LEGAL REQUIREMENT FOR REAL ESTATE SERVICE:

1. DTI MINISTRY CODE NO. 39, SERIES OF 1985 –real estate service practice in the phils prior to RESA
2. A GRADUATE OF RELEVANT BACHELOR’S DEGREE –required to be a real estate broker
3. JULY 30, 2009 –resa effectivity
4. REAL ESTATE ASSESSOR –govt official for taxation
5. REAL ESTATE DEVELOPER –corporation that engages with memorial parks
6. VALUER –another term for real estate appraiser
7. REAL ESTATE –land and all attached to it
8. ACCREDITED REAL ESTATE SALESPERSON –previously titled as salesman
9. ASSISTANT ASSESSOR –includes the chief assessor in a municipality
10. ACCREDITED AND INTEGRATED PROFESSIONAL ORGANIZATION (AIPO)
11. GRANDFATHER CLAUSE –licensed with DTI can still practice because of this
12. 4 MEMBERS –aside from 1 chairman, PRBRES has
13. ACCREDITED AND INTEGRATED PROFESSIONAL ORGANIZATION –responsible for the nominations of
PRBRES
14. ACCREDITED REAL ESTATE SALESPERSON –salesperson requirement
15. INTERIM ACCREDITED PROFESSIONAL ORGANIZATION –first national organization before AIPO
16. REGISTER WITH HLURB –aside from PRC, REB should also
17. PROFESSIONAL REGULATION COMMISSION –PRBRES should be supervised by
18. TERMINATION OF HIS EMPLOYMENT BY THE REAL ESTATE BROKER –registration with HLURB will be
terminated upon
19. UNETHICAL PRATICE –ground for PRBRES suspension
20. UNEXPIRED PORTION OF THE TERM OF THE MEMBER WHO VACATED –board vacancy term upon vacation
of a position
21. AT LEAST 2 YEARS OF COLLEGE –requirement for salesperson
22. AT LEAST HIGH SCHOOL GRADUATE –DTI salesman requirement
23. P 1000 –salesperson bond
24. COMMISSION ON HIGHER EDUCATION –works with PRBRES for the curriculum etc
25. PROFESSIONAL REGULATION COMMISSION –after filing with PRBRES, victims of violation call also file in
26. 24 CPE UNITS –required to renew license before RESA effectivity
27. PRESIDENT OF THE PHILIPPINES –can suspend board members
28. CONVICTION OF A CRIME OF SLIGHT PHYSICAL INJURIES –may not be a ground of the chairperson
29. REAL ESTATE SALESPERSON –no exams needed
30. PRBRES –prepares the exams
31. BS REAL ESTATE MANAGEMENT –degree for real estate
32. MUST BE A RESIDENT OF THE PHILIPPINES –not a requirement to quality for the exam
33. 5 YEARS –needed to a consultant, if appraiser already
34. 120 UNITS –before taking the REB exam
35. 75% -passing rate
36. 10 DAYS –results of the exam should be released in
37. UNTIL REVOKED –validity of the certificate of registration
38. 50% -no grade below
39. PROFESSIONAL IDENTIFICATION CARD –PRC should also give this aside from COR
40. TERESITA MANZALA-RESEARCH
41. 3 YEARS –renew the ID
42. P 20,000 –appraiser bond
43. P 20,000 –broker bond
44. UNAVAILABILITY OF LOCAL PRACTITIONERS TO ENHANCE THE PRACTICE –foreigners can practice here
temporarily if
45. 3 YEARS –renew the ID
46. REAL ESTATE CONSULTANT –no bond
47. THERE IS FOREIGN RECIPROCITY –foreigners can practice here if
48. TAKE AN OATH BEFORE THE BOARD –successful examine must do before praticing
49. AT LEAST ONE TRANSACTION –means you’re taking part in the practice
50. EMAIL ADDRESS OF PRACTITIONER –should not be included in the roster of registered professional
51. 20 PRC ACCREDITED AND HLURB REGISTERED REAL ESTATE SALESPERSONS –is to one broker
52. P 200,000 –fine if you engage with real estate transaction w/o license
53. CITY TREASURER OF MANILA –professional should be paid here if you’re office is in Manila
54. WITHIN 15 DAYS FROM THE RECEIPT OF DECISION –after found liable by PRBRES, he can appeal to the PRC
 55. TWO YEARS –a suspended license can be reinstated after
56. A HOUSEOWNER WHO WILL SELL HIS OWN LOT –not engage in the practice of real estate service
57. RE SALESPERSON –not reqd member of AIPO
58. P 200,000 FINE/ 4 YEARS –unlicensed appraiser penalty
59. 20 ACCREDITED SALESPERSONS –is to 1 broker
60. CERTIFICATE OF REGISTRATION –should be displayed in business
61. NATL CODE OF ETHICS AND RESPONSIBILITIES –promulgated by the board
62. 120 HOURS OF REAL ESTATE SEMINAR –continuing education program
63. DIVISION MANAGER –should be full time
64. THE PARTNER –liable for violation in real estate partnership
65. TEN YEARS PRACTICE –reqd to be a board member
66. FOUND TO BE PSYCHOLOGICALLY UNFIT –board shall not register COR
67. BE A MEMBER IN GOOD STANDING OF THE AIPO –to renew id, a real estate consultant is required to
68. A LICENSED REAL ESTATE APPRAISER –a requirement to be a city assessor
69. REAL PROPERTY ASSESSING OFFICER (RPAO) EXAMINATIONS –required prior to RESA
70. REAL ESTATE PRIVATE APPRAISER – 20,000 bond
71. P 1000 –salesperson bond
72. DEC 31 OF THE YEAR –HLURB expiration of salesperson
73. AIPO RECEIPT NUMBER –should be indicated PTR and license number
74. AUTOMATIC AND MANDATORY –membership of AIPO
75. ATLEAST 200,000 FINE –violation of resa
76. SECURING ACCREDITATION FROM PRC –what salesperson should do first
77. SERVICE –color blue in logo
78. SURETY BOND –bond of private real estate appraiser
79. ATTY IN FACT WHO DOESN’ T REQUIRE COMPENSATION –exempted from coverage
80. EDUARDO ONG –first chairman of PRBRES
81. RA 8981 (PRC MODERNIZATION ACT) –law that governs PRC
82. PHILIPPINE INSTITUTE OF REAL ESTATE SERVICE PRACTICE –AIPO approved by the PRC last 2011
83. PAPRB –group of various regulatory boards under PRC
84. MORE THAN 20,000 –total number of real estate service praticioners
85. REAL ESTATE ASSESSOR –following is not issued a separate license for the practice of their specified profession
86. 46 –total number of regulatory boards in the country supervised by PRC
87. OFFICE OF THE BOARD EXAMINERS –prior to PRC
88. 2009 –added RESA
89. VOCATIONAL TECHNOLOGY –not a sector under PRC
90. PROFESSIONAL MODERNIZATION ACT OF 2000 –law governing PRC
91. BUSINESS, EDUCATION, MANAGEMENT SECTOR –classification of real estate service
92. 7 YEARS –term of office of the commissioners of the PRC
93. NAME AND LICENSE ARE ENTERED IN THE PRC REGISTRY BOOK –prc law, definition of practicing
professional
94. PRBRES clustered the exam subjects into 3 SUBJECTS
95. PD 957 –law that governs the current practice of real estate service
96. JANUARY 31 –due date of yearly professional tax
97. LAST DAY OF FEB –community tax must be paid by the real estate broker to the local government
98. OCTOBER 2012 –first professional summit held by the PAPRB in cooperation with PRC
99. Judgment of the PRC becomes final within a period of 15 DAYS FROM RECEIPT OF JUDGMENT
rd
100. 3 WEEK OF OCTOBER –Philippine Professionals Competitiveness Week, Noynoy

