Pre-Test

Pre-Test (google.com)

1.Which of the following real estate contract clauses is typically seen in

blanket mortgages and allows for the freeing of all or part of a property
from a claim through a proportional or full
amount of the mortgage being paid off?
The Release Clause - A release clause is a contract provision
(typically in a blanket
mortgage) that allows for the freeing of all or part of a property from a
claim through a proportional or full amount of the mortgage being paid
off.
2.In a typical real estate market, if the demand for commercial office
space declines and the supply of office space also declines at the same
ratio, market rent per square foot should:
Remain the same - If demand increases more than supply does, we
get an increase
in price. If supply rises more than demand, we get a decrease in
price. If they rise or
decrease the same amount, the price remains the same.
3.The owner of a condominium has the use of many facilities there,
including a pool. Under the typical condominium arrangement, the facilities
are owned by
all the condominium owners in the form of percentage undivided
interests. -
Condominium often shortened to condo, is a type of living space which
is similar to an apartment, but which is independently sellable and
therefore regarded as real estate.
Unlike apartments, which are leased by their tenants, condominium
units are owned
outright. The answer is all the condominium owners in the form of
percentage undivided interests because all condominium owners legally
own a portion of all the facilities there.
4.As a general rule of thumb ALL written offers must be:
Presented to the seller - As a general rule of thumb all written offers
must be presented to the seller. It is a serious breach of a real estate
agent's fiduciary duty to the seller not to present all purchase offers.
5.Typically, a trust is a -party relationship.
Three - Trusts can be created during an individual's lifetime, or they
can be established following someone's death. A trust is a three-party
relationship in which the first party, the trustor or settlor, transfers a
property upon the second party for the benefit of the third party, the
beneficiary. The trustee is required to manage the trust property in
accordance with the trustor's wishes and in the beneficiary's best
interests. A trustee can be an
individual or a financial institution such as a bank.
6.The fact there is a limited amount of land on earth represents what
essential element of value?
Scarcity - Remember DUST and your essential elements of value.
Demand: This means the desire to buy and an ability to pay. Utility: The
item satisfies a human need or desire; such as shelter, income, or
recreation. Scarcity: Limited in supply, as supply diminishes, value
increases. Transferability: Able to transfer from one owner to another.
7.What determines who pays for what and how much at closing?
Proration - is the allocation or division of money items at the closing.
Proration mainly comes into play when a seller prepays their home
taxes for the year. Because they paid for the full year and are selling
the property, the buyer will then owe the seller the remaining months of
taxes.
8.Joint tenants with a right of survivorship means
if one owner dies, that owner's interest in the property will pass to the
surviving owner or owners. - When a property is owned by joint tenants,
the interest of a deceased owner
automatically gets transferred to the remaining surviving owners. For
example, if three joint tenants own a house and one of them dies, the
two remaining tenants each obtain a one- half share of the property.
This is called the right of survivorship.

9.What is an item on a property that is installed by the tenant, and is

related to the tenant's business classified as?
Fixtures - A fixture is any physical property that is permanently attached
to real property.
Trade fixtures refer to items installed in connection with the business,
such as stoves or refrigerators in a restaurant.
10. An individual owned three hectares of land. When she sold one
hectare to her friend, she reserved for herself and family an appurtenant
easement over the friend's land for ingress and egress. The friend's land
is what?
The servient tenement - A Dominant Estate is a parcel of real
property that has an easement over another piece of property. A
Servient Estate is a parcel of land that is subject to an easement.
To easily remember this concept, remember Servient Estate as
the "servant" to the dominant estate.
11. Which of the following can be achieved by dividing the price of the
property by the rent that is produced?
Gross Rent Multiplier - The Gross Rent Multiplier is found by dividing
the price of the property by its rent.
12. Generally speaking, what happens when the supply of available
houses in an area increases significantly?
The average cost of housing goes up - Not right.
 Think of supply and demand like a scale usually if one side raises, the
other will lower or vice versa. Generally, low supply and high demand
increase prices. In contrast, the
greater the supply and the lower the demand, the price tends to fall.
So in real estate terms, when the supply of available houses in an area
increases significantly the average cost of housing goes down.
13. Is the procedure in which an original contract is terminated and
replaced with a new one.
Novation - is the procedure in which an original contract is terminated
and replaced with a new one. The legal process of novation makes it
possible to transfer all contract benefits and liabilities from
previous parties to a set of new ones. In plain terms, it’s a simple
way to replace an old contract with a new one while maintaining
most or all of its original properties. When you see any name
transfers just think novation.
14. In the case of a standard tax lien who gets paid first?
the government. - Tax liens are imposed by the federal, state, or local
government based upon back property taxes that are due. Not only
can these seriously impact your credit report, but until they're paid
off, they can prevent you from selling the property. Tax liensare
involuntary and usually specific. The important thing to remember is
the government always gets paid first in terms of money distribution.
15. radioactive gas dispersed from natural decay of mineral in earth
(odorless, colorless,
tasteless)?
Radon is radioactive gas dispersed from natural decay of mineral in
earth. odorless, colorless, tasteless. Rises out of ground and enters homes
through openings in basement where usually found. If trapped inside a
house, can increase to harmful health levels. Small particles inhaled
into lungs can cause cancer. Can also contaminate groundwater.
Radon is usually detected by radon test kits.
16. defines the doctrine of prior appropriation?
First-in-time-first-in-right. - The prior appropriation doctrine is a legal
concept that evolved in the American West as a means of establishing the
right to use scarce water from rivers and streams. This doctrine can be
summed up as "first in time is first in line.
17. A property owner enters into an exclusive agency listing with an
agent. The seller ends up obtaining a buyer for the house themselves. Is
the agent entitled to compensation?
No, because it's an exclusive agency listing.-
The agent is not entitled to any compensation. With exclusive agency
listings agents only get paid if they sell the property. No fee is earned if
the owner alone sells the property.
Also if it was open listing, the agent would still NOT be entitled to any
compensation. The scenario wherein an agent is entitled of a
commission when the owner sold the property is called the exclusive
right to sell listing.
18. Researching recently sold homes in the area and homes that haven't
been sold in the area and comparing their prices. Is an example of
a comparative market analysis. - A comparative market analysis is an
examination of the prices at which similar properties in the same area
recently sold. Agents can use a comparative market analysis for their
clients to help them determine a price when selling or buying a home.
19. A property owner enters into a listing agreement with an agent. Another
agent obtains a buyer for the house, and the first agent does not receive a
commission. The listing agreement between
the first agent and the property owner was probably
An open listing
- Open listings are truly open. Sellers might consider an open listing
if there are a lot of buyers in the marketplace. An open listing is
when any agent or broker can participate in the listing and is
entitled to a commission if he or she produces the sale. Since the
listing agreement between the first agent wasn't met it had to be
an open listing because another agent obtained a buyer.
20. a written supplement or amendment to an existing will such as one
affecting the transfer of real estate upon death?
Codicil - is a written supplement or amendment to an existing will
such as one affecting the transfer of real estate upon death. In plain terms
it's an addendum of any kind to a will.
21. Severalty ownership
is ownership by one person - Ownership in severalty means one person
owns the
property. Think of the word “severed,” separated from, rather than the
word “several,” meaning more than one. Ownership in severalty means
one person owns the property.
22. Three identical properties in a suburban neighborhood were listed at the
same time in a
market where demand was constant. According to the law of supply and
demand, which property would have sold for the lowest price?
The first property sold - According to the law of supply and demand,
the first property sold would have sold for the lowest price.
 Remember generally speaking, when the
supply of houses goes down, the price goes up, and vice versa.
23. If someone is unlawfully forced to execute a contract it is called what?
Duress - is the unlawful constraint or action exercised upon a person
whereby the person is forced to perform an act against his or her will.
A contract entered into under duress is voidable.
24. What is the procedure used by a public or private entity with the
powers granted to take privately owned real estate?
Condemnation - Condemnation is the procedure used by a public or
private entity with the powers granted from eminent domain to take
privately owned real estate. Eminent domain is the right which
grants the government to take privately owned land from
someone while condemnation is the action of taking that land.
25. The Bundle of Rights include:
Possession, control, exclusion, enjoyment, disposition - Owning real
estate carries with it a "bundle of legal rights” The bundle of rights is the right
of possession, the right of control, the right of exclusion, the right of
enjoyment and the right of disposition. When a person purchases property,
he or she is given the rights to the property. Interestingly the rights can
be split up and given to different parties. Think of the bundle of rights as
a bundle of sticks.

17. A property owner enters into a listing agreement with an agent. Another
agent obtains a buyer for the house, and the first agent does not receive a
commission. The listing agreement between
the first agent and the property owner was probably
An open listing
- Open listings are truly open. Sellers might consider an open listing
if there are a lot of buyers in the marketplace. An open listing is
when any agent or broker can participate in the listing and is
entitled to a commission if he or she produces the sale. Since the
listing agreement between the first agent wasn't met it had to be
an open listing because another agent obtained a buyer.

18. What is a written supplement or amendment to an existing will such

as one affecting the transfer of real estate upon death?
Codicil - is a written supplement or amendment to an existing will
such as one affecting the transfer of real estate upon death. In plain terms
it's an addendum of any kind to a will.

19. Severalty ownership

is ownership by one person - Ownership in severalty means one person
owns the
property. Think of the word “severed,” separated from, rather than the
word “several,” meaning more than one. Ownership in severalty means
one person owns the property.
 20. Three identical properties in a suburban neighborhood were listed at the
same time in a
market where demand was constant. According to the law of supply and
demand, which property would have sold for the lowest price?
The first property sold - According to the law of supply and demand,
the first property sold would have sold for the lowest price.
Remember generally speaking, when the
supply of houses goes down, the price goes up, and vice versa.
21. If someone is unlawfully forced to execute a contract it is called what?
Duress - is the unlawful constraint or action exercised upon a person
whereby the person is forced to perform an act against his or her will.
A contract entered into under duress is voidable.
22. What is the procedure used by a public or private entity with the
powers granted to take privately owned real estate?
Condemnation - Condemnation is the procedure used by a public or
private entity with the powers granted from eminent domain to take
privately owned real estate. Eminent domain is the right which
grants the government to take privately owned land from
someone while condemnation is the action of taking that land.
23. The Bundle of Rights include:
Possession, control, exclusion, enjoyment, disposition - Owning real
estate carries with it a "bundle of legal rights” The bundle of rights is the right
of possession, the right of control, the right of exclusion, the right of
enjoyment and the right of disposition. When a person purchases property,
he or she is given the rights to the property. Interestingly the rights can
be split up and given to different parties. Think of the bundle of rights as
a bundle of sticks.

