FUNDAMENTALS OF REAL ESTATE

FACE TO FACE MOCK EXAMINATION

(TUGUEGARAO)

Name: _____________________________________________
School: _____________________________________________
Score: _____________________________________________

1. The following are considered idle agricultural lands under the

local government code, EXCEPT:
a. Agricultural lands, more than one (1) hectare in area, suitable
for cultivation, dairying, inland fishery, and other
agricultural uses, one-half (1/2) of which remain uncultivated
or unimproved by the owner of the property or person having
legal interest therein.
b. Agricultural lands planted to permanent or perennial crops
with at least fifty (50) trees to a hectare.
c. Lands, other than agricultural, located in a city or
municipality, more than one thousand (1,000) square meters in
area one-half (1/2) of which remain unutilized or unimproved
by the owner of the property or person having legal interest
therein.
d. Regardless of the land area, this likewise apply to residential
lots in subdivisions duly approved by proper authorities, the
ownership of which has been transferred to individual owners,
who shall be liable for the additional tax.

2. Owners of idle lands shall be exempted from payment of the

additional levy by reason of:
a. force majeure
b. civil disturbance
c. natural calamity, or any cause or circumstances which
physically or legally prevent the owners of property or
person having legal interest therein from improving,
utilizing or cultivating the same
d. all of the above

3. In the absence of a pre-nuptial agreement, the following are

EXCLUDED from the community property, EXCEPT:
a. Property acquired during the marriage by gratuitous title by
either spouse; unless otherwise provided by the donor.
b. Fruits as well as income of property mentioned in letter
(a); unless otherwise provided by the donor
c. Property for personal and exclusive use of either spouse
d. Jewelry for personal and exclusive use of either spouse
e. Property acquired before the marriage by either spouse who
has legitimate descendants by a former marriage and the
fruits as well as the income, if any of such property

4. Property regimes of union without marriage shall be governed by

the rules on:

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 a. Co-ownership
b. Partnership
c. Cooperation
d. Joint Venture

5. Consistent with the constitutional principle that the ownership

and enjoyment of property bear a social function and to raise
funds for RA 7279, all local government units are hereby
authorized to impose an additional one-half percent (0.5%) tax
on the assessed value of all lands in urban areas in excess of
a. (P50,000)
b. (P150,000)
c. (P100,000)
d. (P25,000)

6. Executive Order #209 was signed into law during the time of
former president:
a. Fidel Ramos
b. Corazon Aquino
c. Joseph Estrada
d. Diosdado Macapagal

7. To be exempted on the sale of principal residence, one must

inform the BIR Commissioner of his intention to avail of
exemption within how many days?
a. 45
b. 60
c. 180
d. 30

8. Under the family code, it is constituted jointly by the husband

and wife or by the unmarried head of the family. It is the
dwelling house where they and their families reside and the
land on where is it situated.
a. principal home
b. family home
c. shelter component
d. ancestral home

9. Under the Family Code, Property Regime of Unions Without

Marriage will be applied to the following, EXCEPT:
a. Same sex couples who live exclusively with each other
without the benefit of marriage
b. a man and a woman who are capacitated to marry each other,
live exclusively with each other as husband and wife
c. couple who lives exclusively with each other as husband and
under a void marriage
d. none of the above

10. Separation of property may refer to present or future property

or both. It may be (------). In the latter case, the property
not agreed upon as separate shall pertain to the absolute
community.
a. total or partial
b. complete or incomplete
c. exclusive or non-exclusive
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 d. capital or paraphernal

11. As seen in the notes of every Zonal Value excel file, the
ground floor of a condominium project shall be classified as
commercial and an additional rate shall be added to an
established residential zonal value. The rate to be added is
a. Ten percent (10%)
b. Fifteen percent (15%)
c. Twenty percent (20%)
d. Twenty-Five percent (25%)

12. In case of foreclosure sale where right of redemption is not

exercised by the mortgagor-owner, who pays the Capital Gains
Tax?
a. Owner-mortgagor
b. Buyer of the property
c. Creditor-bank
d. None of the above

