Compiled by Cesar E.

Santos Real Estate Academy

With Proposed Answers

1. In the absence of a pre nuptial agreement, the ff. are excluded from the community property,
except:
a. Property acquired during the marriage by gratuitous title by either spouse; unless
otherwise provided by the donor
b. Fruits as well as income of property mentioned in letter (a); unless otherwise provided by
the donor
c. Property for personal and exclusive use of either spouse
d. Jewelry for personal and exclusive use of either spouse (Civil Code)
e. Property acquired before the marriage by either spouse who has legitimate descendants
by a former marriage and the fruits as well as the income, if any of such property

2. The areas reserved for parks, playgrounds and recreational areas of a subdivision projects are:
a. exclusively owned by the owner-developer
b. co-owned by the developer and purchasers of subdivision lots
c. Non alienable public lands (beyond the commerce of man)
d. None of the above

3. The term of a condominium corporation is

a. 50 years
b. Co-terminus with the duration of the condominium project
c. 25 years
d. Subject to the agreement between the condominium corp. and the unit owner

4. A land survey always uses a point reference. It could be a

a. Bureau of lands Location Monument
b. Provincial Boundary Monument
c. Bureau of Lands Barrio Monument
d. All of the above (sometimes called tie point)

5. If Comparative Approach to substitution; Income Approach is to

a. Reproduction
b. Progression
c. Anticipation
d. Cost Contribution
6. Area required to be reserved for roads, alleys and open spaces in a subdivision with an area of
one (1) hectare or more.
a. Twenty percent (20%) of the gross area
b. Thirty-five (35%) of the gross area
c. Twenty-five percent (25%) of the gross area
d. Thirty percent (30%) of the gross area

7. The type of listing that gives the real estate broker the greatest protection
a. Exclusive agency listing
b. Net Listing
c. Open Listing
d. Exclusive Right to Sell Listing

8. The principle of real property values that maximum value is realized when a reasonable degree of
homogeneity is present sociological as well as economic
a. Principle of Highest and Best Use c. Principle of Conformity
b. Principle of Progression d. Principle of Balance

9. An estimate and opinion of value

a. Computation
b. Cost estimation
c. Appraisal (can only be done by a licensed appraiser)
d. Evaluation

10. In subdivision marketing, the sale is considered a paid-up sale when the buyer paid the
a. Required down payment
b. Reservation deposit
c. 25% of selling price
d. Option money deposit

11. Per BIR Ruling No. 28-98, the ground floor of a condominium project shall be classified as
commercial and an additional rate shall be added to an established residential zonal value. The
rate to be added is.
a. Ten percent (10%)
b. Fifteen percent
c. Twenty percent
d. Twenty five percent
12. Under the law on expropriation, in case of conflict of just compensation, the concerned
government agency expropriating the private property is required to initially pay an amount
equivalent to One Hundred percent (100%) of ________ of the lot.
a. Offered amount
b. Appraised Value
c. Zonal Value
d. Assessed Value

13. For a space to be considered a condominium unit, it must

a. Be encompassed by the interior surface of the walls, floors, ceiling..
b. Be managed by a condominium corporation
c. Be susceptible of independent use and ownership
d. Be unencumbered by any restriction

14. When the loan is fully amortized by equal monthly payments, the amount applied to the
principal
a. and interest remains constant
b. decreases while interest payment increases
c. increases while interest payment decreases
d. increase by a constant amount

15. X bought a subdivision lot valued at P1,000,000.00 and paid thirty percent (30%) downpayment,
The balance is to be amortized for 60 months at twenty-one (21%) interest per annum. The
amortization factor is .02705 based on the above, the first monthly amortization carried an
interest equivalent to
a. P6,685.00 SP – DP = Balance x 1.75% x 1 month = P12,250.00
b. P12,250.00 P1M – P300K = P700K x 1.75% x 1mo. =P12,250.00 I= Pr t
c. P17,500.0 M.A. = 700k x 0.02705 = P18,935.00
d. P18,935.00
e. P19,850.00

16. In case of foreclosure sale where right of redemption is not exercised by the mortgagor-owner,
who pays the capital gains tax?
a. owner-mortgagor
b. Buyer of the property
c. Creditor-bank (statutory seller)
d. none of the above
17. The rate of return earned by an investor which does not include allowance for capital recovery
(recapture rate) is
a. recapture Value of land = income / interest rate (if land only)
b. Cash flow Value of land and building = income / overall rate
c. Discount rate Overall rate = interest rate + recapture rate
d. Interest rate

18. The ratio that expresses the relation between gross income and sales price of a property is
a. Effective Gross income
b. Capitalization
c. Recapture
d. Gross Income Multiplier Selling Price / Effective Gross Income = GIM
P50M / P5M = 10 (comparable)

19. Title to an inherited property may be transferred to the sole heir upon payment of estate tax and
execution and registration of a legal document called
a. Extra-Judicial Settlement of Estate
b. Affidavit of Adjudication (to adjudicate is to settle by law)
c. Extra-Judicial Partition of Estate
d. Affidavit of Consolidation

20. It is a contract granting a person the privilege to buy or not to buy certain objects at anytime with
the agreed period at a fixed price and the consideration is considered not a part of the purchase
price.
a. Reservation contract
b. Earnest money contract
c. Option contract
d. Contract to sell

21. It is an encumbrance imposed upon an immovable for the benefit of another immovable
belonging another.
a. Accessibility right
b. Easement ( in general)
c. Right of way (ROW is an example of easement)
d. Right to pass
22. X, owner of a 10 door apartment, rented a unit to Y for a period of one (1) year. Under the law of
lease, Y, without the consent of X may perform any of the following acts except
a. sublease the unit (if the contract is silent on subleasing, then the lessee may sublease)
b. assign his rights
c. suspend payment if X fails to make the necessary repairs
d. demand reimbursement constituting one half of the value of the useful Improvement
introduced in good faith from X

23. A special power to sell a realty carries with it all the following, except the
a. power to find a purchaser
b. power to fix the term of the sale
c. power to sell directly
d. power to sell on credit
e. power to sell only for cash

24. Under Republic Act No. 7279 a developer of a subdivision project in 1996 is required to develop
20% of the project for
a. socialized housing ( 20% maybe based on gross area, or based on project cost)
b. specialized housing
c. roads and open spaces
d. economic housing

25. The following liens can be found at the back of the title, except
a. Real estate taxes liens
b. Judgment liens
c. Mechanic’s liens
d. Statutory liens (like unpaid realty taxes – superior to any other kind of lien though not registered)
e. Mortgage liens

26. It is a method of estimating property’s value based on a comparison of the subject property
with similar properties within the vicinity
a. Market Data Approach (sometimes called sales comparison approach)
b. Cost Approach
c. Income approach
d. Area Approach

27. It refers to an imaginary line connecting point “1” (point of beginning) of any given lot plan to a
reference point.
a. Boundary line
b. cardinal direction
c. Azimuth
d. tie line
28. A land survey always uses a reference point which could be: DUPLICATE
a. Bureau of Lands Location Monument
b. City Boundary Monument
c. Municipal Location Monument
d. Provincial Boundary Monument
e. Any of the above

29. Amendment to the master deed of a condominium project approved by simple majority of
registered unit owners. Majority is based on:
(key words)
a. Number of condominium units Guide to - More than 30% if untenantable
b. Floor area of ownership to simple - More than 50% if uneconomical
c. Total area of condominium units majority : - More than 70% if to be condemned
d. Any of the above

30. In case of sale of real property paid under deferred payment basis, the payment of the
documentary stamp tax shall accrue upon.
a. Notarization of transfer document (on or before the 5th day of the ff. month – basis is notarization month)
b. Payment of the full amount
c. Execution of the Deed of Absolute Sale
d. Execution of Contract to Sell

31. A principle of ownership which mandates property owners to use their property in a manner that
will promote not only their interest but also the general welfare.
a. Principle of social justice
b. Principle of progression
c. Stewardship principle (under Regalian Doctrine the State owns our property - we are merely stewards)
d. Principle of conformity

32. Under BIR Revenue Regulation No. 17-2003, the seller of family home who failed to utilize the
proceeds of the sale to acquire a new residence within 18 months from the sale shall be assessed
additional deficiency capital gains inclusive of penalties and:
a. 10% interest per annum
b. 25% interest per annum
c. 15% interest per annum
d. 20% interest per annum (Basic + Surcharge + Interest + Compromise)
33. Unless extended for justifiable cause, the period of completion of development of a subdivision
project, counted from issuance of license to sell, is:
a. Six months
b. Twenty four months
c. Twelve months (Area to be developed in 1 yr : 10 hectares ( 1 phase) or below)
d. Eighteen months

34. The rate of return earned by an investor which does not include allowance for capital recovery is:
a. Discount rate
b. Investment rate Interest rate + Recapture rate = Overall Rate (Cap. Rate)
c. Interest rate NOI /Interest rate= Land Value (Capitalization in perpetuity)
d. Recapture rate NOI / OAR = Land & Bldg. Value (Capitalization in definite period)

35. Has ruled that all agricultural lands that are already classified as commercial, industrial or
residential before June 15, 1988 no longer need any conversion clearance even if it is still devoted
to agricultural activity
a. Republic Act 6657
b. DOJ Opinion No. 44, SERIES OF 1990
c. Republic Act 7279
d. PD27

36. During the entire year of 2014, total receipts from the lease of 30 residential units is
P2,200,000.00.How much is the output tax for the year 2014?
a. P220,000.00 (P2.2M / 12mos. / 30 units = P6,111.11 rent per mo.)
b. P900,000.00
c. P200,000.00
d. P600,000.00
e. None of the above (P12,800.00 monthly rental and below – exempted starting from jan 1, 2012)

37. Unpaid real property tax is subject to 2% per month interest, up to a maximum period of
a. 12 months
b. until paid
c. 24 months
d. 36 months

38. Filipino citizens can acquire agricultural lands by patent under 1987 Constitution of the public
domain not exceeding:
 a. Five hectares 1935 Constitution - 24 hectares (30 years possession, bad faith)
b. 3 hectares 1987 Constitution - 12 has. (free, homestead or sales patents)
c. Seven hectares RA 10023 - 200sqm, 500sqm, 750sqm and 1,000sqm
d. Ten Hectares (10 years occupancy + 10 years realty tax)
e. Twelve hectares

39. A former natural-born Filipino citizen can acquire urban land for business purpose not exceeding
a. 1,000 sq. m. ( Residential urban BP 185)
b. 3 hectares (Business, rural, RA8179)
c. 10,000 sq. m. (Residential rural, BP 185)
d. 5,000 sqm ( Business, urban, RA8179)

40. Under the Pag-Ibig loan program, the term monthly compensation refers to the applicant’s
a. Basic income plus allowance per month
b. Net disposable Income per month
c. Fund salary which is the basis of monthly contribution
d. Gross income per month including other income

Example: P5k x 2% = P100.00 employer’s share

41. It is a legal principle that if at the end of the lease period the lessee continues occupancy with the
acquiescence of the lessor for 15 days and without notice to vacate, it is understood that there is
an implied new lease.
a. Pactum de non aliendo - For mortgage (null and void stipulation)
b. Pacto de retro - Redemption: 10yrs if stipulated; 4yrs if not
c. Pactum commissorium - For mortgage (null and void stipulation)
d. Tacita reconducta - For lease

42. An authority given by the developer to a broker to look for a supplier of backfilling materials who
shall be paid with developed lot is:
a. Procurement agency
b. Sales agency
c. General brokerage
d. Exchange agency ( sometimes called X Deal)

43. An agreement where the consideration of a contract is deposited with a third party who is
authorized to release said consideration to the seller after the latter has compiled with certain
condition is:
a. Option
b. Hold-over clause
c. Escrow ( Parties : Seller, buyer, escrow agent)
d. Contract to sell
44. Under the Pag-ibig housing loan program, the loan to value ratio for socialized housing loan is:
a. 70% of appraised value - SP is P450K ; Loan value is P450K; Interest – 4.5% (affordable housing)
b. 100% of appraised value - under Circular 312 fixed for 10 yrs
 c. 80% of appraised value - Loan to value ratio - 100% of AV
d. 90% of appraised value - Lot component – only 40% of SP or P160K

45. Under the Pag-ibig housing loan program, the maximum loan value for socialized housing is:
a. P300,000.00
b. P450,000.00
c. P500,000.00
d. P600,000.00

46. Under the Pag-ibig housing loan program, the maximum loan paying period is:
a. 20 years
b. 25 years
c. 30 years or (70yrs - present age but not to exceed 30yrs)
d. 35 years

47. Under the Pag-ibig housing loan program, if a 65-year old loan applicant has the capacity to pay
and insurable, the maximum paying period is only:
a. 3 years
b. Not qualified
c. 5 years to pay ( at age 70 loan should be retired or fully paid)
d. 10 years to pay
PAG-IBIG FUND AS OF JAN. 2014

48. Under the Pag-ibig housing program, ____ percent of the net disposable income(NDI) per month
of the loan applicant should be allotted to monthly amortization of the loan. PASSE’
a. 20%
b. 30%
c. 40% (not applicable anymore, from 30% to 35% of gross income now) Loan of P1250,000 – 35%
d. 50% Loan over P1250,000 – 30%

o Affordable Housing Loan (Ref: Circular No. 312 , July 2, 2012)

o Loan Amount Required Contribution
 P500K and below P200.00
 Over P500K to P600K 250.00
  Over P600K to P700K 300.00
 Over P700K to P750K 350.00

o Loan to Appraisal Ratio (Circular 312)- affordable

 100% - for loans up to P450K (socialized housing)
 90% - Over P450K to P750K (economic housing)

o Loan to Appraisal Ratio (Circular 310)- regular

 90% - for loans of P1,250,000.00 and below
 80% - for loans over P1,250,000.00 to P6M

o Loan Amortization Based on Income (Circular 312)

 Monthly amortization for loans of P750K and below :
 should not exceed 35% of Gross Mo. Income

 NOTE : Under Circular No. 310 dated June 1, 2012,

monthly amortization is based on the following:

 For loans of P1,250,000.00 and below:

o Not to exceed 35% of Mo. Gross Income

 For loans over P1,250,000.00 up to P6M

o Not to exceed 30% of Mo. Gross Income

o Loan Entitlement Based on Monthly Income

 For NCR Applicants
 Required Mo. Income
o Up to P15K per month
 P450K loan and below
o Up to P17.5K per month
 P750K loan and below

 For Regional Applicants

 Required Mo. Income
o Up to P12K per month
 P400K loan and below
o Up to P14K per month
 P750K loan and below

 Interest Rates
 P450K and below - 4.5% fixed for first 10 years
 P750K and below - 6.5% fixed fort first 10 years
 After 10 years, a maximum increase of no more than 2%
  Purchase of vacant lot allowed ( since Circular 247 April 2009)
 Fully developed
 Not exceeding 1,000 sqm. but not below 28sqm
 Within a residential area
 Paying period - 5 years to 30 years

49. Maximum loan to a qualified applicant under the Pag-ibig loan program is:
a. P1,500,000.00
b. P2,000,000.00
c. P3,000,000.00..
d. P4,000,000.00 ( now it is P6 MILLION)
----------------------------------------------------------------------------------------------------

50. A contract where real estate is hypothecated to secure an obligation where the creditor is given
the right to possess the property and collect the fruits thereof is known as:
a. Equitable mortgage
b. Blanket mortgage
c. Real estate mortgage (possession of property is still with the mortgagee)
d. Antichresis (the loan is called turn-key loan)

51. If a deceased owner of a land died intestate without any debt or obligation, the document to be
executed to transfer title to the sole heir is:
a. Extrajudicial settlement of estate
b. Deed of Donation
c. Affidavit of adjudication
d. Deed of conveyance

52. A former natural born Filipino citizen may in addition to acquiring residential land under B.P. 185
may still acquire land for business or other purposes under R.A. 8179 provided the area does not
exceed
a. One (1) hectare of urban land or 2 hectares of rural land
b. 5,000 square meters of urban land or 3 hectares of rural land
c. 5,000 square meters of urban land or 5 hectares of rural land
d. 1,000 square meters of urban land or 3 hectares of rural land

53. The rate of real estate tax in municipalities within Metro Manila is not more than: PATEROS
a. One-half percent of assessed value
b. Two and a half percent of assessed value
c. One percent of assessed value (if province)
 d. Two percent of assessed value (if Metro Manila)

54. In payment of estate tax, an allowed deduction to the gross estate of a decedent is funeral
expense which is:
a. 5% of gross estate or P200,000.00 whichever is lower
b. 5% of gross estate or P200,000.00 whichever is higher
c. 10% of gross estate or P200,000.00 whichever is lower
d. 10% of gross estate or P200,000.00 whichever is higher

55. After a Deed of Absolute Sale was made, signed and notarized when should the Documentary
Stamp Tax on sale of real property be paid?
a. within 24 hours from date of sale
b. within 30 days from date of notarization
c. within 10 days after the close of the month of notarization
d. within 5 days after the close of the month of notarization

56. Spouses who were married after the affectivity of the Family Code (August 3, 1988) without any
pre-nuptial agreement shall be governed by:
a. Conjugal partnership of gains (with pre-nuptial)
b. Absolute separation of property (with pre-nuptial)
c. Absolute community of property (without pre-nuptial or default)
d. None of the above

57. Under the rule of conflict of interest, the following persons are disqualified to become Lessee,
except:
a. Lawyers with respect to property of their clients under litigation which they take part.
b. Executors and administrators of properties
c. Husband and wife when there is separation of property in marriage settlement and
when there is judicial separation of property
d. Guardian with respect to property of ward under guardianship

58. The priority right of a tenant to buy the land located is an urban land reform area is known as:
a. Tenant’s possessory right
b. Tenant’s retention right
c. Tenant’s incremental right
d. Tenant’s right of first refusal (good faith, 10 years occupancy, if the owner is selling the land)

