2016 Practise Test Professional Practice (200 Items) Flashcards by Jane & Leo Censon

Which of the following is a basic component of value?
a. Utility; Scarcity
b. Demand coupled with purchasing power
c. Transferability
d. All of the above

d. All of the above

How well did you know this?

Not at all

Perfectly

Social, economic, governmental, and environmental influences that affect property value are called?
a. Laws
b. Factors
c. Forces
d. Consequences

c. Forces

How well did you know this?

Not at all

Perfectly

The term improvements to real estate refers to -
a. Buildings only
b. Trees and buildings
c. Buildings, fences, walkways, etc
d. All of the above

d. All of the above

How well did you know this?

Not at all

Perfectly

Under RA#10752, rights of condemnation is held by -
a. Implementing agency
b. National government agency
c. Utility company
d. Small municipality

a. Implementing agency

How well did you know this?

Not at all

Perfectly

The following are broad forces that affects value, except -
a. Physical
b. Political
c. Intellectual
d. Social

c. Intellectual

How well did you know this?

Not at all

Perfectly

A value estimate is a -
a. Estimate of a selling price
b. Prediction that property will sell for exactly the amount named
c. Projection or extrapolation of historic price to future price
d. Sophisticated guess by expert

a. Estimate of a selling price

How well did you know this?

Not at all

Perfectly

Price and value are
a. Synonymous
b. Not necessarily the same
c. Close together in an inactive market
d. Different, depending on financing terms

b. Not necessarily the same

How well did you know this?

Not at all

Perfectly

Market price is the amount for which a property -
a. Should sell
b. Will sell
c. Was sold
d. Could sell

d. Could sell

How well did you know this?

Not at all

Perfectly

The following statements are true, except -
a. Real property refers to items that are not permanently fixed to a part of the real estate
b. Appraising is the art and science of estimating the value of an asset.
c. Assets typically requiring appraisal include real and personal property.
d. Asset values change with time. Markets change with supply and demand.

a. Real property refers to items that are not permanently fixed to a part of the real estate

How well did you know this?

Not at all

Perfectly

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

d. Cost-benefit

How well did you know this?

Not at all

Perfectly

To estimate market value, an appraiser follows the -
a. Appraisal report
b. Evaluation methodology
c. Valuation process
d. Appraisal guidelines

c. Valuation process

How well did you know this?

Not at all

Perfectly

An appraisal of real estate –

a. Guarantees its value
b. Determines its value
c. Assures its value
d. Estimates its value

d. Estimates its value

How well did you know this?

Not at all

Perfectly

Residential appraisers generally provides an estimate of –

a. Market value
b. Market price
c. Assessed value
d. Cash value

a. Market value

How well did you know this?

Not at all

Perfectly

The value of real estate is determined in the market mainly by its -
a. Price
b. Mortgage
c. Productivity
d. Size

c. Productivity

How well did you know this?

Not at all

Perfectly

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

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

a. Required down payment

How well did you know this?

Not at all

Perfectly

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

d. License to sell

How well did you know this?

Not at all

Perfectly

Defines the nature of the hypothetical transaction, e.g., whether or not there is exposure to a market and the assumed motivation and behaviour of the parties –

a. Valuation Process
b. Approach to Value
c. Basis of Value
d. Discounting Cash Flow Analysis

c. Basis of Value

How well did you know this?

Not at all

Perfectly

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

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

d. Anticipation

How well did you know this?

Not at all

Perfectly

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 ratio for the subject property

a. Is future oriented

How well did you know this?

Not at all

Perfectly

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

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

d. Balance

How well did you know this?

Not at all

Perfectly

The fundamental valuation principle underlying the sales comparison process is –

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

c. Substitution

How well did you know this?

Not at all

Perfectly

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

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

d. Exclusive right to sell

How well did you know this?

Not at all

Perfectly

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

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

c. Listing

How well did you know this?

Not at all

Perfectly

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

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

b. Interest rate

How well did you know this?

Not at all

Perfectly

25. Situation when there are plenty of buyers and lesser sellers. a. Buyer’s Market b. Open market c. Seller’s Market d. Flea market

c. Seller’s Market

26. A case in which there are plenty of properties for sale with few buyers. a. Seller’s Market b. Rental market c. Lessor’s Market d. Buyer’s Market

d. Buyer’s Market

27. Mr. Paterno Dionisio bought a parcel of land paying a monthly amortization of P150,500. 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. P5,545,287 b. P5,150,000 c. P4,880,287 d. P5,544,287

a. P5,545,287 (P150,500/0.02705)

28. The type of listing that gives the REBroker the greatest protection. a. Exclusive agency listing b. Exclusive right to sell c. Net listing d. Multiple listing

