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THE REAL ESTATE BROKER’S EXAMINATION > ODPELS Real Estate Reviewer - TEST III > Flashcards

ODPELS Real Estate Reviewer - TEST III Flashcards

1
Q
  1. A broker who makes profitable investments with earnest money deposits

a. MUST SHARE HALF OF THE PROFITS WITH THE OWNERS OF THE MONEY HE USED
b. HAS DONE SOMETHING ILLEGAL
c. MAY KEEP ALL THE PROFITS
d. MUST TURN OVER ALL THE PROFITS TO THE OWNERS OF THE MONEY HE USED

A

b. HAS DONE SOMETHING ILLEGAL

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2
Q
  1. A real estate broker must comply with

a. Agency law
b. The RESA law
c. Both A and B
d. Neither A nor B

A

b. The RESA law

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3
Q
  1. Ernest makes an offer on Jose’s property and states that the offer will remain open for 3 days. The day after Ernest made the offer, he decides to withdraw it since Jose has neither rejected nor accepted it.

a. Ernest cannot do this
b. Ernest can do this only if Jose was planning to reject the offer anyway
c. Ernest must give Jose at least half the remaining time to make a decision
d. Ernest may withdraw the offer

A

d. ERNEST MAY WITHDRAW THE OFFER

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4
Q
  1. In order to sell property belonging to a trust for which Joseph is trustee, the trustee must-have

a. A BROKER’S LICENSE
b. A SALESPERSON’S LICENSE
c. A TRUSTOR’S LICENSE
d. NOTA

A

d. NOTA

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5
Q
  1. License law forbids EXCEPT

a. SOLICITING FOR LISTINGS BEFORE ONE IS LICENSED
b. COLLECTING A COMMISSION FROM MORE THAN ONE PARTY TO A TRANSACTION
c. SHOWING PROPERTY TO OTHER LICENSEES.
d. THE PURCHASE BY A BROKE OF PROPERTY THAT HE/SHE HAS LISTED

A

c. SHOWING PROPERTY TO OTHER LICENSEES.

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6
Q
  1. A REALTOR

a. Is a registered trademark
b. Is anyone who has a real estate license
c. Refers to anyone who sells real estate
d. Is a company that sells real estate

A

a. Is a registered trademark

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7
Q
  1. A real estate broker can lose his/he license for which of the following

a. USING MONEY RECEIVED AS COMMISSION TO PAY OFFICE HELP
b. REPRESENTING THE BUYER IN A TRANSACTION
c. REFUSING A LISTING OFFERED TO HIM/HER
d. PAYING A COMMISSION TO A NON-LICENSE PERSON

A

d. PAYING A COMMISSION TO A NON-LICENSE PERSON

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8
Q
  1. Ana, the owner of a property, signs a listing that guarantees the listing broker a commission payment if the sale is affected by any licensed broker. This is

a. An open listing
b. An exclusive agency listing
c. An exclusive right to sell listing
d. Net listing

A

b. An exclusive agency listing

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9
Q
  1. In an agency relationship, the employer is called the

a. Seller
b. Buyer
c. Principal
d. Broker

A

c. Principal

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10
Q
  1. Real estate licenses, once received are

a. Valid indefinitely
b. Inheritable
c. Transferrable
d. Valid for a limited period only

A

d. Valid for a limited period only

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11
Q
  1. In an exclusive right-to-sell listing

a. ONLY ONE BROKER IS AUTHORIZED TO ACT AS THE SELLER’S AGENT
b. IF THE SELLER FINDS THE BUYER, THE SELLER STILL MUST PAY THE BROKER HIS COMMISSION
c. BOTH A AND B
d. NEITHER A NOR B

A

c. BOTH A AND B

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12
Q
  1. To prove that the broker is entitled to a commission

a. He is a licensed broker
b. The price is a fair one
c. All liens on the property have been settled
d. All of the above

