DAY 11 FUNDAMENTALS of REAL ESTATE APPRAISAL

1. Generally referred to as a surveyor, a function of which to undertake land surveys to

determine their metes and bounds and prepare the plans thereof for titling and for other
purposes
A. Survey engineer
B. Land survey engineer
C. Geodetic engineer
D. Land surveyor

2. In order to mark the lot plan boundaries on the parcel of land, the following is used as the
marker
A. Concrete lot marker
B. Concrete monument
C. Land monument
D. Cylindrical concrete monument

3. Market data approach in appraisal is also called

A. Market survey approach
B. Cost approach
C. Sales comparison approach
D. Survey approach

4. The cost to create a virtual replica of an existing building using the same design and similar
building materials is referred to as:
A. Reproduction cost
B. Estimated similar cost
C. Rebuilt cost
D. Replacement cost

5. These involve the classification of the country's unclassified public forests into alienable or
disposable lands, as well as the evaluation of existing land classification projects and the
verification of land classification status.
A. Geodetic survey
B. Public domain land survey
C. Land classification survey
D. Tax mapping

6. The shape and details of a lot may be more accurately plotted using the description found in
the
A. Transfer certificate of title

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B. Deed of absolute sale
C. Tax declaration
D. Subdivision map

7. In a title, the letters “Psu” appears which would mean

A. Private subdivision
B. Private land survey
C. Private survey
D. Public survey

8. It is considered an imaginary line used by the geodetic engineer in plotting and locating a
specific property
A. Tie line
B. Reference line
C. Straight line
D. Geodetic reference line

9. A map which provides the general location of a real property including the surrounding
landmarks and reference points is referred to as
A. Subdivision lot plan
B. Lot plan
C. Vicinity map
D. Road map

10. The person who is a licensed professional who undertakes resurvey, survey and
determination of boundaries of a lot is called
A. Draftsman
B. Geodetic engineer
C. Surveyor
D. Land plotting professional

11. It is the angle less than 90 degrees measured from N or S (meridian) and referred to in
plotting a lot as
A. Degrees
B. Compass degrees
C. Bearing
D. Tie line

12. The gross income multiplier may also be used to determine the value of the property and
may be computed by dividing the selling price of a comparable property by the
A. Annual gross income

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B. Income after taxes
C. Net income
D. Monthly income

13. It is considered an approach to value in real estate appraisal

A. Net Returns approach
B. Comparable data approach
C. Market data approach
D. Market survey approach

14. In an area in the city, a building valued at P25,000,000.00 was built right beside an old
dilapidated establishment which tends to increase the value of such establishment and is a
principle called
A. Depression
B. Value influence
C. Progression
D. Regression

15. This is considered a factor that influence or create value to real estate
A. Highest and best use
B. Substitution
C. Competition
D. Social ideal and standards

16. A real property's value depreciates in view of the decline in the utility of feature of the
property may be referred to as
A. Principle of utility
B. Use depreciation
C. Functional obsolescence
D. Functional depreciation

17. As per RESA, the following is qualified to be a real estate appraiser

A. Graduate of BS REM bachelor’s degree
B. Graduate of Bachelor of Science in Appraisal
C. Graduate of relevant bachelor's degree
D. At least 2 years of college

18. It refers an estimate of value as of a particular point in time expressed in peso amount
A. Assessment
B. Value estimate
C. Fair market value

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D. Appraisal

19. The following appraisal report is no longer allowed under the Real Estate Service Act of the
Philippines
A. Oral report
B. Written letter report
C. Narrative report
D. Form report

20. The subdivision plan of a parcel of land which has been subdivided into several lots will have
to be approved by this government agency
A. Bureau of Lands
B. Local government
C. Registry of deeds
D. Department of Lands

21. A city assessor, under the RESA, after taking the licensure examination and passing the
same will be given a license as
A. Licensed real estate appraiser
B. Licensed public assessor
C. Licensed real estate assessor
D. Licensed government assessor

22. It is not a purpose of appraisal

A. Property disputes
B. Capital gains tax
C. Purchase
D. Insurance

23. A purpose of appraisal where it is used to determine the fair market values of properties for
distribution to heirs
A. Mortgage financing
B. Estate settlement
C. Partitioning of Estate
D. Property disputes

24. A principle of appraisal is that supply is influenced by

A. Price
B. Effective purchasing power
C. Demand
D. Scarcity

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25. An observation in the principles of appraisal is that the desire for property to be effective
must be backed by
A. Purchasing power
B. Immediate need
C. Effective demand
D. Sufficient supply

26. It is not a value factor in the appraisal of a parcel of land

A. Sun orientation
B. Shape
C. Sun orientation
D. Frontage

27. It reflects the loss in value brought about by the wear and tear and the action of natural
elements
A. Deterioration
B. Natural obsolescence
C. Economic obsolescence
D. Functional obsolescence

28. The following are required to post a bond before engaging in practice
A. Real estate assessor
B. Real estate consultant
C. Public real estate appraiser
D. Private real estate appraiser

29. Another term used to refer to a private real estate appraiser and is used in the RESA is
A. Valuer
B. Assessor
C. Estimator
D. Practitioner

30. The value of replaceable property tends to be indicated by the value of an equally desirable
substitute property is called the principle of
A. Desire
B. Competition
C. Substitution
D. Replacement

