Board Exam Simulation Set B - HD General /Fundamentals (100 Pts) Flashcards
The amount of family home equivalent to fair market value considered as allowable deduction from the estate of a decedent:
a.
P500,000.00
b.
P2,000,000.00
c.
P1,000,000.00
d.
P750,000.00
The process of valuing a group of properties as of a given date using standard methodology, employing common data, and allowing for statistical testing.
a.
Mass Appraisal
b.
Model Calibration
c.
Income Approach
d.
Cost Approach
The maximum period that an foreign corporate investors may lease real estate including renewal is:
a.
25 years
b.
50 years
c.
75 years
d.
99 years
Single buyer, multiple sellers
a.
Perfect Market
b.
Imperfect Market
c.
Monopoly
d.
Monopsony
It is one which is politically attached to a larger piece but not actually contiguous with it.
a.
Enclave
b.
Exclave
c.
Extraterritoriality
d.
Quadripoint
The documentary stamps for the Donor’s Tax shall be paid on:
a.
After 30 days from notarization of Deed
b.
Within 30 days from notarization of the Deed
c.
Within 30 days from date of execution of the Deed
d.
Donation is not subject to DST
Refers to law on acquisition by a natural born Filipino citizen on residential property
a.
RA6732
b.
RA6552
c.
RA9653
d.
BP185
Local Government Code of 1991
a.
RA8424
b.
RA7279
c.
RA9653
d.
RA7160
Spouses who were married after the effectivity of the Family Code (August 3, 1988) without any pre-nuptial agreement shall be governed by:
a.
Conjugal partnership of gains
b.
Absolute separation of property
c.
Absolute community of property
d.
None of the above
Single seller, multiple buyers
a.
Perfect Market
b.
Imperfect Market
c.
Monopoly
d.
Monopsony
The minimum setback for side yard for both economic and socialized housing should be _____meters from building line.
a.
1.0
b.
1.2
c.
1.5
d.
2
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
The Philippine Sea to the east, the Celebes Sea to the south, and the South China Sea to the west and north bound Philippine archipelago. This type of location description is
a.
Relative location
b.
Absolute location
c.
Exact location
d.
Reference location
The schedule of market value for ad valorem tax in municipalities outside Metro Manila is prepared by
a.
Municipal Assessor
b.
Sangguniang Panglalawigan
c.
Provincial Assessor
d.
Provincial Treasurer
Refers to law on acquisition by a natural born Filipino citizen on Property for business purpose
a.
RA6732
b.
RA8179
c.
RA9653
d.
RA9700
e.
BP185
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
Registration of mortgage covering projects can only be affected when the deed is accompanied by a permit to mortgage issued by:
a.
Housing and Urban Development Coordinating Council
b.
Home Insurance Guarantee Corporation
c.
Department of Human Settlements and Urban Development
d.
National Housing Authority
The type of listing that gives the real estate broker the greatest protection
a.
Exclusive Agency Listing
b.
Net Listing
c.
Open Listing
d.
Exclusive Right to Sell Listing
Real estate refers to the following
a.
Land and improvements whether natural or man made
b.
Land, improvements, rights, benefits, interest
c.
Land and buildings and inherent rights of ownership
d.
Trees, fence, road, drainage system
It is the fair market value of the land in a specific zone or area as established by the BIR:
a.
Market Value
b.
Fair Market Value
c.
Sound Value
d.
Zonal Value
A land survey always uses a reference point which could be
a.
Bureau of Lands Location Monument
b.
City Boundary Monument
c.
Municipal Location Monument
d.
Provincial Boundary Monument
e.
Any of the above
Based on government studies the following were problems encountered by the Land Sector, excluding one:
a.
Unlimited access to land records due to a number of factors, including inefficient and incomplete land record systems and the lack of a good spatial framework; Transparency in land record systems and poor public access to records, leading to a proliferation of fake and spurious titles.
b.
Institutional and policy arrangements that is ambiguous, unclear and ineffective. A rigid and unresponsive land classification system that affects the legitimacy of existing land use and constraints the development potential of land resources.
c.
A land conversion policy and procedures that cannot respond to the growing demand for urban development and protect forest and protected areas; The inability to meet the demand to supply land for housing, commerce and industry is forcing people into informal arrangements.
d.
An inequitable property taxation system due to a number of factors including SMV’s that do not reflect market values; an incomplete tax roll; and poor tax collection efficiency.
A principle in appraisal, which refers to the agents in production are labor, coordination, capital and land. Land has the last claim on the surplus productivity of the agents in production.
a.
Progression
b.
Regression
c.
Balance
d.
Highest and Best Use
Refers to land, improvements, and all rights and interests attached to land;
a.
Real estate
b.
Real property
c.
Property
d.
Personal Property
This government agency is responsible for the preparation of comprehensive land use in a locality.
a.