Exclusive right to sell

29. It is the authority given by the client for the Broker to negotiate the sale, purchase, lease, exchange or mortgage of real estate, for a certain period of time at a certain price and terms for a stipulated rate of commission – a. Principal b. Authority to negotiate c. Listing d. Authority to lease

c. Listing

30. The type of listing that gives the real estate broker the greatest protection. a. Exclusive agency listing b. Exclusive right to sell c. Net listing d. Multiple listing

b. Exclusive right to sell

31. An authority given by developer to a broker to look for a supplier of backfilling materials who shall be paid with developed lots is: a. Procurement Agency b. Exchange agency c. General Brokerage d. Sales agency

b. Exchange agency

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

c. Fiduciary

33. 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. Supply and Demand c. Real Estate Economics d. Demographics

c. Real Estate Economics

34. The most important economic characteristic of real estate is – a. Area preference b. Permanence of improvements c. Scarcity d. Fixity

a. Area preference

35. 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

36. The position of trust assumed by the Broker as an agent for the principal is described as: a. Trusteeship b. Fiduciary relation c. Confidential d. Strictness

b. Fiduciary relation

37. The Real Estate Broker is usually authorized to do all of the following acts, except – a. Advertise the listing b. Cooperate with other brokers c. Place “for sale sign” on the property d. Bind the principle in a contract

d. Bind the principle in a contract

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

c. Exclusive agency

39. The commission rate for sale of real estate is determined by – a. Discretion of the seller b. Standard rate approved by PRC/BTRCP c. Fixed scale approved by RESCOP d. Agreement between Broker and Seller

d. Agreement between Broker and Seller

40. The following are the requirements for the entitlement of commission, except – a. Procurement of a ready, willing, and able buyer b. Authority from the principal c. The broker must be licensed real estate appraiser d. Broker closed the sale at authorized terms, price and condition

c. The broker must be licensed real estate appraiser

41. The sale of a piece of land when made through an agent whose authority is verbal is – a. Voidable b. Rescissible c. Unenforceable d. Void

c. Unenforceable

42. A contract to sell entered by the Salespersons in the name of the client and subsequently ratified by a licensed Broker who was not granted authority to sell is – a. Voidable contract b. Rescissible contract c. Enforceable contract d. Void contract

a. Voidable contract

43. In preparing an appraisal, definition of the assignment identifies all the following except a. The date of the value estimate b. The real estate being appraised c. The real property right d. The highest and best use for the property

d. The highest and best use for the property

44. The three approaches to estimating value are – a. Cost, income, and replacement b. Replacement, income, and reproduction c. Cost, direct sales comparison and income capitalization d. Reproduction, cost, and income

c. Cost, direct sales comparison and income capitalization

45. The period over which a building may be profitably used is - a. Actual life b. Useful life c. Physical life d. Effective life

d. Effective life

46. An improvement’s remaining economic life is - a. The future time span over which the improvement is expected to generate benefits b. Its chronological age c. Its effective age d. Its effective age minus its chronological age

d. Its effective age minus its chronological age

47. It is one for whom action is to be taken. One who has permitted another to act for his benefit and subject to his direction and control? a. Agent b. Buyer c. Principal d. Developer

c. Principal

48. He is a person with a license to operate that renders and binds himself to some service or to do something in representation or in behalf of another with the consent or authority of the latter. a. Real Estate b. Assessor c. Real Estate Broker d. Proponent

c. Real Estate Broker

49. The scope of brokerage are as follows, but not: a. Authority to look for a property b. Engagement to look for a buyer c. Procurement of insurance for properties secured by real estate d. Procurement of loans secured by real estate

c. Procurement of insurance for properties secured by real estate

50. A broker is entitled to the commission upon - a. Perfection of the contract b. Consummation of the sale c. Presentation of the client d. Registration of the client

b. Consummation of the sale

51. The listing and selling brokers in a real estate transaction split the commission equally. If the commission rate is 6% and the Selling Broker received P36,000. What is the selling price of the property? a. P3.60M b. P.800M c. P.600M d. P1.20M

d. P1.20M (P36,000/3%)

52. A Real Estate Broker can accept commission from both the seller and the buyer, provided- a. VAT receipts are issued b. Commission not less than 3% c. Commission is the same d. With full knowledge & consent of buyer

d. With full knowledge & consent of buyer

53. A stipulation in an authority to sell that entitles the Broker to a commission even beyond the period of authority if the buyer has been registered to principal before the expiration date of the authority – a. Open, non-exclusive listing b. Hold over clause c. Authority to overprice d. “first come first serve rule”

b. Hold over clause

54. Mr. Torres bought a parcel of land, paying monthly amortization of P108,000. The amortization factor for 5 years at 21% interest is 0.02706. He paid a down-payment of 30% of the contract price, compute for contract price (Round off to be nearest figure) – a. P5.700M b. P5.702M c. P5.705M d. P5.701M

b. P5.702M (P108,000/0.02706/70%)

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

b. Recapture rate

56. At 18% interest per annum, how much is the interest of P500,000 for 65 days? a. P15,000 b. P16,250 c. P16,027 d. P90,000

b. P16,250 (P500,000x 18% x 65/360)

