REB Q&A-P3

REB QUIZ NO. 9 - REAL ESTATE BROKERAGE PRACTICE (21)

1. 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

2. 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

3. 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
4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

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

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

14. The authority of the real Estate Broker to negotiate the sale, lease purchase, exchange or
mortgage of a real estate property for a fee/compensation or commission or other value
consideration. It is a contract between the real property owner and the Real Estate
Broker whereby the latter is authorized to look for a buyer/lessee/mortgagee and to
negotiate the sale, lease, purchase, exchange or mortgage of the real property at a
certain price and terms within the specific period for a commission/ fee is called as a:
a. Multi-Listing b. Listing
c. Net Listing d. Exclusive Listing

15. 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

16. A provision in a listing agreement which entitles a broker to a commission even when he
closes the sale after the period of his authority provided that the buyer was registered by
him with the seller and with whom he has negotiated during the period of his authority.
a. Exclusive Listing b. Net Listing
c. Open Listing d. Hold-over Clause

17. Mrs. Dela Cruz is a licensed real estate broker who was able to obtain a net listing of
P6,500,000.00. She sold the property at a price which is inclusive of her 5% commission,
capital gains tax and documentary stamps. As per Deed of Sale, the buyer will pay for
the transfer and registration fees. Find out how much was it sold?
a. P8,125,000.00 b. P7,428,571.40
c. P8,215,500.00 d. P7,312,500.00

18. A 3-hectare land in Talisay, Cavite was sold for P300.00/sqm. and the seller agreed to
pay commission based on the following rate: 5% for the first P1,000,000.00; 4% for the next
P1,500,000.00; and 3% on the excess over P2,500,000.00 Compute the gross commission
of the listing broker and the selling broker if they agreed to 40%-60% sharing in favor of
the selling broker.
a. Gross Commission=P305,000.00; Selling Broker P183,000.00;Listing Broker P122,000.00
b. Gross Commission=P305,000.00; Selling Broker P122,000.00;Listing Broker P183,000.00
c. Gross Commission=P450,000.00; Selling Broker P183,000.00;Listing Broker P270,000.00
d. Gross Commission=P450,000.00; Selling Broker P183,000.00;Listing Broker P180,000.00

19-21. Mr. Reyes pays a monthly amortization of P54,100.00 for a parcel of land. The
amortization factor for 5 years at 21% interest is 0.02705. If Mr. Reyes paid a down
payment of 20% of the contract price, compute the following:

19. The principal obligation on which the monthly amortization is based.

a. P3,927,660.00 b. P2,000,000.00
c. P3,000,000.00 d. P2,500,000.00

20. The contract price

a. P2,000,000.00 b. P2,500,000.00
c. P3,000,000.00 d. P3,927,660.00

21. The amount of down payment

a. P400,000.00 b. P500,000.00
c. P600,000.00 d. P785,532.00

REB QUIZ NO. 10 - BASIC PRINCIPLES OF ECOLOGY (49)

22. Refers to Environmentally Responsive Development:

a. Green Technology b. Green Revolution
c. Green Development d. Green Resource Efficiency

23. Social Theory is the social and cultural patterns that result from relationship between
people and:
a. resources b. community
c. environment d. neighborhood
24. The document issued by the DENR Secretary that a project will not cause significant
negative impact is called:
a. Environmental Compliance Certificate b. Environmental Critical Statement
c. Environmental Impact System d. Environmental Statement of Facts

25. An area that is environmentally sensitive:

a. Environmental Impact Statement b. Environmental Management plan
c. Environmentally Critical Area d. Environmentally Critical Project

26. A project that has a high potential for significant negative environment impact is referred
to as:
a. Environmental Impact Statement b. Environmental Management plan
c. Environmentally Critical Area d. Environmentally Critical Project

27. A section of the EIS that details the prevention, mitigation, compensation, contingency
and monitoring measures to enhance positive impacts and minimize negative impacts of
a proposed project is called:
a. Environmental Impact Statement b. Environmental Management Plan
c. Environmentally Critical Area d. Environmentally Critical Project

28. The documents or studies on the environmental impacts of a project including

discussions on direct and indirect consequences is known as:
a. Environmental Impact Statement b. Environmental Management plan
c. Environmentally Critical Area d. Environmentally Critical Project

29. Refers to the even or just distribution of ecosystem products and services among human
beneficiaries:
a. Productivity b. Stability
c. Sustainability d. Equitability

30. The constant productivity despite major disturbances such as typhoon, drought, floods,
etc., is:
a. Productivity b. Stability
c. Sustainability d. Equitability

31. The constant productivity despite small variability in climate and other environmental
factor is known as:
a. Productivity b. Stability
c. Sustainability d. Equitability

32. The natural process of change in response to the physical changes of an aging planet is
called:
a. Evolution b. Ecological Succession
c.Control or Cybernetics d. Biogeochemical Cycles

33. There is no conclusive estimate on the total population of indigenous people in the
country because of the following, except:
a. Indigenous people are aplenty and scattered all over the country
b. Absence of explicit report from the NSO.
c. Delineation of ancestral domain has not been adopted as census tract.
d. Absences of regular tracking of time series data on each ethnic group.

