1EXAMINATION ON LEGAL ASPECTS OF SALE....pdf

8/18/2019 1EXAMINATION ON LEGAL ASPECTS OF SALE....pdf

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

1.

A parcel of land was sold by a corporation to the buyer. In case of a corporation, it is requiredthat the person who will sign the deed of absolute sale must be

a.

The President of the corporation

b.

The corporate secretary

c.

The Vice-President for Real Estate

d.

The person authorized by a board resolution

e.

The person authorized by the president

2. It is a contract by virtue of which the creditor acquires the right to receive the fruits of an

immovable of his debtor, with the obligation to apply them to the payment of the interest, if

owing thereafter to the principal of his credit.a.

Deed of sale

b. Antichresis

c.

Deed of Mortgage

d. Contract to Sell

3. A kind of mortgage which can be paid off even before its maturity.

a.

Open Mortgage

b. Closed Mortgage

c.

Voluntary Mortgage

d. Judicial Mortgage

4. Marital consent is not required in deed of sale, except:

a.

When the property relations of the spouses is one of absolute community

b. When the property relations of the spouses is one of absolute separation

c.

When the property relations between the spouses is one of the conjugal partnership p and

the property involved was acquired by onerous title during the marriage at the expense of

the common fund

d. A and b

e.

A and c

5.

Essential Requisites of a contract of sale.

a. Cause or consideration

b.

Object or subject matter

c.

Consent or meeting of the minds of the buyer and seller

d.

All of the above

e.

None of the above

6.

The contract of lease shall be binding on third parties if the contract of lease is:


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a. Duly notarized

b.

Recorded in the Civil Registry

c. Recorded in the Registry of Property

d.

In writing and duly notarized

e. In writing

7.

A term that refers to the reservation of right to buy which is separate from the purchase price.

a.

Option

b.

Earnest

c.

Partial payment

d.

Escrow

e.

Full down payment

8.

What is the Rule in case area is different from that stated in the contract and the sale is for a

lump sum:

a.

The vendee may accept the area included in the contract and reject

b.

The vendee may accept the whole area, but must pay for the excess area at the contract

c.

There shall be no increase or decrease of the price although there is a greater or lesser area

that stated in the contract.

d.

All of the above

e.

None of the above

9.

Mr. Y sold a parcel of land to 2 or more buyers, who has a better right to the ownership of the

property.a.

The buyer in good faith who first recorded sale in the Civil Registry

b. The buyer in bad faith who first recorded the sale in the registry of property

c.

The buyer is good faith who can present the oldest title

d. The buyer in good faith who was first in possession

e.

The buyer in good faith who first recorded sale in the registry of property

10.

Mr. X sold the a parcel of land to Mr. Y without the written consent of his wife, Ms. Z. The

property regime of the couple is absolute separation. What is the effect of the sale:

a.

Valid

b.

Voidc.

Unenforceable

d. Voidable

11. Money given by the buyer to the seller, as a proof of the perfection of the contract. It is a partial

payment of the purchase price and it must be deducted therefrom:

a. Option money

b.

Play money

c. Earnest money


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d. None of the above

12. One that is not mortgage in form but in substance.

a.

Pacto de recto sales

b. Dacion en pago

c.

Pactum de non-aliendo

d.

Pactum commissorium

e.

None of the above

13.

In the right of redemption, when can a mortgagor redeem the property:

a.

Within the term of 1 year from the date of foreclosure

b.

Within the term of 1 year from the date of registration of the auction sale

c.

Within the term of 1 year from the date of mortgage

d.

None after the registration of the certificate of foreclosure sale with the register of Deeds

which in no case shall be more than three (3) months after foreclosure whichever is earlier.

14.

This is a contract of sale whereby the property being sold is presently mortgaged and the

Vendee pays a certain amount to the vendor and assumes as well the existing obligation which

is secured by a mortgage over the property.

a.

Deed of Sale with Mortgage

b.

Deed of sale with assumption of mortgage

c. Deed of sale with the right to repurchase

d.

Deed of mortgage

e.

Deed of sale

15. Mr. Rich sold his property to Mr. Investor without the consent of Mrs. Rich. The property regime

of Mr. and Mrs. Rich is absolute community. The sale to Mr. Investor is:

a. Valid

b.

Unenforceable

c. Void

d.

Rescissible

e. Voidable

16.

A stipulation which authorizes the mortgage to appropriate the property as his own upon failureof the debtor to fulfil the principal obligations. This is void and of no legal effect:

a. Pactum de non aliendo

b.

Pacto de retro

c. Dacion en pago

d.

Pactum commissorium

e. Pre-termination clause

17. The person who cannot acquire by purchase because of fiduciary relationship:


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a. Guardians

b.

Executor and administration

c. Agents

d.

All of the above

e. None of the above

18.

The buyer bought a 200 sqm. Subdivision lot at P10,000.00/ sqm. He paid 20% down payment

the balance payable in 120 equal amortizations totalling P 1,152,000 inclusive of penalty interest

of P 52,000.00.

Compute for his cash surrender value under the Maceda Law.

a.

853,600

b.

750,000

c.

825,000

d.

None of the above

e.

No cash surrender value

19.

Assuming same values but he has paid 18 monthly amortization totalling to 354,978 monthly

amortization inclusive of 54,978. What is the cash surrender value under the Maceda law, if any.

a.

350,000

b.

377,489

c.

354,978


e.

No cash surrender value

20.

The buyer bought a 200 sqm. Subdivision lot at P20,000.00 / sqm. He paid 20% down payment

the balance payable in 180 equal amortization at 22% interest per annum. He has paid 168

monthly amortization totalling P 3,872 inclusive of penalty interest of P72,000.00.

Compute for his cash surrender value the Maceda Law. What is the cash surrender value under

the Maceda law, if any.

a. 4,370,000

b.

4,140,000

c. 3,872,000

d.

4,204,800

e.

None of the above

REB EXAM.

21.

The technical description in the TCT of a real property can readily be plotted on a sheet by usng

the following date

a.

Bearing and lot point (monuments)

b. Distance and lot points (monuments)


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c. Bearing and tie line

d.

BBLM and tie line

e. Distance and bearing from lot points

22. When the deceased registered owned is survived by a sole heir, the estate of the former maybe

transferred to the latter with the execution of a document known as

a.

Deed of transfer

b.

Extra-judicial settlement of estate

c.

Will

d.

Declaration of ownership

e.

Affidavit of self-adjunction

23.

An appraisal principle which holds that the value of property tends to be enhanced by

association with superior properties, is

a.

Principle of infiltration

b.

Principle of regression

c.

Principle of progression

d.

Principle of competition

24.

Jurisdiction for adjudication of buyer’s complaints against subdivision developers is with the

a.

Bureau of trade regulation and consumer protection – DTI

b. Housing and urban development and coordinating council

c.

National housing authority

d.

Housing and land use regulatory boarde.

Regular courts

25.

The study of current supply and demand conditions in a particular area for a specific type of

property is

a.

Real estate appraising

b. Cash flow analysis

c.

Absorption estimate’

d. Market analysis

e.

Income projection

26.

A kind of survey where the shape of the earth is taken into account in computing results is

known as

a.

Plane survey

b. Geodetic survey

c.

Topographic survey

d. Cadastral survey

e.

Hydrographic survey


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27. The rational approach of allocating available land resources as equitably as possible among

competing user group.

a. Land assembly

b.

Land use plan

c. On-site development

d.

Urban renewal

28.

The following is covered by the requirement of Certificate of registration and license to sell

a.

Sale of a subdivision lot resulting from partition of land among co-owner and heirs;

b.

