Real Estate Brokers’ Reviewer 2015

Examination Questionnaires

RBR REAL ESTATE BROKERS’ EXAMINATIONS REVIEWER

1. 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. partial community of property
C. partnership
D. absolute separation of property
E. absolute community of property

2. An adverse claim lapses after how many days from annotation in the
certificate of land title?

A. 100 days
B. 30 days
C. 60 days
D. 120 days
E. 50 days

3. In case of sale of agricultural lands not exceeding five (5) hectares, aside
from clearance from DAR, buyer must also submit what document?

A. Undertaking to surrender land in excess of retention limits

B. Affidavit of compliance with CARP
C. Affidavit of total or aggregate landholding
D. Certification from DAR
E. Affidavit of waiver

4. In general, a mortgagor who mortgaged his real property and later was
foreclosed extrajudicial and sold at public auction may redeem the
property within the period of :

A. Ninety (90) days from date of auction sale

B. One (1) year from registration of certificate of sale
C. One (1) year from date of auction sale
D. One (1) year from registration of the mortgage contract
E. One (1) month from date of auction sale

5. To constitute negligence or failure of 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 the broker
disclose?

A. Previous owner of property or history of title

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 Real Estate Brokers’ Reviewer 2015
Examination Questionnaires

B. Fair Market Value of property

C. Location, topography and shape of property
D. Material fact data or information
E. Whether property us updated in tax payments

6. Among the listed land classifications, which is devoted principal for profit?

A. Residential
B. Mineral
C. Agricultural
D. Industrial
E. Commercial

7. 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 now that he is married?

A. Exclusive property D. Separate property

B. Community property E. Common property
C. Conjugal property

8. For the rule on conflict of interest to apply to a real estate broker selling a
property owned by a relative, within what civil degree of relation is
involved?

A. second D. ist degree

B. fifth E. third
C. fourth

9. A provision in a financing agreement which renders the remaining

principal balance of the loan immediately due and payable upon default in
any stipulated installment.

A. Escalation clause D. Defeasance clause

B. Acceleration clause E. Break-even point
C. Open-end loan provision

10. What is legitimate?

A. An inherited property
B. An acknowledged heir
C. Reserved property for compulsory heirs
D. Child born out or wedlock
E. A process of legitimazation

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Examination Questionnaires

11. 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 state of deceased
E. A charitable, religious and education institution

12. 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 as secured by real
estate
D. procurement of loans secured by real estate
E. procurement of tenants for rental properties

13. What land if the public domain is alienable and disposable?

A. Forest and timbers lands

B. National parks
C. Forfeited/escheated lands
D. Abandoned private lands
E. Agricultural land

14. A stipulation in an authority to sell that entitles the broker to a commission

even beyond the period of his authority if he had 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 comer, first served” rule

15. A licensed Real Estate Broker is qualified to be appointed as member of

the Broker’s Licensure Examination Committee provided he/she has been
a licensed Real Estate Broker :

A. Twenty year D. Three years

B. Five years E. Ten years

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Examination Questionnaires

C. Fifteen years

16. To assure faithful and honest discharge of duties of a real estate broker
renewal of his license, he is required to secure the following, EXCEPT:

A. Bond D. Barangay clearance

B. Insurance E. NBI clearance
C. Police clearance

17. R.A. 9225 (Citizenship Retention and Reacquisition Act) dated August 29,
2003, provides that natural born citizens of the Phils. who have lost their
citizenship by reason of their naturalization as citizens 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 Php 1 Million with the bid
E. “First comer, first served” rule

18. What are the minimum CEP units required in order to renew you Real
Estate Broker License as scheduled?

A. 18 units D. 12 units
B. 15 units per year E. 16 units
C. 20 units
*45 units

19. Any of these acts shall be the grounds for revocation of license, EXCEPT :

A. Misappropriation
B. Misrepresentation
C. Paying and receiving rebate
D. Non-payment of dues
E. Misleading ads

20. Most important document to be checked before buying a subdivision lot.

A. Map
B. Subdivision plan
C. Development permit
D. License to sell

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Examination Questionnaires

E. Bureau of Land’s Approval

21. Development Permit issued by a local government unit for a subdivision

project is valid for :

A. three years D. one year

B. four years E. five years
C. two years

22. The right or pre-emption or right of 1st refusal under PD 1517 (Urban Land
Reform) is exercisable by a legitimate tenant in urban land if he has
occupied the land for :

A. 6 years
B. Over 30 years
C. not less that 1 year
D. at least 10 years
E. 5 years continuous possession

23. A method of property appraisal by estimating the fair market value of an

improvement by estimating present re reproduction cost and deducting
depreciation.

A. Basic appraisal approach

B. Reproduction cost approach
C. Cost approach
D. Income approach
E. Marketing data approach

24. A buyer on installment who has paid at least two years of installments,
under Republic Act No. 6552, is entitled to a refund of 50% of total
payments effected during the first five years and an additional _____
every year but not exceed 90% of total payments made.

A. five (5%) percent D. thirty (30%) percent

B. fifty (50%) percent E. ten (10%) percent
C. twenty (20%) percent

25. The retention unit of landowners under the CARP is :

A. 5 has. for the landowners and 3 has. per child irrespective of age
B. 5 has. for the landowners and 3 has. per child who must be at
least 15 years old

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Examination Questionnaires

C. 5 has. for landowners and 5 has. per child whether or not they till
the land or manage the farm
D. 5 has. for the landowners and 3 has. per child who must at least
be 15 years old and is actually tilling the land or managing the
farm
E. 5 has. for the landowners and 3 has. per child who must not be
over 21 years old

26. A map that shows the location of the property, indicating known land
marks such as church, bridge, school, commercial establishment and
name of roadways leading to the property.

A. Location map D. Subdivision map

B. Lot plan E. Contour map
C. Resurvey map

27. Condominium unit owners are mandated to form a :

A. cooperative D. homeowner association

B. charitable organization E. social club
C. condominium corporation

28. Enumerated are the advantages of Condominium Concept, which does

not belong:

A. Easy to maintain
B. With TCT as proof of ownership
C. Enhances affordability
D. Economy in land space
E. Wider market for it can be sold to foreigner subject to limitation

29. Traditional ownership is evidenced by:

A. Master Deed D. OCT

B. CCT E. Tax Declaration
C. TCT

30. It is a kind of surveying in which photographs are used to determine

configuration of land, man-made and natural features.

A. Hydrographic survey D. Photogrammetry survey

B. Aerial survey E. Cadastral survey
C. Relocation survey

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Examination Questionnaires

31. An act to provide protection to buyers o subdivision and condominium

projects.

A. PD 1185 D. PD 1586
B. PD 957 E. PD 1096
C. PD 1216

32. A subdivision scheme where the resulting blocks are more or less
rectangular in shape.

A. Gridiron subdivision D. Simple subdivision

B. Complex subdivision E. A free passage street
C. Open market subdivision
33. A document issued by the DENR certifying that the proposed project will
NOT case significant environmental impact.

A. Environment ecological approval

B. Environment impact statement
C. Environment positive certificate
D. Environment compliance certificate
E. Environment impact assessment

34. What is the cash or payment in kind given by landowner or developer to

tenants farm workers or bonafide occupants to be affected by the DAR
conversion?

A. Ejectment compensation fund

B. Tenant share remuneration
C. Disturbance compensation
D. Conversion assistance fund
E. Farm worker’s indemnity assistance

35. It is a factor that triggers varied effects in real estate such as business
activities, new income opportunities, environment and an enhanced
market for construction materials.

A. Highest and best use theory

B. Foreclosures and consolidation
C. Multiplier effect of real estate
D. Forces that create value
E. Competition and conformity

36. Rate of VAT beginning of February 1, 2006 :

A. 12% of selling price before VAT

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 Real Estate Brokers’ Reviewer 2015
Examination Questionnaires

B. 10% of selling price before VAT

C. 15% of selling price before VAT
D. 8% of selling price before VAT
E. 11% of selling price before VAT

37. 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

38. The creditable withholding tax in the sale of a real estate dealer of a lot
priced at Php 220,000 is :

A. 1.5% D. 2.5%
B. 7.5% E. 5.0%
C. 3.0%
*unless it is sold as part of HLURB-registered socialized housing
project
39. Which price of a house and lot package sold by a dealer is subject to E-
VAT?

