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REGISTERED VALUER EXAMINATION

LAND & BUILDING

MULTIPLE CHOICE QUESTIONS (30 MARKS)

VALUATION OF REAL ESTATE
LAWS REAL ESTATE
INCOME APPROACH
MARKET APPROACH

R JAYARAMAN
TIRUCHIRAPALLI
jaya_r54@yahoo.com

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 IMPORTANT

The Questions & Answers given in the book are mainly for the purpose of guidance
who are willing to appear for IBBI registered valuer Examination.

Depending upon the actual situation, one must be able to take suitable judicious
approach. This MCQ book is intended for preparation for the examination,
depending upon the situation and the probable option given, by which, the
participants must be able to take a suitable solution judiciously.

While every effort is taken to avoid errors or omissions in this publication, any
mistake or omission that might have crept in, is not intentional.

It may be taken note that either the publisher or the author will not be responsible
for any damage or loss of any kind arising to any one in any manner of account of
such errors and omissions

Feedback may be given if there are any mistakes.

R JAYARAMAN
9842422150

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 TOPICS

CONTENTS

NAME PAGE QUESTIONS

I. VALUATION OF REAL ESTATE 03 TO 29 1 TO 111

II. INCOME APPROACH 30 TO 43 112 TO 214

III. MARKET APPROACH 44 TO 63 215 TO 310

IV. LAWS REAL ESTATE 64 TO 108 311 TO 509

V. RECENT IBBI QUESTIONS 109 TO 313 510 TO ----

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 I. VALUATION OF REAL ESTATE

1. BASIC ELEMENTS OF VALUE

1. The four essential elements of value are

1. Location, amenities, facilities, services
2. Size, area, shape, access
3. Marketability, Utility, Scarcity/ demand and Transferability (MUST)
4. Engineering & architectural aspect, design, occupation

2. No one would like to buy a property if it has no

1. Utility
2. Drawing approval
3. Legal opinion
4. Tax assessment

3. The property has value only if it can be

1. Transferable
2. Non – transferable
3. Non - marketable
4. Temple property

4. A temple property is
1. Non - transferable
2. Marketable
3. Transferable
4. Non – marketable

5. A temple property is not marketable, yet it has got value. Instead of market
value, we may call it as
1. Notional value
2. Special value
3. Religion value
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4. Fair value

6. A temple property can be valued by assuming

1. Hypothetical sale (not actual sale)
2. Comparable sale
3. Guideline rate
4. Prevailing market trend

7. If any commodity is available in abundance, it will

1. Lose its original value
2. Increase its value
3. Have no market at all
4. Not be sold at all

8. If there is no demand for a product or no paying capacity to buy a product,

1. It gains more value
2. It loses value
3. The value is stable
4. It cannot be sold

9. The property has a value only if it can

1. Be transferable
2. Have drawing approval
3. Have a title deed
4. Have proper approach

10. In order to possess value, an asset ought to have

1. Title deed
2. Utility
3. Tax assessment
4. Rent yielding

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11. The properties which are available in limited quantity and are not in
abundance command
1. Low value
2. High value
3. No value
4. Stable value

12. The ownership and possession of the property can be transferred by way
of sale, lease, mortgage, will, etc. and hence it has a value. This is called
1. Transferability
2. Scarcity
3. Marketability
4. Utility

2. PHYSICAL LEGAL SOCIAL AND ECONOMIC FACTORS

13. The factors such as local population, employment opportunities, changes

in services, trade and commerce, per capital income at district / state level,
paying capacity of local residents, rend of city growth are
1. Micro economic factors
2. Macro-economic factors
3. Physical factors
4. Social factors

14. Domestic savings, fixed capital formation in construction and real estate
sector, flow of capital investments in bank, fixed deposits, shares,
debentures, government securities are
1. Macro-economic factors
2. Micro economic factors
3. Physical factors
4. Social factors
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15. Demand and supply of properties and income fetching properties are
called as
1. Economic factors
2. Legal factors
3. Physical factors
4. Social factors

16. State and Central governments, policies of land development, economic

& Taxation Policies of government, money market situation, and recession
period in real estate are
1. Economic factors
2. Legal factors
3. Physical factors
4. Social factors

17. Inflation or deflation in nation’s economy, availability of money on credit

from bank, burden of property tax, employment opportunity are
1. Economic factors
2. Legal factors
3. Physical factors
4. Social factors

18. Land characteristics -size, shape, plot area, frontage, orientations, soil
type, and Topography are
1. Legal factors
2. Physical (Technical) factors
3. Economic factors
4. Social factors
19. Infrastructure facility - roads, water supply, drainage, power supply,
telecommunication links are

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1. Legal factors
2. Physical (Technical) factors
3. Economic factors
4. Social factors

20. Prominence / placement - main road, by - lane, dead end road, and remote
area location are
1. Legal factors
2. Physical (Technical) factors
3. Economic factors
4. Social factors

21. Building characteristics - RCC framed structure, further life, age of

structure, deterioration, specification of building, workmanship quality,
intelligent building & green building concepts, obsolescence, and
maintenance are
1. Legal factors
2. Physical (Technical) factors
3. Economic factors
4. Social factors

22. Functional aspects - optimum use of inner space with minimum wastage,
amenities - swimming pool, garden, lift, security system, intercom facility,
health club, children’s play area are
1. Legal factors
2. Physical (Technical) factors
3. Economic factors
4. Social factors

23. Environmental aspects like noise, smoke pollution level, sea front,
nuisance due to railway track, industries, airport, and climatic conditions are

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1. Legal factors
2. Physical (Technical) factors
3. Economic factors
4. Social factors

24. Natural calamity like earth quake prone areas, flooding and cyclone
hazards, Tsunami prone area are
1. Legal factors
2. Physical (Technical) factors
3. Economic factors
4. Social factors

25. Soil condition - Rocky soil, hard soil, black cotton soil, reclaimed soil,
filled up ground are
1. Legal factors
2. Physical (Technical) factors
3. Economic factors
4. Social factors

26. Rent control act, urban land ceiling act, Coastal regulations, Ecological
restriction are examples for
1. Legal factors
2. Physical (Technical) factors
3. Economic factors
4. Social factors

27. Transfer of property act with lease provisions, Covenants under lease or
conveyance deed, Easement act for licenses, civil procedure code are
examples for
1. Legal factors
2. Physical (Technical) factors

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3. Economic factors
4. Social factors

28. Land acquisition act, Building Bye-laws, Town planning acts, Zoning
regulations, Laws governing building construction like development control
rules, FSI norms, Open space regulations, etc, Wealth tax, Income tax act are
examples for
1. Legal factors
2. Physical (Technical) factors
3. Economic factors
4. Social factors

29. Law on earth quake resistant building, Reservation under different acts
are examples for
1. Legal factors
2. Physical (Technical) factors
3. Economic factors
4. Social factors

30. Safety distance from industrial belt, hazardous zone, etc., height
restriction rules near airport area, safety distance from high tension lines,
railway tracks, highways, water courses, are examples for
1. Legal factors
2. Physical (Technical) factors
3. Economic factors
4. Social factors

31. Locality (like poor class, middle class, posh areas); Neighbourhood (like
well developed, less developed, slum, cremation ground, dumping ground,
nuisance due to community hall); Civic amenities (like proximity of shops,
mall, market, hospital, bus stand, railway station) are examples for

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1. Legal factors
2. Physical (Technical) factors
3. Economic factors
4. Social factors

32. Populations (density in area and population growth), Means of

communication (railway, roadway or waterways) are
1. Legal factors
2. Physical (Technical) factors
3. Economic factors
4. Social factors

33. Prestige aspect (prominent location, renowned personality, well known

celebrity, famous sport champion, industrialist, politician); Political factor
(Linguistic or religious communal unrest) are examples for
1. Legal factors
2. Physical (Technical) factors
3. Economic factors
4. Social factors

34. Racial habitation (like parsi colony, mohamedan colony, hindu colony,
catholic colony), Religious factors (like proximity of temple, church, mosque)
are the examples for
1. Legal factors
2. Physical (Technical) factors
3. Economic factors
4. Social factors
35. Personal factors like Sentimental, Considerations, Belief in vaastu, and
Liking for specific neighbourhood are the examples for
1. Legal factors
2. Physical (Technical) factors

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3. Economic factors
4. Social factors

3. REAL PROPERTY - RIGHTS AND INTERESTS IN REAL ESTATE

36. The things which can be physically touched or felt like land, furniture,
jewelry are called as
1. Tangible asset
2. Intangible asset
3. Goodwill
4. Imaginary asset

37 The things which cannot be touched but have the right of ownership of
non - material things are called
1. Tangible asset
2. Intangible asset
3. Building
4. Imaginary asset

38. Land, building are the examples of

1. Tangible asset
2. Intangible asset
3. Goodwill
4. Imaginary asset

39. Copyrights, goodwill are the examples of

1. Tangible asset
2. Intangible asset
3. Building
4. Imaginary asset

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40. Property consisting of land and objects and substances permanently
attached to the ground is called
1. Real property
2. Unreal property
3. Imaginary property
4. Physical property

41. Plant and machinery, jewelry are considered as

1. Immovable property
2. Movable property
3. Stable property
4. Imaginary property

42. A Ownership is a
1. Bundle of rights
2. Bundle of ownership
3. Bundle of encumbrance
4. Bundle of legalities

43. If a thing can be owned only by one person at a time, it is called as

1. Partnership
2. Sole ownership
3. Association of persons
4. Trust

44. If two or more persons own a thing as in the case of a house or land. It is
called
1. Cooperative society
2. Proprietorship
3. Trust
4. Co-ownership

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45. It is an example of duplicate ownership which allows the separation of the
powers of the management and the rights of management. It is called as
1. Trust
2. Association of persons
3. Partnership
4. Sole – ownership

46. The legal relation between a person and an object denoted as

1. Ownership
2. Lease
3. Tenant
4. Lessee

47. ............. is one in which a property is conveyed to a person only for the
terms of his life. It is
1. Leasehold
2. Life estate
3. Freehold
4. Easement

48. It is the most complete ownership in real property. It implies absolute

ownership. The owner’s right is unrestricted in time (till perpetuity). This is
called as
1. Easement
2. Leasehold
3. Rented
4. Freehold

49. A freeholder gives out to someone for use for a fixed duration under
certain terms and conditions. This is called as

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1. Sale
2. Rent
3. Lease
4. Mortgage

50. The use of someone’s land without obtaining the title is called as
1. Ground rent
2. Easement
3. Sub - lease
4. Lease

51. The owner of the adjacent premises may use the land owned by his
neighbour on a temporary basis is called as
1. Ground rent
2. Leasehold
3. Sub - lease
4. Easement right

52. Cost is conventionally used as a basis of accountability as recorded as a

price when transaction takes place at arm’s length
1. True
2. False
3. Not a function of accountability
4. None of the above

53. Real estate appraisal is the process of developing an opinion of -------------

---------- value, for real property?
1. Market
2. income
3. cost
4. none of above

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54. The property location also plays a key role in valuation. However, since
property cannot change location, it is often ---------------- that can change its
value
1. upgrades or improvements
2. mortgage loans
3. taxation
4. Highest and best use

55. Use value to one particular user, and may be above or below the market
value of a property. The statement is ---------------------------
1. may be true
2. may not be true
3. Asset NPV for specific owner for specific use
4. None

56. Investment value is the value to one particular investor may be, -------------
1. not higher than the market value
2. not lesser than market value
3. not providing motivation for buyers/ sellers to enter marketplace.
4. Asset value to the owner for individual investment or operational
objectives.

57. What is the difference between property prices versus property value?
1. Price paid might not represent that property's market value.
2. What the property is really worth and what it cost to buy it.
3. Relationship between the buyer and the seller where one party had control or
significant influence over the other party.
4. Transaction may have been one of several properties sold or traded between
two parties with a premium price.

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58. Investment in Real Estate enjoy the benefits of ____________
1. Perfect Competition
2. Capital appreciation
3. Divisibility
4. None

59. An owner of a neighboring property, by combining his own property with

the subject property, could obtain economies-of-scale. The price offered as?
1. Premium price
2. Market price
3. Market value
4. Cost

60. In corporate finance when a merger or acquisition happens at a price

which is higher than the value represented by the price of the underlying
stock. The price offered as?
1. Premium price
2. Market price
3. Market value
4. Cost

61. The most common reason for value differing from price is that buyer/
seller is uninformed as to what a property's market value is but agrees on a
contract at a high or cheap price. In this case, the valuer has to -------------------
1. to estimate the true market value
2. to estimate the true market price
3. not its market price
4. not its market value

62. Which one of the following is not one of the basic concepts of Valuation?
1. Interest receipts

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2. Benefit
3. Security
4. Cost

63. The study of Supply and demand is _______________ Aspect

1. a Physical
2. a Social
3. An Economic
4. a legal

64. Value in Use is often referred to as ____________________

1. Objective value
2. Subjective value
3. Exchange value
4. Negotiated value

65. ___________ is controlled by Development control rules

1. Value in Use
2. Value in Exchange
3. Highest & Best Use
4. Transferability

66. Value in Exchange is also known as _______________

1. Cost
2. Price
3. Transaction
4. Interaction

67. Real estate has some _______ and, therefore, has a value.
1. Profit
2. Immobility

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3. Non-marketable/ non-investment Characteristics
4. use

68. The price that would tend to prevail in a free, open and competitive market
on the basis of equilibrium set by the forces of demand and supply is called
1. Value in exchange
2. Value in use
3. Optimum value
4. Realizable value

69. What is the subject matter of valuation?

1. Interest in a property
2. Land and Building
3. Standard Rent
4. Profit Rent

70. Which one of the following is not a characteristic of real estate market?
1. No Free flow of information
2. It is imperfect market
3. It is perfect investment market
4. Heterogeneity

71. Which factor would negatively influence demand in real estate?

1. Low liquidity
2. Potential of capital appreciation
3. Regular income
4. Redevelopment potential of the property

72. Fee simple means ----------------------

1. Freehold ownership
2. complete ownership

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3. Leasehold ownership
4. Most complete ownership subject to the Government powers

73. Interest is defined as the ___________ possessed by an object.

1. Demand
2. Price
3. Value
4. Legal Rights

74. If the owner’s Right which is imperfect is made perfect on fulfillment of

certain conditions is called ____________________
1. Co-Ownership
2. Concurrent Ownership
3. Duplicate Ownership
4. Contingent Ownership

75. The exclusive right of a Flat owner over his own flat along with rights of
proportionate share in common areas is called
1. Co-Ownership
2. Concurrent Ownership
3. Duplicate Ownership
4. Contingent Ownership

76. In a condominium the common area rights like lifts, staircase and
pavements are called as
1. Co-Ownership
2. Concurrent Ownership
3. Duplicate Ownership
4. Contingent Ownership

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77. It is worth of an asset to specific user and therefore it is subjective and is
usually measured by cost of replacing the property less depreciation. It is
non-market based value. It is called as
1. Value in exchange
2. Desired value
3. Going concern value
4. Value in use

78. It is the price that would tend to prevail in a free, open and competitive
market on the basis of an equilibrium, set by forces of demand and supply.
Highest and best use or alternative use of the property is also considered
while estimating value. We may say it is also Fair market value
1. Forced sale value
2. Value in use
3. Going concern value
4. Value in exchange

4. ANNUITY, CAPITALIZATION, RATE OF CAPITALISATION, YP, SINKING

FUND, REDEMPTION OF CAPITAL, REVERSIONARY VALUE

79. What is annuity?

1. Investment value
2. Net annual income
3. Reversionary value
4. Deferment value

80. What is valuation concept of an annuity?

1. Investment value
2. Time value, interest rate, future value
3. Reversionary value
4. Deferment value

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81. What is Capitalization?
1. Present Amount invested
2. Invested Amount + interest received
3. Interest received
4. Profit amount received

82. What is yield rate?

1. Profit interest rate of income
2. Interest versus capital value
3. Compound interest
4. Simple interest

83. What is Discount rate?

1. Terminable rate
2. Inverse interest rate
3. Reversionary yield
4. Compounded interest

84. What is the Remunerative rate of interest?

1. Rate of capitalization
2. Comparable rates of other investments
3. Interest Rate of short term investments
4. Interest Rate of profit

85. What is accumulative rate of interest?

1. Interest portion received
2. Total interest portion on accumulation
3. Terminable rate
4. Interest Rate of investments

86. What is the Year’s Purchase?

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1. Present capital value
2. Method of valuing future income
3. Average annual cash-flow
4. Future Capital value

87. What is Rate of return?

1. Interest rate on capital value invested
2. % net income of capital value investment
3. Capital appreciation or capital erosion
4. Inverse interest rate

88. What is sinking fund?

1. Present Amount invested
2. Reserve fund for future capital expense
3. Net annual income
4. Interest Rate of profit

89. What will be the normal range of Rate of sinking fund?

1. Less than 2%
2. 2 % to 8%
3. 1% to 3%
4. more than 8%

90. What is redemption of capital?

1. Invested capital amount
2. capital+ accumulative interest recoupment
3. Reserve fund
4. Capital appreciation

91. What is the rate of redemption of capital when compared to market rate?
1. Equal

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2. lower
3. Higher
4. cannot judge

92. For short term period leased properties or building having a shorter life
span, the rate of redemption of capital has to be dealt with
1. Net annual income
2. terminable income
3. High rate of recoupment
4. Sinking fund

93. What is reversionary value?

1. Capitalized value & Investment value
2. Difference of capitalization value and market rent value
3. Future Capital value
4. Deferment value

94. What is reversionary yield?

1. Annualized rents percentage
2. Anticipated yield on estimated rental value
3. Higher yield for recoup investment
4. Lower yield for recoup investment

5. CONSTRUCTION AND USE OF VALUATION TABLES

1. Present Value / discount rate 𝟏

C X (𝟏+𝑹)𝒏

2. Amount of Re1 per Annum ((𝟏+𝑹)𝒏 −𝟏)

CX 𝑹

3. Gross Sinking Fund 𝑹

Cx (𝟏+𝑹)𝒏 −𝟏

𝟏
4. Present value of future 𝟏− (𝟏+𝑹)𝒏
Cx 𝑹
income Single rate
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5. Present value of future 𝟏
𝑹+𝑺
income (Dual rate)

95. What is the gross amount fetched for Rs 1000 at 10% on simple Interest
for 2 years term?
a) Rs 1100 b) Rs 1200
c) Rs 1000 d) Rs 1150
Solution:
Amount = P + PNR = Rs 1000+ (Rs 1000 x 2 x 10/100) = Rs 1000 + Rs 200 =
Rs 1200 /-

96. What is the gross amount fetched for Rs 1000 at 10% on Compound
interest amount for 2 years term?
a) Rs 1000 b) Rs 1210
c) Rs 1100 d) Rs 1200
Solution:
Gross Amount = P + I = P x (1+R) n = Principal + compound Interest accrued
Gross Amount = P + I = Rs1000 x (1+10/100)2
= Rs 1000 x (1+0.1) x (1+0.1) = Rs 1000 x 1.21 = Rs 1210 /-

97. Present value of rupee Calculation - What is the Present value of rupee for
Capital amount receivable at a future date of Rs 10,00,000 at 6 % compound
interest rate for 10 year term?
a) Rs 5,85,390 b) Rs 5,58,390
c) Rs 8,55,390 d) Rs 5,26,850
Solution:
𝟏
Present value of a Rupee = PV = (𝟏+𝑹)𝒏
𝟏
Present worth of amount receivable = PVA = CX (𝟏+𝑹)𝒏
1
PVA = Rs10,00,000 X = Rs10,00,000 x 0.55839 = Rs5,58,390/-
(1+0.06)10

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98. Amount of Re. 1 / year (annum) Calculation - Rs 500 deducted every month
and invested annually towards PF account from salary for a period of 20 year
terms and at a 7% of compound interest?
a) Rs 2,56,000 b) Rs 2,46,000
c) Rs 2,26,000 d) Rs 1,50,000
Solution:
((𝟏+𝑹)𝒏 −𝟏)
Accumulated sum of Re 1 / year = (APA) = 𝑹
((1+0.07)20 −1) ((1.07)20 −1) (3.87 −1) (2.87 )
= = = = = 41
0.07 0.07 0.07 0.07

Gross Accumulated sum = Rs 500 x 12 x 41 = Rs 2,46,000/-

99. Annual sinking fund Calculation - To find out the depreciated worth of
the building to set aside annually for 10 lakhs as Capital recoupment amount
expected at a 4% interest rate for the period unexpired period of lease of 60
years
a) Rs 2,400 b) Rs 4,200
c) Rs 3,200 d) Rs 4,000
Solution:
𝑹
Gross sinking fund = GSF = Cx (𝟏+𝑹)𝒏 −𝟏
0.04 0.04
GSF = Rs10,00,000 x = Rs10,00,000 x
10.52 −1 9.52

= Rs10,00,000 x0.0042 = Rs4,200 /-

100. Present value of future income of Re. 1 / year (Single rate basis) - Annual
Rental income from property is Rs 48,000 /-. If the building is demolished after
40 years, what will be the present value of the property @ 7% interest rate?
a) Rs 6,00,000 b) Rs 6,39,936
c) Rs 6,28,745 d) Rs 6,93,935
Solution:

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 𝟏
𝟏− (𝟏+𝑹)𝒏
Asset value = Cx 𝑹

C = Capital income (annuity) received each year R = Compound interest rate N

= Number of years YP = Year’s Purchase
𝟏 𝟏 𝟏 𝟏
𝟏− (𝟏+𝑹)𝒏 𝟏− 𝟏− 𝟏− 𝟏𝟒.𝟗𝟕𝟒
(𝟏+𝟎.𝟎𝟕)𝟒𝟎 (𝟏.𝟎𝟕)𝟒𝟎
YP = = = = = = 13.332
𝑹 𝟎.𝟎𝟕 𝟎.𝟎𝟕 𝟎.𝟎𝟕

Asset value = C X YP = Rs 48000 x 13.332 = Rs 6,39,936 /-

101. Present value of future income of Re. 1 / year (Dual rate basis) -
The annual rent received from the property is rs 48000 /-. Expected rate of
return is 10% future life of the building is 50 years. Recoupment rate is 4% on
capital. Find the purchase price.
a) Rs 4,85, 672 b) Rs 4,50,672
c) Rs 4, 60,672 d) Rs 4,75,672
Solution:
1
Present value of Re.1 / year = YP = 𝑅+𝑆

R = Remunerative rate of interest = 10%

𝑅 0.04
S = Sinking fund = = (1+0.04)50 −1 = 0.0065
(1+𝑅)𝑛 −1
1 1 1
Asset Value = C x YP = C x = Rs 48000 x = Rs 48000 x
R+S 0.10+0.0065 0.1065

= Rs 48000 x 9.389 = Rs 4,50,672/-

6. URBAN INFRASTRUCTURE AND ITS INFLUENCE

102. What affects the real estate value?

1. Increased Rapid urbanization
2. Availability of urban infrastructure
3. Quick Implementation of services
4. Poor Govt. budgetary allocations

103. When the real estate value comes down?

1. Availability of water supply

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2. Availability of sewage & sanitation
3. Availability of drainage
4. No urban infrastructure development

104. Which is not a finance type used for urban infrastructure development?
1. Market Based Finances
2. Pooled Financing
3. Project Finance
4. JNNURM linking

105. How are Rating of bonds done?

1. MOUD
2. SEBI
3. CRISIL
4. IT Act

106. Which is not a Public –Private Finance options?

1. Project Finance
2. Operation & Maintenance
3. Joint Sector & BOT
4. Bonds

107. What is not a function of JNNURM?

1. Improved service delivery systems
2. Improved economic level
3. Enhanced quality of life
4. Centralization of Governance

7. REAL ESTATE MARKET AND ITS CHARACTERISTICS, INVESTMENT IN

REAL ESTATE

108. Investment in immovable properties is considered as-----------------------

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1. Sound
2. Unstable
3. Not a wise investment
4. Wrong

109. When compared to the yield rate available for long term investment in
Government security, the return of return on investment in real estate is
considered as
1. Higher
2. Lower
3. Not preferable
4. Same

110. In case of any sale or transfer, getting back the capital invested is
1. Not certain
2. Certain
3. Doubtful
4. Not possible at all

111. For owner occupied properties in a developed area, capital appreciation

is
1. Fairly bad chance
2. Fairly good chance
3. Worst chance
4. No chance

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 INCOME APPROACH

112. When a parcel of land is given on lease, the rent reserved in lease is
known as
a. Standard rent b. Rack rent c. Virtual rent d. Ground rent

113. The rent mutually fixed by the owner and the tenant is called as
d. Contractual
a. Fair rent b. Standard rent c. Head rent
rent

114. The rent which can be legally charged by a landlord from a tenant or
the rent derived by a court of law is called as
a. Head rent b. Rack rent c. Virtual rent d. Standard rent

115. The rent which includes the premium is called

a. Head rent b. Rack rent c. Standard rent d. Virtual rent

116. When the lessor leases the property on lease he will get
a. Virtual rent b. Rack rent c. Standard rent d. Head rent

117. When the head lessee sub leases the property he will get
a. Virtual rent b. Head rent c. Standard rent d. Rack rent

118. The difference amount between the amount received by the head
lessee by sub leasing the leasehold property and amount paid by the head
lessee to the lessor is called
a. Virtual rent b. Head rent c. Rack rent d. Profit rent

119. What is the difference in rate of return of Secured ground rent in

comparison with unsecured ground rent?

31
 c. 1% to 2%
a.2% to 3% more b. 2% to 3% less d.1% to 2% less
more

120. What is the rent assumed if the property is Owner occupied or vacant
premises
a. Profit rent b. Head rent c. Standard rent d. Notional rent

121. Rental method is applicable for properties like ----------------

c. Owner d. Tenanted
a. Public building b. Agricultural
occupied property

122. As per which Act, the tenancy right is only occupancy right
a. Succession b. SARFEASI d. Rent control
c. Easement Act
Act Act Act

123. As per which Act, the eviction right is to the landlord

a. Succession d. Rent control
b. Easement Act c. SARFEASI Act
Act Act

124. As per which Act, Reversion of the property is to the landlord

a. Succession d. Rent Control
b. Easement Act c. SARFEASI Act
Act Act

125. The value of the Rent Controlled properties will have a

a. High market b. Both low and d. Low market
c. No difference
value high value

126. If the Land is fully developed and rented out, the method to be used
c. Market d. Income
a. Any method b. Cost Approach
Approach approach

127. Land fully developed, partly owner occupation partly rented out
a. Only by b. Only by c. Owner by market approach &
income approach market approach rented portion by income approach

32
128. Land partly developed and rented, additional FSI available in the
property
d. Rental method
a. Income b. Market
c. Cost Approach & market
approach Approach
approach

129. what is the Government Act for lease

a. Succession b. SARFEASI c. Rent Control d. Transfer of
Act Act Act property Act

130. What are called secured securities?

a. Long term Govt / Gilt edged Securities / Bank FDs / b. Shares &
Immovable properties Stocks

131. Capital safety is assured in

a. Long term Govt / Gilt edged Securities / Bank FDs / b. Shares &
Immovable properties Stocks

132. Yield rate is Constant / fixed / Minimum Risk management in

d. L T Govt / gilt
a. Immovable b. Shares & edged Securities
c. Mutual Funds
properties Stocks / Bank FDs

133. Adequate inflation rate covered in

a. Long term
b. Shares & d. Immovable
Govt / Gilt edged c. Bank FDs
Stocks properties
Securities

134. Liquidation process is not easy in

a. Long term
b. Shares & d. Immovable
Govt / Gilt edged c. Bank FDs
Stocks properties
Securities

135. Irregular income is anticipated in

33
a. Long term
b. Shares & d. Immovable
Govt / Gilt edged c. Bank FDs
Stocks properties
Securities

136. Net operating income termed as

d. Capital
a. Gross income b. Income with c. Capital
appreciation and
from property appropriate yield appreciation
rental income

137. Deduction allowable under Indian Act on rental income of house

property
a. 15% b. 20% c. 25% d. 30%

138. Lease requires registration as per the

a. Rent Control d. Transfer of
b. Easement Act c. SARFEASI Act
Act Property Act

139. License is defined in Section 52 of

a. Succession b. Rent Control d. Indian
c. SARFEASI Act
Act Act Easement Act

140. 99 years with due provision for renewal is specifically called as

d. Perpetual
a. Long lease b. Short lease c. Building lease
lease

141. Lessor gives an Open plot of land on lease to the lessee for the
construction of building for a lease period. This lease is
a. Occupational
b. Sub - lease c. Life lease d. Building lease
lease

142. Lessor gives a building (ie) both land and building on lease to the
lessee for a lease period. This lease is
b. Full repair d. Occupational
a. Building lease c. Life lease
lease lease

34
143. A lease agreement in which the lessee pays all outgoings apart from
his head rent. Such lease is called
b. Occupational d. Full repair
a. Building lease c. Life lease
lease lease

144. What is the lease name when the lease period is fixed till the death of
lessee and the lease period expires on lessee’s death
a. Full repair b. Occupational
c. Building lease d. Life lease
lease lease

145. A perpetual lease can be valued in the hands of

a. Lessor b. Tenant c. Head lessor d. Lessee

146. A leasehold property is normally valued by

c. Market d. Income
a. All methods b. Cost approach
approach approach

147. If years purchase (Y.P.) is 12.5, then the rate of return is

a. 10.00% b. 12.50% c. 6.00% d. 8.00%

148. The value in the hands of lessor and lessee mainly depends on
c. Advance
a. Rental income b. Rate of return d. Deed Terms
received

149. If the unexpired period in lease is short, then the lessor’s share will
be
b. Same as
a. less c. Equal d. more
lessee

150. If renewal clause is not stipulated in lease agreement then the

lessor's share will be
b. Same as
a. less c. Equal d. more
lessee
35
151. If the lessee surrenders the development in the property free of cost
after expiry of lease period then the lessor's share will be
b. Same as
a. less c. Equal d. more
lessee

152. If the periodical rent revision in terms of market rent during lease
period, then the lessor's share
b. Same as
a. less c. Equal d. more
lessee

153. If the unexpired period is very long, value of lessee’s share will be
b. Same as
a. less c. Equal d. more
lessor

154. If there is no restrictive conditions in the lease deed, then the value
of lessee’s share will be
a. Same as
b. Equal c. Less d. more
lessor

155. If the profit rent is more and balance lease period is more, then the
value of lessee’s share will be
b. Same as
a. less c. Equal d. more
lessor

156. Premium means

b. Refundable c. Annual lease d. Non-
a. None
deposit amount rent refundable Price

157. Premium is defined in transfer of Property Act

a. Section 108 b. Section 107 c. Section 106 d. Section 105

158. Remunerative rate / Accumulated rate of investment of lease period

for 50 years and above will be

36
a. cannot be
b. More c. Less d. Equal
ascertained

159. Because it is intended to directly reflect or model the expectations and

behaviors of typical market participants, ---------------approach is generally
considered the applicable valuation method for income-producing properties,
where sufficient market data exists.
1. Cost approach
2. Market approach
3. Income approach
4. Cost Index

160. DCF technique applies market-supported yields (or discount rates) -------
------- to arrive at a present value indication
1. To projected annual income
2. Lump sum reversion
3. None
4. to projected future cash flows - annual income figures and lump sum
reversion from the eventual sale of property

161. The rate of interest for Capitalization is _____________ to the degree of

security
1. not proportional
2. inversely proportional
3. directly proportional
4. not related

162. Two interest rates are considered for ____________ income

1. Perpetual
2. Terminable
3. Annual
4. None
37
163. Years purchase ____________ if number of year’s increases.
1. Increases
2. Decreases
3. remains same
4. None

164. As the unexpired period of lease increases, the capital value after
reversion goes on _______________
1. Increasing
2. Decreasing
3. Without changing
4. Negligible

165. In case the unexpired period of lease is too long then reversionary value
would be___
1. Negative NPV
2. Zero
3. Negligible
4. Less than zer

166. The net income was reported at Rs.21,000 and the property sold for
Rs.300,000. What capitalization rate applied for this sale?
1. 0.075
2. 0.080
3. 0.065
4. 0.070

167. A property has a net income of Rs.30,000. One appraiser decides to use
a 12 Percent capitalization rate, while a second appraiser uses a 10 percent
rate. Use of the higher rate results in in appraisal value.
1. Rs.50,000/- increase
38
2. Rs.50,000/- decrease
3. Rs 2,50,000
4. Rs 3,00,000

168. Which among the following is not a factor affecting market rent?
1. City
2. Location
3. Type of building
4. Turnover of the lessee

169. In relation to a lease agreement, the actual rent specified in the lease is
called _____.
1. Contractual rent
2. Effective rent
3. Negotiated rent
4. Standard rent

170. Profit method used for trading properties where evidence of rates is
slight, such as hotels, restaurants and gas filling stations by adopting----------
1. Three-year average of net income capitalized using an appropriate yield
2. Five-year average of net income is capitalized using an appropriate yield
3. Future income to be derived
4. None of the above

171. Under rent capitalization method, value of the property increases

with_______.
1. Higher property tax
2. Higher capitalization rate
3. Lower capitalization rate
4. longer duration

39
172. In DCF method, which assumptions lead to wrong calculation?
1. Inflation
2. Depreciation
3. Interest Rate
4. Deflation

173 The project becomes viable or profitable when NPV versus IRR--------------
1. NPV=0
2. NPV ≥ 0
3. NPV≤ 0
4. NPV = IRR

TRUE OR FALSE QUESTIONS

174. While transfer of property to lessee under lease, the lessor is not required
to pay capital gains
a) False b) True c) May or may not d) Not relevant

175. If both land and building are given on lease, it is called occupational lease.
a) False b) True c) May or may not d) Not relevant