34. LEED means:

a. Leadership in Energy Efficiency Design b. Leadership in Energy Efficiency Devt.
c. Light Energy Efficiency Design d. Light Energy Efficiency Development

35. Ecology covers the study of

a. population, community, ecosystem b. ecosystem, organism, inhabitants
c. ecosystem, population, inhabitants d. inhabitants, population, community

36. Green Building is focused on good design concept in any project development, where
the ecological thinking must be adopted through promotion and education of people
involved in the real estate industry. What considerations are taking part in every aspect
of design in building concept?
a. social b. economic
c. cultural d. environmental
37. The Indigenous Peoples Right Act was enacted on Oct. 29, 1997 to address
marginalization and powerlessness of the Indigenous Cultural Communities, which is also
a. RA 8371 b. RA 6552
 c. RA 9646 d. RA 7279

38. An imbalanced or imperfect nature of chemical elements and substances in material

cycles
a. sediment b. carbon
c. pollution d. radiation

39. The term ecology originates from a Greek word, which means “house”. In real estate
Ecology there are three relevant ecological aspects of green property, which are
a. population, community, ecosystem b. inhabitant, building, community
c. inhabitant, building, ecosystem d. population, community, organism

40. It is a geographically local community, often within a larger city or suburb

a. municipality b. neighborhood
c. planned community d. none of the above

41. A subdivision development is a local community that is also referred as

a. Municipality b. neighborhood
c. planned community d. none of the above

42. It is an Act enacted in order to curb illegal logging and other forms of forest destruction.
a. Cut Saw Act of 2002 b. Blade Saw Act of 2002
c. Log Saw Act of 2002 d. Chain Saw Act of 2002

43. The importance of EIA as a tool that measures allocation and utilization in terms of cost
associated with
a. environmental preservation b. environmental degradation
c. environmental conservation d. environmental awareness

44. Refers to heavy industry involving ferrous metal, iron or steel mills; petroleum or petro-
chemical, oil gas, or smelting plants.
a. Environmentally Critical Area b. Environmentally Critical Projects
c. Environmental Critical Impact d. Environmental Impact Assessment

45. A document issued by DENR Secretary that the proposed project will not cause
significant negative environmental impact.
a. ECC c. EIS
b. EIA d. ECP

46. An isolated settlement consisting of one house

a. farm b. village
c. hamlet d. town

47. The smallest type of settlement in the Philippines

a. province b. city
c. municipality d. barangay

48. It is a type of settlement where accretion occurs around nodes or core settlement
resulting in agglomeration
a. organic b. planned
c. neighborhood d. municipality

49. The estimated population of indigenous people which is composed of 110 tribes in the
Philippines is almost
a. 9-13M b. 14-17M
c. 18-22M d. 5-8M

50. One of the elements of green development is resource efficiency. An example of this is
a. solar panel fro house lighting b. stilted house in Marikina
c. Batanes stone house d. Baguio Kennon Road

51. The only region in the Philippine that has no indigenous people inhabitants
a. Region 4 b. Region 5
b. Region 7 d. Region 8

52. World Disaster Report of 2012 ranked the Philippines in the most disaster prone countries
a. 1st b. 2nd
c. 3rd d. 4th

53. It is the national agenda for sustainable development

 a. Medium Term Development Plan b. Philippine Agenda 21
c. PA 20 d. SD 20

54. LEED is a U.S. certification for Green Building and its Philippine counterpart is
a. Berde b. Green S. Green Star
c. Estidama d. Breem

55. A power plant as another environmentally critical project is a

a. heavy industry b. resource extractive
c. major infrastructure d. golf course

56. Environmentally critical project such as a smelting plant is classified as

a. heavy industry b. resource extractive
c. major infrastructure d. golf course

57. The theory that species have changed over long periods of time is known as
a. succession b. ecology
c. generation d. evolution

58. It is a form of carbon present in the atmosphere

a. CO b. CO2
c. CH2 d. CC14

59. A food web is

a. spider habitat b. feeding relationships link
c. consumers community d. organisms chain

60. The biggest impact on the environment are made through

a. migration b. competition
c. predation d. human activities

61. Deforestation has the effect of

a. soil erosion b. global warming
c. increase production of carbon dioxide d. decreasing biodiversity

62. Most climate models predict that during this century, the average temperature on land
will
a. increase as with the average ocean temperature
b. increase and the average ocean temperature will decrease
c. decrease as with the average ocean temperature
d. decrease and the average ocean temperature will increase

63. A relationship between two (2) organisms of different species where one benefits and
the other benefits or harmed
a. mutualism b. commensalism
c. parasitism d. symbiosis

64. Most extinctions occurring in the world today were caused by

a. climate change b. floods
c. lost of habitat d. hurricane

65. A gas that traps heat that would otherwise dissipate form the earth’s surface
a. methane gas b. carbon dioxide
c. greenhouse gas d. oxygen

66. The continued erosion of topsoil and the formation of deserts on grazing land
a. desertification b. soil erosion
c. liquefaction d. landslide

67. The effect of human activity to natural environment

a. pollution b. environmental impact
c. degredation d. disaster management

68. It is the process in water cycle that water passes through plants into the air as water
vapor.
a. condensation b. precipitation
c. evaporation d. transpiration

69. The application of the conservation of energy principle is the first law of thermodynamics
which states that:
 a. energy can never be created or destroyed, it only changes form
b. matter is anything that occupies space and has weight.
c. for every action, there is always an equal opposite reaction
d. current is proportionate to the voltage, provided that conductor is at the same
temperature

70. Symbiosis is a close ecological relationship of two (2) different species. The type of
symbiotic relationship exist wherein the symbiont benefits to the detriment of the host.
a. mutualism b. commensalism
c. parasitism d. neutralism

71. The air contains 78% nitrogen which the plants can not use in that form. It is in this usable
form that plant can use nitrogen.
a. bacteria b. fertilizer
c. algae d. lightning

REB QUIZ NO. 11 – SURVEYING, SITE LOCATION & MAP READING (35)

72. Refers to the height of a point above mean sea level.

a. Topography b. Terrain
c. Elevation d. Slope

73. Refers to surveying lakes, streams, reservoir and other bodies of water.
a. Topographic Survey b. Relocation Survey
c. Hydrographic Survey d. Cadastral Survey

74. The following are examples of Construction Surveys, except:

a. roads & highways b. dam or reservoir
c. roads & bridges d. flood control

75. Refers to urban and rural surveys of wide extent for the purpose of locating property lines
and improvements in detail, primarily for use in connection with ownership, value, and
transfer or land.
a. Original Survey b. Relocation Survey
c. Subdivision Survey d. Cadastral Survey