59. A petition may be filed by one or more unit owners of condominium project when damage to the
project has rendered one-half or more of the units untenantable and unit owners holding more
than ____ percent interest in the common areas are opposed to repair or restoration of the
project:
 a. 30% simple majority basis: per unit or per floor area
b. 60% more than 30% - untenantable
c. 40% more than 50% - obsolete, uneconomical
d. 50% more than 70% - condemnation

60. The capital gains tax due on the sale of P2,000,000.00 property with P500,000.00 initial payment
is:
a. P100,000.00
b. P30,000.00 P500K / P2M = 25% therefore, installment sale
c. P120,000.00 P500K x 6% = P30K
d. P 20,000.00

61. The best evidence of fee simple ownership is a Torrens Title because it is:
a. Imprescriptible
b. binding against the whole world (Sir Robert Richard Torrens – 1903)
c. indefeasible
d. superior than tax declaration
e. all of the above

62. Under R.A. 8791, the maximum redemption period after extrajudicial foreclosure of a mortgage
executed by a corporation in favor of the bank is:
a. 3 months (OR upon registration of Certificate of Sale whichever comes first )
b. 6 months
c. 12 months
d. Before the court approve the sale

63. A clause used in leases and mortgages that cancel specified right upon the occurrence of a certain
condition, such as cancellation of mortgage upon repayment of mortgage loan:
a. Accelaration Clause
b. Defeasance Clause
c. Automatic Redemption Clause
d. Hold over Clause

64. In sale with assumption of mortgage, the basis of the documentary stamp on the sale is:
a. the down payment
b. the contract price (SP less Mortgage Assumed = Contract Price)
c. the selling price
d. the mortgage assumed (if DST on mortgage)

65. Under R.A. 6732, administrative reconstitution of lost or destroyed original copies of certificates
may be availed of when the lost or destroyed certificates in the registry of deeds consist of at
least:
a. 10% of all titles in the registry (but not less than 500 titles)
 b. 5% of all titles in the registry (R.A.26 is for judicial reconstitution)
c. 20% of all titles in the registry
d. 30% of all titles in the registry

66. To avail of exemption from capital gains in the sale of a family home, the seller is required, among
others, to notify the BIR through a prescribed form of his intention to avail of the exemption. The
notice must be filed within: ( SWORN DECLARATION OF INTENT )
a. 15 days from the date of sale
b. 18months from the date of sale
c. 30 days from the date of sale ( within 30 days also from date of purchase)
d. 45 days from the date of sale

67. The documentary stamps for the Donor’s Tax shall be paid on:
a. After 30days from notarization of Deed
b. Within 30 days from notarization of the Deed
c. Within 30 days from date of execution of the Deed
d. Donation is not subject to DST ( no DST also on estate tax)

68. When the interest of participation of condominium unit owners in the common area is
proportionate, the formula applied is:
a. Unit area divided by total area of the common area
b. Unit area divided by total area of all condominium units
c. Unit area divided by total area of all condominium units and common area
d. Unit area divided by total floor area of condominium building

69. Under PD 957, total refund to buyer for developer’s failure to complete the development within
the reglimentary period is equivalent to:
a. 50% of total payment inclusive of amortization interest less penalty interest
b. 50% of total payment inclusive of amortization interest and penalty interest
c. 100% of total payment inclusive of amortization less penalty interest
d. 100% of total payment less penalty plus legal interest

70. In the cost approach to value, physical deterioration is estimated by the formula:
a. Economic life divided by chronological age
b. Chronological life divided by economic life ( Accrued Dep. = Eff. Age / Eco. Life )
c. Economic life divided by effective age ( Accrued Dep. = Eff. Age/ EA + Rem. Useful Life )
d. Effective age divided by economic life

71. In appraisal of an old building, economic life is the sum of :

a. Actual age plus remaining physical life
b. Actual age plus remaining economic life
c. Effective age plus remaining economic life
 d. Effective age plus remaining physical life

72. In appraisal, the difference between appraised value and net book value of the property is called:
a. Increase in asset value
b. Unearned increment
c. Increase in owners’ equity
d. Earned increment

73. The principle of value which states that the value of a property tends to be enhanced when there
is reasonable homogeneity in use:
a. Principle of Highest and Best Use
b. Principle of Increasing Return
c. Principle of Conformity
d. Principle of Progression

74. The law that reverted the nature of Pag-IBIG Membership to mandatory to all SSS & GSIS
members earning at least P4,000.00 a month.
a. Republic Act Act 7742
b. Pres. Decree 1530
c. Pres. Decree 1752
d. Executive Order No. 90

75. A building is depreciated at 2.5% per year on a straight-line basis. What is the estimated useful
life of the building
a. 30 years
b. 50 years
c. 40 years ( 100% / 2.5% = 40 yrs. )
d. 60 years

76. Several houses valued at P1,000,000.00 and P2,000,000.00 were built in an area where an
existing house Valued at P300,000.00 is located. As a result , the value of the latter increased.
The real estate principle of value that applies to this situation is called the principle of:
a. substitution
b. progression
c. non conformity principle
d. regression

77. The listing and selling brokers in a real estate transaction split the commission equally. If the
commission rate is 6% and the selling broker received P36,000.00. What is the selling price of the
property?
a. P3,600,000.00
b. P800,000.00
c. P600,000.00
d. P1,200,000.00 (P36,000 / 3% = P1,200,000.00)
78. Capital Gains Tax on the sale of real estate classified as capital asset is a/an:
a. Creditable tax on the sale
b. Deductible item from income tax
c. Expanded withholding tax
d. Final withholding tax

79. The real estate broker is usually authorized to do all of the following acts, except:
a. advertise the listing
b. cooperate with other brokers
c. Place “for sale” sign on the property
d. Bind the principal in a contract

80. When a property is sold to 2 or more buyers, the property goes to:
a. Buyer in good faith who first registered the sale with Register of Deeds
b. Buyer who pays the highest price
c. Buyer who was first in possession
d. None of the above

81. The position of trust assumed by the broker as an agent for the principal is describe as:
a. trusteeship
b. code of conduct
c. confidential
d. fiduciary relationship

82. If the property is an ordinary asset, what is the applicable tax?

a. Capital Gains Tax
b. Excise Tax
c. Creditable Withholding Tax
d. Percentage Tax

83. Essential requirements of a Contract of Sale.

a. Consent or meeting of the minds of buyer and seller
b. Object or subject matter
c. Cause or consideration
d. All of the above

84. A stipulation which authorizes the mortgagee to appropriate the property as his own upon failure
of the debtor to fulfill the principal obligations. This is void and of no legal effect.
a. Pactum Commisorium
b. Res Nullius
c. Pactum De Non Aliendo
d. Pacto de Retro Sale
85. The type of loan wherein the lender has some or complete control over the project and the
income for a certain period, part or all of which is assigned to him to amortize the project, is:
a. Straight Loan
b. Amortizing Loan
c. Flat Loan
d. Turn Key Loan - (Antichresis) Possession, fruits and realty tax

86. The best evidence of ownership is:

a. Transfer Certificate of Title
b. Possession
c. Tax Declaration
d. Realty Tax

87. The Seller realized a 30% gross profit over his cost. If the property is sold at P1,950,000.00, the
cost is:
a. P1,365,000.00 100% + 30% = 130%
b. P1,350,000.00 P1,500,000 + P450,000 = P1,950,000
c. P1,650,000.00 SP Cost
d. P1,500,000.00 (P1,950,000.00 / 1.30 = P1,500,000.00)

88. Registration of mortgage covering projects can only be affected when the deed is accompanied
by a permit to mortgage issued by:
a. Housing and Urban Development Coordinating Council
b. Home Insurance Guarantee Corporation
c. House and Land Use Regulatory Board
d. National Housing Authority

89. The sale of property worth P1,500,000.00 considered as ordinary asset by a person who is not
habitually engaged in real estate business shall be subject to a creditable withholding tax rate of:
a. 1.5% ( habitually, P500K and below)
b. 3.0% ( habitually, over P500K to P2M)
c. 5.0% ( habitually, over P2M)
d. 6.0% ( not habitually, regardless of amount)

90. The documentary stamp on lease of real estate is P3.00 for the first P2,000.00 or fraction thereof
and additional:
a. P0.50 for every P1,000.00 in excess for first P2,000.00
b. P1.00 for every P1,000.00 in excess for first P2,000.00
c. P1.50 for every P1,000.00 in excess for first P2,000.00
d. P2.00 for every P1,000.00 in excess for first P2,000.00
91. Under BIR revenue Regulation No. 17-2003, the seller of family home who failed to utilize the
proceeds to acquired new residence within 18 months from the sale shall be assessed additional
deficiency capital gains tax inclusive of penalties and:
a. 10% interest per annum
b. 20% interest per annum
c. 15% interest per annum
d. 25% interest per annum

92. The annual registration fee for a VAT-registered real estate broker is:
a. P500.00
b. P1,500.00
c. P1,000.00
d. None of the above

93. The selling price of house and lot is P800,000.00. If its appraised value of P720,000.00 and loan to
collateral ratio is 80%, what is it loan value?
a. P640,000.00
b. P720,000.00
c. P576,000.00 (P720,000 x 80% = P576,000)
d. P648,000.00

94. The capital gains tax on the sale of P2,000,000.00 property with P600,000.00 initial payment is:
a. P100,000.00
b. P30,000.00
c. P120,000.00 ( P600K / P2M = 30%, therefore, deferred: CGT = P2M x 6% = P120K )
d. P36,000.00

95. What is the cost of the fence with total length of 75 meters, with height above the ground of 2
meters and ½ meter below, if cost per square is P1,500.00?
a. P225,000.00
b. P140,625.00
c. P281,250.00 (75m. x 2.5m. x P1,500)
d. P112,500.00

96. Using the 4-3-2-1 rule (depth rule), if a 5-hectare belonging to different owners was sold for
P10,000,000.00, what is the share of lot owners owning the first quarter abutting the road?
a. P2,500,000.00
b. P5,000,000.00
c. P4,000,000.00 (40% x P10M)
d. P6,000,000.00
97. The owner wants a net proceed of P1,750,000.00 exclusive of capital gains tax, documentary
stamp tax and 5% brokers commission. How much would be the selling price so that broker can
maintain his 5% commission?
a. P1,968,750.00
b. P2M (P1,750,000 / 100% - ( 6%CGT + DST of 1.5% + 5% BC) (or P1,750,000 / 87.5%)
c. P1,980,000.00
d. P2,200,000.00

98. The maximum area of residential land which a former natural born Filipino citizen may acquire in
urban area:
a. 10,000 sqm (rural) BP 185
b. 100 sqm
c. 500 sqm
d. 1,000 sqm (urban) BP185

99. When a donee of a parcel of land is a stranger, the donor’s tax rate is:
a. 20%
b. 30% (stranger, son and daughter in law)
c. 6%
d. 15% ( consanguinity up to 4th degree, legally adopted)

100. The collateral value of a house and lot package is determined under Pag-ibig Home Lending
Program by applying the:
a. Economic Value
b. Appraised Value
c. Assessed Value
d. Loan Value Ratio ( loan value = appraised value x loan to value ratio )

101. Mr. Bean sold his property for P850,000.00 with a down payment of P500,000.00 and the
balance of P350,000.00 payable in one year was secured by a mortgage on the same property
without interest. Compute for the documentary stamps to register the transaction (DST on sale
and mortgage)
a. P12,750.00 DST on sale : P850K x 1.5% = P12,750.00
b. P8,210.00 DST on mortgage: (P350K x .002) + P10 = 710.00
c. P8,500.00 Total = P13,460.00
d. P13,460.00
102. When the loan is fully amortized by equal monthly payments, the amount applied to the
principal:
a. Decreases while interest payment increases
b. Increases while interest decreases (based on diminishing balance)
c. Increases by a constant amount
d. None of the above

103. Total refund to buyer for developer’s failure to complete the development within the
reglimentary period is equivalent to; (PD 957)
a. 50% of total payment inclusive of amortization interest less penalty interest
b. 50% of total payment inclusive of amortization interest and penalty interest
c. 100% of total payment inclusive of amortization less penalty interest
d. 100% of total payment less penalty plus legal interest

104. The use of borrowed funds to increase purchasing power is ideally to increase the profitability
of an investment is:
a. Limited Liability
b. Leverage
c. Debt Coverage
d. Interim Financing

105. The amount of family home equivalent to fair market value considered as allowable deduction
from the estate of a decedent:
a. P500,000.00
b. P2,000,000.00
c. P1,000,000.00 (or 50% value of BIR for family home, whichever is lower)
d. P750,000.00

106. The Estate Tax Return shall be filed and paid with the BIR within:
a. 60 days from death of decedent
b. 120 days from death of decedent
c. 90 days from death of decedent
d. 180 days from death of decedent (filing of notice of death is within 60 days)

107. Under the Urban Land Reform Law (P.D. 1517), an area is considered urban when it has a
population density of at least ____ and where at least 50% of economically active residents are
engaged in non-agricultural activities.
a. 500 residents per square kilometer - Coverage of PD 1517:
b. 1,500 residents per square kilometer - 284 sites / APDs and ULRZ)
c. 1,000 residents per square kilometer - Coverage of R.A. 7279:
d. 2,000 residents per square kilometer - All urban and urbanizable land
108. An appraisal technique in which comparative estimates are made between prices paid in
actual transactions and the current listings:
a. Cost Approach
b. Market Approach
c. Income Approach
d. Economic Approach

109. A subdivision plan needs only the approval of the Land Registration Authority or Land
Management Bureau to effect segregation of titles when the resulting number of lots is:
a. Nine (9) or less (simple subdivision; 10lots or more – complex subd.)
b. Twelve (12) or less
c. Ten (10) or less
d. Fifteen (15) or less

110. A four-storey building has a regular shape with street frontage of 10 meters and depth of 20
meters, and height of 16 meters. If cost to construct is P4,000.00 per cubic meter, what is the
reproduction cost of the new building?
a. P12,800,000.00 ( 10m x 20m x 16m x P4K = P 12.8M)
b. P12,560,000.00
c. P13,200,000.00
d. P15,120,000.00

111. Husband and Wife can sell property to each other in the following circumstances except when:
a. A separation of property was agreed upon in the prenuptial agreement
b. There has been a judicial separation of property
c. There has been a legal separation
d. Spouses have been separated for more than 10 years

112. In a sale of property on installment plan where the buyer is not engaged in trade or business,
the applicable rate of tax is based on
a. Gross Selling Price
b. BIR market value ( For lot only: Zonal value or MV per tax dec. whichever is higher)
c. a or b, whichever is higher
d. Assessed Value

113. Under RA 7279, _________ shall be resorted to only when other modes of acquisition have
been exhausted.
a. Negotiated Purchase
b. Expropriation
c. Land Consolidation
d. Joint-Venture Agreement

114. The sale of a piece of land when made through an agent, whose authority is verbal, is
a. Voidable
b. Rescissible.
 c. Unenforceable (Statute of Frauds)
d. Void

115. A broker’s complaint for non-payment of commission by the developer shall be filed with
a. HLURB (buyer’s complaint)
b. HUDCC
c. DTI-BTRCP
d. Regular Court

116. The schedule of market value for ad valorem tax in municipalities outside Metro Manila is
prepared by
a. Municipal Assessor (if municipality is within Metro Manila)
b. Sangguniang Panglalawigan
c. Provincial Assessor (if municipality is outside Metro Manila)
d. Provincial Treasurer

117. Property escheated to the government is considered as

a. Public Dominion
b. Regalian Property
c. Patrimonial Property
d. Land of Public Domain

118. Total refund to buyer for developer’s failure to complete the development within the
reglimentary period is equivalent to
a. 50% of total payment inclusive of amortization interest less penalty interest
b. 50% of total payment inclusive of amortization interest and penalty interest
c. 100% of total payment inclusive of amortization less penalty interest
d. 100% of total payment less penalty interest plus legal interest

119. Under DILG Memorandum Order No. 15-2002, the time frame for processing and action on
applications for approval of subdivision plan is
a. 15 days
b. 45 days
c. 30 days
d. 60 days

120. The use of borrowed funds to increase purchasing power is ideally to increase the profitability
of an investments is
a. Limited Liability
b. Leverage
c. Debt Coverage
d. Interim Financing
121. The income approach in estimating the value of an investment property is an application of
a. Principle of Substitution ( for market data and cost approach)
b. Principle of Contribution
c. Principle of Progression
d. Principle of Anticipation

122. The law that reverted the nature of Pag-IBIG Membership to mandatory to all SSS & GSIS
members earning at least P4,000.00 a month
a. Republic Act 7742
b. Presidential Decree 1530
c. Presidential Decree 1752
d. Executive Order No. 90

123. Under Urban land Reform Act (PD 1517), the acquisition of lots of varying ownership through,
among others, expropriation or negotiated purchase for the purpose of planning is
a. Land Banking (in advance of actual need)
b. Land Use Plan
c. Land Exchange
d. Land Assembly (or consolidation)

124. The commission rate for sale of real estate is determined by:
a. Discretion of the Seller
b. Standard rate Approved by the BTRCP
c. Agreement between seller and broker ( Brokerage Law: Act 2728 )
d. Fixed scale approved by RESCOP

125. The principle of value which states that the value of a property tends to be enhanced where
there is reasonable homogeneity in use.
a. Principle of Highest and Best Use
b. Principle of Conformity
c. Principle of Increasing Return
d. Principle of Progression

126. It refers to a grid of north and south (meridians), and east and west (parallels) lines surveyed
by the government in identifying Philippine boundaries.
a. Meters and Bounds
b. Cardinal Direction
c. Rectangular survey
d. Monuments
127. It is the ratio that expresses the relation between gross income and sales price of a property.
a. Capitalization
b. Recapture
c. Gross Income Multiplier Selling price / Gross Income = GIM
d. Effective Gross Income P50M / P5M = 10 comparable
P80M / P8M = 10 subject property

