Module 1 Exam
Module 1 Exam
Module 1 Exam
7. Refers to a duly registered and licensed natural person who, for a professional
fee, compensation or other valuable consideration, offers or renders
professional advice and judgment on : (i) the acquisition, enhancement,
preservation, utilization or disposition of lands or improvements thereon; and
(ii) the conception, planning, management and development of real estate
projects
a. Real estate consultant
b. Real estate appraiser
c. Real estate broker
d. Real estate salesman
8. Refers to a person who conducts valuation, one who possesses the necessary
qualifications, license, ability and experience to execute or direct the
valuation of real property
a. Assessor
b. Appraiser
c. Consultant
d. Broker
9.
a.
b.
c.
d.
14.The passing rate is 75% in all subjects with no rating below ________ in any
subject.
a. 60%
b. 50%
c. 70%
d. 80%
15.A candidate must attend seminar and review and be issued a certification of
completion of 120 unit hours by a PRC accredited ________________.
a. trainer
b. service provider
c. lecturer
d. training provider
16.Acronym for accredited and integrated professional organization by PRC.
a. IAPO
b. AIPO
c. APPO
d. IAPPO
17.In order to be admitted to the licensure examination for real estate service, a
candidate at the time of filing his application shall establish to the
satisfaction of the Board that he possesses the following qualifications except
a. Citizen of the Philippines
b. Good moral character
c. must not have been convicted of any crime involving moral turpitude
d. undertaken on the job training
18.No partnership or corporation shall engage in the business of real estate
service unless it is duly registered with the SEC and persons authorized to act
for the partnership or corporation are all ________________ real estate brokers,
appraisers or consultants as the case may be.
a. Registered and licensed
b. Registered
c. Recorded and listed
d. Registered and listed
19.Subject to the provisions of the Labor Code, a corporation or partnership may
hire the services of a registered and licensed real estate appraisers on
commission basis to perform real estate services and the real estate
appraiser shall be deemed _______________.
a. Independent contractor
b. Dependent contractor
c. Full-time employee
d. Part-time employee
20.The appraisers professional identification card from PRC shall be renewed
every :
a. 3 years
b. 2 years
c. yearly
d. 5 years
21.The law regulating the practice of Real Estate Service in the Philippines.
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a.
b.
c.
d.
22.The symbol in the official seal of the PRBRES which signifies the vital role of
the real estate service practitioners in the social, political, economical
development and progress of the Philippines.
a. Land
b. Rising sun
c. Sun and ras
d. Gold
23.The symbol in the official seal which signifies ethical standards and
prosperity.
a. Land
b. Rising sun
c. Sun &ras
d. Gold
24.Real
a. Real
b. Real
c. Real
d. Real
Estate
estate
estate
estate
estate
c. 3
d. 5
29.Not included in the composition of the official seal of the Professional
Regulatory Board of Real Estate Service (PRBRES) :
a. Land, structures, trees & fruits; green lines, rising sun
b. Red, white, blue, yellow, gold
c. Blue, green sun & rays, map of the Philippines
d. Building, blue, green, violet
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
other and of human society as a whole.
b. Ethics is right for rights 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.
48.Three of the four enumerated acts of a broker are considered unethical.
Which act is not unethical?
a. Encouraging the parties to sale to indicate a consideration lower than the
actual selling price.
b. Keeping a special bank account, separate and distinct from his own funds for
all monies received in trust for other persons such as clients money and
similar items.
c. Disclosing his clients confidential personal information to a fellow broker in
order to facilitate the sale of his clients property
d. Delaying submission of a formal offer that he had received from a prospective
buyer in the hope of securing a higher offer.
49.A real estate broker who accepts a listing from a client follows several ethical
guidelines in his relationship with the client. Which one of the following is not
always applicable?
a. He should pledge himself with utmost fidelity and good faith to protect and
promote the interest of his client
b. He should undertake to prepare an accurate appraisal report on the property
subject of the listing, as part of his service to his client
c. He should endeavor to be well informed of current legislation, policies and
programs of the government including proposed legislation, which may effect
the interest of his client
d. He should endeavor to make his client and customer conclude a fair contract
advantageous to both.
50.A broker has secured a written offer to purchase a commercial property at a
price of 60 million together with a check for thirty percent down payment. He
is certain that the seller will accept the offer. Before he can present the offer
to the seller, he receives unverified information that a planned government
infrastructure project will eat up a portion of the property. Several steps have
to be taken by the broker to save the sale and protect the interest to all
parties concerned. Which of the following is inappropriate at the moment?
a. Secure detailed information from the proper government agencies as to the
actual scope of the project
b. Present the offer to the seller for signing and acceptance to ensure the
consummation of the sale
c. Inform the prospective buyer about the forthcoming government project and
the possible effects it will have on the property
d. Inform the seller about the forthcoming government project and the possible
effects it will have on the property
51.To the ethical broker, the principle of full disclosure dictates that vital
information that can affect the property of the transaction should be
disclosed and explained to his client. Which one of the following is contrary
to an ethical disclosure?