Sale or transfer of subdivision lot by the original purchase thereof and any subsequent sale

of the same lot;

c.

Sale of subdivision lot by a real estate developer

d.

Sale of subdivision lot or a condominium unit for the account of a mortgages in the ordinary

course of business when necessary to liquidate a bonafide debt.

29.

Registration of real estate instrument can be given due course without the presentation of the

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.

Deed of absolute sale

30.

Special power of attorney are necessary in the following cases, except

a.

To perform acts of administrationb.

To lease any real property for more than a year

c. To convey real rights on immovable property

d.

To cancel any obligation gratuitously

31.

Which of the following government agencies is in charge of the overall strategies for the

country’s National Housing Program

a.

National housing authority

b. Housing and land use regulatory board

c.

Housing and urban development coordinating council

d.

Land registration authority

32. The ratio that expresses the relation between gross income and sales price of a property is

a.

Recapture rate

b. Effective gross income

c.

Capitalization

d. Gross income multiplier

e.

Return on asset


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33. Unless extended for a justifiable cause, the period for development completion of a subdivision

project from issuance of license to sell is:

a. Six months

b.

Twelve months

c. Eighteen months

d.

As approved by HLURB

e.

Twenty-four months

34.

It refers to the acquisition of land at values base d on existing use in advance of actual need to

promote planned development and socialized housing

a.

Land use

b.

Land assembly

c.

Land consolidation

d.

Land banking

35.

The following are modes of acquiring lands for purposes of Urban Development and Housing

Act, except

a.

Community mortgage

b.

Joint venture agreement

c.

Negotiated purchase

d.

Land swapping

e. Foreclosure

36.

The following are determinants of value in appraisal of realty, except:a.

Contribution

b. Demand

c.

Purchasing value

d. Scarcity

e.

Utility

37.

The government agency is responsible for the preparation of comprehensive land use in a

locality.

a.

Local government unit

b.

HUDCCc.

Register of Deeds

d. HLURB

e.

DAR

38.

A building is depreciated at 2.5% per year on a straight line basic. What is the estimated useful

life of the building?

a.

30 years

b. 40 years


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c. 50 years

d.

60 years

39.

The article of incorporation of homeowners association is registered with:

a. Securities and exchange commission

b.

Housing and land use regulatory board

c.

Home guaranty corporation

d.

Bureau of trade regulation and consumer protection

40.

It refers to the acquisition of land at values based on existing use in advance of actual need to


a.

Land use

b.

Land assembly

c.

Land consolidation

d.

Land banking

41.

A subdivision plan of a registered land wherein a street, passageway or open space is delineated

on the plan

a.

Simple subdivision

b.

Complex subdivision plan

c.

Subdivision open space plan

d. Open space subdivision plan

42.

Any amendment to the master deed of a condominium project decided by the majority ofowners must be approved by the HLURB and

a. City/ Municipal Mayor

b.

City/ Municipal Engineer

c. City/ Municipal Council

d.

City/ Municipal Assessor

e. City/ Municipal Development Planning Officer

43. In mixed use condominium projects, the master deed may be amended by simple majority of

the unit owners. Majority is based on:

a.

Number of condominium unitsb.

Total area of condominium units

c. Floor area of ownership

d.

Value of the condominium unit

44.

Amendment to the master deed of a condominium project approved by majority of the

registered owners need also be approved by the city/ municipal engineer and:

a.

Local government

b. Housing and Urban Development Coordinating Council


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c. Housing and Land Use Regulatory Board

d.

Land Registration Authority

45.

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

a. Highest and best use

b.

Substitution

c.

Progression

d.

Anticipation

46.

An estimate or opinion of Value is:

a.

Accounting

b.

Appraisal

c.

Valuation

d.

Computation

47.

The PAG-IBIG housing loan may be used to finance a purchase of a fully developed lot not

exceeding:

a.

2,000 sq.m.

b.

1,000 sq.m.

c.

5000 sq.m.

d.

100 sq.m.

e. 200 sq.m.

48.

Urbanizable areas refer to sites and lands, which considering present characteristics andprevailing condition, display marked and great potential of becoming urban areas within the

period of

a.

Two (2) years

b. Five (5) years

c.

Fifteen (15) years

d. Three (3) years

e.

Ten (10) years

49.

The principle holds that when two or more commodities with substantially the same utility are

available, the one with the lowest price receives the greatest demands and widest distribution.a.

Principle of Contribution

b. Principle of Balance

c.

Principle of Highest and Best Use

d. Principle of Substitution

e.

Principle of Competition


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50. A general area declared thru Proclamation 2146 as environmentally sensitive such that

significant environment impacts are expected if certain types/ thresholds of proposed projects

are located developed or implemented in it.

a.

Environmentally Critical Area

b. Environmentally Critical Project

c.

Environmentally Sensitive Area

d.

Environmentally Safe Area

51.

The article of incorporation of homeowners association is registered with:

a.

Securities and Exchange Commission

b.

Housing and Land Use Regulatory Board

c.

Home Guaranty Corporation

d.

Home Guaranty Corporation

e.

Bureau of Trade Regulation and Consumer Protection

52.

It refers to the acquisition of land at values based on existing use in advance of actual need to


a.

Land use

b.

Land assembly

c.

Land consolidation

d.

Land banking

53.

A subdivision plan of a registered land wherein a street, passageway or open space is delineated

on the plana.

Simple subdivision

b. Complex subdivision plan

c.

Subdivision open space plan

d. Open space subdivision plan

54. Any amendment to the master deed of a condominium project by the majority of owners must

be approved by the HLURB and

a. City/ Municipal Mayor

b.

City/ Municipal Engineer

c.

City/ Municipal Councild.

City/ Municipal Development Planning Officer

55.

In mixed use condominium projects, the master deed may be amended by simple majority of

the unit owners. Majority is based on:

a.

Number of condominium units

b. Total area of condominium units

c.

Floor area of ownership

d. Value of the condominium unit


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56. Amendment to the master deed of a condominium project approved by major of the registered

owners need also be approved by the city/municipal engineer and:

a. Local government

b.

Housing and Urban Development Coordinating Council

c. Housing and Land Use Regulatory Board

d.

Land Registration Authority

57.

The income approach to value is an applicant of the principle of:

a.

Highest and best use

b.

Substitution

c.

Progression

d.

Anticipation

58.

An estimate or opinion of Value is:

a.

Accounting

b.

Appraisal

c.

Valuation

d.

Computation

59.

The PAG-IBIG housing loan may be used to finance a purchase of a fully developed lot not

exceeding:

a. 2,000 sq.m.

b.

1,000 sq.m.

c.

5,000 sq.m.d.

100 sq.m.

e. 200 sq.m

60. Urbanizable area refer to sites and lands, which considering present characteristics and

prevailing condition, display marked and great potential of becoming urban areas within the

period of

a.

Two (2) years

b. Five (5) years

c.

Fifteen (15) years

d.

Three (3) yearse.

Ten (10) years

61.

The principle holds that when two or more commodities with substantially the same utility are

available, the one with the lowest price receives the greatest demands and widest distribution

a.


b. Principle of Balance principle of Highest and Best Use

c.

Principle of Substitution

d. Principle of Competition


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62.

A general area declared thru Proclamation 2126 as environmentally sensitive such that

significant environmental impact are expected if certain types/thresholds of proposed projects

are located, developed or implemented in it.

a. Environmentally Critical Area

b.

Environmentally Critical Project

c.

Environmentally Sensitive Area

d.

Environmentally Safe Area

63.

