GENERAL/FUNDAMENTALS OF REAL ESTATE

1. Those who had passed the DTI licensure examinations in 2007 and prior years but failed to obtain their
license upon effectivity of R.A .No. 9646 may still register upon effectivity of the RESA without
examinations provided they have earned CEP or CPE units as follows:
A. 120 CEP or CPE credit units
B. 12 CEP or CPE credit units
C. 15 CEP or CPE credit units
D. 18 CEP or CPE credit units

2. Ownership of land in the Philippines is governed by law such as, the 1987 Philippine Constitution. In
addition, it may also be provided by
A. Executive Order of the President
B. Special laws of the Legislature
C. House Bills in Congress
D. Special Exemption Orders

3. The principle that states that all lands of the public domain belong to the state is referred to as
A. Public domain doctrine
B. Regalian doctrine
C. Patrimonial doctrine
D. State doctrine

4. As a real estate practitioner, we should but not:

A. willingly share the lessons and experiences with fellow brokers
B. solicit a listing currently listed exclusively with another broker
C. pass a listing to a third broker without the knowledge and consent of the listing broker
D. put sign or notice of a property for sale without authority from the owner

5. Under the law, private corporations and associations may hold such alienable lands of the public domain
onlyby lease, not to exceed a total area of
A. 1,000 has.
B. 500 has.
C. 12 has.
D. 3 has.

6. The national integrated organization of natural persons duly registered and licensed as Real Estate
Service Practitioners is called
A. Accredited Practitioners Organization
B. Integrated and Accredited Professional Practitioners
C. Accredited and Integrated Professional Organization
D. Accredited and Integrated National Organization

7. An idle land consisting of 2.5 hectares valued at P 100 per square meter was being taxed by the
municipal assessor and classified as agricultural. If the idle land tax imposed is 4% by the ordinance, how
much will the owner pay for idle land tax ?
A. P 40,000
B. P 100,000
C. P 20,000
D. P 50,000

8. The power of the state to regulate the use of one’s property for legal purposes only is referred to as
A. Escheat
B. Eminent domain
C. Police power
D. Power to issue permit
9. In determining the value of the house and the tax declaration being presented was issued 3 or more
years, the seller shall submit the following to the BIR
A. An updated tax declaration
B. The latest tax declaration
C. Certification from the Assessor whether the same is still the latest or not
D. Certification of improvement by the Assessor

10. It is the right given to an owner of an adjoining land to pass or have access thru another land is called
A. Right of way easement
B. Right of way passage
C. Right of way for people
D. Right o way encroachment

11. A lessee who rented out an office space will pay his monthly rental to the owner in the amount of
P35,000 per month and a deposit of P70,000. How much withholding tax must he deduct from the payment
A. P 1,750
B. P 3,500
C. P 5,250
D. P 10,500

12. Corporations or partnerships may acquire land in the Philippines provided that it is
A. Not more than 1000 has.
B. Not more than 40% foreign capital
C. Not more than 5 hectares
D. Not more than 1 hectare for residential land

13. The following is not exempted from basic real estate tax imposed by the city :
A. Real property owned by the Republic of the Philippines
B. All lands, buildings and improvements actually, directly and exclusively used for charitable, religious or
educational purposes;
C. Private cemeteries or burial grounds;
D. Machineries and equipment that are actually, directly and exclusively used by local water district and
government owned or controlled corporations engaged in the supply of water and/or generation of electric
power

14. David, an Australian citizen, may not be allowed to own the following property in the Philippines
A. Residential condominium unit
B. Commercial Office condominium unit
C. House and lot
D. House built on leased land

15. Janet wants to become a dual citizen, while in the Philippines, she must file a petition for dual
citizenship with this government agency
A. Department of Foreign Affairs
B. Philippine Embassy
C. Bureau of Civil Registry
D. Bureau of Immigration

16. The Register of Deeds required an affidavit of waiver from a foreigner who is married to a Filipina to
register the sale, which is considered
A. A valid requirement of the Register of Deeds
B. Void
C. Voidable
D. Required only if the foreigner is a husband

17. The best evidence of ownership of a condominium unit is

A. Tax declaration of the condo unit
B. Condominium Certificate of title
C. Transfer certificate of title
D. Contract to sell on the unit
18. The Family Code of the Philippines, under EO 209, became effective on
A. August 3, 1988
B. August 3, 1996
C. August 8, 1988
D. August 1, 1988

19. For the acquisition of a residential condominium unit by a former natural born citizen who has become
a foreigner, it is required that
A. Execute a sworn statement under BP 185
B. Must become a dual citizen
C. Not used in buy and sell of property
D. Not exceed 40% of the units

20. The Board, in coordination with the AIPO of real estate service practitioners, shall prepare, update and
maintain a roster of real estate service practitioners which shall contain the following information, except
A. names of all registered real estate service practitioners
B. field of specialization in real estate service
C. their residence and office addresses
D. license numbers

