Real Estate Broker Exam Reviewer (Nrea Part1)

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  • 1/200 Questions

    A licensed real estate broker can only hold _____ salespersons.

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About This Quiz

This Real Estate Broker Exam Reviewer (NREA part1) assesses key knowledge areas such as property rights, types of real property, legal implications of property ownership, and physical characteristics of land. It is designed for individuals preparing for the real estate broker licensure exam.

Real Estate Broker Exam Reviewer (Nrea Part1) - Quiz

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  • 2. 

    Considered real estate practitioner except:

    • Developer

    • Appraiser

    • Broker

    • Consultant

    Correct Answer
    A. Developer
    Explanation
    The given options consist of different roles in the real estate industry. A developer is not considered a real estate practitioner because their role involves the construction and improvement of properties rather than the buying, selling, or evaluation of real estate. Developers are responsible for acquiring land, obtaining financing, and overseeing the construction or renovation of buildings. They typically work on large-scale projects and collaborate with other professionals such as architects and contractors.

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  • 3. 

    Under the Code of Ethics and Responsibilities the real estate service practitioner is obligated to observe in all dealings and relations with clients, fellow practitioners, and general public the principle of treating others as you like them to treat you, or referred to as:

    • The ten commandments

    • Silver rule of practice

    • Golden rule

    • Good manners and right conduct

    Correct Answer
    A. Golden rule
    Explanation
    The correct answer is the "Golden rule." The Golden rule states that one should treat others as they would like to be treated. This principle emphasizes the importance of empathy and respect in all interactions and relationships. It encourages real estate service practitioners to consider the feelings and needs of their clients, fellow practitioners, and the general public, promoting ethical behavior and positive professional conduct.

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  • 4. 

    The best evidence of land/property ownership under the Philippine system of registration is:

    • Technical Description

    • Tax Declaration

    • Torrens Title

    • Vicinity Map

    • None of the Above

    Correct Answer
    A. Torrens Title
    Explanation
    The Torrens Title is considered the best evidence of land/property ownership under the Philippine system of registration. This is because the Torrens system provides a comprehensive and reliable method of land registration, ensuring that the title is authentic and legally binding. It provides a guarantee of ownership, free from any encumbrances or claims, and offers strong legal protection to the registered owner. The Torrens Title is recognized and accepted by courts, government agencies, and financial institutions as the highest proof of ownership in the Philippines.

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  • 5. 

    Is the legal use of land that will produce the highest capitalised net income return to its owner is based on the following principle

    • Principle of comparative advantage

    • Principle of highest and best use

    • Principle of good asset management

    • Principle of substitution

    Correct Answer
    A. Principle of highest and best use
    Explanation
    The principle of highest and best use states that the legal use of land should be the one that generates the highest capitalised net income return for its owner. This means that the land should be utilized in a way that maximizes its value and potential earnings. It takes into consideration factors such as market demand, potential income, and feasibility of different uses. By applying this principle, landowners can make informed decisions about how to best utilize their property to maximize its financial returns.

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  • 6. 

    Julie was born in the Philippines of Filipino parents. She went to the United States and married an American and thereby obtaining a US citizenship. She together with her husband went back to the Philippines and wants to work at her own time and decided to enter real estate practice. Julie applied with the PRC and her application was not accepted because of citizenship. What should Julie do to be able to take the PRC Real Estate Board Examination:

    • Divorce her husband

    • Apply for Dual Citizenship under RA 9225

    • Go to DFA and apply for Filipino citizenship

    • File and annulment of marriage and apply for reversion of her Filipino Citizenship

    Correct Answer
    A. Apply for Dual Citizenship under RA 9225
    Explanation
    Julie should apply for Dual Citizenship under RA 9225 in order to be able to take the PRC Real Estate Board Examination. This law allows natural-born Filipinos who have acquired foreign citizenship to retain or reacquire their Philippine citizenship. By applying for Dual Citizenship, Julie can regain her Filipino citizenship while still maintaining her American citizenship. This will fulfill the citizenship requirement for taking the examination.

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  • 7. 

    An act regulating the practice of Real Estate service

    • R.A. 4696

    • R.A. 2676

    • R.A. 7646

    • R.A. 9646

    Correct Answer
    A. R.A. 9646
    Explanation
    R.A. 9646 is the correct answer because it is the only option that pertains to the regulation of real estate services. R.A. 4696, R.A. 2676, and R.A. 7646 do not specifically mention real estate services in their titles or descriptions. Therefore, R.A. 9646 is the most appropriate choice for an act regulating the practice of real estate service.

