2016 Practice Test (261 pts) Flashcards by Jane & Leo Censon

The value of real estate is determined in the market mainly by its?

a. Price
b. ProducDvity
c. Mortgage
d. Size

a. Price

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In subdivision marketing, the sale is considered a paid-up sale when the buyer paid the?

a. Required down payment
b. Seventy percent (70%) of the price
c. FiSy percent (50%) of the price
d. Reservation deposit

a. Required down payment

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Most important document to be checked before buying a subdivision lot?
a. Map
b. Subdivision plan
c. Development perm
d. License to sell

d. License to sell

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Defines the nature of the hypothetical transaction, e.g whether or not there is exposure to a market and the assumed motivation and behavior of the parties?
a. Valuation Process
b. Basis of Value
c. Approach Value
d. Discounting Cash Flow Analysis

b. Basis of Value

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The principle of anticipation

a. Is future-oriented
b. Is past oriented
c. It involves the “as of” date for an appraisal
d. It predicts the loan-to-value raDo for the subject property

a. Is future-oriented

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Which principle of value best affirms that values are the present worth of expected future benefits?

a. Supply and Demand
b. Balance
c. Substitution
d. Anticipation

d. Anticipation

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What principle states that value levels are sustained when the various elements in an economic or environmental mix are in equilibrium?

a. Anticipation
b. Equivalence
c. Substitution
d. Balance

d. Balance

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The fundamental valuation principle underlying the sales comparison process is?

a. Contribution
b. Substitution
c. Conformity
d. Change

b. Substitution

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It is a listing where the authorized RE Broker is entitled to commission even if the principal was able to close the deal?

a. Authority to sell
b. Rights of first refusal
c. Special Power of Attorney
d. Exclusive right to sale

d. Exclusive right to sale

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The authority given by the client to the RE Broker to negotiate the sale, purchase, lease, exchange, or mortgage of real property for a certain period of time at a certain price and terms with the professional fee?

a. Principal
b. Listing
c. Authority to negotiate
d. Authority to lease

b. Listing

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The rate of return by an investor which does not include allowance for capital recovery is?

a. Cash flow
b. Recapture rate
c. Interest rate
d. Block rate

c. Interest rate

If rate of return earned = Recapture Rate

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A case in which there are plenty of properties for sale with few buyers?

a. Seller’s Market
b. Lessor’s Market
c. Rental Market
d. Buyer’s Market

d. Buyer’s Market

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Mr. Paterno Dionisio bought a parcel of land paying a monthly amortization of ₱ 150,000. The amortization factor for 5 years at 21% interest is 0.02705. he paid a down- payment of 30% of the contract price, compute the principal obligation on which the monthly obligations is based?

a. ₱ 5,545,287
b. ₱ 4,880,287
c. ₱ 5,150,000
d. ₱ 5,544,287

a. ₱ 5,545,287

= 150,000 / 0.02705 = 5,545,287

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The type of listing that gives the REBroker the greatest protection?

a. Exclusive agency listing
b. Net listing
c. Exclusive right to sell
d. MulDple listing

c. Exclusive right to sell

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The acquisition of land in advance of actual need based on present value for future planned development is referred to under the Urban Land Reform Law as?

a. Urban renewal
b. Land assembly
c. Land banking
d. New settlement

c. Land banking

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A monthly contribution per POP of ₱ 1,450 could entitle qualified borrowers to a loan of?

a. ₱2.9Mto₱3M
b. ₱1Mto₱1.1M
c. ₱2.7Mto₱2.8M
d. ₱2.6Mto₱2.7M

a. ₱2.9Mto₱3M

1,450 x 2 x1000 = 2.9

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A monthly contribution per POP of ₱ 800 could entitle qualified borrowers to a loan of?

a. ₱1.1Mto₱1.2M
b. ₱1.6Mto₱1.7M
c. ₱ 900,000 to ₱ 1M
d. ₱ 700,000 to ₱ 800,000

b. ₱1.6Mto₱1.7M

800 x 2 x 1000 = 1.6m

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Government agencies mandated to regulate the environment?

a. DENR; HLURB; LGU
b. UHLP; DPWH; LGU
c. NHA; DENR; DAR
d. Sanggunian panlalawigan; NHA; DENR

a. DENR; HLURB; LGU

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The act of authorizing the change of the current use of a piece of agricultural land into non-agricultural use; a such permit is proper only upon issuance of a clearance from the Department of Agrarian Reform.

a. Transformation
b. Translation
c. Conversion
d. Equivalence

c. Conversion

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If the supply of existing housing deteriorates due to wear and tear, then the stocks of housing supply?