If TCT has an annotation that says “subject to Rule 74, Section 4 of the Rules of Court:, it means

that the property is an inherited property and any heir unduly deprived of his lawful

participation in the estate has __ years to assert his right over said property.

a.

Two (2) years

b.

Five (5) years

c.

Four (4) years

d.

Ten (10) years

64.

Under RA 7279, _______________________ shall be resorted to only when other modes of

acquisition have been exhausted.

a.

Negotiated purchase

b.

Land Consolidation

c. Expropriation

d.

Joint Venture Agreement

65.

A broker’s complaint for non- payment of commission by the developer shall be filed with:

a. HLURD

b.

BTRCP

c. HUDCC

d.

Courts

66.

The income approach in estimating the value of an investment property is an application of

a. Principle of Substitution

b.

Principle of Progression

c.

Principle of Contributiond.

Principle of Anticipation

67.

The principle of value which states that the value of a property tends to be enhanced where

there is reasonable homogeneity in use

a.

Principle of Highest and Best Use

b. Principle of Conformity

c.

Principle of Increasing Returns

d. Principle of Progression


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68.

When the loan is fully amortized by equal monthly payment, the amount applied to the

principal:

a.

Decreases while interest payment increase

b. Increases while interest decreases

c.

Increase by constant amount

d.

None of the above

69.

Total refund to buyer for developer’s failure to complete the development within the

reglementary period is equivalent to:

a.

Decreases while interest payment increases

b.

Increases while interest decreases

c.


d.

None of the above

70.

Total refund to buyer for developer’s failure to complete the development within th3

reglementary period is equivalent.

a.

50% of total payment inclusive of amortization interest less penalty interest

b.

50% of total payment inclusive of amortization interest and penalty interest

c.

100% of total payment inclusive of amortization less penalty interest

d.

100% of total payment less penalty interest plus legal interest

71.

The Estate Tax Return shall be filed with the BIR within:

a.

60 days from death of decedentb.

90 days from death of decedent

c. 120 days from death of decedent

d.

180ndays from death of decedent

72.

Under the Urban Land Reform Law (PD 1517), an area is considered urban when it has a

population density of at least ___________ and where at least 50% of economically active

residents are engaged in non-agricultural activities.

a. 500 residents per square kilometre

b.

1,000 residents per square kilometre

c.

1,500 residents per square kilometred.

2,000 residents per square kilometre

73.

An appraisal technique in which comparative estimates are made between prices paid in actual

transaction and the current listings:

a.

Cost Approach

b. Income Approach

c.

Market Approach

d. Economic Approach


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74.

A process that involves predicting and evaluating the likely impacts of a project (including

cumulative impacts) on the environment during construction, commissioning, operation and

abandonment.

a. Environmental Assessment Process

b.

Environmental Evaluation Approach

c.

Environmental Prediction and Impact Report

d.

Environmental Impact Assessment

75.

The Subdivision and Condominium Buyer Protective Decree, PD 957, governs the following,

except:

a.

Regulates sale of subdivision lots and condominium units to buyer

b.

Defines sale to be covered by registration

c.

Defines duties and responsibilities of owner/developer (o/d) of condominium and

subdivision projects.

d.

Rights of the real estate broker versus the developer

e.

Defines rights of condominium/ subdivision units/ lot buyers.

76.

X, owner of a 10-door apartment, rented a unit to Y for a period of one year. Under the law on

lease, Y, without consent of X, may perform any of the following acts, except:

a.

Sublease the unit

b. Assign his rights

c.

Suspend payment if X falls to make the necessary repairs

d.

Demand reimbursement constituting one half the value of the useful improvementintroduced in good faith

77.

Several houses valued at P 1,000,000.00 and P 2,000,000.00 were built in area where an existing

house valued at P 300,000.00 is located. As a result, the value of the latter increased. The real

estate principle of value that applies to this situation is called the principle of:

a. Substitution

b.

Improvement

c. Progression

d.

Regression

78.

Presidential Decree No. 1216 defines open spaces in residential subdivision and requires

subdivision owners to provide adequate roads, alleys, sidewalks and reserved open spaces for

parks or recreational use equivalent to.

a. 10%

b.

20%

c. 25%

d.

30%


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79. Registration of mortgage covering projects can only be affected when the deed is accompanied

by a permit to mortgage issued by:

a. Local Government Unit

b.

Housing and Urban Development Coordinating Council

c. Home Insurance Guarantee Corporation

d.

House and Land Use Regulatory Board

e.

National Housing Authority

80.

The priority of tenant to buy the land located is an urban reform area is known as:

a.

Tenant’s possessory right

b.

Tenant’s incremental right

c.

Tenant’s right of first refusal

d.

Tenant’ retention right

81.

A petition may be filed by one or more unit owners of condominium project when damage to

the project has rendered one-half or more of the unit untenantable and unit owners holding

more than _________ percent interest in the common areas are opposed to repair or

restoration of the project:

a.

30%

b.

40%

c.

50%

d. 60%

82.

At 18% interest per annum, how much is the interest of P500,000.00 loan fro 65 days using 360as number of says in a year?

a. P15,000.00

b.

P16,027.70

c. P16,250.00

d.

P90,000.00

83.

A land survey always uses a fixed point of reference, it could be any of the following, except:

a. City Boundary Monument

b.

Bureau of Land Location Monument

c.

Provincial Boundary Monumentd.

Tie Line

e. Bureau of Lands Boundary Monument

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

a.

Contour planning

b. Chaplan planning

c.

Topographic Planning

d. Square planning


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85.

The technical description in the TCT of real property can be readily plotted on a sheet of paper

by using the following data:

a.

BLLM and the tie line

b. Bearing and lot points

c.

Bearing and tie line

d.

Bearing and distance from lot points

e.

Bearing and lot points

86.

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

twenty percent (20%) of the project for:

a.

Open space

b.

Socialized housing

c.

Commercial area

d.

Economic housing

87.

In condominium, the share in the common areas may be made under the following modes,

except:

a.

Equal sharing

b.

Based on the value of the unit

c.

Based on the number of units owned

d. Based on the unit area

88.

The following reports are acceptable for a real estate appraiser under the RESA, expect:a.

Letter Report

b. Oral Report

c.

Narrative Report

d. Form Report

89. Arnold and Rosita sold their house which is their principal residence. You as their broker have to

advise them that the transaction is exempt from the capital gains tax if they spend how many

percent of the sales proceeds in acquiring or constructing their new principal residence?

a.

50%

b.

75%c.

100%

d. 60%

90. Exemptions on payment of six percent (6%) capital gains tax on the sale of an individual seller’s

principal residence who will use the proceeds to purchase a new place of residence may be

availed of only once very:

a.

5 years

b. 8 years


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c. 10 years

d.

12 years

91.

Your client asked you to make a simple appraisal of his lot in Baguio prior to giving you an

exclusive authority to sell the lot. Based on the technical description and an inspection of the

property and surroundings, you have determined the following:

Land area = 3,200 square meters

Average price of land in the area = 9,000 per square meter

Unobstructed view (plus) = 15%

Topography (minus) = 10%

Plottage value (plus) = 6%

What is the fair market value of the property.

a.

Fair Market Value = P31,968,000.00

b.

Fair Market Value= P 30,240,000.00

c.

Fair Market Value = P 28,800,000.00

d.

Fair Market Value = P 33,120,000.00

92.

Annotation of Section 3, Rule 74 of the Rules of Court on the title to the property of a deceased

person with a surviving spouse and children, provides that the property shall be subject to the

rights of three of the following four. Who among the four does not have a right to the subject

property?

a.

Heirsb.

