2016 - SET A - Feb. 28, 2016 Flashcards by Jane & Leo Censon

A subdivision scheme where the resulting blocks are more or less rectangular in shape.

a. Open market subdivision
b. Complex subdivision
c. Gridiron subdivision
d. Simple subdivision

c. Gridiron subdivision

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An annotation on the Certificate of Title that refers to the right granted to a property to have access to a public road to an adjoining land covered by the title.

a. Lease
b. Notice of Lis Pendens
c. Mortgage
d. Easement or Right-of-Way

d. Easement or Right-of-Way

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An owner whose land abuts a river.

a. Riparian owner
a. Land sub-surface owner
b. Patrimonial owner
c. Accession owner

a. Riparian owner

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

a. Partial payment
b. Earnest
c. Option
d. Escrow

c. Option

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Registration of a mortgage covering s subdivision project can only be effected when the deed is accompanied by a permit to mortgage issued by –

a. Housing and Land Use Regulatory Board
b. National Home Mortgage Finance Corporation
c. Home Guarantee Corporation
d. National Housing Authority

a. Housing and Land Use Regulatory Board

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What is the minimum CPD credit units required in order to renew your Real Estate Broker’s License?

a. 15 units (new)
b. 20 units
c. 45 units (old)
d. 120 units

c. 15 units (new)

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A method of property appraisal by estimating the fair market value of an improvement by estimating present reproduction cost and deducting depreciation.

a. Reproduction cost approach
b. Basic appraisal approach
c. Income approach
d. Cost approach

d. Cost approach

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Condominium unit owners are mandated to form a –

a. Homeowner’s Social club
b. Condominium corporation
c. Charitable organization
d. Cooperative

b. Condominium corporation

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Registration of a contract of sale in the Registry of Deeds is not an element of sale because –

a. It merely confirms not confer any new right
b. It is a post-operative act to a contract
c. It is dispensable to the contract
d. It is only a revenue generating requirement

a. It merely confirms not confer any new right

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Development permit issued by a local government unit for a subdivision project is valid for –

a. One year
b. Two years
c. Three years
d. Four years

c. Three years

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The survey symbol that represents the subdivision survey by a private geodetic engineer.

a. Psd
b. Pcn
c. Phd
d. Pcs

a. Psd

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To be considered comparable to the subject property, a comparable property must have been sold.

a. Without any form of secondary financing
b. For all cash
c. With a conventional mortgage
d. In an arm’s –length transaction

d. In an arm’s –length transaction

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It is a factor that triggers varied effects in real estate such as business activities, new income opportunities, environment and an enhanced market for construction materials.

a. Foreclosure and consolidation
b. Highest and best use theory
c. Multiplier effect of real estate
d. Forces that create value

c. Multiplier effect of real estate

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A sale cannot be extinguished by –

a. Revocation by the principal of the agency
b. Expiration of the authority
c. Transfer of residence of principal or agent
d. Death, insanity, civil interdiction or insolvency of principal or agent

d. Death, insanity, civil interdiction or insolvency of principal or agent

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Section 6 of Article 1 – Declaration of Principles of the Code of Ethics for Realty Service Practitioners clearly states the Golden Rule which says –

a. “Treat others as you like them to treat you”
b. “Do not do unto others what you want others do to you”
c. “Do unto others the same as what others think they should be treated”
d. “Treat others as you want them to be treated”

a. “Treat others as you like them to treat you”

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Spouses who were married after the effectivity of the Family Code without any pre-nuptial agreement shall be governed by —

a. Partnership
b. Partial community of property
c. Conjugal partnership of gains
d. Absolute community of property

d. Absolute community of property

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A contract which is merely an executor contract or a mere premise to sell with no transfer of ownership.

a. Contract To Sell
b. Deed of Absolute Sale
c. Conditional Contract of Sale
d. Contract of Sale

a. Contract To Sell

Contract To Sell (CTS) – doesn’t automatically transfer ownership, it is a bargaining condition of the contract parties
Contract Of Sale (COS) – ownership is automatically transferred upon its signing or execution.

