Q1. Where there is a default on a mortgage which of the following can occur?

1. After the foreclosure sale, the borrower has a ten year statutory right to redeem the property by paying all cash
2. The court may take possession of the secured property
3. The lender can foreclose without the need of going through judicial proceedings if there is a power of sale clause in the mortgage
4. A prospective purchaser can bid on the property

Q2. After registration as a valuer

1. the eligibility, qualification and experience criteria is only seen at the time of making application with authority
2. No matter what happen after his registration, a valuer will remain eligible forever
3. the valuer shall at all times possess the eligibility, qualification and experience criteria as specified under rules
4. should have to remain eligible at least for one year after his registration

As per rule 7 of Companies (Registered valuers and valuation) rules, 2017, the registration granted under rule 6 shall be subject to the conditions that the valuer shall – (a) at all times possess the eligibility and qualification and experience criteria as specified under rules

Q3. Real property includes

1. Property that is whether or not artificial
2. All interests, benefits, and rights inherent in the owner ship of real estate
3. Property that is not artificial
4. Any and all building on the subjects site

Q4. Mixed income of self employed means

1. wages due to family workers

2. gross profit received by proprietor

3. rent interest and profit of the Enterprise

4. combined factor payment which are not distinguishable

The remuneration of the self-employed is treated as mixed income. It is defined as the income that is received, over a given reference period, by individuals, for themselves or in respect of their family members, as a result of their current or former involvement in self-employment jobs

Q5. A promissory note that provides for payment of interest only during the term of the note is an

1. Instalment note
2. Amortized note
3. Non-negotiable note
4. Straight note

Q6. The difference between the cost of replacement and current valuation of single-family residence is equal to

1. Assessed valuation
2. Accrued depreciation
3. Investment limitation
4. Economic replacement

Q7. In which of the following case law issue whether the open market for purposes of valuation means the black market price as well was decided?

1. Chimanlal Hargovinddas Vs. SLAO,
2. CWT Vs. P.N. Sikand (1977) 107 ITR 922 (SC)
3. Jawajee Nagnathan Vs. Revenue Divisional Officer (1994) SCC (4) 595 (SC)
4. CED Vs. Radhadevi Jalan (1968) 67 ITR 761 (Cal)

Q8. A Lessor will receive back leased property worth of Rs. 20,00,000/- after 20 years.

You are required to answer the following questions.

NOTE: Please tick only one answer for each question. Multiple answers for same question will disqualify the question for evaluation.

(a) Compute the present value of leased property by considering the rate of interest @ 7%.

1. Rs. 5,26,828
2. Rs. 5,16,838
3. Rs. 6,16,257
4. Rs. 4,86,246

=PV (7%,20,,2000000,0)

(b) Suppose lessee borowed some amount from the bank @7% Per annum compounding annually. If he finished paying his loan by paying Rs. 6,55,000 at the end of 4 years, then what is the amount of loan he had taken. Round your answer to nearest thousands.

1. 450000
2. 500000
3. 475000
4. 525000

=

(c) If the rate of interest increases the present value

1. Increases
2. Decreases
3. No change
4. Varies abnormally

Q9. A property has a net income of Rs. 36,000 per year. The operating expense ratio is 36%. The vacancy and collection loss is estimated to be 4%. What is the effective gross income?

1. Rs. 22,118
2. Rs. 60,000
3. Rs. 56,250
4. Rs. 21,600

Gross income- outgoings = Net income

outgoings = 36% of gross income= 0.36 gross income

So

Gross income- 0.36 Gros income = Net Income

0.64 Gross Income = 36000

Gross income = 56250

Vacancy and collection is not to be considered as it is already accounted for in net income.

Q10. When the mortgaged property is a renewable leasehold, for the renewal of the lease, and may, in the absence of contract to the contrary, add such money to the principal money, at the rate of interest payable on the principal, and where no such rate is fixed

1. At the rate of 8% PA
2. At the rate of 7% PA
3. At the rate of 6% PA
4. At the rate of 9% PA

Q11. Mr. A has leased a property to Mr. B for Rs. 800 per month. Mr. B in turn has sub -leased to Mr. C the same property for Rs. 1300 per month. What would be improved rent & profit rent?

