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ReBLEx
by
REDOCTOBER
Feb 28
2016
If you put together
The Best and Dedicated Lecturers, The Latest and Relevant Resources,
The Most Effective Review and Seminar and The Most committed and determine Students What will you get?
SUCCESSFUL BOARD PASSERS.
- Red October
Real Estate
Broker
Licensure
Examination
FINAL
THE LEADER IN BOARD EXAM PREPARATION
PRAYER BEFORE THE EXAM
Praise be to GOD, the Cherisher and Sustainer of the Worlds; Most Gracious, Most Merciful;
Master of the Day of Judgement.
YOU alone do we worship, and YOUR alone aid we seek
Show us the straight way, the way of those on whom YOU have bestowed YOUR Grace, those whose portion is not wrath, and who go not astray.
Oh God, Increase our knowledge! Amen!
DEDICATION
With Genuine Humility, I acknowledge YOUR Aid, O GOD! With all my heart, I Thank You, O GOD!
Without Your Guidance and Love, This work would not have been possible.
Were it not for YOUR help and cause, This Humble Contribution would have never become a reality.
And if it worth Dedica ting, Please Bless it with YOUR acceptance; It is dedicated to YOU, O GOD!
If this modest effort is successful, it is by God’s grace and guidance.
But if it falls short of the reader’s expectations, please forgive me of my imperfect judgments.
Yusuf Ali Carpio Red October
ACKNOWLEDGEMENT
Always there are people to thanks.
Amy, Vangie, Joe, Tom, Gilbert, Rem, Danilo, Garry, Noel & David for their generous support. They are the beacon of Red October in rough seas. Aga, Raffy, Mark, Raul, Jayfred, Lorna and the Acosta of Palawan, they are the reliable sailors of Red October.
My loving wife Ana, my children Hannah, Jose and Joseph. They are my North Star whenever I am lost at sea.
To the men and women who aspire to become brokers and believe that Red October is the vessel that will bring them to their aspirations despite rough sailings,
THE LEADER IN BOARD EXAM PREPARATION
Ascension
And if I go,
while you‟re still here…
Know that I live on,
vibrating to a different measure
-- behind a thin veil you cannot see through.
You will not see me,
so you must have faith.
I wait for the time when we can soar together again,
-- both aware of each other.
Until then, live your life to its fullest.
And when you need me,
just whisper my name in your heart,
…I will be there.
by Colleen C. HitchcockIn Memoriam
Erning & Lita Carpio
Dhel Ali
THE LEADER IN BOARD EXAM PREPARATION
TABLE OF CONTENTS
Prayer and Dedication ……….. 1
Table of Contents ……….. 2
Explanation of TOS ……….. 3
TOS OF REBLEX ……….. 4 Key Concepts test 1 ………..
TEST 1 ………..
Key Concepts test 2 ………..
TEST 2 ………..
Key Concepts test 3 ………..
THE LEADER IN BOARD EXAM PREPARATION
Table of Specifications (TOS)
The Table of Specifications is the test blueprint. TOS, as what it is usually called, serves as a guide for preparing test. A TOS helps test maker frames the decision making process of test construction and improves the validity of the test.
A TOS is a table that helps test maker aligns objectives, instructions ant topics to assessment. TOS assures that the test made is valid in both content and expected output. It answer the questions WHAT TOPICS ARE INCLUDED IN THE TEST?, WHAT ARE THE QUESTIONS‟LEVELS OF DIFFICULTIES? And HOW MANY QUESTIONS PER TOPIC?
When constructing a test, a test maker needs to be concerned that the test measures an adequate sampling of the topics to be measured at the cognitive level hence the need for TOS as a guide. TOS assures that the test is valid both in content distribution and expected outcome. The TOS helps test maker determines the number of items and the difficulty level of each topics. This will distribute the items depending on the weight per topic.
Included in the TOS are the following: 1. Number of topics;
2. Number of items allotted per topic; 3. Total number of items; and
4. Bloom‟s Taxonomy of the Cognitive Domain.
Bloom‟s Taxonomy of the Cognitive Domain is divided into two (2):
i. Low Order Thinking Skills (LOTS) - Knowledge and Comprehension ii. High Order Thinking Skills (HOTS) – Application, Analysis, Synthesis and
Evaluation
EASY QUESTIONS – Knowedge and Comprehension
Knowedge questions are simple recall questions. e.g. Who is the Chairperson of PRBRES?
Comprehension questions are much broader than recall questions. Usually requires understanding of the concepts. . E.g. explain the meaning of Real Property.
MODERATE QUESTIONS - Application
Application questions demands using a theory to solve an actual problem. E.g. With the use of the compass and a tape measure, pinpoint the location of a real estate from the tie point. Or Using Maceda Law, compute the Cash Surrender Value.
DIFFICULT QUESTIONS – Analysis, Synthesis and Evaluation
Analysis questions breaks things down to smaller pieces while synthesis questions puts these small pieces together again. Ex of analysis: Why is there a need for an EIA study in making a subdivision? Ex. Of synthesis: Write a summary of the Urban development in Cagayan de Oro City.
THE LEADER IN BOARD EXAM PREPARATION
The TOS is A MAP for exam takers. TOS helps the exam takers chart their study based on topics that will most likely appears in the exam. - Red October.
TABLE OF SPECIFICATIONS
based on PRB RES res#11 series of 2011
The Board Takers‟ guide in planning, preparation and study for a successful ReBLEx By Red October
TEST 1 GENERAL / FUNDAMENTALS OF REAL ESTATE SERVICE
100 ITEMS / 25% WEIGHT / 8:00-10:00 am
EASY MODE
RATE DIFFICULT TOTAL
(Weight) Kno. Com. App. Ana. Syn. Eva.
1. Named describe apply and analyze the Fundamentals of
property ownership 5 5 10 5
25 (6.25%) 2. Recall explain and practice and categorize the Code of
ethics and responsibilities of real estate practitioners 5 5 10 5
25 (6.25%) 3. State, translate/discuss, interpret and examine the legal
requirements for real estate service 5 5 10 5
25 (6.25%) 4. List identify use and classify real estate laws and
taxation 5 5 10 5
25 (6.25%) TOTAL NUMBER OF ITEMS
20 20 40 20 100
(25%)
TEST 2 SPECIAL AND TECHNICAL KNOWLEDGE
100 ITEMS / 25% WEIGHT / 11:00-1:00pm
EASY MODE
RATE DIFFICULT TOTAL
(Weight) Kno. Com. App. Ana. Syn. Eva.
1. Recall estimate illustrate outline /design the special and
technical knowledge on subdivision development 5 5 10 5
25 (6.25%) 2. State describe prepare differentiate condominium
concepts and other types of real estate holdings 5 5 10 5
25 (6.25%) 3. List explain illustrate analyze the legal aspect of sales
mortgage and lease 5 5 10 5
25 (6.25%) 4. Record translate/locate schedule/prepare and examine the
documentation and registration of transaction 5 5 10 5
25 (6.25%) TOTAL NUMBER OF ITEMS
20 20 10 5 100
(25%)
TEST 3 PROFESSIONAL PRACTICE
200 ITEMS / 50% WEIGHT / 2:00-6:00PM EASY
MODE
RATE DIFFICULT TOTAL
(Weight) Kno. Com. App. Ana. Syn. Eva.