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Enumerated are the advantages of Condominium Concept. Which does not belong?

a. Enhances affordability
b. With TCT as proof of ownership
c. Easy to maintain
d. Economy in land space

b. With TCT as proof of ownership

TCT or Transfer Certificate of Title is a document that proves ownership of a particular property.

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The difference between contract price and loanable amount is -

a. Acceleration clause
b. Balloon payment
c. Buyer’s equity
d. Amortization

c. Buyer’s equity

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In accordance with RESA Law, a Code of Ethics that will be adopted for observance by all real estate service practitioners shall be prepared by —

a. All existing real estate service organizations
b. Professional Regulation Commission
c. Accredited Integrated Professional Organization
d. Professional Regulatory Board of Real Estate Service

c. Accredited Integrated Professional Organization

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These are the farmers indigenous people that constructed the rice terraces —

a. Kankana-ey, Tinggian, Ibaloi
b. Isnegs, Gaddangs, Ilonggots
c. Bilaan, Tiruray, Tiboli
d. Manobo, Bagobo, Mansaka

a. Kankana-ey, Tinggian, Ibaloi

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It is the group of inhabitants that dominates the highlands.

a. Malays
b. Tingues
c. Negritos
d. Aetas

c. Negritos

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It is the lack of desirability in lay-out and design as compared with a property designed to serve the same function.

a. Functional obsolescence
b. Surplus productivity
c. Equity investment
d. Regression in value

a. Functional obsolescence

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The sale and transfer of title from a real estate dealer to a buyer of a house and lot at P2,000,000 is subject to the following, except:

a. Expanded value-added tax
b. Transfer and registration fees
c. Creditable withholding tax
d. Capital gains tax

d. Capital gains tax

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25. The document that grants authority to any registered owner/developer to sell lots or units within an approved subdivision or condominium project and providing for the duties and responsibilities of said owner/developer: a. Certificate of Registration b. Contract To Sell c. Locational Clearance d. License To Sell

d. License To Sell

26. To assure faithful and honest discharge of duties of a real estate broker’s renewal of his professional license, he is required to secure the following, except: a. Insurance b. Bond c. NBI Clearance d. Police Clearance

a. Insurance

27. A map that shows the location of the property indicating known landmarks such as church, bridge, school, commercial establishments and name of roadways leading to the property. a. Resurvey map b. Lot plan c. Contour map d. Location map

d. Location map

28. Ms. Torre is an accredited broker with Foursquare Development Corp. enjoying a commission of 5%. He sold a house and lot in Antipolo City for P10,000,000.00 with 30% full downpayment. A full downpayment entitles the buyer with 10% discount on the actual amount paid. The buyer requested that his discount be applied to the downpayment. The balance is payable in 5 years, in-house financing at 12% interest. Compute for the net downpayment to be paid by the buyer. a. P2,650,000.00 b. P2,015,000.00 c. P3,000,000.00 d. P2,700,000.00

d. P2,700,000.00 Given: Selling Price = 10,000,000 Downpayment 30% = 3,000,000 (10,000,000 x 30%) 10% Discount applied to Downpayment Solution: Downpayment = 3,000,000 Less:10% Discount (3,000,000). = 300,000 Downpayment to be paid by the buyer = 2,700,000

29. Any of these acts shall be grounds for revocation of license, except: a. Misappropriation b. Misrepresentation c. Non-payment of premium d. Misleading ads

c. Non-payment of premium

30. In case of a complaint filed by a real estate broker against another real estate broker who are members of the same organization, the complainant broker must -- a. File a complaint with the Housing and Land Use Regulatory Board b. File a complaint first with the concerned barangay c. File a complaint and exhaust all remedies within their organization d. File a complaint directly with the Professional Regulation Commission

c. File a complaint and exhaust all remedies within their organization

31. The added value inherent on a lot bounded by two streets. a. Social value b. Plottage value c. Cooperate interest d. Corner influence

d. Corner influence

32. A change from one classification or use of land property to another -- a. Land conversion b. Land re-use order c. Land reclassification d. Land Expropriation

