2015 REA PRACTICE TEST
REAL ESTATE APPRAISERS ’ LICENSURE EXAMINATIONS
INSTRUCTION: SHADE THE LETTER OF YOUR ANSWER CORRESPONDING TO THE BOX ON THEANSWER SHEET PROVIDED. NO ERASURES ARE ALLOWED AS IT WILL INVALIDATE THE RESULT OFYOUR EXAMINATION. GOOD LUCK TO ALL.
MULTIPLE CHOICE
1.What grass should be planted in the Philippines to control landslides, land degradation, and soil
mass movement?
a.Fog grass c. Cogon Grass
b.b. Bamboo Tree d. Blue Grass
2.The sitio where the fictitious La Presa Community of the Teleserye, <Forevermore= was placed under Environmental Protection of the Courts.
a.Musuan d. Tomas
b.Pungayan e. Giburot
c.Dologon
3.What is necessary to be done after an oral report has been conveyed to the requesting party?
a.Talk to the client again for another engagement.
b.Support a work file and at a minimum supported by a written summary on the valuation
c.Request the client to accept a narrative report.
d.Mail a template to be filled-up by the client
4.Who conceptualized the concept of Computer-Assisted Mass Appraisal?
a.John Q. Ebert c. Robert Ludlum
b.Thomas Englebert d. EngelbertHumperdinck
5.The real property can be converted to personal property through—
a.Accession c. Conversion
b.Severance d. Condemnation
6.Financing extended to a person, company, or other entity, using existing assets as collateral in
order to acquire new assets.
a.In-house financing c. Sub-financing
b.Bridge Financing d. Discounting
7.Effect of real estate industry on the other economic activities or other industries.
a.Domino Effect c. Multiplier effect
b.Positive effect d. Progressive effect
8.A valuation technique 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 c. Sales Comparison Approach
b.Income Approach d. Land Residual Technique
9.These are conditions and assumptions under which appraisal is made.
a.Limiting Conditions c. Waiver
b.Explanation d. Assumptions
10.Also known as the Comparative Approach, an appraisal procedure in which the market value
estimate is predicated upon prices paid in actual market transactions and current listings.
a.Cost Approach c. Residual Technique
b.Income Approach d. Market Data Approach
11.The process of valuing a group of properties as of a given date using standard methodology,
employing common data, and allowing for statistical testing.
a.Mass Appraisal c. Income Approach
b.Model Calibration d. Cost ApproachPART 2 – PROFESSIONAL APPRAISAL PRACTICE (50%) 12.Advantages of mass appraisal, except:
a.Can address uniformity and equity in assessments;
b.Consistency in assessment;
c.Equitable and efficient appraisal of real property for ad valorem tax purposes.
d.It is an accurate appraisal of identified properties
13.A mansion being built in a squatters area is an example of a.normal d. progression
b.Abnormal e. conformity
c.regression
14.In studying a tract of land to estimate its value, what is the appraiser’s first necessary
consideration?
a.Capitalization of estimated net incomec. Comparison with sale of other properties
b.Highest and best use d. Reproduction cost less depreciation
15.The principle of value which states that yield or productivity reaches a certain limit despite
more inputs -
a.Principle of progression d. Principle of highest and best use
b.Principle of increasing and diminishing returnse. Principle of conformity
c.Principle of diminishing returns
16.The increase in value of real estate without any effort or expense of the owner is:
a.Accretion c. Accession
b.Unearned increment d. Adhesion
17.The building in Manila that is the subject of a Demolition because it destructs the view of the
monument of Dr. Jose Rizal
a.Torre de Manila c. Payanig Building
b.Kentex Manufacturing Corporation d. Resorts World
18.A parcel of land was sold at P5,000,000.00 but the BIR Zonal Value was P 4,800,000.00 while the
local assessor’s fair market value is P 2,500,000.00 and it was appraised at p 5,500,000.00.
What will be the basis of capital gains tax if sold
a.Selling Price c. Assessor’s value
b.Zonal Value d. Appraised fair market value
19.In an auction sale of a foreclosed lot, Mr. Ben won and the property was not redeemed. The
documentary stamp tax must be paid within
a.Five (5) days after auction sale
b.Five (5) days after the month of auction sale
c.Five (5) days after the month of expiration of redemption period
d.Five (5) days after registration of auction sale
20.The following are modes of acquiring lands for the purposes of the Urban Development and
Housing Act of 1992, except:
a.Joint venture d. Negotiated purchases
b.Community mortgage e. Accretion
c.Expropriation
21.A friend of yours borrowed P125,000. It will earn a yearly compounded interest of 8%. How
much is the amount of the money after 10 years?
a.P6,750,000.23 d. P6,750,000.65
b.P1,350,000.24 e. none of these
c.P269,865.62
22.You want to build a building in August 2020 worth P20 Million. You decided to invest your money through real estate financing, earning a compounded interest of 9% per annum. How
much should you invest today?
a.P10,900,000.23 d. P30,772,479.098
b.P109,000,000.34 e. none of these
c.P12,998,627.72
23.The area of the lot is 540 square meters. If the width is 40 meters, what is the length?
a.13 d. 13.5
b.13.4 e. 13.49
c.14
REAL ESTATE APPRAISERS ’ LICENSURE EXAMINATIONS
INSTRUCTION: SHADE THE LETTER OF YOUR ANSWER CORRESPONDING TO THE BOX ON THEANSWER SHEET PROVIDED. NO ERASURES ARE ALLOWED AS IT WILL INVALIDATE THE RESULT OFYOUR EXAMINATION. GOOD LUCK TO ALL.