a. Appreciates
b. Remains constant
c. Become stagnant
d. Depreciates

d. Depreciates

Wear and Tear = Depreciate

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A description of Philippines as a tropical climate country fails for a theme?

a. Place
b. Region
c. Location
d. Movement

a. Place

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The total land area of the Philippines is 115,800 square miles, in square kilometers the total land area is equivalent to?

a. 250,000 square kilometers
b. 300,000 square kilometers
c. 330,000 square kilometres
d. 350,000 square kilometers

b. 300,000 square kilometers

115,800 x 2.59 = 300 sk

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It is the largest lake in the Philippines located in Luzon, which is also the 3rd largest freshwater lake in Southeast Asia?

a. Manila Bay
b. Laguna de Bay
c. Caliraya Lake
d. Taal Lake

b. Laguna de Bay

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Many of our mountains are densely forested. In Northern Luzon the principal mountain tree is?
a. Narra
b. Acacia
c. Mahogany
d. Pine

d. Pine

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It is the aboriginal inhabitants of our island also called Aetas or Balugas. They now constitute only a small percentage of the total population? a. Negritos b. Malays c. Indonesians d. Tinggues

a. Negritos

It is the largest lake in Mindanao and 2nd largest lake in the country? a. Lake Lanao b. Lake Buluan c. Lake Mainit d. Lake Sebu

a. Lake Lanao

Even before the arrival of the Spaniards, Philippines had already its own settlement pattern. Filipinos lived in small independent villages ruled by a petty King Datu, it is called a? a. Poblaciones b. Barangay c. SiDo d. Barrio

b. Barangay

The Philippines is the only Asian Catholic country, it is description which categories Philippines as? a. Place b. Region c. Location d. Movement

b. Region In exam answer is location

It is the application of economic techniques to real estate markets that describe, explain, and predict patterns of prices, supply, and demand. a. Real Estate Economics b. Economics c. Supply and Demand d. Demographics

a. Real Estate Economics

In real estate economics, the main determinant of the demand for housing is? a. Supply b. Demographics c. Demand d. Cost

b. Demographics - Demand for housing

Which of the following is not an economic characteristic of real estate? a. Area Preference b. Scarcity c. Transferability d. Fixity

c. Transferability

Law that establishes priorities and procedures in evaluating areas for land conversion in regional agricultural industrial centers, tourism development, and areas sites for socialized housing? a. ExecuDve Order No. 124 b. ExecuDve Order No. 122 c. ExecuDve Order No. 110 d. ExecuDve Order No. 114

a. ExecuDve Order No. 124

Refers to the LGC provision mandating LGUs to continue to prepare their respective comprehensive land use plans enacted through zoning ordinances. a. ExecuDve Order No. 124 b. Memorandum Circular No. 54 c. Section 8 R.A. 7172 d. Section 20 R.A. 7160

d. Section 20 R.A. 7160 RA 7160 - Local Government Code

Reclassification shall be done by the Sanggunian provided that it shall be? a. Fixed percentage of total land area at the time of passage of ordinance b. Fixed percentage of total agricultural land use at time of passage of ordinance c. Fixed percentage of the gross area of municipality d. Fixed percentage of total prime land in the area

b. Fixed percentage of total agricultural land use at the time of passage of ordinance Key word Agricultural

A city or municipality, through an ordinance passed by the Sanggunian after conducting the public hearing, may lands? a. Classify b. Reclassify c. Convert d. Transform

b. Reclassify

Shall determine if a particular land ceases to be economically sound for agricultural purposes? a. DENR b. DAR c. ROD d. NHA

b. DAR

In Pag-IBIG financing program, a loan of ₱ 3.0 may be paid in maximum of _____ years? a. 10 years b. 15 years c. 25 years d. 30 years

d. 30 years

In Pag-IBIG financing program, monthly amortization shall commence on? a. Month immediately following the loan takeout b. Succeeding month c. Month immediately following the 2nd month from take out d. A month before long take out

a. Month immediately following the loan takeout

In Pag-IBIG financing program, a borrower who is behind payment, when payment is made shall be applied according to the following order of priority? a. Penalties, upgrading membership contribution, insurance premiums, interest and principal b. Upgrade contribution, penalties, insurance premiums, principal and interest c. Interest, insurance, penalties and upgrade contribution d. Principal, interest, penalties, insurance and upgrade membership

d. Principal, interest, penalties, insurance and upgrade membership

Daily penalty for delay in payment of Pag-IBIG loans? a. 1/20 of 1% b. 1/25 of 2% c. 1/50 of 1% d. 1/25 of 1%

a. 1/20 of 1%

This covers a borrower who is beyond 65 years old at the date of housing loan application and shall not be over 70 years old on his birthday nearest the date the original housing loan expires? a. MRI/SRA b. MIR/SRI c. MAC/SRA d. MRI/SRI

d. MRI/SRI (mortgage/sales redemption insurance)

