EXAMINATION ON LEGAL ASPECTS OF SALE, LEASE, MORTGAGE AND FORECLOSURE

1.

A parcel of land was sold by a corporation to the buyer. In case of a corporation, it is required
that the person who will sign the deed of absolute sale must be
a. The President of the corporation
b. The corporate secretary
c. The Vice-President for Real Estate
d. The person authorized by a board resolution
e. The person authorized by the president

2. It is a contract by virtue of which the creditor acquires the right to receive the fruits of an
immovable of his debtor, with the obligation to apply them to the payment of the interest, if
owing thereafter to the principal of his credit.
a. Deed of sale
b. Antichresis
c. Deed of Mortgage
d. Contract to Sell
3. A kind of mortgage which can be paid off even before its maturity.
a. Open Mortgage
b. Closed Mortgage
c. Voluntary Mortgage
d. Judicial Mortgage
4. Marital consent is not required in deed of sale, except:
a. When the property relations of the spouses is one of absolute community
b. When the property relations of the spouses is one of absolute separation
c. When the property relations between the spouses is one of the conjugal partnership p and
the property involved was acquired by onerous title during the marriage at the expense of
the common fund
d. A and b
e. A and c
5. Essential Requisites of a contract of sale.
a. Cause or consideration
b. Object or subject matter
c. Consent or meeting of the minds of the buyer and seller
d. All of the above
e. None of the above
6. The contract of lease shall be binding on third parties if the contract of lease is:

a.
b.
c.
d.
e.

Duly notarized
Recorded in the Civil Registry
Recorded in the Registry of Property
In writing and duly notarized
In writing

7. A term that refers to the reservation of right to buy which is separate from the purchase price.
a. Option
b. Earnest
c. Partial payment
d. Escrow
e. Full down payment
8. What is the Rule in case area is different from that stated in the contract and the sale is for a
lump sum:
a. The vendee may accept the area included in the contract and reject
b. The vendee may accept the whole area, but must pay for the excess area at the contract
c. There shall be no increase or decrease of the price although there is a greater or lesser area
that stated in the contract.
d. All of the above
e. None of the above
9. Mr. Y sold a parcel of land to 2 or more buyers, who has a better right to the ownership of the
property.
a. The buyer in good faith who first recorded sale in the Civil Registry
b. The buyer in bad faith who first recorded the sale in the registry of property
c. The buyer is good faith who can present the oldest title
d. The buyer in good faith who was first in possession
e. The buyer in good faith who first recorded sale in the registry of property
10. Mr. X sold the a parcel of land to Mr. Y without the written consent of his wife, Ms. Z. The
property regime of the couple is absolute separation. What is the effect of the sale:
a. Valid
b. Void
c. Unenforceable
d. Voidable
11. Money given by the buyer to the seller, as a proof of the perfection of the contract. It is a partial
payment of the purchase price and it must be deducted therefrom:
a. Option money
b. Play money
c. Earnest money

d. None of the above

12. One that is not mortgage in form but in substance.
a. Pacto de recto sales
b. Dacion en pago
c. Pactum de non-aliendo
d. Pactum commissorium
e. None of the above
13. In the right of redemption, when can a mortgagor redeem the property:
a. Within the term of 1 year from the date of foreclosure
b. Within the term of 1 year from the date of registration of the auction sale
c. Within the term of 1 year from the date of mortgage
d. None after the registration of the certificate of foreclosure sale with the register of Deeds
which in no case shall be more than three (3) months after foreclosure whichever is earlier.
14. This is a contract of sale whereby the property being sold is presently mortgaged and the
Vendee pays a certain amount to the vendor and assumes as well the existing obligation which
is secured by a mortgage over the property.
a. Deed of Sale with Mortgage
b. Deed of sale with assumption of mortgage
c. Deed of sale with the right to repurchase
d. Deed of mortgage
e. Deed of sale
15. Mr. Rich sold his property to Mr. Investor without the consent of Mrs. Rich. The property regime
of Mr. and Mrs. Rich is absolute community. The sale to Mr. Investor is:
a. Valid
b. Unenforceable
c. Void
d. Rescissible
e. Voidable
16. A stipulation which authorizes the mortgage to appropriate the property as his own upon failure
of the debtor to fulfil the principal obligations. This is void and of no legal effect:
a. Pactum de non aliendo
b. Pacto de retro
c. Dacion en pago
d. Pactum commissorium
e. Pre-termination clause
17. The person who cannot acquire by purchase because of fiduciary relationship:

a.
b.
c.
d.
e.

Guardians
Executor and administration
Agents
All of the above
None of the above

18. The buyer bought a 200 sqm. Subdivision lot at P10,000.00/ sqm. He paid 20% down payment
the balance payable in 120 equal amortizations totalling P 1,152,000 inclusive of penalty interest
of P 52,000.00.
Compute for his cash surrender value under the Maceda Law.
a. 853,600
b. 750,000
c. 825,000
d. None of the above
e. No cash surrender value
19. Assuming same values but he has paid 18 monthly amortization totalling to 354,978 monthly
amortization inclusive of 54,978. What is the cash surrender value under the Maceda law, if any.
a. 350,000
b. 377,489
c. 354,978
d. None of the above
e. No cash surrender value
20. The buyer bought a 200 sqm. Subdivision lot at P20,000.00 / sqm. He paid 20% down payment
the balance payable in 180 equal amortization at 22% interest per annum. He has paid 168
monthly amortization totalling P 3,872 inclusive of penalty interest of P72,000.00.
Compute for his cash surrender value the Maceda Law. What is the cash surrender value under
the Maceda law, if any.
a. 4,370,000
b. 4,140,000
c. 3,872,000
d. 4,204,800
e. None of the above

REB EXAM.
21. The technical description in the TCT of a real property can readily be plotted on a sheet by usng
the following date
a. Bearing and lot point (monuments)
b. Distance and lot points (monuments)

c. Bearing and tie line

d. BBLM and tie line
e. Distance and bearing from lot points
22. When the deceased registered owned is survived by a sole heir, the estate of the former maybe
transferred to the latter with the execution of a document known as
a. Deed of transfer
b. Extra-judicial settlement of estate
c. Will
d. Declaration of ownership
e. Affidavit of self-adjunction
23. An appraisal principle which holds that the value of property tends to be enhanced by
association with superior properties, is
a. Principle of infiltration
b. Principle of regression
c. Principle of progression
d. Principle of competition
24. Jurisdiction for adjudication of buyers complaints against subdivision developers is with the
a. Bureau of trade regulation and consumer protection DTI
b. Housing and urban development and coordinating council
c. National housing authority
d. Housing and land use regulatory board
e. Regular courts
25. The study of current supply and demand conditions in a particular area for a specific type of
property is
a. Real estate appraising
b. Cash flow analysis
c. Absorption estimate
d. Market analysis
e. Income projection
26. A kind of survey where the shape of the earth is taken into account in computing results is
known as
a. Plane survey
b. Geodetic survey
c. Topographic survey
d. Cadastral survey
e. Hydrographic survey

27. The rational approach of allocating available land resources as equitably as possible among
competing user group.
a. Land assembly
b. Land use plan
c. On-site development
d. Urban renewal
28. The following is covered by the requirement of Certificate of registration and license to sell
a. Sale of a subdivision lot resulting from partition of land among co-owner and heirs;
b. Sale or transfer of subdivision lot by the original purchase thereof and any subsequent sale
of the same lot;
c. Sale of subdivision lot by a real estate developer
d. Sale of subdivision lot or a condominium unit for the account of a mortgages in the ordinary
course of business when necessary to liquidate a bonafide debt.
29. Registration of real estate instrument can be given due course without the presentation of the
owners duplicate certificate of title when the document is
a. Notice of adverse claim
b. Notice of lis pendens
c. Writ of attachment
d. Deed of absolute sale
30. Special power of attorney are necessary in the following cases, except
a. To perform acts of administration
b. To lease any real property for more than a year
c. To convey real rights on immovable property
d. To cancel any obligation gratuitously
31. Which of the following government agencies is in charge of the overall strategies for the
countrys National Housing Program
a. National housing authority
b. Housing and land use regulatory board
c. Housing and urban development coordinating council
d. Land registration authority
32. The ratio that expresses the relation between gross income and sales price of a property is
a. Recapture rate
b. Effective gross income
c. Capitalization
d. Gross income multiplier
e. Return on asset

