Real Estate Broker Licensure Examination
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,
I salute you all.
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. Hitchcock
In Memoriam
Erning & Lita Carpio Dhel Ali
All Graduates from the University of Hard Knocks
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
…………………………………………………………………….. TEST 3
……………………………………………………………………..
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. Evaluation questions demands thorough understanding of the theory and use the theory in the decision process and pronouncing judgment on issues. E.g. Is the Government making the right policies with regards to informal settlers?
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
MODE
DIFFICULT TOTAL REAL ESTATE SERVICE
EASY
RATE
(Weight) 100 ITEMS / 25% WEIGHT / 8:00-10:00 am
Kno. Com. App. Ana. Syn. Eva.
1. Named describe apply and analyze the Fundamentals of
property ownership (6.25%)
2. Recall explain and practice and categorize the Code of
25 ethics and responsibilities of real estate practitioners
3. State, translate/discuss, interpret and examine the legal
requirements for real estate service (6.25%)
4. List identify use and classify real estate laws and
25 taxation
5 5 10 5 (6.25%) TOTAL NUMBER OF ITEMS
TEST 2 SPECIAL AND TECHNICAL
MODE
DIFFICULT TOTAL KNOWLEDGE
EASY
RATE
(Weight) 100 ITEMS / 25% WEIGHT / 11:00-1:00pm
Kno. Com. App. Ana. Syn. Eva.
1. Recall estimate illustrate outline /design the special and 5 5 10 5 25 technical knowledge on subdivision development
(6.25%) 2. State describe prepare differentiate condominium
25 concepts and other types of real estate holdings
5 5 10 5 (6.25%) 3. List explain illustrate analyze the legal aspect of sales
mortgage and lease (6.25%)
4. Record translate/locate schedule/prepare and examine the
documentation and registration of transaction (6.25%) TOTAL NUMBER OF ITEMS
TEST 3 PROFESSIONAL PRACTICE
MODE
DIFFICULT TOTAL 200 ITEMS / 50% WEIGHT / 2:00-6:00PM
EASY
RATE
(Weight) Kno. Com. App. Ana. Syn. Eva.
1. Name discuss apply and appraise the Real estate 33 brokerage practice
7 7 14 5 (8%) 2. Recall describe compute /illustrate calculate real estate
finance and economics (8%) 3. State discuss illustrate differentiate urban and land use
4. Recognize locate identify prepare and examine the
7 7 14 5 33 planning development and zoning of properties
(8%) 5. State translate interpret and analyze the basic principle of
33 ecology
7 7 14 5 (8%) 6. Recall explain use analyze the Basic appraisal for real
estate brokers (8%)
7. OTHERS
TEST 1 GENERAL / FUNDAMENTALS OF
Naked ownership
REAL ESTATE SERVICE 100 ITEMS
Fee simple
COVERED TOPICS:
Lease fee and lease hold
1. Fundamentals of property ownership Property regime of husband and wife
2. Code of ethics and responsibilities of real Effectivity of the family code estate practitioners When can a foreigner acquires real estate in
3. legal requirements for real estate service
the Phil.?
4. real estate laws Limitation of land area by former Filipinos
5. taxation
Lease of public land by foreigners
Lease of private land by foreigners
How is your Prep? Check your stock knowledge
Jus soli and jus sanguine
by defining these key concepts.
Capital property
*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
Paraphernal property
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
Patrimonial property
Corporate ownership of Filipino & alien
tick box before it for you to mark what you know or don’t
Adverse claim & elements – O.C.E.A.N. Prescription period of adverse claim
know.
Fundamental of Property Ownership
Classification of Lands of Public Domain Classification of Lands based on Tax
Regalian doctrine
Assessment
Stewardship Principle Inalienable land of Public Domain Powers of the State
Alienable and Disposable Land Eminent domain vs. Expropriation
Bundle of rights
Code of Ethics
Land, real estate, real property
Fixture – always real property
The Golden Rule
Trade fixture – always personal property Fiduciary Relationship Personal and real property
Full Disclosure
Private and public restriction of ownership
Good Faith
Alluvium, avulsion, accretion
Escrow Account
Accession
Statute of Fraud
Unearned increment Relationship of Broker and Salesperson Dominant and servient state
Duties to Public, Profession, Gov‟t, etc. Easement in Gross
Easement Appurtenance
Legal Requirements (RESA)
encroachment Escheat
AIPO, Philres and its president R.G.V.
PRBRES and its chairman E.G.O. Sole Ownership/ Fee Simple
Kind of Ownership
PRC and its chairman
Joint Tenancy
Effectivity of Resa
Tenancy in Common Section 20. How many units Tenancy by Entirety
Usufruct Real Estate Laws
PD 957
4. Real Property is defined as BP220
a. Real estate owned by someone PD 1216
b. Land and all the improvements R.A. 6552
c. Land plus title
UDHA d. Real estate and the bundle of rights R.A. 7160
5. Which of the following is not realty
a. Fee simple estate
Taxation
E-vat b. Leasehold for indefinite duration
c. Lumber
Capital Gains Tax and Ordinary Tax
d. Life estate
Estate Tax Donor Tax
6. An easement in gross
CGT, DST and thier deadlines
a. Covers an entire property and all CGT exemptions
parts of it
Capital asset
b. Extends to one person only Ordinary asset and their percentages
c. Extends to the general public Zonal value
d. Occurs when the public has used Assess value
private land.
