SIMULATION 1

Tuguegarao
REBLEX 2022 Preparation

1. Aftermaths of Ukraine-Russia conflict were not just felt in the region but also in Asia.
Which of the following could be TRUE regarding the real estate market?
A. Property values in the bombarded areas will tend to rise immediately after the
cessation of hostilities.
B. Tourism will have its highest attainable record since the last cold war in the
region.
C. Those areas left damaged will have to recover first so that property values prior
to the war will be stabilized again.
D. Oil price hike will be observed not just in the region but to the rest of the world.

2. Which of the following is FALSE about real estate consultants?

A. They provide property investment advice to clients after careful analysis of
market conditions and trends.
B. They give specialized investment and legal advice to clients looking to buy, sell or
invest in property.
C. They provide expert advice and recommendations to real estate investors,
property developers, builders, and investment bank.
D. None of the above

3. For those who want to become a real estate consultant in the Philippines, ONE of the
following is not a requirement:
A. Must be a resident and citizen of the Philippines
B. Must have shown proof of being a licensed real estate broker for at least 10 years
C. Must have shown proof of being a licensed real estate appraiser for at least 5
years
D. Must have shown proof of being an assessor for at least 10 years

4. To be considered successfully PASSED in the real estate consultant’s examination,

he/she must have obtained an average of at least _____ in all subjects, with no rating
below _____ in any subject.
A. seventy percent (70%), fifty percent (50%)
B. seventy-five percent (75%), fifty percent (50%)
C. sixty-five percent (65%), fifty percent (50%)
D. There is no provision under RA 9646 on that matter

5. To be considered CONDITIONAL in the real estate appraiser’s examination, he/she

must have obtained an average of at least _____ in all subjects, with no rating below
_____ in any subject.
A. seventy percent (70%), fifty percent (50%)
B. seventy-five percent (75%), fifty percent (50%)
C. sixty-five percent (65%), fifty percent (50%)
D. There is no provision under RA 9646 on that matter
6. Sally Saxena, a real estate salesperson, is into project selling. She focuses on raw
lands in the province of Benguet. On the average, she makes Php 600,000.00 gross
receipts in a quarter. Under RESA, how many transactions shall constitute an act of
engaging in the practice of real
estate service?
A. Six
B. Five
C. One
D. She is not bound to follow RESA being only a real estate salesperson

7. Within 90 days from the effectivity of RA 9646, it shall transfer shall transfer all
pertinent records, documents and other materials to the Professional Regulatory
Board of Real Estate Service
A. Department of Trade and Industries
B. DTI - BTRCP
C. Bureau of Trade Relation and Consumer Protection
D. Bureau of Customs

8. A clause in RESA that makes the statute's parts or provisions severable so that one
part can be invalidated without invalidating the whole.
A. Repealing Clause
B. Effectivity Clause
C. Separability Clause
D. Hold-over Clause

9. Which of the following is FALSE?

A. The longer the time period, the smaller the present value, given a Php
100,000,000 future value and holding the interest rate constant.
B. The greater the interest rate, the greater the present value, given a
Php100,000,000 future value and holding the time period constant.
C. A future dollar is always less valuable than a dollar today if interest rates are
positive.
D. The discount factor is the reciprocal of the compound factor.

10. Which of the following has the largest future value if Php 1,000 is invested today?
A. Five years with a simple annual interest rate of 10 percent
B. Ten years with a simple annual interest rate of 8 percent
C. Eight years with a compound annual interest rate of 8 percent
D. Eight years with a compound annual interest rate of 7 percent

11. The total loan payment made on a parcel of real estate during any one year is
generally referred to as:
A. Debt service
B. Equity
C. Mortgage Constant
D. Cash Outflows

12. Two homes in the same subdivision have the comparable amenities, size, features,
and location. One is priced at P2,000,000 and the other is priced at P2,200,000.
A. The lower-priced home will sell quickly.
B. The lower-priced home will attract more demand.
 C. The lower-priced home will get more showings.
D. The lower-priced home will sell for the full list price.

