1. Which valuation method is most commonly used for land valuation?
A. Cost
B. Income
C. Sales Comparison
D. Residual
2. In the cost approach, depreciation on improvements is deducted from:
A. Land value
B. Replacement cost
C. Market value
D. Residual value
3. The income approach capitalizes:
A. Historical cost
B. Future income streams
C. Replacement cost
D. Book value
4. The residual method is used to value:
A. Vacant land
B. Specialty property
C. Agricultural land
D. Entitlements
5. Under RERA, the time limit for title clearance is:
A. 6 months
B. 1 year
C. 3 months
D. No specific period
6. The Transfer Pricing Act applies to:
A. Real estate transactions
B. Inter-company transfers
C. Property tax assessments
D. Municipal valuations
7. IVS provides guidance on:
A. Cost pooling
B. Fair value measurement
C. Book value reporting
D. Land measurement
8. Highest and best use analysis excludes:
A. Physical possibility
B. Legally permissible
C. Financial feasibility
D. Historical use
9. Land residual method calculates:
A. Market value of land
B. Cost of improvements
C. Income from land
D. Book value
10. Comparative unit method is a type of:
A. Income approach
B. Sales Comparison
C. Cost approach
D. Residual method
11. Under IND AS 16, property, plant and equipment excludes:
A. Land
B. Building
C. Machinery
D. Leasehold improvements
12. Zoning regulations affect:
A. Highest use
B. Depreciation
C. Replacement cost
D. Gross income
13. The depth table is used to:
A. Adjust for differences in site depth
B. Calculate depreciation
C. Capitalize income
D. Determine legal issues
14. Feasibility study examines:
A. Historical cost
B. Market demand
C. Depreciation
D. Residual value
15. Market extraction method derives:
A. Cost new
B. Land value
C. Income
D. Depreciation
16. Reinstatement cost refers to:
A. Replacement cost
B. Historical cost
C. Book value
D. Residual value
17. Depreciation due to wear and tear is called:
A. Economic depreciation
B. Physical deterioration
C. Functional obsolescence
D. Economic obsolescence
18. Functional obsolescence arises from:
A. External factors
B. Poor design
C. Market trends
D. Legal changes
19. Economic obsolescence is:
A. Internal
B. External
C. Physical
D. Functional
20. Block premium is paid for:
A. Undersized plots
B. Corner plots
C. Standard plots
D. Non-urban land
21. Site coverage ratio is:
A. Area of building/plot area
B. Plot area/building area
C. Floor area ratio
D. Saleable area ratio
22. Floor area ratio is the ratio of:
A. Total floor area to plot area
B. Plot area to number of floors
C. Saleable area to built-up area
D. Carpet area to saleable area
23. Byelaw permissible FSI means:
A. FSI given by state
B. FSI used
C. FSI purchased
D. FSI premium
24. Circle rate refers to:
A. Minimum stamp duty value
B. Market value
C. Tax assessed value
D. Book value
25. Stamp duty is based on:
A. Transaction value or circle rate
B. Historical cost
C. Income approach value
D. Replacement cost
26. Capitalization rate equals:
A. Net income/Gross income
B. Net income/Value
C. Value/net income
D. Gross income/value
27. DCF method requires estimation of:
A. Future cash flows and discount rate
B. Replacement cost
C. Land residual
D. Circle rate
28. Leasehold interest valuation excludes:
A. Reversionary interest
B. Leased fee interest
C. Unexpired lease term
D. Land value
29. Under service concession, asset reverts to:
A. Operator
B. Government
C. Private entity
D. Lender
30. Site valuation is primarily concerned with:
A. Land only
B. Improvements
C. Income streams
D. Depreciation
31. Valuation cooling period under RERA is:
A. 15 days
B. 30 days
C. 7 days
D. No cooling period
32. Project completion certificate is issued by:
A. Municipal authority
B. Valuer
C. Developer
D. Bank
33. Encumbrance certificate shows:
A. Outstanding mortgages
B. Market value
C. Rental income
D. FSI
34. Power of attorney allows:
A. Representation in transactions
B. Land development
C. Construction approval
D. Valuation
35. Legal title is best evidenced by:
A. Sale deed
B. Mutation register
C. Tax receipt
D. Encumbrance certificate
36. Usufi rent system is based on:
A. Actual net produce
B. Market rent
C. Comparative rent
D. License fee
37. Outgoings exclude:
A. Property tax
B. Insurance premium
C. Land revenue
D. Land purchase price
38. Effective gross income minus outgoings equals:
A. Net operating income
B. Gross operating income
C. Net income
D. Value
39. Economic life of building depends on:
A. Construction quality and maintenance
B. Land value
C. Income
D. Regulations
40. Anticipation principle involves:
A. Future benefits
B. Past costs
C. Historical values
D. Depreciation
41. Change of interest method uses:
A. Cancellation of lease
B. Sub-letting
C. Assignment
D. All of the above
42. MIBOR is used as:
A. Discount rate
B. Capitalization rate
C. Cost rate
D. Residual rate
43. Gross development value equals:
A. Sale value after development
B. Land value
C. Cost of development
D. Net income
44. Development cost includes:
A. Construction and finance costs
B. Land premium
C. Circle rate
D. Insurance
45. Assessed value for property tax is based on:
A. Capital value
B. Circle rate
C. Market rent
D. Replacement cost
46. Retail property capitalization rate is typically:
A. Higher than residential
B. Lower than office
C. Equal to industrial
D. Zero
47. Structural survey assesses:
A. Physical condition
B. Market trends
C. Legal issues
D. Land use
48. Residual land value equals:
A. GDV less costs and profit
B. Land value plus improvements
C. Cost new less depreciation
D. Circle rate
49. Sensitivity analysis examines:
A. Value variation with key variables
B. Legal compliance
C. Construction quality
D. Historical cost
50. Rental voids are:
A. Periods of vacancy
B. Outgoings
C. Service charges
D. Depreciation
51. Sinking fund accommodates:
A. Future replacement of items
B. Land valuation
C. Income projection
D. Obsolescence
52. Super built-up area includes:
A. Carpet, built-up, and proportionate common areas
B. Saleable area only
C. Carpet area only
D. Built-up area only
53. Escalation clause accounts for:
A. Inflation
B. Depreciation
C. Land value
D. Zoning changes
54. Deferred maintenance affects:
A. Depreciation estimate
B. Land value
C. Gross income
D. Circle rate
55. Interim use relates to:
A. Short-term use before redevelopment
B. Highest and best use
C. Historical use
D. Permissible use
56. Allowable FSI purchase is known as:
A. FSI premium
B. Area restriction
C. Zoning FSI
D. Circle rate
57. Plot ratio in some jurisdictions equals:
A. FSI
B. Carpet area ratio
C. Built-up area ratio
D. Floor area ratio
58. Marketability study focuses on:
A. Demand and supply
B. Depreciation
C. Legal title
D. Construction cost
59. Project IRR considers:
A. Time value of money
B. Physical depreciation
C. Legal issues
D. Circle rate
60. Typical land survey includes:
A. Boundary determination
B. Market analysis
C. Economic obsolescence
D. Depreciation
61. Boundary disputes affect:
A. Market value
B. Replacement cost
C. Historical cost
D. Capitalization
62. Zoning violation can lead to:
A. Decrease in value
B. Increase in value
C. No change
D. Increase in FSI
63. Clearance from environmental authority is required for:
A. Projects with ecological impact
B. All valuations
C. Tenant agreements
D. FSI
64. Construction soil test examines:
A. Bearing capacity
B. Legal title
C. Market trends
D. FSI
65. Earthquake-resistant design affects:
A. Cost of improvements
B. Land value
C. Circle rate
D. Zoning
66. Servitude on land refers to:
A. Easement
B. Lease
C. Mortgage
D. Sale
67. Encroachment reduces:
A. Usable area
B. Land premium
C. FSI
D. Market analysis
68. Lease surrender premium is paid by:
A. Lessee
B. Lessor
C. Valuer
D. Bank
69. Licence fee is a payment for:
A. Short-term land use
B. Long-term lease
C. Mortgage
D. Sale
70. Ground rent refers to:
A. Leasehold land payment
B. Income from building
C. License fee
D. Circle rate
71. Reversionary interest gains value:
A. At lease end
B. Throughout lease
C. At construction
D. At sale
72. Terminal value in DCF represents:
A. Value at end of period
B. Land residual
C. Replacement cost
D. Book value
73. Gross residual method calculates:
A. Land value from GDV
