2016 - SET E - Feb. 28, 2016 Flashcards by Jane & Leo Censon

A real estate marketing company before it sells the projects of a developer must ensure that its salespersons are –

a. Duly accredited with DTI
b. Duly registered with PRC
c. Duly accredited with PRC
d. Duly accredited with HLURB

c. Duly accredited with PRC

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In an Authority To Sell given to a broker for the sale of a vacant lot, the following important data are necessary, except -

a. Lot area in sqm
b. TCT No.
c. Directional orientation of the lot
d. Lot No.

c. Directional orientation of the lot

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A professional real estate broker title may only be applied to the following:

a. ABC Realty Development Corporation
a. XYZ Realty Marketing Company
b. Ms. Mercy Reyes
c. An Attorney-In-Fact

b. Ms. Mercy Reyes

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In land acquisition, this mode shall be resorted to only when other modes of acquisition have been exhausted:

a. Land swapping
b. Negotiated purchase
c. Escheat
d. Expropriation

d. Expropriation

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Real estate developers of subdivision projects shall be required to develop an equivalent area for socialized housing in the total subdivision area or project at least –

a. 10%
b. 20%
c. 25%
d. 30%

b. 20%

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This local city or municipal legislation logically arranges, prescribes, defines and apportions a given political subdivision into specific land uses –

a. Zoning Ordinance
b. Urban Development Program
c. Locational Clearance
d. Comprehensive Land Use Plan

a. Zoning Ordinance

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The ratio between the gross floor area of a building and the area of the land on which it stands –

a. Height To Floor Ratio
b. Height Ratio Coverage
c. Floor Area Ratio
d. Lot and Floor Area Ratio

c. Floor Area Ratio

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Refers to the open space left between the building and the lot lines –

a. Property line
b. Setback
c. Easement
d. Perimeter space

b. Setback

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An I-2 zoning classification would refer to –

a. Medium Institutional Zone
b. Light Industrial Zone
c. Heavy Industrial Zone
d. Medium Industrial Zone

d. Medium Industrial Zone

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A 10-door apartment was sold for P14,400,000 which recorded an annual gross income of P1,200,000. What is the gross income multiplier?

a. 10
b. 12
c. 15
d. 18

b. 12
Sol.
SP = P14,400,000 / P1,200,000
= 12 (Gross Income Multiplier)

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An owner wants to sell his vacant lot and engaged an appraiser who came up with the following information: corner influence +10, topography -5, shape +15 of the next lot which was earlier sold at P10,000 per sqm. What is the estimated value of his lot per sqm.?

a. P 10,000
b. P 11,000
c. P 12,000
d. P 13,000

c. P 12,000
Sol.
Corner influence = +10%
Topography = -5%
Shape = +15%
Total 20%
Estimated Value of Lot per Sqm:
Additional Amount base on % given by appraise - P10,000 x 20% = 2,000
Selling Price = 10,000
Estimated Value of Lot /Sqm = 12,000

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The RESA prescribes that for a private real estate appraiser or broker to engage in professional practice, he must secure a bond in the amount of:

a. P 5,000
b. P10,000
c. P15,000
d. P20,000

d. P20,000

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Mr. Lopez owns a 240 sqm. rectangular lot with a 12-meter frontage. He wanted to enclose it with a fence made of hollow blocks, 1.7 meters high above the ground with 0.3 meter below the ground. The fence costs P250.00 per sqm. How much will the fencing cost if a 4-meter wide steel gate costing P7,500.00 is installed?

a. P 26,500
b. P 32,850
c. P 37,500
d. P 41,200

c. P 37,500
Sol.
= Rectangular Lot 240sqm to meter (240sqm/12meter= 20 meter)
= Frontage 12 meter
= 20+20+12+12 = 64 (total meter)
= 64 Meter - 4-meter wide gate = 60 meter
= 60 meter x (1.7meter+.03 = 2meter) = 120 meters
= 120 meters x P250 = P30,000
= P30,000 + 7,500 = 37,500

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Ms. Corona bought a 200 sqm. subdivision lot at P3,000/sqm. He paid 25% downpayment, the balance payable in 120 equal installments at 21% interest per annum. He has paid 84 monthly amortizations totaling P737,612.60 inclusive of penalty interest of P32,000. What would be her cash surrender value under the Maceda Law?