128. A “loss in value from any cause” is a common definition of

a. Effective Age
b. Depreciation
c. Functional Obsolescence
d. Economic Obsolescence

129. The value placed on taxable property by the assessor for AD VALOREM purposes is
a. Appraised Value
b. Fair Market Value
c. Assessed Value (taxable value: basis for basic, SEF, idle and socialized housing tax) (AV – P50K) x .5%
d. Economic Value

130. The following are modes of acquiring lands for purposes of Urban Development and Housing
Act, except:
a. Community mortgage
b. Negotiated purchase
c. Foreclosure
d. Joint venture agreement
e. Land swapping

131. Where a conflict arise on the issue of just compensation, the concerned government agency
expropriating is required to initially pay an amount equivalent to 100% of the
a. Offered amount
b. Assessed Value
c. Appraised Value
d. Zonal value ( for the lot; for the improvement it is 100% replacement cost)

132. The following are types of property descriptions ordinarily used in deeds, contracts, offer to
sell, and leases, except:
a. rectangular survey
b. bearings and azimuth
c. metes and bounds
d. lot number
e. Monuments
133. Refers to an imaginary line connecting from a reference point “1” of any given lot plan
a. Cardinal direction
b. Azimuth
c. Boundary line
d. Tie Line

134. In the absence of any provision in the master deed of a condominium project, the share of the
unit owners in the common area is.
a. Proportionate to his unit area
b. Decided by the majority of owners
c. Based on the value of his unit
d. Determined by the condominium corporation
e. Equal to all other unit

135. The right of an owner-lessor to receive the contract rent and reversion of the property at the
end of the lease is called
a. Fee simple (highest form of ownership)
b. Sandwich lease ( contract of lease between lessee and sub-lessee)
c. Leasehold (lessee’s interest or right)
d. Leased fee estate (lessor-owner interest or right)
e. Subleasehold (sublesse’s interest or right)

136. In case of false or fraudulent Estate, Donor or Capital Gains Tax BIR form was willfully made,
how much surcharge based on the taxes or deficiency tax shall be imposed?
a. 20%
b. 25% ( NOT FILING ON TIME OR LATE FILING )
c. 30%
d. 50%

137. The real estate broker is usually authorized to do all the following acts, except:
a. Advertise the listing
b. place “for sale” sign on the property
c. Cooperate with other brokers
d. bind the principal in a contract

138. For purposes of determining whether a seller/transferor can be considered as habitually

engaged in real estate business, he should offer satisfactory evidence that he consummated at
least ___ taxable real estate transactions during the preceding year.
a. Five
b. Eight
c. Twelve
d. Six
139. The Articles of Incorporation of subdivision or condominium homeowners association is
registered with:
a. Securities and Exchange Commission
b. Home Guaranty Corporation
c. Housing and Land Use Regulatory Board
d. Bureau of Trade Regulation & Consumer Protection

140. A Pag-Ibig member can now purchase residential lot not exceeding _______sqm.
a. 300 sqm
b. 1,000 sqm ( should be developed )
c. 500 sqm.
d. 2,000 sqm

141. Conversion permit of agricultural land of not more than 5 hectares shall be approved by the:
a. Municipal Agrarian Reform Office
b. Undersecretary of DAR (if more than 5has to 50 has)
c. Provincial Agrarian Reform Office
d. Secretary, DAR ( if more than 50 has)
e. Regional Agrarian Reform Office DAR ( for 5 has and below)

142. A contract to sell entered into the name of, and subsequently ratified by a licensed broker, by
a sales agent who was not granted authority to sell, is:
a. voidable contract
b. rescissible contract
c. enforceable contract
d. void contract

143. The ratio that expresses the relation between gross income and sales price of a property is
a. Effective Gross Income
b. Capitalization
c. Recapture
d. Gross Income Multiplier ( SP / EGI)

144. If TCT has an annotation that says “subject Rule 74, Section 4 of the Rules of Court”, it means
that the property is an inherited property and any heir unduly deprived of his lawful participation
in the estate has ____ years to assert his rights over said property.
a. Two (2) years
b. Five (5) years
c. Four (4) years
d. Ten (10) years
145. The acquisition of the land in advance of actual need based on present value for future
planned development is referred to in the Urban Land Reform Law as:
a. Land Assembly
b. New Settlement Development
c. Land Banking
d. Urban Renewal

146. A provision in mortgage contract which releases the property from the encumbrance when
the obligation is fully paid is:
a. Automatic redemption clause
b. Defeasance clause
c. Non-liability clause
d. Exculpatory clause

147. The type of listing that gives the real estate broker the greatest protection
a. Exclusive Agency Listing
b. Net Listing
c. Open Listing
d. Exclusive Right to Sell Listing

148. The following are determinants of value in appraisals of realty, except: D U S T

a. Contribution (principle of value)
b. Scarcity
c. Utility
d. Demand ( coupled with purchasing power )

149. Subdivision and Condominium Buyers Protective Decree

a. PD 7279
b. PD 27
c. PD 957
d. BP220

150. Urbanizable areas refer to sites and lands which, considering present characteristics and
prevailing condition, display marked and great potential of becoming urban areas within the
period of
a. Two (2) years
b. Five (5) years (Lina Law)
c. Three (3) years
d. Ten (10) years ( 5 – 10 yrs HLURB)
151. It refers to the acquisition of lots of varying ownership through purchase on expropriation for
the purpose of planned and rational development and socialized housing program without
individual property boundary restrictions.
a. Land banking
b. Land assembly
c. Land swapping
d. Land-use plan

152. The following are modes of acquiring lands for the purposes of the Urban Development and
Housing Act of 1992 except. LINA LAW (R.A. 7279)
a. Joint Venture agreement
b. Community mortgage
c. Expropriation (LAST RESORT)
d. Negotiated purchase
e. Accretion

153. In mixed-use condominium projects, the master deed may be amended by simple majority of
the unit owners. Majority is based on:
a. Number of Condominium units
b. Total area of condominium units
c. Floor area of ownership
d. Any of the above

154. Conjugal partnership maybe dissolved by:

a. Legal Separation
b. Judicial Decree of Separation of Property
c. Annulment of Marriage
d. Any of the Above

155. Amendment to the master deed of a condominium project approved by majority of the
registered owners need also be approved by the city/municipal engineer and:
a. Local government
b. Housing and Urban Development Coordinating Council
c. Housing and Land Use Regulatory Board
d. Land Registration Authority

156. The income approach to value is an application of the principle of:

a. Highest and Best Use
b. Substitution
c. Progression
d. Anticipation
157. A provision in mortgage contract which releases the property from the encumbrance when
the obligation is fully paid is:
a. Automatic redemption clause
b. Defeasance clause
c. Non-liability clause
d. Exculpatory clause

158. Unless revalidated, tax credit life is up to:

a. One (1) year
b. Three (3) years
c. Five (5) years
d. Two (2) years
e. Four (4) years

159. BIR Certificate Authorizing Registration (CAR), unless revalidated, can only be used and
accepted by the Register of Deeds for _______ from date of issuance.
a. 6 months
b. 12 months ( 2 years including revalidation or re-issuance after 2 years)
c. 18 months
d. 2 years ( RMC23-2010 3/15/2010; maybe revalidated for another 1 year )

160. The maximum period that an individual foreigner may lease real estate including renewal is:
a. 25 years
b. 50 years ( 1987 Constitution)
c. 75 years (foreign investors)
d. 99 years (Filipino citizens under Civil Code)

161. The maximum period that an foreign corporate investors may lease real estate including
renewal is:
a. 25 years
b. 50 years
c. 75 years
d. 99 years

162. The principle holds that when two or more commodities with substantially the same utility are
available, the one with the lowest price receives the greatest demands and widest distribution.
a. Principle of Contribution
b. Principle of Balance
c. Principle of Highest and Best Use
d. Principle of Substitution
e. Principle of Completion
163. If TCT has an annotation that says “ subject to Rule 74, Section 4 of the Rules of Court”’ it
means that the property is an inherited property and any heir unduly deprived of his lawful
participation in the estate has ___ years to assert his rights over said property.
a. Two (2) years
b. Five (5) years
c. Four (4) years
d. Ten (10) years

164. The type of loan wherein the lender has come or complete control over the project and the
income from a certain period, part or all of which is assigned to him to amortize the project, is:
a. Straight Loan
b. Turn Key Loan
c. Flat Loan
d. Amortization Loan

165. If the contract is under Maceda law, a buyer who has paid 2 years installment shall be
refunded an amount equivalent to:
a. 60% percent of the total payments made
b. 40% of the total payments made
c. 50% of the total payments made ( maximum rate of refund is 90%)
d. 30% of the total payments made

166. The following are modes of acquiring lands for purposes of Urban Development and Housing
Act, except:
a. community mortgage
b. Negotiated purchase
c. joint venture agreement
d. land swapping
e. Foreclosure

167. Land valuation guidelines for socialized housing is set by the: (ref. RA7279)
a. HUDCC
b. Department of Finance
c. NHA
d. Regular courts
e. Provincial/City Assessor

168. The following are types of property descriptions ordinarily used in deeds, contracts, offer to
sell, and leases, except:
a. rectangular survey d. monuments
b. bearings and azimuth e. metes and bound
c. lot number
169. The schedule of Fair market value in the municipalities in Metro Manila is prepared by:
a. MMDA
b. Bureau of Internal Revenue
c. concerned Municipal assessor
d. Sangguniang Bayan by ordinance

170. The following compose the Board of Assessment Appeals in the city of Makati, except:
a. Register of Deeds ( HEAD )
b. City Prosecutor
c. City Assessor ( conflict of interest)
d. City Engineer

171. A taxpayer has ________ to redeem his real property which was levied and subsequently
forfeited and acquired by the Local government unit due to tax delinquency.
a. 1 year
b. 4 years
c. 60 days
d. 3 years

172. In addition to the basic real property tax, a province may levy an annual tax on an agricultural
land; planted to perennial crops with less than 50 trees to a hectare at the rate of not exceeding
____ of the assessed value of the property. It is called idle land tax.
a. 1%
b. 2%
c. 3%
d. 5% (maximum rate for idle land tax)

173. Seizure of a property by a court order, usually done to have it available in the event of adverse
judgment of a pending suit, is:
a. escheat
b. forfeiture
c. foreclosure
d. Attachment

174. This government agency is responsible for the preparation of Comprehensive land use in a
locality.
a. Local government unit ( City or Municipal Planning)
b. DAR
c. HUDCC
d. HLURB
175. Conversion permit of agricultural land of not more than 5 hectares shall be approved by the:
a. Municipal Agrarian Reform Officer
b. Provincial Agrarian Reform Officers
c. Secretary of DAR
d. Regional Agrarian Reform Officer of DAR

176. Under the Rent Control Law of 2009 (RA 9653), the lessor may ask for a deposit not exceeding:
a. 1 month
b. 2 months ( extended by HUDCC to Dec 31,2015)
c. 3 months
d. Depending on the agreement between the lessor and lessee

177. Under the Rent Control Law of 2009 (RA 9653), the lessor may ask for rental advance not
exceeding:
a. I month ( extended by HUDCC up to 2015)
b. 2 months
c. 3 months
d. Depending on the agreement between the lessor and lessee

178. Under the new BIR ruling, acquired assets of banks regardless of amount are subject to the
creditable withholding tax of:
a. 1.5%
b. 3%
c. 5%
d. 6%

179. The Articles of Incorporation of homeowners association is registered with:

a. Securities and Exchange Commission
b. Housing and Land Use Regulatory Board
c. Home Guaranty Corporation
d. Bureau of Trade Regulation and Consumer Protection

180. Any amendment to the master deed of a condominium project decided by the majority of
owners must be approved by the HLURB and
a. City/Municipal Mayor
b. City/Municipal Assessor
c. City/Municipal Council
d. City/Municipal Development Planning Officer
e. City/Municipal Engineer

181. Easement is to real property; Usufruct is to:

a. personal property
b. personal or real property
c. real property
d. none of the above
182. Which of the following statements is not true?
Formula : FULL OWNERSHIP = NAKED + USUFRUCT
a. Full ownership equals naked ownership plus usufruct
b. Usufruct equals naked ownership plus full ownership
c. Naked ownership equals full ownership minus usufruct
d. Usufruct equals full ownership minus naked ownership

183. If Contract of Sale is to Deed of Sale; Contract to Sell is to

a. Pacto de Retro Sale
b. Deed of Sale with Mortgage
c. Deed of Conditional Sale (should be conditional sale only, no deed)
d. Dacion en Pago

184. The following are priorities of lands that may be acquired for socialized housing purpose under
RA No.7279, except:
a. lands owned by the government
b. alienable lands of public domain
c. privately owned lands
d. BLISS not yet acquired
e. registered but idle lands (Per RA7279 – unregistered or abandoned lands)

185. In subdivision selling, the sale is considered a paid-up sale when the buyer has paid the:
a. fifty percent of the purchase price
b. stipulated earnest money
c. reservation deposit
d. required down payment

186. The rate of real property tax in a municipality or city within Metro Manila is
a. Not more than one percent of the assessed value
b. Not more than two percent of the assessed value
c. Not more than ten percent of the assessed value
d. Not more than fifteen percent of the assessed value

187. A kind of survey where the shape of the earth is taken into account in computing results is
known as
a. plane survey
b. cadastral survey
c. geodetic survey
d. topographic survey
188. The rational approach of allocating available land resources as equitably among competing
user group is
a. land assembly
b. on-site development
c. land use plan ( Ref. RA 7279 )
d. urban renewal

189. Registration of a real estate instrument can be given due course without the presentation of
the owner’s duplicate certificate of title when the document is
a. Notice of Adverse Claim
b. Notice of lis pendens
c. Writ of attachment
d. Writ of excecution
e. all of the above

190. Special power of attorney are necessary in the following cases, except
a. to perform acts of administration (GENERAL POWER OF ATTY.)
b. to lease any real property for more than a year
c. to convey real rights on immovable property
d. to cancel any obligation gratuitously

191. In a sale a retro where it is stipulated that the vendor has the right to repurchase the property
“when he has the means”; he has ____ to redeem it.
a. three (3) years
b. twenty (20) years
c. four (4) years (not stipulated)
d. ten (10) years ( if stipulated)

192. The minimum educational requirement that an applicant for a license as a broker is
a. forty four (44) units of college undergraduate study
b. seventy two (72) units in college
c. college graduate with four-year course
d. one hundred forty four (144) units in college

193. Which of the following government agencies is in charge of the over-all strategies for the
country’s National Housing Program?
a. National Housing Authority
b. Housing and Land Use Regulatory Board
c. Housing and Urban Development Coordinating Council (Jejomar Binay – Pres.)
d. Home Insurance Guaranty Corporation
194. Registration of sale of a five (5) hectare agricultural land must be accompanied by
a. DAR Conversion Permit
b. DAR Clearance
c. HLURB License to Sell
d. LGU Development Permit

195. The following are public dominion, except

a. Navigable river converted into fishpond
b. Public plaza converted into housing
c. Canal
d. subdivision roads
e. natural resources

196. In case of real property, prescription in good faith is

a. 5 years
b. 15 years
c. 30 years - (bad faith, rural, patent, free)
d. 10 years - (good faith, if the owner is selling the land)\
- Under RA10023 prescriptive period is only 10 years (bad faith)

197. Ownership of a piece of land can be acquired through any of the following modes, except
a. tradition
b. prescription
c. occupation
d. accretion
e. succession

198. The area of a triangular plot is computed by the formula:

a. length x width
b. 2 x length x width
c. ½ x length x width
d. length x width x height

199. It means that short of foreclosure, the mortgagor agrees to sell and transfer the mortgage
property to the mortgagee.
a. dacion en pago ( voluntary offer from mortgagor)
b. pacto de retro
c. redemption
d. Auction
e. Foreclosure ( involuntary sale)
200. Excluded from the coverage of CARP. How may percent slope?
a. Nine percent
b. Twelve percent
c. Fifteen percent
d. Eighteen percent or more

201. An annual levy on real property equivalent to one (1) percent of the assessed value which shall
be in addition to the basic real estate tax called
a. Special Education Fund Tax
b. Idle land tax
c. Ad valorem Tax
d. Socialized housing tax

202. A subdivision where 9% of the gross area is open spaces with 66 to 100 family lots per hectare
is called (ref. PD 1216)
a. economic subdivision (BP220 needs also socialized housing component)
b. socialized subdivision (BP 220)
c. open market subdivision (PD 957)
d. low cost subdivision (BP220)

203. The value placed on taxable property by the assessor for ad valorem tax purposes is
a. Market value
b. Appraised Value
c. Assessment Value
d. Assessed Value

204. The documentary stamp tax for Deed of Real Estate mortgage pursuant to the provisions of RA
No. 7660 is
a. P 15.00 for every P1,000.00 of the mortgage amount
b. P10.00 for every P1,000.00 of the mortgage amount
c. P10.00 for the first P 5,000.00 of the mortgage plus P5.00 for every P 5,000.00 thereafter
d. P 20.00 for the first P5K mortgage plus P10.00 for every succeeding P5K and fraction
thereof

205. In the computation of depreciation of real properties, the method that is widely used by
practitioners is the
a. straight line method ( 100% / USEFUL LIFE or ECONOMIC LIFE)
b. sum-of-the-years digits method
c. declining balance method
d. cost benefit method
206. The technical description in the TCT of a real property can readily be plotted on a sheet by
using the following data
a. bearing and lot points
b. bearing and tie line
c. distance and lot points
d. distance and bearing from lot points

207. A scale of 1:200 means

a. 1 cm in paper is equal to 200 meters in earth surface
b. 1 meter in paper is equal to 200 meters in earth surface
c. 1 cm in paper is equal to 200 centimeters in earth surface
d. 1 meter in paper is equal to 200 meters in earth surface

208. When the deceased registered owner is survived by a sole heir, the estate of the former maybe
transferred to the latter with the execution of a document known as
a. Deed of Transfer
b. Affidavit of self- adjudication
c. Extra-Judicial Settlement of estate
d. Declaration of Ownership

209. It is refers to land located in the fringes of built-up communities which has the provincial
characteristics but is flavored with metropolitan utilities, facilities and amenities.
a. Urban land c. Urbanizable land
b. Rurban land d. Rural land

210. Jurisdiction for adjudication of buyer’s, complaints against subdivision developers is with the
a. Housing and Urban Development and Coordinating Council
b. National Housing Authority
c. Housing and Land Use Regulatory Board (with quasi judicial function on buyer’s complaint)
d. Regular Courts

211. On estate tax, the maximum allowed for funeral expenses beginning Jan. 1, 1998
a. 5% of gross estate or P200,000.00, whichever is lower
b. 5% of gross estate or P200,000.00, whichever is higher
c. 10% of gross estate or P200,000.00, whichever is lower
d. 10% of gross estate or P200,000.00, whichever is higher

212. The bundle of right which is inherent in ownership without any limitations other than those
imposed by law or contract is.
a. fee estate
b. fee simple
c. lease fee estate
d. freehold
213. The study of current supply and demand conditions in a particular area for a specific type of
property is
a. Real estate appraising
b. Absorption estimate
c. Cash Flow analysis
d. Market Analysis

TEST 2

1. In a legal contract / instrument between individuals as parties, the instrument must contain
the following data concerning the parties, except:
a) Full names and addresses
b) Civil status and citizenship
c) Capacity and personality in the contract
d) Board Resolution

2. 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

3. 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.