The ___ upon recommendation of NEDA may authorize a city/municipality to reclassify lands in excess of set limits? a. Speaker of the House b. Governor c. Mayor d. President

d. President

PD 1517 provides protection for legitimate tenants & requires clearance for development proposals and land transactions in proclaimed areas of Urban Land Reform Zones (ULRZ) and ____. a. Areas for priority development b. Areas for population increase c. Areas for potential growth d. Areas for growth

a. Areas for priority development

The following are part of the process of the component agencies of the SHOPC within the 90 days period as prescribed by R.A. 7279, except? a. DAR conversion- to determine if exempted from conversion, residentially zoned b. DENR-EMB- for issuance of ECC; LGU Approval on a development application, DENR approval c. Department of Justice- for LRA issuance of individual title d. Approval by the DENR Secretary- for Environmental Compliance

c. Department of Justice- for LRA issuance of individual title

It is a public document adopted by LGU as a guide to the physical & socio-economic development of their community? a. Town Plan b. Municipality Plan c. Barrio Plan d. Locality Plan

a. Town Plan

Division of community into function zones based on present and potential use of properties to regulate use and growth of properties per comprehensive plan? a. Code b. Decree c. Zoning d. Ordinance

c. Zoning

DENR Administrative Order (AO) No. 21, Series of 1992 was revised by AO No. 96-37 dated December 3, 1996 strengthening the implementation of? a. CENRO b. Environmental Monetary Fund c. Environmental Impact Statement d. Environmentally Critical Area

c. Environmental Impact Statement

Projects that has high potential significant negative environmental impact and is listed under PP No. 2146, Series of 1981 and pres No. 803, series of 1996, as well as other projects which the President may proclaim as environmentally critical in accordance with section 4 of PD 1586? a. Environmentally critical proposal b. Environmentally critical projects c. Environmentally critical proponents d. Environmentally critical undertaking

b. Environmentally critical projects

A detailed guide on the procedure to be observed by the parties concerned in the Environmental Impact Statement System. It shall include among others, guidelines on public participation and social acceptability, and the EIS/IEE review criteria in accordance with section 4 of PD 1586? a. Environmental Monitoring Manual b. Environmental Impact Statement Procedural Manual c. Environmental Impact Assessments Procedures d. Environmental Impact Assessment

b. Environmental Impact Statement Procedural Manua

Refers to a certificate issued by the EMB certifying that based on the submitted project description, the project is not covered by the EIS System and is not required to secure an ECC? a. Certificate of Non-Coverage b. Certificate of ExempDon c. Certificate of Non-Compliance d. Certificate from EMB

a. Certificate of Non-Coverage

Ms. Trisha Tolosa bought a parcel of land. She paid a down payment of 20% on the contract price, with a monthly amorDzaDon of ₱ 108,200 for 5 years at an interest of 21% per annum with the amorDzaDon factor is 0.02705. How much is the principal loan, contract price and downpayment? a. ₱ 4,000; ₱ 5,000 and ₱ 1,000 b. ₱ 5,000; ₱ 4,000 and ₱ 1,000 c. ₱ 4,000; ₱ 5,000 and ₱ 1,100 d. ₱ 5,000; ₱ 1,000 and ₱ 4,000

a. ₱ 4,000; ₱ 5,000 and ₱ 1,000 108,200 x .02705 = 4m 4m / .8 = 5m 5m x .2 = 1m

Document allowing proponent to undertake particular critical project in a critical area with various conditions? a. Environmental Permit on project b. Environmental Project Permit c. Environmental Certificate of Compliance d. Environmental Compliance Certificate

d. Environmental Compliance Certificate

Per PD No. 2146 ECA means? a. Environmental Centers Areas b. Environmental Cleared Areas c. Environmental Critical Areas d. Environmental Classified Areas

c. Environmental Critical Areas

The economic concepts of Utility and Subdivision drive this analysis? a. Economic b. Investment c. Financial d. Highest and Best Use

d. Highest and Best Use

Generally referred to as 3rd party to whom a certain amount of money is entrusted by the buyer and who is authorized to release payment to the seller upon fulfillment of the conditions agreed upon between the seller and the buyer? a. Middleman b. Escrow agent c. Adorney-in-fact d. Lending instituDon