21. It is the conveyance of the right to enjoy the fruits of the property owned by a person.
A. Contract of lease
B. Usufruct
C. Right of way
D. Sale of property

22. For Cebu City, the basic tax it may charge for real estate taxes shall be
A. Not exceeding 1% of the assessed value
B. Not exceeding 1% of the fair market value
C. Not exceeding 2% of the fair market value
D. Not exceeding 2% of the assessed value

23. The following is not considered as good evidence or proof of ownership of one’s land
A. tax declaration,
B. realty tax receipts,
C. deed of sale
D. lot plan

24. As best evidence of ownership in fee simple is the transfer certificate of title as it is imprescriptible and
A. Indefeasible
B. With original copy in the Register of Deeds
C. Issued by the Register of Deeds
D. Signed by the Register of Deeds

25. Under BP 185, urban land shall be land located in

A. Urban areas
B. Commercial areas
C. Residential subdivisions
D. Central business district areas

26. No deed of sale in favor of a transferee under Batas Pambansa Blg. 185 shall be registered by the
Register of Deeds unless accompanied by a sworn statement showing the following, except:
A. names and addresses of his parents, of his spouse and children, if any;
B. area, location and mode of acquisition of his landholdings in the Philippines, if any;
C. his intention to reside permanently in the Philippines;
D. how the transferee became a foreigner

27. The following person cannot be considered to be a Filipino citizen under the present law
A. Born of Filipino Father
B. A dual citizen under RA 9225
C. Declared a Filipino citizen by the President
D. A naturalized Filipino
28. The PRBRES shall have the power to prescribe guidelines and criteria for this requirement for real
estate service practitioners in consultation with the accredited and integrated professional organization of
real estate service practitioners
A. Continuing Professional Education
B. Continuing Education for Professionals
C. Continuing Education Program
D. Continuing Practitioners Education

29. Referred to also as age of majority, at what age may a person buy and sell property on his or her own
A. 18 years old
B. 18 years old with the consent of the parents
C. 18 years old with legal guardian
D. 21 years old

30. For a couple planning to get married, the property relations where each will own his or her own
properties now and in the future, is referred to as
A. Relative Community of Property
B. Separation of Conjugal Property
C. Conjugal Partnership of Gains
D. Absolute Community of Property

31. In case of non-redemption of the property foreclosed extrajudicially by the bank, when is the deadline
to pay the capital gains tax by the highest bidder
A. Within 30 days from auction sale
B. Within 30 days from registration of certificate of sale
C. Within 30 days from expiration of period of redemption
D. Within 30 days from notarization of the certificate of sale

32. For an applicant for the licensure examination for real estate consultants, he/she must show proof that
he/she has experience as a licensed real estate broker for at least
A. Five (5) years
B. Ten (10) years
C. Fifteen (15) years
D. Three (3) years

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

A. Negotiate a property listed directly with the owner
B. Cooperate with other brokers on property listed even if not licensed
C. Willingly share with other brokers the lessons from his experience and study
D. Inform and criticize among fellow brokers another broker who is not handling the sale properly

34. The 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 as you like them to treat you”

35. The following shall be considered under R.A. No. 9646 as engaging in real estate service practice
A. A person, natural or juridical, who shall directly perform by himself/herself the acts mentioned in Section
3 hereof with reference to his/her or its own property, except real estate developers
B. Any receiver, trustee or assignee in bankruptcy or insolvency proceedings
C. Any person acting pursuant to the order of any court of justice
D. Any person who is a duly constituted attorney-in-fact for purposes of sale, mortgage, lease or
exchange, or other similar contracts of real estate, who require compensation or remuneration

36. A Professional Identification Card shall likewise be issued to every registrant for real estate service
practice. upon payment of the required fees but does not indicate the following
A. registration number
B. date of release by PRC
C. expiration date
D. duly signed by the chairperson of the Board

37. 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 and the owner did not renew the authority
C. The authority of the listing broker has been revoked and the owner gives only non-exclusive listing
D. The owner, without solicitation from the new broker, offers to list the same with the new broker
after the authority of the listing broker has expired or has been revoked

38. The bundle of rights excludes the following as a right of ownership

A. Right to use
B. Right to put up structure beyond restrictions
C. Right to enjoy the fruits on the land
D. Right to possess

39. A sign of a property for sale or lease should not be placed on a vacant parcel of land by more than one
broker and only if
A. The broker has an exclusive listing
B. The sign should be of the same size as the other signs
C. The broker is authorized by the owner
D. The address of the broker is indicated on the sign

40. The following acts of a broker are considered unethical. Which act is considered ethical? for other
persons such as client’s money and similar items.
A. Encouraging the parties to a sale to undervalue the sale
B. Keeping a special bank account, separate and distinct from his own funds, for all monies
received in trust
C. Disclosing his client’s confidential personal information to a fellow broker in order to close the sale.
D. Delaying submission of a formal offer that he had received from a prospective buyer in the hope of
securing a higher offer.