a. Land conversion

33. The rules of conduct and practice in the Realty Code of Ethics defines the practitioner’s relations to the following, except: a. Government and the public b. Clients/customers and fellow practitioners c. His organization and the national association where he belongs d. His family, relatives and close associates

d. His family, relatives and close associates

34. Through E.O. 26, this government program is the biggest reforestation in the Philippine’s history which in 6 years is projected to plant 1.5 billion trees in 1.5 M hectares of land: a. National Shelter Program b. National Greening Program c. National Climate Change Program d. National Disaster Risk Program

b. National Greening Program

35. Informal settlement is a type of settlement that is -- a. Planned b. Organic c. Barbaric d. Organized

b. Organic

36. A regional cooperation agreement of ASEAN nations which envisions a single market economy, equitable economic development, promote trade, elimination of non-tariff barriers and import duties, food security, emergency preparedness, connectivity and inclusive growth. a. International Cooperative Agreement b. ASEAN Economic Integration/Community c. Asia-Pacific Economic Forum d. ASEAN Growth Triangle

b. ASEAN Economic Integration/Community

37. A perimeter wall will be constructed on a 240 sqm. regular lot with a frontage of 12 meters. The wall is 1 meter below and 3 meters above ground. If the cost of the wall construction is P400.00 / sqm., how much would be the total cost of the wall excluding a 3-meter wide gate? a. P125,225.00 b. P105,300.00 c. P 97,600.00 d. P 88,350.00

c. P 97,600.00 Sol. Area = 240sqm Area = Length x Width 240sqm = 12 x width 240/12 = width 20m = with Perimeter = sum of all sides P=12 +12 +12 +20 = 64cm Wall height = 3m +1m = 4m Length = 64m-3m (gate) = 61m effective length Area Wall = 61m x 4m =244 sqm Cost =244sqm x400/sqm = 97,600

38. A 3-hectare land was sold for P300.00/sqm. and the seller agreed to pay a commission on the following graduated rates: 5% for the first P1,000,000.00; 4% for the next P1,500,000.00 and 3% on the excess over P2,500,000.00. If you are the selling broker and you agree with the listing broker on a 60-40 commission sharing in your favor, how much would be your share of the gross commission? a. P205,000.00 b. P195,000.00 c. P183,000.00 d. P165,000.00

c. P183,000.00 Given: Selling Price (30,000 x 300 = 9,000,000 Solution: 1,000,000 x 5% = 50,000 1,500,000 x 4% =. 60,000 6,500,000 x 3% = 195,000 Total 305,000 60% = 183,000 40% = 122,000

39. Mr. Ahente obtained a net listing of P6,500,000.00 for a residential condominium unit. He sold the property at a price which is inclusive of his 5% professional fee, capital gains tax and documentary stamp tax. The Deed of Sale provides that the buyer will shoulder the transfer tax and registration fees. At how much was the property sold? a. P8,350,188.30 b. P7,880,555.88 c. P7,428,571.42 d. P7,275,050.50

c. P7,428,571.42 Sol. Selling Price (Find) 7,428,571.42 100% Cost: 5% Professional Fee 6% Capital Gain Tax. 928,571.43 12.5% 1.5% Docs Stamp Net Selling Price (Given) 6,500,000.00 87.5% (6,500,000/87.5% = 7,428,571.42)

40. You as the broker, before offering to your client a one-hectare land for low-cost housing, prepared a simple profitability statement. Estimated development cost of the land is P300.00/sqm. based on the gross area. Construction cost of the 100 housing units is P3,000.00/sqm. with each unit having a floor area of 60 sqm.. The land is being offered by the owner at P300.00/sqm. and the selling price per housing unit is P450,000.00. How much would be your client’s gross profit? a. P32,500,000.00 b. P28,675,000.00 c. P21,000,000.00 d. P18,800,000.00

c. P21,000,000.00

41. The “bundle of rights theory” also means – a. Rights of vendee-a-retro b. Rights of land beneficiary c. Rights in fee simple d. Rights of buyer