FUNDAMENTALS OF PROPERTY OWNERSHIP

1. 1987 PHILIPPINE CONSTITUTION –main law governing the right to own real estate
2. REGALIAN DOCTRINE –all lands of the public domain belong to the state
3. 40% –maximum foreign ownership
4. FAMILY CODE OF THE PHILIPPINES –law that governs relations of a couple who wants to get married
5. AGRICULTURAL –lands that can be alienated
6. ½ SHARE –illegitimate child’s share on the legitime
7. EMINENT DOMAIN –power of the state to take private property for public use
8. ABSOLUTE COMMUNITY OF PROPERTY –property relations when there is prenup
9. POLICE POWER –power of the state to take away the land if used for illegal purpose
10. RIGHT TO DISPOSE –one of the most important right of a person who owns an agricultural land
11. 12 HECTARES –homestead land under 1987 constitution
12. CONTRACTUAL –limitation on the right of ownership aside from legal
13. SEPARATION OF PROPERTY –property relation with prenup stating that there’s a complete separation of
property
14. ALLUVIUM –name for the gradual deposited soil by a flowing river
15. NO RENOUNCEMENT OF CITIZENSHIP –pinoys can still buy property even after marrying a foreigner
16. STEWARD CONCEPT OF OWNERSHIP –owner should utilize the land properly for the general welfare
17. HAS THE BUNDLE OF RIGHTS –owner in fee simple
18. CONDOMINIUM CERTIFICATE OF TITLE –best evidence of condo unit ownership
19. EXPROPRIATION –proceeding to take private property for public use
20. LEASE THE LAND –if foreigners want to build a house
21. HEREDITARY SUCCESSION –filipinos that became foreign citizen can still own a house through this
22. PRENUP –should be executed for complete separation of property
23. USUFRUCT –right of fruits of property
24. AUGUST 3, 1988 –law that governs property relations between married people under New Civil code
25. 18 YEARS OLD BOTH –legal age to get married under the new family code
26. DEED OF RESTRICTIONS –voluntary limitation in one’s right of ownership
27. PRIVATE GRANT –when 2 neighbors goes into a sale
28. VOID AFFIDAVIT –signed by foreigner who’s wife bought a property
29. FORMER NAT’L BORN PINOY –can buy properties
30. COMMUNITY PROPERTY –even though a property is donated before the marriage
31. LEGAL HEIR –a foreigner can own a land via hereditary succession
32. PARAPHERNAL PROPERTY –property of wife which was inherited during marriage
33. JUS SOLI –citizenship is based on location of birth
34. FILE A PETITION IN BUREAU OF IMMIGRATION –to be a dual citizen this must be done by natural born pinoy
35. CO-OWNERSHIP –property relations if not married
36. 1 HECTARE –natl born pinoy can own a property in rural area
37. SHE GETS THE CONSENT OF THE HUSBAND –separated from husband but wants to sell property. Property
inherited prior to marriage
38. 5000 SQM –maximum area that can be purchased through foreigh investments act
39. INVOLUNTARY –if property loaned was sold in a auction
40. CAPITAL PROPERTY –sole property of the husband who is now married
41. BUYING AND SELLING –not included trade in foreigh investors act
42. ESCHEAT –govt may own a property of the deceased
43. 1000 HECTARES –corn business can lease a land from the government
44. THEY HAVE A JUDICIAL SEPARATION OF PROPERTY –wife and husband can sell to each other
45. 5 YEARS –period of time to question a husband who sold a conjugal property
46. TORRENS TITLE –imprescriptible and indefeasible
47. FOREIGN INVESTORS LEASE ACT -50 years lease renewable for another 25
48. ACT OF LEGISLATURE –citizenship aside from naturalization
49. LEGAL GUARDIAN CANNOT ACQUIRE THE LAND THEY ARE ADMINISTERING
50. ILLEGITIMATE –born without marriage
51. CORPORATION CAN LEASE PUBLIC DOMAINS FOR 25, RENEWABLE 25 YEARS
52. RIGHT OF WAY EASEMENT –right given the owner of a property behind yours
53. ACCRETION –gradual deposit of land by river
54. 60% -min pinoy ownership in a corporation
55. RELATIVE COMMUNITY OF PROPERTY –property relations if married in 1975 but no pre nup
56. EXCLUSIVE MONEY OF THE WIFE –husband has no consent with transfer of property. Before the family code
57. 25 YEARS –foreign investors lease act renewable up to
58. 10 YEARS –acquire possession if in good faith
59. JUDICIAL ORDER –can separate properties if there’s no marriage settlement
60. LEASE CONTRACT –temporary use of land
61. RECLAMATION –filling up submerged land
62. POP DENSITY OF 1000 PERSON/SQM –urban area
63. AFFIDAVIT UNDER BP 185 –first thing to do to acquire land by a natural born filipino
64. TAKING OATH OF ALLEGIANCE –to become dual citizen
65. 30 YEARS –acquire possession if in bad faith
66. JUDICIAL SEPARATION OF PROPERTY –if no marriage settlement, this must be issued
67. PARAPHERNAL PROPERTY –piece of land through inheritance, no marriage settlement
68. JUS SANGUINIS –citizenship by citizenship of parents
 69. PATRIMONIAL PROPERTY –escheated by government
70. A DUAL CITIZEN –may own a land in the phils
71. SPECIAL RESIDENT RETIREE’S VISA –a visa given to foreigner to reside in the phils under Philippine Retirement
Authority
72. PATRIMONIAL PROPERTY –not intended for public use
73. 0% -minimum amount of Filipino ownership of a real estate corporation
74. 750 sqm –a pinoy may apply for free patent under RA 10023, this is for first and second class municipalities
75. A child born out of wedlock from minor parents, but who eventually got married, will now be classified as
LEGITIMATE
76. A sale of parcel of land, bought by a foreigner who was not allowed to own land, sold eventually to a Filipino citizen
is VALID.
77. For a pinoy who Is a citizen of Australia, to be able to acquire land under BP185, the person should be born of
atleast one Filipino parent
78. LEGITIME –reserved for compulsory heirs
79. FOREIGN INVESTOR ACT OF 1991 –former natural born pinoy can acquire land in a rural area not to exceed 3
HECTARES
80. If marriage settlement is void, there’s an ABSOLUTE COMMUNITY OF PROPERTY
81. SALE BY CITY TREASURER DUE TO DELINQUENT TAXES is not considered a public grant
82. Illegitimate minor child may use the surname of the father who is married to another provided THE FATHER
EXECUTES AN AFFIDAVIT OF ACKNOWLEDGEMENT
83. INVOLUNTARY GRANT –land acquired through public auction
84. INTESTATE SUCCESSION –when a person inherits real estate from the deceased who died with a will but which
was declared void, would be an inheritance through
85. A Filipina can sell to her husband if there’s a JUDICIAL SEPARATION OF PROPERTY
86. IMMOVABLE AND MOVABLE –classification of property under civil code
87. 1987 CONSTITUTION –granting foreigners citizenship
88. CO OWNERSHIP –if two people, both single, lived together as husband and wife
89. The taking private property must be with payment of just compensation and for the purpose of PUBLIC USE
90. COMMUNITY PROPERTY –property inherited before marriage and married without settlement (girl)
91. Children can inherit upon DEATH OF THE FATHER/MOTHER
92. LEGAL HEIR –the only way for a foreigner to inherit property
93. SALE OF CONDO UNIT TO A FOREIGNER –NOT an involuntary grant
94. Marriage settlement should be executed BEFORE MARRIAGE
95. RENUNCIATION OF FOREIGN CITIZENSHIP –not a requirement of becoming dual citizen
96. RIGHT OF WAY AGREEMENT –considered a voluntary limitation on one’s ownership to land
97. 500 HECTARES –allowable leasable alienable land of the government
98. AVULSION –current river segragates from one estate on its bank portion of land and transfer to another estate
99. RIGHT TO RECEIVE RENT –right of owner of a parcel of land to receive civil fruits means the following
100. MUST BE TITLED LAND –not a requisite for the exercise of eminent domain

CODE OF ETHICS AND RESPONSIBILITIES

1. PRBRES –adopts the code of sthics and responsibilities
2. REAL ESTATE DEALERS –not covered by code of ethics
3. AIPO –prescribe and issue of code of ethics
4. NATL CODE OF ETHICS FOR REALTY SERVICE PRATICE –name of the code during DTI
5. BUSINESS –realty service is not a
6. REAL ESTATE BROKERAGE PARTNERSHIP –not covered by the code
7. THE DEVELOPER –relationship of broker to this is not covered by the code
8. ADEQUATE KNOWLEDGE, COMPETENCE AND EXPERTISE IN REAL ESTATE DEVELOPMENT AND
MANAGEMENT SHALL BE MAINTAINED –reason of CPE attendance
9. GOLDEN RULE –suggested by the code
10. AUTHORITY TO PAY SURETY BOND –not required for a practitioner
11. POSTAL ID –not required to secure
12. SPLIT COMM WITH AN UNLICENSED BROKER -unethical
13. TO UNDERVALUE THE PRICE -unethical
14. GOVERNMENT –in undervalution, broker is unethical to the govt
15. DEED OF ABSOLUTE SALE –license is not reqd to be written here
16. CERTIFICATE OF REGISTRATION –display in business
17. NO MAN IS AN ISLAND –practitioner should be imbued with social conscience
18. DISCRIMINATION -unethical
 19. CONCEAL RELEVANT INFO -unethical
20. PIGGERY –unethical to construct in residential area
21. THE TRUE BASIS OF CAPITAL GAINS TAX –tell the owner
22. PLACED IN SEPARATE BANK ACCOUNT –money from client to broker should be placed
23. NAME AND LICENSE NUMBER OF THE BROKER –salesperson requirement
24. IN WRITING –agreements should be (its ok if not notarized)
25. LOYALTY TO THE CLIENT –pleadge of a REP
26. PROPERTY TO APPRECIATE VALUE IN A YEAR -unethical
27. THE OWNER AND SELLER KNOWS AND BOTH AGREED –to accept dual commissions
28. BE AUTHORIZED BY THE OWNER –to put up a sign
29. NO LONGER PUT HIS OR HER SIGN FOR SALE –if there’s a sign already by another broker
30. 5,500,000 –owner’s price. Should be sold regardless of the value
31. HAVE THE SELLER AND BUYER CONCLUDE A FAIR DEAL –broker’s responsibility
32. TO TESTIFY IN TRUTHFUL MANNER –responsibility in a civil case
33. WITH ASSISTANCE FROM FAMILIAR WITH THE APPRAISAL OF SUCH –appraiser’s guide
34. THE OWNER OFFER TO LIST THE SAME TO THE NEW BROKER –ethical if the property is listed to another
broker
35. COME TO THE ATTENTION OF BROKER X FROM A DIFFERENT SOURCE –ethical to do if the listing is under
broker Y
36. THE LISTING BROKER HAS CONSENTED –if the property is listed exclusively
37. HIS OPINION SHOULD BE DONE WITH COURTESY AND PROFESSIONAL RESPECT –ethical thing to do if
property is listed under another broker
38. SHARE HIS EXPERIENCE ON THE TRANSACTION –responsibility of experienced broker
39. DISCUSS AND CLEAR THE COMMISSION ARRANGEMENT BEFOREHAND -ethical
40. EXHAUST THE REMEDIES WITHIN ORGANIZATION –before going to court
41. EXPULSION FROM THE ORGANIZATION –AIPO can do this to a broker if found guilty of a violation
42. THE BROKER CAN USE THE SERVICES OF THE SALESMAN OF ANOTHER BROKER PROVIDED HE PAYS
THE SALESPERSON A COMMISSION -unethical
43. THERE IS NO SIGN PLACED ON THE PROPERTY –a broker can only post a sign on the property if
44. THE LATEST OFFER SHOULD BE PRESENTED TO THE OWNER –ethical thing to do even when there’s a first
offer already
45. FIELD OF SPECIALIZATION AS A REAL ESTATE BROKER –should not be indicated in ads
46. TO TELL THE BUYER THERE ARE MANY INTERESTED ALTHOUGH THERE ARE ONLY A FEW INTERESTED
BUYERS -unethical
47. ELECTIONEERING DURING THE ANNUAL ELECTIONS –unethical if part of an organization
48. HE WILL ALSO SELL THE PROPERTY AFTER APPRAISING IT -unethical
49. WILLINGLY SHARE EXPERIENCE WITH NEW BROKERS -ethical
50. ENGAGE THE SERVICES OF THE SALESPERSON OF ANOTHER BROKER WITHOUT INFORMING THE
BROKER CONCERNED –unethical