Maximum donor tax
Bases of Assessment (RPT)
7. If government takes private property it must How to compute RPT
a. Make just compensation Schedule Revision of SMV
b. Require the property for public use
c. Both A and B
d. Neither A nor B
Start of Test 1
Tenancy in severalty refers to 8. An item of personalty that is affixed to
A. Ownership by a married couple realty so as to be used as a part of it is
B. Ownership of one person
a. Trade Fixture
C. Ownership by blood relationship
b. Chattel
D. Ownership by unrelated people c. Personal property
2. Eminent domain is
d. Fixture
A. The right of the government to take private property for public use
9. The right of the state to take title to real
B. The power of the government to take estate for which no legal owner can be found private property for future use
is called
C. The ancient form of ownership not a. Police power
b. Tenancy
common today
c. Eminent domain government property for housing
D. The right of the people to take
d. Escheat
3. Real Estate is defined as
10. Which of the following has the right of
a. Land and building survivorship?
b. Land and all permanent attachments to it
a. Joint tenant
c. Land and everything growing on it
b. Tenancy in severalty
d. Land only
c. Tenancy in common
d. Life tenant
11. Escheat is
a. Tenant in severalty
a. The right to cross someone else‟s
b. Life tenant
land to get to the road
c. Tenant in common
b. A variety of fraud exclusive to real
d. Joint tenant
estate
c. The right to inherit if there is no will
18. Which of the following is a realty?
d. None of the above
a. 1 year lease
b. An equitable tittle
c. A land contract
d. A life estate
12. The largest “bundle of rights” to real estate is a ______ estate
Code of Ethics and Responsibilities
a. Leasehold
b. Fee simple
19. A broker must keep all earnest money
c. Life
deposits in
d. Homestead
A. Her office safe
B. Her business checking account
C. An escrow or trust account “improvement‟ to land?
13. Which of the following is an
D. A savings account of her business
a. Rezoning
b. Driveway
20. What is the golden rule?
c. Orchard
a. Treat others as you want others to
d. All of the above
treat you
b. Do unto others what you do not want
14. Which one of the following is NOT a test of others to do unto you
a fixture?
c. Do not do unto others what you want
a. Manner of attachment others to do unto you
b. Intent of the person who put it
d. Treat others as you want them to be
c. Time of attachment
treated
d. Custom in the community Legal Requirements for Real Estate Service (RESA)
21. A broker‟s license is suspended for six (6) remainderman has
15. As long as the life tenant is alive, the
months. The broker‟s salespersons
a. An easement in gross
a. Also lose their licenses for 6 months
b. Reversionary interest
b. May continue to operate the broker‟s
c. Fee simple estate
business
d. Renewing leasehold estate
c. May upon proper application, transfer their licenses to another
16. Which of the following is a nonfreehold
broker
estate?
d. Must place their licenses on inactive
a. Fee simple estate status for 6 months
b. Leasehold estate
22. The Real Estate service of the Phils governs
c. Life estate the following service practitioners,
d. Qualified fee simple
EXCEPT:
a. Broker
17. A person who owns an undivided interest in
b. Appraiser
real estate with at least one other person
c. Assessor
without the right of survivorship is called
d. Consultant d. Consultant
28. Upon application and payment of the required fees for the approval of the
23. Under the RESA, there must be one broker commission the board may issue a special for every
/temporary permit to a real estate service
a. 100 practitioner from the foreign countries,
b. 20 whose services are urgently needed in the
c. 50 absence or an unavailability of local real
d. 25 estate service practitioners provided that
a. There is reciprocity between his country and the Philippines
b. There is the need of the developer board of real estate service, hereinafter
24. There is created a professional regulatory
for foreign practitioners referred to as the Board under the
c. The foreigner are more expert supervision and administrative control of the
d. NOTA
a. DTI
b. DOLE
29. The real estate broker shall in a addition to
c. DOF the oath refer to the preceding section be
d. DOJ required to post a professional indemnity insurance or cash or surety bond in an
25. Any violation of RA 9646 of the IRRR amount to be determined by the board which committed by a licensed real estate
in no case shall less than appraiser, shall be meted the penalty of a
a. 10 thousand
fine of not lower than.
b. 20 thousand
a. 100,000
c. 40 thousand
b. 200,000
d. 15 thousand
c. 10,000
30. Within ____________ days from the
d. 20,000 effectivity of R.A. #9646, the DTI-BTRCP shall transfer all pertinent records,
26. The real estate service practitioner shall be documents and other materials to PRBRES. required to indicate on the documents he/she
a) 30 days b) 45 days signs, uses or issues connections with the
c) 60 days d) 90 days practice of his or her professional the following , except
31. The ______________ of the commission
a. License number shall act as prosecutors against illegal
b. PTR practitioners and other violators of R.A.#
c. APO
9646 and its IRR.