b. Escrow agent

Ms. Angie Torres owner of a house and lot located in Cebu City lives in the USA, she wanted to sell her property and gave the power of attorney to her sister RE Broker Larrie to sell the property? a. Authority to leder b. General Power of Atorney c. Special Power of Atorney d. Power of Administraton and Supervision

c. Special Power of Atorney

If the deceased owner of land died in estate without any debt or obligation, the document to be executed to transfer title to the sole heir is? a. Deed of DonaDon b. Deed of Conveyance c. Affidavit of Adjudication d. Extrajudicial Settlement of Estate

c. Affidavit of Adjudication

The professional fee is paid to the ReBroker upon? a. Payment of the Reservation Fee b. Consummation of Sale c. Registration of the Client d. Perfection of the Contract

b. Consummation of Sale

The acquisition of title by a private party against the consent of the former owners, such as foreclosure sale or tax sale, is what mode of acquiring title? a. Private grant b. Reclamation c. Involuntary grant d. prescription

c. Involuntary grant

In real estate, what are the laws of price variation? a. Law of normality of prices, Law on the increase of demand and Law on falling of prices b. Law of normality of supply, Law on increase of prices and Law on falling of prices c. Law of normality of prices, Law on increase of prices and Law on falling of demand d. Law of normality of prices, Law on increase of prices and Law on falling of prices

d. Law of normality of prices, Law on increase of prices and Law on falling of prices

The following are list of contract that must be in writing, except? a. Deed of Assignment b. Employment Contracts c. Mortgage Contracts d. Contract of Lease

b. Employment Contracts

Which of the following estimated would result in a capitalization rate of 8%? a. Potential Gross Income ₱ 500,000; Value ₱ 6.50M b. Effective Gross Income ₱ 500,000; Value ₱ 6.50M c. Net Operating Income ₱ 500,000; Value ₱ 6.50M d. Gross Income ₱ 500,000; Value ₱ 6.50M

c. Net Operating Income ₱ 500,000; Value ₱ 6.50M

Refers to a declining balance of depreciation from year to year of which a relatively large deduction was made on the 1st year and gradually decreases from year to year? a. Future depreciation b. Physical deterioration c. Accelerated depreciation d. Economic Obsolescence

c. Accelerated depreciation

Economic influences include all of the following except? a. Property Value Levels b. Crime Levels c. Property Rent Levels d. Vacancy Rate

b. Crime Levels

Which of the following statements applies to a property with a nonconforming use? a. The existing nonconforming use in the highest and best use b. A nonconforming use is likely to arise from changes in zoning c. A conforming use property may be under-improved but cannot be over improve d. In the sales comparison approach, an appraiser does not have to make a separate adjustment for the nonconforming use

c. A conforming use property may be under-improved but cannot be over-improve

A listing wherein two or more REBrokers are authorized to negotiate the sale of a piece of land is called? a. Multiple Listing b. Multilateral Listing c. Non-exclusive Listing d. Semi-exclusive Listing

c. Non-exclusive Listing

When a licensed Real Estate broker provides professional service, it is for? a. A additional experience b. To add to his real estate broker’s credibility c. Expectation of a valuable consideration d. Simply helping out the owner to sell his property

c. Expectation of a valuable consideration

The following are powers of the State that restricts property rights, except? a. Eminent domain b. Taxation c. Police Power d. Escheat

d. Escheat

Income and other benefits available from real estate may be increased by adding capital improvements only up to the point of balance in the agents of production, beyond which the increase in value tends to be? a. More than the increase in costs b. More than the decrease in costs c. Less than the increase in costs d. Less than the decrease in costs

c. Less than the increase in costs

What should the REBroker indicate in his dry seal, letterhead, adverDsement, flyers, brochures and/or all forms of announcements/adverDsements? a. Name; Fax number and Email address b. Name; License Number; PRC I.D, Number, PTR c. Personal circumstances and PRC I.D. Number d. Name; Email address and Mobile Number

b. Name; License Number; PRC I.D, Number, PTR

The following are the scope of brokerage services, except? a. Authority to look for a property b. Procurement of insurance for properties secured by real estate c. Procurement of loans secured by real estate d. Engagement to look for a buyer

b. Procurement of insurance for properties secured by real estate

This is a concept that entails showing of the property and pointing out its physical qualities and other advantages and benefits to attract the interest of a prospective client to own the property? a. Demonstration b. Illustration c. Presentation d. Actualization

a. Demonstration Latest using Presentation

When is the adoption of IVS vis-a vis the PVS per Dept. of Finance Order No. 37-09? a. October 29, 2009 b. October 9, 2009 c. October 19, 2009 d. October 10, 2009