REAL ESTATE LAWS AND TAXATION

Ø 3.0% -creditable withholding tax rate
Ø LOCAL GOVT CODE OF 1991 –taxation of real property is governed by
Ø SELLING PRICE –basis of capital gains tax
Ø CAPITAL GAINS TAX –sale of capital asset amount is 2,300,000; should be paid where the property is located;
penalty surcharge is 25% of 6% from the contract price
Ø FAIR MARKET VALUE AND TAX DEC –basis of the improvement tax on house and lot
Ø ORDINARY ASSET –foreclosed properties
Ø FINAL TAX –tax paid to BIR on a sale of a condo unit used as residence by the owner
Ø 25% -penalty surcharge; there’s also a penalty if you fail to build a principal house
Ø BID PRICE –basis of the capital gains tax, if the property was not redeemed
Ø CITY ASSESOR’S OFFICE –where to get value of the improvement; where to get latest certification
Ø CERTIFICATE AUTHORIZING REGISTRATION –BIR will issue this after full payment of capital gains tax
TH
Ø 5 OF THE FOLLOWING MONTH –capital gains tax should be paid
Ø PREPAID INCOME TAX –creditable withholding tax of the lot of a developer
Ø REGISTRATION WITH HLURB –habitually engaged in real estate
Ø 160,000 –ceiling for the lot value in socialized housing
Ø 30 DAYS FROM THE NOTARIZATION OF THE SALE –one must inform BIR to exempted from taxes from principal
residence sale; title must also be registered under a name of a natural person; exemption should be PUT IN
ESCROW; can only be availed every 10 years
Ø 5% WITHOLDING TAX
Ø P 15.00 –doc stamps of foreclosed property
Ø 30 DAYS FROM EXPIRATION OF REDEMPTION PERIOD –winning bidder must pay capital gains tax
Ø 15 % WITHHOLDING TAX –broker with 800k earnings
Ø CREDITABLE WITHHOLDING TAX –initially paid after a foreclosure
Ø P 1919500 –exempted from VAT
Ø 3% PERCENTAGE TAX – broker is subject to this tax
Ø P 12800 –rent exemption in VAT
Ø IF TOTAL SALES EXCEEDED 1919500 YOULL PAY VAT
Ø 18 CALENDAR MONTHS –should build a new house to be exempted from tax
Ø P 3199200 –exempted from VAT in condo
Ø ACTUAL USE OF THE PERSON IN POSSESSION –should be classified for the assessment purposes
Ø CURRENT AND FAIR MARKET VALUE –basis of assessor in valuing the property of the land owner
Ø 1% OF THE ASSESSED VALUE –basis real property tax in province; SEF fund rate
Ø ACTUAL USE –principal or predominant use
Ø NOT EXCEEDING 5% OF THE ASSESSED VALUE –basis on the idle land tax
Ø REAL PROPERTY TAX –assessed value x tax rate
Ø 2%/MONTH –penalty on real property tax
Ø APPROVED LOCAL TAX ORDINANCE –for the local govt to impose and implement local tax
Ø NOT EXCEED 40% -assessment level for agricultural lands
Ø ½ OF THE LAND –if the farm is uncultivated, itll be subjected to idle tax
Ø FAIR MARKET VALUE OF THE IMPROVEMENT –assessment level of the improvement of a property
Ø 20% DISCOUNT –early payment of tax in Baguio
Ø 4 EQUAL QUARTERLY PAYMENTS –real estate tax could be like this without penalty
st
Ø ON 1 OF JANUARY –local govt code accrues
Ø LAND WITH UNFAVORABLE PHYSICAL FACTORS –no idle land tax
Ø SHALL NOT EXCEED 60% OF THE ACTUAL COST- special levy for land benefitting public works and
improvements
Ø REGISTRAR OF DEEDS OF THE CITY –LBAA head
Ø 3 YEARS –max total liability of SEF late payment
Ø 60 DAYS FROM THE RECEIPT OF ASSESSMENT –should complain if someone doesn’t agree with the
assessment
Ø 30 DAYS FROM RECEIPT OF DECISION –if the decision is unfavorable, you can appeal to CBAA
Ø 60 DAYS FROM DATE OF TRANSFER –notify the assessor after ownership transfer
Ø PAY THE REAL ESTATE TAX –first thing to do if under protest
Ø PRESIDENT OF THE PHILS –can condone real estate taxes
Ø UNPAID DELINQUENT REAL ESTATE TAXES –local govt should file a notice of delinquency
Ø ASSESSED VALUE – fair market value x tax rate
Ø JAN 1 OF NEXT YEAR –all reassessment done after jan 1 should take effect
Ø OWNER MUST FILE A SWORN DECALARTION OF PROPERTY VALUE EVERY 3 YEARS
Ø NO ACTION FOR THE COLLECTION OF THE REAL ESTATE TAX SHALL BE INSTITUTED AFTER 5 YEARS
Ø LOCAL SCHOOL BOARDS –SEF beneficiary
Ø TAX DEC –assessment level may be found
Ø 2% OF THE ASSESSED VALUE –new tax rate in Cebu
Ø CITY ASSESSOR –not a member of LBAA
Ø 10 YEARS –assessment if first time to declare
Ø 1 YEAR RIGHT OF REDEMPTION –for foreclosure of delinquent tax payers
Ø ½ to 1% OF ASSESSED VALUE –socialized housing tax in QC
Ø NOT MORE THAN 100,000 –socialized housing is taxable in QC
Ø 50% -tax rate for commercial
Ø HOW MUCH WILL BE THE QUARTERLY TAX PAYMENT FOR A RESIDENTIAL VALUE AT 1800000 IF THE TAX
RATE IS 2%?
Ø THE OWNER FAILED TO PAY HIS BASIC REAL ESTATE TAX OF 10000 AND 5000 IN SEF. HOW MUCH WILL
BE THE TOTAL INTEREST TO BE PAID FOR THE 5 YEARS DELINQUENCY?
Ø NEXT QUARTER AFTER ASSESSMENT –if actual change in use is reported to the assessor office, it shall take
effect
Ø 3 YEARS –assessor should undertake general revision of real property reassessment
 Ø RA 9700 –CARPER comprehensive agrarian reform programs with extensions with reforms
Ø 5 YEARS –extension in CARPER
Ø NOT EXCEEDING 3 HECTARES – CARPER extends the land distribution programs
Ø 10 YEARS –lock in period of lands under CARP
Ø 5 YEARS –conversion of land if not economically feasible for agriculture
Ø BID PRICE OR ZONAL VALUE OR ASSESOR’S VALUE WHICHEVER IS HIGHER –basis of CGT/CWT in case of
non-redemption
Ø Donation of house and lot to the daughter is not subject of DOCUMENTARY STAMP TAX
Ø 0.5% -socialized housing tax for lands over 50k