a. Changes or planned changes in zoning affecting the property
b. Your opinion of future land values in the vicinity of the property
c. Details of the contract
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55.The real estate broker shall always observe in their dealings and relation with
clients, fellow practitioners the principle of Treat others as you like them to
treat you, referred to as:
a. Code of Ethics
b. Bundle of rights
c. The Golden Rule
d. The commandment of real estate practice
56.Which of the following newspaper line ads is blatantly unethical?
a. HOUSE ON A VERY QUIET NEIGHBORHOOD
b. THE VALUE OF THIS PROPERTY WILL DOUBLE IN ONE YEAR
c. FLOOD-FREE STREET
d. BEAUTIFUL VIEW
57.Under the Code of Ethics, the following are listed as unethical except :
a. negotiate a property listed directly with the owner if the listing broker goes
out of town
b. should cooperate with other brokers on property listed provided they are
members of any national real estate brokers association
c. use the services of a salesman of another broker provided the salesman is
paid and agreed upon commission
d. willingly share with other brokers his lessons and experiences from his study
58.Your former boss asked you to appraise his real estate property.
As a
licensed appraiser observing the code of ethics, what is the most appropriate
step to do?
a. Accept the project right away
b. Accept the project but include a disclosure in your appraisal report
c. Let another appraiser do the appraisal report
d. Do not accept the project at all
59.You have been tasked to be one of the Board examiners. One of your relative
wants to join a review center and eventually take the exam. What is the
appropriate action to do?
a. Encourage the relative to take the exam and give him reviewers
b. Inhibit your self from being a Board examiner
c. Do not let your relative take the exam
d. Do not do anything
60.An appraiser should observe the following professional ethics except :
a. Constitute a professional service on his counsel and advise for which he
should make a fair and reasonable charge.
b. Render an opinion with a careful and thorough analysis and interpretation of
all factors affecting the value of the property
c. Undertake to make an appraisal or render an opinion that is outside the field
of his experience and competence
d. None of the above
61.People seek an appraisal in order to
a. Get an independent estimate of value
b. Get a more reliable estimate of value other than their own
c. Both of the above
d. Neither of the above
62.The following statements are true when applied to Valuation Standards
except
a. Standards are statements of recognized principles and concepts
b. Standards prescribe specific methods of valuation for different purposes
c. Standards are statement of best practice in procurement and reporting
d. Standards are statements of accepted definitions
63.A valuation review that is limited to the data presented In the report, which
may or may not be independently confirmed.
a. Technical review
b. Field review
c. Desk review
d. Administrative review
64.An amount above the Market Value that reflects particular attributes of an
asset that are only of value to a Specific Purchaser.
a. Plottage value
b. Investment value
c. Value in use
d. Special value
65.An additional element of value created by the combination of two or more
interests where the value of the combined interest is worth more than the
sum of the original interests.
a. Fair value
b. Special value
c. Synergistic value
d. Value as a going concern
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73.IFRSs adopt two models for the recognition of property assets in the balance
sheet, namely:
a. a fair value model and market value model
b. an investment model and market model
c. a cost model, and a fair value model
d. a market value model and historic model
74.The central concern of appraising is
a. Fee
b. Price
c. Cost
d. Value
75.The purpose of an appraisal assignment is usually to estimate which type of
value
a. Investment value
b. Market value
c. Value in use
d. Replacement value
76.Land is unique because
a. No two parcels have the same soil composition
b. No two parcels can occupy the same space on the face of the earth
c. No two parcels have the same owner
d. No two parcels have the same tax levies
77.An appraisal of real estate
a. Guarantees its value
b. Assures its value
c. Determine its value
d. Estimates its value
78.Knowledge of land value is required for all of the following except
a. Fire insurance
b. Ground lease
c. Property taxation
d. Grazing lease
79.Price and value are
a. Not necessarily the same
b. Synonymous
c. Different, depending on financing terms
d. Close together in an inactive market
80._____________ is the amount that has been asked, offered or paid for the item
a. Cost
b. Value
c. Price
d. Market value
81.The value of real estate is determined in the market mainly by its
a. Price
b. Productivity
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c. Mortgage
d. Size
82.Value is a word of many meaning, but the general meaning is
a. Any price something is sold
b. Worth of something to someone for some purpose
c. The future worth of an object
d. None of the above
83.The transaction price of a property is its
a. Sales price
b. Market value
c. Insurance value
d. Asking price
84.Those assets which are physical and material in nature
a. Intangible
b. Fixed
c. Tangible
d. Liquid
85.Cost and value are most likely to be similar under which of the following
conditions?
a. The property has no deferred maintenance
b. The property is new
c. The property is a special purpose property
d. The property is small
86.Which of the following explanations best describe the term market price?
