REBLEX 01 2023 / Mock-Up Exam 12 (99 pts) Flashcards by Jane & Leo Censon

A form of common ownership which involves a corporation where each unit owner owns shares together with independent ownership of a titled unit.

a.
Condominium

b.
Joint use

c.
Cooperative

d.
Townhome

a.
Condominium

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Which of the following cannot be issued condominium certificates of titles:

a.
One-level row houses

b.
Industrial warehouses

c.
Two-level row houses

d.
Subdivision lots

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Specific materials that, by their presence or proximity, may have adverse effect

a.
Hazardous and toxic substances

b.
Petroleum and mineral

c.
Land and Building

d.
People and plants

a.
Hazardous and toxic substances

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A street that leads into a bell-shaped end.

a.
Dead-end

b.
Driveway

c.
Cul-de-sac

d.
Provisional street

c.
Cul-de-sac

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The creditable withholding tax rate in the sale of a real estate dealer of a lot priced at P220,000.00 is

a.
1.5%.

b.
7.5 %

c.
3.0%

d.
2.5%

a.
1.5%.

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A lot in which the front and rear sides are fronting a street.

a.
Corner lot

b.
Flag lot

c.
Corner lot

d.
Through lot

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The practice of appraising multiple properties as of a given date by assessors -

a.
Mass appraisal

b.
Multiple Regression

c.
Valuation process

d.
Grid analysis

a.
Mass appraisal

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Under TRAIN law, Lease of residential units where gross receipts from rentals exceed per month per unit shall be subject to VAT if the aggregate annual gross receipts exceed P3M, otherwise it will be subject t0 percentage tax.

a.
P 10,000.

b.
P 12,000.

c.
P 12,500.

d.
P 15,000.

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The financial computation which derives the amount needed to be paid annually in order to reach a targeted future nest egg for your retirement -

a.
Discounting

b.
Present value of annuity

c.
Sinking fund

d.
Amortization

c.
Sinking fund

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The financial computation which derives the amount needed to be paid annually in order to reach a targeted future nest egg for your retirement -

a.
Discounting

b.
Present value of annuity

c.
Sinking fund

d.
Amortization

c.
Sinking fund

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The financial computation which derives how much to pay periodically in order to pay off a loan today -

a.
Discounting

b.
Present value of annuity

c.
Sinking fund

d.
Amortization

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The policy-making body of the DHSUD is

a.
National Human Settlements Board

b.
Human Settlements Development Coordinating Council

c.
HLURB

d.
National Economic Development Authority

e.
Office of the President

a.
National Human Settlements Board

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The sale of the following is not exempt from VAT

a.
Sale of agricultural and marine products

b.
Services that are subject to percentage tax

c.
Revenue of hospital and educational services

d.
Sales of residential condos by developers

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A lot that does not have a frontage and is accessed only through a driveway.

a.
Interior lot

b.
Corner lot

c.
Through lot

d.
Inside lot

a.
Interior lot

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The articles of incorporation of homeowners association is registered with:

a.
SEC

b.
HLURB

c.
Home Guaranty Corporation

d.
SEC or DHSUD

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A lot with 2 perpendicular sides fronting a street.

a.
Key Lot

b.
Corner-Through Lot

c.
Corner Lot

d.
Flag Lot

c.
Corner Lot

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Who will you hire to prepare to prepare the soil investigation reports for the project?

a.
Land surveyors

b.
Geodetic engineers

c.
Geological engineers

d.
Urban planners

b.
Geodetic engineers

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The condominium buyer under a contract to sell who is delinquent in the payment of his installments after 30 months will suffer the consequence of

a.
Rescission of his contract to sell and forfeiture of all payments

b.
Foreclosure and auction of the condominium unit

c.
Blacklisting by the real estate developers association

d.
Rescission and forfeiture based on RA 6552

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The rate used in converting income to value sometimes called overall rate.

a.
capitalization rate

b.
recapture rate

c.
interest rate

d.
investment rate

a.
capitalization rate

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The condominium concept of development is legally mandated by the following law

a.
PD 957

b.
PD 1216

c.
R.A. 4726.

d.
R.A. 6552

c.
R.A. 4726.

