2016 Practice Test (261 pts) Flashcards
The value of real estate is determined in the market mainly by its?
a. Price
b. ProducDvity
c. Mortgage
d. Size
a. Price
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
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
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
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
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
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
The fundamental valuation principle underlying the sales comparison process is?
a. Contribution
b. Substitution
c. Conformity
d. Change
b. Substitution
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
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
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
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
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
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
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
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
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
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
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
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
A description of Philippines as a tropical climate country fails for a theme?
a. Place
b. Region
c. Location
d. Movement
a. Place
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
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
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