A. Php 1,000,000 D. Php 1,500,000

B. Php 2,500,000 E. Php 3,000,000
C. Php 2,000,000
*none. Threshold is P3,199,200 for house and lot and
P1,919,500 for lot only

40. The sale and transfer of title from a real estate dealer to a buyer of a
house and lot at Php 2,000,000.00 is subject to the following EXCEPT :

A. credible withholding tax

B. transfer and registration fees
C. capital gains tax
D. documentary stamp

41. The exemption on the payment of capital gains to be valid, within how
many months from the sale or disposition of a residential unit is allowed in
which the proceeds is to be used in acquiring or construction of a new
principal residence?

A. 9 months D. 18 months
B. 12 months E. 24 months

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Examination Questionnaires

C. 36 months

42. “Right of way” is a kind of :

A. easement and servitude D. servient estate

B. accretion E. dominant estate
C. setback

43. The “bundle of rights theory” also means :

A. rights of land beneficiary

B. rights of fee simple
C. rights of vendee-a-retro
D. rights of buyer
E. rights of vendor

44. In Philippine Laws, the equivalent of real estate is :

A. personality D. land and hereditiaments

B. chattel E. immovable property
C. realty

45. A real estate mortgage that cover several properties is called :

A. Closed mortgage D. Equitable mortgage

B. Convetional mortgage E. Open mortgage
C. Blanket mortgage

46. A term that refers to reservation or right to buy which is separate from
purchase price.

A. Option D. Escrow
B. Earnest E. Full downpayment
C. Partial payment

47. The document that grants authority to any registered owner/developer to

sell lots or units within an approved subdivision or condominium project
and providing for the duties and responsibilities of said owner/developer :

A. Location Clearance
B. Contract to Sell
C. Certificate of Registration
D. License to Sell
E. Town Plan

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Examination Questionnaires

48. 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 spouses is accused of infidelity
E. When there is a judicial separation of property

49. Survey symbols that represents the subdivision survey by private geodetic
engineer

A. Pcs D. Psd
B. hd E. Bsd
C. Pcn

50. A contract which is merely an executory contract or a mere premise to sell

with no transfer of ownership.

A. Contract of sale
B. Conditional contract of sale
C. Deed of sale with “Pacto de Retro”
D. Contract to sell
E. Deed of absolute sale

51. The technical description in the TCT of real property can be readily plotted
on a sheet of paper by using the following data:

A. Bearing and lots point

B. Bearing and tie line
C. BLLM and lots point
D. Contract to sell
E. Deed of absolute sale

52. Registration of a mortgage covering a subdivision project can only be

effected when the deed is accompanied by a permit to mortgage issued by
:

A. National Home Mortgage Finance Corporation

B. National Housing Authority
C. Home Guarantee Corporation
D. Housing and Urban Development Coordinating Council
E. Housing and Land Use Regulatory Board

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Examination Questionnaires

53. Special Power of attorney executed abroad must be authenticated by any

of the following, EXCEPT :

A. OWWA
B. Consul, Vice Consul or Consular agent
C. Secretary of Legation
D. Philippine Ambassador
E. Charge d’ Affairs

54. Capital gains tax is payable within thirty (30) from what date?

A. Upon payment of transfer tax

B. Upon cancellation of old tact
C. Upon transfer of the title by RD
D. Notarization of deed of sale
E. Upon receipt of new title by owner

55. The inherent rights of the states that restricts property rights, except :

A. Eminent Domain D. Expropriation

B. Taxation E. Police Power
C. Escheat

56. Right to foreclosure of real estate mortgage prescribed in:

A. 1 year D. 12 years
B. 5 years E. 3 years
C. 10 years

57. Under RA 891, the maximum redemption period after extra judicial
foreclosure of a mortgage executed by a corporation in favor of a bank is :

A. 9 months D. 6 months
B. 18 months E. 12 months
C. 3 months

58. 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

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Examination Questionnaires

59. On a Pacto de Retro 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 D. six (6) years

B. four (4) years E. ten (10) years
C. eight (8) years

60. Which among the five (5) functions is devolved to the LGU by RA 7160 or
the local government code?

A. Adjudication of subdivision related complaints

B. Issuance of license to sell
C. Revocation of license of developers
D. Issuance of approval of subdivision plants to LGU subject to
National Laws and Standards
E. Approval of the Master deed of condominium projects

61. Patrimonial property of the state is that which it owns in what capacity.

A. Sovereign D. Stewarship
B. Ancestral E. Public
C. Private

62. It is the lack of desirability in lay-out, and design as compared with a

property designed to serve the same function.

A. Regression in value D. Economic obsolescence

B. Equity investment E. Functional obsolescence
C. Surplus productivity
63. An annotation on the Certificate of Title that refers to the right granted to a
property to have access to a public road to an adjoining land covered by
the title :

A. Mortgage
B. Notice of Lis Pendens
C. Lease (s)
D. Writ of Preliminary Attachment
E. Easement or Right-of-Way

64. Mr. Iggy Arroyo executed a Special Power of Attorney to Ms. Grace Ibuna
to sell his land located in Baguio City but Ms. Grace Ibuna, his attorney-
in-fact, did not sign the Special Power of Attorney.

A. Void D. Non-Existent

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Examination Questionnaires

B. Valid E. Unenforceable
C. Voidable

65. If a deceased owner of a land died in estate without any debt or obligation,
the document to be executed to transfer title to the sole heir is :

A. Deed of Conveyance
B. Affidavit of Adjudication
C. Extrajudicial Settlement of Estate
D. Transfer of Rights
E. Deed of Donation

66. An annotation on the Certificate of Title that refers to the limitation on the
use of the lot, such as allowable utilization, building-lot ration, prohibition
against further subdivision of the lot, kind of building and maximum height
:
A. Lease (s)
B. Mortgage
C. Notice of Lis Pendens
D. Writ of Preliminary Attachment
E. Deed of Restrictions

67. The difference between contract price and loanable amount is :

A. Amortization D. Acceleration clause

B. Buyer’s equity E. Buyer’s full payment
C. Balloon payment

68. In case of sale of real property paid under deferred payment basis, the
documentary stamp tax shall accrue upon :

A. Execution of deed of Absolute Sale

B. Notarization of transfer document
C. Payment of the Option Money
D. Payment of the Full amount
E. Execution of Contract to sell

69. The administrative reconstitution under Republic Act No. 6732 of lost or
destroyed certificates in the Registry of Deeds may be availed when the
number of certificates lost or destroyed is at least ____ of all titles in the
Registry.

A. 40% D. 50%
B. 25% E. 30%
C. 10%

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Examination Questionnaires

70. An act strengthening and amending some provision of the

Comprehensive Agrarian Reform Law.

A. RA 6657 D. RA 9225
B. RA 7279 E. RA 6552
C. RA 9700

71. The difference between contract price and loanable amount is :

A. Amortization D. Acceleration clause

B. Buyer’s equity E. Buyer’s full payment
C. Balloon payment

72. In case of sale of real property paid under deferred payment basis, the
documentary stamp tax shall accrue upon :

A. Execution of deed of Absolute Sale

B. Notarization of transfer document
C. Payment of the Option Money
D. Payment of the Full amount
E. Execution of Contract to sell

73. The administrative reconstitution under Republic Act No. 6732 of lost or
destroyed certificates in the Registry of Deeds may be availed when the
number of certificates lost or destroyed is at least ____ of all times in the
Registry.

A. 40% D. 50%
B. 25% E. 30%
C. 10%

74. 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

75. Which type of broker is accreditation that clearly states the promotion and
selling of projects by a developer on an exclusive arrangement?