41. There is a Professional Regulatory Board of Real Estate Service, to be chosen from three (3)
recommendees chosen by the Commission from a list of nominees submitted by the accredited and
integrated professional organization of real estate service practitioners consisting of
A. Three (3) nominees per position
B. Five (5) nominees per position
C. Ten (10) nominees per position
D. Two (2) nominees per position

42. A broker has just received from a fellow broker’s client a written offer to purchase a property of his
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 to improve the offer.
B. Call the seller immediately to inform him about the offer and submit 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.

43. Under DTI then, the Code of Ethics covering practitioners is referred to as
A. National Code of Ethics for the Realty Service Practice
B. National Code of Ethics for Practitioners
C. Code of Ethics for the Service Practice
D. Code of Ethics and Responsibilities

44. It is not a ground for the Board not to register and issue a certificate of registration to any successful
examinee after passing the examinations
A. convicted by a court of any criminal offense involving moral turpitude
B. found guilty by his or her association of violation of the code of ethics
C. found guilty of immoral or dishonorable conduct after investigation by the Board
D. has been found to be psychologically unfit.
45. When a licensed broker accepts a listing from a fellow practitioner, the following should not 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 not be passed to a third broker without the knowledge and consent of the listing
broker.

46. For the results of the licensure examination, it shall be released by the Board from the last day of the
examination within
A. Five (5) days
B. Ten (10) days
C. Fifteen (15) days
D. One (1) month

47. 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 which is lower than the actual price.
B. Serving as a witness in court proceedings involving a property owned by his client.
C. Criticizing the acts of another broker who does not know how to handle the transaction.
D. Delaying submission of a formal offer that he had received from a prospective buyer.

48. In case the heirs will just file and pay now the estate tax return of their deceased father who died 10
years ago or sometime 2003, the value of the property of the estate shall be based on
A. Value of the BIR or zonal value upon filing
B. Value at time of death of the Assessor
C. Value at the time of filing in 2014 of the BIR or assessor whichever is higher, at the time of filing
D. Value of based on the BIR or Assessors value whichever is higher, at the time of death

49. In an ad in a newspaper which one of the following newspaper line ads is blatantly unethical?
A. “HOUSE ON A VERY QUIET NEIGHBORHOOD”
B. “WITH 24 HOURS SECURITY GUARDS!”
C. “THE VALUE OF THIS PROPERTY WILL INCREASE IN ONE YEAR!”
D. “COOL WEATHER!”

50. The Board shall also prescribe the essential requirements as to the curricula and facilities of schools &
colleges seeking permission to open academic courses or already offering such courses in real estate
service, in cooperation with the
A. Commission on Higher Education
B. Department of Education and Culture
C. National Association of Real Estate Service Practitioners
D. Philippine Association of Schools and Colleges

51. It is not a subject in the examinations for real estate brokers

A. Condominium concept and other types of real estate holdings;
B. Real estate finance and economics;
C. Basic principles of ecology;
D. Land management and real property laws

52. The real estate broker takes the following steps as a licensed real estate broker. Which action can be
considered unethical?
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.
53. The following applicant is not required to undergo an examination to be given by the Board as provided
for in R.A. No. 9646
A. Real Estate Salesperson
B. Real estate broker
C. Real estate assessor
D. Real estate appraiser

54. Three of the following are tricks employed by unethical real estate brokers when bringing clients to
view their listings. Which one is ethical?
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

55. After a sale is consummated, the broker should not do the following:
A. accept commission from both the seller and buyer without the knowledge of either of the parties
B. assist the buyer to acquire possession and ownership of the real property bought as agreed
C. see to it that both the buyer and seller concluded a fair contract advantageous to both
D. in case called upon to act as a witness, should give testimonies in the most unbiased, honest, truthful
and professional manner.

56. What will be the donor’s tax rate to be paid by a relative if he donates a parcel of land to his fourth
cousin in the net amount of P 12,000,000
A. 20%
B. 30%
C. 15%
D. 10%

57. There are times when a broker has to share his listings with other brokers. In case of sale, the listing
broker should not do the following:
A. share the commission as agreed upon
B. negotiate directly with the client without the consent of the other broker
C. not seek unfair advantage over his fellow broker
D. not criticize publicly the other broker

58. When advertising a property listing, the broker should 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

59. To the ethical broker, the principle of full disclosure dictates that vital information that can affect the
property or the transaction should be disclosed and explained to his client. Which one of the following is
contrary to an ethical disclosure?
A. Changes or planned changes in zoning affecting the property
B. Your opinion of future land values in the vicinity of the property
C. Details of the contract
D. Sale of similar properties in the vicinity