a. P 615,500.50
b. P 555,750.00
c. P 513,367.32
d. P 496,200.75

c. P 513,367.32
Sol.
Cost of Lot (200sqm x P3,000/sqm) = P600,000.00

Downpayment @ 25% = 150,000.00
Amortization Payments = P737,612.60
Total Payment = 887,612.60
Less: Penalty (32,000.00)
Net Payment = 855,612.60
*84 mos payment = 7 yrs (50%+10%)= 60%
CSV = 513,367.32

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In Philippine laws, the equivalent of real estate is –

a. Chattel
b. Realty
c. Personal property
d. Immovable property

d. Immovable property

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The legal right of the state to acquire property of a decedent who died intestate and without heirs is –

a. Devise
b. Eminent Domain
c. Escheat
d. Adjudication

c. Escheat

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The most important document to be checked before buying a subdivision lot is –

a. Development Permit
b. Construction Bond
c. License To Sell
d. Subdivision Plan

c. License To Sell

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A sign giving notice of a property for sale or lease should not be placed on a property by more than one broker and only if —

a. The sign is of the same size as the other signs
b. The sign is placed at least 2 meters away from the other signs
c. Authorized by the owner
d. It does not exceed 3 signs on the property

c. Authorized by the owner

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The following are public dominion, except –

a. Navigable river converted to fishpond
b. Canals
c. Subdivision roads
d. Natural resources

c. Subdivision roads

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The following are the purposes of real estate registration, except –

a. To make it public record as to who is the owner of a particular land
b. To make them bind on the land itself
c. To give preferential rights to registered exclusive seller
d. To make instruments evidencing the transaction valid as against 3rd parties

c. To give preferential rights to registered exclusive seller

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It is the angle less than 90° measured from N. or S. (meridian) and referred to in plotting a lot as –

a. Degrees
b. Bearing
c. Tie line
d. Longitude

b. Bearing

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In plotting the technical description of a lot, one degree is considered equivalent to –.

a. 60 seconds
b. 60 minutes
c. 100 seconds
d. 180 degrees

b. 60 minutes

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Is applied to infrastructure by capitalizing on natural features for storm water management, erosion control and roadway design –

a. Resource efficiency
b. Environmental responsiveness
c. Community & cultural sensitivity
d. Policy oriented

b. Environmental responsiveness

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Ecology is used more loosely in common parlance as a synonym for –

a. Ecological balance
b. Green technology
c. Natural environment
d. Ecosystem

c. Natural environment

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25. A bank gives this document of assurance to the seller that he/she will be paid by the bank for the buyer’s approved loan under certain terms and conditions: a. Letter of credit b. Letter of assurance c. Letter of guarantee d. Notice of loan approval

c. Letter of guarantee

26. In a real estate mortgage contract, the person or entity which lends money to the borrower for a housing loan is called the – a. Lender b. Borrower c. Mortgagor d. Mortgagee

d. Mortgagee

27. A 20-has. land was sold at P1,125.00/sqm. The owner agreed to pay a commission based on the following rates: 5% for the first P4.0M, 3.5% over P4.0M and 1.5% in excess of P10.0M. After deducting the 10% tax from the gross commission, how much did the listing and selling broker received if they have agreed to have a 50:50 sharing? a. P 2,050,200.00 b. P 1,867,550.00 c. P 1,635,750.00 d. P 1,422,388.00

c. P 1,635,750.00 Sol. Land SP (20-has/20ksqm) 200,000 x P1,125/sqm) = P225,000,000.00 Comm: - 5% x P4m = P200,000 - 3.5% x (P10m-P4m) P6m = P210,000 - 1.5% x P215M = P3,225,000 - Total Comm = P3,635,000 - Less: 10% Tax = (363,500) - Net = P3,271,500 - 50% (50:50) = P1,635,750

28. Mr. Juan, a licensed broker obtained a net listing of P6,500,000.00. He sold the property at a price which is inclusive of his 5% professional fee, capital gains tax and documentary stamp tax. The deed of sale provides that the buyer will pay for the transfer and registration fees. At how much was it sold? a. P 7,428,571.43 b. P 6,937.550.00 c. P 7,244,228.70 d. P 7,665,440.20

5a. P 7,428,571.43 Sol. -SP (x 87.5%) = P6,500,000 (Given) -Cost: Prof Fee. 5% CGT 6% Docs Stamp 1.5% Total 12.5% Less: 100% Net 87.5% -Net SP (/ 87.5%) =P7,428,572.43 (Answer)