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A. Exchange Agency D. Purchase Agency

B. Procurement Agency E. Listing Agency
C. Exclusive Agency

76. A contract of sale whereby part of the purchase price is paid upon
execution of the contract and the balance to be paid within a stipulated
period and the property is mortgaged back to the vendee to secure the
payment of the balance :

A. Deed of sale with usufruct

B. Deed of sale with assumption or mortgage
C. Deed of sale with warranty of payment of balance
D. Deed of sale with mortgage
E. Deed of sale with “Pacto De Retro”

77. Registration of a contract of sale in the registry of deeds is not an element

of sale because :

A. It is dispensable to the contract

B. It is a post-operative act to a contract
C. It is merely confirms not confers any new right
D. It is only a revenue generating requirement
E. It is a mere formality

78. A sale cannot be extinguished by :

A. Transfer of residence of principal or agent

B. Expiration of the authority
C. Revocation by the principal of the agency
D. Death, insanity, civil interdiction or insolvency of principal or agent
E. Accomplishment of the purpose

79. A right given for a consideration to purchase or lease a property upon

specified time.

A. Bill D. Option
B. Earnest E. Time Frame
C. Plus Factor

80. An owner whose land abuts a river

A. Patrimonia owner D. Accession owner

B. Land Sub-surface owner E. Seashore owner

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C. Riparian owner

81. 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 not immediately available

82. What is the minimum size of the major subdivision roads?

A. 8 meters
B. 10 meters
C. 12 meters
D. 15 meters
E. 18 meters

83. 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

84. If a person died leaving a will, what is that special court proceedings that
must be instituted to determine the validity of the testamentary disposition
of the deceased?

A. Probate proceedings
B. Reconstitution of land title
C. Petition to remove cloud on title
D. Petition for partition of property
E. Petition to quiet title

85. Under the Code of Ethics, the following is considered ethical,

A. Negotiate a property listed directly with the owner if the listing

broker goes out of town for a few days and cannot be contracted
B. Should cooperate with other brokers on property listed provided
they are members of any national real estate broker’s association

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Examination Questionnaires

C. Use the services of the salesman of another broker provided the

salesman is paid the agreed upon commission
D. Willingly share with other brokers the lessons from his experience
and study
E. Inform and criticize among fellow brokers another broker who is
not handling the sale property

86. Section 6 of Article 1. – Declaration of Principles of the Code of Ethics for

Realty Service Practitioners clearly states the Golden Rule which says:

A. “Treat others as you want them to be treated”

B. “Do not do unto others what you want others do to you”
C. “Do unto others what you do not want others do unto you”
D. “Treat others the same as what others think they should be
treated”
E. “Treat others as you like them to treat you”

87. A listing currently listed with a real estate broker and obtained and
acquired by another broker must not be solicited or obtained by said
broker unless :

A. The authority of the listing broker is non-exclusive

B. The authority of the listing broker has expired
C. The listing broker has not returned the call or text messages of
the other broker for at least one week
D. The authority of the listing broker has been evoked
E. The owner, without solicitation from the new broker, offers to list
the same with the new broker after the authority of the listing
broker ha expires or revoked.

88. Change from one (1) classification or use of the land property to another

A. Land reclassification D. Land Expropriation

B. Land Re-use order E. Land Reformatting
C. Land conversion

89. Standard classification of Subdivisions according to uses are the following,

except,
A. Residential intended for residential use
B. Farm or agricultural intended for weekend farmers
C. Rawland intended for Development
D. Commercial intended for business establishments

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90. 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

91. A sign giving notice of a property for sale or lease should not be placed on
a property by more than one broker and only if

A. The sign is placed at least one meter away from the other sign
B. The sign should be of the same size as the other signs
C. Authorized by the owner
D. It should not exceed three signs on the property
E. The address of the broker is indicated on the sign

92. In the conjugal partnership of gains, what kind of property does the
spouses have conjugal partnership on?
A. Gains realized by the joint or merged property and efforts of
spouses
B. Property from a game of chance
C. Winnings from a game of chance
D. Income realized by spouses during the marriage
E. Property owned by spouses exclusively

93. It embraces the art of open space design, building design and road and
pathways design.

A. Socialized housing planning

B. Site planning
C. Contour planning
D. Table survey planning
E. Subdivision survey plan

94. The two 92) criteria for carp coverage is suitability of the land for
agriculture and

A. Its need for carp purposes

B. Its size and location
C. Its possibility of acquisition
D. Its right of way
E. Its classification

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95. As an agent of the seller, the real estate broker is usually authorized to do
all of the following except:

A. Place “for sale” sign on the listed property

B. Cooperate with other brokers to facilitate a sale
C. Bind the principal under a contract of sale
D. List the property on the multi-listing service
E. Advertise the listed property

96. When is the documentary stamp on sale of real property paid?

A. Within 30 days after the close of the month

B. Within 5 days after the close of the month
C. Within 48 hours
D. Within 30 days
E. Within 24 hours

97. In case of a complaint filed by a real estate broker against another real
estate broker who are members of the same organization, the real estate
broker must

A. File a complaint and exhaust all remedies within their organization

B. File a complaint first with the concerned barangay
C. File a complaint directly with the Housing Land Use and
Regulatory Board
D. File a complaint directly with the Department of Trade and
Industry
E. File a complaint directly with the Realty Service council of the
Philippines

98. For mass-housing projects, the official appraiser shall be the

A. HUDCC D. HDMF
B. SHFC E. HGC
C. NHA

99. The legal right of the state to acquire property of a decedent who died
without a will and without heirs is referred to as what?

A. Dedication D. Escheat
B. Eminent domain E. Police power
C. Devise

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100. To be considered comparable to the subject property, a

comparable property must have been sold :

A. with a conventional mortgage

B. for all cash
C. without any form of secondary financing
D. for credit
E. in an arm’s length transaction

101. Added value inherent on a lot bounded by two streets.

A. Cooperate interest D. Joint venture

B. Plottage value E. Corner influence
C. Social value

102. Buyers of real property covered by the protective mantle of the

Realty Installment Buyer Protection Act (R.A. 6552) do not include
installment buyers of :

A. Residential condominium units

B. House and lot packages
C. Industrial lots
D. Residential subdivision lots

103. Jake and Rosie sold their house which is their principal residence.
You as their broker have to advice 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%

104. For the exemption in payment of capital gains tax to be valid, within
how many months from the sale or disposition of their principal residence
should Jake and Rosie use the proceeds in acquiring or constructing their
new principal residence?

A. 24 months
B. 36 months
C. 18 months
D. 12 months

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105. Despite the exemption from the capital gains tax if Jake and Rosie
will use the sales proceeds in acquiring or constructing their new principal
residence, what must the buyer do before paying the agreed upon selling
price in order to ensure payment of all taxes due on the transaction?

A. Withhold and deduct the six-percent capital gains tax from the
agreed selling price and pay it directly to the BIR for later refund
upon proof by the Jake and Rosie.
B. Withhold and deduct the six-percent capital gains tax from the
agreed selling price and deposit the amount in cash or
manager’s check in Jake’s and Rosie’s account.
C. Demand a provision in the deed of sale that any future tax
liabilities shall be for the account of the sellers.
D. Withhold and deduct the six-percent capital gains tax from the
agreed selling price and deposit the amount in cash or
manager’s check in an interest-bearing bank account under an
escrow agreement between the bank, the concerned RDO, the
sellers and the buyer.

106. At the end of prescribed period for acquiring or constructing their

new principal residence, Jae and Rosie must submit documentary
evidence showing that they used the proceeds of the sale to acquire a
new principal residence.

Within how many days from the end of the prescribed period should they
submit the documentary evidence so that they shall not be declared
deficient in the payment of their capital gains tax on the sale?

A. Within 15 days
B. Within 30 days
C. Within 45 days
D. Within 60 days
E.
107. Three of the four enumerated acts of a broker are considered
unethical. Which act is not unethical?

A. Encouraging the parties to a sale to indicate a

consideration lower than the actual selling price
B. P21-30
C. Keeping a special bank account, separate and distinct
from his own funds, for all monies received in trust for
other persons such as client’s money and similar items.
D. Disclosing his client’s confidential personal information
to a fellow broker in order to facilitate the sale of his
client’s property.

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E. Delaying submission of a formal offer that he had

received from a prospective buyer in the hope of
securing a higher offer.

108. Exemptions on payment of the six percent (6%) capital gains tax on
the sale of an individual seller’s principal residence who will use the
proceeds to purchase a new place of residence may be availed of only
once every:

A. 5 years
B. 8 years
C. 10 years
D. 12 years

109. A broker has just received from a fellow broker’s client/buyer, a

written offer to purchase a property of his client/seller, together with a
check for earnest money payment. Which of the following steps is the
most proper and ethical for him to take?