SUBDIVISION DEVELOPMENT
Ø SUBD AND CONDOMINIUM BUYERS’ PORTECTIVE DECREE of 1976 –law that protects subv and condo buyers
Ø NATIONAL HOUSING AUTHORITY –tasked to provide responsive housing to low income families
Ø HLURB –Homeowner’s should register here; can file complaint here if noncompletion of project; approves the bank
loan of developers
Ø ATTACHED AGENCY TO HUDCC –highest policy making body for housing
Ø CERTIFICATE OF REGISTRATION –corporation w/c intends to develop a subdivision must first get this from
HLURB
Ø MACEDA LAW –governs the failures in amortization; sale through financing from the seller
Ø SUBDIVISION PROJECT –land parcel partitioned for residential purposes into individual lots
Ø COMPLEX SUBDIVISION PLAN –includes the streets, open space, passageway
Ø SOCIALIZED HOUSING –for underprivileged and homeless citizens
Ø DEVELOPER CAN ADVERTISE W/O LICENSE TO SELL AS LONG AS ITS FOR ANNOUNCEMENT PURPOSES
ONLY
Ø 30% -open space
Ø REAL ESTATE DEALER –person directly engaged as principal in selling
Ø LOCATIONAL CLEARANCE –written authority to develop a certain area; allowed under the provisions of the zoning
ordinance
Ø P 400,000 –ceiling for socialized housing
Ø FUTURE DEVELOPMENT NOT COVERED BY THE LICENSE TO SELL –should not be placed in advertisements
Ø SALE OF A SUBDIVSION LOT BY THE ORIGINAL PURCHASER THEREOF –exempted from registration
certificate
Ø PERFORMANCE BOND UNDER PD 957 SHALL BE MADE PAYABLE TO THIS REPUBLIC OF THE PHILS
Ø VERIFIED COMPLAINT OF BUYER –license to sell should be suspended
Ø CEAST AND DESIST ORDER –to start hearing for the PD 957 violation
Ø REALTY INSTALLMENT BUYERS’ PROTECTION ACT –law that governs the non payment of the buyer
Ø FULL PAYMENT OF THE UNIT – the developer shall deliver the title of the lot
Ø CERTIFICATE OF COMPLETION –if the developer intends to donate roads/open space to LGU, they have to
provide this
Ø NOT LESS THAN 10 HECTARES –phases of subdivision development
Ø NOT EXCEED P 10,000 –administrative fines of HLURB for PD 957 violations
Ø NOT EXCEED P 20,000 –fines in violation of PD 957
Ø NOT MORE THAN 10 YEARS –imprisonment
Ø 400 meters –maximum length of a block
Ø APPROVAL OF SUBD PLAN –task of LGU now, not HLURB
Ø 120 SQM –minimum lot area for single detached open market housing
Ø 4 M –minimum lot frontage for rowhouses in PD 957; requires 20 units per block
Ø 3.5 M –minimum lot frontage for rowhouses BP 220
Ø 150 LITERS/CAPITA/DAY –water connection for subdivisions
Ø BLOCK –parcel of land bounded by streets, pathways intended for building
Ø CONDO PROJ –entire parcel of real property divided in condominium
Ø DWELLING –generally defined as structure designed or used as residence
Ø SINGLE DETACHED –dwelling surrounded by yards
Ø DUPLEX -2 separate living units
Ø CORNER LOT –lot situated in the intersection of 2 or more streets
Ø IRREGULAR LOT –not squared or rectangle in shape
Ø AFFORDABLE COST –reasonable price based on needs and capability of Program beneficiaries, RA 7279
Ø 64 SQM –minimum lot size socialized single detached unit
Ø QUASI JUDICIAL –power of HLURB to hear and decide buyer complaints
Ø CLUSTER HOUSING -3 or more separate living units grouped closely together
 Ø SHELL HOUSE –met the min requirements for a housing core with add’l walls, plumbing, floor and electrical
Ø COMPLETE HOUSE –shell house with windows, doors and partition walls
Ø 3 METERS –minimum width of pathwalk
Ø REFUND PAYMENT SHOULD INCLUDE AMORTIZATION INTEREST EXCLUDING DELIQNUENCY INTERESTS
Ø IF BUILDING IS NOT COMPLETED, BUYER CAN GIVES NOTICE TO THE DEVELOPER AND MAY STOP FROM
MONTHLY PAYMENT
Ø MAGNA CARTA FOR HOMEOWNERS AND HOMEOWNER’S ASSOCIATIONS –law that governs homeowner’s
rights; fine for violating -- not less than 5k but not more than 50k
Ø 50% PLUS 1 –simple majority; can sign to remove director
Ø HOMEOWNER MEMBER’S DUTY EXCEPT PROPOSE MEASURES TO RAISE FUNDS
Ø A BOARD MAY BE DISSOLVE BY SUBMITTING A SIGNED PETITION OF 2.3 OF THE ASSOC MEMBERS
Ø 3 YEARS –allowable proxy for members

CONDOMINIUM CONCEPTS AND OTHER TYPES OF REAL ESTATE MORTGAGES

Ø EQUAL SHARE ON COMMON AREAS –if there’s no provision in master deed
Ø PROVISION FOR MANAGEMENT BODY OF THE PROJECT –not part of master deed
Ø CONDO CORP –coterminous with the life of the project; holds the title to the land
Ø 40% --foreigners’ share on townhouse project
Ø CCT –best proof of condo ownership
Ø BASED ON THE NUMBER OF BEDROOMS –not a measure of the interest in the common areas
Ø CONDO HOUSE RULES AND REGULATIONS –not included in the master deed
Ø AT LEAST ONE FOREIGNER OR UNITS WILL BE SOLD TO FOREIGNERS –condo corp is required
Ø THE OWNER IS LIABLE TO PAY REAL ESTATE TAXES OF HIS UNIT
Ø CONDO CORP MAY BE DISSOLVED BY AFFIRMATIVE VOTES OF ALL THE MEMBERS
Ø CONDO UNIT –interior surface of floor, ceiling, walls and exterior doors and windows w/c is for independent use
Ø MASTER DEED –share in the common areas may be found; most important document, owner must get the
knowledge
Ø UNIT OWNER DOES NOT HAVE TO PAY FOR SHARE IN INSURANCE OF THE CONDO
Ø MAJORITY VOTE SHOULD SHOULD BE PER FLOOR UNIT AREA –if there’ll be amendment on the master deed
Ø AN OWNER CAN SELL A UNIT UNLESS THERE IS A RIGHT OF FIRST REFUSAL –must first offered to existing
unit owners
Ø A NOTICE OF UNPAID ASSESSMENT IS REGISTERED WITH REGISTER OF DEEDS –lien
Ø COMMON AREAS –weight bearing walls, columns and beams, stairways, halls elev etc. including utilities and
amenities
Ø CERTIFICATE OF MANAGEMENT –to register a sale, one must get this from the condo corp
Ø GENERAL COMMON AREA –not subject to exclusive use
Ø LIMITED COMMON AREA –exclusive use like parking space
Ø THE CONDOMINIUM ACT –the governing law in buying a condo unit
Ø CITY ENGINEER –shall get the approved amendment of condominium apart from HLURB
Ø If damaged and ½ or more units are untenantable, there’ll be partition by sale if 30% of owners are opposed to
repairs
Ø Condo corp maybe dissolved if 50% are opposed to restoration of a 50 year old structure
Ø Condo corp shall not sell common areas unless authorize by SIMPLE MAJORITY OF THE REGISTERED
OWNERS
Ø COMPLY WITH USE RESTRICTIONS –responsibility of unit owner to condo corp
Ø A buyer may ask for a refund of the total amount paid iincluding AMORTIZATION INTERESTS BUT EXCLUDING
DELIQUENCY INTERESTS, WITH INTEREST THEREON AT THE LEGAL RATE
Ø HLURB –final approval if condo corp may integrate the project with another
Ø 6 MONTHS –temporary license to sell validity; issued so that the developer may start selling units
Ø 1000 SQM –minimum lot area for a farmlot
Ø 25% OF FARMLOT –buildable for residential
Ø REAL ESTATE INVESTMENT TRUST (REIT) Law –stock corporation for the purpose of owning income generating
real estate assets
Ø Constitutive Document means Articles of Incorporation
Ø FUND MANAGER –responsible for allocation of the deposited property
Ø PROPERTY MANAGER –professional administrator of real properties and management services
Ø AT LEAST 90% -REIT must distribute annually to its shareholders its distributable income
Ø AT LEAST 1000 PUBLIC SHAREHOLDERS –for REIT to be recognized as public company
Ø P 300,000,000 –minimum paid up capital for REIT
Ø 1% CREDITABLE WITHHOLDING TAX –REIT income payments is subjected to this
 Ø P10,000,000 –minimum paid-up capital of fund manager
Ø 10% FINAL TAX –cash and property dividends is subject to this
Ø SUBSCRIPTION TO SHARES OF STOCKS –way to make an investment in the REIT
Ø A developer wants to build townhouses but would like to build a condominium project instead – such development
would be called TOWNHOUSE PROJECT
Ø PROVISION FOR MAINTENANCE AND INSURANCE –not in master deed
Ø 750 SQMS –minimum size of farmlot
Ø Condo owner cant PAINT EXTERIOR WALLS OF THE UNIT
Ø CREMAINS –ashes from cremation
Ø INURNMENT –placing of cremated remains in an urn
Ø 500 SQM –minimum plot size for an industrial estate per hlurb admin order 2
Ø FACTORY PLOT –allocated lot in an industrial subdivision
Ø OSSUARY –internment space for bones
Ø PERPERTUAL CARE FUND –amount collected for columbarium project maintenance and upkeep
Ø 1 X 2.44 METERS –minimum burial plot size for ground internment
Ø 4 x 5 METERS –minimum plot size for mausoleum