24 . A buyer of a home was not informed that his house was on a septic tank
system. The buyer has the right to:
Rescind the contract - An agent must reveal all property material facts
and defects known at the point of sale. A failure to disclose this
information may allow the buyer to rescind
the contract.
17. The type of easement that is a right-of-way for a utility company's power
lines is what?
An easement in gross - is basically selling rights to the land to another
person, but without giving them legal ownership. An example of an
easement in gross is an easement to a utility company to run a power line
 across a burdened piece of property.
28. If someone is unlawfully forced to execute a contract it is called what
Duress - Duress is the unlawful constraint or action exercised upon a
person whereby the person is forced to perform an act against his or
her will. A contract entered into under
duress is voidable.
29. By which of the following can you not lose title to your property
involuntarily?
Dedication - in property law means the donation of your land. Dedication
would be considered voluntary, while the others are all involuntarily.
30. The Latin phrase ad valorem comes up often when talking about property
taxes. What does ad valorem mean?
according to value – The term “ad valorem” is Latin for “according to
value,” which means that it is flexible and depends on the assessed value of
an asset, product, or
service. An ad valorem tax is charged by state and municipal
governments and is based on the assessed value of a product or property. The
most common ad valorem tax is the property tax, which is charged on real
estate and personal property.
 Alpha Review Pre-Test
Quiz 1
1. An example of economic obsolescence in real estate is
Economic obsolescence refers to the loss of property value due
to external factors, meaning things off the property affecting the
property's value. A new noisy highway would be considered economic
obsolescence because it is an external factor. Usually, in these
circumstances, homeowners cannot do anything to prevent it.
2. Usually, the appraiser is hired by the
Usually, the lender or financing organization will hire the appraiser.
Technically the seller pays for the appraiser since it comes out of the
final sales price. however, the hiring aspect is almost always done by the
lender.
3. An offer to purchase real estate becomes a contract when
it is signed by the Seller - For a contract to be valid a
few things must occur:
-The party must be at least 18 years old and of sound mind.
-A contract must be legal. For example, there cannot be a contract to
kill, steal or anything illegal.
-The contract must hold a clear and definite consideration.
-There must be mutual consent of the contract.
Any offer to purchase real estate MUST be signed by both the buyer
and seller in order to be valid. Both parties must follow these
guidelines. It becomes a legal contract as soon as both parties sign.
4. What is the highest form of real estate ownership that is recognized
by law, in which the owner can enjoy the property to its fullest
extent?
Fee simple absolute or (fee simple for short) is an estate in land.
It is the highest form of real estate ownership that is recognized by
law, in which the owner can enjoy the property to its fullest extent
and is only limited by government powers which we’ll cover later on.
Fee simple absolute is the greatest interest in a parcel of land that
one can
possibly own. The fee simple estate has unlimited duration and can be
passed on to heirs.

5. What is the general technique of determining three-dimensional

positions of points and the distances and angles between them?
 Surveying is the "general" technique of determining three-
dimensional positions of points and the distances and angles
between them. The point of a survey is to
accurately measure land in a legal fair manner. While subdivision
surveying is definitely a form of surveying this question is asking for
the general form, which is just surveying.
6. Which of the following two real estate contract clauses protect the
lenders in some way, usually by asking for some form of
payment(insurance)?
The keywords here are lender and payment. Some of these
provisions protect the borrower, lender, or both. The Acceleration
Clause and Prepayment Penalty Clause is a contract provision that
requires a borrower to repay all of an outstanding loan if upon a
breach of the contract - which definitely protects the lenders and their
interests by asking for repayment. A prepayment penalty clause states
that a lender can penalize a borrower if the borrower pays off the
mortgage much sooner than usual. This definitely protects the lenders,
their interests, and results in repayment as well. Within the other
answers the clauses may, or may not protect lenders, or do not require
some form of payment or insurance.
7. What is a one-of-a-kind contract that is solely between the seller
and the buyer. In this arrangement, the seller gives the buyer the
option to purchase property at a given price for a set period?
A real estate option contract is a one-of-a-kind contract that is
solely between the seller and the buyer. In this arrangement, the
seller gives the buyer the option to purchase property at a given
price for a set period.

8. What type of ownership model is used for vacation real estate in which
multiple
purchaser’s own allotments of usage, typically in one-week increments,
for the same property?
Ownership in Severalty - A timeshare is a property with a
divided form of ownership or use rights. These properties are
typically resort building units, in which multiple parties hold rights
to use the property, and each owner of the same accommodation
is allotted their period of time. They differ from regular
condominiums as they typically are exclusively for vacations.
9. The increase of value with the passage of time is best described as:
Appreciation- in general terms, is an increase in the value of an
asset over time.
The increase can occur for a number of reasons, including increased
demand or weakening supply, or as a result of changes in inflation or
interest rates.

10. Johnny is purchasing a house and does not want to purchase all
of the furniture that is being left behind. He signs the contract on
Tuesday, and on Thursday changes his mind
about the furniture. He calls his agent, and they add the furniture to
the contract. What is this an example of?
An addendum would be drafted to include the furniture he is
purchasing, and any additional charge(s) for that furniture. Remember
an addendum ADDS terms to a
contract. An amendment typically changes terms of a contract. There
is a difference, make sure to understand it!
11. Which of the following BEST describes a contract that is voidable?
A bit of a trick question. Voidable contracts MAY be valid, often
they appear valid but are not. Remember, voidable contracts have the
necessary elements to be enforceable, so they appear to be valid, but
can be rejected by one party if the contract is discovered to have any
number of defects. Since the question says “may be” valid it is
voidable.
12. What is best defined as, a document in which a property
owner contracts with a real estate agent to find a buyer for the
owner's property?
A Listing agreement is a document in which a property owner
contracts with a real estate agent to find a buyer for the owner's
property. The owner executes the listing agreement to give a real
estate broker the authority to act as the owner's agent in the sale of
the owner's property, for which the owner agrees to pay a commission.
A listing agreement is a personal service contract. That means that
should the seller die, or either party becomes incapacitated, or the
property is physically destroyed in an accident, the listing agreement
is terminated.
13. In real estate, a deed is best defined as:
a written legal document by which ownership of real estate is
conveyed from one party to another. - A deed is a written legal
document by which ownership of real estate is conveyed from one
party to another. For a deed to be legal it must include the
identification of the grantor and grantee, and the adequate description
of the property.

14. What is a written supplement or amendment to an existing will

such as one affecting the transfer of real estate upon death?
Codicil (pronounced kaa-duh-sl) is a written supplement or
amendment to an existing will such as one affecting the transfer of
real estate upon death. In plain terms it's an addendum of any kind to
a will.
15. The cost of public services is distributed among real estate owners
through what?
Property tax is an ad valorem tax assessed on real estate by a local
government and paid by the property owner. Public services for real
estate owners are paid by real property tax.
16. One individual or married couple in business alone (The most
common form of business structure)
A Sole Proprietorship is one individual or married couple in
business alone. Sole
proprietorships are the most common form of business structure. This
type of business is simple to form and operate and may enjoy greater
flexibility of management, fewer legal
 controls, and fewer taxes. However, the business owner is personally
liable for all debts incurred by the business. A sole proprietor may
purchase property for both personal and business use through his own
name or through the name of his business. However, only personal
property used in direct relation to business operations is viewed as a
tax-
deductible business expense.

17. The fact that there is a limited amount of land on earth

represents what essential element of value?
Scarcity - Remember DUST and your essential elements of value.
Demand: This means the desire to buy and an ability to pay. Utility: The
item satisfies a human need or desire; such as shelter, income, or
recreation. Scarcity: Limited in supply, as supply diminishes, value
increases. Transferability: Able to transfer from one owner to another.
18. Which of the following would not be considered real property?
Fixtures, easements, and mineral rights are all examples of real
property
A mortgage is not. Real Property is all things attached to the land
and all the legal rights to it. Real property is usually things that are
immovable such as the home itself or the buildings within the property
line. There are some exceptions of items that can be moved but are still
real property, like for businesses. Business-related items like mineral
rights, or if you own a farming business it would include crops, barns,
and stables. Those are all
considered real property because it is part of the business.
19. In real estate, alienation is best described as:
The actual transfer of title in a real estate transaction is handled by
lawyers or title
agencies, not the agent. However as with other legal aspects in the
transactions a real estate agent needs to understand them.
Alienation is the act of transferring title,
ownership, an estate, or an interest in real estate from one party to
another.
20. Which of the following statements does NOT correctly describe a
fiduciary?
A fiduciary is NOT a neutral third party. Fiduciary is a term that
refers to a legal
relationship that is confidential between two parties. The fiduciary
responsibility is to protect the privacy of the client and to keep all of the
client’s information confidential. An example of a neutral third party is
an escrow agent is a person or entity that holds
property in trust for third parties while a transaction is finalized or a
disagreement is resolved.
21. A seller tells the listing agent that her home was treated for
termites five years ago, and that there are no termites now. Before
listing the property, the agent should
The agent should tell the seller to disclose the termite treatment
on the property disclosure. Whether legally required or not, you
should always tell the seller to disclose
 termite damage. Regardless of the legality, letting buyers know about
pest issues upfront protects anyone from a lawsuit down the line. Even
with an “as is” sale, you'll need to
disclose any known termite damage on the property.

22. A buyer wants to be represented by several different agents

while looking at various properties. This is an example of what?
A non-exclusive buyer agency agreement allows buyers to hire
more than one agent to find their home; however, buyers must inform
each agent they work with that another agent is involved and whether
they have shown them specific homes.
23. A lease agreement where the tenant has the right to buy the
property within a specified period of time is called what?
A lease option is when a lease is combined with an option contract.
24. When calculating the amount of real estate taxes owed,
calculations are based on what type of value?
The assessed value is a property's determined valuation to
calculate the appropriate tax rates.
25. The owner of a secluded area adjacent to the ocean noticed
that people from the local town walked along the shore in front of
his property. The owner learned that the local citizens had been
walking along this beach for half a century. The owner went to
court to try to stop people from walking along the water's edge in
front of his property. The owner is likely to be:

Unsuccessful because the owner's property extends only to the

high-water mark and the public can use the land beyond this point.

- A landowner of land which borders a navigable waterway owns the

property up to the high-water mark at the water’s edge. The
government owns the water and land
beneath it, and the public has an easement right to travel on the
water. The owner would be unsuccessful because the owner's
property extends only to the high-water mark.
26. An example of functional obsolescence in real estate is
Functional obsolescence refers to the loss of property value due to
an obsolete
design feature. Outdated plumbing would be considered functionally
obsolete because it is outdated. Who determines what is obsolete or not?
Usually, the buyer or homeowners. If a neighborhood is filled houses with
new bathrooms and/or new plumbing, and your's isn't, It would be
considered functionally obsolete.
27. Complete the following statement. The rescission of a contract occurs
when:
The rescission of a contract occurs when there is an agreement
between the contracting parties to waive all the remaining duties and to
terminate the contract. It would be returning the parties to the same
legal position they were in before entering into the contract.