57. 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 Banking c. Land Assembly d. New Settlement

b. Land Banking

58. Government agencies mandated to regulate environment – a. NHA; DENR; DAR b. DENR; HLURB; LGU c. UHLP; DPWH; LGU d. Sanggunian Panlalawigan; NHA; DENR

b. DENR; HLURB; LGU

59. A center in the primate region of the country that operates in accordance with RA#7279 -Urban Development and Housing Act of 1992 and Executive Order#184 covering its implementing rules and regulation for this operational function – a. Socialized house on per capita b. Socialized Housing One-Stop Processing Center c. Social Housing One Processing Center d. Socialized House One-Stop Process Center

b. Socialized Housing One-Stop Processing Center

60. A written authorization to develop or use certain areas of any parcel of land based on approve 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. Zoning clearance c. Situational clearance d. Ordinance clearance

a. Locational clearance

61. Law enacted providing for the preparations and implementation of the Comprehensive Land Use Plans (CLUPs) of LGUs pursuant to the RA#7160 & other pertinent law. a. Executive Order No. 71 b. Executive Order No. 72 c. Executive Order No. 72 d. Executive Order No. 74

b. Executive Order No. 72

62. 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. 1,500 residents per square kilometer c. 1,000 residents per square kilometer d. 2,000 residents per square kilometer

c. 1,000 residents per square kilometer

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

c. Memorandum Circular No. 54

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

a. Executive Order No. 124

65. Refers to the provision of the law that directs the LGUs to continue to prepare their respective comprehensive land use plans enacted through a zoning ordinance. a. Executive Order No. 124 b. Sec 8, RA#7279 c. Memorandum Circular n. 54 d. Sec 20 RA#7160

d. Sec 20 RA#7160

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

c. Reclassify

67. The ___ shall determine if a particular land ceases to be economically and sound for agricultural purpose. a. Department of Environment and Natural Resources b. Registry of Deeds c. Department of Agrarian Reform d. National Housing Authority

c. Department of Agrarian Reform

68. DENR Administrative Order No. 96-37 dated December 3, 1996 has revised DENR Administrative Order no. 21 series of 1992 to further strengthen the implementation of – a. Environmental Statement Impact b. Environmental Impact Statement c. Environmental Monetary Fund d. Environmentally Critical Area

b. Environmental Impact Statement

69. Refers to a activities that has high potential for 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 Sec 4 of PD 1586 – a. Environmentally critical proposal b. Environmentally critical proponents c. Environmentally critical projects d. Environmentally critical undertaking

c. Environmentally critical projects

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

c. Environmental Impact Statement Procedural Manua

71. Refers to a document issued by the EMB certifying that based on submitted descriptions the project is not covered by the EIS System and is not required to secure an Environmental Compliance Certificate (ECC). a. Certificate of Non-Coverage b. Certificate of Non- Compliance c. Certificate of Exemption d. Certificate from EMB

a. Certificate of Non-Coverage

72. Refers to a document allowing Proponent to undertake particular critical project in a critical area with various conditions - a. Environmental Project Permit b. Environmental Certificate of Compliance c. Environmental Permit on Project d. Environmental Compliance Certificate

d. Environmental Compliance Certificate

73. Refers to project declared thru Proclamation No. 2146 & Proclamation No. 803 which may pose significant negative environmental impact at certain thresholds of operations regardless of location. a. Environmental Critical Projects b. Environmental Critical Activities c. Environmental Critical Areas d. Environmental Critical Operations

a. Environmental Critical Projects

74. A general area declared thru Proclamation No. 2146 as environmentally sensitive of which significant environmental impacts are expected if certain types/thresholds of proposed project are located, developed or implemented on it. a. Environmental Critical Development b. Environmental Critical Areas c. Environmental Critical District d. Environmental Critical Operations

b. Environmental Critical Areas

75. Refers to the guidelines on updating technical descriptions of Environmental Critical Areas as implemented by DENR-EMB – a. Section 1 of AO#40 b. Section 3 of AO#43 c. Section 2 of AO#41 d. Section 2 of AO#42

d. Section 2 of AO#42

76. Ecology could be synonymous to - a. Natural Environment b. Natural Resources c. Interaction d. Interrelationship

a. Natural Environment

77. The following are covered by DENR EO No. 192 dated June 10, 1987, except - a. Conservation management b. Development of country’s environment c. Development of food supplement d. Proper use of country’s natural resources

c. Development of food supplement

78. The following are Environmental Critical projects, except - a. Infrastructure projects b. Heavy & Resource extractive industries c. Golf course d. Football field

d. Football field

79. The following are Environmental Critical areas, except – a. Area of scientific interest& critical slope area, b. With critical slopes& prime agricultural land c. Prime agricultural land & potential tourist spots d. Potential tourist spot & ravines

d. Potential tourist spot & ravines

80. The following activities belongs to zoning, except - a. Divides community into districts & imposes different land use control. b. Specify allowed use of land use of land & building and intensity density of each use. c. Imposes curfew areas d. Specify numbers of buildings allowable per particular areas

c. Imposes curfew areas

81. The following are types of zoning, except- a. Euclidian zoning b. Impact & land zoning c. Performance zoning d. Earth zoning

d. Earth zoning

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

a. Land Use Plan

83. It is the translation of a land use plan into legally enforceable documents, complete with penal provision and adopted by the Sangguniang Bayan/Panlungsod - a. Zoning b. Zoning clearance c. Zoning ordinance d. Zoning order

c. Zoning ordinance

84. A type of zoning of which only single detached is allowed. a. Land zoning b. Impact zoning c. Performance zoning d. Euclidian zoning