4. 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

5. 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
c) Declaration of Restrictions
b) Condominium Articles of Incorporation
d) Condominium Association Rules
 6. Property exclusively owned by the husband is called:
a) Chattel
b) Accession
c) Paraphernal property (WIFE)
d) Capital property (husband)

8. It is the amount enclosed in an offer to buy and form part of the price in case of sale:
a) Option Money c) Escrow money
b) Earnest Money d) Down Payment Money

10. 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 not be passed to a third broker without the knowledge and consent of
the listing broker.

11. 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.

12. 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 person who might have been unduly deprived of his participation in the estate of
the deceased
c) The parents of the deceased
d) Creditors
 13. A broker is entitled to the commission upon:
a) Perfection of the Contract
b) Consummation of the Sale
c) Presentation of the Client
d) Registration of the Client

16. 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 on charges of moral turpitude
d) Functional obsolescence

17. 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 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

18. Exemptions on payment of the 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) 7 years c) 15 years
b) 10 years d) 5 years

19. The requirements of SEC/ HLURB for real estate licensing of corporation is as follows, except:
a) The person representing the firm must himself be a licensed real estate broker.
b) Board resolution designating the person representing the corporation in real estate
practice
c) Copy of Articles of Incorporation
d) CEP Certificate of Attendance
 20. 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
c) the general public / government
d) none of the above

21. 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 affect the interest of his client
d) He should endeavor to make his client and customer conclude a fair contract
advantageous to both.

22. 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

23. 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

24. 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, levies 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.

25. The real estate practitioners in his advertisements or brochures of properties for sale, should
present, but not:
a) a true picture of the property and its improvements
b) it’s right and interest therein, including its liens and encumbrances.
c) Indicate name, firm, address and license number.
d) Conceal relevant information and other related facts
 26. With regards to the relation with a client or customer , the practitioner, in accepting an
appointment or authority to act for and in behalf of the client / customer, can perform such,
except:
a) Acquire an interest or buy for himself or members of his family within the 4th civil
degree
b) Endeavor to make buyer or seller conclude a fair contract, advantageous to both parties
c) Assist his client acquire possession and ownership of the property bought in accordance
with the terms and conditions agreed upon
d) Should not accept any commission or fee from any party in any transaction except from
his client unless with the full knowledge and consent of all the parties concern in the
transaction

27. 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 buyer as proven from a comparison of the dates indicated on the different
Deeds of Absolute Sale

28. 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.

29. Which of the following describes a buyer’s market?

a) There are many sellers in a particular area as against very few buyers
b) There are many properties for sale in a particular area but many just want to rent
c) There are few properties for sale in a particular area and very many buyers
d) There are few properties for sale in a particular area and also very few buyers
 30. When accepting a listing from another broker, the broker should respect the agency of the
other broker who offers the listing until:
a) the agency agreement has expired
b) the property has come to the attention of the accepting broker from a different source
c) the owner, without solicitation, offers to list with the accepting broker
d) Saw the notice of the property for sale and walk-in within the period of brokers
agreement

31. A listing broker is authorized by:

a) the owner or his attorney-in-fact
b) the buyer or purchaser
c) co-broker
d) agent

32. Spouses have the freedom to choose the regime that will govern their properties by marriage
settlement pre-nuptial agreement, such as, but not include:
a) Absolute community
b) Absolute separation
c) Conjugal Partnership on gains
d) Occupation

33. Your friend Atong wants you to sell a property titled to their family corporation. After inspecting
the property, you request for an exclusive authority. Who should be the signatory in the authority
and all the subsequent documents in case the property is sold?
a) Atong’s father who is the patriarch of the family
b) Your friend Atong who is the treasurer of the corporation
c) Whoever is authorized in a formal board resolution
d) The company president

34. Your client has agreed to be a mortgagee 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) The city where a bigger part of the property lies
c) The city indicated in the property’s registered address
d) Both cities

35. The study of current supply and demand conditions in a particular area for a particular type of
property is:
a) real estate appraising
b) market analysis
c) cash flow analysis
d) income projection
 36. The rate of capital gains tax is:
a) 5% b) 5.5% c) 6% d) 7.5%

37. When is documentary stamp tax payable after documents are notarized?
a) Within five (5) days of the following month
b) Within five (5) days upon notarization
c) Within twenty-four (24) hours after notarization
d) Within ten (10) days upon notarization.

38. Which of the following is not an example of involuntary alienation?

a) Expropriation
b) Adverse Possession
c) Foreclosure of Mortgage
d) Tax Deficiency Sale

39. Three 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. Transfer fees are computed at 1.5% of the total contract price or zonal valuation,
whichever is higher
c) Documentary stamps Tax is 1.5% of the total contract price or zonal valuation, whichever
is higher
d) Pasig City and Quezon City imposes a Business Tax on sales of real estate titled to
corporations.

40. Three of the following factors create value in real estate. Which one does not create value?
a) Demand c) infiltration
b) Utility d) Scarcity

41. Bank acquired assets which form part of the real estate inventories at the close of their
accounting period shall be classified as:
a) capital assets c) ordinary asset
b) fixed assets d) movable asset

42. Special education fund tax is an annual levy on real estate equivalent to what percent of assessed
value which shall be in addition to the basic real estate tax.
a) 1% c) 3%
b) 2% d) 4%

43. Under BIR RR28-98, the ground floor of a condominium project shall be considered as
commercial and additional rate shall be added to an established residential zone value, at what
per cent?
a) ten (10%) per cent c) fifteen (15%) per cent
b) twenty (20%) per cent d) twenty five (25%) per cent
 44. Which of the following reasons is not a valid justification to conduct a topographic survey?
a) As a basis for determining the cost of land development
b) As a basis for establishing points and locating the land boundaries
c) As a basis for designing the drainage system
d) As a basis for planning the road networks

45. Assuming due cause for foreclosure, what is the condition for a real estate mortgage to be
foreclosed extra-judicially?
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 mortgagee is not a juridical person

46. Three of the following are examples of involuntary alienation of property. Which one is not?
a) Expropriation c) Foreclosure of mortgage
b) Sale to an alien buyer d) Sale for tax delinquency

47. The sale by a dealer of a residential lot is not subject to E-VAT when the price does not exceed?
a) P1,000,000.00 b) P1,919,500.00
c) P2,000,000.00 d) P3,199,200.00 ( if house and lot )

48. A lot owner and developer may convert a property into condominium project by executing a legal
document and registering the same with the Register of Deeds called?
a) Transfer Certificate of Title c) Deed of Sale
b) Master Deed d) Condominium certificate of title

49. Unless the condominium corporation is earlier dissolved, the life of a condominium
corporation is?
a) co-terminus with the duration of a condominium project
b) subject to agreement between the condominium corporation and the unit owners
c) subject to simple majority
d) fifty (50) years

50. Which of the following statements is not a valid criterion for ethical behavior?
a) Ethics is the name we give to our concern for good behavior. We feel an obligation to
consider not only our own personal well-being but also that of others and of human society as
a whole.
b) Ethics is right for right’s sake
c) A Code of Ethics is subservient to laws and regulations. Therefore, any act that is not
against any law is not a violation of ethical practice
d) Ethics is having a high moral sense. The capacity to perceive what is right measured
primarily by the application of the golden rule.
51. Mr. Juan dela Cruz want a net proceed of P2,625,000.00 from the sale of his property, exclusive of
capital gains tax, documentary stamps and broker’s commission of 5%. In order for the broker to
maintain the 5% commission, how much would be the selling price?
a) P3,000,000.00 (P2,625,000 / 87.5% = P3M)
b) P3,300,000.00
c) P3,800,000.00
d) P4,000,000.00

52. You were commissioned by Mr. Pedro de los Santos as the broker to sell his property. He
bought it at P10,000,000.00 and wants a 30% gross profit. If you will be paid 5% broker’s
commission, how much would be the adjusted selling price in order that the 30% profit of Mr.
De los santos will not be affected.
a) P10,500,210.52
b) P13,684,210.52 ( P10M x 130% = P13M / .95 = 13,684,210.52 )
c) P13,650,000.00
d) P14,652,210.52

53. The listing and selling brokers sold a property. The brokers’ commission is five (5%) per cent
and agreed 50/50 commission sharing. Each of them received P62,500.00. What is the selling
price?
a) P2,000,000.00 b) P2,500,000.00 ( P62,500 / 2.5% = P2.5M )
c) P3,000,000.00 d) P3,500,000.00

54. Mr. Johnny bought a 2 hectares raw land at P20 per square meter. If cost of money is
compounded 100% every 5 years, what will be his cost per square meters after 20 years?
What will his gross profit per square meter if he sells the land at P500 per square meter after
20 years?
a) P200/sq.m. and P160/sq.m. c) P250/sq.m. and P20/sq.m.
b) P300/sq.m. and P160/sq.m. d) P320/sq.m. and P180/sq.m

5th year ( P20 x 2) - P40.00

10th year ( 40 x 2) - 80.00
15th year ( 80 x 2) - 160.00
20th year ( 160 x 2) - 320.00 (present value of P20.00
( 20 years ago )

Therefore : P500 - P320 = P180.00 (profit per sqm.)

55. Mr. Reyes sold his property at P5,000,000.00 inclusive of capital gains tax, documentary stamp
tax and broker’s commission of 5%. What will be his net proceeds after deduction of expenses?
a) P3,875,000.00 c) P4,375,000.00
b) P4,250,000.00 d) P4,455,000.00
( P5M x 87.5% = P4,375,000.00 )
 56. Under the latest HDMF Circular No. 247, the loan entitlement based on monthly Pag-ibig
Contribution of P750.00 is ?
a) P1,250,000.00 c) P1,600,000.00
b) P1,300,000.00 d) P2,000.000.00
( How to get : 750 + 000 = 750,000 x 2 = P1.5M to P1.6M loan )

57. Mr. Juan dela Cruz bought a parcel of land, paying monthly amortization of P108,200.00. The
amortization factor for 5 years at 21% interest is 0.02705. He paid a down-payment of 20% of the
contract price, compute the following:
A. The principal obligations on which the monthly obligation is based?
a) P3,000,000.00 b) P4,000,000
c) P5,000,000 d) P6,000,000

( Solution: P108,000.00 / 0.02705 = P4M )

58. B. The contract price?

a) P3,000,000.00 b) P4,000,000.00 c) P5,000,000 d) P6,000,000

( Solution: P4M / 80% = P5M )

59. C. The amount of down payment?

a) P1,000,000 b) P2,000,000.00 c) P3,000,000.00 d) P4,000,000.00

( Solution : P5M x 20% = P1M )

60. A house and lot was sold for P6,500,000.00, with lot area of 1,000 sq. m. . The fair market value
of the improvement per TD is P2,000,000.00 and lot is P2,500,000.00. The zonal value of the
lot is P5,000/ sq. m. The sale is subject to capital gains tax. Compute the following:
A. Tax base
a) P4,500,000.00 b) P5,000,000.00 c) P6,500,000.00 d) P7,000,000.00

61. B. Capital gains tax?

a) P270,000.00 b) P300,000.00 c) P390,000.00 d) P420,000.00

62. C. Documentary stamp tax?

a) P75,000.00 b) P105,000.00 c) P67,500.00 d) P97,500.00

63. A subdivision developer is selling a house and lot package at P790,000.00. Compute the
following:
A. Expanded withholding tax
a) P39,500.00 b) 47,000.00 c) P23,700.00 d) P15,800.00

( 790k x 3% = 23,700 )
64. B. Documentary stamp tax
a) P23,700.00 b) P11,850.00 c) P15,800.00 d) P7,900.00

65. C. Value added tax

a) P79,000.00 b) P39,500.00 c) P47,400.00 d) exempted

66. What is the selling price inclusive of VAT of a property being sold by the owner when the value
added tax on the selling is P360,000.00?
a) P3,230,000.00 b) P3,360,000.00 c) P3,560,000.00 d) P3,960,000.00

( Solution: P360K / 12% = P3M x 1.12 = P3,360,000.00 )

67. A family residential home was sold at P4,000,000.00. The BIR fair market value is
P5,000,000.00. The owners bought a new residential home worth P3,000,000.00. How much is
the basic capital gains tax on the unutilized portion of the P4,000,000.00 sale of the old /
previous home?

a) P85,000.00 b) P75,000.00 c) P65,000.00 d) P55,000.00

( Solution: P1M x 1.25 x 6% = P75k )

68. What is that fixed object point established by surveyor to establish land location?
a) monument b) boundary mark c) concrete post d) cylindrical concrete

69. The selling price of a real estate is usually based on its:

a) Speculative value c) Intrinsic value
b) Exchange value d) Market value

70. The voluntary transfer to real estate is:

a) Adverse possession c) Alienation
b) Quit claim d) Surrender

71. A standard term used to a fixed object or as reference point established and set by a Geodetic
Engineer to identify the land boundaries:
a) Cylindrical concrete monument c) Boundary mark
b) Concrete Monument d) Post

72. Under the BIR Revenue Regulation No. 17-2003, the seller of a family home who failed to
utilize the proceeds to acquire a new residence within 18 months from the sale shall be
assessed an additional deficiency capital gains tax inclusive of penalties and surcharges 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
 73. A mortgage which covers two or more properties is called:
a) Equitable mortgage c) Close mortgage
b) Open mortgage d) Blanket mortgage

74. The sale by a dealer of a residential dwelling is not subject to E-Vat when the price does not
exceed:
a) P1,919,500 b) P2,000,000 c) P2,500,000 d) P3,199,200.00

75. The increase in value of real estate without any effort or expenses of the owner is:
a) Accretion c) Adhesion
b) Accession d) Unearned increment

76. An annual levy on real estate equivalent to one (1%) percent of the assessed value which shall
be in addition to the basic real estate tax is:
a) Special assessment tax c) Excise tax
b) Special education fund tax d) Special real estate tax

77. 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 c) Land banking
b) Land assembly d) New settlement

78. An estimate or an opinion of value is:

a) Conclusion c) Analysis e. appraisal
b) Adjustment d) Computation

79. Subdivision developers are required to develop a portion of the gross area of a project,
inclusive of road, alleys & other service areas for park & recreation, equivalent to what per
cent of the gross area of the land?
a) 10% c) 30%
b) 20% d. 40%

80. Subdivision developers are required to develop for socialized housing area equivalent to what
per cent of the gross area or project cost of the main subdivision project?
a) 10% c) 40%
b) 20% d) 30%

81. Tenants of urban land where their residence is constructed shall have the priority to buy the land
when the following requisites are present, except?
a) they are legitimate tenants
b) they have occupied the land for at least ten (10) years
c) the land is within an urban land reform zone
d) the land owner is not selling the land
82. In joint venture agreement between the developer and lot owner, the engagement of a real estate
consultant is necessary except?
a) ascertain fair market value of land and evaluate cost estimate of developer
b) review joint venture agreement
c) market the finished project
d) monitor and evaluate developers compliance with his undertaking

83. 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) Housing & Land Use Regulatory Board
b) Housing & Urban Development Coordinating Council
c) Home Guarantee Corporation
d) National Housing Authority

84. The best evidence of land/property ownership under the Philippine system of registration is:
a) Technical description c) Torrens title
b) Tax Declaration d) vicinity map

85. It is an encumbrance imposed upon an immovable for the benefit of another immovable
belonging to another:
a) Right-of-way b) Nuisance per se c)Private nuisance d) Easement

86. A professional person who determines the shape, contour and measurement of land:
a) Architect b) Consultant c) Broker
d) Accountant e) geodetic engineer

87. Sometimes referred to as vertical subdivision:

a) Townhouses b) Condominium c) Mansion d) Rowhouses

88. In the absence of a valid pre-nuptial agreement, the governing property relations of a married
couple is:
a) Complete separation of property c) conjugal partnership
b) Absolute community of property d) Regime of separation of property

89. The following are types of property descriptions ordinarily used in deeds, contracts, offer to sell
and lease, except:
a) Lot number
b) Bearings and azimuth
c) Monuments
d) Rectangular survey
e) Metes and bounds
90. A land survey always uses a fixed point of reference, it could be:
a) City Boundary Monument c) Bureau of Land Location Monument
b) Provincial Boundary Monument d) Any of the above

91. An application for renewal of a broker’s license must be accompanied by:

PASSE (Not applicable)
a) Cash bond for Php5,000.00
b) Surety bond for Php5,000.00
c) Certificate of guarantee from a recognized national real estate association
d) Any of the above