29. A corporation bought 50 hectares of land for P700.00.sqm. If high end development costs P1,000.00/sqm. based on saleable area which is 60% of the gross area, compute the following: i. Total land acquisition cost ii. Total development cost iii. Total unit cost/sqm of the saleable lots iv. If the projected gross mark up is 100% of the total unit cost/sqm. of saleable lots, what will be the selling price / sqm. a. P350,000,000 / P300,000,000 / P2,166.67 / P4,333.34 b. P375,000,000 / P325,000,000 / P2,887.70 / P5,775.40 c. P420,000,000 / P370,000,000 / P3,110.00 / P6,220.00 d. P366,000,000 / P320,000,000 / P2,554.20 / P5,108.00

a. P350,000,000 / P300,000,000 / P2,166.67 / P4,333.34 Sol. Total Land Acquisition Cost - 50 has (500,000sqm) x P700/sqm = P350,000,000 Total Development Cost - 50has x60% = 30has (300,000sqm) x P1,000/sqm = P300,000,000 Unit Cost/Sqm - 700 / 60% = 1,166.67 +1,000 = P2,166.67 Marck up is 100% - P2,166,67 x 2 = P4,333,34

30. Jenny passed the real estate brokers examination and obtained her license. She is now required to pay professional tax to – a. Professional Regulation Commission b. Housing & Land Use Regulatory Board c. Bureau of Internal Revenue d. The local City or Municipal Treasurer’s Office

d. The local City or Municipal Treasurer’s Office

31. It is that step in real estate brokerage when through the mediation of the broker, the minds of the parties meet and the buyer’s offer of price, terms and other conditions become acceptable to the seller. a. Agreement b. Conformity c. Negotiation d. Acceptance of offer

c. Negotiation

32. In case seller requests for time to vacate the property, the balance or portion of the purchase price may be put in escrow or another option would be – a. Cancellation of the sale b. Eject the seller for failure to vacate premises c. Reduce the balance of the purchase price d. Retention of portion of purchase price until seller vacates

d. Retention of portion of purchase price until seller vacates

33. The buyer backed out of the sale after paying the earnest money to the seller. Generally, the earnest money will be – a. Partially refunded to the buyer b. Totally returned to the buyer c. Forfeited d. Equally shared between the seller and the buyer

c. Forfeited

34. A real estate broker is expected to have a working knowledge of the following, except: a. Basic real estate economics b. Real estate market c. Financing practices in real estate d. Real estate assessment

d. Real estate assessment

35. What is the net professional fee of a broker who sold a house for P7,500,000.00 if 10% of the 5% professional fee is given to a referral person as referral fee? a. P 720,000 b. P 600,000 c. P 675,000 d. P 550,000

c. P 675,000 Sol. -SP = P7,500,000 Cost: Prof Fee - SP x PF (5%) = P375,000 - 10% of the 5% Fee = 37,500 - Net Fee = 337,500

36. A real estate broker may engage the services of salespersons in his brokerage business provided that the number does not exceed – a. 20 accredited real estate salespersons b. 20 licensed real estate salespersons c. 20 registered real estate salespersons d. None of the above

a. 20 accredited real estate salespersons

37. A real estate broker is referred to as the listing broker if he --- a. Has the direct buyer b. Has a list of properties for sale c. Has an authority to sell a specific property d. Has a power of attorney to sell a property

c. Has an authority to sell a specific property

38. Broker Antonio is selling a house and lot to a prospective buyer for P30M. When is he entitled to his professional fee? a. Upon perfection of the contract b. Upon signing of the contract to sell c. Upon consummation of the contract d. Upon transfer of title to the buyer

a. Upon perfection of the contract

39. In computing the amortization factor on the financing of real estate sales, the factor will be based on – a. Interest rate b. Term of the loan c. Capacity of the borrower to pay d. Interest rate and term of the loan

d. Interest rate and term of the loan

40. A house buyer secures financing from his bank. The difference between the total purchase price and the amount of loan he can borrow is referred to as – a. Downpayment b. Option money c. Buyer’s equity d. Reservation deposit

c. Buyer’s equity

41. The multiplier effect of real estate according to the HUDCC is estimated to be in this ratio: a. 1 : 16.6x b. 1 : 15.5x c. 1 : 10x d. 1 : 20x

