BASIC APPRAISAL FOR REAL ESTATE BROKER

A building is depreciated at 2.5% per annum using the age life method. What is the estimated useful life of the building? 40 years

A person who determines the land value. Real Estate Appraiser

Using the 4-3-2-1 rule (depth rule) a 5-hectare belonging to different owners was sold for ₱ 10 000 000. What is the share of lot owners owning
the first quarter abutting the road? ₱ 4 000 000

The following are determinants of value in appraisals of realty

except:
A) contribution
B) demand
C) purchasing value
D) scarcity E) utility

The principle of value which states that the value of a property tends to be enhanced when there is reasonable homogeneity in use.
Principle of Conformity

An appraisal technique in which comparative estimates are made between prices paid in actual transactions and the current listings
Market Data Approach

Income approach for an appraisal would be most widely used:

A) on a newly opened subdivision
B) on commercial and investment property rented by tenants
C) on property heavily mortgaged
D) on property heavily insured
E) none of the above

The income approach to value is an application of the principle of Anticipation

This principle holds that when two or more commodities with substantially the same utility are available the one with the lowest price receives
the greatest demands and widest distribution. Principle of Competition

In the computation of depreciation of real properties, the method that is widely used by practitioners is the Age-Life Method Straight Line of
Depreciation

An appraisal principle which holds that the value of property tends to be enhanced by association with superior properties. Principle of
Progression

Several houses valued at ₱1000000 and ₱2 000 000 were built in an area where an existing house valued at ₱3 000 000 is located. As a result,
the value of the latter decreased. The real estate principle of value that applies to this situation is called the Principle of Regression

Investor s intending 2 buy a property which has annual income f ₱3600000. Has market study he finds out dt a comparable property w/ annual
gross income f ₱2500000 was recently sold 4 ₱17800000. Indicted by d comparable property @ how much should invest buy the subj
property?
₱25 632 000 (Based on Gross Income Multiplier)

Thee of the following factors create value in real estate. Which one does not create value?
A) demand
B) utility
C) infiltration
D) scarcity

Which of the following is never considered as a factor in the valuation of a house and lot?
A) modification in zoning regulations
B) topography of the lot
C) conviction of the previous owner on charges of moral turpitude
D) functional obsolescence

The selling price of a real estate is usually based on its:

A) speculative value
B) exchange value
C) intrinsic value
D) market value
E) none of the above

The increase in value of real estate without any expense of the owner is. Unearned Increment
Refers to that use which will yield the maximum return at a given time. Highest and Best Use

To be considered comparable to the subject property a comparable property must have been sold:
A) with a conventional mortgage
B) for all cash
C) without any form of secondary financing
D) for credit
E) in an arm's length transaction

Added value inherent on a lot bounded by two streets:

A) cooperate interest
B) plottage value
C) social value
D) joint venture
E) corner influence

The difference between the contract price and the loanable amount is. Buyer's Equity

Refers to the use an object is put to the services it renders and wants it satisfies. Utility

Which f the ff is not essential n d determination f Fair Market Value?

A. knowledge n prudent seller & buyer
B. reasonable exposure of the property n d open market
C. assessed value indicated n d Tax Declaration
D. Willing buyer and willing seller

Method of finding land value in which all improvement costs (less depreciation) are deducted from sales price. Abstraction or Extraction

The number of years elapsed since the original structure was built. Actual Age or historical age or Chronological Age

A method of computing accrued depreciation in which the cost of a building is depreciated at a fixed annual percentage rate. Age-life method
or straight-line method

An estimate of quantity quality or value. Appraisal

The process through which conclusions of property value are obtained. Appraisal

The report setting forth the process of estimating value. Appraisal

Approaches used in the appraisal of property. Cost Approach Income Approach and Market Data Approach

An appraiser's written opinion to a client of the value south for the subject property as of the date of appraisal giving all details of the appraisal
process. Appraiser's Report

A transaction which both buyer and seller act willingly n under no pressure w/ knowledge f d present conditions n future potential of d
property n in which d property has been offered on d open market 4 a reasonable length f time n there r no unusual circumstances. at Arm's
Length Transaction

Loss of value from forces outside the building or property such as changes in optimum land use legislative enactments that restrict or impair
property rights and changes in supply-demand relationships. Economic obsolescence external obsolescence

A building wall or fence that extends beyond the land of the owner and illegally intrudes on land of an adjoining owner or a street or an alley.
Encroachment

