REAL ESTATE BROKER REVIEWER

Professional Practice 50% Day 1

Coverage of Examination:
1. Real Estate Brokerage Practice
2. Real Estate Finance and Economics
3. Urban and Land Use
4. Planning, Development, and Zoning
5. Basic Principles of Ecology
6. Basic Appraisal for Real Estate Brokers

ANSWER SHEET FOR Professional Practice Day 1

USE PENCIL NUMBER 2 to Mark Answers

TEST 1 Sample Questions for Review Purpose: 100 Items

1. It is the kind of cycle that are recurrent expansions and constructions in property, business and
economic activity.
a. Economic Cycle
b. Real Estate Cycle
c. Business Cycle
d. Investment Cycle

2. In case of “Approval of Preliminary Plans”, the Architectural plan shows the following except:
a. Topographic Plans
b. Ground and Floor Plans
c. Site Development Plans
d. Sections and elevations

3. The ______________ is a document issued by the DENR certifying that based on the proposed project
or undertaking will not cause any significant negative impact.
a. Environmental clearance
b. Environmental Compliance Certificate
c. Environmental Compliance Clearance
d. Environmental Certificate

4. Indigenous people like the Aeta of Zambales and Tarlac, Dumagat and Remontado of Aurora are found
in:
a. CAR
b. Region 2
c. Region 1
d. Region 3

5. Refers to a duly registered and licensed natural person who, for a professional fee, commission or other
valuable consideration, acts as an agent of a party in a real estate transaction to offer, advertise, solicit,
list, promote, mediate, negotiate of effect the meeting of the minds on the sale, purchase, exchange,
mortgage, lease or joint venture, or other similar transactions on real estate or any interest therein.
a. Assessor
b. Appraiser
c. Consultant
d. Broker

6. Converting an estimate of income into an estimate of value by use of rate

a. Discount rate
b. Value estimate
c. Capitalization
d. Income estimate

7. The proof of ownership of lands awarded to an agrarian reform beneficiary under RA No 6657, as
amended, which contains the restrictions and conditions for such ownership and must be registered in
the Register of Deeds is the
a. Certificate of Land Ownership Award (CLOA)
b. Certificate of Land Ownership Accreditation (CLOA)
c. Comprehensive Land Ownership Award (CLOA)
d. Deed of Restrictions on Land Award (DRLA)
8. In project selling, the payment of the broker's commission will most likely be -
a. Paid in advance by the developer
b. Paid in full after receipt of reservation money
c. Paid in full after receipt of down payment
d. Paid progressively depending on the developer

9. The criteria used in the selection of building materials include:

a. Climate
b. Availability
c. Durability
d. All of the above

10. Economic principle which states that economies outside a property have positive effects on its value,
while diseconomies have a negative effect on value externalities such as the neighbourhood have an
effect on value.
a. Principle of increasing and decreasing returns
b. Principle of externalities
c. Principle of supply and demand
d. Principle of surplus productivity

11. In the form report, it is not usually necessary for the appraiser to:
a. Demonstrate evidence of value through one or more approaches
b. Describe any physical deterioration or functional inadequacy found in the structure
c. Rate the neighbourhood employment stability
d. Write a letter of transmittal to the client

12. Green building programs are emerging to encourage builders and developers to incorporate sustainable
building practices, system, and materials into their building projects. In the Philippines, there is already
few building ongoing construction that complied to these standards and had certification from this US
Council known as certified
a. LEED
b. LLDD
c. LEAD
d. LEDD

13. It is a certification issued by the Environment Management Bureau (EMB) certifying that, based on the
submitted project description, the project is not covered by the EIS system and is not required to secure
an ECC.
a. Environmental Compliance Certificate
b. Environment Impact Statement
c. Certificate of Non-Coverage
d. Initial Environmental Exam Report

14. It is an estimate or opinion of the market value of a property done for private use.
a. Assessment
b. Costing
c. Appraisal
d. Valuation
15. To improve the reliability of information about comparable sales, you may want to consider, as an
additional step:
a. Having a partner or assistant go over your work
b. Applying the statistical technique called sampling
c. Checking your data through another source
d. All of the above

16. A privilege given to a member of cooperative, corporation, partnership, or any association and/or the
issuance of certificate or receipt evidencing a right of participation, or rights to any land or property.
a. Deemed Sale
b. Sales Receipt
c. Sales Contract
d. Certificate of Ownership

