Board Exam Simulation HD General / Fundamentals (100 Pts) Flashcards

1
Q

Which of the following is not an example of special purpose real estate?

a.
A private school

b.
A public library

c.
A shopping center

d.
A house and lot

A
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2
Q

The following are the Categories of lands, except

a.
Protected areas

b.
Alienable and disposable (A&D)

c.
Privately owned land

d.
Forest and Unclassified lands

A
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3
Q

In appraisal of an old building, economic life is the sum of :

a.
Actual age plus remaining physical life

b.
Actual age plus remaining economic life

c.
Effective age plus remaining economic life

d.
Effective age plus remaining physical life

A
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4
Q

A Real Investment Trust company shall distribute annually at least how much dividends to its shareholders:

a.
90%

b.
40%

c.
50%

d.
75%

A
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5
Q

The following are types of property descriptions ordinarily used in deeds, contracts, offer to sell, and leases, except:

a.
Rectangular Survey

b.
Bearings and azimuth

c.
Lot number

d.
Monuments

e.
Metes and Bounds

A
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6
Q

A scale map showing the dimensions of each parcel and related information such as parcel identifier, survey lines easements.

a.
Location Map

b.
Cadastral Map

c.
Topographic Map

d.
Sales Map

A
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7
Q

The Gross Income Multiplier is a factor derived from comparable properties and applied to expected rental income to estimate

a.
A value

b.
An established cost

c.
A gross income

d.
A known price

A
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8
Q

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

A
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9
Q

Which of the following describes a buyer’s market?

a.
There are many sellers in a particular area as against very few buyers

b.
There are many properties for sale in a particular area but many just want to rent

c.
There are few properties for sale in a particular area and very many buyers

d.
There are few properties for sale in a particular area and also very few buyers

A
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10
Q

To estimate market value, an appraiser follows the

a.
Appraisal report

b.
Valuation process

c.
Evaluation methodology

d.
Appraisal guidelines

A
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11
Q

In relation to the question prior to this, if commission of the joint venture broker is 5% to be shared by both parties on a pro-rata basis, based on land value agreed, how much is the commission of the broker which will come from the developer?

a.
P1,225,000.00

b.
P1,050,000.00

c.
P700,000.00

d.
P3,450,000.00

A
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12
Q

A contract to sell entered into the name of, and subsequently ratified by a licensed broker, by a sales agent who was not granted authority to sell, is:

a.
Voidable contract

b.
Rescissible contract

c.
Enforceable contract

d.
Void contract

A
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13
Q

The highest amount in terms of money that a property should bring given reasonable time exposure in the open and competitive market:

a.
Market Value

b.
Fair Market Value

c.
Salvage Value

d.
Zonal Value

A
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14
Q

Under socialized housing, the maximum right-of-way for major road is ________meters.

a.
10

b.
12

c.
14

d.
15

A
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15
Q

Considered real estate practitioners except:

a.
developer

b.
broker

c.
appraiser

d.
consultant

e.
assessor

A
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16
Q

Also known as the Comparative Approach, an appraisal procedure in which the market value estimate is predicated upon prices paid in actual market transactions and current listings.

a.
Cost Approach

b.
Income Approach

c.
Residual Technique

d.
Market Data Approach

A
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17
Q

Under Urban land Reform Act (PD 1517), the acquisition of lots of varying ownership through, among others, expropriation or negotiated purchase for the purpose of planning is

a.
Land Banking

b.
Land Exchange

c.
Land Use Plan

d.
Land Assembly

A
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18
Q

Amendment to the master deed of a condominium project approved by majority of the registered owners need also be approved by the city/municipal engineer and:

a.
Local government

b.
Housing and Urban Development Coordinating Council

c.
Department of Human Settlements and Urban Development

d.
Land Registration Authority

A
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19
Q

Which is one of the four criteria of highest and best use?

a.
Financially feasible

b.
Supply and demand

c.
Contribution

d.
Competition

A
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20
Q

This is an apparent force, relative to the earth’s surface, that causes deflection of moving objects to the right in the Northern Hemisphere and to the left in the Southern Hemisphere due to the earth’s rotation.

