Free Practice Questions for IVSL Valuer Exam

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Sample IVSL Valuer Exam Practice Questions

Try these sample questions to review concepts for the IVSL Valuer Exam exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1A valuer is asked to value a standard suburban house with many recent sales of comparable houses nearby. Which method of valuation is most appropriate?

A.Comparison (sales comparison) method

B.Profits (accounts) method

C.Residual method

D.Contractor's (cost) method

Explanation: The comparison method derives value directly from recent transactions of similar properties and is the preferred and most reliable approach for common property types such as houses where good comparable evidence exists.

2An office building is let at a market rent of LKR 1,200,000 per annum on a secure full repairing and insuring lease in perpetuity. If the appropriate all-risks yield is 8%, what is the capital value using the investment method?

A.LKR 9,600,000

B.LKR 15,000,000

C.LKR 12,000,000

D.LKR 96,000,000

Explanation: Years' Purchase in perpetuity equals 1 / yield = 1 / 0.08 = 12.5. Capital value = net income x YP = 1,200,000 x 12.5 = LKR 15,000,000.

3What does the Years' Purchase (YP) in perpetuity for a freehold income equal?

A.The yield multiplied by 100

B.One divided by the yield expressed as a decimal

C.The yield divided by the income

D.The income multiplied by the yield

Explanation: YP in perpetuity = 1 / i, where i is the yield as a decimal. It is the present value of LKR 1 per annum received forever, and capitalises a perpetual income into a capital sum.

4A valuer must value a public school building of specialised design for which there are no rental or sale comparables. Which method is most appropriate?

A.Comparison method

B.Investment method

C.Contractor's (depreciated replacement cost) method

D.Profits method

Explanation: Specialised properties with no market evidence are valued by the contractor's method, also called depreciated replacement cost: the cost of a modern equivalent building plus land, less depreciation for age and obsolescence.

5Which property type is most appropriately valued using the profits (accounts) method?

A.A vacant plot of development land

B.A standard two-bedroom apartment

C.A hotel whose value depends on its trading performance

D.A purpose-built fire station

Explanation: The profits method is used where value is intrinsically linked to the business trade, such as hotels, cinemas, petrol stations and pubs. Value is derived from the sustainable net operating profit available to pay rent.

6In the residual method of valuation for development land, how is the residual land value obtained?

A.Gross development value less total development costs and developer's profit

B.Total construction cost plus a profit margin

C.Net annual rent multiplied by the years' purchase

D.Comparable land sales averaged per perch

Explanation: The residual method takes the gross development value (the value of the completed scheme) and deducts all costs of development, including construction, fees, finance and the developer's required profit. The surplus left is the amount available to buy the land.

7A shop produces a net rent of LKR 600,000 per annum and similar shops sell on yields of 10%. Using the investment method, what is the capital value?

A.LKR 6,000,000

B.LKR 600,000

C.LKR 60,000

D.LKR 60,000,000

Explanation: YP in perpetuity at 10% = 1 / 0.10 = 10. Capital value = 600,000 x 10 = LKR 6,000,000.

8If an investment property sells for LKR 20,000,000 and produces a net income of LKR 1,600,000 per annum, what is the all-risks yield?

A.12.5%

B.8%

C.16%

D.6.25%

Explanation: Yield = net income / capital value = 1,600,000 / 20,000,000 = 0.08 = 8%.

9A building cost LKR 10,000,000 to replace new and has an estimated economic life of 50 years. Using the straight-line method, what is the annual depreciation and the depreciated value after 20 years?

A.LKR 200,000 per year; LKR 6,000,000 remaining

B.LKR 500,000 per year; LKR 5,000,000 remaining

C.LKR 200,000 per year; LKR 4,000,000 remaining

D.LKR 100,000 per year; LKR 8,000,000 remaining

Explanation: Straight-line annual depreciation = 10,000,000 / 50 = LKR 200,000. Over 20 years that is 4,000,000, leaving 10,000,000 - 4,000,000 = LKR 6,000,000.

10In valuation, what does the term 'highest and best use' mean?

A.The use that the current owner personally prefers

B.The most intensive use regardless of zoning or planning permission

C.The reasonably probable and legal use that is physically possible, appropriately supported and financially feasible, and results in the highest value

D.The use that minimises the owner's tax liability

Explanation: Highest and best use is the use that is physically possible, legally permissible, financially feasible and maximally productive, producing the highest value for the property. All four tests must be satisfied.