c. October 19, 2009

The law on the normality of prices refers to? a. When real estate demand or need is equal to available listing inventories b. When real estate demand or need is below to available listing inventories c. When real estate demand or need is above to available listing inventories d. When real estate demand or need is equal to available money

a. When real estate demand or need is equal to available listing inventories

A property that is rarely sold in the market, because of its uniqueness arising from its nature and design, its configuration, size, location or alternative is called? a. Personal property b. Subject property c. Comparable property d. Specialized property

d. Specialized property

The ability of the property to satisfy human needs is called? a. Scarcity b. Utility c. Conformity d. EffecDve demand

b. Utility

The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently, knowledgeably, and assuming the price is not affected by undue stimulus? a. Special Value b. Economic value c. Substitution Value d. Market Value

d. Market Value

Law on increase of prices refers to? a. When real estate supply is greater than available listing inventories b. When real estate demand is less than the available listing inventories c. When real estate demand is greater than available listing inventories d. When real estate demand is equal to the available listing inventories

c. When real estate demand is greater than available listing inventories

Larger units of organization categorize regions of the earth’s ecosystems mainly according to the structure and composition of vegetation? a. Cells b. Biomes c. Organisms d. Community

b. Biomes

Region of the earth (atmosphere, hydrosphere, lithosphere) where organisms exist? a. Biomass b. Continent c. Biosphere d. Oceans

c. Biosphere

The living components of ecosystem? a. Bionic component b. Abiotic component c. Biotic component d. Mini component

c. Biotic component

Which of the following is not a physical characteristic of real estate? a. Immobility b. Utility c. IndestrucDbility d. Uniqueness

b. Utility

The most important economic characteristics of real estate is often called as Situs? a. Area Preference b. Scarcity c. Permanence of improvements d. Fixity

a. Area Preference

The following factors create value for real property, except? a. Demand b. Utility c. Supply d. Transferability

d. Transferability. Demand Utility Scarcity Transferability

For a Pag-IBIG member to avail the maximum loan of ₱ 6.0M, his/her monthly contribution should be? a. ₱ 2,850 b. ₱ 2,900 c. ₱ 2,950 d. ₱ 3,000

c. ₱ 2,950 200k - Up to 500k 250 - Over 500k - 600k 350 - Over 70k - 800k 450 - Over 900k - 1m 700 - Over 1.4m - 1.5m 950 - Over 1.9m - 2m 1,450 - Over 2.9m - 3m 1,950 - Over 3.9m - 4m 2,450 -Over 4.9m - 5m 2,950 - Over 5.9m - 6m

The collateral value of Pag-IBIG house and lot package is determined by applying? a. Loan to value ratio of housing unit b. Fund salary of applicant c. Net disposable income of applicant d. Gross monthly income of applicant

a. Loan-to-value ratio of housing unit

The law providing for Comprehensive and Integrated Shelter and Urban Development Financing program? a. PD 957 b. BP 220 c. RA 7835 d. RA 6425

c. RA 7835

It is a modified system under UHLP whereby housing loans may be extended through other conduits like banks? a. Turn-key Loan b. Multi-window Lending Program c. Project Loan d. MulD-purpose Loan

b. Multi-window Lending Program

Refers to the process of making installment payments consisting of principal and interest that reduces the loan balance? a. Amortization b. Interest c. Down payment d. Term payment

a. Amortization

It is the compensation paid for the use of the capital? a. Interest b. Income c. Rental d. Earnest Money

a. Interest

Refers to the capacity to satisfy wants, production by labor and their exchangeability? a. Economic Utility b. Economic Life c. Economic Value d. Exchange Value

a. Economic Utility

Refers to an ecosystem that is in a body of water? a. Biosphere b. Terrestrial ecosystem c. Aquatic ecosystem d. Biomass

c. Aquatic ecosystem

In appraisal, the following are the characteristics or determinants of value? a. Utility, Scarcity or Supply and Demand, Transferability and Effective Demand or the Purchasing Value b. Utility, Transferability, and Effective Demand or the Purchasing Value c. Scarcity or the Supply and Demand, Transferability and Effective Demand or the Purchasing Value d. Transferability and Effective Demand or the Purchasing Value

a. Utility, Scarcity or Supply and Demand, Transferability and Effective Demand or the Purchasing Value Determinants of Valu = DUST

