Appraiser’s /broker’s Exam

Mock Exam Set J

1. We study real estate economics in order to:

a. Predict what will be happening in the future
b. Meet state education requirements
c. Impress clients with our knowledge
d. Balance our needs with the needs of others

2. In comparing the national economy with the local economy, we should realize that:
a. A local economy could be different that the national economy
b. The local economy tends to lag behind the national economy
c. The local economy will closely mimic the national economy
d. While the national economy can change the local economy remains constant

3. At the equilibrium point:

a. Quantity supplied would exceed quantity demand
b. Quantity demanded would exceed quantity supplied
c. Quantity demanded would equal quantity supplied
d. Consumers will not buy and producers will not supply

4. Which of the following is a true statement regarding demand

a. Demand for real estate is inelastic
b. Demand is meaningless without purchasing power
c. Demand increase with supply increase
d. Demand decrease with increase in supply

5. the real estate market place is primarily a:

a. national market
b. local market
c. Market having inelastic demand
d. market regarded as a perfect economic model

6. Prices of water front homes in a development area have been risig dramatically because of?
a. Demand pull inflation
b. Stagflation
c. cost push inflation
d. Leverage

7. A sophisticated investor would considered paying with maximum leverage when

a. Prices were falling
b. Seeking to reduce risk
c. Prices were expected to continue to rise rapidly
d. interest rates were expected to fall

8. Adam smith believe in:

a. Laissez faire policy
b. Government guidance to influence the economy
c. command economy
d. socialist state

9. Private property, private enterprise, competitive markets and an profit motive are elements of:
a. Communism
b. Capitalism
c. socialism
d. command economy

10. A market controlled by a single producer would be a:

a. Oligopsony
b. oligopoly
c. monopsony
d. monopoly

11. Which of the following would be the best inflation indicator?

a. balance of trade
b. National government deficit
c. consumer price index
d. high interest rates

12. Which of the following would be a lagging economic indicator?

a. Vendor performance
b. high interest rates
c. change in consumer price index
d. poor real estate market

13. A developer considering building new office space would most interested in:
a. Changes in the office vacancy rate
b. changes in vendor performance
c. Changes in the consumer price index
d. Changes in the housing affordability index

14. The return beyond the value of land,labor material and management would be:
a. rent
b. Wages
c. interest
d. profit

15. Value would be measured by:

a. Price
b. Profit
c. Benefits
d. the highest and best use

16. The term net value attributable to the land would be related to:
a. Price
b. Building residual method
c. highest and best use
d. income approach

17. Imperfection in the real estate market are caused by all except:
a. bargaining skills
b. Production time
c. must sell and will sell sellers
d. informed buyers and sellers

18. if everyone in the Philippines began to double his or her rate of saving, the effect would be:
a. Greater unemployment
b. Increase the velocity of money
c. an increase in the gross national product
d. inflation

19. To fight inflation, the central bank could:

a. buy government securities
b. Lower taxes
c. increase government spending
d. raise interest rates

20. When would a mortgage banker be interested in selling mortgages it originated in quick fashion?
a. When it believes interest rates will drop
b. When it believes interest rate will rise
c. When the loans are conforming
d. When the bank are loosing clients

21. The term gentrification refers to a/an:

a. More docile environment
b. Aging population
c. male dominated society
d. back to the city movement of young people

22. A growth where cities have merged together to form a vast metropolis is know as a:
a. Cluster
b. Strip development
c. megalopolis
d. gentrification

23. A very important determinant of real estate value is:

a. taxes
b. Age
c. location
d. Distance from a city center

24. A neighborhood most likely to be relatively stable with well maintained properties would have:
a. A high percentage of renters
b. A high percentage of owner occupancy
c. Commercial and industrial property mixed among residential uses
d. A high percentage of subsidized housing

25. According to the principle of conformity, the property in a neighborhood of maximum value would
be:
a. The nicest property among deteriorating structures
b. In the center of an area of similar properties
c. A single family home surrounded by boarding house
d. The largest property in the neighborhood

26. The principle that the user who wants a site the most will pay the most for it is known as the:
a. Competition
b. First choice
c. supply and demand
d. change

27. Growth outside the city is known as:

a. Sprawl
b. Township
c. gentrification
d. suburb

28. Effects of rent control include all, except:

a. Encourages conversion of apartments to condominiums
b. Increase likelihood of lower maintenance
c. Place a social burden on landlords
d. Encourage new development of apartment structures

29. Brownfields refers to;

a. Areas without city water
b. Areas with contaminated soil
c. desert land
d. minority arcas
30. What is redlining?
a. providing a fast tract for development approvals
b. Refusal of a lender to loan within the areas
c. Rehabilitation
d. Slum clearance