A. Call another fellow broker whose client is also interested

in the property in the hope that they can top the offer
B. Call the seller immediately to inform him about the offer
and submit at the soonest possible time, both the written
offer and the earnest money payment
C. Show the offer to another prospective buyer in the hope
of getting a better price for the seller
D. Reject the first offer outright based on his opinion that
the offered price is too low and tell his fellow broker who
submitted the offer to convince the buyer to make a
higher offer

110. Your client has agreed to be a mortgage of a big property that

straddles two cities. You have to inform him that the mortgage has to be
registered in:

A. The bigger city

B. Both cities
C. The city where a bigger part of the property lies
D. The city indicated in the property’ s registered address

111. Your friend has paid exactly two years of installments on a

residential subdivision lot after which he loses his job and consequently
fails to pay subsequent installments. Based on republic Act 6552, how
many percent of his total payments should be refunded upon cancellation
of the contract?

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A. 40%
B. 35%
C. 65%
D. 50%
E. 70%

112. Assuming due cause for foreclosure, what is the condition for a real
estate mortgage to be foreclosed extrajudicially?

A. When the parties involved want to avoid litigation

B. When there is a special power to sell inserted in, or
attached to the mortgage contract
C. When the mortgaged property is located in a remote
area
D. When the mortgage is not a juridical person

113. Dick and Jane executed a marriage settlement specifying that the
regime of separation of property shall govern their property relations
during marriage. They are married in proper ceremonies on
December 1, 1988. Under the Family Code, which of the following
systems shall govern their property relations during their marriage?

A. Absolute community of property

B. Separation of property
C. Conjugal partnership of gains
D. Exclusive property

114. The installment buyer of a residential condominium unit who has

religiously made payments for three years but fails to pay installments
thereafter, has the right to pay without additional interest the unpaid
installments due, within a grace period of how many months from the date
installment became due.?

A. One month
B. Two months
C. Three months
D. Four months

115. In an exclusive authority to sell which he gives to you for a period of

ninety days, your client seller wants a 15 million asking price for his house.
Upon appraisal, you realize that the price is very reasonable and fair to
both seller and eventual buyer. Knowing through experience that buyers
always give counter-offers, how much should you quote when offering the
property?

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A. Php 17 Million
B. Php 16 Million
C. Php 15 Million
D. Php 18 Million

116. You have just closed the sale of a 700 square meters commercial
lot in Pasig. The selling price agreed upon is 35,000 per square meter.
You have to advise the seller, who has agreed to pay all the expenses, to
prepare several checks. What amounts should he indicate for the capital
gains tax, the documentary stamps tax and your 5% commission check?
The zonal valuation of the lot is Php 37,000 per square meter.

A. Capital Gains Tax - Php 1,470,000.00

Documentary Stamp Tax - Php 367,500.00
Commission - Php 1,225,000.00

B. Capital Gains Tax - Php 1,554,000.00

Documentary Stamp Tax - Php 388,500.00
Commission - Php 1,225,000.00

C. Capital Gains Tax - Php 1,554,000.00

Documentary Stamp Tax - Php 388,500.00
Commission - Php 1,295,000.00

D. Capital Gains Tax - Php 1,470,000.00

Documentary Stamp Tax - Php 367,500.00
Commission - Php 1,295,000.00

Selling price 24,500,000.00

=35000*700

Zonal value 25,900,000.00

=37000*700

Capital gains tax 1,554,000.00

=Zonal value x 6%

DST 388,500.00
=Zonal value x 1.5%

Commission 1,225,000.00

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=selling price x 5%

Items 117-119

Gina bought a vacant residential lot in Tagaytay with a land area of 310
square meters at Php 3,000.00 per square meter. She tendered a down
payment of 30% with the balance payable in twelve monthly amortizations
at 21% per annum. After paying six monthly amortizations, she received a
windfall inheritance from a wealthy bachelor uncle. She then decided to
make a balloon payment to pay off the loan. If the amortization factor is
0.093113:

117. What is the remaining balance of the loan after six monthly
payments?

A. Php 342,428.84
B. Php 408,533.75
C. Php 287,300.62
D. Php 311,256.23

Selling price 930,000.00

=3000*310
30% DP 279,000.00
Balance 651,000.00
Month Principal Interest 651,000.00
1 60,616.56 49,224.06 11,392.50 601,775.94
2 60,616.56 50,085.48 10,531.08 551,690.45
3 60,616.56 50,961.98 9,654.58 500,728.47
4 60,616.56 51,853.81 8,762.75 448,874.66
5 60,616.56 52,761.26 7,855.31 396,113.40
6 60,616.56 53,684.58 6,931.98 342,428.82
7 60,616.56 54,624.06 5,992.50 287,804.76
8 60,616.56 55,579.98 5,036.58 232,224.78
9 60,616.56 56,552.63 4,063.93 175,672.16
10 60,616.56 57,542.30 3,074.26 118,129.86
11 60,616.56 58,549.29 2,067.27 59,580.56
12 60,616.56 59,573.90 1,042.66 6.66
650,993.34 76,405.42

118. What is the total interests paid after six months?

A. Php 52,443.15

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B. Php 60,616.56
C. Php 55,128.20
D. Php 53,467.22

119. What is the total amount Gina has to pay to write off the loan?

A. Php 311,256.23
B. Php 347,917.19
C. Php 408,533.75
D. None of above

Items 120-122

The gross sales receipts of Eureka Realty, Inc., a VAT registered

company was Php 23,456,000.00 for January. Purchases from VAT-
registered suppliers during the same month was Php 2,719,894.00. The
E-VAT rate is 12%.

120. What is the output tax due for the month?

A. Php 2,132,364.00
B. Php 2,513,142.86
C. Php 271,989.40
D. Php 247,263.00

121. What is the input tax due for the month?

A. Php 2,132,364.00
B. Php 2,345,600.00
C. Php 291,417.21
D. Php 247,263.00

122. How much is the VAT payable due?

A. Php 1,885,101
B. Php 1,133,399
C. Php 1,462,697
D. Php 2,221,725.65

Sales 23,456,000.00 2,513,142.86 VAT output

Purchases 2,719,894.00 291,417.21 VAT input
2,221,725.64 VAT payable

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123. Which of the following is not essential in the determination of Fair

Market Value?

A. Knowledgeable and prudent seller and buyer

B. Reasonable exposure of the property in the open market
C. Assessed value indicated on the Tax Declaration
D. Willing seller and willing buyer

124. When a licensed broker accepts a listing from a fellow practitioner,

he follows three conditions clearly stated in the code of ethics. Which one
of the following is not a condition to be followed?

A. The agency of the broker who offers the listing should

be respected until it has expired and the listing comes to
his attention from a different source.
B. The agency of the listing broker should be respected
perpetually in all dealings with his client/principal.
C. The agency of the broker who offers the listing should
be respected until the owner, without solicitations, offers
to list with him.
D. The listing should be passed to a third broker without the
knowledge and consent of the listing broker.

125. Which one of the following acts of a broker can be considered

within the bounds of the code of ethics?

A. Encouraging the parties to a sale to indicate a

consideration lower that the actual selling price
B. Serving as a witness in court proceedings involving a
property owned by his client
C. Disclosing his client’s confidential personal information
to a fellow broker in order to facilitate the sale of his
client’s property.
D. Delaying submission of a formal offer that he had
received from a prospective buyer in the hope of
securing a higher offer.

126. Annotation of Section 4, Rule 74 of the Rules of the 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

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B. Any person who might have been unduly deprived of his

participation in the estate of the deceased
C. The parents of the deceased
D. Creditors

127. A broker has secured a written offer to purchase a commercial

property at a price of 60 Million together with a check for thirty percent
down payment. He is certain that the seller will accept the offer. Before he
can present the offer to the seller, he receives unverified information that a
planned government infrastructure project will eat up a significant portion
of the property. Several steps have to be taken by the broker to save the
sale and protect the interest of all parties concerned. Which of the
following is inappropriate at the moment?

A. Secure detailed information from the proper government

agencies as to the actual scope of the project
B. Inform the prospective buyer about the forth coming
government project and the possible effects is will have
on the property
C. Present the offer to the seller for signing and acceptance
to ensure the consummation of the sale
D. Inform the seller about the forth coming government
project and the possible effects it will have on the
property

128. Which of the following is not a step to be taken in the release of a

mortgage?