In appraisal of income-generating property and based on the principle of anticipaDon, the Appraiser uses this approach? a. Market Data Approach b. Income Approach c. Market Simulation Approach d. Survey Approach

b. Income Approach

The additional satisfaction of a consumer whenever he consumes one more unit of the same good? a. Average utility b. Marginal utility c. Law of diminishing return d. Demand

b. Marginal utility

When successive units of variable input works with a fixed input beyond a certain point, the output produced by each additional unit of variable decreases, it refers to? a. Law of demand and supply b. Law or perfection c. Law of diminishing return d. Law of prices

c. Law of diminishing return

Refers to the total value of all final goods and services produced within the territories of a Country in a year? a. National income b. Gross national c. Domestic product d. Gross domesDc product

d. Gross domestic product

The autotrophic components of the plankton community? a. Planktons b. Ashkelon c. Phytoplankton d. Skeleton

c. Phytoplankton

This law determines the prices of goods and services in a free market economy? a. Law of gravity b. Law of supply and demand c. Infinite law d. Unitary demand

b. Law of supply and demand

A 20% change in price creates a 60% change in quantity demand. This shows buyers are sensitive to price change? a. Elastic demand b. Perfectly in elastic demand c. Unitary demand d. Supply and Demand

a. Elastic demand

Refers to a market where only one seller or producer supplies unique goods and services? a. Pure Monopoly b. Monopolistic Competition c. Oligopoly d. Fair Competition

a. Pure Monopoly

A written authorization to develop or use certain areas of any parcel of land based on an approved land use plan or zoning ordinance or in the absence of such ordinance could be based on HLURB planning standards & guidelines? a. Locational clearance b. Situational clearance c. Zoning clearance d. Ordinance clearance

a. Locational clearance

The four factors of production are land, labor, capital and? a. Money b. Entrepreneur c. Stocks d. Price

b. Entrepreneur

The following are purposes of loan allowable under the UHLP, except? a. Purchase of two houses and lots b. Purchase of a lot and construction of a new house or dwelling unit c. Purchase a newly constructed dwelling unit d. Purchase of condominium unit

a. Purchase of two houses and lots Cannot approved two houses

A real estate mortgage that covers several properties is called? a. Closed mortgage b. ConvenDonal mortgage c. Blanket mortgage d. Equitable mortgage

c. Blanket mortgage

Law providing the preparation & implementation of the comprehensive land use plans of the local government units pursuant to RA 7160 & other pertinent laws? a. Executive Order No. 71 b. Executive Order No. 72 c. Executive Order No. 73 d. Executive Order No. 74

b. Executive Order No. 72

Under the Urban Land Reform Law (PD 1517) an area is considered urban when it has a population density of at least____ and where 50% of economically active residents are engaged in non-agricultural activities? a. 500 residents per square kilometer b. 1,000 residents per square kilometer c. 1,500 residents per square kilometer d. 2,000 residents per square kilometer

b. 1,000 residents per square kilometer Urban - 1,000 residents Urbanized - 500 residents

Rules that prescribe the guidelines of Sec. 20, RA 7160, authorizing cities/municipalities to reclassify land into non-agricultural uses? a. Executive Order No. 72 b. Memorandum Circular No. 54 c. Executive Order No. 71 d. Memorandum Circular No. 52

b. Memorandum Circular No. 54

Which principle of value best affirms that the maximum value of a property generally cannot exceed the cost of its replacement? a. Increasing and decreasing returns b. Supply and demand c. Substitution d. Balance

c. Substitution

110. The fact that the value of a property tends to equal the cost of an equally desirable substitute is an example of the principle of? a. Balance b. Substitution c. ContribuDon d. Diminishing returns

b. Substitution

The principle of substitution holds that a purchaser will pay no more for a property than? a. The maximum he can afford b. The price of a property with greater utility c. The cost of acquiring an equally desirable substitute d. The price of a previously owned property

c. The cost of acquiring an equally desirable substitute

Which type of study tests the ability of various proposed improvements to meet investment objectives? a. Market b. Feasibility c. Marketability d. Cost-benefit

b. Feasibility

Social, economic, governmental, physical and environmental inﬂuences aﬀect the value of the property it is generally called as? a. Forces b. Laws c. Factors d. Consequences

a. Forces

An authority given by developer to a RE Broker to look for a supplier of backﬁlling materials which the latter shall be paid with developed lots reefers to? a. Procurement Agency b. General brokerage c. Exchange agency d. Sales agency

c. Exchange agency

The rate of return earned by an investor which does not include allowance for capital recovery is? a. Recapture b. Cash Flow c. Discount Rate d. Interest Rate

a. Recapture

In both agency and real estate brokerage, the relationship of the owner-principal and that of the RE Broker/Agent is? a. Federal b. Fiduciary c. Fortuitous d. Cordial

b. Fiduciary

It is an application of economic techniques to real estate markets which describe, explain and predict patterns of prices, supply and demand? a. Economics b. Real Estate Economics c. Supply and Demand d. Demographics