31. It is the appraisers job to project the financial interest of the:

a. Lender
b. Seller
c. Borrower
d. broker

32. An example of smart growth:

a. infill developments
b. Leapfrog development
c. building more freeways
d. use of annexation to grow

33. Which of the following employer actions would contribute to traffic problems?
a. Allowing home based workers
b. Implementing trip reduction programs
c. Using an off peak workweek
d. Providing for fee employee parking

34. Traffic management could include all except:

a. Toll road pricing
b. Larger parking facilities
c. Coordinated traffic signals
d. one way streets

35. What is suburb?

a. A rural community
b. A self sustaining community
c. A community near and subordinated to a central city
d. A residential community without significant commerce or industry

36. Suburbs can keep property taxes down by:

a. Keeping industry out
b. Promoting tower cost homes
c. not allowing shopping centers
d. denser development

37. Under public land act of 1936 (CA141), the maximum area for free patent subject to government
grant should not exceed________ for any natural born Filipino citizens.
a. 12 hectares
b. 24 hectares
c. 5 hectares
d. 7 hectares

38. Under public land act of 1936 (CA141), the maximum area for free patent subject to government
grant should not exceed________ for cultural minorities.
a. 12 hectares
b. 24 hectares
c. 5 hectares
d. 7 hectares

39. Under public land act of 1936 (CA141), the maximum area for homestead patent subject to
government grant should not exceed _____ for any natural born Filipino citizen.
a. 12 hectares
b. 24 hectares
c. 5 hectares
d. 7 hectares

40. Under the 1987Constitution, the maximum area for free patent subject to government grant should
not exceed ________ for any natural born Filipino citizen.
a. 12 hectares
b. 24 hectares
c. 5 hectares
d. 7 hectares

41. . Under the 1987Constitution, the maximum area for homestead patent subject to government grant
should not exceed ________ for any natural born Filipino citizen.
a. 12 hectares
b. 24 hectares
c. 5 hectares
d. 7 hectares

42. Under RA10023 of 2010 ( New Residential free patent Law), the maximum area for free patent,
subject to government grant if land is located in a highly urbanized cities, should not exceed _____ for
nay natural born Filipino citizen.
a. 200 sq. m.
b. 250 sq. m
c. 500 sq. m
d. 750 sq. m

43. Under RA10023 of 2010 ( New Residential free patent Law), the maximum area for free patent,
subject to government grant if land is located in other cities not classified as highly urbanized cities,
should not exceed _____ for nay natural born Filipino citizen.
a. 200 sq. m.
b. 250 sq. m
c. 500 sq. m
d. 750 sq. m

44. Under RA10023 of 2010 ( New Residential free patent Law), the maximum area for free patent,
subject to government grant if land is located in 3 rd class municipalities, should not exceed _____ for
nay natural born Filipino citizen.
a. 1,000 sq. m.
b. 250 sq. m
c. 500 sq. m
d. 750 sq. m
45. Under RA10023 of 2010 ( New Residential free patent Law), the maximum area for free patent,
subject to government grant if land is located in first and second class municipalities, should not exceed
_____ for nay natural born Filipino citizen.
a. 200 sq. m.
b.5,000 sq. m
c. 500 sq. m
d. 750 sq. m

46. Prescriptive period for free patent under Public land act of 1936 ( CA141) is _____ of continuous
occupancy.
a. 10 years
b. 15 years
c. 30 years
d. 20 years

47. Prescriptive period for free patent under New Residential Free Patent Law of 2010 is _____ of
continuous occupancy.
a. 10 years
b. 15 years
c. 30 years
d. 20 years

48. Under the 1987 Constitution, the grantee for homestead patent should be at least ______
Years of age or head of the family.
a. 15
b. 18
c. 21
d. 25

49. A Torrens title issued on the basis of the free patent becomes as indefeasible as one which was
judicially secured upon the expiration of ______ from date of issuance of patent.
a. 3 moths
b. 6 months
c. 1 year
d. 2 years

50. The law that extended the filing of application for judicial confirmation of imperfect or incomplete
titles to December 31, 2020. It further limits the area to be applied for 12 hectares only.
a. RA9176
b. CA141
c. RA10023
d. Ra9700

51. Registration of untitled land or lands of imperfect titles is under _________.

a. ACT 3344
b. ACT 141
c. PD 27
d. ACT 2259

52. Ordinary acquisitive prescription is the term when person acquires ownership of a patrimonial
property through possession for at least _______ in good faith and with just title.
a. 5 years
b. 10 years
c. 15 years
d. 30 years