LEGAL ASPECTS OF SALE, LEASE AND MORTGAGE

Ø THERE IS MEETING OF THE MINDS –for a contract to be valid
Ø CONTRACT OF SALE –one of the parties obligates himself to transfer the ownership of and to deliver a
determinate thing, and the other to pay therefore a price certain in money or its equivalent; 3 elements: cause,
being objects sold and consideration for the property
Ø SELLER MUST TRANSFER THE OWNERSHIP
Ø CONDITIONAL SALE –there is an agreement contained terms and conditions
Ø Spouses cant sell property to each other as a general except there’s a JUDICIAL SEPARATION OF PROPERTY
Ø AGENT CANT ACQUIRE THE PROPERTY THAT IS ENTRUSTED TO HIM BECAUSE OF FIDUCIARY
RELATIONSHIP
Ø NO RIGHT TO REDUCTION IN PRICE –if the transferred area is smaller than the indicated area
Ø EQUITABLE MORTGAGE –pacto de retro sale but was actually a mortgage
Ø RESIDENTIAL LOTS –covered by Maceda Law
Ø 60 DAYS GRACE PERIOD –for failure to pay monthly payments after 20 months
Ø MACEDA LAW = total payments made x percentage refund; Broker’s commission cant be refunded; 50% first 5
years + 5% every year after; RA 6552 rights of a buyer of a condominium unit, when he fails to pay monthly
installments under the contract to sell
Ø 4 YEARS PERIOD –pacto de retro sale but no mention of right to redemption
Ø Owner is obliged to MAKE PROPERTY SUITABLE FOR THE PURPOSE if it will enter in lease contract
Ø ASSIGN THE CONTRACT OF LEASE –lessee cant do this without consent of owner
Ø DEPOSIT –for unpaid bills and damages to the premises
Ø MONTH TO MONTH LEASE –if owner continues to receive rental during first 5 days after tenancy expiry
Ø 1 MONTH ADVANCE, 2 MONTHS DEPOSIT –rent control law
Ø Rental payment of lease shall be paid on the date as provided in the contract of lease
Ø NONPAYMENT OF 1 MONTH –owner can eject tenant: Makati 3 BR
Ø NEED OF LESSOR FOR USE OF HIS IMMEDIATE FAMILY –not a ground to eject the lessee
Ø CITY/MUNICIPAL TREASURER –lessee may deposit here in case the owner refuses to receive it
Ø 3 MONTHS –ejectment period under rent control act
Ø UNDER RENT CONTROL -YOU CANNOT SUBLEASE UNLESS THERE’S A CONSENT, increase should not
exceed 7%
Ø NONPAYMENT OF LANDLINE –not a ground for judicial ejectment
Ø LEASE CONTRACT IS VALID EVEN IF THERE’S NO WRITTEN AGREEMENT –meeting of the minds is enough
Ø UNLAWFUL DETAINER –case of the owner in case of ejectment
Ø MORTGAGE IS ACCESORY CONTRACT
Ø RENT TO OWN –no limit in increase
Ø 5% WITHHOLDING TAX –rent of an office space by a business corporation
Ø PACTUM COMMISSORIUM –immediately appropriate the property mortgaged upon non payment
Ø 3 MONTHS (90 DAYS) –right to redeem after foreclosure sale
Ø MORTGAGE SHOULD BE REGISTERED WITH REGISTRAR OF DEEDS
Ø REAL ESTATE MORTGAGE –property is the collateral
Ø FORECLOSURE SALE –should be sold at public auction
Ø SPECIAL POWER OF ATTORNEY –bank need this to sell the property under extrajudicial foreclosure
Ø PACTUM NON-ALIENDO –owner cant sell the property during the life of the loan
 Ø NON PAYMENT OF PRINCIPAL OBLIGATION –a ground for the foreclosure of a real estate mortgage
Ø LEGAL MORTGAGE –one required by express provision of the law
Ø ACCELERATION CLAUSE –upon non payment, the principal will become due and demandable
Ø 1 YEAR FROM REGISTRATION OF FORECLOSURE –mortgagor may redeem his property in extrajudicial
Ø CORPORATION MAY REDEEM THE PROPERTY FORECLOSED UNTIL BUT NOT AFTER REGISTRATION OF
SALE
Ø CHATTEL MORTGAGE –when personal property is recorded in the Registry of Property as security for the
performance obligation
Ø REGISTRATION –reason of notarization of lease contract
Ø OPTION –contract granting a person the privilege to buy or not to buy certain real property at anytime within the
agreed period
Ø GENERAL BANKING ACT OF 2000 –provides the redemption perio of foreclosed property of corporation from a
bank
Ø P 1 – 5000 –in Municipalities, this is the range of rent to be included in the RENT CONTROL ACT
Ø The buyer may rescind if there’s a lack of ATLEAST 10% OF THE TOTAL AREA
Ø VOIDABLE –sale of real property which is valid but which may be annulled on grounds
Ø A 5yr lease was entered into by parties and to be valid the same must be WITH A MEETING OF MINDS

DOCUMENTATION AND REGISTRATION

Ø IN PUBLIC INSTRUMENT –to be registered with the registry of property
Ø Contract of Sale is still valid even if it is not notarized; AT LEAST 18 YO
Ø Contract of Lease may be registered with the Registry of Deeds provided it must be DULY NOTARIZED
Ø Contract is VOIDABLE if there’s consent but vitiated as error, fraud or undue influence
Ø Deed must be duly notarized WHERE THE PARTIES WILL APPEAR BEFORE THE NOTARY PUBLIC
Ø For notarization purposes, a COMPETENT EVIDENCE OF IDENTITY MUST BE PRESENTED
Ø In case a sale of piece of land is through an agent, the authority of the latter must be IN WRITING; valid for 2 years
Ø For SPAs issued abroad and notarized by a native lawyer, the sale entered into is still valid.
Ø DEED OF EXTRAJUDICIAL SETTLEMENT –not a common designation for real estate transaction
Ø DACION EN PAGO –paying off loans by using property for payment
Ø UNILATERAL DEED OF SALE –may be executed by the seller to be able to sell w/o requiring the buyer to be
present; for buyers who are based abroad
Ø In DOAS, CAPACITY TO BUY LAND should be indicated with respect to the corporate buyer
Ø CORPORATE SECRETARY’S CERTIFICATE –sale must be accompanied by this for the purpose of signing for the
corp
Ø MINOR BE REPRESENTED BY THE LEGAL GUARDIAN –for minor to purchase condo unit
Ø ACKNOWLEDGEMENT –refers to an act whereby a person appears before a notary public
Ø VENDOR –in DOAs, the owner of the house being sold is generally referred
Ø POWER OF ATTORNEY –an authorization to act on someone’s behalf
Ø SPA –required if the owner will be represented by the daughter; lease of real property for more than 1 year
Ø PRIMARY ENTRY BOOK –where RD records the instrument of sale and other pertinent docs PD 1529
Ø LAW ON AGENCY –law governing use and requirement of a power of attorney in a sale
Ø CONTRACT OF AGENCY –where a person binds himself to render some service or to do something in
representation of another
Ø In Bilateral DOAS, seller and witness signs the DOAS
Ø AFFIDAVIT OF LOSS –owner must execute submit this at Registry of Deeds if the TCT cannot be located
Ø It is not required to submit the ORIGINAL COPY OF THE TITLE to register a sale with RD
Ø GENERAL POWER OF ATTORNEY –atty in fact should have this in rental transaction; it authorizes your agent to
act on your behalf for administration, general supervision and management
Ø In order to be issued a title with only tax dec, a title requires the filing of a land registration proceeding in the
REGIONAL TRIAL COURT WHERE THE PROPERTY IS LOCATED
Ø SUBSTITUTE POWER OF ATTORNEY –SPA of the SPA
Ø DEATH OF THE PURCHASER –SPA of executed by the buyer to purchase land will not be extinguish under the
this
Ø NOTICE OF LIS PENDENS –TCT annotation indicates that the property is involved in a civil case; land is subject to
case for recovery
Ø PRINCIPAL –owner who desires to sell will execute a SPA
Ø Land Registration Authority is under DOJ
Ø PD 1529 –Property Registration Decree
Ø ACT OF REGISTRATION –operative act to convey or affect land in a sale insofar as third persons are concerned
Ø OWNER’S DUPLICATE CERTIFICATE OF TITLE –presented with the deed of sale in the RD to register DOAS
 Ø TCT –indefeasible and imprescriptible
Ø CANCELLATION OF MORTGAGE –instrument executed by the mortgagee in the RD to discharge mortgage
Ø ADVERSE CLAIM –valid for 30 days; may be cancelled by the order of the court
Ø SEC 4, RULE 74 –lien in case of registration of deed of extrajudicial settlement; 2 years from date of registration;
there should be a VERIFIED PETITION FOR CANCELLATION to cancel this
Ø Settle of adjudication should be published ONCE EVERY THREE WEEKS for a DOES to be registered
Ø AFFIDAVIT OF PUBLICATION BY HEIR –proof for extrajudicial settlement has been done
Ø AFFIDAVIT OF SELF ADJUDICATION –if there’s one sole heir, this must be registered for the settlement of the
state
Ø There should be order of the court if there shall be erasures, alteration or amendment in Title.
Ø In case of loss, the owner may PETITION FOR ISSUANCE OF DUPLICATE OWNER’S CERTIFICATE OF TITLE
Ø REGIONAL TRIAL COURT –where the lost/destroyed titles shall be reconstituted; should be at least 10% (not less
than 500) of the titles
Ø Deeds, conveyances and other instruments shall be signed by at least TWO WITNESS
Ø CERTIFICATE OF REDEMPTION –must be presented in the RD to cancel the certificate of sale after the owner
was able to redeem the property
Ø TRANSFER TAX –No RD shall register a sale unless it is shown that the ff yearly taxes have been paid and
updated in the city’s treasury office
Ø LAND TITLING COMPUTERIZATION PROJECT –LRA should enable the quick and secure registration of land titles
in the country through the application of state-of the-art information technology under this program
Ø 2 YEARS –validity of notary public’s authority to perform notarial acts
Ø JUDICIAL FORM –form used for the issuance of the TCT
Ø SPA to be irrevocable the same must be COUPLED WITH INTEREST
Ø CONTRACT TO SELL OF A SUBDIVISION LOT –required by law to be registered with the RD
Ø LAND REGISTRATION AUTHORITY –exists for the sole purpose of implementing Torrens system
Ø LAND REGISTRATION ACT –prior to property registration decree
Ø EULALIO DIAZ III –current admin of LRA
Ø DOAS sale be registered with RD in ANY SUFFICIENT FORM