1. Rs. 500 & Rs. 1300
2. Rs. 500 & Rs.800
3. Rs. 1300 & Rs. 500
4. Rs. 1300 & Rs.800

Q12. If the property insured under a fire insurance policy is sold and there is a loss after the sale,

1. the insured can recover the loss irrespective of the insurable interest
2. the insured cannot recover the loss as he could not prove the existence of insurable interest at the time of loss
3. the insured cannot recover the loss as he has no insurable interest at the

time of loss

1. None of the above

Q13. How many asset classes have been specified under the Companies (Registered valuers and valuation) rules, 2017

1. four
2. three
3. two
4. one

Annexure IV specify the eligibility qualification and experience for registration as valuer wherein currently only three classes of assets have been specified namely, Plant and Machinery, Land and Building and Securities or Financial Assets. Any other asset class along with corresponding qualifications and experience in accordance with rule 4 as may be specified by the Central Government in future.

Q14. Which of the following are the two value ingredients of a marketable non investment property

1. Liquidity and utility
2. No marketability and liquidity
3. Utility and marketability
4. Liquidity and marketability

Q15. Which of the following property types is the most likely to involve consideration of non realty assets?

1. Multi-tenant suburban office buildings
2. Multi-tenant suburban office buildings
3. Newly developed one unit homes
4. National chain hotel properties

Q16. Lichens are good bioindicators for

1. Environmental radiation
2. Soil pollution
3. Water and air pollution
4. None of the above

Q17. Which of the following method is to be adopted if an asset is to be used more in the early years of its than to that of later Years

1. SLM
2. Sinking fund method
3. WDV
4. Book value method

Q18. Increasing the sample size has the following effect upon the sampling error?

1. It increases the sampling error
2. It reduces the sampling error

c, It has no effect on the sampling error

1. All of the above

Q19. For household wiring and small units, the following should be used for safety measure

1. ACB
2. OCB
3. MCCB
4. MCB

Q20. A valuer shall act with——– in his/its professional dealings by ensuring that his/its decisions are made without the presence of any bias, conflict of interest, coercion, or undue influence of any party, whether directly connected to the valuation assignment or not.

1. Integrity and Fairness
2. objectivity
3. Professional Competence and Due Care
4. independence

As per Model code of conduct of registered valuers (Annexure 1), the Companies (Registered valuers and valuation) rules, 2017, a valuer shall act with objectivity in his/its professional dealings by ensuring that his/its decisions are made without the presence of any bias, conflict of interest, coercion, or undue influence of any party, whether directly connected to the valuation assignment or not.

Q21. Mr. X (Lessor) & Mr. Y (lessee) have entered into lease agreement of a property for 10 years, that mean Mr. Y will have

1. Right to sale of property for 10 years
2. Ownership of property for 10 years
3. Right to mortgage of property for 10 years
4. Right to use of property for 10 years

Q22. If a consumer is consuming a combination of goods or services at the best affordable point, then the marginal rate of substitution between the goods is

1. less than the relative price of the goods.
2. equal to one.
3. greater than the relative price of the goods.
4. equal to the relative price of the goods.

Q23. Word Bull and Big are associated with which branch of commercial activity?

1. Share Market
2. Banking
3. Foreign Trade
4. Manufacturing

Q24. Which of the following parts/ provisions of the Indian Constitution cannot be amended?

1. Preamble to the Constitution
2. Fundamental Rights
3. Directive Principles of State Policy
4. Judicial Review

Judicial Review forms the part of the basic structure of the Constitution which cannot be altered by the amendment procedure.

Q25. The ADR mechanism of dispute resolution in India, mainly comprise of the following:

1. Litigation, Negotiation and Arbitration;
2. Arbitration, Mediation, Conciliation and Negotiation.
3. Mini Trials, Early Neutral Evaluation and Mediation;
4. Arbitration and litigation;

• Arbitration: A formal process where disputes are resolved by an impartial third party (arbitrator) who issues a binding decision.
• Mediation: A non-binding process facilitated by a neutral third party (mediator) who helps the parties reach a mutually acceptable settlement.
• Conciliation: Similar to mediation, but the process is less formal and aims to resolve disputes through negotiation.
• Negotiation: Parties can resolve their disputes directly through negotiation, often involving a neutral third party to facilitate the process.