Any person who might have been unduly deprived of his participation in the deceased

c. The parents of the deceased

d.

Creditor

93.

Refers to the purchase by a person, natural of juridical, of more than one saleable lot or unit

within an HLRB approved subdivision for the purpose of re-selling the same with or without

introducing alteration in the approved plan.

a. Wholesale purchase

b.

Wholesale buying

c.

Bulk Buyingd.

Bulk Purchase

94.

Mr. PASTOR wants Mr. FELIPE to sell the titled property of their family corporation. After

inspecting the property Mr. FELIPE request for an Exclusive Authority to Sell. Who should be the

signatory in the authority and all the subsequent documents in case the property is sold.

a. Whoever is authorized in a formal board resolution as per the Corporate Secretary’s

Certification

b. The company President


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c. The father who is the patriarch of the family

d.

The Treasurer of the corporation

95.

Mr. Cruz was the lessor of 25 units of residential apartments with equal rental payments and

made a total annual gross receipts of P2,700,000.00 for the year 2008.

How much is the value added tax for the year?

a.

P241,071.42

b.

P289,285.71

c.

P270,000.00

d.

VAT Exempt

e.

P324,000.00

96.

In case of inheritance by the children from their parents, the following taxes and expenses must

be paid for the estate in case it involves real property, except:

a.

Estate tax

b.

Transfer tax

c.

Documentary Stamp tax

d.

Registration Fees

97.

The creditable withholding tax in the sale of acquired foreclosed asset of a bank in the amount

of P950,000.00 is:

a.

1.5%

b.

3.0%c.

5.0%

d. 6.0%

98. In the sale of a parcel of land by a corporation in the amount of P750,000.00 which is a capital

assets, tax to be imposed is:

a. 1.5%

b.

3.0%

c. 5.0%

d.

6.0%

99.

The transfer tax on the sale of real property shall be paid to:

a. Bureau of Internal Revenue

b.

City Treasurer

c. City Assessor

d.

Register of Deeds

100.

The life of the condominium corporation is:

a. 50 years


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b. 25 years renewable for another 25 years

c.

99 years

d. Co-terminous with the project

101. A certificate to which the Proponent conforms to comply with existing environmental

regulations or to operate within nest environmental practices that are not currently covered by

existing laws.

a.

Environmental Clearance

b.

Environmental Development Permit

c.

Environmental Compliance Certificate

d.

Environmental Undertaking

102.

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

estimating present reproduction cost and deducting depreciation is:

a.

Basic improvement approach

b.

Cost approach

c.

Income approach

d.

Market date approach

103.

The most important document to be checked by a buyer before buying a subdivision lot in a

residential subdivision.

a. Master Deed

b.

Subdivision Plan

c.

License to selld.

Reservation Agreement

104.

The present rate of VAT for the sale of real properties owned by a corporation in the amount of

P20,000,000 is

a.

5%

b. 10%

c.

12%

d. 6%

105.

Traditional ownership is best evidence bya.

CCT

b. TCT

c.

Master Deed

d. Tax Declaration

106. The special power of attorney executed abroad must be authenticated by any of the following,

except:

a. OWWA


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b. Consul, Vice Consul

c.

Philippine Ambassador

d. Charge d’ Affairs

107. If a decedent died leaving several heirs, but no will and no debts, the heirs must execute the

following document to transfer the title to the heirs.

a.

Affidavit of Adjudication by heirs

b.

Partition Agreement

c.

Transfer of Rights

d.

Deed of Extrajudicial Settlement

108.

Which among the following function s is devolved to the L:GU under the Local Government

Code.

a.

Issuance of License to Sell of a Subdivision

b.

Issuance of approval of subdivision plans subject to national laws and standards

c.

Revocation of License to Sell by a Developer

d.

Adjudication of subdivision related complaints

109.

Mr. GPA executed a special power of attorney in favour of Mr. D to sell his land located in

Bulacan but Mr. D did not sign the special power of attorney. The special power of attorney is

a.

Voidable

b. Void

c.

Unenforceable

d.

Valid

110. The difference the total contract price and the amount to be financed through a bank loan by

the buyer is.

a. Amortization

b.

Buyer’s equity

c. Balloon payment

d.

Downpayment

111.

An annotation on the TCT that refers to the limitation on the use of the lot, such as building lot

easement, further subdivision of the lot, maximum height.a.

Deed of Restriction

b. Easement Regulations

c.

Notice of Lis pendens

d. Mortgage

112. In order to register a sale with the Register of deeds, the buyer must present the following

documents, except:

a. Certificate Authorizing Registration


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b. Proof of payment to the seller

c.

Original owner’s duplicate certificate of title

d. Transfer Tax payment and clearance

113. As defined under Section 2(d) of PD 957, a tract or parcel registered under Act No. 496 which is

partitioned primarily for residential purposes into individual lots with or without improvements

thereon and offered to the public for sale, in cash or instalment terms. It shall including all

residential, commercial, industrial and recreational areas as well as open spaces and other

community and public areas in the project.

a.

Residential subdivision plan

b.

Open housing subdivision

c.

Subdivision development plan

d.

Subdivision project

114.

In the sale of a condominium unit, it is necessary to present this additional document in order

to register the sale in favour of the buyer with the Register of Deeds.

a.

Certificate Authorizing Registration

b.

Certificate of Management

c.

Certificate of Citizenship

d.

Certificate of Non delinquency in Condominium Dues

115. The government agency which is involved in the regulation of environment laws in the

Philippine in relation to the development of subdivisions

a.

Department of Agricultureb.

Department of Environment and natural Resources

c. Department of Forestry

d.

Department of Housing

116.

The latest price ceiling for socialized housing as per the Housing Urban Development

Coordinating Council is:

a.

150,000

b. 200,000

c.

225,000

d.

400,000

117. A certificate certifying that, based on the submitted project description, the project is not

covered by the EIS System and is not required to secure an environmental compliance certificate

or ECC

a.

Certificate of Non-Coverage

b. Certificate of Exemption

c.

Certificate of Compliance

d. Certificate of Environmental Compliance


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118. Refers to housing programs and projects covering houses and lots or home lots only undertaken

by the Government or the private sector for the underprivileged and homeless citizens pursuant

to RA 7279.

a.

Socialized Housing

b. Low Cost Housing

c.

Homeless Housing Program

d.

Low Cost and Homeless housing

119.

It is the rational and deliberate allocation of land resources to different uses based on the

comprehensive and integrated plan for the area. It translates the social-economic, the

infrastructure and environmental plan into land allocations.

a.

Land use plan

b.

Land rationalization plan

c.

Land use and comprehensive plan

d.

Land use environmental plan

120.

The following are modes of compliance with Sec. 18 or PD 7279, except.

a.

Development of a New Settlement

b.

Development of Subdivision Facilities

c.

Slum Upgrading. To be certified by the National Housing Authority or the Local Government

Unit concerned.

d. Participation in the Community Mortgage Program (CMP) either as a financier or a developer.

121.

No real estate dealer broker or salesman shall engage in the business of selling subdivision lotsor condominium units under PD 957 unless he has registered himself with

a. Professional Regulation Commission

b.

Housing and Land Use Regulatory Board

c. Department of Trade and Industry

d.

City Mayor’s Office

122.

The following are advantage of condominium ownership, which does not belong

a. Easy to maintain

b.

Can be sold to foreigners

c.

Evidence by TCTd.

Economy in land space

123.

The violation of the provisions of the Subdivision and Condominium Buyer Protective Decree

could subject the developer to fine of

a.

5,000

b. 10,000

c.

100,000

d. 20,000


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124.