1. Name discuss apply and appraise the Real estate
brokerage practice 7 7 14 5
33 (8%) 2. Recall describe compute /illustrate calculate real estate
finance and economics 7 7 14 5
33 (8%) 3. State discuss illustrate differentiate urban and land use
7 7 14 5 33
(8%) 4. Recognize locate identify prepare and examine the
planning development and zoning of properties 7 7 14 5
33 (8%) 5. State translate interpret and analyze the basic principle of
ecology 7 7 14 5
33 (8%) 6. Recall explain use analyze the Basic appraisal for real
estate brokers 7 7 14 5
33 (8%) 7. OTHERS
2 2
THE LEADER IN BOARD EXAM PREPARATION TOTAL
42 44 84 30 200
(50%) TEST 1 GENERAL / FUNDAMENTALS OF
REAL ESTATE SERVICE 100 ITEMS COVERED TOPICS:
1. Fundamentals of property ownership 2. Code of ethics and responsibilities of real
estate practitioners
3. legal requirements for real estate service 4. real estate laws
5. taxation
How is your Prep? Check your stock knowledge by defining these key concepts.
*key Concepts a re words, sentences, phra ses, elements needed by exa m ta kers in a nswering. Ma ke sure that you a re fa milia r with this concepts. If not, just go ba ck to your review
ma teria ls a nd sea rch for their meanings. Key concept ha s a
tick box before it for you to mark what you know or don’t
know.
Fundamental of Property Ownership
Regalian doctrine
Stewardship Principle
Powers of the State
Eminent domain vs. Expropriation
Bundle of rights
Land, real estate, real property
Fixture – always real property
Trade fixture – always personal property
Personal and real property
Private and public restriction of ownership
Alluvium, avulsion, accretion
Accession
Unearned increment
Dominant and servient state
Easement in Gross
Easement Appurtenance
encroachment
Escheat
Kind of Ownership
Sole Ownership/ Fee Simple
Joint Tenancy
Tenancy in Common
Tenancy by Entirety
Usufruct
Naked ownership
Fee simple
Lease fee and lease hold
Property regime of husband and wife
Effectivity of the family code
When can a foreigner acquires real estate in the Phil.?
Limitation of land area by former Filipinos
Lease of public land by foreigners
Lease of private land by foreigners
Jus soli and jus sanguine
Capital property
Paraphernal property
Patrimonial property
Corporate ownership of Filipino & alien
Adverse claim & elements – O.C.E.A.N.
Prescription period of adverse claim
Classification of Lands of Public Domain
Classification of Lands based on Tax Assessment
Inalienable land of Public Domain
Alienable and Disposable Land
Code of Ethics
The Golden Rule
Fiduciary Relationship
Full Disclosure
Good Faith
Escrow Account
Statute of Fraud
Relationship of Broker and Salesperson
Duties to Public, Profession, Gov‟t, etc.
Legal Requirements (RESA)
AIPO, Philres and its president R.G.V.
PRBRES and its chairman E.G.O.
PRC and its chairman
Effectivity of Resa
Section 20. How many units
THE LEADER IN BOARD EXAM PREPARATION
PD 957
BP220
PD 1216
R.A. 6552
UDHA
R.A. 7160
Taxation
E-vat
Capital Gains Tax and Ordinary Tax
Estate Tax
Donor Tax
CGT, DST and thier deadlines
CGT exemptions
Capital asset
Ordinary asset and their percentages
Zonal value
Assess value
Maximum donor tax
Bases of Assessment (RPT)
How to compute RPT
Schedule Revision of SMV
Start of Test 1
1. Tenancy in severalty refers to A. Ownership by a married couple
B. Ownership of one person
C. Ownership by blood relationship D. Ownership by unrelated people 2. Eminent domain is
A. The right of the government to take private property for public use
B. The power of the government to take private property for future use C. The ancient form of ownership not
common today
D. The right of the people to take government property for housing
3. Real Estate is defined as a. Land and building
b. Land and all permanent attachments to it
c. Land and everything growing on it d. Land only
4. Real Property is defined as
a. Real estate owned by someone b. Land and all the improvements c. Land plus title
d. Real estate and the bundle of rights
5. Which of the following is not realty a. Fee simple estate
b. Leasehold for indefinite duration
c. Lumber
d. Life estate
6. An easement in gross
a. Covers an entire property and all parts of it
b. Extends to one person only
c. Extends to the general public d. Occurs when the public has used
private land.
7. If government takes private property it must a. Make just compensation
b. Require the property for public use
c. Both A and B
d. Neither A nor B
8. An item of personalty that is affixed to realty so as to be used as a part of it is
a. Trade Fixture b. Chattel
c. Personal property
d. Fixture
9. The right of the state to take title to real estate for which no legal owner can be found is called
a. Police power b. Tenancy
c. Eminent domain
d. Escheat
10.Which of the following has the right of survivorship?
a. Joint tenant
THE LEADER IN BOARD EXAM PREPARATION 11. Escheat is
a. The right to cross someone else‟s land to get to the road
b. A variety of fraud exclusive to real estate
c. The right to inherit if there is no will
d. None of the above
12. The largest “bundle of rights” to real estate is a ______ estate
a. Leasehold
b. Fee simple
c. Life
d. Homestead
13. Which of the following is an “improvement‟ to land?
a. Rezoning b. Driveway c. Orchard
d. All of the above
14.Which one of the following is NOT a test of a fixture?
a. Manner of attachment
b. Intent of the person who put it
c. Time of attachment
d. Custom in the community
15. As long as the life tenant is alive, the remainderman has
a. An easement in gross
b. Reversionary interest
c. Fee simple estate
d. Renewing leasehold estate
16. Which of the following is a nonfreehold estate?
a. Fee simple estate
b. Leasehold estate
c. Life estate
d. Qualified fee simple
17.A person who owns an undivided interest in real estate with at least one other person without the right of survivorship is called
a. Tenant in severalty b. Life tenant
c. Tenant in common
d. Joint tenant
18. Which of the following is a realty? a. 1 year lease
b. An equitable tittle c. A land contract
d. A life estate
Code of Ethics and Responsibilities
19. A broker must keep all earnest money deposits in
A. Her office safe
B. Her business checking account C. An escrow or trust account
D. A savings account of her business
20.What is the golden rule?
a. Treat others as you want others to treat you
b. Do unto others what you do not want others to do unto you
c. Do not do unto others what you want others to do unto you
d. Treat others as you want them to be treated
Legal Requirements for Real Estate Service (RESA)
21.A broker‟s license is suspended for six (6) months. The broker‟s salespersons
a. Also lose their licenses for 6 months b. May continue to operate the broker‟s
business
c. May upon proper application, transfer their licenses to another broker
d. Must place their licenses on inactive status for 6 months
22. The Real Estate service of the Phils governs the following service practitioners,
THE LEADER IN BOARD EXAM PREPARATION
e. Dealer
23.Under the RESA, there must be one broker for every
a. 100
b. 20
c. 50 d. 25
24.There is created a professional regulatory board of real estate service, hereinafter referred to as the Board under the
supervision and administrative control of the a. DTI
b. DOLE
c. DOF d. DOJ
25.Any violation of RA 9646 of the IRRR committed by a licensed real estate appraiser, shall be meted the penalty of a fine of not lower than.