Local government unit
b.
HUDCC
c.
Register of Deeds
d.
HLURB
e.
DAR
This occurs through migration, trade and cultural diffusion
a.
Movement
b.
Location
c.
Place
d.
Human environment/interaction
Under the Pag-ibig housing loan program, the maximum loan paying period is:
a.
20 years
b.
25 years
c.
30 years
d.
35 years
Expropriation Law of 2000
a.
RA6732
b.
RA6552
c.
RA9653
d.
RA8974
The Philippines has a total land area of ______ hectares.
a.
20 million
b.
30 million
c.
40 million
d.
50 million
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
Amendment to the master deed of a condominium project approved by simple majority of registered unit owners. Majority is based on:
a.
Number of condominium units
b.
Floor area of ownership
c.
Total area of condominium units
An economic characteristic which is often called as Situs
a.
Area Preference
b.
Scarcity
c.
Permanence of Improvements
d.
Fixity
The process of discounting income expectancies to a present worth is called
a.
Rate analysis
b.
Capitalized expenses
c.
Capitalization
d.
Net income
The Seller realized a 30% gross profit over his cost. If the property is sold at P1,950,000.00, the cost is:
a.
P1,365,000.00
b.
P1,350,000.00
c.
P1,650,000.00
d.
P1,500,000.00
Based on the problem prior to this, how much is the remaining balance of the principal after the buyer has paid two monthly amortization?
a.
P671,681.71
b.
P617,186.71
c.
P617,681.71
d.
P617,861.71
The three principal regions of the Philippines are the following
a.
NCR, CAR, ARMM
b.
Mimaropa, Calabarzon, Soccksargen
c.
Region 1, Region 2, Region 3
d.
Luzon, Visayas, Mindanao
Under the Pag-ibig housing loan program, the maximum loan value for socialized housing is:
a.
P300,000.00
b.
P450,000.00
c.
P500,000.00
d.
P600,000.00
ABC Realty Corporation, a real estate brokerage company, is acting through the license of Mr. Juan dela Cruz, a registered real broker. Mr. Reyes, a salesperson of the company, consumated a sales transaction which entitles him to receive 3% commission. The 3% commission of Mr. Reyes to be issued by the developer must be payable and in the name of _________under IRR of RA9646 to:
a.
Mr. Reyes net of withholding tax
b.
Mr. Juan dela Cruz – the licensed broker
c.
ABC Realty Corporation
d.
Any authorized person of the company
A duly registered and licensed real estate service practitioner is mandated by the R.A. 9646 to be an automatic member of the integrated national organization referred to as the:
a.
AIPORES
b.
AIPO
c.
APO
d.
AIPORESP
Has ruled that all agricultural lands that are already classified as commercial, industrial or residential before June 15, 1988 no longer need any conversion clearance even if it is still devoted to agricultural activity
a.
Republic Act 6657
b.
DOJ Opinion No. 44, SERIES OF 1990
c.
Republic Act 7279
d.
PD27
In case of foreclosure sale where right of redemption is not exercised by the mortgagor-owner, who pays the capital gains tax?
a.
Owner-mortgagor
b.
Buyer of the property
c.
Creditor-bank
d.
None of the above
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.
Malays
c.
Indonesians
d.
Tinggues
Comprehensive Agrarian Reform Law of 1988
a.
RA6732
b.
PD1517
c.
RA9653
d.
RA6657
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
For BP 220 projects, minimum clear height for door should be ______meters.
a.
1.6
b.
1.75
c.
1.8
d.
2
POLICE POWER includes all of the following except:
a.
Zoning
b.
Deed restrictions
c.
Building codes
d.
Subdivision regulation
The following are significant political influences and problems in the valuation and taxation system, but not:
a.
Multiple, conflicting valuation methodologies; Absence of uniform valuation standards; Limited provisions for formal education & training of assessors/ appraisers
b.
Outdated, distorted real property values; Limited access to information, use of information technology in the appraisal process
c.
Multiple taxes on land ownership & transfers; Weak enforcement of land-related taxes
d.
Low transaction taxes discourage formal transactions & lead to opportunities for inappropriate practices
A person who is paid a referral fee for locating and promoting business opportunities for others:
a.
Flip
b.
Crack
c.
Bird Dog
d.
Swinger
The chairperson of first PRBRES shall serve for at least
a.
1 year
b.
2 years
c.
3 years
d.
4 years
e.
5 years
It is an encumbrance imposed upon an immovable for the benefit of another immovable belonging to another:
a.
Right-of-way
b.
Nuisance per se
c.
Private nuisance
d.
Easement
These refers to plant, machinery and equipment are tangible or physical assets which are intended to be used on a continuing basis as part of an enterprise.
a.
Real estate
b.
Real property
c.