76. The first survey executed on a parcel of land to determine the technical descriptions
that will define the extent of ownership and value of the land.
a. Original Survey b. Relocation Survey
c. Subdivision Survey d. Cadastral Survey

77. A Stride refers to:

a. one big pace or one big step b. two paces or a double step
c. one big normal step d. two big normal steps

78. A survey made for the purpose of securing filled data from which a map can be made
representing the three-dimensional relations of the earth’s surface. The features should
include such natural features such as streams, lakes, forests, configurations of the terrain,
and man-made features such as roads, buildings, structures, etc.
a. Topographic Survey b. Relocation Survey
c. Subdivision Survey d. Cadastral Survey

79. Subdivision Survey is a kind of survey wherein a particular subject lot is subdivided into
smaller parcels, the number of which may be determined by the following but not the:
a. owner b. geodetic engineer
c. designer d. civil engineer

80. A type of survey conducted on a property to relocate the boundaries and monuments.
Through a relocation survey, it could be established whether there was an increase or
decrease in area as appearing on the title.
a. Original Survey b. Relocation Survey
c. Subdivision Survey d. Cadastral Survey

81. Surveying is the science and art of determining the area and configuration of portions of
the surface of the earth and representing them on;
a. maps b. plans
c. ground d. land

82. Surveying is the art of determining the position of points on or near the earth’s surface by
means of measurement in the following elements of space, except:
 a. distance b. direction
c. elevation d. bearing

83. A reference point is an established ____________ in a particular site.

a. landmark b. land monument
c. lot c. location

84. Contour Planning is a subdivision scheme for a:

a. Flat Terrain b. Highly Elevated Terrain
c. Rolling Terrain d. Gridiron

85. The most commonly used system by surveyors is by way of Electronic Distance
Measurement. This automatically measures distance by:
a. electronic distance computer b. an electronic computer
c. electronic distance devise d. electronic distance machine

86. A Pace is the length of:

a. stride b. single step
c. hop d. jump

87. Which of the following components would NOT be found in a metes-and-bounds legal
description methods?
a. Degrees, minutes and seconds b. Point of beginning
c. Longitudes and latitudes d. Bench mark

88. The distance of the property from the church was measured by the use of normal
pacing is 150 meters, more or less and the total number of paces was 200. What is the
pace factor?
a. 0.65 meters b. 0.70 meters
c. 0.75 meters d. 0.80 meters

89. Site Planning embraces the following art of planning design, except
a. open space design b. building design
c. drainage system d. road and pathways

90. The primary purpose of surveying is to determine the relative positions of points and lines
on the:
a. face of the earth b. surface of the earth
c. face of the lot d. surface of the land

91. A magnetic compass is a simple hand held instrument with a magnetized needle which
points toward the:
a. Magnetic North b. Magnetic South
c. Magnetic East d. Magnetic West

92. BLLM
a. Bureau of Lands Location Monument b. Barrio Lands Location Monument
c. Boundary Lands Location Monument d. Bureau of Lands Local Monument
93. Surveying is the art of determining the position of points on or near the earth’s surface by
means of measurement in the three elements of space, namely:
a. distance, height and elevation b. distance, direction and elevation
c. distance, width and elevation d. distance, length and elevation

94. The North-South Meridian is referred to as:

a. 0 degree b. 90 degrees
c.180 degrees d. 369 degrees

95. Imaginary lines used by surveyors to find and describe the location of private or public
lands
a. Bearings and Distance b. Metes and Bounds
c. Base and Meridian d. Tie Line

96. The added desirability or utility of a property due to its frontage to two streets which
provides better ventilation, easier accessibility and more commercial utilization is:
a. Corner Lot b. Corner Influence
c. Plottage d. Plottage Value

97. Refers to an imaginary connecting point of a lot with a reference point, such as a
Bureau of lands Location Monument (BLLM)
a. Tie Lines b. PSD
 c. Contour Lines d. Elevation Lines

98. Contour lines refers to those lines in a topographic map which indicate the:
a. elevation of the land at upper sections b. elevation of the land at lower sections
c. elevation of the land at various sections d. elevation of the land at middle sections

99. The measurement of the land to determine its external boundaries and ascertain
whether or not there are encroachments.
a. Relocation Survey b. Amendment Survey
c. Subdivision Survey d. Cadastral Survey

100. A Key Lot refers to an adjoining corner lot and fronting a/an:
a. intersecting street b. Cul-de-sac
c. Chaplan d. Inner lot

101. A Cul-de-sac refers to a passageway with only one outlet known as:
a. a center alley b. a blind alley
c a key lot c a curve

102. A curve is an indention along corner for lots to allow better visibility to:
a. Parallel traffic b. Roundabout traffic
c. Regular Traffic d. Perpendicular traffic

103. A Gridiron is a subdivision scheme where the resulting blocks are more or less
a. Rectangular in shape b. Square in shape
c. Regular in shape d. Trapezoidal in shape

104. A “tumbok” lot is known as a:

a. Cul-de-sac b. Thru Lot
c. Key Lot d. Inner Lot

105. Contour Planning is a subdivision scheme for a:

a. Flat Terrain b. Highly Elevated Terrain
c. Rolling Terrain d. Gridiron

106. Square Planning is a subdivision scheme for;

a. Rolling Terrain b. Flat Terrain
c. Highly Elevated Terrain d. Gridiron

107. What is the total land area of a triangular lot which has a frontage of 20 meters and a
depth of 30 meters?
a. 600 sq. m. b. 300 sq. m.
c. 60 sq. m. d. 30 sq. m.