c. Rights in fee simple

42. Traditional ownership is evidenced by: a. CCT b. TCT c. OCT d. Master Deed

b. TCT

43. When is the documentary stamp tax on sale of real property paid? a. Within 5 days after the close of the month b. Within 30 days after the close of the month c. Within 48 hours d. Within 30 days

a. Within 5 days after the close of the month

44. The technical description in the real property can be readily plotted on a sheet of paper by using the following data: a. Bearing and tie line b. Bearing and distances from lot points c. Bearing and lost points d. Blanket mortgage BLLM and the tie line

b. Bearing and distances from lot points

45. What is that cash or payment in kind given by landowner or developer to tenant’s farm workers or bonafide occupants to be affected by the Dept. of Agrarian Reform conversion? a. Conversion Assistance Fund b. Disturbance Compensation c. Tenant Share Remuneration d. Ejectment Compensation Fund

b. Disturbance Compensation

46. A stipulation in an Authority To Sell that entitles the broker to a commission even beyond the period of his authority if he had registered his buyer to his principal before the expiry of his authority. a. Authority To Overprice b. Open, Non-Exclusive Listing c. First come, First serve Rule d. Hold Over Clause

d. Hold Over Clause

47. What is the loan to appraised value ratio for a Pag-Ibig Fund loan of P900,000.00? a. 100% b. 95% c. 90% d. 85%

c. 90%

48. If you are applying for a Pag-Ibig housing loan of P800,000.00, what should be your minimum gross monthly income if the monthly amortization is P6,500.00? a. P18,571.42 b. P17,234.78 c. P19,111,93 d. P20,298.77

a. P18,571.42 Solution: Pag-Ibig Loan = 800k Monthly Amort = 6,500 Min. Gross Monthly Income = X 6,500 = 35% of X 6,500/35% = X X = 18,571.42

49. According to the NEDA, the Philippine economy’s gross domestic product is expected to grow by how many percent in 2015? a. 5% b. 6.5% c. 6.0% d. 7.8%

c. 6.0%

50. A broker’s application for accreditation to sell a developer’s project was approved only to find out that the project does not yet have a license to sell. The broker should – a. Immediately resign from his accreditation b. Report the developer to the HLURB c. Refrain from selling the project until its LTS has been approved and issued. d. Do nothing

c. Refrain from selling the project until its LTS has been approved and issued.

51. The practice of deepening an existing waterway; also a technique used for collecting bottom-dwelling marine organisms (e.g. shellfish) or harvesting corals, often causing significant destruction of reef and ocean floor ecosystems. a. Digging b. Compacting c. Silting d. Dredging

d. Dredging

52. The type of appraisal report depends upon the amount of background information and detail required by the client. Which of the following types is the longest and most detailed? a. Letter Report b. Form Report c. Narrative Report d. Analysis Report

c. Narrative Report

53. An appraisal is – a. A fixing of value b. An estimate of value c. A statement of value d. A value determination

b. An estimate of value

54. The two types of real estate appraisal are – a. Formal and Informal b. Informal and Intuitive c. Structural and Formal d. None of the above.

a. Formal and Informal

55. A rent multiplier is an economic unit of comparison because --- a. It measures the square meter of the rental property b. It compares the present income of the property against the past income as a percentage c. It relates to the income of the property d. All of the above

c. It relates to the income of the property

The economic principle which states that real property value is created and sustained when the characteristics of a property conform to the demands of its market. a. Principle of anticipation b. Principle of substitution c. Principle of conformity d. Principle of contribution

c. Principle of conformity

57. A species that is threatened with extinction either by direct hunting or habitat destruction. a. Wildlife species b. Marine species c. Plant species d. Endangered species

d. Endangered species

58. The social and cultural patterns that result from relationships between people and resources. a. Social theory b. Heritage theory c. Environmental theory d. Relativity theory