REAL ESTATE BROKERAGE AND PRACTICE

Ø PRESENTATION AND DEMONSTRATION –step in the brokerage process where the broker is showing the
unit/amenities
Ø TO DRAFT A LEGAL CONTRACT TO SELL is not considered a function of a real estate broker
Ø Salespersons should be DULY ACCREDITED WITH PRC
Ø LAW ON AGENCY –law that governs the relationship between broker and owner in lease transaction
Ø Broker MUST BE THE PROCURING CAUSE to be entitled to a professional fee
Ø EXCLUSIVE RIGHT TO SELL –REB would get a fee even though the owner was able to find a buyer
Ø REB –comm; Real Estate Dealer –PROFIT
Ø Owner –principal; REB –AGENT
Ø OPEN LISTING –there are many authorities to sell
Ø NET LISTING –prof fee beyond the minimum amount that the owner would want to receive
Ø PROFICIENCY IN ENGLISH –not really an essential element of REB
Ø UPON CONSUMMATION OF THE CONTRACT –REB is entitled to a professional fee; If there’s 2 brokers, comm
would be shared as agreed upon
Ø HOLDOVER CLAUSE –if buyer was registered within the period of authority to sell, broker is still entitled to a comm
Ø REAL PROPERTY –physical, tangible entity, together with all the additions on, above or below the ground, includes
all the rights, interests benefits related to the ownersip of real estate
Ø REB should be LICENSED UNDER PRC to lease wrehouses
Ø REAL ESTATE DEALER –engaged in trading and leasing his own real properties with purpose of profit
st
Ø SECURE PROPERTY LISTINGS -1 step in real estate brokerage practice
Ø The authority is still VALID even if it’s not in writing
Ø TREASURER’S OFFICE –where the professional tax must be paid
Ø PURCHASE AGENCY –if the principal is looking for properties to buy
Ø REGISTRATION NUMBER WITH PRC should be indicated in ads, calling cards etc
Ø MORTGAGE AGENCY –authority given by a buyer for the broker to secure financing
Ø JOINT VENTURE AGENCY - authority given by a party to look for a partner to develop a residential subdivision
Ø MULTIPLE LISTING –cooperative arrangement
Ø PROSPECT –a buyer who’s willing to buy a property
Ø BOARD RESOLUTION OF CORPORATION AUTHORIZING SIGNATORY –if listing is from a corp
Ø TURNOVER OF THE PROPERTY is not really part of the steps in real estate brokerage
 Ø The earnest money shall be considered as FORMING PART OF THE PURCHASE PRICE
Ø NEGOTIATIONS –thru broker mediations there’s meeting of the minds
Ø ESCROW –agreement (third party in sale transaction); agent (person)
Ø LISTING –authority by a REB to find a lessee
Ø OPTION MONEY –shall be separate and distinct from the purchase price;
Ø Another option aside from escrow is the RETENTION OF MONEY UNTIL SELLER VACATES
Ø PROJECT SELLING –general term to selling properties
Ø SHARING OF BROKER WITH ANOTHER BROKERS –not contained in an authority to sell
Ø EXCLUSIVE AGENCY LISTING –exclusive broker wont get the comm if the owner sold the property
Ø FIDUCIARY RELATIONSHIP –relation of trust that governs owner and listing broker
Ø REB may advertise the property for sale provided THE CONSENT OF THE OWNER IS GIVEN
Ø IRREVOCABLE AUTHORITY –not a mode of extinguishing agency bet owner and broker
Ø REB’s liability for the RES shall be limited to acts within the scope of authority given by the broker
Ø TO WARRANT THAT THE TITLE IS TRANSFERRED TO THE BUYER is not a duty of the real estate broker
Ø REB is not expected to have a working knowledge of Real estate assessment
Ø Difference between REB and Real Estate Dealer is ONLY THE BROKER EARNS PROFESSIONAL FEES
Ø SUSPECT –buyer willing to buy the but cannot afford the price
Ø NON-EXCLUSIVE LISTING –authority granted to 2 or more brokers to lease a property
Ø TRANSFERRING THE TITLE –not a function of REB
Ø DIRECT BUYER –buyer without engaging the broker
Ø REB TYPES: GENERAL AND PROJECT SELLING BROKERAGE
Ø FSBO –for sale by the owner
Ø LISTING BROKER –has an authority to sell a specific property
Ø REB is already considered a practicing broker when IN PRACTICE OCCASIONALLY
Ø In case of non payment of comm, the demand and claim will have to go to COURTS

REAL ESTATE FINANCE

Ø MULTIPLIER EFFECT –effect that is made in one aspect of the economy with the other economic activities
Ø NEEDS –can’t be predicted in real estate economics
Ø PRICE –result of the interplay and relationship between supply and demand
Ø Monthly amortization on a dimishing balance on installment sales of lots =amortization financed x amortization
factor
Ø BUYER’S MARKET –numerous lots being sold but only few buyers
Ø EQUITY –difference between total price and loanable amount
Ø INTEREST RATE AND TERM OF PAYMENT –where the amortization is based
Ø SELLER’S MARKET –few lots being sold but numerous buyers
Ø SPOT CASH/CASH PAYMENT–not considered as sale on financing
Ø 1000 sqm –maximum size of residential through Pagibig Financing
Ø In obtaining a housing loan, it is required that THE HOUSE PURCHASED MUST BE MORTGAGED TO THE BANK
Ø MONTHLY AMORTIZATION –monthly payments of an installment
Ø Amount to be financed =TOTAL CONTRACT PRICE MINUS DOWNPAYMENT
Ø 70 YEARS –maximum age limit for the maturity of payment of the loan in pagibig financing
Ø MORTGAGE REDEMPTION INSURANCE –addl requirement which is to pay off the loan or outstanding obligation
upon the death of the borrower
Ø DEFERRED CASH PAYMENT –where the buyer pays the total price within a short of period of time without interest
Ø MULTIPLIER EFFECT OF REAL ESTATE –effect of real estate on the other economic activities of the country;
1:16.6 –index used in the Philippines
Ø DP =TOTAL CONTRACT PRICE MINUS AMOUNT FINANCED
Ø MONTHLY INTEREST =(TCP X PERCENT PER ANNUM) / 12
Ø Freddie was paying a monthly amortization of P 54,100/month at 21% interest per annum. If the amortization factor
is 0.02705. How much is the amount being financed? ANS: 2,000,000
Ø DIMINISHING BALANCE –interests in payments decreases while the payment of principal increases
Ø LOAN VALUE –amount of the property used as a basis for the maximum amount of loan that can be given
Ø BALLOON PAYMENT –after 5 years of installment, buyer will make a lump sum payment at the end
Ø A movement in the supply of real estate housing versus the effective demand would affect the PRICE
Ø IN HOUSE FINANCING –provided by the developers
Ø 3,000,000 –maximum loanable amount in Pagibig
Ø CAPACITY TO PAY –bank will determine this to assess the loanable amount
Ø BRIDGE FINANCING –availed of by the borrower in the event his long term loan is not yet approved for the
purchase
 Ø ANTICHRESIS –credit acquires the title to receive fruits of a property from the borrower to be applied to the
payment of the interest and thereafter to the principal amount
Ø DEMOGRAPHICS –important and main determinant in the demand for housing
Ø HOME DEVELOPMENT MUTUAL FUND –provides most housing loans and provident loans to the public
Ø REPRICING –refers to the change in interest rates on agreed interval periods of the loan between the lender and
the borrower
Ø 100% -loan to value ratio for affordable housing through Pagibig Fund up to 400k
Ø LETTER OF GUARANTY –assurance given by a bank to the seller that he/she will be paid by the bank for the
approved buyer’s loan under certain conditions
Ø 4.5% -interest rate under the present affordable housing of pagibig
Ø MORTGAGEE –lends money to the borrower
Ø 2000 –processing fee to be paid by a borrower of a Pagibig loan at the time of approval and take out
Ø 6.6% -GDP growth of Phils 2012; 7.1 2013; 6.1 2014; 5.8 2015
Ø 3 MEMBERS –maximum number of Pag-ibig members that may be tacked into a single loan
Ø 2950 CONTRIBUTION –Pagibig loan 5.9 to 6M
Ø 65 YEARS OLD –age limit of pag-ibig loan
Ø PRETERMINATION PENALTY –amount charged to the borrower for early payment of the principal
Ø CTS –arrangement made with the developer and pag-ibig fund to guarantee the payment of the monthly
amortization by the borrower and failure of which within a certain period, the developer will buy back the contract to
sell from Pag-ibig
Ø 1.9% -population growth per NEDA from 2000-2010