REB QUIZ NO. 12 - REAL ESTATE FINANCE & ECONOMICS (34)

108. The collateral value of Pag-ibig house and lot package is determined by applying:
a. Loan to value ratio of housing unit b. Fund salary of applicant
c. Net disposable income of applicant d. Gross monthly income of applicant

109. Interest is the compensation paid for the use of:

a. savings b capital
a. rent b. Income

110. Amortization refers to the process of making installment payments consisting of principal
and interest that reduces the:
a. loan balance b. term payment
c. principal d. Interest payments

111. It is a modified system under the UHLP whereby housing loans may be extended through
other conduits like banks:
a. Turn-key Loan b. Multi-window Lending Program
c. Project Loan d. Construction Loan

112. The application of economic techniques to real estate markets which tries to describe,
explain, and predict patterns of prices, supply, and demand is called:
a. Economics b. Real Estate Economics
c. Economics & Finance d. Real Estate Finance
113. A commercial property producing an annual gross income of P390,000 was sold two
months ago for P3,412,500. What is the property’s gross income multiplier?
a. 8.75 b. 7.75
c. 7.0 d. 8.5

114. A type of economy where the private sector and government perform equal roles in
economic decision-making; competition with regulation.
a. Capitalism b. Socialism
c. Mixed Capitalism d. Mixed Socialism

115. A type of economy where the government decides and drives the economy, focuses
on what is needed rather than what is wanted.
a. Capitalism b. Socialism
c. Mixed Capitalism d. Mixed Socialism

116. A type of economy where the purchasing power of the consumers decides and drives
the economy (law of supply and demand).
a. Capitalism b. Socialism
c. Mixed Capitalism d. Mixed Socialism

117. A building has a rental income ofP350 per month. Using the monthly gross rent multiplier
of 125, the value of the building would be estimated at:
a.P35, 714 b. P437,500
c.P43, 750 d. P357,140

118. All of the following are characteristics of a real estate market except:
a. Land is indestructible b. Land is immobile
c. The market rapidly adjusts to changes in supply and demand
d. Government controls play an important role when compared to other markets.

119. The theory that each incremental item becomes less expensive as the volume is
increased
is called:
a. Efficiency b. Economies of scale
c. Profit d. Marginal

120. Characteristics of human populations as defined by population size and density of

regions, population growth rates, migration, vital statistics, and their effect on socio-
economic conditions.
a. demographics b. demography
c. geography d. statistics

121. This refers to the statistical study of human population.

a. demographics b. demography
c. geography d. statistics

122. A personal property mortgage is a:

a. real estate mortgage b. chattel mortgage
c. blanket mortgage d. collateral pledge

123. A Real Investment Trust must have a minimum paid up capital of at least:
a. P300,000,000.00 b. P500,000,000.00
c. P1,000,000,000.00 d. P5,000,000,000.00

124. The desirability of the economic utility of the property is known as:
a. Economic Utility b. Economic Life
c. Economic Value d. Economic Obsolescence

125. The sale or transfer of real property to real estate investment trust shall be subject to:
a. 10% of the applicable DST b. 25% of the applicable DST
c. 50% of the applicable DST d. 75% of the applicable DST

126. A real estate company that offers common shares to the public which is similar to any
other stock that represents ownership in an operating business:
a. Real Estate Development Corporation b. Real Estate Investment Trust
c. Real Estate Investment Company d. Real Estate Development Trust

127. A financing scheme to assist and enable informal settlers, slum dwellers or residents of
blighted areas, in purchasing through their duly registered community association, the
land they occupy or the land where they will be relocated is referred to as:
 a. Joint Venture Agreement b. Community Development Program
c. Community Mortgage Program d. Urban Development Program

128. The following are limitations of market indicators, except

a. Price b. Location
c. Classification d. Consummated sales

129. The following are functions of the real estate market, except:
a. influences the use of land b. regulates the supply of space
c. sets the timing of land development d. enhances supply and demand

130. An abstract sphere within which price-influencing factors tend to operate and wherein
the payment of the consideration is accompanied by transfer of right rather than by
movement of goods is referred to as:
a. Real Estate Investment b. Real Estate Development
c. Real Estate Market d. Real Estate Marketing

131. The following are determinants of value, except:

a. Demand b. scarcity
c. Transferability d. cost

132. A Real Investment Trust company shall distribute annually at least how much dividends to
its shareholders:
a. 90% b. 40%
c. 50% d. 75%
133. A branch of finance which deals with investing money or wealth in real estate is called:
a. Real Estate Finance b. Real Estate Investment
c. Real Estate Investment Trust d. Real Estate Economics

134. Under the new Window Lending System of HUDCC, the loanable amount for socialized
housing packages based on collateral value shall be:
a. 70% of the appraised value of the property
b. 80% of the appraised value of the property
c. 90% of the appraised value of the property
d. 100% of the appraised value of the property

135. Few buyers, multiple sellers.

a. Oligopoly b. Oligopsony
c. Monopoly d. Monopsomy

136. Few seller, multiple buyers

a. Oligopoly b. Oligopsony
c. Monopoly d. Monopsomy

137. Single buyer, multiple sellers

a. Perfect Market b. Imperfect Market
c. Monopoly d. Monopsomy
138. Single seller, multiple buyers
a. Perfect Market b. Imperfect Market
c. Monopoly d. Monopsomy

139. Few sellers, more buyers (sellers market) ; few buyers, more sellers (buyers market); price
goes up and down accordingly.
a. Perfect Market b. Imperfect Market
c. Monopoly d. Monopsomy

140. Many seller and buyers; price is at its lowest.

a. Perfect Market b. Imperfect Market
c. Monopoly d. Monopsomy

141. Turn-key loan is a type of loan wherein the tender has some complete control over the
project and the income from a certain period, part or all of which is assigned to him to
a. Amortize the loan b. amortize the project
c. amortize the turn-key Loan d. Amortize the construction Loan

142. This is a market condition where there are more buyers than properties for sale.
a. Open Market b. Property Market
c. Seller’s Market d. Buyer’s Market

143. This is a market condition where there are more properties for sell than buyers.
 a. Seller’s Market b. Buyer’s Market
c. Open Market d. Property Market

144. These refer to the changes that result when wealthier people acquire or rent property in
low income and working class communities.
a. Progression b. Gentrification
c. Regression d. Competition

145. A person who gets paid a referral fee for finding good deals for investors is known as:
a. Flipper b. Bird dog
c. Dealer d. Broker