28. Commingling is the opposite of what?

Commingling refers to mixing brokers funds with client’s funds.
The opposite of commingling is separation, which is just separating
the funds.
29. The legal principle under which a person who does not have
legal title to a property acquires legal ownership based on the
continuous occupation of the property.
Adverse possession is a legal principle under which a person
who does not have legal title to a property acquires legal ownership
based on the continuous occupation of the property. If successful in
proving adverse possession, the person or parties are usually not
required to pay the owner for the land.
30. What is radioactive gas dispersed from natural decay of
mineral in earth (odorless, colorless, tasteless)?
Radon is radioactive gas dispersed from natural decay of mineral
in earth. odorless, colorless, tasteless. Rises out of ground and enters
homes through openings in basement where usually found. If trapped
inside a house, can increase to harmful health levels. Small particles
inhaled into lungs can cause cancer. Can also contaminate
groundwater. Radon is usually detected by radon test kits.
 Alpha Review Pre-Test Quiz 2
1.------------refers to an official in the local government unit, who performs
appraisal and
assessment of real properties, including plants, equipment, and
machinery essentially for taxation purposes
- Real Estate Assessor
2. Branch office shall be manned by real estate brokers, appraisers,
consultants as
the case may be.
- DULY LICENSED
3. An act regulating the practice of Real Estate Service in the
Philippines or within the Philippine jurisdiction. -----
- Republic Act 9646
4. Under sec 32, the partnership or corporation shall regularly submit a
list of its real estate service practitioners to the Commission and SEC
as part of its----------------------------------------------------------------------reportorial
requirements.
- Annual
5.--------------refers to a duly accredited natural person who performs service
for and in behalf
of a real estate broker registered and licensed
by PRC
Real Estate Salesperson
6. The Chairman of Professional Regulatory Board of Real Estate Service
is
- Ofelia C. Binag
7. The board shall adopt and promulgate the Code of Ethics &
Responsibilities for real estate practitioners which shall be
prescribed by the ------
- Accredited and Integrated Professional Organization (AIPO)
8. The Real Estate Practitioner who fail to comply with the necessary
CPE requirements within ------ years after3 effectivity of RA 9646
on or before July 30, 2011 shall be required to take the Board Exam
- 2 YEARS
9. Per sec 30 of IRR RESA, all positions in government requiring the
services of registered and licensed real estate service practitioners
within-----------------------------------------------------------------years from effectivity
shall be filled only by registered and licensed real estate service
practitioners
- 3 years
10. The Board shall be assisted by the Commission in carrying out the
provisions of RA 9646 & IRR. The lawyers of the Commission shall
act as--------------------------------------------------------------------------against Illegal
practitioners and other violators.
PROSECUTORS
11.-----------refers to a duly registered and licensed natural person who for a
professional fee
act as an agent for real estate transaction.
- REAL ESTATE BROKER
12. The senate president who signed the RESA law was
- JUAN PONCE ENRILE
13. Subject to the provisions of the Labor Code, a corporation or
partnership may hire the services of registered and licensed real
estate brokers, appraisers, consultants on commission basis to
perform real estate services and the latter shall be deemed
contractor and not employees of such corporation.
INDEPENDENT

14. Per sec 39. any violation of RA 9646 including violations of the IRR by
a licensed/ accredited person shall be meted the penalty of fine of not
less than-----------------------------------------------------------------------------------and/or 2
years imprisonment.
- One Hundred Thousand Pesos (100 thousand)
15. Cash surety bond of real estate broker is ------
- not less than Php 20,000.00
16. In order that a candidate may be deemed to have passed the
examination, he/ she must have obtained 75% in all subjects with no
rating below---------------------------------------------------------------in any subject.
- fifty percent (50%)
17. There shall be at least 1 licensed real estate broker for every
----------------------------------------------------------------------------------------- accredited
salespersons per Sec 32.
- 20
18. Number of sections of the RESA IRR or the RESA law
- forty-five
19. IRR of RA No. 9646 refers to several words except
- Implementing Requirements & Rules of RA 9646
20. In case termination or resignation from office of a real estate
practitioner, the same shall be reported by employer to the Board
within a period not to exceed-------------------------------------------------days from
date
of effectivity
- Fifteen (15)
21. Cash surety bond of real estate broker is renewable every ------ .
 - 1 year
22. The president who signed the RESA law*/ The senate president who
signed the RESA law was
- Gloria Macapagal Arroyo / Juan Ponce Enrile
23. The Board shall create a- composed of a chairperson coming from the
Board a
member from AIPO and a member from the academe.
- CPE COUNCIL – Continuing Professional Education
24.-----------is the only accredited and integrated professional organization by
PRC.
- AIPO - Accredited and Integrated Professional Organization
(AIPO)
25. Refers to the (PRB-RES) Professional Regulatory Board of Real Estate
Service. ------
- The Board
26. The duration of the Professional Indemnity Insurance of Real Estate
Broker is ------
- 3 YEARS
27.----------refers to and consist of real estate consultants, real estate
appraiser, real estate
assessor real estate broker, real estate salesperson:
- Real Estate Service Practitioner
28. RESA law became effective on / RESA law was approved
- July 30, 2009 / June 29, 2009 (1 month duration)
29. Divisions or departments of partnership and corporation engaged in
marketing or selling any real estate development project in the regular
course of business must be headed by a registered and licensed real
estate broker in accordance with Sec 32
- FULL TIME
30. RESA law was approved on*
- June 29, 2009

31. Real estate salesperson, either directly or indirectly can negotiate,

mediate or transact any real estate transaction for and in behalf of a
real estate broker without first securing an as real estate
salesperson for the real estate broker as prescribed by the Board
- Authorized Accreditation
32. The natural and integrated professional organization of natural
persons duly registered and licensed as real estate service
practitioners. To be recognize by the Board as the only accredited
organization of real estate practitioners. It is mandatory to join for
those
 registered with the PRB-RES. ------
- AIPO – Accredited Integrated Professional Organization
33. Not included in the composition of the official seal of the Professional
Regulatory Board of Real Estate Service ( PRBRES ):
- Building, blue, green, violet
Land – represent Real Estate
Structures – represent improvements on the land such as
residential, industrial, commercial & institutional buildings
Tress and the fruits – represent agricultural practice
Green lines- represent the real estate service practitioners such
as real estate consultants, real estate appraisers, real estate
brokers & salespersons
RED, WHITE, BLUE, and YELLOW – represent the color of the
Philippine Flag
Green – represents environment and ecology
Sun and Rays – life and light
Rising Sun – represents the vital role of the real estate service
practitioners in the social, political, and economic development
and progress of the Philippines.
Gold – represents the ethical standards and prosperity
Map of the Philippines – represents the Philippine Archipelago

34. Coverage of those who shall be registered by the Board without

examination except:
 Passed the 2011 exam but failed to secure a license prior to June
1, 2011
35. The house speaker who signed the RESA law was
- PROSPERO NOGRALES

36. RA 9646 or RESA law has sections. ------

45 SECTIONS - If the question was the IRR, the answer is 45 RULES

37. The number of rules of RESA IRR or the number of articles of RESA
- FIVE (5)

38. Senate Bill number of RESA law

- 2963
39. Not true interpretation
- Land - prime rice land; red - alertness. Vigilance
Land – represent Real Estate
Structures – represent improvements on the land such as
residential, industrial, commercial & institutional buildings
Tress and the fruits – represent agricultural practice
Green lines- represent the real estate service practitioners such
as real estate consultants, real estate appraisers, real estate
brokers & salespersons
RED, WHITE, BLUE, and YELLOW – represent the color of the
Philippine Flag
Green – represents environment and ecology
Sun and Rays – life and light
Rising Sun – represents the vital role of the real estate service
practitioners in the social, political, and economic development
and progress of the Philippines.
Gold – represents the ethical standards and prosperity
Map of the Philippines – represents the Philippine Archipelago

40. No foreigner may be admitted to take the board exam nor be given
a certificate to operate in the Philippines unless there is ------
- Foreign Reciprocity
41. House Bill number of RESA law

- 3514
42. Under Sec 32 on corporate practice of the real estate service,
developer shall regularly submit to the commission and to SEC a list of
------
- Licensed Real Estate Service Practitioners
43. Per Sec 31 of 1RR RESA, for real estate salesperson shall be
accredited by the Board with at least 2 years of college , with at least
------ units in real estate brokerage/ CEP, no examination shall be given.
- 12 Credit Units
44. PRBRES through Resolution Number ___ series of 2010 adopts the
RESA IRR
- 2

45. The ------ of the official seal of the PRBRES signifies ethical
standards and prosperity.
- GOLD
46. Real Estate Service Practitioners shall refer to ------ .
- Real Estate Consultants, Real Estate Appraisers, Real Estate
Assessors, Real Estate Brokers & Real Estate Salesperson
47. Attendance in Real Estate Seminars and Review with certification
as provided by an accredited ------ by PRC is a prerequisite in taking
the Real Estate Broker's Exam.
- service providers
48. The ------ of the official seal of the PRBRES signifies the vital role
of the real estate service practitioners in the social, political, economical
development and progress of the Philippines
- RISING SUN
49. Per sec 39, any violation of RA 9646 including violations of the IRR
by an unlicensed/not accredited person shall be meted the penalty of a
fine of not less than P 200,000 and/or ------ years imprisonment.
- 4 YEARS
50. Under the corporate practice of the real estate service,
developer's marketing group must be headed by a ------
- Full Time Registered & Licensed Real Estate Broker/Appraiser
51. Not included in the following instances leading to revocation or
suspension of the Certificate of Registration and the Professional
Identification Card:
- Engaging in the practice of profession during the period of one's

suspension.

52. ------ refers to a person who conducts valuation and possesses

the necessary qualifications. license. ability, and experience.
- Real Estate Appraiser

53. Real Estate salesperson is a duly accredited natural person by PRC

who performs Real Estate service in behalf of a ------
- Real Estate Broker
54. The Chairman of the Board of Real Estate Service is Ofelia C.
Binag while the chairperson of PRC is ------
- Hon. Charito A. Zamora
55. Per Sec 31 of IRR RESA, Board may accredit real estate
salespersons until July 30, 2011 if they are registered with DTI and in
active practice for at least 3 years as may be certified by a licensed
broker or real estate developer prior to effectivity of RA 9646 and with
------ training hours in real estate brokerage and have submitted NSO
certificate of live birth, NW clearance, certificate of educational
attainment or its equivalent, notarized certificate of training seminar, and
 notarized certificate of their supervising licensed broker as may be
required by the board.
- 120
56. No violation of this provision per sec 31 shall be caused for
revocation of the broker's license unless there was ------ of such
violation or the broker retains the benefits, profits, or proceeds of a
transaction wrongfully negotiated by the salesperson.
- Actual Knowledge

57. A real estate broker shall be guilty of violating RA 9646 or the IRR
for utilizing the services of a real estate salesperson who has not
secured the required ------ from the Board.
- ACCREDITATION
 Alpha Review Pre-Test Quiz 3
1. Which would be classified as a personal property?
Mineral, oil, and gas rights are considered real property. An oil lease
that extends indefinitely is also classified as real property, whereas an
oil lease for a specific period is considered personal property.

2. Property taxes are ad valorem taxes, which means that they are
charged in relation to the value of the property taxes- Property taxes are
ad valorem taxes, which means that they are based on the value of a
property and levied annually by local governments. Property taxes can
be either real estate (land and buildings, improvements, machinery). The
amount of tax owed is determined by multiplying the current assessed
value of the property with a designated tax rate.

3. Prorations at closing on amounts other than interest payments usually

are based on
30-day month. The most common prorations at closing involve real
estate taxes, homeowners' association dues, real estate insurances,
rent, and landlord-paid utilities such as water or sewer services, and
electricity is a 30-day month. Regardless of the number of days in each
month, it is assumed to be 30 days.

