1-G with a unit cost of construction of P5,340.00/eq, m. Compute the Market Value of the property if no additional factors were noted. A P426,284.00 © 510,000.00 ®__P4s3,900.00 D 481,416.00 The procedures in valuation of machinery and equipment including transportation vehicles must observe the following steps: A Establish ownership; Inspect and verify the documents submitted to you Check present price with indentors, dealers, suppliers, traders, technical bulletin and publication; Estimate the replacement cost Estimate the accrued depreciation; Come up with value using the above information as basis Apply the reconciliation technique and determine the final estimate of value B Cc D “Toe Compensating Tex. for BOI registered enterprise i Oh CK B 10% D 20% ‘The Compensating Tax for non-BOI registered enterprises is: .. a o% c 15% ® 0% D 20% In case ofa city, the basic tax it may charge for real property tax shall be Not excoeding 2% ofthe assessed value C ——_Not exceeding 2% of the fair market value Not exceeding 1% of the assessed value” D —_Not exceeding 1% of the fair market value ‘Under what classification does a vacant Io fll with an assessed value of 20% of its fair market value? Agriculture Industrial Residentia} D Commercial ‘The provincial, city or municipal assessor shall undertake a general revision df real property assessments every. A 12 months 2years Buea & tee Real Property declared for the first time shall be assessed for taxes for the period during which it would have been liable but not more than how many years from the initial assessment? A 2 years © 10 years B S yoars D 1 year 17|Page89, 90. 91. 92. 93. 94. 95. 96. 97. 98, ‘The Chairman of the Local Board of Assessment Appeals in a ci A. Gity Auditor © Gity Register of Deeds Bo GiyMayor B City Engineer ‘An annual levy on real estate equivalent to 1% of assessed value which shall be in addition to the basic real property tax is A Special real estate tax © Special education fund tax B Special Ascessment fund tax ‘Ad valorem Tax ‘The valuation of property for the purpose of levying a tax, or the amount ofthe tx levied. Valuation C Appraisal Asoessment D Adjustment A percentage of merket value prescribed by law at which the assessed value is set. A Appraised Value © "Assesment Level B Market Velue D Appraised Level “The records atthe Assessor's Office containing the list ofall properties whether taxable or exempt © Assessment Roll © TaxRoll B Assessors Registry D Tax registry A five (5) heciare isrigated rice land has a unit value per Schedule Fair Market Value of P 120,000.00 per hectare, [fit is over 3 km. from all weather road and trading center with no road outlet, what is the adjusted. market value? et, @® P510,000.20 © P690,000.00 B ——_P600,000.30 D ——_P622,000.00 1 ‘The Rule for adjustment of Triengular lots with its base on the street is: D Compute es a rectangular lot thea take 2/3 of the resultant value. B_ Compute es a rectangular lot then take 1/3 ofthe resultant value C Compute the value of the rectangular and triangular portions separately according to the rules hhoreof, then get the summation, D Reduce the irregular lot to the nearest equivalent rectangular, triangular and trapezoidal sectors and apply the foregoing rules. ‘The Rute for adjustment of Triangular lot with its apex on the streat is: ‘Compute asa rectangular lot then take 2/3 ofthe resultant valve Compute asa rectangular lot then take 1/3 ofthe resultant value Compute the value of the rectangular and triangular portions separately according to the rules hereof, then get the summation, Reduce the irregular lot to the nearest equivalent rectangular, triangular and trapezoidal sectors and apply the foregoing rules. 3 o> The Rule for adjustment of Ireqular Loti: A Compute as a rectangular lot then take 2/3 of the resultant value. B Compute as a rectangular lot thes take 1/3 of the resultant value © Compute the value of the reciangular and triangular portions separately according to the rules hhoreof, then got the summation. D Reduce the irregular lotto the nearest equivalent rectangular, triangular and trapezoidal sectors and apply the foregoing rales. ‘The Rule for adjustment of Trapezoidal lot is: A Compute as @ rectangular lot then take 2/3 of the resultant value. B Compute as a rectangular lot then take 1/3 of the resultant value C Compute the value of the rectangular and triangular portions separately according to the rules hereof, thea get the summation, 18|Page@ Reduce the ieregular lot to the nearest equivalent rectanguler, triangular and trapezoidal sectors and apply the foregoing rules. 99. 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