146. Refers to the act of buying an under priced property and then quickly reselling it at
market value:
a. Flipping b. Bird dogging
c. Fast break d. Brokering

147. The Gross Income Multiplier is a factor derived from comparable properties and applied
to expected rental income to estimate
a. a value b. a gross income
c. a established cost d. A known price

148. Interest Rate is the rate of return earned by an investor, which does not include
allowance:
a. for capital recovery b. for cash flow
c. for recapture d. for discount

149. A Blanket Mortgage is a real estate mortgage that covers:

a. a single property b. all properties
c. several properties d. not more than two (2) properties

150. The following are purposes of loan allowable under the UHLP, except:
a. purchase of lot only
b. purchase of a lot and construction of a new house or dwelling unit.
c. purchase of a newly constructed dwelling unit
d. purchase of two (2) houses and lots

151. Economic Utility refers to the capacity to satisfy wants, production by labor and their:
a. exchangeability b. Transferability
c. Uniqueness d. Scarcity

REB QUIZ NO. 13 - REAL ESTATE APPRAISAL FOR BROKERS (77)

152-155. A corporation bought 50 hectares of land for P700.00/sqm. If medium-end

development costs is P1,000.00/sqm. and saleable area is 60% of the gross area,
compute the following:

152. Total land acquisition cost

a. P250,000,000.00 b. P300,000,000.00
c. P350,000,000.00 d. P400,000,000.00

153. Total development cost

a. P300,000,000.00 b. P400,000,000.00
c. P500,000,000.00 d. P600,000,000.00

154. Lot Unit Cost

a. P2,166.67 . b. P1,700.00
c. P2,833.34 d. P2,720.00

155. If the projected gross mark up is 100% of the total unit cost/sqm. of the saleable lots, what
will be the selling price per sqm.?
a. P4,333.34 b. P3,400.00
c. P5,666.68 d. P5,440.00

156. The most detailed method of estimating replacement cost new is the :
a. square foot method b. unit in place method
c. quantity survey method d. rule of thumb method
157. The principle that prevents an appraiser from appraising a lot for its commercial potential
and the improvements thereon for residential value is the:
a. Principle of anticipation b. principle of highest and best use
c. principle of change d. principle of progression

158. Reproduction cost involves the estimated cost of the raw materials needed to build a
structure, plus cost of labor and indirect cost. This is called as the:
a. Quantity survey method b. Unit in Place method
c. square foot method d. rule of thumb method

159. Marcelo plans to put up a perimeter wall fence on his 120 sq.m. lot. It is a regular lot
having a frontage of 10 meters. The wall is one meter below and 3 meters above
ground. If cost is P400.00/sq.m. what is the total cost of the wall including a P20,000.00 3
meter wide steel gate?
a. P65,600.00 b. P85,600.00
c. P70,400.00 d. P80,400.00

160. It is a fair and reasonable amount of money to be paid for work performed or to make
one "whole" after loss due to damages.
a. Fair Value b. Damage Compensation
c. Fair Compensation d. Just Compensation

161. In buying air rights, which of the following would best give the developer the optimum
return on his investment?
a. a low cost structure b. a highly commercial lot
c. a low rise structure d. a low end condominium project

162. A vacant lot is rented for a car display for P24,000 per month. The interest rate applicable
to this type of property is 8%. Compute the value of property by income approach:
a. P2,400,000.00 b. P2,600,000.00
c. P2,800,000.00 d. P3,600,000.00

163. The area of a trapezoid is computed as:

a. ½ the sum of the parallel side x altitude
b. ½ the sum of all sides x inside radius
c. ½ the sum of all sides x height d. sum of all sides x inside radius

164. The four agents of production are:

a. Land, labor, capital, money b. Land, labor, capital, entrepreneurship
c. Land, improvements, labor, materials d. Land, labor, capital, improvements

165. The process of computing the present value is called:

a. Discounting b. Compounding
c. Capitalization d. Amortization

166. One acre is equivalent to:

a.15,280 sq. ft. b. 5,280 sq. ft.
c. 10,560 sq. ft. d. 43,560 sq.ft.

167. The interests belonging to the tenants created by leasing of the property is called:
a. Leasehold estate b. Economic rent
c. Contract rent d. Lease fee Estate

168. The equivalent of one (1) square meter is:

a. 3.28 sq. f c. 10.50 sq. ft.
c. 10.28 sq. ft. d. 32.8 sq. ft.

169. For appraisal purpose, which of the following is not caused by accrued depreciation?
a. functional obsolescence b. physical deterioration
c. economic obsolescence d. accelerated depreciation

170. The basic formula for property valuation via the income capitalization approach is:
a. V = IR b. V = I/R
c. V = R/I d. V = SP/GR

171. The valuation technique which value the land and building separately is called as:
a. Cost Approach b. Sales Comparison Approach
c. Income Approach d. Abstraction and allocation method
172. To adjust the sale price of a comparable sale with a 10% inferior location, you should:
a. Add 10% to the price b. Subtract 10% from the price
c. Multiply the price by 10% d. Multiply the price by 10%

173. To adjust the sale price of a comparable sale with a 10% superior location, you should:
a. Add 10% to the price b. Subtract 10% from the price
c. Multiply the price by 10% d. Multiply the price by 10%

174. The highest price estimated in terms of money that a real property is acquired by a buyer
who is willing to buy and a seller who is willing to sell but is not obliged or anxious to sell;
both of whom have adequate knowledge of the actual and potential use of the
property offered for a reasonable time in the open market and neither parties under
pressure to buy or sell:
a. Market Value b. Valuation
c. Value in Use d. Value in Exchange

175. A condominium unit earns a monthly income of P35,000.00 Using the monthly gross rent
multiplier of 240, building value is estimated at:
a.P840,000 b. P84,000
c.P8,400,000 d. P84,000,000.00

176. The permanence of land coupled with the long term nature of improvements
constructed on it has tended to stabilize investment in land.
a. immobility b. transferability
c. indestructibility d. utility