MULTIPLE CHOICE
1.What grass should be planted in the Philippines to control landslides, land degradation, and soil
mass movement?
a.Fog grass c. Cogon Grass
b.b. Bamboo Tree d. Blue Grass
2.The sitio where the fictitious La Presa Community of the Teleserye, <Forevermore= was placed under Environmental Protection of the Courts.
a.Musuan d. Tomas
b.Pungayan e. Giburot
c.Dologon
3.What is necessary to be done after an oral report has been conveyed to the requesting party?
a.Talk to the client again for another engagement.
b.Support a work file and at a minimum supported by a written summary on the valuation
c.Request the client to accept a narrative report.
d.Mail a template to be filled-up by the client
4.Who conceptualized the concept of Computer-Assisted Mass Appraisal?
a.John Q. Ebert c. Robert Ludlum
b.Thomas Englebert d. EngelbertHumperdinck
5.The real property can be converted to personal property through—
a.Accession c. Conversion
b.Severance d. Condemnation
6.Financing extended to a person, company, or other entity, using existing assets as collateral in
order to acquire new assets.
a.In-house financing c. Sub-financing
b.Bridge Financing d. Discounting
7.Effect of real estate industry on the other economic activities or other industries.
a.Domino Effect c. Multiplier effect
b.Positive effect d. Progressive effect
8.A valuation technique 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 c. Sales Comparison Approach
b.Income Approach d. Land Residual Technique
9.These are conditions and assumptions under which appraisal is made.
a.Limiting Conditions c. Waiver
b.Explanation d. Assumptions
10.Also known as the Comparative Approach, an appraisal procedure in which the market value
estimate is predicated upon prices paid in actual market transactions and current listings.
a.Cost Approach c. Residual Technique
b.Income Approach d. Market Data Approach
11.The process of valuing a group of properties as of a given date using standard methodology,
employing common data, and allowing for statistical testing.
a.Mass Appraisal c. Income Approach
b.Model Calibration d. Cost ApproachPART 2 – PROFESSIONAL APPRAISAL PRACTICE (50%) 12.Advantages of mass appraisal, except:
a.Can address uniformity and equity in assessments;
b.Consistency in assessment;
c.Equitable and efficient appraisal of real property for ad valorem tax purposes.
d.It is an accurate appraisal of identified properties
13.A mansion being built in a squatters area is an example of a.normal d. progression
b.Abnormal e. conformity
c.regression
14.In studying a tract of land to estimate its value, what is the appraiser’s first necessary
consideration?
a.Capitalization of estimated net incomec. Comparison with sale of other properties
b.Highest and best use d. Reproduction cost less depreciation
15.The principle of value which states that yield or productivity reaches a certain limit despite
more inputs -
a.Principle of progression d. Principle of highest and best use
b.Principle of increasing and diminishing returnse. Principle of conformity
c.Principle of diminishing returns
16.The increase in value of real estate without any effort or expense of the owner is:
a.Accretion c. Accession
b.Unearned increment d. Adhesion
17.The building in Manila that is the subject of a Demolition because it destructs the view of the
monument of Dr. Jose Rizal
a.Torre de Manila c. Payanig Building
b.Kentex Manufacturing Corporation d. Resorts World
18.A parcel of land was sold at P5,000,000.00 but the BIR Zonal Value was P 4,800,000.00 while the
local assessor’s fair market value is P 2,500,000.00 and it was appraised at p 5,500,000.00.
What will be the basis of capital gains tax if sold
a.Selling Price c. Assessor’s value
b.Zonal Value d. Appraised fair market value
19.In an auction sale of a foreclosed lot, Mr. Ben won and the property was not redeemed. The
documentary stamp tax must be paid within
a.Five (5) days after auction sale
b.Five (5) days after the month of auction sale
c.Five (5) days after the month of expiration of redemption period
d.Five (5) days after registration of auction sale
20.The following are modes of acquiring lands for the purposes of the Urban Development and
Housing Act of 1992, except:
a.Joint venture d. Negotiated purchases
b.Community mortgage e. Accretion
c.Expropriation
21.A friend of yours borrowed P125,000. It will earn a yearly compounded interest of 8%. How
much is the amount of the money after 10 years?
a.P6,750,000.23 d. P6,750,000.65
b.P1,350,000.24 e. none of these
c.P269,865.62
22.You want to build a building in August 2020 worth P20 Million. You decided to invest your money through real estate financing, earning a compounded interest of 9% per annum. How
much should you invest today?
a.P10,900,000.23 d. P30,772,479.098
b.P109,000,000.34 e. none of these
c.P12,998,627.72
23.The area of the lot is 540 square meters. If the width is 40 meters, what is the length?
a.13 d. 13.5
b.13.4 e. 13.49
c.14