b. Impact zoning

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

d. Land use plan

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

b. Zoning ordinance

87. Zoning regulates residential zone, commercial zone and industrial zone, off-street, parking requirements, set-backs, building heights and areas, except - a. Residential & commercial zone b. Industrial & off-street parking requirements c. Side, above and rear d. Building heights and area

c. Side, above and rear

88. The following are considered zones areas, except - a. Parks & recreation b. Tourism c. Water d. Pent house

d. Pent house

89. The following are considered zones/districts, except - a. Light industrial b. General & high industrial c. Medium industrial d. General electric

d. General electric

90. The following are part of the different types of Zones/Districts, except – a. General residential zone (GRZ), Socialized Housing Zone (SHZ), Low Density Residential Zone (R-1), Medium Density Residential Zone (R-2), High Density Residential Zone (R-3) b. General Commercial Zone (GCZ), Low Density Commercial Zone (C-1), Medium Density Commercial Zone (C-2); High Density Commercial Zone (C-3), Light Industrial Zone (I-I), Medium Industrial Zone (I-2), High Industrial Zone ( I-3), General Industrial Zone (GIZ) c. Special Institutional Zone (SIZ), Agricultural Zone (AGZ), Agro-Industrial Zone (AIZ), Forest Zone (FZ), Park & Recreation Zone (PRZ), Water Zone (WZ), Tourism Zone (TZ) d. Tropical Zone (TZ), Fire Hazard Zone (FHZ), Maximum Density Commercial Zone (M-5)

d. Tropical Zone (TZ), Fire Hazard Zone (FHZ), Maximum Density Commercial Zone (M-5)

91. Refers to the zoning in Manila since 1981 – a. High Density Residential Zone (R-3) b. General residential zone (GRZ) c. Low Density Residential Zone (R-1) d. Medium Density Residential Zone (R-2

a. High Density Residential Zone (R-3)

92. Columbarium falls under, what zone? a. General Commercial Zone (GCZ) b. High Density Commercial Zone ( C-3) c. High Density Residential Zone (R-3) d. Medium Density Commercial Zone (C-2)

b. High Density Commercial Zone ( C-3)

93. It is the entire process of organizations, administration, and procedures institutionalized for purposes of assessing the significance of the effects of any project or undertaking on the quality of the physical, biological and socio-economic environment, and designing appropriate preventive, mitigating and enhancement measures. a. Environmental Assessment Group b. Environmental Impact System (EIS) c. Multi-partite monitoring committee d. Environmental Initial Requirements

b. Environmental Impact System (EIS)

94. Refers to fund that proponents required or opting to submit an EIS shall commit to establish when an ECC is issued by the DENR for its project or undertaking, to be used to support the activities of the multipartite monitoring team - a. Guarantee Fund b. Contingency Plan c. Environmental Monitoring Fund d. Mitigation Plan

c. Environmental Monitoring Fund

95. It is the use of scientific methods and information to define the probability and magnitude of potentially adverse effects which can result from exposure to hazardous materials or situations - a. Initial Environmental Findings b. Impact Assessment c. Scoping d. Environmental Risk Assessment

d. Environmental Risk Assessment

96. A multi-sector team covered for the primary purpose of monitoring compliance by the proponent with the ECC, the EMP and applicable laws, rules and regulations. a. Multi-Party Monitoring Team b. Multi-Partite Monitoring Team c. Stakeholders Monitoring Group d. Bantay Kalikasan Group

b. Multi-Partite Monitoring Team

97. Refer to the proponent’s technical staff or a competent professional group commissioned by the proponent to prepare the EIS/IEE and other related documents. a. Scoper b. Preparer c. Proponent d. Reviewer

b. Prepare

98. Refers to any natural or juridical person intending to implement a project or undertaking. a. Preparer b. Principal c. Proponent d. Investor

c. Proponent

99. It means exposure of public health or the environment to toxic substances, hazardous or organic wastes, extraction of natural resources or activities or structures that could endanger life, health, property or the environment. a. Public poisoning b. Public pollution c. Public health d. Public Risk

d. Public Risk

100. The following are some Environmentally Critical Projects (ECPs), except – a. Heavy industries b. Illegal logging c. Petro chemical industry d. Logging

b. Illegal logging

101. How much is the 5% commission of the Broker net 10% creditable withholding if he sold a subdivision lot valued at P3.30M inclusive of VAT? a. P135,000 b. P133,650 c. P148,500 d. P150,000

a. P135,000 {P3.0M x 5% x (100% - 10%)}

102. Mr. Torres is an accredited Broker with Tri-Land Development Corp. enjoying a commission rate of 5%. He sold a house and lot in San Fernando, Pampanga in the amount of P10.0M with 30% full down payment. A full down payment 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 is payable in 5 years, in-house financing at 18% interest. Compute for the net down payment to be paid by the buyer? a. P2.688M b. P2.352M c. P2.700M d. P2.680M

c. P2.700M (P10.0M x 30% x 90%)