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  • 8. 

    Joy has been informed that her land is being taken by the estate for the development of a new Highway. the estate will pay Joy for her land. This process is called the right of

    • Police Power

    • Escheat

    • Taxation

    • Eminent Domain

    Correct Answer
    A. Eminent Domain
    Explanation
    Eminent Domain is the correct answer because it refers to the government's power to take private property for public use, as long as just compensation is provided to the owner. In this scenario, Joy's land is being taken by the estate for the development of a new Highway, and she will be compensated for her land. This demonstrates the process of eminent domain, where the government exercises its authority to acquire private property for public purposes.

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  • 9. 

    An application for registration of Real Estate Broker's license must be accompanied by:

    • Cash bond of P5,000.00

    • Surety Bond of P5,000.00

    • Cash bond of P10,000.00

    • Surety Bond of P20,000.00

    Correct Answer
    A. Surety Bond of P20,000.00
    Explanation
    The correct answer is the Surety Bond of P20,000.00. This is because the question asks for the requirement that must accompany the application for registration of a Real Estate Broker's license. A surety bond is a type of insurance that guarantees the fulfillment of certain obligations, in this case, the obligations of a Real Estate Broker. The amount of P20,000.00 is the specified value for the surety bond.

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  • 10. 

    Using other people's money to purchase real property.

    • Leverage

    • Multiplier effect

    • Economies of scale

    • Stagflation

    Correct Answer
    A. Leverage
    Explanation
    Leverage refers to the practice of using borrowed funds or other people's money to finance the purchase of real property. By using leverage, an individual or business can increase their purchasing power and acquire more property than they would be able to with their own funds alone. This allows them to take advantage of potential appreciation in the property's value and generate higher returns on their investment. However, it also increases the risk as any losses incurred will also be magnified.

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  • 11. 

    The share of an illegitimate child is equivalent to

    • Same as the share of the spouse

    • 1/2 of the share of the spouse

    • Same as the share of a legitimate child

    • 1/2 share of a legitimate child

    Correct Answer
    A. 1/2 share of a legitimate child
    Explanation
    The share of an illegitimate child is 1/2 of the share of a legitimate child. This means that an illegitimate child would receive half of what a legitimate child would receive in terms of inheritance or property distribution.

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  • 12. 

    ________ represents the final payment in an installment plan which is bigger than the previous installments and which liquidates the entire obligation.

    • One-time payment

    • Balloon payment

    • Final payment

    • Settlement Payment

    Correct Answer
    A. Balloon payment
    Explanation
    A balloon payment refers to the final payment in an installment plan that is larger than the previous installments. It is called a balloon payment because it "inflates" the total amount due, effectively "liquidating" or paying off the entire obligation. This type of payment structure is often used in loans or mortgages where the borrower makes smaller regular payments throughout the term and then a larger lump sum payment at the end to fully satisfy the debt.

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  • 13. 

    It is a flat presentation of earth's surface in paper.

    • Map

    • Survey

    • Lot Plotting

    • Gridiron

    Correct Answer
    A. Map
    Explanation
    A map is a representation of the earth's surface on a flat piece of paper. It provides a visual and spatial understanding of different locations, landmarks, and geographical features. Maps are used for various purposes such as navigation, planning, and studying the Earth's surface. They can range from simple road maps to more detailed topographic maps that show elevation and terrain features. Overall, a map is a useful tool for understanding and interpreting the physical layout of the Earth.

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  • 14. 

    Dual Citizenship Law

    • RA 9225

    • RA 2592

    • RA 2295

    • RA 5292

    Correct Answer
    A. RA 9225
    Explanation
    RA 9225 is the correct answer because it is the law that allows natural-born Filipinos who have acquired foreign citizenship to retain or reacquire their Philippine citizenship. This law grants dual citizenship to eligible individuals, allowing them to enjoy the rights and privileges of being both a Filipino and a citizen of another country. It also provides a streamlined process for reacquiring Philippine citizenship, making it easier for overseas Filipinos to maintain their connections to their home country.

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  • 15. 

    Real Estate Brokers Examination subjects in the PRC Licensure exam except.