d. CTC
a) Chairperson
b) Lawyers
c) Secretary of PRBRES applicants for the real estate brokers a
27. In the licensure examination for the
d) Members
subject for examination common to all real estate service practice is
32. The CPE Council Chairperson should
a. Human and physical geography come from the ______________.
b. GIS
a) PRBRES Board
c. Real estate finance and economics
b) AIPO
d. Brokerage Practice
c) Academe
d) Realty Service Organization
38. The policies resolutions and rules and in business of real estate service unless it is
33. No partnership or corporation shall engage
regulations issued by the PRBRES shall be duly registered with the _______________.
subject to the review & approval by the
a) PRC
a) Secretary of Professional Regulatory
b) Professional Regulations Commission
d) Realty Service Council
c) Office of the President
d) Bureau of Local Government Finance
34. Under RA 9646 Section 20. Registration Without Examination, if someone passed in
39. Is the CHAIRPERSON of PRC the 2007 Licensure exam of the then DTI
a) Ernest Carpio
and have failed to get a license, how many
b) Teresita Manzala
CPE credits units are needed to earn for
c) Sultan Yusuf Ali Carpio al Hajj him/her to register with PRC?
d) None of the above
a)
15 credit units b)
40. The 4 yr. course required for real estate c)
18 credit units
24 credit units service practitioners is ________________.
d) 120 credit uniTS
a) BS REM b) BS BAC
c) Assocciate in RES
d) BS Property Management for registered and licensed professional with baccalaureate degrees like Real Estate
35. 13. How many CPE credit units are required
41. 29. All CPE sessions shall be conducted by Service Practitioners for renewal of their
PRC accredited ______________ providers. license for the next three years.
a) AIPO b) Academic a)
24 Credit Units
c) CPE d) Review
b)
42. The Senate President who signed R.A. c)
30 Credit Units
60 Credit Units
#9646 is
d)
45 Credit Units
a) Manuel Villar Jr. b) Franklin Drilon c) Aquilino Pimentel Jr. d) Juan Ponce Enrile
36. Within _______________ years from effectivity of the Act, all existing and new
43. The speaker of the house who signed R.A. positions in the national and local
#9646 is
governments shall be filled only by
a) Jose de Venecia Jr.
registered and licensed real estate service
b) Prospero Nograles
practitioners.
c) Joseph Carpio
a) one (1) year
d) Feliciano Belmonte Jr.
b) two (2) years
c) three (3) years
44. The color of PRBRES Official Seal that
d) five (5) years represents ethical standards and prosperity.
a) Blue b) White c) Gold d) Silver
37. During what congress was the Republic Act 9646 enacted into law.
Real Estate Laws and Taxation
a) 13th Congress b) 14th Congress
c) 15th Congress d) 16th Congress
45. Which of the following is (are) ALWAYS exempt from real property taxes?
A. Income producing property owned by a
church
B. Government-owned property
50. Although the capital gains tax was paid by
C. Private, for profit school the seller on time, the seller forgot to pay the
D. Property owned by a private person but documentary stamp tax on time and after its rented to a foundation
due date. If the owner will be charged interest on the late payment of documentary
46. An ad valorem tax is based on stamp tax how much interest per annum will
a. Size and or weight of article taxed
be charged
b. Value of article taxed
a. 10%
c. Taxpayer‟s income
b. 15%
d. Sale price of article taxed
c. 20%
d. 25%
47. In determining the value of the improvements the BIR regulations provide
51. A multinational corporation engaged in the that the value of the latest tax declaration is
manufacture of steel bars owned a parcel of more than 3 years old the seller must
land in a residential subdivision which it therefore get a
bought as an investment and now is selling it
a. Certificate of no improvement as a price of P5,000,000 with the buyer to
b. Certification from Assessor that the pay for the documentary stamp tax. What tax is still the latest
will be the rate of rate of tax that the
c. Certificate from the building office corporation shall pay for the tax on the sale that the building is old
of the property.
d. NOTA
a. 6%
b. 5%
48. Mr and Mrs. Saduc sold their condominium
c. 7%
until which is being leased out to a tenant as
d. 3%
part of their leasing business with the execution of the sale last February 1, 2008
52. To be exempted from capital gains tax on though the deed of sale was only notarized
the sale of your principal residence to the next day February 2, 2008. When is the
purchase another residence you must inform deadline to pay the creditable withholding
the BIR within how many days of your tax for the sale of the property.
intention to avail of the tax exemption.
a. February 28, 2008
a. 12 months
b. March 2, 2009
b. 18 months
c. March 10, 2008
c. 24 months
d. March 5, 2008
d. 36 months
53. In order to avail of the exemption from sale of the owner which was duly notarized
49. The real estate broker was processing the
capital gains tax in the sale of your principal on April 5, 2009 but he failed to file and pay
residence, it is one of the first requirements the capital gains on its due date. How much
impose by the BIR to qualify for exemption. will be the surcharge penalty the owner will
The property must be your residence for
be charged for late payment.
a. 20 years
a. 10%
b. 15 years
b. 15%
c. 10 years
c. 20%
d. 5 years
d. 25%
54. What additional document must be executed by the seller with the BIR in order to avail of 54. What additional document must be executed by the seller with the BIR in order to avail of
d. 7%
of your principal residence.
a. Earnest money agreement
59. The BIR examiner, in case of the sale of a
b. Option money agreement person of a house and lot considered as
c. Bank agreement ordinary asset, must first determine the
d. Escrow agreement 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
55. In addition to the capital gains tax the seller
tax payments
must also pay this tax to the BIR , unless the
c. Whether the person is habitually buyer will be the one to pay as per
engaged in real estate business or not agreement and based on the selling price or
d. NOTA
zonal value or assessors value, whichever is higher.