92. The zonal value of properties can be obtained from:

a) Land Registration authority c) Assessors office
b) Bureau of Internal Revenue d) All of the above

93. The realty service practice can be performed by juridical persons, except:
a) Real estate salesman c) Real estate appraiser
b) Real estate broker d) Real estate consultant

94. As provided by R.A. 7279, a developer of a subdivision is required to develop an equivalent of

twenty (20%) percent of the project for:
a) Open space c) Commercial area
b) Socialized housing d) Economic housing

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

a) Chaplan planning c) Topographic planning
b) Square planning d) Contour planning

96. The technical description in the TCT of real property can be readily plotted on a sheet of paper
by using the following data:
a) BLLM and the tie line
b) Bearing and lot points
c) Bearing and tie line
d) Bearing and distance from lot points
e) Bearing and lot points

97. A scale of 1:200 in surveying terms is:

a) 1 centimeter is equal to 2 meters
b) 1 meter is equal to 200 meters
c) 1 centimeter is equal to 200 meters
d) 1 meter is equal to 20 meters
100. A kind of survey where the shape of the earth is taken into account in computing the
results is known as:
a) Topographic survey
b) Hydrographic survey
c) Geodetic survey
d) Plane survey
e) Cadastral survey

TEST 3
BP 220 / PD 957 Revised IRR

1. The powers of HLURB to approve subdivision plans has been devolved to local government
pursuant to ________?
a. RA 7160 c. BP 220
b. PD 957 d. EO 90

2. Pursuant to Section 3 of BP 220, ________ is authorized to establish and promulgate two

levels of standards and technical requirements for the development of economic and socialized
housing projects.
a. HLURB c. LGU
b. HUDCC d. SHDA

3. Under BP 220, the basic needs of human settlements in descending order are as follows:
a. Water, movement and circulation, storm drainage, solid and liquid waste disposal
b. Water, movement and circulation, storm drainage, power
c. Water, movement and circulation, power, storm drainage
d. Water, power, movement and circulation, storm drainage

4. Site preservation is one of the requirements of subdivision development under BP 220 wherein
suitable trees with a caliper diameter of _____ millimeters or more shall be preserved.
a. 100 c. 300
b. 200 d. 400

5. Under BP 220, the minimum area for land to be allocated for parks and playground should be
_____% of gross area based on 150 lots and below per hectare.
a. 2.5% c. 3.5%
b. 3.0% d. 5%

6. Under BP 220, the maximum area for land to be allocated for parks and playground should be
_____% of gross area if number of lots per hectare is above 225 lots.
a. 5.0% c. 9%
b. 7.0% d. 10%
7. Area for parks and playground under BP 220, in no case, should not be less than ____sqm.
a. 100 c. 300
b. 150 d. 350

8. Parks and playground is mandatory for BP 220 projects if gross area of subdivision is at least
________ .
a. 5,000 sqm. c. 1.5 hectares
b. 1 hectare d. 2 hectares

9. Under BP 220 projects, if saleable lots per hectare are above 225 lots, the area for community
facilities should be at least ____% per hectare.
a. 1% c. 2%
b. 1.5% d. 2.5%

10. Under economic housing, the minimum right-of-way for major road is ________meters.
a. 6 c. 8
b. 7 d. 10

11. Under economic housing, the maximum right-of-way for major road is ________meters.
a. 10 c. 14
b. 12 d. 15

12. Under economic housing, the minimum right-of-way for minor road is ________meters.
a. 7.0 c. 6.0
b. 5.5 d. 6.5

13. Under socialized housing, the minimum right-of-way for major road is ________meters.
a. 6 c. 8
b. 7 d. 10

14. Under socialized housing, the maximum right-of-way for major road is ________meters.
a. 10 c. 14
b. 12 d. 15

15. Under socialized housing, the minimum right-of-way for minor road is ________meters.
a. 7.0 c. 6.0
b. 5.5 d. 6.5
16. For economic housing with right-of-way of 8-meter width, the carriage
way should be ____meters net planting strip and sidewalk.
a. 7.0 c. 6.0
b. 5.5 d. 6.5

17. For socialized housing with right-of-way of 8-meter width, the carriage way should be
____meters net planting strip and sidewalk.
a. 7.0 c. 6.0
b. 5.5 d. 6.5

18. For economic housing, the minimum lot area for single detached is ______ sqm.
a. 50 c. 72
b. 60 d. 80

19. For socialized housing, the minimum lot area for single detached is ______ sqm.
a. 50 c. 64
b. 60 d. 70

20. For economic housing, the minimum lot area for duplex and single attached is ______ sqm.
a. 50 c. 60
b. 54 d. 70

21. For socialized housing, the minimum lot area for duplex and single attached is ______ sqm.
a. 32 c. 48
b. 40 d. 50

22. For economic housing, the minimum lot area for rowhouses is ______ sqm.
a. 24 c. 36
b. 30 d. 40

23. For socialized housing, the minimum lot area for rowhouses is ______ sqm.
a. 24 c. 30
b. 28 d. 32

24. The minimum lot frontage of corner lot for economic housing single detached is
_______meters.
a. 5 c. 6
b. 7 d. 8
25. The minimum lot frontage of regular lot for economic housing single detached is _____meters.
a. 5 c. 6
b. 7 d. 8

26. The minimum lot frontage of duplex for economic housing is _____meters.
a. 5 c. 6
b. 7 d. 8

27. The minimum lot frontage of rowhouse for economic housing is _____meters.
a. 3.5 c. 6
b. 5 d. 4

28. The minimum lot frontage of corner lot for socialized housing single detached is
_______meters.
a. 5 c. 6
b. 7 d. 8

29. The minimum lot frontage of regular lot for socialized housing single detached is _____meters.
a. 5 c. 6
b. 7 d. 8

30. The minimum lot frontage of duplex for socialized housing is _____meters.
a. 5 c. 6
b. 7 d. 8

31. The minimum lot frontage of rowhouse for socialized housing is _____meters.
a. 3.5 c. 6
b. 5 d. 4

32. The minimum front setback for both economic and socialized housing should be _____meters.
a. 1.0 c. 1.5
b. 1.2 d. 2
33. The minimum setback for side yard for both economic and socialized housing should be
_____meters from building line.
a. 1.0 c. 1.5
b. 1.2 d. 2

34. The minimum setback at the back of the house for both economic and socialized housing
should be _____meters.
a. 1.0 c. 1.5
b. 1.2 d. 2

35. Minimum ceiling line height from finished floor line to ceiling line is ______ meters.
a. 2 c. 2.5
b. 2.2 d. 2.75

36. Mezzanine floors shall have a clear ceiling height of not less than __meters above and below it.
a. 1.6 c. 1.8
b. 1.75 d. 2

37. For BP 220 projects, minimum clear height for door should be ______meters.
a. 1.6 c. 1.8
b. 1.75 d. 2

38. For BP 220 projects, minimum clear widths for main door should be ______meters.
a. O.80 c. 0.90
b. 0.75 d. 1.0

39. For BP 220 projects, minimum clear widths for bedroom door should be ______meters.
a. O.60 c. 0.70
b. 0.65 d. 0.75

40. For BP 220 projects, minimum clear widths for bathroom door should be ______meters.
a. O.50 c. 0.60
b. 0.55 d. 0.65
 TEST NO. 4
Licensing Rules and Regulation (RA 9646)

1) Refers to real estate service act of the Phils of 2009

a. RA6732 b. RA6552 c. RA9646 d. RA9700 e. RA8763

2) Date of effectivity of real estate service act of the Phils.

a. June 30, 2009 b. July 30, 2010 c. July 30, 2009 d. June 30, 2010

3) Deadline of registration without examination per IRR of real estate service act of the Phils.
a. June 30, 2011 b. July 30, 2011 c. Dec 31, 2010 d. Dec. 30, 2011 e. July 1, 2011

4. License expired on December 31, 2009 ( registration without examination)CPE required

a. 12 hrs b. 15 hours c. 18hrs d. 24 hours e. 120 hours

5. License expired on December 31, 2008

a. 12 hrs b. 15 hours c. 18hrs d. 24 hours e. 120 hours

6.. License expired on December 31, 1995

a. 12 hrs b. 15 hours c. 18hrs d. 24 hours e. 120 hours

7. Passed the exam on 2008, unable to secure license from DTI, CPE required
a. 12 hrs b. 15 hours c. 18hrs d. 24 hours e. 120 hours

8. Passed the exam on 2007, unable to secure license from DTI, CPE required
a. 12 hrs b. 15 hours c. 18hrs d. 24 hours e. 120 hours

9. Passed the exam on 2000, unable to secure license from DTI, CPE required in general
a. 12 hrs b. 15 hours c. 18hrs d. 24 hours e. 120 hours

10. Minimum acceptable number of training hours by a service provider for brokers exam
a. 18 hrs b. 15 hours c. 24hrs d. 60 hours.. e. 120 hours

11. Minimum acceptable number of training hours by a service provider for salesman with 3-year
experience upon the effectivity of the law but without DTI salesmans license
a. 18 hrs b. 15 hours c. 24hrs d. 60 hours e. 120 hour

12. For practicing real estate without the required license is penalized in an amount of no less than
a. P100K b. P150K c. P200K d. P50K e. P20K

13. However, a licensed practitioner who violated RESA Law is penalized in an amount of no less
than
a. P100K b. P150K c. P200K d. P50K e. P20K
14. For practicing real estate without the required license maybe penalized by imprisonment of no
less than
a. 6months b. one year c. 2 years d. 4 years e. 3 years

15. Licensed practitioner who violated RESA Law maybe penalized by imprisonment of no less than
a. 6months b. one year c. 2 years d. 4 years . 3 years

16. Considered real estate practitioners except:

a. developer b. broker c. appraiser d. consultant e. assessor

17. The chairperson of first PRBRES shall serve for at least

a. 1 year b. 2 years c. 3 years d. 4 years e. 5 years

19. Maximum years of service for the members of the Board including reappointment
a. 4 years b. 6 years c. 8 years d. 9 years e. 10 years

20. Organization of the first Board (PRBRES) should be within _____ from the effectivity of RESA
Law.
a. 3 months b. 6 months c. 2 months d. 1 month e. 1 year

21. Results of the examination shall be released within ______ from the last day of the
examination.
a. 5 days b. 10 days c. 15 days d. 20 days e. 1 month

22. A revoked license maybe reinstated in _______.

a. 6 months b. 1 year c. 2 years d. 3 years e. 5 years

23. Within ______years from the effectivity of RA 9646, all existing and new positions in the
national or local government, shall be filled only by registered and licensed real estate service
practitioners.
a. 1 year b. 2 years c. 3 years d. 4 years e. 5 years

24. A licensed real estate broker can only hold ______ salespersons.
a. 10 b. 20.. c. 30 d. 50 e. no limit as long as licensed

25. Term used in describing agents of developers who are getting allowances plus commissions.
a. sales agents b. accredited agents c. in house agents d. independent
contractors..

26. Qualified members of CPE Council are representatives of, except:

a. PRBRES
b. AIPO
c. Academe
d. Commission
e. all of the above
27. The Code of Ethics within 6 months after the effectivity of RA9646 shall be prepared by the
following except:
a. PRC b. PRBRES c. AIPO d. CHED e. HLURB f. Dept. of Finance

28. A licensed practitioner who violated any section of RA 9646 shall be meted the penalty of a
fine of not less than P____________
a. P20K b. P30K c. P50K d. P100K e. P200K

29. or imprisonment of not less than _______ years, or both upon the discretion of the court.
a. 6 months b. one year c. 2 years d. 3 years e. 4 years

30. An unlicensed practitioner who violated any section of RA 9646 shall be meted the penalty of a
fine of not less than P____________
a. P50K b. P100K c. P300K d. P200K e. P400K

31.. or imprisonment of not less than _______ years, or both upon the discretion of the court.
a. 6 months b. one year c. 2 years d. 3 years e. 4 years

31a. The first chairperson of PRBRES is:

a. Rafael Fajardo B. Nicolas Lapena Jr. C. Eduardo Ong D. Ramon Cuervo

Teresita Manzala (PRC)

32. The minimum educational requirement that an applicant for a license as a broker is:
a. college graduate with 4-year course
b. seventy two (72) units in college
c. eighty two (82) units in college
d. one hundred forty four (144) units in college

33a. In general, the minimum educational requirement for a salesperson to be accredited by PRC is:
a. high school graduate
b. seventy (70) units in college
c. completed at least 2 years of college education (72 units)
d. one hundred forty four (144) units in college

33b. Per IRR of RA9646, the original deadline for salespersons to be accredited by PRC through the
Board is:
a. December 31, 2009
b. December 31, 2010
c. December 31, 2011
d. July 30, 2011 ( Sec. 31)

34. After the effectivity of RA9646, the IRR shall be prepared within ________. Sec.42
a. 6 months b. 1 year c. 90days d. 2 years
35. Per IRR of 9646, all documents, records of all practitioners who already passed the examination
under DTI-RESCOP shall be transferred/ turned-over to PRC within:
a. 6 months b. 1 year c. 90days d. 2 years

36. Real estate practitioners are required to indicate the following when they sign documents
related to the practice of their professions except: Sec. 38
a. Certificate of Registration number
b. Professional ID number
c. HLURB Registration number
d. AIPO membership number
e. PTR number

37. Under IRR of RA 9646, the lawyers of the ___________ shall act as prosecutors against illegal
practitioners and violators of RA9646.
a. PRBRES b. PRC c. HLURB d. RTC

38. The Code of Ethics of real estate practitioners, under IRR of RA9646, shall be prescribed and
by:
a. AIPO b. PRC c. PRBRES d. HLURB

39. A real estate practitioner duly registered with the Board shall __________ become a member of
AIPO.
a. conditionally b. automatically c. initially d. temporarily

40. Under IRR of RA9646, PAREB, REBAP and all other real estate service associations, shall be____
into one national organization as the only AIPO of real estate service practitioners.
a. merged b. consolidated c. combined d. integrated

41. Under IRR of RA9646, every registered real estate service practitioner must establish and
maintain principal place of business and as such must display their proof of registration except:
Sec. 33
a. Certificate of registration
b. Professional ID card
c. CR and Prof. ID card of all service practitioners employed in such office
d. None of the above

42. ABC Realty Corporation, a real estate brokerage company, is acting through the license of Mr.
Juan dela Cruz, a registered real broker. Mr. Reyes, a salesperson of the company, consumated a
sales transaction which entitles him to receive 3% commission. The 3% commission of Mr. Reyes to
be issued by the developer must be payable and in the name of _________under IRR of RA9646 to:
a. Mr. Reyes net of withholding tax
b. Mr. Juan dela Cruz – the licensed broker
c. ABC Realty Corporation
d. Any authorized person of the company
43. Consequences of RA9646 to an assessor of local government unit with permanent appointment
failed to register as an appraiser to PRC through the Board except:
a. shall continue to perform their functions without need for re-appointment
b. no diminution of status, rank and salary grade
c. may only be replaced if vacancy occurs
d. may still be promoted to a higher position

44. Generally, selling real estate habitually requires license. The following are exceptions and may
sell real estate legally : ( APRECOT )
a. any person acting through court order
b. sheriff in foreclosure sales
c. receiver or trustee in bankruptcy proceedings
d. mortgagee in judicial foreclosure
e. owners of real estate selling his personal residence
f. attorney in fact of the seller
g. all of the above

45. All qualified applicants for registration without examination are required to take an oath
before the following : ( Sec. 25 )
a. chairman of PRBRES
b. any of the 5 members of PRBRES
c. Commissioner of PRC
d. any officer of the Commission
e. all of the above

46. All these qualified applicants for registration without examination are required to take an oath
:
a. DTI passer for brokers exam
b. DTI passer for appraisers exam
c. DTI passer for consultants exam
d. High school graduate with previous salesman’s license at DTI
e. Inexperienced applicant for salesperson who completed 2nd year of college
f. all of the above

47. Requirements for a revoked license of a real estate practitioner to be reinstated except:
( Sec. 21 )
a. Upon discretion of the Board may be exempted in taking another examination
b. Upon discretion of the Commission
c. Maybe done only after expiration of 2-year period from date of revocation
d. Board’s petition through a resolution subject to the approval of the Commission
48. General qualifications of the chairman and members of PRBRES
are the following : ( Sec. 6 )
a. resident and citizen of the Phils.
b. college graduate (4-year course)
c. not accused of criminal offense involving moral turpitude
d. a member of the AIPO but not an officer
e. an active and licensed real estate practitioner for at least 10 years
f. all of the above

49. Check those qualified only to take consultants examination. Sec. 14

a. licensed broker for at least 10 years, college graduate
b. licensed appraiser for at least 5 years college graduate
c. an active assessor for at least 2 years
d. an active assessor for at least 5 years
e. an active assessor for at least 10 years college graduate
f. an active private bank appraiser for at least 2 years
g. an active private bank appraiser for at least 5 years
h. an active private bank appraiser for at least 10 years college graduate
i. an active government bank appraiser for at least 2 years
j. an active government bank appraiser for at least 5 years
k. an active government bank appraiser for at least 10 years college graduate
l. an active appraiser for at least 10 years (under DTI) but not a college graduate..
m. an active broker for at least 10 years (under DTI) but not a college graduate..