A. Application with the sheriff’s office

B. Payment of the obligation
C. Execution of the Deed of Release
D. Registration of the Deed of Release

129. Four of the following are important information in the documentation

and registration of a real estate sale. Which information is false?

A. Capital Gains Tax is 6% of the total contract price or

zonal valuation, whichever is higher
B. Documentary Stamps Tax is 1.5% of the total contract
price or zonal valuation, whichever is higher
C. Transfer Fees are computed at 1.5% of the total contract
price or zonal valuation, whichever is higher

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D. Pasig City and Quezon City imposes a Business Tax on

sales of real estate titled to corporations
E. Updated Real Estate Taxes is necessary before the
registration

130. Which one of the following newspaper line ads is blatantly

unethical?

A. “HOUSE ON A VERY QUIET NEIGHBORHOOD”

B. “FLOOD-FREE STREET!”
C. “THE VALUE OF THIS PROPERTY WILL DOUBLE IN
ONE YEAR!”
D. “BEAUTIFUL VIEW!”

131. Your friend Gary has just closed the sale of his 930 square meter
commercial lot in Shaw Boulevard. The selling price agreed upon is
25,000 per square meter. You have to advise your friend—who has
agreed to pay the capital gains tax and documentary stamps tax—to
request for two manager’s check for payment of these taxes. What
amounts would he indicate for the capital gains tax and the documentary
stamps tax? The current BIR zonal valuation of the lot is Php 30,000 per
square meters.

A. Capital Gains Tax - Php 1,395,000.00

Documentary Stamp Tax - Php 418,500.00

B. Capital Gains Tax - Php 1,674,000.00

Documentary Stamp Tax - Php 418,500.00

C. Capital Gains Tax - Php 1,395,000.00

Documentary Stamp Tax - Php 348,750.00

D. Capital Gains Tax - Php 1,674,000.00

Documentary Stamp Tax - Php 418,500.00

Selling Price 23,250,000.00

Zonal value 27,900,000.00

CGT 1,674,000.00
DST 418,500.00

132. Jose takes the following steps as a licensed real estate broker.
Which of these actions can be considered unethical?
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A. He accepted an exclusive listing for an abandoned

house and lot even with his knowledge that somebody
died violently in the property.
B. He proceeds to entertain prospective buyers all the while
disclosing to them the crime committed inside the
property.
C. He also advertised the listing giving the exact address
for an open house on one weekend.
D. He invites his friends to attend the open house hoping
that real buyers will feel that there are many others
interested in the property.

133. Three of the following are tricks employed by unethical real estate
brokers when bringing clients to view their listings. Which one is not
unethical?

A. Using a roundabout route to avoid eyesores near the

neighborhood.
B. Employing a cleaning company to freshen the smell of
the house interiors
C. Forecasting changes from residential to commercial
zoning to hint at high rates of value appreciation.
D. Showing another inferior property to position his listing
as the better alternative.

134. Novice real estate brokers have limitations that make it unethical to
accept some listings. Which one does not apply?

A. No database of regular clients

B. Expertise – some listings require higher skills or
knowledge beyond their capability
C. Area of operations – the location of the listing precludes
proper and diligent efforts to service prospective buyers
D. Part time brokers – part time brokers cannot give full
attention to listings

135. After a sale is consummated, the broker should do the following

except:

A. accept commission from both the seller and buyer

without knowledge of either of the parties

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B. should assist the buyer to acquire possession and

ownership of the real property bought in accordance
with the terms and conditions agreed upon
C. should see to it that both the buyer and seller concluded
a fair contract advantageous to both
D. in case of court proceeding and called upon to act as a
witness, should give testimonies in the most unbiased,
honest, truthful and professional manner

136. There are times when a broker has to share his listings with other
brokers. In case of sale, the listing broker should do the following, except:

A. should share the commission as agreed upon

B. should negotiate directly with the client without the
consent of the other broker
C. should not seek unfair advantage over his fellow broker
D. should not criticize publicly the other broker

137. When advertising a properly listing, the broker should but not:

A. advertise without the consent of the owner

B. state the real estate broker’s license number in the ads
C. state the true picture of the property
D. advertise within the period of authority

138. As a real estate practitioners, we should but not:

A. willingly share the lessons and experiences

B. not use the service of the salesman of the fellow
practitioner without their knowledge and consent
C. not solicit a listing currently listed exclusively with
another broker
D. not pass a listing to a third broker without the knowledge
and consent of the listing broker
E. put sign or notice of a property for sale without authority
from the owner

139. When the property is subject to rent control law, the lessor can
eject the lessee when there is need of the owner or his immediate family
member to use the premises for residence, on the following conditions,
except:

A. lease has expired

B. 3 months advance notice is given to the lessee

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C. the owner or immediate family member has no other

dwelling
D. the owner or immediate family member will use the
premises for business
E. the lessor or immediate family member will live in the
premises for a least one year

140. Generally, only Filipino citizens and corporation with at least 60%
capital of which is owned by Filipinos, are entitled to acquired and own
land in the Phils. However, aliens can acquire real estate in the Phils. In
following cases, except:

A. acquisition before the 1935 constitution

B. acquisition thru hereditary succession if the acquiree is a
legal heir
C. purchase of not more than 40% interest in a
condominium project
D. purchase of residential house and lot
E. purchase by former natural born Filipino citizens subject
to limitations prescribed by BP 185 and RA 8179.

Mr. Juan de la Cruz paid 25% down payment for a subdivision lot containing
an area of 400 square meters at a price of Php 3,000.00 per square meter
with the balance payable in 120 equal monthly amortization at 21% interest
per annum. He paid 84 monthly amortizations totaling Php 1,475,224.40
inclusive of penaly interest of Php 64,000,000.00

141. Compute the down payment.

A. Php 100,000
B. Php 200,000
C. Php 300,000
D. Php 400,000
E. Php 500,000

142. How much is the total amortization paid?

A. Php 1,475,224.40
B. Php 1,411,224.40
C. Php 1,412,224.40
D. Php 1,465,224.42

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E. Php 1,455,224.40

Selling Price 1,200,000.00

DP 300,000.00
Balance 900,000.00

Total payments 1,475,224.40

Interest 64,000.00
1,411,224.40

Items 143-145
A house and lot, with a land area of 400 square meters was sold at Php
2,500,000. Per tax declaration, the fair market value of the house is Php
1,000,000, and the lot is Php 1,200,000. The zonal value of the lot is Php
5,000 per square meter. The sale is subject to capital gains tax.

143. Compute the tax base

A. Php 2,000,000
B. Php 2,200,000
C. Php 2,500,000
D. Php 3,000,000
E. Php 3,500,000

144. How much is the capital gains tax

A. Php 120,000
B. Php 132,000
C. Php 150,000
D. Php 180,000
E. Php 210,000

145. How much is the documentary tax

A. Php 30,000
B. Php 33,000

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C. Php 37,500
D. Php 45,000
Selling price 2,500,000.00
FMV per tax dec 2,200,000.00
Zonal value 3,000,000.00

CGT 180,000.00
DST 45,000.00

Items 146-147
A seller who bought a property for Php 5,500,000 wants to sell same
property with a 30% gross profit. He is willing to pay the broker a 5%
brokers commission without affecting his 30% gross profit.

146. How much is the gross selling price?

A. Php 6,500,000
B. Php 6,875,000
C. Php 7,150,000
D. Php 7,040,000
E. Php 7,260,000

147. How much is the gross selling price inclusive of broker’s

commission?

A. Php 7,507,500
B. Php 7,510,500
C. Php 7,515,315.78
D. Php 7,520,500.82
E. Php 7,526,315.78

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Purchase price 5,500,000.00

30% mark up 1,650,000.00
Total 7,150,000.00
Divide by .95 7,526,315.79
Broker's comm 376,315.79
Net 7,150,000.00

Items 148-149
A borrower mortgaged his real estate property for Php 1,500,000.00. He
made quarterly payments of Php 100,000.00 plus interest at 16% per
annum.