33. Unless extended for a justifiable cause, the period for development completion of a subdivision
project from issuance of license to sell is:
a. Six months
b. Twelve months
c. Eighteen months
d. As approved by HLURB
e. Twenty-four months
34. It refers to the acquisition of land at values base d on existing use in advance of actual need to
promote planned development and socialized housing
a. Land use
b. Land assembly
c. Land consolidation
d. Land banking
35. The following are modes of acquiring lands for purposes of Urban Development and Housing
Act, except
a. Community mortgage
b. Joint venture agreement
c. Negotiated purchase
d. Land swapping
e. Foreclosure
36. The following are determinants of value in appraisal of realty, except:
a. Contribution
b. Demand
c. Purchasing value
d. Scarcity
e. Utility
37. The government agency is responsible for the preparation of comprehensive land use in a
locality.
a. Local government unit
b. HUDCC
c. Register of Deeds
d. HLURB
e. DAR
38. A building is depreciated at 2.5% per year on a straight line basic. What is the estimated useful
life of the building?
a. 30 years
b. 40 years

c. 50 years
d. 60 years
39. The article of incorporation of homeowners association is registered with:
a. Securities and exchange commission
b. Housing and land use regulatory board
c. Home guaranty corporation
d. Bureau of trade regulation and consumer protection
40. It refers to the acquisition of land at values based on existing use in advance of actual need to
promote planned development and socialized housing
a. Land use
b. Land assembly
c. Land consolidation
d. Land banking
41. A subdivision plan of a registered land wherein a street, passageway or open space is delineated
on the plan
a. Simple subdivision
b. Complex subdivision plan
c. Subdivision open space plan
d. Open space subdivision plan
42. Any amendment to the master deed of a condominium project decided by the majority of
owners must be approved by the HLURB and
a. City/ Municipal Mayor
b. City/ Municipal Engineer
c. City/ Municipal Council
d. City/ Municipal Assessor
e. City/ Municipal Development Planning Officer
43. In mixed use condominium projects, the master deed may be amended by simple majority of
the unit owners. Majority is based on:
a. Number of condominium units
b. Total area of condominium units
c. Floor area of ownership
d. Value of the condominium unit
44. Amendment to the master deed of a condominium project approved by majority of the
registered owners need also be approved by the city/ municipal engineer and:
a. Local government
b. Housing and Urban Development Coordinating Council

c. Housing and Land Use Regulatory Board

d. Land Registration Authority
45. The income approach to value is an application of the principle:
a. Highest and best use
b. Substitution
c. Progression
d. Anticipation
46. An estimate or opinion of Value is:
a. Accounting
b. Appraisal
c. Valuation
d. Computation
47. The PAG-IBIG housing loan may be used to finance a purchase of a fully developed lot not
exceeding:
a. 2,000 sq.m.
b. 1,000 sq.m.
c. 5000 sq.m.
d. 100 sq.m.
e. 200 sq.m.
48. Urbanizable areas refer to sites and lands, which considering present characteristics and
prevailing condition, display marked and great potential of becoming urban areas within the
period of
a. Two (2) years
b. Five (5) years
c. Fifteen (15) years
d. Three (3) years
e. Ten (10) years
49. The principle holds that when two or more commodities with substantially the same utility are
available, the one with the lowest price receives the greatest demands and widest distribution.
a. Principle of Contribution
b. Principle of Balance
c. Principle of Highest and Best Use
d. Principle of Substitution
e. Principle of Competition

50. A general area declared thru Proclamation 2146 as environmentally sensitive such that
significant environment impacts are expected if certain types/ thresholds of proposed projects
are located developed or implemented in it.
a. Environmentally Critical Area
b. Environmentally Critical Project
c. Environmentally Sensitive Area
d. Environmentally Safe Area
51. The article of incorporation of homeowners association is registered with:
a. Securities and Exchange Commission
b. Housing and Land Use Regulatory Board
c. Home Guaranty Corporation
d. Home Guaranty Corporation
e. Bureau of Trade Regulation and Consumer Protection
52. It refers to the acquisition of land at values based on existing use in advance of actual need to
promote planned development and socialized housing
a. Land use
b. Land assembly
c. Land consolidation
d. Land banking
53. A subdivision plan of a registered land wherein a street, passageway or open space is delineated
on the plan
a. Simple subdivision
b. Complex subdivision plan
c. Subdivision open space plan
d. Open space subdivision plan
54. Any amendment to the master deed of a condominium project by the majority of owners must
be approved by the HLURB and
a. City/ Municipal Mayor
b. City/ Municipal Engineer
c. City/ Municipal Council
d. City/ Municipal Development Planning Officer
55. In mixed use condominium projects, the master deed may be amended by simple majority of
the unit owners. Majority is based on:
a. Number of condominium units
b. Total area of condominium units
c. Floor area of ownership
d. Value of the condominium unit

56. Amendment to the master deed of a condominium project approved by major of the registered
owners need also be approved by the city/municipal engineer and:
a. Local government
b. Housing and Urban Development Coordinating Council
c. Housing and Land Use Regulatory Board
d. Land Registration Authority
57. The income approach to value is an applicant of the principle of:
a. Highest and best use
b. Substitution
c. Progression
d. Anticipation
58. An estimate or opinion of Value is:
a. Accounting
b. Appraisal
c. Valuation
d. Computation
59. The PAG-IBIG housing loan may be used to finance a purchase of a fully developed lot not
exceeding:
a. 2,000 sq.m.
b. 1,000 sq.m.
c. 5,000 sq.m.
d. 100 sq.m.
e. 200 sq.m
60. Urbanizable area refer to sites and lands, which considering present characteristics and
prevailing condition, display marked and great potential of becoming urban areas within the
period of
a. Two (2) years
b. Five (5) years
c. Fifteen (15) years
d. Three (3) years
e. Ten (10) years
61. The principle holds that when two or more commodities with substantially the same utility are
available, the one with the lowest price receives the greatest demands and widest distribution
a. Principle of Contribution
b. Principle of Balance principle of Highest and Best Use
c. Principle of Substitution
d. Principle of Competition

62. A general area declared thru Proclamation 2126 as environmentally sensitive such that
significant environmental impact are expected if certain types/thresholds of proposed projects
are located, developed or implemented in it.
a. Environmentally Critical Area
b. Environmentally Critical Project
c. Environmentally Sensitive Area
d. Environmentally Safe Area
63. If TCT has an annotation that says subject to Rule 74, Section 4 of the Rules of Court:, it 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 right over said property.
a. Two (2) years
b. Five (5) years
c. Four (4) years
d. Ten (10) years
64. Under RA 7279, _______________________ shall be resorted to only when other modes of
acquisition have been exhausted.
a. Negotiated purchase
b. Land Consolidation
c. Expropriation
d. Joint Venture Agreement
65. A brokers complaint for non- payment of commission by the developer shall be filed with:
a. HLURD
b. BTRCP
c. HUDCC
d. Courts
66. The income approach in estimating the value of an investment property is an application of
a. Principle of Substitution
b. Principle of Progression
c. Principle of Contribution
d. Principle of Anticipation
67. The principle of value which states that the value of a property tends to be enhanced where
there is reasonable homogeneity in use
a. Principle of Highest and Best Use
b. Principle of Conformity
c. Principle of Increasing Returns
d. Principle of Progression

68. When the loan is fully amortized by equal monthly payment, the amount applied to the
principal:
a. Decreases while interest payment increase
b. Increases while interest decreases
c. Increase by constant amount
d. None of the above
69. Total refund to buyer for developers failure to complete the development within the
reglementary period is equivalent to:
a. Decreases while interest payment increases
b. Increases while interest decreases
c. Increase by constant amount
d. None of the above
70. Total refund to buyer for developers failure to complete the development within th3
reglementary period is equivalent.
a. 50% of total payment inclusive of amortization interest less penalty interest
b. 50% of total payment inclusive of amortization interest and penalty interest
c. 100% of total payment inclusive of amortization less penalty interest
d. 100% of total payment less penalty interest plus legal interest
71. The Estate Tax Return shall be filed with the BIR within:
a. 60 days from death of decedent
b. 90 days from death of decedent
c. 120 days from death of decedent
d. 180ndays from death of decedent
72. Under the Urban Land Reform Law (PD 1517), an area is considered urban when it has a
population density of at least ___________ and where at least 50% of economically active
residents are engaged in non-agricultural activities.
a. 500 residents per square kilometre
b. 1,000 residents per square kilometre
c. 1,500 residents per square kilometre
d. 2,000 residents per square kilometre
73. An appraisal technique in which comparative estimates are made between prices paid in actual
transaction and the current listings:
a. Cost Approach
b. Income Approach
c. Market Approach
d. Economic Approach