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The property owner wishes to subdivide a property into a residential subdivision. He must secure approval and development permit from –

a.
Department of Human Settlements and Urban Development

b.
HLURB

c.
Local government

d.
All of the above are true.

c.
Local government

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Today, the functions of the former HLURB are now handled by the

a.
HSAC

b.
PRC

c.
NHA

d.
SEC

a.
HSAC

The HUMAN SETTLEMENTS ADJUDICATION COMMISSION (HSAC) was reconstituted from the Housing and Land Use Regulatory Board (HLURB) by virtue of Republic Act No. 11201, as a purely quasi-judicial agency. It is mandated to adjudicate, among others, disputes relating to real estate development, homeowners association, and appeals from decisions of local and regional planning and zoning bodies.

In the performance of its functions, the HSAC is guided by the Constitutional provision that affords all persons the right to a speedy disposition of their cases before all judicial, quasi-judicial or administrative bodies.

The HSAC is attached to the Department of Human Settlements and Urban Development for policy, planning and program coordination only.

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To check the property’s boundaries, the following is absolutely essential –

a.
Plot the technical description.

b.
Require a property boundary verification survey.

c.
Obtain an affidavit from the Owner,

d.
Take photographs of the property boundary.

b.
Require a property boundary verification survey.

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The following types of taxes apply to vatable real estate transactions, except –

a.
Value-added tax

b.
Creditable income tax

c.
Income tax

d.
Percentage tax

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RA 11521, a law amending the AMLA Law, effective Jan. 30, 2021, included as covered persons the following a. Real estate brokers and developers b. Accountants and lawyers c. Engineers and architects d. Bankers

a. Real estate brokers and developers

Licensing of memorial park/cemetery projects shall be granted when the development has reached at least %. a. 10% b. 15% c. 20%, d. 25%

c. 20%,

Licensing of memorial park/cemetery projects shall be granted when the development has reached at least %. a. 10% b. 15% c. 20%, d. 25%

c. 20%,

Under Maceda Law, a buyer who is paying installment on his mortgage with the bank can get refund from the bank if he becomes delinquent. a. 50% b. 90% c. 60% d. no

d. no

The term "metric" as used in socioeconomic studies is -- a. A unit of measure b. The distance from one place to another c. The quality of a particular component in the society d. A description of a good aspect in society

a. A unit of measure

A repository in the columbarium for storing bone remains a. Ossuary. b. Ash niche c. Vault d. None of the above

a. Ossuary.

Most important document to be checked before buying a subdivision lot: a. Development permit b. Map c. License to sell d. LMB approval

c. License to sell

Before the DHSUD was created, many of its functions were handled by the a. HLURB b. HSAC c. NHA d. HDMF

a. HLURB

The regulatory arm or bureau of DHSUD is in charge of the following a. Enforcing compliance with BP 220 standards b. Establishing new sites for disaster housing c. Reviewing land use and zoning ordinances d. Establishing the registry of homeowners associations

a. Enforcing compliance with BP 220 standards

Under CREATE law, small and medium corporations with net taxable income below P5M and total assets not exceeding (excluding land) can avail of the 20% income tax rate. a. Php 100M b. Php 50M c. PhP 25M d. Php 5M

a. Php 100M

For housing loans, which financial factors are important - a. Present value of annuity factor and amortization factor b. Discounting factor and present value of annuity c. Sinking fund factor and amortization factor d. Annuity factor and amortization factor

a. Present value of annuity factor and amortization factor

The third tax reform package of the Duterte Government pertains to -- a. Property valuation b. Expanding retail trade for foreign investors c. Further reducing income taxes d. Increasing gold reserves

a. Property valuation

If the project site for a proposed high-rise building is located near an airport, the building height will be regulated by a. FAR limit for buildings near airports b. Requirements of the CAAP c. National building code d. Airline association

b. Requirements of the CAAP

A Columbarium project must have at least parking slots or 1 per 50 vaults. a. 100 b. 75 c. 50 d. 25

a. 100

Developers of subdivisions and condominium projects must register their projects and secure development permits and licenses to sell as required by a. PD 957. b. PD 1216 c. R.A. 4726 d. R.A. 6552

a. PD 957.