4. Which is NOT as specific lien?

General Lien: A claim against some or all of a debtor's property; any
property may be sold to satisfy the debt.
Specific Lien – A claim against a specific piece of property; only that
individual property may be used to collect against the debt.
A judgment lien is a general lien, not a specific lien.

5. Zoning that prohibits adult entertainment within an area is

Exclusionary zoning prohibits certain types of activities or land uses
from taking place in an area, such as adult entertainment. In contrast,
inclusionary zoning encourages certain types of activities or land uses
by providing incentives and allowances for their development.
 Downzoning is the process of changing a property's zoning designation
to allow fewer uses than previously allowed. Illegal zoning does not
exist, as all zoning must be compliant with local and state laws.
6. When flood conditions cause land to be washed away, this is known as:
Avulsion occurs when a river or stream suddenly erodes its banks,
taking away the soil and land that had been there before. This process
can be caused by an especially strong surge of water from heavy rainfall
or from a natural disaster such as an earthquake. In some cases, large
amounts of sediment and debris can also be carried away, causing
further destruction downstream or in neighboring areas. Avulsion can
also occur when a river changes its course due to an obstruction or
human intervention. In this case, the soil and land that was previously
there are suddenly cut off from the original area. This is a particularly
damaging form of flooding, as it can cause large-scale displacement and
loss of property.

7. An agreement whereby one party to a contract is discharged, and another

party becomes obligated is a(n)
novation. It involves the substitution of a new party who assumes the
rights and obligations of the original party to the contract. Novation
requires the consent of all parties involved and results in the original
party being fully released from their obligations.

8. A mechanic's lien can be filed by a(n)

Laborer. A mechanic's lien is a legal tool that allows an unpaid laborer,
such as a contractor, subcontractor, or material supplier, to place a lien
on the property of the person who hired them in order to secure payment
for their services. The lien gives the laborer the right to have their debt
paid before anyone else, including the owner of the property. The lien
remains in effect until the debt is paid or released by court order. It also
serves as a deterrent for non-payment, since it could interfere with the
ability to sell or refinance the property until all debts have been settled.
Tenants, advertisers and customers are not eligible to file a mechanic's
lien, as they are not contractors or hired laborers.

9. Money awarded to an injured person for damages received is called

Compensatory damages are intended to make the injured person whole
by placing them in the same financial position they were in before the
harm occurred. This type of award can include economic losses (such
as medical bills, lost wages, and property damage) as well as non-
economic losses (such as pain and suffering). Exemplary damages, by
comparison, are intended to punish the wrongdoer and are usually only
available in cases involving intentional harm or gross negligence.
Nominal damages are a small sum of money awarded when there is an
injury but no real loss. Specific performance is a court order requiring
someone to do something they have promised to do (or refrain from
doing something). This type of court order is rarely used in civil cases
and usually only when money damages would not be sufficient to
 compensate the injured party.

10. The power of the state to take private property for public use is called
Eminent domain is the power of a government or its agent to take
private property for public use, with or without the consent of the
owner, and with just compensation being paid to the owner. It is an
inherent attribute of sovereignty and necessary for providing public
goods, such as roads, utilities, schools, and hospitals.

11. Someone appointed to carry out a particular transaction is a

A special agent is appointed to carry out a particular transaction as
opposed to a general agent, which is someone who carries out a variety
of tasks for their principal. Special agents are usually appointed for
tasks that require specialized skills or knowledge that the principal
does not have. A secret agent is someone who works covertly in order
to collect information or conduct activities on behalf of the principal,
while a subagent is an individual or organization appointed by an agent
to carry out some of their duties and responsibilities.

12. I told prospective purchasers, “You will love living in this neighborhood.”
After experiencing problems with their new neighbors, they sued the
broker for this false statement. A court would likely determine the
statement was
The statement made by the broker is likely a puffing because it is a
statement of opinion. Puffing is the use of exaggerated or vague
statements to promote a property. While it may be optimistic, it is not a
statement of fact or a false promise, which would be regarded as a
misrepresentation. Misrepresentation is the intentional or unintentional
misstatement or concealment of a material fact. It would not be
considered criminal fraud as there was likely no intent to deceive but
rather a subjective opinion expressed by the broker.

13. The sun's arc in the sky is highest in;

Summer, the sun rises earlier and sets later in the day as its arc across
the sky is higher than in other seasons. This results in more daylight
hours and warmer weather due to increased solar radiation reaching
Earth's surface. In contrast, during winter, the sun's arc is lower and
there are fewer daylight hours with cooler temperatures. Thus, summer
is the season with the highest sun's arc in the sky.

14. The agent owes the principal the duty of

In a fiduciary relationship, the agent owes the principal several duties.
These include having loyalty to the principal, being willing to disclose
and account for all monetary transactions, using extraordinary care and
skill in carrying out their duties, and avoiding dual representation of any
conflicting interests. Agents must uphold these standards so that
principals can trust them to carry out their responsibilities faithfully.
 The most important quality that an agent owes the principal is loyalty.
15. The relationship that exists between a broker and an owner under a
listing is most likely a(n)
The relationship between a broker and an owner under a listing is best
described as a special agency. This means that the broker has been
granted limited authority to act on behalf of the owner in specific tasks
related to the sale or lease of the property. The broker is not an
employee of the owner, but rather a contracted agent with fiduciary
duties to act in the best interest of the owner. This relationship is
typically governed by a listing agreement and includes obligations such
as marketing the property, presenting offers, and negotiating terms

16. A real estate seller must disclose

A seller must disclose all material facts concerning the property's value
or desirability, including any defects that may be present. A seller
cannot make false or misleading statements about the condition of the
property in order to induce a buyer into a purchase. In addition, if a
seller knows of any material defects that are not readily apparent to the
buyer, they must disclose them prior to closing.

17. The upper limit of a property's value usually is determined by the

The cost approach estimates the value of a property by determining its
reproduction or replacement cost, less any depreciation due to physical
deterioration or functional obsolescence. It sets the upper limit or the
"ceiling" of the property's value.

18. Ethics would be described as

Ethics is the moral principles and values that guide a person's behavior
and decisions, taking into account the impact on others and society as a
whole. It goes beyond simply obeying the law, doing what is right,
treating all people fairly and respectfully, and fulfilling agency duties.
Ethics involves critical thinking, examining the consequences of
actions, and taking responsibility for one's choices.

19. Funds which come into the hands of the real estate broker from the
client should be, under the Code of Ethics
Placed in a separate bank account- If these funds are mixed with the
fiduciary's (brokers or agents) own personal funds, it becomes difficult
to determine which funds belong to the client and which belong to the
fiduciary. You have committed "commingling." Commingling is a breach
of trust that can occur in legal situations where funds are entrusted to a
fiduciary or trusted individual

20. Forfeiture of agreed damages in contract is known as

Liquidated damages are a sum of money specified in the contract which
both parties agree will be paid if one party breaches the contract. This
ensures that both parties have the incentive to fulfill their obligations and
 provides an alternative to legal action for enforcing contractual rights.
Mitigated damages refer to reductions of losses incurred by a breaching
party, subordination is when one creditor agrees to accept a lower
priority in repayment than another creditor, and punitive damages are
damages that are intended to punish the wrongdoer instead of providing
compensation.

21. To be enforceable, all real estate sales contracts

must be in writing. Under the Statute of Frauds, all real estate sales
contracts must be in writing to be legally enforceable. Oral agreements
may still create certain obligations but are generally not enforceable for
the sale of real estate. Notarization and witnesses are not required for a
valid contract, although it is recommended that signed documents be
notarized as an added measure of protection. It is also important to
have a witness to the agreement to help prove that it was validly
executed.

22. Losing of right because of failure to assert it promptly is known as

Laches is an equitable doctrine that bars relief if a person unreasonably
delays in pursuing their rights, resulting in prejudice to another party.
This can lead to the loss of those rights because they were not asserted
promptly or timely. Estoppel is also an equitable doctrine whereby people
are prevented from asserting something contrary to what they have
previously said or done. Rescission is an equitable remedy that allows for
the undoing of a contract, while specific performance is an equitable
remedy that requires a party to go through with their end of the bargain.

23. All these events would terminate an agency EXCEPT

death of the corporate officer of the agents principal- Per the Civil Code
of the Philippines, the Agency is extinguished:

✅By the 𝗲𝘅𝗽𝗶𝗿𝗮𝘁𝗶𝗼𝗻 of the period for which the agency was constituted.

✅By the 𝗱𝗲𝗮𝘁𝗵, civil interdiction, insanity, or insolvency of the principal or

of the agent;

✅By the 𝘄𝗶𝘁𝗵𝗱𝗿𝗮𝘄𝗮𝗹 of the agent;

✅By the 𝗮𝗰𝗰𝗼𝗺𝗽𝗹𝗶𝘀𝗵𝗺𝗲𝗻𝘁 of the object or purpose of the agency;

✅By its 𝗿𝗲𝘃𝗼𝗰𝗮𝘁𝗶𝗼𝗻;

✅By the 𝗱𝗶𝘀𝘀𝗼𝗹𝘂𝘁𝗶𝗼𝗻 of the firm or corporation which entrusted or accepted

the agency;

The mnemonic is EDWARD

24. Which is a characteristic of an indefeasible estate?

 Indefeasible estates, or indefeasibility of title, is a legal principle that
prevents someone from having their property interest taken away without
their permission. This means that any agreement or contract made in the
transfer of the estate cannot be denied or canceled unless all the parties
involved agree to it. This makes them much more secure than other types
of real-estate interests, which can be lost upon certain events happening
such as the breach of a contract. Indefeasible estates are not voidable
and are considered to have a reversionary interest, meaning they revert
to the original owner in some circumstances. Therefore, an answer to the
question posed would be A: It cannot be canceled.

25. A salesperson is a broker's

Agent. A salesperson, also known as a broker's agent, is a registered
and accredited individual who represents and acts on behalf of the
broker in the sale of real estate transactions.

26. A fiduciary relationship exists between

A fiduciary relationship is a legal and ethical obligation in which one
party (the fiduciary) is entrusted to act in the best interest of another
party (the beneficiary). This obligation applies to a variety of
relationships, including but not limited to brokers and their principals,
attorneys and their clients, and financial advisors and their clients.
Fiduciary duties include duties of care, loyalty, and disclosure, and
breaches of these duties can result in legal liability for the fiduciary.

27. The process whereby a third person works to resolve a problem but
cannot
impose a decision on the parties is known as
Mediation - Arbitration is a process where a neutral third party (an
arbitrator) reviews the evidence and arguments presented by both sides
and then makes a decision that is legally binding, similar to a judge's
ruling. Mediation, on the other hand, is a process where a neutral third
party (a mediator) works to facilitate a discussion between the parties to
help them reach a mutually agreed-upon solution. The mediator cannot
impose a decision on the parties, but rather helps them to find a solution
that works for both sides. Mediation is often used as a less adversarial
and more collaborative way to resolve disputes, while arbitration is seen
as a more formal process that can provide a final and binding decision.

28. Which of the following is not a basic test for determining whether
or not an item is a fixture?
Cost- The legal test for determining whether an item is a real estate
fixture involves the following.

