100 VALUATION EXAMINATION MCQS LB FOR PRACTICE

100 VALUATION EXAMINATION MCQS FOR LAND & BUILDING WITH ANSWERS FOR PRACTICE

1. What does IBBI stand for?

A) Indian Bureau of Building Infrastructure
B) Insolvency and Bankruptcy Board of India
C) Indian Building and Building Institutions
D) Institute of Building and Business
Answer: B

2. Which Act governs the registration of properties in India?

A) Transfer of Property Act, 1882
B) Registration Act, 1908
C) Indian Contract Act, 1872
D) Real Estate (Regulation and Development) Act, 2016
Answer: B

3. Which of the following is considered immovable property?

A) Furniture
B) Stocks
C) Land
D) Cash
Answer: C

4. What is the maximum period for which a lease can be created under the Transfer of Property Act, 1882?

A) 5 years
B) 10 years
C) 99 years
D) No limit
Answer: C

5. What is the primary purpose of a title search in real estate?

A) To assess the property’s value
B) To verify the legal ownership of the property
C) To determine tax implications
D) To evaluate market trends
Answer: B

6. The doctrine of “lis pendens” refers to:

A) Pending lawsuits affecting the property
B) The status of property after sale
C) Transfer of property without registration
D) None of the above
Answer: A

7. An encumbrance on property means:

A) The property is unregistered
B) There are legal claims against the property
C) The property is vacant
D) The property is under construction
Answer: B

8. Which of the following is NOT a type of lease?

A) Fixed-term lease
B) Month-to-month lease
C) Oral lease
D) Leasehold mortgage
Answer: D

9. In real estate transactions, “due diligence” refers to:

A) A final walkthrough before closing
B) Research and analysis of property before purchase
C) Negotiating the sale price
D) Signing the contract
Answer: B

10. The Real Estate (Regulation and Development) Act, 2016 aims to:

A) Regulate property taxes
B) Protect buyers and promote transparency
C) Increase property prices
D) Encourage illegal constructions
Answer: B

11. The valuation of land is primarily influenced by:

A) Distance from city center
B) Local amenities and infrastructure
C) Historical significance
D) All of the above
Answer: D

12. Which of the following documents is essential for proving ownership of a property?

A) Sale deed
B) Power of attorney
C) Encumbrance certificate
D) All of the above
Answer: A

13. What is the term for the right to use someone else’s property without ownership?

A) Ownership
B) Leasehold
C) Easement
D) Encroachment
Answer: C

14. The period within which a property must be registered after purchase is:

A) 30 days
B) 90 days
C) 120 days
D) 6 months
Answer: B

15. Which of the following is a primary risk in real estate investment?

A) Interest rate fluctuations
B) Property market trends
C) Legal disputes
D) All of the above
Answer: D

16. A “no-objection certificate” (NOC) is primarily used to:

A) Approve the sale of a property
B) Indicate compliance with local regulations
C) Transfer property rights
D) Increase property value
Answer: B

17. In the context of land use, “zoning” refers to:

A) The construction style of buildings
B) Designation of specific areas for particular uses
C) The geographical boundaries of a city
D) The tax implications of land ownership
Answer: B

18. A mortgage is a:

A) Lease agreement
B) Sale of property
C) Loan secured by real estate
D) Rental contract
Answer: C

19. The primary responsibility of a real estate agent is to:

A) Purchase property on behalf of clients
B) Act as an intermediary in transactions
C) Manage rental properties
D) Appraise property values
Answer: B

20. What does the term “built-up area” include?

A) Carpet area only
B) Super built-up area
C) Area covered by walls
D) Both B and C
Answer: D

21. A sale deed is:

A) A document for renting property
B) A document for transferring property ownership
C) A lease agreement
D) A mortgage document
Answer: B

22. What is the primary purpose of an encumbrance certificate?

A) To prove ownership
B) To show any liabilities on the property
C) To estimate property value
D) To obtain a loan
Answer: B

23. A “grace period” in real estate refers to:

A) The time allowed for completing a sale
B) The time given to pay overdue rent
C) A time frame to cancel a contract
D) The period for securing financing
Answer: B