a.
Coriolis Effect

b.
Kyoto Protocol

c.
Dunning-Kruger Effect

d.
Impostor Syndrome

A
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21
Q

Any violation of R.A. 9646, including that of the IRR shall be meted the penalty of a fine of not less than:

a.
P200,000.00 or imprisonment of 2 years or both

b.
P100,000.00 or imprisonment of 2 years or both

c.
P100,000.00 or 2 yrs imprisonment or both upon the discretion of the court

d.
P200,000.00 or 2 yrs imprisonment or both upon the discretion of the court

A
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22
Q

The highest price estimated in terms of money that a real property is acquired by a buyer who is willing to buy and a seller who is willing to sell but is not obliged or anxious to sell; both of whom have adequate knowledge of the actual and potential use of the property offered for a reasonable time in the open market and neither parties under pressure to buy or sell:

a.
Market Value

b.
Valuation

c.
Value in Use

d.
Value in Exchange

A
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23
Q

A former natural born Filipino citizen may in addition to acquiring residential land under B.P. 185 may still acquire land for business or other purposes under R.A. 8179 provided the area does not exceed

a.
One (1) hectare of urban land or 2 hectares of rural land

b.
5,000 square meters of urban land or 3 hectares of rural land

c.
5,000 square meters of urban land or 5 hectares of rural land

d.
1,000 square meters of urban land or 3 hectares of rural land

A
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24
Q

Registration of sale of a five (5) hectare agricultural land must be accompanied by