176. A leased property is normally valued by income approach.

a) False b) True c) May or may not d) Not relevant

177. Capital value is net income multiplied by years purchase.

a) False b) True c) May or may not d) Not relevant

178. A 99 years lease with renewal clause is called a perpetual lease.

a) False b) True c) May or may not d) Not relevant

179. Lease for life is not common in India.

a) False b) True c) May or may not d) Not relevant

40
180. Net profit rent for lessee = Rack rent minus ground rent minus outgoings.
a) False b) True c) May or may not d) Not relevant

181. The rights of lessor / lessee depends upon the conditions stipulated in
lease deed.
a) False b) True c) May or may not d) Not relevant

182. Even in a perpetual lease, the lessee’s right will be low, if the unexpired
period is less.
a) False b) True c) May or may not d) Not relevant

183. The handing over of open land back to the lessor is called Reversion.
a) False b) True c) May or may not d) Not relevant

184. The word “covenant” indicates the terms and conditions stipulated in any
deed.
a) False b) True c) May or may not d) Not relevant

185. A man cannot grant a lease to himself.

a a) False b) True c) May or may not d) Not relevant

186. Perusal of lease deed is the first duty of a valuer if he wants to value a
leasehold property.
a) False b) True c) May or may not d) Not relevant

187. A “deposit” is the amount which is returnable on fulfillment of certain

conditions.
a) False b) True c) May or may not d) Not relevant

188. The amount of Re. 1 per annum is the reciprocal of the sinking fund.
a) False b) True c) May or may not d) Not relevant

41
189. The rate of capitalization in leasehold depends on the money market from
time to time.
a) False b) True c) May or may not d) Not relevant

190. Capital value of income can be determined from the net income and % age
return required on investment.
a) False b) True c) May or may not d) Not relevant

191. The rate of capitalization for a leasehold interest in general is 1% more

than the freehold interest.
a) False b) True c) May or may not d) Not relevant

192. A token amount or a nominal rent is called as an Acknowledgement rent.

a) False b) True c) May or may not d) Not relevant

193. If the unexpired period of lease is short, the value of lessor’s share will be
more.
a) False b) True c) May or may not d) Not relevant

194. If unexpired period of lease is very long, value of lessee’s share will be
more.
a) False b) True c) May or may not d) Not relevant

195. A leaseholder’s interest in a property will normally decrease with passage

of time and ultimately extinguish with the expiry of lease.
a) False b) True c) May or may not d) Not relevant

196. Net Rent = Gross rent - Outgoings.

a) False b) True c) May or may not d) Not relevant

42
197. Longer period of lease enables the lessee to recover his capital invested
in the improvement of the land.
a) False b) True c) May or may not d) Not relevant

198. Ground rent is well secured when improvement is done on the land given
on lease.
a) False b) True c) May or may not d) Not relevant

199. In the case of sub - lease, if the proposed ground rent is higher than the
original ground rent, then it is known as improved ground rent.
a) False b) True c) May or may not d) Not relevant

200. Valuation procedure for a freehold property and a leasehold property with
a perpetual lease is not same.
a) False b) True c) May or may not d) Not relevant

201. The provisions or terms of lease would decide the share value of lessor
and lessee.
a) False b) True c) May or may not d) Not relevant

202. When lessor’s interest is valued, single rate table is normally to be used.
a) False b) True c) May or may not d) Not relevant

203. A lease where lessee has undertaken to carry out all the repairs and to
bear all outgoings is called as “Full Repairing Lease”.
a) False b) True c) May or may not d) Not relevant

204. In the case of perpetual lease with covenant of renewal, the lessor cannot
terminate the lease or refuse to renew the same as long as the lessee do not
violate any terms specified in the lease agreement.
a a) False b) True c) May or may not d) Not relevant

43
205. Higher the rate of capitalization, lower is the value of the asset.
a) False b) True c) May or may not d) Not relevant

206. Lower the rate of capitalization, higher is the value of the asset.
a) False b) True c) May or may not d) Not relevant

207. If the document creates an interest in the property, it is a lease. But, if it

only permits another person to make use of the property for a temporary
period, then it is a license.
a) False b) True c) May or may not d) Not relevant

208. The owner of a freehold property can do anything with his property.
a) False b) True c) May or may not d) Not relevant

209. License and lease are not same.

a) False b) True c) May or may not d) Not relevant

210. The leaseholds are less attractive than freeholds from the investment
point of view.
a) False b) True c) May or may not d) Not relevant

211. The sub - lease can be granted only for a period which is less than the
original lease period.
a) False b) True c) May or may not d) Not relevant

212. A rent is governed by the Rent control act. A license is governed by the
Easement act. A lease is governed by the Transfer of Property act.
a) False b) True c) May or may not d) Not relevant

213. Schedule III WT Act cannot be adopted for valuation of leasehold rights.
a) False b) True c) May or may not d) Not relevant

44
 III. MARKET APPROACH

215. When the supply is in excess of demand, it is called as

1. Buyers’ market
2. Sellers’ market
3. Stable market
4. No market

216. When the supply is less than demand, it is called as

1. Buyers’ market
2. Sellers’ market
3. Stable market
4. No market

217. In buyers’ market, the king is

1. Public
2. Seller
3. Buyer
4. None

218. In sellers’ market, the king is

1. Broker
2. Buyer
3. Public
4. Seller

219. Expectations of people about likely fall in price of real estate in near
future results in
1. Stable market
2. Buyers’ market
3. Sellers’ market
4. No market
45
220. Under market approach, we can normally value only
1. Non - marketable properties
2. Marketable properties
3. Religious properties
4. Leasehold properties

221. Non - marketable properties can be valued by

1. Income approach
2. Market approach
3. Cost approach
4. Composite rate method

222. ‘Highest and Best use’ aspect is to be considered by

1. All methods
2. Cost approach
3. Income approach
4. Market approach

223. ‘Market is Supreme’ - This aspect holds good in

1. Market approach
2. Cost approach
3. Income approach
4. Composite rate method

224. In the demand and supply curve, price is plotted as

1. X axis
2. Y axis
3. Z axis
4. None
225. In demand and supply curve, quantity of goods available is plotted as

46
1. X axis
2. Y axis
3. Z axis
4. None

226. Transaction takes place after higgle haggle (bargaining) for the price.
This process is explained by
1. Sellers curve
2. Supply and demand curve
3. Buyers curve
4. Bell curve

227. The four factors - economic, physical, social and legal factors mainly
affect
1. Value
2. Cost
3. Price
4. None

228. Sale recorded at Registrar’s office is one of the sources where

1. Market value can be collected
2. Sale instances can be collected
3. Cost can be collected
4. Price can be collected

229. Formula for success in any valuation assignment is

1. Inspect before you value
2. Allot the work to your staff
3. Receive fees before accepting the assignment
4. Valuation report

47
230. For collecting data for sale comparisons, a good source of information
is
1. Court
2. Registrar of documents
3. Corporation
4. Town planning department

231. Before undertaking comparison with sale transactions, the valuer’s

prime duty is
1. Study the tax receipt
2. Study the drawing
3. Study the title deed
4. Study the encumbrance certificate

232. Sale transaction records cannot be fully relied upon because of

1. Wrong representation
2. Under valuation
3. Over valuation
4. parallel economy money

233. The weightages adopted in sale transaction may

1. Change from locality to locality
2. Be constant everywhere
3. Change from purpose to purpose
4. Change from time to time

234. The weightage to be applied to sale instance rate in the case of

landlocked land is
1. + 15%
2. - 75%
3. + 25%

48
4. - 15%

235. The weightage to be applied for forced sale by authorities is say,

1. + 5%
2. + 10%
3. - 15%
4. + 15%

236. The weightage to be applied for low lying plots

1. - 50%
2. - 25%
3. - 30%
4. Deduct earth filling cost

237. The weightage to be applied for large size plot

1. - 15% to - 40%
2. + 15% to + 40%
3. + 60%
4. - 100%

238. The weightage to be applied for properties pending litigation (stay in the
court against sale)
1. + 10%
2. - 30% or more
3. + 20%
4. Zero

239. Buyers interested in purchasing single family residential property would

rather compare price, in this case, ----------------------------------------- would be
more applicable
1. Sales Comparison Approach method

49
2. Cost Approach method
3. Income Approach method
4. Detailed estimate method

240. The ----------------------------- to value is most useful in determining insurable

value, and cost to construct a new structure or building
1. Cost Approach
2. Market Approach
3. Income Approach
4. None

241. Appraisals of properties that are typically purchased by investors

(e.g., skyscrapers, office buildings) may give greater weight to --------------------
1. Income Approach
2. Sales comparison
3. Cost Approach
4. All the above

242. Single apartment buildings of a given quality tend to sell at a particular

price per apartment. In many of those cases, the -------------------------------- may
be more applicable
1. Cost Approach
2. Market Approach
3. Income Approach
4. None

243. A multiple-building apartment complex would usually be valued by the -

---------------------- as that would follow how most buyers would value it.
1. Cost Approach
2. Market Approach
3. Income Approach

50
4. None

244. If a single-family dwelling is in a neighborhood where all or most of the

dwellings are rental units, then some variant of the ---------------------- may be
more useful
1. Cost Approach
2. Market Approach
3. Income Approach
4. all of the above

245. A buyer who looked at seven very similar homes in a three year old
subdivision made an offer on the home with the lowest list price. The buyer
was utilizing the principle of --------------
1. Substitution
2. Anticipation
3. Desire
4. Income

246. A separate value for the land is needed for the----------------------

1. Cost approach
2. Market approach
3. Income approach
4. Cost Index

247. Which of following would have effect on development potential and

values of properties?
1. FSI
2. Ownership pattern
3. Size/ room height
4. utility services
248. Value is an estimate of what ______ ought to be.

51
1. Value
2. Price
3. Cost
4. Worth

249. Which one of the following valuation methodology is most appropriate

for valuing a non-income generating residential bungalow?
1. Discounted Cash Flow Method
2. Profit Method
3. Direct Capitalization Method
4. Sales Comparable & Depreciated Replacement Cost Method

250. While carrying out valuation of property for bank finance, which of the
following is not to be taken into consideration?
1. Age of the building
2. Rent fetching capacity of the property
3. Economic obsolescence
4. Amount of loan

251. Which of the following transaction is an arm’s length transaction?

1. Transaction between parties at auction sale.
2. Transaction between two brothers
3. Transaction between parent & subsidiary company
4. Transaction between two old friends

252. Which of the following will not be considered for the estimation of
present market value of above property?
1. Deprecation
2. Current building Replacement cost
3. Economic obsolescence
4. Current land rate

52
253. Data is collected on--------------------- of properties similar to the subject
being valued, is called comparable
1. Recent sales
2. earlier sales more than 2 years old
3. Proposed sale of properties
4. None of the above

254. Since comparable sales are not identical to subject property,

adjustments may be made for
1. Date of sale
2. Location, style, amenities
3. Square footage, Site size
4. All the above

255. If the comparable is superior to the subject in a factor or aspect, ----------

------------ is needed for that factor
1. Downward adjustment
2. upward adjustment
3. No adjustment
4. Ad-hoc adjustment

256. If the comparable is inferior to the subject in an aspect, ----------------------

is needed for that factor
1. Downward adjustment
2. upward adjustment
3. No adjustment
4. Ad-hoc adjustment

257. Steps in the sales comparison approach includes ------------------

1. market research to get information pertaining to sales, pending sales that are
similar to subject property
53
2. Investigate the market data to determine whether they are correct and accurate
3. Determine relevant units of comparison and develop a comparative analysis
for each
4. All the above

258. Residual method is used for properties -------------------------

1. Ripe for development
2. Redevelopment
3. For bare land only
4. All of the above

259. A timber building on brick-walled pillars load bearing structure is an

example of
1. Functional obsolescence
2. Technological obsolescence
3. Economical obsolescence
4. Legal obsolescence

260. Modern technologies and planning concepts have made it possible in

converting this ----------------------------to new intelligent building concepts.
1. Functional obsolescence
2. Technological obsolescence
3. Economical obsolescence
4. Legal obsolescence

261. Today’s trend of having more shopping malls & multiplex theatres are
the best example of
1. Functional obsolescence
2. Technological obsolescence
3. Economical obsolescence
4. Legal obsolescence

54
262. Many palaces are converted in to hospitality buildings because of the
high demand due to
1. Functional obsolescence
2. Technological obsolescence
3. Economical obsolescence
4. Legal obsolescence

263. An old residential building in a centrally commercial area in the heart of

the city can be termed as
1. Functional obsolescence
2. Technological obsolescence
3. Economical obsolescence
4. Legal obsolescence

264. Quick estimation of costs of construction can be carried out

by_________.
1. Sum of digit method
2. Detail estimation
3. Plinth area rate
4. discounted cash flow method

265. Actual survival life of the building before it collapses is called the _____.
1. Useful life
2. Economic life
3. Physical life
4. Residual life

266. 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 ___________.

55
1. Technological obsolescence
2. Economic obsolescence
3. Functional obsolescence
4. Both technological/ economic obsolescence

267. Depreciated Replacement Cost is market value of special purpose

industrial plant building subject to potential______.
1. Profitability 2. Cost 3. Price 4. Value

268. --------------------------- is not the principle method in market approach

valuation
1. Sales Comparison method
2. Development method
3. Residual Method
4. Cost analysis method

HEDONIC MODEL AND ADJUSTMENT GRID MODEL

269. The adjustment grid model can be adopted mainly for

1. Flats
2. Restaurant
3. Cinema theatre
4. Agricultural land

270. For adjustment grid model, the (minimum) main attributes of the
properties are
1. 3 (Location, size, age)
2. 4 (Location, size, age, specification)
3. 2 (Location, size)
4. 1 (Location)

271. In the adjustment grid model, negative weightages are given for

56
1. Normal specification
2. Superior specification
3. Inferior specification
4. Posh specification

272. In the adjustment grid model, positive weightages are given for
1. Substandard specification
2. Inferior specification
3. Normal specification
4. Superior specification

273. Under the adjustment grid model, the rate adjustment is mainly to be
given first for
1. Time
2. Location
3. Size
4. Age

274. Factors to be considered under Hedonic Pricing Model (Ad-hoc

Comparison Technique) are
1. Size, Time, Location
2. Size, Time, Location, Age
3. Size, Time
4. Size

275. ---------------------- is not a recognized model under sales comparison

1. Adjustment Grid Model
2. Hedonic Pricing Model
3. Weighted Score system
4. Reversible Analysis Model

57
276. The function of Ad-hoc comparison technique is -------------
1. P = f (STLA)
2. P = f (SLTA)
3. P = f (SALT)
4. P = f (ALTS)

277. The attributes can be the deciding factor to have precise market on the
property value, when comparing the sales instances and these attributes
decides the market value of a specific property and
1. will change from locality to locality
2. will change from time to time
3. will have no relation with time or locality
4. will change from locality and time

278. In Evaluation grid the first principle attribute to be considered and has
more weightage in determining the market value
1. Size aspect
2. Location aspect
3. Time aspect
4. Age aspect

279. For these types of property, fully developed or under-utilized or of

inferior use, to get best and high use, and where there is no prior sale
instances or may not be many sale instances available for a direct
comparison, to find out the land rate, residual techniques are used.
1. Commercial
2. Industrial
3. Non-availability of plots sales
4. All the above

58
280. In case of properties are considered for redevelopment as shopping/
office/ malls and others subject to assumption of rental income or profit, this
method can be adopted both by income and cost approach method.
1. Hypothetical building scheme
2. Hypothetical Plotting scheme
3. Hedonic Pricing Model
4. Adjustment Grid Model

281. --------------- ----------resorted to value a large sized plot for comparable in

market with smaller plots.
1. Belting method
2. Hypothetical Plotting scheme
3. Hedonic Pricing Model
4. Adjustment Grid Model

282. Clubbing different ownership title lands at different distance from road -
--------- be valued by belting method
1. Cannot be valued
2. Can be valued
3. May not be valued
4. May be valued

LAND CHARACTERISTICS AND ITS EFFECT ON LAND VALUES

283. The value of land mainly depends on

1. Economic, technical, social and legal aspects
2. Size, encumbrance, climate, building bye-laws
3. Topography, prestige aspect, view aspect, Tenure
4. Community aspect, vaastu aspect, landlocked concept, environment aspect

284. If the land is situated in a business area of the town, the rental value is
1. Less
2. More
59
3. Double
4. Stable

285. The important criteria for the selection of the best land in the town is
1. More width of road
2. Commercial zone
3. Location, location & location
4. Residential zone

289. If the land is situated where there are no infrastructure facilities like
water, power, drainage, the value is
1. 50% of other plot
2. More
3. Stable
4. Less

290. When the land is large, the land rate is comparatively

1. Lower
2. Higher
3. Stable
4. Unstable

291. Wider frontage plot in a commercial zone is valued

1. Less
2. More
3. Constant
4. No value

292. Return frontage is known as

1. Tandem plot
2. Intermittent plot
3. Corner plot
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4. Middle plot

293. The plots having road in the front and rear side is called as
1. Single frontage
2. Return frontage
3. Multi frontage
4. Double frontage

294. When the width of road is more, normally the value is said to be
1. More
2. Less
3. 200% normal
4. 50% normal value

295. The concept of floating FSI or transferable right for development of the
land is
1. Building bye-laws
2. TDR aspect
3. Tenure aspect
4. Environment aspect

HYPOTHETICAL PLOTTING SCHEME - RESIDUAL TECHNIQUE VALUATION

FOR JOINT VENTURE DEVELOPMENT OF PROPERTY

296. Hypothetical plotting scheme is mainly used to value

1. Large open land
2. Flats
3. Industries
4. Residential building

297. Hypothetical building scheme is normally used for

1. Large utilized property with more FSI
61
2. Underutilized property with less FSI
3. Industries
4. Flats

298. Sale comparison method and development method (Residual technique)

are the two main methods under
1. Income approach
2. Cost approach
3. Market approach
4. Composite rate method

299. When total unavailability of sale instances are there, the method useful
to find the land rate is called as
1. Development method (Residual technique)
2. Sale comparison method
3. Land & building method
4. Profit method

300. By using this method, land value can be arrived at. This method is called
as
1. Development method
2. Profit method
3. Composite rate method
4. Income capitalization method

301. Joint venture is mostly applicable for

1. Individual residential building
2. Apartment building
3. Cinema theatre
4. Hotel

62
302. In a joint venture development, the ratio normally represents
1. Landlord: Contractor
2. Landlord: Promoter
3. Promoter: Landlord
4. Engineer: Landlord

303. In a joint venture, the land rate is to be considered based on

1. Average of market & guideline rate
2. Guideline rate
3. Whichever is more
4. Prevailing market rate

304. In a joint venture agreement, the building is rate is based on

1. State PWD rates for building
2. The proposed specifications
3. CPWD rates
4. Rates adopted by the registrar’s office

305. In a joint venture arrangement, the share of the landlord will be more if
the land rate is
1. Less
2. High
3. Average
4. based on GLV

306. In a joint venture agreement, the share of the builder is less when
1. Building rate is equal to the land component
2. Building rate is more than the land component
3. Building rate is less than the land component
4. The FSI is less

63
307. In a joint venture agreement, the two main factors which decide the ratio
normally is
1. Demand
2. Plot coverage
3. Approved plan
4. Land rate & FSI

308. In the joint venture agreement, which are not the factors deciding on the
market value aspects?
1. Demand, Location
2. FSI & FAR
3. Usage, building specifications.
4. Land circle rate

309. In the joint venture agreement, which are the factors affecting on the
market value aspects?
1. Building byelaws / development control rules
2. Lesser FSI
3. Open space and set back rules/ height restrictions.
4. All the above

310. Joint venture agreement for redevelopment of properties is mostly

applicable for
1. Hotel
2. Industrial
3. Cinema theatres
4. Apartments

LAW REAL ESTATE

LAND ACQUISITION ACT, 2013

64
311. How is the market value of the property determined in LARAR?
1. 5 years average GLV
2. 3 years average GLV
3. GLV as on the date
4. Property on going market value

312. How is the property market value determined in LARAR?

1. Value nearer to that place or village
2. b.3 Kms surrounding that place
3. Property value on current market rate
4. Mutual agreement value

313. Who has the power of taking possession of acquired land?

1. District Collector
2. Village Administration officer
3. The District Court
4. Central Government

314. As per Section 23, market value is determined as on what date?

1. Date of publication
2. Date of Notification
3. Date of possession
4. Date of compensation of award

315. As per Section 23, additional percentage value given for compulsory
acquisition?
1. 15%
2. 20%
3. 30%
4. 40%

65
316. As per Section 49, who has the power to acquire a part or full area of the
building?
1. District Collector
2. Village Administration officer
3. The District Court
4. Central Government

317. What is the minimum period for return of the unutilized acquired
property?
1. 5 years
2. 3 years
3. 7 years
4. 2 years

318. Can an assigned government patta land can be taken as for acquisition?
1. It can be taken
2. It cannot be taken
3. Depending on the value of land
4. only a part of land is taken

319. Limit of acquisition of land is restricted for

1. Railways
2. Highways
3. Power lines
4. agricultural lands

320. What is the power given in Section 51 of LARAR?

1. Exemption of stamp duty
2. Award more value for acquisition
3. Release of property to owner
4. Acquiring additional area

66
321. Sec 2 LARAR Act will apply when?
1. Government acquires land for its own use, to hold and control
2. for specified public purpose
3. Where Government acquires land for private companies or
4. All the above

322. When Government acquires land, as Sec 2 LARAR Act will apply how?
1. For own use, require prior consent of 80 % of the affected families and for
Public Private Partnership Projects - consent of 70% of the affected families is
obtained.
2. Require prior consent of 80 % of the affected families is obtained.
3. Public Private Partnership Projects - consent of 70% of the affected families is
obtained.
4. No specific percentage consent

323. As per MORD Notification dated 9th February, 2016, in sub-section (1) of
section 46 of the said Act, the limit is ----------------------------- for its own use
1. Shall be 20 hectares in urban areas.
2. Shall be 40 hectares in rural areas.
3. Shall be 20 hectares in urban areas and 40 hectares in rural areas.
4. Shall be 40 hectares in urban areas and 20 hectares in rural areas.

324. For a where a private company purchases land for rehabilitation and
resettlement under the Act would apply to land --------------------
1. equal to or more than 50 acres in urban areas
2. equal to or more than 100 acres in rural areas
3. equal to or more than 50 acres in urban areas and 100 acres in rural areas
4. Equal to or more than 100 acres in urban areas and 50 acres in rural areas.

67
325. As per the 2013 Act, in the Scheduled Areas (tribal areas) to which the
fifth schedule of the constitution applies to --------------
1. land acquisition can happen
2. No land acquisition can happen against of any law prevailing in such
Scheduled Areas.
3. Under directions from the judiciary
4. Under special conditions

326. What are Limits on acquisition?

1. Act ban on land acquisition of multi-crop irrigated area.
2. Acquisition permitted, with aggregated upper limit for all the projects as notified
by the State Government.
3. Wherever multi-crop irrigated land is acquired an equivalent area of cultivable
wasteland shall be developed by the state for agricultural purposes.
4. All the above

327. Limits of acquisition do not apply to ---------------------

1. railways, highways, major district roads
2. Electrical power lines,
3. Irrigation canals.
4. All the above

328. Award for Land Acquisition - 1) Market value - In the case of urban areas -
One in the case of rural areas - one to two based on the distance of project from
urban area, as may be notified by the appropriate Government [Vide MORD
Notification dated 9TH February, 2016 S.O. 425(E) - . [F NO.13011/04/2015-LRD]

2. Solatium - Equivalent to one hundred percent of the market value of land

multiplied by the appropriate factor mentioned above plus value of assets attached
to land or building

68
3. Given in addition 12% per annum on such market value computed for the period
commencing on the date of publication of the notification of the Social Impact
Assessment study and till the date of the award of the Collector or the date of taking
possession of the land, whichever is earlier

4. 25% of the total compensation can be through shares in the Requiring Body if
the projected affected family consent

5. If land is acquired for urbanization, then 20 percent of the acquired land must
be reserved for landowning project affected people and offered to them at a price
equal to cost of acquisition

6. If a person previously displaced is being displaced again in another project from

the rehabilitation site - they will be entitled to 75% additional compensation

7. In addition to the market-value of the land as above provided the Court shall in
every case award a sum of 15% on such market-value, in consideration of the
compulsory nature of the acquisition.

Sec 49. Acquisition of part of house of building: The provisions of this Act shall
not be put in force for the purpose of acquiring a part only of any house, manufactory
or other building, if the owner desire that the whole of such house, manufactory or
building shall be so acquired: In deciding on such a reference the Court shall have
regard to the question whether the land proposed to be taken is reasonably required
for the full and unimpaired use of the house, manufactory or building.

Sec 51. Exemption from stamp-duty and fees:- No award or agreement made
under this Act shall be chargeable with stamp-duty, and no person claiming under
any such award or agreement shall be liable to pay any fee for a copy of the same.

BUILDING BYELAWS

329. Basement as per Building bylaws is ---------- in floor area ratio

1. Not considered
2. Excluded if used as car park

69
3. Depending on building type
4. depending on the land

330. For group housing, the density pattern is taken per dwelling unit as
1. 4.50 persons per DU
2. 6.00 persons per DU
3. 2.50 persons per DU
4. 3.50 persons per DU

331. Size of the plot determine the number of dwelling unit

1. Correct
2. Not correct
3. May be
4. Irrelevant

332. Minimum open car space as per parking standards, as per building
bylaws
1. 18.00 square metre
2. 28.00 square metre
3. 13.00 square metre
4. 23.00 square metre

333. Minimum covered car space as per parking standards, as per building
bylaws
1. 18.00 square metre
2. 28.00 square metre
3. 13.00 square metre
4. 23.00 square metre

334. Minimum basement car space as per parking stds, as per building
bylaws

70
1. 18.00 square metre
2. 28.00 square metre
3. 13.00 square metre
4. 23.00 square metre

335. Minimum bathroom and toilet service facility in a residential house

1. 1–1
2. 1–2
3. 2–3
4. 2–4

71
RENT CONTROL ACT

336. Rent Control Act is applicable for properties like

1. Public building
2. Agricultural
3. Owner occupied
4. Tenanted property

337. The tenancy right is only occupancy right and the eviction right is to the
landlord is governed by?
1. Succession Act
2. SARFEASI Act
72
3. Easement Act
4. Rent control Act

338. Ownership rights in rent controlled properties

1. Transferred
2. Not transferred
3. Pledging rights
4. Power to make improvements

339. The value of the Rent Controlled properties will have a

1. High market value
2. both low and high
3. No difference
4. Low market value

340. In rent control act, the fair rent is determined on what date?
1. Date of Petition
2. Date of inspection
3. Date of valuation
4. Date of award

341. In rent control act, the depreciation is determined by what method?

1. W D V Method
2. Any method can be followed
3. Linear Method
4. Straight line method

342. What is an appurtenant land, as defined in TN rent control act?

1. 50% over building plinth area
2. Total extent of property land
3. 70% over building plinth area
4. 60% over building plinth area
73
343. In case of rented building in second floor, how the land is proportioned?
1. 1/3 share of the land
2. Total extent of property land
3. 30% over building plinth area
4. 50% over building plinth area

RERA - REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016

344. Publication of the Real Estate (Regulation and Development Act, 2016
1. 26th March 2016
2. 17th July 2016
3. 27th January 2016
4. 27th July 2012

345. The Real Estate Act (RERA) makes it mandatory for commercial and
residential real estate projects, before launching the project, where with -------
-------------- has to register with RERA.
1. land area is over 500 square metre or proposal for 8 building units
2. 500 square metre of land area only
3. proposal for 8 building units only
4. Land area less than 500 sqm is also required to register

346. Does the Act cover commercial and residential project?

1. Cover only residential
2. cover only commercial
3. cover both (a & b)
4. Only for apartments

347. Does the Act cover Rural and Urban area?

1. Only in rural area
2. only in urban area
74
3. Power vested with the local authorities to direct the promoter to register
4. No specific area defined

348. In how many days, RERA authority required to register on receipt of the
application?
1. 30 days
2. 45 days
3. 60 days
4. 90 days

349. For ongoing projects which has not completed or have not received
completion certificate on the date of commencement of RERA Act will have to
seek registration------
1. Within 5 months
2. Within 3 months
3. Not required
4. or stop the work

350. What is called Occupancy certificate?

1. Relating to habitual use after completion of an apartment or building
2. Completion of water, sanitary and electrical services
3. Completion of entire project
4. Certification of building as per sanctioned plan

351. What is called Completion certificate?

1. Completion of building as per sanctioned plan
2. Completion of entire project
3. Relating to habitual use after completion of an apartment or building
4. Certification of the entire project by the competent Authority

352. What is Estimated Project value?

75
1. cost of the project including land, building, taxes and cess
2. Land cost only
3. building cost only
4. project cost incl. land, building, development charges, taxes and cess

353. Can garage can be sold independently?

1. it can be sold independently
2. cannot be sold independently
3. to be included in the building cost
4. None of the above

354. Are commercial or community facilities that are provided within the real
estate project can be -------------------------------?
1. sold separately
2. cannot be sold separately
3. can be with the promoter
4. Common area includes commercial or community facilities, provided
within the real estate project are to be handed over to the Association

355. Under Section 14, can the promoter modify, amend sanctioned plan
during execution?
1. the promoter can do major modifications, amend sanctioned plan duly
approved by the competent authority, after getting RERA approval and
obtaining prior written consent from at least 2/3rd of Allottees,
2. the promoter can modify, amend sanctioned plan during execution of a real
estate project after RERA approval
3. without obtaining prior written consent from at least 2/3rd no. of Allottees,
4. the promoter can modify, amend sanctioned plan after getting approval from
the local authority

76
356. What is the period for which the promoter is liable for any structural
defects, Section 14(2)?
a. 5 years
b. 4 years
c. 3 years
d. 2 years

357. Under section 13, any promoter shall accept -------------------------- as an

advance payment, from a buyer?
1. Maximum of 10% of the cost of the apartment, as an advance payment,
from a buyer without first entering into a written agreement for sale and
register the same
2. 15% of the cost of the apartment, plot, or building, as an advance payment, from
a buyer
3. Sum more than 10% of the cost of the apartment, plot, or building, as an
advance payment, from a buyer
4. Sum less than 15% of the cost of the apartment, plot, or building, as an advance
payment, from a buyer

358. As per Section 4(2) (l) (D, it is obligatory for promoters to deposit in a
separate account to cover the cost of land and construction a sum of ----------
the money collected from buyers for a particular project
1. a.70% of the money
2. b.60% of the money
3. c. 65% of the money
4. d. Nothing specific

359. The money collected from buyers for a particular project can be withdrawn
only after -----------------------
1. Certification from an engineer.
2. Certification from an architect

77
3. Certification from a chartered accountant
4. Certification from all the three

360. Under Section 16, it is obligatory for all the promoters to obtain insurance
for ----------
1. in respect of title of the land and buildings and construction of every
project
2. in respect of title of the land
3. in respect of buildings
4. in respect of construction of every project

361. Under Section 15(1), the promoter ----------------- transfer or assign his
majority rights and liabilities in respect of a real estate project to a third party
1. shall not transfer or assign his majority rights and liabilities of a real estate
project to a third party without obtaining prior written consent from at least 2/3rd no.
of Allottees,
2. shall not transfer or assign his majority rights and liabilities of a real estate
project to a third party without obtaining prior written consent from at least
2/3rd no. of Allottees except the promoter, and without the prior written
approval of RERA
3. can transfer without the prior written approval of RERA
4. can transfer without the prior written approval of RERA or obtaining prior written
consent from at least 2/3rd of Allottees

362. As per Section 59(2), if a promoter continues to violate the provisions of

Sec 3, ------------
1. he shall be punished with imprisonment for a term which may extend to three
years or fine which may extend to 10% of the estimated cost of the project
2. he shall be punished with imprisonment for a term which may extend to three
years
3. fine which may extend to 10% of the estimated cost of the project

78
4. he shall be punished with imprisonment for a term which may extend to
three years or fine which may extend to 10% of the estimated cost of the project
or both

363. Under Section 63, if a promoter fails to comply with orders or directions
of RERA, ---------
1. he shall be liable to a penalty, up to 5%, of the estimated cost of the project
2. he shall be liable to a penalty, up to 10%, of the estimated cost of the project
3. he shall be liable to a penalty, which may extend up to 5%, of the estimated
cost of the project as determined by the Authority
4. No such regulation

364. As per Section 64, if a promoter fails to comply with orders of the
Appellate tribunal, -----
1. He shall be punished with imprisonment for a term which may extend to three
years or fine which may extend to 10% of the estimated cost of the project
2. he shall be punished with imprisonment for a term which may extend to three
years
3. Fine which may extend to 10% of the estimated cost of the project
4. He shall be punished with imprisonment for a term which may extend to
three years or fine which may extend to 10% of the estimated cost of the project
or both

365. Whether the promoter can entertain a court proceedings and can get an
injunction?
1. As per Section 79, no civil court shall have jurisdiction to entertain any suit or
proceeding in respect of any matter which RERA
2. Appellate Tribunal is empowered by or under this Act to determine and no
injunction shall be granted
3. Both (a) & (b) are correct
4. No such regulation

79
EASEMENT ACT

366. If owner of plot A with house has a right of way over his neighbour’s plot
B for beneficial enjoyment of house, owner A is called ____.
1. Co-owner
2. Dominant owner
3. Joint owner
4. Servient owner

367. Easement apart from the -------------------------heritage can’t be transferred

1. Co-ownership
2. Dominant ownership
3. Joint ownership
4. Servient ownership

368. An Easement is imposed on property, that property is called------------------

1. Co-ownership
2. Dominant ownership
3. Joint ownership
4. Servient ownership

369. A’ dedicates to the public the right to occupy the surface of certain land
for the purpose of passing and re-passing. It is considered as ------------------
1. Not an easement
2. An easement
3. Unlawful usage
4. None of the above

370. A right annexed to B's house to receive light by the windows without
obstruction by his neighbour ‘A’. This is a ------------------------
1. Continuous easement.
2. Discontinuous easement
80
3. Apparent easement
4. Non-apparent easement

371. Under Section 5 of the Easement Act, right of way annexed to A's house
over B's land
1. Continuous easement.
2. Discontinuous easement
3. Apparent easement
4. Non-apparent easement

373. Under Section 52 of the Easement Act, License is

1. Granting of a permission to use the land
2. For consideration of a fee subject to the conditions
3. For a specific time
4. All the above

374. Under Section 52 of the Easement Act, License is --------------

1. For exclusive possession
2. does not create or transfer an interest in the land
3. not transferable and revocable
4. All the above

375. Under Section 54 of Easement Act, Grant of license -----------

1. May be expressed
2. May be implied
3. May be expressed or implied
4. May not be

376. Under Section 57 of Easement Act, Grantor's duty to ---------------- defects

1. Disclose
2. Not to disclose

81
3. Not necessary
4. Duty of the licensee

377. Under Section 58 of Easement Act, the grant control render the property,
which is?
1. Safe
2. Unsafe
3. Danger
4. Unsafe and danger

378. Under Section 61 of Easement Act, Revocation of the licensed property is

----------
1. Expressed or implied
2. Expressed only
3. Implied only
4. None of the above

379. The licensed premises has to be valued only by -----------------

1. Land and building method
2. Sales comparison method
3. Rent capitalization method
4. Net profit of the business

380. Ownership rights under licensed properties

1. Transferred
2. Not transferred
3. Pledging rights
4. Power to make improvements

381. Tenancy period under licensed properties

1. Limited to 5 years

82
2. As per license agreement
3. Cannot be stipulated
4. Rest only with the licensee

382. The value of the licensed property is done by

1. Cost approach
2. market approach
3. Any other method
4. income approach

383. The revocation of licensed property is not applicable

1. Granted for a limited period
2. when licensee is not releasing
3. Licensee becomes absolute owner
4. License is unbroken for 20 years

THE TRANSFER OF PROPERTY ACT, 1882

384. When the Transfer of Property Act came in to force?

1. 01st July 1882
2. 01st June 1982
3. 01st July 1982
4. 01st June 1882

385. As per which Section of Transfer of Property Act are against those
provisions of Mohammedan law?
1. Section 13
2. Section 14
3. Section 13 and 14
4. Section 129

83
386. The Mohammedan law of gift is expressly saved by -------------------- of
Transfer of Property Act.
1. Section 13
2. Section 14
3. Section 13 and 14
4. Section 129

387. As per Transfer of Property Act Mohammedan gift is subject to --------------

---
1. No writing is necessary
2. Delivery of possession is essential
3. No writing is necessary, but delivery of possession is essential
4. Writing is necessary and delivery of possession is not essential.