a. 100,000
b. 200,000 c. 10,000 d. 20,000
26.The real estate service practitioner shall be required to indicate on the documents he/she signs, uses or issues connections with the practice of his or her professional the following , except
a. License number b. PTR
c. APO
d. CTC
27.In the licensure examination for the applicants for the real estate brokers a subject for examination common to all real estate service practice is
a. Human and physical geography b. GIS
c. Real estate finance and economics
d. Brokerage Practice
28.Upon application and payment of the required fees for the approval of the commission the board may issue a special /temporary permit to a real estate service practitioner from the foreign countries, whose services are urgently needed in the absence or an unavailability of local real estate service practitioners provided that
a. There is reciprocity between his country and the Philippines
b. There is the need of the developer for foreign practitioners
c. The foreigner are more expert d. NOTA
29.The real estate broker shall in a addition to the oath refer to the preceding section be required to post a professional indemnity insurance or cash or surety bond in an amount to be determined by the board which in no case shall less than
a. 10 thousand
b. 20 thousand
c. 40 thousand d. 15 thousand
30.Within ____________ days from the effectivity of R.A. #9646, the DTI-BTRCP shall transfer all pertinent records, documents and other materials to PRBRES.
a) 30 days b) 45 days
c) 60 days d) 90 days
31.The ______________ of the commission shall act as prosecutors against illegal practitioners and other violators of R.A.# 9646 and its IRR.
a) Chairperson b) Lawyers
c) Secretary of PRBRES d) Members
32. The CPE Council Chairperson should come from the ______________.
a) PRBRES Board b) AIPO
c) Academe
THE LEADER IN BOARD EXAM PREPARATION 33.No partnership or corporation shall engage
in business of real estate service unless it is duly registered with the _______________.
a) PRC b) SEC c) PSE
d) Realty Service Council
34.Under RA 9646 Section 20. Registration Without Examination, if someone passed in the 2007 Licensure exam of the then DTI and have failed to get a license, how many CPE credits units are needed to earn for him/her to register with PRC?
a) 15 credit units b) 18 credit units c) 24 credit units d) 120 credit uniTS
35.13. How many CPE credit units are required for registered and licensed professional with baccalaureate degrees like Real Estate Service Practitioners for renewal of their license for the next three years.
a) 24 Credit Units b) 30 Credit Units c) 60 Credit Units d) 45 Credit Units
36.Within _______________ years from effectivity of the Act, all existing and new positions in the national and local governments shall be filled only by registered and licensed real estate service practitioners.
a) one (1) year b) two (2) years c) three (3) years d) five (5) years
37.During what congress was the Republic Act 9646 enacted into law.
a) 13th Congress b) 14th Congress c) 15th Congress d) 16th Congress
38.The policies resolutions and rules and regulations issued by the PRBRES shall be subject to the review & approval by the a) Secretary of Professional Regulatory
Board
b) Professional Regulations Commission c) Office of the President
d) Bureau of Local Government Finance
39.Is the CHAIRPERSON of PRC a) Ernest Carpio
b) Teresita Manzala
c) Sultan Yusuf Ali Carpio al Hajj d) None of the above
40.The 4 yr. course required for real estate service practitioners is ________________. a) BS REM b) BS BAC
c) Assocciate in RES
d) BS Property Management
41.29. All CPE sessions shall be conducted by PRC accredited ______________ providers. a) AIPO b) Academic
c) CPE d) Review
42.The Senate President who signed R.A. #9646 is
a) Manuel Villar Jr. b) Franklin Drilon c) Aquilino Pimentel Jr. d) Juan Ponce Enrile
43.The speaker of the house who signed R.A. #9646 is
a) Jose de Venecia Jr. b) Prospero Nograles c) Joseph Carpio d) Feliciano Belmonte Jr.
44.The color of PRBRES Official Seal that represents ethical standards and prosperity. a) Blue b) White c) Gold d) Silver
Real Estate Laws and Taxation
45. Which of the following is (are) ALWAYS exempt from real property taxes?
THE LEADER IN BOARD EXAM PREPARATION
B. Government-owned property
C. Private, for profit school
D. Property owned by a private person but rented to a foundation
46.An ad valorem tax is based on
a. Size and or weight of article taxed
b. Value of article taxed
c. Taxpayer‟s income
d. Sale price of article taxed
47.In determining the value of the
improvements the BIR regulations provide that the value of the latest tax declaration is more than 3 years old the seller must therefore get a
a. Certificate of no improvement
b. Certification from Assessor that the tax is still the latest
c. Certificate from the building office that the building is old
d. NOTA
48.Mr and Mrs. Saduc sold their condominium until which is being leased out to a tenant as part of their leasing business with the execution of the sale last February 1, 2008 though the deed of sale was only notarized the next day February 2, 2008. When is the deadline to pay the creditable withholding tax for the sale of the property.
a. February 28, 2008 b. March 2, 2009 c. March 10, 2008 d. March 5, 2008
49.The real estate broker was processing the sale of the owner which was duly notarized on April 5, 2009 but he failed to file and pay the capital gains on its due date. How much will be the surcharge penalty the owner will be charged for late payment.
a. 10% b. 15% c. 20%
d. 25%
50.Although the capital gains tax was paid by the seller on time, the seller forgot to pay the documentary stamp tax on time and after its due date. If the owner will be charged interest on the late payment of documentary stamp tax how much interest per annum will be charged
a. 10% b. 15% c. 20%
d. 25%
51.A multinational corporation engaged in the manufacture of steel bars owned a parcel of land in a residential subdivision which it bought as an investment and now is selling it as a price of P5,000,000 with the buyer to pay for the documentary stamp tax. What will be the rate of rate of tax that the corporation shall pay for the tax on the sale of the property.
a. 6%
b. 5% c. 7% d. 3%
52.To be exempted from capital gains tax on the sale of your principal residence to purchase another residence you must inform the BIR within how many days of your intention to avail of the tax exemption.
a. 12 months
b. 18 months
c. 24 months d. 36 months
53.In order to avail of the exemption from capital gains tax in the sale of your principal residence, it is one of the first requirements impose by the BIR to qualify for exemption. The property must be your residence for
a. 20 years b. 15 years
c. 10 years
d. 5 years
THE LEADER IN BOARD EXAM PREPARATION exemption from capital gains tax in the sale
of your principal residence. a. Earnest money agreement b. Option money agreement c. Bank agreement
d. Escrow agreement
55.In addition to the capital gains tax the seller must also pay this tax to the BIR , unless the buyer will be the one to pay as per
agreement and based on the selling price or zonal value or assessors value, whichever is higher.
a. Transfer tax b. Real property tax
c. Documentary stamp tax
d. Community tax
56.After the filing and payment of capital gains tax on the sale of the house and lot, the BIR will issue to the seller the following
document. a. COD
b. CAR
c. CAT d. CTR
57.A bank sold a 3 storey building for P20,000,000 which it foreclosed from the owner. The bank shall be liable to pay the following tax on the sale.
