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LB ph2 Sample Paper 20032019
LB ph2 Sample Paper 20032019
CLASS: LAND AND BUILDING WITH EFFECT FROM 1st APRIL, 2019
Ans. (a)
2. Other things remaining the same, the law of demand states that:
Ans. (b)
3. A market which has only one seller selling a homogeneous product to many buyers is
known as:
a. monopoly
b. oligopoly
c. perfect competition
d. monopolistic competition
Ans. (a)
a. Rent
b. Investment
c. Profit
d. Capital
Ans. (c)
5. The frequency at which one unit of currency is used to purchase domestically produced
goods and services within a given time period is known as:
a. velocity of money
b. speed of money
c. momentum of money
d. count of circulation of money
Ans. (a)
6. Which of the following is not a cause of demand-pull inflation?
Ans.(c)
7. If a person has an income of Rs.30000 and his consumption is Rs.10000, then his
propensity to save is:
a. 1.33
b. 0.33
c. 0.67
d. 1.50
Ans. (c)
a. population growth
b. level of income
c. progress of technology
d. expectation of the entrepreneur
Ans. (b)
a. mixed economy
b. capitalist economy
c. parallel economy
d. socialist economy
Ans. (c)
10. When we take the sum total of values of output of goods and services in the country,
without adding net factor incomes received from abroad, the figure so obtained is
called:
Ans. (c)
11. In double entry system, accounts are primarily classified in to ___________.
Ans. (d)
12. For a real estate construction company, which of the following is not part of Profit and
Loss statement?
Ans.(c)
13. Difference between selling price and variable cost per unit can be classified as______
margin per unit.
a. contribution
b. gross
c. net
d. profit
Ans. (a)
14. _______ can be filed in the court of law for the violation of Directive Principles of
State Policy given under the Constitution of India.
a. Writ
b. Civil suit
c. Criminal case
d. No action
Ans. (d)
a. Competent Parties
b. Free Consent
c. Legal Object
d. Adequate Consideration
Ans.(d)
16. Performance of contract is one of the methods to__________.
Ans.(d)
17. A contract to perform the promise, or discharge the liability, of a third person in case of
default is known as:
a. contract of indemnity
b. contract of guarantee
c. contingent contract
d. quasi contract
Ans.(b)
18. A owes money to B under the contract. It is agreed between A, B and C that B shall
henceforth accept C as his debtor instead of A. Which of the following statement is
true?
Ans.(a)
19. A person employed to do any act for another, or to represent another in dealing with
third persons is called?
a. Principal
b. Agent
c. Surety
d. Principal debtor
Ans. (b)
a. in rem
b. in personam
c. in recission
d. in novation
Ans. (a)
21. With reference to the Arbitration and Conciliation Act, 1996, if the parties fail to
determine number of arbitrators, which statement holds true?
Ans. (a)
Ans. (b)
23. Mr. X desires a Court to give judgment that he is entitled to certain land in the
possession of Mr. Y, by reason of facts which he asserts, and which Mr. Y denies, to be
true. Select the correct statement.
a. Mr. Y must prove the existence of the facts
b. There is no burden on either to prove the facts
c. Mr. X must prove the existence of the facts
d. The Registrar of the property concerned shall prove the possession
Ans.(c)
24. As per section 36 of the Insolvency and Bankruptcy Code, 2016, the liquidator shall
hold the liquidation estate:
a. as an agent of debtor
b. as an agent of committee of creditors
c. as a fiduciary for the benefit of all the creditors
d. as a fiduciary for the benefit of all the stakeholders
Ans. (c)
25. Section 231 (2) of the Companies Act, 2013 empowers a tribunal to __________, if it is
satisfied that the compromise sanctioned under section 230 cannot be implemented
satisfactorily, and the company is unable to pay its debts as per the scheme.
Ans. (a)
26. When numbers are associated with weights, then obtained mean is said to be _______.
Ans. (a)
27. The patterns of change within a year that tend to be repeated from previous period is
called ________.
a. irregular variation
b. seasonal variation
c. secular trend
d. cyclical fluctuation
Ans. (b)
28. Technology that permits safe, efficient, and inexpensive clean-up of contaminants in
property tends to minimise _________ in asset value.
a. decrease
b. increase
c. fluctuations
d. escalation
Ans. (a)
29. Which planning provision is required around the battery limit of industry and for
industry having odour problem?
a. No development zone
b. Green belt
c. Special permission zone
d. Industrial regulation zone
Ans. (b)
30. In which of the following Act, provisions for health and safety in industries are
covered?
Ans. (c)
31. Which of the following legislations does not provide for pollution control?
Ans. (d)
32. A valuer shall act with objectivity in his professional dealings by ensuring that his
decisions are made ________.
