1. The property of a person who dies leaving no heirs passes to the state by the right of: a. Acquisition Escheat . Condemnation d. Eminent Domain 2. Condemnation of private property for public use is called the right of: a, Seizure b. Escheat _ZAkminent Domain d, Acquisition 3. Anything that is not real property is a. Real estate b. A fixture ‘An appurtenance fersonal property 4, An appraisal may include a(n) 2. Property description b. Opinion of property condition Estimate of market value SAA of the above 5. Real property includes: a. Land b. Fixtures and appurtenances to land c. Anything immovable by law, with certain exceptions Ua of the above 6. The form of deed used to return title to real estate to its owner when the debt secured by a deed of trust is paid in full is the: a. Warranty deed Reconveyance deed c. Quitclaim deed d. Tax deed 7. The form of deed that makes no warranties, express or implied, is the a. Grant deed b. Reconveyance deed uitclaim deedg. Value of janitor’s apartment (rent free) r. Water and sewer tax s. Salaries and wages of employees t. Reserves for replacement A Payments on stoves and refrigerators 59.Ifa eee net income ratio is .85, what is its operating expense ratio? 15 b.1.50 58 015 60. Another name for contract rent is a, Market rent scheduled rent . Economic rent d. Surplus rent 61. Another name for market rent is a. Contract rent b. Scheduled rent _scéonomic rent dd, Surplus rent 62. A commercial property producing an annual gross income of P380,000 was sold 2 ‘months ago for P 3,412,500. What is the property's gross income multiplier (GIM)? a7 b.7.75 685 ABTS 62. A single-family residence that sold recently for P 2,850,000 can be rented for P 14,000 per month. . The property's gross rent multiplier is 2.17 Arhoa ©. 207 4.210 63. Vacancy and collection losses are deducted from gross income using a(n) poi gross income multiplier Effective gross income multiplier ©. Gross income multiplier d. Gross rent multiplier64. in the formula for the operating expense ratio perating expenses are divided by effective gross income b. Effective gross income is divided by operating expenses «, Potential gross income is divided by effective gross income d. Effective gross income is divided by potential gross income 65. In the formula for the net income ratio 2. Effective gross income is divided by potential gross income b, Potential gross income is divided by effective gross income . Effective gross income is divided by net operating income let operating income is divided by effective gross income 66. Construct an interest rate for a recently sold commercial property with the following known facts: Selling price: P 4,350,000 Site Value: 1,250,000 Building estimated remaining economic life: 25 years Total net operating income: P 570,000 What is the overall cap rate for the property? Sales price P 4,350,000 Site Value = 1,250,000 Building Value P 3,100,000 Recapture rate = 100%/ 25 years sacle ag NOI available for building recapture P 124,000 Interest rate (building) = P 124,000/P4,350,000 0285 = 2.85% Total NOI P 570,000 NOI for building recapture 124,000 NOI available for site P 446,000 Interest rate = P 446,000/435,000= .1025 or 10.25% Overall cap.rate = 10.25% + 2.85 = 13.10% 67. Assuming the following data, what capitalization rate would you use in appraising the subject property? ‘30-year old mortgage covering 75% of property value can be obtained froma Bank at 8 % %. The mortgage constant is .092. Equity for this type of property requires a 12% return Loan (.75 x.092) =.069 Equity (.25 x.12) 030 Overall rate 099 or 9.9% 68. The property under appraisal is a 25 year old apartment building producing an NO! of P 500,000 a year. Compute the value of the property, assuming a remaining economic