Home Buying Expert | Pre-test 2

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| By JayD1
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JayD1
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Quizzes Created: 2 | Total Attempts: 287
Questions: 20 | Attempts: 130

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Home Buying Expert | Pre-test 2 - Quiz

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Questions and Answers
  • 1. 

    What is Loading?

    • A.

      Difference between Built up area and the carpet area

    • B.

      Difference between Carpet Area and Super Built up Area

    • C.

      Difference between Built Up are and Super Built up area

    • D.

      None of the above

    Correct Answer
    B. Difference between Carpet Area and Super Built up Area
    Explanation
    The correct answer is "Difference between Carpet Area and Super Built up Area". This answer explains that the difference between the carpet area and the super built up area is being asked. The carpet area refers to the actual usable area within a property, while the super built up area includes the carpet area plus the proportionate share of common areas such as corridors, staircases, and lobbies.

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  • 2. 

    If a property has a club house, it is never considered as a part of the open space area.

    • A.

      True

    • B.

      False

    Correct Answer
    B. False
    Explanation
    The statement is false because a property having a clubhouse does not exclude it from being considered as part of the open space area. A clubhouse can be a part of the overall open space design of a property and can still contribute to the open and recreational areas available to residents.

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  • 3. 

    If a plot has an FSI of “5” and there are no height restrictions in the location, the project has open space of 75%, what can be the maximum height of the building?

    • A.

      G+5 Floors

    • B.

      G+10 Floors

    • C.

      G+20 Floors

    • D.

      G+25 Floors

    • E.

      G+19 Floors

    Correct Answer
    E. G+19 Floors
    Explanation
    If a plot has an FSI of "5" and there are no height restrictions in the location, the project has open space of 75%, the maximum height of the building can be G+19 Floors. The Floor Space Index (FSI) of 5 means that the total floor area of the building can be up to 5 times the size of the plot. Since there are no height restrictions, the building can be constructed with maximum floors. The open space requirement of 75% means that 25% of the plot area must be left as open space, which allows for the construction of G+19 Floors.

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  • 4. 

    _______ is the most expensive part of construction? Select all that apply

    • A.

      Excavation

    • B.

      Foundation Work

    • C.

      Floor Slabs

    • D.

      Tiling and Painting

    Correct Answer(s)
    A. Excavation
    B. Foundation Work
    Explanation
    Excavation and foundation work are the most expensive parts of construction because they involve extensive labor, machinery, and materials. Excavation requires the removal of large amounts of soil and rocks to prepare the site for construction, which can be time-consuming and costly. Foundation work involves constructing the base of the building, which requires skilled labor and specialized materials like concrete and steel. Both excavation and foundation work are critical to the stability and longevity of the structure, making them costly components of the construction process.

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  • 5. 

    At approximately what stage of construction do developers typically pre-launch?

    • A.

      When the excavation hasn’t started (bare land)

    • B.

      When the excavation and foundation work has just started

    • C.

      Completion of Excavation and foundation

    • D.

      Completion of first floor slab

    • E.

      Completion of Project

    Correct Answer(s)
    A. When the excavation hasn’t started (bare land)
    B. When the excavation and foundation work has just started
    Explanation
    Developers typically pre-launch a construction project when the excavation hasn't started or when the excavation and foundation work has just started. This is because pre-launching allows developers to generate interest and secure potential buyers or investors before the project is fully completed. By pre-launching at these stages, developers can showcase the project's plans, designs, and potential benefits to attract early interest and secure commitments. This strategy helps developers gauge market demand, secure funding, and mitigate risks before proceeding with the full construction process.

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  • 6. 

    Mrs. Lakhani is very particular about Vastu in the home she wants to purchase, when she looks at the apartment layout, while exiting the house she is facing south. Is the entrance Vastu compliant?

    • A.

      Yes

    • B.

      No

    Correct Answer
    B. No
    Explanation
    The entrance is not Vastu compliant because as per Vastu principles, it is considered inauspicious for the main entrance of a home to face south. It is believed that a south-facing entrance brings negative energy and may lead to financial and health problems for the occupants. Therefore, Mrs. Lakhani should look for a home with a different entrance direction to ensure Vastu compliance.

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  • 7. 

    Mr Iyer, likes an apartment which has a carpet area of 1000sq ft and Salable area of 1500Sq ft., what is the loading percentage?

    • A.

      50%

    • B.

      33%

    • C.

      25%

    • D.

      35%

    Correct Answer
    B. 33%
    Explanation
    The loading percentage is calculated by taking the difference between the salable area and the carpet area, dividing it by the carpet area, and then multiplying by 100. In this case, the difference between the salable area (1500 sq ft) and the carpet area (1000 sq ft) is 500 sq ft. Dividing 500 by 1000 and multiplying by 100 gives us 50%. Therefore, the correct answer is 50%.

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  • 8. 

    Which are the applicable when a property has a clear title?

    • A.

      The land is legally owned by the developer and/or its partners

    • B.

      It is not disputed- No other party has any claim on the proposed land.