The age of a building based on the actual wear and tear and maintenance or lack of it that the building has received. Effective Age

The period of time during which a structure may reasonably by expected to perform the function for which it was designed or intended.
Economic Life

For appraisal purposes loss in value due to any cause including physical deterioration functional obsolescence and external obsolescence.
Depreciation

Kinds of depreciation in appraisal:

1. deterioration
2. functional obsolescence and
3. economic obsolescence

A statistical study f human population especially in reference 2 size density and population. Information therein s f particular importance 2
people involved in market analyses n highest n best use analyses in determining potential land uses f sites Demography
Prvsns n a deed lmtin d ftre uses f d prprty. Ds my tk any frm: Dy my lmt d dnsty f bldgs. dctte d typ f strctrs dt cn b erctd n prvnt bldgs. frm
bein usd 4 spec. prpses or usd @ al. Ds may impse a myriad f lmittns n cnditns afctin d prprty rgts apraisd.
Deed Restrictions

The principle that buildings should be similar in design construction and age to other buildings in the neighborhood to enhance appeal and
value
Principle of Conformity

The principle that a successful business attracts other such businesses which may dilute profits. Principle of Competition

Properties that are substantially equivalent to the subject property. Comparable

The principle that no physical or economic condition ever remains constant. Principle of Change

Defects in a building or structure that detract from its value or marketability usually the result of layout design or other features that are less
desirable than features designed for the same functions in newer property. Functional Obsolescence

A lease of land only on which the lessee usually owns the building or is required to build as specified by the lease. Such leases are usually long-
term net leases the lessee's rights and obligations continue until the lease expires or is terminated by def. Ground Lease

Rent paid for the right to use and occupy land according to the terms of a ground lease. Ground Rent

The legally and physically possible use of land that is likely to produce the highest land (or property) value it considers the balance between
site and improvements as well as the intensity and length of uses. Highest and Best Use

An appraisal technique used to estimate the reproduction or replacement cost the appraiser multiplies the original cost of construction by a
price index for the geographic area to allow for price changes. Index Method

The lessor's interest and rights in the real estate being leased. Lease Fee

The lease’s right to possess and use real estate during the term of a lease. This is generally considered a personal property interest. Leasehold

An improvement to property that is more than warranted by the property's highest and best use and thus not likely to contribute its cost to
the total market value of the property. Over improvement

The subsequent increase in the unit value of a group of adjacent properties when they are combined into one property in a process called
assemblage. Plottage Value

A lease commonly used for commercial property that provides for a rental based on the tenant's gross sales at the premises. Percentage Lease

A lease that stipulates a base monthly rental plus a percentage of any gross sales exceeding a certain amount. Percentage Lease

The number of years of useful life left to a building from the date of appraisal. Economic Life

The current construction cost of a building having exactly the same utility as the subject property. Replacement Cost

The current construction cost of an exact duplicate of the subject building. Cost Reproduction New

Ownership interest of a sublease. Sandwich Lease

A method of valuing land to be used for subdivision development. It relies on accurate forecasting of market demand including both forecast
absorption and projected gross sales
subdivision development method land development method
The rate at which properties will sell. Forecast Absorption

Total income that the project will produce. Projected Gross Sales

The basic appraisal premise that the market value of real estate is influenced by the cost of acquiring a suitable or comparable property.
Principle of Substitution

A principle that the value of a commodity will rise as demand increases and/or supply decreases. Principle of supply and demand

An improvement that is less than a property's highest and best use. Under improvement

The value of goods and services in exchange for other other goods and services or money in the marketplace an economic concept of market
value
Value in Exchange
The average selling price of homes in a district can be best ascertained by:
A) assessed value
B) an appraisal
C) comparative analysis
D) none of the above

Your client asked you to make a simple appraisal of his lot in Baguio. Based on the technical description and inspection of the property you
found out the following: Land area: 3200 sqm Unobstructed view (plus): 15% Plottage value (plus): 6% Topography.
The price of any commodity in its market at a specified time is called:
A) actual price
B) market price
C) Nobel price
D) par value
E) none of the above

is a kind of listing that can be given to more than 1 brokers. Open Listing
Open listing is a kind of listing that can be given to more than 1 brokers.
A _ is an agreement between an owner and a broker to sell a real estate property. Listing

A real estate broker receives a _ while a real estate dealer earns profit from his investments. Commission

A real estate broker receives a commission while a real estate dealer earns _ from his investments. Profit

Option is a contract between a _ and a buyer. Seller

Option is a contract between a seller and a _ .Buyer

The _ is a provision in the listing agreement which entitles a broker to a commission even when he closes the sale after the period of authority
provided that the buyer with whom he has negotiated was registered by him with the seller and during the. Hold Over Clause

In authority given by a developer to a broker to find a supplier for cement and aggregates materials wherein payment shall be in the form of
units or developed
the contract is _ .