Q26. The value obtained in auction of the property to a person who is dangerous to civilization is called

1. Distress value
2. Fear value
3. Market value
4. Fair value

Q27. What is the best-suited name for a process that doesn’t necessitate experimental research?

1. Manipulation
2. Observation
3. Controlling
4. Content analysis

In an experimental research design, whenever the independent variables (ie., treatment variables or factors) decisively get altered by researchers, then that process is termed as an experimental manipulation.

Q28. Which of the following is not an input

1. Entrepreneurship
2. Labour
3. Natural resources
4. Production

“Production” is not an input, it is an outcome or result of the combination of inputs such as labour, entrepreneurship, and natural resources in the production process. Inputs are the resources or factors of production used to produce goods or services, whereas production refers to the process of transforming these inputs into outputs. While labour, entrepreneurship, and natural resources are inputs used in the production process, “Production” itself is not an input but rather the outcome of utilizing these inputs to create goods or services.

Q29. Which of the following statements are true regarding rights and liabilities of a lessor under the Transfer of Property Act, 1882?

1. The lessor is bound to pay or tender, at the proper time and place, the premium or rent to the lessee or his agent in this behalf
2. The lessee is bound on the lessor’s request to put him in possession of the property
3. Lessee must not without permission erect on the property any temporary or permanent structure, except for agricultural purpose
4. Lessee must not without permission erect on the property any permanent structure, except for agricultural purpose

Q30. According to the principle of integration and disintegration

1. The maximum value would be based on cost of a comparable property
2. Property value is best maintained in homogeneous areas
3. The value of a property will eventually decline
4. Extraordinary profits will disappear with competition

Q31. Would it be correct to say that bye-laws of the corporation or development control rules affect the value of the land

1. Correct
2. Cannot say
3. Not related
4. Not correct

Q32. Which of the following is not a tort?

1. Culpable Homicide
2. Defamation
3. Nuisance
4. Negligence

Q33. Which of the following are of capital nature?

1. Wages paid for installation of machinery
2. Rent of a factory
3. Cost of repair
4. Purchase of a goods

Q34. Which of the following is not a measure of central tendency?

1. Mean
2. Mode
3. Median
4. Variance

Q35. Where a decree provides for a future decree, it is not actionable claim. This was decided in which of following case?

1. Govindarajula Vs. Ranga Rao
2. Jugulkishore saraf Vs. Raw Cotton co. Itd
3. Loyds Vs. Banks
4. None of the above

Q36. A fraction of a whole property is to valued. Such a building fraction is classified as

1. Security
2. Investment property
3. Non marketable property
4. Service property

Q37. Depreciation on assets is calculated as per Straight line method at rate specified in Companies Act is an:

1. Accounting concept
2. Accounting Standard
3. Accounting convention
4. None of the above

Q38. SARFAESI Act 2002 does not concern which of the following aspects:

1. Authority to enforce without the intervention of the court
2. Securitisation of Financial Assets
3. Setting up of Central Registry
4. Reconstruction of Assets

Q39. Which of the following is correct

1. if national income Rises, per capita income must also Rise
2. if population Rises, per capita income must fall
3. if national income Rises, Welfare of people must rise
4. none of the above

All the options mentioned hereinabove are incorrect as they do not establish any relation with that of their counterpart as stated above.

Q40. Which of the following features of the Indian Constitution is not borrowed from Canadian Constitution?

1. Advisory Jurisdiction of Supreme Court
2. Residuary powers with the Centre
3. Impeachment of the President
4. Federation with a strong Centre

The features of the Canadian Constitution incorporated in Indian Constitution are-federation with a strong Centre, vesting of residuary powers in the Centre, appointment of State governors by the Centre and advisory jurisdiction of the Supreme Court. Process of impeachment of the President is borrowed from US Constitution.

Q41. A good hypothesis should be

1. precise, specific and consistent with moist known facts
2. formulated in such a way that it can be tested by the data
3. of limited scope and should not have global significance
4. all of these

Q42. As per Ind AS 36, when does an asset described as impaired ?

