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PDM611S - PROPERTY DEVELOPMENT AND MARKETING - 1ST OPP - JUNE 2025 |
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n Am I BI A u n IVE Rs ITY
OF SCIEnCE Ano TECHnOLOGY
FACULTYOF ENGINEERINGAND THE BUILT ENVIRONMENT
DEPARTMENT OF LANDAND SPATIALSCIENCES
QUALIFICATION(S): BACHELOROF PROPERTYSTUDIES
DIPLOMA IN PROPERTYSTUDIES
QUALIFICATION(S)CODE: 08BOPS
06DIPS
NQF LEVEL:6
COURSECODE: PDM611S
COURSENAME: PROPERTYDEVELOPMENT AND
MARKETING
EXAMS SESSION:JUNE 2025
PAPER:
THEORY
DURATION: 3 HOURS
MARKS:
100
EXAMINER(S)
FIRSTOPPORTUNITYEXAMINATION QUESTION PAPER
MR SAMUEL ATO K. HAYFORD
MODERATOR: MR AMIN A. ISSA
INSTRUCTIONS
1. Read the entire question paper before answering the Questions.
2. Please write clearly and legibly!
3. Please STARTEACHQUESTION ON A FRESHPAGE.
4. The question paper contains a total of 4 questions.
5. You must answer ALLQUESTIONS.
6. Make sure your Student Number is on the EXAMINATION BOOK(S).
PERMISSIBLEMATERIALS
1. Non-programmable Scientific Calculator
THIS QUESTION PAPERCONSISTSOF 10 PAGES(Including this front page)
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Property Development and Marketing
PDM611S
Question 1
For each of the following statements indicate whether it is 'TRUE'or 'FALSE'.Eachcorrect answer carries 1
mark.
1.1 Permitted development rights allow certain projects to proceed without planning permission.
1.2 Property developers must submit planning applications to obtain approval for construction projects.
1.3 Financial viability testing is unnecessary in property development projects.
1.4 High vacancy rates indicate an oversupply of real estate which ultimately pressures rental rates
downward because there is so much competition among landlords for tenants.
1.5 When low occupancy rates occur, it is a landlord's market. The low rates create higher demand for
existing units which, in turn, keeps market prices higher.
1.6 A real estate agent's primary job is only to negotiate sales prices on behalf of clients.
1.7 The location of a property is generally the most important factor in real estate valuation.
1.8 Commercial properties include office buildings, retail spaces, and warehouses, but not residential
homes.
1.9 Property marketing can include virtual tours and drone photography.
1.10 Financing for property development can only come from traditional banks.
1.11 Property developers must often collaborate with architects, engineers, and contractors.
1.12 Target marketing is irrelevant in property development because all buyers are the same.
1.13 Urban development often involves the revitalization of older neighbourhoods.
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Property Development and Marketing
PDM611S
1.14 A strong online presence can significantly contribute to the successof property marketing.
1.15 Market research is unnecessary if a developer has experience in the industry.
1.16 Public perception can greatly affect the success of a property development project.
1.17 Land development is often subject to extensive legal regulations and approval processes.
1.18 Real estate investment trusts (REITs)allow individuals to invest in large-scale, income-generating real
estate.
1.19 Accounting Rate of Return (ARR) also known as Return on Invested Capital (ROIC) of a development
project determines the magnitude of profit an investor generates for every dollar invested in project
before accounting for operating expenses and taxes
1.20 Building control implemented and enforced by local authorities ensures that building works comply
with the building regulation and a set of standards intended to protect people's safety, health and
welfare in and around the built environment.
1.21 The valuation surveyor is responsible for continuously observing and monitoring the relevant real
estate market, advising to ensure adjustment in design specifications, where necessary, is carried out
for that completed project to remain aligned to meeting market needs.
1.22 The Loan to Value ratio is a risk assessment instrument used by financial institution to examine the
affordability of potential buyers of real estate before approving mortgage application. It is used to
assess the strength of the demand side of the real estate market during market analysis stage of ·
property development.
1.23 Real estate development involves only the construction of new buildings.
1.24 Property developers often take the greatest risks in the development process but also reap the
highest rewards.