_ is an agreement by which the listing broker is entitled to his broker's fee even if the principal/seller sold the property himself.
Exclusive Right to Sell / Exclusive Authority to Sell

A lot owner and developer may convert a property into a_ by executing a legal document called Master Deed and registering the same with
the Registry of Deeds. Condominium Project

A lot owner and developer may convert a property into a condominium project by executing a legal document called _ and registering the
same with the Registry of Deeds. Master Deed

A lot owner and developer may convert a property into a condominium project by executing a legal document called Master Deed and
registering the same with the _ . Registry of Deeds

Unless the condominium corporation is earlier dissolved. the life a condominium corporation is _ .

The document which provides guidelines rules and regulations regarding the rights of condominium unit owners in the use occupation
ownership and disposition of units is called _ Declaration of Restrictions

The required number of votes of registered owners to authorize a condominium corporation to sell or otherwise dispose of the common areas
in a condominium project is _. Simple Majority

Amendment to the Master Deed of a condominium project must be approved by the majority of registered unit owners. Majority is based on:
A) number of condominium units
B) floor area of ownership
C) total area of condominium units
D) any of the above

A petition may be filed by one or more-unit owners of condominium project when damage has rendered _ of the units untenantable and unit
owners holding more than 30% interest in the common areas are opposed to repair or restoration of the project. One-half or More

A petition may be filed by one or more-unit owners of condominium project when damage has rendered one-half or more of the units
untenantable and unit owners holding _ interest in the common areas are opposed to repair or restoration of the project. More than 30%

When the interest of participation of condominium unit owners in the common area is proportionate the formula applied is:
A) unit area divided by the total area of the common area
B) unit area divided by the total area of all condominium units
C) un

In the absence of any provision in the Master Deed of a condominium project the share of the unit owners in the common area is:
A) proportionate to his unit area
B) based on the value of his unit
C) equal to all other unit owners
D) decided by the

In mixed use condominium projects, the Master Deed may be amended by a simple majority of the unit owners. Majority is based on:
A) number of condominium units
B) floor area of ownership
C) total area of condominium units
D) any of the above

Amendment to the Master Deed of a condominium project approved by the majority of registered owners need also be approved by the _ and
HLURB. City/Municipal Engineer

Amendment to the Master Deed of a condominium project approved by the majority of registered owners need also be approved by the
city/municipal engineer and _ . HLURB

Traditional ownership is evidenced by Torren’s title TCT or OCT

For a space to be considered a condominium unit it must:

A) be encompassed by the interior surface of the wall floor ceiling
B) be managed by a condominium corporation
C) be susceptible of independent use and ownership
D) be unencumbered by any r

Per BIR 28-98 the ground floor of a condominium project shall be considered as_ and an additional rate of 20% shall be added to an
established residential zonal value. Commercial

Per BIR 28-98 the ground floor of a condominium project shall be considered as commercial and an additional rate of_ shall be added to an
established residential zonal value. 20%

All real properties regardless of actual use located in a street/barangay/zone the use of which are predominantly commercial shall be
considered as _ for purposes of zonal valuation. Commercial

A_ is sometimes referred to as vertical subdivision Condominium

A condominium is sometimes referred to as_. Vertical Subdivision

Which of the following cannot be given Condominium Certificate of Title?

A) subdivision lots
B) industrial warehouse
C) condominium corporation
D) one level rowhouse
E) none of the above

RA 4726 Condominium Act June 18 1966

Condominium Act June 18 1966 RA 4726

Condominium developers are mandated to form a:

A) cooperative
B) charitable organization
C) condominium corporation
D) one level rowhouse
E) none of the above

Enumerated are the advantages of condominium concept which does not belong:
A) cooperative
B) with CCT as proof of ownership
C) enhances affordability
D) economy in land space
E) social club

Condominium title is also called

CCT Condominium Certificate of Title
For the purpose of _ a condominium unit owner has non-exclusive easement to the common area.
Ingress and Egress

For the purpose of ingress and egress a condominium unit owner has _ to the common area.
Non-Exclusive Easement

For the purpose of ingress and egress

a condominium unit owner has non-exclusive easement to the_ .