a. 1 : 16.6x

42. Kokoy is paying a monthly amortization of P54,100.00 / month at 21% per annum. If the amotization factor is 0.02705, how much was the amount financed? a. P 1,000,000 b. P 2,000,000 c. P 2,500,000 d. P 3,000,000

c. P 2,500,000 Sol. Monthly Amort P54,100 / 0.02705 = P2,000,000

43. A contract where the creditor acquires the title to receive the fruits of a property from the borrower to be applied to the payment of the interest and thereafter to the principal amount. a. Usufruct b. Pledge c. Antichresis d. Real Estate Mortgage

c. Antichresis

44. The government agency that provides the most housing loans and provident loans to the public. a. Home Development Mutual Fund b. Government Service and Insurance System c. Social Security System d. Home Guaranty Corporation

a. Home Development Mutual Fund

45. The GDP growth rate of the Philippine economy in 2015 is forecasted to be at – a. 5.5% b. 6.0% c. 6.8% d. 7.2%

b. 6.0%

46. A borrower thru Pag-Ibig Fund may purchase a residential lot and loan up to the age of – a. 50 years old b. 60 years old c. 65 years old d. 70 years old

c. 65 years old

47. Mr. Lacson, an owner of a 10-door apartment, rented a unit to Mrs. Diaz for a period of one year. Under the Law on Lease, Mrs. Diaz without the consent of Mr. Lacson, may perform the following, except: a. Demand reimbursement equivalent to ½ of the value of useful improvement introduced in good faith b. Assign her rights c. Suspend payment if Mr. Lacson fails to make the necessary repairs d. Sublet the unit

b. Assign her rights

48. An estimate and opinion of value – a. Financial analysis b. Accounting c. Comprehension d. None of the above

d. None of the above - Appraisal

49. A land survey always uses a point reference. It could be a – a. Bureau of Lands Location Monument b. Bureau of Lands Barrio Monument c. City Boundary Monument d. All of the above

d. All of the above

50. The value placed on taxable property by the Assessor for ad valorem tax purposes is – a. Assessed value b. Appraised value c. Market value d. Economic value

d. Economic value

51. A development that meets the needs of the present without compromising the ability of future generations to meet their own needs. a. Zoning Development b. Land Use Planning c. Sustainable Development d. Mapping

c. Sustainable Development

52. A dangerous phenomenon, substance, human activity or condition that may cause life, injury or other health impacts, property damage, loss of livelihood and economic disruptions or environmental damage. a. Hazard b. Chemical c. Landslide d. Disaster

a. Hazard

53. It is the ability of a system, community or society exposed to hazards to resist, absorb, accommodate and recover from the effects of a hazard in a timely and efficient manner including through the preservation and restoration of its essential basic structures and functions. a. Mitigation b. Adaptation c. Recovery d. Resilience

d. Resilience

54. Natural processes or phenomena of atmospheric, hydrological or oceanographic nature, which may cause the loss of life or injury, property damage, social and economic disruption or environmental degradation. a. Hydrometeorologic hazards b. Geological hazards c. Tectonic movements d. None of the above.

a. Hydrometeorologic hazards

55. The real estate practitioner’s duty to the public does not include – a. Offering free consultancy services to the public b. Ensuring the highest and best use of land c. Not introducing in a neighborhood a use of property which will impair its value d. Presenting a true picture of the property he advertises

a. Offering free consultancy services to the public

56. In accordance with the RESA Law, a Code of Ethics shall be prepared by this entity which shall be adopted by all real estate service practitioners. a. Accredited Professional Organization (APO) b. Professional Regulation Commission (PRC) c. Accredited Integrated Professional Organization (AIPO) d. Professional Regulatory Board of Real Estate Service (PRBRES)

c. Accredited Integrated Professional Organization (AIPO)

57. The sale of lots with an area of 100 sqm. each is ten (10) per month. The selling price per lot is P3,000 / sqm. with 15% downpayment and the balance payable in 3 years with interest at 18% per annum. If there are only 35 lots in the project and amortization starts 30 days after the signing of the contract, what would be the total paid amortization as of the 5th month? a. P 585,330.00 b. P 600,788.10 c. P 615,145.90 d. P 707,318.00

c. P 615,145.90 Sol. Lots - 100 sqm @ P3,000/sqm = P300,000 DP - P 45,000 Balance - P255,000