a. Social theory

59. Mr. Lopez pays a monthly amortization of P54,100.00 for a parcel of land. The amortization factor for 5 years at 21% interest is 0.02705. If Mr. Lopez paid a downpayment of 20% of the contract price, what is the principal loan amount on which the monthly amortization is based, the contract price and the amount of downpayment? a. P2,200,000.00 / P2,700,000.00 / P300,000.00 b. P3,000,000.00 / P3,500,000.00 / P800,000.00 c. P2,000,000.00 / P2,500,000.00 / P500,000.00 d. P2,500,000.00 / P3,500,000.00 / P500,000.00

c. P2,000,000.00 / P2,500,000.00 / P500,000.00 Sol. Solution: Amort = 54,100 Term = 5yrs Interest = 21% Amort Factor = 0.02705 DP = 20% of CP Loan Amount = ??? Contract Price = ??? DP = ??? X = YF FV = RV (F4) F1 = 1+r^n F1 = (1+0.21)^5 = 2.59 F2 = F1 – 1 r F2 = (2.59 – 1) = 7.59 0.21 PV = 54,100 x 12mos (F2/F1) PV = 649,200 (7.59/2.59) PV = 649,200 (2.93) PV = 1,902,156 ≈ 2,000,000 2,000,000 = 80% CP CP = 2,000,000 / 8 CP = 2,500,000 DP = 2,500,000 x 20% DP = 500,000

60. An investor bought an apartment property for P45 Million. The property earns a monthly rental income of P300,000.00 and its annual fixed and operating expenses total P400,000.00. What is his rate of return on investment? a. 10.00 % b. 8.50 % c. 6.85 % d. 7.11 %

d. 7.11 % Sol. Return of Investment Formula: ROI = Profit / Cost of Investment Given: Cost of Investment. = P45M Rental Income. = P3,600,000 (300,000/mos x 12mos =P3,600,000) Operating Expenses = P400,000 Solution ROI = 3,600,000 – 400,000 / 45,000,000 = .0711 or 7.11%

61. Which of the following is not needed by the individual real estate practitioner before practicing? a. Mayor’s Permit with the local government unit b. BIR Certificate of Registration c. Professional Tax Receipt from the LGU d. Professional ID and license from the PRC

a. Mayor’s Permit with the local government unit

Who is the Acting Chairman of the Professional Regulation Commission? a. Ofelia Binag b. Atty. Charito Zamora c. Angeline Chua-Chiaco d. Eduardo G. Ong

b. Atty Charito Zamora

63. A security that sells like a stock on the major exchanges and invests in real estate directly, either through properties or mortgages. a. Treasury Bonds b. Hedge Funds c. Mutual Funds d. Real Estate Investment Trust

d. Real Estate Investment Trust

64. What is a measure of all currently produced goods and services valued at market prices? a. Gross Domestic Product or GDP b. Inflation Rate c. Unemployment Rate d. Interest Rate

a. Gross Domestic Product or GDP

65. Which of the following credit rating agencies have given the Philippines investment grade rating? a. Standard & Poor (S&P) b. Fitch c. Moody’s d. All of the above

d. All of the above

66. An addition to land from natural causes as, for example, from gradual action of the ocean or river waters. a. Accession b. Alluvion c. Accretion d. Erosion

c. Accretion

67. The valuation of property for the purpose of levying a tax or the amount of the tax levied. a. Appraisal b. Value-added tax c. Assessment d. Capitalization

c. Assessment

68. The rights of ownership whereby the owner has the right to possess, use, enjoy, dispose, abuse, recover the fruits. a. Bundle of Rights b. Right To Mortgage c. Police Power d. Power of Attorney

a. Bundle of Rights

69. This annotation on a title means the property is subject to the rights of heirs, creditors or any person which may have been duly deprived of their lawful participation in the estate within a period of two years from the settlement and distribution of the said estate. a. Lis pendens b. Rule 74, Section 4 of the Rules of Court c. Encumbrance d. Abstract of Title

b. Rule 74, Section 4 of the Rules of Court Section 1. Extrajudicial settlement by agreement between heir. Section 4, Rule 74 prescribes the procedure to be followed if within two (2) years after an extrajudicial partition or summary distribution is made, an heir or other person appears to have been deprived of his lawful participation in the estate, or some outstanding debts..