    • Fundamentals of Property Ownership

    • Code of Ethics and Responsibilities

    • Real Estate Finance and Economics

    • Real Estate Consulting and Investment Analysis

    Correct Answer
    A. Real Estate Consulting and Investment Analysis
    Explanation
    Real Estate Consulting and Investment Analysis is not a subject included in the Real Estate Brokers Examination in the PRC Licensure exam. The other subjects listed, such as Fundamentals of Property Ownership, Code of Ethics and Responsibilities, and Real Estate Finance and Economics, are all part of the exam.

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  • 16. 

    Alienable lands of public domain shall be limited to:

    • Industrial

    • Institutional

    • Agricultural

    • Forestry

    Correct Answer
    A. Agricultural
    Explanation
    Alienable lands of public domain refers to lands that can be transferred or sold to private individuals or entities. In this context, the correct answer "Agricultural" indicates that these lands are specifically designated for agricultural purposes. This means that they can be used for farming, cultivation, or any other agricultural activities. The other options, such as industrial, institutional, and forestry, do not fall under the category of alienable lands of public domain.

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  • 17. 

    Condominium Act of the Philippines

    • R.A. 2646

    • R.A. 4726

    • R.A. 2546

    • R.A. 2674

    Correct Answer
    A. R.A. 4726
    Explanation
    R.A. 4726 is the correct answer because it is the actual Condominium Act of the Philippines. R.A. 2646, R.A. 2546, and R.A. 2674 are not related to condominiums.

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  • 18. 

    One where the mortgage obligation can be paid off at any time before maturity.

    • Open mortgage

    • Close mortgage

    • Senior mortgage

    • Junior mortgage

    Correct Answer
    A. Open mortgage
    Explanation
    An open mortgage refers to a type of mortgage where the borrower has the flexibility to pay off the mortgage at any time before it reaches its maturity date. This means that the borrower can make extra payments or pay off the entire mortgage balance without incurring any penalties. This type of mortgage is advantageous for individuals who anticipate having extra funds in the future or want the freedom to pay off their mortgage sooner.

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  • 19. 

    Your uncle died without a will, and you inherited his real estate. The way in which you would acquire his estate is by:

    • Accession

    • Succession

    • Escheat

    • Avulsion

    Correct Answer
    A. Succession
    Explanation
    Succession is the correct answer because when someone dies without a will, their property is distributed to their heirs according to the laws of intestate succession. As the nephew/niece of the deceased, you would be considered an heir and would therefore inherit the real estate. Accession refers to the acquisition of property through the addition of improvements or natural growth, which is not applicable in this scenario. Escheat occurs when a person dies without any known heirs and their property reverts to the state, which is also not applicable here. Avulsion refers to the sudden removal of land by natural forces, which is unrelated to inheriting property.

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  • 20. 

    The water rights of a landowner adjacent to a stream are known as

    • Equitable Rights

    • Littoral Rights

    • Riparian Rights

    • Appropriation Rights

    Correct Answer
    A. Riparian Rights
    Explanation
    Riparian rights refer to the water rights of a landowner who owns property adjacent to a stream. These rights allow the landowner to use the water for reasonable and beneficial purposes, such as irrigation or drinking water, as long as it does not interfere with the rights of other riparian owners. Riparian rights are based on the concept of natural flow and are common in common law jurisdictions. They are different from appropriation rights, which involve obtaining water rights through a permit or legal process. Equitable rights and littoral rights are not applicable in this context.

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  • 21. 

    Subdivision and Condominium Buyers Protective Decree

    • PD 957

    • PD 1529

    • PD 1517

    • PD 1216

    • PD 471

    Correct Answer
    A. PD 957
    Explanation
    PD 957, also known as the Subdivision and Condominium Buyers Protective Decree, is the correct answer. This decree was enacted to protect the rights and interests of subdivision and condominium buyers. It sets forth regulations and guidelines for developers, ensuring that they comply with certain requirements such as providing necessary facilities and amenities, obtaining necessary permits, and delivering titles to buyers. PD 957 aims to safeguard the rights of buyers and promote transparency and fairness in the sale of subdivision and condominium properties.

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  • 22. 

    A document issued by the DENR Secretary that the proposed project will not cause a significant negative environmental impact.

    • Environmental Compliance Certificate

    • Environmental Impact Assessment

    • Environmental Impact Statement

    • Environmental Assessment Survey

    Correct Answer
    A. Environmental Compliance Certificate
    Explanation
    An Environmental Compliance Certificate is a document issued by the DENR Secretary to confirm that a proposed project will not have a significant negative impact on the environment. This certificate is given after a thorough assessment of the project's potential environmental effects. It indicates that the project has met all the necessary environmental standards and regulations, ensuring that it will not harm the surrounding ecosystem or cause any adverse environmental consequences.