58. Mrs. Beth Chan bought a property at P800,000.00. She paid 20% downpayment. She paid P300,000.00 at the end of the first year and another P300,000.00 at the end of the second year and a final payment at the end of the third year. Compute her final payment assuming the interest rate is 18% per annum. a. P 385,600.00 b. P 402,233.00 c. P 418,500.20 d. P 275,700.75

a. P 385,600.00 Sol: Property Cost = P800,000 DP (20%) (160,000) Balance 640,000 Final Payment: Balance (800k-640k) =. 40,000 Interest (640k x 18% x 3 yrs)= 345,000 Total = 385,000

59. Mr. Joseph is into land banking. He bought a 3-hectare rawland at P10.00/sqm. i) If his cost of money is compounded 100% every 5 years, what will be his cost/sqm. after 20 years? ii) If he sells the land for P200/sqm. after 20 years, what will be his gross profit per sqm. a. P120.00 per sqm. / P20.00 per sqm. b. P160.00 per sqm. / P40.00 per sqm. c. P180.00 per sqm. / P60.00 per sqm. d. P200.00 per sqm. / P80.00 per sqm.

b. P160.00 per sqm. / P40.00 per sqm. Sol. Cost of Money for 20 yrs compounded 100% every 5 years. 1 yr -10/sqm 5yrs - 20/sqm 10yrs - 40/sqm 15yrs - 80/sqm 20yrs - 160/sqm Sell the Land for 200/sqm after 20yrs, gross profit Selling Price 200/sqm Less: Cost of Money. 160/sqm Net Profit 40/sqm

60. A prospective buyer of a house and lot 300 sqm. consulted his architect who advised him that the present cost to duplicate the house is P3,000,000.00. 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 P5,000.00 / sqm., at how much should he buy the property? a. P 3,000,000 b. P 3,500,000 c. P 3,900,000 d. P 4,200,000

c. P 3,900,000 Sol. - House (Present Cost) P3,000,000 Depreciation: P3,000,000 / 50yrs (Economic Life) = P60,000 / yr 10 yrs (Age of House) x P60,000 = P600,000 (Depreciation) Selling Price: 300 sqm @ P5,000/sqm = P1,500,000 - P600,000 (Depreciation) = P900,000 (Salvage Value) - P3,000,000 (Cost) + P900,000 (Salvage Value) = P3,900,000

61. They are referred to as individuals or groups who occupy land without the express consent of the landowner and who have sufficient income for legitimate housing. a. Squatters b. Informal settlers c. Slum dwellers d. Professional squatters

d. Professional squatters

62. Urban areas under RA 7279 refer to all cities regardless of their population density and to municipalities with a population density of at least – a. 500 persons per sq. km. b. 1,000 persons per sq. km. c. 1,500 persons per sq. km. d. 5,000 persons per sq. km.

a. 500 persons per sq. km.

63. The government entity mandated to provide local housing needs for their homeless constituents is a. HLURB b. National Housing Authority c. Local government units d. Housing & Urban Development Coordinating Council

c. Local government units

64. The most problematic sources of pollution are air, water and – a. Noise b. Solid waste c. Human effluents d. Human fluid

b. Solid waste

65. The certificate issued by the DENR to a vehicle manufacturer certifying that a new vehicle meets the requirements under the law is – a. Certificate of Compliance b. Certificate of Passing c. Certificate of Conformity d. Vehicle Clearance Certificate

c. Certificate of Conformity

66. The major source of water pollution in the country is due to – a. Industrial waste b. Domestic waste c. Animal waste d. Chemical waste

b. Domestic waste

67. It is not the purpose of an appraisal – a. Sale or purchase b. Insurance c. Loan d. To determine property tax

d. To determine property tax

68. A purpose of appraisal where it is used to determine the fair market values of properties for distribution to heirs. a. Property disputes b. Mortgage financing c. Extrajudicial partitioning of estate d. Estate settlement

c. Extrajudicial partitioning of estate

69. If a squatter shanty is put up beside your beautiful house, its value will be adversely affected and this is under the principle of – a. Deterioration b. Obsolescence c. Regression d. Depreciation

c. Regression

70. The map showing all the details that make up the surface features of the earth is generally called – a. Surface map b. Topographic map c. Terrain map d. Elevation Map

b. Topographic map

71. An untitled land was finally approved by the court for titling. The title that will be issued is called -- a. Certificate of Title b. Transfer Certificate of Title c. Original Certificate of Title d. Torrens Certificate of Title