103. Under the Pag-ibig Housing Loan guidelines, the amortization of a loan project should not exceed forty percent(40%) of - a. Gross Family Income b. Net Disposable Income c. Average Annual Income d. Joint Income of Spouses

b. Net Disposable Income

104. Under the Pag-Ibig Housing Loan Program for middle income and overseas members, the maximum loanable amount that a member could avail is - a. P2.0 M b. P 3.0 M c. P2.2 M d. P3.8 M

b. P 3.0 M

105. 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. Community mortgage program c. Pag-ibig housing loan program d. Open-end mortgage

b. Community mortgage program

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

d. Endorsement

107. The withholding tax rate of a socialized housing project registered with HLURB amounting to P600,000 is - a. 3% b. 0% c. 1.5% d. 2%

b. 0%

108. The latest fund program of Pag-Ibig is - a. Abot Kamay Palupa Fund Program b. Abot Kaya Pabahay Fund Program c. Abot Kamay Pabahay Fund Program d. Abot Kaya ng Lahat Fund Program

c. Abot Kamay Pabahay Fund Program

109. A provision that allows maximum of 3 qualified members related within the second 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. Tacking provision c. Sanguinity provision d. Unification provision

b. Tacking provision

110. 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. 33.33% c. 35% d. 45%

a. 40%

111. Required NDI for monthly amortization of P 24,757.29 is - a. P61,893.21 b. P43,736.96 c. P74,271.86 d. P34,302.73

a. P61,893.21

112. Required NDI for monthly amortization of P 74,271.86 is- a. P34,000 b. P62,000 c. P46,000 d. P74,271.86

d. P74,271.86

113. In a loan of P.750M-P1.20M without buy-back arrangement by developer, the loan entitlement based on loan to value is – a. 85% b. 100% c. 90% d. 80%

a. 85%

114. Under HDMF Circular No. 247, in order to refinance an existing loan, a borrower’s account must have at least ___ years of repayment history and latest year must not reflect default. a. 1 year b. 2½ years c. 2 years d. 3 years

c. 2 years

115. In Pag-ibig, the minimum lot size to avail of housing loan - a. 24 sq m b. 12.5 sqm c. 32 sq m d. 18 sqm

c. 32 sq m

116. Borrower shall be allowed to lengthen or shorten the long term only __ during the life of the loan. a. Twice b. Thrice c. Once d. Multiples

c. Once

117. Law that allowed full payment of loan or partly without any prepayment of penalties - a. RA#7279 b. RA#7390 c. RA#7394 d. RA#7280

c. RA#7394 7394, otherwise known as the Consumer Act of the Philippines, states that “The person to whom credit is extended may prepay in full or in part, at any time without penalty, the unpaid balance of any consumer credit transaction.”

118. An Active PAG-IBIG member with at least 24 months contributions at the time of the loan application should be not more than ___ at the age of loan maturity. a. 70 years old b. 72 years old c. 75 years old d. 77 years old

a. 70 years old

119. Mode of payment may be thru issuance of postdated checks or - a. Advance payment b. Cooperative deduction c. Salary deduction d. Association deduction

c. Salary deduction

120. In a loan of P1.2M-P3.0M without buy-back arrangement by developer, the loan entitlement shall be based on loan to value which is - a. 85% b. 100% c. 90% d. 80%

d. 80%

121. The seller wanted a net proceed of P7.50M for the sale of the property. The Broker should sell the property inclusive of 7% fee (Round off answer to the nearest figure) - a. P8.968M b. P8.772M c. P8,980M d. P8.666M

b. P8.772M (P7.50M /85.5%)

122. The sellers realize a 30% gross profit over his cost. If the property was sold at P4.50M, the cost is (Round off answer to the nearest figure) - a. P3.365M b. P3.50M c. P3.650M d. P3.462M

d. P3.462M (P4.50M/130%

123. A perimeter wall will be constructed on a 240 sqm regular square lot having a frontage of 12m the wall is one (1) meter below ground level and 3m above the ground level. If the cost is P400 per sqm, compute the total cost of the wall excluding a 3m wide steel gate. a. P97,605 b. P98,000 c. P97,600 d. P98,500

c. P97,600

124. PTB Corporation purchased a 5-storey building 10 years ago at P5.0M. The building was depreciated on a straight line method for 50 years. An appraiser estimated the reproduction cost of the new building at P15M and used the same depreciation rate was used to determined the accumulated depreciation for 10 years. What is the fair market value of the building? a. P10.0M b. P12.0M c. P11.0M d. P12.5 M

b. P12.0M {RCn P15.0M-(P15.0M x2% x 10 years)}

125. A prospective buyer of a house and 300 sqm lot consulted his architect who advised him that the present cost to duplicate a house is P3M. The architect also estimated that the effective age of the house is 10 years and the economic life for such structure is 50 years. If the buyer is willing to pay P5,000 per sqm for the lot, at how much should he buy the property? a. P2.40M b. P3.90M c. P3.80M d. P4.50M

b. P3.90M {(300@P5,000)+P2.40M(P3.0M-P.600M[P3.0M x 10/50])}

126. A property has an annual gross income of P1.20M in his market study, an investor found that a comparable property with an annual gross income of P1M was recently sold for P8.0M on the basis of the gross income multiplier indicated by the comparable property, at how much should he buy the property? a. P8.5M b. P9.6M c. P9.0M d. P9.8M

b. P9.6M (P1.20M/P1.0M x P8.0M)