b. Real Estate Economics

What is a prospect? a. a person who has the capacity but without the willingness b. a person who has the willingness but have no capacity c. a person who is in need and can aﬀord to buy d. a person not immediately available but willing to buy

c. a person who is in need and can aﬀord to buy

The study of current supply and demand conditions in a particular area for a speciﬁc type of property is? a. Real Estate Appraising b. Market Analysis c. Cash Flow Analysis d. Income Projection

b. Market Analysis

Which does not belong to zoning? a. Divides community into district & imposes diﬀerent land use control b. Specify allowed use of land & building and intensity density of each use c. Imposes curfew areas d. Specify numbers of buildings allowable per particular area’s

c. Imposes curfew areas

It is a proposal for the future land use based on sound planning principles and forms part of the oﬃcial document known as the Comprehensive Development Plan? a. Land Use Plan b. Zoning Map c. Graphical Plan d. Land Plan

a. Land Use Plan

Which type of Broker’s accreditation that clearly states the promotion and selling of developer’s projects in an exclusive arrangement? a. Exchange agency b. Exclusive agency c. Listing agency d. Purchase agency

b. Exclusive agency

Which does not belong among the types of zoning? a. Euclidian zoning b. Performance zoning c. Impact & land zoning d. Earth zoning

d. Earth zoning

In zoning, only a single detached property is allowed? a. Land b. Performance c. Impact d. Euclidian

c. Impact

It is a proposal which forms part of comprehensive development plan? a. CLUP b. Land classification plan c. Zoning d. Land use plan

d. Land use plan

. It is the translation of land use plan with penal provision? a. Land use plan b. Utilization plan c. Zoning ordinance d. Zoning

c. Zoning ordinance

When the loan is fully amortized by equal monthly payments, the amount applied to the principal? a. Interest remains constant b. Decrease while interest payment increases c. Increases while interest payment decreases d. Increase by a constant amount

c. Increases while interest payment decreases

Four elements of investments are? a. Capital, Control, Yield and Control b. Yield, Safety, Leverage and Control c. Expenditure, Capital, Yield and Control d. Yield, Expenditure, Safety and Capital

b. Yield, Safety, Leverage and Control

Mode of production for real estate development either in subdivision, memorial parks or condominiums. a. Spending b. Consumption c. Investing d. Buying

c. Investing

The revenue derived from the use of land, building and the factors thereto? a. Rental expense b. Economic rent c. Rental projected income d. Leased structure

b. Economic rent

Refers to return of the initial amount invested? a. Return on Capital b. Return of Capital c. Return on Net Expenses d. Return on Capital Net of Expenses

b. Return of Capital - refers to the return on the initial investment made by the investor

Refers to the proﬁt generated from the investment? a. Return on Capital b. Return of Capital c. Return on Net Expenses d. Return on Capital Net of Expenses

a. Return on Capital - refers to the profit or income earned on the amount invested

This type of inﬂation occurs when demand for goods and services exceeds the supply? a. Structural inﬂation b. Government inﬂation c. Demand pull inﬂation d. Monetary inﬂation

c. Demand pull inﬂation

In the computation of simple interest where: I=Prt, r means? a. Ratio b. Rate of Interest c. Remaining d. Capital Ratio

b. Rate of Interest

The RE Broker’s professional fee or commission for sale of a listing is determined by the? a. Discretion of the Seller-principal b. Fixed scale approved by HLURB c. Standard rate approved by PRBRES d. Agreement between Broker and Seller

d. Agreement between Broker and Seller

The following are the conditions for the entitlement of RE Broker’s professional fee or commission, except? a. Procurement of a ready, willing and be able buyer b. Authority from the principal c. The RE Broker should be licensed real estate appraiser d. RE Broker closed the sale at authorized terms, price and condition

c. The RE Broker should be licensed real estate appraiser

Refers to the ratio that expresses the relation between gross income and sales price of a property? a. Capitalization b. Gross Income Multiplier c. Recapture d. Effective Gross Income

b. Gross Income Multiplier

At 18% interest per annum, how much is the interest of ₱ 500,000 for 65 days? a. ₱ 15,000 b. ₱ 16,028 c. ₱ 16,250 d. ₱ 90,000

c. ₱ 16,250

The owner wants net proceeds of ₱ 1.750M exclusive of capital gains tax, documentary stamps tax and 5% fee? a. ₱ 1,968,750 b. ₱ 1,980,000 c. ₱ 2,000,000 d. ₱ 2,200,000

c. ₱ 2,000,000

The sale of land made by an agent with verbal authority is? a. Voidable b. Unenforceable c. Rescissible d. void