388. According to Transfer of Property Act, 1882 Instrument means

1. Non-testamentary instrument
2. Testamentary instrument
3. Testamentary and non- testamentary instrument
4. None of the above.

389. Under the Transfer of Property Act, 1882, the term "attested" means
1. Attested by two or more witnesses
2. Attested by one witness only
3. Attested by two witnesses only
4. No condition prevails.

390. Within the meaning of provisions of the Transfer of Property Act, 1882,
the immovable property does not include:
1. Standing timber or grass
2. Standing timber, jewelry and crops
3. Standing timber, growing crops or grass

84
4. only grass.

391. The chapters and sections of the Transfer of Property Act, 1882, which
relate to contracts shall be part of:
1. Indian Registration Act, 1908
2. Sale of Goods Act, 1930
3. General Clauses Act, 1897
4. Indian Contract Act, 1872.

392. under the provisions of section 9 of the Transfer of Property Act, 1882 the
transfer includes-
1. Can be an oral transfer
2. written transfer only
3. (a & b) is correct
4. Only (b) is correct.

393. Rules against the perpetuity is provided in section …of the Transfer of
Property Act, 1882
1. 14
2. 15
3. 16
4. 17

394. The provision of vested interest is provided in:

1. Section 18
2. Section 19
3. Section 20
4. Section 21

395. According to the provisions of section 19 of the Transfer of Property Act,

1882

85
1. The vested interest is not defeated by the death of the transferee before
he obtains Possession
2. Vested interest is defeated by the death of transferee before he obtains
possession
3. No such provision is made
4. None of the above.

396. Under the provisions of the Transfer of Property Act, 1882, the unborn
person acquires vested interest on transfer for his benefit:
1. Upon his birth
2. 7 days after his birth
3. 12 days after his birth
4. No such provision is made in the Act.

397. Under the provisions of the Transfer of Property Act, 1882 an unborn
person acquires vested interest on transfer upon his birth, although
1. He may not be entitled to the enjoyment immediately on his birth
2. He is entitled after 7 days after his birth
3. No such provision is made
4. None of the above.

398. According to section 5 of the Transfer of Property Act, 1882, living person
includes:
1. Company or association or body of individuals
2. Individual human being only
3. Only important company or associations
4. None of the above.

399. As per the provisions of the Transfer of Property Act, 1882, all interest in
property restricted in its enjoyment to the owner personally cannot be
transferred by him

86
1. The statement is true
2. The statement is false
3. The statement is partly true
4. None of the above.

400. under the provisions of section 6 of the Transfer of Property Act, 1882, a
right to future maintenance
1. Can be transferred
2. cannot be transferred
3. No such provision is made in the Act
4. None of the above.

401. Under the Transfer of Property Act, 1882 transfer of property cannot be
made for
1. A public office
2. A public office can be transferred
3. Such provision is absent in the Act
4. None of the above.

402. The term "transfer" under the Transfer of Property Act, 1882, refers to
1. Partly or whole transfer
2. Absolute or conditional transfer
3. Contingent transfer
4. Both (a) and (b) are correct.

403. Before the commencement of the Transfer of Property Act, 1882, the
transfer of immovable properties in India were governed by the
1. Principles of English law and equity
2. Indian Registration Act, 1908
3. British State of Goods Act, 1880
4. Indian Contract Act, 1872.

87
404. Under the Transfer of Property Act, 1882, registered pertains to
1. Registration of property
2. Registration of documents
3. Registration of parties
4. None of the above.

405. Under the provisions of section 6 of the Transfer of Property Act, 1882,
the chance of an heir-apparent succeeding to an estate, the chance of a
relation abstaining a legacy on the death of a kinsman, or any other mere
possibility of like nature:
1. Cannot be transferred
2. Can be transferred
3. Can be transferred subject to certain conditions
4. None of the above.

406. Under the provisions of section 6 of the Transfer of Property Act, 1882, a
mere right of re-entry for breach of a condition subsequent cannot be
transferred to anyone except the owner of the property affected thereby
1. The statement is true
2. The statement is false
3. The statement is partly true
4. None of the above.

407. According to the provisions of the Transfer of Property Act, 1882, an

easement cannot be transferred apart from the dominant heritage
1. The statement is true
2. The statement is false
3. The statement is partly true
4. None of the above.

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408. As per the provisions of section 6 of the Transfer of Property Act, 1882,
future maintenance-------------------------
1. Mere right to future maintenance can be transferred
2. cannot be transferred
3. No such provision is made in the Act
4. None of the above.

409. Under the provisions of the Transfer of Property Act, 1882, right to sue
1. A mere right to sue can be transferred
2. A mere right to sue cannot be transferred
3. No such provision is made in the Act
4. None of the above.

410. Under the Transfer of Property Act, 1882

1. The salary of a public officer can be transferred
2. No such provision
3. The salary of a public officer cannot be transferred
4. None of the above.

411. Under the provisions of section 6 of the Transfer of Property Act, 1882, no
transfer can be made for an unlawful object or consideration within the
meaning of section 23 of the Indian Contract Act, 1872
1. The statement is false
2. The statement is true
3. The statement is partly true
4. None of the above.

412. The term "transfer" under the Transfer of Property Act, 1882, refers to
1. Partly or whole transfer
2. Absolute or conditional transfer
3. Contingent transfer

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4. Both (a) and (b) are correct.

413. The provisions of conditional transfer is provided in the Transfer of

Property Act, 1882
1. Section 25
2. Section 26
3. Section 27
4. Section 29.

414. The rule of election under the Transfer of Property Act, 1882, as applied
to Will is enacted in sections 180 and 192 of the:
1. Indian Succession Act, 1925
2. Indian Registration Act, 1908
3. Sale of Goods Act, 1930
4. General Clauses Act, 1897.

415. Sale as per Section 54 of Transfer of Property Act defined as ----------------

1. Transfer of ownership
2. For a price paid or promised
3. Part-paid and part promised
4. Transfer of ownership in exchange for a price paid or promised or Part-
paid and part promised

416. Sale for tangible immovable assets can be made by ----------------------

1. Rs 100 or more to be done by a registered instrument
2. Less than Rs 100 to be done by delivery of property
3. More than Rs 100 to be done by delivery of property
4. Rs 100 or less to be done by a registered instrument

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417. When the purchase-money has been paid, where the whole of property is
sold to different buyers, whereas when the seller retains any part of the
property comprised in documents, he is entitled to ---------------------------
1. Retain the documents, or hand over to the buyer of greatest value is
entitled to such documents
2. Retain the documents
3. Hand over the documents to greatest value is entitled to such documents
4. None of the above

418. Document is not necessary if value of immovable property is less than---

1. Rs.100
2. Rs 1000
3. If by delivery
4. If held in possession

419. A mortgagee shall have a right to cause the mortgaged property to be sold
and the proceeds of sale to be applied, in payment of the mortgage-money,
when the mortgage is under ------------
1. Simple mortgage
2. Conditional mortgage
3. English mortgage
4. Anomalous mortgage

420. Mortgagor sells the property on condition that on default of payment of

the mortgage-money on a certain date the sale shall become absolute, or on
condition that on such payment being made the sale shall become void. This
mortgage is called ----------------
1. Simple mortgage
2. Conditional mortgage
3. English mortgage
4. Anomalous mortgage

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421. Where the mortgagor binds himself to repay the mortgage-money on a
certain date, and transfers the mortgaged property absolutely to the
mortgagee, but subject to a proviso that he will re-transfer it to the mortgagor
upon payment of the mortgage-money as agreed, the transaction is called an
------------------------
1. Simple mortgage
2. Conditional mortgage
3. English mortgage
4. Anomalous mortgage

422. Where the mortgagor delivers to a creditor documents of title to

immoveable property, with intent to create a security thereon, the transaction
is called
1. Mortgage by deposit of title deeds
2. Simple mortgage
3. Conditional mortgage
4. English mortgage

423. In mortgage contract any condition that prevents the mortgagor from
getting back his property after the mortgage debt has been paid will be ---------
----
1. Invalid
2. valid
3. void
4. voidable

424. At any time after the principal money has become due the mortgagor has-
1. Right of redemption
2. Has no rights
3. only by the Court decisions
4. None of the above

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425. Statement on Clog on redemption means --------------
1. Any clause which restricts the mortgagor from receiving the property back from
the mortgagee.
2. Any condition which prevents the mortgagee from receiving the property is void
3. Any restriction on the right of redemption is void.
4. All the above

426. Rights on redemption means

1. Right of Redemption is available from the date of execution - No time specified
2. There must be demand and from the date mortgagor can redeem at any time. -
Debt payable on demand:
3. The money only due after specified date then from the date redemption starts. -
Term is fixed:
4. All the above

427. A mortgage is a transfer of an interest in a specific immovable property

for the purpose of securing __________.
1. Payment of money advanced by way of loan
2. Fully paid up debts
3. Transfer of ownership of property
4. Transfer of rights to sublease

428. A gives Rs. 5,00,000 to B on condition that he shall marry A’s daughter C.
At the date of transfer, C was dead. The transfer is void ______.
1. It is forbidden by the law
2. Court regards it as immoral or opposed to public policy
3. It is impossible to fulfil the condition
4. It is immoral transfer

429. Which of the following is not correct about ‘surrender of lease’?

1. Premature termination by lessee
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2. Unilaterally terminated by a lessee
3. Terminated with the consent of the lessor
4. It can happen post expiry of the lease

430. Under Section 100 of the Transfer of Property Act, a ——------ only gives a
right to payment out of a particular immovable property without transferring it
1. Charge
2. Assignment
3. Lien
4. None of the above

431. What are the essentials of charge?

1. There must be immovable property
2. It may be made security
3. Such security must be to secure the payment
4. All the above

432. Which provision is effected of charge?

1. Simple mortgage
2. Conditional mortgage
3. English mortgage
4. Anomalous mortgage

433. A lease of immovable property from year to year or exceeding can be by -

1. Oral agreement
2. Unregistered instrument
3. Registered instrument
4. Written statement

434. Head lessee subleases the property and he receive the rent and it is called
as---------

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1. Head rent
2. Standard rent
3. Differential rent
4. Monopoly rent

435. A gift to two or more donees of whom one does not accept it. Then the
gift is -----
1. Void as to interest which he would have taken had he accepted
2. Valid as to interest which he would have taken had he accepted
3. Voidable at the option of the donor
4. Valid at the option of receiver

436. What is the not a definition of sale as per section 54?

Ownership transfer in exchange for price
Sale by registered instrument.
Contract for sale & delivery of possession
Sale by conditions or by minor

437. As per Section 58 what is not a mortgage?

1. Transfer of an interest in specific purpose
2. securing the loan payment advanced
3. For an existing or future debt liability
4. Lien on a fixed deposit

438. Who is called a mortgagor?

1. Account holder
2. Banker
3. Sundry Creditor
4. Person pledging an interest

439. Who is called a mortgagee?

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1. Account holder
2. Person securing loan advanced
3. Sundry Creditor
4. Person pledging an interest

440. What is called a mortgage money?

1. Sundry Credits
2. loan advanced
3. Principal +interest on loan secured
4. interest security

441. What is called a mortgage deed?

1. Transfer deed for loan secured
2. loan statement
3. Lien document on deposits
4. interest statement

442. What is not called a simple mortgage?

1. Mortgagee’s right to sell mortgaged property
2. Possession not delivered
3. Sale by court for mortgage-money
4. Right for private or conditional sale

443. When does a mortgage by conditional sale become non-effective?

1. On default of mortgage-money payment
2. Sale is void if the mortgagor pays
3. Mortgaged property buyer has to retransfer the property when loan is fore closed
4. If sale conditions are not there in the mortgage deed

444. The Local body authorities for nonpayment of statutory taxes, has taken
land of a company as security and mortgaged towards the taxes due to them.

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Till the time of repayment of taxes it enjoys the land and derived the benefits
and adjusted towards the company’s dues to them. What is the type of
mortgage?
1. Simple mortgage
2. Conditional Sale
3. Usufructuary mortgage
4. English mortgage

445. What transaction is not called an English mortgage?

1. Mortgagor transfers property for loan
2. mortgagee has absolute right
3. Re-transfer it to mortgagor on receipt of mortgage-money payment
4. mortgagee’s right on the property is not transferred

446. What is called Anomalous mortgage?

1. Simple mortgage
2. title-deeds deposit & conditional sale
3. Usufructuary / English mortgage.
4. Combination of all types or others

447. What is not called Subrogation?

1. Substitution of mortgagor by any creditor.
2. Other’s Right to redeem or close
3. Substitution by any co-mortgagor.
4. Only mortgagor can redeem or close

448. As per Section 96, mortgage done by deposit of title-deeds is called as?
1. Simple mortgage
2. Conditional Sale
3. Usufructuary mortgage
4. English mortgage

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449. As per Section 118, Exchange is not defined by:
1. 2 persons mutual transfer a thing to another
2. value both things being money only
3. As if it is made as sale by transfer
4. 2 persons transfer ownership

450. As per Section 122, who is called a donor?

1. Person who donates voluntarily / without consideration
2. Acceptance made during lifetime
3. Who is still capable of giving?
4. Person who receives

451. As per Section 122, who is not called a donor?

1. Person who donates voluntarily / without consideration
2. Acceptance made during lifetime
3. Who is still capable of giving?
4. Person who receives

452. When the gift will not become void?

1. If the donee dies before acceptance
2. Gift with existing & future property
3. Acceptance must be during lifetime of donor
4. Gift of many things accepted fully

453. What are relatively amenable to assignment?

1. Mortgages
2. lending contracts
3. Lender’s duties are limited
4. legal counsel

454. What are rights conferred in assignment?

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1. Transfer of rights held by the assignor
2. assignee involvement in a contract
3. Transfer of an equitable interest
4. Non-consent of non-assigning party

455. When revocability of a gifted assignment cannot be carried out?

1. if the obligor has already performed
2. assignee is in custody of investments
3. Assignor’s death or bankruptcy.
4. Contract having non-assignment clause

456. When a lien is not called as common-law lien?

1. right to retain & cannot be transferred
2. no power of sale
3. If law conferring sale power
4. If surrendered & contract sale

457. What is the law by which the property acquisition cannot be made?
1. Government Grants act 1895
2. Indian succession Act, 1925
3. Indian Limitation act 1963
4. Indian Easement Act, 1882

458. What is the act that governs grant?

1. Government Grants act 1895
2. Indian succession Act, 1925
3. Indian Limitation act 1963
4. Transfer of Property Act, 1882

459. How Government land is transferred?

1. Assignment

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2. Will
3. adverse possession
4. Gift

460. What is the Method of assignment?

1. Assignment by issue of patta
2. Will
3. Adverse possession
4. Gift

461. Property types not normally assigned by Government?

1. Mining lands
2. Quarries
3. Settlement lands
4. Town property

462. What is the act that governs succession?

1. Government Grants act 1895
2. Indian succession Act, 1925
3. Indian Limitation act 1963
4. Transfer of Property act, 1882

463. What is the law that is not governing succession?

1. Indian succession Act, 1925
2. Hindu Succession act
3. Mohammedan law of Succession
4. Transfer of Property act, 1882

464. Which person cans acquire ownership by succession?

1. Property owner
2. Owner’s legal heir

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3. Under adverse possession
4. Trespasser

465. Which is not the way for property transfer to owner’s legal heir?
1. Will
2. Lease
3. Gift
4. Settlement

466. An adverse possession is governed by which law?

1. Indian succession Act, 1925
2. Government Grants act 1895,
3. Laws of prescription of Indian limitation act
4. Transfer of Property act, 1882

467. What is not an adverse possession or acquisition of ownership by

prescription?
1. Trespasser possession
2. having an adverse possession
3. Tenant Holding for 12 or more years
4. Enjoyment for below 12 years

468. Which act governs the Conveyance of property?

1. Indian succession Act, 1925
2. Government Grants act 1895,
3. Laws of prescription of Indian limitation act
4. Transfer of Property act, 1882

469. Which are not the methods of conveyance?

1. Property transferring to a person
2. Title deed execution

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3. Conveying rights
4. adverse ownership acquisition

470. What are not the methods of conveyance?

1. Will, Gift, Settlement, Lease
2. Title deed & property delivery
3. Conveying rights
4. adverse ownership acquisition

471. What is an Immoveable property as per transfer of Property Act?

1. Standing timber
2. Growing crops or grass
3. Transport vehicle
4. Imbedded to earth – building

472. Which is not required for registration of property in transfer?

1. A Registered document
2. Physical delivery of property
3. Attestation of Witnesses for registration
4. Property ownership possession

473. Who are not eligible for registration of property in transfer?

1. Companies
2. Associations of persons
3. One or more living persons
4. mentally retarded/ legally disqualified

474. Definition of an Ownership is not?

1. Relation of a person with a thing
2. Rights, Privileges and liberties
3. Confer in a person as per law

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4. An Illegal property possession

475. Ownership is not?

1. A bundle of rights
2. special / limited rights
3. Liberties and power
4. holding a property illegally

476. What are not corporeal rights?

1. Right on tangible assets
2. Right on material objects
3. Right on movable & immovable properties
4. Rights is on intangible assets

477. What are not corporeal rights?

1. Transport vehicle or car
2. Land & Building
3. Plants & Machineries
4. Rights on intangible assets

478. What are not incorporeal rights?

1. Rights on tangible assets
2. Copyrights, patents, trademarks
3. Leasehold rights
4. Firm goodwill

479. What is sole ownership?

1. A person owning a thing
2. two persons owning a thing
3. Exclusive ownership of a company
4. a trust owning a property

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480. What is Co-ownership or concurrent ownership?
1. A person owning a thing
2. two persons owning at the same time
3. Exclusive ownership of a company
4. a trust owning a property

481. What is trust and beneficial ownership?

1. Held solely for the benefit of the trust
2. 2 persons owning at the same time
3. Exclusive ownership of a company
4. a person owning a thing

482. In a trust - ownership is for?

1. Right of Trustee on land ownership
2. solely for trust beneficial enjoyment
3. Legal ownership of the property
4. Exclusive ownership of the trust

483. What is an absolute ownership?

1. Trustee on land ownership
2. clear, perfect title, vested ownership
3. Legal ownership of the property
4. Exclusive ownership

484. What is a contingent ownership?

1. Trustee’s land ownership
2. conditional right, with limitations
3. Legal ownership of the property
4. Exclusive ownership

485. Which is not a Possession by fact?

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1. Actual control over a thing
2. physical control over a thing
3. Legal control over a thing
4. de-facto possession

486. Which is not a Possession by law?

1. Possession recognized.
2. Possession protected by law
3. De-jure possession.
4. Actual & physical possession

487. Which is not a Possession legality?

1. Prima facie evidence.
2. Confirmation of title ownership
3. Transfer of ownership
4. Illegal possession

488. Which is a Corporeal Possession or a direct and primary Possession?

1. Owner of a building, car, factory.
2. Copyrights, patents, trademarks
3. Leasehold rights
4. Firm goodwill

489. What is a Representative Possession?

1. Owner of a building, car, factory.
2. Copyrights, patents, trademarks
3. Servant holding owner’s money
4. Leasehold rights / Firm goodwill

490. What is a Concurrent Possession?

1. Sole owner of a building, car & factory.

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2. Copyrights, patents, trademarks
3. Leasehold rights / Firm goodwill.
4. by 2 persons jointly at the same time

491. What is an Adverse Possession?

1. Sole owner of a building, car & factory.
2. Copyrights, patents, trademarks
3. Leasehold rights / Firm goodwill.
4. Undue owner’s rights claim by other person not having the right

492. Transfer of property act, 1882 will apply to?

1. Transfer by government
2. Non-living person
3. By will
4. conveyance of property

493. Transfer of property act, 1882 will apply to?

1. Operation of law by court
2. release deed
3. Relinquishment deed
4. conveyance of property

494. Transfer of property act, 1882 will apply to?

1. Life estate surrender
2. family arrangement
3. Partitions
4. conveyance of property

495. As per Transfer of property act, 1882, properties that can be transferred?
1. Succession by legal heir-ship
2. Tenancy rights of occupancy
3. Right of entry or breach of conditions
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4. clear perfect title ownership

496. As per Transfer of property act, 1882, properties that can be transferred?
1. Easement rights
2. enjoyment rights
3. Rights to sue in a court
4. clear perfect title ownership

497. As per Transfer of property act, 1882, properties that can be transferred?
1. Public building
2. salaries or stipends
3. To a person legally disqualified
4. clear perfect title ownership

498. Conditional transfer as per Sec. 25 can be possible if?

1. Forbidden by law or immoral conditions
2. fraudulent conditions
3. Implies injury to person or property
4. condition is possible & can be fulfilled

499. Transfer as per Sec. 53 does not means fraudulent if?

1. Intention to delay the transferor
2. with fraudulent conditions
3. Transfer with consideration done
4. intention to defraud by reason

500. What is the condition not stipulated in Sec. 53

1. Contract to transfer with consideration
2. Transferor must write & sign.
3. Preventing fraud by the parties.
4. Permitting fraudulent transfers

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501. Lease requires registration as per the
1. Government Grants act 1895
2. Indian succession Act, 1925
3. Indian Limitation act 1963
4. Transfer of Property Act, 1882

502. Where rent reserved in an occupational lease is less than the market
rental value, it is called -------------------------------------------
1. Head rent
2. Standard rent
3. Virtual rent
4. Acknowledge rent

SUCCESSION ACT

503. The Hindu Succession Act, 1956 does not apply to ______.
1. A follower of the Arya Samaj
2. A Sikh by religion
3. A child of whose parents are Jains by religion
4. A person who is a convert to Christian

504. Which of the following items cannot be transferred under

Inheritance/Succession laws in India?
1. Personal movable property
2. Jewelry
3. Property not owned by self
4. Personal belongings

505. In case of a female intestate dying without issue but leaving her husband-
1. A husband will take all property
2. A husband will not take any of the property

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3. A husband will take all property except property inherited from her father
or mother
4. A husband will only take 25 per cent of her property

506. Under sec 60 of Indian succession act, who can appoint a guardian or
guardians for his child during minority?
1. Father
2. Mother
3. Uncle
4. Friends

507. A widow who is willed the use of family home for the rest of her natural
life, with provision that title shall pass to children upon her death holds.
1. Easement interest
2. Life interest
3. Freehold right
4. Leasehold right

508. Which of following statement is true regarding Hindu succession

(amendment) Act 2005.
1. Women can now act as Karta of joint Hindu family.
2. Women cannot act as Karta of joint Hindu family before or after passing of the
Hindu
3. Succession (amendment) Act 2005.
4. Women cannot become Karta of joint Hindu family.

509. Under sec 61 of Indian succession Act, A will or any part of a will, which
has been caused by fraud and which takes away the free agency of the testator,
is -------------
1. Illegal 2. Valid 3. Voidable 4. Void

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 RECENT IBBI QUESTIONS

510. In the case of______________, either outflow of resources to settle the

obligation is not probable or the amount expected to be paid to settle the
liability cannot be measured with sufficient reliability.
1. Liability
2. Provision
3. Contingent liabilities
4. Contingent assets

511. ___________ refers to a situation where any person or a body corporate

is unable to fulfil its financial obligations (often occurring due to several
factors such as a decrease in cash flow, losses and other issues).
1. Insolvency
2. Bankruptcy
3. Liquidation
4. Acquisition

512. ________ is a situation whereby a court of competent jurisdiction has

declared a person of other entity insolvent, having passed appropriate orders
to resolve it and protect the right the creditors
1. Insolvency
2. Liquidation
3. Acquisition
4. Bankruptcy

513. Deflation is-----------------------------------:

1. Deficit budget
2. Reduction in taxation
3. Contraction in volume of money or credit that results in a decline of price
level

110
4. Increase in public expenditure

514. under sec 2(n) of RERA ‘common areas’ mean----------------------------------

1. Open parking areas
2. Terraces
3. Staircase
4. Open parking space, terraces, and staircase

515. Question of onus of proof when both parties lead evidence

1. TRUE
2. FALSE
3. Will vary
4. Need not be

516. X transfers Rs.500 to Y on condition that he shall execute a certain lease

within three months after V’s death, and, if he should neglect to do so to Z, if
Y dies in X’s life time,
1. The disposition shall not take effect in favour of Z
2. The disposition in favour of Z takes effect
3. The disposition requires further conditions
4. The disposition in favour of X takes effect

518. Premature termination of lease is major __________ factor affecting the

value of leasehold property,
1. Physical
2. Legal
3. Social
4. Economic

519. A monopoly market will usually generate: -------------------

1. Higher prices and lower output

111
2. Higher prices and higher output
3. Lower prices and lower output
4. Lower prices and higher output

520. Cost prior to remediation specifically when no option is available except

waiting for the sanction from the authority and keeping the part of the property
under non-use, is said to be _____________,
1. Cost of utility
2. Cost of disruption
3. Cost of control
4. Cost to public liability

521. Which of the following represents getting back of capital invested in a

property
1. Net income generation
2. Gross income generation
3. Redemption of capital
4. Accumulation of capital

522. Hypothetical building scheme is normally used for estimating value of

_________
1. Large size open land
2. Property with underutilized FSI on the plot
3. Industrial structure
4. Residential flats

523. According to NPV method projects that would be acceptable must have
1. Zero net present value
2. Negative net present value
3. Positive net present value
4. Internal rate of return in positive

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524. Which one of the following is the largest employer in India?
1. Primary sector
2. Secondary sector
3. Tertiary sector
4. IT sector

525. Which of the following is recreational use of land under zoning

regulation?
1. Playgrounds
2. Parks in residential society
3. Flower gardens and fruit farms
4. Hotels

526. Project’s expected monetary loss or gain by discounting all cash

outflows, using required rate of return is classified as?
1. Net present value
2. Internal rate of return
3. Net discounted value
4. Net future value

527. Which of the following factor is not relevant to the value estimation by
considering the highest and best use of property?
1. Reasonably probable future use
2. Physically possible use
3. Financially feasible use
4. Present inferior user of property

528. Hypothetically plotting scheme is mainly used to value-------------

1. Large open land
2. Flats
3. Industries
4. Residence
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529. Depreciation fund/sinking fund method is designed to:
1. Only provide for depreciation of an asset
2. Provide for depreciation & also to accumulate the amount for its
replacement
3. Provide for the payment of some liability
4. To accumulate the amount of its replacement

530. Market value of an object depends upon the future _________ that can be
derived out of it.
1. Benefits
2. Demand
3. Supply
4. Loan

531. Under profit method of valuation income is generated from __________

1. Only tangible assets
2. Both tangible and intangible assets
3. Only intangible assets
4. Only movable assets

532. These are kinds of rent except----------------------------

1. Differential rent
2. Scarcity rent
3. Mobility rent
4. Location rent

533. Inflation ------------------------------------

1. Always reduces the cost of living
2. Always reduces the standard of living
3. Reduces the price of products
4. Reduces the purchasing power of a rupee

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534. Induce investment __________ with increase in income and _________
with decrease in income
1. Decrease, increase
2. Increase, decrease
3. Increase, remain same
4. Decrease, remain same

535. under discounted cash flow method, value of the property increase with
_________
1. Higher property tax
2. Higher capitalization rate
3. Lower discount rate
4. Reduced income flow

537. What is public sector?

1. Sector run by people
2. Sector run by government
3. Sector run by co operation
4. International sector

538. Which one of the following actions should be done by valuer if he has
knowledge of any prior valuer having been appointed before accepting the
assignment?
1. Communicate in writing with prior valuer
2. Reject the valuation assignment
3. Carry out the valuation assignment and arrive at conclusions which are within
range of reasonableness of conclusions arrived by prior valuer
4. Carry out the valuation assignment and arrive at independent conclusions
without knowledge of a prior valuer

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539. What do you mean by the value of an asset to a particular owner or the
prospective owner for individual investment or operational objectives?
1. Synergic value
2. Equitable value
3. Investment value
4. Market value

540. Which one of the following statement is the responsibility of valuer in case
of value dispute?
1. Prepare plan of property
2. Prepare machine drawings
3. Meet regulatory authorities for value discussions
4. Substantiate his valuation report by providing relevant supporting
evidence

541. The three broad types of productive resources are:

1. Money profit and interest
2. Capital, labour and natural resources
3. Bond, stock shares and deposits
4. Technology, human capital and markets

542. Under sec 54 of the Indian Easements Act the grant of a licence may be
1. Express only
2. Implied only
3. Express or implied
4. Oral only

543. The internal rate of return (IRR) is _________

1. The amount which Re 1 invested today will become after some time at a certain
rate of interest
2. The actual return obtain from an investment

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3. So calculated that future discounted receipts and discounted payments always
show profit
4. A rate fixed by the reserve bank of India above which lending cannot be done
by any bank

544. Which of the following is not a duty and function of the valuer?
1. To verify ownership in document and occupancy on actual site
2. To identify plot number in document as well as on site
3. To be responsible for correctness of survey findings by his assistant
4. To investigate title to the property to be valued

545. Which of the following is not relevant while estimating market value of
property with improvements?
1. Continuation of existing use
2. Cost of repair carried out few years back
3. Adaptation to another use
4. Demolition and redevelopment

546. Sec 60 under transfer of act, affirms a right of redemption

1. All mortgage
2. In some particular mortgage
3. Not in a single mortgage
4. In some pledge

547. Which of the following is not physical factor and affects the value of the
property?
1. Annual maintenance
2. Gross domestic products
3. Property location
4. Neighbourhood properties

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548. Economic obsolescence can be explained as___________
1. Physical determination
2. Loss in value due to external factors
3. A loss in value due to poor design
4. Repairable damage

549. Which of the following project should an investor choose on the basis of
Net present value results?
1. Zero is the NPV of project
2. INR (-) 1000 Million is the NPV of project
3. INR (+) 2000 Million is the NPV of Project
4. INR (+) 2200 Million is the NPV of project

550. After the institution of a suit for partition by a member of the joint family-
1. Subsequent birth in the family diminish his share
2. Subsequent death in the family augment his share
3. Subsequent birth and death in the family does not affect share
4. Subsequent renunciation of the family diminish his share

551. The value generated by the income is the characteristic of _____property

1. Marketable investment property
2. Service property
3. Marketable non-investment property
4. Non marketable non-investment property

552. Saving function explain the relationship between ________ and ______
1. Saving, investment
2. Saving, consumption
3. Saving, income
4. Investment, consumption

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553. When the prices of plant and machinery are to be compared, we compute
-----------
1. Value index
2. Price index
3. Volume index
4. Aggregative index

554. Sec 70 under transfer of property act, the natural accession is addition to
the security and becoming incorporated it are subject to --------------------
1. Redemption
2. Not redemption
3. Accession
4. Accretion

555. Interest is paid because----------------------

1. Capital is scarce
2. Capital is productive
3. Capital is attractive
4. Capital is surplus

556. If the machinery costing Rs. 18,000 is sold after 2 years for Rs. 16,000. The
depreciation rate is 10 percent per annum on SLM method, then the profit or
loss from sale of machine is
1. Rs. 3,600 (Profit)
2. Rs. 1600 (loss)
3. Rs. 1600 (profit)
4. Rs. No profit no loss

557. In the notes of fixed assets of a company, closing WDV + Depreciation for
the year is equal to
1. Opening Gross Block
2. Opening WDV
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3. Closing WDV
4. Closing Gross Block

558. Valuer should endeavour to ensure that he/it provides true and adequate
information because
1. This is not required under any law
2. This makes a sensible valuation report
3. This misleads client
4. This misleads public

559. In Indian Polity which one is Supreme?

1. The Parliament
2. Religion
3. The Supreme Court
4. The Constitution

560. Why a valuer, or his relative should not accept gifts or hospitality which
undermines or affects his independence as a valuer?
1. Avoid risk of influence on valuation conclusions
2. This is required as per valuation standards
3. This is required as per guidelines
4. This is in public interest

561. A flat was valued by ‘A’ at Rs. 21 Lakhs and then purchaser ‘B’ purchased
from seller ‘C’ said flat for Rs. 20 Lakhs with the help of broker ‘D’. In a court
case about correct sale value which of the following is not called a ‘witness of
fact’?
1. Purchaser ‘B’
2. Seller ‘C’
3. Broker ‘D’
4. Valuer ‘A’

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562. A building is erected on a leasehold land which has 30 years lease period.
The valuer adopting life of an RCC building on the plot at 30 years is called
1. Life due to legal constrains
2. Obsolescence life
3. Physical life
4. Economic life

563. Infrastructure works like augmentation of road networks & transport

facilities will result in increased _________
1. Environmental deterioration
2. Overall developments
3. Crime rate
4. Withdrawal of capital

564. Which are two value ingredients of a marketable non-investment

property?
1. Liquidity and marketability
2. Liquidity and utility
3. Utility and Marketability
4. Non marketability and Liquidity

565. Value of a property offered for immediate sale by its owner for urgent need
of money to meet with legal obligation is called ________
1. Going concern value
2. Distress value
3. Forced sale value
4. Breakup value

566. Upon paying the amount of loss to the insured, the insurer steps in to the
place of the insured, taking over all his rights is called exercise of ______
1. Right of reinstatement
2. Right of contribution
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3. Right of subrogation
4. Right to salvage

567. Under LARAR Act, market value of acquired land is derived from ________
1. Circle rates
2. Higher of the two: Average Rates under sale instances and Rates fixed for
stamp duty
3. Tate determined by the collector
4. The rate at which the land was initially purchased

568. Sale recorded at Registrar’s office is one of the sources from where------
1. Legal proof for market value of the property can be obtained
2. Sale instances of only leasehold properties can be collected
3. Cost of property can be collected
4. Price of only freehold properties can be collected

569. Which of the following statements best describes the ‘carrying value’ of
an asset?
1. The cost of the asset less its residual value
2. Amount at which the asset is recognized in the balance sheet after
deduction any accumulated depreciation and accumulated impairment losses
3. Net value of asset or value carried in books of account, whichever is higher
4. The higher of the asset’s value in use and its recoverable amount.