Ans. (a)
33. Under the Companies (Registered Valuers and Valuation) Rules, 2017, a valuer shall
maintain records of each assignment undertaken by him and proper working papers for
a period of ______.
a. 5 years
b. 2 years or such shorter period as required in its contract for a specific
valuation
c. 3 years or such longer period as required in its contract for a specific valuation
d. 2 years
Ans. (c)
34. Under the Right to Fair Compensation and Transparency in the Land Acquisition and
Rehabilitation Act, 2013, market value is decided by the collector as per________.
Ans. (b)
35. _______ means arranging or distributing lands and properties according to particular
features or characteristics, purposes, uses, etc.
a. Safety regulations
b. Zoning
c. Floor space index regulation
d. Subdivision regulations
Ans. (b)
Ans. (b)
37. As per the Real Estate (Regulation and Development) Act, 2016, what percentage of
collections needs to be deposited by developers in Escrow accounts towards the cost of
construction including that of land?
a. 50 per cent
b. 60 per cent
c. 70 per cent
d. 80 per cent
Ans. (c)
38. As per the Transfer of Property Act, 1882, immovable property includes ______.
a. furniture
b. growing crops
c. grass
d. things permanently fastened to anything attached to the earth
Ans. (d)
39. A gift to two or more donees, of whom one does not accept it, is__________.
Ans. (a)
40. Which of the following property may not be transferred?
a. Growing crops
b. Immovable property
c. Grass
d. An easement right without dominant heritage
Ans. (d)
41. The Hindu Succession Act, 1956 does not apply to ______.
Ans. (d)
a. value
b. price
c. cost
d. worth
Ans. (b)
43. The value at the end of utility period of the asset without being dismantled is called
____ value.
a. salvage
b. realisable
c. scrap
d. junk
Ans. (a)
a. useful
b. scare
c. in abundance
d. transferable
Ans. (c)
45. Which of the following shaped plot of land may command the highest value?
a. Triangular
b. Square
c. Irregular
d. Narrow strip
Ans. (b)
a. physical
b. legal
c. technical
d. social
Ans. (b)
47. The price that would tend to prevail in a free, open and competitive market based on
equilibrium set by the forces of demand and supply is called:
a. value in exchange
b. value in use
c. optimum value
d. realisable value
Ans. (a)
Ans. (a)
49. A fund formed by setting aside an annual recurring amount for a given period to recoup
capital invested in a landed property is called:
a. sinking fund
b. amount of ` 1 per annum
c. annual value
d. investment value
Ans. (a)
50. Amount of Rs.1 per annum is worked out by which of the following formula?
a. r / {(1+r)n} - 1}
b. {(1+r)n - 1}/r
c. r / {(1+r)n + 1}
d. {(1+r)n + 1}/r
Ans. (b)
51. A company is prepared to pay a rent of Rs.15,000 per annum, provided renovation
work around into Rs.50,000 is carried out by the owners. The owner desires that the
renovation should be carried out by the company and is prepared to accept a low rent.
What rent so the company offer based on 9 per cent rate of interest? Present value of
Rs.1 per annum at the 9 per cent and 5 per cent for 15 years is 7.334.
a. Rs.8,182/-
b. Rs.3,668/-
c. Rs.11,667/-
d. Rs.12,141/-
Ans. (a)
52. A proposed development of Metro rail station in the city would _____.
Ans. (b)
53. Which one of the following is not a characteristic of real estate market?
Ans. (c)
Ans. (a)
55. Which is Green Building Rating System in India for New Construction?
Ans. (a)
56. Under rent capitalization method, value of the property increases with:
Ans. (c)
57. In case the unexpired period of lease is too long then reversionary value would be___.
a. negative
b. zero
c. negligible
d. less than zero
Ans. (c)
58. Which among the following is not a factor affecting market rent?
a. City
b. Location
c. Type of building
d. Turnover of the lessee
Ans. (d)
59. In relation to a lease agreement, the actual rent specified in the lease is called _____.
a. contractual rent
b. effective rent
c. negotiated rent
d. standard rent
Ans. (a)
60. In leasehold property, lessor’s interest, on a date of valuation, consists of:
Ans. (d)
Ans. (a)
62. The discount factor used to appraise capital investment decision is a measure of:
Ans. (a)
63. For which of the following property, profit method of valuation is most appropriate?
a. Vacant Land
b. Petrol pump
c. Residential Home
d. Public School
Ans. (b)
Ans. (c)
65. Which of the following is not a source from which sale instances of immovable
property in a particular locality can be collected?
Ans. (d)
Ans. (b)
67. Which of the following property is normally valued by sales comparison method?
a. service property
b. investment property
c. non-investment non-marketable property
d. an owner occupied small residential house
Ans. (d)
68. Which of the following piece of land would command higher rate of land value in the
residential zone?
Ans. (a)
69. Which of the valuation method is generally used for carrying out valuation of large
plots when sale instances of large size plots in the locality are not available?