B. Income from land
C. Cost of replacement
D. Circle rate
74. Net residual method subtracts:
A. Development cost and profit
B. Circle rate
C. Market rent
D. Replacement cost
75. Capitalization yield =
A. Net income/Value
B. Value/net income
C. Gross income/Value
D. Net income/Gross income
76. Overage payment is due when:
A. Value increase surpasses threshold
B. Lease ends
C. Construction completes
D. Circle rate changes
77. Break-even yield is where:
A. Value equals cost
B. Income equals expenses
C. Land value zero
D. Circle rate equals net income
78. Alluvial soil is important for:
A. Foundation design
B. Market value
C. Land residual
D. Circle rate
79. Calcareous soil indicates:
A. Lime presence
B. Market trends
C. Zoning FSI
D. Replacement cost
80. Valuation report should include:
A. Assumptions and limiting conditions
B. Historical cost
C. Depreciation methods
D. Legal issues
81. Executive summary in report is:
A. Concise overview
B. Detailed analysis
C. Legal text
D. Market data
82. Valuer independence means:
A. No conflict of interest
B. Maximize value
C. Legal compliance
D. Circle rate
83. Imputed interest on lease rentals is considered in:
A. Income approach
B. Cost approach
C. Sales Comparison
D. Residual method
84. Rental growth rate is used in:
A. DCF analysis
B. Cost method
C. Sales Comparison
D. Residual
85. Depreciated replacement cost method uses:
A. Current replacement cost minus depreciation
B. Market value
C. Income Capitalization
D. Circle rate
86. Profit margin in development valuation is known as:
A. Developer's profit
B. Gross Development Value
C. Residual value
D. Circle rate
87. Site assembly value refers to:
A. Value of adjoining plots assembled
B. Single plot value
C. Improvement value
D. Cost new
88. Mortgage valuation primarily assesses:
A. Lender's risk
B. Developer's profit
C. Market trends
D. Legal title
89. Valuation for litigation requires:
A. Detailed report and evidence
B. Assumptions only
C. Circle rate basis
D. Developer's profit
90. Hypothecation differs from mortgage in that:
A. Possession remains with borrower
B. Possession transfers to lender
C. Possession transfers to court
D. Possession irrelevant
91. Capital expenditure in valuation is:
A. Additive to asset value
B. Deductive
C. Irrelevant
D. Expense only
92. Revenue expenditure is:
A. Deducted from income
B. Additive to value
C. Considered in residual method
D. Circle rate
93. Zoning certificate verifies:
A. Permissible land use
B. Market value
C. FSI usage
D. Income potential
94. Building bye-laws include:
A. Setback requirements
B. Market trends
C. Income projections
D. Residual value
95. Use of benchmark yields relates to:
A. Capitalization rates
B. Depreciation
C. Replacement cost
D. FSI
96. Discount rate reflects:
A. Risk and time preference
B. Depreciation only
C. Income only
D. Replacement cost
97. Gross income multiplier equals:
A. Value/Gross income
B. Gross income/Value
C. Net income/Value
D. Value/Net income
98. Indexing land values adjusts for:
A. Inflation
B. Depreciation
C. Zoning
D. FSI
99. Site finance charges are part of:
A. Development cost
B. Circle rate
C. Land value
D. Income approach
100. Balance sheet value of land includes:
A. Acquisition cost and improvements
B. Market rental
C. Income approach
D. Residual value
101. Usable area excludes:
A. Common areas and walls
B. Saleable area
C. Built-up area
D. Carpet area
102. Vacant possession value excludes:
A. Tenant rights
B. Land value
C. Building value
D. Development cost
Answer Key
1. C
2. B
3. B
4. D
5. C
6. B
7. B
8. D
9. A
10. C
11. C
12. A
13. A
14. B
15. B
16. A
17. B
18. B
19. B
20. B
21. A
22. A
23. A
24. A
25. A
26. B
27. A
28. D
29. B
30. A
31. B
32. A
33. A
34. A
35. A
36. A
37. D
38. A
39. A
40. A
41. D
42. A
43. A
44. A
45. A
46. A
47. A
48. A
49. A
50. A
51. A
52. A
53. A
54. A
55. A
56. A
57. D
58. A
59. A
60. A
61. A
62. A
63. A
64. A
65. A
66. A
67. A
68. A
69. A
70. A
71. A
72. A
73. A
74. A
75. A
76. A
77. A
78. A
79. A
80. A
81. A
82. A
83. A
84. A
85. A
86. A
87. A
88. A
89. A
90. A
91. A
92. A
93. A
94. A
95. A
96. A
97. A
98. A
99. A
100. A
101. A
102. A