Which is not part of the life cycle of a community a. Growth b. Stability c. Inflation d. Decline

c. Inflation

The site development cost estimate does not include the following a. Volume and cost of imported filling materials b. Waterproofing and weatherproofing c. Drainage utilities d. Electrical works

b. Waterproofing and weatherproofing

ARTA required all LGUs to establish a business one-stop shop on or before a. June 2021 b. 5 years after enactment of the law c. December 2021 d. 2 years from approval of the IRR

a. June 2021

Under ARTA rules, one of these criteria does not qualify for auto- approval of applications with government agencies a. Failure to register your company under ARTA b. Failure to act on the application within the prescribed time frame c. Submission of all required documents d. Payment of all required fees

a. Failure to register your company under ARTA

The Overall Cap Rate on an investment was 10%, the Purchase Price was P10M , the Loan was 75% of the Purchase Price (P 7.5M), and the Mortgage rate was 8%. How much is the corresponding Equity Capitalization Rate? a. 10% b. 16% c. 18% d. 12%

b. 16% The first step is to calculate the net operating income (NOI), which is the income generated by the property after deducting operating expenses. We can use the cap rate and purchase price to find the NOI: NOI = Cap Rate x Purchase Price NOI = 10% x P10M NOI = P1M Next, we need to calculate the cost of the loan, which is the interest paid on the mortgage. The mortgage rate is 8%, and the loan amount is P7.5M, so the annual interest cost is: Interest Cost = Mortgage Rate x Loan Amount Interest Cost = 8% x P7.5M Interest Cost = P600,000 The equity capitalization rate (ECR) is the rate of return earned by the equity investors, which is calculated as the NOI minus the interest cost divided by the equity invested: ECR = (NOI - Interest Cost) / Equity Invested The equity invested is the purchase price minus the loan amount: Equity Invested = Purchase Price - Loan Amount Equity Invested = P10M - P7.5M Equity Invested = P2.5M Substituting the values we calculated, we get: ECR = (P1M - P600,000) / P2.5M ECR = P400,000 / P2.5M ECR = 16%

The maximum amount of family home allowed as deduction from the estate of a decedent. a. P500,000.00 b. P10,000,000. c. P2,000,000 d. P750,000.00

b. P10,000,000

This tax is not imposed by the Bureau of Internal Revenue a. Income tax b. Value-added tax c. Transfer tax d. Documentary stamps tax

c. Transfer tax

The following resolution/s of HLURB governs memorial park projects a. HLURB Res 681 b. HLURB Res 729 c. HLURB Res 747 d. All of the abov

d. All of the above

A lot with single frontage, all sides bounded by a neighboring lot. a. Regular lot b. Interior lot c. Standard lot d. Inside lot

a. Regular lot

In market research, the following source is considered secondary data - a. Survey of the property by the geodetic engineer b. Statistics from PSA c. Photos of the project site d. Interviews with prospective buyers

b. Statistics from PSA

Under the CREATE law, the minimum corporate income tax (MCIT) from July 1, 2020 to June 23, 2023, shall be - a. 1% b. 2% c. 3% d. 12%

a. 1%

For the project to be technically feasible, the site should be analyzed for a. Accessibility b. Proximity to the town center c. Year-round good weather conditions d. Market value of the property

a. Accessibility

The property intended for a residential subdivision is currently classified "Agricu"tural" because it is used as a poultry farm. Which of the following is true. a. The property can not be used for residential homes unless converted into residential zoning. b. The property can still be used for residential homes, subject to restrictions. c. The poultry farm must be removed before the property can be allowed to have residences. d. All of the above are true.

b. The property can still be used for residential homes, subject to restrictions.

The condominium buyer whose unit has been mortgaged to a bank who is delinquent in paying the amortization will suffer the consequence of a. Automatic rescission of his contract to sell and forfeiture of all payments b. Blacklisting by the bankers association c. Rescission and forfeiture based on RA 6552 d. Foreclosure and auction of the condominium unit.

d. Foreclosure and auction of the condomin

In appraising, the process of converting net income to value of the property. a. valuation b. capitalization c. appraisal d. discounting

b. capitalization

What is the probable market value of an apartment which is expected to yield Php 1M annual income if the capitalization rate is 5% a. P 16M b. P 24M c. P 20M d. P 18 M

c. P 20M 5%/100% = .05 1,000,000 / .05 = 20M

The basic equation applicable to the balance sheet - a. Asset = Liabilities + Net worth b. Asset + Net Worth = Liabilities c. Asset + Liabilities = Net worth d. Net worth = Liabilities - Asset

a. Asset = Liabilities + Net worth Asset = Liabilities - Capital

Jurisdiction for adjudication of buyers' complaints against subdivision developers is with the: a. Bureau of Trade Regulation and Consumer Protection b. HUDCC c. Regional Trial Court d. DHSUD

d. DHSUD

Any particular lot that commands a higher value because of its location. a. Prime lot b. High-end lot c. Through lot d. Key lot