13. Title to an inherited property maybe transferred to the sole

heir upon payment of estate tax and execution and registration
of a legal document called:
a. Extra-Judicial Settlement of Estate
b. Affidavit of Self-Adjudication
c. Extrajudicial partition of estate
d. Affidavit of consolidation

14. It is an encumbrance imposed upon an immovable for the benefit

of another immovable belonging another.
a. Accessibility right
b. Easement
c. Right of way
d. Right to pass

15. Has ruled that all agricultural lands that are already
classified as commercial, industrial or residential before June
15, 1988 no longer need any conversion clearance even if it is
still devoted to agricultural activity.
a. RA 6657
b. DOJ Opinion No. 44, series of 1990
c. RA 7279
d. PD 27

16. Gianni, a former natural-born Filipino citizen can acquire

urban land for residential purpose not exceeding
a. 1,000 SQM
b. 3 Has
c. 1 Ha.
d. 5,000 SQM

17. It is a legal principle that if at the end of the lease period

the lessee continues occupancy with the acquiescence of the
lessor for 15 days and without notice to vacate, it is
understood that there is an implied new lease.
a. Pactum de non-aliendo
b. Pacto de retro
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 c. Pactum commissorium
d. Tacita reconducta

18. A contract where real Estate is hypothecated to secure an

obligation where the creditor is given the right to possess the
property and collect the fruits thereof is known as:
a. Equitable mortgage
b. Blanket mortgage
c. Real Estate mortgage
d. Antichresis

19. A former natural born Filipino citizen may in addition to

acquiring residential land under BP 185 may still acquire land
for business or other purposes under RA 8179 provided the area
does not exceed
a. One (1) hectare of urban land or 2 hectares of rural land
b. 5,000 square meters of urban land or 3 hectares of rural
land
c. 5,000 square meters of urban land or 5 hectares of rural
land
d. 1,000 square meters of urban land or 3 hectares of rural
land

20. Under the rule of conflict of interest, the following persons

are disqualified to become Lessee, except:
a. Lawyers with respect to property of their clients under
litigation which they take part.
b. Executors and administrators of properties
c. Husband and wife when there is separation of property in
marriage settlement and when there is judicial separation of
property.
d. Guardian with respect to property of ward under guardianship

21. The priority right of a tenant to buy the land located is an

urban land reform area is known as:
a. Tenant’s possessory right
b. Tenant’s retention right
c. Tenant’s incremental right
d. Tenant’s right of first refusal

22. The Capital Gains Tax due on the sale of Php 2,000,000.00
property with Php 550,000.00 initial payment is:

a. Php 10,000.00
b. Php 30,000.00
c. Php 120,000.00
d. Php 20,000.00

23. The best evidence of fee simple ownership is a Torrens Title

because it is:
a. Imprescriptible
b. Binding against the whole world
c. Indefeasible
d. Superior than tax declaration
e. All of the above

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24. A clause used in leases and mortgages that cancel specified
right upon the occurrence of a certain condition, such as
cancellation of mortgage upon repayment of mortgage loan:
a. Acceleration Clause
b. Defeasance Clause
c. Automatic Redemption Clause
d. Hold Over Clause

25. In sale with assumption of mortgage, the basis of the

documentary stamp on the mortgage is:
a. Actual payments made
b. Assessed Value
c. The selling price
d. Amount secured

26. Under RA 6732 administrative reconstitute of lost or destroyed

original copies of certificates may be availed of when the lost
or destroyed certificates in the registry of deeds consist of
at least:
a. 10% of all titles in the registry
b. 5% of all titles in the registry
c. 20% of all titles in the registry
d. 30% of all titles in the registry

27. To avail of exemption from capital gains in the sale of a

family home, the seller is required, among others, to notify
the BIR Commissioner through a prescribed form of his intention
to avail of the exemption. The notice must be filed within:
a. 15 days from the date of sale
b. 18 months from the date of sale
c. 30 days from the date of sale
d. 45 days from the date of sale