60. The ethical broker always strives to protect his clients’ interests. Which of the following is not ethical
and is not in the best interest of your client/seller?
A. Maintain utmost confidentiality on matters not directly related to the property
B. Strive to be familiar with laws and ordinances on real estate
C. Discuss the negotiating position of your client with the buyer’s broker to hasten the sale
D. Tell your client/seller that his price is too high and give opinion on the fair market value of the property

61. The following common property relations may be agreed upon in the marriage settlement, except
A. Relative Community of Property
B. Separation of Conjugal Property
C. Conjugal Partnership of Gains
D. Absolute Community of Property

62. The National Code of Ethics and Responsibilities under the RESA does not cover the following real
estate practitioner
A. Real Estate Developers
B. Real Estate Assessors
C. Real Estate Salespersons
D. Real Estate Appraisers

63. In case of violation of the Code of Ethics of a broker who is a member of a real estate service
organization, the sanction that may not be imposed
A. Suspension from association
B. Expulsion from association
C. Removal of license by the association
D. Fine imposed by the association

64. Dan and Jean 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

65. In his advertisements, brochures or announcements regarding a property for sale,

he should present the following, except
A. a true picture of the property, its improvements, or rights and interests therein
B. material facts concerning the property
C. whatever liens or encumbrances it may have, if any, and
D. the minimum price the owner would be willing to accept

66. As a real estate appraiser, the appraiser may not undertake to make an appraisal or
render an opinion in the following case
A. If within his field of his experience and competence
B. if he will also be the broker who will sell the property being appraised
C. he obtains the assistance of another practitioner familiar with such type of property or
D. the facts are fully disclosed by the client.

67. The State recognizes the vital role of real estate service practitioners in the social,
political, economic development and progress of the country in the following, but not
A. promoting the real estate market
B. enhanced income from income taxes of practitioners
C. stimulating economic activity
D. enhancing government income from real property-based transactions

68. The policies, resolutions and rules and regulations issued or promulgated by the
Board shall be subject to the review and approval by the
A. Professional Regulatory Commission
B. Professional Regulatory Board of Real Estate Service
C. Professional Regulation Commission
D. Office of the President

69. What will the total real estate taxes to be paid by a lot owner for the year if his land
consisting of 450 sqms. And with a fair market value of the assessor at P6,000 per
square meter is classified as commercial the tax rate is the maximum imposable by the
city
A. P 54,000
B. P 27,000
C. P 10,800
D. P 40,500
70. The Chairperson and the Members of the Board shall, at the time of their
appointment, must possess the following qualification of having been an active licensed
practitioner of real estate service, at the time of his appointment, for at least
A. Five (5) years
B. Ten (10) years
C. Twelve (12) years
D. Fifteen (15) years

71. The chairperson or any member of the Board may be suspended or removed by the
President of the Philippines, upon the recommendation of the Commission and after
due notice and hearing in a proper administrative investigation to be conducted by the
Commission but not on the following ground:
A. Neglect of duty,
B. Abuse of power,
C. Complaint for murder
D. Unprofessional, unethical conduct

72. The certificate of registration to be issued to the real estate service practitioner shall
be valid until
A. Remains in full force and effect until revoked or suspended in accordance with
R.A . No. 9646.
B. Remains in full force and effect until every 3 years
C. Expires every December 31 of each year
D. Remains in full force and effect until revoked by HLURB

73. The Board may, after giving proper notice and hearing to the party concerned,
revoke the certificate of registration and the professional identification card of a real
estate service practitioner, but not on the following ground
A. Procurement of a driver’s license by fraud or deceit;
B. Allowing an unqualified person to practice the profession by using one's certificate of
registration
C. Unprofessional or unethical conduct;
D. Malpractice or violation of any of the provisions of R.A. No. 9646

74. As a real estate appraiser, he should not undertake the following, except
A. render an opinion without careful and thorough analysis
B. render an appraisal report in letter form
C. render the appraisal with a predetermined price
D. render an interpretation without considering all factors affecting the value of the
property

75. No foreign real estate service practitioner shall be admitted to the licensure
examination, be given a certificate of registration or a professional identification card, be
issued a Special/Temporary Permit, or be entitled to any of the privileges under R.A.
No. 9646 and the IRR unless
A. He becomes a dual citizen
B. He is a former natural born Filipino
C. There is foreign reciprocity with his country
D. There is a foreign treaty with his country

76. All real estate brokers and private real estate appraisers shall be required to post an
amount to be determined by the Board, which in no case shall be less than Twenty
thousand pesos (P20,000.00), renewable every
A. One (1) year
B. Two (2) years
C. Three (3) years
D. Until revoked.