177. This refers to the geographical location of land that can never be changed. It is fixed.
a. immobility b. transferability
c. indestructibility d. utility

178. The area of a right triangle with a height of 10 ft and a base of 4 ft is

a. 40 sq. ft. b. 25 sq. ft.
c. 1.85 sqm d. 3.72 sqm

179. This principle refers to an over-improvement or under improvement that reflects lack of
conformity as between one property and its environment.
a. conformity b. change
c. supply and demand d. contribution

180. The following are determinants of value, except:

a. Demand b. scarcity
c. Transferability d. cost

181. Refers to the right of the owner-lessor to receive the contract rent and the reversion of
the property at the expiration of the lease contract.
a. Lease Fee Estate b. Lease Fee Money
c. Lease Contract d. Lease Purchase

182. The house flooring has an area of 30 square meters. How many vinyl tiles are needed if
size is 12 x12 inches? (choose the nearest answer)
a. 300 b. 380
c. 53 d. 323

183. The highest amount in terms of money that a property should bring given reasonable
time exposure in the open and competitive market:
a. Market Value b. Fair Market Value
c. Fair Value d. Appraised Value

184. It indicates the value of the property traded in the market which is referred to as market
value:
a. Appraised Value b. Valuation
c. Value in Use d. Value in Exchange

185. A vacant lot is rented for a car display for P24,000 per month. The interest rate applicable
to this type of property is 8%. Compute the value of property by income approach:
a. P2,400,000 b. P2,600,000
c. P2,800,000 d. P3,600,000
186. It is the process of determining monetary values of the property rights encompassed in
an ownership at some specific time/period:
a. Appraisal b. Valuation
c. Value in Use d. Value in Exchange

187. The process of making an estimate of value of any asset/property in accordance with
the generally accepted standards on a given date:
a. Appraisal b. Valuation
c. Value in Use d. Value in Exchange

188. A method of estimating market value of the property based on its income, based on the
principles of anticipation and substitution:
a. Market Data Approach b. Cost Approach
c. Income Approach d. Residual Technique

189. A method of estimating reproduction or replacement cost:

a. Market Data Approach b. Cost Approach
c. Income Approach d. Residual Technique

190. Which of the following is not a criteria for highest and best use?
a. legal permissibility b. maximum size of improvement
c. physical possibility d. financial feasibility

191. Land value can be estimated using the following approaches to value except:
a. cost approach b. market data approach
c. income approach d. land residual technique

192. A rectangular site measures 12.5 meters (frontage) by 25.6 meters (depth), of which 2.6
meters is in the public right-of-way. What is the gross and net site area?
a. 0.66 ha gross & 0.75 ha net b. 386.56 sq. m. gross & 320 sq. m. net
c. 320 sq. m. gross & 287.5 sq. m. net d. 351 sq. m. gross & 320 sq. m. net

193. This method is almost always used in appraising a house:

a. cost approach b. market data approach
c. income approach d. gross monthly multiplier

194. This appraisal principle holds that a commodity is scarce and the demand is high, hence,
its value increases is called as:
a. supply and demand b. regression
c. balance d. highest and best us

195. If a particular buyer requires a recapture of the building portion of the price in 30 years,
what is the indicated recapture rate of the building?
a. 3 % b. 3 ½ %
c. 3 1/3 % d. 3 ¼ %

196. The Cost Approach results in the most accurate appraisal of:
a. an old building b. a single family residence
c. a new building d. a vacant lot

197. Which of the following factors would not be important in comparing properties under
the Market Data Approach?
a. difference in dates of sale b. difference in financing
c. difference in appearance/condition d. difference in original cost

198. A principle in appraisal, which refers to the agents in production are labor, coordination,
capital and land. Land has the last claim on the surplus productivity of the agents in
production.
a. progression b. regression
c. balance d. highest and best use

199. An appraisal principle, which holds that the value of a property tends to be enhanced
by association with superior properties.
a. progression b. regression
c. balance d. highest and best use

200. The principle which refers to the application of larger and larger amounts of the agents in
production will produce greater and greater net income (increasing returns) up to a
point (surplus productivity), is called as:
 a. increasing and decreasing returns b. change
c. supply and demand d. substitution

201. It is that principle, which at the time of appraisal is likely to produce the greatest net
return.
a. highest and best use b. contribution
c. change d. substitution

202. This principle may be said to be the principle of increasing and decreasing returns as it
applies to some portion of improvements.
a. conformity b. contribution
c. change d. substitution

203. lf the subject property is 10% superior to Comparable Sale No. 1 and the comparable
sold for P1,000,000. What is the indicated value of the subject?
a. P1.1M b. P1.11M
c. P900K d. P909,090

204. This principle affirms the definition that value is the worth of all present and future benefits
arising from ownership and use of real property.
a. anticipation b. change
c. supply and demand d. substitution

205. Capitalization is the process by which annual net income is used to:
a. determine cost b. estimate value
c. establish depreciation d. determine taxable value

206. How Much is the indicative value of the property if its net annual income is P2,500,000
with an overall capitalization rate of 10%?
a. P2.75M b. P25M
c. P250M d. P27.5M

207. A piece of land, regardless of size and in one or more ownership is called:
a. tract of land b. Parcel
c. vacant lot d. public land

208. Which of the following refers to reconciliation?

a. loss of value due to anything
b. the process by which the appraiser determines highest and best use
c. separating the value of the land from the total value of the property
d. analyzing the results of the 3 approaches to value to determine the final estimate of
value

209-210. You are appraising a property consisting of land and building. The land has an
area of 1,000 sqm and improved with a 10 year old two storey residential apartment
building. After through inspection and investigation, you were able to gather the
following information:
a) Floor Area of the bldg. 1,200 sqm
b) Estimated RCN of the bldg. 12,000/sqm
c) Estimated Economic Life of the bldg. 40 yrs.
d) Value of Land (by market data) P25,000/sqm

The building is suffering from economic obsolescence, since the local government
declared the area as commercial and implemented a new restriction for the building to
have a Floor area ratio (FAR) of 5. Economic obsolescence is estimated at 30%.