60. A tenant lease a condominium unit from the
a. Transfer tax owner for a period of one year and use the
b. Real property tax same as his office. How much creditable
c. Documentary stamp tax withholding tax must the tenant deduct and
d. Community tax
pay to the BIR.
a. 3%
56. After the filing and payment of capital gains
b. 5%
tax on the sale of the house and lot, the BIR
c. 6%
will issue to the seller the following
61. A developer of a residential subdivision
b. CAR must pay the creditable withholding tax
c. CAT within how many days after the end of the
d. CTR
month of the sale.
a. 10 days
57. A bank sold a 3 storey building for
b. 15 days
P20,000,000 which it foreclosed from the
c. 20 days
owner. The bank shall be liable to pay the
d. 5 days
following tax on the sale.
62. A married couple who were both licensed
a. Ordinary tax real estate brokers and engaged actively in
b. Capital Gains tax real estate brokerage shall be both liable to
c. Income tax the payment of value added tax on their
d. eVAT commissions earned when the total commission exceeds
58. A DEVELOPER OF A RESIDENTIAL
a. 1 million
CONDOMINIUM PROJECT IN Taguig
b. 1.5 million
City sold a condominium unit for the price
c. 2 million
of P1.8 million pesos what will be the rate of
d. 2.5 million
tax that the developer will pay to the BIR for
63. Fundamental principles of local taxation of creditable withholding tax
real estate properties located in a city or
a. 3% municipality is the following EXCEPT;
b. 5%
a. Appraised in its current and fair
c. 6%
market value market value
c. 20%
c. Uniform Classification
d. 30%
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
69. For non-payment of real-estate taxes and being delinquent, the city sold the property
65. Although the collection of real property tax of the owner in a public auction. The owner accrues on the first day of the year, the same
however redeem the property within the may be paid without penalty :
period of
a. In quarterly payments at the end of
a. 1 year from the date of the auction each quarter
sale
b. In quarterly payments at the
b. 1 year from the date of the beginning of each quarter
registration in the ROD
c. In monthly payments at the end of
c. 1 year from the date of notarization each month
d. 1 year from the date of the deed of
d. In monthly payments at the
sale
beginning of each month
70. The following composed the Board of
66. The penalty for non-payment of the special Assessment Appeals in the City of Manila education fund tax on its due date is :
except.
a. 1% per annum
a. City / Provincial Register of deeds
b. 2% per annum
b. City / Provincial Assessor
c. 3% per annum
c. City/provincial Prosecutor
d. 4% per annum
d. City / Provincial Engineer
71. . In payment of estate tax, an allowed
67. An owner of a parcel of land which had deduction to the gross estate of a decedent in been owned by the owner for more than
funeral expense is:
twenty years will be declared for the first
a. 5% of gross estate or P 200,000 time with the municipal assessor and the
whichever is higher
owner shall be subject to taxes for a
b. 10% of gross estate or P 200,000 maximum period of :
whichever is higher
a. 15 years
c. 15% of net sale or P 200,000
b. 20 years
whichever is higher
c. 10 years
d. 10 % of net sale or P 200,000
d. 5 years
whichever is higher
72. The documentary stamps for the Estate tax
68. The city council wanted to help its residents
shall be paid on:
and taxpayers in its municipality and passed
a. After 30 days from notarization an ordinance giving a discount to real
b. 60 days from date of notarization property owners for annual taxes paid, but
c. 0% not applicable should not exceed the rate of ___ discount
d. 1%
a. 5%
73. Maximum allowed for funeral expenses
b. 10% b. 10%
capital gain tax.
b. 10% of gross estate or P 200,000
a. P 63,450
whichever is higher
b. P 64,6000
c. P 64,500 Sol.4.3M x 1.5%= whichever is higher
c. 15% of gross estate or P 200,000
d. P 64,220
d. 20% of gross estate or P 200,000 whichever is higher
78. If VAT is P 720,000, what is the selling
74. The amount of family home equivalent to
price before VAT?
fair market value considered as allowable
a. P5M
deduction from the estate of a decedent.
b. 7M
a. P500,000
c. P6M Sol.720k / 12%
b. P 2,000,000
d. P 8M
c. P1,000,000
d. P50,000
79. A family residential was sold at P 4,500,000. The BIR FMV is P 5,000,000. Then the
75. Mr. Maning Camot sold his property at P owner bought a new residential home worth 5M inclusive of the capital gain tax,
P 3,000,000. What is the capital gain tax on documentary stamp tax, and broker‟s
the unutilized portion ?
commission of 5%. What will be his net
a. P 98,000
proceed after deduction of expenses.