24. In a lease agreement, “rent” is:

A) The total amount paid to purchase a property
B) The amount paid for using the property temporarily
C) The fee for property management services
D) The cost of property maintenance
Answer: B

25. Which of the following can be a reason for eviction?

A) Non-payment of rent
B) Violation of lease terms
C) Damage to property
D) All of the above
Answer: D

26. A lien on property refers to:

A) Ownership claim
B) Legal right to keep possession of property until a debt is settled
C) Transfer of property rights
D) Rental agreement
Answer: B

27. What is the primary focus of the Real Estate (Regulation and Development) Act, 2016?

A) Regulating property taxes
B) Protecting homebuyers and promoting transparency
C) Enforcing construction quality standards
D) None of the above
Answer: B

28. A co-borrower in a mortgage refers to:

A) A person who shares ownership of the property
B) A person who is also responsible for the mortgage loan
C) A secondary buyer of the property
D) A person providing collateral
Answer: B

29. A tenancy-at-will is:

A) A formal lease with a specific term
B) A rental agreement that can be terminated at any time
C) A tenancy that lasts for a fixed period
D) A verbal agreement only
Answer: B

30. A land use plan is typically developed by:

A) Individual property owners
B) Local government authorities
C) Real estate developers
D) Environmental agencies
Answer: B

31. The term “carpet area” refers to:

A) The total area including walls
B) The usable area within the walls
C) The built-up area excluding common areas
D) The area outside the building
Answer: B

32. A power of attorney in real estate allows:

A) A buyer to purchase property without legal documentation
B) A person to act on behalf of another in property transactions
C) An owner to manage the property indefinitely
D) None of the above
Answer: B

33. An easement is:

A) A type of property ownership
B) A right to cross or use someone else’s land
C) A sale of land
D) A rental agreement
Answer: B

34. Which of the following is a form of property ownership?

A) Freehold
B) Leasehold
C) Joint tenancy
D) All of the above
Answer: D

35. The valuation of real estate can be influenced by:

A) Market conditions
B) Location
C) Property condition
D) All of the above
Answer: D

36. An “as-is” sale means:

A) The property will be renovated before sale
B) The buyer accepts the property in its current condition
C) The seller will fix any issues before selling
D) The property is sold at a discounted price
Answer: B

37. What is a “quiet title” action?

A) A dispute over property boundaries
B) A lawsuit to establish ownership of property
C) A method of selling property
D) An eviction process
Answer: B

38. A “short sale” refers to:

A) A quick sale of property
B) Selling a property for less than the amount owed on the mortgage
C) A sale that does not require a mortgage
D) A sale of property without inspections
Answer: B

39. Which of the following is a characteristic of a leasehold estate?

A) Indefinite duration
B) Ownership of the land
C) Temporary right to use property
D) Full control over the property
Answer: C

40. The term “closing costs” refers to:

A) Costs incurred for property maintenance
B) Fees associated with finalizing a real estate transaction
C) Costs of legal documentation
D) All of the above
Answer: B

41. Which of the following is considered a fixture?

A) A chandelier
B) A portable heater
C) Furniture
D) Artworks
Answer: A

42. A “foreclosure” occurs when:

A) A property is sold to the highest bidder
B) A lender takes possession of a property due to non-payment
C) A property is rented out
D) A property is transferred to a new owner
Answer: B

43. In property transactions, “earnest money” is:

A) A fee paid to the seller before closing
B) A refundable deposit showing the buyer’s commitment
C) A fee for property appraisal
D) A tax on property transactions
Answer: B

44. Which of the following is a key element of a valid lease agreement?

A) Signature of the landlord
B) Clearly defined terms
C) Witnesses
D) Notarization
Answer: B

45. “Land use regulations” are intended to:

A) Maximize property value
B) Control how land is developed and used
C) Increase taxes on property
D) Simplify property transactions
Answer: B

46. A property appraisal is conducted to:

A) Determine the selling price of the property
B) Evaluate the property’s market value
C) Identify repairs needed
D) Both A and B
Answer: D

47. What does the term “super built-up area” include?

A) Carpet area plus wall thickness
B) Carpet area plus common areas
C) Only the area occupied by walls
D) The total land area
Answer: B