a. The amount of money actually paid in transaction
b. The amount of the loan
c. The amount of money necessary to replace the property
d. Same term as market value
87.Refers to any commercial, industrial, service or investment entity pursuing an
economic activity and are generally profit-making entities operating to
provide consumers with products or services.
a. Financial interest
b. Trade related properties
c. Personal properties
d. Businesses
88.In property appraisal, these are suppositions taken to be true, involving facts,
conditions, or situations affecting the subject (property being appraised), or
the approach in the valuation.
a. Market conditions
b. Perceptions
c. Observations
d. Assumptions
89.The value of property to a particular investor, or a class of investors, for
identified investment or operations objectives.
a. Market value
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b. Fair value
c. Special value
d. Investment value
90.Appraising has been defined as . . .
a. An educated guess
b. A science in which conclusions are reached from a consideration of facts
c. A process of establishing value
d. All of the above
91.Which of the following term is appropriate for the term REAL ESTATE?
a. Land and anything permanently attached to the land
b. Property that is not encumbered by leases
c. Building and other improvements
d. Building and fixtures
92.Refers to assets owned and/or controlled by governmental or quasigovernmental entities to provide goods or services to the general public
a. Financial assets
b. Operating assets
c. Cash-generating assets
d. Public sector assets
93.Specific materials that, by their presence or proximity, may have adverse
effect on property value because of their potential to cause harm to life-forms
a. Land and building
b. Hazardous or toxic substances
c. Petroleum and mineral
d. People and plants
94.In these type of properties, the soil is the principal agent in production,
varying in its capacity to support a given amount of a particular commodity
or class of commodities.
a. Trade related properties
b. Historic properties
c. Agricultural properties
d. Personal properties
95.The process of analyzing sets of property and market data to determine the
specific parameters operating upon a model.
a. Mass appraisal
b. Statistics
c. Calibration
d. Standard deviation
96.Are individual properties, such as hotels, fuel stations, and restaurants that
usually change hands in the marketplace while remaining operational
a. Financial interests
b. Businesses
c. Trade related properties
d. Income generating properties
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97.Refers to housing programs and projects covering houses and lots for
homeless only undertaken by the government or the private sector for the
underprivileged and homeless citizens
a. Low-cost housing
b. Socialized housing
c. Rowhouses
d. Townhouses
98.Loss in value resulting from wear and tear overtime, including any lack of
maintenance.
a. Functional obsolescence
b. Deferred maintenance
c. Physical deterioration
d. Economic obsolescence
99.Obsolescence resulting from external influences that may affect the value of
the property.
a. Physical deterioration
b. Functional obsolescence
c. Economic obsolescence
d. Deferred maintenance
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. Industries that are characterized by the extraction from the earth of
natural resources, which
may pass through a series of ownership, processing and measurement
stages.
a. Minerals and petroleum
b. Service stations and hotels
c. Condominium and time-share
d. Fee simple and freehold
101
. Assets that embody a cultural, historic, and/or architectural heritage.
a. Personal properties
b. Agricultural properties
c. Historic properties
d. Antiques
102. Loss in value that can be caused by advances in technology that result in
new assets being
capable of a more efficient delivery of goods and services.
a. Physical deterioration
b. Functional obsolescence
c. Economic obsolescence
d. Deferred maintenance
103.
a.
b.
c.
d.
104. The following are methods of land acquisition by the government except
a. Expropriation
b.
negotiated sale
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c.
d.
donation
foreclosure
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a.
b.
c.
d.
Great Britain
The Netherlands
Austria
Italy
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d. High lands
128. 1:24,000 is an example of what kind of scale?
a. Bar line
b. Graphic scale
c. Fractional scale
d. Metric scale
129. Which map would have the smallest scale?
a. Continent
b. City
c. World
d. Country
130. The spread of something over a given study area is
a. Density
b. Concentration
c. Distribution
d. Diffusion
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136. A state that is completely surrounded by the land of other states, which gives
it a disadvantage in terms of accessibility to and from international trade routes.
a. Elongated
b. Perforated
c. Landlocked
d. Compact
137. The study of the earth and its features and of the distribution of life on the
earth, including human life
a. Physical geography
b. Political geography
c. Human geography
d. Geography
138. Greater cultural and economic interaction among people all over the world
a. Physical geography
b. Political geography
c. Human geography
d. Globalization
139. The study of where and why human activities are located where they are
a. Physical geography
b. Political geography
c. Human geography
d. Geography
140. The level of development that can be maintained in a country without
depleting resources to the extent that future generations will be unable to achieve a
comparable level of development.
a. Green energy
b. Sustainable development
c. Agglomeration
d. Economies of scale
141. The spread of an innovation or an idea through a population in an area
a. Pattern
b. Concentration
c. Distribution
d. Expansion diffusion
142. Known as the father of geography
a. Democritus
b. Epicurus
c. Hippocrates
d. Erasthostenes
143. A group of areas that share common characteristics
a. Region
b. City
c. Location
d. Place
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