28. Before the TRAIN Law becomes effective, the documentary stamps
for the Donor’s Tax shall be paid on
a. After 30 days from notarization of deed
b. Within 30 days from notarization of deed
c. Within 30 days of execution of the deed
d. Donation is not subject to DST

29. Capital Gains Tax on the sale of real estate classified as

capital asset is a/an:
a. Value Added tax
b. Deductible item from income tax
c. Expanded withholding tax
d. Final withholding tax

30. If the property is an ordinary asset, what is the applicable

tax?
a. Capital Gains Tax
b. Excise Tax
c. Creditable Withholding Tax
d. Percentage Tax

31. The sale of property worth Php 1,500,000.00 considered as

ordinary asset by a person who is not habitually engaged in
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 real estate business shall be subject to a creditable
withholding tax rate of:
a. 1.5%
b. 3.0%
c. 5.0%
d. 6.0%

32. Miss Tabukirot sold his property for Php 850,000.00 with a
down payment of Php 500,000.00 and the balance of Php
350,000.00 payable in one year was secured by a mortgage on the
same property without interest. Compute for the documentary
stamps to register the transaction (DST on sale and mortgage)
a. 12,750.00
b. 8,210.00
c. 8,500.00
d. 13,460.00

33. Where a conflict arises on the issue of just compensation, the

concerned government agency expropriating is required to
initially pay an amount equivalent to 100% of the Zonal Value.
a. Offered amount
b. Assessed Value
c. Appraised Value
d. Zonal Value

34. In case of false or fraudulent Estate, Donor or Capital Gains

Tax BIR form was willfully made, how much surcharge based on
the taxes of deficiency tax shall be imposed?

a. 20%
b. 25%
c. 30%
d. 50%

35. Conversion permit of agricultural lands with more than 50

hectares shall be approved by the:

a. Municipal Agrarian Reform Office

b. Undersecretary of DAR
c. Provincial Agrarian Reform Office
d. Secretary, DAR
e. Regional Agrarian Reform Office DAR

36. If TCT has an annotation that says “subject Rule 74, Section 4
of the Rules of Court”, it means that the property is an
inherited property and any heir unduly deprived of his lawful
participation in the estate has ___ years to assert his right
over said property.

a. Two (2) years

b. Five (5) years
c. Four (4) years
d. Ten (10) years

37. A provision in mortgage contract which releases the property

from the encumbrance when the obligation if fully paid is:
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 a. Automatic redemption clause
b. Defeasance clause
c. Non-liability clause
d. Exculpatory clause

38. If there is only one heir, he may adjudicate to himself the

entire estate by means of an affidavit filed in the ________
under Rule 74, Section 1 of the Rules of Court.
a. Office of the Registry of Deeds
b. Office of the President
c. Office of the Solicitor General
d. BIR

39. BIR Certificate Authorizing Registration (CAR), unless

revalidated, can only be used and accepted by the Register of
Deeds for ______ from date of issuance.

a. 6 months
b. 12 months
c. 18 months
d. 2 years

40. Which of the following statements is not true?

a. Full ownership equals naked ownership plus usufruct

b. Usufruct equals naked ownership plus full ownership
c. Naked ownership equals full ownership minus usufruct
d. Usufruct equals full ownership minus naked ownership

41. The following compose the Board of Assessment Appeals in the

city of Makati, except:

a. Register of Deeds
b. City Prosecutor
c. City Assessor
d. City Engineer

42. A taxpayer has ______ to redeem his real property which was
levied and subsequently forfeited and acquired by the Local
Government unit due to tax delinquency.

a. 1 year
b. 4 years
c. 60 days
d. 3 years

43. In addition to the basic real property tax, a province may

levy an annual tax on an agricultural land; planted to
perennial crops with less than 50 trees to a hectare at the
rate of ____ of the assessed value of the property. It is
called idle land tax.

a. Not exceeding 5%
b. Exactly 2%
c. Exactly 1%
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 d. Exactly 5%

44. Seizure of a property by a court order, usually to have it

available in the event of adverse judgment of a pending suit,
is:
a. Escheat
b. Forfeiture
c. Foreclosure
d. Attachment