74. A process that involves predicting and evaluating the likely impacts of a project (including
cumulative impacts) on the environment during construction, commissioning, operation and
abandonment.
a. Environmental Assessment Process
b. Environmental Evaluation Approach
c. Environmental Prediction and Impact Report
d. Environmental Impact Assessment
75. The Subdivision and Condominium Buyer Protective Decree, PD 957, governs the following,
except:
a. Regulates sale of subdivision lots and condominium units to buyer
b. Defines sale to be covered by registration
c. Defines duties and responsibilities of owner/developer (o/d) of condominium and
subdivision projects.
d. Rights of the real estate broker versus the developer
e. Defines rights of condominium/ subdivision units/ lot buyers.
76. X, owner of a 10-door apartment, rented a unit to Y for a period of one year. Under the law on
lease, Y, without consent of X, may perform any of the following acts, except:
a. Sublease the unit
b. Assign his rights
c. Suspend payment if X falls to make the necessary repairs
d. Demand reimbursement constituting one half the value of the useful improvement
introduced in good faith
77. Several houses valued at P 1,000,000.00 and P 2,000,000.00 were built in area where an existing
house valued at P 300,000.00 is located. As a result, the value of the latter increased. The real
estate principle of value that applies to this situation is called the principle of:
a. Substitution
b. Improvement
c. Progression
d. Regression
78. Presidential Decree No. 1216 defines open spaces in residential subdivision and requires
subdivision owners to provide adequate roads, alleys, sidewalks and reserved open spaces for
parks or recreational use equivalent to.
a. 10%
b. 20%
c. 25%
d. 30%

79. Registration of mortgage covering projects can only be affected when the deed is accompanied
by a permit to mortgage issued by:
a. Local Government Unit
b. Housing and Urban Development Coordinating Council
c. Home Insurance Guarantee Corporation
d. House and Land Use Regulatory Board
e. National Housing Authority
80. The priority of tenant to buy the land located is an urban reform area is known as:
a. Tenants possessory right
b. Tenants incremental right
c. Tenants right of first refusal
d. Tenant retention right
81. A petition may be filed by one or more unit owners of condominium project when damage to
the project has rendered one-half or more of the unit untenantable and unit owners holding
more than _________ percent interest in the common areas are opposed to repair or
restoration of the project:
a. 30%
b. 40%
c. 50%
d. 60%
82. At 18% interest per annum, how much is the interest of P500,000.00 loan fro 65 days using 360
as number of says in a year?
a. P15,000.00
b. P16,027.70
c. P16,250.00
d. P90,000.00
83. A land survey always uses a fixed point of reference, it could be any of the following, except:
a. City Boundary Monument
b. Bureau of Land Location Monument
c. Provincial Boundary Monument
d. Tie Line
e. Bureau of Lands Boundary Monument
84. A subdivision plan prepared for a flat terrain condition is:
a. Contour planning
b. Chaplan planning
c. Topographic Planning
d. Square planning

85. The technical description in the TCT of real property can be readily plotted on a sheet of paper
by using the following data:
a. BLLM and the tie line
b. Bearing and lot points
c. Bearing and tie line
d. Bearing and distance from lot points
e. Bearing and lot points
86. As provided by R.A. 7279, a developer of a subdivision is required to develop an equivalent of
twenty percent (20%) of the project for:
a. Open space
b. Socialized housing
c. Commercial area
d. Economic housing
87. In condominium, the share in the common areas may be made under the following modes,
except:
a. Equal sharing
b. Based on the value of the unit
c. Based on the number of units owned
d. Based on the unit area
88. The following reports are acceptable for a real estate appraiser under the RESA, expect:
a. Letter Report
b. Oral Report
c. Narrative Report
d. Form Report
89. Arnold and Rosita sold their house which is their principal residence. You as their broker have to
advise them that the transaction is exempt from the capital gains tax if they spend how many
percent of the sales proceeds in acquiring or constructing their new principal residence?
a. 50%
b. 75%
c. 100%
d. 60%
90. Exemptions on payment of six percent (6%) capital gains tax on the sale of an individual sellers
principal residence who will use the proceeds to purchase a new place of residence may be
availed of only once very:
a. 5 years
b. 8 years

c. 10 years
d. 12 years
91. Your client asked you to make a simple appraisal of his lot in Baguio prior to giving you an
exclusive authority to sell the lot. Based on the technical description and an inspection of the
property and surroundings, you have determined the following:
Land area
Average price of land in the area
Unobstructed view (plus)
Topography (minus)
Plottage value (plus)

= 3,200 square meters

= 9,000 per square meter
= 15%
= 10%
= 6%

What is the fair market value of the property.

a. Fair Market Value = P31,968,000.00
b. Fair Market Value= P 30,240,000.00
c. Fair Market Value = P 28,800,000.00
d. Fair Market Value = P 33,120,000.00
92. Annotation of Section 3, Rule 74 of the Rules of Court on the title to the property of a deceased
person with a surviving spouse and children, provides that the property shall be subject to the
rights of three of the following four. Who among the four does not have a right to the subject
property?
a. Heirs
b. Any person who might have been unduly deprived of his participation in the deceased
c. The parents of the deceased
d. Creditor
93. Refers to the purchase by a person, natural of juridical, of more than one saleable lot or unit
within an HLRB approved subdivision for the purpose of re-selling the same with or without
introducing alteration in the approved plan.
a. Wholesale purchase
b. Wholesale buying
c. Bulk Buying
d. Bulk Purchase
94. Mr. PASTOR wants Mr. FELIPE to sell the titled property of their family corporation. After
inspecting the property Mr. FELIPE request for an Exclusive Authority to Sell. Who should be the
signatory in the authority and all the subsequent documents in case the property is sold.
a. Whoever is authorized in a formal board resolution as per the Corporate Secretarys
Certification
b. The company President

c. The father who is the patriarch of the family

d. The Treasurer of the corporation
95. Mr. Cruz was the lessor of 25 units of residential apartments with equal rental payments and
made a total annual gross receipts of P2,700,000.00 for the year 2008.
How much is the value added tax for the year?
a. P241,071.42
b. P289,285.71
c. P270,000.00
d. VAT Exempt
e. P324,000.00
96. In case of inheritance by the children from their parents, the following taxes and expenses must
be paid for the estate in case it involves real property, except:
a. Estate tax
b. Transfer tax
c. Documentary Stamp tax
d. Registration Fees
97. The creditable withholding tax in the sale of acquired foreclosed asset of a bank in the amount
of P950,000.00 is:
a. 1.5%
b. 3.0%
c. 5.0%
d. 6.0%
98. In the sale of a parcel of land by a corporation in the amount of P750,000.00 which is a capital
assets, tax to be imposed is:
a. 1.5%
b. 3.0%
c. 5.0%
d. 6.0%
99. The transfer tax on the sale of real property shall be paid to:
a. Bureau of Internal Revenue
b. City Treasurer
c. City Assessor
d. Register of Deeds
100. The life of the condominium corporation is:
a. 50 years

b. 25 years renewable for another 25 years

c. 99 years
d. Co-terminous with the project
101. A certificate to which the Proponent conforms to comply with existing environmental
regulations or to operate within nest environmental practices that are not currently covered by
existing laws.
a. Environmental Clearance
b. Environmental Development Permit
c. Environmental Compliance Certificate
d. Environmental Undertaking
102. A method of property appraisal by estimating the fair market value of an improvement by
estimating present reproduction cost and deducting depreciation is:
a. Basic improvement approach
b. Cost approach
c. Income approach
d. Market date approach
103. The most important document to be checked by a buyer before buying a subdivision lot in a
residential subdivision.
a. Master Deed
b. Subdivision Plan
c. License to sell
d. Reservation Agreement
104. The present rate of VAT for the sale of real properties owned by a corporation in the amount of
P20,000,000 is
a. 5%
b. 10%
c. 12%
d. 6%
105. Traditional ownership is best evidence by
a. CCT
b. TCT
c. Master Deed
d. Tax Declaration
106. The special power of attorney executed abroad must be authenticated by any of the following,
except:
a. OWWA

b. Consul, Vice Consul

c. Philippine Ambassador
d. Charge d Affairs
107. If a decedent died leaving several heirs, but no will and no debts, the heirs must execute the
following document to transfer the title to the heirs.
a. Affidavit of Adjudication by heirs
b. Partition Agreement
c. Transfer of Rights
d. Deed of Extrajudicial Settlement
108. Which among the following function s is devolved to the L:GU under the Local Government
Code.
a. Issuance of License to Sell of a Subdivision
b. Issuance of approval of subdivision plans subject to national laws and standards
c. Revocation of License to Sell by a Developer
d. Adjudication of subdivision related complaints
109. Mr. GPA executed a special power of attorney in favour of Mr. D to sell his land located in
Bulacan but Mr. D did not sign the special power of attorney. The special power of attorney is
a. Voidable
b. Void
c. Unenforceable
d. Valid
110. The difference the total contract price and the amount to be financed through a bank loan by
the buyer is.
a. Amortization
b. Buyers equity
c. Balloon payment
d. Downpayment
111. An annotation on the TCT that refers to the limitation on the use of the lot, such as building lot
easement, further subdivision of the lot, maximum height.
a. Deed of Restriction
b. Easement Regulations
c. Notice of Lis pendens
d. Mortgage
112. In order to register a sale with the Register of deeds, the buyer must present the following
documents, except:
a. Certificate Authorizing Registration