70. Type of financing under the Unified Home Lending Program whereby undivided titles of land are made the subject of housing loans for several beneficiaries specifically residents of depressed areas. a. In-house Financing b. Pag-Ibig Fund Financing c. Community Mortgage d. Development Loan

c. Community Mortgage

71. An interest in real property consisting of separate interest in a unit in a residential, commercial or industrial properties and co-ownership on the common areas and an undivided interest in the land where it is located. a. Joint Venture b. Stewardship Concept of Ownership c. Condominium d. Subdivision Development

c. Condominium

72. In a Pag-Ibig loan, what is the loan to appraisal value ratio if the loan amount is P3 Million? a. 70% b. 75% c. 80% d. 85%

c. 80%

73. If the borrower is 35 years old at the time of availment of the Pag-Ibig housing loan, what will be the maximum period in years the loan should be fully paid? a. 20 years b. 25 years c. 30 years d. 35 years

d. 35 years The maximum payment for the loan is thirty (30) years The maximum amount of loan is 6Million. The Maximum age of the borrower is seventy years old (70) 70-35 = 35

74. The Pag-Ibig housing loan must be covered by two types of insurance policies. One of them is a fire insurance. What is the other one? a. Accident Insurance b. Whole Life Insurance c. Mortgage Redemption Insurance d. Credit Insurance

c. Mortgage Redemption Insurance

75. What’s the name of the infrastructure project under the Public Private Partnership Program of the government which will connect the north and south Luzon expressways? a. Integrated Transport System Hub Project b. Automated Ticketing System for Elevated Train Systems c. Metro Manila Skyway Stage 3 Project d. Mactan-Cebu International Airport Terminal Project

c. Metro Manila Skyway Stage 3 Project

76. A document issued by the DENR certifying that the proposed project will not cause significant environmental impact. a. Environmental Positive Certificate b. Environmental Impact Certificate c. Ecological Certificate of Approval d. Environmental Compliance Certificate

d. Environmental Compliance Certificate

77. What land of the public domain is alienable and disposable? a. Abandoned private lands b. National parks c. Agricultural land d. Forest and timber lands

c. Agricultural land

78. The following are inherent rights of the state that restricts property rights, except: a. Expropriation b. Escheat c. Taxation d. Eminent Domain

b. Escheat

79. An Act providing protection to buyers of subdivisions and condominium projects. a. P.D. 1096 b. P.D. 1081 c. P.D. 1216 d. P.D. 957

d. P.D. 957 P.D. 1096 – National Building Code of the Philippines b. P.D. 1081 – Philippines under Martial Law c. P.D. 1216 – Open Space in Residential Subdivision

80. “Right of Way” is a kind of – a. Setback b. Accretion c. Easement and servitude d. Dominant estate

c. Easement and servitude

81. The regulatory body for real estate practitioners specified in the RESA Law is known as – a. Professional Regulation Commission b. Commission on Higher Education c. Professional Regulatory Board of Real Estate Service d. Accredited Integrated Professional Organization

c. Professional Regulatory Board of Real Estate Service

82. As an agent of the seller, the real estate broker is usually authorized to do all the following, except: a. Cooperate with other brokers to facilitate a sale b. Place a “For Sale” sign on the listed property c. List the property on the multiple listing service d. Bind the principal under a contract to sell

d. Bind the principal under a contract to sell

83. The zonal value of a property can be obtained from – a. Assessor’s Office b. Bureau of Internal Revenue c. Registry of Deeds d. City or Municipal Treasurer’s Office

b. Bureau of Internal Revenue

84. An annotation in the title that refers to the limitation on the use of the lot, such as allowable utilization, building to lot ratio, prohibition against further subdivision of the lot, maximum height, etc. a. Notice of Lis Pendens b. Real Estate Mortgage c. Encumbrance or lien d. Deed of Restrictions

d. Deed of Restrictions Notice of Lis Pendens – official notice to the public that a lawsuit involving a claim on a property has been filed. Real Estate Mortgage – property serves as collateral to secure the loan. Encumbrance or lien – claim against an asset by an entity that is not the owner.. ex. Lien, easement