About the IVSL Valuer Exam Exam

The IVSL professional valuer examination is the qualifying assessment for those seeking registration as a professional valuer in Sri Lanka. It tests the principles and methods of property valuation, valuation mathematics, Sri Lankan land law, compulsory acquisition and compensation, rating, real estate economics and professional ethics, in line with the role of a registered valuer under the IVSL Law.

Exam sponsor: Institute of Valuers of Sri Lanka (IVSL), established under the IVSL Law No. 33 of 1975 (as amended by Act No. 9 of 2019). The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Assessment

A professional examination administered by the Institute of Valuers of Sri Lanka covering valuation theory, valuation mathematics, land law and economics. Papers combine multiple-choice and written questions; this free bank uses single-best-answer MCQs to build core knowledge.

Time Limit

Set per paper by the IVSL; written professional papers are typically around 3 hours each.

Passing Score

The IVSL sets the pass standard for each subject (commonly around 50% per paper). Confirm the official requirement with the Institute, and aim to score consistently above 70% in practice.

Exam / Certification Fees

Examination and membership fees are set by the IVSL and revised periodically. Confirm the current fee with the IVSL secretariat before applying.

Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Official sources

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

22%

Methods of Valuation

Comparison, investment, profits, residual and contractor's methods and when each applies.

16%

Valuation Mathematics

Years' purchase (YP = 1/yield), single and dual rate, present value, discounting, deferment and DCF.

Depreciation and Obsolescence

Straight-line depreciation, economic life, depreciated replacement cost and the three forms of obsolescence.

12%

Valuation Principles

Market value, market rent, highest and best use, substitution, marriage value and bases of value.

12%

Land Law and Tenure

Freehold and leasehold, deeds and title registration, prescription, easements, condominiums and land units.

10%

Compulsory Acquisition and Compensation

Land Acquisition Act, market-value compensation, severance, injurious affection, disturbance and betterment.

Rating and Rental Valuation

Annual value, rateable value, gross-to-net deductions and local authority rates.

Real Estate Economics

Supply and demand, elasticity, yields and risk, rental growth, effective demand and location.

Professional Ethics and Standards

Independence, conflicts of interest, disclosure, competence, IVSL discipline and the IVS.

Preparing for the IVSL Valuer Exam Exam

What You Need to Know

Passing score: The IVSL sets the pass standard for each subject (commonly around 50% per paper). Confirm the official requirement with the Institute, and aim to score consistently above 70% in practice.
Assessment: A professional examination administered by the Institute of Valuers of Sri Lanka covering valuation theory, valuation mathematics, land law and economics. Papers combine multiple-choice and written questions; this free bank uses single-best-answer MCQs to build core knowledge.
Time limit: Set per paper by the IVSL; written professional papers are typically around 3 hours each.
Exam / certification fees: Examination and membership fees are set by the IVSL and revised periodically. Confirm the current fee with the IVSL secretariat before applying. Official sources

Using Our Practice Resources

Work through all 100 available questions
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IVSL Valuer Exam: Suggested Study Strategy

1Master the valuation mathematics first: practise years' purchase (YP = 1/yield), present value and deferment until you can capitalise both perpetual and terminable incomes quickly and accurately.

2Learn when each of the five methods applies, and pair this with Sri Lankan land law, the Land Acquisition Act and the Bim Saviya title system, because exam questions often link a method to a legal or factual context.

3Do not neglect professional ethics and the International Valuation Standards definitions of market value and market rent, as these are reliable marks and underpin how every valuation should be reported.

Frequently Asked Questions

Who administers the IVSL professional valuer examination?

The Institute of Valuers of Sri Lanka (IVSL), established under the IVSL Law No. 33 of 1975 (as amended by Act No. 9 of 2019), regulates the valuation profession in Sri Lanka and conducts the professional examinations leading to registration as a valuer.

What topics does the valuer exam cover?

Core areas include the five methods of valuation, valuation mathematics such as years' purchase and discounting, depreciation, rating and rental valuation, compulsory acquisition and compensation under the Land Acquisition Act, Sri Lankan land law and tenure, planning, real estate economics and professional ethics.

How is years' purchase in perpetuity calculated?

Years' purchase (YP) in perpetuity equals one divided by the yield expressed as a decimal. For example, at an 8% yield the YP is 1/0.08 = 12.5, so a perpetual net income is capitalised by multiplying it by 12.5 to give the capital value.

Do I need to be registered with the IVSL to practise as a valuer in Sri Lanka?

Yes. To practise the valuer's profession lawfully in Sri Lanka, a valuer must be registered with the Institute of Valuers of Sri Lanka, which maintains professional standards, discipline and the register under its governing law.