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  • 23. 

    When the principles and theory of general economics are paired and matched with the principles and practice of Real Estate, we see the emergence of:

    • Industrial Economics

    • Real estate economics

    • Macroeconomics

    • Microeconomics

    Correct Answer
    A. Real estate economics
    Explanation
    Real estate economics is the correct answer because it refers to the application of economic principles and theories to the real estate market. It involves analyzing factors such as supply and demand, market trends, pricing, and investment strategies in the context of real estate. This field explores how economic concepts influence the buying, selling, and development of properties, as well as the overall functioning of the real estate market. By combining the principles and theory of general economics with the specific considerations of the real estate industry, real estate economics provides insights and tools for understanding and making informed decisions in this sector.

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  • 24. 

    Probate of a will means:

    • Dividing the state of the testator based on his will

    • Filing and submitting the will to the court to determine authenticity and who will inherit the property of the deceased person.

    • To prepare a will before a notary public

    • To distribute the property based on the testator's will

    Correct Answer
    A. Filing and submitting the will to the court to determine authenticity and who will inherit the property of the deceased person.
    Explanation
    Probate of a will refers to the process of filing and submitting the will to the court in order to establish its authenticity and determine how the property of the deceased person will be distributed among the beneficiaries. This legal procedure ensures that the wishes of the testator, as outlined in the will, are honored and that the rightful heirs receive their inheritance.

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  • 25. 

    A result of super-imposition or overlays of soil and slope maps taking into consideration rainfall intensity and tidal fluctuations of bodies of water, it shows the degree of potentiality of an area to water inundation.

    • Land capability map

    • Land suitability map

    • Irrigation map

    • Flooding hazard map

    Correct Answer
    A. Flooding hazard map
    Explanation
    A flooding hazard map is a result of super-imposition or overlays of soil and slope maps, considering rainfall intensity and tidal fluctuations. It shows the degree of potentiality of an area to water inundation. This map helps identify areas that are at risk of flooding, allowing for better planning and management of flood-prone areas. It is used to assess the potential impact of flooding on infrastructure, agriculture, and human settlements, and can aid in making informed decisions regarding land use and development in flood-prone areas.

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  • 26. 

    The zonal value of property can be obtained from:

    • Assessor's office

    • Bureau of Internal Revenue

    • Land Registration Authority

    • DENR

    Correct Answer
    A. Bureau of Internal Revenue
    Explanation
    The correct answer is Bureau of Internal Revenue because they are responsible for determining the zonal value of properties for tax purposes. They assess the value of properties based on their location and other factors to determine the appropriate taxes that should be paid. The Assessor's office, Land Registration Authority, and DENR may have information related to property values, but the Bureau of Internal Revenue specifically deals with determining the zonal value for taxation purposes.

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  • 27. 

    Results of the examination shall be released within ____ from the last day of the examination

    • 5 days

    • 15 days

    • 10 days

    • 20 days

    Correct Answer
    A. 10 days
    Explanation
    The results of the examination will be released within 10 days from the last day of the examination. This means that the students will not have to wait for a long period of time to find out their scores. It also indicates that the grading and evaluation process will be completed within a reasonable timeframe, allowing the students to move forward with their academic plans or take any necessary actions based on their results.

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  • 28. 

    Which of the following terms would include the interests, benefits, and rights inherent in the Ownership of Real Estate?

    • Chattel

    • Real Property

    • Personal Property

    • Trade Fixtures

    Correct Answer
    A. Real Property
    Explanation
    Real Property refers to land and any structures or improvements attached to it. It includes the interests, benefits, and rights that come with owning real estate, such as the right to possess, use, and transfer the property. Chattel refers to personal property that is movable, while Personal Property refers to any property that is not real property. Trade Fixtures are items that are attached to a property for business purposes but can be removed by the tenant. Therefore, Real Property is the correct term that encompasses the interests, benefits, and rights inherent in the ownership of real estate.

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  • 29. 

