SIMULATION 5

A mortgage which covers two or more properties is called:

1. Equitable mortgage

2. Open mortgage

3. Close Mortgage

4. Blanket mortgage

Which of the following describes a buyer's market?

1. There are few properties for sale in a particular area and also very few buyers

2. There are few properties for sale in a particular area and very many buyers

3. There are many sellers in a particular area as against very few buyers

4. There are many properties for sale in a particular area but many just want to rent

Mr. Juan dela Cruz want a net proceed of P2,625,000.00 from the sale of his property exclusive
of capital gains tax, documentary stamps and broker's commission of 5%. In order for the broker
to maintain the 5% commission, how much would be the selling price?

1. P4,000,000.00

2. P3,800,000.00

3. P3,300,000.00

4. P3,000,000.00

The voluntary transfer to real estate is:

1. Adverse possession

2. Quit claim

3. Alienation

4. Surrender
A house and lot was sold for P6,500,000.00, with lot area of 1,000 sqm. The fair market value of
the improvement is P2,000,000.00 and lot is P2,500,000.00. The zonal value of the lot is
P5,000/sqm. The sale is subject to capital gains tax. Compute the following: -Tax Base?

1. P7,000,000.00

2. P6,500,000.00

3. P5,000,000.00

4. P4,500,000.00

A scale of 1:200 in surveying terms is:

1. 1 centimeter is equal to 2 meters

2. 1 meter is equal to 20 meters

3. 1 meter is equal to 20 meters

4. 1 centimeter is equal to 200 meters

When a licensed broker accepts a listing from a fellow practitioner, he follows three conditions
clearly stated in the code of ethics. Which one of the following is not a condition to be followed?

1. The agency of the broker who offers the listing should be respected until it has expired and

the listing comes to his attention from a different source

2. The agency of the listing broker should be respected perpetually in all dealings with his

client/principal

3. The listing should not be passed to a third broker without the knowledge and consent of the

listing broker

4. The agency of the broker who offers the listing should be respected until the owner, without

solicitations, offers to list with him

Three of the following are important information in the documentation and registration of a real
estate sale. Which information is false?

1. Capital Gains Tax is 6% of the total contract price or zonal valuation, whichever is higher
Under TRAIN Law, the sale by a dealer of a residential dwelling is not subject to E-Vat when the
price does not exceed:

1. Php. 1,500,000.00

2. Php. 2,000,000.00

3. Php. 3,199,200.00

4. Php. 3,000,000.00

A family residential home was sold at P4,000,000.00. The BIR fair market value is
P5,000,000.00. The owners bought a new residential home worth P3,000,000.00. How much is
the basic capital gains tax on the unutilized portion of the P4,000,000.00 sale of the family
home?

1. P55,000.00

2. P65,000.00

3. P75,000.00

4. P85,000.00

The selling price of a real estate is usually based on its:

1. Speculative value

2. Exchange value

3. Intrinsic value

4. Market value

Which of the following is never considered as a factor in the valuation of a house and lot?

1. Conviction of the previous owner on charges of moral turpitude

2. Topography of the lot

3. Functional obsolescence

4. Modifications in zoning regulations

Three of the following factors create value in real estate. Which one does not create value?

1. Demand
2. Utility

3. Infiltration

4. Scarcity

Which of the following is not essential in the determination of Fair Market value?

1. Knowledgeable and prudent seller and buyer

2. Reasonable exposure of the property in the open market

3. Willing seller and willing buyer

4. Assessed value indicated on the Tax Declaration

The document which provides guidelines, rules and regulations regarding the right of
condominium unit owners in the use, occupation, ownership and disposition of units are called:

1. Master Deed

2. Declaration of Restrictions

3. Condominium Articles of Incorporation

4. Condominium Association Rules

Exemptions on payment of the 6% capital gains tax on the sale of an individual seller's principal
residence who will use the proceeds to purchase a new place of residence may be availed of
only once every:

1. 5 years

2. 15 years

3. 10 years

4. 7 years

On documents executed abroad, like Special Power of Attorney, the documents must be
properly authenticated by any of the following, EXCEPT:

1. Phil. Ambassador or Secretary of Legation

2. Charge d' Affairs

3. POEA

4. Consul, Vice Consul, or Consular Agent

A kind of survey where the shape of the earth is taken into account in computing the results is
known as:

1. Topographic survey

2. Hydro-graphic survey

3. Geodetic survey

4. Plane survey

What is that fixed object point established by surveyor to establish land location?

1. monument

2. boundary mark

3. concrete post

4. cylindrical concrete

Which of the following reasons is not a valid justification to conduct a topographic survey?