In real estate appraisal, what approach is used through the conduct of a survey or investigation

into similar properties being sold in the area.

a.

Market Data approach

b. Cost approach

c.

Survey approach

d.

Market Research approach

125.

In case one cannot find or locate his copy of the owners duplicate certificate of title, he must file

with the register of deeds the following:

a.

Affidavit of Loss

b.

Affidavit of Recovery

c.

Sworn statement of ownership

d.

Sworn statement of loss of original copy

126.

Some of the common annotation appearing in the title are the following, except:

a.

Mortgage

b.

Notice of Lis Pendens

c.

Contract of Lease

d.

Deed of Absolute Sale

127. In case of transfer tax payable to the municipal treasure, the rate of transfer tax shall be

a.

1.5%

b.

½ of 1%c.

¾ of 1%

d. 1%

128. For purpose of complying with the provisions of PD 957, the owner or developer may divide the

development and sale of the subdivision into phases, each phase to cover not less than

a. Ten (10) hectares

b.

Five (5) hectares

c. Twenty (20) hectares

d.

Fifteen (15) hectares

129.

Prescribes the developmental pace, directions and strategies for the optimum use of land

resources in a community as well as its role in provincial, regional and national development.

a.

Development Plan

b. Comprehensive land use plan

c.

Community land use plan

d. Development land use plan

130. The following cases do not fall under the jurisdiction of the HLURB, except


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a. Complaints vs. Buyer

b.

Complaints vs. Co-Practitioner

c. Complaints vs. Owner [Commission]

d.

Complaints by buyer vs. Developer

131.

The following documents of a sale of real estate are open to the public and a copy thereof may

be obtained by a person from the Register of Deeds except

a.

Certified true copy of title

b.

Lot and Vicinity map

c.

Deed of Absolute Sale

d.

Certificate Authorizing Registration on the sale

132.

The principle of supply and demand is one of the basic principles of property valuation and in

case there are more properties being sold than the demand for such property, it is referred to as

a

a.

Sellers market

b.

Buyers market

c.

Free market

d.

Open market

133.

An estimate of value of a parcel of land which is expressed in peso amount and made as of a

particular point in time

a.

Value analysis

b.

Appraisalc.

Assessment

d. Land value approximation

134. One may have an appraisal of real properties for the following purpose, except

a.

Insurance for a manufacturing plant

b. Expropriation of land

c.

Construction of additional improvement on the house

d. Partitioning of estate

135.

Under PD 957, the real estate broker must file a bond in the amount ofa.

1,000

b. 5,000

c.

20,000

d. 25,000

136. It is referred to as the effect of real estate on the total economy where construction of real

estate brings an effect to other sectors of the economy

a. Economic effect of real estate


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b. Multiplier effect of real estate

c.

Multiplier effect on the economy

d. Economic multiplier effect

137. It is required that one present this document in the registration of the deed of extrajudicial

settlement for a property with improvements with the register of deeds

a.

Building plan

b.

Owners copy of duplicate certificate of title

c.

Affidavit of no improvement

d.

Certification of Building Assessor

138.

In a legal contract/ instrument between individuals as parties, the instrument must contain the

following data concerning the parties, except:

a.

Full names and addresses

b.

Civil status and citizenship

c.

Capacity and personality in the contract

d.

Board resolution

139.

Real Estate Brokerage is the act or practice of negotiating involving the following, except:

a.

Sale

b.

Lease

c. Build and Sell

d.

Mortgage

e.

Exchange

140. A real estate dealer engages in the buying and selling of a real estate for the purpose of

receiving:

a. Commission

b.

Share of broker’s fee

c. Overriding commission

d.

Profit

e. Referral Fee

141.

Which of the following do not require a license or accreditation from the ProfessionalRegulation Commission to engage in real estate practice?

a. Real estate dealer

b.

Real estate salesman

c. Real estate broker

d.

Real estate appraiser

e. Real estate consultant

142. A real broker is required to file a bond with PRC in the amount of?


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a. P 500.00

b.

P 1,000.00

c. P 5,000.00

d.

P 10,000.00

e. P 20,000.00

143.

The following is an essential element of real estate brokerage

a.

At least 5 years experience in sales

b.

Knowledge of real estate appraisal

c.

Must find at least two (2) buyers

d.

Must be employed by the owner as agent

e.

Must not expect any valuable consideration

144.

In order to be entitled to broker’s commission on the sale of the house of his neighbour, the real

estate broker must be

a.

Registered with HLURB

b.

Registered with BIR as VAT registered

c.

Not convicted of a crime involving moral turpitude

d.

The procuring cause for the sale

e.

The one to negotiate the sale of the property

145. The real estate broker must have a working knowledge of the following, except:

a.

Real estate market

b.

Real estate economicsc.

Laws affecting real estate

d. Basic features of land and building construction

e.

Preparation of an appraisal report on the property

146.

The essential attributes of a real estate broker, to engage in brokerage practice are as follows,

except:

a.

Salesmanship

b. Tact and Diplomacy

c.

Honesty and Integrity

d.

Been a licensed real estate salesman for (4) yearse.

Working knowledge of real estate economics

147.

The right of a real estate broker, in a sale of real property, include the following, except:

a. To receive compensation for services rendered;

b.

To accept the best offer he deed best for the owner;

c. To be informed of facts concerning the property listed with him;

d.

To be given ample time to complete the negotiations;

e. To be treated in good faith by the principal.


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148. In real estate brokerage, the principal is liable for the acts of the broker only if

a.

Done within the period of authority

b. Within the scope of the authority given to the broker

c.

The broker is licensed with HLURB

d. There is a holdover or safety clause

e.

There is a written authority given to the broker

149.

In the sale of a property of the owner, the real estate broker shall be entitled to commission if

a.

The broker knows the buyer personally

b.

The broker is able to find a ready and willing buyer

c.

The broker is the only broker involved

d.

The broker is the procuring cause of the sale

e.

The broker is registered with the BIR

150.

The holdover clause entitles the real estate broker to

a.

Extension of his authority for the same period

b.

Extension to look for a willing, ready and able buyer

c.

Broker’s commission even if the sale is closed after expiration of authority

d.

Broker’s commission even if the buyer was registered after the expiration of his authority

e.

Brokers commission if sold to his buyer by another broker

151. The holdover clause in real estate brokerage, is also referred to as

a.

Extension of authority clause

b.

Automatic extension clausec.

Right to commission clause

d. Safety clause

e.

Extension clause

152.

In case a property is leased out by two (2) real estate brokers, the sharing of commission, in the

absence of any agreement, shall be

a.

As determined by the owner

b. As determined by the tenant

c.

Equal sharing

d.

60% for the broker who represent the lesseee.

60% for the broker who represents the owner

153.

A real estate broker, in engaging in the practice of real estate brokerage, must avoid certain

pitfalls in the practice, otherwise, t will result in the following, except:

a.

Loss of investment in the prospective transaction by way of expenses;

b. Loss of expected income;

c.

Loss of license;

d. Waste of time;


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

154. The law that governs the relationship between the principal and the real estate broker is

a.

Law on real estate brokerage

b. Law on agency

c.

Law on real estate practice

d.

Law on real estate service practice

e.

Law on contracts and obligation

155.

The relationship between the owner who repose confidence in the real estate broker, based on

“trust and confidence” is referred to as

a.

Trust relationship

b.

Trust and confidence relationship

c.

Fiduciary relationship

d.

Intimate relationship

e.

Business relationship

156.

A real broker obtained a listing for the sale of a lot of the owner. The authority of the broker

may be extinguished by the following, except:

a.

Death of owner

b.