a.
DAR Conversion Permit

b.
DAR Clearance

c.
DHSUD License to Sell

d.
LGU Development Permit

A
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25
A Real Investment Trust must have a minimum paid up capital of at least: a. P300,000,000.00 b. P500,000,000.00 c. P1,000,000,000.00 d. P5,000,000,000.00
26
Under Rule 2 Section 11, Annual Report – At the close of each calendar year an Annual Report stating the detailed account of its proceeding and accomplishments and the recommendations to be adopted to upgrade the conditions affecting real estate service practice shall be submitted by the Board to the: a. Office of the President of the Republic of the Philippines b. Office of the Commissioner of the Professional Regulation Commission c. Office of the Department of Finance d. Office of the Department of Budget and Management
27
It is the study of a specific market, the collection and dissection of data and the conversion of that data to information that can be used for analysis and decision-making by an appraiser or analyst. a. Market Segmentation b. Market Study c. Market Analysis d. Feasibility Study
28
An Act to ordain and institute a National Building Code of the Philippines is known as: a. RA 9700 b. RA 6541 c. RA 7905 d. RA 6657
29
Unless extended for justifiable cause, the period of completion of development of a subdivision project, counted from issuance of license to sell, is: a. Six months b. Twenty four months c. Twelve months d. Eighteen months
30
Since Philippine Independence in 1946 more cities were chartered under U.S. administration. In 1948 one city, which was chartered in 1939 became the capital of the Philippines. This city is a. Manila b. Pasay City c. Caloocan City d. Quezon City
31
All real estate practitioners shall maintain adequate knowledge, competence and expertise in real estate development and management and the upgrading of the standards of practice shall be effected when the need arises; all these for, and in the interest of the: a. social and economic progress of the country b. upgrading of the real estate industry c. moral upliftment of the profession d. profession education
32
On documents executed abroad, like Special Power of Attorney, the documents must be properly authenticated by any of the following, except: a. Phil. Ambassador or Secretary of Legation b. Charge d’ Affairs c. Consul, Vice Consul, or Consular Agent d. POEA
33
The principle holds that when two or more commodities with substantially the same utility are available, the one with the lowest price receives the greatest demands and widest distribution. a. Principle of Contribution b. Principle of Balance c. Principle of Highest and Best Use d. Principle of Substitution e. Principle of Completion
34
Sec. 6 of Art 1 – Declaration of Principles of the Code of Ethics for Realty Service Practitioners State the Golden Rules as: a. "Treat others as you want them to be treated” b. “Do not do unto others what you want others do unto you” c. "Do unto others what you want others do unto you” d. "Treat others as you like them to treat you”
35
An administrative process under Public Land Act for those who could not establish sufficient legal basis for title, but had occupied the land for the length of time prescribed by the law. a. Sales Patent b. Free Patent c. Patent d. Homestead Patent
36
It is refers to land located in the fringes of built-up communities which has the provincial characteristics but is flavored with metropolitan utilities, facilities and amenities. a. Urban Land b. Rurban Land c. Urbanizable Land d. Rural Land
37
It refers to an imaginary line connecting point “1” (point of beginning) of any given lot plan to a reference point. a. Boundary line b. Cardinal direction c. Azimuth d. Tie line
38
An appraisal of real estate a. guarantees its value b. assures its value c. determines its value d. estimates its value
39
This principle refers to an over-improvement or under improvement that reflects lack of conformity as between one property and its environment. a. Conformity b. Supply and Demand c. Change d. Substitution
40
A personal property mortgage is a: a. real estate mortgage b. blanket mortgage c. chattel mortgage d. collateral pledge
41
Refers to the process of making instalment payments consisting of principal and interest that reduces the loan balance: a. Amortization b. Interest c. Down payment d. Term Payment
42
Single buyer, multiple sellers a. Perfect Market b. Imperfect Market c. Monopoly d. Monopsony
43
The study of current supply and demand conditions in a particular area for a specific type of property is a. Real estate appraisal b. Absorption estimate c. Cash flow analysis d. Market analysis
44
Property exclusively owned by the husband is called: a. Chattel b. Accession c. Paraphernal property d. Capital property
45
The process of discounting income expectancies to a present worth is called a. Rate analysis b. Capitalized expenses c. Capitalization d. Net income
46
Under Republic Act No. 7279 a developer of a subdivision project in 1996 is required to develop 20% of the project for a. socialized housing b. specialized housing c. roads and open spaces d. economic housing
47
Which of the following statements is not true? a. Full ownership equals naked ownership plus usufruct b. Usufruct equals naked ownership plus full ownership c. Naked ownership equals full ownership minus usufruct d. Usufruct equals full ownership minus naked ownership
48