    • C.

      Developer has rights to use the land for residential construction purposes.

    • D.

      Builder has commencement certificates.

    Correct Answer(s)
    A. The land is legally owned by the developer and/or its partners
    B. It is not disputed- No other party has any claim on the proposed land.
    C. Developer has rights to use the land for residential construction purposes.
    Explanation
    When a property has a clear title, it means that the land is legally owned by the developer and/or its partners. Additionally, there are no disputes or claims from any other party on the proposed land. Moreover, the developer has the rights to use the land specifically for residential construction purposes. These factors indicate that the property has a clear title and can be legally and safely used for residential development.

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  • 9. 

    What is a commencement certificate?

    • A.

      It is an official document issued by the local authorities to allow or permit the builder to begin construction.

    • B.

      It is an official document issued by central government to allow the permit the contractor to sanction the project

    • C.

      It is the document required by the owner of the house to renovate it.

    • D.

      The document required by the local authority to permit the occupancy by the owner

    Correct Answer
    A. It is an official document issued by the local authorities to allow or permit the builder to begin construction.
    Explanation
    A commencement certificate is an official document issued by the local authorities to allow or permit the builder to begin construction. This certificate serves as proof that the builder has obtained all necessary approvals and clearances required to commence the construction project. It ensures that the construction is in compliance with local regulations and building codes.

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  • 10. 

    An owner cannot legally occupy his/her apartment unless the ________certificate has been obtained by the developer 

    • A.

      Commencement

    • B.

      Completion

    • C.

      Occupancy

    Correct Answer
    C. Occupancy
    Explanation
    In order for an owner to legally occupy their apartment, they must obtain the occupancy certificate from the developer. This certificate is issued by the local authorities after inspecting the building and ensuring that it meets all the necessary safety and building regulations. It signifies that the construction is completed and the apartment is ready for occupation. Without the occupancy certificate, the owner would not be allowed to legally occupy the apartment.

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  • 11. 

    What is an allotment letter?

    • A.

      This letter is given to the customer at the time of loan but before the Agreement is made.

    • B.

      This letter is given to the customer at the time of possession but before the Agreement is made.

    • C.

      This letter is given to the customer at the time of booking but after the Agreement is made.

    • D.

      This letter is given to the customer at the time of or soon after booking but before the Agreement is made.

    Correct Answer
    D. This letter is given to the customer at the time of or soon after booking but before the Agreement is made.
    Explanation
    An allotment letter is given to the customer at the time of or soon after booking but before the Agreement is made. This letter serves as confirmation of the customer's booking and outlines the terms and conditions of the agreement. It provides important information such as the allotted property details, payment schedule, and any other relevant instructions or requirements. It is an essential document that establishes the customer's rights and obligations regarding the property purchase.

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  • 12. 

    Agreement of sale is ____

    • A.

      Legal document which lists all terms and conditions pertaining to the purchase of undivided share (UDS) of land.

    • B.

      Legal document which lists all terms and conditions pertaining to the sale of undivided share (UDS) of land as well as Construction agreement.

    • C.

      Government document which lists all terms and conditions pertaining to the sale of undivided share (UDS) of land as well as Construction agreement.

    • D.

      Tri party agreement which lists all terms and conditions pertaining to the sale and loan of undivided share (UDS) of land as well as Construction agreement.

    Correct Answer
    B. Legal document which lists all terms and conditions pertaining to the sale of undivided share (UDS) of land as well as Construction agreement.
    Explanation
    The correct answer is a legal document which lists all terms and conditions pertaining to the sale of undivided share (UDS) of land as well as Construction agreement. This explanation accurately describes an agreement of sale as a legal document that outlines the terms and conditions of the sale of a UDS of land, as well as any associated construction agreement.

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  • 13. 

    What is a Time tied payment plan?

    • A.

      Daily payments – Not tied to Construction progress

    • B.

      Quarterly or monthly payments – Not tied to Construction progress

    • C.

      Periodic payments (monthly, quarterly, etc….) linked with construction progress

    • D.

      Customer is requested to make payments based on construction on or before a specified time

    Correct Answer
    B. Quarterly or monthly payments – Not tied to Construction progress
    Explanation
    A time tied payment plan refers to a payment schedule that is linked with the progress of construction. However, the correct answer states that quarterly or monthly payments are not tied to construction progress. This means that the customer is not required to make payments based on the progress of the construction, but rather on a predetermined schedule, regardless of the construction progress.

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  • 14. 

    What is 20:80 Subvention scheme with Pre EMI Holiday

    • A.

      If the down payment is 20%, the loan is 80% and the bank pays Pre-EMI on behalf of the customer, the scheme is called 20:80 Subvention scheme with Pre-EMI Holiday

    • B.

      If the down payment is 20%, the loan is 80% and the developer pays Pre-EMI on behalf of the customer, the scheme is called 20:80 Subvention scheme with Pre-EMI Holiday

    • C.