b. Proof of payment to the seller

c. Original owners duplicate certificate of title
d. Transfer Tax payment and clearance
113. As defined under Section 2(d) of PD 957, a tract or parcel registered under Act No. 496 which is
partitioned primarily for residential purposes into individual lots with or without improvements
thereon and offered to the public for sale, in cash or instalment terms. It shall including all
residential, commercial, industrial and recreational areas as well as open spaces and other
community and public areas in the project.
a. Residential subdivision plan
b. Open housing subdivision
c. Subdivision development plan
d. Subdivision project
114. In the sale of a condominium unit, it is necessary to present this additional document in order
to register the sale in favour of the buyer with the Register of Deeds.
a. Certificate Authorizing Registration
b. Certificate of Management
c. Certificate of Citizenship
d. Certificate of Non delinquency in Condominium Dues
115. The government agency which is involved in the regulation of environment laws in the
Philippine in relation to the development of subdivisions
a. Department of Agriculture
b. Department of Environment and natural Resources
c. Department of Forestry
d. Department of Housing
116. The latest price ceiling for socialized housing as per the Housing Urban Development
Coordinating Council is:
a. 150,000
b. 200,000
c. 225,000
d. 400,000
117. A certificate certifying that, based on the submitted project description, the project is not
covered by the EIS System and is not required to secure an environmental compliance certificate
or ECC
a. Certificate of Non-Coverage
b. Certificate of Exemption
c. Certificate of Compliance
d. Certificate of Environmental Compliance

118. Refers to housing programs and projects covering houses and lots or home lots only undertaken
by the Government or the private sector for the underprivileged and homeless citizens pursuant
to RA 7279.
a. Socialized Housing
b. Low Cost Housing
c. Homeless Housing Program
d. Low Cost and Homeless housing
119. It is the rational and deliberate allocation of land resources to different uses based on the
comprehensive and integrated plan for the area. It translates the social-economic, the
infrastructure and environmental plan into land allocations.
a. Land use plan
b. Land rationalization plan
c. Land use and comprehensive plan
d. Land use environmental plan
120. The following are modes of compliance with Sec. 18 or PD 7279, except.
a. Development of a New Settlement
b. Development of Subdivision Facilities
c. Slum Upgrading. To be certified by the National Housing Authority or the Local Government
Unit concerned.
d. Participation in the Community Mortgage Program (CMP) either as a financier or a developer.
121. No real estate dealer broker or salesman shall engage in the business of selling subdivision lots
or condominium units under PD 957 unless he has registered himself with
a. Professional Regulation Commission
b. Housing and Land Use Regulatory Board
c. Department of Trade and Industry
d. City Mayors Office
122. The following are advantage of condominium ownership, which does not belong
a. Easy to maintain
b. Can be sold to foreigners
c. Evidence by TCT
d. Economy in land space
123. The violation of the provisions of the Subdivision and Condominium Buyer Protective Decree
could subject the developer to fine of
a. 5,000
b. 10,000
c. 100,000
d. 20,000

124. In real estate appraisal, what approach is used through the conduct of a survey or investigation
into similar properties being sold in the area.
a. Market Data approach
b. Cost approach
c. Survey approach
d. Market Research approach
125. In case one cannot find or locate his copy of the owners duplicate certificate of title, he must file
with the register of deeds the following:
a. Affidavit of Loss
b. Affidavit of Recovery
c. Sworn statement of ownership
d. Sworn statement of loss of original copy
126. Some of the common annotation appearing in the title are the following, except:
a. Mortgage
b. Notice of Lis Pendens
c. Contract of Lease
d. Deed of Absolute Sale
127. In case of transfer tax payable to the municipal treasure, the rate of transfer tax shall be
a. 1.5%
b. of 1%
c. of 1%
d. 1%
128. For purpose of complying with the provisions of PD 957, the owner or developer may divide the
development and sale of the subdivision into phases, each phase to cover not less than
a. Ten (10) hectares
b. Five (5) hectares
c. Twenty (20) hectares
d. Fifteen (15) hectares
129. Prescribes the developmental pace, directions and strategies for the optimum use of land
resources in a community as well as its role in provincial, regional and national development.
a. Development Plan
b. Comprehensive land use plan
c. Community land use plan
d. Development land use plan
130. The following cases do not fall under the jurisdiction of the HLURB, except

a.
b.
c.
d.

Complaints vs. Buyer

Complaints vs. Co-Practitioner
Complaints vs. Owner [Commission]
Complaints by buyer vs. Developer

131. The following documents of a sale of real estate are open to the public and a copy thereof may
be obtained by a person from the Register of Deeds except
a. Certified true copy of title
b. Lot and Vicinity map
c. Deed of Absolute Sale
d. Certificate Authorizing Registration on the sale
132. The principle of supply and demand is one of the basic principles of property valuation and in
case there are more properties being sold than the demand for such property, it is referred to as
a
a. Sellers market
b. Buyers market
c. Free market
d. Open market
133. An estimate of value of a parcel of land which is expressed in peso amount and made as of a
particular point in time
a. Value analysis
b. Appraisal
c. Assessment
d. Land value approximation
134. One may have an appraisal of real properties for the following purpose, except
a. Insurance for a manufacturing plant
b. Expropriation of land
c. Construction of additional improvement on the house
d. Partitioning of estate
135. Under PD 957, the real estate broker must file a bond in the amount of
a. 1,000
b. 5,000
c. 20,000
d. 25,000
136. It is referred to as the effect of real estate on the total economy where construction of real
estate brings an effect to other sectors of the economy
a. Economic effect of real estate

b. Multiplier effect of real estate

c. Multiplier effect on the economy
d. Economic multiplier effect
137. It is required that one present this document in the registration of the deed of extrajudicial
settlement for a property with improvements with the register of deeds
a. Building plan
b. Owners copy of duplicate certificate of title
c. Affidavit of no improvement
d. Certification of Building Assessor
138. In a legal contract/ instrument between individuals as parties, the instrument must contain the
following data concerning the parties, except:
a. Full names and addresses
b. Civil status and citizenship
c. Capacity and personality in the contract
d. Board resolution
139. Real Estate Brokerage is the act or practice of negotiating involving the following, except:
a. Sale
b. Lease
c. Build and Sell
d. Mortgage
e. Exchange
140. A real estate dealer engages in the buying and selling of a real estate for the purpose of
receiving:
a. Commission
b. Share of brokers fee
c. Overriding commission
d. Profit
e. Referral Fee
141. Which of the following do not require a license or accreditation from the Professional
Regulation Commission to engage in real estate practice?
a. Real estate dealer
b. Real estate salesman
c. Real estate broker
d. Real estate appraiser
e. Real estate consultant
142. A real broker is required to file a bond with PRC in the amount of?

a.
b.
c.
d.
e.

P 500.00
P 1,000.00
P 5,000.00
P 10,000.00
P 20,000.00

143. The following is an essential element of real estate brokerage

a. At least 5 years experience in sales
b. Knowledge of real estate appraisal
c. Must find at least two (2) buyers
d. Must be employed by the owner as agent
e. Must not expect any valuable consideration
144. In order to be entitled to brokers commission on the sale of the house of his neighbour, the real
estate broker must be
a. Registered with HLURB
b. Registered with BIR as VAT registered
c. Not convicted of a crime involving moral turpitude
d. The procuring cause for the sale
e. The one to negotiate the sale of the property
145. The real estate broker must have a working knowledge of the following, except:
a. Real estate market
b. Real estate economics
c. Laws affecting real estate
d. Basic features of land and building construction
e. Preparation of an appraisal report on the property
146. The essential attributes of a real estate broker, to engage in brokerage practice are as follows,
except:
a. Salesmanship
b. Tact and Diplomacy
c. Honesty and Integrity
d. Been a licensed real estate salesman for (4) years
e. Working knowledge of real estate economics
147. The right of a real estate broker, in a sale of real property, include the following, except:
a. To receive compensation for services rendered;
b. To accept the best offer he deed best for the owner;
c. To be informed of facts concerning the property listed with him;
d. To be given ample time to complete the negotiations;
e. To be treated in good faith by the principal.