1. asset is carried at more than its recoverable amount
2. asset is carried at less than its recoverable amount
3. asset is carried at more than its historical cost
4. asset is carried at more than its amortized cost

An entity applies Ind AS 36 to ensure that its assets are carried at no more than their recoverable amount. An asset is carried at more than its recoverable amount if its carrying amount exceeds the amount to be recovered through use or sale of the asset. If this is the case, the asset is described as impaired and the Standard requires the entity to recognise an impairment loss.

Q43. Can the tenant carry out repairs by himself?

1. With oral permission of landlord
2. With written permission from landlord
3. No
4. Yes

Q44. Property sale prices

1. Are set by brokers
2. Are negotiated between buyers and sellers
3. Are opinions
4. Are negotiated by appraises

Q45. Section 22 of the Hindu Succession act, 1956 provides for

1. Disqualifications of a heir
2. Right of pre-emption among co-heirs

c Escheat

1. Presumption in cases of simultaneous deaths

Pre-emption is a legal principle that confers a preferential right to a co-owner or an adjacent property owner to buy a piece of immovable property before it is sold to an outsider. This concept originated in Islamic law and later spread to other jurisdictions, including Hindu law. While it was more prevalent during earlier times, pre-emption continues to have legal significance in modern India, particularly in cases involving joint property ownership or co-sharers.

Q46. The points of conventional loans are computed and based on

1. Closing costs
2. Sales Price
3. Listing Price
4. Loan amount

Q47. If there are two insurance policies ‘A’ and ‘B’ policy ‘A’ subject to an excess of Rs. 1,000/- and policy ‘B’ subject to a franchise of Rs. 1,000/-, and if a loss of Rs.500/-

is reported under each policy, the amount of claim payable is:

1. 1500
2. 500
3. 1000
4. NIL

Q49. When a guarantee extends to a single transactions or debt it is called

1. Retrospective guarantee
2. Prospective guarantee
3. Fidelity guarantee
4. Specific Guarantee

Q50. View of linking yield in real estate with govt. security was changed by Supreme

Court in 1983 in the case of:

1. CWT Vs. P.N. Sikand (1977) 107 ITR 922 (SC
2. R.C. Cooper Vs. Union of India, (1970) AIR SC 564 X
3. UOI vs. Smt. Shantidevi (A.I.R 1983 SC 1190)
4. Chimanlal Hargovinddas Vs. SLAO, Pune AIR 1988 SC 1652

Q51. The rent to the owner after deduction of all outgoings (i.e. gross rent less all outgoings including land tax) is called

1. Market rent
2. Net rent
3. Standard rent
4. Contractual rent

Q52. Contribution of various greenhouse gases to total global warming in decreasing order

1. Carbon dioxide, CFCs, Methane
2. Methane, Carbon dioxide, CFCs X
3. Carbon dioxide, Methane, CFCs
4. Methane, CFCs, Carbon dioxide

Q53. When should an impairment loss be recognised?

1. Immediately
2. Over the remaining useful life of the asset
3. When pointed out by the auditors of the entity
4. Management should decide how and when impairment to be recognised

An impairment loss shall be recognised immediately in profit or loss, unless the asset is carried at revalued amount in accordance with another Standard (for example, in accordance with the revaluation model in Ind AS 16). Any impairment loss of a revalued asset shall be treated as a revaluation decrease in accordance with that other Standard. An impairment loss on a non-revalued asset is recognised in profit or loss. However, an impairment loss on a revalued asset is recognised in other comprehensive income to the extent that the impairment loss does not exceed the amount in the revaluation surplus for that same asset. Such an impairment loss on a revalued asset reduces the revaluation surplus for that asset.

Q54. Who is the final authority to interpret the constitution?

1. The Supreme Court
2. The Parliament
3. The President
4. The Lok Sabha

Q55. If two variables, x and y, have a very strong linear relationship, then

1. there is evidence that x causes a change in y
2. there is evidence that y causes a change in x
3. there might not be any causal relationship between x and y
4. None of these alternatives is correct. X

Q56.——–principle in insurance means maximum truth.