URBAN AND RURAL LAND USE

Ø URBAN DEVELOPMENT AND HOUSING ACT OF 1992 –law providing for a comprehensive urban and housing
program in the Phils. RA 7279
Ø AREAS FOR PRIORITY DEVELOPMENT -244 areas in Manila identified in Proclamation 1967
Ø URBAN LAND REFORM ZONES –term used interchangeably to refer to areas for priority development
Ø 284 –present number of APDs/ULRZs
Ø LAND USE PLAN –allocating available land resources as equitably as possible among competing user groups for
diff functions
Ø LAND ASSEMBLY –acquisition of lots of varying ownership through purchase or expropriation for the purpose of
planned development and socialized housing programs without individual property restrictions
Ø ON SITE DEVELOPMENT –process of upgrading blighted and slum urban areas with a view of minimizing
displacement of dwellers in said areas
Ø SMALL PROPERTY OWNERS –not exceeding 300 sqm residential lots in highly urbanized areas; 800 sqm in other
urban areas
Ø LAND BANKING –acquisition of lands in advance of actual need to promote planned development and socialized
housing programs
Ø LAND SWAPPING –process of land acquisition by exchanging land for another piece of land of equal value, or for
shares of stock in a government or quasi government corporation, for the purpose of planned and rational
development and provision for socialized housing
Ø PROFESSIONAL SQUATTERS –occupy the land without consent of the owner and who have legitimate income for
housing
Ø SECURITY OF TENURE –degree of protection afforded to qualified beneficiaries against unjust eviction
Ø RESETTLEMENT AREAS –used for relocation of the underprivileged and homeless citizens
Ø SLUM IMPROVEMENT AND RESETTLEMENT PROGRAM –program of NHA of upgrading and improving blighted
areas outside metro manila
Ø SQUATTING SYNDICATES –groups of persons engaged in business of squatter housing
Ø UNDERPRIVILEGED AND HOMELESS CITIZENS –beneficiaries of this act
Ø Urban areas in RA 7279 -500 persons/sqKM
Ø URBANIZABLE AREAS –lands which display marked and great potential of becoming urban areas within 5 years
Ø For planning purposes, HUDCC shall be furnished by the LGU a copy of its inventory EVERY 3 YEARS
Ø EXPROPRIATION/ACQUIRING PRIVATE LANDS –least priority in modes of acquisition
Ø DEPARTMENT OF FINANCE –land valuation guidelines shall be set on the latest real property tax dec by this
agency
Ø Should the beneficiary unlawfully dispose lot shall also lose right to land, and shall be barred from benefits under
this act from date of violation for a period of 10 YEARS
Ø A Beneficiary must not be UNDERPRIVILEGED AND HOMELESS to qualify for a socialized housing program
Ø EXEMPTION FROM PAYING LOCAL REAL ESTATE TAXES –not an incentive to encourage greater participation
in socialized housing
 Ø NHA or LGU –provides socialized housing or resettlement areas
Ø ON SITE DEVELOPMENT –shall be implemented whenever possible in order to ensure minimum movement of
occupants of blighted lands and slum areas
Ø 6 YEARS IMPRISONMENT; 60,000 – 100,000–penalty of professional squatters and squatting syndicate
Ø WHEN THE PRIVATE OWNER NEEDS THE LAND –squatters should be evicted or demolished
Ø ADEQUATE PERMANENT LOCATION –not a mandatory in execution of eviction or demolition
Ø PREVAILING MINIMUM WAGE X 60 DAYS –financial assistance if the relocation provided not be possible with the
period
Ø Relocation shall be undertaken by the LGU concerned and the NHA with the assistance of other government
agencies from service of notice by the court within 45 DAYS
Ø ESTEROS, RAILROAD TRUCKS, RIVERBANKS –unlawful to build structures
Ø COMMUNITY HOUSING PROGRAM –mortgage financing program of the NHMFC –assists legally organized
associations of underprivileged and homeless citizens to purchase and develop a tract of land under the concept of
community ownership; EXEMPTED FROM CAPITAL GAINS TAX; SHALL NOT BE EVICTED IN 3 MONTHS;
administered by NHA
Ø 1/2 OF 1% OF THE ASSESSED VALUE –constitutional principle that the ownership of property’s social function
and to raise funds, all local government units are authorized to impose an additional RET on land of; additional may
be imposed on urban lands shall only be applied to lands with 50,000 assessed value over
Ø UP TO 6 YEARS IMPRISONMENT AND 5K – 100K FINE –violators of RA 7279
Ø LGU –responsible for implementation of RA 7279; mandated to provide local housing needs for constituents
Ø Urban Land Reform was declared under the law under PD 1517
Ø Decisions of Local zoning boards may be appealed to HLURB
Ø COMPLIANCE PROJECT –project utilized to comply with the balance housing development required under section
18 of RA 7279
Ø NON PERFORMING SOCIALIZED HOUSING ASSETS –socialized housing units of projects owned by the
government housing agencies needing rehabilitation and restoration before they can be made available for sale
Ø POTABLE WATER –basic service provided by LGU or NHA in socialized housing
Ø CAPITAL GAINS TAX ON RAW LAND USED FOR THE PROJECT –tax exemptions to encourage greater private
sector participation
Ø TOTAL SUBDIVISION AREA –gross land area + aggregate floor area of all housing units under RA 7279

PLANNING, DEVELOPMENT AND ZONING

Ø HLURB –assists LGU in the formulation of their respective land use plans
Ø LOCAL GOVERNMENT CODE OF 1991 –law that provides that the local government shall prepare respective land
use
Ø 12 STEPS TO LAND USE PLANNING –recommended in forming LUP
Ø TOWN PLAN –official public document adopted by the local government units as a guide to decision regarding the
physical and socio-economic development of the community
Ø LAND USE PLAN –allocation of land resources to different use on the comprehensive and integrated plan for the
area
Ø ZONING –division of the community into functional zones; concerned with use of land, control of density thru
imposition of building height control, open space etc
Ø LAND USE PLANNING –refers to the rational and judicious approach of allocating available land resources to
different land using activities such as residential, commercial etc
Ø Land use plans shall be enacted through their respective ZONING ORDINANCE (logical arranges, prescribes and
apportions a given political subdivision)
Ø ZONING MAP –a graphic presentation of the zone classifications
Ø STAKEHOLDER –has an interest in the development activity, program or project
Ø CARRYING CAPACITY ANALYSIS –studying the effects of population growth and urban development on the
ecosystem
Ø R-1 –low density residential
Ø C-2 –medium density commercial zone
Ø SHZ –socialized housing zone
Ø POLICE POWER –legal basis of the LGU to zone areas
Ø BUILT-UP AREA –contiguous grouping of 10 or more structures
Ø CBD –areas for trade, services and business purposes as used in the zoning ordinances
Ø CONFORMING USE –use of an area in accordance with the zoning classification
Ø CLUP –docu embodying specific proposals for guiding, regulating growth and development of a city
Ø EXCEPTION –grants an owner relief from certain provisions of a zoning ordinance
Ø FAR = GFA/LOT WHERE IT STANDS
 Ø CONFLICTING USES –refers to uses or land activities with contrasting characteristics sited adjacent to each other
Ø COMPATIBLE USE –capable of existing together harmoniously
Ø CERTIFICATE OF NON-CONFORMANCE – certificate issued to owners of all uses existing prior to the approval of
the zoning ordinance which do not conform in a zone as per provision of the said ordinance
Ø AGRICULTURAL ZONE –intended for cultivation/fishing and pastoral activities
Ø REZONING –process of introducing amendments to or a change in the text or maps of the zoning ordinance
Ø ZONING ADMINISTRATOR –employee responsible for the implementation of the zoning ordinance
Ø SETBACK –open space left between the building the lot lines is referred to
Ø I-2 –Medium Industrial Zone
Ø 66 DWELLING UNITS OR MORE PER HECTARE –High density residential
Ø LOCAL ZONING BOARD AND ADJUSTMENT APPEALS –where application for exemption is filed
Ø MALLS –High density commercial zones
Ø GOLF COURSE –not considered environmentally critical area
Ø WATER BODIES TAPPED FOR DOMESTIC SOURCES –not environmentally critical project
Ø In low residential zone no building should be higher than 10 METERS
Ø AIR TRANSPORTATION OFFICE –prescribes the height limit in the national building code
Ø GFA –total floor space within the perimeter of the permanent external walls
Ø SPECIAL INSTITUTIONAL ZONE –institutional establishments like welfare homes, homes for the aged etc
Ø GENERAL RES ZONE –no filling station/service station
Ø 20 DWELLING UNITS AND BELOW –low density residential
Ø BEDROOM –not a customary accessory in dwelling units
Ø BUFFER AREA –separates incompatible elements, uses to control pollution, no permanent structures are allowed
Ø TOURIST ZONES –sites within cities endowed with natural physical attributes and resources that are conducive to
recreation, leisure and other wholesome activities
Ø WATER ZONE –bodies of water within cities or municipalities w/c includes rivers, streams, lakes, and seas