148. How much did he pay for the principal for the first year?

A. Php 100,000
B. Php 200,000
C. Php 400,000
D. Php 500,000
E. Php 600,000

149. How much is the total payment of interest for the first year?

A. Php 240,000
B. Php 216,000
C. Php 176,000
D. Php 224,000
E. Php 208,000
1,500,000.00
Principal Interest Payments Balance
100,000.00 60,000.00 160,000.00 1,400,000.00
100,000.00 56,000.00 156,000.00 1,300,000.00
100,000.00 52,000.00 152,000.00 1,200,000.00
100,000.00 48,000.00 148,000.00 1,100,000.00
400,000.00 216,000.00 616,000.00

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Items 150-154
Mr. Juan de la Cruz bough a parcel of land. He paid a down
payment of 20% on the contract price, with monthly amortization
of Php 108,200.00 for 5 years, with interest of 21%. The
amortization factor is 0.02705. Compute the following:

150. What is the principal obligation on which the monthly obligation is

based?

A. Php 2,000,000
B. Php 3,000,000
C. Php 4,000,000
D. Php 5,000,000
E. Php 6,000,000

151. What is the contract price?

A. Php 2,000,000
B. Php 3,000,000
C. Php 4,000,000
D. Php 5,000,000
E. Php 6,000,000

152. What is the amount of down payment?

A. Php 1,000,000
B. Php 1,500,000
C. Php 2,000,000
D. Php 2,500,000
E. Php 3,000,000

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153. If the value added tax is Php 720,000, what would be the selling
price before VAT?

A. Php 3,000,000
B. Php 4,000,000
C. Php 5,000,000
D. Php 6,000,000
E. Php 7,000,000

154. If the value added tax is Php 720,000, what would be the selling
price inclusive of VAT?

A. Php 5,720,000
B. Php 6,720,000
C. Php 7,720,000
D. Php 8,720,000
E. Php 9,250,000

=108,200/.02705 4,000,000.00
Contract Price
=Principal/0.8 5,000,000.00
Downpayment
=Contract price x 20% 1,000,000.00
VAT 720,000.00
SP + VAT 5,720,000.00

Items 155-157

Mr. Juan de la Cruz received a down payment of Php 2,400,000.00 for

his property sold at Php 3,600,000.00. The balance was secured by
REM (real estate mortgage) with the same property, payable in one (1)
year. In order to register the transaction, compute the documentary
stamp tax, as follows:

155. Documentary stamp on sale

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A. Php 18,000
B. Php 36,000
C. Php 54,000
D. Php 72,000
E. Php 144,000

156. Documentary stamp on mortgage

A. Php 2,110
B. Php 2,210
C. Php 2,310
D. Php 2,410
E. Php 2,510

157. What is the total documentary stamp tax?

A. Php 38,110
B. Php 38,210
C. Php 56,310
D. Php 56,410
E. Ph
SP 3,600,000.00 p 72,510
DP 2,400,000.00
REM 1,200,000.00

DST on sale
=SPx1.5% 54,000.00

DST on mortgage
first 5,000 20.00
balance of 1,195,000
=(1,195,000/5000)x 10 2,390.00
Total DST on REM 2,410.00

Total DST 56,410.00

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158. The document which must not be presented to the Assessor to

effect transfer of tax declaration is:

A. Copy of the new owner’s duplicate title in the name of

the Transferee
B. Copy of the documents of absolute sale or transfer in
favor of the Transferee
C. Copy of the BIR Certificate Authorizing Registration (CAR)
D. Copy of the Transfer Tax Receipt
E. Copy of the lot and building plans

159. A 10-hectare raw land was purchased at Php 400.00 per sq. m. and
was developed based on the cost estimated at Php 300.00 per sq. m.
based on the gross area. The marketing, inclusive of advertising and
broker’s commission is 15% of the selling price. If the company desires a
gross profit of 30% of the selling price, what would be the minimum selling
price per sq. m. of the subdivision lots assuming that the saleable area is
70 percent of the gross area?

Land cost per sq. m. - Php 400.00

Development cost per sq. m. - Php 300.00
Marketing cost - 15% of the selling price
Gross profit - 30% of the selling price
Saleable area - 70% of 100,000 sq. m.

A. Php 1,818.18 per sq. m.

B. Php 1,700.00 per sq. m.
C. Php 1,800.00 per sq. m.
D. Php 1,900.00 per sq. m.

size 10 ha
Purchase price 400
Dev cost 300
Total 700

Gross profit 30%

Add Adv & Comm 15%
SP
=700/.55 1,272.73
=1272.73/70% 1,818.18

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Examination Questionnaires

160. Ms. SY hired the services of a broker to sell his property. She said
she bought it at Php 6,300,00.00 and wants a 30% gross profit. If you
were the broker, at how much would you sell the property? If you will be
paid a 5% commission, how much shall be added to the selling price that
the 30% profit of Ms. SY will not be affected?

Selling Price of the property plus added amount to the selling price

A. Php 7,190,000.00 + Php 359,500.00 = Php

7,549,500.00
B. Php 8,290,000.00 + Php 414,500.00 = Php
7,604,500.00
C. Php 8,190,000.00 + Php 409,500.00 = Php
8,599,500.00
D. Php 8,390,000.00 + Php 419,500.00 + Php
8,809,500.00

Purchase price 6,300,000.00

30% mark up 1,890,000.00

Total 8,190,000.00

5% comm 409,500.00

161. Two listing and selling brokers sold a property. The brokers’
commission is five (5%) percent and agreed to a 50-50 percent
commission sharing. Each of them received Php 62,500.00. What is the
selling price?

A. Php 2,000,000.00 c. Php 3,000,000.00

B. Php 2,500,000.00 d. Php 3,500,000.00

Commission 62,500.00
x2 125,000.00
SP
=Comm/.05 2,500,000.00

162. Mr. Juan de la Rosa sold his property at Php 5,000,000.00 inclusive
of the capital gain tax, documentary stamp tax and the broker’s
commission of five (5%) percent. What will be his net proceeds after
deduction of expenses?

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A. Php 4,250,000.00 c. Php 4,375,000.00

B. Php 4,455,000.00 d. Php 3,875,000.00

SP 5,000,000.00
CGT 300,000.00
DST 75,000.00
Comm 250,000.00
Net Proceeds 4,375,000.00

163. Mr. PASTOR wants Mr. FELIPE to sell the titled property of their
family corporation. After inspecting the property Mr. FELIPE requests 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. Who ever is authorized in a formal board resolution as

per the Corporate Secretary’s Certification
B. The company President
C. The Father who is the patriarch of the family
D. The Treasurer of the corporation

164. Mr. Cruz was the lessor of 25 units of residential apartments with
equal rental payments and made a total annual gross receipts of Php
270,000.00 for the year 2006.

How much is the value added tax for the year?

A. Php 245,454.55
B. Php 289,285.71
C. Php 270,000.00
D. Php 378,000.00
E. None of the above

165. The creditable withholding tax in the sale of an acquired foreclosed

asset of a bank in the amount of Php 850,000.00 is :

A. 1.5% d.) 6.0%

B. 3.0% e.) None of the above
C. 5.0%

166. The creditable withholding tax for the sale of a residential

condominium worth of Php 1.8Million which is being used as residence by
the owner is:

A. 1.5% d.) 6.0%

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B. 3.0% e.) None of the above

C. 5.0%

167. The Documentary Stamps for the Estate Tax shall be paid on:

A. After 30 days from notarization of Deed

B. After 10th day of the following month from notarization of Deed
C. After 5th day of the following month from notarization of Deed
D. None of the above

168. The income approach in estimating the value of an

investment property is an application of:

A. Principle of Substitution
B. Principle of Anticipation
C. Principle of progression
D. Principle of Contribution
E. All of the above

169. The zonal value of ground floor units a condominium

project are considered commercial and has higher zonal value
than the regular units by:

A. 10% d.) 40%

B. 20% e.) None of the above
C. 30%

170. Mark and Suzette executed a marriage settlement

specifying that the regime of separation of property shall govern
their property relations during marriage. They were subsequently
married in proper ceremonies on December 1, 1988. Under the
Family Code, which of the following systems shall govern their
property relations during their marriage

A. Absolute community of property

B. Exclusive property
C. Conjugal partnership of gains
D. Separation of property
E. Any of the above

171. Under the new Multi-Window Lending System of HUDCC,

housing loan packages is considered as low cost housing if the
price is Php 180,000.00 but not over:

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A. Php 225,000.00 d.) Php 1,000,000.00

B. Php 375,000.00 e.) All of the above
C. Php 500,000.00

P2.0 M

172. Three (3) of the following are examples of involuntary

alienation of property. Which one is not?