148. In real estate brokerage, the principal is liable for the acts of the broker only if
a. Done within the period of authority
b. Within the scope of the authority given to the broker
c. The broker is licensed with HLURB
d. There is a holdover or safety clause
e. There is a written authority given to the broker
149. In the sale of a property of the owner, the real estate broker shall be entitled to commission if
a. The broker knows the buyer personally
b. The broker is able to find a ready and willing buyer
c. The broker is the only broker involved
d. The broker is the procuring cause of the sale
e. The broker is registered with the BIR
150. The holdover clause entitles the real estate broker to
a. Extension of his authority for the same period
b. Extension to look for a willing, ready and able buyer
c. Brokers commission even if the sale is closed after expiration of authority
d. Brokers commission even if the buyer was registered after the expiration of his authority
e. Brokers commission if sold to his buyer by another broker
151. The holdover clause in real estate brokerage, is also referred to as
a. Extension of authority clause
b. Automatic extension clause
c. Right to commission clause
d. Safety clause
e. Extension clause
152. In case a property is leased out by two (2) real estate brokers, the sharing of commission, in the
absence of any agreement, shall be
a. As determined by the owner
b. As determined by the tenant
c. Equal sharing
d. 60% for the broker who represent the lessee
e. 60% for the broker who represents the owner
153. A real estate broker, in engaging in the practice of real estate brokerage, must avoid certain
pitfalls in the practice, otherwise, t will result in the following, except:
a. Loss of investment in the prospective transaction by way of expenses;
b. Loss of expected income;
c. Loss of license;
d. Waste of time;

e. Loss of prestige in attending in the brokerage business and profession.

154. The law that governs the relationship between the principal and the real estate broker is
a. Law on real estate brokerage
b. Law on agency
c. Law on real estate practice
d. Law on real estate service practice
e. Law on contracts and obligation
155. The relationship between the owner who repose confidence in the real estate broker, based on
trust and confidence is referred to as
a. Trust relationship
b. Trust and confidence relationship
c. Fiduciary relationship
d. Intimate relationship
e. Business relationship
156. A real broker obtained a listing for the sale of a lot of the owner. The authority of the broker
may be extinguished by the following, except:
a. Death of owner
b. Expiration of the authority
c. Withdrawal of the Buyer
d. Withdrawal of the Agent
e. Revocation by the owner
157. The following is not considered a step in the practice of real estate brokerage
a. Security prospects
b. Closing of Sale
c. Negotiation
d. Turnover of possession of property
e. Presentation and demonstration of property
158. An authority to sell given to a real estate broker to sell a vacant lot should contain the following
information except:
a. Name of principal
b. Terms and Condition of sale
c. Period of authority
d. Description of improvement
e. Holdover clause
159. The real estate broker obtained a listing from a client verbally. In this case, the listing can be
considered as

a.
b.
c.
d.
e.

Not valid
Void
Valid
Unenforceable
Useless

160. An open listing to sell real property means that

a. Anybody can sell the property
b. Only two brokers have the exclusive authority
c. Two or more brokers are authorized to offer the property for sale
d. More than five (5) brokers are authorized to negotiate the sale
e. Direct buyers only
161. An owner wants to lease out her house and lot in Ayala Alabang and she can give the real estate
broker any of the following types of authority, except:
a. Non-exclusive listing
b. Exclusive listing
c. Open listing
d. Exclusive right to sell
e. Exclusive agency
162. Mr. B owns a house and lot in Makati and wants to sell the house and lot at a price of
P10,000.000 net to the owner. How much will the real estate broker have to sell the property if
the capital gains tax and brokers commission of 3% shall be included in the final selling price.
a. P 10,000,000
b. P 10,600,000
c. P 10,300,000
d. P 10,900,000
e. P 10, 989,011
163. Mr. C sold a vacant parcel or residential land for the amount of P 2,500,000 and will shoulder
the capital gains tax, documentary stamps tax and brokers commission of 5%. What will be the
net amount that the owner will receive?
a. P 2,000,000
b. P 2,187,500
c. P 2,350,000
d. P 2,225,000
e. P 2,312,500
164. The real estate broker sold the property of Mr. House for P4,800,000 but Mr. House wanted a
net amount of P4,400,000. If the owner will shoulder the capital gains tax, how much will be the
amount left for the 5% commission of the real estate broker?

a.
b.
c.
d.
e.

P 240,000
P 225,000
P 225,600
P 220,000
P 112,000

165. A group of real estate brokers from the City of Manila gathered and met together and
exchanged properties for sale and wanted with each other. This arrangement is referred to as
a. Real estate association
b. Real estate property exchange
c. Multiple listing
d. Listing exchange
e. Listing association
166. Generally also referred to in real estate brokerage as a buyer who is willing and has the capacity
to buy the property
a. Preferred Client
b. Real estate buyer
c. Prospect
d. Suspect
e. Real estate property customer
167. In the ocular presentation and demonstration of a property being sold by a real estate broker,
the broker must point out to the buyer
a. The good of the property
b. The positive attributes and qualities of the property
c. The fact that it is not mortgaged
d. The title and tax declaration are free from all encumbrances
e. The property is updated in real estate tax payments
168. The most essential feature of earnest money paid by the buyer for the purchase of a
condominium unit is
a. It must be paid in cash
b. It must be at least 20% of the purchase price
c. It must be paid in managers check
d. It forms a part of the purchase price
e. It is distinct and separate from the purchase price.
169. It is a contract between the seller and buyer wherein the buyer reserves the right to buy the
property within a period of time and at a specified price
a. Option
b. Contract to sell

c. Deed of conditional sale

d. Memorandum Agreement of Sale
e. Right of first refusal
170. It is consideration paid for in the contract between the seller and buyer wherein the buyer
reserves the right to buy the property within a period of time at a specified price
a. Earnest money
b. Reservation deposit
c. Downpayment
d. Initial Payment
e. Option Money
171. The seller and buyer entrusted to a third party of the consideration in the contract of sale with
the bank to be released only to the seller upon fulfilment of certain conditions agreed upon
between the buyer and seller is referred to as.
a. Earnest Money
b. Reservation Deposit
c. Escrow
d. Safety Deposit
e. Option Money
172. For the purpose of escrow of the consideration in a sale of a raw land with the bank, the parties
to the escrow agreement must be
a. Seller
b. Buyer
c. Bank
d. Seller and buyer
e. Seller, Buyer and the Bank
173. For the purpose of escrow of the consideration in a sale of a raw land being sold by a real estate
brokers, the purchase price or part thereof san be deposited with any of the following, except:
a. Third party
b. Commercial Bank
c. Real estate Broker
d. Thrift Bank
e. Seller
174. A duly registered and licensed natural person who, for a professional fee, commission or other
valuable consideration, acts as an agent of a party in a real estate transaction to offer the sale
estate
a. Real estate middleman
b. Real estate broker

c. Real estate marketing company

d. Real estate brokerage corporation
175. Appraisal principle which holds that the value of property tends to be enhanced by association
with superior properties, is
a. Principle of infiltration
b. Principle of regression
c. Principle of progression
d. Principle of competition
176. The following are function of a real estate broker in real estate transaction, nut not:
a. Sale
b. Mortgage
c. Construction
d. Lease
177. A duly accredited natural person who performs service for, and in behalf of, a real estate broker
who is registered and licensed by the Professional Regulatory Board of Real Estate Service
a. Real estate property consultant
b. Real estate salesperson
c. Real estate sales agent
d. Real estate sales consultant
178. The study of current supply and demand conditions in a particular area for a specific type of
property is.
a. Real estate appraising
b. Cash flow analysis
c. Market data approach
d. Market analysis
179. Any person, natural or juridical, who is engaged in the trade of selling, buying, or leasing his own
real properties or interest therein, using his own funds and with the purpose of realizing profit as
defined under the RESA
a. Real estate broker
b. Real estate developer
c. Real estate dealer
d. Real estate builder
180. A method of property appraisal by estimating the fair market value of an improvement by
estimating present reproduction cost and deducting depreciation is:
a. Basic improvement approach
b. Cost approach

