FINAL CONSULTING (REVIEWER)

1. In the cost approach the site is valued as if it were (vacant and available for development
to its highest and best use)
2. Because real estate markets deal with different desires and needs, they are said to be.
(segmented)
3. Environmentally critical Area is an area that is environmentally sensitiv- (ECA)
4. The work or service performed by real estate consultants, as defined by USPRCP terms in
these standards; evaluation, review, and consulting. ( Consulting practice)
5. Identification of the properties in a market or trade area that have similar characteristics
and attract the same potential buyers or space users. (Competitive analysis or survey of
competition)
6. A metes and bounds description begins and ends with the( Point of beginning)
7. Refers to a real estate project that is able to meet defined financial investment
objectives, the ability of a project to produce sufficient cash flows to repay all the
expenses involved in creating and marketing the project plus provide a competitive
return to the owner/developer. A criterion of highest and the best use analysis.( Land
though as vacant)
8. An analysis of the amount of space (usually expressed in square meter) or the number of
units (absorption rate) that can be sold, leased, put into use of traded on the market
during a predetermined or estimated period of time (absorption period), and at
prevailing prices or rentals. (Absorption analysis)
9. The interest, benefits, and rights inherent in the ownership of real estate. (Real
property)
10. Refers to both real estate and real property. (In some jurisdiction or usage, the terms
real estate and real property may have the same meaning. The parate definition
recognizes the tradition as two concepts in appraisal and consulting theory).( Realty)
11. An analysis of the availability and desire for a specific type of property. (Supply and
demand study)
12. It is one way of how an agency relationship is create- it means that if a person having no
authority whatsoever purports to act as an agent and the purported principal later
adopts the acts of that agent, an agency relationship has retroactively been created.
(Ratification)
13. The industry in a geographic area that provides employment opportunities and allows it
to attract income from outside its boundaries. (economic base)
14. An appraisal of a freestanding store and the land it occupies is an unbiased estimate of
the value of an interest in ( Real estate)
15. Inflation tends to increase the value of ( mortgages)
16. 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 ( All of the above except D)
17. What are the 2 categories of tangible property? (real property and personal property)
18. Information gathered by the Consultant that is not available in a published source
(primary data)
19. For the building, effective age is best defined as (the age of other property in equivalent
condition and utility)
20. Individuals actively engaged in real estate transactions. Primary market participants are
those who invest in real property or who use real estate, eg, buyers, sellers, owners,
lenders, tenants. Secondary market participants include those who advise or assist
 primary participants, eg, advisors, brokers, consultants, underwriters, appraisers.
(market participants)
21. An appraisal or consulting that estimates the market value of a property to be acquired
for a public use by a government so that just compensation can be offered to the
property owner ( Acquisition appraisal/consulting)
22. The process of calculating investment returns for multiple sets of assumptions in order
to assess the impact that changing the inputs has on the measures of return. ( Sensitivity
analysis)
23. An identified parcel or tract of land including improvements, if any. (Real Estate)
24. A study of the anticipated moverment of cash into or out of an investment ( Cash flow
analysis)
25. Any question or doubt arising from historical or prospective realty investment desire
dealing with difficult decision on available alternative courses of action, project, or
situation. This calls for the Consultan't decision-making service (Client's objective)
26. All or part of a standard rule of USPRCP from which departure is permitted under certain
conditions (Specific guidelines)
27. Which of the following is evidence of real estate ownership? (title)
28. The cost to build a structure including direct cost of labor and materials, contractor's
overhead and profit plus indirect cost such as taxes and construction loan interest.
Distinguished from original cost, which is the cost to the present owner who may have
paid more or less than the cost of construction (Construction cost)
29. The cost to build a structure including direct cost of labor and materials, contractor's
overhead and profit plus indirect cost such as taxes and construction loan interest.