17. The type of appraisal report depends upon the amount of background information and detail required by
the client. Which of the following types is the longest and most detailed?
a. The letter report
b. The form report
c. The narrative report
d. The subdivision report

18. Economic principle which states that the net income that remains after the costs of various agents of
production have been paid.
a. Principle of increasing and decreasing returns
b. Principle of externalities
c. Principle of supply and demand
d. Principle of surplus productivity

19. Refers to the use of government budget to influence economic activity.

a. Fiscal policy
b. Monetary policy
c. Political will
d. Police power

20. The position of trust assumed by the broker as an agent for the principal is described as:
a. Trusteeship
b. Confidential
c. Fiduciary relation
d. Code of conduct

21. It refer to lands of the public domain which have been released and proclaimed as such by the
President from the mass of unclassified public lands, or reclassified as such from other forms of
classification through an Act of Congress.
a. Alienable and Disposable (A and D) lands
b. Ancestral Land (AL)
c. Ancestral Domain (AD)
d. Disposable Ancestral Land (DAL)

22. It refers to a firm, whether a corporation, partnership, cooperative or association or a single

proprietorship.
a. Enterprise
b. Business Firm
c. Extrajudicial person
d. Juridical Person

23. A security that sells like a stock on the major exchanges and invests in real estate directly, either through
properties or mortgages.
a. Treasury bonds
b. Corporate bonds
c. Hedge funds
d. Real estate investment trusts

24. There are three main subdivisions in the typical narrative appraisal report. Which of the following is not
one of these subdivisions?
a. Introduction
b. Letter of transmittal
c. Description, analyses and conclusion
d. Addenda

25. Economic principle which is the perception that value is created by the expectation of benefits to be
derived in the future.
a. Principle of anticipation
b. Principle of substitution
c. Principle of conformity
d. Principle of contribution

26. Generally the process by which the central bank, or government controls the supply and availability of
money, the cost of money, and the rate of interest.
a. Fiscal policy
b. Monetary policy
c. Budgeting
d. Economic policy

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

28. It refers to all areas generally belonging to ICCs/IPs comprising lands, inland waters, coastal areas and
natural resources therein, held under a claim of ownership, occupied or proposed by ICCs/IPs by
themselves or through their ancestors, communally or individually since time immemorial.
a. Alienable and Disposable (A and D) lands
b. Ancestral Land (AL)
c. Ancestral Domain (AD)
d. Disposable Ancestral Land (DAL)
29. The sole regulatory arm on land development and housing pursuant to Executive Order No. 648 as
amended by Executive Order No. 90 which implements Land Use, Planning Development and Zoning
Policies.
a. HLURB
b. NHA
c. HDMF
d. HGC

30. The PRBRES on cooperation with the CHED or the concerned Colleges and Universities will undertake
the evaluation of the following in the offering of the course of BSREM, except:
a. Curriculum of the school offering BSREM
b. Facilities of the school offering BSREM
c. Screening in the Recruitment of faculty members
d. All of the above

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

32. A __________ is devoted to edifies or houses in which businesses directed primarily for profit is
transacted or undertaken.
a. Property development
b. Office space and Retail Development
c. Condominium Development
d. Mix use development

33. Planning and Development, consideration for a condominium project, covers the following except;
a. Site preservation/alteration
b. Geo-Hazard Tests
c. Design parameters
d. Surveying and Land Area planning

34. It means a cycle of prosperity recession, depression and recovery.

a. Long-term Real Estate Cycle
b. c. Property Business Cycle
c. Economic Real Estate Cycle
d. Real Estate Cycle

35. The power to adopt the Code of Ethics and Responsibilities, under the RESA shall be under the
a. Professional Regulatory Board of Real Estate Service
b. Professional Regulation Commission
c. Accredited and Integrated Professional Organization
d. Professional Regulatory Commission

36. The letter report usually:

a. Contains only a brief description of the subject property
b. Does not contain the assumptions, limiting conditions, and the appraiser’s value certification
c. Is the most formal written report
d. Is required by institutions and agencies

37. Economic principle which holds that the value of a component is a function of its contribution to the
whole rather than as a separate component.
a. Principle of balance
b. Principle of substitution
c. Principle of conformity
d. Principle of contribution