c. Original Certificate of Title

72. An annotation in the certificate of title which indicates that the property is involved in a civil case is referred to as – a. Notice of lis pendens b. Notice of civil case c. Notice of adverse claim d. Notice of judgment

a. Notice of lis pendens

73. The Land Registration Authority is directly supervised by this government agency – a. Department of Interior and Local Government b. Department of Environment and Natural Resources c. Department of Justice d. Department of Trade and Industry

c. Department of Justice

74. The lien annotated on the title by virtue of the registration of a deed of extrajudicial settlement may be cancelled after a period of – a. 3 years from the date of extrajudicial settlement b. 2 years from the date of registration c. 3 years from the date of entry in the books of the Register of Deeds d. 2 years from the date of the extrajudicial settlement

b. 2 years from the date of registration

75. The OFW remittances in 2015 it is estimated to reach an all-time high of – a. US$ 18.0 B b. US$ 21 5 B c. US$ 24.3 B d. US$ 26.0 B

d. US$ 26.0 B

76. The Asean Economic Community Declaration paves the way for the creation of this in 2015 – a. Association of Southeast Asian Nations b. Regional Economic Forum c. Asean Economic Integration d. Asia-Pacific Development Cooperation

c. Asean Economic Integration

77. The HLURB issued in 2015 revised implementing rules and regulations on PD 957 on advertisements and registration of brokers and salespersons. These revisions were covered under the following: a. Board Resolutions 921 & 922 b. Memorandum Circular Nos. 821 & 822 c. Memorandum Order Nos. 911 & 912 d. Guideline Nos. 921 & 922

a. Board Resolutions 921 & 922

78. Mega infrastructure projects of the government nowadays are undertaken through the following: a. Build-Operate-Transfer Scheme b. Public Private Partnership c. Unsolicited bids d. Negotiated Deals

b. Public Private Partnership

79. The incumbent Administrator of the Land Registration Authority is – a. Leila De Lima b. Kim Henares c. Eulalio Diaz III d. Florentino Doble

c. Eulalio Diaz III Present - Atty. Gerardo Sirios

80. The government agency that solely implements and protects the /torrens system of land titling and registration is the – a. Department of Justice b. Local Civil Registry c. Land Registration Authority d. Registry of Deeds

c. Land Registration Authority

81. This real estate developer pioneered the development of townships in the Philippines – a. Megaworld Corporation b. Ayala Land, Inc. c. Rockwell Land Corp. d. Robinson’s Land Corp.

a. Megaworld Corporation

82. Bangalore, India is the top BPO outsourcing capital in the world. Six (6) other cities in the Philippines made the list and Metro Manila is – a. No. 2 b. No. 3 c. No. 5 d. No. 10

a. No. 2

83. A property has an annual gross income of P1,200,000.00. In his market study, an investor found that a comparable property with an annual gross income of P 1 Million was recently sold at P 6 Million. On the basis of the gross income multiplier indicated by the comparable property, at how much should he buy the property? a. P 6,500,000 b. P 7,000,000 c. P 7,200,000 d. P 8,200,000

c. P 7,200,000 Sol. - Gross Income Multiplier - Current Selling Price P6,000,000 Add Annual Gross Income. 1,200,000 - Present Property Price P7,200,000

84. A parcel of land has the following features: area is 900 sqm.; corner lot; higher than the road and almost rectangular in shape. If the prevailing price in the area is P10,000.00 / sqm. and subject lot has a corner influence of 15%, a topographic value of 5% because of its elevation and plottage value of 10% because of its shape. Determine the fair market value of the lot. a. P 9,800,000 b. P10,200,000 c. P11,700,000 d. P12,500,000

c. P11,700,000 Sol. Land - Area 900 sqm @ P10,000/sqm = P9,000,000 - C.F = 15% T.P. = 5% P.V. =10% Total 30% - P9,000,000 x 30% = P2,700,000 - P9,000,000 (P.P.) + P2,700,00, (Increase) = 11,700,000 (F.M.V.)

