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Consulting 2

The document contains a 20 question multiple choice final exam for a real estate brokerage course. The questions cover topics like net present value, cost of capital, types of real estate listings (open, exclusive, net), earnest money, procuring cause, fair market value, and authority to sell. The purpose of the exam is to test students' understanding of important real estate brokerage concepts and terminology.

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JL Orias
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314 views2 pages

Consulting 2

The document contains a 20 question multiple choice final exam for a real estate brokerage course. The questions cover topics like net present value, cost of capital, types of real estate listings (open, exclusive, net), earnest money, procuring cause, fair market value, and authority to sell. The purpose of the exam is to test students' understanding of important real estate brokerage concepts and terminology.

Uploaded by

JL Orias
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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FINAL EXAM

REAL ESTATE BROKERAGE

NAME _________________________ SCORE ____________

1. The difference between present value of cash inflows and the present value of cash
outflows.
a. Internal Rate of Return b. Break-even Point
c. Net present value d. Cost of Capital

2. The cost of a company’s fund from investor’s point of view


a. Internal Rate of Return b. Break-even Point
c. Net present value d. Cost of Capital

3. The rate of a company’s expected to pay on average to all security holders to finance its
asset.
a. Internal Rate of Return b. Break-even Point
c. Net present value d. Weighted Average Cost of Capital

6. It is an investment appraisal technique calculated by dividing the present value of future


cash flows of a project by initial investment

a. Internal Rate of Return b. Break-even Point


c. Net present value d. Profitability Index

7. Difference between the intrinsic value and its market price.


a. Internal Rate of Return b. Break-even Point
c. Net present value d. Margin of Safety

8. Refers to that portion of trust assumed by the broker as an agent for the principal.
a. Trust Agreement b. Escrow
c. Real Estate Mortgage d. Fiduciary Relationship

9. The cost of Project Investment per Annual cash inflows


a. Internal Rate of Return b. Break-even Point
c. Net present value d. Payback Period

8. It is one wherein only one broker is authorized to negotiate.


a. Multi-Listing b. Listing
c. Exclusive Listing d. Exclusive Agency

9. Refers to an authority to negotiate is given to two or more brokers and the broker who is
the procuring cause of the sale receives the commission.
a. Multiple Listing b. Net Listing
c. Exclusive Listing d. Open Listing

10. A listing whereby the broker who holds the Exclusive Contract To Sell relists it to a Multiple
Listing Service (MLS) is referred to as the:
a. Multiple Listing b. Open Listing
c. Exclusive Listing d. Net Listing

11. The compensation of the Broker depends on the overpriced obtained by the buyer. An
agreement by which the broker may retain as compensatio to his services all sums paid
over and above the net price to the owner is known as:
a. Multiple Listing b. Net Listing
c. Exclusive Listing d. Open Listing

12. This is one whereby the listing Broker is not entitled to a commission in case the property
owner negotiates the sale of the property. The property owner can sell the property himself
and is not oblige to pay the broker’s commission.
a. Multiple Listing b. Net Listing
c. Exclusive Agency Listing d. Open Listing

13. It is a privilege given to the buyer by the property owner to exercise a preferential right to
buy the property for sale within a certain period of time at a fixed price. It is also considered
as the contract between the Seller and the Buyer. It is an agreement wherein the Seller for a
consideration binds himself to reserve the property for the Buyer within a stipulated period.
a. Earnest Money b. Option Money
c. Down payment d. Option
14. Refers to the money given to the Seller by the Buyer in consideration of the right to
purchase or lease a property within a specified period and at an agreed contract price.
a. Option Money b. Earnest Money
c. Down payment d. Option

15. Is defined as an amount accompanying an offer to purchase a property. It also refers to a


part of the purchase price advanced by the Buyer to the Seller as a token of good faith for a
perfection of the Contract.
a. Option Money b. Earnest Money
c. Down payment d. Option

16. A natural or juridical person who has both the willingness and the capacity to buy real
properties is called as a:
a. Buyer` b. Seller
c. Prospect d. Suspect

17. The act of the Broker which is instrumental in effecting the meeting of the minds between
the seller and the buyer of the real property as to price and terms and one of the requisites
for a broker to be entitled to a commission is referred to as:
a. Escalation Clause b. Grandfather’s Clause
c. Judicial Cause d. Procuring Cause

18. It is that price at which the willing seller will sell and the willing Buyer will buy,neither of the
parties under abnormal pressure.
a. Fair Market Value b. Appraisal Value
c. Exchange Value d. Sound Value

19. The authority of the Broker to negotiate the sale lease, purchase, mortgage or exchange of
real property for a fee and under certain terms and conditions within a specific period of
time is known as:
a. Contract of Sale b. Authority To Sell
c. Contract To Sell d. Authority of Sale

20. An agreement where the authorized broker allows cooperating broker to sell the property
with stipulation on the sharing of commission is referred to as:
a. Authority To Sell b. Contract To Sell
c. Extension of Authority d. Exclusive Authority

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