570. Depreciated replacement cost of building to the new owner is called _____
to him
1. Price
2. Historic cost
3. Original cost
4. Value

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571. Sec 112 under transfer of property act for waiver of forfeiture, but where
rent is accepted after the institution of a suit to eject the lessee on the ground
of forfeiture, such acceptance --------
1. Is a forfeiture
2. Is not forfeiture
3. Determination of lease
4. Transfer of lease

572. Under RERA at what stage does promoter can advertise his project?
1. After project is registered
2. Before project is registered
3. Either before & after project is registered
4. Neither before & after project is registered

573. Statement that valuer does not have interest in property valued appears
in one of following section of report
1. Declaration
2. Conclusion
3. Assumptions and limiting conditions
4. Summary

574. Which of the following statement is true related to obligation of insured

on notification of a claim
1. To defend the insurer
2. To indemnify the insurer
3. ensure third parties named in policy are notified
4. To investigate / settle potentially covered claim

575. Agreement without consideration is declared-------------------

1. Void
2. Valid

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3. Free consent
4. Enforceable

576. Inflation brings most benefits to which one of the following?

1. Government pensioners
2. Creditors
3. Saving bank account holders
4. Debtors

577. Cost approach is useful mainly for valuing _______.

1. Marketable properties
2. Non-marketable non-investment property
3. Properties which are ready for redevelopment
4. Going concern business

578. All the property value is created by the ________ of the future benefits
the property will provide.
1. Competition
2. Contribution
3. Substitution
4. Anticipation

579. Value is an estimate of _________ as it ought to be

1. Price + Profit
2. Price
3. Cost
4. Offer amount

580. Capital amount paid once in order to receive an annuity of Rs. 1 for a
specified period of time at the specified rate of interest is called _______
1. Net amount

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2. Capital
3. Years purchase
4. Capitalized value

581. Investment in real estate enjoys the benefits of _________.

1. Perfect competition
2. Capital appreciation
3. Divisibility of holding
4. Easy liquidity

582. As per RERA Act under sec 10 (3) if Government acquires multi-crop
irrigated land than ------------------
1. Less value amount of land
2. No cultivable wasteland shall be developed for agricultural purposes
3. A less area o cultivable wasteland shall be developed for agricultural purposes
4. Equivalent area of cultivable wasteland shall be developed for agricultural
purposes

583. The factor which is not to be considered when applying the residual
method of valuation is _________
1. Anticipated price by sale of the finished property
2. Cost of development project
3. Profit motive of the developer
4. Social benefit of the project

584. Estimate of an amount for auction sale is known as _______.

1. Liquidation value
2. Salvage value
3. Net present value
4. Replacement value

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585. Inadequate infrastructure in the locality results in ______ market value of
property
1. Higher
2. Lower
3. Stagnant
4. 50 percent higher

586. No person shall construct any building with its plinth

1. Less than 40 C.Mts.
2. Less than 45 C.Mts
3. Less than 55 C.Mts
4. Less than 35 C.Mts

587. An ownership flat ‘A’ with 80 S.M. Area is in building in by lane. Similar
flat ‘B’ in similar building but located on main road is recently sold at Rs. 95,000
per S.M. If weightage for location is considered at 20 percent, which of the
following will be the fair sake price of flat ‘A’?
1. Rs 7600000
2. Rs 9120000
3. Rs 6080000
4. Rs 5000000

588. As per IBC, 2016, an application against the decision of the liquidator
rejecting the claim of a creditor may be made to
1. The Insolvency and Bankruptcy Board of India
2. The National Company Law Tribunal
3. The committee of creditors
4. The Debt Recovery Tribunal

589. Which of the following economic activity is not in the tertiary sector?
1. Banking

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2. Bee-keeping
3. Teaching
4. Working in a call centre

590. In which of the following methods of depreciation, the depreciated

replacement cost of the building is directly obtained from the formula itself.
1. Written down value method
2. Straight line method
3. Constant percentage method
4. Sinking fund method

591. Which of the following denotes the dividend declared by the directors
between two annual general meetings?
1. Proposed dividend
2. Final dividend
3. Interim dividend
4. Unpaid dividend

592. A property fetches a leaseholder Rs. 30,000 per annum. The rent fixed to
the paid to the superior landlord is Rs. 16,000 per annum. If freeholder expects
a return of 8 percent, then the leaseholder should expect a rate as indicated
below so that he makes a reasonable profit.
1. 0.09
2. 0.07
3. 1.00
4. 0.01

593. Value of a property depends upon the future ______ that can be derived
out of it.
1. Benefits
2. Demand

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3. Supply
4. Cost

594. The W.D.V of an asset after three years of depreciation on the reducing
balance method @ 10 percent p.a. is Rs. 36,450. What was its original value?
1. Rs. 40,000
2. Rs. 50,000
3. Rs. 45,000
4. Rs. 70,250

595. When there are only few sellers of the commodity, the market is called
1. Monopoly
2. Duopoly
3. Oligopoly
4. Monopsony

596. Which of the following investment is having constrains of liquidity?

1. Long term Govt. Securities
2. Immovable properties
3. Shares & stocks
4. Bank FDs

597. As per sec 60A under transfer of property act, Where a mortgagor is
entitled to redemption he may require the mortgage, instead of re-transferring
the property, to assign the mortgage debt and transfer the mortgaged property
to such third person as the mortgagor may direct than the mortgagee.
1. Shall not be bound to assign and transfer accordingly.
2. Shall be bound to assign and transfer accordingly.
3. Is bound if the mortgagor assents
4. Shall not be bound to assign

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598. Supply and demand is considered as ________ aspect affecting the value
of the property.
1. Physical
2. Social
3. Economic
4. Legal

599. Whenever there us a provision to the effect ‘that the court shall presume
a fact’ the court _____. It is compelled to take the fact as provided, i.e., it shall
have to presume the fact.
1. Can exercise its discretion
2. Cannot exercise its discretion
3. May exercise its discretion
4. Will exercise its discretion

600. Which of the following mathematical formula is used to find out Years
Purchase for annuity receivable in perpetuity?
1. 100/Rate of interest
2. 1 / {1-(100/rate of interest) ^n}
3. ((100/rate of interest) ^n)-1
4. {((100/rate of interest) ^n)-1}/rate of interest

601. While valuing assets in which the valuer is not conversant with its features
_______
1. It is advisable to engage the services of an expert and his report need not be
made a part of valuation report
2. It is advisable to engage the services of an expert and the signed report of
the expert be made a part of valuation report
3. He can privately seek the services of such expert and need not disclose in the
report
4. It is enough to mention in report about details of expert engaged.

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602. Which of the following investment finds hedge against inflation
1. Long term Govt securities
2. Bank FD’s
3. Shares & stocks
4. Immovable properties

603. The plots which is connected to main road through a passage is called --
1. Narrow plots
2. Rectangular plots
3. Ribbon plots
4. Tandem plots

604. Who is not a special purchaser of property among the following?

1. Foreign purchaser
2. Relative of the seller
3. Owner of the adjoining plot
4. Director of the company

605. Who can't be registered as a valuer?

1. Company
2. Individual
3. Partnership
4. Society

606. Money is what Money does – who said it?

1. Smith
2. Marshall
3. F.A.Walker
4. Robbinson

130
607. Return of unutilized land to the land owner after ----------years in LARAR
act.
1. 2years
2. 3years
3. 4years
4. 5Years

608. The real GDP is measured in ------- prices & nominal GDP is measured in -
------ prices
1. Base year & Current year
2. Current year
3. Base year
4. Current Year & Base year

609. Which is the safest and earliest liquidity

1. 2% of stock market
2. 10% of Return of Real estate investments
3. 7% of bank FD
4. 30% of promoter’s loan

610. under transfer of property act, the immovable goods does not include:
1. Standing timber or grass.
2. Standing timber, jewellery and crop,
3. Standing timber, growing grass or crops.
4. Only grass.

611. When the Mortgager right to redeem accrues the Mortgagee has a right
to enforce -------------
1. His Security
2. His interest
3. His cash

131
4. His debt

612. in 99 year perpetuity lease, is to be extended for another 99 years

1. Details of age of lessor and lessee
2. Improvements and extra FSI used
3. Date of the year of commencement
4. Date of start first year

613. Section 54 of Easement act the grant of License may -------------------

1. Express only
2. Implied only
3. Express or Implied
4. Oral only

614. Which of the following can be transferred under the Transfer of Property
Act?
1. Easement along with the dominant heritage
2. Political pension
3. Succession
4. Stipends of Government civil pensioners

615. ‘A’ leases land to ‘B’ on condition that he shall walk a hundred miles in
an hour. The lease is _________
1. Valid
2. Void
3. Voidable
4. Illegal

616. 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 -
1. Real investment value

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2. Synergistic value
3. Liquidation value
4. Hope value

617. Onus of proof is a ----------- in the evaluation of evidence

1. Fact
2. Principle
3. Continuous process
4. One time process

618. Which of the following is not the surrender of lease?

1. Premature termination of a lease.
2. Unilaterally terminated by a lessee
3. Terminated with the consent of the lessor
4. If it happens post expiry of the lease

619. Under which of the valuation approach, future cash flows from property
will yield to capitalized value of property?
1. Market approach
2. Income approach
3. Cost approach
4. Depreciated Replacement Cost Method

620. Under Sec 58 of Indian Easements Act the grantor cannot render the
property which is
1. Safe
2. Unsafe
3. Dangerous
4. Unsafe & dangerous

621. Annual Sinking fund to be set aside each year for recouping Rs 1 at the
end of 6 years, at 5 percent rate of interest is represented by formula-----------
133
1. 0.05/ ((1+ 0.05)6-1}
2. {(1+0.05)6+1} / 0.05
3. 5 / (1+ 5)6-1)
4. 0.05 / {(1+0.05)6+1}

622. The important criteria for the selection of the best land in the town is -----
1. More width of road
2. Industrial zone
3. Prime Location and High FSI
4. Residential Zone

623. Which of the following method of valuation is normally adopted to

estimate value of land in the locality where there are absolutely no instances
of land sales available.
1. Profit method
2. Sale comparison method
3. Land & building method
4. Residue Technique of Development method

624. Which of the following is not a natural attribute of a land, but artificially
created by man?
1. Benefits
2. Location
3. Tenure
4. Frontage

625. Costs due to extra supervisory personnel, additional testing, careful

monitoring as well as security is known as ………
1. Cost to operation
2. Cost to control
3. Cost to disruption
4. Cost of construction
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626. Opinion expressed on value for the property by the valuer, as expert
witness, in a valuation dispute case is ---- to the court.
1. Binding
2. Not binding
3. Of No value
4. In form of advice

627. Which of the following distinguish Investment in Real estate vis-à-vis

other forms of investment.
1. Capital erosion
2. Redemption of capital
3. Income generation
4. Solvency

628. Which out of the following is not a reactor that affects demand & supply
or real estate?
1. Economic growth
2. Interest rate
3. Increased population
4. Number of cars in Household

629. The building cost index is worked out by the CPWD on the basis of ------
1. Estimates of building material and labour for the subsequent year as estimated
by CPWD
2. Rates of building materials and labour in Delhi vies-a-vies rates in city in
relevant state
3. Expected inflation rate as estimated by the finance ministry, Govt. of India.
4. An index obtained by estimating demand/ supply of housing determined by the
Bank of India Reserve

630. Utility means existing and anticipated ----- due to ownership & use of
property
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1. Marketability
2. Scarcity
3. Transferability
4. Benefits

631. Which property does the corporation has a power to acquire

1. Movable
2. Immovable property
3. Both movable & immovable property
4. Neither movable & immovable property

632. Acceptance of valuation report submitted by valuer in the court does not
depend of ------
1. Reasons given by the valuer in the valuation report
2. The valuer successfully withstanding the test of cross examination.
3. Age of the valuer
4. Substantiating the report by producing supporting instances as proof.

633. The value of the rent Controlled properties will have ---------- value than
vacant property.
1. 100 percent higher
2. 50 percent higher
3. Exactly same
4. Lower

634. In case of gift, if donee dies before acceptance then.

1. Gift is valid
2. Gift is void
3. Gift is reduced
4. Court has to decide

136
635. In case of ------------ of contract the motive (intention) for the breach is
immaterial.
1. Breach
2. Failure
3. Recession
4. Cancellation

636. Under sec 59 of Indian Succession Act, A person who is ordinarily insane
may make a will
1. Never
2. Every time during insane
3. During interval when he is of sound mind
4. His heir

637. Gift to two or more donees, of whom one does not accept it is ---------------
--------
1. Valid as to interest which he would have taken had he accepted
2. Void as to interest which he would have taken had he accepted
3. Voidable at option of donor
4. Valid at option of heir.

638. The mortgager in Indian law who had parted with some right of ownership
and the right of redemption is a right which he exercises by virtue of his -------
1. Pecuniary ownership
2. Residuary ownership
3. Conditional ownership
4. Possession

639. Which valuation methodology should be used to calculate the market

value of vacant building excluding land?
1. Sales comparable

137
2. Depreciated replacement cost.
3. Income capitalization
4. Residue Technique

640. under adjustment grid model, for sale instance premises having -----
positive weightage is considered on sale rate, while comparing with subject
premises having standard specification?
1. Standard specification
2. Superior specification
3. Substandard specification
4. Deluxe speculation

641. Accumulative rate of interest is considered at ----- rate than remunerative

rate because higher security for accumulation of capital is needed.
1. Lower
2. Higher
3. Same
4. Double

642. Which of the following represents the year purchase for Rs.1 with
remunerative rate of interest at 8% and annual sinking fund amount to be set
aside for recouping Rs .1 is 0.021.
1. 1 / (0.08+0.021)
2. 0.021/0.08
3. (0.08+0.021) / (0.021)
4. 1/(0.08-0.021)

643. As an independent valuer, the valuer should not charge __________ fee.
1. Professional
2. Success
3. Mandate
4. Legal
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644. A valuer should not use or divulge to other clients or any other party any
confidential information about the ______ company.
1. Subject
2. Client
3. Public
4. Listed

645. Which one of the following is not essential element of the basic concepts
of valuation of immovable property?
1. Scarcity
2. Transferability
3. Safety of assets
4. Utility

646. Factory building has 1200 S.M. built-up area. Plot are is 2000 S.M. Building
is 25 years old and total life is 50 years. Replacement cost today is Rs. 25000
per S.M. industrial plot is available for Rs. 8000 per S.M. which of the following
is the fair sale price (ignoring savage) for the property?
1. Rs 46000000
2. Rs 31000000
3. Rs 16 000000
4. Rs 18400000

647. ‘A’ owes B Rs. 1000 payable on 1st December 2017 with interest. On 1st
June 2017 A offers to pay the amount with interest up to 1st of June 2017.
1. It is a valid Tender
2. It is not a valid Tender of performance
3. It is a legal tender
4. It is an Illegal Tender

648. Lessor has right to --------------

1. Receive profit rent from the property for the unexpired period of the lease
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2. Receive lease rent for the unexpired period of ease
3. Receive lease rent for the economic life of the building.
4. Receive lease rent for the physical life of the building.

649. Which of the following is not a criterion in determining the highest and
best use of land?
1. Physically possible
2. Legally permissible
3. Financially feasible
4. Socially acceptable

650. Marriage value (also often referred to as synergic value) in valuation

basically means……………
1. Extinction of lease holder’s interest in the property when the merger takes place
2. Merger of right of co-owner of property with the co-owner
3. Increase in the value of the property due to merger of two different
interests held by to different persons.
4. Owner’s interest in the property which is extinguished at the time of merger.

651. Which one of the following is not the characteristic of real estate market?
1. No free flow of information
2. It is imperfect market
3. It is perfect investment market
4. Heterogeneity

652. Dilapidated building requiring heavy structural repairs is --------

1. Physical depreciation
2. Economic obsolescence
3. Technical obsolescence
4. Functional obsolescence

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653. An agreement is voidable by the party whose consent is obtained by
5. Misrepresentation
6. Fraud
7. Incomplete information
8. Wrong information

654. Which of the following is not to be considered while estimating Market

value of the property?
1. Utility
2. Benefits
3. Transferability
4. Distress of buyer/ seller

655. Cost of creating a new building having identical utility and performing
similar function as being performed by the existing old asset is called as -
1. Replacement cost
2. Reproduction cost
3. Original cost
4. Historic cost.

656. Economic life of a RCC roofed load bearing building is normal considered
as ----
1. 100 years
2. 50-60 years
3. 40 years
4. 25 years

657. Under what circumstances, tenant can change the user of the tenanted
premises.
1. At the whims and fancies of the tenant

141
2. With consent of the landlord in writing, provided the user is permissible in
law.
3. After giving notice to the landlord
4. After permission from local planning authority.

658. What is common in Distress sale & forced sale?

1. Adequate marketing time
2. Market value
3. Insufficient marketing time
4. Private negotiations

659. Rent control Act, Transfer of property Act, development control rules and
building Bye-laws, and laws governing the land are ------ which affect the value
of property.
1. Technical factors.
2. Economic factors
3. Social factors
4. Legal factors

660. Under sec 63 of the Indian easements act, the licensee’s has a right on
revocation which means.
1. He is entitled to a reasonable time to leave the property
2. He has no light to remove any goods from such property.
3. He is not entitled for a reasonable time to leave the property.
4. He has no right to keep and goods from such property.

661. Which of the following development control rules have effect on intensity
of use of land?
1. Zoning
2. Floor space index
3. For fire-fighting

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4. Rules for minimum of open space

662. Where rent reserved in an occupational lease is less than the full rental
value, it is called ----------------
1. Acknowledgement rent
2. Head rent
3. Standard rent
4. Virtual rent

663. Which of the following is not a method used to calculate depreciation?

1. Straight Line Method
2. Declining Balance Method
3. Average-of-the year Digits
4. Constant percentage method

664. Which of the following details are not required to be included in the
valuation report for present day value of an open plot of land?
1. Name of all the owners of the property and with details of share of each co-
owner
2. Available comparable sale instances in the locality during relevant period of
valuation
3. Details of year of purchase of land and price paid while acquisition.
4. Analysis of data collection by giving details of weight ages adopted for different
factors and adjustment made in sale rate.

665. Right to property is a ___ right.

1. Fundamental
2. Statutory
3. Constitutional
4. Human

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666. Number of years for which a new asset is profitably used for its intended
purpose is known as _______.
1. Economic life
2. Normal useful life
3. Age
4. Physical life

667. Useful life of an asset is affected by which of the following?

1. Cost
2. Replacement cost
3. Wear and tear
4. Net Book Value

668. Where a coparcenary consists of several branches and a partition takes

place
1. Each branch takes as per capital
2. Each branch and member of each branch takes per capital
3. Each branch and member of each branch takes per stripes
4. Each branch takes per stripes and member of each branch takes per capital.

669. A valuer should co-operate and be available for ____ and investigation
carried out by the concerned authority
1. Inspection
2. Scrutiny
3. Alliance
4. Argumentation

670. Valuer should adopt ___rate of capitalization if income flow is safe &
secured.
1. Lower
2. Higher

144
3. Same rate as lending rate of bank
4. Interest rate of his own choice

671. Which of the following is not in relevant factor while estimating

depreciated replacement cost of a building?
1. Year of construction
2. Size
3. Accessibility
4. Specification

672. Not true with respect to valuation of Joint venture development of

property
1. Estimate market value of land offered for development of land owner
2. Estimate cost of construction of building proposed on land.
3. Required to consider which political party is ruling in the state.
4. Consider value of financial benefit and profit @ future date that is contingent
upon performance and fulfillment of terms of contract.

673. Following approach to valuation, an accrued depreciation must be

counted to determine market value of assets
1. Market approach
2. Income approach
3. Cost approach
4. Discounted cash flow method

674. Common in distress sale forced sale will have -------------

1. Adequate marketing time
2. Market value
3. Insufficient market time
4. Private negotiations

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675. Economic principle is not required to be considered for conventional
valuation of property _____
1. Demand
2. Price
3. Utility
4. Cost

676. Opinion expressed on value of the property by the valuer, as expert

witness, in a valuation of dispute case is ...........to the court.
1. binding
2. not binding
3. of no value
4. inform of advice

677. Total age of building 4 years. After four years the depreciated value is
equal to 24% of the cost. Find out the % of depreciation (near to answer) by
WDV method?
1. 24
2. 25
3. 30
4. 35

678. Infrastructure works like augmentation of road networks & transport

facilities will result in increased ____
1. Environmental deterioration
2. Overall developments
3. Crime Rate
4. Withdrawal of capital

679. Not a fact but an estimate

1. cost
2. price
3. value
146
4. Loss

680. Adverse changes to demand for the product or services produced by an

asset will result into ____
1. Physical
2. Functional
3. Economic
4. Legal

681. Key element of income approach?

1. Potential income stream
2. Expenses
3. Outstanding loans
4. Capitalization rates.

682. Factor is not considered for weightage adjustment in sales comparison

1. Location
2. Size
3. Accessibility
4. It payable by seller of comparable

683. Valuation of land always involves consideration on the principle of

1. HABU
2. Competition
3. Surplus productivity
4. Contribution

684. Sec 107 under transfer of act, a lease of immovable property from year to
year, or for any term exceeding one year or reserving a yearly rent, can be
made only by -----------------
1. Ordinary instrument
2. Registered instrument
3. Unregistered instrument
147
4. Oral

685. Why should an entrepreneur do a feasibility study for a new venture?

1. To see if there are possible barriers to success
2. To identify possible sources of funds
3. To estimate the expected sales
4. To explore potential customers

686. Fully developed land with fully tenanted building occupied by the
protected tenants by ------------ of valuation
1. Any method
2. Cost approach
3. Market approach
4. Income approach

687. Which is the most appropriate method of valuation for an income

generating commercial asset?
1. Land & Building method
2. Any method
3. Direct comparison method
4. Discounted cash flow method

688. Which of the following need not form part of the valuation report if fully
tenanted property is offered for sale by the user of the report?
1. Prevalent cost of construction in the locality
2. Total rent receivable from the property
3. Details about total life period for which the rental income flow will continue
4. Details of all outgoings and prevalent rate of capitalization in the market for
similar property in the locality.

689. After leasing of the property, the lessor’s right is sometimes called -----
right
1. diminishing
148
2. occupational
3. residual
4. possession

690. Which of the following is considered as a special property

1. Residential land
2. Industry
3. Commercial office space
4. Sports Arena

691. The property falling in the locality lacking in the infrastructure will ------
with the value of the property
1. Increase
2. Decrease
3. Stabilize
4. Have no relation with

692. Which valuation methodology should be used to calculate the market

value of vacant building excluding land?
1. Sales comparable
2. Depreciated replacement cost
3. Income capitalization
4. Residue technique

693. In cash of Usufructuary mortgage the mortgagee is placed in possession

and has a right to enjoy the rent and profit
1. Until debt is paid
2. Till contract is rescinded
3. Until debt is not paid
4. Till contract is not rescinded

694. Vertical interest is about-----------------

1. Legal concept of space above land surface
149
2. Legal concept of space below land surface
3. Both (1 & 2)
4. None of the above

695. A condition that decreases the utility of the property and is not
economically feasible to cure is called__________
1. Incurable function
2. Fully depreciated property having no value
3. Incurable functional obsolescence
4. Un-functional obsolescence

696. Any loss of utility resulting from inefficiencies in the subject Asset
compared to its replacement such as its design, specifications or technology
being outdated is known as______
1. Physical obsolescence
2. Functional obsolescence
3. Economic obsolescence
4. Legal obsolescence

697. Under transfer of property act sec 58 a mortgage is the transfer of an

interest in specific immoveable property for the repayment of a debt
1. Question of interest does not arise
2. Such interest itself in immovable property
3. Such interest is not in immovable property
4. Such interest itself in movable property

698. In case of gift of immovable property, the transfer must be effected by a

registered instrument
1. Signed by or on behalf of the donor, and attested by at least two
witnesses

2. Signed by or on behalf of the donor, and attested by at least one witnesses

3. Signed by or on behalf of the donor, and attested by witnesses

150
4. Not required - Only attested by witnesses

699. Sec 114A under transfer of act, where a lease of immovable property has
been determined by forfeiture for a breach of an express condition which
provides that on breach there of the lessor may re-entry, no suit for ejectment
shall lie
1. Oral assent
2. Unless and until the lessor has served on the lessee a notice in writing
3. Without any notice in writing
4. Lessor consent

700. The main objective of providing depreciation is to

1. Reduce tax burden
2. Provide funds for replacement of fixed asset
3. Show the true financial position in the balance
4. Comply with the legal requirements

701. __________ is the expression of future benefits in terms of present value

1. Annuity
2. Capitalization
3. Net Income
4. Weighted averaging

702. Market value of reversionary right of lessor is estimated by___________

1. Deferring cost of the building
2. Capitalizing rent received from the property
3. Capitalizing profit rent for unexpected lease
4. Deferring market value of property as freehold

703. Adverse changes to demand for the product or services produced by an

asset will result into
1. Physical obsolescence
2. Functional obsolescence
151
3. Economic obsolescence
4. Legal obsolescence

704. Loss in value from forces external to the property and which is incurable
is called ____
1. Incurable depreciation
2. Declining Sinking Fund
3. Economic obsolescence
4. Functional Deterioration

705. A Hindu dies leaving behind father and son's daughter's son. They are
1. Class I heirs
2. Class II heirs
3. Class III heirs
4. Preferential heirs

706. Under see 63 of the Indian Easements Act the licensee has a rights on
revocation which means ------

1. entitled to a reasonable time to leave the property

2. no right to remove any goods from such property
3. not entitled for a reasonable time to leave the property
4. no right to keep any goods from such property

707. In case when the owner’s right, which is imperfect and it be subsequently
made perfect, on fulfilment of certain conditions, it is called
1. Co – ownership
2. Concurrent ownership
3. Duplicate ownership
4. Contingent ownership

708. A Hindu female wife dies and is survived by her husband have one son
and two unmarried daughter D1 and D2 how property of wife will be divided?
152
1. 1 by 3 to husband, 1 by 3 sum and remaining 1 by 3 to daughters
2. Into four equal parts
3. One half to husband and remaining half to son and daughters
4. One half to son and remaining half to husband and daughters

709. Which is the following element is not the key element of the income
approach?
1. Potential income streams
2. Expenses
3. Outstanding loans
4. Capitalization rate

710. Under profit method of valuation income is generated from----

1. Only tangible assets
2. Both tangible & intangible assets
3. Only intangible assets
4. Only movable assets

711. Which return would you adopt as base while determining appropriate rate
of the net profit, unless it is otherwise found unsuitable?
1. The return from investments in stock and shares
2. The return from gilt-edge security
3. Interest paid in the saving account
4. The return from investment in gold

712. The income chargeable under head ‘capital gains’ is computed by

deducting the _______ from the full value of the consideration received as a
result of transfer of the capital asset.
1. Expenditure incurred wholly and exclusively in connection with such
transfer
2. Expenditure incurred wholly and excessively after such transfer
3. Indexed cost of repairing to be carried out
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4. Index cost of any improvements carried out after such transfer

713. Which one of the following best defines Annual sinking fund?
1. Annual sum required to be invested to an amount of Re. 1/- in specified
years
2. Monthly sum required to be invested to an amount of Rs. 10/- in specified years
3. Annual sum required to be invested to an amount of Rs. 10/- in specified years
4. Annual sum required to be invested to an amount of Rs. 100/- in specified years

714. The value at the end of utility period of the asset without being dismantled
is called ____ value.
1. Salvage
2. Realizable
3. Scrap
4. Junk

715. Where on a transfer of property, an interest therein is created in favour of

a person to take effect only on the happening of a specified event, such
interest is called _________.
1. simple interest
2. Diminishing interest
3. Vested interest
4. Contingent interest

716. The approach to valuation of rented properties depends on_________.

1. nature and behaviour of landlords
2. category of tenants - tenant protected or not protected under the
applicable rent act
3. rent paying capacity of the tenant
4. cordial and homely relationship between landlord and tenant

717. A rupee received today can be invested now to earn interest, this can
result in a higher value in future is called as ------------------
154
1. benefit cost
2. opportunity cost
3. investment cost
4. market cost

718. The weightage score method is applicable to

1. market approach
2. income approach
3. both a and b
4. cost approach

719. According to Hindu Succession Act, on her dying intestate wife property
shall devolve ------------------
1. On her children alone
2. On her children and husband alone
3. On her children, husband and her parents.
4. On her children and husband and thereafter upon her parents and the
heirs of parents.

720. As per Hindu Succession Act, in the absence of any issue to her, the
property inherited from her parents would be ------------------------
1. Reverted back to her parents
2. Reverted back to her parents or heirs of her parents,
3. Reverted back to her parents or heirs of her parents, instead of devolving
upon the husband or heirs of husband.
4. Reverted back to her parents, instead of devolving upon the husband

721. According to Hindu Succession Act, when two or more heirs succeed to
the property of an intestate, they shall take --------------------
1. Their share as per capita and called as joint tenants.
2. Their share as per stripes and called as joint tenants.
3. Their share as per capita and per stripes and called as joint tenants.

155
4. Their share as per capita and NOT per stripes as tenants in common and
not joint tenants.

