ODPELS REAL ESTATE BROKER REVIEWER

ODILIO PELENIO
General and Fundamentals 25% Day 1
Coverage of Examination:
1. Fundamentals of Property Ownership
2. Code of Ethics and Responsibilities
3. Legal Requirements for Real Estate Service (R.A. 9646/IRR)
4. Real Estate Laws and Taxation (Agri Law, CARPER, R.A. 7160/8424, etc)

ANSWER SHEET FOR General and Fundamentals Day 1

USE PENCIL NUMBER 2 to Mark Answers

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TEST 1 Sample Questions for Review Purpose: 100 Items

1. The broker is believed to violate his relation to the ________________ during

undervaluation of the sale.
a. Public
b. Government
c. Client
d. Organization he belongs

2. The practitioner must display the following in their place of business as provided in the
Code of Ethics
a. AIPO Receipts
b. Surety Bond
c. Professional Identification Card
d. Certificate of Registration

3. Ma Jack 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?
a. P5,500,000.00
b. P7,000,000.00
c. P6,500,000.00
d. P7,000,000.00

4. The following is not part of the Master Deed of Condominium project

a. Amenities and facilities per condo building
b. Number of building and stories per building
c. Condominium house rules and regulations
d. Extent of share in the common areas

5. The process by which soil is deposited by natural means to lands adjoining rivers.
a. Decretion
b. Accretion
c. Accession
d. Prescription

6. Anna sold his 3-bedroom condo unit to a buyer. To register the sale he must get from
the condominium corporation this document.
a. Clearance for condominium dues
b. Certificate of Management
c. Certificate of Ownership
d. Certificate of Transfer

7. When it is provided that the unit to be sold must first be offered to the existing unit
owners, it is referred to as
a. Option
b. Right of first refusal
c. Rights of offer
d. Right to Refuse

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8. In case of managing the rental business of his brother, the attorney in fact could have
the following
a. Special Power of Attorney
b. General Power of Attorney
c. Substitute Power of Attorney
d. Irrevocable Power of Attorney

9. A seller who avails of the exemption in the payment of the capital gains tax must
acquire or construct a new principal residence within __________ calendar months from
the date of sale.
a. Six
b. Eighteen
c. Twelve
d. Twenty Four

10. When the prices of stock, real estate or other asset rise to levels well beyond
reasonable valuations of this past, this is popularly known to be a ?
a. Bubble
b. Inflation
c. Bust
d. Boom

11. What must an investor consider when acquiring income properties?

a. Market variables, demand and supply, tax savings, exit clause, interest rates and
yield on investment.
b. Economic forces, fiscal and monetary policies, tax influences, insurances, cost of
money, cash flow.
c. Market factors, occupancy rates, Taxation, Risk involve, debt and financing cost
and return on investment.
d. Economic and financial fundamentals, quality of development, market demand,
taxation, market risk, funding.

12. Based on the local government code, how often shall real property tax is revised?
a. Every three (3) years
b. Every one (1) year
c. Every two (2) years
d. None of the above

13. The declaration of Principle of the Code of Ethics for Realty Service Practitioners
clearly states the Golden Rule which says:
a. Treat others as you wanted them to be treated
b. Do not do unto others what you want others do unto you
c. Do unto others what you do not want other do unto you
d. Treat others as you like them to treat you

14. When the Term used by Economist, “Bubble - Bust” cycle, means to say that
_________?
a. Prices eventually return to normal
b. Prices rise beyond reasonable valuations then drops
c. Price increase then Decrease
d. Cyclical movements of Values are not normal

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15. An annual real levy on a real property to one (1) percent of the assessed value
shall be in addition to the basic real estate tax is called .
a. Special Real Estate Tax
b. Special Education Fund Tax
c. Special Assessment Fund Tax
d. Ad Valorem Tax