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31. A common point of reference is seen in the technical description as BLBM which means
A. Bureau of Lands Barrio Monument
B. Barrio Location Boundary Monument
C. Bureau of Lands Boundary Monument
D. Bureau Location and Barrio Monument

32. Surveys whose principal purpose is the determination of data relating to bodies of water are
referred to as
A. Hydrographic survey
B. Aquagraphic survey
C. Marine survey
D. Aquatic survey

33. In case several lots were acquired to be developed into a subdivision, the survey would be a
private consolidation subdivision survey indicated by the letters
A. Pcs
B. Pcss
C. Psu
D. Pcp

34. Under the RESA, a private real estate appraiser must pay the following bond to engage in
practice
A. P 5,000
B. P 10,000
C. P 20,000
D. P 25,000

35. When one talks about the use which the time of appraisal is most likely to produce the
greatest net return, it refers to
A. Optimum use
B. Most effective use
C. Highest and Rest use
D. Highest rate of return

36. 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
A. Increasing and decreasing returns
B. Optimum increasing returns
C. Diminishing returns
D. Excess point

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37. A principle that is comprised of reasonable degree of social and economic homogeneity
A. Economic value
B. Conformity
C. Adherence
D. Highest and best use

38. A lot buyer wanted to have the 6 parcels of land he just bought all adjacent to each other
into one title. He will have this survey undertaken
A. Private survey
B. Private consolidation survey
C. Private assembly survey
D. Public consolidation survey

39. In order for an assistant city assessor to be promoted to the higher position of chief
assessor it is required that he/she
A. Be a licensed real estate assessor
B. Be a licensed real estate consultant
C. Must live 10 years experience as real estate assessor
D. Be a licensed real estate appraiser

40. In order for Mr. Eneer to plot the shape and details of the lot he just bought from the
transfer certificate of title, he must have at least the following data
A. Bearings and tie line
B. Tie line measurement
C. Bearings and lot points
D. Bearings and distance from lot points

41. It is the relationship between a thing desired and a potential purchaser

A. Price
B. Cost
C. Value
D. Counter offer

42. The real estate appraiser refers to the private real estate appraiser and
A. Individual real estate appraiser
B. Staff of the assessor’s department
C. Real estate assessor
D. Public real estate appraiser

43. To determine the shape and dimensions of the lot being purchased, the buyer must be able
to obtain a copy of this plan

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A. Vicinity plan
B. Lot plan
C. Subdivision plan
D. Survey plan

44. It is the counting the number of steps in a required distance to determine the distance
A. Pacing
B. Step measurement
C. Step counting
D. Estimated foot distance

45. It generally requires an estimate of the actual or stabilized gross income less provisions for
vacancy and bad debts, operating expenses such as building insurance, real estate taxes, repairs
and maintenance, and administrative charges
A. Investment income approach
B. Income expenses approach
C. Replacement cost approach
D. Income approach

46. A 7 door apartment was sold for P6,600,000 in the are which had an annual gross income of
P600,000, what is the gross income multiplier
A. 13
B. 12
C. 11
D. 10

47. It is an approach which utilizes the concept of determining replacement cost and adjusting
for depreciation of a house and lot
A. Cost approach
B. Replacement approach
C. Substitution approach
D. Income approach

48. The principle that value is the worth of all present and future benefits arising from
ownership and use of real property
A. Principle of income return
B. Principle of anticipation
C. Principle of value
D. Principle of highest returns

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49. A beautiful two story house was located in the city, but thereafter a shanty was put up
beside the property and its value will be negatively affected and which is the principle of
A. Regression
B. Value depreciation
C. Deterioration
D. Progression

50. A map that identities flood-prone and landslide-prone areas in the country and shows which
areas have high chances of soil erosion and which areas are low-lying and flood-prone areas is
referred to as a
A. Geohazard map
B. Soil hazard map
C. Hazard map
D. Philvocs ecomap

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 Day 11 Multiple Choice Answers

1. C - RA 8560 (Philippine Geodetic Engineering Act of 1998) on Article 2, Section 2

2. D - A mohon, in layman's terms, is a cylindrical concrete monument that is used as the standard
marker to delineate a property boundary. These markers are also used as reference points for
subsequent surveying projects
3. C - The market data approach, also known as the sales comparison approach, involves comparing a
property to other recently sold properties in the same area of similar size and condition.
4. D
5. C - Term as defined by NAMRIA (National Mapping and Resource Information Authority)
6. A
7. C
8. A
9. C
10. B - RA 8560 (Philippine Geodetic Engineering Act of 1998) on Article 2, Section 2
11. C
12. A
13. C - The three widely used and generally accepted valuation approaches are as follows: Sales
Comparison (Market Data) Approach; Cost Approach; and Income Approach
14. C - Principle of progression is a principle of real estate and the appraisal industry that states that the
value of a lower-end property can be increased or positively affected by other higher-end property in
the same neighborhood or locality.
15. D - There are four forces that influence real property values: Social Forces, Economic Forces,
Physical and Environmental & Governmental Forces
16. C
17. A
18. D
19. A
20. A
21. A
22. B
23. C
24. C
25. A
26. A
27. A
28. D
29. A
30. C
31. A

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32. A
33. D
34. C
35. D
36. A
37. B
38. B
39. D
40. D
41. C
42. D
43. B
44. A
45. D
46. C
47. A
48. B
49. A
50. A

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