a. Ordinary tax
b. Capital Gains tax
c. Income tax d. eVAT
58.A DEVELOPER OF A RESIDENTIAL CONDOMINIUM PROJECT IN Taguig City sold a condominium unit for the price of P1.8 million pesos what will be the rate of tax that the developer will pay to the BIR for creditable withholding tax
a. 3% b. 5% c. 6%
d. 7%
59.The BIR examiner, in case of the sale of a person of a house and lot considered as ordinary asset, must first determine the following before the examiner will be able to know the rate of tax to be imposed.
a. Whether the person is exempted from paying CGT
b. Whether the person is delinquent in tax payments
c. Whether the person is habitually engaged in real estate business or not
d. NOTA
60.A tenant lease a condominium unit from the owner for a period of one year and use the same as his office. How much creditable withholding tax must the tenant deduct and pay to the BIR.
a. 3%
b. 5%
c. 6% d. 7%
61.A developer of a residential subdivision must pay the creditable withholding tax within how many days after the end of the month of the sale.
a. 10 days
b. 15 days c. 20 days d. 5 days
62.A married couple who were both licensed real estate brokers and engaged actively in real estate brokerage shall be both liable to the payment of value added tax on their commissions earned when the total commission exceeds
a. 1 million
b. 1.5 million
c. 2 million d. 2.5 million
63.Fundamental principles of local taxation of real estate properties located in a city or municipality is the following EXCEPT; a. Appraised in its current and fair
THE LEADER IN BOARD EXAM PREPARATION b. Actual Use
c. Uniform Classification
d. Appraised by a private appraiser
64.A special levy is the SEF tax which shall the rate of
a. 2% of the assess value b. 3% of the assess value c. 1% of the assess value d. 4% of the assess value
65.Although the collection of real property tax accrues on the first day of the year, the same may be paid without penalty :
a. In quarterly payments at the end of each quarter
b. In quarterly payments at the beginning of each quarter
c. In monthly payments at the end of each month
d. In monthly payments at the beginning of each month
66.The penalty for non-payment of the special education fund tax on its due date is :
a. 1% per annum
b. 2% per annum
c. 3% per annum d. 4% per annum
67.An owner of a parcel of land which had been owned by the owner for more than twenty years will be declared for the first time with the municipal assessor and the owner shall be subject to taxes for a maximum period of :
a. 15 years b. 20 years
c. 10 years
d. 5 years
68.The city council wanted to help its residents and taxpayers in its municipality and passed an ordinance giving a discount to real property owners for annual taxes paid, but should not exceed the rate of ___ discount
a. 5% b. 10%
c. 20% d. 30%
69.For non-payment of real-estate taxes and being delinquent, the city sold the property of the owner in a public auction. The owner however redeem the property within the period of
a. 1 year from the date of the auction sale
b. 1 year from the date of the registration in the ROD
c. 1 year from the date of notarization d. 1 year from the date of the deed of
sale
70.The following composed the Board of Assessment Appeals in the City of Manila except.
a. City / Provincial Register of deeds b. City / Provincial Assessor
c. City/provincial Prosecutor d. City / Provincial Engineer
71.. In payment of estate tax, an allowed deduction to the gross estate of a decedent in funeral expense is:
a. 5% of gross estate or P 200,000 whichever is higher
b. 10% of gross estate or P 200,000 whichever is higher
c. 15% of net sale or P 200,000 whichever is higher
d. 10 % of net sale or P 200,000 whichever is higher
72.The documentary stamps for the Estate tax shall be paid on:
a. After 30 days from notarization b. 60 days from date of notarization c. 0% not applicable
d. 1%
THE LEADER IN BOARD EXAM PREPARATION a. 5% of gross estate or P 200,000
whichever is higher
b. 10% of gross estate or P 200,000 whichever is higher
c. 15% of gross estate or P 200,000 whichever is higher
d. 20% of gross estate or P 200,000 whichever is higher
74. The amount of family home equivalent to fair market value considered as allowable deduction from the estate of a decedent.
a. P500,000 b. P 2,000,000 c. P1,000,000
d. P50,000
75.Mr. Maning Camot sold his property at P 5M inclusive of the capital gain tax, documentary stamp tax, and broker‟s commission of 5%. What will be his net proceed after deduction of expenses.
a. P4,375,000 sol. 5M-12.5% b. P 4,455,000
c. P4,875,000 d. P4,555,000
76.Determine the capital gain tax of an 800 sqm. lot with a house was sold for
P3,500,000 per tax declaration, the market value of the house is P1.5 M and lot is P1.6 M. The zonal of the lot is value of the house is P3, 500.00/sqm. The sale is subject to capital gain tax. Find basis of Capital Gain Tax
a. P4,300,000 sol.800x3500=2.8M +1.5M= b. P 4,150,00
c. P4,200,000 d. P 4,350,000
77.Find how much is the documentary stamp of an 800 sqm. lot with a house was sold for P3,500,000. per tax declaration, the market value of the house is P1.5 M and lot is P1.6 M. The zonal of the lot is value of the house
is P3,500.00/sqm. The sale is subject to capital gain tax.
a. P 63,450 b. P 64,6000
c. P 64,500 Sol.4.3M x 1.5%= d. P 64,220
78.If VAT is P 720,000, what is the selling price before VAT?
a. P5M b. 7M
c. P6M Sol.720k / 12% d. P 8M
79.A family residential was sold at P 4,500,000. The BIR FMV is P 5,000,000. Then the owner bought a new residential home worth P 3,000,000. What is the capital gain tax on the unutilized portion ?
a. P 98,000 b. P100,000
c. P90,000 Sol. 4.5M
-3M=1.5Mx6%= d. 105,000
80. Classification and use of lands exempted from CARP law but not included
a. Lands actually, directly and exclusively use for prawn farm and fishpond; lands devoted to raising of livestock‟ poultry or swine
b. Agricultural lands with slope of 18% or more; lands actually, directly and exclusively used and found necessary for parks, wildlife, forest reserves,
reforestration, fish sanctuaries, breeding grounds, water shed and mangroves
THE LEADER IN BOARD EXAM PREPARATION e. Lands actually, directly and exclusively
used and found necessary for national defense, school sites, cultural movement sites, mosque sites, communal burial grounds and penal colonies.
81.Cases where conversion of agricultural land cannot be allowed except:
a. Agricultural land within restricted areas designated under the national Integrated Protected Areas System ( NIPAS ),
including water shed and recharged areas of acquifier; irrigated lands where water is available for rice and other crops production and all irrigated lands where water is not available but are within areas programmed for irrigation facility rehabilitation
b. Irrigable lands already covered by irrigation projects with firm funding commitment;
c. Agricultural lands within irrigation facilities operated by private organizations.
d. Agricultural lands with destroyed
iirigation facilities and scarce availability of water.