Distinguished from original cost, which is the cost to the present owner who may have
paid more or less than the cost of construction ( Construction cost)
30. In economics, refers to the ability of a product to maintain a quantity level of supply or
demand as the price of that product changes. It measured as the percent change in
quantity supplied or demanded divided by the associated percent change in price
(Elasticity)
31. Data obtained from published sources that have been collected by the consultant, eg,
census information, demographic information and published nterest rates. See also data,
primary data ( Secondary data)
32. 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. Highest and the best use is usually determined under
two diffirent premises; as if the site was vacant and could be improved in the optimal
manner or as the site is currently improved ( Highest and best use (HBU))
33. Provincial Environment and Natural Resources Officer of the DENR (PENRO)
34. Local zoning codes designed to regulate the density of development on land, including
restrictions on the minimum and maximum of the floor area per land area, and living
space and recreation space requirements. Important in the development of planned unit
developments. (Land-use intensity)
35. A selection of a city in which a majority of the structures are dilapidated. ( Blighted area)
36. The group of properties that are in the same classification and complete directly with
the subject property in the immediate market area. (Competitive market segment)
37. A letter accompanying a consulting report that formally presents the report to the
person who requested it and may include information such as; address and description
of the property problem, or property interest subject of consulting engagement,
statement that property inspection and all necessary analyses were completed by the
 Consultant, date of consulting report, summary conclusion and recommendations any
extraordinary assumptions or limiting conditions, consultants signature and reference to
accompanying consulting report (Letter of transmittal)
38. The climate, topography, natural barriers, transportation systems and other factors of
location that affect the value of the property. (Environment)
39. A real estate analysis of a specific property that addresses the ability of the property to
be absorbed, sold or leased under current and anticipated market conditions.
(Marketability study)
40. A specific provision in a construction budget for unforeseeable elements of cost that
may be encountered within a construction project. Contingencies are different from
escalation costs which account for price-level changes overtime. ( Contingency
allowance)
41. A person owning less than the entire bundle of rights has (A partial interest)
42. A parcel of land that is improved to the point of being ready to be built upon is called. ( a
site)
43. The date at which the analyses, opinions, and advice in an appraisal, review or
consulting service apply. (Effective date)
44. Reversion of property to the state owing to lack of any heirs capable of inheriting; o due
to other causes provided by law. (Escheat)
45. 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.) (Consumer research)
46. The desire to buy to satisfy need coupled with the ability to pay. When the word
demand is used in economic writings, this demand is usually assumed ( Effective
demand)
47. To be considered as a comparable, a property ( must be competitive with the subject)
48. It is the document issued by the DENR Secretary or the Regional Executive Director
certifying that based on the representation of the proponent and the preparers, as
reviewed and validate by the EIARC, the proposed project or undertaking will not cause
a significant negative environmental impact; that the proponent has complied with all
the requirements of the EIS System, and that the proponent is committed to implement
its approved EMP in the EIS or mitigation measures in IEE. (ECC)
49. Community Environment and Natural Resources Officer of the DENR.
(a. a) Deputy Director
b) Secretary of DENR
c) CENRO
d) PENRO)
50. The ease with which building permits for a project may be obtained, as well as the
proposed project's ability to meet other regulatory requirements. ( Development
feasibility)
51. The party who engages a consultant by contract in a specific engagement ( Client)
52. An analysis of the impact of proposed land use on its environment. Including the direct
and indirect effects of the project during all phases of use( a. Environmental impact
study (EIS))
53. Which of the following types of property is subject to ad valorem taxation ( Commercial
buildings leased in part by nonprofit foundation)
54. Environmentally critical project is a project that has a high potential for significant
negative environmental impact (ECP)
55. Legal requirements for the practice of real estate profession in the country (RA)
56. The act or process of evaluating ad giving advice on a property or a development
projects for its viability in terms of ROI, pertains to consulting and related functions, e g.,
HABU analysis, location/site analyisi, market study services. (Consultancy)
57. The information pertinent to a specific assignment. Such data may be divided into four
different classes: General (relating to the economic and demographic background, the
region, the city and the neighborhood), Specific (relating to the subject property and
comparable properties in the Imarket), Primary (information gathered by the Consultant
that is not available in a published source, such as property dimensions and
characteristics), and Secondary (published information such as census data ( Data)