c. Income approach
d. Market date approach
181. A real broker performs his functions and receives compensation for the services rendered in the
form of
a. Salary
b. Professional fee
c. Profit
d. Gain
182. A real estate broker is required to obtain a license from the
a. Professional Regulatory Commission
b. Department of Trade and Industry
c. Housing Land Use and Regulatory Board
d. Professional Regulation Commission
183. Real estate as a profession refers to rendering of service for and on behalf of another, the sell,
lease, mortgage, exchange, on real estate matters, for a professional fee or
a. Valuable consideration
b. Profit
c. Professional salary
d. Valuable compensation
184. A kind of survey where the shape of the earth is taken into account in computing results is
known as
a. Plane survey
b. Geodetic survey
c. Topographic survey
d. Cadastral survey
185. The essential elements of real estate brokerage are, but not
a. Employment of the broker as an agent
b. There must be a written contract between the owner and broker
c. Functions to be performed by the broker must be specific
d. The services rendered by the broker are for a fee, commission or any other valuable
consideration
186. Refers to housing programs and projects covering houses and lots or home lots only undertaken
by the Government or the private sector for the underprivileged and homeless citizens pursuant
to RA 7279.
a. Socialized Housing
b. Low Cost Housing

c. Homeless Housing Program

d. Low Cost and Homeless housing
187. An essential attribute of a real estate broker is to have good working knowledge of the
following, but not:
a. Real estate economics
b. Laws affecting real estate
c. Real estate consultancy
d. Financing practice in real estate transaction
188. The ratio that expresses the relation between gross income and sales price of property is
a. Recapture rate
b. Effective gross income
c. Capitalization
d. Gross income multiplier
189. The essential attribute of tact and diplomacy of a real estate broker refers to skills in
a. Negotiation
b. Site tripping
c. Project presentation
d. Closing the sale
190. The owner or principal has the right to have full knowledge of
a. All facts and circumstances affecting the transaction
b. All facts about the personal circumstances of the broker
c. All facts about the experience of the real estate broker in selling
d. All facts about the personal circumstances of the buyer
191. The rational approach of allocating available land resources as equitably as possible among
competing user group is
a. Land assembly
b. Land use plan
c. On-site development
d. Urban renewal
192. The principal has the right to negotiate and close the deal himself without being under any
obligation to pay commission to the broker unless it is an
a. Exclusive listing
b. Exclusive right to sell
c. Open listing
d. Non-exclusive authority

193. The priority of a tenant to buy the land located is an urban reform area is known as:
a. Tenants possessory
b. Tenants incremental right
c. Tenants right of first refusal
d. Tenants retention right
194. A real estate broker has the following rights, except
a. To receive compensation for services rendered
b. To be informed of facts concerning the property listed with him
c. To be given ample time to complete the negotiations
d. To be paid only in money by the principal
195. Several houses valued at P1,000,000.00 and P2,000,000.00 were built in area where an existing
house valued at P800,000.00 is located. As a result, the value of the latter increased. The real
estate principle of value that applies to this situation is called the principle of:
a. Substitution
b. Improvement
c. Progression
d. Regression
196. The following are duties and responsibilities of a real estate broker, except
a. To be absolutely loyal to the principal
b. To inform the principal of all facts relevant to the transaction
c. To account for all the money entrusted to him
d. To protect the interests of the buyer
197. The principal is liable for all the acts of his agents such as the real estate broker which are
executed
a. Upon the own volition of the broker
b. Upon instruction of the buyer
c. Outside the scope of the authority
d. Within the scope of his authority
198. For a broker to be entitled to commission, he must find a buyer who will actually buy the
property
a. On the terms and conditions accepted by the owner
b. On cash payment only
c. Within fifteen days
d. On the terms and conditions imposed by the buyer

199. Where there is no mention of the commission due to the broker and his services were engaged
and subsequently a sale is made to buyer procured by the broker, the rate of commission may be
determined by
a. The schedule of commission in Metro Manila
b. The schedule of commission of the PRBRES
c. The established business practice
d. The established commissions of the real estate service organization
200. In real estate transactions, commission is due upon the
a. Perfection of the contract
b. Signing of the Deed of Sale
c. Taking possession by the buyer
d. Transfer of title to the buyer
201. Some of the conditions that the real estate broker must show to entitle the broker to
commission are, but not
a. That his services were contracted by the person from whom he seeks payment
b. That his effort is the procuring cause of the sale
c. That the buyer will pay in cash
d. That he was able to find a buyer who is ready, willing and able
202. Generally, the person who contracted the service of the broker in promoting the sale of his
property is bound for payment of commission and is the
a. Seller
b. Buyer
c. Representative of the buyer
d. Seller and buyer
203. This is a provision in a listing contract which entities the broker to commission even if the sale
were closed after the period of his authority, provided that the buyer was registered by the
broker with the seller during the period of authority
a. Safety clause
b. Safety holdover clause
c. Safety commission clause
d. Safety listing clause
204. In the absence of any stipulation to the contrary, the commission is payable in full
a. Upon the consummation of the contract
b. Upon perfection of the contract
c. Upon payment of the earnest money
d. Upon reservation

205. The sharing of commission between two people who are both real estate brokers shall be based
upon
a. Equal sharing
b. 60-40 in favour of the broker who brought the buyer
c. Agreement of the brokers
d. The owner of the property
206. It is always advised that when dealing with co-brokers that the sharing agreement, in order to
avoid disagreements and conflict in the sharing of commissions be
a. Be put in writing
b. Be clarified at the beginning
c. Be duly notarized
d. Be in front of at least two witnesses
207. It is a contract wherein a person binds himself to render some service or to do something in
representation of or on behalf of another, with the consent or authority of the latter
a. Contract of representation
b. Contract of Agency
c. Contract of Authority
d. Contract of service
208. The income approach in estimating the value of an investment property is an application of
a. Principle of Substitution
b. Principle of Progression
c. Principle of Contribution
d. Principle of Anticipation
209. The relation between one who reposes confidence in another who acts as his agent, based on
trust and confidence: as in the relationship of the broker and the owner is referred to as
a. Trust relationship
b. Fiduciary relationship
c. Confidence relationship
d. Trust and confidence relationship
210. The technical description in the TCT of real property can be readily plotted on a sheet of paper
by using the following data:
a. BLLM and the tie line
b. Bearing and tie line
c. Bearing and distance from lot points
d. Bearing and lot points
211. The essential elements of agency are the following, but not

a.
b.
c.
d.

Mutual consent of parties to established relationship

Object is the execution of a juridical act
Agent acts for himself
Agent acts within scope of authority

212. The following are modes of extinguishing agency, except

a. Expiration of period
b. Withdrawal of agent
c. Death of the buyer
d. Revocation
213. The contract of agency may be terminated under the following circumstances, except
a. Accomplishment of purpose
b. Revocation by the buyer
c. Death of the principal
d. Dissolution of firm which granted or accepted agency
214. The initial step that a real estate broker undertakes in real estate brokerage is
a. Securing listing
b. Procuring prospect
c. Presentation and demonstration
d. Negotiation
215. Refers to the authority given by the seller, buyer, lessor, lessee, owner, borrower or leader for
the broker to negotiate the sale, purchase, lease, mortgage or exchange of a real estate property
a. Owners authority
b. Listing
c. Authority to sell
d. Authority to buy
216. In a listing, the following contents may be found, but not
a. Name, address and signature of the principal
b. Name, address and signature of occupants
c. Description of the property
d. Description of improvement, if any
217. Mr. O gave an authority to sell to the real estate broker and may indicate the following in the
authority, except
a. Period and conditions of the authority
b. Amount of rent and deposit
c. Price and terms
d. Rate of commission

218. The best form of authority/listing that a real estate broker should get from the owner is
a. Verbal listing
b. Written listing
c. Written listing and notarized
d. Written listing with a witness
219. A verbal listing obtained by a real estate broker to lease the house of the owner is
a. Valid
b. Void
c. Without effect
d. No validity
220. A method of property appraisal by estimating the fair market value of an improvement by
estimating present reproduction cost and deducting depreciation is:
a. Basic improvement approach
b. Cost approach
c. Income approach
d. Market data approach
221. A listing to sell the land of the owner wherein two or more brokers are authorized to negotiate
the sale of the property is referred to as
a. Double listing
b. Multiple listing
c. Non-exclusive listing
d. Public listing
222. An authority obtained to be an exclusive broker but the broker will not be entitled to
commission if the owner himself sells the property is referred to as
a. Non-exclusive listing
b. Exclusive right to sell
c. Exclusive listing
d. Owners exclusive listing
223. Mr. B got a listing to be the exclusive broker where the broker is entitled to commission even if
the owner himself sells the property is referred to as
a. Non-exclusive listing
b. Exclusive right to sell
c. Exclusive listing
d. Non-multiple listing
224. As to function, the contract of agency of the real estate broker may involve the following, except
a. Sales agency