It is the total income generated by the operations of a property before payment of operating expenses which is calculated from potential rental income, plus other income affected by vacancy, less vacancy and credit losses, plus other income not affected by vacancy. a. Gross Rent Multiplier b. Gross Operating Income c. Gross Income Multiplier d. Income Capitalization Approach
49
All of the following would be considered real estate except a. Fences b. Buildings c. Growing trees d. Farm equipment
50
Broadly buildings or other more or less permanent structures or developments located upon or attached to land. a. Real Estate b. Real Property c. Personal Property d. Improvements
51
The capital gains tax due on the sale of P2,000,000.00 property with P500,000.00 initial payment is: a. P100,000.00 b. P30,000.00 c. P120,000.00 d. P20,000.00
52
Mr. Reyes sold his property at P5,000,000.00 inclusive of capital gains tax, documentary stamp tax and broker’s commission of 5%. What will be his net proceeds after deduction of expenses? a. P3,875,000.00 b. P4,250,000.00 c. P4,375,000.00 d. P4,455,000.00
53
Extended the funding of the CARP for another 10 years (1998 – 2008) a. RA 1400 b. RA 3844 c. RA 8532 d. RA9700
54
Which type of studies test the ability of various proposed improvements to meet investment objectives? a. Market b. Feasibility c. Marketability d. Cost-Benefit
55
The following are modes of acquiring lands for the purposes of the Urban Development and Housing Act of 1992 except. a. Joint Venture agreement b. Negotiated pruchase c. Community mortgage d. Accretion e. Expropriation
56
He is a geographer who first suggested that the discipline of geography could be divided into three distinct branches. a. Bernhardus Varenius b. Fredrich Ratzel c. Carl Ritter d. Alexander von Humboldt
57
When the area is five hectares or less but buyer will use the land for non-agricultural purpose, or when the area, consist of more than five hectares regardless of the buyer’s intended utilization, what is required is _________. a. DAR clearance b. DAR conversion c. LGU clearance d. LGU reclassification statement
58
The following factors create value for real estate except:. a. Demand b. Utility c. Supply d. Transferability
59
This refers to the amount of money necessary to purchase the finished goods or item of property manufactured when offered for sale in the open market. a. Cost b. Price c. Value d. Amount
60
An improvement’s remaining economic life is a. its chronological age b. its effective age c. the future time span over which the improvement is expected to generate benefits d. its effective age minus its chronological age
61
The law that reverted the nature of Pag-IBIG Membership to mandatory to all SSS & GSIS members earning at least P4,000.00 a month a. Republic Act 7742 b. Presidential Decree 1530 c. Presidential Decree 1752 d. Executive Order No. 90
62
It is defined as the physical land and all those items which are attached to the land which the physical, tangible entity can be seen and touched, together with all the additions on, above, or below the ground. a. Real estate b. Real property c. Property d. Personal Property
63
Few sellers, more buyers (sellers market) ; few buyers, more sellers (buyers market); price goes up and down accordingly. a. Perfect/ Flawless Market b. Imperfect/ Flawed Market c. Monopoly d. Monopsony
64
Holds that profit tends to breed competition and excess profit tends to breed ruinous competition. a. Change b. Competition c. Conformity d. Contribution
65
Registration of a mortgage covering a subdivision project can only be effected when the deed is accompanied by a permit to mortgage issued by: a. Department of Human Settlements and Urban Development b. Housing & Urban Development Coordinating Council c. Home Guarantee Corporation d. National Housing Authority
66
A leasehold interest may be created only if the contract rent is a. greater than market rent b. equal to market rent c. less than the market rent d. less than the value of the property
67
For economic housing, the minimum lot area for duplex and single attached is ______ sqm. a. 50 b. 54 c. 60 d. 70
68
Those assets which are not physical and material in nature are called: a. Intangible Assets b. Tangible Assets c. Fixed Assets d. Liquid Assets
69
When the interest of participation of condominium unit owners in the common area is proportionate, the formula applied is: a. Unit area divided by total area of the common area b. Unit area divided by total area of all condominium units c. Unit area divided by total area of all condominium units and common area d. Unit area divided by total floor area of condominium building
70
In general, the minimum educational requirement for a salesperson to be accredited by PRC is: a. High school graduate b. Seventy (70) units in college c. Completed at least 2 years of college education (72 units) d. one hundred forty four (144) units in college
71
The sale or transfer of real property to real estate investment trust shall be subject to: a. 10% of the applicable DST b. 25% of the applicable DST c. 50% of the applicable DST d. 75% of the applicable DST
72
Comprehensive Agrarian Reform Law of 1988 a. RA6732 b. PD1517 c. RA9653 d. RA6657
73
An act allowing reconstitution of title administratively destroyed by fire, flood, etc (June8, 1989) a. PD 957 b. RA 6552 c. RA 4726 d. RA 6732
74
Refers to law on acquisition by a natural born Filipino citizen on residential property a. RA6732 b. RA6552 c. RA9653 d. BP185
75