✅𝗠𝗲𝘁𝗵𝗼𝗱 𝗼𝗳 𝗮𝘁𝘁𝗮𝗰𝗵𝗺𝗲𝗻𝘁 - how securely an item is attached to the property. If

an item is attached in a way that it cannot be easily removed without
 causing damage, then it is likely a fixture.

✅𝗔𝗱𝗮𝗽𝘁𝗮𝘁𝗶𝗼𝗻 𝗼𝗳 𝘁𝗵𝗲 𝗶𝘁𝗲𝗺𝘀 - whether the item has been specifically designed or
customized for use on the property. If an item has been installed to fit a
specific location on the property, it may be considered a fixture.

✅𝗥𝗲𝗹𝗮𝘁𝗶𝗼𝗻𝘀𝗵𝗶𝗽 𝗼𝗳 𝗽𝗮𝗿𝘁𝗶𝗲𝘀 - the nature of the ownership or tenancy of the

property. If a landlord has installed an item, it may be more likely to be
considered a fixture than if a tenant has installed it.

✅𝗜𝗻𝘁𝗲𝗻𝘁 𝗼𝗳 𝘁𝗵𝗲 𝗽𝗮𝗿𝘁𝗶𝗲𝘀 - the purpose for which an item was installed on the
property. If an item was installed with the intent of becoming a
permanent part of the property, then it is likely a fixture.

✅𝗔𝗴𝗿𝗲𝗲𝗺𝗲𝗻𝘁 𝗼𝗳 𝘁𝗵𝗲 𝗽𝗮𝗿𝘁𝗶𝗲𝘀 - any written or verbal agreements between the

parties regarding the item's status as a fixture. If the parties agree that
the item is a fixture, it will likely be considered one

The mnemonic is MARIA.

29. A boundary stream suddenly changed course, resulting in removal

of land from one owner to another. This is an example of ;
Avulsion occurs when a boundary stream suddenly changes course,
resulting in removal of land from one owner to another. This can happen
due to natural causes such as floods or landslides, or due to human
activities such as damming of rivers or digging of lakes.

30. A termination date is required for all contracts below EXCEPT

a(an)
Open Listing does not require a termination date as it is non-
exclusive and a unilateral contract. An owner can cancel the contract if
the broker has not made the sale. All other listings require a termination
date for the contract to be valid

31. Joint tenants have unity of;

time, title, interest, and possession. Joint tenants have unity of
time (all joint tenants acquire the same interest at the same time), title
(all joint tenants hold the same estate from the same grantor), interest
(each tenant has an identical undivided share in the property), and
possession (each tenant has a right to possess the whole property, not
just their proportionate share).

32. The MOST comprehensive method of conveying the result of an

appraisal is the
33. A holographic will is
A holographic will is a will that is handwritten, signed, and dated by
the testator (the person making the will). The terms of the holographic
will must be in the handwriting of the testator. It does not need to be
typed, witnessed, or notarized in order for it to be valid. It is important
that when creating a holographic will, the testator make sure all of the
necessary elements are present in order to ensure its validity.

34. The highest form of ownership is the

Fee Simple Absolute, which is the highest form of ownership in real
estate. This means that an individual or entity has complete and absolute
ownership over a particular parcel of real estate. The fee simple absolute
owner holds all legal rights to sell, lease, transfer, or use the land as
desired. This type of ownership does not expire and is not subject to any
conditions or time limitations. This type of ownership may also include
the right to transfer the property during one's lifetime, as well as upon
death.

Sole Ownership - easiest form of ownership, as it is exactly as it sounds.

One person has complete ownership of the asset in question. The owner
in this case can sell, give or donate the asset to anybody without worries
of claims from others

Community property - also called community of property is a marital

property regime whereby property acquired during a marriage is
considered to be owned by both spouses and subject to division between
them in the event of divorce.

Joint tenancy - is a legal term for an arrangement that defines the

ownership interests and rights among two or more co-owners of real
property. In a joint tenancy, two or more people own property together,
each with equal rights and responsibilities.

Tenancy - in common in real estate is an arrangement in which two or

more people share ownership rights of a property . When one of them dies,
the property passes to that tenant's beneficiaries or heirs. Furthermore,
each co-owner may control an equal or different percentage, or share, of
the total property.

Tenancy by entirety - (TBE) is a type of ownership that allows married

couples to hold equal interest in a property as well as survivorship rights,
which keep their property out of probate. It's not 50/50 ownership . With
 TBE, both spouses own 100% of the property.

35. Reliance on previous decisions is best described as

When discussing the reliance on previous decisions, it is important
to note that this concept is commonly referred to as "stare decisis" in
legal terminology. Stare decisis is a Latin term that translates to "to
stand by things decided" and is a fundamental principle in the common
law system. Simply put, it means that cases with similar facts and legal
issues should be decided in the same way as previous cases that have
already been decided. This practice ensures consistency in the law and
allows for predictability and stability in the legal system.

36. A fee simple estate that may be lost when some act is performed is
a
Fee simple on condition subsequent. A fee simple on condition
subsequent is an estate that can be lost if the owner does not fulfill a
certain condition, such as maintaining the property in good repair or
paying taxes and insurance. If the condition is broken, then the title
passes to a third party automatically without any legal proceedings. This
type of ownership has the potential to be more profitable and secure, but
also carries risks as it can quickly revert back to the third party. It is
important for owners to understand the requirements of their particular
estate before taking any action.

37. A dual agent MUST

A dual agent's primary responsibility is to represent both the buyer
and the seller in a real estate transaction while ensuring full disclosure
and confidentiality. However, a dual agent must not disclose confidential
information about either party to the other and must not try to influence
the negotiations or outcomes in favor of one party over the other.
Additionally, a dual agent should obtain written consent from both parties
and ensure that both parties clearly understand their roles and
responsibilities in the transaction.

38. The most useful method of describing a subdivision parcel is

probably the
The most common and widely used method of describing a
subdivision parcel is the lot and block system. This system divides
properties into sections or lots with each section having its own unique
number or identifier. The lot and block system utilizes straight lines to
divide real estate property, which makes it easier to identify the location
of any individual lot within a subdivision. Additionally, this system also
allows for easier referencing and recording of transactions involving the
subdivided parcels. The lot and block system is also known as the plat or
platted method of describing a subdivision parcel.

39. A township consists of how many sections?

 A township is a geographic area measuring 6 square miles,
typically divided into 36 sections of 1 square mile each. Each section is
further divided into four quarter-sections that measure 160 acres each.
Township lines are used for land surveys and legal descriptions of
property in the United States and Canada.

40. A commission is ordinarily earned by a broker when*

the broker procures a ready, willing, and able buyer - A commission
is a compensation earned by a broker for their role in facilitating a
successful transaction between a seller and a buyer. In order for a
commission to be earned, the broker must have procured a buyer who is
ready, willing, and able to complete the purchase. This means that the
buyer must have the financial means, motivation, and intention to follow
through with the transaction. The commission amount is typically based
on a percentage of the total sale price and is paid by the seller.
41. The location of a house on its site is called its
orientation. This is because orientation refers to the house's
placement and alignment on its lot, such as whether it faces north, south,
east or west. It also can refer to how rooms are arranged in relation to
one another in terms of their position within the home. The floor plan
outlines the layout of each floor of a house, but it does not give any
information about the house's orientation on its lot. View is generally
used to describe an outside perspective of a house or object, while
architecture refers to the design and construction of a building or
structure. Thus, orientation is the most accurate answer for this
question.

42. The vertical supports in a wood frame house are called

Studs are the vertical supports in a wood frame house that run from
the bottom plate to the top plate and support the floor joists, walls, and
roof of the house. They also provide structural integrity by tying together
all other components of the frame.

43. When both parties agree to cancel a contract, they effect a.

Recission is the legal termination of an agreement and the release
of both parties from any further obligations to each other. It essentially
returns both parties to their pre-contractual positions, as if the contract
had never existed. In other words, both parties will no longer be bound by
the terms of the contract and are released from any further obligations to
each other. As such, recission is often used when a contract is found to
be invalid or void for some reason. It can also be used when both parties
agree to cancel the contract voluntarily. In either case, recission
effectively terminates the agreement and releases both parties from any
further legal liability under the terms of the contract

44. A person who dies without a will dies

When a person dies without a will, they are said to have died intestate,
 meaning that their estate will be divided according to state law instead
of according to their own wishes. An executor may still be appointed by
the court in order to administer the estate, but this would not be
necessary if there had been a will. Eminent domain is the power of the
government to take private property for public use, a concept unrelated
to dying without a will.

45. Buyers MUST disclose to sellers

Although sellers have a duty of disclosure, buyers do not have a
corresponding duty to disclose material facts they know, including their
reasons for purchasing.

46. An agency created by a principal who intentionally, or by want of

ordinary care, causes a third person to believe another to be his or her
agent who is not really employed by him or would be a(n)
The term used to describe this situation is ostensible agency. This
occurs when a principal's actions or lack of action lead a third party to
believe that an individual is authorized to act on behalf of the principal,
even if they are not actually employed by the principal as an agent. The
principal may be held liable for the actions of the ostensible agent as
long as the third party reasonably believed the individual was authorized
to act on the principal's behalf.

47. Exaggerating a property's value or desirability

Exaggerating a property's value or desirability is never permitted
and could be illegal. Puffing is defined as the exaggeration of qualities,
such as the size, condition, or desirability of a real estate property for
sale. While this practice may occasionally result in more attention to the
listing, it is considered unethical and may constitute fraud. In some
cases, it could be treated as a criminal offense. For this reason, real
estate professionals should always strive to provide accurate information
regarding the property they are marketing.

48. Which estate is of definite duration?

An estate at will - An estate for years is of definite duration. This
type of estate lasts for a set amount of time that has been predetermined
by the parties involved in the agreement. The length of the estate can be
determined through an agreement, or it may be determined by a statute.
The period usually begins and ends on specific dates that are agreed
upon by the parties

49. A house is appraised at Php 11,000,000, even though it cost Php

12,000,000 to build 2 years ago. Which factor could NOT have contributed
to the loss of value?
Regression, Functional Obsolescence, and Supply and demand are
all basic principles that could affect property value negatively.
Gentrification is the renovation of rundown properties in neighborhoods
that are in decline in value. Gentrification increases value of properties.
50. Real property is NOT
Real property is land and all appurtenances to the land, such as
buildings, fixtures, streams, minerals, etc. It does not include movable
property such as furniture or automobiles.
 Real estate is a term used to refer to real property as well as the
business of dealing with it.

51. In the course of sale, the seller told the buyer there was an
easement to the property over other land the seller owned. The SELLER
cannot deny the easement, because of
Estoppel, also known as Promissory estoppel, is a legal principle
that stops someone from going back on their word or denying something
they have previously stated. In this case, the seller cannot deny the
easement because of the principle of estoppel. The other three options
listed are incorrect in this particular scenario. Prescriptive use refers to
the gaining of rights over a property through long-term and continuous
use, while the statute of frauds requires certain contracts be in writing to
be enforceable, and necessity deals with people’s need for access to land
they do not own.

52. The rate of commission for the sale of real property is set by
agreement between parties - The amount and rate of real estate
commissions is not fixed by law; rather, each broker sets their own
commission rate, which may be negotiable between the seller and
broker.