38. What is the real estate listing?

a. A list of brokers and salespersons
b. A list of property held by an owner
c. The employment of a broker by an owner to sell or lease
d. A written list of improvement on land

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

40. Plan showing various elevations of the property.

a. Subdivision Plan
b. Business Plan
c. Topographic Plan
d. House Plan

41. A detailed guide on the procedure to be observed by the parties concerned in the Environmental Impact
Statement System. It shall include among others, guidelines on public participation and social
acceptability, the EIS / IEE review criteria in accordance with section 4 of PD 1596. 3.4
a. Environmental Impact Assessment
b. Environmental Monitoring Manual
c. Environmental Impact Statement Procedure Manual
d. Environmental Impact Assessment Procedures

42. A part of science that involve the inter-disciplinary study of the inter-active processes which takes place
between the organisms and the environment and or the inter-connections or mutual relations between
living things including humans and their environment is called:
a. Ecology
b. Economy
c. Ecologist
d. Economist

43. All real estate service practitioners are automatically members of the single accredited professional
organization known as:
a. Integrated Professional Association
b. Accredited and Integrated Professional Organization
c. Accredited and Integrated Professional Association
d. Accredited Professional Organization

44. When there are many sellers and buyers competing against each other for the available goods and
services, the price would settle at the lowest possible price, provided that the goods are similar enough.
What do you call this situation?
a. Buyer's Market
b. Perfect Market
c. Seller's Market
d. Competitive Market

45. A new mortgage that has one or more properties as security to the amount of loan, and the total amount
of the loan is a combination of the new loan and one or more existing loans.
a. Blanket mortgage
b. Closed mortgage
c. Wrap around mortgage
d. Open mortgage

46. A situation in which demand exceeds supply and owners has an advantage over buyers in price
negotiations.
a. Perfect market
b. Supplier's market
c. Seller's market
d. Buyer's market

47. In ecology it is an assemblage of population of different specie interacting with one another
a. Ecosystem
b. Building
c. Community
d. Inhabitant

48. Refers to an official in the local government unit who performs appraisal and assessment of real
properties, including plants, equipment, and machineries, essentially for taxation purposes.
a. Assessor
b. Appraiser
c. Consultant
d. Broker

49. It is a land predominantly covered with dipterocap, pine mangrove or industrial trees used either for
timber production, water and soil conservation and wild life refuge.
a. Settlements
b. Forest
c. Mineral
d. In land Fisheries

50. ___________is synonymous with public use, public interest and public benefit. It is the general concept
of meeting public need or public exigency.
a. Common and Public Welfare and Services
b. Public Domain and Welfare
c. Public Resource Allocation
d. Public Benefit Domain
51. Refers to a kind of listing wherein two or more brokers are authorized to negotiate the sale
a. Multiple Listing
b. Exclusive Listing
c. Net Listing
d. Open Listing

52. Economic principle which states that real property value is created and sustained when the
characteristics of a property conform to the demands of its market.
a. Principle of anticipation
b. Principle of substitution
c. Principle of conformity
d. Principle of contribution

53. Economic principle holds that value is achieved and maintained when all elements are in proper
proportion.
a. Principle of balance
b. Principle of substitution
c. Principle of conformity
d. Principle of contribution

54. It is a situation which supply exceeds demand, giving purchasers an advantage over sellers in price
negotiations.
a. Bargain market
b. Supplier's market
c. Seller's market
d. Buyer's market

55. A __________ is devoted for agricultural purposes or the raising of domestic animals for business use
and consumption.
a. Agricultural Land
b. Gentlemen Farm
c. Agri-Business
d. Agri-Farm Property

56. Ecological succession is a fundamental concept in ecology, which refers to orderly changes in the
composition of structure in
a. Planned community
b. Orderly community
c. Ecological community
d. Sustainable community

57. What does PRBRES stand for?

a. Philippine Regulatory Board of Real Estate Service
b. Professional Regulations Board of Real Estate Service
c. Professional Regulatory Board of Real Estate Service
d. Philippine Registration Board of Real Estate Service

58. Good architectural design consists, in part, of:

a. A unique floor plan
b. Functional utility
c. Using expensive materials
d. All of the above