_ of the units of a condominium project may be sold to foreigners. 40%

40% of the units of a condominium project may be sold to_ . Foreigners

The organization of a_ is always mandatory in a condominium project. Condominium Corporation

The organization of a condominium corporation is always mandatory in a_ . Condominium Project

A_ is a part of a condominium project intended for any type of independent use or ownership. Unit

A unit is a part of a condominium project intended for any type of_ . Independent use or ownership

Whenever the_ in a condominium project are held by a condominium corporation such corporation shall constitute the management body of
the project. Common Areas

Whenever the common areas in a condominium project are held by a condominium corporation such corporation shall constitute the_ of the
project. Management Body

Statements defining the limitation of ownership of a condominium unit which binds all unit owners are called the_ and are registered with the
Registry of Deeds. Declaration of Restrictions

Statements defining the limitation of ownership of a condominium unit which binds all unit owners are called the Declaration of Restrictions
and are registered with the_ . Registry of Deeds

A right given for a consideration to purchase or lease a property upon a specified time. Option

A notice of adverse claim annotated on the title can be cancelled after the expiration of _ after its annotation by a verified petition with the
Registry of Deeds. 30 days

A court action to remove clouds on the title. Quieting of Title

The best evidence of land/property ownership under the Philippine system of registration. Torrens Title

A condensed history of title showing the various links in the chain of title including liens encumbrances and other conditions affecting the title.
Abstract of Title

An annotation on the title which serves as a notice that the property is being held in reserve for whatever judgement may be rendered against
the owners. Attachment

When the owner's duplicate certificate of title is lost the registered owner shall file a _ to be issued a new owner's copy. Petition for the
Issuance of Owner's Duplicate Certificate of Title

The legal form to be made by the landowner in order to transfer the titles of the land and common areas in favor of the Condominium
Corporation. Deed of Conveyance

_ is an annotation on the back of a title that means that the property owned by the deceased is subject to the rights of _ or _ or any persons
who have been unduly deprived of their lawful participation in the estate with a period of _ after the settlement. Rule 74 of the Rules of Court
creditors heirs two (2) years

Under RA 6732 the _ of lost or destroyed original certificates of titles in the Registry of Deeds may be availed when the number of certificates
lost or destroyed is _ of all titles in the Registry but _ titles. Administrative Reconstitution at least 10% not less than 500

The best evidence of fee simple is a _ because it is indefeasible and imprescriptible. Torrens Title

The best evidence of fee simple is a Torrens Title because it is_ and imprescriptible. Indefeasible

The best evidence of fee simple is a Torrens Title because it is indefeasible and_ . Imprescriptible

An adverse claim lapses after _ from annotation in the certificate of land title. A second claim is _. 30 days not allowed
A claim of a person on a property of another. Adverse Claim

A hold or claim which one person has upon a property of another as security for a debt charge judgement or mortgages. Lien

An annotation in the title that serves as notice that the property is subject to a pending litigation. Lis Pendens

A lien created by law which exists in favor of persons who have performed or furnished materials in the erection or repair of a building.
Mechanic's Lien

Anything which affects or limits the fee simple title to property such as mortgages easements or restrictions of any kind. Encumbrance

Refers to money encumbrances that make the property security for the payment of a debt or obligations such as mortgages and taxes. Lien

title defect. Cloud on Title

cloud on title. Title Defect

Any condition revealed by a title search which affect title to property usually relatively unimportant items but which cannot be removed
without a quit claim deed or court action. Cloud on title title defect

Largest estate of ownership in real property in which the owner holds all rights not reserved by society. Fee Simple Absolute Ownership

Fee Simple. Absolute Ownership

Absolute Ownership. Fee Simple

A writ that authorizes and directs the proper officer of the court usually the sheriff to carry into effect a judgement or decree of the court. Writ
of Execution

The following liens can be found at the back of a title except:

a) Real estate tax liens
b) Judgement liens
c) Mechanic's liens
d) Mortgage liens
e) Statutory liens

Registration of a real estate instrument can be given due course without the presentation of the owner's duplicate certificate of title when the
document is:
a) Notice of adverse claim
b) Notice of Lis pendens
c) Writ of attachment
d) All of the above