82.An enactment that gives municipalities the power to reclassify up to 15% of agricultural land not covered by CARL to
non-agricultural uses if it is deemed by the local council ( sanggunian ) to be either no longer sound for agriculture or substantially greater value if used for residential ,commercial, or industrial purposes.
a. Ra 7160 c. 1988 LGU b. 1989 LGU d. Ra 7155
83.It is the act of changing current use of land awarded per RA 6657
a. Conversion c. Transformation b. Relocation d. Reconversion
84.Change from 1 classification or use of land property to another
a. Land reclassification c. land expropriation b. Land conversion d. land re-use order
85.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. Ministry Order No. 39 series of 1985 c. Republic Act 7279
d. DOJ Opinion No. 44 SERIES of 1990
86.Conversion permit of agricultural land of not more than 5 hectares shall be approved by the:
a. Municipal Agrarian Reform b. Regional Agrarian Reform Office c. Provincial Agrarian Reform d. Usec. For Legal Affairs, DAR
87.Registration of sale of 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 88.Documentary requirement for DAR
clearance in sale of 5-hectare agricultural land except:
a. Application for DAR clearance; copy of title, lot and vicinity plan
THE LEADER IN BOARD EXAM PREPARATION his present agricultural landholdings, if any,
does not exceed 5 has.
c. Municipal assessor‟s certification of seller‟s and buyer‟s extent of landholdings in the municipality; provincial assessor‟ certification of seller‟s and buyer‟s extent of landholding in the province; clearance from National Irrigation Authority
d. Seller‟s affidavit of non-tenancy or tenant‟s affidavit of voluntary surrender; buyer‟s affidavit that the hectarage he is selling is his retention area; buyer‟s affidavit that the hectarage he is buying, together with his present agricultural landholdings, if any, does not exceed 5 has.
89.Beneficiary of land may not sell, transfer, convey through hereditary succession said land for a period of:
a. 5 years c. 10 years b. 7 years d. 12 years
90.As provided for by the Agrarian Reform Law, lands awarded to a tenant beneficiary cannot be subject of a conversion permit within:
a. Within 1 year from grant of emancipation patent
b. Within 2 year from grant of emancipation patent
c. Within 5 year from grant of emancipation patent
d. Within 10 year from grant of emancipation patent
91.Government required approvals for development of agricultural land into subdivision project except:
a. DAR – conversion permit; b. DENR-ECC;
c. LGU-development permit & local clearance;
d. LRA /LMB- approval individual lots-technical description
92.Before a developer can start selling lots or units in a condominium project, it must FIRST secure from the HLURB
a. Certificate of registration
b. License to sell
c. Certificate of completion d. Certificate of Conversion
93.The following types of projects are required to obtained a Certificate of Registration and License to Sell form HLURB, except:
a. Condominium b. Subdivision c. Townhouses
d. Office building
94.Maximum period that a foreigner may lease real estate under the foreign investors lease Act is
a. 50 years renewable for 25 b. 25 renewable for 25 years c. 100 years renewable for 50 d. NOTA
95.The following is composed of the Board of Assessment Appeals in the City of
Malaybalay City
a. City assessor
b. City engineer
c. City council d. City mayor
96.The following composes the local board of assessment appeals EXCEPT
a. Registrar of deeds
b. City/municipal prosecutor
c. Provincial/city/municipal engineer
d. Assessor
97.The powers of HLURB to approve
subdivision plans has been devolved to local government pursuant to _____?
THE LEADER IN BOARD EXAM PREPARATION 98.The highest policy making body for housing
under the law is referred to as
a. HUDCC
b. HLURB c. NHA d. LRA
99.The following government agencies are attached agencies of the Housing and Urban Development Coordinating Council
HUDCC, except: a. HLURB b. NHA c. NHMFC
d. LRA
100. Under the governments socialized housing program, the ceiling amount for socialized housing has been increased to the amount of
a. 200,000
b. 450,000
c. 500,000 d. 550,000
Test II SPECIAL AND TECHNICAL KNOWLEDGE
COVERED TOPICS:
1. subdivision development
2. condominium concepts and other types of real estate holdings
3. the legal aspect of sales mortgage and lease 4. documentation and registration of
transaction
How is your Prep? Check your stock knowledge by defining these key concepts.
Subdivision, Condominiums and other types of Real Estate Development
PD 967
PD 1216
BP 220
UDHA
PAG-IBIG AND HMDF
HUDCC
Open Space
R.A. 7160
Maceda Law
Minimums of BP220 and PD 957
Master Deed / Enabling Deed
Deed of Restriction
Evat and non-evat prices
Legal Aspects and Documentation
Rights of Land Lord/Lease Fee Estate
Rights of Tenant/Leasehold Estate
Kinds of Lease
Boarders, Sublease, Assignment of Lease
CTC vs. COS
Elements of a valid Contract
Usufruct
Foreclosure
Redemption Period
Equity of Redemption
Adverse Claim
Attachment
Mortgage
Defeasance Clause
Automatic Redemption Clause
Tacita Reconduccion
Pactum de non-aliendo
Pactum commisorium
Dacion en Pago
Pacto de Retro
Option Contract
Earnest Money
Consummation and Perfection of Contract
Consignation
Consulta
Torrens Title
ACT 946 – Land Title act of 1903
Sec. 4
Adjudication
Settlement and Partition
Computation of Taxes
Deadlines of Payments of taxes
THE LEADER IN BOARD EXAM PREPARATION
Close Mortgage
Lien, types of
Encumbrances, types of
Voluntary and Involuntary Encumbrances
Voluntary and Involuntary Alienation of Real Property
Antichresis
Laches
START OF TEST II
1. A development in which a person owns common property is
A. A Cooperative Property
B. A condominium
C. A homestead D. NOTA
2. Which of the following is true?
A. A condominium owner need not pay condominium fees that he feel are too high
B. Condominium units are attached housing units
C. Condominium is an ownership form, not an architectural style
D. Condominium cannot be rented
3. A condominium homeowner‟s association may
a. Require certain owners sell their units
b. Assess fees for the maintenance of common property
c. Practice discrimination d. None of the above
4. Bulk buying under PD 957 is exempted from securing a certificate of registration and license to sell under the following condition
a. Introduction of housing units without altering original plan
b. Introduction of housing units with a a new plan
c. Introduction of socialized housing with a new plan
d. NOTA
5. This type of project is exempted form securing a certificate of registration and license to sell from HLURB
a. Selling of 1 hectare subdivision
b. On site community mortgage project
c. LGU subdivision d. Private subdivision
6. Homeowners associations are under the jurisdiction of the
a. HLURB
b. LGU c. DTI d. SEC
7. The registered owner or developer of the subdivision project may donate the roads and open space of the subdivision project to the city or municipality where it is located on the condition:
a. The project is completed
b. The homeowners allows the donation c. The developer option is to donate to
LGU d. NOTA
8. A buyer of a condominium unit bought a unit payable in 5 years starting January 2007 and then the unit was occupied and poised by the buyer last march 2010. When will the buyer start to be the one to pay for the real estate taxes on his unit
a. April 2010
b. January 2011
c. January 2007 d. January 2010
9. On a Pacto de Retro contract of sale which there is no stipulation of the period to which the vendor shall have right to buy or redeem of the property. The period of redemption shall be ____ years
a. 4
THE LEADER IN BOARD EXAM PREPARATION c. 8
d. NOTA
10.Under RA 8791, the maximum redemption period after extrajudicial foreclosure of a mortgage executed by a corporation in favor of a bank is
a. 1 year b. 6 months
c. 3 months
d. 1 month
11.Under the Rent Control Act of 2005 regulating the rent of residential units, the maximum increase in rental shall not be increased by more than annually as long as the unit is occupied by the same lessee
a. 5% b. 15% c. 20%
d. 10%
12.A provision in a mortgage contract which allows the creditor to immediately
appropriate the property mortgaged in the event the borrower is unable to pay his loan is called
a. Pacto de retro
b. Pactum commisorium
c. Antichresis
d. Pactum de non-aliendo
13.The most common type of foreclosure which a bank undertakes when its borrower fails to pay the principal amount of the loan is referred to as
a. Judicial foreclosure
b. Extra-judicial foreclosure c. Both A and B
d. NOTA
14.In case of extrajudicial foreclosure of the house and lot by the bank the property shall be sold though
a. Pag-Ibig b. The developer
c. Public auction
d. First come first serve
15.Mr. Bino Ang borrowed from the bank to buy a condominium residential unit but failed to pay his loan with the bank Mr. Bino Ang, upon foreclosure of the condominium unit will have a right to redeem the property sold in public auction
a. Within 1 year from the registration of the sale with the ROD
b. Within 3 months from the
registration of the sale with the ROD c. Within 1 year from the date of the
foreclosure d. Any of the above
16.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. HUDCC b. LGU d. SHDA
17.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
18.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. 200 b. 300 d. 400
19.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.