      If the down payment is 20%, the customer is not availing loan and opts to pay Pre-EMI, the scheme is called 20:80 Subvention scheme with Pre-EMI Holiday

    Correct Answer
    B. If the down payment is 20%, the loan is 80% and the developer pays Pre-EMI on behalf of the customer, the scheme is called 20:80 Subvention scheme with Pre-EMI Holiday
    Explanation
    The correct answer states that if the down payment is 20%, the loan is 80%, and the developer pays Pre-EMI on behalf of the customer, then the scheme is called 20:80 Subvention scheme with Pre-EMI Holiday. This means that in this scheme, the customer only needs to pay the down payment of 20% and the developer will cover the Pre-EMI payments until the possession of the property. This allows the customer to have a holiday period from paying the EMI, making it a beneficial scheme for the customer.

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  • 15. 

    What is the meaning of Pre-EMI?

    • A.

      Interest due on the loan amount disbursed by a bank as per the project’s payment plan

    • B.

      50% of the EMI for an under construction building

    • C.

      Interest due on full loan amount pre-paid during construction

    • D.

      25% of the EMI for an under construction building

    Correct Answer
    A. Interest due on the loan amount disbursed by a bank as per the project’s payment plan
    Explanation
    Pre-EMI refers to the interest that is due on the loan amount disbursed by a bank as per the payment plan of a project. This means that before the actual equated monthly installments (EMIs) begin, the borrower is required to pay the interest on the disbursed loan amount. It is a common practice in the real estate sector, especially for under-construction properties, where the borrower starts paying the interest on the loan amount that has been disbursed by the bank, even before the full loan amount is utilized or the construction is completed.

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  • 16. 

    If the developer asks only for 10% down payment, the bank gives 80% loan, the bank pays Pre-EMI interest and the rest 10% is due from the customer at possession, it is called 10:80:10 subvention scheme with Pre-EMI holiday

    • A.

      True

    • B.

      False

    Correct Answer
    B. False
  • 17. 

    What are the key points to pitch to a customer in case of a Pre-Launch Project?

    • A.

      Choice of inventory and scope of appreciation

    • B.

      Brand new, clean apartment when the building is ready

    • C.

      Low price point

    • D.

      Quick pace of construction

    Correct Answer(s)
    A. Choice of inventory and scope of appreciation
    C. Low price point
    Explanation
    The key points to pitch to a customer in case of a Pre-Launch Project are the choice of inventory and scope of appreciation, as well as the low price point. By highlighting the choice of inventory, the customer is made aware of the different options available to them, allowing them to select the one that best suits their needs. The scope of appreciation emphasizes the potential increase in value of the property over time, making it an attractive investment opportunity. Additionally, the low price point appeals to customers looking for affordability and value for money.

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  • 18. 

    As the project construction advances, why does it become more and more unlikely that the developer will back out?

    • A.

      They worry about the customers to whom apartments have already been sold

    • B.

      Developer has made a huge financial investment in the project already, so commitment levels are higher.

    • C.

      The local authorities will not legally allow the developer to stop a project once excavation is done

    • D.

      The developer will not be able to use the land for any another purpose if the current project is abandoned

    Correct Answer
    B. Developer has made a huge financial investment in the project already, so commitment levels are higher.
    Explanation
    As the project construction advances, the developer becomes more and more unlikely to back out because they have already made a significant financial investment in the project. This means that their commitment levels are higher, as they have already put a substantial amount of money into the project and would likely face significant losses if they were to back out. Therefore, the more progress that is made on the construction, the less likely it becomes that the developer will abandon the project.

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  • 19. 

    What is one of the USPs of a LEED, GRIHA or EDGE project?

    • A.

      Potential savings on maintenance costs

    • B.

      Environmentally friendly and energy efficient project

    • C.

      60% green areas

    • D.

      All of the above

    Correct Answer
    D. All of the above
    Explanation
    The USPs (Unique Selling Points) of a LEED, GRIHA, or EDGE project include potential savings on maintenance costs, environmentally friendly and energy-efficient design, and the inclusion of 60% green areas. These projects are designed to prioritize sustainability, energy efficiency, and environmental conservation, making them attractive options for developers and investors. By incorporating all of these features, these projects offer a comprehensive solution that addresses multiple aspects of sustainable development.

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  • 20. 

    Which of these payment plans do customer prefer and why? 

    • A.

      Time tied because they can plan their expenses accordingly

    • B.

      Construction tied because it ensures that the payments due are in line with construction progress

    • C.

      Time tied because the schedule is set and the developer has very little room to deviate from schedule

    • D.

      Construction tied because the customer can be assured that the payments are directly used for further construction of the project

    Correct Answer
    B. Construction tied because it ensures that the payments due are in line with construction progress
    Explanation
    Customers prefer the construction tied payment plan because it ensures that the payments due are in line with the progress of the construction. This means that customers can be assured that their payments are directly used for further construction of the project. It provides transparency and accountability, giving customers confidence that their money is being used effectively and efficiently. Additionally, this payment plan allows customers to have a clear understanding of the construction timeline and progress, helping them to plan their finances accordingly.

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