45. Special power of attorney is necessary in the following cases,

except
a. To perform acts of administration
b. To lease any real property for more than a year
c. To convey real rights on immovable property
d. To cancel any obligation gratuitously

46. An annual levy on real property equivalent to one (1) percent

of the assessed value which shall be in addition to the basic
real estate tax called
a. Special Education Fund Tax
b. Idle Land Tax
c. Ad Valorem Tax
d. Socialized housing tax

47. 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:
a. Acquire an interest or buy for himself or members of his
family within the 4th civil degree
b. Endeavor to make buyer or seller conclude a fair contract,
advantageous to both parties
c. Assist his client acquire possession and ownership of the
property bought in accordance with the terms and conditions
agreed upon
d. Should not accept any commission or fee from any party in
any transaction except from his client unless with the full
acknowledge and consent of all the parties concern in the
transaction

48. As per RR 8-2021, The sale by a dealer of a residential

dwelling is not subject to VAT when the price does not exceed:
a. Php 1,919,500.00
b. Php 2,000,000.00
c. Php 2,500,000.00
d. Php 3,199,200.00

49. As per RR 4-2021, The sale by a dealer of a residential

condominium is not subject to VAT when the price does not
exceed:
a. Php 1,919,500.00
b. Php 2,000,000.00
c. Php 2,500,000.00
d. Php 3,199,200.00

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 50. As per RR 4-2021, The sale by a dealer of a residential lot
only is not subject to VAT when the price does not exceed:
a. Php 1,919,500.00
b. Php 2,000,000.00
c. Php 2,500,000.00
d. Php 3,199,200.00

51. Annual levy on real estate equivalent to one (1%) of the

assessed value which shall be in addition to the basic real
estate tax is:
a. Special assessment tax
b. Special Education Fund Tax
c. Idle land tax
d. Special Real Estate Tax

52. In joint venture agreement between the developer and lot

owner, the engagement of a real estate consultant is necessary
except?
a. Ascertain fair market value of land and evaluate cost
estimate of developer
b. Review joint venture agreement
c. Market the finished project
d. Monitor and evaluate developer’s compliance with his
undertaking

53. Those who had passed the DTI licensure examinations in 2007
and prior years but failed to obtain their license upon
effectivity of R.A. No. 9646 may still register upon
effectivity of the RESA without examinations provided they have
earned CEP or CPE units as follows:
A. 120 CEP or CPE credit units
B. 12 CEP or CPE credit units
C. 15 CEP or CPE credit units
D. 18 CEP or CPE credit units

54. As a real estate practitioner, we should but not:

A. willingly share the lessons and experiences with fellow
brokers
B. solicit a listing currently listed exclusively with another
broker
C. pass a listing to a third broker without the knowledge and
consent of the listing broker
D. put sign or notice of a property for sale without authority
from the owner

55. Under The 1987 Constitution, private corporations and

associations may hold such alienable lands of the public domain
only by lease, not to exceed a total area of
A. 1,000 has.
B. 500 has.
C. 12 has.
D. 3 has.

56. An idle land consisting of 2.5 hectares valued at P 100 per

square meter was being taxed by the municipal assessor and

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classified as agricultural. If the idle land tax imposed is 5% by
the ordinance, how much will the owner pay for idle land tax?
A. P 40,000
B. P 100,000
C. P 20,000
D. P 50,000

57. It is the right given to an owner of an adjoining land to pass

or have access thru another land is called
A. Right of way easement
B. Right of way passage
C. Right of way for people
D. Right of way encroachment

58. A lessee who rented out an office space will pay his monthly
rental to the owner in the amount of P35,000 per month and a deposit
of P70,000. How much withholding tax must he deduct from the
payment?
A. P 1,750
B. P 3,500
C. P 5,250
D. P 10,500