Exempted from taking the examination:

n. not college graduate but covered by registration without exam (Grandfathers rule)

50. Check those not qualified to take appraisers examination. ( Sec. 14 )

a. licensed broker for at least 5 years under DTI but not college graduate
b. a college graduate who failed in the broker’s exam (qualified)
c. a college graduate of 4-year course (qualified)
d. a licensed broker and consultant under DTI but not a college graduate
e. an active private bank appraiser for at least 10 years but not a college graduate
f. an active government bank appraiser for at least 10 years but not a college graduate

TEST 5
Real Estate Laws

1) Refers to law on acquisition by a natural born Filipino citizen on residential property

a. RA6732 b. RA6552 c. RA9653 d. RA9700 e. BP185

2) Refers to law on acquisition by a natural born Filipino citizen on Property for business purpose
a. RA6732 b. RA8179 c. RA9653 d. RA9700 e. BP185
3) Urban Development and Housing Act (The Lina Law)
a. RA6732 b. RA6552 c. RA9653 d. RA9700 e. RA7279

4) Property Registration Decree

a. PD 957 b. PD 1529 c. PD1517 d. PD1216 e. PD471

5) Dual citizenship law

a. RA6732 b. RA6552 c. RA9653 d. RA9700 e. RA9225

6) Law that allows foreign investors to lease private properties for a maximum of 50yrs
renewable once for 25 yrs
a. RA6732 b. RA6552 c. RA9653 d. RA9700 e. RA7652

7) Law defining “open space” in residential subdivision

a. PD957 b. RA6552 c. RA9653 d. RA9700 e. PD1216

8) Rent Control Law of 2009

a. RA6732 b. RA9646 c. RA9653 d. RA9700 e. RA8974

9) Expropriation Law of 2000

a. RA6732 b. RA6552 c. RA9653 d. RA9700 e. RA8974

10) Comprehensive Agrarian Reform Law of 1988

a. RA6732 b. PD1517 c. RA9653 d. RA9700 e. RA6657

11) Family Code of 1988

a. PD957 b. EO90 c. RA9653 d. RA9700 e. E.O. 209

12) National Shelter Program, designated HLURB as the sole regulatory body of housing and land
devt.
a. PD957 b. EO90 c. RA9653 d. RA9700 e. E.O. 209

13) Home Guaranty Act - Magna Carta for Homeowners & Homeowners Association
a. RA6732 b. RA6552 c. RA9653 d. RA8763 e. BP185

14) Law where HLURB assumed the functions of NHA on real estate management
a. RA6732 b. RA8179 c. RA9653 d. RA9700 e. EO648

15) Maceda law of 1972

a. RA6732 b. RA6552 c. RA9653 d. RA9700 e. RA7279

16) Subdivision and Condominium Buyers Protective Decree

a. PD 957 b. PD 1529 c. PD1517 d. PD1216 e. PD471
17) Dual citizenship law
a. RA6732 b. RA6552 c. RA9653 d. RA9700 e. RA9225

18) Law which regulate the development and sale of subdivision and condominium
a. PD 957 b. PD 1529 c. PD1517 d. PD27 e. PD471

19) Tenants Emancipation Decree for rice and corn lands

a. PD 957 b. PD 1529 c. PD1517 d. PD27 e. PD471

20) Law which prohibits the eviction of occupants from lands identified and proclaimed as APDs or
ULRZs and exempting such land from payment of realty tax ( July 23, 1986)
a. PD 957 b. PD 1529 c. PD1517 d. PD2016 e. PD471

21) An act authorizing Ministry of Human Settlements ( now HLURB) to establish and promulgate
different levels of standards for economic and socialized housing.
a. PD 957 b. PD 1529 c. PD1517 d. BP185 e. BP220

22a. Condominium Law

a. PD 957 b. RA6552 c. RA4726 d. RA9700 e. RA9225

22b. An act allowing reconstitution of title administratively destroyed by

fire, flood, etc (June8, 1989)
a. PD 957 b. RA6552 c. RA4726 d. RA9700 e. RA6732

23) Law which discontinue the Spanish Mortgage Law system of registration (Feb. 16, 1976)
a. PD 957 b. PD1096 c. PD1529 d. PD772 e. PD892

24) Anti squatting law (August 20, 1975)

a. PD 957 b. PD1096 c. PD1529 d. PD772 e. RA7279

25) An act providing legitimization of children born to parents below marrying age
a. RA6732 b. RA9858 c. RA9653 d. RA9700 e. RA9225

26) An act which provides that age of majority commences at 18 years as incorporated under
Art.234 of the Family Code
a. RA6732 b. RA9858 c. RA9653 d. RA6809 e. RA9225

27) Law which creates DENR, reorganization and renaming Dept of Environment, Energy and
Natural Resources as DENR (June 10, 1987)
a. PD957 b. EO90 c. RA9653 d. EO 192 e. E.O. 209

28) Local Government Code of 1991

a. RA8424 b. RA7279 c. RA9653 d. RA9700 e. RA7160
29) Tax Reform Act of 1997
a. RA8424 b. RA7279 c. RA9653 d. RA6552 e. RA4726

30) Brokerage Law

a. RA8424 b. RA2728 c. RA9653 d. RA6552 e. RA4726

TEST 6 ( Land Reform )

1. Under the Urban Land Reform Law (P.D. 1517), an area is considered urban when it has a
population density of at least ____ and where at least 50% of economically active residents are
engaged in non-agricultural activities.
a. 500 residents per square km. c. 1,500 residents per square km.
b. 1,000 residents per square km d. 2,000 residents per square km.

2. Under RA 7279, _________ shall be resorted to only when other modes of acquisition have been
exhausted.
a. Negotiated Purchase c. Expropriation
b. Land Consolidation d. Joint-Venture Agreement

3. Property escheated to the government is considered as

a. Public Dominion c. Regalian Property
b. Patrimonial Property d. Land of Public Domain

4. Under Urban land Reform Act (PD 1517), the acquisition of lots of varying ownership through,
among others, expropriation or negotiated purchase for the purpose of planning is
a. Land Banking b. Land Exchange
c. Land Use Plan d. Land Assembly

5. The following are modes of acquiring lands for purposes of Urban Development and Housing Act,
except:
a. Community mortgage c. negotiated purchase e. foreclosure
b. joint venture agreement d. land swapping

6. Conversion permit of agricultural land of not more than 5 hectares shall be approved by the:
a. Municipal Agrarian Reform Office d. Usec. for Legal Affairs, DAR
b. Provincial Agrarian Reform Office e. Secretary, DAR
c. Regional Agrarian Reform Office

7. The acquisition of the land in advance of actual need based on present value for future planned
development is referred to in the Urban Land Reform Law as:
a. Land Assembly c. Urban Renewal
b. Land Banking d. New Settlement Development
8. Urbanizable areas refer to sites and lands which, considering present characteristics and
prevailing condition, display marked and great potential of becoming urban areas within the
period of
a. Two (2) years c. Five (5) years e. None of the above
b. Three (3) years d. Ten (10) years

9. The following are modes of acquiring lands for the purposes of the Urban Development and
Housing Act of 1992 except.
a. Joint Venture agreement c. Community mortgage e. expropriation
b.. Negotiated pruchase d. Accretion

10. Land valuation guidelines for socialized housing is set by the: ( RA 7279 )
a. HUDCC c. Department of Finance e. Provincial/City Assessor
b. NHA d. Regular courts

11. This government agency is responsible for the preparation of comprehensive land use in a
locality.
a. Local government unit c. Register of Deeds e. DAR
b. HUDCC d. HLURB

12. The following are priorities of lands that may be acquired for socialized housing purpose under
RA 7279,except:
a. lands owned by the government d. alienable lands of public domain
b. privately owned lands e. BLISS not yet acquired
c. unregistered but idle lands

13. Which of the following government agencies is in charge of the over-all strategies for the
country’s National Housing Program?
a. National Housing Authority
b. Housing and Land Use Regulatory Board
c. Housing and Urban Development Coordinating Council
d. None of the above

14. Registration of sale of a five (5) hectare agricultural land must be accompanied by
a. DAR Conversion Permit c. DAR Clearance e. all of the above
b. HLURB License to Sell d. LGU Development Permit

15. The following are public dominion, except

a. Navigate river converted into fishpond
b. Canal
c. Public plaza converted into housing
d. subdivision roads
e. natural resources
16. Ownership of a piece of land can be acquired through any of the following modes, except
a. tradition b. prescription c. occupation
d. accretion e. succession

17. Excluded from the coverage of CARP.

a. 9 %
b. 12%
c. 15%
d. 18% or more slope

18. It is refers to land located in the fringes of built-up communities which has the provincial
characteristics but is flavored with metropolitan utilities, facilities and amenities.
a. Urban land c. urban land e. rural land
b. Urbanizable land d. city satellite

19. Has ruled that all agricultural lands that are already classified as commercial, industrial or
residential before June 15, 1988 no longer need any conversion clearance even if it is still devoted
to agricultural activity
a. Republic Act 6657
b. Republic Act 7279
c. Ministry Order No. 39 series of 1985
d. DOJ Opinion No. 44, SERIES OF 1990
e. None of the above

20.. A principle of ownership which mandates property owners to use their property in a manner
that will promote not only their interest but also the general welfare.
a. Principle of social justice d. Principle of progression
b. Stewardship principle
c. Principle of conformity

21. Filipino citizens can acquire by patent agricultural lands of the public domain not exceeding:
a. Five hectares c. Ten hectares
b. Seven hectares d. Twelve hectares (1987 Constitution)

22. A former natural-born Filipino citizen can acquire urban land for business purpose not exceeding:
a. 1,000 sq. m. c. 5,000 sqm (RA8179)
b. 10,000 sq. m. d. 3 hectares

24. A former natural born Filipino citizen may in addition to acquiring residential land under
B.P. 185 may still acquire land for business or other purposes under R.A. 8179 provided the area
does not exceed
a. One (1) hectare of urban land or 2 hectares of rural land
b. 5,000 square meters of urban land or 3 hectares of rural land
c. 5,000 square meters of urban land or 5 hectares of rural land
d. 1,000 square meters of urban land or 3 hectares of rural land
 25. Spouses who were married after the effectivity of the Family Code without any pre-nuptial
agreement shall be governed by:
a. Conjugal partnership of gains d. any of the above
b. Absolute separation of property e. none of the above
c. Absolute community of property

26. Under R.A. 6732, administrative reconstitution of lost or destroyed original copies of
certificates may be availed of when the lost or destroyed certificates in the registry of deeds
consist of at least:
a. 10% of all titles in the registry d. 40% of all titles in the registry
b. 20% of all titles in the registry e. none of the above
c. 30% of all titles in the registry

27. Retention of landowner under PD 27 (rice and corn lands) underagrarian reform is:
a. 3 hectares (award ceiling) c. 7 hectares
b 5 hectares (CARP) d. 12 hectares

28. Retention of landowner under RA 6657 (CARP) reform is:

a. 3 hectares c. 7 hectares
b 5 hectares d. 12 hectares

29. Retention of landowner’s beneficiary who is at least 15 years old, actually tilling and managing
the farm under RA6657 (CARP) is:
a. 3 hectares per child c. 7 hectares per child
b 5 hectares per child d. 12 hectares per child

30. Award ceiling for the beneficiary of agrarian reform (RA6657) other than the children of the
landowner is:
a. 2 hectares c. 5 hectares
b. 3 hectares d. 7 hectares

31. Land Reform Act of 1933

a. RA 1400 c. RA 8532
b. RA 3844 d. CA 141

32. Urban Land Reform Law (covered 284 sites APDs and ULRZs)
a. PD 1517 c. RA 8532 (law that extended RA6657)
b. RA 7279 (covers all urban land) d. CA 141

33. Urban Development and Housing Act (Lina Law)

a. RA 1517 c. RA 8532
b. RA 7279 d. CA 141 (Public Land Act of 1936)
34. Agricultural Land Reform Code
a. RA 1400 c. RA 8532
b. RA 3844 d. CA 141

35. Extended the funding of the CARP for another 10 years ( (1998 – 2008)
a. RA 1400 c. RA 8532 (extended by RA9700 – 5yrs)
b. RA 3844 d. RA9700

36. Extended the funding of the CARP for another 5 years ( (2009-2013)
a. RA 1400 c. RA 8532
b. RA 3844 d. RA9700 (P150B) -CARPER

37. Tenant-farmer under PD 27 is deemed owner of the _____hectares of the land he tills if not
irrigated.
a. 3 hectares c. 5 hectares
b. 2 hectares d. 7 hectares

38. Tenant-farmer under PD 27 is deemed owner of the _____hectares of the land he tills if
irrigated.
a. 3 hectares c. 5 hectares
b. 2 hectares d. 7 hectares

39. If land was sold to a third person without the knowledge of the tenant, the latter may redeem it
within ___ years from date of registration
a. 1 year c. 3 years
b. 2 years d. 5 years

40. The ________ has the authority to proclaim urban and land reform zones shall proclaim specific
parcels of urban and urbanizable lands as urban land reform zones.
a. President of the Phils c. Urban Development Council
b. National Housing Authority d. Bureau of Lands

41. Agricultural lands reclassified either as residential, commercial or industrial thru zoning
ordinance approved by the Housing and Land Use Regulatory Board before _______ is exempted
from the coverage of Agrarian Reform.
a. June 1, 1988 c. July 1, 1988
b. June 15, 1988 (CARP effectivity) d. July 15, 1988

42. Any subdivision sale, lease or mortgage, including the proposed price, rental or encumbrance,
prior approval of the ___________.
a. NHA c. HUDCC
b. HLURB d. President of the Phils.
43. When the area is five hectares or less but buyer will use the land for non-agricultural purpose, or
when the area, consist of more than five hectares regardless of the buyer’s intended utilization, what
is required is _________.
a. DAR clearance c. LGU clearance
b. DAR conversion d. LGU reclassification statement

44. The official authorized to approved or disapprove conversion of 5 hectares and below is:
a. DAR Undersecretary c. DAR Secretary
b. DAR Regional Director d. DAR Executive Secretary

45. The official authorized to approved or disapprove conversion for areas above five hectares but
not more than fifty hectares.
a. DAR Undersecretary c. DAR Secretary
b. DAR Regional Director d. DAR Executive Secretary

46. The official authorized to approve or disapprove conversion for areas of more than fifty
hectares, except for those highly restricted from conversion which shall be subject to his approval
regardless the area.
a. DAR Undersecretary c. DAR Secretary
b. DAR Regional Director d. DAR Executive Secretary

47. Valid transaction under agrarian reform law. If the land was identified as tenanted after 1972,
the sale may be allowed only after ____ years from the date of recognition of tenants.
a. 2 years c. 7 years
b. 5 years d. 10 years

48. Valid transaction of agricultural land. Sale by agrarian reform beneficiaries (ARBs)in all cases,
lands awarded to ARB’s may only be sold by them after the issuance of DAR clearance, subject to the
following policies: The buyer will not exceed the aggregate ownership ceiling of ____ hectares.
a. 5 hectares c. 7 hectares
b. 3 hectares d. 12 hectares

TEST 8
True or False (All Converted to True)
Compiled by Cesar E. Santos Real Estate Academy
Actual Examination

1. Under the local Government Code, the issuance of development permit and approval of
subdivision plans, including issuance of locational clearance has been devolved with the local
government (RA7160)
2. In the economic sense, infiltration refers to the displacement of the present residents with
people of lower economic status or different cultural or social background.

3. The Articles of Incorporation of the Homeowners Association is registered with the HLURB. If
registered with the SEC, it should still be registered with the HLURB.

4. The annotation at the back of the title that refers to “Rule 74, Section 4 of the Rules of Court”
means that the property is subject to claims by any heir, creditor or person who may have
been unduly deprived of their lawful participation in the estate within a period of two years
after the settlement and distribution of said estate.

5. Under local government code of 1991 (RA7160), a barangay treasurer may be deputized to
collect all taxes on realty located in the barangay

6. A Deed of Sale with Mortgage is not covered by Maceda Law because there is already
conveyance of ownership.

7. Acquired real estate assets held by banking institution when sold are subject to creditable
withholding tax. They are not subject to capital gains tax and value added tax.

8. Condominium projects are not covered by the 20% socialized housing requirement under R.A.
7279.

9. Under the new IRR on PD 957, the development permit issued by the local government for a
subdivision project is valid up to three years. It used to be 2 years only.

10. Real estate owned by educational institutions which is used exclusively and directly for
educational purpose is exempted from real estate tax.

11. A notice of adverse claim annotated on the title can be cancelled after the expiration of 30
days after its validity and annotation by verified petition with the Register of Deeds.
12. The Community Mortgage Program of the government allows the squatters to own the land
they occupy by forming themselves into a cooperative and paying for the property through the
National Home Mortgage Finance Corporation

13. In case of conflict between the condominium corporation and the master deed, the latter shall
prevail.

14. In a deed of sale with assumption of mortgage, the selling price is the basis of DST on the sale.

15. A verbal authority to sell given by the owner to the broker is valid.

16. The highest selling price for socialized housing project is P450,000.00

17. The Housing and Urban Coordinating Council (HUDCC) is the body which formulates the
policies and objectives as well as the over-all strategies of the country’s national shelter
program. ( The current president is VP Jejomar Binay (2014))

18. The buyer of a house and lot is required to declare said acquisition with the assessor’s office
within 60 days from the date of purchase.

19. Registration of a sale of real estate in favor of a Filipina married to a foreigner does not require
anymore now an affidavit of waiver by the foreign husband. See Consulta of Benedicto Ulep.
Effectivity is March 2003. Eulalio Diaz III – 2014 administrator of LRA

20. Donation of the open space in a subdivision project in favor of the local government is
exempted from donor’s tax.

21. Under the local Government Code, agricultural lands more than one hectare are subject to the
additional 5% idle land tax when ½ of the area is still uncultivated.

22. In case of installment or deferred payment sale, the documentary stamp tax shall be paid only
upon execution and notarization of the deed of absolute sale.

23. As provided for by RA 7279, a developer of a subdivision project is required to develop 20% of
the project for socialized housing. Covered are PD 957 project and economic housing projects.
24. In case of conflict between the use restriction annotated in the title and a zoning ordinance,
the latter shall prevail.

25. The development of a 20-hectare agricultural land into a farmlot subdivision does not require
DAR Conversion Permit - only clearance because there is no conversion.

26. Pactum Commissorium is a stipulation in the mortgage contract prohibiting mortgagee from
appropriating the property within the period of mortgage.