b. Unenforceable

Mr. Philip Jayson, an accredited RE Broker with PTB Development Corp. enjoyed a professional fee at 5%. He sold house and lot for ₱ 10.0M with 30% full down payment, which entitles the buyer a 10% discount on the actual amount paid. The buyer requested that his discount be applied to the down payment. The balance of the sale is payable in 5 years through an in-house ﬁnancing scheme at 18% interest rate. How much is the net down payment to be paid by the buyer? a. ₱ 2.688M b. ₱ 2.70M c. ₱ 2.352M d. ₱ 2.680M

b. ₱ 2.70M =10m x 30% = 300k / 90% =2.70m

Refers to one who permitted another to act for and in his behalf and subject to his direction and control? a. Agent b. Principal c. Buyer d. Lessor

b. Principal

A licensed person who binds himself to perform professional services or to do something in representation of another with the consent/authority of the latter? a. Real Estate b. Real Estate Broker c. Assessor d. Proponent

b. Real Estate Broker

The scope of brokerage are as follows, except? a. Authority to look for a property b. Procurement of loans secured by real estate c. Procurement of insurance for properties secured by real estate d. Engagement to look for a buyer

c. Procurement of insurance for properties secured by real estate

A RE Broker is entitled to the professional fee or commission upon? a. Perfection of the contract b. Presentation of the client c. Consummation of the sale d. Registration of the client

c. Consummation of the sale

The listing and selling Brokers agreed to split the professional fee equally. If the fee is 5% and the selling Broker received ₱ 250,000. What is the selling price of the property? a. ₱ 13.0M b. ₱ 15.0M c. ₱ 12.0M d. ₱ 10.0M

d. ₱ 10.0M

A stipulation in an authority to sell that entitles the RE Brokers to the professional fee even beyond the period of the authority if there is registration of the prospective buyer to the principal before the expiration date of the authority/ a. Open, non-exclusive listing b. Authority to overprice c. Hold-over clause d. First come ﬁrst serve rule

c. Hold-over clause

The rate of return earned by an investor which does not include allowance for capital recovery is? a. Discount rate b. Interest rate c. Recapture rate d. Investment rate

b. Interest rate

The use of borrowed funds increases the purchasing power is ideally to increase the proﬁtability of an investment is? a. Limited Liability b. Debt Coverage c. Leverage d. Interim Financing

c. Leverage

The seller realized a 30% gross proﬁt over his cost, if the property was sold at ₱ 2.95M, the cost is? a. ₱ 2,659,550 b. ₱ 2,650,000 c. ₱ 2,692,308 d. ₱ 2,650,550

c. ₱ 2,692,308 2.95m / 1.30

A provision that allows maximum of three (3) qualiﬁed members relatives within the 2nd degree of consanguinity. In combined income: married- spouse & unmarried, single- parents. In co-borrower; if married- parents, brother & sister, single- brother & sister? a. Grouping provision b. Sanguinity provision c. Tacking provision d. Uniﬁcation provision

c. Tacking provision

Capacity to pay shall be limited to an amount for which the monthly income shall not exceed of the member’s net disposable income (NDI)? a. 40% b. 35% c. 33.33% d. 45%

a. 40% NDI = 40% Gross Income = 35%

. A “loss in value in any cause” is? a. Effective age b. Functional Obsolescence c. Depreciation d. Economic Obsolescence

c. Depreciation

The selling price of a real estate is usually based on its? a. Speculative value b. Market value c. Exchange value d. Intrinsic value

d. Intrinsic value

The increase in value of real estate without any eﬀort or expenses of the owner is? a. Accretion b. Unearned Increment c. Accession d. Adhesion

b. Unearned Increment

Under the Pag-IBIG Housing Loan Program for middle income and overseas members, the maximum loanable amount that a member could avail is? a. ₱ 2.0M b. ₱ 2.2M c. ₱ 3.0M d. ₱ 3.8M

c. ₱ 3.0M

A ﬁnancing scheme under the Uniﬁed Home Lending Program to enable residents in depressed areas to acquire their lot by organizing themselves into a cooperative? a. Socialized housing program b. Pag-IBIG housing loan program c. Community mortgage program d. Open-end mortgage

c. Community mortgage program

Loan amount shall be based on the following, except? a. Actual need b. Membership contribution c. 40% of NDI; loan to collateral ratio d. Endorsement

d. Endorsement

Withholding tax rate of a socialized housing project registered with HLURB amounting to ₱ 600,000 is? a. 3% b. 1.5% c. 0% d. 2%

c. 0%

Brainscape's Knowledge GenomeTM

2016 Practice Test (261 pts) Flashcards

Brainscape's Knowledge Genome^TM