53. The remedy in which a person is ordered to cease and desist from
an activity is known as;
The remedy of cease and desist refers to a legal order or injunction
that requires an individual or entity to stop engaging in a specific activity
immediately. This remedy is typically used in cases where an individual
or company is found to violate laws, regulations, or contractual
obligations. It is a powerful tool used by courts to prevent further harm or
damage and preserve the rights of those wronged.

The remedy of cease and desist is commonly used in cases of intellectual

property infringement. For example, suppose a company uses a
trademark or copyrighted material without permission. In that case, the
intellectual property owner can seek a cease and desist order to prevent
further unauthorized use. This order prohibits the infringing party from
using the intellectual property in question and can be enforced through
the court system.

54. The right to use adjacent land to go to and from a roadway is a(n)
An easement is the right to use adjacent land for a specific
 purpose, such as going to and from a roadway. It can also be used for
other purposes, such as obtaining access to utilities or allowing public
passage through private property.

55. Juan Mariano owns a vacant lot and employs an appraiser to

determine the property's;
Highest and best use – The appraiser will use their knowledge of
local real estate markets to evaluate the property’s growth potential in
terms of appreciation rate, population density, and other factors. They
will also assess the reproduction cost of replicating a similar structure
on the vacant lot with current material and labor costs. Furthermore, they
will estimate how much it would cost to replace existing structures on
the lot with a similar building of comparable quality. The most
appropriate approach that an appraiser will use is the highest and best
use of the property. It is done by considering factors such as zoning
regulations, current market trends, and cash flow potential for various
uses. This analysis will be used to calculate an estimated value for the
vacant lot.

56. Zoning ordinances are an exercise of government's?

Police Power. Zoning ordinances are a form of government
regulation that are passed in order to protect public health, safety, and
welfare as well as maintain community aesthetics. This type of power
falls under the legal concept known as police power, which grants
authority to state and local governments to enact laws for the purpose of
regulating behavior deemed necessary for public health, safety, and
welfare. Laws created for this purpose are also called police regulations
or police measures.

The power of eminent domain gives government the right to take private
property for public use without the owner's consent as long as they are
provided with fair compensation. This differs from zoning ordinances
which regulate development, land use, and building construction instead
of taking control of private property.

Government also has the power to regulate land use in order to further
public policy goals such as protecting natural resources and preserving
historic sites. These regulations are typically enacted through zoning
ordinances, building codes, subdivision regulations, and other land use
laws.

57. The MOST commonly used form of real estate listing agreement is
the
Exclusive authorization and right to sell listing. This type of
agreement gives one real estate broker the right to represent the seller in
marketing their property, while also allowing them to find a buyer without
having to share the commission with other brokers. The broker retains all
 rights; they are not obligated to pay anyone else a commission unless
they bring a buyer to the table. This type of agreement gives the seller a
greater chance of selling their property quickly and for the most money
possible. It also makes it easier for buyers to work with one broker to
find their ideal home.

58. Mr. Maceda decided to sell his lot for P5,500,000.00 although the
broker knew it can be sold for P7,000,000.00 and the zonal value is
P6,500,000.00. What price should the broker offer to sell the house?
According to our code of ethics, it is crucial to follow the listing
agreement when selling a property. The seller has decided to set the
price of the house at Php 5,500,000.00, and therefore, the broker should
offer to sell it at that price. Even if the broker knows that the house could
be sold at a higher cost, it is imperative to follow the seller's instructions.
If the seller wants to sell the property at a lower price, the broker should
still comply with their request.

59. Absolute control, as well as absolute liability, belongs to a;

Sole Proprietor. As a sole proprietor, you have complete control
over your business and are also held liable for any of its errors or debts.
You are responsible for filing taxes on the profits earned from the
business, as well as reporting any losses incurred by it. The other options
do not carry this same level of responsibility.

60. Vacancy and collection losses are subtracted from potential gross
income to derive
Effective Gross Income (EGI) is a measure of an income-producing
property's potential to generate revenue after allowing for vacancies and
collection loss. Capitalization rate (CAP Rate) is the ratio of Net
Operating Income divided by the current market value of a real estate
investment property. Net Operating Income (NOI) is derived after
deducting Operating Expenses (OE) from the Effective Gross Income.
Gross Operating Income is the Potential Gross Income (PGI) - the income
of the property at 100% occupancy.

Real Estate Royal Brains Showdown

Quiz Bee – 60
December 04, 2023
 1. Which would be classified as personal property?
An oil lease for ten years
Feedback
Mineral, oil, and gas rights are considered real property. An oil lease that
extends indefinitely is also classified as real property, whereas an oil
lease for a specific period is considered personal property.

2. Property taxes are ad valorem taxes, which means that they are
charged in relation to the value of the property taxes
Feedback
Property taxes are ad valorem taxes, which means that they are based on
the value of a property and levied annually by local governments.
Property taxes can be either real estate (land and buildings,
improvements, machinery). The amount of tax owed is determined by
multiplying the current assessed value of the property with a designated
tax rate.

3. Prorations at closing on amounts other than interest payments usually

are based on
a 30-day month
Feedback
30-day month. The most common prorations at closing involve real estate
taxes, homeowners' association dues, real estate insurances, rent, and
landlord-paid utilities such as water or sewer services, and electricity is
a 30-day month. Regardless of the number of days in each month, it is
assumed to be 30 days.

4. Which is NOT as specific lien?

Judgement lien
Feedback
General Lien: A claim against some or all of a debtor's property; any
property may be sold to satisfy the debt.
Specific Lien – A claim against a specific piece of property; only that
individual property may be used to collect against the debt.
A judgment lien is a general lien, not a specific lien.

5. Zoning that prohibits adult entertainment within an area is

exclusionary zoning
Feedback
Exclusionary zoning prohibits certain types of activities or land uses from
taking place in an area, such as adult entertainment. In contrast,
inclusionary zoning encourages certain types of activities or land uses by
providing incentives and allowances for their development. Downzoning
is the process of changing a property's zoning designation to allow fewer
uses than previously allowed. Illegal zoning does not exist, as all zoning
must be compliant with local and state laws.

6. When flood conditions cause land to be washed away, this is known as:
 avulsion
Feedback
Avulsion occurs when a river or stream suddenly erodes its banks, taking
away the soil and land that had been there before. This process can be
caused by an especially strong surge of water from heavy rainfall or from
a natural disaster such as an earthquake. In some cases, large amounts
of sediment and debris can also be carried away, causing further
destruction downstream or in neighboring areas. Avulsion can also occur
when a river changes its course due to an obstruction or human
intervention. In this case, the soil and land that was previously there are
suddenly cut off from the original area. This is a particularly damaging
form of flooding, as it can cause large-scale displacement and loss of
property.

7. An agreement whereby one party to a contract is discharged, and another

party becomes obligated is a(n)
Novation
Feedback
The term for this type of agreement is novation. It involves the
substitution of a new party who assumes the rights and obligations of the
original party to the contract. Novation requires the consent of all parties
involved and results in the original party being fully released from their
obligations.

8. A mechanic's lien can be filed by a(n)

laborer
Feedback
 A mechanic's lien is a legal tool that allows an unpaid laborer,
such as a contractor, subcontractor, or material supplier, to place
a lien on the property of the person who hired them in order to
secure payment for their services. The lien gives the laborer the
right to have their debt paid before anyone else, including the
owner of the property. The lien remains in effect until the debt is
paid or released by court order. It also serves as a deterrent for
non-payment, since it could interfere with the ability to sell or
refinance the property until all debts have been settled. Tenants,
advertisers and customers are not eligible to file a mechanic's
lien, as they are not contractors or hired laborers.
9. Money awarded to an injured person for damages received is called
compensatory damages
Feedback
 Compensatory damages are intended to make the injured person
whole by placing them in the same financial position they were in
before the harm occurred. This type of award can include
economic losses (such as medical bills, lost wages, and property
damage) as well as non-economic losses (such as pain and
suffering). Exemplary damages, by comparison, are intended to
punish the wrongdoer and are usually only available in cases
 involving intentional harm or gross negligence. Nominal damages
are a small sum of money awarded when there is an injury but no
real loss. Specific performance is a court order requiring someone
to do something they have promised to do (or refrain from doing
something). This type of court order is rarely used in civil cases
and usually only when money damages would not be sufficient to
compensate the injured party.
10. The power of the state to take private property for public use is
called
eminent domain
Feedback
Eminent domain is the power of a government or its agent to take private
property for public use, with or without the consent of the owner, and
with just compensation being paid to the owner. It is an inherent
attribute of sovereignty and necessary for providing public goods, such
as roads, utilities, schools, and hospitals.

11. Someone appointed to carry out a particular transaction is a

special agent
Feedback
A special agent is appointed to carry out a particular transaction as
opposed to a general agent, which is someone who carries out a variety
of tasks for their principal. Special agents are usually appointed for tasks
that require specialized skills or knowledge that the principal does not
have. A secret agent is someone who works covertly in order to collect
information or conduct activities on behalf of the principal, while a
subagent is an individual or organization appointed by an agent to carry
out some of their duties and responsibilities.

12. I told prospective purchasers, “You will love living in this neighborhood.”
After experiencing problems with their new neighbors, they sued the
broker for this false statement. A court would likely determine the
statement was
Puffing
Feedback
The statement made by the broker is likely a puffing because it is a
statement of opinion. Puffing is the use of exaggerated or vague
statements to promote a property. While it may be optimistic, it is not a
statement of fact or a false promise, which would be regarded as a
misrepresentation. Misrepresentation is the intentional or unintentional
misstatement or concealment of a material fact. It would not be
considered criminal fraud as there was likely no intent to deceive but
rather a subjective opinion expressed by the broker.

13. The sun's arc in the sky is highest in;

summer
Feedback
The correct answer is a. summer. During the summer, the sun rises
 earlier and sets later in the day as its arc across the sky is higher than in
other seasons. This results in more daylight hours and warmer weather
due to increased solar radiation reaching Earth's surface. In contrast,
during winter, the sun's arc is lower and there are fewer daylight hours
with cooler temperatures. Thus, summer is the season with the highest
sun's arc in the sky.

14. The agent owes the principal the duty of

loyalty
Feedback
In a fiduciary relationship, the agent owes the principal several duties.
These include having loyalty to the principal, being willing to disclose
and account for all monetary transactions, using extraordinary care and
skill in carrying out their duties, and avoiding dual representation of any
conflicting interests. It is important that agents uphold these standards
so that principals can trust them to carry out their responsibilities
faithfully. The most important quality that an agent owes the principal is
loyalty.

15. The relationship that exists between a broker and an owner under a
listing is most likely a(n)
Special agency
Feedback
The relationship between a broker and an owner under a listing is best
described as a special agency. This means that the broker has been
granted limited authority to act on behalf of the owner in specific tasks
related to the sale or lease of the property. The broker is not an
employee of the owner, but rather a contracted agent with fiduciary
duties to act in the best interest of the owner. This relationship is
typically governed by a listing agreement and includes obligations such
as marketing the property, presenting offers, and negotiating terms

16. A real estate seller must disclose

material facts concerning the property's value or desirability
Feedback
A seller must disclose all material facts concerning the property's value
or desirability, including any defects that may be present. A seller cannot
make false or misleading statements about the condition of the property
in order to induce a buyer into a purchase. In addition, if a seller knows
of any material defects that are not readily apparent to the buyer, they
must disclose them prior to closing.