b. P100,000
a. P4,375,000 sol. 5M-12.5%
c. P90,000 Sol. 4.5M
b. P 4,455,000 -3M=1.5Mx6%=
c. P4,875,000
d. 105,000
d. P4,555,000
80. Classification and use of lands exempted
76. Determine the capital gain tax of an 800 from CARP law but not included sqm. lot with a house was sold for P3,500,000 per tax declaration, the market
a. Lands actually, directly and value of the house is P1.5 M and lot is P1.6
exclusively use for prawn farm and M. The zonal of the lot is value of the house
fishpond; lands devoted to raising of is P3, 500.00/sqm. The sale is subject to
livestock‟ poultry or swine capital gain tax. Find basis of Capital Gain
b. Agricultural lands with slope of Tax
18% or more; lands actually, directly and
a. P4,300,000 sol.800x3500=2.8M exclusively used and found necessary for
+1.5M=
parks, wildlife, forest reserves,
b. P 4,150,00 reforestration, fish sanctuaries, breeding
c. P4,200,000 grounds, water shed and mangroves
d. P 4,350,000
c. Lands actually, directly and exclusively
77. Find how much is the documentary stamp used and found necessary for national of an 800 sqm. lot with a house was sold for
defense, school sites, church sites, mosque P3,500,000. per tax declaration, the market
sites, communal burial grounds and penal value of the house is P1.5 M and lot is P1.6
colonies.
M. The zonal of the lot is value of the house M. The zonal of the lot is value of the house
a. Conversion c. Transformation used and found necessary for national
b. Relocation d. Reconversion defense, school sites, cultural movement
sites, mosque sites, communal burial
84. Change from 1 classification or use of land grounds and penal colonies.
property to another
a. Land reclassification c. land expropriation
b. Land conversion d. land re-use order
81. Cases where conversion of agricultural land
cannot be allowed except: Has ruled that all agricultural lands that are
already classified as commercial, industrial
or residential before June 15, 1988 no longer
a. Agricultural land within restricted areas need any conversion clearance even if it is designated under the national Integrated
still devoted to agricultural activity. Protected Areas System ( NIPAS ),
including water shed and recharged areas of
a. Republic Act 6657
acquifier; irrigated lands where water is
b. Ministry Order No. 39 series of 1985 available for rice and other crops production
and all irrigated lands where water is not
c. Republic Act 7279
available but are within areas programmed
d. DOJ Opinion No. 44 SERIES of 1990 for irrigation facility rehabilitation
86. Conversion permit of agricultural land of not
b. Irrigable lands already covered by more than 5 hectares shall be approved by irrigation projects with firm funding
the:
commitment;
a. Municipal Agrarian Reform
b. Regional Agrarian Reform Office
c. Provincial Agrarian Reform facilities operated by private organizations.
c. Agricultural lands within irrigation
d. Usec. For Legal Affairs, DAR
87. Registration of sale of five (5) hectare iirigation facilities and scarce availability of
d. Agricultural lands with destroyed
agricultural land must be accompanied by water.
a. DAR conversion permit
82. An enactment that gives municipalities the
b. DAR clearance
power to reclassify up to 15% of agricultural
c. HLURB license to Sell land not covered by CARL to non-
d. LGU Development Permit agricultural uses if it is deemed by the local
88. Documentary requirement for DAR council ( sanggunian ) to be either no longer
clearance in sale of 5-hectare agricultural sound for agriculture or substantially greater
land except:
value if used for residential ,commercial, or
a. Application for DAR clearance; copy of industrial purposes.
title, lot and vicinity plan
a. Ra 7160
c. 1988 LGU
b. Seller‟s affidavit of non-tenancy or
b. 1989 LGU d. Ra 7155 tenant‟s affidavit of voluntary surrender; seller‟s affidavit that the hectarage he is
83. It is the act of changing current use of land selling is his retention area; buyer‟s affidavit awarded per RA 6657
that the hectarage he is buying, together with that the hectarage he is buying, together with
92. Before a developer can start selling lots or units in a condominium project, it must
c. Municipal assessor‟s certification of FIRST secure from the HLURB seller‟s and buyer‟s extent of landholdings
a. Certificate of registration in the municipality; provincial assessor‟
b. License to sell
certification of seller‟s and buyer‟s extent of
c. Certificate of completion landholding in the province; clearance from
d. Certificate of Conversion National Irrigation Authority
93. The following types of projects are required
d. Seller‟s affidavit of non-tenancy or to obtained a Certificate of Registration and tenant‟s affidavit of voluntary surrender;
License to Sell form HLURB, except: buyer‟s affidavit that the hectarage he is
a. Condominium
sellin g is his retention area; buyer‟s affidavit
b. Subdivision
c. Townhouses
that the hectarage he is buying, together with
d. Office building
his present agricultural landholdings, if any,
does not exceed 5 has.
94. Maximum period that a foreigner may lease
89. Beneficiary of land may not sell, transfer, real estate under the foreign investors lease convey through hereditary succession said
Act is
a. 50 years renewable for 25
land for a period of:
b. 25 renewable for 25 years
a. 5 years c. 10 years
c.
b. 7 years d. 12 years 100 years renewable for 50
d.