59. The proof of ownership of lands awarded to an agrarian reform beneficiary under RA No 6657, as
amended, which contains the restrictions and conditions for such ownership and must be registered in
the Register of Deeds is the
a. Certificate of Land Ownership Award (CLOA)
b. Certificate of Land Ownership Accreditation (CLOA)
c. Comprehensive Land Ownership Award (CLOA)
d. Deed of Restrictions on Land Award (DRLA)

60. It is a kind of listing wherein only one broker is authorized to negotiate

a. Multiple Listing
b. Exclusive Listing
c. Net Listing
d. Open Listing

61. It is the value of land and/or improvements for ad valorem tax purposes.
a. Market value
b. Assessed value
c. Condemnation value
d. Liquidation value

62. Economic principle which states that when several similar goods or services are available, the one with
the lowest price attracts the greatest demand.
a. Principle of change
b. Principle of substitution
c. Principle of conformity
d. Principle of contribution

63. The essential elements of appraisal reports:

a. Usually follow the outlines of the appraisal process
b. Vary according to the type of report
c. Are dependent upon the requirements of the client
d. None of the above

64. A rent multiplier is an economic unit of comparison because:

a. It measures the square meter of the rental property
b. It compares the present income of the property against the past income of the property as a percentage
c. It relates to the income of the property
d. All of the above

65. In ecology it is an assemblage of population of different specie interacting with one another
a. Ecosystem
b. Building
c. Community
d. Inhabitant
66. The word “Commission” in RA 9646 stands for?
a. Professional Fee
b. Real Estate Board
c. Broker's Commission
d. Professional Regulation Commission

67. A yield rate used to convert future payments or receipts to present value.
a. Discount rate
b. Capitalization rate
c. Over all rate
d. Split rate

68. The priority right of a tenant to buy the land allocated in an urban land reform area is known as:
a. Tenant's possessory right
b. Tenant's retention right
c. Tenant's incremental right
d. Tenant's right of first refusal

69. Which type of appraisal report requires a statement of the rights being appraised?
a. The letter report
b. The form report
c. The narrative report
d. All of the above

70. Economic principle which holds that the value of a component is a function of its contribution to the
whole rather than as a separate component.
a. Principle of balance
b. Principle of substitution
c. Principle of conformity
d. Principle of contribution

71. The development of strategically located property for office, retail, and financial activities is known as
a. Commercial development
b. Mix use commercial development
c. Commercial Condominium development
d. Retail and Office mix use development

72. The ___________ is a provision of the authority to sell that entitles the broker to the commission even if
the sale is consummated after the expiration of his authority.
a. Exclusive Right to Sell
b. Hold-over Clause
c. Exclusive Agency Contract
d. Opening Listing

73. Refers to an official in the local government unit who performs appraisal and assessment of real
properties, including plants, equipment, and machineries, essentially for taxation purposes.
a. Assessor
b. Appraiser
c. Consultant
d. Broker
 74. The following is a contract or agreement between a seller and a buyer, except -
a. Option contract
b. Contract to sell
c. Sales agency
d. Reservation agreement

75. The two types of real estate appraisals are:

a. Formal and informal
b. Informal and intuitive
c. Structural and formal
d. None of the above

76. Economic principle which holds that as capital units are added, a certain point is reached where the
added units do not contribute value commensurate with their costs.
a. Principle of increasing and decreasing returns
b. Principle of externalities
c. Principle of supply and demand
d. Principle of surplus productivity

77. It is one of the biggest influences on property value since it can have added ventilation, parking, access
and showroom.
a. Multiple stories
b. Topographical Influence
c. Corner influence
d. Location

78. This is a cooperative arrangement among real estate brokers whereby properties for sale is circularized
to others.
a. Multiple Listing
b. Exclusive Listing
c. Net Listing
d. Open Listing

79. It is a price at which a willing buyer would buy, neither being under abnormal pressure or circumstance.
a. Selling price
b. Fair Market Value
c. Asking Price
d. Market Value

80. It refers to all the populations in an ecosystem.

a. Population
b. Productivity
c. Community
d. Family

81. It occurs when water channels and reservoirs become clotted with silt and mud, a side effect of deforestation
and soil erosion.
a. Siltation
b. Salination
c. Purification
d. Waterlogging

82. Why are ecosystems with high biodiversity more stable than those with few species?
a. They recover from negative events more quickly.
b. They have a higher carrying capacity
c. They have several species
d. They produce rapidly