1.25 Marketing plans are not necessary for successful property development.
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1.26 Real estate marketing strategies include creating optimized websites, running targeted ads, and
organizing open houses.
[26]
Question 2
2.1 Institutional Property Investors are organisations which pool large sums of money and invest those
sums in securities, real property and other investment assets. Identify these institutional investors
and discuss their respective roles highlighting their objective for investing in real property.
(16)
2.2 Existing buildings wear out or become less suitable for present use due to structural failure or
economic or functional obsolescence. Eventually rebuilding becomes necessary. Briefly account for
any two (2) forms by which Property Development response to such changes. Indicate the basic
requirement that is common to all of them.
(7)
2.3 Mention any two (2) objectives of Property Development.
(2)
[25]
Question 3
3.1 Aunty Nukongo is confronted with a critical real estate investment decision to make regarding two
mutually exclusive investments. Her ultimate investment is to purchase a Lakeside Apartment
building or buy a Real Estate investment Trust (REIT) that will require an outlay of N$94,800 and
N$97,500 respectively. A detailed market survey recently conducted in the comparable market
revealed the following regarding cash inflows for the 2 investments.
Year
1
2
3
4
Real Estate Investment Trust
Lakeside Apartment Building {REIT)
17,000
16,500
43,000
46,000
28,500
32,500
34,000
34,800
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Property Development and Marketing
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In the process of carrying out the investment appraisal you are informed that the projected income
(cash inflows) for year three of both investment vehicles are still inclusive of insurance premium
amounting to N$ 1,350.
a) You are required to advise Aunty Nukongo on which of these mutually exclusive investments
should be undertaken when the investors' target rate is 10%.
(14)
b) In terms of degree of dependence, distinguish between Mutually exclusive investment and
Complementary investment.
(2)
3.2 To develop a sense of the prevailing property market and projection into the future, primary data
provide the Property market analyst with much valuable and accurate results. List four (4) demand
and four (4) supply side factors the analyst may consider.
(8)
[24]
Question 4
Read each question carefully. Among the alternative answers, choose the letter that correspond to the
best/correct answer. Each correct answer carries 1 mark.
4.1 Which of the following best describes the primary duty of an estate agent in relation to the sale of a
property?
A) To ensure that the seller gets the highest possible commission
B) To act in the best interest of the client and maintain honesty and fair conduct
C) To avoid disclosing any information about the property
D) To only secure a sale, regardless of the terms
4.2 What is the first step an estate agent should take when entrusted to sell a property?
A) Conduct a market analysis
B) Understand the client's needs and motives for selling
C) Create a marketing campaign
D) List the property on line immediately
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4.3 Which of the following should an Estate Agent include in a Comparative Market Analysis (CMA)
A) Only properties that have been sold recently
B) Only properties that are currently on the market
C) A mix of properties that are sold, currently on the market, and have been on the market but
didn't sell
D) Properties that are most similar to the agent's listing
4.4 What is essential for an estate agent to know before marketing a property?
A) The property's history
B) The market conditions in the neighborhood
C) The exact square footage
D) The property itself to avoid making misrepresentations
4.5 When should an estate agent disclose the commission to a client?
A) After a sale is complete
B) When obtaining the mandate to sell
C) Only if the client asks
D) During the negotiation of the final price
4.6 If an estate agent does not intend to seriously market a property, what should they do?
A) Accept the mandate and market it casually
B) Decline the mandate
C) Accept the mandate and delegate to another agent
D) Advertise the property at a very high price
4.7 What should an estate agent do after receiving an offer to purchase a property?
A) Reject the offer immediately
B) Keep the offer confidential
C) Present the offer to the seller and explain how it aligns with the seller's needs
D) Ignore the offer if it is below the asking price
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4.8 What is the role of an estate agent after the seller accepts an offer to purchase?
A) The agent's service ends immediately
B) The agent should maintain contact with the seller to update on progress like mortgage bond
applications
C) The agent should cease all communication with the seller
D) The agent should start negotiating a new offer
4.9 Which of the following is an example of an estate agent's duty to act in the best interest of the
client?