b. Leases agency
c. Exchange agency
d. General agency
225. It is an authority given by a borrower for the broker to secure financing, or an authority given by
a financing firm for the broker to procure borrowers.
a. Mortgage agency
b. Loan agency
c. Creditor agency
d. Bank agency
226. The buyer gave an authority to a broker to look for a property for sale and negotiate the
purchase of said property and is referred to as
a. Purchase agency
b. Sale agency
c. Acquisition agency
d. Negotiation agency
227. A listing wherein the broker will depend on the over price over the amount desired by the seller
is referred to as
a. Net listing
b. Overprice listing
c. Open listing
d. Net overprice listing
228. One wherein the fee of the exclusive broker is stipulated as a percentage of the total
consideration/ selling price agreed is referred to as what kind of listing
a. Net listing
b. Percentage listing
c. Exclusive listing
d. Listing overprice
229. An appraisal technique in which comparative estimate are made between prices paid in actual
transactions and the current listings:
a. Cost approach
b. Income approach
c. Market approach
d. Economic approach
230. A real estate broker may obtain his listing for a condominium unit from the following, except
a. Newspaper classified ads and advertisements
b. Internet search (websites)

c. Physical search / ocular search in a subdivision

d. Co-brokers, real estate salesmen/agent
231. This is a cooperative arrangement among real estate brokers whereby properties for sale or
wanted by a broker is circularized to the others is referred to ass
a. Cooperative listing
b. Public listing
c. Multiple listing
d. Public multiple listing
232. Refers to one who has both no willingness and capacity to buy the property
a. Suspect
b. Prospect
c. Prospective buyer
d. Interested buyer
233. When the loan is fully amortized by equal monthly payments, the amount applied to the
principal:
a. Decreases while interest payment increases
b. Increases while interest decreases
c. Increase by constant amount
d. None of the above
234. A buyer of a house and lot wanted to buy the property and had the capacity to borrow money
,from the bank to pay the balance of the purchase price. The buyer shall be considered in real
estate service practice as a
a. Suspect
b. Prospect
c. Potential purchaser
d. Bank loan buyer
235. It is the process of showing the property and pointing out its physical attributes, features and
qualities and other benefits and advantages as to satisfy the needs of the buyer
a. Tripping
b. Site inspection
c. Presentation and demonstration
d. Negotiation
236. The principle of value which states that the value of a property tends to be enhanced where
there is reasonable homogeneity is use
a. Principle of highest and best use
b. Principle of conformity

c. Principle of increasing returns

d. Principle of progression
237. The stage in brokerage wherein the broker reconciles the opposing views of the parties to the
transaction- the buyer and the seller as to price and terms of the sale is referred to as
a. Mutual agreement
b. Negotiations
c. Bargaining
d. Reconciliation of terms
238. The following are the items normally covered in the negotiations between the seller and the
buyer in the purchase of a house and lot, but not
a. Price and terms
b. Expenses for execution and registration of the sale
c. Payment of condominium dues
d. Real estate taxes and other expenses
239. The step in the real estate brokerage process where the minds of the parties meet and the
buyer offer of price, terms and other conditions finally become acceptable to the seller, or viceversa is referred to as
a. Final agreement
b. Closing
c. Finalization of sale
d. Deed of absolute sale
240. It is referred to as the amount accompanying an offer to purchase to show the good faith or
genuine desire of the buyer to purchase the property of the private owner
a. Option money
b. Reservation money
c. Earnest money
d. Deposit
241. In case the buyer pays an earnest money for the purchase of the lot on a deferred term, the
earnest money shall
a. Form part of the reservation paid
b. Form part of the purchase price
c. Form part of the instalment payment
d. Form part of the final payment
242. It is a contract between the seller and the buyer wherein the former, for a consideration binds
himself to reserve the property for the latter to purchase within a stipulated of time and at a
specific price.

a.
b.
c.
d.

Contract to sell
Option contract
Contract to buy
Intent to buy

243. This is paid by a lessee to the lessor to reserve the land for the lessee to decide whether to lease
the land or not within a period of time at an agreed rent
a. Deposit rental
b. Option money
c. Reservation money
d. Earnest money
244. In the contract over the purchase of the property this amount is separate and distinct from the
purchase price
a. Option money
b. Earnest money
c. Reservation deposit
d. Reservation money
245. One of the reasons a buyer will initially give an option money to buy a parcel of land on cash is
a. Buyer would still like to study and decide whether to actually but the property or not
b. Buyer does not have money to buy the property
c. Buyer wants to buy the property on instalment
d. Buyer prefers to rent to own the property
246. It is an agreement wherein the consideration of a contract, or a portion thereof, is entrusted to
a third party known as escrow agent who is authorized to release payment upon fulfilment or
performance of some acts or conditions
a. Third party agreement
b. Deposit arrangement
c. Escrow agreement
d. Conditional payment agreement
247. Some of the reason in entering into an escrow agreement are as follows, except
a. When the property is occupied by squatters and the seller assumes the responsibility to eject
them
b. When the seller requests for time to vacate and to ensure delivery within the agreed period
c. When the buyer would need time before occupying the property
d. When title to the property has certain encumbrances which the seller has undertaken to
cancel

248. In general, when there are certain conditions which will still have to be performed by the seller
and the buyer would like to ensure that these conditions are fulfilled before full payment and the
seller, the amount to be paid shall
a. Be put in a bank account of the buyer
b. Be put in escrow
c. Be deposited in time deposit
d. Be held by the real estate broker
249. Real estate economics is the application of economic techniques to real estate markets. It tries
to describe, explain, and predict patterns of the following, but not
a. Supply
b. Demand
c. Desire
d. Price
250. Ain general, this means the effect of one aspect of the economy with the other economic
activities.
a. Economic effect
b. General economic effect
c. Multiplier effect
d. Economy aspect effect
251. The multiplier effect of real estate in the Philippine economy as per the government plan is said
to be in the estimated amount of
a. 1:10
b. 1:15
c. 1:20
d. 1:16
252. A Certificate certifying that, based on the submitted project description, the project is not
covered by the EIS System and is not required to secure an environmental compliance certificate
or ECC
a. Certificate of Non-Coverage
b. Certificate of Exemption
c. Certificate of Compliance
d. Certificate of Environment Compliance
253. The housing or real sector provides and sets of a domino effect on other economic activities
which can be referred to
a. Housing effect
b. Domino effect
c. Multiplier effect of real estate

d. Multiplier effect of housing

254. It is basically a result of the interplay of supply and demand of a certain product, such as real
estate housing
a. Multiplier effect
b. Price
c. Demand
d. Supply
255. In the case where there are more than sellers of lots in a subdivision, then it is considered a
a. Oversupply of buyer
b. Sellers market
c. Buyers market
d. Open market
256. In the even there are many real properties available or more sellers than there would be a
demand from the buyers, it is normally referred to as a
a. Sellers market
b. Sellers market supply
c. Buyers market
d. Open market
257. Rea estate financing involves the acquisition of property through loan financing sources, which
may be sourced from the following, except:
a. Borrowed Funds from Relatives/ Friends
b. Discounted cash payment
c. Bank Financing
d. Assumption of Loan/Mortgages
258. To compute monthly amortization on the instalment payments for the purchase of a lot, the
formula to be used is
a. Interest multiplied by the loan amount
b. Amount to be financed multiplied by the amortization factor
c. Contract price multiplied by the amortization factor
d. No. of years payment multiplied by the amortization factor
259. The following are modes of acquiring lands for purposes of Urban Development and Housing
Act, except
a. Community mortgage
b. Negotiated purchase
c. Land swapping
d. Foreclosure