77. A capital asset is property held by the taxpayer, whether or not connected with his
trade/business, such as
A. Stock in trade of the taxpayer
B. Other property of a kind which would properly be included in the inventory of the
taxpayer if on hand at the close of the taxable year
C. Property held primarily for sale to customers in the ordinary course of his trade or
business
D. Property used as residence by the taxpayer

78. The owner of a house and lot sold the property owned by him and rented out to
foreigners in the business of leasing in the amount of P4,500,000. The rate of tax on the
sale shall be
A. 1.5%
B. 3.0%
C. 5.0%
D. 6.0%

79. A real estate broker sold a parcel of land in the amount of P5,800,000, inclusive of
the broker’s commission of 5%. If the capital gains tax and documentary stamps tax will
be for the buyer’s account, how much will be the net amount received by the owner
A. P 5,162,000
B. P 5,510,000
C. P 5,075,000
D. P 5,423,000

80. Under the Code of Ethics, the Realty Service Practice is not considered the
following
A. a profession
B. business
C. calling
D. occupation,
81. A BIR large taxpayer with its head office located in Manila sold its parcel of land
located in Batangas City to a buyer from Lipa City but who was doing business in
Lucena. Where should the tax on the sale be paid ?
A. Manila
B. Batangas City
C. Lipa City
D. Lucena

82. How much should the documentary stamp tax be paid on the sale of a parcel of land
whose selling price is P 4,500,000 but the zonal value was P5,000,000 and the fair
market value in the tax declaration was P 3,200,000
A. P 75,000
B. P 67,500
C. P 60,000
D. P 48,000

83. The following is not a power of the Professional Regulatory Board

A. Conduct licensure examinations for the practice of the real estate service profession
B. Prescribe the appropriate, syllabi of the subjects for examination with their tables of
specifications;
C. Issue, suspend, revoke or reinstate, after due notice and hearing, certificates of
registration or professional identification cards for the practice of real estate service;
D. Remove or expel a real estate service practitioner from his association

84. An owner who leases out his house regularly in his business of leasing earns a
monthly rental of P50,000 on one residential house and another P 150,000 per month
on his rentals from his office building. How much will be his total output VAT for the year
?
A. P 216,000
B. P 288,000
C. P 72,000
D. P 240,000

85. The Board shall adopt and promulgate the Code of Ethics and Responsibilities for
real estate service practitioners which shall be referred to as
A. National Code of Ethics for the Realty Practice
B. National Code of Ethics for Practitioners
C. National Code of Ethics for the Service Practice
D. National Code of Ethics and Responsibilities

86. The foreclosed asset of a bank was sold in the amount of P 1,900,00 to the buyer.
What will be the tax rate on the sale of the said asset
A. 1.5%
B. 3.0%
C. 6.0%
D. 5.0%

87. The real estate broker who intends to practice in the City of Makati must also pay
the professional tax to
A. PRC
B. PRBRES
C. Bureau of Internal Revenue
D. City of Makati

88. A real estate broker will be earning a total professional fee in the amount of
P2,500,000, inclusive of VAT. How much will be the net amount to be received by the
broker after deducting the withholding tax if the broker had reported his income would
go beyond P720,000 for the year
A. P 2,250,000
B. P 2,008,929
C. P 1,897,321
D. P 2,125,000

89. The Real Estate Service Act of the Philippines governs the following practitioners,
except
A. Real Estate consultant
B. Real estate assistant assessor
C. Real estate salesperson
D. Real estate dealer

90. An owner sold his house and lot consisting of 300 sqms. for P5,200,000, but based
on the BIR Zonal Values, the lot zonal value was P 8,000 per square meter and
verification with the assessor showed that the fair market value of the lot was P
1,800,000 and the house at P 2,200,000. What will be the basis for the payment of
capital gains tax ?
A. P 5,200,000
B. P 4,600,000
C. P 4,000,000
D. P 2,400,000

91. The maximum interest penalty that may be imposed for unpaid real estate taxes in
2004 shall be
A. 12 months
B. 10 years
C. 36 months
D. Until paid

92. A province or city, or a municipality within the Metropolitan Manila Area, may levy
and annual tax on idle lands at the rate not exceeding five percent (5%) of the assessed
value on the following
A. Residential vacant lot of 1,200 sqms.
B. One hectare of land planted with 60 mahogany trees
C. Lot being disputed among two owners
D. 2 hectares of agricultural land ¾ of which are cultivated

93. As exceptions to the general rule, alien acquisition of real estate in the Philippines is
not allowed in the following case :
A. Acquisition before the 1935 Constitution;
B. Acquisition by hereditary succession ;
C. Purchase by aliens of not more than 40% of the units in a condominium project;
D. Purchase by a former Filipino citizen

94. The assessor put a fair market value of P5,500 per square meter on a 1,000 sqm.
land located in a outside a residential subdivision and used in the business of parking
space. How much is the assessed value of the land if the assessment level of
residential land is 20% and commercial land is 50%
A. P 5,500,000
B. P 1,100,000
C. P 2,750,000
D. P 1,650,000

95. How much will be the quarterly payments for special fund tax will have to be made
by the owner if he owns a house and lot valued by the City Assessor at P2,000,000
where the basic tax rate is 2%
A. P 8,000
B. P 2,000
C. P 4,000
D. P 1,000