NOTA
95. The following is composed of the Board of Law, lands awarded to a tenant beneficiary
90. As provided for by the Agrarian Reform
Assessment Appeals in the City of cannot be subject of a conversion permit
Malaybalay City
within:
a. Within 1 year from grant of emancipation
a. City assessor
patent
b. City engineer
b. Within 2 year from grant of emancipation
c. City council
patent
d. City mayor
c. Within 5 year from grant of emancipation
patent
96. The following composes the local board of
d. Within 10 year from grant of assessment appeals EXCEPT emancipation patent
a. Registrar of deeds
b. City/municipal prosecutor
c. Provincial/city/municipal engineer development of agricultural land into
91. Government required approvals for
d. Assessor
subdivision project except:
a. DAR – conversion permit;
97. The powers of HLURB to approve
b. DENR-ECC; subdivision plans has been devolved to local
c. LGU-development permit & local government pursuant to _____? clearance;
a. RA 7160
c. PD 957
d. LRA /LMB- approval individual
d. EO 71 lots-technical description
b. BP 220
98. The highest policy making body for housing PAG-IBIG AND HMDF under the law is referred to as
HUDCC
a. HUDCC
Open Space
b. HLURB
R.A. 7160
c. NHA
Maceda Law
d. LRA Minimums of BP220 and PD 957 Master Deed / Enabling Deed
Deed of Restriction
99. Evat and non-evat prices
The following government agencies are
attached agencies of the Housing and Urban Legal Aspects and Documentation
Development Coordinating Council
HUDCC, except:
a. Rights of Land Lord/Lease Fee Estate
HLURB
b. NHA Rights of Tenant/Leasehold Estate
c. NHMFC
Kinds of Lease
d. LRA Boarders, Sublease, Assignment of Lease CTC vs. COS
100. Under the governments socialized Elements of a valid Contract housing program, the ceiling amount for
Usufruct
socialized housing has been increased to the
Foreclosure
amount of
Redemption Period
a. 200,000 Equity of Redemption
b. 450,000
Adverse Claim
Mortgage Defeasance Clause
Test II SPECIAL AND TECHNICAL KNOWLEDGE
Automatic Redemption Clause Tacita Reconduccion
Pactum de non-aliendo
COVERED TOPICS:
1. subdivision development Pactum commisorium
2. condominium concepts and other types of
Dacion en Pago
Pacto de Retro
real estate holdings
3. the legal aspect of sales mortgage and lease
Option Contract
4. documentation and registration of
Earnest Money
transaction Consummation and Perfection of Contract Consignation
How is your Prep? Check your stock knowledge
Consulta
by defining these key concepts.
Torrens Title ACT 946 – Land Title act of 1903
Subdivision, Condominiums and other types of
Sec. 4
Real Estate Development
Adjudication
PD 967 Settlement and Partition PD 1216
Computation of Taxes BP 220
Deadlines of Payments of taxes UDHA
Open Mortgage
Close Mortgage
c. Introduction of socialized housing Lien, types of
with a new plan
Encumbrances, types of
d. NOTA
Voluntary and Involuntary Encumbrances Voluntary and Involuntary Alienation of 5. This type of project is exempted form
Real Property securing a certificate of registration and Antichresis license to sell from HLURB
a. Laches Selling of 1 hectare subdivision
b.
On site community mortgage project
c.
LGU subdivision
d.
Private subdivision
START OF TEST II
Homeowners associations are under the jurisdiction of the
1. A development in which a person owns
a.
HLURB
common property is
A Cooperative Property
A condominium
A homestead
D. NOTA
2. The registered owner or developer of the
Which of the following is true? subdivision project may donate the roads
A. A condominium owner need not pay and open space of the subdivision project to
condominium fees that he feel are too the city or municipality where it is located
high
B. Condominium units are attached housing
on the condition:
a.
units The project is completed
b.
C. The homeowners allows the donation
Condominium is an ownership form, not
c.
an architectural style The developer option is to donate to
D. Condominium cannot be rented
3. A condominium homeowner‟s association
A buyer of a condominium unit bought a unit payable in 5 years starting January 2007
may
a. Require certain owners sell their and then the unit was occupied and poised
units by the buyer last march 2010. When will the
b. Assess fees for the maintenance of buyer start to be the one to pay for the real
common property
c. Practice discrimination
estate taxes on his unit
None of the above
Bulk buying under PD 957 is exempted
from securing a certificate of registration
and license to sell under the following On a Pacto de Retro contract of sale which
there is no stipulation of the period to which condition
a. Introduction of housing units without of the property. The period of redemption
the vendor shall have right to buy or redeem
altering original plan
b. Introduction of housing units with a
shall be ____ years
a.
a new plan
b. 10 b. 10
15. Mr. Bino Ang borrowed from the bank to
d. NOTA buy a condominium residential unit but failed to pay his loan with the bank Mr. Bino
10. Under RA 8791, the maximum redemption Ang, upon foreclosure of the condominium period after extrajudicial foreclosure of a
unit will have a right to redeem the property mortgage executed by a corporation in favor
sold in public auction
of a bank is
a. Within 1 year from the registration
a. 1 year of the sale with the ROD
b. 6 months
b. Within 3 months from the
c. 3 months registration of the sale with the ROD
d. 1 month
c. Within 1 year from the date of the
11. Under the Rent Control Act of 2005
foreclosure
regulating the rent of residential units, the
d. Any of the above maximum increase in rental shall not be increased by more than annually as long as
16. Pursuant to Section 3 of BP 220, ________ the unit is occupied by the same lessee
is authorized to establish and promulgate
a. 5% two levels of standards and technical
b. 15% requirements for the development of
c. 20% economic and socialized housing projects.