A. Expropriation d.) Sale for tax delinquency

B. Foreclosure of mortgage e.) All of the above
C. Sale to an alien buyer

173. As provided for by the Agrarian Reform Law, lands

awarded to a tenant beneficiary cannot be the subject of a
conversion permit with:

A. Within one (1) year from grant of emancipation patent

B. Within two (2) years from grant of emancipation patent
C. Within five (5) years from grant of emancipation patent
D. Within ten (10) years from grant of emancipation patent
E. None of the above

174. Donation of a property is void when:

A. The donor stipulates that the property shall not be

occupied by the donee until after the donor’s death
B. The donor is donating to his mistress who has been
charged and found guilty of adultery
C. The donation stipulates that the donee give the fruits of
the land for one year to his siblings
D. The donor stipulated that the donation shall take effect
only upon his death
E. All of the above

175. A subdivision plan prepared for a flat terrain condition is:

A. Contour planning d.) Topographic planning

B. Chaplan planning e.) None of the above
C. Square planning

176. Total refund to the buyer for developer’s failure to complete

the development within the reglementary period is equivalent to:

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A. 50% of total payment inclusive of amortization interest

less penalty interest
B. 10% of the total payment inclusive of amortization
interest and penalty interest
C. 100% of total payment inclusive of amortization interest
less penalty interest
D. 100% of total payment less penalty interest plus legal
interest
E. None of the above

177. The documentary stamp tax on every mortgage or pledge

of real estate is:

A. Php 20.00 for the 1st Php 5,000.00 plus Php 10.00 for
every Php 5,000.00 or fraction thereof in excess of the
1st Php 5,000.00
B. Php 30.00 for every Php 5,000.00 or fraction thereof
C. Php 25.00 for every Php 5,000.00 or fraction thereof
D. Php 2.00 on each Php 200.00 or fraction thereof
E. None of the above

178. Removal of land from one owner to another when a stream

suddenly changes its course is:

A. Accretion d.) Alienation

B. Alluvium e.) None of the above
C. Avulsion

179. A broker has just received from a fellow broker’s

client/buyer, a written offer to purchase a property of his
client/seller, together with a check for earnest money payment.
Which of the following steps is the most proper and ethical for him
to take?

A. Call another fellow broker whose client is also interested

in the property in the hope that they can top the offer
B. Call the seller immediately to inform him about the offer
and submit at the soonest possible time, both the written
offer and the earnest money payment
C. Show the offer to another prospective buyer in the hope
of getting a better price for the seller
D. Reject the first offer outright based on his opinion that
the offered price is too low and tell his fellow broker who

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submitted the offer to convince the buyer to make a

higher offer
E. None of the above

180. 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 d.) Economic housing

B. Socialized housing e.) None of the above
C. Open Housing

181. What is the functional share of the surviving spouse that will appear
in the new title if the decedent left three (3) legitimate children and one (1)
illegitimate child?

A. 4.5 / 9 d.) 1 / 4.5

B. 5.5 / 9 e.) None of the above
C. 1 / 9

182. In the case of a property that is sold to two or more buyers

who are all presumed to have acted in good faith, who is the
buyer who has a better right to the property?

A. The buyer staying in the property

B. The buyer who is registered as owner in the Barangay
records
C. The buyer who first registered or recorded the sale with
the Register of Deeds
D. The very first as proven from a comparison of the dates
indicated on the different Deeds of Absolute Sale
E. None of the above

183. The acquisition of land in advance of actual need based on present

value for future planned development is referred to under the Urban Land
Reform Law as:

A. Urban Renewal d.) new settlement

B. Land Assembly e.) None of the above
C. Land Banking

184. For the hold-over clause to entitle the broker to a commission even
if he closed the sale after the lapse of his authority, the broker must:

A. Register his prospect during his authority

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B. Submit written acknowledgement of his buyer

C. Register and negotiate with his prospect during his
authority
D. Bring the buyer to the seller
E. All of the above

185. A broker has secured a written offer to purchase at the

price and terms expected by his client seller. Before the offer is
signed and accepted, the seller died. Several steps have to be
taken by the broker to save the sale and protect the interest of all
parties concerned. Which of the following is inappropriate and
unnecessary?

A. File a notice for lis pendens on the subject property to

protect his rights as broker
B. Secure a new written authority to sell from the heirs on
their legal guardians or attorney-in-fact if the heirs are all
minors
C. Inform the prospective buyer that the registered owner
has died.
D. Explain to the buyer the salient points of Section 4, Rule
74 which will be annotated in the new title if ever the
sale pushes through
E. All of the above

186. Under the BIR Revenue Regulation No. 17-2003, the seller of a
family home who failed to utilized the proceeds to acquire a new residence
within eighteen (18) months from the sale shall be assessed an additional
deficiency capital gains tax inclusive of penalties and

A. Ten (10%) interest per annum

B. Twenty (20%) interest per annum
C. Twenty-five (25%) interest per annum
D. Fifteen (15%) interest per annum
E. None of the above

187. A provision listing which entitles the broker to the commission even
if he closed the sale after the period of his authority provided the sale is to
a buyer whom the broker registered in writing to the seller and with whom
he has negotiated during the period of his listing.

A. Authority to sell d.) Broker’s Agreement

B. Hold-over clause e.) None of the above
C. Extension of authority

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188. 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

B. Capacity and personality d.) Board Resolution
in the contract

189. On documents executed abroad, like Special Power of Attorney, the

documents must be properly authenticated by any of the following, except:

A. Phil. Ambassador or Secretary of Legation

B. Charge d’ Affairs
C. Consul, Vice Consul, or Consular Agent
D. POEA

190. In a contract to sell by a corporation, the instrument must include the

following, except:

A. The firm has legal right to own in the Phils. In case ownership is
to be transferred
B. Contract is duly authorized by proper Board Resolutions of the
Directors
C. Financial Statement of the Corporation
D. Board Resolution authorizing the officer to represent and sign in
behalf of the corporation

191. Which of the following is not essential in the determination of Fair Market
Value?

A. Knowledgeable and prudent seller and buyer

B. Reasonable exposure of the property in the open market
C. Assessed value indicated on the Tax Declaration
D. Willing seller and willing buyer

192. The document which provides guidelines, rules and regulations regarding
the rights of condominium unit owners in the use, occupation, ownership
and disposition of units is called:

A. Master Deed
B. Declaration of Restrictions
C. Condominium Articles of Incorporation
D. Condominium Association Rules

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193. Property exclusively owned by the husband is called:

A. Chattel
B. Paraphernal property
C. Accession
D. Capital property

194. In authority given by a developer to a broker to find a supplier for cement

and aggregates materials wherein payment shall be in the form of units or
developed lot, the contract is called:

A. Exchange Agency
B. b.) Sales Agency
C. Procurement Agency
D. Purchase Agency

195. It is the amount enclosed in an offer to buy and form of the price in case of
sale:

A. Option Money
B. Earnest Money
C. Esrow Money
D. Down Payment Money

196. The best protection for a real estate broker when getting an authority for
listing is:

A. Exclusive Agency Contract

B. Exclusive Right to Sell
C. Percentage Listing
D. Net Listing

197. When licensed broker accepts a listing from a fellow practitioner, he

follows three conditions clearly stated in the code of ethics. Which one of
the following is not a condition to be followed?

