PRELIM TEST QUESTION

ETHICAL STANDARDS FOR REAL ESTATE

1. The National Code of Ethical Standards for Real Estate Professional was issued original by Department of
Trade and Industry, in what year?
a. 1085
b. 1988
c. 1995
d. 1993
2. The power to adopt the Code of Ethics and Responsibilities. Under the RESA, shall be under the:
a. Professional Regulation Commission (PRC)
b. Accredited and Integrated Professional Organization (AIPO)
c. Professional Regulatory Commission (PRC)
d. Professional Regulatory Board of Real Estate Services (PRBRES)

3. Who among the following persons is not covered by the Code of Ethics and responsibilities for real
estate service?
a. Broker
b. Appraiser
c. Consultant
d. Dealer

4. The Realty Service Practice is a honorable profession, calling to strive for excellence, with the vital role
in the social, political, economic development and progress of the country. Rule of conduct is necessary.
This provision is what part of the Code of Ethics?
a. Introduction
b. Objective
c. Preamble
d. Declaration of Policy
5. The national code of ethics for realty service practice covers specifically the following sectors.
a. Public
b. Client
c. Government
d. Fellow Practitioners
e. All of the Above

6. The real estate service practitioners include the following:

a Real Estate Consultant
b Real Estate Appraiser/Assessor
c Real Estate Salesperson
d All of the above

7. Do unto others as you would have them do unto you is a mandated rule to all realty service practioners
popularly known as…
a. GMRC [Good manners and Right Conduct]
b. Golden Rule
c. Respect of others
d. Camaraderie

8. As to Relations with Government, the practitioner is not required to secure the following:

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a. License
b. Permits
c. Authority to pay surety bond
d. Required registration

9. Relations to Public enjoins all realty service practitioners must…

a. Practitioner shall be imbued with social responsibilities and conscience being part of society
with duties and responsibilities for promotion of common.
b. Cooperate with the general public in protecting the public against deceit, misrepresentation,
unfair and other related unethical and immoral practices and malpractices of unlicensed and
unauthorized real estate service practitioners.
c. Practitioners shall endeavor to present full disclosure of pertinent and material facts on subject
property in advertisements (i.e. brochures, flyers, press releases, etc.)
d. All of the above

10. Attendance in CPD is provided also in the code of ethics under the following provision
a. Spirit of camaraderie, cooperation and professional relations of other practitioners shall be
promoted
b. Their dealings with each other shall be fair, honest and just
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.

11. Concerning code of ethics in relation to Fellow Practitioners, practitioners shall...

a. Not solicited a listing which is currently listed exclusively with another broker unless the listing it
has expired or revoked by the owner and the owner offers to list same to the new broker.
b. Respect the agency of the original broker who gives you an extension by not passing to a third
party or publish without consent of listing broker.
c. Signs giving notice to property for sale, rent, lease or exchange even if there already similar signs
by fellow practitioner and without authority of the seller.
d. The Practitioner shall not engage in slander, oral defamation, gossip, or criticize publicly a fellow
practitioner and/or competitor nor volunteer a negative and damaging opinions of a competitor
and/or fellow practitioner in any means (SMS, electronics mails or letters, etc of similar nature).

12. As to relations to Fellow Practitioners, it is ethical to do the following acts. Which one however, is not
ethical.
a. Share professional fees as agreed with the other broker.
b. Engage the services of the salesperson of another broker without informing the broker
concerned.
c. Publish a listing of another broker only with his consent.
d. Not give rebates or split commission with an unlicensed real estate broker.
13. The following are brokerage practices that must be considered in relation to fellow practitioners.
a. Not transmit to any Third licensed Real Estate Broker vital information about the property
listings/inventories via electronic mails, SMS or published it any form of
announcements/advertisements without the written consent of the Listing Broker.

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b. Not accept any listings/inventories from the Client or any third party which inventories has been
previously listed to a licensed Real Estate Broker without conducting inquiries and discussion on
the reason for the transfer of professional engagement.
c. It is alright to accept any professional engagement beyond the field of his/her expertise and
competence unless provided you have you obtain from an expert familiar with the subject of the
engagement in the guise as your own expertise.
d. Not accept any professional engagement if it is beyond the field of his/her expertise and
competence unless a professional assistance shall be obtain from an expert familiar with the
subject of the engagement and such fact shall be fully disclosed to the client and included in the
written report.