d. 10%
a. HLURB c. HUDCC
12. A provision in a mortgage contract which
b. LGU
d. SHDA
allows the creditor to immediately appropriate the property mortgaged in the
17. Under BP 220, the basic needs of human event the borrower is unable to pay his loan
settlements in descending order are as is called
follows:
a. Pacto de retro
a. Water, movement and circulation, storm
b. Pactum commisorium drainage, solid and liquid waste disposal
c. Antichresis
b. Water, movement and circulation, storm
d. Pactum de non-aliendo
drainage, power
c. Water, movement and circulation, power,
13. The most common type of foreclosure which
storm drainage
d. Water, power, movement and circulation, pay the principal amount of the loan is
a bank undertakes when its borrower fails to
storm drainage
referred to as
a. Judicial foreclosure
18. Site preservation is one of the requirements
b. Extra-judicial foreclosure of subdivision development under BP 220
c. Both A and B wherein suitable trees with a caliper
d. NOTA diameter of _____ millimeters or more shall
be preserved.
14. In case of extrajudicial foreclosure of the
c. 200 house and lot by the bank the property shall
be sold though
a. Pag-Ibig
19. Under BP 220, the minimum area for land to
b. The developer
be allocated for parks and playground
c. Public auction should be _____% of gross area based on
d. First come first serve 150 lots and below per hectare.
a. 2.5%
c. 3.0%
28. For BP 220 projects, minimum clear widths to be allocated for parks and playground
20. Under BP 220, the maximum area for land
for bedroom door should be ______meters. should be _____% of gross area if number
c. 0.65 of lots per hectare is above 225 lots.
a. O.60
29. Minimum opening of windows in relation to
21. Area for parks and playground under BP
room floor area
c. 0.15% ____sqm.
220, in no case, should not be less than
a. O.05%
30. For single attached, concrete firewall should
be at least _____ inches thick. 220 projects if gross area of subdivision is at
22. Parks and playground is mandatory for BP
c. 6 least ________ .
a. 5,000 sqm.
c. 1 hectare
b. 1.5 hectares
d. 2 hectares
31. Price of lot for socialized housing should not exceed ________% of the selling price.
c. 30% hectare are above 225 lots, the area for
23. Under BP 220 projects, if saleable lots per
a. 25%
d. 50% community facilities should be at least ____% per hectare.
32. For multi-family dwellings and condominiums, there should be one parking
24. Under economic housing, the minimum slot for every ____living units. right-of-way for major road is ___meters.
Legal Aspect of Sale, Mortgage and Lease
25. Under economic housing, the maximum right-of-way for major road is ____meters.
33. For every contract of sale there must be
a. 10
c. 12
A. An Offer and acceptance
B. A mortgage loan
b. 14
d. 15
C. A Broker
D. A Good Consideration right-of-way for minor road is ___meters.
26. Under economic housing, the minimum
34. If upon receipt of an offer to purchase under
certain terms, the seller makes a counteroffer, the prospective purchaser is
27. For regular rooms, if without provision for A. Bound by his original offer
B. Bound to accept the counteroffer ______ meters.
ceiling, the height from finished floor line is
C. Bound by the broker‟s decision
2.2 D. Relieved of his original offer
a. 2 c.