Expiration of the authority

c. Withdrawal of the Buyer

d.

Withdrawal of the Agent

e.

Revocation by the owner

157. The following is not considered a step in the practice of real estate brokerage

a.

Security prospects

b. Closing of Sale

c.

Negotiation

d. Turnover of possession of property

e.

Presentation and demonstration of property

158.

An authority to sell given to a real estate broker to sell a vacant lot should contain the following

information except:a.

Name of principal

b. Terms and Condition of sale

c.

Period of authority

d. Description of improvement

e.

Holdover clause

159.

The real estate broker obtained a listing from a client verbally. In this case, the listing can be

considered as


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a. Not valid

b.

Void

c. Valid

d.

Unenforceable

e. Useless

160.

An open listing to sell real property means that

a.

Anybody can sell the property

b.

Only two brokers have the exclusive authority

c.

Two or more brokers are authorized to offer the property for sale

d.

More than five (5) brokers are authorized to negotiate the sale

e.

Direct buyers only

161.

An owner wants to lease out her house and lot in Ayala Alabang and she can give the real estate

broker any of the following types of authority, except:

a.

Non-exclusive listing

b.

Exclusive listing

c.

Open listing

d.

Exclusive right to sell

e.

Exclusive agency

162. Mr. B owns a house and lot in Makati and wants to sell the house and lot at a price of

P10,000.000 net to the owner. How much will the real estate broker have to sell the property if

the capital gains tax and broker’s commission of 3% shall be included in the final selling price.a.

P 10,000,000

b. P 10,600,000

c.

P 10,300,000

d. P 10,900,000

e.

P 10, 989,011

163.

Mr. C sold a vacant parcel or residential land for the amount of P 2,500,000 and will shoulder

the capital gains tax, documentary stamps tax and broker’s commission of 5%. What will be the

net amount that the owner will receive?

a.

P 2,000,000b.

P 2,187,500

c. P 2,350,000

d.

P 2,225,000

e. P 2,312,500

164. The real estate broker sold the property of Mr. House for P4,800,000 but Mr. House wanted a

net amount of P4,400,000. If the owner will shoulder the capital gains tax, how much will be the

amount left for the 5% commission of the real estate broker?


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a. P 240,000

b.

P 225,000

c. P 225,600

d.

P 220,000

e. P 112,000

165.

A group of real estate brokers from the City of Manila gathered and met together and

exchanged properties for sale and wanted with each other. This arrangement is referred to as

a.

Real estate association

b.

Real estate property exchange

c.

Multiple listing

d.

Listing exchange

e.

Listing association

166.

Generally also referred to in real estate brokerage as a buyer who is willing and has the capacity

to buy the property

a.

Preferred Client

b.

Real estate buyer

c.

Prospect

d.

Suspect

e.

Real estate property customer

167.

In the ocular presentation and demonstration of a property being sold by a real estate broker,

the broker must point out to the buyera.

The good of the property

b. The positive attributes and qualities of the property

c.

The fact that it is not mortgaged

d. The title and tax declaration are free from all encumbrances

e.

The property is updated in real estate tax payments

168.

The most essential feature of earnest money paid by the buyer for the purchase of a

condominium unit is

a.

It must be paid in cash

b.

It must be at least 20% of the purchase pricec.

It must be paid in manager’s check

d. It forms a part of the purchase price

e.

It is distinct and separate from the purchase price.

169.

It is a contract between the seller and buyer wherein the buyer reserves the right to buy the

property within a period of time and at a specified price

a.

Option

b. Contract to sell


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c. Deed of conditional sale

d.

Memorandum Agreement of Sale

e. Right of first refusal

170. It is consideration paid for in the contract between the seller and buyer wherein the buyer

reserves the right to buy the property within a period of time at a specified price

a.

Earnest money

b.

Reservation deposit

c.

Downpayment

d.

Initial Payment

e.

Option Money

171.

The seller and buyer entrusted to a third party of the consideration in the contract of sale with

the bank to be released only to the seller upon fulfilment of certain conditions agreed upon

between the buyer and seller is referred to as.

a.

Earnest Money

b.

Reservation Deposit

c.

Escrow

d.

Safety Deposit

e.

Option Money

172. For the purpose of escrow of the consideration in a sale of a raw land with the bank, the parties

to the escrow agreement must be

a.

Sellerb.

Buyer

c. Bank

d.

Seller and buyer

e. Seller, Buyer and the Bank

173. For the purpose of escrow of the consideration in a sale of a raw land being sold by a real estate

brokers, the purchase price or part thereof san be deposited with any of the following, except:

a. Third party

b.

Commercial Bank

c.

Real estate Brokerd.

Thrift Bank

e. Seller

174. A duly registered and licensed natural person who, for a professional fee, commission or other

valuable consideration, acts as an agent of a party in a real estate transaction to offer the sale

estate

a.

Real estate middleman

b. Real estate broker


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c. Real estate marketing company

d.

Real estate brokerage corporation

175.

Appraisal principle which holds that the value of property tends to be enhanced by association

with superior properties, is

a.

Principle of infiltration

b.

Principle of regression

c.


d.

Principle of competition

176.

The following are function of a real estate broker in real estate transaction, nut not:

a.

Sale

b.

Mortgage

c.

Construction

d.

Lease

177.

A duly accredited natural person who performs service for, and in behalf of, a real estate broker

who is registered and licensed by the Professional Regulatory Board of Real Estate Service

a.

Real estate property consultant

b.

Real estate salesperson

c.

Real estate sales agent

d. Real estate sales consultant

178.

The study of current supply and demand conditions in a particular area for a specific type ofproperty is.

a. Real estate appraising

b.

Cash flow analysis

c. Market data approach

d.

Market analysis

179.

Any person, natural or juridical, who is engaged in the trade of selling, buying, or leasing his own

real properties or interest therein, using his own funds and with the purpose of realizing profit as

defined under the RESA

a.

Real estate brokerb.

Real estate developer

c. Real estate dealer

d.

Real estate builder

180.



a.


b. Cost approach


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c. Income approach

d.

Market date approach

181.

A real broker performs his functions and receives compensation for the services rendered in the

form of

a.

Salary

b.

Professional fee

c.

Profit

d.

Gain

182.

A real estate broker is required to obtain a license from the

a.

Professional Regulatory Commission

b.

Department of Trade and Industry

c.

Housing Land Use and Regulatory Board

d.

Professional Regulation Commission

183.

Real estate as a profession refers to rendering of service for and on behalf of another, the sell,

lease, mortgage, exchange, on real estate matters, for a professional fee or

a.

Valuable consideration

b.

Profit

c.

Professional salary

d. Valuable compensation

184.

A kind of survey where the shape of the earth is taken into account in computing results isknown as

a. Plane survey

b.

Geodetic survey

c. Topographic survey

d.

Cadastral survey

185.

The essential elements of real estate brokerage are, but not

a. Employment of the broker as an agent

b.

There must be a written contract between the owner and broker

c.

Functions to be performed by the broker must be specificd.

The services rendered by the broker are for a fee, commission or any other valuable

consideration

186. Refers to housing programs and projects covering houses and lots or home lots only undertaken

by the Government or the private sector for the underprivileged and homeless citizens pursuant

to RA 7279.

a.

Socialized Housing

b. Low Cost Housing


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c. Homeless Housing Program

d.

Low Cost and Homeless housing

187.

An essential attribute of a real estate broker is to have good working knowledge of the

following, but not:

a.

Real estate economics

b.

Laws affecting real estate

c.

Real estate consultancy

d.

Financing practice in real estate transaction

188.