16. Under the law, in case of sale of a piece of land is through an agent, to be valid,
the authority of the latter shall be
a. Duly notarized
b. Must be licensed real estate salesperson
c. Must not have an expiry date
d. In writing

17. Per HLURB Administrative Order No. 2., series of 1992, the minimum plot size for
an industrial estate is
a. 500 square meters
b. 750 square meters
c. 1,000 square meters
d. 1,500 square meters

18. The condominium corporation may integrate the project with another upon the
affirmative vote of a simple majority of the registered owners, subject only to the final
approval of
a. HLURB
b. City Engineer
c. Municipal Engineer
d. Local Government Unit

19. A Condominium Corporation Formation is required in case

a. At least 60% Filipino ownership
b. At least one foreigner owns a unit
c. As provided in the Articles of Incorporation
d. Of purely residential condominium units

20. The governing law for the protection of buyers who are buying residential
condominium units on installment basis is referred to as
a. The Condominium Act
b. Subdivision and Condominium Buyer’s Protective Decree
c. HLURB Rules and Regulations
d. Realty Installment Buyer’s Protection Act

21. For one to put up a sign on the lot of the owner, the real estate broker must
a. Put a decent sign
b. Use only a tarpaulin signage
c. Be authorized by the owner
d. Make sure the sign is visible

22. A Real estate broker bough a lot in a residential, and it would be unethical for him
to construct on the property a.
a. Residential house
b. Piggery
c. His professional office
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 d. Duplex residential apartment

23. Under the code of ethics, it does not include the relation of the real estate service
practitioner to the
a. Public
b. Government
c. Developer
d. Client

24. The schedule of Zonal Valuation used in the computation of the capital gains tax is
prepared by:
a. The Assessor's Office
b. National Tax Research Center
c. The Bureau of Internal Revenue
d. Department of Finance

25. Your seller client needs to sell property quickly because he is going abroad. He ask
you to keep this information confidential. What should you do?
a. You tell buyers this so the house sells quickly
b. You keep this information confidential
c. You tell the buyers only if they ask
d. You reveal this information only to cash buyers

26. Napoles pledges her two-storey house and lot as a security for a loan evidenced by
a promissory note and in case default of the borrower, the pledged property will be
foreclosed. This is known to be as:
a. Mortgage
b. Foreclosure
c. Lending
d. Collateral

27. To certify that the property is a vacant lot, the assessor's office issues a:
a. Certificate of Vacant Lot
b. Tax declaration
c. Certificate of no improvement
d. Title

28. PD1529 requires that for a deed of sale

to be registered it must be signed by at least
a. Two Witnesses
b. Four Witnesses
c. One Witnesses
d. Two Witnesses for each party

29. The minimum plot size for a mausoleum under the rules for memorial parks is
a. 3m x 3m
b. 3m x 4m
c. 4m x5m
d. 5m x 5m

30. Under REIT LAW, A “Constitutive Document” means

a. Approved plan of the REIT
b. Articles of Incorporation of the REIT
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 c. Ownership documents of the REIT
d. Shares of the stock of the REIT

31. Mr. Rodson owned a unit in the Triple Tower. He can sell the unit to anybody
unless there is
a. Delinquency in condominium dues
b. A mortgage on the condominium unit
c. An amount of unpaid real estate taxes
d. Provision for right of first refusal

32. In the exercise of this right, the owner must use judicial and legal process,
and if by chance the property become into the unlawful possession of another, he
should not take the law into his own hands.
a. Jus Possidendi – The Right to Possess
b. Jus Vindicandi – The Right to Recover
c. Jus Fruendi – The Right to Enjoy the Fruits
d. Jus Disponendi – The Right to Dispose

33. The real estate broker brochures, advertisement, announcements can present a
picture of property but not required to indicate the following
a. Rights or interest over the property
b. Field of specialization as a real estate broker
c. Name and Firm name
d. Liens or encumbrances on the property