1. Great faith
2. Indemnity
3. Case 10
4. Subrogation

Q57. Legal subrogation arise

1. By operation of law
2. By operation of traditions
3. By operation of customs
4. By operation of usage

Q58. A standard fire policy was taken for 161 lakhs for a factory building (RCC roof) 1400 sq.m. of 15 years old. Replacement cost is Rs. 18,000 Sq.m . Fire loss is Rs.30 lakhs.

Assume life as 60 years. Salvage value: NIL. Cost of foundation is 15%

Answer the following questions

NOTE: Please tick only one answer for each question. Multiple answers for same question will disqualify the question for evaluation.

Question A. How much is the claim payable?

1. 20,00,000
2. 24,00,000
3. 27,00,000
4. 30,00,000

Question B. What is the present worth less foundation before fire damage?

1. Rs. 1,30,25,000
2. Rs. 1,60,65,000
3. Rs. 2,14,20,000
4. Rs. 2,52,00,000

Question C. What is the replacement cost of new building today after deducting 15% for foundation?

1. 1,30,25,000
2. 1,60,65,000
3. 2,14,20,000
4. 2.52,00,000

Question D. What is the depreciation of building excluding foundation on straight line method?

1. 53,55,000
2. 60,00,000
3. 63,33,333
4. 92,30,250

Question E. What will be the depreciation percentage in the above case?

1. 20 Percent
2. 25 Percent
3. 30 Percent
4. 35 Percent

Question F. What will be the depreciation percentage if the salvage value is 20%?

1. 10 Percent
2. 20 Percent
3. 30 Percent
4. 40 Percent

Sol: Area of the building = 1,400 sq.m

Replacement rate = Rs. 18.000/sq.m

Replacement value = 1,400 18,000 = Rs.2.52,00,000

Age of the building = 15 years: Life of the building = 60 years: Salvage value = nil

Depreciation percentage = 15/60100=25%

Depreciation value = (0.25)2,52,00,000= Rs. 63,00,000

Depreciated value = 2,52,00,000-63,00,000= Rs. 1,89,00,000

Less foundation 15%=0.151,89,00,000 = Rs. 28,35,000

Depreciated value of the building less foundation = 1,89,00,000-28,35,000 = Rs.1,60,65,000

Answers

1. Fire loss = Rs.30,00,000

Sum insured = Rs.1,61,00,000

Depreciated value of the building = Rs. 1,60,65,000

Sum insured adequate (there is no under insurance)

Claim payable = 100% of Rs. 30,00,000= Rs.30,00,000

1. Present worth less foundation = Rs. 1.60,65,000
2. Replacement cost of new building today deducting 15% for foundation = 0.85 2,52,00,000= Rs. 2,14,20,000
3. Depreciation of building excluding foundation on straight line method.

Replacement value = Rs.2,52,00,000

Value excluding foundation = 0.852.52,00,000= Rs 2,14,20,000

Depreciation percentage assuming the life as 60 years &salvage value as nil =

15/60100=25%

Depreciation of building = 0.252,14,20,000 = Rs.53,55,000

1. Age of the building = 15 years: Life of the building = 60 years: Salvage value = nil

Depreciation percentage = 15/60100=25%

1. Age of the building = 15 years

Life of the building = 60 years

Salvage value = 20%

Depreciation percentage = 15/60(100-20)=20%

Q59. “Coastal Regulation” zone restrict development within

1. 100 m
2. 150 m (from high tide)
3. 50 m (from low tide)
4. 500 m (from high tide)

Q60. Out of following, which is not element of market value?

1. An arm’s length transaction
2. Under compulsion
3. Willing buyer and a willing seller
4. Proper marketing

Q61. Nemo data quad non habit (no man can confer a better title than that which he himself has) is an established principle of

1. Rule of law of crimes
2. Rule of contract
3. Rule of law of torts
4. Rule of transfer of property

Q62. According to the weak form of market efficiency——— included in the stock price. past information is

1. no
2. marginal
3. all
4. only a few

Q63. In a transfer of a house, the transferee will get

1. Easement rights
2. Locks, keys, doors, etc.
3. Rent due after the transfer
4. All of the above

Q64. Under the provision of SARFAESI Act 2002, where a transaction of securitisation is registered:

1. Registrar of Assurances
2. Registrar of Companies
3. Registrar of Central Registry
4. Registrar of Firms

Q65. The owner of a industrial building leases his building for a period of 25 years. The future expected life of shed building is around 20 years. The Lessor agreed for annual net rent of Rs. 3,50,000/- and the rate of interest is 7% and redemption rate is 3%. What is the value for obtaining mortgage loan from the bank?