Ans. (b)
70. Mr. A. developed a real estate project. Gross development value of completed project is
Rs.500 crore, construction cost and other developmental costs Rs.200 crore, and
Developer’s profit is 10 per cent of value of completed project. Calculate the residual
land value?
a. Rs.250 crore
b. Rs.200 crore
c. Rs.150 crore
d. Rs.270 crore
Ans. (a)
71. In a joint venture agreement, the share of the developer is less when ______.
Ans. (c)
Ans. (c)
73. Actual survival life of the building before it collapses is called the _____.
a. useful life
b. economic life
c. physical life
d. residual life
Ans. (c)
a. Social life
b. Physical life
c. Economic life
d. Life equal to average age of the buildings in neighbourhood
Ans. (c)
75. Decrease in value of the property through wear and tear is called as:
a. depreciation
b. economic obsolescence
c. functional obsolescence
d. technical obsolescence
Ans. (a)
76. Asset which has become outdated mainly due to the planning and designing being
unsuitable for present day requirement of the user is an example of:
a. technological obsolescence
b. economic obsolescence
c. functional obsolescence
d. excess depreciation due to wear and tear
Ans. (c)
77. Depreciated Replacement Cost is market value of special purpose industrial plant
building subject to potential______.
a. profitability
b. cost
c. price
d. value
Ans. (a)
78. Which of the following does not reduce physical life of building?
a. Bad workmanship
b. Periodic maintenance of the building
c. Use of inferior materials
d. Neglected maintenance of the building
Ans. (b)
79. Which one of the following valuation methodologies is most appropriate for valuing a
non-income generating owner occupied residential bungalow?
Ans. (b)
80. While carrying out valuation of property for bank finance, which of the following is not
to be taken into consideration?
Ans. (d)
81. When the result of a combination of two or more assets or interests where the combined
value is more than the sum of the separate values is known as __________.
Ans. (c)
Ans. (a)
a. Public
b. Client
c. Valuer himself
d. Client’s Advisor
Ans. (a)
84. Which of the following judgements recognises the concept ‘Valuation is an art, not an
exact science. Mathematical certainly is not demanded, nor indeed is it possible’?
Ans. (b)
85. In which of the following case, the concept of deduction of development cost to arrive
at market value of undeveloped land from sale instances of developed land has
evolved?
Ans. (a)
86. In context of the property insurance, which of the following is a human peril?
a. War
b. Age of the Property
c. Cyclone Facade
d. Upliftment
Ans. (a)
87. An insurance policy generally allows one to value the respective building and/or
contents by _____________.
Ans. (b)
88. A fire broke out in Hemant's factory and damaged half of the stock which was to be
shipped to a nearby cloth dealer. His fire insurance policy had the average clause in it.
Actual value of the stock: Rs.3,00,000, Sum insured for the stock: Rs.2,00,000, Loss
incurred: Rs.1,50,000 (As half the stock was destroyed). The claim amount will be Rs.
a. Rs.1,00,000
b. Rs.3,00,000
c. Rs.2,00,000
d. Rs.1,50,000
Ans. (a)
a. over insured
b. fair insurable amount
c. fair premium for insurance
d. under insured
Ans. (d)
90. Which of the following is not an essential quality of valuation report?
Ans. (a)
Ans. (c)
92. While valuing asset where the valuer is not conversant with its features, which of the
following is the best option?
a. It is advisable to engage the services of an expert and the signed report of the
expert be made a part of valuation report
b. It is advisable to engage the services of an expert and his report need not be
made a part of valuation report
c. he can privately seek the services of such expert and need not disclose in the
report
d. It is enough to mention in report about details of expert engaged.
Ans. (a)
Attempt Questions 93 to 96 based upon the following case study: (4 x 2=8 marks)
An owner purchased a piece of land admeasuring about 350 m² and constructed a bungalow
of ground and one upper floor for his personal use some 30 years back. The bungalow is of
first-class construction having a future economic life of 40 years and has got the total built-up
area of 300 m². The owner now desires to sale the same and has received an offer of Rs.55
lakhs with vacant possession or in the alternative he has been offered a gross yearly rent of
Rs.2,00,000 for the bungalow and the plot together. There is good demand for such property
in the locality.
Value of land in the locality for similar plots = Rs.8000 per sq.m.
Present replacement cost of such a bungalow = Rs.15,000 per sq.m.
Total outgoings = 15 per cent of the gross rent
Annual sinking fund for redemption of Re. 1 at
5 per cent in 70 years = 0.0017
Amount of Re. 1 per annum in 30 years at 5 per cent = Rs.66.439
Year’s purchase at 3% in perpetuity = 33.33
Ans. (b)
a. Rs.39,91,950
b. Rs.38,11,500
c. Rs.35,12,250
d. Rs.45,00,000
Ans. (a)
a. Rs.39,91,950
b. Rs.45,00,000
c. Rs.65,00,000
d. Rs.38,11,500
Ans. (b)
96. What will be the market value of the property by income approach?
a. Rs.66,66,000
b. Rs.56,66,000
c. Rs.55,00,000
d. Rs.50,00,000
Ans (b)
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