34. The code of ethics and responsibilities, as provided under the RESA, shall be
prescribed and issued by the
a. Professional Regulation Commission
b. Professional Regulatory Board of Real Estate Service
c. National Association of Real Estate Service Practitioners
d. Accredited and Integrated Professional Organization

35. It is not required for a Real Estate Broker to indicate the Professional License No. in
the following documents
a. Letterhead
b. Advertisements
c. Calling cards
d. Deed of Absolute Sale

36. The power to adopt the Code of Ethics and Responsibilities, under the RESA shall
be under the
a. Professional Regulatory Board of Real Estate Service
b. Professional Regulation Commission
c. Accredited and Integrated Professional Organization
d. Professional Regulatory Commission

37. The owner requested the broker on how to reduce the capital gains tax to be paid.
It is unethical for the broker to recommend the following
a. To pay the capital gains on time.
b. To pay transfer tax to the city treasurer
c. To pay in manager’s check to the bank
d. To undervalue the sale price

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 38. If a real estate broker already saw another sign for sale of another broker, under
the code of ethics, the broker must
a. Put the sign at least 3 meters away
b. Remove the sign before putting his sign
c. No longer put his or her sign for sale
d. Cover the sign of the broker
39. Which of the following acts can be considered unethical for a real estate broker?
a. The broker should cooperate with others brokers on property listed
b. The broker should share the commission on an agreed basis
c. The broker should seek no unfair advantage over his fellow brokers
d. The broker can use the services of the salesman of another broker provided he
pays the salesperson a commission.

40. The right of owners against trespassers.

a. Jus Fruendi – The Right to Enjoy the Fruits
b. Jus Disponendi – The Right to Dispose
c. Jus Possidendi – The Right to Possess
d. Jus Abutendi – The Right to Exclude others

41. It refers to the weight bearing walls, columns and beams, stairways, halls,
elevators, etc. including the electrical, water and plumbing systems and amenities in a
condominium project.
a. Common areas
b. Condominium Building
c. Condominium Structure
d. Vertical Building

42. Mr. Trump bought a farmlot in Batangas where he intends to retire. He may only
build on the lot up to a maximum of what percentage of the total lot
a. 20%
b. 30%
c. 25%
d. 50%

43. If there is consent but is vitiated such as error, fraud, or undue influence on the
seller of the house and land, the contract is considered
a. Valid
b. Voidable
c. Void
d. Unenforceable

44. A government agency that exist for the

sole purpose of implanting and protecting the Torrens System of Land titling and
registration
a. Department of Agrarian Reform
b. Office of the Civil Registry
c. Land Registration Authority
d. Register of Deeds

45. Process of borrowing funds or capital:

a. Lending
b. Financing
c. Funding
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 d. Mortgaging

46. The following are tricks employed by unethical real estate brokers when bringing
clients to view their listings. Which one is not unethical?
a. Using a roundabout route to avoid eyesores near the neighborhood
b. Employing a cleaning company to freshen the smell of the house interiors
c. Forecasting changes from residential to commercial zoning to hint at high rates of
vale appreciation
d. Showing another inferior property to position his listing as better alternative

47. Which of the following is not included in the primary purpose of the establishment
of RA 9646?
a. To enhance collection of taxes by government in the real estate transaction
b. To protect the general public of any illegal act of practitioners in the conduct of
real estate business
c. To limit practitioners in the real estate industry
d. To enhance qualification of the Real Estate Service Practitioner

48. Assessed value of the property is equal to the market value time's the .
a. Property tax rate
b. Capital gains tax rate
c. Assessment Level
d. Loan to value ratio

49. Which of the following may file a mechanic's lien if not paid?
a. Building contractor
b. An Electrician
c. Mechanical Contractor
d. All of the above

50. When the yield or return on equity increased after borrowing or when the return on
borrowed funds exceed the after tax interest cost, it is known to have having a .
a. Positive return on Equity
b. Positive leverage
c. Net income
d. Real rate of Return