THE LEADER IN BOARD EXAM PREPARATION b. 3.5% d. 5%
20.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. 7.0% b. 9.0% d. 10.0%
21.Area for parks and playground under BP 220, in no case, should not be less than ____sqm.
a. 100 c. 150 b. 300 d. 350
22. Parks and playground is mandatory for BP 220 projects if gross area of subdivision is at least ________ .
a. 5,000 sqm. c. 1 hectare b. 1.5 hectares d. 2 hectares
23.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. 1.5% b. 2.0% d. 2.5%
24.Under economic housing, the minimum right-of-way for major road is ___meters.
a. 6 c. 7
b. 8 d. 10
25.Under economic housing, the maximum right-of-way for major road is ____meters.
a. 10 c. 12 b. 14 d. 15
26.Under economic housing, the minimum right-of-way for minor road is ___meters.
a. 7.0 c. 5.5 b. 6.0 d. 6.5
27.For regular rooms, if without provision for ceiling, the height from finished floor line is ______ meters.
a. 2 c. 2.2
b. 2.5 d. 2.75
28.For BP 220 projects, minimum clear widths for bedroom door should be ______meters.
a. O.60 c. 0.65 b. 0.70 d. 0.75
29.Minimum opening of windows in relation to room floor area
a. O.05% c. 0.15% b. 0.10% d. 0.20%
30.For single attached, concrete firewall should be at least _____ inches thick.
a. 4 c. 6 b. 5 d. 7
31.Price of lot for socialized housing should not exceed ________% of the selling price.
a. 25% c. 30% b. 40% d. 50%
32.For multi-family dwellings and
condominiums, there should be one parking slot for every ____living units.
a. 6 c. 7 b. 5 d. 8
Legal Aspect of Sale, Mortgage and Lease
33.For every contract of sale there must be A. An Offer and acceptance
B. A mortgage loan C. A Broker
D. A Good Consideration
34.If upon receipt of an offer to purchase under certain terms, the seller makes a
counteroffer, the prospective purchaser is A. Bound by his original offer
THE LEADER IN BOARD EXAM PREPARATION 35.Under Truth in Lending, the lender must
advice the borrower of the loan‟s A. Annual Deposit Amount B. Annual percentage rate C. Annual Income Statement D. Annual Financial Statement
36.In the absence of an agreement to the contrary, the mortgage normally having priority will be the one that
A. Is for the greatest amount B. Is the permanent mortgage C. Was recorded first
D. Is the construction loan mortgage
37.Complaints about housing discrimination may be brought
A. To the Director of the HLURB B. Directly to court
C. Either A or B D. Neither A or B
38.Statute of Frauds
A. Requires certain contracts to be in writing to be enforceable
B. Requires a license to operate as broker or salesperson
C. Regulates escrow accounts
D. Regulates the estate owning real estate
39.A lease can state that the rent is to be paid in a. Labor
b. Crops c. Cash
d. Any of the above
40.A mortgaged property can be
a. Sold without the consent of the mortgagee
b. Conveyed by the grantor making a deed to the grantee
c. Both A and B
d. Neither A nor B
41.A contract that gives someone the right but not the obligation to buy at a specified price within a specified time is
a. Contract to sale
b. Option contract
c. Contract of sale d. None of the above
42. Consideration that is of value only to the person who receives it is called
a. Good consideration
b. Near consideration c. Valuable consideration d. No consideration
43. The transfer, by a tenant, of certain rights and obligations of an existing lease to another tenant is called
a. Assignment of lease b. A release
c. Subleasing
d. Eviction
44. A “contract for deed” is also known as a. An installment land sales contract b. A land contract
c. Both A and B
d. Neither a nor B
45. An estoppel certificate is required when the
a. Mortgage is sold to an investor
b. Property is sold
c. Property is being foreclosed d. Mortgage is assumed
46. An owner who seeks a mortgage loan and offers three properties as security will give
a. Blanket mortgage
b. A conventional mortgage c. A chattel mortgage d. PAG-IBIG mortgage
47. A contract that has no force or effect is said to be
a. Voidable
b. Void
c. Avoided
d. None of the above
THE LEADER IN BOARD EXAM PREPARATION a. The signature of the wife of a
married seller
b. An earnest money deposit
c. Competent parties
d. Witnesses
49. The requirement that all parties to a contract have an understanding of the conditions and stipulations of the agreement is
a. Consenting realty b. Proper offer
c. Good and valuable consideration
d. Mutual agreement
50. A mortgage held by the seller of the mortgaged property is
a. A purchase money mortgage
b. A satisfaction piece c. A lien dependent d. A joint tenancy
51. A person may void a contract if it
a. Was entered under duress
b. Was entered into with a minor c. Turned out to be a bad deal d. Turned out to be a headache
52.Which of the following real estate contracts can be unilateral?
a. Lease
b. Contract of sale c. Mortgage
d. None of the above
53. Which of the following has no warranty a. Executor‟s deed
b. Quitclaim deed
c. General warranty deed d. Trustee‟s deed
54. When a property is foreclosed, which claim takes first priority?
a. Tax lien
b. First mortgage c. Second mortgage d. Mechanic‟s lien
55. Which of the following is a specific lien? a. Judgement
b. Mechanic
c. Lease
d. None of the above
56. A worker who is not paid for work that improve real estate may file a
a. Suit for quiet title b. Lis pendens
c. Mechanic‟s lien
d. Satisfaction piece
57. In a lease contract, the tenant is the
a. Lessee
b. Lessor c. Leasee d. Leasor
58. A lease that requires a tenant to pay operating expenses of the property is a ___ lease
a. Gross b. Flat
c. Net
d. Step
59. The mortgagor‟s right to reestablish ownership after foreclosure is called
a. Acceleration b. Resatisfaction right
c. Equity of redemption
d. Redemption provenance
60. If a borrower defaults on the payments to a mortgage loan, which clause allows the lender to demand immediate payment I full of the entire remaining loan balance?