A

a. He is a licensed broker

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13
Q
  1. The broker is entitled to a commission EXCEPT

a. HE HAS AUTHORITY TO SELL
b. HE IS THE PROCURING CAUSE
c. THE TRANSACTION IS SOLD AFTER THE PERIOD OF AUTHORITY WITH HOLD OVER CLAUSE
d. THERE IS PERFECTION OF SALE

A

d. THERE IS PERFECTION OF SALE

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14
Q
  1. A broker receives two offers on the same property at the same time. She should

a. Submit both offers to the seller
b. Submit the better offer and improve the other offer
c. Submit the better offer and reject the other one
d. Reject both offers

A

a. Submit both offers to the seller

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15
Q
  1. Since the broker is the seller’s agent, he may

a. Accept an offer on behalf of the seller
b. Solicit offers for the seller’s listed property
c. Try to negotiate better terms before submitting an offer
d. Work to get the buyer the best possible price

A

b. Solicit offers for the seller’s listed property

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16
Q
  1. Real estate commission payments.

a. MUST BE DIVIDED EQUALLY AMONG ALL PARTICIPATING BROKERS
b. MUST BE PAID DIRECTLY TO THE SALESPERSON
c. MUST BE DIVIDED EQUALLY BETWEEN BROKER AND SALESPERSON
d. NOTA

A

d. NOTA

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17
Q
  1. A relationship in which the Agent is place in a position of trust and confidence to the Principal

a. Trustee
b. Fiduciary
c. Full disclosure
d. NOTA

A

b. Fiduciary

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18
Q
  1. The fiduciary relationship between the Sub agent and the Agent.

a. FIDUCIARY
b. FULL DISCLOSURE
c. BROKER
d. SALESPERSON RELATION
e. SUB AGENCY

A

e. SUB AGENCY

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19
Q
  1. Termination of agency agreement can be done by any of the following EXCEPT.

a. FULFILLMENT OF AGREEMENT
b. EXPIRATION
c. MUTUAL AGREEMENT
d. BREACH BY ONE OF THE PARTIES
e. BY OPERATION OF LAW(BANKRUPTCY OF PRINCIPAL)
f. PROPERTY DESTRUCTION OR CONDEMNATION
g. DEATH OR INCAPACITY OF EITHER PARTY
h. TEARING OF THE CONTRACT

A
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20
Q
  1. The following are the duties of the agent to the principal EXCEPT

a. LOYALTY
b. OBEDIENCE
c. ACCOUNTING
d. DISCLOSURE
e. SKILL
f. BRAVERY

A

f. BRAVERY

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21
Q

REAL ESTATE FINANCE AND ECONOMICS
21. A salesperson receives 60% of the total commission on a sale for Php315,000. The salesperson received Php15,120. What was the rate of the commission?

a. 4.8%
b. 6%
c. 6 3⁄4%
d. 8%

A

d. 8%

Sol. 60% of 315K = 189K then 15120/315K

22
Q
  1. The rate of return by an investor which does not include allowance for capital recovery is

a. cash flow
b. Interest Rate
c. recapture rate
d. block rate

A

b. Interest Rate

23
Q
  1. Situation when there are plenty of buyers and less seller

a. Buyer’s Market
b. Open market
c. Seller’s Market
d. Flea market

A

c. Seller’s Market

24
Q
  1. A case in which there are plenty of properties for sale with few buyers.

a. Seller’s Market
b. Rental market
c. Lessor’s Market
d. Buyer’s Market

A

d. Buyer’s Market

25
Q
  1. Ms. SY hired the services of a broker to sell her property. She said she bought it at Php 6,300,000.00 and wants a 30% gross profit. If you were the broker, at how much would you sell the property? If you will be paid a 5% commission, how much
    shall be added to the selling price that the 30% profit of MS. SY will not be affected?

a. Php.7,190,000.00 + Php.359,500.00 = Php7,549,500.00
b. Php.8,290,000.00 + Php.414,500.00 = Php.7,604,500.00
c. Php.8,190,000.00 + Php.409,500.00 = Php.8,599,500.00
d. Php.8,390,000.00 + Php.419,500.00 + Php.3,500,000.00