209. What is the depreciated value of the building?

a. P10,080,000.00 b. P10,800,000.00
c. P7,560,,000.00 d. P7,650,000.00

210. What is the indicated value of the property?

a. P32,080,000.00 b. P25,080,000.00
c. P32,560,000.00 d. P22,650,000.00

211-215. Mr. Lin plans to put up a residential-commercial condominium tower in Ortigas

Center, Pasig City on a 2,000 square meter lot following a floor area ratio of 16 times. The
frontage of the lot is 40 meters and a depth of 50 meters. He made a setback of 10
meters and easement of 5 meters at the sides and rear portion of the lot. To maximize his
profits, he bought the air rights of the adjoining building which has a FAR of only 2 times.
211. What is the maximum floor area that he can put up on the lot?
a. 32,000 sq.m. b. 42,000 sq.m.
c. 60,000 sq.m. d. 22,400 sq.m.

212. What is the projected floor area of the building?

a. 32,000 sq.m. b. 42,000 sq.m.
c. 60,000 sq.m. d. 22,400 sq.m.

213. What is the final floor area of the building?

a. 58,800 sq.m. b. 42,000 sq.m.
c. 59,850 sq.m. d. 60,900 sq.m.

214. What is the total number of floors can he built if he will observe the FAR of 16 times?
a. 56 storeys b. 40 storeys
c. 57 storeys d. 58 storeys

215. How big is transfer development rights that he bought?

a. 26,000 sq. m. b. 28,000 sq. m.
c. 30,000 sq. m. d. 32,000 sq. m.

216. Which of the following approaches to value makes use of the rate of investment return?
a. Income capitalization approach b. cost approach
c. sales comparison approach d. gross income multiplier method

217. In a sale of condominium unit, the following information were gathered:

Value per Deed of Sale P3,000,000.00
Zonal Value of condominium Unit P22,500.00/sqm.
Market Value of Condominium Unit P1,500,000.00
Assessor Value of land where the condominium unit is built P2,500.00/sqm.
Zonal value land where condominium project is built P5,000.00/sqm.
Floor area of the condominium unit sold 150 sqm.
What is the capital gains tax due on the above transaction?
a. P205,200.00 b. P202,500.00
c. P180,000.00 d. P90,000.00

218. The element of value include which of the following/

a. scarcity b. anticipation
c. balance d. competition

219. A 5-storey building was constructed on an 800 sqm. lot 10 years ago. Floor area is 400
sqm. per floor. Present reproduction cost of the building is P10,000.00/sqm. and the land
was purchased five years before the building construction at P5,000.00/sqm. Assuming
the depreciation rate of the building is 2.5% per year while land appreciation is 5% per
year, what is the fair market value of the property?
a. P24,500,000.00 b. P21,500,000.00
c. P24,000,000.00 d. P22,000,000.00

220. The principle of value that states that two adjacent parcels of land combined into one
larger parcel could have a greater value than the two parcels valued separately:
a. plottage b. regression
c. progression d. substitution

221. A parcel of land has the following features: area is 900 sqm., a corner lot, higher than the
road, and almost rectangular in shape. If the prevailing price in the area if
P10,000.00/sqm. and subject lot has corner influence of 15%, topographic value of 5%
because of low elevation, and plottage value of 10% because of shape, what is the fair
market value of the lot?
a. P9,000,000.00 b. P11,700,000.00
c. P10,800.000.00 d. P10,350,000.00

222. Certain figures must be determined by an appraiser before value can be computed by
the income capitalization approach. Which of the following is not required in the
process?
a. annual net operating income b. interest rate
c. accrued depreciation d. annual gross income

223. A house costing P1,000,000.00 is surrounded by houses priced substantially higher. Which
principle in appraisal is most applicable to the P1,000,000.00 house in current appraisal?
a. substitution b. regression
c. progression d. contribution
224. Those assets which are not physical and material in nature are called:
a. intangible assets b. tangible assets
c. fixed assets d. liquid assets

225. Mr. Roxas bought a property consisting of 26 hectares, 98 ares, and 300 centares.
What is the total land area in square meter?
a. 2,698, 300 b. 26,980,300
c. 270,100 d. 2,700,100

226. Refers to the worth of an object relative to other objects with which it can be compared
and for which it can be exchange.
a. Value in Exchange b. Object Value
c. Market Value d. Appraised value

227. A vacant lot is rented for a car display for P24,000 per month. The interest rate applicable
to this type of property is 8%. Compute the value of property by income approach:
a. P2,400,000.00 b. P2,600,000.00
c. P2,800,000.00 d. P3,600,000.00

REB QUIZ NO. 14 – RURAL & URBAN LAND USE AND PLANNING, ZONING & DEVELOPMENT (31)

228. The priority right of a legitimate tenant of land on which he has built his house to
purchase the land in an urban reform zone in the event the land owner desires to sell the
land, provided that the tenancy is for at least ten (10) years is known as:
a. Tenants right of first refusal b. tenancy in common
c. tenants recovery right d. tenants waiver of rights

229. This consists of provisions of basic utilities, judicious allocation of areas, good layout
based on sound planning principles.
a. Planned Community b. Planned Subdivision
c. Planned Village d. Planned Neighborhood

230. The change in the development of urban commercial centers is due to:
a. Urba. n Renewal b. Urban Re-development
c. Urban Decay d. Revitalization.