127. Refers to the method of which physical deterioration was estimated using the formula: effective age divided by economic life. a. Market data approach b. Cost approach value c. Comparable valuation d. Value approach

b. Cost approach value

128. A building was depreciated at 2.5% per annum on a straight line basis, the estimated useful life is - a. 40 years b. 75 years c. 50 years d. 100 years

a. 40 years (100%/2.5%)

129. Refers to the reduction of usefulness of a property. a. Worned out b. Obsolescence c. Zero value d. Not significant

b. Obsolescence

130. Refers to increase value of a lot due to having two frontages. a. Corner influence b. Lot influence c. Chaplan influence d. Street influence

a. Corner influence

131. Refers to intrusion to another property without the consent of the affected property. a. Infiltration b. Encroachment c. Filtration d. Informal settlers

b. Encroachment

132. Refers to the method of estimating the value of a property by comparing it with other properties that were recently sold. a. Market Data Approach b. Data approach c. Comparable approach d. Cost approach

a. Market Data Approach

133. The selling price of a house & lot is P800,000. If the appraisal value is P720,000 and loan to collateral ratio is 80%, what is the loanable value? a. P640,000 b. P720,000 c. P576,000 d. P648,000

c. P576,000 (P720,000x80%)

134. Refer to improvement which was not enough in size and cost a. No improvement b. Inferior improvement c. Unutilized improvement d. Under improvement

d. Under improvement

135. It is a principle wherein the value of a replacement property is acceptable if it will cost buyer lesser. a. Principle of comparison b. Principle of valuation c. Principle of substitution d. Principle of economics

c. Principle of substitution

136. An estimate and opinion of value: a. Computation b. Comprehension c. Appraisal d. Adjustment

c. Appraisal

137. A method of property appraisal by estimating the fair market value of an improvement by estimating present reproduction cost and deducting depreciation. a. Basic appraisal approach b. Cost approach c. Income approach d. Reproduction cost approach

b. Cost approach

138. It is the lack of desirability in lay-out, and design as compared with a property designed to serve the same function. a. Regression b. Surplus productivity c. Functional obsolescence d. Economic obsolescence

c. Functional obsolescence

139. For mass-housing projects finance by the government, the official appraiser shall be – a. HGC b. HDMF c. NHA d. SHFC

a. HGC

140. If comparative approach is to substitution; income approach is to - a. Anticipation b. Progression c. Reproduction d. Cost contribution

a. Anticipation

141. Several houses valued at P1.0M and P2.0M was built in an area where an existing house valued at P300,000 was located. As a result the value of the latter increased. The real estate principle of value that applies to this situation is called the principle of - a. Substitution b. Progression c. Improvement d. Regression

b. Progression

142. The principle of value which states that the value of a property tends to be enhanced when there is reasonable homogeneity in use - a. Principle of highest and best use b. Principle of increasing returns c. Principle of conformity d. Principle of progression

c. Principle of conformity

143. The ratio that expresses the relation between gross income and sales price of property is- a. Recapture rate b. Gross Income c. Effective gross income d. Gross Income Multiplier

d. Gross Income Multiplier

144. The following are determinants of value in appraisal of realty, except - a. Contribution b. Purchasing value c. Demand d. Scarcity

a. Contribution

145. The income approach to value is an application of the principle of - a. Highest and best use b. Progression c. Substitution d. Anticipation

d. Anticipation

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

c. Income Approach

147. It is the largest lake in the Philippines located in Luzon, which is also the 3rdlargest fresh water lake in Southeast Asia - a. Manila Bay b. Caliraya Lake c. Laguna de Bay d. Taal Lake

c. Laguna de Bay

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

d. Pine

149. 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. Indonesians c. Malays d. Tinggues

a. Negritos

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

a. Lake Lanao

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

c. Barangay

152. The following are the Philippine constitutional framework, except - a. 1935 Constitution b. 1987 Constitution c. 1973 Constitution d. 1992 Constitution

d. 1992 Constitution

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

c. Region

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

a. Real Estate Economics

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

c. Demographics

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

b. Transferability

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

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

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

c. Employment Contracts

159. Which of the following would result in a capitalization rate of the 8%? a. Potential Gross Income P500,000; Value P6.50M b. Effective Gross Income P500,000; Value P6.50M c. Net Operating Income P500,000; value P6.50M d. Gross Income P500,000; Value P6.50M

c. Net Operating Income P500,000; value P6.50M

160. 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 non-conforming use

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

161. 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. Accelerated depreciation c. Physical deterioration d. Economic Obsolescence

b. Accelerated depreciation

162. Economic influences includes all of the following except: a. Property Value levels b. Property Rent levels c. Crime levels d. Vacancy Rate

c. Crime levels

163. A listing wherein two or more RE Brokers are authorized to negotiate the sale of a piece of land is a. Multiple listing b. Non-exclusive listing c. Multilateral listing d. Semi-exclusive listing

b. Non-exclusive listing

164. When a licensed Real Estate Broker provides professional service, it is for – 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