Property
d.
Personal Property
The minimum lot frontage of duplex for economic housing is _____meters.
a.
5
b.
7
c.
6
d.
8
The maximum period that an individual foreigner may lease real estate including renewal is:
a.
25 years
b.
50 years
c.
75 years
d.
99 years
When one or two parcels are consolidated so that its increment in value as whole is much more than the total sum of the value of each parcel of land separately owned is called
a.
Cost value
b.
Market value
c.
Economic value
d.
Plottage value
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
Easement is to real property; Usufruct is to:
a.
Personal property
b.
Personal or real property
c.
Real property
d.
None of the above
Agricultural Land Reform Code
a.
RA 1400
b.
RA 3844
c.
RA 8532
d.
CA 141
Which type of studies test the ability of various proposed improvements to meet investment objectives?
a.
Market
b.
Feasibility
c.
Marketability
d.
Cost-benefit
This principle is also known as replacement or reproduction cost less depreciation. Under this approach, to value, the land is appraised as vacant. The land value is then added to the depreciated cost of the improvements to arrive at an indication of value. It is based on the “Theory of Substitution” which states that no property is worth more than the replacement cost of a similar property having equal utility and equally desirable location which can be obtained without undue delay.
a.
Cost Approach
b.
Direct Market Comparison
c.
Income Capitalization Approach
d.
Residual technique
In joint venture agreement between the developer and lot owner, the engagement of a real estate consultant is necessary except?
a.
ascertain fair market value of land and evaluate cost estimate of developer
b.
review joint venture agreement
c.
market the finished project
d.
monitor and evaluate developers compliance with his undertaking
If the contract is under Maceda law, a buyer who has paid 2 years installment shall be refunded an amount equivalent to:
a.
60% percent of the total payments made
b.
40% of the total payments made
c.
50% of the total payments made
d.
30% of the total payments made
The rate of return earned by an investor, which does not include allowance for capital recovery is:
a.
Cash flow
b.
Recapture Rate
c.
Interest Rate
d.
Discount Rate
Requires that all person, partnership or corporation to secure an Environment Compliance Certificate prior to undertaking any activity.
a.
PD 1216
b.
PD 957
c.
PD 1517
d.
PD 1586
A subdivision where 9% of the gross area is open spaces with 66 to 100 family lots per hectare is called (ref. PD 1216)
a.
Economic subdivision
b.
Socialized subdivision
c.
Open market subdivision
d.
Low-cost subdivision
Those assets which are not physical and material in nature are called:
a.
intangible assets
b.
tangible assets
c.
fixed assets
d.
liquid assets
Which principle of value best affirms that the maximum value of a property generally cannot exceed the cost of its replacement?
a.
Increasing and decreasing returns
b.
Supply and demand
c.
Substitution
d.
Balance
An authority given by the developer to a broker to look for a supplier of backfilling materials who shall be paid with developed lot is:
a.
Procurement agency
b.
Sales agency
c.
General brokerage
d.
Exchange agency
Under the new BIR ruling, acquired assets of banks regardless of amount are subject to the creditable withholding tax of:
a.
1.5%
b.
3%
c.
5%
d.
6%
The following are determinants of value in appraisals of realty, except:
a.
Contribution
b.
Scarcity
c.
Utility
d.
Demand
Laws shall take effect after 15 days following the completion of their publication in the:
a.
Official Gazette
b.
Manila Bulletin
c.
Philippine Star
d.
All of the Above
Refers to the capacity to satisfy wants, production by labor and their exchangeability:
a.
Economic Utility
b.
Economic Life
c.
Economic Value
d.
Exchange Value
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
Where a conflict arise on the issue of just compensation, the concerned government agency expropriating is required to initially pay an amount equivalent to 100% of the
a.
Offered amount
b.
Assessed Value
c.
Appraised Value
d.
Zonal Value
What are the classification of Properties according to mobility and non-mobility?
a.
Movable or personal and immovable or real property
b.
public domain and private ownership
c.
present property and future property
d.
within the commerce of man and outside the commerce of man
Neighborhoods and zones alike generally exist in one of four life cycle stages; these are –
a.
growth, stability, decline, revitalization
b.
stability, decline, revitalization, expansion
c.
expansion, decline, revitalization, growth
d.
revitalization, expansion, growth, stability
It is a territory or part of a territory lying wholly within the boundaries of another
a.
Enclave
b.
Exclave
c.
Extraterritoriality
d.
Quadripoint
It is an economic concept referring to the amount most likely to be agreed upon by buyers and sellers in an open market transaction where its economic concept reflects the market’s view of the benefits that accrue to one who owns the good or receives the services as of the effective date of valuation.
a.
Cost
b.
Price
c.
Value
Which of the following statements is not a valid criterion for ethical behavior?
a.