a. Prime lot

A type of market study that focuses on a specific real estate product such as a townhouse a. Market research b. Marketability study c. Marketing strategy study d. Market analysis

b. Marketability study

In order to declare a project technically feasible, the proposed improvements should be analyzed for a. Affordability b. Constructability c. Liens and encumbrances d. Authenticity

b. Constructability

Subdivision planning that is recti-linear, blocks, lots and streets arrayed in a rectangular pattern. a. Contour planning b. Modern planning c. Gridiron planning d. Square planning

c. Gridiron planning

The minimum size of a lot in an agricultural subdivisions shall be a. 500 sqm b. 750 sqm c. 1000 sqm d. 1500 sqm

c. 1000 sqm

Under ARTA. which permits/documents are not included in the single or unified application form? a. ECC b. Fire safety inspection certificate c. Building clearance d. Zoning clearance

a. ECC The Anti-Red Tape Act in the Philippines

Under ARTA. which permits/documents are not included in the single or unified application form? a. ECC b. Fire safety inspection certificate c. Building clearance d. Zoning clearance

a. ECC The Anti-Red Tape Act in the Philippines

The following tax is imposed by the Bureau of Internal Revenue: a. Transfer tax b. Capital gains tax c. Realty tax d. Privilege tax

b. Capital gains tax

Under Maceda Law, a buyer of a residential condominium unit on installment who has paid more than 2 years can get a maximum refund of -- a. 50 % b. 90 % c. 60 % d. 60 %

b. 90 %

This type of value applies in valuation situation where an entire business is being sold to another owner -- a. Going concern value b. Investment value c. Market Value d. Insurance Value

a. Going concern value

If a developer has several ongoing projects in the same year, which is the following statements is correct -- a. The prevailing tax rate is applied against the net taxable income of each project. b. Consolidate all net taxable income from all projects and deduct overhead expenses to determine overall taxable income. c. Exclude the computed net operating income of a project which is not yet sold out. d. Compute income tax based on actual cash flows.

b. Consolidate all net taxable income from all projects and deduct overhead expenses to determine overall taxable income.

Under ARTA rules, processing time for permits involving technical documents shall not exceed a. 20 days b. 7 days c. 3 days d. 10 days

a. 20 days

Not more than % of the lot area in a farmlot of an agricultural subdivision can be occupied by a house. a. 15 % b. 20 % c. 25 %. d. 30 %

c. 25 %.

The hotel owner has fixed daily expense of P 20,000. The average room rate is P 3,000 per day. If the hotel has 40 rooms, what occupancy rate will allow him to break-even? a. 17% b. 20% c. 24% d. 18.3%

a. 17% = 3,000 x 40 rooms = 120000 =20K (Expense) / 120,000 = .17

A common restriction in the resale of condominium units a. Resale must be approved by the HLURB b. Resale subject to approval by the local government assessor c. Resale is prohibited for at least 5 years d. Resale subject to right of first refusal by other condominium unit owners

d. Resale subject to right of first refusal by other condominium unit owners

For the exemption on the payment of capital gains on the sale of a residential home by a private owner to be valid, within how many months after the sale should he use the proceeds to purchase a new home? a. 9 months b. 18 months c. 24 months d. 12 months

b. 18 months

Under TRAIN law, sale of real properties not primarily held for sale to customers in the ordinary course of business as adjusted to in 2011 using 2010 CPI is exempt from VAT. a. P 1,919,500. b. P 3,199,200.. c. P 1,500,000. d. P 2,500.000.

b. P 3,199,200..

Loss in the value of a property from all sources or due to any cause. a. functional obsolescence b. economic obsolescence c. depreciation d. physical wear and tear

c. depreciation

The performance bond for a subdivision project may be in the form of a surety bond equivalent to: a. 10% of development b. 40% of development cost c. 20% of development cost d. None of the above

c. 20% of development cost

VAT returns (form 2550M) containing the amount of net output tax payable must be filed a. Monthly b. Quarterly c. Annually d. None of the above

a. Monthly

The estate tax return shall be filed with the BIR within from death of the decedent: a. 60 days b. 120 days c. 90 days d. one year

d. one year

The subject property is the residence of informal settlers. The following suggestion is good practice. a. Report the matter to the police so they can be removed due to trespassing. b. Hire a security agency to eject them. c. Fence the property immediately to avoid further intrusions. d. Develop a plan to relocate informal settlers.

d. Develop a plan to relocate informal settlers

The DHSUD bureau in charge of homeowners association does not handle the following function a. Auditing the financial statements of homeowners associations b. Establishing procedures to resolve disputes in HOAs c. Registration of the homeowners associations in a national registry d. Imposing fines upon HOAs who violate their bylaws

a. Auditing the financial statements of homeowners associations

The property owner wishes to develop a condominium project. He must secure approval and development permit from -- a. Department of Human Settlements and Urban Development b. HLURB c. Local government d. All of the above are true.

a. Department of Human Settlements and Urban Development

The "CREATE" law a. RA 11534 b. RA 11057 c. RA 10963 d. RA 9856

a. RA 11534 The Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act is the largest fiscal stimulus for businesses in our recent history.