722. As per Mohamedan Law, succession among heirs of the same class but
belonging to different branches ------------------------
1. May either by per capita the succession is equally undivided
2. May either by per strips the succession is equally undivided
3. May either by per capita or per strips the succession is according to
number of heirs equally divided
4. May either by per capita or per strips the succession is unequally divided

733. As per Mohamedan Law, the share of a female in place of a male

1. Female : Male = 1 : 1

2. Female : Male = 1 : 2

3. Female : Male = 1 : ½

4. Female : Male = 2 : 1

734. ‘A’ makes a contract with ‘B’ to beat his business contract, this is an
example of ---------------
1. Valid contact
2. Illegal contract
3. Voidable contract
4. Unenforceable contract

735. Which of the following term is not included in the International Valuation
Standards definition of market value
1. Sale price
2. Estimated amount
3. Date of valuation
4. Willing seller
156
736. Which one of the following statements is true as per guidelines pertaining
to remuneration and costs as per Companies (Registered valuers and
valuation) rules, 2017?
1. Valuer should charge fees as per the guidelines for fees given by any major
public sector bank
2. Valuer can accept fees or charges which are disclosed to and approved
by the persons fixing the remuneration
3. Valuer can accept fees or charges other than those which are disclosed to and
approved by the persons fixing the remuneration
4. Valuer should charge fees as per the guidelines for fees given on Wealth Tax
Act

737. A Tort is inflicted against --------------------

1. With consent
2. Free consent
3. Without consent
4. Implied consent

738. Section 114A under Transfer of Property Act, where a lease of immovable
property has been determined by for forfeiture for a breach of an express
condition which provides that on breach thereof the lessor may re-enter, no
suit for ejectment shall be
1. Lessor consent
2. Unless and until the lessor has served on the lessee a notice in writing
3. Without any notice in writing
4. Oral consent

739. Any profit or loss on the sale of sinking (depreciation) investments is

transferred to ------------------
1. Profit and loss account
2. Asset account

157
3. Sinking fund account
4. Depreciation account

740. Which of the following is not covered under fire floating policy?
1. Stocks in process blocks
2. Stocks in godown
3. Stocks in the open
4. Stocks in transit

741. As per IBC, 2016, debts owed to a secured creditor in the event of such
secured creditor has relinquished security, ranks equally with ---
1. Workmen’s dues for a period of 24 months prior to liquidation
commencement date
2. Wages and any unpaid dues owed to the employees other than workmen for
the period of twelve months preceding the liquidation commencement date
3. Insolvency process cost
4. Dues to the Central Government

742. A -----------contract is a contract to do or not to do something, if some

event, collateral to such contract does, or, does not happen
1. Ordinary
2. Voidable
3. Contingent
4. Unenforceable

743. Which of the following define is appropriate for the term real estate?
1. Building and other improvements
2. Property that is not encumbered by leases
3. Land and anything permanently attached to the land
4. Building and fixture

158
744. Reversionary value means --------------------------
1. The value on revision of rent .i.e. a new rent agreement between landlord and
tenant
2. An amount reverted back on sale of property
3. A specified value estimated for payment of taxes such as capital gains or
municipal taxes
4. Present value of land which would revert to the lessor after expiry of
lease period

745. Which of the following is an optional cover under Industrial All Risks
Policy?
1. Machinery breakdown
2. Electronic equipment
3. Business interruption (Machinery breakdown)
4. Business interruption (Fire & Special perils)

746. A notice under Section 111 of Transfer of property Act can be waived -----
--------
1. By express or implied consent of the person to whom it is given
2. By implied consent of the person to whom it is given
3. By express consent of the person to whom it is given
4. By notice to either of the party

747. Which one is true in case of contaminated restored property?

1. Stigma is removed
2. Market will pay reasonable price
3. Market will still pay less than the similar property in the market
4. Market will pay the cost of remediation also

748. Is it permissible for landlord to disconnect / cut off essential service being
provided to tenant?

159
1. Yes
2. No
3. Yes, after notice to tenant
4. Yes, after order from court

749. Variable cost per unit -------------------

1. Variable cost per unit
2. Remains constant
3. Increases when output increases
4. Decreases when output decreases

750. Moving along with indifference curve the ------------

1. Marginal rate of substitution for a good, increases as more of the good is
consumed
2. Marginal rate of substitution is constant
3. Marginal rate of substitution equal to 0
4. Consumer does not prefer one consumption point to another

751. The constant increase in production of cereals constitutes the component

of a time series
1. Cyclic variation
2. Dummy trend
3. Seasonal variation
4. Secular trend

752. An agreement enforceable by law is a -----------

1. Illegal
2. Affidavit
3. Contract
4. Agreement

160
753. Two basic assumption of Ricardian concept of rent is that ----------
1. The land is used to produce food grains only and no other use of land is
considered and the theory operates only in short run
2. The land is used to produce food grains only and other uses of land is also
considered and the theory operates only in short run
3. The land is used to produce food grains only and other uses of land is also
considered and the theory operates only in the long run
4. The land is used to produce food grains only and no other use of land is
considered and the theory operates only in the long run

754. Whoever deserves, any court to give judgment as to any legal right or
liability, dependent on the existence to facts which has asserts, must prove
that these facts exist. This is defined as -------------
1. Onus of proof
2. Evidence
3. Experts’ opinion
4. Burden of proof

755. The construction work is not possible for the following or as per building
byelaws, no development is permissible on:
1. Beaches
2. Market
3. Small houses
4. Commercial complex

756. Loss due to damage by --------------- is not possible under standard fire
policy
1. Fire
2. All perils
3. Impact damage
4. Natural calamity

161
757. Closing entries of the firm are passed on ------------------
1. In trading account
2. In Trial Balance
3. In journal
4. In profit and loss account

758. Occupancy rights of the occupant of the premises under Easement Act is
as --------------------
1. Licensee
2. Statutory tenant
3. Lessee
4. Trespasser

759. Contract of indemnity is ---------------

1. Tripartite
2. Bilateral
3. Multipartite
4. Multilateral

760. Which one of these is not a primary sector?

1. Farming
2. Dairy
3. Fishing
4. Textile

761. Amount received by sale of scrap by a club is treated as ----------

1. Income
2. Expense
3. Assets
4. Liability

162
762. ‘A’ purchased a mine for Rs 2,50,000 minerals in the mine were expected
to be 5,00,000 tonnes. In the first year, 50,000 tonnes of minerals were used.
What is the depreciation for the first year?
1. Rs 20000
2. Rs 25000
3. Rs 10000
4. Rs 15000

763. Salaries due for the month on March will appear -----------
1. On the receipt side of the cash book
2. On the payment side of the cash book
3. As a contra entry
4. Nowhere in the cash book

764. In case of -------------- the motive (intention) of the breach is often taken into
consideration
1. Tort
2. Contract
3. Agreement
4. Tender

765. As per Companies Act, 2013, sec 192(2), the notice for approval of the
resolution by the company or holding company in general meeting under sub
section(1) shall include the particulars of the arrangement along with the value
of assets
1. Involved in such arrangement duly calculated by an auditor
2. Involved in such arrangement duly calculated by an liquidator
3. Involved in such arrangement duly calculated by a registered valuer
4. Involved in such arrangement duly calculated by a Insolvency Resolution
Professional

163
766. He presented the theory of rent ----------
1. Malthus
2. Allarna Iqbal
3. Ricardo
4. Marshall

767. Which one of the following is not true under Factories Act, 1948?
1. Factory is any premises whereon 10 or more workers are working, or were
working on any day of the preceding 12 months, and in any part of which a
manufacturing process is being carried on with the aid of power
2. Factory is any premises whereon 20 or more workers are working, or were
working on any day of the preceding 12 months, and in any part of which a
manufacturing process is being carried on with the aid of power
3. A mine or mineral mining site is a factory
4. Occupier of a factory means the person who has ultimate control over the
affairs of the factory

768. Mean is a measure of -----------------

1. Location (central value)
2. Dispersion
3. Correlation
4. Variation

769. The market value of reversionary right of the lessor is estimated by ----
1. Deferring cost of the building
2. Capitalizing rent received from the property
3. Capitalizing profit rent for unexpired lease
4. Deferring market value of the property as freehold

770. As per Right to Fair Compensation and Transparency in Land Acquisition,

Rehabilitation and Resettlement Act under Section 12, the Government to
determine the extent of land to be acquired, should be conducted in

164
1. Presence of Officers
2. Presence of owner
3. In the absence of owner
4. In the absence of any person authorized by the owner

771. Ingredients of Investment property are self-liquidity, utility & -------

1. Scarcity
2. Non marketability
3. Non recovery
4. Marketability

772. The problems related to price rise are handled under ------------
1. Management accounting
2. Cost accounting
3. Financial accounting
4. Inflation accounting

773. When a minor coparcener files a suit for partition through guardian or next
friend and court finds the partition being for the welfare of the minor, the
partition / severance of status place from the date
1. The institution of the suit
2. Of the court order
3. Fixed by the court
4. Agreed by the parties

774. A contract by which one party promises to save the other from loss
caused to him by the conduct of promisor himself or by conduct of any person
is called as
1. Contract of indemnity
2. Contract of breach
3. Contract of guarantee
4. Performance of contract

165
775. Remedies for enforcement of the fundamental rights conferred by this part
– writs of habeas corpus, mandamus, prohibition, certiorari and ----------
1. Ultra vires
2. Ratio Decidendi
3. Quo Warranto
4. Stare Decisis

776. The forest animals are not bounded by the following act ---------
1. Indian Forest Act
2. Indian Wild Life Act
3. Environmental protection Act 1986
4. Bio diversified Act

777. After wife expired, the property right goes to, ---------
1. Husband
2. Husband cannot take
3. Self-acquired property to husband and ancestral to her parents or her
parents legal heirs
4. Only 25% goes to husband

778. The annual equivalent of premium plus actual rent paid is called -
1. Standard rent
2. Actual rent
3. Acknowledgement rent
4. Virtual rent

779. As per IBC, 2016, who cannot initiate a fast track corporate insolvency
resolution process?
1. Financial creditor
2. Operational creditor
3. Corporate debtor
4. Insolvency professional

166
780. Which of the following statement is true as per fire policy condition on the
happening of a loss?
1. The insured can abandon the damaged property to the insurers
2. The insurers have a right to take possession of the premises where the
loss has occurred
3. The insurers do not have a right to take possession of the premises where the
loss has occurred
4. The insurers should settle entire cost of reinstatement as estimated by insured’s
consultant without any analysis

781. Which is correct in the following statement –

A. Inflation benefits the debtors
B. Inflation benefits the bond holder
1. ‘A’ only
2. ‘B’ only
3. Both ‘A’ & ‘B’
4. Neither ‘A’ or ‘B’

782. The total cost is generally considered as sum of ------

1. Fixed cost and average cost
2. Fixed cost and marginal cost
3. Marginal cost and average cost
4. Fixed cost and variable cost

783. Deterioration of environment is -------------- proportional to market value of

property
1. Inversely
2. Directly
3. Not
4. Indirectly

167
784. Determination of the price that would be equitable between a lessor and
lessee for either permanent transfer of the lease assets or the cancellation of
the lease liability is known as --------------
1. Investment value
2. Synergic value
3. Equitable value
4. Liquidation value

785. Classification is the ----------- of facts that are distinguished by some

significant characteristics
1. Part
2. Survey
3. Tabulation
4. Grouping

786. The seasonal indices for each month or quarter of different years are
called ----
1. Typical seasonal
2. Link relatives
3. Chain relatives
4. Specific seasonal

787. The process of transferring the transactions relating to changes in a

particular item at one place in the form of an account is called---------
1. Balancing
2. Casting
3. Journalizing
4. Posting

788. As per indifference curve analysis consumer equilibrium is attained when:

1. Slope of indifference curve is constant
2. Slope of both indifference curve and income price line are equal
3. Slope of both indifference curve and income price line are opposite
168
4. Both income price line and indifference curve are parallel

789. For the management of the environment, which one of the following is not
a major legislative measure in India?
1. Factories Act 1948
2. The Water (Prevention and Control of Pollution) Act, 1974
3. The Air (Prevention and Control of Pollution) Act, 1981
4. The Environment (Protection) Act 1986

790. Which of the following element is not part of definition of market value?
1. The most probable price
2. As of a specified date
3. Cost incurred by the seller in creating the asset
4. The buyer and seller each acting prudently

791. Every transfer of immovable property made with intent to defeat or delay
the creditors of the transferor shall be voidable
1. At the option of any creditor so defeated or delayed
2. At the option of debtor
3. At the option of the court
4. At the option of the Government

792. A population consisting of the result of the conceptually repeated trial is

known as ----------
1. Finite population
2. Hypothetical population
3. Infinite population
4. Real population

793. An ownership flat with 140 sqm area is licensed for an amount of Rs
1,10,000 per month. Society maintenance charges are Rs 20,000 per 3 months.
Which of the following will be market value of the flat on income approach by
adopting 4 percent as rate of capitalization?
169
1. Rs 3,10,00,000
2. Rs 1,10,00,000
3. Rs 2,00,00,000
4. Rs 1,32,00,000

794. Under which of the following circumstances reinstatement basis of

settlement will not apply under fire reinstatement policy?
1. Insured fails to intimate to the insurer within 6 months of any extended time to
replace the damaged property
2. Insured is unable to replace the damaged property
3. Insured is unwilling to replace the damaged property
4. In cases when the insured fails to intimate to the insurer within 6 months
or any extended time to replace the damaged property and insured is unable
or unwilling to replace the damaged property

795. As per Right to Fair Compensation and Transparency in Land Acquisition,

Rehabilitation and Resettlement Act under Section 4(2), the Government shall
ensure the completion of Social Impact Assessment study within a period of
1. One month
2. Three months
3. Six months
4. Nine months

796. when does corporate insolvency commence?

1. On the date filling an application by operational creditors
2. On the date filling an application by financial creditors
3. On the date admission of application by adjudicating authority
4. On the date of appointment of interim insolvency resoultion professional

797. Following does not affects demand of Real Estate?

1. In-migration/Out-migration
2. Lower interest rate on housing loan
3. Consumer confidence
170
4. Paying capacity

798. Due to ------------------ of properties in real estate market, conditions of

perfect competition are almost absent
1. Homogeneity
2. Heterogeneity
3. Unstable characteristics
4. Lack of demand

799. Which of the following statement is correct?

1. Hotels and restaurants should be valued on the basis of their profitability
2. Hotels and restaurants should be valued on the basis of their tangible assets
only
3. There are no intangible assets associated with the hotel and restaurant
industry
4. Advertisement income in a hotel or restaurant cannot be treated as part of profit

800. Gross profit in the context of consequential loss (fire) policy means one
of the following
1. Turnover mnus variable and standing charges
2. Net profit and cost of production
3. Net profit and standing charges
4. Net profit and variable charges

801. This is not a cause of inflation

1. Rise in customer confidence
2. Decrease in supplies
3. Corporate decisions to charge more
4. Increase in supplies

802. Whch cannot be said as criteria air pollutant?

1. Carbon dioxide
2. Carbon monoxide
171
3. Nitrogen oxide
4. Sulphur oxide

803. Which of the following is not a function of Cost Accounting?

1. Cost ascertainment
2. Planning and control
3. Decision making
4. External reporting

804. Which of the following is not a part of modifying principle:

Principle of consistency
Principle of materiality
Principle of conservatism
Principle of dual aspects

805. in the mining industry the method used for valuation is known as:
1. Depreciation
2. Diminution
3. Amortization
4. Depletion

806. A valuer should not take up an assignment under the Act / Rules if he /it
or any of his / its relatives or associates is not independent in relation to the
company and assets being valued because-----------
1. It involves conflict of interest
2. It leads to reporting higher value
3. It leads to reporting value
4. It leads to reporting average value

807. what happens to inflation with increase in cash reserve ratio?

1. Inflation increases
2. Inflation decreases
3. No changes
172
4. Deflation is caused

808. Right to privacy is ------------------- right

1. Fundamental
2. Constitutional
3. Statutory
4. None of the above

809. The term enviornment is defined under which act that includes relation
between enviornment, water and air?
1. The Enviornment Act
2. Water Cess Act
3. Air Act
4. Technology Act

810. Accrued depreciation for heritage structure is always measured and

based on-
1. Reproduction cost new as of the date of valuation
2. Initial cost of construction added by repair cost
3. The actual cost when originally constructed
4. Replacement cost new as of the date of valuation

811. Which of the following statements is true related to obligation of insured?

1. To defend the insurer
2. To indeminify the insurer
3. To investigate and settle potentially covered claim
4. Protect the property from further damage

812. Factories Act 1948, is applicable to factories involved in ---------------

1. Manufacturing activity
2. Construction activity
3. Mining activity
4. Plantation activity
173
813. Zoning is defined as------------
1. Arranging or distributing lands and properties according to particular features
2. Not arranging or not distributing lands and properties according to particular
features
3. Arranging or distributing lands and properties not according to particular
features
4. Arranging or distributing lands and properties as per uses

814. The reporting should be done keeping in mind:

1. Valuer’s interest
2. Client’s interest
3. Developer’s interest
4. Fair / market value interest

815. Standard or scale used to measure transactions and events in?

1. Rupees
2. Dollar
3. Local currency
4. Pounds

816. As per the companies act 2013, any scheme of corporate debt
restructuring under Sec 230 (2) (1) (c) (v) must include a valuation report in
respect of the shares and the property and all assets, tangible and intangible,
and movable and immovable, of the company by
1. Registered valuer
2. State government
3. An auditor’s report is sufficient
4. Reserve Bank of India guidelines is sufficient

817. Regression coefficient is independent of:

1. Origin
2. Scale
3. Logical property
174
4. Assignable property

818. Despite the absence of a contractual relationship, --------- Will exist

wherever there is a relationship of sufficient ‘proximity’ between a
professional advisor and a person who relies on his or her advice.
1. A duty of care
2. No duty of care
3. Fiduciary care
4. No care

819. If the central bank buys financial securities form the open market to
increase the monetary base, this is an example of:
1. Open market operations
2. Lender of last resort
3. Financial regulation
4. Financial intermediation

820. Cost of machine Rs. 1,00,000/-, scrap value Rs. 10,000/-, life 4 years, what
will be the amount of depreciation according to sum of years digit method in
the first year.
1. Rs. 40,000/-
2. Rs. 45,000/-
3. Rs. 36,000/-
4. Rs. 38,000/-

821. Number of firm in a monopoly market is -------------

1. Two
2. Many
3. One
4. Three

822. Factor which is not responsible for the occurrence of business cycles is:
1. Social customs
175
2. Decline
3. Likes and dislikes of people
4. Scientific and technological developments

823. The maximum limit of investment in tiny industry is:

1. 0 to 25 lakhs
2. 25 lakhs to 50 lakhs
3. 50 lakhs to 1 crore
4. 25 lakhs to 5 crore

824. In which of the following case the court has for the first time approved of
Investment theory of Rent fixation, by allowing 1.50 percent more return than
the return on gilt edged security on value of land and 2.5 percent extra yield
on the cost of the building, as fair return to the landlord on his investment in
an immovable property?
1. Jawaji Nagnathan V/s RDO (Adilabad)
2. Sorab Talati V/s Joseph Michem
3. R.C. Cooper V/s Union of India
4. Wenger & Co. V/s D.V.O.

825. Market equilibrium refers to a situation in which market price is................

1. High enough to allow firms to earn a fair profit
2. Just above the intersection of the market supply and demand curves
3. Low enough for consumers to buy all that they want
4. At a level where there is neither a shortage nor a surplus

826. A valuer should maintain proper working papers for production before a
regulatory authority or for a peer review for minimum of which of the following
period, assuming that there is no pending case before the Tribunal or
Appellate Tribunal
1. One year
2. Two years
3. Three years
176
4. Ten years

827. According to policy condition the fire policy ceases cover if the building
incurred becomes unoccupied for more than.................
1. 15 days
2. 30 days
3. 45 days
4. 60 days

828. Sale comparison method and development method of valuation are the
two main methods under.....................
1. Income approach
2. Cost approach
3. Market approach
4. Residual approach

829. A tandem plot....................

1. is similar to recess land
2. is similar to landlocked land
3. Has access only by a private road or a common passage
4. Is always on the main road

830. An inferior good is one for which an increase in income causes -------------
1. Decrease in supply
2. Increase in demand
3. Increase in supply
4. Decrease in demand

831. When the present value of minimum lease payments is approximately

equal to the fair value of the lease assets, it is called.................
1. Finance lease
2. Long term lease
3. Operating lease
177
4. Short term lease

832. Which one of the following should not be done by a valuer with the
confidential information about the subject company, which has come to his /
its knowledge without proper and specific authority or without legal or
professional right or duty to disclose?
1. Use or divulge to other clients or any other party
2. Maintain records
3. Use in his / its valuation exercise
4. Maintain confidentiality of information

833. Which of the following scenario need not be a connection with the Highest
and Best use of existing buildings or land?
1. Continued inferior use
2. Modifying / improving existing use
3. Conversion to alternative use
4. Partial / total demolition with subsequence redevelopment

834. What is full form of SEZ?

1. Secure entry zone
2. Special entry zone
3. Secure economic zone
4. Special economic zone

835. Following indicates of years an asset will endure before it deteriorates to

an unusable condition?
1. Useful life
2. Economic life
3. Physical life
4. Residual life

836. CPWD not given any weightage?

1. Bricks
178
2. Stone chips
3. Skilled labor wages
4. Wooden furniture in the building

837. Purchase, occupants, tenant comprises what side of the market?

1. Demand
2. Supply
3. Equilibrium
4. Neutral

838. Prevalent rate of capitalization can be obtained from -------------------

1. Local property dealers
2. Analysis of recent transaction of rented property in the market
3. Local authority
4. Recent re-sale transaction of vacant property in market

839. Which following is not helpful in analysis of market data and in deriving
the net income multiplier from income approach of valuation?
1. Potential gross income
2. Gross income
3. Depreciation
4. Sale price

840. Value of lessee’s interest in a property will normally

1. Diminish with passage of time
2. Increase with passage of time
3. Remain the same till lease is extinguished
4. Increases annually

841. Factor is not considered in value estimation by cost approach?

1. Deduction of management expenses
2. Assessment of depreciation
3. Estimation of market value of land
179
4. Determination of reproduction or replacement cost new

842. Not relevant under the sales comparison approach?

1. Inspect and analyze the subject property to be valued
2. Identify and locate possible comparable property sales
3. Estimate of cost of construction the subject property
4. Analyze difference between subject property and comparable

843. Receipt of money in the future is worth less than money received at
present
1. Disagree with statement
2. Agree with statement
3. Depends on circumstances
4. It is same after all money is money today or tomorrow

844. Following is most accurate factor for applicability of income approach of

valuation of a property?
1. Subject property has recently sold
2. Subject property is unique
3. Subject property is old
4. Subject property produces an income

845. Following factors do not affect the physical life of building?

1. Materials used in construction
2. Workmanship
3. Weather condition
4. Shape of the land

846. Section 118 under transfer of property act, when 2 persons mutually
transfer the ownership of one thing for the ownership of other, neither thing or
both things being money only the transaction is called
1. A transfer
2. Exchange
180
3. Lease
4. Eviction

847. Under Section 59 of Indian Succession Act, which person may dispose of
his property by will
1. Person of unsound mind
2. Person of sound mind
3. Minor
4. Intoxicated person

848. Which of the following is NOT an input:

1. Labour
2. Entrepreneurship
3. Natural resources
4. Production

849. Which of the following Acts is considered an umbrella legislation with a

wider scope in comparison to the other notifications?
1. The Water (Prevention and Control) Act 1974
2. The Air (Prevention and Control) Act 1981
3. The Environment (Protection) Act 1986
4. The Water (Prevention and Control of Pollution) Cess Act 1977

850. Which of the following statement is true when a signing valuer has relied
on work done by others who do not sign the certification
1. Signing valuer has basis to believe that individuals performing work are competent
2. Signing valuer blindly relies on work carried out by contributing valuer
3. Signing valuer can transfer responsibility to contributing valuer in case of
discrepancy and claim innocence
4. Signing valuer should not disclose name of the contributing valuer to the client

851. The demand curve in demand & supply graph indicates ---------
1. Effect on market supply of a change in the demand for a good or service
181
2. Marginal cost of producing and selling different
3. Quantity of a good that consumers would like to purchase at different prices
4. Effect of advertising expenditures on the market price of a good

852. Index numbers are expressed in -------------

1. Percentages
2. Median
3. Range
4. Mode

853. Which of these is one of the causes of inflation?

1. Increase in public expenditure
2. Deficit financing
3. Increase in administrative prices
4. All the three

854. As per Right to Fair Compensation and Transparency in Land Acquisition,

Rehabilitation and Resettlement Act under Section 6, Government shall ensure
that the Social Impact Assessment Study report are prepared and made
available in
1. The local language
2. Any language
3. English
4. No publication

855. Business profit is equal to total revenue minus:

1. Economic cost
2. Managerial cost
3. Explicit cost
4. Implicit cost

856. Under transfer of property Act, the seller is -----------

182
1. Not entitle to the rents and profits of the property till the ownership thereof passes
to the buyer
2. Entitle to the rents and profits of the property till the ownership thereof
passes to the buyer
3. Entitle to the rents and other profits
4. Entitle to the profits

857. The difference between disposable income and consumption is ------

1. Saving
2. Expenditure
3. Both
4. None of the above

858. A valuer shall not misrepresent any facts or situation because

It is in the interest of the society
It is against professional ethics
It is in the interest of legal advisor of client
It is in the interest of the professional society

859. A valuer should wherever necessary disclose to the clients, possible

sources of conflicts of duties and interests, while providing unbiased services
because
This is in the interest of client
This is a wrong practice
It is against the ethics
Professional soceity discourages this

860. An agreement is viodable by the party whose consent is obtained by:

Misrepresentation
Exaggeration
Incomplete information
Wrong information

183
861. Which bank is called lender of last resort?
Commercial bank
Agricultural bank
Industrial bank
Central bank

863. Consumer surplus is the difference between:

The price firm is willing to charge and the equilibrium price
The quantity consumers were willing to buy and the quantity firms were willing to sell
The quantity consumers were willing to buy before and after a tax increase
The price consumer is willing to pay and what he actually pays

864. Dividend are usually paid on:

Authorised capital
Issued capital
Paid up capital
Reserve capital

865. Voidable contract is one:

Which is lawful
Which is invalid
Which is valid as long as it is not avoided by the party entitled to do so
Which is unlawful

866. Which of the following legislations regulates the handling of hazardous

substances?
The Water (Prevention and Control) Act 1974
The Water (Prevention and Control of Pollution) Cess Act 1977
The Environment (Protection) Act 1986
Factories Act 1948

867. As far as the investment in real estate is concerned --------- is very difficult
Generation of income
184
Getting back the capital
Divisibility of holding
Hedge against inflation

868. The Standard Fire and Special Perils Policy automatically cover works of
art for an amount not exceeding
Rs 5000
Rs 10000
Rs 20000
Rs 25000

869. Under Factories Act 1948, when it is required to appoint welfare officers?
When there are less than 500 workers
When there are more than1000 workers
When there are more than 500 workers
When there are less than 100 workers

870. As per building bye laws, an additional 100 percent FSI will be granted for
hostels exclusively used for
Sport activity
An educational institution
Seminar
Workshop

871. Economic eye of an enterprise is split in to periodical interval as per-------

Periodicity
Matching
Going concern
Accural

872. In perfect competition, restrictions on entry into an industry-------

Do not exist
Apply to labour but not to capital
185
Apply both to labour and capital
Apply to capital but not to labour

873. If mode value is not clear in a distribution, it can be ascertained by the

method of ----
Guessing
Summarising
Grouping
Trial and error

874. A valuer should not engage in any ----------, except when he has
temporarily surrendered his certificate with the valuation professional
organisation with which ha is registered
Employment
Chore
Drill
Activity

875. Year wise recording of data of valuation of a property will be called --------
classification?
Geographical
Qualitative
Mutual
Chronological

876. A multi storied apartment building is classified under which of the

following occupancy?
Residential
Commercial
Industrial
Assembly

186
877. Which technique normally cannot be employed in environmental
valuation?
Sales comparison technique
Cost technique
Income technique
Standard rent technique

878. ------------------- is the grouping of facts that are distinguished by some

significant characteristics
Tabulation
Survey
Classification
Index number

879. Under which of the following depreciation method the amount of

depreciation remains same throughout the useful life of an asset?
Straight line method
Reducing balance method
Sinking fund method
Sum of the digit method

880. Which of the following factor is not a common statistical indicator of

economic performance?
Rate of inflation
Interest rates
Rate of unemployment
Gross Domestic Product

881. Palaces still exist even after 200 years of construction. The age is called -
Economic life
Chronological age
Physical life
Life due to legal constraints
187
882. Which of the following is not required to be included in valuation report
of a flat?
The valuation method adopting giving the reasons for selecting said method
Details of total income of the owner of the flat and income tax liability of the
owner
Details of type of construction and amenities provided in the building
Details of carpet area and common areas available to the owner of the flat

883. ------------------ of material components in an object, which is not value

Utility
Benefits
Services
Cost

884. When one fact is declared by law to be ------------------- of another, the court
cannot allow evidence to be given in rebuttal
Inconclusive proof
Non conclusive proof
Conclusive proof
Non inconclusive proof

885. Commissioner is empowered to acquire by agreement any

Movable property
Immovable property
Both movable property and immovable property
Neither movable property and immovable property

886. Courts consider -------------- as more accurate method of estimating cost of

construction
Book value method
Flat rate method
Cost index method
Detailed quantity method
188
887. The obligation of an enterprise other than owner’s fund are known as:
Asset
Liabilities
Capital
None of these

888. Under Factories Act 1948 when is it required to appoint welfare officers
When there are less than 500 workers
When there are more than 1000 workers
When there are more than 500 workers
When there are less than 1000 workers

889. If the minor dies during the pendency of suit

Suit cannot be continued by the legal representatives
Suit can be continued by the legal representative
Suit can be continued by the legal representative by consent of other coparcenary
Suit is dismissed

890. The expected return on investment is called:

Marginal propensity to save
Marginal efficiency of investment
Marginal propensity to consume
Marginal revenue

891. Which of the following statement is not true?

Terrorism is included under Standard Fire and Special Perils Policy only
Lightening is excluded under Standard Fire and Special Perils Policy only
Bush fire is excluded under Standard Fire and Special Perils Policy only
Missile Testing operations is excluded under Standard Fire and Special Perils Policy
only

892. What is valued in property valuation is ------------

Real estate
189
Wealth
Land
Rights of a person to derive future benefit

893. Under section 64 of the Indian Easement Act, when a licensee is evited by
the grantor without any fault of his own----------
He is entitled to recover compensation from the grantor
He is not entitled to recover compensation from the grantor
He is entitled to recover compensation from the government
He is entitled to repossess the property

894. Why does the valuer need to provide information and records as may be
required by the registration authority, the tribunal, appellate tribunal, the
valuation professional organisation with he is registered, or any other
statutory body?
To enable a reasonable person to take a view on the appropriateness of his
decisions and actions
This is a wrong practice
It is against the ethics
This is in public interest

895. Which one of the following is function of an auditor, when planning to use
the work of an expert valuer?
Assess the professional competence of the expert
Assess the professional competence of personnel providing accounting information
Ensure the expert is an employee of the company for which audit is being performed
Ensure that expert is paid 50 percent of professional fees on award of assignment

896. When both parties lead evidence or have entered in to evidence, then
there—
There can be a question of burden of proof
There can be no question of burden of proof
There may be a question of burden of proof
190
Burden of proof is always there

897. In which of the following approaches to valuation, accrued depreciation

must be accounted for when determining the market value of the asset?
Market approach
Income approach
Cost approach
Discounted cash flow method

191
 CONSOLIDATED IBBI FAQ
1. The properties which are available in limited quantity and are not in
abundance command
5. Low value 3. High value
6. No value 4. Stable value

2. A Ownership is a
5. Bundle of rights 3. Bundle of ownership
6. Bundle of encumbrance 4. Bundle of legalities

3. If a thing can be owned only by one person at a time, it is called as

5. Partnership 3. Sole ownership
6. Association of persons 4. Trust

4. If two or more persons own a thing as in the case of a house or land. It is

called
5. Cooperative society 3. Proprietorship
6. Trust 4. Co-ownership

5. The legal relation between a person and an object denoted as

5. Ownership 3. Lease
6. Tenant 4. Lessee

6. ............. is one in which a property is conveyed to a person only for the

terms of his life. It is
5. Leasehold 3. Life estate
6. Freehold 4. Easement

7. It is the most complete ownership in real property. It implies absolute

ownership. The owner’s right is unrestricted in time (till perpetuity). This is
called as

192
5. Easement 3. Leasehold

6. Rented 4. Freehold

8. A freeholder gives out to someone for use for a fixed duration under certain
terms and conditions. This is called as
5. Sale 3. Rent
6. Lease 4. Mortgage

9. The use of someone’s land without obtaining the title is called as

5. Ground rent 3. Easement
6. Sub - lease 4. Lease

10. The owner of the adjacent premises may use the land owned by his
neighbour on a temporary basis is called as
5. Ground rent 3. Leasehold
6. Sub - lease 4. Easement right

11. Cost is conventionally used as a basis of accountability as recorded as a

price when transaction takes place at arm’s length
5. True 3. False
6. Not a function of accountability 4. None of the
above

12. Real estate appraisal is the process of developing an opinion of -------------

---------- value, for real property?
5. Market 3. income
6. cost 4. none of above

193
13. The property location also plays a key role in valuation. However, since
property cannot change location, it is often ---------------- that can change its
value
5. upgrades or improvements 3. mortgage loans

6. taxation 4. Highest and best

use

14. Use value to one particular user, and may be above or below the market
value of a property. The statement is ---------------------------
5. may be true
6. may not be true
7. Asset NPV for specific owner for specific use
8. None

15. Investment value is the value to one particular investor may be, -------------
5. not higher than the market value
6. not lesser than market value
7. not providing motivation for buyers/ sellers to enter marketplace.
8. Asset value to the owner for individual investment or operational
objectives.

16. What is the difference between property prices versus property value?
5. Price paid might not represent that property's market value.
6. What the property is really worth and what it cost to buy it.
7. Relationship between the buyer and the seller where one party had control or
significant influence over the other party.
8. Transaction may have been one of several properties sold or traded between two
parties with a premium price.