A. The agency of the broker who offers the listing should be

respected until it has expired and the listing comes to his
attention from a different source
B. The agency of the listing broker should be respected perpetually
in all dealings with his client/principal
C. The agency of the broker who offers the listing should be
respected until the owner, without solicitations, offers to list with
him

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D. The listing should not be passed to a third broker without the

knowledge and consent of the listing broker

198. Which one of the following acts of a broker can be considered within the
bounds of the code of ethics?

A. Encouraging the parties to a sale to indicate a consideration

lower than the actual selling price
B. Serving as a witness in court proceedings involving a property
owned by his client
C. Disclosing his client’s confidential personal information to a
fellow broker in order to facilitate the sale of his client’s property.
D. Delaying submission of a formal offer that he had received from
a prospective buyer in the hope of securing a higher offer

199. Annotation of Section 4, Rule 74 of the Rules of Court on the title to the
property of a deceased person, 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 the right to the subject property”

A. Heirs
B. Any persons who might have been unduly deprived of his
participation in the estate of the deceased
C. The parents of the deceased
D. Creditors

200. A broker is entitled to the commission upon:

A. Perfection of the Contract b.) Consummation of the Sale

B. Presentation of the client d.) Registration of the Client

201. Which of the following is never considered as a factor in the valuation of a

house and lot?

A. Modifications in zoning regulations

B. Topography of the lot
C. Conviction of the previous owner of moral turpitude
D. Functional charges on obsolescence

202. A Broker has secured a written offer to purchase a commercial property at

a price of 60 Million together with a check for thirty percent down payment.
He is certain that the seller will accept the offer. Before he can present the
offer to the seller, he receives unverified information that a planned
government infrastructure project will eat up a significant portion of the

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property. Several steps have to be taken by the broker to save the sale and
protect the interest of all parties concerned. Which of the following is
inappropriate at the moment?

A. Secure detailed information from the proper government

agencies as to the actual scope of the project
B. Inform the prospective buyer about the forthcoming government
project and the possible effects it will have on the property
C. Present the offer to the seller for signing and acceptance to
ensure the consummation of the sale
D. Inform the seller about the forthcoming government project and
the possible effects it will have on the property

203. The Continuing Professional Development (CPD) covers all real estate
practitioners, except:

A. real estate salesman C.) real estate brokers

B. real estate appraiser D.) real estate consultants
E.) All
204. The Golden Rule shall be observed in all dealings and relations of the real
estate practitioners, except:

A. with clients and fellow practitioners b.) the organization

to which they belong
B. the general public d.) all of the above

205. A real estate broker who accepts a listing from a client follows several
ethical guidelines in his relationship with the client. Which one of the
following is not always applicable?

A. He should pledge himself with utmost fidelity and good faith to

protect and promote the interest of his client
B. He should undertake to prepare an accurate appraisal report on
the property subject of the listing, as part of his service to his
client.
C. He should endeavor to be well informed of current legislation,
policies and programs of the government including proposed
legislation, which may effect the interest of his client
D. He should endeavor to make his client and customer conclude a
fair contact advantageous to both

206. Which of the following is not a step to be taken in the release of a

mortgage?

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A. Application with the sheriff’s office b.) Payment of the

obligation
B. Execution of the Deed of Release d.) Registration of
the Deed of Release

207. When a property owner dies without any heirs to inherit, which of the
following inherent powers of the state is applied on the property?

A. Expropriation b.) Escheat c.) Eminent Domain d.) Taxation

208. The real estate practitioner, in relation to the government, is expected to

perform as such except:

A. Secure all the necessary licenses, permits and authority

B. Pay any and all taxes, fees, dues, leaves or charges
C. Encourage, abet, tolerate or participate in the aversion or illegal
reduction in the payment of all taxes, fees, dues, levies or
charges
D. Should not offer or agree to pay, split or rebate any commission
or fee.

209. The PRBRES in cooperation with the CHED or the concerned

Colleges and Universities will undertake the evaluation of the following in
the Offering of the course of BSREM, except:

a.) Curriculum of the School offering BSREM

b.) Facilities of the School offering the same
c.) Screening in the Recruitment of the Faculty Members
d.) Qualification of the Faculty Members
e.) All of the above

210. Which of the following is not included in the primary purpose of the
establishment of the RA 9646?

a.) To enhance the collection of taxes by government in the

real estate transaction
b.) To protect the general public of any unscrupulous act of
practitioners in the conduct of real estate business
c.) To limit practitioners in the real estate industry
d.) To enhance qualification of the Real Estate service
practitioiners
e.) All of the above

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211. Licensed real estate service practitioners as defined in the RA 9646

are the following, except:

a)Licensed real estate consultant

b)Licensed real estate appraiser
c)Licensed real estate salesperson
e)none of the above

212. Local Government Officials who are qualified to be licensed without

examinations are the following, except:

a)Assessors or Asst. assessors who have at least 10 years in

rendering appraisal and assessments of real properties including
machineries and equipment
b) Assessors or Asst. assessors who have at least 5 years in
rendering appraisal and assessments of real properties including
machineries and equipment and an RPAO passer
c)Government Appraisers who have at least 10 years experience in
rendering appraisal services in any government instrumentalities
and government financial institutions
d) Assessor’s Office Employees who have at least 15 years tax
mapping experience.
e)None of the above

213. Under the provision of RESA, a violation of any unlicensed real

estate service practitioner shall be as follows:

a)Penalty of Php100,000 or two years imprisonment or both upon

the discretion of the court
b) Penalty of Php200,000 or two years imprisonment or both upon
the discretion of the court
c) Penalty of Php100,000 or four years imprisonment or both upon
the discretion of the court
d) b) Penalty of Php200,000 or four years imprisonment or both
upon the discretion of the court
e)None of the above

214. The Speaker of the House who signed the RA 9646 is?

a)Hon. Manuel Villar

b)Hon. Feliciano Belmonte
c)Hon. Prospero Nograles
d)Hon.Arnulfo Fuenteblla
e)none of the above

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215. The Senate President who signed the RA 9646 is?

a)Hon.Manuel Villar
b)Hon. Franklin Drilon
c)Hon. Juan Ponce Enrile
d)Hon. Edgardo Angara
e. none of the above

216. Under the provision of RESA, a violation of a real estate service

practitioner whose license is expired or suspended shall be as follows:

a)Penalty of Php100,000 or two years imprisonment or both upon

the discretion of the court
b) Penalty of Php200,000 or two years imprisonment or both upon
the discretion of the court
c) Penalty of Php100,000 or four years imprisonment or both upon
the discretion of the court
d) b) Penalty of Php200,000 or four years imprisonment or both
upon the discretion of the court
e)None of the above

217. Who shall act as prosecutors against illegal practitioners and other
violators of RA No. 9646 and its IRR?

a)THE PRBRES
b)The Lawyers of the PRC
c)The Municipal Trial court
d)The Regional Trial Court
e)None of the above

218. Who is qualified to be Members of the Continuing Professional

Development Council?

a)The PRBRES Chairman

b)PRBRES Board Member
c)Academe Representative
d)AIPO Representative
e)All of the above

219. Who is the qualified Chairman of the Continuing Professional

Development Council?
a)PRBRES Board Member
b)AIPO Representative
c)Academe Representative

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d)PRC Chairperson
e. All of the above

220. In resignation or termination from employment of a real estate

service practitioner, the same shall be reported by the employer to the
Board within how many days from the date of effectivity of the resignation
or termination?

a) 10 days
b)15 days
c)30 days
d)60 days
e)none of the above

221. The Real Estate Broker will be guilty of violating the RA 9646 and
its IRR and may cause revocation or suspension of his/her certificate of
registration except:

a)The Real Estate broker employs the services of a real estate

salespersons when he/she has not secured the required accreditation
from the Board prior to such employment;
b) The Real Estate broker has an actual knowledge of wrongful
transaction negotiated by his /her salesperson;
c) The Real Estate Broker retains the benefits, profits or proceeds of a
transaction wrongfully negotiated by his /her salesperson;
d) The Real Estate Broker employes more than twenty real estate
salesperson.
e)none of the above

222. The following are the Powers and Functions of the PRBRES except:

a)Prescribe guidelines and criteria for the Continuing Professional

Education (CPE) program for real estate service practitioners in
consultation with the accredited and integrated professional organization
of real estate service practitioners;

b)Adopt a national Code of Ethics and Responsibilities issued by the AIPO

to be strictly observed by all licensed real estate service practitioners;

c)Organize the integrated professional organization of real estate service

practitioners;

d)Conduct licensure examinations for the practice of the real estate

service professional and prescribe the appropriate, syllabi of the subjects
for examination with their tables of specifications.

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e)Maintain a comprehensive and updated register of licensed real estate

service professionals.

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