59. The following is not exempted from basic real estate tax imposed
by the city:
A. Real property owned by the Republic of the Philippines as long as
these are not granted to any taxable person.
B. All lands, buildings and improvements actually, directly and
exclusively used for charitable, religious or educational purposes;
C. Private cemeteries or burial grounds;
D. Machineries and equipment that are actually, directly and
exclusively used by local water districts and government-owned or
controlled corporations engaged in the supply of water and/or
generation of electric power

60. David Rachett, an Australian citizen, may not be allowed to own

the following property in the Philippines
A. Residential condominium unit
B. Commercial Office condominium unit
C. House and lot
D. House built on leased land

61. Janet wants to become a dual citizen, while in the Philippines,

she must file a petition for dual citizenship with this government
agency
A. Department of Foreign Affairs
B. Philippine Embassy
C. Bureau of Civil Registry
D. Bureau of Immigration

62. The Register of Deeds required an affidavit of waiver from a

foreigner who is married to a Filipina to register the sale, which
is considered
A. A valid requirement of the Register of Deeds
B. Void
C. Voidable
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D. Required only if the foreigner is a husband

63. The Family Code of the Philippines, under EO 209, became

effective on
A. August 3, 1988
B. August 3, 1998
C. August 8, 1988
D. August 2, 1988

64. For the acquisition of a residential condominium unit by a

former natural-born citizen who has become a foreigner, it is
required that
A. Execute a sworn statement under BP 185
B. Must become a dual citizen
C. Not used in buy and sell of property
D. Not exceed 40% of the units

65. For Cebu City, the basic tax it may charge for real estate taxes
shall be
A. Not exceeding 1% of the assessed value
B. Not exceeding 1% of the fair market value
C. Not exceeding 2% of the fair market value
D. Not exceeding 2% of the assessed value

66. The following is not considered as good evidence or proof of

ownership of one’s land
A. tax declaration,
B. realty tax receipts,
C. deed of sale
D. lot plan

67. The following person cannot be considered to be a Filipino

citizen under the present law
A. Born of Filipino Father
B. A dual citizen under RA 9225
C. Declared a Filipino citizen by the President
D. A naturalized Filipino

68. The PRBRES shall have the power to prescribe guidelines and
criteria for this requirement for real estate service practitioners
in consultation with the accredited and integrated professional
organization of real estate service practitioners
A. Continuing Professional Education
B. Continuing Education for Professionals
C. Continuing Education Program
D. Continuing Practitioners Education

69. Referred to also as age of majority, at what age may a person

buy and sell property on his or her own
A. 18 years old
B. 18 years old with the consent of the parents
C. 18 years old with legal guardian
D. 21 years old

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70. For a couple planning to get married, the property relations
where each will own his or her own properties now and, in the future
is referred to as
A. Relative Community of Property
B. Separation of Conjugal Property
C. Conjugal Partnership of Gains
D. Absolute Community of Property

71. Under the Code of Ethics, the following is considered ethical,

A. Negotiate a property listed directly with the owner
B. Cooperate with other brokers on property listed even if not
licensed
C. Willingly share with other brokers the lessons from his
experience and study
D. Inform and criticize among fellow brokers another broker who is
not handling the sale properly

72. The Declaration of Principles of the Code of Ethics for Realty

Service Practitioners clearly states the Golden Rule which says
A. “Treat others as they want you to be treated”
B. “Do not do unto others what you do not want others do unto you”
C. “Do unto others as you would have them do unto you “
D. “Treat others as you like them to treat you”

73. The following shall be considered under R.A. No. 9646 as

engaging in real estate service practice
A. A person, natural or juridical, who shall directly perform by
himself/herself the acts mentioned in Section 3 hereof with
reference to his/her or its own property, except real estate
developers
B. Any receiver, trustee or assignee in bankruptcy or insolvency
proceedings
C. Any person acting pursuant to the order of any court of justice
D. Any person who is a duly constituted attorney-in-fact for
purposes of sale, mortgage, lease or exchange, or other similar
contracts of real estate, who require compensation or remuneration

74. The bundle of rights excludes the following as a right of

ownership
A. Right to use
B. Right to put up structure beyond restrictions
C. Right to enjoy the fruits on the land
D. Right to possess

75. The following acts of a broker are considered unethical. Which

act is considered ethical? for other persons such as client’s money
and similar items.
A. Encouraging the parties to a sale to undervalue the sale
B. Keeping a special bank account, separate and distinct from his
own funds, for all monies received in trust
C. Disclosing his client’s confidential personal information to a
fellow broker in order to close the sale.
D. Delaying submission of a formal offer that he had received from a
prospective buyer in the hope of securing a higher offer.