96. No real estate salesperson, either directly or indirectly, can negotiate, mediate or
transact any real estate transaction for and in behalf of a real estate broker without first
already P 4,000,000 while the fair market value in the tax declaration at the time of sale
was P 2,300,000. If the transfer tax is ½ of 1%, how much transfer tax shall be paid by
the buyer
A. Taking the examinations as a real estate salesperson
B. Securing an authorized accreditation as real estate salesperson for the real
estate broker
C. Posting the required bond of P 1,000 with HLURB
D. Obtaining a professional identification card

97. During the fall of real estate prices, the owner sold a parcel of land at P3,600,000
but the zonal value then was
A. P 20,000
B. P 18,000
C. P 11,500
D. P 40,000
98. In case the appeal to the Local Board of Assessment Appeals is not in your favor,
where may you bring it up on appeal
A. Regional trial court
B. Central Board of Assessors Appeal
C. Central Board of Assessment Appeals
D. Department of Interior and Local Government

99. There are four professional sectors under the PRC, to which does real estate
service belong to
A. Medical and Health
B. Business, Education and Management
C. Engineering
D. Technology

100. What is the monthly penalty interest on the basic real estate taxes in case one fails
to pay the tax due last year on a lot of 500 sqms classified as commercial and valued by
the assessor at P 2,500 per square meter with a basic tax rate of 2%
A. P 250.00 per month
B. P 12,500.00 per month
C. P 3,000,00 per year
D. P 240.00 per month

----

1. The power to adopt the Code of Ethics and Responsibilities, under the RESA shall be
under the
A. Professional Regulatory Board of Real Estate Service
B. Professional Regulation Commission
C. Accredited and Integrated Professional Organization
D. Professional Regulatory Commission

2. Under the then code of ethics, the realty service is considered the following and not a
A. Profession
B. Business
C. Calling
D. Occupation

3. The definition of real estate service practitioners under the RESA, it does not cover
the following.
A. Real Estate Salesperson
B. Real Estate Consultants
C. Real Estate Appraiser
D. Real Estate Brokerage Partnership
4. Under the code of ethics, it does not include the relation of the real estate service
practitioner to the
A. Public
B. Government
C. Developer
D. Client

5. It is required for a Real Estate Broker to attend Continuing Professional Education for
the reason of
A. Their dealings with each other shall be fair, honest and just
B. The spirit of camaraderie, cooperation and professional relationship of other
practitioners shall be promoted
C. High level of respect relationship with colleagues in the Realty Service Practice shall
be maintained
D. Adequate knowledge, competence, and expertise in real estate development
and management shall be maintained

6. The broker is believed to violated his relation to the ________________ during

undervaluation of the sale.
A. Public
B. Government
C. Client
D. Organization he belongs

7. It is not required for a Real Estate Broker to indicate the Professional License No. in
the following documents
A. Letterhead
B. Advertisements
C. Calling cards
D. Deed of Absolute Sale

8. Under the code of ethics, it is not required for a real estate broker to secure the
following before engaging in practice
A. Payment of Professional Tax
B. Professional Identification Card
C. Certificate of Registration with PRC
D. Postal I.D.

9. The following act should not be done by the broker and is unethical
A. Split commission with an unlicensed broker
B. Share commission as agreed
C. Agree to revise commission sharing
D. Accept arrangement for reduction in commission as agreed
10. The owner requested the broker on how to reduce the capital gains tax to be paid. It
is unethical for the broker to recommend the following
A. To pay the capital gains on time.
B. To pay transfer tax to the city treasurer
C. To pay in manager’s check to the bank
D. To undervalue the sale price

11. The practitioner must display the following in their place of business as provided in
the Code of Ethics
A. AIPO Receipts
B. Surety Bond
C. Professional Identification Card
D. Certificate of Registration

12.The power to adopt the Code of Ethics and Responsibilities, under the RESA shall
be under the
A. Professional Regulatory Board of Real Estate Service
B. Professional Regulation Commission
C. Accredited and Integrated Professional Organization
D. Professional Regulatory Commission

13. Under the then code of ethics, the realty service is considered the following and not
a
A. Profession
B. Business
C. Calling
D. Occupation

14. The definition of real estate service practitioners under the RESA, it does not cover
the following.
A. Real Estate Salesperson
B. Real Estate Consultants
C. Real Estate Appraiser
D. Real Estate Brokerage Partnership

15. Under the code of ethics, it does not include the relation of the real estate service
practitioner to the
A. Public
B. Government
C. Developer
D. Client
16. It is required for a Real Estate Broker to attend Continuing Professional Education
for the reason of
A. Their dealings with each other shall be fair, honest and just
B. The spirit of camaraderie, cooperation and professional relationship of other C.
practitioners shall be promoted
C. High level of respect relationship with colleagues in the Realty Service Practice shall
be maintained
D. Adequate knowledge, competence, and expertise in real estate development
and management shall be maintained

17. The broker is believed to violated his relation to the ________________ during
undervaluation of the sale.
A. Public
B. Government
C. Client
D. Organization he belongs

18. It is not required for a Real Estate Broker to indicate the Professional License No. in
the following documents
A. Letterhead
B. Advertisements
C. Calling cards
D. Deed of Absolute Sale

19. Under the code of ethics, it is not required for a real estate broker to secure the
following before engaging in practice
A. Payment of Professional Tax
B. Professional Identification Card
C. Certificate of Registration with PRC
D. Postal I.D.