48. A “landlord” is defined as:

A) A person who rents property to another
B) A person who manages property for the owner
C) A tenant who pays rent
D) None of the above
Answer: A

49. A “tenancy for years” refers to:

A) A lease with no specified end date
B) A lease for a fixed term
C) A month-to-month rental agreement
D) An oral agreement
Answer: B

50. A “quitclaim deed” conveys:

A) A clear title to the property
B) Any interest the grantor may have in the property
C) A warranty of title
D) None of the above
Answer: B

51. Which of the following is NOT a common type of mortgage?

A) Fixed-rate mortgage
B) Adjustable-rate mortgage
C) Reverse mortgage
D) Shared appreciation mortgage
Answer: D

52. A “property management agreement” typically includes:

A) Responsibilities of the property manager
B) Fees and payment structure
C) Duration of the agreement
D) All of the above
Answer: D

53. The term “subdivision” refers to:

A) Selling part of a property
B) Dividing a piece of land into smaller lots
C) Changing land use
D) None of the above
Answer: B

54. A “right of first refusal” gives:

A) A tenant priority to purchase the property
B) A buyer the right to refuse an offer
C) A seller the right to refuse a buyer
D) None of the above
Answer: A

55. A “property disclosure statement” is intended to:

A) Inform the buyer about property defects
B) Increase property value
C) Facilitate faster sales
D) None of the above
Answer: A

56. Which of the following is a type of land survey?

A) Boundary survey
B) Topographic survey
C) Site survey
D) All of the above
Answer: D

57. An “option agreement” gives the buyer:

A) The right to purchase at a later date
B) The obligation to purchase
C) A discount on the property
D) None of the above
Answer: A

58. What does “due diligence” involve in real estate?

A) Assessing property condition and legal status
B) Finalizing a sale quickly
C) Offering a property for sale
D) None of the above
Answer: A

59. The term “right of way” refers to:

A) The right to access a property
B) The right to cross another’s property
C) The ownership of land
D) None of the above
Answer: B

60. A “foreclosure auction” is typically held by:

A) The property owner
B) The lender
C) Real estate agents
D) Local government
Answer: B

61. The term “real property” encompasses:

A) Land only
B) Buildings and improvements on land
C) Both land and buildings
D) All of the above
Answer: C

62. A “construction lien” is placed on a property by:

A) Property owners
B) Contractors and suppliers
C) Real estate agents
D) Government agencies
Answer: B

63. An “open listing” allows:

A) Multiple agents to sell the same property
B) Only one agent to sell the property
C) A tenant to rent the property
D) None of the above
Answer: A

64. A property tax assessment is primarily based on:

A) The sale price of the property
B) The estimated value of the property
C) The size of the property
D) The condition of the property
Answer: B

65. “Property flipping” refers to:

A) Long-term property investment
B) Buying and quickly selling a property for profit
C) Renting a property
D) None of the above
Answer: B

66. A “certificate of occupancy” is issued by:

A) The property owner
B) Local government authorities
C) Real estate agents
D) None of the above
Answer: B

67. A “real estate investment trust” (REIT) is:

A) A fund that invests in real estate
B) A type of mortgage
C) A property management company
D) None of the above
Answer: A

68. An “escrow account” is used for:

A) Holding deposits during a real estate transaction
B) Managing property taxes
C) Collecting rent payments
D) None of the above
Answer: A

69. A “wrap-around mortgage” involves:

A) Combining multiple loans into one
B) A secondary loan wrapped around an existing mortgage
C) A loan with a longer repayment period
D) None of the above
Answer: B

70. “Amortization” refers to:

A) The process of paying off a loan over time
B) A method of valuing property
C) The sale of property
D) None of the above
Answer: A

71. A “hard money loan” is typically:

A) Secured by real estate
B) Short-term and high-interest
C) Used for quick financing
D) All of the above
Answer: D

72. A “ground lease” is characterized by:

A) Leasing the land only
B) Leasing the building only
C) An indefinite duration
D) A lease that includes utilities
Answer: A