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76. A broker has just received from a fellow broker’s client a
written offer to purchase a property of his seller, together with a
check for earnest money payment. Which of the following steps is the
most proper and ethical for him to take?
A. Call another fellow broker whose client is also interested in the
property to improve the offer.
B. Call the seller immediately to inform him about the offer and
submit both the written offer and the earnest money payment.
C. Show the offer to another prospective buyer in the hope of
getting a better price for the seller.
D. Reject the first offer outright based on his opinion that the
offered price is too low.

77. Under DTI then, the Code of Ethics covering practitioners is

referred to as
A. National Code of Ethics for the Realty Service Practice
B. National Code of Ethics for Practitioners
C. Code of Ethics for the Service Practice
D. Code of Ethics and Responsibilities

78. It is not a ground for the Board not to register and issue a
certificate of registration to any successful examinee after passing
the examinations
A. convicted by a court of any criminal offense involving moral
turpitude
B. found guilty by his or her association of violation of the code
of ethics
C. found guilty of immoral or dishonorable conduct after
investigation by the Board
D. has been found to be psychologically unfit.

79. Which one of the following acts of a broker can be considered

within the bounds of the code of ethics?
A. Encouraging the parties to a sale to indicate a consideration
which is lower than the actual price.
B. Serving as a witness in court proceedings involving a property
owned by his client.
C. Criticizing the acts of another broker who does not know how to
handle the transaction.
D. Delaying submission of a formal offer that he had received from a
prospective buyer.

80. It is not a subject in the examinations for real estate brokers

A. Condominium concept and other types of real estate holdings;
B. Real estate finance and economics;
C. Basic principles of ecology;
D. Land management and strategic development of lands and waters

81. After a sale is consummated, the broker should not do the

following:
A. accept commission from both the seller and buyer without the
knowledge of either of the parties
B. assist the buyer to acquire possession and ownership of the real
property bought as agreed
C. see to it that both the buyer and seller concluded a fair
contract advantageous to both
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D. in case called upon to act as a witness, should give testimonies
in the most unbiased, honest, truthful and professional manner.

82. When advertising a property listing, the broker should not:

A. advertise without the consent of the owner
B. state the real estate broker’s license number in the ads
C. state the true picture of the property
D. advertise within the period of authority

83. In case of violation of the Code of Ethics of a broker who is a

member of a real estate service organization, the sanction that may
not be imposed
A. Suspension from association
B. Expulsion from association
C. Removal of license by the association
D. Fine imposed by the association

84. Dan and Danielle executed a marriage settlement specifying that

the regime of separation of property shall govern their property
relations during marriage. They are married in proper ceremonies on
September 1, 1988. Under the Family Code, which of the following
systems shall govern their property relations during their
marriage?
A. Absolute community of property
B. Separation of property
C. Conjugal partnership of gains
D. Exclusive property

85. In his advertisements, brochures or announcements regarding a

property for sale, he should present the following, except
A. a true picture of the property, its improvements, or rights and
interests therein
B. material facts concerning the property
C. whatever liens or encumbrances it may have, if any, and
D. the minimum price the owner would be willing to accept

86. As a real estate appraiser, the appraiser may not undertake to

make an appraisal or render an opinion in the following case
A. If within his field of his experience and competence
B. if he will also be the broker who will sell the property being
appraised
C. he obtains the assistance of another practitioner familiar with
such type of property or
D. the facts are fully disclosed by the client.