A

c. Php.8,190,000.00 + Php.409,500.00 = Php.8,599,500.00

26
Q
  1. Mr. Johnny brought 2 hectares of raw land at P50 per square meter. If the cost of money is compounded 100% every 5 years, what will be his cost per square meter after 25 years? What will his gross profit per square meter if he sells the land at P1,900 per square meter after 25 years?

a. P250/sqm
b. P350/sq.m
c. P300/sqm
d. P375/sq.m

A

c. P300/sqm

27
Q
  1. Mr. Juan de la 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
    30% of the contract price, compute the Principal obligation on which the monthly obligations is based?

a. P 4,000,000
b. P 4,150,000
c. P 4,250,000
d. P 4,200,00

A

a. P 4,000,000

Solution : P 108,200.000/.02705 = P 4,000,000

28
Q
  1. Mr. Juan de la Cruz bought a parcel of land,paying monthly amortization ofP108,200.00. The amortization factor for 5years at 21 % interest is 0.02705. he paid adown-payment of 30% of the contract price, compute for contract price

a. P 5,700,000
b. P 5,714,285.71
c. P 5,750,000
d. P 5,702,288.88

A

b. P 5,714,285.71

Sol. 108,200/0.02705 = 4M/70%

29
Q
  1. Mr. Juan de la 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 30% of the contract price, compute the down payment.

a. P 1,815,000
b. P 1,714,285.71
c. P 1,700, 286.72
d. P 1, 19, 287.7530.

A

b. P 1,714,285.71

Sol. 5,714,285.71×30%

30
Q
  1. The rate of return earned by an investor which does not include allowance for capital recovery is:

a. Discount rate
b. Recapture rate
c. Interest Rate
d. Investment rate

A

c. Interest Rate

31
Q
  1. At 18% interest per annum, how much is the interest of P500, 000.00 for 65 days?

a. P15,000.00
b. P16,250.00
c. P16,027.70
d. P90,000.00

A

b. P16,250.00

Sol. = 18%/12mos = 1.5%/mo
= 1.5%/30/day = .05%/day
= .05%/day x 65 days = 3.25%
= 3.25% x 500k
= 16,250

32
Q
  1. The listing and selling brokers in real estate transactions split the commission equally. If the commission rate is 6% and the selling broker received P36, 000.00. What is the selling price of the property?

a. P 3,600,000.00
b. P 800,000.00
c. P 600,000.00
d. P1,200,000.00

A

d. P1,200,000.00

Sol. = 36k x 2 = 72k / 6% =1,200,000

33
Q
  1. The type of loan wherein the lender has partial or complete control over the project and the income for a certain period, part or all of which is assigned to him to amortize the project, is:

a. Straight loan
b. Turn-key-loan
c. Flat loan
d. Amortization Loan

A

d. Amortization Loan

34
Q
  1. The sellers realize a 30% gross profit over his cost. If the property is sold atP1,950,000.00, the cost is:

a. P1,365,000.00
b. P1,500,000.00
c. P1,650,000.00
d. P1,350,000.00

A

b. P1,500,000.00

Sol. SP - P1,950,000
Gross Profit - 30%
Find Cost:
= P1,950,000 / 130%
= P1,500,000

35
Q
  1. The owner wants net proceeds of P1,750,000.00 exclusive of capital gains tax, documentary stamp tax and 5 broker’s commission. How much would be the selling price so that the broker can maintain his 5% commission?

a. P1,968,750.00
b. P2,000,000.00
c. P1,980,000.00
d. P2,200,000.00

A

b. P2,000,000.00

Sol. CG - 6%, DST - 1.5%, Comm - 5% = 12.5%
SP = P1,750,000 / 87.5% = 2,000,000.00

36
Q
  1. The use of borrowed funds to increase purchasing power is ideally to increase the profitability of an investment and is termed

a. Limited Liability
b. Leverage
c. Debt Coverage
d. Interim Financing

A

b. Leverage

37
Q
  1. How much is the 5% commission of the broker net of 10% creditable withholding tax if he sold a subdivision lot valued at P3,300,000.00 inclusive of VAT?