    Maria objected to the violation of a deed of restriction in her subdivision but waited one year to request a court injunction to enforce the restriction. The judge subsequently ruled that Maria had waited too long to request for court action. The judge would not issue the injunction. Maria's loss is an example of 

    • Accession

    • Laches

    • Reliction

    • Annexation

    Correct Answer
    A. Laches
    Explanation
    Laches refers to the unreasonable delay or negligence in asserting one's legal rights, which can result in the loss of those rights. In this case, Maria objected to the violation of a deed of restriction in her subdivision but waited one year before requesting a court injunction to enforce the restriction. The judge ruled that Maria had waited too long to request court action, indicating that she had been negligent in asserting her rights in a timely manner. As a result, the judge refused to issue the injunction, and Maria suffered a loss due to her delay in taking legal action.

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  • 30. 

    The non-living part of an organism's environment

    • Abiotic factor

    • Biotic factors

    • Biosphere

    • Autotrophs

    Correct Answer
    A. Abiotic factor
    Explanation
    Abiotic factors refer to the non-living components of an organism's environment. These factors include physical and chemical elements such as temperature, sunlight, water, soil, and air. They play a crucial role in shaping the ecosystem and influencing the survival and growth of organisms. Biotic factors, on the other hand, are the living components of the environment, including other organisms. The biosphere refers to the zone on Earth where life exists, encompassing all biotic and abiotic factors. Autotrophs are organisms that can produce their own food through photosynthesis or chemosynthesis.

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  • 31. 

    The Priority right of a tenant to buy the land located in an urban land reform area is known as:

    • Tenant's Possessory Right

    • Tenant's Retention Right

    • Tenant's Incremental Right

    • Tenant's Right of First Refusal

    Correct Answer
    A. Tenant's Right of First Refusal
    Explanation
    The correct answer is Tenant's Right of First Refusal. This refers to the priority right that a tenant has to purchase the land they are currently occupying in an urban land reform area. This right gives the tenant the first opportunity to buy the land before it is offered to any other potential buyers. It is a legal protection that aims to support tenants in securing their tenure and preventing displacement from their homes or businesses.

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  • 32. 

    The standard color scheme for parks and open spaces.

    • Red

    • Blue

    • Yellow

    • Violet

    • Yellow green

    Correct Answer
    A. Yellow green
    Explanation
    The correct answer is Yellow green. Yellow green is often used in the standard color scheme for parks and open spaces because it represents nature and freshness. This color combination helps create a calming and serene environment, which is desirable for outdoor recreational areas. Yellow green also complements the surrounding greenery, making it a popular choice for park design.

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  • 33. 

    Licensed practitioner who violated RESA Law may be penalized by imprisonment of no less than

    • 6 months

    • 2 years

    • One year

    • 4 years

    Correct Answer
    A. 2 years
    Explanation
    A licensed practitioner who violates the RESA Law may face penalties, one of which is imprisonment. The correct answer is "2 years." This means that if a licensed practitioner is found guilty of violating the RESA Law, they may be sentenced to a minimum of 2 years in prison. It is important for licensed practitioners to adhere to the RESA Law to avoid facing such penalties.

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  • 34. 

    Examples of abiotic factors are:

    • Carbohydrates and nitrogen

    • Plants

    • Decomposers

    • Animals

    Correct Answer
    A. Carbohydrates and nitrogen
    Explanation
    The given options include "Carbohydrates and nitrogen" along with other options like "Plants", "Decomposers", and "Animals". However, "Carbohydrates and nitrogen" are not living organisms or biological entities, but rather abiotic factors. Abiotic factors refer to non-living components of an ecosystem that can influence the living organisms within it. In this case, carbohydrates and nitrogen are essential abiotic factors that play a significant role in the growth and development of living organisms, particularly plants.

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  • 35. 

    Revision of assessment by assessor shall be made:

    • Every 2 years

    • Every 3 years

    • Every 4 years

    • Every 5 years

    Correct Answer
    A. Every 3 years
    Explanation
    The correct answer is "Every 3 years" because it is the most reasonable and balanced option. Revising assessments every 2 years might be too frequent and time-consuming, while revising every 4 or 5 years might not provide enough opportunities for improvement. Therefore, revising assessments every 3 years strikes a good balance between keeping assessments up to date and allowing sufficient time for meaningful revisions.

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  • 36. 

    Maximum acquisition of former natural born Filipino citizens for residential purpose in Urban Land.

    • 500 sq.m.

    • 1,500 sq.m.

    • 1,000 sq.m.

    • 2,000 sq.m.