17. The upper limit of a property's value usually is determined by the

cost approach
Feedback
The cost approach estimates the value of a property by determining its
reproduction or replacement cost, less any depreciation due to physical
 deterioration or functional obsolescence. It sets the upper limit or the
"ceiling" of the property's value.

18. Ethics would be described as

Doing what is right
Feedback
Ethics is the moral principles and values that guide a person's behavior
and decisions, taking into account the impact on others and society as a
whole. It goes beyond simply obeying the law, doing what is right,
treating all people fairly and respectfully, and fulfilling agency duties.
Ethics involves critical thinking, examining the consequences of actions,
and taking responsibility for one's choices.

19. Funds which come into the hands of the real estate broker from the
client should be, under the Code of Ethics,
Deposited in the broker's account
Feedback
If these funds are mixed with the fiduciary's (brokers or agents) own
personal funds, it becomes difficult to determine which funds belong to
the client and which belong to the fiduciary. You have committed
"commingling." Commingling is a breach of trust that can occur in legal
situations where funds are entrusted to a fiduciary or trusted individual

20. Forfeiture of agreed damages in contract is known as

Liquidated damages
Feedback
Liquidated damages are a sum of money specified in the contract which
both parties agree will be paid if one party breaches the contract. This
ensures that both parties have an incentive to fulfil their obligations and
provides an alternative to legal action for enforcing contractual rights.
Mitigated damages refer to reductions of losses incurred by a breaching
party, subordination is when one creditor agrees to accept a lower
priority in repayment than another creditor, and punitive damages are
damages that are intended to punish the wrongdoer instead of providing
compensation.

21. To be enforceable, all real estate sales

must be in writing
Feedback
Under the Statute of Frauds, all real estate sales contracts must be in
writing to be legally enforceable. Oral agreements may still create
certain obligations but are generally not enforceable for the sale of real
estate. Notarization and witnessing are not required for a valid contract,
although it is recommended that signed documents be notarized as an
added measure of protection. It is also important to have a witness to the
agreement to help prove that it was validly executed.

22. Losing of right because of failure to assert it promptly is known as

 Laches
Feedback
The correct answer is c. Laches. Laches is an equitable doctrine that
bars relief if a person unreasonably delays in pursuing their rights,
resulting in prejudice to another party. This can lead to the loss of those
rights because they were not asserted promptly or timely. Estoppel is
also an equitable doctrine whereby people are prevented from asserting
something contrary to what they have previously said or done. Rescission
is an equitable remedy that allows for the undoing of a contract, while
specific performance is an equitable remedy that requires a party to go
through with their end of the bargain.

23. All these events would terminate an agency EXCEPT

death of the corporate officer of the agent principal
Feedback

Per the Civil Code of the Philippines, the Agency is extinguished:

✅By the 𝗲𝘅𝗽𝗶𝗿𝗮𝘁𝗶𝗼𝗻 of the period for which the agency was constituted.

✅By the 𝗱𝗲𝗮𝘁𝗵, civil interdiction, insanity, or insolvency of the principal or

of the agent;

✅By the 𝘄𝗶𝘁𝗵𝗱𝗿𝗮𝘄𝗮𝗹 of the agent;

✅By the 𝗮𝗰𝗰𝗼𝗺𝗽𝗹𝗶𝘀𝗵𝗺𝗲𝗻𝘁 of the object or purpose of the agency;

✅By its 𝗿𝗲𝘃𝗼𝗰𝗮𝘁𝗶𝗼𝗻;

✅By the 𝗱𝗶𝘀𝘀𝗼𝗹𝘂𝘁𝗶𝗼𝗻 of the firm or corporation which entrusted or accepted

the agency;

The mnemonic is EDWARD

24. Which is a characteristic of an indefeasible estate?

It cannot be canceled
Feedback
Indefeasible estates, or indefeasibility of title, is a legal principle that
prevents someone from having their property interest taken away without
their permission. This means that any agreement or contract made in the
transfer of the estate cannot be denied or canceled unless all the parties
involved agree to it. This makes them much more secure than other types
of real-estate interests, which can be lost upon certain events happening
such as the breach of a contract. Indefeasible estates are not voidable
and are considered to have a reversionary interest, meaning they revert
to the original owner in some circumstances. Therefore, an answer to the
question posed would be A: It cannot be canceled.

25. A salesperson is a broker's

agent
 Feedback
The correct answer is b. Agent. A salesperson, also known as a broker's
agent, is a registered and accredited individual who represents and acts
on behalf of the broker in the sale of real estate transactions.

26. A fiduciary relationship exist between

A broker and his or her principal
Feedback
A fiduciary relationship is a legal and ethical obligation in which one
party (the fiduciary) is entrusted to act in the best interest of another
party (the beneficiary). This obligation applies to a variety of
relationships, including but not limited to brokers and their principals,
attorneys and their clients, and financial advisors and their clients.
Fiduciary duties include duties of care, loyalty, and disclosure, and
breaches of these duties can result in legal liability for the fiduciary.

27. The process whereby a third person works to resolve a problem but
cannot
impose a decision on the parties is known as
Mediation
Feedback
Arbitration is a process where a neutral third party (an arbitrator)
reviews the evidence and arguments presented by both sides and then
makes a decision that is legally binding, similar to a judge's ruling.
Mediation, on the other hand, is a process where a neutral third party (a
mediator) works to facilitate a discussion between the parties to help
them reach a mutually agreed-upon solution. The mediator cannot
impose a decision on the parties, but rather helps them to find a solution
that works for both sides. Mediation is often used as a less adversarial
and more collaborative way to resolve disputes, while arbitration is seen
as a more formal process that can provide a final and binding decision.

28. Which of the following is not a basic test for determining whether
or not an item is a fixture?
Cost
Feedback

Cost- The legal test for determining whether an item is a real estate
fixture involves the following.

✅𝗠𝗲𝘁𝗵𝗼𝗱 𝗼𝗳 𝗮𝘁𝘁𝗮𝗰𝗵𝗺𝗲𝗻𝘁 - how securely an item is attached to the property. If

an item is attached in a way that it cannot be easily removed without
causing damage, then it is likely a fixture.

✅𝗔𝗱𝗮𝗽𝘁𝗮𝘁𝗶𝗼𝗻 𝗼𝗳 𝘁𝗵𝗲 𝗶𝘁𝗲𝗺𝘀 - whether the item has been specifically designed or
customized for use on the property. If an item has been installed to fit a
specific location on the property, it may be considered a fixture.
 ✅𝗥𝗲𝗹𝗮𝘁𝗶𝗼𝗻𝘀𝗵𝗶𝗽 𝗼𝗳 𝗽𝗮𝗿𝘁𝗶𝗲𝘀 - the nature of the ownership or tenancy of the
property. If a landlord has installed an item, it may be more likely to be
considered a fixture than if a tenant has installed it.

✅𝗜𝗻𝘁𝗲𝗻𝘁 𝗼𝗳 𝘁𝗵𝗲 𝗽𝗮𝗿𝘁𝗶𝗲𝘀 - the purpose for which an item was installed on the
property. If an item was installed with the intent of becoming a
permanent part of the property, then it is likely a fixture.

✅𝗔𝗴𝗿𝗲𝗲𝗺𝗲𝗻𝘁 𝗼𝗳 𝘁𝗵𝗲 𝗽𝗮𝗿𝘁𝗶𝗲𝘀 - any written or verbal agreements between the

parties regarding the item's status as a fixture. If the parties agree that
the item is a fixture, it will likely be considered one

The mnemonic is MARIA.

29. A boundary stream suddenly changed course, resulting in removal

of land from one owner to another. This is an example of ;
avulsion
Feedback
Avulsion occurs when a boundary stream suddenly changes course,
resulting in removal of land from one owner to another. This can happen
due to natural causes such as floods or landslides, or due to human
activities such as damming of rivers or digging of lakes.

30. A termination date is required for all contracts below EXCEPT

a(an)
a. open listing
Feedback
The correct answer is A. Open Listing does not require a termination date
as it is non-exclusive and a unilateral contract. An owner can cancel the
contract if the broker has not made the sale. All other listings require a
termination date for the contract to be valid

31. Joint tenants have unity of;

time, title, interest, and possession
Feedback
Answer: d. time, title, interest, and possession. Joint tenants have unity
of time (all joint tenants acquire the same interest at the same time), title
(all joint tenants hold the same estate from the same grantor), interest
(each tenant has an identical undivided share in the property), and
possession (each tenant has a right to possess the whole property, not
just their proportionate share).

The mnemonic is TTIP - Time, Title, Interest, and Possession

32. The MOST comprehensive method of conveying the result of an

appraisal is the
a. self-contained report
 Feedback
The most comprehensive method of conveying the result of an appraisal
is a self-contained report, also known as a narrative or conventional
report. This type of report includes all relevant information about the
appraised property and provides an assessment of its value. It typically
includes an analysis of comparable sales, market trends, cost approach
data, income potential, physical characteristics, zoning regulations, and
other data that provide evidence of the property's value. Additionally, a
self-contained report usually includes an explanation or discussion of the
methodology used to arrive at the appraised value. This is in contrast to
limited use reports such as forms or summaries which may contain fewer
details about comparable sales, market trends, etc. A restricted use
report is also similar to a self-contained report but includes confidential
information that is not disclosed to the client. This type of report could
be used for litigation purposes, tax appeals, or any other purposes where
additional confidential data would provide more accurate results.

33. A holographic will is

c. handwritten
Feedback
A holographic will is a will that is handwritten, signed, and dated by the
testator (the person making the will). The terms of the holographic will
must be in the handwriting of the testator. It does not need to be typed,
witnessed, or notarized in order for it to be valid. It is important that
when creating a holographic will, the testator make sure all of the
necessary elements are present in order to ensure its validity.

34. The highest form of ownership is the

fee simple absolute
Feedback
The correct answer is c. Fee Simple Absolute, which is the highest form
of ownership in real estate. This means that an individual or entity has
complete and absolute ownership over a particular parcel of real estate.
The fee simple absolute owner holds all legal rights to sell, lease,
transfer, or use the land as desired. This type of ownership does not
expire and is not subject to any conditions or time limitations. This type
of ownership may also include the right to transfer the property during
one's lifetime, as well as upon death.

35. Reliance on previous decisions is best described as

stare decisis
Feedback
When discussing the reliance on previous decisions, it is important to
note that this concept is commonly referred to as "stare decisis" in legal
terminology. Stare decisis is a Latin term that translates to "to stand by
things decided" and is a fundamental principle in the common law
system. Simply put, it means that cases with similar facts and legal
issues should be decided in the same way as previous cases that have
already been decided. This practice ensures consistency in the law and
 allows for predictability and stability in the legal system.

36. A fee simple estate that may be lost when some act is performed is
a
fee simple on condition subsequent
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A fee simple on condition subsequent is an estate that can be lost if the
owner does not fulfill a certain condition, such as maintaining the
property in good repair or paying taxes and insurance. If the condition is
broken, then the title passes to a third party automatically without any
legal proceedings. This type of ownership has the potential to be more
profitable and secure, but also carries risks as it can quickly revert back
to the third party. It is important for owners to understand the
requirements of their particular estate before taking any action.