85. When one engages in real estate brokerage in the field of warehouse leasing, he must be – a. Registered with HLURB b. Accredited with PRC c. Licensed under PRC d. Licensed with HLURB

c. Licensed under PRC

86. Mr. Gomez obtained a listing from a corporation to sell its rawland in Cavite. To protect his authority, Mr. Gomez should get the following: a. Notarized listing authority b. SEC Articles of Incorporation & By-Laws c. Board Resolution of the corporation authorizing the sale, the signatory and his authority d. Signature of the President of the corporation

c. Board Resolution of the corporation authorizing the sale, the signatory and his authority

87. Real estate economics is defined as the application of economic techniques to real estate markets where it tries to describe, explain and predict patterns of the following, except – a. Price b. Demand c. Supply d. Needs & wants

d. Needs & wants

88. Bob borrowed P1.0 Million from Abe to buy a vacant lot at 15% interest per annum payable in two years. How much interest will Bob pay monthly? a. P 13,500 b. P 12,000 c. P 12,500 d. P 10,250

c. P 12,500 Sol. Interest 15% / 12mos. - 1.25% 1,000,000 x 1.25% = 12,500

89. Pancho paid P50,000.00 reservation fee for the purchase of a lot. He is required to pay the full downpayment of 15% of the total contract price of P3,000,000.00 within 60 days. How much will he pay in 60 days? a. P 450,000 b. P 475,000 c. P 400,000 d. P 350,000

c. P 400,000 Sol. Total Contract Price P3,000,000 Down payment 15% 450,000 Less: Reservation fee: 50,000 Amount to be paid 400,000

90. The Home Development Mutual Fund, otherwise known as Pag-Ibig Fund is headed by – a. Atty. Darlene Marie Berberabe b. Dr. Eduardo G. Ong c. Vice President Jejomar Binay d. Mr. Antonio Bernardo

a. Atty. Darlene Marie Berberabe Present - Marilene Acosta

91. Under RA 7279, this government agency shall administer the Community Mortgage Program – a. Housing and Land Use Regulatory Board b. National Home Mortgage Finance Corporation c. National Housing Authority d. Housing and Urban Development Coordinating Council

c. National Housing Authority

92. A 5-storey building was constructed on an 800 sqm. lot 10 years ago. Floor area is 400 sqm. per floor. Present reproduction cost of the building is P 10,000.00/sqm. and the land was purchased five years before the building construction at P5,000.00/sqm. Assuming the depreciation rate of the building is 2.5% per year while land appreciation is 5% per year, what is the fair market value of the property? a. P 22,500,000 b. P 19,850,000 c. P 17,500,000 d. P 24,500,000

d. P 24,500,000 Sol. - Building 5 story x 400 sqm = 2,000 x 10,000 = P20,000,000 Depreciation: 2.5% x 5 yrs = 12.5% 12.5% x 20,000,000 = 2,500,000 ------------------------------------------------------------ - Land 800 sqm x 5,000 sqm = 4,000,000 Appreciation: 15 yrs x 5% = 75% 4,000,000 x75% = 3,000,000 ************************************ -Building - 20,000,000 -Land - 4,000,000 -Add Appreciation. - 3,000,000 -Less: Depreciation - (2,500,000) ---------------- -Total - 24,500,000 =========

93. Which type of subdivision project is not required to secure a license to sell from HLURB? a. Residential b. Commercial c. Memorial parks d. None of the above

d. None of the above

94. The physical set up enabled the Spanish to effectively manage and control the natives and to bring them closer to Catholicism. a. Plaza complex b. Ciudades c. Walled City d. Communidades

a. Plaza complex

95. If the borrower is 35 years old at the time of availment of the Pag-Ibig housing loan, what will be the maximum period in years the loan should be fully paid? a. 15 years b. 20 years c. 25 years d. 35 years

d. 35 years

96. The type of appraisal report depends upon the amount of background information and detail required by the client. Which of the following types is the longest and most detailed? a. The letter report b. The form report c. The narrative report d. The long form report

c. The narrative report

97. Refers to the use of government budget to influence economic activity. a. Monetary policy b. Budgetary policy c. Fiscal policy d. Police power

c. Fiscal policy

98. Teddy wants to sell condo units in a development project near his residence. If he decides to do so, his action constitutes – a. Condominium selling b. General brokerage practice c. Project selling d. Project Pre-selling

c. Project selling

99. The practice of acquiring land at values based on existing prices and use in advance of actual need to promote planned development in the future – a. Land acquisition b. Land consolidation c. Land banking d. Land use planning

c. Land banking

The whole of the Philippines was declared under urban land reform in this law -- a. PD 1217 b. PD 1517 c. RA 7279 d. PD 957

b. PD 1517