83. It refers to the entire process of organization administration and procedure institutionalized for the purpose of
assessing the significance of the effects of physical developments on the quality of the environment.

a. Environmental Management System

b. Environmental Impact Statement System
c. Environmental Impact Assessment
d. Environmental Assessement

84. An area that is environmentally sensitive and is so listed under Presidential Proclamation (Pres. Proc.) No.
2146, Series of 1981 as well as othe' areas which the President of the Philippines may proclaim as environmentally
critical in accordance with section 4 of P.D. No. 1586.
a. Environmentally Critical Population
b. Environmentally Critical Project
c. Environmentally Critical Area
d. Environmentally Critical Point

85. The coastlines in the tropical and subtropical regions fringed with a strip of swampland which is inundated
every high tide with marine and brackish waters.
a. Marine wetlands
b. Mangrove wetlands
c. Marine ecology
d. Marine wasteland

86. Who files the petition for cadastral hearing.

a. Director of lands
b. Judge
c. ROD
d. Board

87. Refers to the rational and judicious approach of allocating available land resources to different land using
activities
a. Land Survey
b. Land Planning
c. Land Banking
d. Land Allocation

88. Refers to the legitimate lessees of houses.

a. Residents
b. Owner
c. Occupants
d. Tenants

89. What is the term refers to the reference monument, like BLLM or BBM, where the corner no. 1 of the lot is
connected
a. Distance
b. Tie Line
c. Tie Point
d. Distance Perspective

90. Who are qualified beneficiaries for socialized housing program?

a. Filipino citizen
b. Foreigner
c. Alien
d. Everyone

91. Refers to the real estate service for maintaining the value of the natural resources.
a. Preserving
b. Sustaining
c. Conserving
d. Advocating

92. Developers of proposed subdivision projects shall be required to develop an area for socialized housing
equivalent to at least ___ of the total subdivision area.
a. 10%
b. 20%
c. 30%
d. 40%

93. Refers to the allocation of resources on the bases of efficiency and equity to achieve balance development.

a. Efficiency
b. Social Equity
c. Balance
d. Social Balance

94. Refers to the linking of the consumption and production areas through appropriate infrastructure system.

a. Spatial Integration
b. Infrastructure integration
c. Production integration
d. System integration

95. Refers to the graphic presentation of the zone classification and designation
a. Zoning Map
b. Classification man
c. Zone graphic
d. Zonal classification

96. Refers to a synthetic perceptual measure based on resident ratings of local trends of change over time.

a. Population
b. Quality of Life
c. Income
d. Savings

97. Refers to a fourth step of planning process where assessment involves technical and participatory methods

a. Processing the situation

b. Analyzing the Situation
c. Selecting the situation
d. Planning the situation

98. Where to find particular information needed for analysis purposes?

a. Aspect map
b. Analysis map
c. Information map
d. World map

99. Value to a specific investor with a specific plan for the property.
a. Specific value
b. Investor value
c. Investment value
d. Purchase value

100. Use that result in the highest value for that property.
a. Economic use
b. Profitable use
c. Highest and best use
d. Highest use

ANSWER KEYS

1. B
2. A
3. C
4. D
5. D
6. C
7. A
8. D
9. D
10. B
11. D
12. A
13. C
14. C
15. C
16. A
17. C
18. D
19. A
20. C
21. A
22. D
23. D
24. B
25. A
26. B
27. C
28. C
29. A
30. C
31. D
32. A
33. B
34. A
35. A
36. A
37. D
38. C
39. C
40. C
41. C
42. A
43. B
44. B
45. C
46. C
47. C
48. A
49. B
50. A
51. D
52. C
53. A
54. D
55. D
56. C
57. C
58. B
59. A
60. B
61. B
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62. B
63. A
64. C
65. C
66. D
67. A
68. D
69. D
70. D
71. A
72. B
73. A
74. C
75. A
76. A
77. C
78. A
79. D
80. C
81. A
82. A
83. B
84. C
85. A
86. A
87. B
88. A
89. C
90. A
91. C
92. B
93. B
94. A
95. A
96. B
97. B
98. A
99. C
100. C

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 Page 1|1

Disclaimer: Do not copy, cite, reproduce or distribute without permission of the owner.