85. A real estate mortgage covering several properties is called – a. Equitable Mortgage b. Open Mortgage c. Closed Mortgage d. Blanket Mortgage

d. Blanket Mortgage

86. The following are the requirements for the entitlement of a commission, except: a. Authority from the principal b. Broker must be a licensed appraiser c. Procurement of a ready, willing and able buyer d. Broker closed the sale at terms, price and conditions

b. Broker must be a licensed appraiser

87. The act of the broker who is instrumental in effecting the meeting of the minds between the buyer and seller as to price and terms and is one of the requisites for entitlement to commission. a. Conformity to listing authority b. Acceptance of earnest money c. Procuring cause d. Exclusive right to sell

c. Procuring cause

88. A scale of 1:200 in surveying terms is – a. 1 centimeter is equal to 2 meters b. 1 meter is equal to 20 meters c. 1 centimeter is equal to 200 meters d. 1 meter is equal to 2 kilometers

a. 1 centimeter is equal to 2 meters

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

c. Board Resolution

90. Three of the following statements are important in the documentation and registration of real estate sales. Which information is false? a. Capital gains tax is 6% of the contracted price or zonal value whichever is higher b. Documentary stamp tax is 1.5% of the contracted price or zonal value whichever is higher c. Transfer fee is computed at 1.5% of the contracted price or zonal value whichever is higher d. Pasig and Quezon Cities impose a Business tax on sales of real property titled to corporations

c. Transfer fee is computed at 1.5% of the contracted price or zonal value whichever is higher

91. The selling price of a real estate is usually based on its --- a. Speculative value b. Intrinsic value c. Exchange value d. Market value

c. Exchange value

92. Which of the following is never considered as a factor in the valuation of a house and lot? a. Topography of the lot b. Functional obsolescence c. Conviction of the owner on charges of moral turpitude d. Modifications in zoning regulations

c. Conviction of the owner on charges of moral turpitude

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

c. Infiltration

94. Exemptions on payment of capital gains tax on the sale of an individual seller’s principal residence who will use the proceeds to purchase a new place of residence may be availed of only once every --- a. 5 years b. 10 years c. 15 years d. 20 years

b. 10 years

95. On documents executed abroad like a Special Power of Attorney, the documents must be properly authenticated by any of the following, except: a. Philippine Ambassador or Secretary of Legation b. Charge d’ Affairs c. Secretary of Justice d. Consul General, Consul, Vice-Consul

c. Secretary of Justice

96. Which of the following is not a step to be taken in the release of a mortgage? a. Payment of the loan obligation b. Execution of the Deed of Release c. Registration of the Deed of Release d. Application with the Sheriff’s Office

d. Application with the Sheriff’s Office

97. In the case of a property which is sold to two or more buyers who are all presumed to have acted in good faith, who is the buyer who has a better right to the property? a. The very forst buyer as proven from a comparison of the dates indicated on the different Deeds of Absolute Sale. b. The buyer who is registered as owner in the Barangay records c. The buyer occupying the property d. The buyer who first registered or recorded the sale with the Registry of Deeds

d. The buyer who first registered or recorded the sale with the Registry of Deeds

98. The study of current supply and demand conditions in a particular area for a particular type of property is called --- a. Market analysis b. Real estate appraisal c. Cash flow analysis d. Investment analysis

a. Market analysis

99. In an authority given by a developer to a broker to find a supplier for cement and concrete aggregates wherein payment shall be in the form of units or developed lots, the contract is called: a. Sales Agency b. Procurement Agency c. Exchange Agency d. Purchase Agency

c. Exchange Agency

100. A listing broker is authorized by : a. The buyer or purchaser b. The owner-seller or his attorney-in-fact c. The property tenant or lessee d. Co-broker

b. The owner-seller or his attorney-in-fact