a. P135,000.00
b. P133,650.00
c. P148,500.00
d. P150,000.00

A

Sol. SP - P3,300,000.00
VAT (3,300,000x3/28) 353,571.00
Net 2,946,429.00

    Comm:
    ( 5%).                                           147,321.00
     less: cwt 10%.                             14,732.00
     Net Comm                                 132,588.85
38
Q
  1. The income approach in estimating the value of an investment property is an application of the principle of

a. Substitution
b.Contribution
c. Progression
d. Anticipation

A

d. Anticipation

39
Q
  1. Is the ratio that expresses the relationship between gross income and the sales price of the property.

a. Capitalization
b. Recapture
c. Gross Income Multiplier
d. Effective Gross Income

A

c. Gross Income Multiplier

40
Q
  1. A loss in value in any cause is a common definition of:

a. Effective Age
b. Depreciation
c. Functional Obsolescence
d. Economic Obsolescence

A

b. Depreciation

41
Q
  1. The TCT has an annotation that says “subject Rule 74, Section 4 of the Rules of Court ‟, it means that the property is an inherited property and any heir unduly deprived of his lawful participation in the estate has __years to assert his rights over said property.

a. 2 years
b. 5 years
c. 4 years
d. 10 years

A

a. 2 years

42
Q
  1. The value placed on taxable property by the assessor for ad valorem tax purposes is:

a. Market value
b. Assessment Value
c. Appraised value
d. Assessed value

A

b. Assessment Value

43
Q
  1. In the computation of depreciation of real property, the method that is widely used by practitioners is the

a. Straight Line Method
b. Diminishing return method
c. Declining balance method
d. Cost benefit method

A

a. Straight Line Method

44
Q
  1. The study of current supply and demand conditions in a particular area for a specific type of property is:

a. Real estate appraising
b. Cash Flow Analysis
c. Markey Analysis
d. Income Projection

A

c. Markey Analysis

45
Q
  1. The rate of return earned by an investor which does not include allowance for capital recovery is:

a. Recapture
b. Discount Rate
c. Cash Flow
d. Interest Rate

A

d. Interest Rate

46
Q
  1. When the loan is fully amortized by equal monthly payments, the amount applied to the principal :

a. And interest remains constant
b. Decreases while interest payment increases
c. Increases while interest payment decreases
d. Increase by a constant amount

A

c. Increases while interest payment decreases

47
Q
  1. Among the listed land classification, which is devoted principally for profit

a. Residential
b. Commercial
c. Industrial
d. Agricultural

A

b. Commercial

48
Q
  1. In the Philippine Laws, the equivalent of real estate is:
    a. Chattel
    b. Immovable Property
    c. Realty
    d. Personality
A

b. Immovable Property

49
Q
  1. Mr. Torres is an accredited broker with Tri-Land Development Corp. enjoying a commission rate of 5% He sold a house and lot in San Fernando, Pampanga in the amount of Pesos: P10, 000,000.00 with 30% full down payment. A full down payment entitles the buyer a 10% discount on the actual amount paid. The buyer requested that his discount be applied to the downpayment. The balance is payable in 5 years, in house financing at 18% interest. Compute for the net down payment to be paid by the buyer?

a. Php 2,688,000.00
b. Php 2,352,000.00
c. Php 2,700,000.00
d. Php 2,680,000.00

A

c. Php 2,700,000.00

Sol.
SP. - P10,000,000.00
30% DP - 3,000,000.00
Net 7,000,000.00
10% Disc
(3m x 10) - 300,000.00

Net DP (3m-300k) = 2.7m

or
10m x30% = 3m -10% = 2.7m

50
Q
  1. In an exclusive authority to sell which he gives you for a period of Ninety days, your client seller wants a 15 million asking price for his house. Upon appraisal, you realize that the price is very reasonable and fair to both seller and eventually buyer. Knowing through experience that the buyer always gives counter offers, how much should you quote when offering the property?

a. P17 million
b. P15 million
c. P16 million
d. P18 million

A

b. P15 million

THE REAL ESTATE BROKER’S EXAMINATION (44 decks)

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