21. The following act should not be done by the broker and is unethical
A. Split commission with an unlicensed broker
B. Share commission as agreed
C. Agree to revise commission sharing
D. Accept arrangement for reduction in commission as agreed

22. The owner requested the broker on how to reduce the capital gains tax to be paid. It
is unethical for the broker to recommend the following
A. To pay the capital gains on time.
B. To pay transfer tax to the city treasurer
C. To pay in manager’s check to the bank
D. To undervalue the sale price
23. The practitioner must display the following in their place of business as provided in
the Code of Ethics
A. AIPO Receipts
B. Surety Bond
C. Professional Identification Card
D. Certificate of Registration

Legal Aspects of Sales, Lease and Mortgage/ Family Code/ Property Management

1. When the deceased registered owner is survived as a sole heir, the estate of
the former maybe transferred to a latter with the execution of a document is
known as:

a. Principle of Infiltration
b. Extra-Judicial Settlement of Estate
c. Will
d. Declaration of Ownership
e. Affidavit of Adjudication

2. Refers to a group of people or homogenous societies identified by self-

ascription and ascription by other, who have continuously lived as organized
community:

a. Indigenous Peoples
b. Ancestral Peoples
c. Native Peoples
d. None of the above

3. The Statute of Frauds applies only to:

a. Partial fulfilled contract

b. Completely fulfilled contract
c. Executory contracts
d. None of the above

4. A lease contract providing that the lessee can stay in the premises for as long
as he wants and for as long as he can pay the rentals and its increases:

a. Perpetual Lease
b. Sublease
c. Long term lease
d. None of the above
5. Finance is the of science of__________________.

a. Collection of money
b. Income
c. Management of money
d. Giving of money

6. All are on-site activities in a Compliance Audit except:

a. Conducting an opening meeting

b. Collecting audit evidence through gathering information, observations and interviews,
and sampling
c. Evaluating audit evidence
d. Conducting a closing meeting

7. Select which are the obligations of a lessee:

a. To pay the price of the lease

b. To stipulate or make an agreements
c. To pay the expenses for the deed of the lease
d. All of the above

8. In the mode of acquiring ownership, actual possession of land in opposition to

all other claimants is called:

a. Accretion
b. Prescription
c. Adverse possession
d. All of the above

9. Which of the following is the correct definition of Compliance Audit:

a. it is process of verifying whether the money of an institution is properly used

b. a systematic, independent and documented verification process of objectively
obtaining and evaluating audit evidence to determine whether specified criteria are met
c. a systematic and unbiased verification whether the terms of the brokerage contract
are met
d. the government’s inspection of compliance with legal requirements

10. Notice that intended to constructively advise, or warn all people who deal with
the property that they so deal with it at their own risk:

a. Notice of Lis Pendens

b. Notice of lawsuit
c. Caveat
d. None of the above

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 in Phil. Law on succession and inheritance
c. A humanitarian institution
d. The estate of deceased
e. A charitable, religious and education institution

12. Juan and Maria are live-in partners. Maria donated a parcel of land to Juan.
What is the status of the contract?

a. Voidable
b. Void
c. Unenforceable
d. Valid

13. Spouses have the freedom to choose the regime that will govern their
properties by marriage settlement or pre-nuptial agreement, such as, but not
include:

a. Absolute community
b. Conjugal partnership
c. Absolute separation
d. Agent

14. In a defective contracts, the defect is caused by lack of form, authority, or

capacity of both parties not caused by prescription is:

a. Unenforceable
b. Rescissible
c. Voidable
d. None of the above

15. Property exclusively owned by the husband is called:

a. Chattel c. Succession
b. Paraphernal d. Capital Property
16. All are special formalities of a notarial will except:

a. Subscription
b. Attestation Clause
c. Jurat
d. Acknowledgment

17. Ecology is covers the study of ___________.

a. population, community, ecosystem c. ecosystem, organism, inhabitants

b. ecosystem, population, inhabitants d. inhabitants, population, community

18. Lists of all the activities, processes and discharges to be addressed during
the audit including a lists of elements to be audited and the type of observations
to be made to assess compliance.

a. Master list
b. Shortlist
c. Enlist
d. Checklist

19. Instruments issued to an auditee pursuant to the legislation. These include

approvals, licenses, notices, permits and certificates of registration:

a. Legislative instruments
b. Legal instruments
c. Statutory instruments
d. Audit instruments

