Instruction: Select the best answer. Write only the letter that corresponds to your answer.

Part 3. Professional Practice January 24, 2024

1. In an agency relationship, the employer is called the:

A. Broker
B. Principal
C. Buyer
D. Seller

2. Alicia, the owner of the property, signs a listing that guarantees the listing broker a commission
payment if the sale is affected by any licenses broker. This is
A. Net listing.
B. An open listing.
C. An exclusive agency listing.
D. An exclusive right to sell listing.

3. The broker is entitled to a commission, except:

A. There is perfection of the contract of sale.
B. He has authority to sell.
C. He is the procuring cause.
D. The transaction is sold after the period of authority with holdover clause.

4. A relationship in which the agent is placed in a position of trust and confidence to the principal.
A. Trustee
B. Fiduciary
C. Sincerity
D. Transparency

5. A broker receives two offers on the same property at the same time. The broker should:
A. Reject both offers.
B. Submit the better offer and reject the other one.
C. Submit both offers to the seller.
D. Submit the better offer and improve the other seller.

6. The following are the duties of the agent to the principal, except:
A. Loyalty
B. Accounting
C. Disclosure
D. Bravery

7. A loss in value in any cause is a common definition of:

A. Effective age
B. Depreciation
C. Functional obsolescence
D. Economic obsolescence
8. In joint venture agreement between the developer and lot owner, the engagement of a real estate
consultant is necessary, except:
A. Monitor and evaluate developer’s compliance with is undertakings.
B. Ascertain fair market value of land and evaluate cost estimate of developer.
C. Review joint venture agreement.
D. Market the finished project.

9. When the loan is fully amortized by equal monthly payments, the amount applied to the principal:
A. decreases and interest remains constant.
B. decreases while interest payment increases.
C. increases while interest payment decreases.
D. increases by a constant amount.

10. Termination of agency agreement can be done by any of the following, except:
A. Breach of one of the parties.
B. Death of incapacity of either party
C. Fulfillment of the agreement.
D. Tearing of the contract

11. The rate of return by an investor which does not include allowance for capital recovery.
A. overall rate
B. interest rate
C. recapture rate
D. block rate

12. The use of borrowed funds to increase purchasing power is ideally to increase the profitability if an
investment. It is known as:
A. Debt coverage
B. Limited liability
C. Interim financing
D. Leverage

13. The income approach in estimating the value of an invested property is an application of the
principle of
A. Substitution
B. Contribution
C. Anticipation
D. Progression

14. This is the ratio which expresses the relation between gross income and sales price of a property.
A. Capitalization
B. Recapture
C. Effective Gross Income
D. Gross Income Multiplier

15. The value placed on taxable property by the assessor for ad valorem tax purposes.
A. Assessed value
B. Assessment value
C. Appraised value
D. Market value
16. The study of current supply and demand conditions in a particular area for a specific type of property
is:
A. Income projection
B. Market analysis
C. Real estate appraising
D. Cash flow analysis

17. Among the listed land classification, which is devoted principally for profit?
A. Agricultural
B. Residential
C. Commercial
D. Industrial

18. The listing and selling brokers in real estate transactions split the commission equally. If the
commission rate is 5% and the selling broker received P42,000.00. What is the selling price of the
property?
A. P1,250.000.00
B. P1,470,000.00
C. P1,530,000.00
D. P1,680,000.00

19. The increase in value of real estate without any effort or expenses of the property owner is, except:
A. Accretion
B. Adhesion
C. Accession
D. Unearned increment

20. In the computation of depreciation of real property, the method that is widely used by practitioners is
the
A. Straight line method
B. Cost benefit method
C. Diminishing return method
D. Declining balance method

21. The TCT has an annotation that says, “subject to Rule 74, Section 4 of the Rules of Court. This
means that the property is an inherited property and any heir unduly deprived of his lawful
participation in the estate has ____ years to assert his rights over said property.
A. 2 years
B. 3 years
C. 4 years
D. 5 years

22. Population policy usually involves limitation on:

A. Fertility level
B. Immigration level
C. Education level
D. Both (a) and (b)
23. The process of moving out into a new country with the intention of remaining there.
A. Migration
B. Immigration
C. Forced immigration
D. Emigration

24. The ratio between the distance on a map and distance on the earth’s surface is called:
A. Projection
B. Scale
C. Resolution
D. Azimuth

25. To a political geographer, the term “state” is synonymous with:

A. territory
B. province
C. nation
D. country

26. Which of the following map project preserves the correct shape of the earth’s landmasses?
A. Mercator
B. Mollewide
C. Fuller Dymaxion
D. Robertsons

