Board Exam Simulation HD General / Fundamentals (100 Pts)

Question 1

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

Question 2

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

Question 3

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

Question 4

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

a.
90%

b.
40%

c.
50%

d.
75%

Question 5

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

Question 6

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

Question 7

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

Question 8

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

Question 9

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

Question 10

To estimate market value, an appraiser follows the

a.
Appraisal report

b.
Valuation process

c.
Evaluation methodology

d.
Appraisal guidelines

Question 11

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

Question 12

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

Question 13

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

Question 14

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

a.
10

b.
12

c.
14

d.
15

Question 15

Considered real estate practitioners except:

a.
developer

b.
broker

c.
appraiser

d.
consultant

e.
assessor

Question 16

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

Question 17

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

Question 18

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

Question 19

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

a.
Financially feasible

b.
Supply and demand

c.
Contribution

d.
Competition

Question 20

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

Question 21

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

Question 22

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

Question 23

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

Question 24

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

Question 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

Question 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

Question 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

Question 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

Question 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

Question 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

Question 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

Question 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

Question 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

Question 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”

Question 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

Question 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

Question 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

Question 38

An appraisal of real estate

a.
guarantees its value

b.
assures its value

c.
determines its value

d.
estimates its value

Question 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

Question 40

A personal property mortgage is a:

a.
real estate mortgage

b.
blanket mortgage

c.
chattel mortgage

d.
collateral pledge

Question 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

Question 42

Single buyer, multiple sellers

a.
Perfect Market

b.
Imperfect Market

c.
Monopoly

d.
Monopsony

Question 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

Question 44

Property exclusively owned by the husband is called:

a.
Chattel

b.
Accession

c.
Paraphernal property

d.
Capital property

Question 45

The process of discounting income expectancies to a present worth is called

a.
Rate analysis

b.
Capitalized expenses

c.
Capitalization

d.
Net income

Question 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

Question 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

Question 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

Question 49

All of the following would be considered real estate except

a.
Fences

b.
Buildings

c.
Growing trees

d.
Farm equipment

Question 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

Question 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

Question 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

Question 53

Extended the funding of the CARP for another 10 years (1998 – 2008)

a.
RA 1400

b.
RA 3844

c.
RA 8532

d.
RA9700

Question 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

Question 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

Question 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

Question 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

Question 58

The following factors create value for real estate except:.

a.
Demand

b.
Utility

c.
Supply

d.
Transferability

Question 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

Question 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

Question 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

Question 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

Question 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

Question 64

Holds that profit tends to breed competition and excess profit tends to breed ruinous competition.

a.
Change

b.
Competition

c.
Conformity

d.
Contribution

Question 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

Question 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

Question 67

For economic housing, the minimum lot area for duplex and single attached is ______ sqm.

a.
50

b.
54

c.
60

d.
70

Question 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

Question 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

Question 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

Question 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

Question 72

Comprehensive Agrarian Reform Law of 1988

a.
RA6732

b.
PD1517

c.
RA9653

d.
RA6657

Question 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

Question 74

Refers to law on acquisition by a natural born Filipino citizen on residential property

a.
RA6732

b.
RA6552

c.
RA9653

d.
BP185

Question 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

Question 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

Question 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

Question 78

Law defining “open space” in residential subdivision

a.
PD 957

b.
RA6552

c.
RA9653

d.
PD1216

Question 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

Question 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

Question 81

Subdivision and Condominium Buyers Protective Decree

a.
PD 957

b.
PD1529

c.
PD1517

d.
PD1216

Question 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

Question 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

Question 84

The minimum lot frontage of duplex for economic housing is _____meters.

a.
5

b.
7

c.
6

d.
8

Question 85

Refers to the degree of usefulness of a property.

a.
Scarcity

b.
Utility

c.
Highest and Best Use

d.
Progression

Question 86

A real estate practitioner duly registered with the Board shall __________ become a member of AIPO.

a.
conditionally

b.
automatically

c.
initially

d.
temporarily

Question 87

The element of value include which of the following?

a.
Scarcity

b.
Anticipation

c.
Balance

d.
Competition

Question 88

One of the following is not an economic characteristic of real estate:

a.
Area Preference

b.
Scarcity

c.
Transferability

d.
Fixity

Question 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

Question 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

Question 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

Question 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

Question 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

Question 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

Question 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

Question 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”

Question 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

Question 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

Question 99

Property escheated to the government is considered as

a.
Public Dominion

b.
Regalian Property

c.
Patrimonial Property

d.
Land of Public Domain

Question 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