27. Pactum de non Aliendo is a stipulation in the mortgage contract prohibiting mortgagor from
alienating the property within the period of mortgage.

28. Conversion to a home lot from agricultural use is allowable, when the applicant owns the lot,
intends to establish a dwelling place and the lot area is not to exceed 500 square meters.

29. A Pag-ibig member’s monthly amortization for the loan should not exceed 35% of mo. income
for loan of P1250,000 and 30% for loan of over P1250,00.00. Maximum loan repayment is 30
years. A 65-year old man may qualify for a 5-year loan. The loan should be all paid at age 70 of
the applicant. Purchase of vacant lot is allowed for a maximum of 1,000 sqm. as long as it is
developed under Pag-ibig program.Three (3) members may tacked themselves under one loan.
Mortgage redemption insurance is applicable to all co borrowers. ( READ CIRCULAR 310 )
 Instant membership for instant loan : pay 24 monthly contributions – as if you are a
member for the last 24 months
 Maximum amortization based on capacity to pay is :
o For loans of P1250,000.00 and below - 35% of gross income
o For loans over P1250,000.00 - 30% of gross income

30. Foreigners can collectively own up to 40% interest in a townhouse complex covered by a
Condominium Certificate of Title.

31. Condominium concept can be applied to horizontal projects like residential townhouses,
industrial warehouses. A condominium project is sometimes called “ vertical subdivision”.

32. An additional ad valorem tax of not exceeding 5% annually of the assessed value shall be added
to the basic real property tax on idle lands.
33. The Land Bank is mandated to compensate the landowner the amount that may be agreed
upon by the land owner and the Department of Agrarian Reform under the CARP law.
 Payment to Land Bank is 30 years or once a year payment
 Default : non-payment for 3 consecutive years

34. A person who disposes his principal residence, which has been fully utilized in acquiring or
construction of new principal residence within 18 months from date of sale, is conditionally
exempted from capital gains tax.

35. The Department of Energy is one of the members involve in the preparation of the necessary
rules and regulation in implementing RA 8974 – an act which facilitates the right-of-way
acquisition for government infrastructure projects.
 Purpose : road widening, road expansion, flood control projects (eminent domain)
 Public use with just compensation

36. Under PD 957, a juridical person refers to a business firm whether a corporation, partnership,
cooperative, association or a single proprietorship

37. The seller who paid the capital gains tax is not required to include his capital gains as part of
his income when he files his income tax. CGT is a final withholding tax or final tax.

38. In an approved lot plan, you will never find a direction described as N92 deg. 37’40’’E

39. The transfer tax in the sale of real estate properties is paid at the treasurer’s office of the local
government. Corporations when selling properties located within Quezon City, Taguig, Pasig,
Caloocan and Las Pinas, all in Metro Manila, are subject to another local tax – business tax.

40. Under R.A. 8791, the maximum redemption period in extrajudicial foreclosure of mortgage
executed by a corporation in favor of a bank is 3 months or upon registration of the certificate
of sale whichever comes first.

41. Corporation maybe subject to capital gains tax if it can be proven that the property is idle for at
least 2 years before the sale. This is mentioned at the website of the BIR.

42. In the amendment of the master deed of mixed use condominium project, the required
majority vote of registered owners is based on floor area of ownership. RA 4726 –
condominium law
 Exclusively residential or commercial - per unit basis
 In the absence of any stipulation in the master deed – per unit
 Mixed use – per floor area
43. Donation in favor of a legally adopted child is subject to a maximum rate of 15% donor’s tax.

44. In foreclosure sale, the creditor bank is the statutory seller and is liable to pay the capital gains
tax based on the bid price.

45. Administrative reconstitution of lost or destroyed original copy of certificate of title can be
availed of only when the lost or destroyed certificates in the Registry of Deeds consist of at
least 10 percent of all titles in the Registry or 500 titles whichever is higher. (RA6732)
 RA 6732 - administrative reconstitution
 RA 26 - judicial reconstitution

46. A multiple listing is a cooperative arrangement among the real estate board members in the
sale of a real property in which commission is divided between the broker who have listed
and the other broker who made the sale.

47. The basis of capital gains tax or creditable withholding tax and documentary stamp tax is the
selling price or the market value of the property as determined by the BIR. In lot only, the
market value of the BIR is zonal value or the market value of the assessor as found in the tax
declaration whichever is higher. In house and lot, the market value of the BIR is usually the
sum of zonal value of the lot and market value of the house per tax declaration of the assessor
at the time of sale.

48. Bulk buying refers to the purchase by a person, natural or juridical, two or more saleable lots
or units within an HLURB approved subdivision.

49. All Filipinos who have lost their Philippine citizenships and have become citizens of another
country can avail of the Dual Citizenship Law under ( R.A. 9225 ).

50. Agricultural land with a slope of 18% or more is exempt from the coverage of the agrarian
reform law.

51. As a general rule,In case area is different from that stated in the contract, if the sale is for a
lump sum there shall be no increase nor decrease in the price.

52. A Deed of Exchange involving two residential houses and lots are both subject to capital gains
tax.
53. An uninhabited and undeveloped parcel of land for the last 10 years owned by the local
government is not exempted from the coverage of Urban Development and Housing Program
(UDHP).

54. A lessor cannot simply eject the lessee with an unexpired lease contract upon the ground that
the leased premises had been sold to a third person but who has knowledge of the lease, even
if the sale is registered. Knowledge of the lease is tantamount to registration.

55. An earnest money is considered as proof of perfection of Contract to Sell. Earnest money is
part of the purchase price while option money (consideration for the right to purchase at a
given time and at a given price) is not part.

56. An alien can be a mortgagee of a real property in the Philippines.

57. An illegitimate child is also a compulsory heir and entitled to one-half the share of a
legitimate child under intestate proceeding – ( no will ).

58. A foreign corporation may construct a condominium project on a parcel of land leased by said
corporation

59. Dacion en Pago of real estate classified as capital asset is also subject to capital gains tax.

60. The assignment in favor of the condominium corporation of the land where the condominium
project is erected is not subject to capital gains tax. It is a tax-free exchange.

61. When two (2) different brokers cooperate on a sale, the commission is not always split at fifty-
fifty.

62. Easements or restrictions on the title of a raw land shall apply to resulting lots when it is
subdivided.

63. If income approach is to anticipation, comparative (market data) approach and cost approach
is to substitution.

64. An alien can own a condominium unit or a townhouse unit in a condominium concept.
65. Lease of lands and buildings within ECOZONE to entities owned by aliens shall not exceed fifty
(50) years extendable once for a period of not more than 25 years.
 Foreign investors - 50yrs + 25yrs (industry)
 Individual foreign investors - 25 + 25

66. Attachment is the seizure of a property by a Court Order, usually done to have it available in
the event of adverse judgment of a pending case.
 Applicable to judicial foreclosure

67. As provided for in the CARP, three hectares may be awarded to each child of the landowner,
provided that he is at least 15 years of age actually tilling and managing the farm.

68. Mr. Reyes bought 30 town house units within an HLURB approved subdivision for the purpose
of reselling the same without alteration in the approved plan. This is an example of a block sale
and therefore Mr. Reyes is exempted in securing a Certificate of Registration and Licenses to
Sell from HLURB first before he could start selling said units.

69. In the absence of any provision in the master deed, the shares of condominium unit owners in
the common areas shall be based on a per unit basis.

70. The tenants of a residential apartment which is located in an urban land reform area are not
entitled to the right of first refusal if the apartment owner will sell the property.

71. Under R.A. 9225, commonly known as Dual Citizenship Law, former natural-born Filipinos are
not automatically conferred Philippine Citizenship. Needs an oath of allegiance to the
Republic.

72. Grace married Roy in 1989. On 1999, Grace’s surviving parent dies and she inherited a two (2)
hectare lot in Makati. After the settlement of estate, Grace sold the property without the
consent and over the objection of Roy. The sale is valid because the 2-hectare lot is an
exclusive property of Grace. Effectivity of Family Code is August 3, 1988.

73. A restriction provided in the Deed of Sale of a subdivision lot, which was not annotated in the
title is binding between parties.

74. Cul-de-sac is a passageway with only one outlet.

75. Option money is the money in consideration of the right to purchase or lease a property
within a specified term usually not part of the purchase price.

76. Purchase of a Home Guaranty Corporation Special Series Bonds is one mode of compliance
with the socialized housing requirement for subdivision projects.

77. Under R.A. 6657, the maximum area for retention is 5 hectares for the owner plus 3 hectares
for each child who is at least 15 years old and is actually tilling the land or managing the farm.

78. In general, the CARP Law (1988) covers all agricultural lands regardless of produce.

79. Under P.D. 1216, for one hectare and above, at least 30% is mandatory for open space in a
subdivision project.

80. In case of conveyances and transfers of real estate, the following taxes are payable to:
a. CGT, CWT, DST, VAT - payable to BIR
b. Donor and estate taxes - payable to BIR
c. Transfer and business taxes - payable to LGU treasurer’s office
d. Registration fee - payable to Register of Deeds
e. New tax declaration - LGU assessor’s office

81. In some old Spanish titles, the unit of measure of:

a. one (1) ares is equivalent to 100 square meters
b. and 1 centare is equivalent to 1 square meter.

82. The term of a condominium corporation is co-terminus with the duration of the condominium
project, the provision of the Corporation Law to the contrary notwithstanding.

83. In surveying, tie point refers to the reference point, a fixed object or monument such as
Bureau of Lands Location Monument (BLLM).
84. Antichresis is a contract whereby a property is hypothecated to secure an obligation where
the creditor is given right to possess the property and collect the fruits thereof. The loan
contract is usually called turn key loan.
Mortgage Antichresis
 Possession mortgagor mortgagee
 Realty tax mortgagor mortgagee
 Fruits mortgagor mortgagee

85. A unilateral Deed of Sale where the vendor only signs the contract of sale can be registered at
RD.

86. In the absence of any provision, the master deed of a condominium project, the interest of the
unit owners in the common areas shall be based on number of units owned.

87. A notice of adverse claim annotated in the title is valid only for a period of 30 days, in general.

88. All sales of subdivision lots may not always be covered by a license to sell from the Housing
and Land Use Regulatory Board (HLURB). There are exemptions.

89. Land acquired by a former natural born Filipino citizen under the foreign investment Act shall
be principally, directly and actually used by him in the conduct of his commercial business
including lease of land, but excluding buying and selling thereof. ( RA 8179 )

90. Gridiron refers to a subdivision scheme where the resulting blocks are rectangular in shape.
For flat terrain, it is square planning.

91. Real estate salesmen are covered by the bond of their brokers.

92. The sale of the principal residence maybe (conditionally) exempted from capital gains tax if
proceeds will be used to acquire new family home, however, the DST should be paid so as to
effect the transfer to the buyer.

93. Under the Pag-ibig loan, the collateral value of house and lot package is determined by
applying the loan to collateral ratio or loan to value ratio to the appraised value of the
property.
a. Loan Value = Appraised Value x Loan to Collateral Ratio
94. The rate of return earned by an investor which does not include allowance for capital
recovery is called interest rate.
Overall rate = Capitalization = Interest rate + Recapture rate

95. In succession, the estate of the deceased person is divided among heirs in accordance with
law:
a. Died intestate means no will; descent
b. Died testate means with will; devise ; the will is subject to probate of the court

96. Sale of real property with an initial payment of more than 25% is considered as a cash sale
which requires full payment of the capital gains tax before the sale can be registered. It is
called deferred payment sale.

97. The capital gains tax in the foreclosure sale of real estate classified as capital asset shall be
based on the bid price, not on zonal value.

98. Patrimonial property of the state is property owned by the state in its private capacity.
 Public domain - public capacity

99. Corporations cannot acquire agricultural lands of public domain by patent but may only
lease up to 1,000 hectares. Filipino citizen may acquire no more than 12 hectares or lease of
no more than 500 hectares.

100. A Registry of Property is a list of all realty property located within the territorial
jurisdiction of the local government unit concerned, prepared and maintained by the
provincial/city/municipal assessor.

101. Under RA 6552, the buyer who has paid less than 2 years of installment is entitled to
grace period of no less than 60 days plus 30-day notarial notice before the contract to sell
maybe cancelled and payments be forfeited. No right of refund if less than 2 years of
installment.

102. A real property auctioned by a local government unit in order to satisfy tax delinquency
of its owner may be redeemed, provided that, among others, the expenses of the sale, plus
interest of not more than 2% per month on the purchase price from the date of the sale to the
date of redemption shall be paid.
103. The documentary stamp tax is payable not later than five (5) days after the close of the
month when taxable document was made, signed, accepted or transferred. Practice is
notarization month.

104. Lien is a charge or encumbrance on property, usually for payment of some obligation
while lis pendens is a claim on ownership. Lien is money claim, lis pendens is ownership
claim.

105. The Land Registration Authority and the Land Management Bureau (Bureau of Land)
have concurrent jurisdiction in the approval of subdivision survey plans.
 LMB - for original survey - to patent or OCT
 LRA - titled property already OCT or TCT

106. To plot a given property, the basic data needed are the bearing (angular degrees), and
distance (linear measures) of the corners indicated in the lot descriptions. (Metes and bounds)

107. Ferdinand Lopez, son of Filipino migrants in California, acquired American citizenship by
virtue of his being born in USA. As such, his right to acquire real properties in the Philippines
is restricted by the prevailing laws on ownership by an alien. Mr. Lopez is considered here as a
natural Filipino citizen.
 See BP185 and
 RA8179 for his limited privilege.

108. A promise to buy and sell a determinate thing for a price certain is bilaterally
demandable.

109. Any disposition of the common areas of the condominium requires the affirmative vote
of the simple majority of the unit owners.
 Simple majority maybe based on number of units or based
 on floor area.

110. A contract purporting an absolute sale is presumed to be an equitable mortgage when

the seller binds to pay the taxes on the thing sold. Example: Pacto de Retro Sale

111. An exclusive right to sell is not the same as exclusive agency contract.

112. An application for land registration under Torrens System desired to be amended for
the sole purpose of excluding a portion of land covered in the original application does not
require a new publication.
113. Easement of right of way may be acquired by prescription.
 10 years of continues use with the knowledge of the owner

114. A real estate loan under the Pag-ibig program can be used for house renovation.

115. An amendment to the Master of Deed of a Condominium project approved by the unit
owners may be registered with Register of Deeds provided the amendment is also approved
by the city or municipal engineer and the Housing and Land-use Regulatory Board.

116. A person who is charged with estafa before a regular court can still apply for a license
to engage in real estate practice as broker because he is not yet convicted.

117. In a sublease, the personality of the original lessee is not extinguished. The lessor and
the lessee are still the parties to the lease contract. Unlike in assignment, the lessor and the
assignee becomes party to the contract of lease. Consent of the owner-lessor is necessary.

118. An agent does not guarantee title to the property he sells. The agent relies, generally,
on face of the title.

119. Residual technique is a method of estimating property values which is based on the
principle of anticipation. INCOME APPROACH

120. The act of a broker which is instrumental in effecting a meeting of the minds between
seller and buyer as to price is referred to as the procuring cause.

121. In real estate investment, using other people’s money is called leverage.

122. The HLURB regulates the activities of the real estate dealers / developers, as well as
the real estate brokers and salespersons. Other real estate practitioners are not covered.

123. A province or city is legally barred from levying an annual ad valorem tax on machinery
or equipment for environmental protection - one of the exemptions in local taxation.

124. An undivided real property may be listed, valued and assessed in the name of one or
more co-owners.

125. Lands acquired by beneficiaries under CARL, RA 6657, shall not be sold, conveyed or
transferred for a period of ten (10) years.
 Under PD 27 (Tenants Emancipation Decree) - Emancipation Patent
 Under RA 6657 (CARP) – Certificate of Land Ownership Award
126. The value (tax base) usually used to determine the capital gains tax in sale of real
property is the selling price or the market value of the property as determined by the BIR
whichever is higher.

127. An unregistered mortgage is binding only to the mortgagor and mortgagee.

 It has to be registered so as to bind third party. Registration is the operative act to bind
third party or the whole world.

128. Registration does not confer title but merely confirms ownership to be binding against
the whole world.

129. In a judicial foreclosure of mortgage the mortgagor has equity of redemption.

 Usually redemption period is 3 months or before the court approved the sale starting
from registration of court order or writ of attachment

130. In extra-judicial foreclosure, the mortgagor has the right of redemption.

 Usually redemption period is 1 year from registration of Certificate of Sale – individual
 3 months for corporation

131. The de facto separation between husband and wife shall not affect the regime of
absolute community even when there is a formal agreement to the contrary.

132. Statute of fraud requires that certain contracts must be put into writing to be binding
between two parties.

133. A sellers’ market is a situation where there are more buyers than sellers.

134. Both pactum commissorium and pactum de non aliendo are not valid stipulation in the
mortgage agreement.

135. Under BP 185 and RA No. 8179, a former natural born Filipino citizen who has bought
urban land residential purposes may still purchase another urban land for business purposes
subject to limitations of the law.

136. Though consent is one of the elements of conveyance, even if the seller only signs the
Contract of Sale the instrument can still be registered. There is an implied consent here for
the buyer would not pay if there is no meeting of minds.
137. Registration of a sale of a 5-hectare agricultural land must be accompanied by DAR
Clearance.
 Together with an affidavit of an aggregate landholdings of the buyer

138. In co-ownership, a co-owner is entitled to right of redemption or right of first refusal if

the property of co-owner is to be disposed or was disposed.

139. An unrecorded sale a retro is inferior than a subsequent registered mortgage.

140. In conjugal partnership, a house intended for family use which was acquired through
the use of exclusive funds, remains an exclusive property. However, in case of sale thereof,
marital consent is still necessary being a family residence.