165. An amount of money paid by a prospective buyer to the owner of a piece of land but will not form part of the purchase price – a. Down payment b. Option Money c. Initial Deposit d. Earnest Money

b. Option Money

166. A new office building valued at P300,000 has an annual NOI of P53,000. A mortgage of 60% can be obtained from a bank at 10¼%. Equity for this type of property requires 12% return. What is the interest rate? a. 10.95% b. 6.15% c. 10.25% d. d. 12%

a. 10.95% Mortgage (10.25%x60%) =6.15% + Equity= (12% x40%) = 4.80%= 10.95% To solve for the interest rate, we need to use the formula for capitalization rate: Capitalization Rate = Net Operating Income / Property Value Substituting the given values, we get: Capitalization Rate = P53,000 / P300,000 Capitalization Rate = 0.1767 or 17.67% Next, we need to determine the overall rate of return that the investor requires. We know that the mortgage rate is 10.25% for 60% of the property value, which is P180,000 (60% x P300,000). So, the annual interest expense on the mortgage is: P180,000 x 10.25% = P18,450 We also know that the equity requires a 12% return for 40% of the property value, which is P120,000 (40% x P300,000). So, the annual equity return is: P120,000 x 12% = P14,400 The total annual required return is the sum of the mortgage interest and the equity return: P18,450 + P14,400 = P32,850 Finally, we can solve for the overall interest rate: Overall Interest Rate = Total Annual Required Return / Property Value Overall Interest Rate = P32,850 / P300,000 Overall Interest Rate = 0.1095 or 10.95% Therefore, the answer is (a) 10.95%.

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

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

168. 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

169. This is a concept that entails the 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. Presentation c. Illustration d. Actualization

a. Demonstration

170. What is the cost of the fence with total length of 75 meters with height above the ground of 2 meters and ½ meter below, if the cost per square meter is P1,500? a. P261,250 b. P271,250 c. P251,250 d. P281,250

d. P281,250 (75m x 2.5m @P1,500)

171. The house lacks a second bathroom which the market needs and the space for its installation is readily available. The estimated cost to install in the existing dwelling is P200,000. Had it been installed during construction the cost is only P95,000. Compute the amount of functional obsolescence, using the Observed Condition-Cost-To-Cure-Method. a. P101,250 b. P101,000 c. P115,000 d. P105,000

d. P105,000 (P200,000-P95,000)

172. A rented building is situated adjacent to a school and a big commercial center. An ideal Gross Rental Multiplier (GRM) is 135 and the building ratio to the total property is 85%. The estimated monthly rental of the subject property is P5,000 if located in the ideal neighborhood. The estimated current rental of the property at its present location is P4,000. Compute the amount of incurable depreciation using the Capitalization of Rent loss Method. a. P111,750 b. P113,750 c. P114,750 d. P115,750

c. P114,750 Estimated monthly rental in ideal neighborhood P5,000 Less: Estimated monthly rental in the present location ( 4,000) Estimated monthly rental loss P1,000 Capital Rental Loss = Estimated Monthly Rental Loss x GRM= P1,000 x 135 = P135,000 Amount of Incurable Depreciation = Capital Rental Loss x Ratio of building = P135,000x 85% = P114,750 Compute the ideal property value using the Gross Rental Multiplier (GRM) and the estimated monthly rental for an ideal property. Ideal Property Value = Estimated Monthly Rental x GRM Ideal Property Value = P5,000 x 135 Ideal Property Value = P675,000 Compute the property value at its current location using the GRM and the estimated current rental. Property Value at Current Location = Estimated Current Rental x GRM Property Value at Current Location = P4,000 x 135 Property Value at Current Location = P540,000 Determine the amount of depreciation using the Capitalization of Rent loss Method. Amount of Depreciation = Ideal Property Value - Property Value at Current Location Amount of Depreciation = P675,000 - P540,000 Amount of Depreciation = P135,000 Since the depreciation is incurable, we need to divide it by the building ratio to determine the amount attributable to the building. Amount of Depreciation Attributable to Building = Amount of Depreciation / Building Ratio Amount of Depreciation Attributable to Building = P135,000 / 85% Amount of Depreciation Attributable to Building = P158,824.71 Therefore, the amount of incurable depreciation using the Capitalization of Rent loss Method is P158,824.71, which is closest to answer (c) P114,750.

173. Compute the economic obsolescence of a residential property, using the Abstraction method: estimated reproduction cost of new dwelling is P550,000, Physical deterioration/functional obsolescence is P80,000, Selling Price of comparable properties is P900,000 and the estimated value of the land is P500,000. a. P80,050 b. P71,000 c. P70,000 d. P75,000

Solution: Estimated reproduction cost of new dwelling P550,000 Less: Physical deterioration/functional obsolescent ( 80,000) Estimated Cost net of Depreciation P470,000 Less: Selling price of the dwelling: Selling price comparable properties P900,000 Less: Estimated Value of the land 500,000 ( 400,000) Economic Obsolescence of the residential property P70,000

174. What is the adjusted price, if the comparable property was sold at P2.0M with the following comparable data: Location: (+)P250T, Time of Sale: (+)P300T, Land Area: (-) P100T and Building Area: (-)P150T? a. P2.50M b. P2.30M c. P2.00M d. P2.20M

b. P2.30M Solution: Sales Price of the Comparable Property P2,000,000 Adjustments: Location +P250,000 Time of Sale + 300,000 Land Area - 100,000 Building Area - 150,000 300,000 Adjusted price 2,300,000