260. The amortization factor to be used in the computation of the monthly amortization for the
purchase of a house and lot shall be
a. Based on the value of the house
b. Based on the number of years and interest charges
c. Based on the interest charged
d. Based on the loan amount and interest
261. The following are determinants of value kin appraisal of realty, except:
a. Substitution
b. Demand
c. Scarcity
d. Utility
262. In order to get the amount to be financed, the computation to be used shall be
a. Total contract price minus the reservation deposit
b. Total contract price minus the downpayment
c. Total contract price multiplied by the interest rate
d. Total contract price divided by the no. of years instalment
263. It is referred to as a financing source which will be provided by the developer of the subdivision
a. Bank financing
b. Buyers financing
c. In-house financing
d. Pag-ibig financing
264. The principle holds that when two or more commodities with substantially the same utility are
available, the one with the lowest price receives the greatest demands and widest distribution
a. Principle of Contribution
b. Principle of Highest and Best Use
c. Principle of Substitution
d. Principle of Competition
265. In order to get the amount being financed or loaned by the buyer of the lot, the formula to be
used is
a. Principal amount multiplied by the amortization factor
b. Amortization factor multiplied by the total contract price
c. Monthly amortization divided by the amortization factor
d. Total contract price multiplied by the amortization factor
266. A formula that may be used to get the amortization factor in case of instalment is
a. Monthly amortization divided by the amount financed
b. No. of years payment mul;tiplied by the amount finaced

c. The amount financed divided by the no. of months payment

d. Monthly amortization divided by the total contract price
267. Ain case where there is a substantial amount payable at the end of every year of instalment, the
amount paid at the end of each year may be referred to as
a. Final payment
b. Balloon payment
c. Yearly payment
d. Year end payment
268. The income approach to value is an application of the principle of:
a. Highest and best use
b. Substitution
c. Progression
d. Anticipation
269. The total contract price is P5,000,000 for the sale of the house and lot but the buyer will pay a
downpayment of 20%, but already paid a reservation deposit of P20,000. How much will the
buyer still pay for the downpayment
a. P 1,000,000.00
b. P 980,000.00
c. P 4,000,000.00
d. P 4,020,000.00
270. A parcel of land was bought on instalment and the buyer was to pay the balance in 3 years
without interest. If the lands total contract price is P 6,000,000 and the buyer paid a reservation
deposit of P5,000 and thereafter paid the full downpayment of 25%, how much will the buyer
pay monthly for the 3 years
a. P 166,667
b. P 125,000
c. P 155,528
d. P 166,528
271. A land survey always uses a fixed point of reference, it could be any of the following, except:
a. City Boundary Monument
b. Bureau of Lands Location Monument
c. Tie Line
d. Bureau of Land Boundary Monument
272. Spouse who were married after the affectivity of the Family code without any pre-nuptial
agreement shall be governed by:
a. Conjugal partnership of gains

b.
c.
d.
e.

Partial community of property

Partnership
Absolute separation of property
Absolute community of property

273. The constitute negligence or failure to disclose or ascertain to any person with whom person a
broker is dealing relative to the property and within his knowledge at the time of the transaction,
what matters must be broker disclose?
a. Previous owner of property or history of title
b. Fair market value of property
c. Location, topography and shape of property
d. Material fact, data or information
e. Whether property is updated in tax payments
274. Mr. Villanueva inherited a piece of land when he was still single. Then he got married on
October 1, 2000 without a marriage settlement. What is the nature of the property not that he is
married?
a. Exclusive property
b. Community property
c. Conjugal property
d. Separate property
e. Common property
275. In the phrase Save in cases of hereditary succession in Sec. 7, Art. XII (national Economy and
patrimony), Phil. Charter, what kind of transferee of private land does it refer to?
a. The national government
b. An heir under Phil. Law on succession and inheritance
c. A humanitarian institution
d. The estate of the deceased
e. A charitable, religious and education institution
276. The scope of brokerage are as follows, but not:
a. Authority to look for a property
b. Engagement to look for a buyer
c. Procurement of insurance for properties secured by real estate
d. Procurement of loans secured by real estate
e. procurement of tenants for rental properties
277. What land of the public domain is alienable and disposable?
a. Forest and timber lands
b. National packs
c. Forfeited/escheated lands

d. Abandoned private lands

e. Agricultural land
278. A stipulation in an authority to sell that entitles the broker to a commission even beyond the
period of his authority if he has registered his buyer to his principal before the expiry date of his
authority.
a. Open, non-exclusive listing
b. Authority to overprice
c. Hold over clause
d. Exclusive agency agreement
e. First come, first served rule
279. To assure faithful and honest discharge of duties of a real estate broker, he is required to secure
the following , EXCEPT
a. Bond
b. Insurance
c. Police clearance
d. Barangay clearance
e. NBI clearance
280. R.A. 9225 (Citizenship Retention and Reacquisition Act) dated August 29, 2003, provides that
natural born citizen of the Phils. Who have lost their citizenship by reason of their naturalization
as citizen of a foreign country are deemed to have reacquired Philippine citizenship (who shall
thereafter enjoy full civil and political rights) after compliance with what process?
a. Submission of an affidavit of good faith
b. Taking an oath of allegiance
c. Submitting DOJ with sworn statement of five (5) credible, Filipino guarantors
d. Deposit of PI million with the bid
281. Any of these acts may be a ground for revocation of license, EXCEPT:
a. Misappropriation
b. Misrepresentation
c. Paying and receiving rebate
d. Non-payment of association dues
e. Misleading ads
282. A buyer on instalment who has paid at least two years of instalments, under Republic Act No.
6552, is entitled to a refund of 50% of total payment effected during the first five years and an
additional ___________________ every year but not to exceed 90% of total payment made.
a. Five (5%) percent
b. Fifty (50%) percent
c. Twenty (20%) percent

d. Thirty (30%) percent

e. Ten (10%) percent
283. The zonal value of a property can be obtained from:
a. Bureau of Internal Revenue
b. Registry of Deeds
c. Office of the Sheriff
d. Assessors, Office
e. Land Registration Authority
284. The bundle of rights theory also means:
a. Rights of land beneficiary
b. Rights in fee simple
c. Rights of a vendee-a-retro
d. Rights of buyer
e. Rights of vendor
285. A real estate mortgage that cover several properties is called:
a. Closed mortgage
b. Conventional mortgage
c. Blanket mortgage
d. Equitable mortgage
e. Open mortgage
286. Husband and wife can not sell property to each other except when a separation of property is
agreed upon in the ante-nuptial contract and,
a. When their property relationship is one of absolute community of property
b. When one of the spouses is still a minor
c. When there is a pending annulment of their marriage
d. When one of the spouse is accused of infidelity
e. When there is a judicial separation of property
287. A contract which is merely an executor contract or a mere promise to sell with no transfer of
ownership.
a. Contract of sale
b. Conditional contract of sale
c. Deed of sale with Parto de Retro
d. Contract of sell
e. Deed of absolute sale
288. The inherent rights of the state that restricts property rights are as follows, except
a. Eminent Domain

b.
c.
d.
e.

Taxation
Escheat
Expropriation
Police Power

289. Right to foreclosure of real estate mortgage prescribes in

a. 1 year
b. 5 years
c. 10 years
d. 12 years
e. 3 years
290. Under RA 891 , the maximum redemption period after extrajudicial foreclosure of mortgage
executed by a corporation in favour of a bank is:
a. 9 months
b. 18 months
c. 3 months
d. 6 months
e. 12 months
291. The contract of lease shall be binding even on third parties if the contract of lease is
a. Recorded with the Civil Registry
b. Duly notarized
c. Recorded in the Registry of Property
d. In writing and duly notarized
e. In writing
292. On a Pacto de Recto contract of sale which there is no stipulation of the period to which the
vendor shall have the right to buy back or redeem of the property. The period of redemption
shall be:
a. Two (2) years
b. Four (4) years
c. Eight (8) years
d. Sic (6) years
e. Ten (10) years
293. The act of the broker who is instrumental in effecting the meeting of minds between the seller
and the buyer as to price and terms and is one of the requisites for entitlement to commission.
a. Procuring cause
b. Acceptance of earnest money
c. Conformity to listing authority
d. Exclusive right to sell

e. Hold-over clause
294. A right given for a consideration to purchase or lease a property upon specified time.
a. Bill
b. Earnest Money
c. Plus Factor
d. Option
e. Time Frame
295. What is a prospect?
a. A person who has the capacity but without the willingness
b. A person who has the interest to buy in the future
c. A person who has the willingness but does not have the capacity
d. A person who is in need and can afford to buy
e. A person who is willing to buy but not immediately available
296. The following are the requirements for the entitlement of a commission except
a. Procurement of a ready, willing and able buyer
b. The broker must be a licensed real estate appraiser
c. Authority from the principal
d. Broker closed the sale at terms, price and conditions authorized by the principal
e. Procuring cause for the sale
297. a kind of possession of property that is actual, continuous adversarial, visible and is required as
an element of prescription
a. adverse possession
b. possession physical and public
c. adverse claim
d. possession without claim of title
e. possession in good faith
298. In his dry seal, letterhead, advertisement or announcements, the real estate broker must
indicate his
a. personal circumstances
b. email address
c. provincial address
d. fax number
e. license number
299. Which of the following lands of the public may be alienated or disposed of by the government:
a. Forest
b. National Parks

c. Timberland
d. Agricultural
e. Mineral
300. The following are lands of the public domains, except
a. Forest
b. National Parks
c. Commercial
d. Agricultural
e. Mineral
301. In case of a sale of land, the Register of Deeds will note int the original and the owners
duplicate of grantors certificate and shall be stamped as follows:
a. Transferred
b. Sold
c. Cancelled
d. Supersede by