51. The Land Registration Authority is

directly under the supervision of this government agency
a. Department of Environment and Natural Resources
b. Department of Justice
c. Office of the President
d. Department of Land Registration

52. In order to give consent to a contract of sale of a condo unit, the person
purchasing must have the capacity to give consent at the age of
a. At least 20 years if age with consent of parents
b. At least 18 years old
c. At least 21 years of age
d. At least 18 and be represented by a legal guardian

53. The condominium corporation may be dissolved if the project has been in
existence in excess of 50 years, that it is obsolete and half members of the
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 corporation are opposed to the repair or restoration or remodeling or modernizing of
the project to the extent of more than
a. 30% of the members
b. 50% of the members
c. 2/3 of all members
d. 51% of the members

54. The following are the modes of acquiring ownership to land EXCEPT.
a. By Private Grant/Voluntary Transfer or Alienation
b. By Public Grant
c. By Devise
d. By Ascent

55. Ownership of foreigners in a townhouse project located in the city is limited to

a. 40% of the units
b. 51% of the units
c. No Limit
d. 60% of the units

56. Which was is considered unethical? A real estate broker uploaded an

advertisement of a property in the internet.
a. “With a nice view of the city”
b. “Located in a fully secured community”
c. “Strong Wifi-Connection”
d. “Property to appreciate in value within a year”

57. If the owner wants to undervalue the sale price, the real estate broker is expected
to tell the owner
a. To undervalue not lower than zonal value
b. To get a contract with the BIR
c. The true basis of capital gains tax
d. To have 2 deeds of sale

58. It is required for a Real Estate Broker to attend Continuing Professional Education
for the reason of
a. Their dealings with each other shall be fair, honest and just
b. The spirit of camaraderie, cooperation and professional relationship of other
practitioners shall be promoted
c. High level of respect relationship with colleagues in the Realty Service Practice
shall be maintained
d. Adequate knowledge, competence, and expertise in real estate development and
management shall be maintained

59. An accredited real estate salesperson must be under the supervision of the real
estate broker and should indicate
a. Name and license of the broker
b. Email address of the broker
c. Website of the broker
d. Name and field of specialization of the broker

60. Accretion in which lands adjoining banks of rivers gradually receive from the
effects of the current of water, thereby increasing the land area.
a. Avulsion
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 b. Alluvion
c. Accretion
d. Decretion

61. The right of a buyer of a condominium unit, when he fails to pay the monthly
installments under the contact to sell shall be governed by
a. PD 957
b. HLURB Rules of Procedure
c. RA 9646
d. RA 6552

62. A special power of attorney, under the law, will be required in the following
instance
a. Acts administration
b. Lease of real property for six months
c. Lease of real property for more than 1 year
d. Administering property of owner for rent

63. Which price of a house and lot package sold by a dealer is subject to E-VAT?
a. P2,500,000.00
b. P1,500,000.00
c. P2,000,000.00
d. P3,199,300.00

64. A real estate attempts to generate listings by contracting people in particular

neighborhood and suggesting that their property values might be going down soon
because a particular unwanted group is coming into the neighborhood. This
practice is called
a. Soliciting
b. Prospecting
c. Farming
d. Blockbusting

65. Under the then code of ethics, the realty service is considered the following
and not a
a. Profession
b. Business
c. Calling
d. Occupation

66. Under the code of ethics, it is not required for a real estate broker to secure
the following before engaging in practice
a. Payment of Professional Tax
b. Professional Identification Card
c. Certificate of Registration with PRC
d. Postal I.D.