13. It is the amount paid by the lessee of a house or flat fee of a commercial building.
A. Economic rent
B. Rental
C. Lease
D. Market Price

14. A real estate market is

A. A shopping center office of a realty company
B. A group of individuals or firms that are in contact with one another for the purpose
of conducting real estate transactions
C. A list of potential buyers for the subject
D. A list of potential sellers who have property similar to the one requested by the
buyer

15. It is the price of a property in its market at a specified time

A. Economic rent
B. Rental
C. Lease
D. Market Price

16. All of the following statements are true EXCEPT:

A. Real property is a type of service
B. Value is dependent on market conditions
C. A good or service has no value in exchange unless it possesses certain
economic and legal characteristics
D. The price representing value is usually quoted in terms of money
E. Real estate may be sold for all cash or financing arranged

17. Real estate investment using others people money.

A. Loan
B. Investment
C. Leverage
D. Buyout

18. A major business merger transpired last June 2021 between two banks-UCPB and
Landbank. Which of the following is FALSE about the said merger?
A. President Rodrigo R. Duterte in signed an executive order approving the merger.
B. All assets and liabilities of UCPB will be transferred to Landbank, making the
latter the surviving entity.
C. The merger fulfills the objective of providing our expanded client base with a
stronger, unified government financial institution committed to serve all sectors
through a wider service network and product offerings.
D. None of the above

19. A real estate practitioner who is duly registered and licensed natural person who, for
a fee compensation or other valuable consideration, offers or renders professional
advice and judgment on: (i) The acquisition, enhancement, preservation, utilization or
disposition of lands or improvements thereon; and (ii) The conception, planning,
 management and development of real estate projects.
A. Licensed Real Estate Property Manager
B. Licensed Real Estate Appraiser
C. Licensed Real Estate Counselor
D. Licensed Real Estate Broker
E. Licensed Real Estate Consultant

20. The provision of competent, disinterested an unbiased advice, professional guidance,

and sound
judgment on diversified problems in the broad field of real estate, on a fee basis, by
qualified
professionals who subscribe to a suitable standard of practice and code of
professional ethics.
A. Valuation
B. Appraisal Consulting
C. Brokerage
D. Consultancy
E. Dealership

21. A group of investors who have combined their financial resources with the expertise
of a
real estate professionals for the common purpose of acquiring, developing,
managing,
operating or marketing real estate.
A. Syndication
B. Joint Venture
C. Developer
D. Partnership

22. Which of the following is NOT an illegal real estate practice?

A. Amalgamation
B. Steering
C. Redlining
D. Blockbusting

23. The illegal practice of nudging buyers away or toward a specific area based on the
presence or absence of protected class members in the area relative to the buyers.
A. Amalgamation
B. Steering
C. Redlining
D. Blockbusting

24. Salome, a real estate broker convinces Miss Samone to sell their home located in the
subdivision for a lower price based on the assumption that the neighborhood's socio-
economic makeup is about to change and that property values will soon decrease.
This practice of Salome is a best example of
A. Amalgamation and is legal
 B. Amalgamation and is illegal
C. Blockbusting and is legal
D. Blockbusting and is illegal

25. A real estate broker has been selling a property for more than a year now. The
selling price seems to be very low against the prevailing prices in the area for
comparable houses. The subject property for sale used to be the family home of a
notorious clan in the area and were found dead day after drugs were found in their
home. This property is considered to be:
A. Distressed
B. Amalgamated
C. Stigmatized
D. Consummated

26. Property listings that have one or many of the following characteristics: they are in
foreclosure, have been foreclosed upon and are being sold by the original lender or
homes being sold by homeowners who owe more money than the home is worth.
A. Distressed
B. Amalgamated
C. Stigmatized
D. Consummated

27. When each alternative use requires the same capital investment, the use that
maximizes the investment’s ____ on a long-term basis is highest and best use.
A. diversified portfolio
B. occupancy rate
C. net operating income
D. potential gross income

28. The study of current supply and demand conditions in a particular area for particular
type of property is:
A. Market analysis
B. Real Estate appraisal
C. Cash flow analysis
D. Forecasting

29. Combining two or more parcels of land into 1 large tract; usually done to allow the
construction of a larger building in the hope that it will produce more income than
several
smaller buildings.
A. Plottage
B. Assemblage
C. Land development
D. Merger
E. Both C and D

30. An additional value created above and beyond the sum of values of the separate
parcels when the land is joined together.
A. Plottage
B. Assemblage
 C. Land development
D. Merger
E. Both C and D

31. The work or service performed by real estate consultants, as defined by USPRCP
terms in these
standards; evaluation, review, and consulting.
A. Consulting review
B. Consulting property management
C. Consulting practice
D. Consulting on IS
E. All of the above