Ethics is the name we give to our concern for good behavior. We feel an obligation to consider not only our own personal well-being but also that of others and of human society as a whole.
b.
Ethics is right for right’s sake
c.
A Code of Ethics is subservient to laws and regulations. Therefore, any act that is not against any law is not a violation of ethical practice
d.
Ethics is having a high moral sense. The capacity to perceive what is right measured primarily by the application of the golden rule.
What is the selling price inclusive of VAT of a property being sold by the owner when the value added tax on the selling is P360,000.00?
a.
P3,230,000.00
b.
P3,360,000.00
c.
P3,560,000.00
d.
P3,960,000.00
It is during this life cycle where a neighborhood or zone regains momentum or sees rebirth and occurs because of an area’s proximity to employment or other conveniences within fringe areas around older downtown business districts.
a.
Growth
b.
Decline
c.
Stability
d.
Revitalization
One of the following subjects is not included in the Scope of Examination for Real Estate Consultants?
a.
Fundamentals of Consulting
b.
Land Management Systems and Real Property Laws
c.
Real Estate Finance and Economics
d.
Real Estate Appraisal and Investment Analyses
It is the loss in value resulting from influences external to the property itself.
a.
Obsolescence
b.
Functional Obsolescence
c.
Economic Obsolescence
Excluded from the coverage of CARP.
a.
9%
b.
12%
c.
15%
d.
18% or more slope
X, owner of a 10 door apartment, rented a unit to Y for a period of one (1) year. Under the law of lease, Y, without the consent of X may perform any of the following acts except
a.
sublease the unit
b.
assign his rights
c.
suspend payment if X fails to make the necessary repairs
d.
demand reimbursement constituting one half of the value of the useful Improvement introduced in good faith from X
It is the analysis of an environment of buyers, sellers, landlords, tenants, lessors and lessee which is not site specific and usually relates to a certain property type or geographic area.
a.
Market Segmentation
b.
Market Study
c.
Market Analysis
d.
Feasibility Study
This is the annualized yield rate or rate of return on capital that is generated or capable of being generated within an investment or portfolio over a period of ownership
a.
Overall Capitalization Rate
b.
Discount Rate
c.
Yield Rate
d.
Internal Rate of Return
A former natural-born Filipino citizen can acquire urban land for business purpose not exceeding:
a.
1,000 sq. m.
b.
10,000 sq. m.
c.
5,000 sqm
d.
3 hectares
Mr. Juan dela Cruz bought a parcel of land, paying monthly amortization of P108,200.00. The amortization factor for 5 years at 21% interest is 0.02705. He paid a down-payment of 20% of the contract price, compute the following:
A. The principal obligations on which the monthly obligation is based?
a.
P3,000,000.00
b.
P4,000,000
c.
P5,000,000
d.
P6,000,000
________________ is the amount that has been asked, offered or paid for the item
a.
Cost
b.
Value
c.
Price
d.
Market Value
In mixed-use condominium projects, the master deed may be amended by simple majority of the unit owners. Majority is based on:
a.
Number of Condominium units
b.
Total area of condominium units
c.
Floor area of ownership
d.
Any of the above
Condominium Law
a.
PD 957
b.
RA 6552
c.
RA 4726
d.
RA 9700
In payment of estate tax, an allowed deduction to the gross estate of a decedent is funeral expense which is
a.
5% of gross estate or P200,000.00 whichever is lower
b.
5% of gross estate or P200,000.00 whichever is higher
c.
10% of gross estate or P200,000.00 whichever is lower
d.
10% of gross estate or P200,000.00 whichever is higher
All 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.
Results of the examination shall be released within ______ from the last day of the examination.
a.
5 days
b.
10 days
c.
15 days
d.
20 days
e.
1 month
The bundle of right which is inherent in ownership without any limitations other than those imposed by law or contract is.
a.
Fee estate
b.
Fee simple
c.
Leased fee estate
d.
Freehold
The period over which a building may be profitably used is its
a.
Actual life
b.
Physical life
c.
Useful life
The realty service practice can be performed by juridical persons, except:
a.
All of the above
b.
Real estate broker
c.
Real estate appraiser
d.
Real estate consultant
Urban Development and Housing Act (Lina Law)
a.
RA 1517
b.
RA 7279
c.
RA 8532
d.
CA 141
Under PD 957, total refund to buyer for developer’s failure to complete the development within the reglimentary period is equivalent to:
a.
50% of total payment inclusive of amortization interest less penalty interest
b.
50% of total payment inclusive of amortization interest and penalty interest
c.
100% of total payment inclusive of amortization less penalty interest
d.
100% of total payment less penalty plus legal interest
Excluded from the coverage of CARP. How may percent slope?
a.
Nine percent
b.
Twelve percent
c.
Fifteen percent
d.
Eighteen percent or more