67. Broker Alan has a complaint against Broker Bruno who belonged to the same
real estate service organization. Broker Alan must therefore
a. File an administrative case with PRC
b. Tell other members openly about his complaint
c. File the case in court
d. Exhaust remedies within their organization
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 68. It is regarded as an interest in real property consisting of a separate interest
in a unit in a building and undivided interest in common in the land on which it is
located and in other common areas
a. Condominium unit
b. Condominium
c. Common Areas
d. Condominium Project

69. If one wanted to find out what his interest is in the common areas, it may be
found in the following document.
a. Condominium Rules and Regulations
b. Master Deed
c. Deed of Restriction
d. Tax declaration of the condominium units

70. Once a buyer is now the owner of a condominium unit, the law more appropriate
covering his ownership and rights as a unit owner is
a. Subdivision and Condominium Buyer’s Protective Decree
b. The Condominium Act
c. The Realty Installment Buyer’s Protective Act
d. Property Registration Decree

71. A person who buys two 1 bedroom condominium units adjacent to each
other within a 12 month period this year shall be subject to VAT if the total
exceeds
a. P2,500,000
b. P1,500,000
c. P3,199,200
d. P1,919,500

72. The minimum burial plot size for ground internment as per HLURB rules is
a. 1m x 1m
b. 1m x 1.5m
c. 1m x 2.44m
d. 1m x 3.0m

73. Mr. Alan had unpaid loans with the bank and decided to pay off the loans by
using the property for payment. The same referred to as
a. Deed of Conditional Sale
b. Dacion en pago
c. Deed of loan payment
d. Deed of reconveyance

74. The definition of real estate service practitioners under the RESA, it does not
cover the following.
a. Real Estate Salesperson
b. Real Estate Consultants
c. Real Estate Appraiser
d. Real Estate Brokerage Partnership

75. What is the coverage of CARPER?

a. Rice and Corn Land
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 b. Coconut plantations and orchards
c. All agricultural land regardless of planting as well as land of the public domain
suitable for agriculture
d. Fish, prawn and other land used for livestock

76. Popularly known as “The Rule of 72”; A Rule of thumb method that determines a Rate
of return which is given, as 12% per period. How many periods will it take to double
an investment of 12% per period?
a. 4.8
b. 24
c. 6
d. 2.4

77. A condominium corporation is important as it will be the management body of the

condominium project and more importantly, will also
a. Collect the dues from the unit owners
b. Pay for the realty taxes of the unit owner
c. Pay for the insurance of the separate units
d. Hold title to the land of the condominium project

78. In buying a condominium unit. It is highly recommended that the buyer get this
most important document to have full knowledge of the project
a. Deed of Restrictions
b. Master of Deed
c. Articles of Incorporation of Condominium Corporation
d. House rules and Regulations

79. Condario wanted to stop payment of his monthly amortizations for a studio condo
unit since has not been completed but it is required that he must
a. Update his monthly payments
b. Inform HLURB
c. Have paid at least 24 monthly installments
d. Give due notice to the developer

80. A deed of sale was signed by the parties in Makati involving a parcel of land in
Davao, the deed must be duty notarized in
a. Makati City
b. Where the property is located
c. Where the parties will appear before the notary public
d. Where the Registry of Deeds of the Land is located

81. Exempted from paying the capital gains tax is the sale by a natural person of his
.
a. Principal Residence
b. Smaller Residence
c. Secondary Residence
d. Rest House

82. Suppose that Anabelle pays interest only annually for 5 years and on the 6th year
she paid the loan in full. This scheme of payment is known to be as:
a. Graduated payment scheme
b. Balloon Payment
c. Amortization
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 d. Installment

83. Which one of the following newspaper line ads is blatantly unethical?
a. House on a very quiet neighborhood
b. Flood-free subdivision
c. The value of property will double in one year
d. Beautiful View

84. The following act should not be done by the broker and is unethical
a. Split commission with an unlicensed broker
b. Share commission as agreed
c. Agree to revise commission sharing
d. Accept arrangement for reduction in commission as agreed

85. The ground floor of a condominium project shall be considered as commercial per
BIR RR 28-98, how much rate shall be added to an established residential zonal value?
a. 25 percent
b. 10 percent
c. 20 percent
d. 50 percent