17. Investment in Real Estate enjoy the benefits of ____________

194
5. Perfect Competition
6. Capital appreciation
7. Divisibility
8. None

18. An owner of a neighboring property, by combining his own property with

the subject property, could obtain economies-of-scale. The price offered as?
5. Premium price 3. Market price
6. Market value 4. Cost

19. in corporate finance when a merger or acquisition happens at a price

which is higher than the value represented by the price of the underlying
stock. The price offered as?
5. Premium price 3. Market price
6. Market value 4. Cost

20. The most common reason for value differing from price is that buyer/
seller is uninformed as to what a property's market value is but agrees on a
contract at a high or cheap price. In this case, the valuer has to -------------------
5. to estimate the true market value
6. to estimate the true market price
7. not its market price
8. not its market value

21. Which one of the following is not one of the basic concepts of Valuation?
5. Interest receipts 3. Benefit
6. Security 4. Cost

22. The study of Supply and demand is _______________ Aspect

5. a Physical 3. a Social
6. An Economic 4. a legal

195
23. Value in Use is often referred to as ____________________
5. Objective value 3. Subjective value
6. Exchange value 4. Negotiated value

24. ___________ is controlled by Development control rules

5. Value in Use 3. Value in Exchange
6. Highest & Best Use 4. Transferability

25. Value in Exchange is also known as _______________

5. Cost 3. Price
6. Transaction 4. Interaction

26. Real estate has some _______ and, therefore, has a value.
5. Profit
6. Immobility
7. Non-marketable/ non-investment Characteristics
8. use

27. The price that would tend to prevail in a free, open and competitive market
on the basis of equilibrium set by the forces of demand and supply is called
5. Value in exchange 3. Value in use
6. Optimum value 4. Realizable
value

28. What is the subject matter of valuation?

5. Interest in a property 3. Land and
Building
6. Standard Rent 4. Profit Rent

29. Which one of the following is not a characteristic of real estate market?

196
5. No Free flow of information
6. It is imperfect market
7. It is perfect investment market
8. Heterogeneity

30. Which factor would negatively influence demand in real estate?

5. Low liquidity
6. Potential of capital appreciation
7. Regular income
8. Redevelopment potential of the property

31. Fee simple means ----------------------

5. Freehold ownership
6. complete ownership
7. Leasehold ownership
8. Most complete ownership subject to the Government powers

32. Interest is defined as the ___________ possessed by an object.

5. Demand 3. Price
6. Value 4. Legal Rights

33. If the owner’s Right which is imperfect is made perfect on fulfillment of

certain conditions is called ____________________
5. Co-Ownership
6. Concurrent Ownership
7. Duplicate Ownership
8. Contingent Ownership

34. The exclusive right of a Flat owner over his own flat along with rights of
proportionate share in common areas is called
5. Co-Ownership

197
6. Concurrent Ownership
7. Duplicate Ownership
8. Contingent Ownership

35. In a condominium the common area rights like lifts, staircase and
pavements are called as
5. Co-Ownership
6. Concurrent Ownership
7. Duplicate Ownership
8. Contingent Ownership

36. It is worth of an asset to specific user and therefore it is subjective and is

usually measured by cost of replacing the property less depreciation. It is
non-market based value. It is called as
5. Value in exchange
6. Desired value
7. Going concern value
8. Value in use

37. It is the price that would tend to prevail in a free, open and competitive
market on the basis of an equilibrium, set by forces of demand and supply.
Highest and best use or alternative use of the property is also considered
while estimating value. We may say it is also Fair market value
5. Forced sale value
6. Value in use
7. Going concern value
8. Value in exchange

38. What is the rate of redemption of capital when compared to market rate?
5. Equal
6. lower

198
7. Higher
8. cannot judge

39. For short term period leased properties or building having a shorter life
span, the rate of redemption of capital has to be dealt with
5. Net annual income
6. terminable income
7. High rate of recoupment
8. Sinking fund

40. Investment in immovable properties is considered as-----------------------

5. Sound
6. Unstable
7. Not a wise investment
8. Wrong

41. When compared to the yield rate available for long term investment in
Government security, the return of return on investment in real estate is
considered as
5. Higher
6. Lower
7. Not preferable
8. Same

42. In case of any sale or transfer, getting back the capital invested is
5. Not certain
6. Certain
7. Doubtful
8. Not possible at all

43. For owner occupied properties in a developed area, capital appreciation

is
199
5. Fairly bad chance
6. Fairly good chance
7. Worst chance
8. No chance

44. Because it is intended to directly reflect or model the expectations and

behaviors of typical market participants, ---------------approach is generally
considered the applicable valuation method for income-producing properties,
where sufficient market data exists.
5. Cost approach
6. Market approach
7. Income approach
8. Cost Index

45. DCF technique applies market-supported yields (or discount rates) --------
------ to arrive at a present value indication
5. To projected annual income
6. Lump sum reversion
7. None
8. to projected future cash flows - annual income figures and lump sum
reversion from the eventual sale of property

46. The rate of interest for Capitalization is _____________ to the degree of

security
5. not proportional 3. inversely proportional
6. directly proportional 4. not related

47. Two interest rates are considered for ____________ income

5. Perpetual 3. Terminable
6. Annual 4. None

200
48. Years purchase ____________ if number of year’s increases.
5. Increases 3. Decreases
6. remains same 4. None

49. As the unexpired period of lease increases, the capital value after
reversion goes on _______________
5. Increasing 3. Decreasing
6. Without changing 4. Negligible

50. In case the unexpired period of lease is too long then reversionary value
would be___
5. Negative NPV 3. Zero
6. Negligible 4. Less than zero

51. The net income was reported at Rs.21,000 and the property sold for
Rs.300,000. What capitalization rate applied for this sale?
5. 0.075 2. 0.080 3. 0.065 4. 0.070

52. A property has a net income of Rs.30,000. One appraiser decides to use a
12 Percent capitalization rate, while a second appraiser uses a 10 percent
rate. Use of the higher rate results in in appraisal value.
5. Rs.50,000/- increase 2. Rs.50,000/-
decrease
3. Rs 2,50,000 4. Rs 3,00,000

53. Which among the following is not a factor affecting market rent?
5. City 3. Location
6. Type of building 4. Turnover of the
lessee

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54. In relation to a lease agreement, the actual rent specified in the lease is
called _____.
5. Contractual rent 3. Effective rent
6. Negotiated rent 4. Standard rent

55. Profit method used for trading properties where evidence of rates is
slight, such as hotels, restaurants and gas filling stations by adopting----------
5. Three-year average of net income capitalized using an appropriate yield
6. Five-year average of net income is capitalized using an appropriate yield
7. Future income to be derived
8. None of the above

56. Under rent capitalization method, value of the property increases

with_______.
5. Higher property tax 3. Higher capitalization rate
6. Lower capitalization rate 4. longer duration

57. In DCF method, which assumptions lead to wrong calculation?

5. Inflation 3. Depreciation
6. Interest Rate 4. Deflation

58. The project becomes viable or profitable when NPV versus IRR--------------
5. NPV=0 2. NPV ≥ 0
3. NPV≤ 0 4. NPV = IRR

59. In the demand and supply curve, price is plotted as

5. X axis 2. Y axis
3. Z axis 4. None

60. The four factors - economic, physical, social and legal factors mainly
affect

202
5. Value 3. Cost
6. Price 4. None

61. Sale recorded at Registrar’s office is one of the sources where

5. Market value can be collected
6. Sale instances can be collected
7. Cost can be collected
8. Price can be collected

62. For collecting data for sale comparisons, a good source of information is
5. Court
6. Registrar of documents
7. Corporation
8. Town planning department

63. Buyers interested in purchasing single family residential property would

rather compare price, in this case, ----------------------------------------- would be
more applicable
5. Sales Comparison Approach method
6. Cost Approach method
7. Income Approach method
8. Detailed estimate method

64. The ----------------------------- to value is most useful in determining insurable

value, and cost to construct a new structure or building
5. Cost Approach 3. Market Approach
6. Income Approach 4. None

65. Appraisals of properties that are typically purchased by investors

(e.g., skyscrapers, office buildings) may give greater weight to --------------------
5. Income Approach 3. Sales comparison

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6. Cost Approach 4. All the above

66. Single apartment buildings of a given quality tend to sell at a particular

price per apartment. In many of those cases, the -------------------------------- may
be more applicable
5. Cost Approach 3. Market Approach
6. Income Approach 4. None

67. A multiple-building apartment complex would usually be valued by the ---

-------------------- as that would follow how most buyers would value it.
5. Cost Approach
6. Market Approach
7. Income Approach
8. None

68. If a single-family dwelling is in a neighborhood where all or most of the

dwellings are rental units, then some variant of the ---------------------- may be
more useful
5. Cost Approach
6. Market Approach
7. Income Approach
8. all of the above

69. A buyer who looked at seven very similar homes in a three year old
subdivision made an offer on the home with the lowest list price. The buyer
was utilizing the principle of --------------
5. Substitution
6. Anticipation
7. Desire
8. Income

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70. A separate value for the land is needed for the----------------------
5. Cost approach
6. Market approach
7. Income approach
8. Cost Index

71. Which of following would have effect on development potential and values
of properties?
5. FSI
6. Ownership pattern
7. Size/ room height
8. utility services

72. Value is an estimate of what ______ ought to be.

5. Value
6. Price
7. Cost
8. Worth

73. Which one of the following valuation methodology is most appropriate for
valuing a non-income generating residential bungalow?
5. Discounted Cash Flow Method
6. Profit Method
7. Direct Capitalization Method
8. Sales Comparable & Depreciated Replacement Cost Method

74. While carrying out valuation of property for bank finance, which of the
following is not to be taken into consideration?
5. Age of the building
6. Rent fetching capacity of the property
7. Economic obsolescence

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8. Amount of loan

75. Which of the following transaction is an arm’s length transaction?

5. Transaction between parties at auction sale.
6. Transaction between two brothers
7. Transaction between parent & subsidiary company
8. Transaction between two old friends

76. Which of the following will not be considered for the estimation of present
market value of above property?
5. Deprecation
6. Current building Replacement cost
7. Economic obsolescence
8. Current land rate

77. Data is collected on--------------------- of properties similar to the subject

being valued, is called comparable
5. Recent sales
6. earlier sales more than 2 years old
7. Proposed sale of properties
8. None of the above

78. A timber building on brick-walled pillars load bearing structure is an

example of
5. Functional obsolescence
6. Technological obsolescence
7. Economical obsolescence
8. Legal obsolescence

80. Modern technologies and planning concepts have made it possible in

converting this ----------------------------to new intelligent building concepts.

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5. Functional obsolescence
6. Technological obsolescence
7. Economical obsolescence

81. An old residential building in a centrally commercial area in the heart of

the city can be termed as
5. Functional obsolescence
6. Technological obsolescence
7. Economical obsolescence
8. Legal obsolescence

82. Quick estimation of costs of construction can be carried out by_________.

5. Sum of digit method
6. Detail estimation
7. Plinth area rate
8. discounted cash flow method

83. Actual survival life of the building before it collapses is called the _____.
5. Useful life
6. Economic life
7. Physical life
8. Residual life
84. 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 ___________.
5. Technological obsolescence
6. Economic obsolescence
7. Functional obsolescence
8. Both technological/ economic obsolescence

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85. Depreciated Replacement Cost is market value of special purpose
industrial plant building subject to potential______.
2. Profitability
3. Cost
4. Price
5. Value

86. --------------------------- is not the principle method in market approach

valuation
5. Sales Comparison method
6. Development method
7. Residual Method
8. Cost analysis method

87. The adjustment grid model can be adopted mainly for

5. Flats
6. Restaurant
7. Cinema theatre
8. Agricultural land

88. Under the adjustment grid model, the rate adjustment is mainly to be given
first for
5. Time
6. Location
7. Size
8. Age

89. Factors to be considered under Hedonic Pricing Model (Ad-hoc

Comparison Technique) are
5. Size, Time, Location
6. Size, Time, Location, Age
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7. Size, Time
8. Size

90. ---------------------- is not a recognized model under sales comparison

5. Adjustment Grid Model
6. Hedonic Pricing Model
7. Weighted Score system
8. Reversible Analysis Model

91. In Evaluation grid the first principle attribute to be considered and has
more weightage in determining the market value
5. Size aspect
6. Location aspect
7. Time aspect
8. Age aspect

92. In case of properties are considered for redevelopment as shopping/

office/ malls and others subject to assumption of rental income or profit, this
method can be adopted both by income and cost approach method.
5. Hypothetical building scheme
6. Hypothetical Plotting scheme
7. Hedonic Pricing Model
8. Adjustment Grid Model

93. --------------- ----------resorted to value a large sized plot for comparable in

market with smaller plots.
5. Belting method
6. Hypothetical Plotting scheme
7. Hedonic Pricing Model
8. Adjustment Grid Model

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94. Clubbing different ownership title lands at different distance from road ---
------- be valued by belting method
5. Cannot be valued
6. Can be valued
7. May not be valued
8. May be valued

95. If the land is situated in a business area of the town, the rental value is
5. Less
6. More
7. Double
8. Stable

96. If the land is situated where there are no infrastructure facilities like water,
power, drainage, and the value is
5. 50% of other plot
6. More
7. Stable
8. Less

97. When the land is large, the land rate is comparatively

5. Lower
6. Higher
7. Stable
8. Unstable

98. Wider frontage plot in a commercial zone is valued

5. Less
6. More
7. Constant
8. No value

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99. Return frontage is known as
5. Tandem plot
6. Intermittent plot
7. Corner plot
8. Middle plot

100. The plots having road in the front and rear side is called as
5. Single frontage
6. Return frontage
7. Multi frontage
8. Double frontage

101. Hypothetical plotting scheme is mainly used to value

5. Large open land
6. Flats
7. Industries
8. Residential building

102. Sale comparison method and development method (Residual technique)

are the two main methods under
5. Income approach
6. Cost approach
7. Market approach
8. Composite rate method

103. When total unavailability of sale instances are there, the method useful
to find the land rate is called as
5. Development method (Residual technique)
6. Sale comparison method
7. Land & building method
8. Profit method

211
104. By using this method, land value can be arrived at. This method is called
as
5. Development method
6. Profit method
7. Composite rate method
8. Income capitalization method

105. Joint venture is mostly applicable for

5. Individual residential building
6. Apartment building
7. Cinema theatre
8. Hotel

106. Joint venture agreement for redevelopment of properties is mostly

applicable for
5. Hotel
6. Industrial
7. Cinema theatres
8. Apartments

107. What is the minimum period for return of the unutilized acquired
property in LARAR ACT?
5. 5 years
6. 3 years
7. 7 years
8. 2 years

108. Limit of acquisition of land is restricted for

5. Railways
6. Highways

212
7. Power lines
8. agricultural lands

109. When Government acquires land, as Sec 2 LARAR Act will apply how?
1. Public Private Partnership Projects - consent of 70% of the affected families is
obtained.

2. For own use, require prior consent of 80 % of the affected families and for
Public Private Partnership Projects - consent of 70% of the affected families is
obtained.
3. Require prior consent of 80 % of the affected families is obtained.
4. No specific percentage consents

110. As per MORD Notification dated 9th February, 2016, in sub-section (1) of
section 46 of the said Act, the limit is ----------------------------- for its own use
5. Shall be 20 hectares in urban areas.
6. Shall be 40 hectares in rural areas.
7. Shall be 20 hectares in urban areas and 40 hectares in rural areas.
8. Shall be 40 hectares in urban areas and 20 hectares in rural areas.

111. For a where a private company purchases land for rehabilitation and
resettlement under the Act would apply to land --------------------
5. equal to or more than 50 acres in urban areas
6. equal to or more than 100 acres in rural areas
7. equal to or more than 50 acres in urban areas and 100 acres in rural areas
8. Equal to or more than 100 acres in urban areas and 50 acres in rural areas.

112. As per the 2013 Act, in the Scheduled Areas (tribal areas) to which the
fifth schedule of the constitution applies to --------------
5. land acquisition can happen

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6. No land acquisition can happen against of any law prevailing in such
Scheduled Areas.
7. Under directions from the judiciary
8. Under special conditions

113. Basement as per Building bylaws is ---------- in floor area ratio

5. Not considered
6. Excluded if used as car park
7. Depending on building type
8. depending on the land

114. Size of the plot determine the number of dwelling unit

5. Correct
6. Not correct
7. May be
8. Irrelevant

115. Minimum bathroom and toilet service facility in a residential house

1. 1–1
2. 1–2
3. 2–3
4. 2–4

116. Ownership rights in rent controlled properties

5. Transferred
6. Not transferred
7. Pledging rights
8. Power to make improvements

117. The value of the Rent Controlled properties will have a

5. High market value

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6. both low and high
7. No difference
8. Low market value

118. The Real Estate Act (RERA) makes it mandatory for commercial and
residential real estate projects, before launching the project, where with -------
-------------- has to register with RERA.
5. land area is over 500 square metre or proposal for 8 building units
6. 500 square metre of land area only
7. proposal for 8 building units only
8. Land area less than 500 sqm is also required to register

119. Does the Act cover commercial and residential project?

5. Cover only residential
6. cover only commercial
7. cover both (a & b)
8. Only for apartments

120. Does the Act cover Rural and Urban area?

5. Only in rural area
6. only in urban area
7. Power vested with the local authorities to direct the promoter to register
8. No specific area defined

121. In how many days, RERA authority required to register on receipt of the
application?
5. 30 days
6. 45 days
7. 60 days
8. 90 days

215
122. For ongoing projects which has not completed or have not received
completion certificate on the date of commencement of RERA Act will have to
seek registration------
5. Within 5 months
6. Within 3 months
7. Not required
8. or stop the work

123. What is called Occupancy certificate?

5. Relating to habitual use after completion of an apartment or building
6. Completion of water, sanitary and electrical services
7. Completion of entire project
8. Certification of building as per sanctioned plan

124. What is called Completion certificate?

5. Completion of building as per sanctioned plan
6. Completion of entire project
7. Relating to habitual use after completion of an apartment or building
8. Certification of the entire project by the competent Authority

125. Can garage can be sold independently?

5. it can be sold independently
6. cannot be sold independently
7. to be included in the building cost
8. None of the above

126. Are commercial or community facilities that are provided within the real
estate project can be -------------------------------?
5. sold separately
6. cannot be sold separately
7. can be with the promoter

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8. Common area includes commercial or community facilities, provided within
the real estate project are to be handed over to the Association

127. Under Section 14, can the promoter modify, amend sanctioned plan
during execution?
1. the promoter can do major modifications, amend sanctioned plan duly
approved by the competent authority, after getting RERA approval and
obtaining prior written consent from at least 2/3rd of Allottees,
2. the promoter can modify, amend sanctioned plan during execution of a real
estate project after RERA approval
3. without obtaining prior written consent from at least 2/3rd no. of Allottees,
4. the promoter can modify, amend sanctioned plan after getting approval from the
local authority

128. What is the period for which the promoter is liable for any structural
defects, Section 14(2)?
a. 5 years
b. 4 years
c. 3 years
d. 2 years

129. Under section 13, any promoter shall accept -------------------------- as an

advance payment, from a buyer?
1. Maximum of 10% of the cost of the apartment, as an advance payment, from
a buyer without first entering into a written agreement for sale and register the
same
2. 15% of the cost of the apartment, plot, or building, as an advance payment, from
a buyer
3. Sum more than 10% of the cost of the apartment, plot, or building, as an
advance payment, from a buyer

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4. Sum less than 15% of the cost of the apartment, plot, or building, as an advance
payment, from a buyer

130. As per Section 4(2) (l) (D, it is obligatory for promoters to deposit in a
separate account to cover the cost of land and construction a sum of ----------
the money collected from buyers for a particular project
5. a.70% of the money
6. b.60% of the money
7. c. 65% of the money
8. d. Nothing specific

131. The money collected from buyers for a particular project can be withdrawn
only after -----------------------
1. Certification from an engineer.
2. Certification from an architect
3. Certification from a chartered accountant
4. Certification from all the three

132. Under Section 16, it is obligatory for all the promoters to obtain insurance
for ----------
1. in respect of title of the land and buildings and construction of every
project
2. in respect of title of the land
3. in respect of buildings
4. in respect of construction of every project

133. Under Section 15(1), the promoter ----------------- transfer or assign his
majority rights and liabilities in respect of a real estate project to a third party
1. shall not transfer or assign his majority rights and liabilities of a real estate
project to a third party without obtaining prior written consent from at least 2/3rd no.
of Allottees,

218
2. shall not transfer or assign his majority rights and liabilities of a real estate
project to a third party without obtaining prior written consent from at least
2/3rd no. of Allottees except the promoter, and without the prior written
approval of RERA
3. can transfer without the prior written approval of RERA
4. can transfer without the prior written approval of RERA or obtaining prior written
consent from at least 2/3rd of Allottees

134. As per Section 59(2), if a promoter continues to violate the provisions of

Sec 3, ------------
1. shall be punished with imprisonment for a term which may extend to three years
or fine which may extend to 10% of the estimated cost of the project
2. shall be punished with imprisonment for a term which may extend to three years
3. fine which may extend to 10% of the estimated cost of the project
4. shall be punished with imprisonment for a term which may extend to three
years or fine which may extend to 10% of the estimated cost of the project or
both

135. Under Section 63, if a promoter fails to comply with orders or directions
of RERA, ---------
5. he shall be liable to a penalty, up to 5%, of the estimated cost of the project
6. he shall be liable to a penalty, up to 10%, of the estimated cost of the project
7. he shall be liable to a penalty, which may extend up to 5%, of the estimated
cost of the project as determined by the Authority
8. No such regulation

136. If owner of plot A with house has a right of way over his neighbour’s plot
B for beneficial enjoyment of house, owner A is called ____.
5. Co-owner
6. Dominant owner
7. Joint owner

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8. Servient owner

137. Easement apart from the -------------------------heritage can’t be transferred

5. Co-ownership
6. Dominant ownership
7. Joint ownership
8. Servient ownership

138. An Easement is imposed on property, that property is called------------------

5. Co-ownership
6. Dominant ownership
7. Joint ownership
8. Servient ownership

139. A’ dedicates to the public the right to occupy the surface of certain land
for the purpose of passing and re-passing. It is considered as ------------------
5. Not an easement
6. An easement
7. Unlawful usage
8. None of the above

140. Under Section 54 of Easement Act, Grant of license -----------

5. May be expressed
6. May be implied
7. May be expressed or implied
8. May not be

141. Under Section 57 of Easement Act, Grantor's duty to ---------------- defects

5. Disclose
6. Not to disclose
7. Not necessary

220
8. Duty of the licensee

142. Under Section 58 of Easement Act, the grant control render the property,
which is?
5. Safe
6. Unsafe
7. Danger
8. Unsafe and danger

143. Under Section 61 of Easement Act, Revocation of the licensed property is

5. Expressed or implied
6. Expressed only
7. Implied only
8. None of the above

144. The licensed premises has to be valued only by -----------------

5. Land and building method
6. Sales comparison method
7. Rent capitalization method
8. Net profit of the business

145. Ownership rights under licensed properties

5. Transferred
6. Not transferred
7. Pledging rights
8. Power to make improvements

146. Tenancy period under licensed properties

5. Limited to 5 years
6. As per license agreement
7. Cannot be stipulated

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8. Rest only with the licensee

147. The value of the licensed property is done by

5. Cost approach
6. market approach
7. Any other method
8. income approach

148. According to Transfer of Property Act, 1882 Instrument means

5. Non-testamentary instrument
6. Testamentary instrument
7. Testamentary and non- testamentary instrument
8. None of the above.

149. Under the Transfer of Property Act, 1882, the term "attested" means
5. Attested by two or more witnesses
6. Attested by one witness only
7. Attested by two witnesses only
8. No condition prevails.

150. Within the meaning of provisions of the Transfer of Property Act, 1882,
the immovable property does not include:
5. Standing timber or grass
6. Standing timber, jewelry and crops
7. Standing timber, growing crops or grass
8. only grass.

151. under the provisions of section 9 of the Transfer of Property Act, 1882 the
transfer includes-
5. Can be an oral transfer
6. written transfer only

222
7. (a & b) is correct
8. Only (b) is correct.

152. According to section 5 of the Transfer of Property Act, 1882, living person
includes:
5. Company or association or body of individuals
6. Individual human being only
7. Only important company or associations
8. None of the above.

153. under the provisions of section 6 of the Transfer of Property Act, 1882, a
right to future maintenance
5. Can be transferred
6. cannot be transferred
7. No such provision is made in the Act
8. None of the above.

154. Under the Transfer of Property Act, 1882 transfer of property cannot be
made for
5. A public office
6. A public office can be transferred
7. Such provision is absent in the Act
8. None of the above.

155. The term "transfer" under the Transfer of Property Act, 1882, refers to
5. Partly or whole transfer
6. Absolute or conditional transfer
7. Contingent transfer
8. Both (a) and (b) are correct.

156. Under the Transfer of Property Act, 1882, registered pertains to

223
5. Registration of property
6. Registration of documents
7. Registration of parties
8. None of the above.

157. Under the provisions of section 6 of the Transfer of Property Act, 1882,
the chance of an heir-apparent succeeding to an estate, the chance of a
relation abstaining a legacy on the death of a kinsman, or any other mere
possibility of like nature:
5. Cannot be transferred
6. Can be transferred
7. Can be transferred subject to certain conditions
8. None of the above.

158. Under the provisions of section 6 of the Transfer of Property Act, 1882, a
mere right of re-entry for breach of a condition subsequent cannot be
transferred to anyone except the owner of the property affected thereby
5. The statement is true
6. The statement is false
7. The statement is partly true
8. None of the above.

159. According to the provisions of the Transfer of Property Act, 1882, an

easement cannot be transferred apart from the dominant heritage
5. The statement is true
6. The statement is false
7. The statement is partly true
8. None of the above.

160. As per the provisions of section 6 of the Transfer of Property Act, 1882,
future maintenance-------------------------

224
5. Mere right to future maintenance can be transferred
6. cannot be transferred
7. No such provision is made in the Act
8. None of the above.

161. Under the provisions of the Transfer of Property Act, 1882, right to sue
5. A mere right to sue can be transferred
6. A mere right to sue cannot be transferred
7. No such provision is made in the Act
8. None of the above.

162. under the Transfer of Property Act, 1882

5. The salary of a public officer can be transferred
6. No such provision
7. The salary of a public officer cannot be transferred
8. None of the above.

163. Sale as per Section 54 of Transfer of Property Act defined as ----------------

5. Transfer of ownership
6. For a price paid or promised
7. Part-paid and part promised
8. Transfer of ownership in exchange for a price paid or promised or Part-
paid and part promised

164. Sale for tangible immovable assets can be made by ----------------------

5. Rs 100 or more to be done by a registered instrument
6. Less than Rs 100 to be done by delivery of property
7. More than Rs 100 to be done by delivery of property
8. Rs 100 or less to be done by a registered instrument

225
165. When the purchase-money has been paid, where the whole of property is
sold to different buyers, whereas when the seller retains any part of the
property comprised in documents, he is entitled to ---------------------------
5. Retain the documents, or hand over to the buyer of greatest value is entitled
to such documents
6. Retain the documents
7. Hand over the documents to greatest value is entitled to such documents
8. None of the above

166. Document is not necessary if value of immovable property is less than---

5. Rs.100
6. Rs 1000
7. If by delivery
8. If held in possession

169. A mortgagee shall have a right to cause the mortgaged property to be sold
and the proceeds of sale to be applied, in payment of the mortgage-money,
when the mortgage is under ------------
5. Simple mortgage
6. Conditional mortgage
7. English mortgage
8. Anomalous mortgage

170. Mortgagor sells the property on condition that on default of payment of

the mortgage-money on a certain date the sale shall become absolute, or on
condition that on such payment being made the sale shall become void. This
mortgage is called ----------------
5. Simple mortgage
6. Conditional mortgage
7. English mortgage
8. Anomalous mortgage

226
171. Where the mortgagor delivers to a creditor documents of title to
immoveable property, with intent to create a security thereon, the transaction
is called
5. Mortgage by deposit of title deeds
6. Simple mortgage
7. Conditional mortgage
8. English mortgage

172. In mortgage contract any condition that prevents the mortgagor from
getting back his property after the mortgage debt has been paid will be ---------
5. Invalid
6. valid
7. void
8. voidable

173. At any time after the principal money has become due the mortgagor has-
5. Right of redemption
6. Has no rights
7. only by the Court decisions
8. None of the above

174. A gives Rs. 5,00,000 to B on condition that he shall marry A’s daughter C.
At the date of transfer, C was dead. The transfer is void ______.
5. It is forbidden by the law
6. Court regards it as immoral or opposed to public policy
7. It is impossible to fulfil the condition
8. It is immoral transfer

175. Which of the following is not correct about ‘surrender of lease’?

5. Premature termination by lessee

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6. Unilaterally terminated by a lessee
7. Terminated with the consent of the lessor
8. It can happen post expiry of the lease

176. A lease of immovable property from year to year or exceeding can be by -

5. Oral agreement
6. Unregistered instrument
7. Registered instrument
8. Written statement

177. Head lessee subleases the property and he receive the rent and it is called
as---------
5. Head rent
6. Standard rent
7. Differential rent
8. Monopoly rent

178. A gift to two or more donees of whom one does not accept it. Then the
gift is -----
5. Void as to interest which he would have taken had he accepted
6. Valid as to interest which he would have taken had he accepted
7. Voidable at the option of the donor
8. Valid at the option of receiver

179. When does a mortgage by conditional sale become non-effective?

5. On default of mortgage-money payment
6. Sale is void if the mortgagor pays
7. Mortgaged property buyer has to retransfer the property when loan is fore closed
8. If sale conditions are not there in the mortgage deed

180. When the gift will not become void?

228
5. If the donee dies before acceptance
6. Gift with existing & future property
7. Acceptance must be during lifetime of donor
8. Gift of many things accepted fully

181. Which person cans acquire ownership by succession?

5. Property owner
6. Owner’s legal heir
7. Under adverse possession
8. Trespasser

182. Which is not the way for property transfer to owner’s legal heir?
5. Will
6. Lease
7. Gift
8. Settlement

183. What is an Immoveable property as per transfer of Property Act?

5. Standing timber
6. Growing crops or grass
7. Transport vehicle
8. Imbedded to earth – building

184. Which is not required for registration of property in transfer?

5. A Registered document
6. Physical delivery of property
7. Attestation of Witnesses for registration
8. Property ownership possession

185. Ownership is not?

5. A bundle of rights

229
6. special / limited rights
7. Liberties and power
8. holding a property illegally

186. Where rent reserved in an occupational lease is less than the market
rental value, it is called -------------------------------------------
5. Head rent
6. Standard rent
7. Virtual rent
8. Acknowledge rent

187. Which of the following items cannot be transferred under

Inheritance/Succession laws in India?
5. Personal movable property
6. Jewelry
7. Property not owned by self
8. Personal belongings

188. In case of a female intestate dying without issue but leaving her husband-
5. A husband will take all property
6. A husband will not take any of the property
7. A husband will take all property except property inherited from her father or
mother
8. A husband will only take 25 per cent of her property

189. Under sec 60 of Indian succession act, who can appoint a guardian or
guardians for his child during minority?
5. Father
6. Mother
7. Uncle
8. Friends

230
190. A widow who is willed the use of family home for the rest of her natural
life, with provision that title shall pass to children upon her death holds.
5. Easement interest
6. Life interest
7. Freehold right
8. Leasehold right

191. Which of following statement is true regarding Hindu succession

(amendment) Act 2005.
5. Women can now act as Karta of joint Hindu family.
6. Women cannot act as Karta of joint Hindu family before or after passing of the
Hindu
7. Succession (amendment) Act 2005.
8. Women cannot become Karta of joint Hindu family.

192. Under sec 61 of Indian succession Act, A will or any part of a will, which
has been caused by fraud and which takes away the free agency of the testator,
is -------------
1. Illegal
2. Valid
3. Voidable
4. Void

193. In the case of______________, either outflow of resources to settle the

obligation is not probable or the amount expected to be paid to settle the
liability cannot be measured with sufficient reliability.
5. Liability
6. Provision
7. Contingent liabilities
8. Contingent assets

231
194. ___________ refers to a situation where any person or a body corporate
is unable to fulfil its financial obligations (often occurring due to several
factors such as a decrease in cash flow, losses and other issues).
5. Insolvency
6. Bankruptcy
7. Liquidation
8. Acquisition

195. ________ is a situation whereby a court of competent jurisdiction has

declared a person of other entity insolvent, having passed appropriate orders
to resolve it and protect the right the creditors
5. Insolvency
6. Liquidation
7. Acquisition
8. Bankruptcy

196. Deflation is-----------------------------------:

5. Deficit budget
6. Reduction in taxation
7. Contraction in volume of money or credit that results in a decline of price
level
8. Increase in public expenditure

197. under sec 2(n) of RERA ‘common areas’ mean----------------------------------

5. Open parking areas
6. Terraces
7. Staircase
8. Open parking space, terraces, and staircase

198. Question of onus of proof when both parties lead evidence

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5. True
6. False
7. Will vary
8. Need not be

199. X transfers Rs.500 to Y on condition that he shall execute a certain lease

within three months after V’s death, and, if he should neglect to do so to Z, if
Y dies in X’s life time,
5. The disposition shall not take effect in favour of Z
6. The disposition in favour of Z takes effect
7. The disposition requires further conditions
8. The disposition in favour of X takes effect

200. Premature termination of lease is major __________ factor affecting the

value of leasehold property,
5. Physical
6. Legal
7. Social
8. Economic

201. A monopoly market will usually generate: -------------------

5. Higher prices and lower output
6. Higher prices and higher output
7. Lower prices and lower output
8. Lower prices and higher output

202. Cost prior to remediation specifically when no option is available except

waiting for the sanction from the authority and keeping the part of the property
under non-use, is said to be _____________,
5. Cost of utility
6. Cost of disruption

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7. Cost of control
8. Cost to public liability

203. Which of the following represents getting back of capital invested in a

property
5. Net income generation
6. Gross income generation
7. Redemption of capital
8. Accumulation of capital

204. Hypothetical building scheme is normally used for estimating value of

_________
5. Large size open land
6. Property with underutilized FSI on the plot
7. Industrial structure
8. Residential flats

205. According to NPV method projects that would be acceptable must have
5. Zero net present value
6. Negative net present value
7. Positive net present value
8. Internal rate of return in positive

206. Which one of the following is the largest employer in India?

5. Primary sector
6. Secondary sector
7. Tertiary sector
8. IT sector

207. Which of the following is recreational use of land under zoning

regulation?