    Correct Answer
    A. 1,000 sq.m.
    Explanation
    Former natural born Filipino citizens are allowed to acquire a maximum of 1,000 sq.m. of urban land for residential purposes. This means that if they want to purchase urban land to build a residence, the maximum area they can acquire is 1,000 sq.m. This limit is set to ensure that there is fair distribution of land and to prevent monopolization of urban land by former Filipino citizens.

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  • 37. 

    If an unmarried person dies, his estate shall be inherited by:

    • Parents only

    • Brother and sister only

    • Parents, brother and sister only

    • Parents, brother and sister and nephews and nieces

    Correct Answer
    A. Parents only
    Explanation
    If an unmarried person dies without a will, their estate is typically inherited by their closest living relatives. In this case, the correct answer is "Parents only." This means that if the person has both parents alive at the time of their death, the parents will inherit their entire estate. Other relatives like siblings (brother and sister), and nephews and nieces would not be entitled to inherit the estate in this scenario.

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  • 38. 

    The minimum water supply requirement to provide the average daily demand (ADD) to all homeowners.

    • 100 liters/person/day

    • 150 liters/person/day

    • 200 liters/person/day

    • 250 liters/person/day

    • 300 liters/person/day

    Correct Answer
    A. 150 liters/person/day
    Explanation
    The correct answer is 150 liters/person/day. This is the minimum water supply requirement needed to provide the average daily demand to all homeowners. It ensures that each person has enough water for their daily needs, including drinking, cooking, cleaning, and sanitation. Providing less than 150 liters/person/day may lead to water shortages and inadequate access to clean water for basic needs. On the other hand, supplying more than 150 liters/person/day may result in wastage of water resources. Therefore, 150 liters/person/day strikes a balance between meeting the demand and conserving water.

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  • 39. 

    A subdivision where no street or open space is delineated.

    • Residential subdivision

    • Complex subdivision

    • Simple subdivision

    • Subdivision project

    Correct Answer
    A. Simple subdivision
    Explanation
    A simple subdivision refers to a type of subdivision where no street or open space is delineated. This means that the land is divided into smaller lots or parcels without any designated streets or common areas. In a simple subdivision, the focus is primarily on dividing the land into individual residential lots, without any additional amenities or communal spaces. This type of subdivision is typically straightforward and does not involve the creation of complex infrastructure or shared areas.

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  • 40. 

    States that the value of property tends to be enhanced by association with superior properties.

    • Conformity

    • Progression

    • Regression

    • Contribution

    Correct Answer
    A. Progression
    Explanation
    This statement suggests that when a property is associated with superior properties, its value tends to increase over time. This implies that the property is progressing in terms of its value and desirability. Therefore, the correct answer is "Progression".

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  • 41. 

    Removing a cloud on a title or establishing title, by a proper action in court.

    • Quieting Title

    • Court Order

    • Cancellation of Lis Pendense

    • Reconveyance

    Correct Answer
    A. Quieting Title
    Explanation
    Quieting title refers to the legal process of resolving any disputes or uncertainties regarding the ownership of a property. It involves filing a lawsuit in court to establish clear and marketable title to the property, removing any clouds or claims on the title. This process ensures that the owner has undisputed ownership rights and can sell or transfer the property without any legal issues. Therefore, the answer "Quieting Title" is the most appropriate choice as it accurately describes the action of removing a cloud on a title or establishing title through a court proceeding.

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  • 42. 

    An agreement where the consideration of a contract is deposited with a third party who is authorized to release said consideration to the seller after the latter has complied with certain condition.

    • Option

    • Hold-over clause

    • Escrow

    • Contract to sell

    Correct Answer
    A. Escrow
    Explanation
    Escrow is the correct answer because it perfectly matches the given explanation. In an escrow agreement, the consideration (usually money) of a contract is held by a third party until certain conditions are met. Once the seller fulfills these conditions, the third party releases the consideration to them. This arrangement ensures that both parties fulfill their obligations in the contract before the funds are transferred, providing security and trust in the transaction.

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  • 43. 

    A real estate salesperson is employed by a Real Estate Broker who is accredited in John Doe Development  Corporation. Said salesperson has a serious prospect buyer but was interested in a competitor Developer project. What should the salesperson do to close the sale.

    • Affiliate with other broker who is accredited with the competitor developer.

    • Ask the buyer to give reservation fee to hold the unit without first obtaining an authority/accreditation from the competitor Developer.

    • Go to the competitor Developer and bring the buyer to be able to close the sale

    • Convince the buyer to buy from the project he is handling by giving all the advantages and selling points of the project.