73. The term “real estate bubble” refers to:

A) Rapid increase in property values followed by a decline
B) Stabilization of property prices
C) Increased rental demand
D) None of the above
Answer: A

74. Which of the following is an example of personal property?

A) Land
B) Buildings
C) Furniture
D) Fixtures
Answer: C

75. “Capital gains tax” is applicable when:

A) Property is rented out
B) Property is sold for a profit
C) Property is inherited
D) None of the above
Answer: B

76. A “mixed-use development” includes:

A) Residential and commercial spaces
B) Only residential properties
C) Only commercial properties
D) None of the above
Answer: A

77. A “buyer’s agent” primarily represents:

A) The seller
B) The buyer
C) The lender
D) None of the above
Answer: B

78. “Market analysis” in real estate involves:

A) Assessing property value based on comparable sales
B) Determining the cost of renovations
C) Evaluating the condition of a property
D) None of the above
Answer: A

79. “Title insurance” protects against:

A) Mortgage fraud
B) Claims against the property
C) Natural disasters
D) None of the above
Answer: B

80. A “deed of trust” is used in:

A) Traditional mortgages
B) Foreclosure processes
C) Securing a loan with property
D) None of the above
Answer: C

81. A “real estate attorney” typically assists with:

A) Negotiating purchase prices
B) Drafting legal documents
C) Property management
D) None of the above
Answer: B

82. The “implied warranty of habitability” ensures:

A) Properties are sold at fair market value
B) Rental properties meet basic living standards
C) Sellers disclose all property defects
D) None of the above
Answer: B

83. “Homeowners’ association” (HOA) fees are typically used for:

A) Property taxes
B) Maintenance of common areas
C) Individual property upgrades
D) None of the above
Answer: B

84. A “contingency clause” in a real estate contract allows:

A) Automatic closure of the deal
B) Withdrawal from the contract under specific conditions
C) Increase in purchase price
D) None of the above
Answer: B

85. A “short-term rental” is typically defined as:

A) Less than 30 days
B) More than 30 days
C) A year-long lease
D) None of the above
Answer: A

86. A “flood zone” is an area designated by:

A) Local government only
B) National government agencies
C) Environmental agencies
D) None of the above
Answer: B

87. The “purchase agreement” typically outlines:

A) The buyer’s financing options
B) The terms of sale between buyer and seller
C) The listing price of the property
D) None of the above
Answer: B

88. “Deed restrictions” are:

A) Limits placed on property use
B) Financial obligations of the owner
C) Requirements for property maintenance
D) None of the above
Answer: A

89. “Land trust” is used primarily for:

A) Managing personal finances
B) Holding title to real estate
C) Investing in stock markets
D) None of the above
Answer: B

90. “Staging” a home refers to:

A) Cleaning and repairing the property
B) Preparing the home for sale to attract buyers
C) Making legal documents ready
D) None of the above
Answer: B

91. A “bank-owned property” is also known as:

A) Foreclosed property
B) Short sale property
C) Leasehold property
D) Rental property
Answer: A

92. “Bulk sale” refers to:

A) Selling multiple properties at once
B) Selling a single property
C) Renting out multiple properties
D) None of the above
Answer: A

93. A “building code” is intended to:

A) Regulate property values
B) Ensure safety and standards in construction
C) Control property taxes
D) None of the above
Answer: B

94. “Tenancy in common” allows:

A) Shared ownership with rights of survivorship
B) Multiple owners with separate shares
C) A single owner only
D) None of the above
Answer: B

95. A “letter of intent” is typically used to:

A) Finalize a sale
B) Outline preliminary agreements between parties
C) Establish a lease
D) None of the above
Answer: B

96. The term “upzoning” refers to:

A) Changing the zoning to allow for more intensive use
B) Reducing the permitted uses of land
C) Increasing property taxes
D) None of the above
Answer: A

97. “Fair market value” is defined as:

A) The price at which property sells under duress
B) The price that buyers are willing to pay in a free market
C) The highest price a seller can get
D) None of the above
Answer: B

98. A “lease option” gives:

A) The tenant the right to purchase the property
B) The landlord the right to evict the tenant
C) A fixed rental rate for life
D) None of the above
Answer: A