47 Questions
What is one of the key requirements for a consultant when performing real estate or real property consulting services?
Understanding and correctly employing recognized methods and techniques
Which method is directed toward the substantive aspects of the performance of real estate consulting services?
The Real Estate Consulting Process
Who prescribes specific standards in the development of consulting advice for real estate or real property consulting services?
The USPRCP
What consists of the development standards as prescribed by the USPRCP?
Specific standards in the development of consulting advice
What is the purpose of Standard 2 in real estate consulting?
To ensure that consulting reports are logically and convincingly explained
What is required in a consulting report according to Rule 2-1?
Setting forth the effective date of the consulting service and the date of the report
What must a consultant do when undertaking engagements involving the achievement of specific goals of the client?
Exercise extreme caution and impartiality
What is essential for each written consulting report according to Rule 2-1?
Logical reasoning and sound professional judgment
What is required in any oral report according to the text?
Contain sufficient information to enable the person(s) who receive or rely on the report to understand it properly
What does Standard 1 require in a consulting report?
Setting forth any additional information that may be appropriate to show compliance with, or clearly identify and explain permitted departures from, the requirements to Standard 1
What does a consultant need to do according to Rule 2-1 for a consulting report?
Clearly identify and accurately set forth the consulting service in a manner that will not be misleading
What is the purpose of including specific assumptions or conditions imposed by the client in the identification of the objective of the consulting service?
To ensure that the client's requirements are clearly understood and addressed
What is the consequence of omitting any of the requirements from a consulting report transmitted to the client without good cause?
It is considered a violation of the Standard Rule 2-2
What must be included in each written report according to the Standard Rule 2-2?
A certification similar in content to a specified form
What violates both the Ethics Provision and Standard Rule 2-2?
A misleading or fraudulent report
What is meant by 'cash flow analysis' according to the definitions under the USPRCP?
An analysis of anticipated movement of cash into or out of an investment
What is considered as 'effective demand' in economic writings?
Desire to buy coupled with ability to pay
What is the purpose of providing advice in a consulting engagement?
To consider judgment arrived at after careful investigation and analysis in a consulting engagement
What is defined as 'client’s objective' according to the definitions under the USPRCP?
Any question arising from a historical or prospective realty investment desire dealing with difficult decision on available alternative courses of action, project, or situation
'Economically feasible' refers to a real estate project's ability to meet which financial investment objectives?
'Economically feasible' refers to projects that can produce sufficient cash flows to repay expenses and provide a competitive return
'Data' pertinent to a specific assignment may be divided into which four different classes according to the USPRCP?
'Data' can be divided into four different classes - general, specific, primary, and secondary data
What is considered as 'binding requirement' according to USPRCP?
Part of a standards rule from which departure is not permitted
What must each written report include according to Standard Rule 2-2?
A certification similar in content to a specified form
In the context of real estate consulting, what does the USPRCP prescribe?
The standards for achieving competency and ethics in consulting practice
What are the hallmarks of consulting as expressed in the Code of Ethics?
Fiduciary relationship with the client
What is the first decision facing the prospective client according to the text?
Selection of a consultant with sound character and professional competence
What does the consultant's freedom and objectivity in performing an engagement entail?
Not accepting engagements beyond their competence and expertise
Under what circumstances may a consultant testify in any proceedings regarding an engagement?
With the written consent of his client or in response to legal process
What does the Code of Ethics prohibit in terms of accepting consulting engagements?
Accepting engagements that are contingent on predetermined opinions or positions
What is the significance of the personal integrity of a consultant in providing consulting services?
It determines the value of consulting services
What does the consultant's signature indicate according to the text?
Acceptance of responsibility for content, analyses, and conclusions in the report
What does the Ethics In Consultancy emphasize?
Independence of action and objectivity in analysis
According to the Code of Ethics, under what circumstances should a consultant withdraw from an engagement?
If there is a conflict of interest fully disclosed in writing
What are some factors that may preclude or limit a consultant's ability to develop factual opinions or conclusions?
Precluding or limiting fee contingent on advice given
What does the Code of Ethics state regarding engagements involving only determination of real estate value?
They must be covered by clear statements as preliminary opinions and not appraisals
What is the definition of Feasibility Analysis?
A study of a proposed economic activity’s capability of being accomplished under certain conditions and assumptions of marketing, technical, or financial aspects.
What is the highest and best use (HBU) of a property?
The use that results in the highest present value of the land after considering all legally permissible, physically possible, and economically feasible uses.
What is the purpose of a Marketability Study?
To address the ability of the property to be absorbed, sold, or leased under current and anticipated market conditions.
What does REAL PROPERTY refer to?
The interest, benefits, and rights inherent in the ownership of real estate.
What is the purpose of a Market Analysis?
To study the supply and demand conditions for a specific type of property in the real estate market.
What is LAND UTILIZATION STUDIES about?
An analysis of the potential uses of a parcel of land with consideration for legally permissible, physically possible, and economically feasible uses.
What is PRIMARY DATA?
Information gathered by the consultant that is not available in a published source.
What is REAL ESTATE CONSULTANT as defined under R.A. 9646 Real Estate Service Act?
A duly registered and licensed natural person who offers or renders professional advice on real estate matters for a professional fee.
What is REALTY?
Refers to both real estate and real property.
What does RENT-UP PERIOD refer to?
The time period during which an income property is expected to lease up to a level stabilized occupancy.
What does INVESTMENT ANALYSIS involve?
A study that reflects the relationship between acquisition price and anticipated stream of future benefits of a real estate investment.
What is LETTER REPORT?
A letter accompanying a consulting report that formally presents the report to the person who requested it.
This quiz covers the standard rule 2-2 which requires consultants to specify all assumptions and limiting conditions for their services, including those imposed by the client. It also emphasizes the importance of investigating and justifying the validity of these assumptions and conditions.
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