a. Defeasance b. Subrogation c. Acceleration d. Due-on-sale
61. In the covenant of “SEIZIN” the a. Mortgagee states that he is
foreclosing
THE LEADER IN BOARD EXAM PREPARATION
c. Grantor states that she owns the estate being transferred
d. Lessee states that he is being evicted
62. If the consideration has value only to the person receiving it, it is
a. Personal consideration
b. Good consideration
c. Valuable consideration
d. Good and valuable consideration
63. A lease that spell out specific increases in rent during the term of the lease is
a. Reappraisal b. Net
c. Step
d. Percentage
64. A clause in a percentage lease that allows the lessor to cancel the lease if the lessee‟s revenue are not at least a minimum amount is a ____ clause
a. Non performance b. Net
c. Defeasance
d. Recapture
65. In a mortgage, the contract specifies payments of Php2,000 per month, and a final payment of Php220,000 at the end of 10 years. The final payment is called
a. Escalator b. Amortization
c. Balloon
d. Parachute
66. The process in which real estate is sold to pay debts or claims is known as
a. Lien
b. Foreclosure
c. Covenant d. Defeasance
67. Landlord‟s right to use a property upon the expiration of lease
a. Remainder interest b. Reversionary interest
c. Self interest d. Vested interest
68. A minor may be bound by the courts to contracts for
a. Personalty only b. Realty only c. Rent only
d. Necessaries only
Documentation and Registration
69. A recorded instrument that concerns ownership rights to realty
a. Gives constructive notice b. Notifies the public of the claims
made in it
c. Must be notarized or acknowledge
d. All of the above
70. Joe acquires a fee simple estate to land belonging to Nest because Joe used and occupied the land openly for a period of time, unmolested by Nest. This is
a. Easement in gross
b. Adverse possession
c. Estoppel d. Subrogation
71. A person who has another‟s power of attorney is called a/an
a. Agent in place b. Real estate broker c. Lawyer
d. Attorney-in-fact
72. Zach dies without a will. According to the laws of the estate, Zelda receives title to Zach‟s real estate. Zelda has received
a. Title by descent
b. Clouded title c. Easement title d. Legacy title
73. A deed is recorded
THE LEADER IN BOARD EXAM PREPARATION b. To insure title
c. To satisfy the law d. To avoid extra taxes
74. The clause that defines or limits the quantity of estate granted in a deed is the
a. Habendum
b. Premises c. Addendum d. Consideration
75. When a party to a contract unintentionally misleads the other party into agreeing to the contract, this action is an example of
a. Fraud
b. Misrepresentation
c. Duress d. Defeasance
76. A contract of sale of real estate must be signed by
a. Buyer only
b. Broker, buyer and seller
c. Buyer and seller
d. Broker only
77. The seller of real estate takes a note secured by a mortgage on the real estate as partial payment. The mortgage is
a. Sale financed
b. Purchase-money mortgage
c. Secondary mortgage d. First lien
78. Which of the following can adequately describe the consideration in a deed?
a. For ten thousand and other valuable consideration
b. For natural love and affection c. The actual amount of consideration
paid
d. All of the above
79. If a person is married she should state her marital status as married and also indicate the name of her husband in site of real property. The law that provides this requirement is referred to as
a. PD 1520
b. PD 1529
c. PD 2915 d. PD 2015
80. A parcel of land was sold by corporation to the buyer, in case of a corporation, it is required that the person who will sign the deed of absolute sale must be
a. The President b. The Chairman c. The Treasurer
d. The person authorized by a board resolution
81. This law governs the titling and other transfers of title and encumbrances and other incidents of involving the transfer certificate of title and is referred to as Presidential Decree No.1529 is called
a. Property Registration Decree
b. Registration of Property Decree c. Land Registration Decree d. Land Registration Authority
82. The registration of a deed of absolute is done with the Register of Deeds. Under what government agency is the Register of Deeds under and reporting to
a. LRA
b. DOJ c. BIR d. DENR
83. Original copies of certificates of title lost or destroyed in the office of the Register of Deeds may be administratively reconstituted provided that the number of certificates of titles lost or damaged should be at lest ten percent (10%) of the total number and provided that the number of certificates of titles lost or damaged is not less than
a. 100 b. 200
c. 500
d. 600
THE LEADER IN BOARD EXAM PREPARATION annotation of Sect 4 Rules of Court which
provides the heirs who were not included in the settlement may claim within a period of_____________.
a. 2 years from the date of registration
b. 1 year from the date of registration c. 2 years from the date of notarization d. 2 years from the date of settlement
85. The adverse claim which has been annotated at the back of the title has a validity period of
a. 15 days
b. 30 days
c. 45 days d. 60 days
86. When the register of deeds is in doubt as to what proper action to take regarding a deed of absolute sale presented for
registration, he may bring the question to the Land Registration Authority by means of
a. Consulta
b. Revalida c. Lis pendens d. Complaint
TEST III - PROFESSIONAL PRACTICE
Covered Topics
Real estate brokerage practice real estate finance and economics urban and land use planning zoning of properties
basic principle of ecology
Basic appraisal for real estate brokers
Key Concepts
Real Estate Brokerage
OPLAN-SME
SPELL-J
Types of Authority to sell
Listings
Types of Agency
Hold-over clause
Exempted from RESA
Responsibility of brokers to client and etc.