The real estate practitioner, in relation to the government, is expected to perform as such except: a. Secure all the necessary licenses, permits and authority b. Pay any and all taxes, fees, dues, levies or charges c. Encourage, abet, tolerate, or participate in the aversion or illegal reduction in the payment of all taxes, fees, dues, levies or charges d. Should not offer or agree to pay, split or rebate any commission or fee
76
The rate of real estate tax in municipalities within Metro Manila is not more than a. One-half percent of assessed value b. Two and a half percent of assessed value c. One percent of assessed value d. Two percent of assessed value
77
Is used when the value of the land can be estimated with reasonable accuracy using the market comparables a. Development Approach b. Sales Comparison c. Cost Approach d. Building Residual Technique
78
Law defining “open space” in residential subdivision a. PD 957 b. RA6552 c. RA9653 d. PD1216
79
What are the two classifications of properties as to ownership under the Civil Code? a. Public domain and private ownership b. movable or personal c. immovable or real property d. within the commerce of man and outside the commerce
80
What is the market value of a vacant lot subject to 5% idle land tax if total tax paid by the owner for one year net of 20% prompt payment discount is P12,800.00. Basic tax is 2% while SEF tax is 1%? a. P800,000.00 b. P1,000,000.00 c. P1.2M d. P1.4M
81
Subdivision and Condominium Buyers Protective Decree a. PD 957 b. PD1529 c. PD1517 d. PD1216
82
The following are modes of acquiring lands for purposes of Urban Development and Housing Act, except: a. Community mortgage b. Negotiated purchase c. Foreclosure d. Joint venture agreement e. Land swapping
83
Under the Pag-ibig housing loan program, if a 65-year old loan applicant has the capacity to pay and insurable, the maximum paying period is only: a. 3 years b. Not qualified c. 5 years to pay d. 10 years to pay
84
The minimum lot frontage of duplex for economic housing is _____meters. a. 5 b. 7 c. 6 d. 8
85
Refers to the degree of usefulness of a property. a. Scarcity b. Utility c. Highest and Best Use d. Progression
86
A real estate practitioner duly registered with the Board shall __________ become a member of AIPO. a. conditionally b. automatically c. initially d. temporarily
87
The element of value include which of the following? a. Scarcity b. Anticipation c. Balance d. Competition
88
One of the following is not an economic characteristic of real estate: a. Area Preference b. Scarcity c. Transferability d. Fixity
89
The highest and best use of a site is its a. Current or Existing use b. Most probable use that is legal, physically possible and provides the highest financial returns c. Immediate& necessary use d. Ordinary and Least expensive use
90
When a property is sold to 2 or more buyers, the property goes to: a. Buyer in good faith who first registered the sale with Register of Deeds b. Buyer who pays the highest price c. Buyer who was first in possession d. None of the above
91
The Philippine constitutional framework was governed under three constitutions on the three following period, except: a. 1935 Constitution b. 1973 Constitution c. 1987 Constitution d. 1992 Constitution
92
Urbanizable areas refer to sites and lands which, considering present characteristics and prevailing condition, display marked and great potential of becoming urban areas within the period of a. Two (2) years b. Three (3) years c. Five (5) years d. Ten (10) years e. None of the above
93
Any amendment to the master deed of a condominium project decided by the majority of owners must be approved by the DHSUD and a. City/Municipal Mayor b. City/Municipal Assessor c. City/Municipal Council d. City/Municipal Development Planning Officer e. City/Municipal Engineer
94
The period of time over which the structure may reasonably be expected to perform the function for which it was designed or intended. a. Economic Life b. Useful Life c. Normal Life d. Chronological Age
95
An abstract sphere within which price-influencing factors tend to operate and wherein the payment of the consideration is accompanied by transfer of right rather than by movement of goods is referred to as: a. Real Estate Investment b. Real Estate Development c. Real Estate Market d. Real Estate Marketing
96
he Philippine flag has three stars which represent a. The three principal regions b. The three Philippine National heroes c. The three kings’ in Bethlehem d. The three letter “K”
97
The best evidence of fee simple ownership is a Torrens Title because it is: a. Imprescriptible b. Binding against the whole world c. Indefeasible d. Superior than tax declaration e. All of the above
98
A family residential home was sold at P4,000,000.00. The BIR fair market value is P5,000,000.00. The owners bought a new residential home worth P3,000,000.00. How much is the basic capital gains tax on the unutilized portion of the P4,000,000.00 sale of the old / previous home? a. P85,000.00 b. P75,000.00 c. P65,000.00 d. P55,000.00
99
Property escheated to the government is considered as a. Public Dominion b. Regalian Property c. Patrimonial Property d. Land of Public Domain
100
It is a contract granting a person the privilege to buy or not to buy certain objects at anytime with the agreed period at a fixed price and the consideration is considered not a part of the purchase price. a. Reservation contract b. Earnest money contract c. Option contract d. Contract to sell