1. As a basis for determining the cost of land development

2. As a basis for establishing points and locating the land boundaries

3. As a basis for planning the road networks

4. As a basis for designing the drainage system

Registration of a mortgage covering a subdivision project can only be affected when the deed is
accompanied by a permit to mortgage issued by:

1. Housing & Land Use Regulatory Board

2. Housing & Urban Development Coordinating Council

3. National Housing Authority

4. Home Guarantee Corporation

With regards to the relation with a client or customer, the practitioner, in accepting an
appointment or authority to act for and in behalf of the client/customer, can perform such,
EXCEPT:

1. Should not accept any commission or fee from any party in any transaction except from his

client unless with the full knowledge and consent of all the parties concern in the transaction

2. Endeavor to make buyer or seller conclude a fair contract, advantageous to both parties

3. Acquire an interest or buy for himself or members of his family within the 4th civil degree

4. Assist his client acquire possession and ownership of the property bought in accordance

with the terms and conditions agreed upon

Subdivision developers are required to develop a portion of the gross area of a project, inclusive
of road, alleys & other service areas for park & recreation, equivalent to what percent of the
gross area of the land?

1. ten (10%) percent

2. twenty (20%) percent

3. thirty (30%) percent

4. forty (40%) percent

In the absence of a valid pre-nuptial agreement, the governing property relations of a married
couple is:

1. Complete separation of property

2. Conjugal partnership

3. Absolute community of property

4. Regime of separation of property

Sometimes referred to as vertical subdivision:

1. Townhouses

2. Condominium

3. Mansion

4. Row houses
A Broker has secured a written offer to purchase a commercial property at a price of 60 million
together with a check for thirty percent down payment. He is certain that the seller will accept
the offer. Before he can present the offer to the seller, he receives unverified information that a
planned government infrastructure project will eat up a significant position of the property.
Several steps have to be taken by the broker to save the sale and protect the interest of all
parties concerned. Which of the following is inappropriate at the moment?

1. Inform the prospective buyer about the forthcoming government project and the possible

effects it will have on the property

2. Secure detailed information from the proper government agencies as to the actual scope of

the project

3. Present the offer to the seller for signing and acceptance to ensure the consummation of the

sale

4. Inform the seller about the forthcoming government project and the possible effects in will

have of the property

The Golden Rule shall be observed in all dealings and relations of the real estate practitioners,
EXCEPT:

1. the general public

2. the organization to which they belong

3. with clients and fellow practitioners

4. none of the above

A standard term used to a fixed object or as reference point established and set by a Geodetic
Engineer to identify the land boundaries:

1. Cylindrical concrete monument

2. Concrete Monument

3. Boundary mark

4. Post
Tenants of urban land where their residence is constructed shall have the priority to buy the
land when the following requisites are present, EXCEPT?

1. they are legitimate tenants

2. the land is within an urban land reform zone

3. they have occupied the land for at least ten (10) years

4. the land owner is not selling the land

When a property owner dies without any heirs to inherit, which of the following inherent powers
of the state is applied on the property?

1. Eminent Domain

2. Escheat

3. Taxation

4. Expropriation

You were commissioned by Mr. Pedro de los Santos as the broker to sell his property. He
bought it at P10,000,000.00 and wants a 30% gross profit. If you will be paid 5% broker's
commission, how much shall be added to the selling price in order that he 30% profit Mr. De los
Santos will not be affected?

1. P14,652,210.52

2. P13,650,000.00

3. P13,684,210.52

4. P10,500,210.52

A land survey always uses a fixed point of reference, it could be:

1. Provincial Boundary Monument

2. City Boundary Monument

3. Any of the above

4. Bureau of Lands Location Monument

The technical description in the TCT of real property can be readily plotted on a sheet of paper
by using the following data:

1. BLLM and the tie line

2. Bearing and lot points

3. Bearing and tie line

4. Bearing and distance from lot points

The acquisition of land in advance of actual need based on present value for future planned
development is referred to under the Urban Land Reform Law as:

1. Urban renewal

2. Land assembly

3. Land banking

4. New settlement

Mr. Johnny bought a 2 hectares raw land at P20 per square meter. If cost of money is
compounded 100% every 5 years, what will be his cost per square meters after 20 years? What
will his gross profit per square meter if he sells the land at P500 per square meter after 20
years?

1. P300/sq.m. and P160/sq.m.

2. P250/sq.m. and P20/sq.m.

3. P200/sq.m. and P160/sq.m.

4. P320/sq.m. and P180/sq.m.

Bank acquired assets which form part of the real estate inventories at the close of their
accounting period shall be classified as:

1. capital assets

2. fixed assets

3. ordinary assets

4. movable assets
A real estate broker who accepts a listing from a client follows several ethical guidelines in his
relationship with the client. Which one of the following is not always applicable?