35. Under Truth in Lending, the lender must
b. Option contract
advice the borrower of the loan‟s
c. Contract of sale
A. Annual Deposit Amount
d. None of the above
B. Annual percentage rate
C. Annual Income Statement
42. Consideration that is of value only to the
D. Annual Financial Statement person who receives it is called
a. Good consideration
b. Near consideration contrary, the mortgage normally having
36. In the absence of an agreement to the
c. Valuable consideration priority will be the one that
d. No consideration
A. Is for the greatest amount
B. Is the permanent mortgage
C. Was recorded first
43. The transfer, by a tenant, of certain rights
D. Is the construction loan mortgage and obligations of an existing lease to another tenant is called
a. Assignment of lease may be brought
37. Complaints about housing discrimination
b. A release
A. To the Director of the HLURB
c. Subleasing
B. Directly to court
d. Eviction
C. Either A or B
D. Neither A or B
44. A “contract for deed” is also known as
a. An installment land sales contract
38. Statute of Frauds
b. A land contract
A. Requires certain contracts to be in
c. Both A and B
writing to be enforceable
d. Neither a nor B
B. Requires a license to operate as broker or salesperson
45. An estoppel certificate is required when the
C. Regulates escrow accounts
a. Mortgage is sold to an investor
D. Regulates the estate owning real estate
b. Property is sold
c. Property is being foreclosed
39. A lease can state that the rent is to be paid in
d. Mortgage is assumed
a. Labor
b. Crops
46. An owner who seeks a mortgage loan and
c. Cash offers three properties as security will give
d. Any of the above
a. Blanket mortgage
b. A conventional mortgage
40. A mortgaged property can be
c. A chattel mortgage
a. Sold without the consent of the
d. PAG-IBIG mortgage mortgagee
b. Conveyed by the grantor making a
47. A contract that has no force or effect is said deed to the grantee
to be
c. Both A and B
a. Voidable
d. Neither A nor B
b. Void
c. Avoided
d. None of the above not the obligation to buy at a specified price within a specified time is
41. A contract that gives someone the right but
48. To be enforceable, a sales agreement must
a. Contract to sale
have have
b. Mechanic
married seller
c. Lease
b. An earnest money deposit
d. None of the above
c. Competent parties
d. Witnesses
56. A worker who is not paid for work that
49. The requirement that all parties to a contract improve real estate may file a have an understanding of the conditions and
a. Suit for quiet title stipulations of the agreement is
b. Lis pendens
a. Consenting realty
c. Mechanic‟s lien
b. Proper offer
d. Satisfaction piece
c. Good and valuable consideration
d. Mutual agreement
57. In a lease contract, the tenant is the
50. A mortgage held by the seller of the
a. Lessee
mortgaged property is
b. Lessor
a. A purchase money mortgage
c. Leasee
b. A satisfaction piece
d. Leasor
c. A lien dependent
d. A joint tenancy
58. A lease that requires a tenant to pay operating expenses of the property is a ___
51. A person may void a contract if it
lease
a. Was entered under duress
a. Gross
b. Was entered into with a minor
b. Flat
c. Turned out to be a bad deal
c. Net
d. Turned out to be a headache
d. Step
59. The mortgagor‟s right to reestablish can be unilateral?
52. Which of the following real estate contracts
ownership after foreclosure is called
a. Lease
a. Acceleration
b. Contract of sale
b. Resatisfaction right
c. Mortgage
c. Equity of redemption
d. None of the above
d. Redemption provenance
53. Which of the following has no warranty
60. If a borrower defaults on the payments to a
a. Executor‟s deed mortgage loan, which clause allows the
b. Quitclaim deed lender to demand immediate payment I full
c. General warranty deed of the entire remaining loan balance?
d. Trustee‟s deed
a. Defeasance
b. Subrogation
54. When a property is foreclosed, which claim
c. Acceleration
takes first priority?
d. Due-on-sale
a. Tax lien
b. First mortgage
61. In the covenant of “SEIZIN” the
c. Second mortgage
a. Mortgagee states that he is
d. Mechanic‟s lien
foreclosing
b. Lessor states that the lessee has not
55. Which of the following is a specific lien? abided by the lease contract
a. Judgement a. Judgement
c. Self interest
estate being transferred
d. Vested interest
d. Lessee states that he is being evicted
68. A minor may be bound by the courts to
62. If the consideration has value only to the
contracts for
person receiving it, it is
a. Personalty only
a. Personal consideration
b. Realty only
b. Good consideration
c. Rent only
c. Valuable consideration
d. Necessaries only
d. Good and valuable consideration
63. A lease that spell out specific increases in Documentation and Registration rent during the term of the lease is
a. Reappraisal
69. A recorded instrument that concerns
b. Net ownership rights to realty
c. Step
a. Gives constructive notice
d. Percentage
b. Notifies the public of the claims made in it
c. Must be notarized or acknowledge the lessor to cancel the lease if the lessee‟s
64. A clause in a percentage lease that allows
d. All of the above
revenue are not at least a minimum amount is a ____ clause
70. Joe acquires a fee simple estate to land
a. Non performance belonging to Nest because Joe used and
b. Net occupied the land openly for a period of
c. Defeasance time, unmolested by Nest. This is
d. Recapture
a. Easement in gross
b. Adverse possession
65. In a mortgage, the contract specifies
c. Estoppel
payments of Php2,000 per month, and a
d. Subrogation
final payment of Php220,000 at the end of
10 years. The final payment is called
71. A person who has another‟s power of
a. Escalator
attorney is called a/an
b. Amortization
a. Agent in place
c. Balloon
b. Real estate broker
d. Parachute
c. Lawyer
d. Attorney-in-fact
66. The process in which real estate is sold to pay debts or claims is known as
72. Zach dies without a will. According to the
a. Lien laws of the estate, Zelda receives title to
b. Foreclosure Zach‟s real estate. Zelda has received
c. Covenant
a. Title by descent
d. Defeasance
b. Clouded title
c. Easement title
67. Landlord‟s right to use a property upon the
d. Legacy title
expiration of lease
a. Remainder interest
73. A deed is recorded
b. Reversionary interest
a. To give public notice a. To give public notice
c. PD 2915
c. To satisfy the law
d. PD 2015
d. To avoid extra taxes
80. A parcel of land was sold by corporation to the buyer, in case of a corporation, it is
74. The clause that defines or limits the required that the person who will sign the quantity of estate granted in a deed is the
deed of absolute sale must be
a. Habendum
a. The President
b. Premises
b. The Chairman
c. Addendum
c. The Treasurer
d. Consideration
d. The person authorized by a board resolution