231. The notable depression observe along C-5 Road in Libis, Quezon City is due to the:
a. Poor ground preparation b. Fault
c. Heavy Trucks d. Eastwood City Development

232. It is a defined and pre-determined area between two (2) areas of predominantly
different land use/s.
a. Buffer Zone b. Buffer
c. Buffer Strip d. Buffering

233. It is a process that involves predicting and evaluating the likely impacts of a project
on the environment during construction, commissioning, operation and abandonment.
a. ECP b. EIA
c. ECC d. ECA

234. The Philippine Environmental Impact System (EIS) was formally established in 1978 by
virtue of _______.
a. PD 1586 b. RA 6465
c. RA 1586 d. PD 857

235. The country where industrial district at Kalundborg, often labeled as an “industrial
ecosystem” or “industrial symbiosis” is situated
a. USA b. Germany
c. Denmark d. Philippines

236. It is the national agenda for sustainable development. It outlines the integrating
strategies for the country’s overall sustainable development and identifies the
intervention areas from the national to the regional level.
a. PA 20 b. SD 21
c. PA 21 d.SD 20

237. It refers to meeting the needs of the present without compromising the ability of future
generations to meet their own needs.
 a. Biodiversity b. conservation
c. Ecological footprint d. sustainable development

238. It refers to the management of the earth’s resources in a way, which aims to restore and
maintain the balance between human requirements and the other species of the world.
a. Biodiversity b. conservation
c. Ecological footprint d. sustainable development

239. The maximum length of block as provided in the HLURB design standards for a subdivision
shall be 400 meters, however blocks exceeding 250 meters shall be provided with an
alley at approximately at certain length.
a. 1/3 of its length b. ¾ of its length
c. mid-length or ½ its length d. 2/3 of its length

240. As provided in design standards of HLURB, the number of row houses shall not exceed 20
units per block/cluster but in no case shall this be beyond such numbers of length.
a. 100 meters b. 400 meters
c. 200 meter d. 300 meters

241. It is land identified, as part of this zone shall qualify for exemption from the coverage of
R.A. 7279 (UDHA) and R.A. 6657 (CARP).
a. Philippine Economic Zone (PEZ) b. Forest Reserved Zone
c. Tourism Economic Zone (TEZ) d. National Park Zone

242. The priority right of a tenant to buy the land located in an urban land reform area is
known as
a. Tenant’s possessory right b. Tenant’s incremental right
c. Tenant’s right of first refusal d. None of the above

243. Lands in the National Capital Region are covered by the Urban Land Reform Law when
they are:
a. Big landed areas b. Abandoned and idle lands
b. Within 244 area for priority development d. Suitable for socialized housing

244. The national approach of allocating available land resources as equitably as possible
between competing user group is:
a. Land assembly b. Land use planning
c. On-site development d. Urban renewal

245. It refers to acquisition of lots of varying ownership through purchase or expropriation for
the purpose of planned and national development and social housing program without
individual property boundary restrictions:
a. Land banking b. land swapping
c. Land assembly d. Land use plan

246. The following are modes of acquiring lands for purposes of Urban Development and
Housing Act, except:
a. Community mortgage b. Joint venture agreement
c. Negotiated purchase d. Foreclosure

247. Under R.A 7279, __________shall be resorted to only when other modes of acquisition
have been exhausted.
a. Negotiated purchase b. Land consolidation
c. Expropriation d Joint Venture Agreement

248. The acquisition of land in advance of actual need based on present value for future
planned development is referred to under Urban Land Reform Law as:
a. Land assembly b. New settlement
c. Land banking d. Urban renewal

249. Refers to land located in the fringes of built up communities which has the provincial
characteristics but is favoured with metropolis utilities, facilities and amenities.
a. Urban Subdivision b. Rural Subdivision
c. Sub-urban Subdivisions d. Urbanized Land

250. Refers to develop communities within the perimeter of existing cities or municipalities of
developed urban environs.
a. Urban Subdivision b. Rural Subdivision
c. Sub-urban Subdivisions d. Urbanized Land
251. Refers to those subdivisions of provincial lands where the major portion are utilized in
agricultural purpose and only small portions are devoted for residential uses.
a. Urban Subdivision b. Rural Subdivision
c. Sub-urban Subdivisions d. Urbanized Land

252. Refers to those develop areas with community facilities, utilities, services and amenities
concentrated in a contiguous population or neighborhood.
a. Urban Subdivision b. Rural Subdivision
c. Sub-urban Subdivisions d. Urbanized Land

253. It is the rational and deliberate allocation of land resources to different uses based on
the comprehensive and integrated plan for the area. It translates the socio-economic,
the infrastructure and environmental plan into land allocations
a. Zoning Ordinance b. Planning & Development
c. Land Use Plan d. Zoning

254. Refers to land devoted to or suitable to agriculture as defined in RA 6657 and owned by
natural or judicial person/s, or by the government in its proprietary capacity.
a. Conversion b. Agricultural Land
c. Private Agricultural Land d. Environment

255. Implements a comprehensive agrarian reform with the intention that any conversion of a
private agricultural land to non-agricultural uses should first be cleared before hand by
the Department of Agrarian Reform.
a. Comprehensive Agrarian Reform b. Comprehensive Agrarian Development
c. Comprehensive Agrarian Reform Program d. Comprehensive Agrarian Reform Law

256. Conversion is the change of the current use of a piece of agricultural land into non-
agricultural use; such permit is proper only upon issuance of a clearance from the:
a. LGU b. DAR
c. DENR d. DA

257. Land Administration is the system implemented by the State:

a. to administer land rights b. to administer land management
c. to administer land reclassification d. to administer land conversion

258. It is the division of the community into functional zones based on the present and
potential uses of properties for the purpose of regulating the use and growth of
properties in accordance with the comprehensive development plan of the town/city.
a. Zoning Ordinance b. Planning & Development
c. Land Use Plan d. Zoning

259. It is the locally enacted legislation which embodies among other a) regulations affecting
uses allowed or disallowed in each zone or district; for allowing them procedures for
processing a request for a clearance and d) penalties for violating any of its
provisions.
a. Zoning Ordinance b. Planning & Development
c. Land Use Plan d. Zoning

260. Land Management is the system implemented by the State to manage the allocation
and use of land resources and the social, economic, and environmental issues that
relate to its:
a. allocation and reclassification b. allocation and land conversion
c. allocation and distribution d. allocation and use