87. The State recognizes the vital role of real estate service
practitioners in the social, political, economic development and
progress of the country in the following, but not
A. promoting the real estate market
B. enhanced income from income taxes of practitioners
C. stimulating economic activity
D. enhancing government income from real property-based
transactions

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88. What will the total real estate taxes to be paid by a lot owner
for the year if his land consisting of 450 sqms. And with a fair
market value of the assessor at P6,000 per square meter is
classified as commercial the tax rate is the maximum imposable by
the city
A. P 54,000
B. P 27,000
C. P 10,800
D. P 40,500

89. The Chairperson and the Members of the Board shall, at the time
of their appointment, must possess the following qualification of
having been an active licensed practitioner of real estate service,
at the time of his appointment, for at least

A. Five (5) years

B. Ten (10) years
C. Twelve (12) years
D. Fifteen (15) years

90. The certificate of registration’s validity

A. Remains in full force and effect until revoked or suspended
B. Remains in full force and effect until every 3 years
C. Expires every December 31 of each year
D. Remains in full force and effect until revoked by HLURB

91. The Board may, after giving proper notice and hearing to the
party concerned, revoke the certificate of registration and the
professional identification card of a real estate service
practitioner, but not on the following ground
A. Procurement of a driver’s license by fraud or deceit;
B. Allowing an unqualified person to practice the profession by
using one's certificate of registration
C. Unprofessional or unethical conduct;
D. Malpractice or violation of any of the provisions of R.A. No.
9646

92. The owner of a house and lot sold the property owned by him and
rented out to foreigners in the business of leasing in the amount of
P4,500,000. The rate of tax on the sale shall be
A. 1.5%
B. 3.0%
C. 5.0%
D. 6.0%

93. How much should the documentary stamp tax be paid on the sale of
a parcel of land whose selling price is P 4,500,000 but the zonal
value was P5,000,000 and the market value done by independent
appraiser was P7,200,000?
A. P 75,000
B. P 67,500
C. P 300,000
D. P 198,000

94. An owner who leases out his house regularly in his business of
leasing earns a monthly rental of P50,000 on one residential house

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and another P 150,000 per month on his rentals from his office
building. How much will be his total output VAT for the year?
A. P 216,000
B. P 288,000
C. P 72,000
D. P 240,000

95. The foreclosed asset of a bank was sold in the amount of P

1,900,000 to the buyer. What will be the tax rate on the sale of the
said asset?
A. 1.5%
B. 3.0%
C. 6.0%
D. 5.0%

96. A real estate broker, VAT-Registered, will be earning a total

professional fee in the amount of P2,500,000, inclusive of VAT. How
much will be the net amount to be received by the broker after
deducting the withholding tax.
A. P 2,250,000
B. P 2,008,929
C. P 1,897,321
D. P 2,125,000

97. A province or city, or a municipality within the Metropolitan

Manila Area, may levy and annual tax on idle lands at the rate not
exceeding five percent (5%) of the assessed value on which of
following
A. Residential vacant lot in a subdivision
B. One hectare of land planted with 51 mahogany trees
C. Lot being disputed among two owners
D. 2 hectares of agricultural land ¾ of which are cultivated

98. The Assessor declared a fair market value of P5,500 per square
meter on a 1,000 sqm. land located outside a residential subdivision
and used in the business of parking space. How much is the assessed
value of the land if the assessment level of residential land is 20%
and commercial land is 50%
A. P 5,500,000
B. P 1,100,000
C. P 2,750,000
D. P 1,650,000

99. In case the appeal to the Local Board of Assessment Appeals is

not in your favor, where may you bring it up on appeal
A. Regional trial court
B. Central Board of Assessors Appeal
C. Central Board of Assessment Appeals
D. Department of Interior and Local Government

100. What is the monthly penalty interest on the basic real estate
taxes in case one fails to pay the tax due last year on a lot of 500
sqms classified as commercial and valued by the assessor at P 2,500
per square meter with a basic tax rate of 2%
A. P 250.00 per month
B. P 12,500.00 per month
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C. P 3,000,00 per year
D. P 240.00 per month

*** END OF FUNDAMENTALS OF REAL ESTATE PART OF THE MOCK EXAM ***

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