14. Protect the confidential nature of the engagement under the Principle of Appraiser-Client or Consultant-
Client privilege communication, pertaining to factual data obtained as the result of the engagement and
shall not disclose any confidential data to anyone except to:
a. The client or the person authorized by the client in writing;
b. Third (3rd) parties authorized by law and
c. Duly authorized professional peer reviewer of the engagement.
d. However, a professional peer reviewer to disclose any confidential information or factual data
relative to the engagement such as but not limited to written reports, contracts and agreement
unless there is a written consent or authority from the client.

15. A listing broker seeks coordination and collaboration to other brokers on property listed and share the
commission on an agreed basis. What could be a fair sharing of professional fee and information?
a. Negotiations concerning property listed exclusively with one broker should be carried through
the property owner not necessarily to the listing broker.
b. The coordinating broker work independently and directly to the listing broker only without
participation of the property owner.
c. All negotiations made by the coordinating broker must be through the listing broker only.
d. Professional fee must be split into two between the listing broker and the coordinating broker.

16. As to the following acts of real estate practitioner, which one can be considered within the bounds of
Code of Ethics?
a. Delay the submission of an offer of another buyer.
b. Encourage the seller to under-value the selling price.
c. Willingly share his experience with new practitioner.
d. Criticize publicly another practitioner for his manner of selling.
17. Which one among the acts of Mr. Tan is considered unethical to do in selling a house and lot?
a. To have the house cleaned before bringing the buyer.
b. To tell the buyer there are many buyers interested although there are only a few interested
buyers.
c. To open the windows of the house before bringing the buyer.
d. To pass through a better road instead of the road with squatters.

18. Broker Robert has a complaint against Broker John who both belong to the same rea estate service
organization. Robert must do the following acts.
a. File a case in court
b. Exhaust remedies with their organization

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c. File an administrative case with PRC
d. Tell other members openly about his complaint.

19. Concerning function and responsibilities of real estate practitioner, a newly passed broker is dealing with
well experience broker. The experienced broker should…
a. Share his experience on the transaction
b. Try to put one over the new broker
c. Take advantage of his experience over the new broker
d. Keep quiet when asked for advice by the new broker.

20. When a client asks the broker for his opinion on a transaction not being handled properly by another
broker, he should…
a. Criticize the manner of handling by the other broker
b. Simply say “No comment”
c. His opinion should be done with courtesy and professional respect
d. Point out the errors committed by the other broker

21. As to negotiation on a property listed exclusively with one broker, it should be through the listing
broker and not to the property owner, except
a. With consent of the owner
b. The listing broker has consented
c. The listing broker is just new
d. The listing broker is not knowledgeable

22. The National Code of Ethics provides that the broker in a transaction should
a. Always make sure the seller is at an advantages
b. Transaction is in favor the buyer
c. Have the buyer and seller conclude a fair deal
d. Just be concerned with the commission

23. A real estate broker unloaded an advertisement of a property in the Internet. Which one would be
considered unethical?
a. With nice view of the lake
b. Property price will appreciate within a year
c. Located in a gated subdivision
d. With wifi connection

24. If the broker saw an existing sign for sale on the property by another broker, under the code of ethics,
the broker must…
a. Remove the sign before putting his sign
b. No longer put his own sign for sale
c. Put the sign 3 meters away from the old sign
d. Cover the old sign with his sign

25. As to relations to clients, a broker was issued an ATS with “exclusive right to sell” by the property owner.
A direct buyer approached the property owner, what should the broker do?
a. The broker should tell the property owner that he will do the negotiation with the direct buyer
as agreed.

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b. The broker should not entertain the direct buyer
c. The broker talk to the direct buyer regarding conditions but the seller and buyer should decide
the final transaction.
d. The broker decides the transaction without consulting the property owner.

GOOD LUCK!!!

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