The ratio that expresses the relation between gross income and sales price of property is

a.

Recapture rate

b.

Effective gross income

c.

Capitalization

d.

Gross income multiplier

189.

The essential attribute of tact and diplomacy of a real estate broker refers to skills in

a.

Negotiation

b.

Site tripping

c.

Project presentation

d.

Closing the sale

190.

The owner or principal has the right to have full knowledge of

a.

All facts and circumstances affecting the transactionb.

All facts about the personal circumstances of the broker

c. All facts about the experience of the real estate broker in selling

d.

All facts about the personal circumstances of the buyer

191.

The rational approach of allocating available land resources as equitably as possible among

competing user group is

a.

Land assembly

b. Land use plan

c.

On-site development

d.

Urban renewal

192. The principal has the right to negotiate and close the deal himself without being under any

obligation to pay commission to the broker unless it is an

a. Exclusive listing

b.


c. Open listing

d.

Non-exclusive authority


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193. The priority of a tenant to buy the land located is an urban reform area is known as:

a.

Tenant’s possessory

b. Tenant’s incremental right

c.

Tenant’s right of first refusal

d. Tenant’s retention right

194.

A real estate broker has the following rights, except

a.

To receive compensation for services rendered

b.

To be informed of facts concerning the property listed with him

c.

To be given ample time to complete the negotiations

d.

To be paid only in money by the principal

195.

Several houses valued at P1,000,000.00 and P2,000,000.00 were built in area where an existing

house valued at P800,000.00 is located. As a result, the value of the latter increased. The real

estate principle of value that applies to this situation is called the principle of:

a.

Substitution

b.

Improvement

c.

Progression

d.

Regression

196.

The following are duties and responsibilities of a real estate broker, except

a. To be absolutely loyal to the principal

b.

To inform the principal of all facts relevant to the transaction

c.

To account for all the money entrusted to himd.

To protect the interests of the buyer

197.

The principal is liable for all the acts of his agents such as the real estate broker which are

executed

a.

Upon the own volition of the broker

b. Upon instruction of the buyer

c.

Outside the scope of the authority

d. Within the scope of his authority

198.

For a broker to be entitled to commission, he must find a buyer who will actually buy theproperty

a. On the terms and conditions accepted by the owner

b.

On cash payment only

c. Within fifteen days

d.

On the terms and conditions imposed by the buyer


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199. Where there is no mention of the commission due to the broker and his services were engaged

and subsequently a sale is made to buyer procured by the broker, the rate of commission may be

determined by

a.

The schedule of commission in Metro Manila

b. The schedule of commission of the PRBRES

c.

The established business practice

d.

The established commissions of the real estate service organization

200.

In real estate transactions, commission is due upon the

a.

Perfection of the contract

b.

Signing of the Deed of Sale

c.

Taking possession by the buyer

d.

Transfer of title to the buyer

201.

Some of the conditions that the real estate broker must show to entitle the broker to

commission are, but not

a.

That his services were contracted by the person from whom he seeks payment

b.

That his effort is the procuring cause of the sale

c.

That the buyer will pay in cash

d.

That he was able to find a buyer who is ready, willing and able

202. Generally, the person who contracted the service of the broker in promoting the sale of his

property is bound for payment of commission and is the

a.

Sellerb.

Buyer

c. Representative of the buyer

d.

Seller and buyer

203.

This is a provision in a listing contract which entities the broker to commission even if the sale

were closed after the period of his authority, provided that the buyer was registered by the

broker with the seller during the period of authority

a. Safety clause

b.

Safety holdover clause

c.

Safety commission claused.

Safety listing clause

204.

In the absence of any stipulation to the contrary, the commission is payable in full

a. Upon the consummation of the contract

b.

Upon perfection of the contract

c. Upon payment of the earnest money

d.

Upon reservation


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205. The sharing of commission between two people who are both real estate brokers shall be based

upon

a. Equal sharing

b.

60-40 in favour of the broker who brought the buyer

c. Agreement of the brokers

d.

The owner of the property

206.

It is always advised that when dealing with co-brokers that the sharing agreement, in order to

avoid disagreements and conflict in the sharing of commissions be

a.

Be put in writing

b.

Be clarified at the beginning

c.

Be duly notarized

d.

Be in front of at least two witnesses

207.

It is a contract wherein a person binds himself to render some service or to do something in

representation of or on behalf of another, with the consent or authority of the latter

a.

Contract of representation

b.

Contract of Agency

c.

Contract of Authority

d.

Contract of service

208. The income approach in estimating the value of an investment property is an application of

a.

Principle of Substitution

b.

Principle of Progressionc.


d. Principle of Anticipation

209. The relation between one who reposes confidence in another who acts as his agent, based on

“trust and confidence: as in the relationship of the broker and the owner is referred to as

a. Trust relationship

b.

Fiduciary relationship

c. Confidence relationship

d.

Trust and confidence relationship

210.

The technical description in the TCT of real property can be readily plotted on a sheet of paper

by using the following data:

a.

BLLM and the tie line

b. Bearing and tie line

c.

Bearing and distance from lot points

d. Bearing and lot points

211. The essential elements of agency are the following, but not


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a. Mutual consent of parties to established relationship

b.

Object is the execution of a juridical act

c. Agent acts for himself

d.

Agent acts within scope of authority

212.

The following are modes of extinguishing agency, except

a.

Expiration of period

b.

Withdrawal of agent

c.

Death of the buyer

d.

Revocation

213.

The contract of agency may be terminated under the following circumstances, except

a.

Accomplishment of purpose

b.

Revocation by the buyer

c.

Death of the principal

d.

Dissolution of firm which granted or accepted agency

214.

The initial step that a real estate broker undertakes in real estate brokerage is

a.

Securing listing

b.

Procuring prospect

c.

Presentation and demonstration

d. Negotiation

215.

Refers to the authority given by the seller, buyer, lessor, lessee, owner, borrower or leader forthe broker to negotiate the sale, purchase, lease, mortgage or exchange of a real estate property

a. Owner’s authority

b.

Listing

c. Authority to sell

d.

Authority to buy

216.

In a listing, the following contents may be found, but not

a. Name, address and signature of the principal

b.

Name, address and signature of occupants

c.

Description of the propertyd.

Description of improvement, if any

217.

Mr. O gave an authority to sell to the real estate broker and may indicate the following in the

authority, except

a.

Period and conditions of the authority

b. Amount of rent and deposit

c.

Price and terms

d. Rate of commission


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218. The best form of authority/listing that a real estate broker should get from the owner is

a.

Verbal listing

b. Written listing

c.

Written listing and notarized

d. Written listing with a witness

219.

A verbal listing obtained by a real estate broker to lease the house of the owner is

a.

Valid

b.

Void

c.

Without effect

d.

No validity

220.



a.


b.

Cost approach

c.

Income approach

d.

Market data approach

221.

A listing to sell the land of the owner wherein two or more brokers are authorized to negotiate

the sale of the property is referred to as

a. Double listing

b.

Multiple listing

c.

Non-exclusive listingd.

Public listing

222.

An authority obtained to be an exclusive broker but the broker will not be entitled to

commission if the owner himself sells the property is referred to as

a.

Non-exclusive listing

b. Exclusive right to sell

c.

Exclusive listing

d. Owner’s exclusive listing

223.

Mr. B got a listing to be the exclusive broker where the broker is entitled to commission even ifthe owner himself sells the property is referred to as

a. Non-exclusive listing

b.


c. Exclusive listing

d.

Non-multiple listing

224.

As to function, the contract of agency of the real estate broker may involve the following, except

a. Sales agency


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b. Leases agency

c.