58. Which of the following criteria most completely define "highest and best use"?
(Physically possible, legally permissible, financially feasible, and generating a higher
present land value than any other use)
59. Units of comparison are used in ( only the sales comparison approach)
60. The use or uses of a consultants reported consulting engagement, opinions and
conclusions, as identified by the consultant based on communication with the dient at
the time of the engagement( Intended use)
61. A person who charges a fee for rendering consulting service involving real estate
problem or issues ( Fee consultant)
62. In discounted cash flow analysis, the reversion to be received at the end of the holding
period is ( an amount to be capitalized in perpetuity)
63. 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. (Signature)
64. Which of the following approaches would probably be given the most weight in
appraising a large office building ?( income capitalization)
65. In the cost approach, the site is valued as if it were (Vacant and available for
development to its highest and best use)
66. The earth's surface including the solid surface of the earth, water and anything attached
to it; natural resources in their original site, eg, mineral deposits, timber soil. In law, land
is considered to be the solid surface of the earth and does not include water. (Land)
67. Costs that are readily identified in the construction of real estate, such as labor,
materials, and contractor's overhead and profit. ( Direct costs)
68. 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. (Licensed Real Estate Consultant)
69. The process of forecasting future trends based on current and past data patterns and
relationships. Extrapolation assumes that the same economic factors that affected past
trends are likely to continue over the forecasting period (Extrapolation)
70. The ability to formulate an opinion, estimate or conclusion about an issue or problem,
given that data or evidence available (Judgment)
71. In accounting, a method of recognizing and recording items of income and expense to
the period in which each is earned or incurred, respectively, regardless of the date of
actual payment or collection (Accrual system)
72. Zoning is an exercise of th~ ( Police powers)
73. Any question, doubt, uncertainty, or difficulty arising from a historical realty situation in
which something has gone wrong from a normal situation without yet available
explanation. This calls from the Consultans, ( Clients problem)
74. The sum of money a developer expects to receive in addition to cost for the time and
effort, coordination and risk- bearing necessary to develop real estate. (Development
profit)
75. The price or outlay of funds required to obtain rights in a property. Its cost includes
expenses such as closing costs, mortgage loan origination fees, legal and consulting fees.
(Acquisition cost)
76. The group of properties that are in the same classification and complete directly with
the subject property in the immediate market area (Competitive market segment)
77. Information that is not specific to a certain property, e.g., interest rates, employment
rates and census information, (General data)
78. The act or process of providing information, analysis of real estate data, and
recommendations of conclusions on diversified problems in real estate, other than
estimating value in a disinterested manner (Consulting)
79. A systematic analysis based on specific methodology that seeks to identify and measure
any effect on economic activity or market indicators resu from the location, introduction
or change of a major land-used activity within the market are- Examples are proposed
overhead high-voltage ele transmission line traversing the area or the sudden availability
of unexpected information about a major employer or land user in the area ( Economic
impact study)
80. Final value estimates should be rounded to reflect the (Lack of precision associated with
an opinion)
81. All of the following will affect the market value of a property EXCEPT(Acquisition cost to
present owner)
82. The total floor area of a building measured in square meter from the external walls,
excluding unenclosed areas. Unlike gross living area measurements ( Gross building area
(GBA))
83. The schedule of market value for ad valorem tax in municipalities outside Metro Manila
is prepared by: (Provincial Assessor)
84. A identifies a property in such a way that it CANNOT be confused with any other
property.( Legal description)
85. The utility of real estate is its (capacity to satisfy human needs and desires)
86. A misconception occurring when an analyst become overly optimistic about a project.
Occurs when the analyst is swayed by the client's enthusiasm for the product and begins
to believe that the project is unjustified unique in character. (Volitional fallacy)
87. The fullest and most common type of estate in realty is; ( fee simple)
88. Environmental Management Plan is a section of the EIS that details the prevention,
mitigation, contingency and monitoring measures to enhance positive impacts and
minimize negative impact of a proposed project or undertaking. ( EMP)
89. The authoritative rule which serves as guide to achieve competent and ethical practice
in developing and reporting the consulting service (Standard)
90. When a site has improvements on it, the highest and best us ( depends on whether or
not the existing use is changeable)
91. The 3 basic approaches used to estimate value are ( Cost, sales comparison, and income
capitalization)
92. Environmental impact statement refers to the documents or studies on the
environmental impacts of a project including the discussions on direct and indirect
consequences upon human welfare and ecological and environmental integrity. ( EIS)
93. Regional Executive Director of DENR(RED)
94. All of the following statements are true EXCEPT ( Real property is a type of service)
95. The term vertical interests does NOT refer to rights to ( Subdivision and development)
96. The risk associated with the uncertainty of future income flows caused by the nature of
a business. in real estate, business risk includes future variability in rents, vacancies, and
operating expenses.(Business risk)
97. Any written communication of a consulting service that is transmittal to the client upon
completion of an engagement. ( Report)
98. The date of the transmittal letter of a written report or the date a written report lacking
a transmittal letter is prepared by the Consultant. The date of an oral report is the date it
is communicated to or for the client. The date of the report may or may not be the same
as the effective date at which the anlyses, opinion, and advice in a consulting service
apply. (Date of the report)
99. A financing technique in which the seller finances part of the purchase through a note
secured by a junior mortgage or contract for deed ( Carryback financing)
100. The three common types of legal description are ( metes and bounds, recorded
lot, block, and tract, and government rectangular survey)