1. He should endeavor to make his client and customer conclude a fair contract advantageous

to both

2. He should undertake to prepare an accurate appraisal report on the property subject of the

listing, as part of his service to his client

3. He should endeavor to be well informed of current legislation, policies and programs of the

government including proposed legislation, which may affect the interest of his client

4. He should pledge himself with utmost fidelity and good faith to protect and promote the

interest of his client

A subdivision plan prepared for a flat terrain condition is:

1. Square planning

2. Chaplain planning

3. Topographic planning

4. Contour planning

The following are types of property descriptions ordinarily used in deeds, contracts, offer to sell
and lease, EXCEPT:

1. Lot number

2. Bearings and azimuth

3. Monuments

4. Rectangular survey

The real estate practitioner, in relation to the government, is expected to perform as such
except:

1. Pay any and all taxes, fees, dues, levies or charges

2. Secure all the necessary licenses, permits and authority

3. Encourage, abet, tolerate, or participate in the aversion or illegal reduction in the payment of

all taxes, fees, dues, levies or charges

4. Should not offer or agree to pay, split or rebate any commission or fee

An application for renewal of a broker's license must be accompanied by:

1. Cash bond for Php5,000.00

2. Surety bond for Php5,000.00

3. Any of the above

4. Certificate of guarantee from a recognized national real estate association

When applying for a real estate broker's license, it must be accompanied by any of the
following, EXCEPT:

1. Cash Bond of P5,000.00

2. Certificate of Guarantee from any recognized national real estate association

3. Surety Bond for P5,000.00

4. Performance Bond for P5,000.00

The best protection for a real estate broker when getting an authority for listing is:

1. Percentage Listing

2. Exclusive Agency Contract

3. Exclusive Right to Sell

4. Net Listing

Assuming due cause for foreclosure, what is the condition for a real estate mortgage to be
foreclosed extra-judicially?

1. When the parties involved want to avoid litigation

2. When there is a special power to sell inserted in or attached to the mortgage contract

3. When the mortgage is not a juridical person

4. When the mortgage property is located in a remote area

Which of the following is not an example of involuntary alienation?

1. Expropriation

2. Adverse Possession

3. Foreclosure of Mortgage

4. Tax Deficiency Sale

The increase in value of real estate without any effort or expenses of the owner is:

1. Accretion

2. Accession

3. Adhesion

4. Unearned increment

Which of the following statements is not valid criterion for ethical behavior?

1. Ethics is right for right's sake

2. Ethics is the name we give to our concern for good behavior. We feel an obligation to

consider not only our own personal well-being but also that others and of human society as

a whole

3. Ethics is having a high moral sense. The capacity to perceive what is right measured

primarily by the application of the golden rule

4. A Code of Ethics is subservient to laws and regulations. Therefore, any act that is not

against any law is not a violation of ethical practice

In a contract to sell by a corporation, the instrument must include the following, EXCEPT:

1. The firm has legal right to own in the Phils. In case ownership is to be transferred

2. Financial Statement of the Corporation

3. Contract is duly authorized by proper Board Resolutions of the Directors

4. Board Resolution authorizing the officer to represent and sign in behalf of the corporation
When accepting a listing from another broker, the broker should respect the agency of the other
broker who offers the listing until:

1. the property has come to the attention of the accepting broker from a different source

2. the agency agreement has expired

3. Saw the notice of the property for sale and walk-in-within the period of brokers agreement

4. the owner, without solicitation, offers to list with the accepting broker

A professional person who determines the shape, contour and measurement of land:

1. Architect

2. Consultant

3. Broker

4. None of the above geodetic

The listing and selling brokers sold a property. The brokers' commission is five (5%) percent and
agreed to 50/50 commission sharing. Each of them received P62,500.00. What is the selling
price?

1. P2,000,000.00

2. P2,500,000.00

3. P3,000,000.00

4. P3,500,000.00

Mr. Juan dela Cruz bought a parcel of land, paying monthly amortization of P108,200.00. The
amortization factor for 5 years at 21% interest is 0.02705. He paid a down-payment of 20% of
the contract price, compute the following: - The principal obligation on which the monthly
obligation is based?

1. P6,000,000.00

2. P5,000,000.00

3. P4,000,000.00

4. P3,000,000.00
In joint venture agreement between the developer and lot owner the engagement of a real
estate consultant is necessary, EXCEPT?

1. ascertain market value of land and evaluate cost estimate of developer

2. review joint venture agreement

3. market the finished project

4. monitor and evaluate developers compliance with his undertaking

Mr. Reyes sold his property at P5,000,000.00 inclusive of capital gains tax, documentary stamp
tax and broker's commission of 5%. What will be his net proceeds after deduction of expenses?

1. P3,875,000.00

2. P4,250,000.00

3. P4,375,000.00

4. P4,455,000.00

In authority given by a developer to a broker to find a supplier for cement and aggregates
materials wherein payment shall be in the form of units or developed lot, the contract is called:

1. Exchange Agency

2. Sales Agency

3. Procurement Agency

4. Purchase Agency