The Value of property to a particular investor, or a class of investors -- a. Investment Value b. Special value c. Fair Value d. Market Value

b. Special value

Net worth is - a. How much are the net assets after deducting capital. b. The sum of capital and accumulated earnings. c. The amount left after deducting earnings from assets. d. The value of the company, excluding its capital.

b. The sum of capital and accumulated earnings.

Subdivision planning that arranges all elements to closely fit into the terrain of the land. a. Contour planning b. Modern planning c. Gridiron planning d. Square planning

a. Contour planning

As a real estate service practitioner, if your total gross receipts in one year is below this amount, you can apply to be a non-VAT entity a. P 1,500,000. b. P 2,500,000. c. P 3,199,200. d. P 3,000,000.

d. P 3,000,000.

A parcel of land subdivided into smaller lots properly planned with streets and open spaces is a. Regular subdivision b. Complex subdivision c. Consolidation-subdivision d. Simple subdivision

b. Complex subdivision

Columbarium projects may be located in any of the following, except a. Areas zoned for columbarium b. Institutional zones designated for religious structures c. Agricultural areas. d. Commercial zone C2

c. Agricultural areas.

Memorial parks and cemeteries may NOT be located at a. Areas zoned for memorial parks/cemeteries b. Areas adjacent to an existing cemetery/memorial park c. Areas zoned within the SAFDZ d. Areas at least 100m away from residential, commercial, industrial or institutional use

c. Areas zoned within the SAFDZ Strategic Agriculture and Fisheries Development Zones (SAFDZ)

The required number of votes of registered owners to authorize a condominium corporation to sell, or otherwise dispose of the common areas in a condominium project is: a. Two-thirds b. Unanimous c. Three-fourths d. Simple majority

d. Simple majority

Controlling the character and use of property is called a. Zoning b. Zoning ordinance c. Writ of execution d. Procuring cause

a. Zoning

At least % of the land area for a memorial park must have "lawn" "ots to preserve the natural character of the project. a. 100 b. 75 c. 50 d. 25

c. 50

In mixed use condominium project, the master deed may be amended by simple majority of 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

c. Floor area of ownership

Age in years, indicated by the condition and utility of a structure. a. effective age b. chronological age c. actual age d. observed age

a. effective age

Which is not part of the community's social concerns? a. Literacy b. Drug abuse and criminality c. Health issues d. Peace and order

a. Literacy

The objectives of the market feasibility analysis excludes -- a. Determine market need or demand for the proposed real estate product b. Check whether there is existing supply of similar products c. Identifying potential buyers d. Determining the profitability of the project

d. Determining the profitability of the projec

What is the work of a geodetic engineer? a. Land surveying b. Preparing the technical description of a property c. Undertaking monumentation d. All of the above

d. All of the above

The difference between the present worth of improvements and the reproduction or replacement cost new, both measured on the appraisal date. a. accrued depreciation b. book depreciation c. deferred maintenance d. unearned increment

a. accrued depreciation

In the discounted cash flow methods, which financial factors are important - a. Compounding factor and annuity factor b. Discounting factor and present value of annuity c. Sinking fund factor and amortization factor d. Annuity factor and amortization factor

b. Discounting factor and present value of annuity

The sale and transfer of title from a real estate dealer to a buyer of a house and lot at P2,000,000.00 is subject to the following EXCEPT: a. Creditable withholding tax b. Transfer and registration fees. c. Expanded value added tax d. Capital gains tax

d. Capital gains tax

In socioeconomic analysis, the following factor is an important consideration - a. Situation before and after the project implementation b. Ability of the government to support the developer c. Regulations pertaining to land reform d. Environmental safety

a. Situation before and after the project implementation

A revenue-raising procedure, based on the assessed value of property - a. Ad valorem property taxation b. Net income taxation c. Gross income taxation d. VAT taxation

a. Ad valorem property taxation