32. Market value is based on:

A. Insurable value
B. Most probable price
C. Cost Estimate
D. Value in Use

33. The value of improved residential real estate is most influenced by:
A. Passage of time
B. Brokers opinions of the value of properties
C. Changes in shopping patterns for consumers of goods and services
D. Cost of` construction increases

34. Which of the following is not within the definition of the term ‘market value’?
A. Buyer and seller are typically motivated
B. The property sells in 90 to 120 days
C. Payment is made in cash or cash equivalent terms
D. Both parties are well informed
35. Debt instruments that are issued using a pool of mortgages for collateral. The issuer
retains the
ownership of the mortgage pool and issues bonds as debts against the mortgage
pool. However,
all amortization and prepayments flow through to investors.
A. Securitization
B. Collateralized obligation bonds
C. Treasury Bills
D. Collateralized mortgage obligation (CMO)
E. Money supply

36. The periodic income or loss arising from the operation and ultimate resale of an
income- producing property. It could further be classified as either before-tax or after-
tax and could also reflect the impact of financing.
A. Economic flow
B. Market flow
C. Accounting flow
D. Cash flow

37. Time-distance relationships between a site and all relevant origins and destinations
 are called:
A. access roads
B. transit facilities
C. ingress and egress
D. linkages
E. synergies

38. The reasonable and probable use that result in the highest present value of the land
after
considering all legally permissible, physically possible and economically feasible
uses.
Capitalization rates or discounts rates for each feasible use should reflect typical
returns
expected in the market.
A. Optimal Use
B. Maximum Use
C. Pre-dominant use
D. Highest and Best Use

39. The client and any other party as identified, by name or type, as users of the
consulting report,
by the consultant based on communication with the client at the time of the
engagement.
A. Applicable use
B. Applicable user
C. User-friendly
D. Intended user

40. Highest and the best use is usually determined under two different premises:
A. as if the site is vacant
B. as if improved in the optimal manner or as the site is currently improved.
C. as is where is
D. Only A and B

41. Personalized evidence indicating authentication of the work performed by the

consultant and
the acceptance of the responsibility for content, analyses, and the conclusion in the
report.
A. Jurat
B. Acknowledgment
C. Signature
D. Pledge

42. A type of zoning that excludes racial minorities and low-income people from an area.
This zoning
may be intentional or unintentional, e.g., specification of a minimum structure size.
A. Non-conforming
B. Exception zoning
C. No value zoning
D. Exclusionary zoning
43. A comparison of demand and supply to determine the existence of present and future
demand
or excess supply in a market. Another way of expressing the same thing is through
the use of
phrase “unmet demand or supply shortages”.
A. Conformity analysis
B. Standard analysis
C. Gap analysis
D. Supply/demand analysis

44. The price or value of property agreed upon the seller who is not compelled to sell and
a buyer who is not compelled to buy, both knowing all material facts relative to the
property and the transaction
A. appraised value
B. assessed value
C. economic value
D. fair market value
E. zonal value

45. The "bundle of rights theory" also means:

A. rights of vendee-a-retro
B. rights in fee simple
C. rights of land beneficiary
D. rights of buyer

46. The terms of financing, whether good or bad,

A. Has no effect on the market price
B. Has no effect on the market value
C. Has no effect on affordability
D. Depend on fiscal and monetary policy

47. One who transforms rawland to improved property by use of labor, materials, capitals
and
entrepreneur efforts in an attempt to put land to its most profitable use.
A. Real estate consultant
B. Owner
C. Real estate dealer
D. Real estate developer

48. Objective Value. Property’s value to an impartial buyer who represent the market.
A. Value in Use
B. Forced Value
C. Value in Exchange
D. Synergistic Value
E. Market Value

49. Property rights that might be purchased with real estate, land building and fixtures
that are
 either tangible or intangible personal property such as furniture in a hotel or the
franchise
(business) value of the hotel.
A. Realty interest
B. Non-realty interest
C. Goodwill
D. Patent
E. Trademarks

50. The process of investigating the subgroups of the population who express demand
for real
estate by analyzing their economic, demographic and psychographic characteristics
(such as
attitudes, habits and lifestyles).
A. Survey
B. Compendium
C. Consumer research
D. Social statistics
E. Economic indicator

*** END OF SIMULATION 1***

/vgianan2022