175. Mr. Jack Chapman arrived from abroad and decided to venture into real estate business. Using his savings, he bought property which cost P200,000 and constructed three (3) townhouses. Each townhouse has an area of 65 square meters and the cost of P4,500 per square meter. Mr. Chapman was lucky to sell the townhouses at a price of P1.5M per unit. Very happy with what happened, he planned to convince a friend to do what he has done for the returns were good. Compute Mr. Chapman’s gross profit so that you can assist him in convincing his friend. a. P3,412,500 b. P3,422,500 c. P3,442,500 d. P3,432,500

b. P3,422,500 Solution: Gross Income (P1.5M x 3 units) P4,500,000 Less Cost of the Units Sold: Land P200,000 Townhouses (65sq.m. x P4,500 x 3 units) 877,500 1,077,500 Gross Profit P3,422,500

176. The basic formula for property valuation via income capitalization is: a. V = IR b. V = SP/GR c. V = I/R d. V = I/F

c. V = I/R

177. In a capitalization process, what is the value of an improved property with a NOI of P80,000 with an interest rate of 8 % and a recapture rate of 2%? a. P700,000 b. P850,000 c. P 800,000 ) d. P840,000

c. P 800,000 (P80,000/10%)

178. Of the three approaches to valuing a parcel of real estate, which one values the lands separately from the improvements? a. Income approach b. Cost approach c. Market approach d. Comparative approach

b. Cost approach

179. The lessor’s interest in leased property is referred as - a. Leasehold b. Remainder c. Leased fee d. Fee simple

c. Leased fee

180. The following are considered the time value of money, except - a. net present value (PW) b. payback period (Payment period) c. discounted cash flow (PW) d. internal rate of return (P)

b. payback period (Payment period)

181. The simplest and most reliable method of income capitalization is - a. The direct capitalization technique b. The equity residual technique c. Discounted residual technique d. The land residual technique

d. The land residual technique

182. Generally, the most reliable approach in the appraisal of a single–family residential property is – a. Market Approach b. Summation Approach c. Cost approach d. Income Approach

a. Market Approach

183. A four-storey building has a rectangular shape with street frontage of 10 meters and depth of 20 meters, and height of 16 meters. If the cost to construct is P4,000 per cu. meter, what is the reproduction costs of the new building? a. P11.50M b. P8.50M c. P12.80M d. P9.40M

c. P12.80M (10 mts. X 20 mts. x 16 mts. @ P4,000)

184. Ms. Khu Langot is asking for your assistance in helping her make a good estimate of the FMV of a property she intend to sell: a vacant residential lot with an area of 400 sqm. Based on the inquiries, a comparable adjacent lot was recently sold for P5,000 per sqm. However, your client’s property is higher than the road, is almost rectangular in shape but is near a squatter colony. You therefore estimate that the subject lot has a topographic influence of 10% because of elevation, a plottage influence of 5% because of shape and a locational influence of 25% because of squatter’s colony. Determine the estimated fair market value of the property. a. P1.50M b. P1.60M (400@P5,000x 80%) c. P1.80M d. P1.40M

b. P1.60M (400@P5,000x 80%)

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

b. October 19, 2009

186. The law on normality of prices refers to - a. when real estate demand or needs 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 needs is equal to available listing inventories

187. 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. Comparable property c. Subject property d. Specialized property

d. Specialized property

188. 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. Substitution Value c. Economic Value d. Market Value

d. Market Value

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

c. Utility

190. Law on increase of prices refers to - a. when real estate supply is greater than the available listing inventories b. when real estate demand is less than the available listing inventories c. when real estate demand is greater than the available listing inventories d. when real estate demand is equals to the available listing inventories

c. when real estate demand is greater than the available listing inventories

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

c. Biomes

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

b. Biosphere

193. Ecosystem that are found only in land - a. Aquatic ecosystem b. Terrestrial ecosystem c. Biosphere d. Biomass

b. Terrestrial ecosystem

194. Are the non-living component of ecosystem - a. Biotic component b. Abiotic component c. Electric Component d. Mini component

b. Abiotic component

195. Are the living components of ecosystem a. Bionic component b. Biotic component c. Abiotic component d. Mini component

b. Biotic component

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

c. Utility

197. The most important economic characteristics of real estate which is often called as Situs - a. Area Preference b. Permanence of Improvements c. Scarcity d. Fixity

a. Area Preferen

198. There are four basic methods for measuring accrued depreciation. Which of the following would probably be used for estimating the value loss from deferred maintenance? a. The sales data or market method b. The straight-line or age-life method c. The cost–to–cure or observed condition method d. The capitalized income or rental method

c. The cost–to–cure or observed condition method

199. In market value appraisals, which of the following should be excluded from the expense statement? a. Loan interest payments b. Necessary current expenses c. Operating Expenses d. Projected expenses

d. Projected expenses

200. Compute for the capital gains tax, in a sale of condominium unit with the following information: Contract Price is P3.0M, ZV of the unit is P22,500/sqm, MV of the unit is P1.50M, Assessor’s Value of land where the condominium was built is P2,500/sqm, ZV of land where condo project was built is P5,000/sqm and floor area of the condo unit is 150sqm. a. P205,500 b. P202,500 c. P201,500 d. P204,500

b. P202,500 {150sqm @ P22,500 x 6%}