What must be put in the ads of brokers
Full Disclosure
Good Faith
Fiduciary Relationship
Broker-Salesman Relationship
Real Estate Finance and Economics
Computation of Commission
Principles of Substitution
Anticipation
HABU
Progression
Regression
Homogeneity
Demand and Supply
Diminishing Return
Increasing Return
Rural and Urban land use Planning/zoning
CLUP
Classification of land of Public Domain
Inalienable lands
Alienable lands
Zoning Ordinance
Conforming Use
Non-Conforming Use
Allowable Use
Metes and Bounds
Mercator
Demography
Topography
Cartography
Colors of each Zones
Reclassification vs. convertion
Max. power of lgu to reclassify
Signatories of conversion
BASIC PRINCIPLES OF ECOLOGY
THE LEADER IN BOARD EXAM PREPARATION
Primary Consumer
Secondary Consumer
Predator/Prey
Herbivore/omnivore/carnivore
Photosynthesis
EIA
ECC
Laws on environment
Green house effect
Green house gases
Intro. To Appraisal
Market value
Appraise value
Value in exchange
Loanable value
Value in use
Insurance value
Cost, price, and value
Determinants of value
Factors that affects value
3 approaches to value
Cost approach
Principle of substitution
Reproduction and replacement cost
Income approach
Principle of anticipation
Sales comparison approach
START OF TEST III
BROKERAGE PRACTICE
1. A broker who makes profitable investments with earnest money deposits
A. Must share half of the profits with the owners of the money he used
B. Has done something illegal
C. May keep all the profits
D. Must turn over all the profits to the owners of the money he used
2. A real estate broker must comply with A. Agency law
B. The RESA law
C. Both A and B
D. Neither A nor B
3. Ernest makes an offer on Jose‟s property and states that the offer will remain open for 3 days. The day after Ernest made the offer, he decides to withdraw it since Jose has neither rejected nor accepted it
A. Ernest cannot do this
B. Ernest can do this only if Jose was planning to reject the offer anyway C. Ernest must give Jose at least half the
remaining time to make a decision
D. Ernest may withdraw the offer
4. In order to sell property belonging to a trust for which Joseph is trustee, the trustee must have
A. A broker‟s license B. A salesperson‟s license C. A Trustor‟s license
D. NOTA
5. License law forbids EXCEPT
A. Soliciting for listings before one is licensed
B. Collecting a commission from more than one party to a transaction
C. Showing property to other licensees
D. The purchase by a broke of property that he/she has listed
6. A REALTOR
A. Is a registered trademark
B. Is anyone who has a real estate license C. Refers to anyone who sells real estate D. Is a company that sells real estate
7. A real estate broker can lose his/he license for which of the following
A. Using money received as commission to pay office help
B. Representing the buyer in a transaction C. Refusing a listing offered to him/her
THE LEADER IN BOARD EXAM PREPARATION 8. Ana, the owner of a property, signs a listing
that guarantees the listing broker a
commission payment if the sale is affected by any licensed broker. This is
A. An open listing
B. An exclusive agency listing
C. An exclusive right to sell listing
D. Net listing
9. In an agency relationship, the employer is called the
a. Seller b. Buyer
c. Principal
d. Broker
10.Real estate licenses, once received are a. Valid indefinitely
b. Inheritable c. Transferrable
d. Valid for a limited period only
11. In an exclusive right-to-sell listing
a. Only one broker is authorize to act as the seller‟s agent
b. If the seller finds the buyer, the seller still must pay the broker his
commission
c. Both A and B
d. Neither A nor B
12. To prove that the broker is entitled to a commission
a. He is a licensed broker
b. The price is a fair one
c. All liens on the property has been settled
d. All of the above
13.The broker is entitled to a commission EXCEPT
a. He has authority to sell b. He is the procuring cause c. The transaction is sold after the
period of authority with holdover clause
d. There is perfection of sale
14. A broker receives two offers on the same property at the same time. She should
a. Submit both offers to the seller
b. Submit the better offer and improve the other offer
c. Submit the better offer and reject the othe one
d. Reject both offers
15. Since the broker is the seller‟s agent, he may
a. Accept an offer on behalf of the seller
b. Solicit offers for the seller‟s listed property
c. Try to negotiate better terms before submitting an offer
d. Work to get the buyer the best possible price
16.Real estate commission payments
a. Must be divided equally among all participating brokers
b. Must be paid directly to the salesperson
c. Must be divided equally between broker and salesperson
d. NOTA
17.A relationship in which the Agent is place in a position of trust and confidence to the Principal
a. Trustee
b. Fiduciary
c. Full disclosure d. NOTA
18.The fiduciary relationship between the Subagent and the Agent
a. Fiduciary b. Full disclosure
c. Broker – salesperson relation
THE LEADER IN BOARD EXAM PREPARATION 19.Termination of agency agreement can be
done by any of the following EXCEPT a. Fulfillment of agreement
b. Expiration
c. Mutual agreement
d. Breach by one of the parties e. By operation of law(Bankruptcy of
Principal)
f. Property destruction or condemnation g. Death or incapacity of either party
h. Tearing of the contract
20. The following are the duties of the agent to the principal EXCEPT
a. Loyalty b. Obedience c. Accounting d. Disclosure e. Skill
f. Bravery
Real Estate Finance and Economics
21. A salesperson receives 60% of the total commission on a sale for Php315,000. The salesperson receivedPhp15,120. What was the rate of the commission?
a. 4.8% b. 6% c. 6 ¾%
d. 8%
22.the rate of return by an investor which does not include allowance for capital recovery is
a. cash flow
b. interest rate
c. recapture rate d. block rate
23.Situation when there are plenty of buyers and less sellers.
a) Buyer‟s Market b) Open market
c) Seller‟s Market
d) Flea market
24.A case in which there are plenty of properties for sale with few buyers.
a. Seller‟s Market b. Rental market c. Lessor‟s Market d. Buyer‟s Market
25.Ms. SY hired the services of a broker to sell her property. She said she bought it at Php 6,300,000.00 and wants a 30% gross profit. If you were the broker, at how much would you sell the property? If you will be paid a 5% commission, how much shall be added to the selling price that the 30% profit of Ms. SY will not be affected?
a. Php.7,190,000.00 + Php.359,500.00 = Php7,549,500.00
b. Php.8,290,000.00 + Php.414,500.00 = Php.7,604,500.00
c. Php.8,190,000.00 + Php.409,500.00 = Php.8,599,500.00
d. Php.8,390,000.00 + Php.419,500.00 + Php.3,500,000.00
26.Mr. Johnny brought a 2 hectares raw land at P50 per square meter. If cost of money is compounded 100% every 5 years, what will be his cost per square meters after 25 years? What will his gross profit per square meter if he sells the land at P1,900 per square meter after 25 years?
a. P 250 / sq m c. P 350 / sq m b. P 300 / sq m d. P 375 / sq
THE LEADER IN BOARD EXAM PREPARATION obligation on which the monthly obligations is
based?
a. P 4,000,000 c. P 4,150,000 b. P 4,250,000 d. P 4,200,00
Solution : P 108,200.00 0.02705
= P 4,000,000
28.Mr. Juan de la 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 30% of the contract price, compute for contract price .
a. P 5,700,000 c. P 5,714,285.71 b. P 5,750,000 d. P 5,702,288.88
29.Mr. Juan de la 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 30% of the contract price, compute the down payment.
a. P 1,815,000 c. P 1,714,285.71 b. P 1,700, 286.72 d. P 1, 19, 287.75
30.The rate of return earned by an investor which does not include allowance for capital recovery is:
a. Discount rate c. Recapture rate b. Interest rate d. Investment rate
31.At 18% interest per annum, how much is the interest of P500, 000.00 for 65 days?
a. P15,000.00 c. P16,250.00 b. P16,027.70 d. P90,000.00
32.The listing and selling brokers in real estate transactions 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 c. P800,000.00 b. P600,000.00 d. P1,200,000.00
Sol:36k x 2=72k / .06=
33.The type of loan wherein the lender has partial 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 c. Turn-key-loan b. Flat loan d. Amortizing loan
34.The sellers realize 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 c. P1,500,000.00 b. P1,650,000.00 d. P1,350,000.00
35.The owner wants net proceeds of
P1,750,000.00 exclusive of capital gains tax, documentary stamp tax and 5% broker‟s commission. How much would be the selling price so that the broker can maintain his 5% commission?
a. P1,968,750.00 c. P2,000,000.00 b. P1,980,000.00 d. P2,200,000.00
36.The use of borrowed funds to increase purchasing power is ideally to increase the profitability of an investment and is termed :
a. Limited Liability b. Leverage
c. Debt Coverage d. Interim Financing
37.How much is the 5% commission of the broker net of 10% creditable withholding tax if he sold a subdivision lot valued at P3, 300,000.00 inclusive of VAT?