37. A dual agent MUST

Do none of these
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A dual agent's primary responsibility is to represent both the buyer and
the seller in a real estate transaction while ensuring full disclosure and
confidentiality. However, a dual agent must not disclose confidential
information about either party to the other and must not try to influence
the negotiations or outcomes in favor of one party over the other.
Additionally, a dual agent should obtain written consent from both parties
and ensure that both parties clearly understand their roles and
responsibilities in the transaction.

38. The most useful method of describing a subdivision parcel is

probably the
lot and block system
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The most common and widely used method of describing a subdivision
parcel is the lot and block system. This system divides properties into
sections or lots with each section having its own unique number or
identifier. The lot and block system utilizes straight lines to divide real
estate property, which makes it easier to identify the location of any
individual lot within a subdivision. Additionally, this system also allows
for easier referencing and recording of transactions involving the
subdivided parcels. The lot and block system is also known as the plat or
platted method of describing a subdivision parcel.

39. A township consists of how many sections?

36
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Answer: d. 36. A township is a geographic area measuring 6 square
miles, typically divided into 36 sections of 1 square mile each. Each
section is further divided into four quarter-sections that measure 160
acres each. Township lines are used for land surveys and legal
 descriptions of property in the United States and Canada.

40. A commission is ordinarily earned by a broker when*

a. the title has been transferred to the buyer
b. the broker procures a ready, willing, and able buyer
c. the buyer pays a down payment
d. the buyer pays the full payment
Feedback
A commission is a compensation earned by a broker for their role in
facilitating a successful transaction between a seller and a buyer. In order
for a commission to be earned, the broker must have procured a buyer
who is ready, willing, and able to complete the purchase. This means that
the buyer must have the financial means, motivation, and intention to
follow through with the transaction. The commission amount is
typically based on a percentage of the total sale price and is paid by the
seller.

41. The location of a house on its site is called its

orientation
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The correct answer is c. orientation. This is because orientation refers to
the house's placement and alignment on its lot, such as whether it faces
north, south, east or west. It also can refer to how rooms are arranged
in relation to one another in terms of their position within the home.
The floor plan outlines the layout of each floor of a house, but it does not
give any information about the house's orientation on its lot. View is
generally used to describe an outside perspective of a house or object,
while architecture refers to the design and construction of a building or
structure. Thus, orientation is the most accurate answer for this
question.

42. The vertical supports in a wood frame house are called

studs
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The correct answer is a. studs. Studs are the vertical supports in a wood
frame house that run from the bottom plate to the top plate and support the
floor joists, walls, and roof of the house. They also provide structural
integrity by tying together all other components of the frame.

43. When both parties agree to cancel a contract, they effect a.

a. recission
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The correct answer is a. recission. Recission is the legal termination of
an agreement and the release of both parties from any further obligations
to each other. It essentially returns both parties to their pre-contractual
positions, as if the contract had never existed. In other words, both parties
will no longer be bound by the terms of the contract and are released from
any further obligations to each other. As such, recission is often used when a
contract is found to be invalid or void for some reason. It can also be used
when both parties agree to cancel the contract voluntarily. In either case,
recission effectively terminates the agreement and releases both parties
from any further legal liability under the terms of the contract

44. A person who dies without a will dies

intestate
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The correct answer is b. Intestate. When a person dies without a will,
they are said to have died intestate, meaning that their estate will be divided
according to state law instead of according to their own wishes. An executor
may still be appointed by the court in order to administer the estate, but this
would not be necessary if there had been a will. Eminent domain is the
power of the government to take private property for public use, a concept
unrelated to dying without a will.

45. Buyers MUST disclose to sellers

None of these.
Feedback
Although sellers have a duty of disclosure, buyers do not have a
corresponding duty to disclose material facts they know, including their
reasons for purchasing.

46. An agency created by a principal who intentionally, or by want of

ordinary care, causes a third person to believe another to be his or her
agent who is not really employed by him or would be a(n)
Ostensible agency
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The term used to describe this situation is ostensible agency. This
occurs when a principal's actions or lack of action lead a third party to
believe that an individual is authorized to act on behalf of the principal,
even if they are not actually employed by the principal as an agent. The
principal may be held liable for the actions of the ostensible agent as long as
the third party reasonably believed the individual was authorized to act on
the principal's behalf

47. Exaggerating a property's value or desirability

is never permitted and could be illegal
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The correct answer is d. Exaggerating a property's value or desirability is
never permitted and could be illegal. Puffing is defined as the exaggeration of
qualities, such as the size, condition, or desirability of a real estate property
for sale. While this practice may occasionally result in more attention to the
listing, it is considered unethical and may constitute fraud. In some cases,
it could be treated as a criminal offence. For this reason, real estate
professionals should always strive to provide accurate information
regarding the property they are marketing.
 48. Which estate is of definite duration?
An estate for years
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Answer: B. An estate for years is of definite duration. This type of estate
lasts for a set amount of time that has been predetermined by the parties
involved in the agreement. The length of the estate can be determined through
an agreement, or it may be determined by a statute. The period usually begins
and ends on specific dates that are agreed upon by the parties

49. A house is appraised at Php 11,000,000, even though it cost Php

12,000,000 to build 2 years ago. Which factor could NOT have contributed
to the loss of value?
Gentrification
Feedback
Regression, Functional Obsolescence, and Supply and demand are all
basic principles that could affect property value negatively. Gentrification is
the renovation of rundown properties in neighborhoods that are in decline
in value. Gentrification increases value of properties.

50. Real property is NOT

movable property
Feedback
Real property is land and all appurtenances to the land, such as
buildings, fixtures, streams, minerals, etc. It does not include movable
property such as furniture or automobiles. Real estate is a term used to refer to
real property as well as the business of dealing with it.

51. In the course of sale, the seller told the buyer there was an
easement to the property over other land the seller owned. The SELLER
cannot deny the easement, because of
estoppel
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The correct answer is b. Estoppel. Estoppel, also known as Promissory
estoppel, is a legal principle that stops someone from going back on their
word or denying something they have previously stated. In this case, the
seller cannot deny the easement because of the principle of estoppel. The
other three options listed are incorrect in this particular scenario. Prescriptive
use refers to the gaining of rights over a property through long-term and
continuous use, while the statute of frauds requires certain contracts be in
writing to be enforceable, and necessity deals with people’s need for
access to land they do not own.

52. The rate of commission for the sale of real property is set by
agreement between parties
Feedback
The amount and rate of real estate commissions is not fixed by law;
rather, each broker sets their own commission rate, which may be
negotiable between the seller and broker.
 53. The remedy in which a person is ordered to cease and desist from
an activity is known as;
Injunction

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The remedy of cease and desist refers to a legal order or injunction that
requires an individual or entity to stop engaging in a specific activity
immediately. This remedy is typically used in cases where an individual or
company is found to violate laws, regulations, or contractual obligations. It
is a powerful tool used by courts to prevent further harm or damage and
preserve the rights of those wronged.

The remedy of cease and desist is commonly used in cases of intellectual

property infringement. For example, suppose a company uses a trademark or
copyrighted material without permission. In that case, the intellectual
property owner can seek a cease and desist order to prevent further
unauthorized use. This order prohibits the infringing party from using the
intellectual property in question and can be enforced through the court
system.

54. The right to use adjacent land to go to and from a roadway is a(n)
easement
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Answer: B. Easement. An easement is the right to use adjacent land for a
specific purpose, such as going to and from a roadway. It can also be used for
other purposes, such as obtaining access to utilities or allowing public
passage through private property.

55. Juan Mariano owns a vacant lot and employs an appraiser to

determine the property's;
highest and best use

Feedback
The appraiser will use their knowledge of local real estate markets to
evaluate the property's growth potential in terms of appreciation rate,
population density, and other factors. They will also assess the reproduction
cost of replicating a similar structure on the vacant lot with current
material and labor costs. Furthermore, they will estimate how much it would
cost to replace existing structures on the lot with a similar building of
comparable quality. The most appropriate approach that an appraiser will
use is the highest and best use of the property. It is done by considering
factors such as zoning regulations, current market trends, and cash flow
potential for various uses. This analysis will be used to calculate an estimated
value for the vacant lot.

56. Zoning ordinances are an exercise of government's?

police power

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 The correct answer is c. Police Power. Zoning ordinances are a form of
government regulation that are passed in order to protect public health,
safety, and welfare as well as maintain community aesthetics. This type
of power falls under the legal concept known as police power, which
grants authority to state and local governments to enact laws for the purpose
of regulating behavior deemed necessary for public health, safety, and
welfare. Laws created for this purpose are also called police
regulations or police measures.

The power of eminent domain gives government the right to take private
property for public use without the owner's consent as long as they are
provided with fair compensation. This differs from zoning ordinances which
regulate development, land use, and building construction instead of taking
control of private property.

Government also has the power to regulate land use in order to further
public policy goals such as protecting natural resources and preserving
historic sites. These regulations are typically enacted through zoning
ordinances, building codes, subdivision regulations, and other land use laws.

57. The MOST commonly used form of real estate listing agreement is
the
exclusive authorization and right to sell listing
Feedback
The correct answer is C. Exclusive authorization and right to sell listing. This
type of agreement gives one real estate broker the right to represent the seller
in marketing their property, while also allowing them to find a buyer without
having to share the commission with other brokers. The broker retains all
rights; they are not obligated to pay anyone else a commission unless they
bring a buyer to the table. This type of agreement gives the seller a greater
chance of selling their property quickly and for the most money possible. It
also makes it easier for buyers to work with one broker to find their ideal
home.

58. Mr. Maceda decided to sell his lot for P5,500,000.00 although the
broker knew it can be sold for P7,000,000.00 and the zonal value is
P6,500,000.00. What price should the broker offer to sell the house?
Php 5,500,000.00

Feedback
According to our code of ethics, it is crucial to follow the listing agreement
when selling a property. The seller has decided to set the price of the house at
Php 5,500,000.00, and therefore, the broker should offer to sell it at that price.
Even if the broker knows that the house could be sold at a higher cost, it is
imperative to follow the seller's instructions. If the seller wants to sell the
property at a lower price, the broker should still comply with their request.

59. Absolute control, as well as absolute liability, belongs to a;

sole proprietor
 Feedback
Answer: A. Sole Proprietor. As a sole proprietor, you have complete control
over your business and are also held liable for any of its errors or debts. You
are responsible for filing taxes on the profits earned from the business, as well
as reporting any losses incurred by it. The other options do not carry this same
level of responsibility.

60. Vacancy and collection losses are subtracted from potential gross
income to derive
effective gross income
Feedback
The correct answer is c. Effective Gross Income. Effective Gross Income (EGI)
is a measure of an income-producing property's potential to generate revenue
after allowing for vacancies and collection loss. Capitalization rate (CAP Rate)
is the ratio of Net Operating Income divided by the current market value of a
real estate investment property. Net Operating Income (NOI) is derived after
deducting Operating Expenses (OE) from the Effective Gross Income. Gross
Operating Income is the Potential Gross Income (PGI) - the income of the
property at 100% occupancy.