141. Registration is not a mode of acquiring ownership. It is just confirmation of ownership.

142. As general rule, husband and wife cannot sell property to each other.

143. Any part of the condominium project which is not a condominium unit is automatically
a common area.

144. For purposes of taxation, real estate shall be assessed on the basis of its current and
fair market value.
 Refence : RA 7160 – Local Government Code

145. The acceptance of option money by the seller is a proof of the perfection of the
contract.
 Perfection - there is meeting of minds
 Consumation- there is delivery of ownership and payment of consideration

Here, the broker is entitled to his commission

146. Square planning is a subdivision scheme for a tract of land with a flat terrain.
 Gridiron is when the resulting blocks are rectangular

147. A couple’s property relations may be governed by stipulations in a contract, freely and
voluntarily entered into, before the solemnization of marriage.
 Under Civil Code, no pre-nuptial - Conjugal partnership on gains
 Under Family Code, no pre-nuptial - Absolute Community (August 3, 1988)
148. Irrigated land may not be given conversion permit even when the irrigation is provided
by a private organization.

149. All properties acquired after or during marriage through gratuitous title regardless of
marriage settlement are exclusive properties of the one acquiring.
 Fruits are also exclusive properties, may be sold even without the consent of the
spouse.

150. Under agrarian reform law, the retention under PD 27 is 7 hectares only.

151. Under agrarian reform law, the coverage under PD 27 is for only private agricultural
lands being used for rice and corn only.
 Retention under PD 27 - 7 has (children are not benificiaries)
 Retention under CARP - 5 has plus 3 hectares for each
child 15 years old and above actually tilling and managing the farm

TEST 8 - ADDITIONAL with Answers

Problem Solving : Taxation, Etc.

1. Selling price inclusive of VAT is P5,040,000.00, how much is the value added tax?
a) P504,000.00 b) P604,800.00 c) P540,000.00 d) P458,181.00

Answer: P5,040,000.00 x 12/ 112 = P540,000.00

2. Selling price inclusive of VAT is P5,040,000.00, how much is the selling price before VAT
a) P4,536,000 b) P4,581,818 c) P4,500,000 d) P4,435,200

Answer: P5,040,000.00 / 1.12 = P4,500,000.00

3. Selling price inclusive of VAT is P5,040,000.00, how much is the 5% commission of the broker
net of 10% withholding tax?
a) P226,800.00 b) P199,584.00 c) P202,500.00 d) P204,120.00
Answer: P5,040,000.00 / 1.12 x 5% x 0.90 = P202,500.00

4. Gross selling price inclusive of VAT is P5,040,000.00, how much is the 5% commission of the
broker net of 10% withholding tax if the seller gave a 10% discount to the buyer
a) P183,708.00 b) P179,625.60 c) P182,250.00 d) P204,120.00

Answer: P5,040,000 x .90 / 1.12 x 5% x .90 = P182,250.00

5. Value-added tax is P360,000.00, how much is selling price before VAT?
a) P4,000,000.00 b) P409,090.00 c) P3,000,000.00 d) P3,600,000

Answer: P360,000.00 / .12 = P3,000,000.00

6. Value-added tax is P360,000.00, how much is selling price inclusive of VAT?

a) P3,960,000.00 b) P3,960,000.00 c) P3,360,000.00 d) P3,600,000

Answer: P360,000.00 / .12 x 1.12 = P3,360,000.00

7. Selling price is P2,340,000.00. The seller sold the property and realized 30% gross profit over
his cost. The cost of the property is –
a) P1,638,000.00 b) P1,700,000.00 c) P1,800,000.00 d) P1,900,000

Answer: P2,340,000 / 1.30 = P1,800,000.00

8. The seller bought a property at a cost of P3,500,000.00, later sold it and realized 30% gross
profit. How much is the 5% brokers commission if profit is based on selling price?
a) P227,500.00 b) P175,000.00 c) P250,000.00 d) PP225,000

Answer: P3,500,000.00 / .70 = P5M x 5% = P250,000.00

9. In a net listing contract where the owner wants a net proceed of P3,950,000.00 how much
would be the initial selling price if the broker shall add the capital gains tax, 5% brokers
commission and 10% provision for discount?
a) P4,779,500.00 b) P6,000,000.00 c) P5,000,000.00 d) P4,838,750

Answer: P3,950,000 / (100% - (5% + 6% + 10% ) = P5M

10. The buyer bought an installment lot and paid 30% downpayment. How much is the selling
price if monthly amortization factor is .02705 and the monthly amortization is P17,041.50?
a) P700,000.00 b) P800,000.00 c) P900,000.00 d) P1,000,000

Answer: P17,041.50 / .02705 = 630,000.00 / .70 = P900,000.00

11. Related to No. 10. The buyer bought an installment lot and paid 30% downpayment. If interest
is at 21% per annum, how much is the total interest after paying it in full in 60 months?
Monthly amortization is P17,041.50 while amortization factor is .02705.
a) P661,500.00 b) P945,000.00 c) P189,000.00 d) P392,490.00

Answer: SP of P900K x 70% = P630K (balance)

P17,041.50 x 60months - P630K = P392,490.00
 12. What is the total interest of P500,000.00 loan in 5 years at 12% interest per annum if
computation is simple?
a) P60,000.00 b) P120,000.00 c) P200,000.00 d) P300,000.00
Answer: P500K x 12% x 5 years = P300,000.00

13. The buyer bought an installment lot and paid 30% downpayment. Monthly amortization is
P17,041.50 for 60 months. The lot with an area of 200sqm was bought at P4,500.00 per
square meter. How much is the effective cost per square meter after full payment?
See No. 10
a) P6,466.45 b) P6,644.45 c) P6,642.45 d) P6,462.45

Answer: SP of P900K x 30% DP = P270,000 + (P17,041.50 x 60) = P6,462.45

200 sqm

14. Based on the above problem ( # 13), how much is the remaining balance of the principal after
the buyer has paid two monthly amortization?
a) P671,681.71 b) P617,186.71 c) P617,681.71 d) P617,861.71

Answer: Beginning loan balance = P630,000.00

Mo. Amort. Interest Principal Rem. Bal (P)
st
1 mo P17,041.50 P11,025.00 P6,016.50 P623,983.50
nd
2 mo 17,041.50 10,919.71 6,121.79 617,861.71

15. What is the difference in the monthly amortization of a P1,000,000.00 loan if interest is simple
and the other one is based on diminishing balance? Based on diminishing balance the monthly
amortization factor is .02705. Interest for both is 21%. The loan is to be paid in 60 months.
a) P7,116.67 b) P6,771.67 c) P7,161.67 d) P7,661.67

Answer: P1M x .02705 = P27,050.00 (Mo. Amortization diminishing balance)

P1M x 21% x 5 years + P1M = P34,166.67

60 months
Difference : P34,166.67 - P27,050.00 = P 7,116.67

16. In a scale of 1: 1,000,000, one centimeter paper road map is equivalent to

a) 1 km b) 10 kms c) 1,000 meters d) 100,000 cms.

Answer: 1,000,000 / 100 = 10,000 meters / 1,000meters = 10kms.

Meaning: 1 cm in paper is to 10kms in earth surface

17. The appraiser’s pace factor is 1.5 to 1 meter. What is the estimated lot frontage if the
number of steps is 45.
a) 20 meters b) 35 meters c) 30 meters d) 45 meters

Answer : Actual distance = No. of steps / pace factor

Therefore : Lot frontage = 45 steps / 1.5 pacefactor = 30 meters
 18. The ground and 2nd floor of the building has the same floor area. Ground floor area is 200
sqm and the height of the building is 10 meters. The volume of the building is
a) 2,000 sqm. b) 4,000 sqm c) 2,000 cubic meters d) 4,000 cubic meters

Answer: 200sqm. x 10meters = 2,000 cubic meters

19. while reproduction cost-new, if cost per sqm is P15,000.00, is –

a) P2,000,000.00 b) P4,000,000.00 c) P6,000,000.00 d) P3,000,000.00

Answer: FA200sqm. x 2 floors x P15,000.00 = P6M

20. The base of the triangle is 10 meters while its height is 15 meters. What is the area?
a) 125 sqm b) 300 sqm c) 150 sqm d) 75 sqm
Answer: 10m. x 15m. / 2 = 75 sqm.

21. Total payments made by the buyer in 84 months is P900,000.00 inclusive of P50,000.00
penalty interest. How much is the maximum refund under Maceda Law?
a) P450,000.00 b) P212,500.00 c) P630,000.00 d) P510,000.00

Answer: (P900K - P50K) x 60% = P510,000.00

st
Rate of refund : 50% 1 5 years + 10% (5% per year)
Maximum rate of refund: 90%

22. Total payments for 2 years made by the buyer is P900,000.00 inclusive of P50,000.00 penalty
interest. How much is the maximum refund under PD 957 if the developer agreed to an
additional interest of 10% as cost of money?
a) P450,000.00 b) P212,500.00 c) P630,000.00 d) P935,000.00

Answer: (P900K - P50K) x 100% x 1.10 = P935,000.00

23. What would be the fractional share of the surviving spouse that would appear in the new title
after extra-judicial settlement was done assuming the husband left two (2) legitimate children
and one (1) illegitimate child?
a) 2/14 b) 7/14 c) 9/14 d) 11/14

Answer: Spouse 1share 3.5shares = 4.5 / 7 or 9/14

2 legitimate 2shares none = 2.0/7 or 4/14
1 illegitimate .5share none = 0.5/7 or 1/14
Total 3.5shares 3.5shares = 7/7 or 14/14

24. In Pag-ibig financing, what would be the loan value of the borrower based on his capacity to
pay if his net disposable income is P20,572.00 and monthly gross income is P40,000.00. Using
30 years as paying period, the applicable monthly amortization is 0.010286
a) P500,000.00 b) P600,000.00 c) P700,000.00 d) P800,000.00

Answer: NDI of P20,572.00 x 40% / 0.010286 = P800K

 25. In Pag-ibig financing, what would be the loan value of the borrower based on collateral if
selling price is P1,400,000.00, the appraised value is P1,200,000.00 and the loan to collateral
ratio is 90%?
a) P980,000.00 b) P1,000,000.00 c) P1,260,000.00 d) P1,080,000.00

Answer: P1.2M x .90 = P1,080,000.00

26. What would be the percentage share of the developer in a joint venture partnership on a 10-
hectare lot if land value agreed is P35,000,000.00 and the total project cost is 15,000,000.00?
a) 60% b) 65% c) 70% d) 75%

Answer: P115M - P35M = P80M / P115M = 70% (rounded)

27A. Related to the above joint venture, how many subdivided lots, more or less, would be the
share of the owner of the land, if the 10-hectare property would be subdivided into an average size
of 100 sqm. Open space is at 30%
a) 210lots b) 245 lots c) 255 lots d) 265 lots

Answer: 10has. x 10,000sqm. x 70% / 100sqm. = 700 lots x 30% = 210 lots

27B. Still related to the above, if commission of the joint venture broker is 5% to be shared by both
parties on a pro-rata basis, based on land value agreed, how much is the commission of the
broker which will come from the developer?
a) P1,225,000.00 b) P1,050,000.00 c) P700,000.00 d) P3,450,000.00

Answer: P35M x 5% x 70% = P1,225,000.00

28. Under the 4-3-2-1 rule, the owners of the lot abutting the road got P5,000,000.00 as their
share in the sale. How much is the selling price of the whole property based on that rule?
a) P10,000,000.00 b) P11,500,000.00 c) P12,500,000.00 d) P13,500,000

Answer: P5M / 40% = P12.5M

29. Still, based on the above 4-3-2-1 rule, what is the share of the owners of the farthest portion of
the property?
a) P1,000,000.00 b) P1,250,000.00 c) P1,500,000.00 d) P2,000,000
Answer: P12.5M x 10% = P1,250,000.00

30. A two storey house was built on a 300 sqm regular lot with 15 meter frontage. What’s the
ground floor area of the house if it has a 5-meter setback from the road, 3 meter setback at its
rear and 2-meter easement on both sides?
a) 242 sqm b) 286sqm c) 264sqm d) 330 sqm
Answer: 300sqm / 15m. = 20 depth of the lot
House frontage = 15m. - 4m. = 11meters
House depth = 20m. – (5m + 3m ) = 12meters
House area = 11m. x 12m. x 2sty = 264 square meters
 31. What’s the cost of building a fence around 200 sqm rectangular lot with 10 meter frontage net
of 4-meter wide gate? The height of the fence is 8 feet. There are 3.28 feet in a meter. The
cost per sqm of the fence is P1,500.00.
a) P179,640.00 b) P197,640.00 c) P179,046.00 d) P204,960.00

Answer: 200sqm. / 10m = 20m. depth

Fence perimeter = (20m. + 20m. + 10m. + 10m.) - 4m gate = 56LM
Height of the fence = 8feet / 3.28feet = 2.44meters
Cost of the fence = 56linear meters x 2.44m. x P1,500.00 = P204,960.00

32. Selling price is P2,000,000.00. Initial payment up to the last day of the year of sale is
P400,000.00. How much capital gains tax much be paid on the year of sale?
a) P20,000.00 b) P24,000.00 c) P1,000,000.00 d) P1,200,000

Answer: P400K / P2M = 20% therefore installment sale

CGT = P400K x 6% = P24,000.00

33. Related to the above, what if the buyer paid an additional amount of P600,000.00 by January of
the succeeding year, how much should be the additional capital gains tax least acceptable to
the BIR?
a) P30,000.00 b) P36,000.00 c) P96,000.00 d) none

Answer: CGT = P600,000.00 x 6% = P36,000.00

Still installment because installment sale was already established

34. What is the market value of a vacant lot subject to 5% idle land tax if total tax paid by the
owner for one year net of 20% prompt payment discount is P12,800.00. Basic tax is 2% while
SEF tax is 1%?
a) P800,000.00 b) P1,000,000.00 c) P1.2M d) P1.4M

Answer : P12,800.00 / 80% = P16K / 8% total tax rate = 20%ALrate = P1M

35. Base of the triangle is 30m. while height is 40m. What is the distance of the 3 rd side?

Answer: Hypotenuse = Square root of the sum of the squares of 30 and 40

Or square root of 900 + 1600 = 50meters

36. ABC Realty Corporation, sold a vacant lot for cash. If it will pay value added tax of
P600,000.00, compute the following:
1) Selling price before VAT : P600K / 12% = P5.0M
2) DST : P5M x 1.5% = P 75,000.00
3) CWT : P5M x 5% = P250,000.00
4) Transfer tax, if it is 50% of 1% of tax base : P5M x 1% 50% = P25,000.00
5) Basic registration fee : P5M / 20K x 90 = P22,500.00
 37. In estate tax computation, if the husband died after January 1, 1998, what are the maximum
Allowable deductions allowed by the BIR?
 Medical expenses - P500,000.00
 Funeral expenses - P200,000.00
 Standard deduction - P1,000,000.00
 Family home - P1,000,000.00
 Maximum rate of estate tax - 20%
 Minimum rate of estate tax - 0% ( no tax for the first P200K net estate)
 Notice of death should be filed with the BIR within : 2months
 Filing and payment of estate tax should be within : 6months
 Extension of payment without penalty and interest : one month
 Under extrajudicial settlement, for meritorious cases, extension of payment maybe
made up to 2 years without penalty but subject to interest starting on the 7th month
 Under judicial settlement, for meritorious cases, extension of payment maybe made up
to 5 years without penalty but subject to interest starting on the 7th month
 If the net amount subject to estate tax is P200,000.00, the rate of tax is 0%

38. What is the maximum donors tax if the donee is

 Is a grandson: 15%; daughter in-law : 30%
 What is the rate of donors tax for the first P100,000.00 donation? 0%

39. Sale with mortgage of vacant lot is P1,500,000.00. Mortgage is P800,000.00. How much is the
 DST on sale : P1.5M x 1.5% = P22,500.00
 DST on mortgage : ( P800K x .002) + P10.00 = P1,610.00

40. The appraised value of the lot is P4,500,000.00 higher than the comparable by 20%. What is the
value of comparable lot? Answer: P3,750,000.00 ( P4.5M / 1.2)

41. What is the appraised value of the building by cost approach if it has a floor area of 200sqm.,
Replacement cost per sqm. is P18,000.00. Effective age of the building is 15years while its
estimated useful life if new is 60 years. Answer: P2.7M ( FA200sqm. x P18K x 45/60)

42. What is the appraised value of land and building by income approach if its net operating income
for
the year is P6M? Interest rate in the market is 8% while recapture rate is 4%. Answer: P50M

43. What is the appraised value of land and building by gross income multiplier method if the
comparable building with a gross income of P5M was sold at P60M? Gross income of the subject
property is P8M. Answer: P96M ( P60M / P5M x P8M)

44. What are the rates of withholding taxes for real estate developer?
P500K and below 1.5%
Over P500K to P2M 3.0%
Over P2M 5.0% (6% is not applicable)
45. What is the formula in computing. Memorize.

a. basic realty tax = (Market Value)x( Assessment Level )= Assessed Value

(Assessed Value)x( 1% Provincial Property ) = Basic Tax
Or (Assessed Value)x( 2% City or Municipal within Metro Manila )= Basic Tax

b. basic registration fee = (Selling Price / 20k x 90 ) + 1146 = Registration fee

c. transfer tax = (Selling Price x 1%)x(not over 75% property City /Municipality w/in MM) = Tax
(Selling Price x 1%)x(not over 50% Provincial Property) = Tax

d. DST on mortgage = (Mortgage Amount x 0.002) + 10= DST on Mortgage

DST on sale = ( Selling Price x 1.5%) =DST on Sale

e. CGT = (Selling Price or Zonal Value (Whichever is higher)x 6%) = Capital Gains Tax

f. CWT developer (Habitually Engaged) 1.5% if selling price is 500k and below
3% if selling price is 500k up to 2M
5% if selling price is more than 2M
CWT for not (Habitually Engaged) 6% of the selling price

g. VAT payable = ( Selling price x 12% )= VAT

VAT payable = ( Service charge or brokers commission x 12% )= VAT