86. For a farmlot subdivision, the minimum lot area for farmlot is
a. 1000 sqms
b. 750 sqms
c. 500 sqms
d. 400 sqms

87. The rights inherent or incidental to ownership are called what.

a. Patrimonial rights
b. Collection of rights
c. Bundle of rights
d. Property Rights

88. As proof of ownership of a condominium unit, the owner would have the best proof
is
a. Condominium Certificate of Title
b. Original Condominium Certificate
c. Transfer Certificate of Title
d. Condominium Corporation Certification

89. The following penalty may be imposed by the broker’s professional real estate
organization for the violation of code of ethics.
a. Expulsion from the organization
b. Removal of license
c. Suspension of license
d. Removal from the roster of registered real estate brokers

90. An act that can be said to be unethical in dealing with a real property being sold by
the owner
a. Avoid exaggeration
b. Conceal Relevant Information
c. Refrain from Misrepresentation
d. Ascertain all material facts on the property
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91. It is considered unethical for a real estate broker to collect a professional fee from
both parties UNLESS
a. The owner and seller knows and both agreed.
b. The buyer was informed ahead of time.
c. The owner did not know he will get a fee from the buyer
d. The parties were not informed by the broker.

92. Shall be observed in all the dealings and relation of the practitioners with clients,
fellow practitioners, the organization to which they belong, and the general public.
a. Do not treat others as you like them to treat you
b. Treat others as you like them to treat you
c. Treat others as you do not like them to treat you.
d. Do not treat others as you do not like to treat you.

93. He should not be instrumental in introducing in a neighborhood a certain character or

use of property which will tend to impair or erode property values within that
neighborhood;
a. Public relation
b. Client relation
c. Customer relation
d. Practitioner relation

94. As an appraiser, he should not undertake to make an appraisal or render an opinion

that is outside the field of his experience and competence.
a. Costumer relation
b. Public relation
c. Practitioner relation
d. Government relation

95. Election as officer or member of the governing body of the organization or

association carries with it the moral obligation to serve honorably, unselfishly, diligently
and efficiently.
a. Relation to organization
b. Relation to fellow practitioner
c. Relation to the public
d. Relation to the government

96. Real Estate Service Act of the Philippines.

a. RA 9464
b. RA 9646
c. RA 9626
d. RA9664

97. Creation and Composition of PRBRES

a. Section 4
b. Section 5
c. Section 6
d. Section 7

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98. All records of PRBRES shall be kept by.
a. Chairman
b. Secretary
c. PRC
d. Board

99. PRC ID shall be renewed.

a. Every 2 years
b. Every 3 years
c. Every 5 years
d. Every 6 years

100. Comprehensive Agrarian Reform Law was signed.

a. July 21,1990
b. June 10, 1988
c. August 8,1988
d. June 10, 1989

MOCK EXAM GENERAL FUNDAMENTALS

ANSWER KEYS

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1. B
2. D
3. A
4. C
5. B
6. B
7. B
8. B
9. B
10. A
11. C
12. A
13. D
14. A
15. B
16. D
17. A
18. A
19. B
20. B
21. C
22. B
23. C
24. C
25. B
26. A
27. C
28. A
29. C
30. B
31. D
32. B
33. B
34. D
35. D
36. A
37. D
38. C
39. D
40. D
P a g e 16 | 18

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41. A
42. C
43. B
44. C
45. B
46. B
47. C
48. C
49. D
50. B
51. B
52. B
53. B
54. D
55. A
56. D
57. C
58. D
59. A
60. B
61. D
62. C
63. D
64. D
65. B
66. D
67. D
68. B
69. B
70. B
71. C
72. C
73. B
74. D
75. C
76. C
77. D
78. B
79. C
80. C
P a g e 17 | 18

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81. A
82. B
83. C
84. A
85. C
86. A
87. C
88. A
89. A
90. B
91. A
92. B
93. A
94. A
95. A
96. B
97. A
98. C
99. B
100. B

P a g e 18 | 18

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