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5. Playgrounds
6. Parks in residential society
7. Flower gardens and fruit farms
8. Hotels

208. Project’s expected monetary loss or gain by discounting all cash

outflows, using required rate of return is classified as?
5. Net present value
6. Internal rate of return
7. Net discounted value
8. Net future value

209. Which of the following factor is not relevant to the value estimation by
considering the highest and best use of property?
5. Reasonably probable future use
6. Physically possible use
7. Financially feasible use
8. Present inferior user of property

210. Hypothetically plotting scheme is mainly used to value-------------

5. Large open land
6. Flats
7. Industries
8. Residence

211. Depreciation fund/sinking fund method is designed to:

5. Only provide for depreciation of an asset
6. Provide for depreciation & also to accumulate the amount for its
replacement
7. Provide for the payment of some liability
8. To accumulate the amount of its replacement

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212. Market value of an object depends upon the future _________ that can be
derived out of it.
5. Benefits
6. Demand
7. Supply
8. Loan

213. Under profit method of valuation income is generated from __________

5. Only tangible assets
6. Both tangible and intangible assets
7. Only intangible assets
8. Only movable assets

214. These are kinds of rent except----------------------------

5. Differential rent
6. Scarcity rent
7. Mobility rent
8. Location rent

215. Inflation ------------------------------------

5. Always reduces the cost of living
6. Always reduces the standard of living
7. Reduces the price of products
8. Reduces the purchasing power of a rupee

216. Induce investment __________ with increase in income and _________

with decrease in income
5. Decrease, increase
6. Increase, decrease
7. Increase, remain same

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8. Decrease, remain same
217. under discounted cash flow method, value of the property increase with
_________
5. Higher property tax
6. Higher capitalization rate
7. Lower discount rate
8. Reduced income flow

218. What is public sector?

5. Sector run by people
6. Sector run by government
7. Sector run by co operation
8. International sector

219. Which one of the following actions should be done by valuer if he has
knowledge of any prior valuer having been appointed before accepting the
assignment?
5. Communicate in writing with prior valuer
6. Reject the valuation assignment
7. Carry out the valuation assignment and arrive at conclusions which are within
range of reasonableness of conclusions arrived by prior valuer
8. Carry out the valuation assignment and arrive at independent conclusions
without knowledge of a prior valuer

220. What do you mean by the value of an asset to a particular owner or the
prospective owner for individual investment or operational objectives?
5. Synergic value
6. Equitable value
7. Investment value
8. Market value

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221. Which one of the following statement is the responsibility of valuer in case
of value dispute?
5. Prepare plan of property
6. Prepare machine drawings
7. Meet regulatory authorities for value discussions
8. Substantiate his valuation report by providing relevant supporting evidence

222. The three broad types of productive resources are:

5. Money profit and interest
6. Capital, labour and natural resources
7. Bond, stock shares and deposits
8. Technology, human capital and markets

223. The internal rate of return (IRR) is _________

5. The amount which Re 1 invested today will become after some time at a certain
rate of interest
6. The actual return obtain from an investment
7. So calculated that future discounted receipts and discounted payments always
show profit
8. A rate fixed by the reserve bank of India above which lending cannot be done by
any bank

224. Which of the following is not a duty and function of the valuer?
5. To verify ownership in document and occupancy on actual site
6. To identify plot number in document as well as on site
7. To be responsible for correctness of survey findings by his assistant
8. To investigate title to the property to be valued

225. Which of the following is not relevant while estimating market value of
property with improvements?
5. Continuation of existing use

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6. Cost of repair carried out few years back
7. Adaptation to another use
8. Demolition and redevelopment

226. Sec 60 under transfer of act, affirms a right of redemption

5. All mortgage
6. In some particular mortgage
7. Not in a single mortgage
8. In some pledge

227. Which of the following is not physical factor and affects the value of the
property?
5. Annual maintenance
6. Gross domestic products
7. Property location
8. Neighbourhood properties

228. Economic obsolescence can be explained as___________

5. Physical determination
6. Loss in value due to external factors
7. A loss in value due to poor design
8. Repairable damage

229. Which of the following project should an investor choose on the basis of
Net present value results?
5. Zero is the NPV of project
6. INR (-) 1000 Million is the NPV of project
7. INR (+) 2000 Million is the NPV of Project
8. INR (+) 2200 Million is the NPV of project

230. After the institution of a suit for partition by a member of the joint family-

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5. Subsequent birth in the family diminish his share
6. Subsequent death in the family augment his share
7. Subsequent birth and death in the family does not affect share
8. Subsequent renunciation of the family diminish his share

231. The value generated by the income is the characteristic of _____property

5. Marketable investment property
6. Service property
7. Marketable non-investment property
8. Non marketable non-investment property

232. Saving function explain the relationship between ________ and ______
5. Saving, investment
6. Saving, consumption
7. Saving, income
8. Investment, consumption

233. When the prices of plant and machinery are to be compared, we compute
-----------
5. Value index
6. Price index
7. Volume index
8. Aggregative index

234. Sec 70 under transfer of property act, the natural accession is addition to
the security and becoming incorporated it are subject to --------------------
5. Redemption
6. Not redemption
7. Accession
8. Accretion
235. Interest is paid because----------------------

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5. Capital is scarce
6. Capital is productive
7. Capital is attractive
8. Capital is surplus

236. If the machinery costing Rs. 18,000 is sold after 2 years for Rs. 16,000. The
depreciation rate is 10 percent per annum on SLM method, then the profit or
loss from sale of machine is
5. Rs. 3,600 (Profit)
6. Rs. 1600 (loss)
7. Rs. 1600 (profit)
8. Rs. No profit no loss

237. In the notes of fixed assets of a company, closing WDV + Depreciation for
the year is equal to
5. Opening Gross Block
6. Opening WDV
7. Closing WDV
8. Closing Gross Block

238. Valuer should endeavour to ensure that he/it provides true and adequate
information because
5. This is not required under any law
6. This makes a sensible valuation report
7. This misleads client
8. This misleads public

239. In Indian Polity which one is Supreme?

5. The Parliament
6. Religion
7. The Supreme Court

241
8. The Constitution

240. Why a valuer, or his relative should not accept gifts or hospitality which
undermines or affects his independence as a valuer?
5. Avoid risk of influence on valuation conclusions
6. This is required as per valuation standards
7. This is required as per guidelines
8. This is in public interest

241. A flat was valued by ‘A’ at Rs. 21 Lakhs and then purchaser ‘B’ purchased
from seller ‘C’ said flat for Rs. 20 Lakhs with the help of broker ‘D’. In a court
case about correct sale value which of the following is not called a ‘witness of
fact’?
5. Purchaser ‘B’
6. Seller ‘C’
7. Broker ‘D’
8. Valuer ‘A’

245. A building is erected on a leasehold land which has 30 years lease period.
The valuer adopting life of an RCC building on the plot at 30 years is called
5. Life due to legal constrains
6. Obsolescence life
7. Physical life
8. Economic life

246. Infrastructure works like augmentation of road networks & transport

facilities will result in increased _________
5. Environmental deterioration
6. Overall developments
7. Crime rate
8. Withdrawal of capital

242
247. Which are two value ingredients of a marketable non-investment
property?
5. Liquidity and marketability
6. Liquidity and utility
7. Utility and Marketability
8. Non marketability and Liquidity

248. Value of a property offered for immediate sale by its owner for urgent need
of money to meet with legal obligation is called ________
5. Going concern value
6. Distress value
7. Forced sale value
8. Breakup value

249. Upon paying the amount of loss to the insured, the insurer steps in to the
place of the insured, taking over all his rights is called exercise of ______
5. Right of reinstatement
6. Right of contribution
7. Right of subrogation
8. Right to salvage

250. Under LARAR Act, market value of acquired land is derived from ________
5. Circle rates
6. Higher of the two: Average Rates under sale instances and Rates fixed for
stamp duty
7. Tate determined by the collector
8. The rate at which the land was initially purchased

251. Sale recorded at Registrar’s office is one of the sources from where------
5. Legal proof for market value of the property can be obtained

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6. Sale instances of only leasehold properties can be collected
7. Cost of property can be collected
8. Price of only freehold properties can be collected

252. Which of the following statements best describes the ‘carrying value’ of
an asset?
5. The cost of the asset less its residual value
6. Amount at which the asset is recognized in the balance sheet after deduction
any accumulated depreciation and accumulated impairment losses
7. Net value of asset or value carried in books of account, whichever is higher
8. The higher of the asset’s value in use and its recoverable amount.

253. Depreciated replacement cost of building to the new owner is called _____
to him
5. Price
6. Historic cost
7. Original cost
8. Value

254. Sec 112 under transfer of property act for waiver of forfeiture, but where
rent is accepted after the institution of a suit to eject the lessee on the ground
of forfeiture, such acceptance --------
5. Is a forfeiture
6. Is not forfeiture
7. Determination of lease
8. Transfer of lease

255. Under RERA at what stage does promoter can advertise his project?
5. After project is registered
6. Before project is registered
7. Either before & after project is registered

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8. Neither before & after project is registered

256. Statement that valuer does not have interest in property valued appears
in one of following section of report
5. Declaration
6. Conclusion
7. Assumptions and limiting conditions
8. Summary

257. Which of the following statement is true related to obligation of insured

on notification of a claim
5. To defend the insurer
6. To indemnify the insurer
7. ensure third parties named in policy are notified
8. To investigate / settle potentially covered claim

258. Agreement without consideration is declared-------------------

5. Void
6. Valid
7. Free consent
8. Enforceable

259. Inflation brings most benefits to which one of the following?

5. Government pensioners
6. Creditors
7. Saving bank account holders
8. Debtors

260. Cost approach is useful mainly for valuing _______.

5. Marketable properties
6. Non-marketable non-investment property

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7. Properties which are ready for redevelopment
8. Going concern business

261. All the property value is created by the ________ of the future benefits
the property will provide.
5. Competition
6. Contribution
7. Substitution
8. Anticipation

262. Value is an estimate of _________ as it ought to be

5. Price + Profit
6. Price
7. Cost
8. Offer amount

263. Capital amount paid once in order to receive an annuity of Rs. 1 for a
specified period of time at the specified rate of interest is called _______
5. Net amount
6. Capital
7. Years purchase
8. Capitalized value

264. Investment in real estate enjoys the benefits of _________.

5. Perfect competition
6. Capital appreciation
7. Divisibility of holding
8. Easy liquidity

265. As per RERA Act under sec 10 (3) if Government acquires multi-crop
irrigated land than ------------------

246
5. Less value amount of land
6. No cultivable wasteland shall be developed for agricultural purposes
7. A less area o cultivable wasteland shall be developed for agricultural purposes
8. Equivalent area of cultivable wasteland shall be developed for agricultural
purposes

266. The factor which is not to be considered when applying the residual
method of valuation is _________
5. Anticipated price by sale of the finished property
6. Cost of development project
7. Profit motive of the developer
8. Social benefit of the project

267. Estimate of an amount for auction sale is known as _______.

5. Liquidation value
6. Salvage value
7. Net present value
8. Replacement value

268. Inadequate infrastructure in the locality results in ______ market value of

property
5. Higher
6. Lower
7. Stagnant
8. 50 percent higher

269. No person shall construct any building with its plinth

5. Less than 40 C.Mts.
6. Less than 45 C.Mts
7. Less than 55 C.Mts
8. Less than 35 C.Mts

247
270. An ownership flat ‘A’ with 80 S.M. Area is in building in by lane. Similar
flat ‘B’ in similar building but located on main road is recently sold at Rs. 95,000
per S.M. If weightage for location is considered at 20 percent, which of the
following will be the fair sake price of flat ‘A’?
5. Rs 7600000
6. Rs 9120000
7. Rs 6080000
8. Rs 5000000

271. As per IBC, 2016, an application against the decision of the liquidator
rejecting the claim of a creditor may be made to
5. The Insolvency and Bankruptcy Board of India
6. The National Company Law Tribunal
7. The committee of creditors
8. The Debt Recovery Tribunal

272. Which of the following economic activity is not in the tertiary sector?
5. Banking
6. Bee-keeping
7. Teaching
8. Working in a call centre

273. In which of the following methods of depreciation, the depreciated

replacement cost of the building is directly obtained from the formula itself.
5. Written down value method
6. Straight line method
7. Constant percentage method
8. Sinking fund method

248
274. Which of the following denotes the dividend declared by the directors
between two annual general meetings?
5. Proposed dividend
6. Final dividend
7. Interim dividend
8. Unpaid dividend

275. A property fetches a leaseholder Rs. 30,000 per annum. The rent fixed to
the paid to the superior landlord is Rs. 16,000 per annum. If freeholder expects
a return of 8 percent, then the leaseholder should expect a rate as indicated
below so that he makes a reasonable profit.
5. 0.09
6. 0.07
7. 1.00
8. 0.01

276. Value of a property depends upon the future ______ that can be derived
out of it.
5. Benefits
6. Demand
7. Supply
8. Cost

277. The W.D.V of an asset after three years of depreciation on the reducing
balance method @ 10 percent p.a. is Rs. 36,450. What was its original value?
5. Rs. 40,000
6. Rs. 50,000
7. Rs. 45,000
8. Rs. 70,250

278. When there are only few sellers of the commodity, the market is called

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5. Monopoly
6. Duopoly
7. Oligopoly
8. Monopsony

279. Which of the following investment is having constrains of liquidity?

5. Long term Govt. Securities
6. Immovable properties
7. Shares & stocks
8. Bank FDs

280. As per sec 60A under transfer of property act, Where a mortgagor is
entitled to redemption he may require the mortgage, instead of re-transferring
the property, to assign the mortgage debt and transfer the mortgaged property
to such third person as the mortgagor may direct than the mortgagee.
5. Shall not be bound to assign and transfer accordingly.
6. Shall be bound to assign and transfer accordingly.
7. Is bound if the mortgagor assents
8. Shall not be bound to assign

281. Supply and demand is considered as ________ aspect affecting the value
of the property.
5. Physical
6. Social
7. Economic
8. Legal

282. Whenever there us a provision to the effect ‘that the court shall presume
a fact’ the court _____. It is compelled to take the fact as provided, i.e., it shall
have to presume the fact.
5. Can exercise its discretion

250
6. Cannot exercise its discretion
7. May exercise its discretion
8. Will exercise its discretion
283. Which of the following mathematical formula is used to find out Years
Purchase for annuity receivable in perpetuity?
5. 100/Rate of interest
6. 1 / {1-(100/rate of interest) ^n}
7. ((100/rate of interest) ^n)-1
8. {((100/rate of interest) ^n)-1}/rate of interest

284. While valuing assets in which the valuer is not conversant with its features
_______
5. It is advisable to engage the services of an expert and his report need not be made
a part of valuation report
6. It is advisable to engage the services of an expert and the signed report of
the expert be made a part of valuation report
7. He can privately seek the services of such expert and need not disclose in the
report
8. It is enough to mention in report about details of expert engaged.

285. Which of the following investment finds hedge against inflation

5. Long term Govt securities
6. Bank FD’s
7. Shares & stocks
8. Immovable properties

286. The plots which is connected to main road through a passage is called --
5. Narrow plots
6. Rectangular plots
7. Ribbon plots
8. Tandem plots

251
287. Who is not a special purchaser of property among the following?
5. Foreign purchaser
6. Relative of the seller
7. Owner of the adjoining plot
8. Director of the company

288. Who can't be registered as a valuer?

5. Company
6. Individual
7. Partnership
8. Society

289. Money is what Money does – who said it?

5. Smith
6. Marshall
7. F.A.Walker
8. Robbinson

290. Return of unutilized land to the land owner after ----------years in LARAR
act.
5. 2years
6. 3years
7. 4years
8. 5Years

291. The real GDP is measured in ------- prices & nominal GDP is measured in -
------ prices
5. Base year & Current year
6. Current year
7. Base year

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8. Current Year & Base year

292. Which is the safest and earliest liquidity

5. 2% of stock market
6. 10% of Return of Real estate investments
7. 7% of bank FD
8. 30% of promoter’s loan

293. under transfer of property act, the immovable goods does not include:
5. Standing timber or grass.
6. Standing timber, jewellery and crop,
7. Standing timber, growing grass or crops.
8. Only grass.

294. When the Mortgager right to redeem accrues the Mortgagee has a right
to enforce -------------
5. His Security
6. His interest
7. His cash
8. His debt

295. in 99 year perpetuity lease, is to be extended for another 99 years

5. Details of age of lessor and lessee
6. Improvements and extra FSI used
7. Date of the year of commencement
8. Date of start first year

296. Section 54 of Easement act the grant of License may -------------------

5. Express only
6. Implied only
7. Express or Implied

253
8. Oral only

297. Which of the following can be transferred under the Transfer of Property
Act?
5. Easement along with the dominant heritage
6. Political pension
7. Succession
8. Stipends of Government civil pensioners

298. ‘A’ leases land to ‘B’ on condition that he shall walk a hundred miles in
an hour. The lease is _________
5. Valid
6. Void
7. Voidable
8. Illegal

299. 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 -
5. Real investment value
6. Synergistic value
7. Liquidation value
8. Hope value

300. Onus of proof is a ----------- in the evaluation of evidence

5. Fact
6. Principle
7. Continuous process
8. One time process

301. Under which of the valuation approach, future cash flows from property
will yield to capitalized value of property?

254
5. Market approach
6. Income approach
7. Cost approach
8. Depreciated Replacement Cost Method

302. Annual Sinking fund to be set aside each year for recouping Re 1 at the
end of 6 years, at 5 percent rate of interest is represented by formula-----------
5. 0.05/ ((1+ 0.05)6-1}
6. {(1+0.05)6+1} / 0.05
7. 5 / (1+ 5)6-1)
8. 0.05 / {(1+0.05)6+1}

303. The important criteria for the selection of the best land in the town is -----
5. More width of road
6. Industrial zone
7. Prime Location and High FSI
8. Residential Zone

304. Which of the following method of valuation is normally adopted to

estimate value of land in the locality where there are absolutely no instances
of land sales available.
5. Profit method
6. Sale comparison method
7. Land & building method
8. Residue Technique of Development method

305. Which of the following is not a natural attribute of a land, but artificially
created by man?
5. Benefits
6. Location
7. Tenure

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8. Frontage

306. Costs due to extra supervisory personnel, additional testing, careful

monitoring as well as security is known as ………
5. Cost to operation
6. Cost to control
7. Cost to disruption
8. Cost of construction

307. Opinion expressed on value for the property by the valuer, as expert
witness, in a valuation dispute case is ---- to the court.
5. Binding
6. Not binding
7. Of No value
8. In form of advice

308. Which of the following distinguish Investment in Real estate vis-à-vis

other forms of investment.
5. Capital erosion
6. Redemption of capital
7. Income generation
8. Solvency

309. Which out of the following is not a reactor that affects demand & supply
or real estate?
5. Economic growth
6. Interest rate
7. Increased population
8. Number of cars in Household

310. The building cost index is worked out by the CPWD on the basis of ------

256
5. Estimates of building material and labour for the subsequent year as estimated by
CPWD
6. Rates of building materials and labour in Delhi vies-a-vies rates in city in
relevant state
7. Expected inflation rate as estimated by the finance ministry, Govt. of India.
8. An index obtained by estimating demand/ supply of housing determined by the
Bank of India Reserve

311. Utility means existing and anticipated ----- due to ownership & use of
property
5. Marketability
6. Scarcity
7. Transferability
8. Benefits

312. Which property does the corporation has a power to acquire

5. Movable
6. Immovable property
7. Both movable & immovable property
8. Neither movable & immovable property

313. Acceptance of valuation report submitted by valuer in the court does not
depend of ------
5. Reasons given by the valuer in the valuation report
6. The valuer successfully withstanding the test of cross examination.
7. Age of the valuer
8. Substantiating the report by producing supporting instances as proof.

314. The value of the rent Controlled properties will have ---------- value than
vacant property.
5. 100 percent higher

257
6. 50 percent higher
7. Exactly same
8. Lower
315. In case of gift, if donee dies before acceptance then.
5. Gift is valid
6. Gift is void
7. Gift is reduced
8. Court has to decide

316. In case of ------------ of contract the motive (intention) for the breach is
immaterial.
5. Breach
6. Failure
7. Recession
8. Cancellation

317. Under sec 59 of Indian Succession Act, A person who is ordinarily insane
may make a will
5. Never
6. Every time during insane
7. During interval when he is of sound mind
8. His heir

318. Gift to two or more donees, of whom one does not accept it is ---------------
--------
5. Valid as to interest which he would have taken had he accepted
6. Void as to interest which he would have taken had he accepted
7. Voidable at option of donor
8. Valid at option of heir.

258
319. The mortgager in Indian law who had parted with some right of ownership
and the right of redemption is a right which he exercises by virtue of his -------
5. Pecuniary ownership
6. Residuary ownership
7. Conditional ownership
8. Possession

320. Which valuation methodology should be used to calculate the market

value of vacant building excluding land?
5. Sales comparable
6. Depreciated replacement cost.
7. Income capitalization
8. Residue Technique

321. under adjustment grid model, for sale instance premises having -----
positive weightage is considered on sale rate, while comparing with subject
premises having standard specification?
5. Standard specification
6. Superior specification
7. Substandard specification
8. Deluxe speculation

322. Accumulative rate of interest is considered at ----- rate than remunerative

rate because higher security for accumulation of capital is needed.
5. Lower
6. Higher
7. Same
8. Double

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323. Which of the following represents the year purchase for Rs.1 with
remunerative rate of interest at 8% and annual sinking fund amount to be set
aside for recouping Rs .1 is 0.021.
5. 1 / (0.08+0.021)
6. 0.021/0.08
7. (0.08+0.021) / (0.021)
8. 1/(0.08-0.021)
324. As an independent valuer, the valuer should not charge __________ fee.
5. Professional
6. Success
7. Mandate
8. Legal

325. A valuer should not use or divulge to other clients or any other party any
confidential information about the ______ company.
5. Subject
6. Client
7. Public
8. Listed

326. Which one of the following is not essential element of the basic concepts
of valuation of immovable property?
5. Scarcity
6. Transferability
7. Safety of assets
8. Utility

327. Factory building has 1200 S.M. built-up area. Plot are is 2000 S.M. Building
is 25 years old and total life is 50 years. Replacement cost today is Rs. 25000
per S.M. industrial plot is available for Rs. 8000 per S.M. which of the following
is the fair sale price (ignoring savage) for the property?

260
5. Rs 46000000
6. Rs 31000000
7. Rs 16 000000
8. Rs 18400000

328. ‘A’ owes B Rs. 1000 payable on 1st December 2017 with interest. On 1st
June 2017 A offers to pay the amount with interest up to 1st of June 2017.
5. It is a valid Tender
6. It is not a valid Tender of performance
7. It is a legal tender
8. It is an Illegal Tender

329. Lessor has right to --------------

5. Receive profit rent from the property for the unexpired period of the lease
6. Receive lease rent for the unexpired period of ease
7. Receive lease rent for the economic life of the building.
8. Receive lease rent for the physical life of the building.

330. Which of the following is not a criterion in determining the highest and
best use of land?
5. Physically possible
6. Legally permissible
7. Financially feasible
8. Socially acceptable

331. Marriage value (also often referred to as synergic value) in valuation

basically means……………
5. Extinction of lease holder’s interest in the property when the merger takes place
6. Merger of right of co-owner of property with the co-owner
7. Increase in the value of the property due to merger of two different interests
held by to different persons.

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8. Owner’s interest in the property which is extinguished at the time of merger.

332. Which one of the following is not the characteristic of real estate market?
5. No free flow of information
6. It is imperfect market
7. It is perfect investment market
8. Heterogeneity

333. Dilapidated building requiring heavy structural repairs is --------

9. Physical depreciation
10. Economic obsolescence
11. Technical obsolescence
12. Functional obsolescence

334. An agreement is voidable by the party whose consent is obtained by

13. Misrepresentation
14. Fraud
15. Incomplete information
16. Wrong information

335. Which of the following is not to be considered while estimating Market

value of the property?
5. Utility
6. Benefits
7. Transferability
8. Distress of buyer/ seller

336. Cost of creating a new building having identical utility and performing
similar function as being performed by the existing old asset is called as -
5. Replacement cost
6. Reproduction cost

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7. Original cost
8. Historic cost.

337. Economic life of a RCC roofed load bearing building is normal considered
as ----
5. 100 years
6. 50-60 years
7. 40 years
8. 25 years

338. Under what circumstances, tenant can change the user of the tenanted
premises.
5. At the whims and fancies of the tenant
6. With consent of the landlord in writing, provided the user is permissible in
law.
7. After giving notice to the landlord
8. After permission from local planning authority.

339. Rent control Act, Transfer of property Act, development control rules and
building Bye-laws, and laws governing the land are ------ which affect the value
of property.
5. Technical factors.
6. Economic factors
7. Social factors
8. Legal factors

340. Under sec 63 of the Indian easements act, the licensee’s has a right on
revocation which means.
5. He is entitled to a reasonable time to leave the property
6. He has no light to remove any goods from such property.
7. He is not entitled for a reasonable time to leave the property.

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8. He has no right to keep and goods from such property.

341. Which of the following development control rules have effect on intensity
of use of land?
5. Zoning
6. Floor space index
7. For fire-fighting
8. Rules for minimum of open space
342. Where rent reserved in an occupational lease is less than the full rental
value, it is called ----------------
5. Acknowledgement rent
6. Head rent
7. Standard rent
8. Virtual rent

343. Which of the following is not a method used to calculate depreciation?

5. Straight Line Method
6. Declining Balance Method
7. Average-of-the year Digits
8. Constant percentage method

344. Which of the following details are not required to be included in the
valuation report for present day value of an open plot of land?
5. Name of all the owners of the property and with details of share of each co-owner
6. Available comparable sale instances in the locality during relevant period of
valuation
7. Details of year of purchase of land and price paid while acquisition.
8. Analysis of data collection by giving details of weight ages adopted for different
factors and adjustment made in sale rate.

345. Right to property is a ___ right.

264
5. Fundamental
6. Statutory
7. Constitutional
8. Human

346. Number of years for which a new asset is profitably used for its intended
purpose is known as _______.
5. Economic life
6. Normal useful life
7. Age
8. Physical life

347. Useful life of an asset is affected by which of the following?

5. Cost
6. Replacement cost
7. Wear and tear
8. Net Book Value

348. Where a coparcenary consists of several branches and a partition takes

place
5. Each branch takes as per capital
6. Each branch and member of each branch takes per capital
7. Each branch and member of each branch takes per stripes
8. Each branch takes per stripes and member of each branch takes per capital.

349. A valuer should co-operate and be available for ____ and investigation
carried out by the concerned authority
5. Inspection
6. Scrutiny
7. Alliance
8. Argumentation

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350. Valuer should adopt ___rate of capitalization if income flow is safe &
secured.
5. Lower
6. Higher
7. Same rate as lending rate of bank
8. Interest rate of his own choice

351. Which of the following is not in relevant factor while estimating

depreciated replacement cost of a building?
5. Year of construction
6. Size
7. Accessibility
8. Specification

352. Not true with respect to valuation of Joint venture development of

property
5. Estimate market value of land offered for development of land owner
6. Estimate cost of construction of building proposed on land.
7. Required to consider which political party is ruling in the state.
8. Consider value of financial benefit and profit @ future date that is contingent upon
performance and fulfillment of terms of contract.

353. Following approach to valuation, an accrued depreciation must be

counted to determine market value of assets
5. Market approach
6. Income approach
7. Cost approach
8. Discounted cash flow method

354. Common in distress sale forced sale will have -------------

266
5. Adequate marketing time
6. Market value
7. Insufficient market time
8. Private negotiations

355. Economic principle is not required to be considered for conventional

valuation of property _____
5. Demand
6. Price
7. Utility
8. Cost

356. Opinion expressed on value of the property by the valuer, as expert

witness, in a valuation of dispute case is ...........to the court.
5. binding
6. not binding
7. of no value
8. inform of advice

357. Total age of building 4 years. After four years the depreciated value is
equal to 24% of the cost. Find out the % of depreciation (near to answer) by
WDV method?
5. 24
6. 25
7. 30
8. 35

358. Infrastructure works like augmentation of road networks & transport

facilities will result in increased ____
5. Environmental deterioration
6. Overall developments
7. Crime Rate
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8. Withdrawal of capital

359. Not a fact but an estimate

5. cost
6. price
7. value
8. Loss

360. Adverse changes to demand for the product or services produced by an

asset will result into ____
5. Physical
6. Functional
7. Economic
8. Legal

361. Key element of income approach?

5. Potential income stream
6. Expenses
7. Outstanding loans
8. Capitalization rates.

362. Factor is not considered for weightage adjustment in sales comparison

5. Location
6. Size
7. Accessibility
8. It payable by seller of comparable

363. Valuation of land always involves consideration on the principle of

5. HABU
6. Competition
7. Surplus productivity

268
8. Contribution

364. Sec 107 under transfer of act, a lease of immovable property from year to
year, or for any term exceeding one year or reserving a yearly rent, can be
made only by -----------------
5. Ordinary instrument
6. Registered instrument
7. Unregistered instrument
8. Oral

365. Why should an entrepreneur do a feasibility study for a new venture?

5. To see if there are possible barriers to success
6. To identify possible sources of funds
7. To estimate the expected sales
8. To explore potential customers

366. Fully developed land with fully tenanted building occupied by the
protected tenants by ------------ of valuation
5. Any method
6. Cost approach
7. Market approach
8. Income approach

367. Which is the most appropriate method of valuation for an income

generating commercial asset?
5. Land & Building method
6. Any method
7. Direct comparison method
8. Discounted cash flow method

269
368. Which of the following need not form part of the valuation report if fully
tenanted property is offered for sale by the user of the report?
5. Prevalent cost of construction in the locality
6. Total rent receivable from the property
7. Details about total life period for which the rental income flow will continue
8. Details of all outgoings and prevalent rate of capitalization in the market for similar
property in the locality.

369. After leasing of the property, the lessor’s right is sometimes called -----
right
5. diminishing
6. occupational
7. residual
8. possession

370. Which of the following is considered as a special property

5. Residential land
6. Industry
7. Commercial office space
8. Sports Arena

371. The property falling in the locality lacking in the infrastructure will ------
with the value of the property
5. Increase
6. Decrease
7. Stabilize
8. Have no relation with

372. Which valuation methodology should be used to calculate the market

value of vacant building excluding land?
5. Sales comparable

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6. Depreciated replacement cost
7. Income capitalization
8. Residue technique

373. In cash of Usufructuary mortgage the mortgagee is placed in possession

and has a right to enjoy the rent and profit
5. Until debt is paid
6. Till contract is rescinded
7. Until debt is not paid
8. Till contract is not rescinded

374. Vertical interest is about-----------------

5. Legal concept of space above land surface
6. Legal concept of space below land surface
7. Both (1 & 2)
8. None of the above

375. A condition that decreases the utility of the property and is not
economically feasible to cure is called__________
5. Incurable function
6. Fully depreciated property having no value
7. Incurable functional obsolescence
8. Un-functional obsolescence

376. Any loss of utility resulting from inefficiencies in the subject Asset
compared to its replacement such as its design, specifications or technology
being outdated is known as______
5. Physical obsolescence
6. Functional obsolescence
7. Economic obsolescence
8. Legal obsolescence
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377. Under transfer of property act sec 58 a mortgage is the transfer of an
interest in specific immoveable property for the repayment of a debt
5. Question of interest does not arise
6. Such interest itself in immovable property
7. Such interest is not in immovable property
8. Such interest itself in movable property

378. In case of gift of immovable property, the transfer must be effected by a

registered instrument
5. Signed by or on behalf of the donor, and attested by at least two witnesses

6. Signed by or on behalf of the donor, and attested by at least one witnesses

7. Signed by or on behalf of the donor, and attested by witnesses

8. Not required - Only attested by witnesses

379. Sec 114A under transfer of act, where a lease of immovable property has
been determined by forfeiture for a breach of an express condition which
provides that on breach there of the lessor may re-entry, no suit for ejectment
shall lie
5. Oral assent
6. Unless and until the lessor has served on the lessee a notice in writing
7. Without any notice in writing
8. Lessor consent

380. The main objective of providing depreciation is to

5. Reduce tax burden
6. Provide funds for replacement of fixed asset
7. Show the true financial position in the balance
8. Comply with the legal requirements

381. __________ is the expression of future benefits in terms of present value

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5. Annuity
6. Capitalization
7. Net Income
8. Weighted averaging

382. Market value of reversionary right of lessor is estimated by___________

5. Deferring cost of the building
6. Capitalizing rent received from the property
7. Capitalizing profit rent for unexpected lease
8. Deferring market value of property as freehold

383. Adverse changes to demand for the product or services produced by an

asset will result into
5. Physical obsolescence
6. Functional obsolescence
7. Economic obsolescence
8. Legal obsolescence

384. Loss in value from forces external to the property and which is incurable
is called ____
5. Incurable depreciation
6. Declining Sinking Fund
7. Economic obsolescence
8. Functional Deterioration

385. A Hindu dies leaving behind father and son's daughter's son. They are
5. Class I heirs
6. Class II heirs
7. Class III heirs
8. Preferential heirs

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386. In case when the owner’s right, which is imperfect and it be subsequently
made perfect, on fulfilment of certain conditions, it is called
5. Co – ownership
6. Concurrent ownership
7. Duplicate ownership
8. Contingent ownership

387. A Hindu female wife dies and is survived by her husband have one son
and two unmarried daughter D1 and D2 how property of wife will be divided?
5. 1 by 3 to husband, 1 by 3 sum and remaining 1 by 3 to daughters
6. Into four equal parts
7. One half to husband and remaining half to son and daughters
8. One half to son and remaining half to husband and daughters

388. Which is the following element is not the key element of the income
approach?
5. Potential income streams
6. Expenses
7. Outstanding loans
8. Capitalization rate

389. Under profit method of valuation income is generated from----

5. Only tangible assets
6. Both tangible & intangible assets
7. Only intangible assets
8. Only movable assets

390. Which return would you adopt as base while determining appropriate rate
of the net profit, unless it is otherwise found unsuitable?
5. The return from investments in stock and shares

274
6. The return from gilt-edge security
7. Interest paid in the saving account
8. The return from investment in gold

391. The income chargeable under head ‘capital gains’ is computed by

deducting the _______ from the full value of the consideration received as a
result of transfer of the capital asset.
5. Expenditure incurred wholly and exclusively in connection with such
transfer
6. Expenditure incurred wholly and excessively after such transfer
7. Indexed cost of repairing to be carried out
8. Index cost of any improvements carried out after such transfer

392. Which one of the following best defines Annual sinking fund?
5. Annual sum required to be invested to an amount of Re. 1/- in specified years
6. Monthly sum required to be invested to an amount of Rs. 10/- in specified years
7. Annual sum required to be invested to an amount of Rs. 10/- in specified years
8. Annual sum required to be invested to an amount of Rs. 100/- in specified years

393. The value at the end of utility period of the asset without being dismantled
is called ____ value.
5. Salvage
6. Realizable
7. Scrap
8. Junk

394. Where on a transfer of property, an interest therein is created in favour of

a person to take effect only on the happening of a specified event, such
interest is called _________.
5. simple interest
6. Diminishing interest

275
7. Vested interest
8. Contingent interest

395. The approach to valuation of rented properties depends on_________.

5. nature and behaviour of landlords
6. category of tenants - tenant protected or not protected under the applicable
rent act
7. rent paying capacity of the tenant
8. cordial and homely relationship between landlord and tenant

396. A rupee received today can be invested now to earn interest, this can
result in a higher value in future is called as ------------------
5. benefit cost
6. opportunity cost
7. investment cost
8. market cost

397. The weightage score method is applicable to

5. market approach
6. income approach
7. both a and b
8. cost approach

398. According to Hindu Succession Act, on her dying intestate wife property
shall devolve ------------------
5. On her children alone
6. On her children and husband alone
7. On her children, husband and her parents.
8. On her children and husband and thereafter upon her parents and the heirs
of parents.