    Correct Answer
    A. Convince the buyer to buy from the project he is handling by giving all the advantages and selling points of the project.
    Explanation
    The salesperson should convince the buyer to buy from the project he is handling by highlighting all the advantages and selling points of the project. This is the best approach because the salesperson is employed by the Real Estate Broker who is accredited with John Doe Development Corporation. It would be unethical for the salesperson to affiliate with another broker or try to close the sale without obtaining proper authorization from the competitor Developer. Therefore, the salesperson should focus on promoting the project they are involved with and provide compelling reasons for the buyer to choose that particular project.

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  • 44. 

    A process of determining fair market value of a land by comparing it with nearby or comparable properties which were subject of recent sales or offerings is an example of:

    • Market analysis

    • Market data approach

    • Appraiser's approach

    • Valuation approach

    Correct Answer
    A. Market data approach
    Explanation
    The process described in the question, which involves determining the fair market value of a land by comparing it with nearby or comparable properties that have recently been sold or offered, is known as the market data approach. This approach relies on analyzing market data and using it as a basis for estimating the value of the land.

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  • 45. 

    On documents executed abroad, like Special Power of Attorney, the documents, must be properly authenticated by any of the following, except:

    • Phil. Ambassador or Secretary of Legation

    • Charge d' Affairs

    • Consul, Vice Consul, or Consular Agent

    • POEA

    Correct Answer
    A. POEA
    Explanation
    The POEA (Philippine Overseas Employment Administration) is not responsible for authenticating documents executed abroad, such as a Special Power of Attorney. The other options listed - Phil. Ambassador or Secretary of Legation, Charge d' Affairs, Consul, Vice Consul, or Consular Agent - are all authorized to properly authenticate such documents.

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  • 46. 

    Pactum commissorium means:

    • Commission pact or agreement

    • Commission that has been earned and therefore demandable

    • A stipulation which authorizes mortgagee to appropriate the property as his own upon default of the mortgagor

    • Commission payment shall be agreed upon between buyer and seller.

    Correct Answer
    A. A stipulation which authorizes mortgagee to appropriate the property as his own upon default of the mortgagor
    Explanation
    Pactum commissorium refers to a stipulation in a mortgage agreement that allows the mortgagee (lender) to take possession of the property as their own if the mortgagor (borrower) defaults on their payments. This means that if the borrower fails to fulfill their obligations, the lender has the right to seize the property.

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  • 47. 

    The use to which the property is principally or predominantly devoted as may be reflected in a tax declaration.

    • Declared use

    • Actual Use

    • Proportionate use

    • Predominant Use

    Correct Answer
    A. Actual Use
    Explanation
    The correct answer is "Actual Use." This refers to the current and real use of the property, regardless of what it may have been declared for tax purposes or what it is predominantly used for. The actual use is the most accurate reflection of how the property is being utilized at present.

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  • 48. 

    When the Banko Sentral ng Pilipinas sells more treasury notes and bonds to mop up excess liquidity in the system, the government in effect is using:

    • Political policy

    • Fiscal Policy

    • Monetary Policy

    • Social Policy

    Correct Answer
    A. Monetary Policy
    Explanation
    When the Banko Sentral ng Pilipinas sells more treasury notes and bonds to mop up excess liquidity in the system, it is using monetary policy. Monetary policy refers to the actions taken by the central bank to control the money supply and interest rates in order to stabilize the economy. By selling treasury notes and bonds, the central bank reduces the amount of money available in the system, which helps to control inflation and maintain price stability. This is a tool commonly used by central banks to manage the economy and ensure its proper functioning.

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  • 49. 

    Commercial Real Estate includes all of the following except

    • Office Buildings for sale

    • Retail space for lease

    • Apartment for rent

    • Fast-food restaurant for rent

    Correct Answer
    A. Apartment for rent
    Explanation
    Commercial Real Estate refers to properties that are used for business purposes, such as office buildings, retail spaces, and fast-food restaurants. These properties are typically bought, sold, or leased for commercial activities. However, apartments for rent are considered residential properties, as they are used for residential purposes rather than commercial activities. Therefore, apartments for rent are not included in the category of Commercial Real Estate.

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Quiz Review Timeline (Updated): Apr 29, 2024 +

Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • Apr 29, 2024
    Quiz Edited by
    ProProfs Editorial Team
  • Dec 20, 2015
    Quiz Created by
    Jenz_original
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