Exchange agency

d. General agency

225. It is an authority given by a borrower for the broker to secure financing, or an authority given by

a financing firm for the broker to procure borrowers.

a.

Mortgage agency

b.

Loan agency

c.

Creditor agency

d.

Bank agency

226.

The buyer gave an authority to a broker to look for a property for sale and negotiate the

purchase of said property and is referred to as

a.

Purchase agency

b.

Sale agency

c.

Acquisition agency

d.

Negotiation agency

227.

A listing wherein the broker will depend on the over price over the amount desired by the seller

is referred to as

a.

Net listing

b. Overprice listing

c.

Open listing

d.

Net overprice listing

228. One wherein the fee of the exclusive broker is stipulated as a percentage of the total

consideration/ selling price agreed is referred to as what kind of listing

a. Net listing

b.

Percentage listing

c. Exclusive listing

d.

Listing overprice

229.

An appraisal technique in which comparative estimate are made between prices paid in actual

transactions and the current listings:a.

Cost approach

b. Income approach

c.

Market approach

d. Economic approach

230. A real estate broker may obtain his listing for a condominium unit from the following, except

a.

Newspaper classified ads and advertisements

b. Internet search (websites)


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c. Physical search / ocular search in a subdivision

d.

Co-brokers, real estate salesmen/agent

231.

This is a cooperative arrangement among real estate brokers whereby properties for sale or

wanted by a broker is circularized to the others is referred to ass

a.

Cooperative listing

b.

Public listing

c.

Multiple listing

d.

Public multiple listing

232.

Refers to one who has both no willingness and capacity to buy the property

a.

Suspect

b.

Prospect

c.

Prospective buyer

d.

Interested buyer

233.

When the loan is fully amortized by equal monthly payments, the amount applied to the

principal:

a.

Decreases while interest payment increases

b.

Increases while interest decreases

c.



234.

A buyer of a house and lot wanted to buy the property and had the capacity to borrow money,from the bank to pay the balance of the purchase price. The buyer shall be considered in real

estate service practice as a

a.

Suspect

b. Prospect

c.

Potential purchaser

d. Bank loan buyer

235. It is the process of showing the property and pointing out its physical attributes, features and

qualities and other benefits and advantages as to satisfy the needs of the buyer

a.

Trippingb.

Site inspection

c. Presentation and demonstration

d.

Negotiation

236.

The principle of value which states that the value of a property tends to be enhanced where

there is reasonable homogeneity is use

a.

Principle of highest and best use

b. Principle of conformity


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c. Principle of increasing returns

d.


237.

The stage in brokerage wherein the broker reconciles the opposing views of the parties to the

transaction- the buyer and the seller – as to price and terms of the sale is referred to as

a.

Mutual agreement

b.

Negotiations

c.

Bargaining

d.

Reconciliation of terms

238.

The following are the items normally covered in the negotiations between the seller and the

buyer in the purchase of a house and lot, but not

a.

Price and terms

b.

Expenses for execution and registration of the sale

c.

Payment of condominium dues

d.

Real estate taxes and other expenses

239.

The step in the real estate brokerage process where the minds of the parties meet and the

buyer’ offer of price, terms and other conditions finally become acceptable to the seller, or vice-

versa is referred to as

a.

Final agreement

b. Closing

c.

Finalization of sale

d.

Deed of absolute sale

240. It is referred to as the amount accompanying an offer to purchase to show the good faith or

genuine desire of the buyer to purchase the property of the private owner

a. Option money

b.

Reservation money

c. Earnest money

d.

Deposit

241.

In case the buyer pays an earnest money for the purchase of the lot on a deferred term, the

earnest money shalla.

Form part of the reservation paid

b. Form part of the purchase price

c.

Form part of the instalment payment

d. Form part of the final payment

242. It is a contract between the seller and the buyer wherein the former, for a consideration binds

himself to reserve the property for the latter to purchase within a stipulated of time and at a

specific price.


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a. Contract to sell

b.

Option contract

c. Contract to buy

d.

Intent to buy

243.

This is paid by a lessee to the lessor to reserve the land for the lessee to decide whether to lease

the land or not within a period of time at an agreed rent

a.

Deposit rental

b.

Option money

c.

Reservation money

d.

Earnest money

244.

In the contract over the purchase of the property this amount is separate and distinct from the

purchase price

a.

Option money

b.

Earnest money

c.

Reservation deposit

d.

Reservation money

245.

One of the reasons a buyer will initially give an option money to buy a parcel of land on cash is

a.

Buyer would still like to study and decide whether to actually but the property or not

b. Buyer does not have money to buy the property

c.

Buyer wants to buy the property on instalment

d.

Buyer prefers to rent to own the property

246. It is an agreement wherein the consideration of a contract, or a portion thereof, is entrusted to

a third party known as escrow agent who is authorized to release payment upon fulfilment or

performance of some acts or conditions

a.

Third party agreement

b. Deposit arrangement

c.

Escrow agreement

d. Conditional payment agreement

247.

Some of the reason in entering into an escrow agreement are as follows, excepta.

When the property is occupied by squatters and the seller assumes the responsibility to eject

them

b.

When the seller requests for time to vacate and to ensure delivery within the agreed period

c. When the buyer would need time before occupying the property

d.

When title to the property has certain encumbrances which the seller has undertaken to

cancel


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248. In general, when there are certain conditions which will still have to be performed by the seller

and the buyer would like to ensure that these conditions are fulfilled before full payment and the

seller, the amount to be paid shall

a.

Be put in a bank account of the buyer

b. Be put in escrow

c.

Be deposited in time deposit

d.

Be held by the real estate broker

249.

Real estate economics is the application of economic techniques to real estate markets. It tries

to describe, explain, and predict patterns of the following, but not

a.

Supply

b.

Demand

c.

Desire

d.

Price

250.

Ain general, this means the effect of one aspect of the economy with the other economic

activities.

a.

Economic effect

b.

General economic effect

c.

Multiplier effect

d.

Economy aspect effect

251.

The multiplier effect of real estate in the Philippine economy as per the government plan is said

to be in the estimated amount ofa.

1:10

b. 1:15

c.

1:20

d. 1:16

252. A Certificate certifying that, based on the submitted project description, the project is not

covered by the EIS System and is not required to secure an environmental compliance certificate

or ECC

a.

Certificate of Non-Coverage

b.

Certificate of Exemptionc.

Certificate of Compliance

d. Certificate of Environment Compliance

253. The housing or real sector provides and sets of a domino effect on other economic activities

which can be referred to

a. Housing effect

b.

Domino effect

c. Multiplier effect of real estate


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d. Multiplier effect of housing

254. It is basically a result of the interplay of supply and demand of a certain product, such as real

estate housing

a. Multiplier effect

b.

Price

c.

Demand

d.

Supply

255.

In the case where there are more than sellers of lots in a subdivision, then it is considered a

a.

Oversupply of buyer

b.

Seller’s market

c.

Buyer’s market

d.

Open market

256.

In the even there are many real properties available or more sellers than there would be a

demand from the buyers, it is normally referred to as a

a.

Seller’s market

b.

Seller’s market supply

c.

Buyer’s market

d.

Open market

257.

Rea estate financing involves the acquisition of property through loan financing sources, which

may be sourced from the following, except:a.

Borrowed Funds from Relatives/ Friends

b. Discounted cash payment

c.

Bank Financing

d. Assumption of Loan/Mortgages

258. To compute monthly amortization on the instalment payments for the purchase of a

Documents

1EXAMINATION ON LEGAL ASPECTS OF SALE....pdf