276
399. As per Hindu Succession Act, in the absence of any issue to her, the
property inherited from her parents would be ------------------------
5. Reverted back to her parents
6. Reverted back to her parents or heirs of her parents,
7. Reverted back to her parents or heirs of her parents, instead of devolving
upon the husband or heirs of husband.
8. Reverted back to her parents, instead of devolving upon the husband

400. According to Hindu Succession Act, when two or more heirs succeed to
the property of an intestate, they shall take --------------------
5. Their share as per capita and called as joint tenants.
6. Their share as per stripes and called as joint tenants.
7. Their share as per capita and per stripes and called as joint tenants.
8. Their share as per capita and NOT per stripes as tenants in common and not
joint tenants.

401. As per Mohamedan Law, succession among heirs of the same class but
belonging to different branches ------------------------
5. May either by per capita the succession is equally undivided
6. May either by per strips the succession is equally undivided
7. May either by per capita or per strips the succession is according to number
of heirs equally divided
8. May either by per capita or per strips the succession is unequally divided

402. As per Mohamedan Law, the share of a female in place of a male

5. Female : Male = 1 : 1
6. Female : Male = 1 : 2
7. Female : Male = 1 : ½
8. Female : Male = 2 : 1

403. ‘A’ makes a contract with ‘B’ to beat his business contract, this is an
example of ---------------
277
5. Valid contact
6. Illegal contract
7. Voidable contract
8. Unenforceable contract

404. Which of the following term is not included in the International Valuation
Standards definition of market value
5. Sale price
6. Estimated amount
7. Date of valuation
8. Willing seller

405. Which one of the following statements is true as per guidelines pertaining
to remuneration and costs as per Companies (Registered valuers and
valuation) rules, 2017?
5. Valuer should charge fees as per the guidelines for fees given by any major public
sector bank
6. Valuer can accept fees or charges which are disclosed to and approved by
the persons fixing the remuneration
7. Valuer can accept fees or charges other than those which are disclosed to and
approved by the persons fixing the remuneration
8. Valuer should charge fees as per the guidelines for fees given on Wealth Tax Act

406. A Tort is inflicted against --------------------

5. With consent
6. Free consent
7. Without consent
8. Implied consent

407. Section 114A under Transfer of Property Act, where a lease of immovable
property has been determined by for forfeiture for a breach of an express

278
condition which provides that on breach thereof the lessor may re-enter, no
suit for ejectment shall be
5. Lessor consent
6. Unless and until the lessor has served on the lessee a notice in writing
7. Without any notice in writing
8. Oral consent

408. Any profit or loss on the sale of sinking (depreciation) investments is

transferred to ------------------
5. Profit and loss account
6. Asset account
7. Sinking fund account
8. Depreciation account

409. Which of the following is not covered under fire floating policy?
5. Stocks in process blocks
6. Stocks in godown
7. Stocks in the open
8. Stocks in transit

410. As per IBC, 2016, debts owed to a secured creditor in the event of such
secured creditor has relinquished security, ranks equally with ---
5. Workmen’s dues for a period of 24 months prior to liquidation
commencement date
6. Wages and any unpaid dues owed to the employees other than workmen for the
period of twelve months preceding the liquidation commencement date
7. Insolvency process cost
8. Dues to the Central Government

411. A -----------contract is a contract to do or not to do something, if some

event, collateral to such contract does, or, does not happen

279
5. Ordinary
6. Voidable
7. Contingent
8. Unenforceable

413. Which of the following define is appropriate for the term real estate?
5. Building and other improvements
6. Property that is not encumbered by leases
7. Land and anything permanently attached to the land
8. Building and fixture

414. Reversionary value means --------------------------

5. The value on revision of rent .i.e. a new rent agreement between landlord and
tenant
6. An amount reverted back on sale of property
7. A specified value estimated for payment of taxes such as capital gains or municipal
taxes
8. Present value of land which would revert to the lessor after expiry of lease
period

415. Which of the following is an optional cover under Industrial All Risks
Policy?
5. Machinery breakdown
6. Electronic equipment
7. Business interruption (Machinery breakdown)
8. Business interruption (Fire & Special perils)

416. A notice under Section 111 of Transfer of property Act can be waived -----
--------
5. By express or implied consent of the person to whom it is given
6. By implied consent of the person to whom it is given

280
7. By express consent of the person to whom it is given
8. By notice to either of the party

417. Which one is true in case of contaminated restored property?

5. Stigma is removed
6. Market will pay reasonable price
7. Market will still pay less than the similar property in the market
8. Market will pay the cost of remediation also

418. Is it permissible for landlord to disconnect / cut off essential service being
provided to tenant?
5. Yes
6. No
7. Yes, after notice to tenant
8. Yes, after order from court

419. Variable cost per unit -------------------

5. Variable cost per unit
6. Remains constant
7. Increases when output increases
8. Decreases when output decreases

420. Moving along with indifference curve the ------------

5. Marginal rate of substitution for a good, increases as more of the good is
consumed
6. Marginal rate of substitution is constant
7. Marginal rate of substitution equal to 0
8. Consumer does not prefer one consumption point to another

421. The constant increase in production of cereals constitutes the component

of a time series

281
5. Cyclic variation
6. Dummy trend
7. Seasonal variation
8. Secular trend

422. An agreement enforceable by law is a -----------

5. Illegal
6. Affidavit
7. Contract
8. Agreement

423. Two basic assumption of Ricardian concept of rent is that ----------

5. The land is used to produce food grains only and no other use of land is considered
and the theory operates only in short run
6. The land is used to produce food grains only and other uses of land is also
considered and the theory operates only in short run
7. The land is used to produce food grains only and other uses of land is also
considered and the theory operates only in the long run
8. The land is used to produce food grains only and no other use of land is
considered and the theory operates only in the long run
424. Whoever deserves, any court to give judgment as to any legal right or
liability, dependent on the existence to facts which has asserts, must prove
that these facts exist. This is defined as -------------
5. Onus of proof
6. Evidence
7. Experts’ opinion
8. Burden of proof

425. The construction work is not possible for the following or as per building
byelaws, no development is permissible on:
5. Beaches

282
6. Market
7. Small houses
8. Commercial complex

426. Loss due to damage by --------------- is not possible under standard fire
policy
5. Fire
6. All perils
7. Impact damage
8. Natural calamity

427. Closing entries of the firm are passed on ------------------

5. In trading account
6. In Trial Balance
7. In journal
8. In profit and loss account

428. Occupancy rights of the occupant of the premises under Easement Act is
as --------------------
5. Licensee
6. Statutory tenant
7. Lessee
8. Trespasser

429. Contract of indemnity is ---------------

5. Tripartite
6. Bilateral
7. Multipartite
8. Multilateral

430. Which one of these is not a primary sector?

283
5. Farming
6. Dairy
7. Fishing
8. Textile

431. Amount received by sale of scrap by a club is treated as ----------

5. Income
6. Expense
7. Assets
8. Liability

432. ‘A’ purchased a mine for Rs 2,50,000 minerals in the mine were expected
to be 5,00,000 tonnes. In the first year, 50,000 tonnes of minerals were used.
What is the depreciation for the first year?
5. Rs 20000
6. Rs 25000
7. Rs 10000
8. Rs 15000

433. Salaries due for the month on March will appear -----------
5. On the receipt side of the cash book
6. On the payment side of the cash book
7. As a contra entry
8. Nowhere in the cash book

434. Unpaid salary for 340 is to be provided for in the accounts

1. Bills receivable Book
2. Purchase Book
3. Journal Proper (General Journal)
4. Purchase return

284
435. In case of -------------- the motive (intention) of the breach is often taken into
consideration
5. Tort
6. Contract
7. Agreement
8. Tender

436. As per Companies Act, 2013, sec 192(2), the notice for approval of the
resolution by the company or holding company in general meeting under sub
section(1) shall include the particulars of the arrangement along with the value
of assets
5. Involved in such arrangement duly calculated by an auditor
6. Involved in such arrangement duly calculated by an liquidator
7. Involved in such arrangement duly calculated by a registered valuer
8. Involved in such arrangement duly calculated by a Insolvency Resolution
Professional

437. He presented the theory of rent ----------

5. Malthus
6. Allarna Iqbal
7. Ricardo
8. Marshall

438. Which one of the following is not true under Factories Act, 1948?
5. Factory is any premises whereon 10 or more workers are working, or were working
on any day of the preceding 12 months, and in any part of which a manufacturing
process is being carried on with the aid of power
6. Factory is any premises whereon 20 or more workers are working, or were working
on any day of the preceding 12 months, and in any part of which a manufacturing
process is being carried on with the aid of power
7. A mine or mineral mining site is a factory

285
8. Occupier of a factory means the person who has ultimate control over the affairs
of the factory

439. Mean is a measure of -----------------

5. Location (central value)
6. Dispersion
7. Correlation
8. Variation

440. The market value of reversionary right of the lessor is estimated by ----
5. Deferring cost of the building
6. Capitalizing rent received from the property
7. Capitalizing profit rent for unexpired lease
8. Deferring market value of the property as freehold

441. As per Right to Fair Compensation and Transparency in Land Acquisition,

Rehabilitation and Resettlement Act under Section 12, the Government to
determine the extent of land to be acquired, should be conducted in
5. Presence of Officers
6. Presence of owner
7. In the absence of owner
8. In the absence of any person authorized by the owner

443. Ingredients of Investment property are self-liquidity, utility & -------

5. Scarcity
6. Non marketability
7. Non recovery
8. Marketability

444. The problems related to price rise are handled under ------------
5. Management accounting

286
6. Cost accounting
7. Financial accounting
8. Inflation accounting

445. When a minor coparcener files a suit for partition through guardian or next
friend and court finds the partition being for the welfare of the minor, the
partition / severance of status place from the date
5. The institution of the suit
6. Of the court order
7. Fixed by the court
8. Agreed by the parties

446. A contract by which one party promises to save the other from loss
caused to him by the conduct of promisor himself or by conduct of any person
is called as
5. Contract of indemnity
6. Contract of breach
7. Contract of guarantee
8. Performance of contract

447. Remedies for enforcement of the fundamental rights conferred by this part
– writs of habeas corpus, mandamus, prohibition, certiorari and ----------
5. Ultra vires
6. Ratio Decidendi
7. Quo Warranto
8. Stare Decisis

448. The forest animals are not bounded by the following act ---------
5. Indian Forest Act
6. Indian Wild Life Act
7. Environmental protection Act 1986

287
8. Bio diversified Act

449. After wife expired, the property right goes to, ---------
5. Husband
6. Husband cannot take
7. Self-acquired property to husband and ancestral to her parents or her
parents legal heirs
8. Only 25% goes to husband

450. The annual equivalent of premium plus actual rent paid is called -
5. Standard rent
6. Actual rent
7. Acknowledgement rent
8. Virtual rent

451. As per IBC, 2016, who cannot initiate a fast track corporate insolvency
resolution process?
5. Financial creditor
6. Operational creditor
7. Corporate debtor
8. Insolvency professional

452. Which of the following statement is true as per fire policy condition on the
happening of a loss?
5. The insured can abandon the damaged property to the insurers
6. The insurers have a right to take possession of the premises where the loss
has occurred
7. The insurers do not have a right to take possession of the premises where the loss
has occurred
8. The insurers should settle entire cost of reinstatement as estimated by insured’s
consultant without any analysis

288
453. Which is correct in the following statement –
A. Inflation benefits the debtors
B. Inflation benefits the bond holder
5. ‘A’ only
6. ‘B’ only
7. Both ‘A’ & ‘B’
8. Neither ‘A’ or ‘B’

454. The total cost is generally considered as sum of ------

5. Fixed cost and average cost
6. Fixed cost and marginal cost
7. Marginal cost and average cost
8. Fixed cost and variable cost

455. Deterioration of environment is -------------- proportional to market value of

property
5. Inversely
6. Directly
7. Not
8. Indirectly

456. Determination of the price that would be equitable between a lessor and
lessee for either permanent transfer of the lease assets or the cancellation of
the lease liability is known as --------------
5. Investment value
6. Synergic value
7. Equitable value
8. Liquidation value

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457. Classification is the ----------- of facts that are distinguished by some
significant characteristics
5. Part
6. Survey
7. Tabulation
8. Grouping

458. The seasonal indices for each month or quarter of different years are
called ----
5. Typical seasonal
6. Link relatives
7. Chain relatives
8. Specific seasonal

459. The process of transferring the transactions relating to changes in a

particular item at one place in the form of an account is called---------
5. Balancing
6. Casting
7. Journalizing
8. Posting

460. As per indifference curve analysis consumer equilibrium is attained when:

5. Slope of indifference curve is constant
6. Slope of both indifference curve and income price line are equal
7. Slope of both indifference curve and income price line are opposite
8. Both income price line and indifference curve are parallel

461. For the management of the environment, which one of the following is not
a major legislative measure in India?
5. Factories Act 1948
6. The Water (Prevention and Control of Pollution) Act, 1974

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7. The Air (Prevention and Control of Pollution) Act, 1981
8. The Environment (Protection) Act 1986

462. Which of the following element is not part of definition of market value?
5. The most probable price
6. As of a specified date
7. Cost incurred by the seller in creating the asset
8. The buyer and seller each acting prudently

463. Every transfer of immovable property made with intent to defeat or delay
the creditors of the transferor shall be voidable
5. At the option of any creditor so defeated or delayed
6. At the option of debtor
7. At the option of the court
8. At the option of the Government

464. A population consisting of the result of the conceptually repeated trial is

known as ----------
5. Finite population
6. Hypothetical population
7. Infinite population
8. Real population

465. An ownership flat with 140 sqm area is licensed for an amount of Rs
1,10,000 per month. Society maintenance charges are Rs 20,000 per 3 months.
Which of the following will be market value of the flat on income approach by
adopting 4 percent as rate of capitalization?
5. Rs 3,10,00,000
6. Rs 1,10,00,000
7. Rs 2,00,00,000
8. Rs 1,32,00,000

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466. Under which of the following circumstances reinstatement basis of
settlement will not apply under fire reinstatement policy?
5. Insured fails to intimate to the insurer within 6 months of any extended time to
replace the damaged property
6. Insured is unable to replace the damaged property
7. Insured is unwilling to replace the damaged property
8. In cases when the insured fails to intimate to the insurer within 6 months or
any extended time to replace the damaged property and insured is unable or
unwilling to replace the damaged property

467. As per Right to Fair Compensation and Transparency in Land Acquisition,

Rehabilitation and Resettlement Act under Section 4(2), the Government shall
ensure the completion of Social Impact Assessment study within a period of
5. One month
6. Three months
7. Six months
8. Nine months

468. when does corporate insolvency commence?

5. On the date filling an application by operational creditors
6. On the date filling an application by financial creditors
7. On the date admission of application by adjudicating authority
8. On the date of appointment of interim insolvency resoultion professional

467. Following does not affects demand of Real Estate?

5. In-migration/Out-migration
6. Lower interest rate on housing loan
7. Consumer confidence
8. Paying capacity

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468. Due to ------------------ of properties in real estate market, conditions of
perfect competition are almost absent
5. Homogeneity
6. Heterogeneity
7. Unstable characteristics
8. Lack of demand

469. Which of the following statement is correct?

5. Hotels and restaurants should be valued on the basis of their profitability
6. Hotels and restaurants should be valued on the basis of their tangible assets only
7. There are no intangible assets associated with the hotel and restaurant industry
8. Advertisement income in a hotel or restaurant cannot be treated as part of profit

470. Gross profit in the context of consequential loss (fire) policy means one
of the following
5. Turnover mnus variable and standing charges
6. Net profit and cost of production
7. Net profit and standing charges
8. Net profit and variable charges

471. This is not a cause of inflation

5. Rise in customer confidence
6. Decrease in supplies
7. Corporate decisions to charge more
8. Increase in supplies

472. Whch cannot be said as criteria air pollutant?

5. Carbon dioxide
6. Carbon monoxide
7. Nitrogen oxide
8. Sulphur oxide

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473. Which of the following is not a function of Cost Accounting?
5. Cost ascertainment
6. Planning and control
7. Decision making
8. External reporting

474. Which of the following is not a part of modifying principle:

1. Principle of consistency
2. Principle of materiality
3. Principle of conservatism
4. Principle of dual aspects

475. in the mining industry the method used for valuation is known as:
5. Depreciation
6. Diminution
7. Amortization
8. Depletion

476. A valuer should not take up an assignment under the Act / Rules if he /it
or any of his / its relatives or associates is not independent in relation to the
company and assets being valued because-----------
5. It involves conflict of interest
6. It leads to reporting higher value
7. It leads to reporting value
8. It leads to reporting average value

477. what happens to inflation with increase in cash reserve ratio?

5. Inflation increases
6. Inflation decreases
7. No changes

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8. Deflation is caused

478. Right to privacy is ------------------- right

5. Fundamental
6. Constitutional
7. Statutory
8. None of the above

479. The term enviornment is defined under which act that includes relation
between enviornment, water and air?
5. The Enviornment Act
6. Water Cess Act
7. Air Act
8. Technology Act

480. Accrued depreciation for heritage structure is always measured and

based on-
5. Reproduction cost new as of the date of valuation
6. Initial cost of construction added by repair cost
7. The actual cost when originally constructed
8. Replacement cost new as of the date of valuation

481. Which of the following statements is true related to obligation of insured?

5. To defend the insurer
6. To indeminify the insurer
7. To investigate and settle potentially covered claim
8. Protect the property from further damage

482. Factories Act 1948, is applicable to factories involved in ---------------

5. Manufacturing activity
6. Construction activity

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7. Mining activity
8. Plantation activity

483. Zoning is defined as------------

5. Arranging or distributing lands and properties according to particular features
6. Not arranging or not distributing lands and properties according to particular
features
7. Arranging or distributing lands and properties not according to particular features
8. Arranging or distributing lands and properties as per uses

484. The reporting should be done keeping in mind:

5. Valuer’s interest
6. Client’s interest
7. Developer’s interest
8. Fair / market value interest

485. Standard or scale used to measure transactions and events in?

5. Rupees
6. Dollar
7. Local currency
8. Pounds

486. As per the companies act 2013, any scheme of corporate debt
restructuring under Sec 230 (2) (1) (c) (v) must include a valuation report in
respect of the shares and the property and all assets, tangible and intangible,
and movable and immovable, of the company by
5. Registered valuer
6. State government
7. An auditor’s report is sufficient
8. Reserve Bank of India guidelines is sufficient

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487. Regression coefficient is independent of:
5. Origin
6. Scale
7. Logical property
8. Assignable property
488. Despite the absence of a contractual relationship, --------- Will exist
wherever there is a relationship of sufficient ‘proximity’ between a
professional advisor and a person who relies on his or her advice.
5. A duty of care
6. No duty of care
7. Fiduciary care
8. No care

489. If the central bank buys financial securities form the open market to
increase the monetary base, this is an example of:
5. Open market operations
6. Lender of last resort
7. Financial regulation
8. Financial intermediation

490. Cost of machine Rs. 1,00,000/-, scrap value Rs. 10,000/-, life 4 years, what
will be the amount of depreciation according to sum of years digit method in
the first year.
5. Rs. 40,000/-
6. Rs. 45,000/-
7. Rs. 36,000/-
8. Rs. 38,000/-

491. Number of firm in a monopoly market is -------------

5. Two
6. Many

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7. One
8. Three

492. Factor which is not responsible for the occurrence of business cycles is:
5. Social customs
6. Decline
7. Likes and dislikes of people
8. Scientific and technological developments

493. The maximum limit of investment in tiny industry is:

5. 0 to 25 lakhs
6. 25 lakhs to 50 lakhs
7. 50 lakhs to 1 crore
8. 25 lakhs to 5 crore

494. In which of the following case the court has for the first time approved of
Investment theory of Rent fixation, by allowing 1.50 percent more return than
the return on gilt edged security on value of land and 2.5 percent extra yield
on the cost of the building, as fair return to the landlord on his investment in
an immovable property?
5. Jawaji Nagnathan V/s RDO (Adilabad)
6. Sorab Talati V/s Joseph Michem
7. R.C. Cooper V/s Union of India
8. Wenger & Co. V/s D.V.O.

495. Market equilibrium refers to a situation in which market price is................

5. High enough to allow firms to earn a fair profit
6. Just above the intersection of the market supply and demand curves
7. Low enough for consumers to buy all that they want
8. At a level where there is neither a shortage nor a surplus

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496. A valuer should maintain proper working papers for production before a
regulatory authority or for a peer review for minimum of which of the following
period, assuming that there is no pending case before the Tribunal or
Appellate Tribunal
5. One year
6. Two years
7. Three years
8. Ten years

497. According to policy condition the fire policy ceases cover if the building
incurred becomes unoccupied for more than.................
5. 15 days
6. 30 days
7. 45 days
8. 60 days

498. Sale comparison method and development method of valuation are the
two main methods under.....................
5. Income approach
6. Cost approach
7. Market approach
8. Residual approach

499. A tandem plot....................

5. is similar to recess land
6. is similar to landlocked land
7. Has access only by a private road or a common passage
8. Is always on the main road

500. An inferior good is one for which an increase in income causes -------------
5. Decrease in supply

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6. Increase in demand
7. Increase in supply
8. Decrease in demand

501. When the present value of minimum lease payments is approximately

equal to the fair value of the lease assets, it is called.................
5. Finance lease
6. Long term lease
7. Operating lease
8. Short term lease

502. Which one of the following should not be done by a valuer with the
confidential information about the subject company, which has come to his /
its knowledge without proper and specific authority or without legal or
professional right or duty to disclose?
5. Use or divulge to other clients or any other party
6. Maintain records
7. Use in his / its valuation exercise
8. Maintain confidentiality of information

503. Which of the following scenario need not be a connection with the Highest
and Best use of existing buildings or land?
5. Continued inferior use
6. Modifying / improving existing use
7. Conversion to alternative use
8. Partial / total demolition with subsequence redevelopment

504. What is full form of SEZ?

5. Secure entry zone
6. Special entry zone
7. Secure economic zone

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8. Special economic zone

505. Following indicates of years an asset will endure before it deteriorates to

an unusable condition?
5. Useful life
6. Economic life
7. Physical life
8. Residual life

506. CPWD not given any weightage?

5. Bricks
6. Stone chips
7. Skilled labor wages
8. Wooden furniture in the building

507. Purchase, occupants, tenant comprises what side of the market?

5. Demand
6. Supply
7. Equilibrium
8. Neutral

508. Prevalent rate of capitalization can be obtained from -------------------

5. Local property dealers
6. Analysis of recent transaction of rented property in the market
7. Local authority
8. Recent re-sale transaction of vacant property in market

509. Which following is not helpful in analysis of market data and in deriving
the net income multiplier from income approach of valuation?
5. Potential gross income
6. Gross income

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7. Depreciation
8. Sale price

510. Value of lessee’s interest in a property will normally

5. Diminish with passage of time
6. Increase with passage of time
7. Remain the same till lease is extinguished
8. Increases annually

511. Factor is not considered in value estimation by cost approach?

5. Deduction of management expenses
6. Assessment of depreciation
7. Estimation of market value of land
8. Determination of reproduction or replacement cost new

512. Not relevant under the sales comparison approach?

5. Inspect and analyze the subject property to be valued
6. Identify and locate possible comparable property sales
7. Estimate of cost of construction the subject property
8. Analyze difference between subject property and comparable

513. Receipt of money in the future is worth less than money received at
present
5. Disagree with statement
6. Agree with statement
7. Depends on circumstances
8. It is same after all money is money today or tomorrow

514. Following is most accurate factor for applicability of income approach of

valuation of a property?
5. Subject property has recently sold

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6. Subject property is unique
7. Subject property is old
8. Subject property produces an income

515. Following factors do not affect the physical life of building?

5. Materials used in construction
6. Workmanship
7. Weather condition
8. Shape of the land

516. Section 118 under transfer of property act, when 2 persons mutually
transfer the ownership of one thing for the ownership of other, neither thing or
both things being money only the transaction is called
5. A transfer
6. Exchange
7. Lease
8. Eviction

517. Under Section 59 of Indian Succession Act, which person may dispose of
his property by will
5. Person of unsound mind
6. Person of sound mind
7. Minor
8. Intoxicated person

518. Which of the following is NOT an input:

5. Labour
6. Entrepreneurship
7. Natural resources
8. Production

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519. Which of the following Acts is considered an umbrella legislation with a
wider scope in comparison to the other notifications?
5. The Water (Prevention and Control) Act 1974
6. The Air (Prevention and Control) Act 1981
7. The Environment (Protection) Act 1986
8. The Water (Prevention and Control of Pollution) Cess Act 1977

520. Which of the following statement is true when a signing valuer has relied
on work done by others who do not sign the certification
5. Signing valuer has basis to believe that individuals performing work are competent
6. Signing valuer blindly relies on work carried out by contributing valuer
7. Signing valuer can transfer responsibility to contributing valuer in case of
discrepancy and claim innocence
8. Signing valuer should not disclose name of the contributing valuer to the client

521. The demand curve in demand & supply graph indicates ---------
5. Effect on market supply of a change in the demand for a good or service
6. Marginal cost of producing and selling different
7. Quantity of a good that consumers would like to purchase at different prices
8. Effect of advertising expenditures on the market price of a good

522. Index numbers are expressed in -------------

5. Percentages
6. Median
7. Range
8. Mode

523. Which of these is one of the causes of inflation?

5. Increase in public expenditure
6. Deficit financing
7. Increase in administrative prices

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8. All the three

524. As per Right to Fair Compensation and Transparency in Land Acquisition,

Rehabilitation and Resettlement Act under Section 6, Government shall ensure
that the Social Impact Assessment Study report are prepared and made
available in
5. The local language
6. Any language
7. English
8. No publication

525. Business profit is equal to total revenue minus:

5. Economic cost
6. Managerial cost
7. Explicit cost
8. Implicit cost

526. Under transfer of property Act, the seller is -----------

5. Not entitle to the rents and profits of the property till the ownership thereof passes
to the buyer
6. Entitle to the rents and profits of the property till the ownership thereof
passes to the buyer
7. Entitle to the rents and other profits
8. Entitle to the profits

527. The difference between disposable income and consumption is ------

5. Saving
6. Expenditure
7. Both
8. None of the above

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528. A valuer shall not misrepresent any facts or situation because
It is in the interest of the society
It is against professional ethics
It is in the interest of legal advisor of client
It is in the interest of the professional society

529. A valuer should wherever necessary disclose to the clients, possible

sources of conflicts of duties and interests, while providing unbiased services
because
This is in the interest of client
This is a wrong practice
It is against the ethics
Professional soceity discourages this

530. An agreement is viodable by the party whose consent is obtained by:

Misrepresentation
Exaggeration
Incomplete information
Wrong information

531. Which bank is called lender of last resort?

Commercial bank
Agricultural bank
Industrial bank
Central bank

532. Consumer surplus is the difference between:

The price firm is willing to charge and the equilibrium price
The quantity consumers were willing to buy and the quantity firms were willing to sell
The quantity consumers were willing to buy before and after a tax increase
The price consumer is willing to pay and what he actually pays

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533. Dividend are usually paid on:
Authorised capital
Issued capital
Paid up capital
Reserve capital

534. Voidable contract is one:

Which is lawful
Which is invalid
Which is valid as long as it is not avoided by the party entitled to do so
Which is unlawful

535. Which of the following legislations regulates the handling of hazardous

substances?
The Water (Prevention and Control) Act 1974
The Water (Prevention and Control of Pollution) Cess Act 1977
The Environment (Protection) Act 1986
Factories Act 1948

536. As far as the investment in real estate is concerned --------- is very difficult
Generation of income
Getting back the capital
Divisibility of holding
Hedge against inflation

537. The Standard Fire and Special Perils Policy automatically cover works of
art for an amount not exceeding
Rs 5000
Rs 10000
Rs 20000

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Rs 25000

538. Under Factories Act 1948, when it is required to appoint welfare officers?
When there are less than 500 workers
When there are more than1000 workers
When there are more than 500 workers
When there are less than 100 workers

539. As per building bye laws, an additional 100 percent FSI will be granted for
hostels exclusively used for
Sport activity
An educational institution
Seminar
Workshop

540. Economic eye of an enterprise is split in to periodical interval as per-------

Periodicity
Matching
Going concern
Accural

541. In perfect competition, restrictions on entry into an industry-------

Do not exist
Apply to labour but not to capital
Apply both to labour and capital
Apply to capital but not to labour

542. If mode value is not clear in a distribution, it can be ascertained by the

method of ----
Guessing
Summarising

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Grouping
Trial and error

543. A valuer should not engage in any ----------, except when he has
temporarily surrendered his certificate with the valuation professional
organisation with which ha is registered
Employment
Chore
Drill
Activity

544. Year wise recording of data of valuation of a property will be called --------
classification?
Geographical
Qualitative
Mutual
Chronological

545. A multi storied apartment building is classified under which of the

following occupancy?
Residential
Commercial
Industrial
Assembly
546. Which technique normally cannot be employed in environmental
valuation?
Sales comparison technique
Cost technique
Income technique
Standard rent technique

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547. ------------------- is the grouping of facts that are distinguished by some
significant characteristics
Tabulation
Survey
Classification
Index number

548. Under which of the following depreciation method the amount of

depreciation remains same throughout the useful life of an asset?
Straight line method
Reducing balance method
Sinking fund method
Sum of the digit method

549. Which of the following factor is not a common statistical indicator of

economic performance?
Rate of inflation
Interest rates
Rate of unemployment
Gross Domestic Product

550. Palaces still exist even after 200 years of construction. The age is called -
Economic life
Chronological age
Physical life
Life due to legal constraints

551. Which of the following is not required to be included in valuation report

of a flat?
The valuation method adopting giving the reasons for selecting said method

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Details of total income of the owner of the flat and income tax liability of the
owner
Details of type of construction and amenities provided in the building
Details of carpet area and common areas available to the owner of the flat

552. ------------------ of material components in an object, which is not value

Utility
Benefits
Services
Cost

553. When one fact is declared by law to be ------------------- of another, the court
cannot allow evidence to be given in rebuttal
Inconclusive proof
Non conclusive proof
Conclusive proof
Non inconclusive proof

554. Commissioner is empowered to acquire by agreement any

Movable property
Immovable property
Both movable property and immovable property
Neither movable property and immovable property

555. Courts consider -------------- as more accurate method of estimating cost of

construction
Book value method
Flat rate method
Cost index method
Detailed quantity method

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556. The obligation of an enterprise other than owner’s fund are known as:
Asset
Liabilities
Capital
None of these

557. Under Factories Act 1948 when is it required to appoint welfare officers
When there are less than 500 workers
When there are more than 1000 workers
When there are more than 500 workers
When there are less than 1000 workers

558. If the minor dies during the pendency of suit

Suit cannot be continued by the legal representatives
Suit can be continued by the legal representative
Suit can be continued by the legal representative by consent of other coparcenary
Suit is dismissed

559. The expected return on investment is called:

Marginal propensity to save
Marginal efficiency of investment
Marginal propensity to consume
Marginal revenue

560. Which of the following statement is not true?

Terrorism is included under Standard Fire and Special Perils Policy only
Lightening is excluded under Standard Fire and Special Perils Policy only
Bush fire is excluded under Standard Fire and Special Perils Policy only
Missile Testing operations is excluded under Standard Fire and Special Perils Policy
only

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561. What is valued in property valuation is ------------
Real estate
Wealth
Land
Rights of a person to derive future benefit

562. Under section 64 of the Indian Easement Act, when a licensee is evited by
the grantor without any fault of his own----------
He is entitled to recover compensation from the grantor
He is not entitled to recover compensation from the grantor
He is entitled to recover compensation from the government
He is entitled to repossess the property

563. Why does the valuer need to provide information and records as may be
required by the registration authority, the tribunal, appellate tribunal, the
valuation professional organisation with he is registered, or any other
statutory body?
To enable a reasonable person to take a view on the appropriateness of his
decisions and actions
This is a wrong practice
It is against the ethics
This is in public interest

564. Which one of the following is function of an auditor, when planning to use
the work of an expert valuer?
Assess the professional competence of the expert
Assess the professional competence of personnel providing accounting information
Ensure the expert is an employee of the company for which audit is being performed
Ensure that expert is paid 50 percent of professional fees on award of assignment

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565. When both parties lead evidence and have entered in to evidence, then
there—
There can be a question of burden of proof
There can be no question of burden of proof
There may be a question of burden of proof
Burden of proof is always there

566. In which of the following approaches to valuation, accrued depreciation

must be accounted for when determining the market value of the asset?
Market approach
Income approach
Cost approach
Discounted cash flow method

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