20. Purchaser of the thing leased can terminate the lease except in the following
conditions:

a. Lease is recorded in the Registry of Deeds

b. There is stipulation in the contract of sale that purchaser shall respect the lease
c. Purchaser knows the existence of the lease
d. a and b

21. The following occupations are required by law to be registered with the
Professional Regulations Commission, except:

a. real estate consultant

b. real estate broker
c. real estate appraiser
d. property manager

22. Refers to a title formally recognizing the right of possession and ownership of
Indigenous Peoples over their Ancestral Domains identified and delineated:

a. Native Title
b. Certificate of Ancestral Domain Title
c. Certificate of Ancestral Lands Title
d. None of the above

23. Choose which are the characteristics of a mortgage contract:

a. Real d. Unilateral e. All of the above

b. Accessory c. Subsidiary

24. Stipulation whereby the thing mortgaged, shall automatically become the
property of the creditor in the event of non-payment of the debt within the term
fixed:

a. Pactum Non Aliendo

b. Pactum Commissorium
c. Pactum de Aliendo
d. None of the above

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

a. 4.5/9
b. 5.5/9
c. 1/9
d. 1/ 4.5
e. 3.25/9

26. In the absence of a prenuptial agreement, the following are excluded from the
community property except:

a. Gratuitous title by other spouse; unless otherwise provided by donor

b. Fruits as well as income of properties mentioned in choice (a); unless otherwise
provided by donor
c. Property for personal and exclusive use of either spouse
d. Jewelry for personal and exclusive use of either spouse
e. Property acquired before the marriage and the fruits as well as the income, if any of
such property

27. Husband and wife cannot 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 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

28. In a defective contracts, the defect is caused by lack of essential elements or

illegality is:

a. Decree of legal separation

b. Annulment or declaration of nullity of marriage
c. Death of either spouses
d. Extra-judicial separation of property

29. In a defective contracts, the defect is caused by lack of essential elements or

illegality is:

a. Voidable
b. Unenforceable
c. Void
d. None of the above

30. An act allowing illegitimate children to use the surname of their Father,
amending for the purpose Article 176 of EO No.209, otherwise known as the
“FAMILY CODE OF THE PHILIPPINES”:

a. RA 9775
b. RA 9255
c. RA 9335
d. RA 9252

31. The vendor is liable to the vendee for any hidden faults or defects in the thing
sold is called:

a. Adverse claim
b. None of the above
c. Caveat Venditor
d. Caveat Emptor

32. It is a contract entered into by the future spouses fixing the matrimonial
property regime that should govern during the existence.

a. Marriage Contract
b. Marriage Ceremony
c. Marriage Settlement
d. Marriage License
33. What is Legitime?

a. An inherited property
b. An acknowledged heir
c. Reserved property for compulsory heirs
d. Child born out of wedlock
e. A process of Legimitation

34. What is not an effect of legal separation?

a. The spouses shall be entitled to live separately from each other

b. The absolute community or conjugal partnership shall be dissolved and liquidated
c. The offending spouse shall be disqualified from inheriting from the innocent spouse
by intestate succession and the provisions in favor of the offending spouse made in the
will of the innocent spouse shall be revoked by operation of law.
d. The spouses are not considered married anymore

35. An act whereby a person is permitted, with the formalities prescribed by law,
to control to a certain degree the disposition of his estate to take effect after his
death.

a. Holographic will
b. Notarial will
c. Will
d. Succession

36. After the lapse of said period, the annotation of adverse claim may be
cancelled upon filing of a:

a. Appeal
b. Plea
c. Verified petition
d. None of the above

37. A law that provides that certain contracts/agreements must be in writing in

order to be enforceable:

a. Statute of Frauds
b. Obligation Contracts
c. Statue of Obligation
d. None of the above
38. Omission in the testator’s will of one, some, or all of the compulsory heirs in
the direct line, whether living of the execution of the will or born after the death of
the testator.

a. Preteriton
b. Preterition
c. Pretereton
d. Pretenton

39. Today property management emerged as a _________________science.

a. financial
b. multi-disciplinary
c. real estate
d. managerial

40. Which of the following does not form part of on-site activities in a Compliance
Audit:

a. Planning and preparing for the audit

b. Collecting background information
c. Compiling checklists
d. All of the above

41. Which is the essential requisites of a contract?

a. Consent of the contracting parties

b. Object certain w/c is the subject matter of the contract
c. Cause or consideration of the obligations
d. of the above

42. Date of effectivity of Family Code:

a. 3 August 1988
b. 3 August 1998
c. 3 August 1978
d. 3 August 1980

44. A special contract of permanent union between a man and a woman entered
into in accordance with law for the establishment of conjugal and family life. Its
nature, consequences and incidents are fixed by law and cannot be the subject of
stipulation.

a. Void contract
b. Voidable contract
c. Marriage contract
d. Marriage Ceremony