A) Selling the property at a price lower than the market value for a quick sale
B) Working to sell the property at the highest possible price
C) Keeping the client's information confidential without their permission
D) Ignoring the client's preferences for the sake of convenience
4.10 What constitutes a conflict of interest for an estate agent?
A) Buying a property from the client without disclosing the transaction to the client
B) Advising the client on the best time to sell
C) Assisting the client in understanding the sale process
D) Showing the property to multiple potential buyers
4.11 What should an estate agent do if they receive money on behalf of a client?
A) Spend the money on marketing expenses
B) Keep the money in a personal account
C) Keep proper books of account and furnish the client with details when paying over the money
D) Donate the money to charity
4.12 What happens if an estate agent makes secret profits during a transaction?
A) They are entitled to keep the profit
B) It is a violation of their ethical duties unless disclosed to and approved by the client
C) The client will automatically receive the profits
D) The agent receives a reduced commission
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4.13 An estate agent's fiduciary relationship with a client means they must:
A) Act in the best interest of the agent
B) Show the utmost good faith towards the client
C) Focusonly on completing the transaction quickly
D) Disclose all details about the property to the public
PDM611S
4.14 How should an estate agent handle confidential information about a client?
A) Use the information to their advantage for personal gain
B) Disclose the information to third parties
C) Keep the information confidential, both during and after the mandate
D) Only use it in discussions with other clients
4.15 What does an estate agent need to disclose if they are given competing mandates for the same
property?
A) Only the higher offer
B) The potential for conflict of interest and the competing mandate
C) The buyer's financial details
D) Nothing, as long as both clients are happy
4.16 What is the legal obligation of an estate agent concerning advertising a property?
A) They can make false claims as long as it helps sell the property
B) They can use any marketing techniques as long as the property sells
C) They must ensure advertisements are truthful and not misleading
D) They must advertise the property on every platform available
4.17 When must an estate agent provide a written explanation of their actions to the client?
A) Only after the property is sold
B) If requested in writing by someone with a material interest in the property transaction
C) When the client requests to review the agent's commission
D) Before signing any agreement
4.18 What does the duty to act with reasonable care and skill require from an estate agent?
A) To always accept offers, even if they are lower than expected
B) To perform their duties with the expected level of competence and diligence
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C) To avoid discussing the property's features with prospective buyers
D) To only negotiate with buyers after receiving an offer
PDM6115
4.19 Which of the following is an example of a situation where an estate agent may breach their duty to
avoid a conflict of interest?
A) Representing a seller while also representing the buyer of the same property without disclosing
it
B) Advertising the property on social media platforms
C) Showing the property to multiple buyers
D) Providing advice on financing options to buyers
4.20 What should an estate agent do if they fail to properly market a property after accepting the
mandate?
A) Ignore the issue and continue with the transaction
B) Notify the client of the lack of progress and discuss alternative strategies
C) Wait for the client to notice and bring it up
D) Only advertise on one platform to avoid too much exposure
4.21 What is the responsibility of an estate agent regarding the completion of a contract between the
client and a third party?
A) The estate agent must always complete the contract
B) The estate agent is not legally obliged to complete the contract unless agreed with the client
C) The estate agent must complete the contract only if the sale is above a certain price
D) The estate agent can delegate the contract completion to a lawyer only
4.22 What action is an estate agent prohibited from taking in relation to the property's marketing?
A) Using correct and ethical advertising
B) Making false statements about the property to attract buyers
C) Using a variety of platforms to reach buyers
D) Listing the property at an appropriate price
4.23 When should an estate agent disclose the terms of their commission to a client?
A) After the sale is closed
B) At the time of obtaining the mandate
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C) After negotiating with the buyer
D) When the property is listed for sale
4.24 Which marketing approach is unethical for an estate agent?
A) Highlighting unique features of properties
B) Using false statements in advertisements
C) Conducting open houses regularly
D) Providing accurate descriptions of listings
4.25 How should funds received on behalf of clients be managed?
A) Deposited into personal accounts
B) Properly accounted for and reported to clients
C) Used for marketing expenses without disclosure
D) Retained until disputes are resolved
PDM611S
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