27. This occurs when a population is adding a fixed percentage of people to a growing population each
year.
A. Exponential growth
B. Arithmetic growth
C. Doubling
D. Overpopulation

28. The process of moving out of a particular country, usually the individual person’s country of origin.
A. Migration
B. Emigration
C. Immigration
D. Refugees

29. Topographic maps must use which of the following symbols?

A. Cartograms
B. Proportional symbols
C. Tonal shadings
D. Isolines

30. The number of live births each woman has in her lifetime, on average, is the
A. Replacement rate
B. Crude birth rate
C. Fertility rate
D. Natural birth rate
31. In ecology, it is an assemblage of population of different species interacting with another.
A. Ecosystem
B. Community
C. Building
D. Inhabitants

32. Environmental impact assessment is a process which consist of identifying and predicting impact of
proposed projects and programs on the biophysical environment and on man’s health and well-being
and interpreting and communicating information about such impacts in a manner which can be
utilized by
A. Planners and decision-makers
B. Architects and engineers
C. Planners and architects
D. Engineers and decision-makers

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

A. Municipality
B. Planned community
C. Neighborhood
D. None of the above

34. The three non-living components of an ecosystems are:

A. Producers, consumers, decomposers
B. Producers, decomposers, climate regimes
C. Inorganic substance, organic substance, climate regimes
D. Inorganic substance, organic compounds, climate regimes

35. This law was passed to address marginalization and powerlessness of the indigenous cultural
communities, otherwise known as “The Indigenous Peoples’ Rights Act of 1997”.
A. RA 8173
B. RA 8317
C. RA 8371
D. RA 8731

36. The importance of Environmental Impact Assessment that measures allocation and utilization in
terms of cost associated with
A. Environmental preservation
B. Environmental conservation
C. Environmental awareness
D. Environmental degradation

37. These are the three types of environmentally critical projects:

A. Heavy industries, Resource extractive industries, Infrastructure projects
B. Heavy equipment, Heavy industries, Resource extractive industries
C. Industrial projects, Infrastructure projects, Agricultural projects
D. Reserve Parks, National Parks, Theme Parks
38. Functional components of an ecosystem are:
A. Food chain, energy flow, diversity
B. Food chain, energy flow, community
C. Energy flow, diversity, community
D. None of the above

39. LEED is the world's most widely used green building rating system. LEED certification provides a
framework for healthy, highly efficient, and cost-saving green buildings, which offer environmental,
social and governance benefits. What does LEED stand for?
A. Leadership in Environmental and Ecological Design
B. Leadership in Ecological and Environmental Design
C. Leadership in Energy and Environmental Design
D. Leadership in Energy and Ecological Design

40. The term “ecology” originates from a Greek word which means “house”. In real estate ecology, there
are three relevant ecological aspects of green property, which are
A. Population, ecosystem, community
B. Inhabitant, building, community
C. Inhabitant, community, ecosystem
D. Population, building, organism

41. The natural process of change in response to the physical changes of an aging planet is called
A. Evolution
B. Ecological succession
C. Control or cybernetics
D. Biogeochemical cycles

42. The Indigenous people are among the poorest sector of the Philippine society and also among the
most powerless. Of every six Filipino is a member of indigenous cultural community, which are
estimated of how many tribes?
A.100 tribes
B. 110 tribes
C. 120 tribes
D. 150 tribes

43. This refers to those develop areas with community, facilities, utilities, services, and amenities
concentrated in contagious population or neighborhood.
A. Urbanized land
B. Rural subdivision
C. Sub-urban subdivision
D. Urban subdivision

44. The constant productivity despite small variability in climate and other environmental factors.
A. Sustainability
B. Productivity
C. Stability
D. Equitability
45. The ordinary process of community development that involves changes in species structure and
community processes with time is known as
A. Evolution
B. Ecological succession
C. Biogeochemical cycles
D. Control or cybernetics

46. A project that has a high potential for significant negative environment impact.
A. Environmental impact statement
B. Environmental management plan
C. Environmental critical area
D. Environmental critical project

47. The living components of an ecosystem are the following, except:

A. Producers
B. Consumers
C. Decomposers
D. Constructors

48. The land located in the fringes of built-up communities which the provincial characteristics but is
favored with metropolis utilities, facilities, and other amenities.
A. Urban subdivision
B. Sub-urban subdivision
C. Rural subdivision
D. Urbanized land

49. The social and cultural patterns that result from the relationship between people and resources.
A. Social studies
B. Social theory
C. Social system
D. Social concept

50. The document issued by the DENR Secretary that a project will not cause significant environmental
impact is called
A. Environmental compliance certificate
B. Environmental critical statement
C. Environmental impact system
D. Environmental statement of facts