ECOLOGY
Ø ECOLOGY –Ddistribution and abundance of life and interactions between organisms and their environment; syn -
natural environment
Ø ECOSYSTEM –all organisms living in a particular area, as well as nonliving, physical components of the
environment
Ø BIOMES –major regional grouping of plants and animals
Ø ABIOTIC –non living and physical components of the environment
Ø DENR –tasked to protect the envi and natural resources of the country
Ø ENVIRONMENTAL IMPACT ASSESSMENT –process that involves predicting and evaluating the likely impacts of a
project
Ø ENVIRONMENT COMPLIANCE CERTIFICATE –proponent conforms with by signing the sworn undertaking of full
responsibility over implementation of specified measures which are necessary to comply with existing
environmental regulations
Ø THE PHILIPPINE CLEAN AIR ACT OF 1999 –law that governs the protection of the environment, particularly
covering the pollution control of the atmosphere
Ø CERTIFICATE OF NON COVERAGE –project is not covered by the EIS system and is not required to secure an
ECC
Ø ENVIRONMENTAL CRITICAL PROJECT –project which may pose significant negative impact at certain threholds
of operation regardless of location
Ø ENVIRONMENTALLY CRITICAL AREA –environmentally sensitive such that significant environmental impacts are
expected if certain types/thresholds of proposed projects are located, developed or implemented in it
Ø ABANDONMENT STAGE –there shall be specific measures and conditions that the project proponent has to
undertake
Ø Most problematic sources of pollution air, water, and SOLID WASTE
Ø AIR POLLUTANT –any matter found in the atmosphere that is detrimental to health
Ø AMBIENT AIR QUALITY –general amount of pollution present in a broad area; atmosphere’s average purity
Ø CERTIFICATE OF CONFORMITY –certicate issued by DENR certifying that a new vehicle meets the requirements
of the law
Ø GREENHOUSE GASES –potentially be expected to induce global warming
Ø INFECTIOUS WASTE –means that portion of medical waste that could transmit an infectious disease
Ø ECO-PROFILE –geographic based instrument for planners and decision makers which present an evaluation of the
environment quality and carrying capacity of an area
Ø MEDICAL WASTES –materials generated as a result of patient treatment
Ø OZONE DEPLETING SUBSTANCES –substances that deplete ozone layer
Ø INCINERATION –burning of waste which emits poisonous and toxic fumes
Ø SIGA –called the traditional small-scale method of community neighborhood sanitation
Ø TREATMENT –not part of the sold waste reduction scheme
Ø DISPOSAL –in hierarchy of solid waste management, the following is the last method considered
Ø AGRICULTURAL WASTES –generated from planting/harvesting crops
Ø BULKY WASTES –cant be appropriately placed in separate containers because of size, shape or other physical
attributes
Ø COMPOSTING –controlled decomposition or organic matter by micro-organisms
Ø CONTROLLED DUMP –disposal site at which solid waste is deposited in accordance with the minimum prescribed
standards of site operation
Ø ECOLOGICAL SOLID WASTE MANAGEMENT –systematic administration of activities which provide segragation
at source, segregated transportation, storage, transfer, processing, treatment, and disposal of solid waste
Ø LEACHATE –liquid produced when waste undergo decomposition and when water percolate through solid waste
undergoing decomposition
Ø MATERIALS RECOVERY FACILITY –solid waste transfer station; sorting, drop-off, composting, recycling
Ø OPEN DUMP –wastes are indiscriminately thrown of without due planning and consideration for environmental
standards
Ø RE-USE –process of recovering materials intended for the same or different purposes
Ø SANITARY LANDFILL –site designed, constructed, operated and maintained in a manner that exerts engineering
control over significant potential environmental impacts
Ø SOLID WASTE –discarded household, commercial, non hazardous, agricultural and other solid waste
Ø SOLID WASTE MANAGEMENT –discipline associated with control of generation, storage, collection, transfer, and
transport, processing/disposal of solid wastes
Ø SPECIAL WASTES –paints, thinners, batteries, spray canisters and the like
Ø TRANSFER STATIONS –facilities to receive solid wastes, temporarily store, separate, convert, or process the
materials in the solid wastes, or to transfer the solid wastes directly from smaller to larger vehicles for transport
Ø BLACK –color of non biodegradable solid waste container
Ø GREEN - color of biodegradable solid waste container
Ø DOMESTIC SOURCES –largest source of water pollution
Ø POINT SOURCE –identifiable source with specific point of discharge into body of water
Ø NON POINT SOURCE –cropland runoffs, animal wastes, construction sites, mining and logging operations,
landfills, spils
Ø DRINKING WATER –water intended for human consumption
Ø FRESHWATER containing dissolved common salt containing less than 500 ppm
Ø GROUNDWATER –subsurface water occurs beneath a water table in soils and rocks or in geological formations
Ø SEWAGE –water borne wastes, excluding oil or oil wastes, removed from residences, bldgs. Etc. discarded
Ø EFFLUENT –discharge from known sources which is passed into a body of water or land
Ø SURFACE WATER –all water which is open to the atmosphere and subject to surface runoff
Ø LAGUNA LAKE DEVELOPMENT AUTHORITY –shall have exclusive jurisdiction to issue permit for the use of all
the surface water for any projects in or affecting the said region
Ø LAGUNA DE BAY REGION –rizal, laguna (san Pablo), pasay Caloocan, quezon, manila, tagaytay, town of carmona
cavite
Ø SLUDGE –solid or semi solid or liquid waste or residue generated from wastewater/water treatment plant, waste
control pollution facility
Ø NATIONAL COMMISSION ON INDIDENOUS PEOPLE –primary govt agency for indigenous people
Ø Total number of ethnoliguistic groups of indigenous people is estimated to be 110
Ø INDIGENOUS CULTURAL COMMUNITIES –refers to a group of people or homogenous societies identified by self
ascription and ascription by other who have continuously lived as organized community on communally bounded
and defined territory
Ø WRIT OF KALIKASAN –remedy available to a non-governmental organization whose constitutional right to a
balanced and healthful ecology is violated
Ø FREE AND PRIOR INFORMED CONSENT –consensus of all the ICCs/IPs to; be determined in accordance with
their respective customary laws/practices
Ø A petition for protection of the environment shall be filed with the SUPREME COURT
Ø CERTIFICATE OF ANCESTRAL DOMAIN TITLE –a title recognizing the rights of possession and ownership of
ICCs/IPs over ancestral domains
Ø TEPO –Temporary environmental protection order
Ø WASTE AVOIDANCE AND REDUCTION –Highest priority in hierarchy of solid waste management
Ø DOMESTIC WASTE –highest major source of water pollution
 Ø EPO (ENVIRONMENTAL PROTECTION ORDER) –order issued by the court directing or enjoining any person or
government agency to perform or desist from performing an act in order to protect the environment

REAL ESTATE APPRAISSAL, SITE LOCATION AND MAP READING

Ø REAL ESTATE APPRAISSER –graduate of relevant bachelor’s degree; private practitioner (valuer) required to post
a 20,000 bond; city assessor should get a licensure to be promoted in higher position
Ø APPRAISSAL –estimate of value as of a particular point in time expressed in peso amount; NOT for capital gains
tax
Ø ORAL REPORT –not allowed anymore under RESA
Ø PARTITIONING OF ESTATE –purpose of appraisal where it is used to determine the FMV for distribution to heirs
Ø PRINCIPLE OF SUBSTITUTION –value of replaceable property intends to be indicated by the value of equally
desirable substitute property; market data approach (considered an approach to value) is related
Ø PRINCIPLE OF HABU –most likely to produce the greatest net return
Ø INCREASING AND DECREASING RETURNS –application of larger and larger amounts of the agents in production
will produce greater and greater net income up to a point is
Ø PRINCIPLE OF CONFORMITY –reasonable degree of social and economic homogeneity
Ø PRINCIPLE OF ANTICIPATION –value is worth of all present and future benefits arising from ownership; income
approach (estimates of the actual or stabilized gross income less provisions for vacancy and bad debts, operating
expenses, real estate taxes, repairs and maintenance, and administrative charges) is related
Ø PRINCIPLE OF REGRESSION/PROGRESSION -old right beside new, increased or decreased value
Ø SOCIAL AND IDEAL STANDARDS –considered a factor that creates value
Ø FUNCTIONAL OBSOLESCENE –value depreciates in view of the decline in the utility or feature of the property
Ø COST APPROACH –utilizes the concept of determining replacement cost
Ø If building depreciates 2% per year, life of the building will be 50 YEARS
Ø Gross income multiplier = selling price of a comparable property / ANNUAL GROSS INCOME
Ø TIE LINE –considered an imaginary line used by the geodetic engineer in plotting and locating a specific property
Ø VICINITY MAP –map w/c provides the general location of a real property including the surrounding landmarks and
reference points
Ø GEODETIC ENGINEER –professional who undertakes resurvery, sevey and determination of lot boundaries
Ø LOT PLAN –determines the shape and dimensions of the lot being purchased
Ø PACING –counting of steps in a required distance to determine distance
Ø BEARING –angle less than 90 degrees measure from N to S and referred to in plotting a lot as
Ø ONE DEGREE = 60 MINUTES
Ø GEOHAZARD MAP –identifies flood prone and landslide prone areas
Ø TOPOGRAPHIC MAP –map showing all the details that make up the surface features of the earth
Ø CONTOUR LINES –lines that indicate variation in land elevation
Ø SUBDIVION PLAN –plan showing general features and layout of a subdivision including block and lots and open
spaces
Ø BUREAU OF LANDS BARRIO MONUMENT –common point of reference is seen in the technical description
Ø HYDROGRAPHIC SURVEY –principal purpose is the determination of data relating to bodies of water
Ø LAND CLASSIFICATION SURVEY –classification of the country’s unclassified public forests into alienable or
disposable lands
Ø Psu = private survey
Ø Pcn = private consolidation subdivision survey (IF BUYER BOUGHT ADJACENT LOTS)
Ø Psd = private subdivision
Ø BEARING AND LOT POINTS –to plot the shape and details of the lot
Ø VALUE –relationship between a thing desired and a potential purchaser
Ø PURCHASING POWER –observation in principles of appraisal is that the desire for the property must be backed by
Ø SUN ORIENTATION –not a value factor in the appraisal of parcel of land
Ø DETERIORATION –loss in value brought about by the wear and tear and the action of natural elements
Ø BUREAU OF LANDS –approves the subdivision plan of a parcel of land which has been subdivided into several lots
Ø CYLINDRICAL CONCRETE MONUMENT –marker used in the lot plan boundaries on the parcel land
Ø MARKET DATA APPROACH –sales comparison approach
Ø REPRODUCTION COST –cost to create a virtual replica of a n existing building using the same design and similar
building materials