NOTE: Please tick only one answer for each question. Multiple answers for same question will disqualify the question for evaluation.

(A) What is capitalized value for Lessor for mortgage purpose

1. Rs. 30,45,000
2. Rs. 32,72,500
3. Rs. 33,95,500
4. Rs. 34,15,000

(B) What is the unexpired period of lease?

1. 20 years
2. 21 years
3. 25 years
4. 30 years

(C) The rate of Recoupment, which is generally considered is

1. 2 percent to 3 percent
2. 3 percent to 4 percent
3. 3 percent to 5 percent
4. 4 percent to 6 percent

(D) The Remunerative rate is generally varies from

1. 3 percent to 4 percent
2. 4 percent to 6 percent
3. 6 percent to 8 percent
4. 8 percent to 10 percent

Solution:

Adopt Years Purchase (YP) Dual rate:

YP= 1/(R+S)

Where, S=r/((1+r)^n-1)

S=0.03/((1+0.03)^20-1)

S=0.037

So, YP=1/(0.07+0.037)

=9.35

Capitalized value for mortgage = Net Income x Y P

= 3,50,000 x 9.35

= Rs.32,72,500/-

Hence the value for Lessor for obtaining mortgage loan is Rs.32,72,500/-

Q66. Fair value is ———-based measurement.

1. worth
2. characteristics
3. estimate
4. market

This Ind AS defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When measuring fair value an entity shall take into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Such characteristics include, for example, the following:

(a) the condition and location of the asset, and

(b) restrictions, if any, on the sale or use of the asset

Q67. Which of the following is not a part of modifying principle

Principle of conservatism

Principle of dual aspects

Principle of consistency

Principle of materiality

Q68. If the NPV of the project in Zero then IRR will be

1. Zero
2. Positive
3. No effect
4. Negative

Q69. Distress value means

1. Value assessed for force sale
2. Discounted value for non-availability for buyers
3. Value assessed under worst condition
4. Value of comparable nearby properties

Q70. A deed of trust is

1. A deed given by a prisoner who has behaved well for many years
2. A document that gives a third party the deed until the mortgage loan is paid off
3. Used as a tool to make foreclosure more efficient
4. A document that makes a third party responsible for the money

Q71. The mortgagors right to re-establish ownership after default is known as

1. Subordination
2. Reestablishment
3. Redemption
4. Acceleration

Q72. The use of an acceleration clause in a mortgage or a deed of trust is to

1. Increase the amount of the monthly
2. Require that the entire balance be paid at once when exercised
3. Require that the mortgagor make more payments per month
4. Pressure the mortgagor into making payments

Q73. The registered valuers appointed under regulation 27 shall submit to the resolution

professional an estimate of

1. Fair Value
2. Liquidation Value
3. Realizable Value
4. both a and b

Q74. Excess land is

1. Land that is not needed to support the subject’s primary highest and best use or not needed to support existing improvements
2. Land the is not needed according to zoning requirements
3. Land included with the subject that is above the lenders limits
4. Land value that is above the assessors estimate of value

Q75. A research intends to explore the result of possible factors for the organization of effective mid-day meal interventions. Which research method will be most appropriate for this study?

1. Ex-post facto method
2. Descriptive survey method
3. Experimental method
4. Historical method

Mainly in the ex-post facto method, the existing groups with qualities are compared on some dependent variable. It is also known as quasi-experimental for the fact that instead of randomly assigning the subjects, they are grouped on the basis of a particular characteristic or trait.

Q76. The lender wants to ensure the first priority of its lien. The lender should make sure of which of the following?

1. The borrower’s father has co-signed the note
2. The loan is insured
3. The borrower has an unconditional fee simple estate with no liens
4. All other liens are removed from title or subordinated from the property being used as collateral

Q77. When people pay less for something than it is worth to them, they receive a(n)

1. producer surplus.
2. consumer surplus.
3. external benefit.
4. deadweight loss.