Ethical Standards for Real Estate Practice by Michelle M.

Esperal
Prelim Examination
Marks 45.00/50.00

Grade90.00 out of 100.00

Question 1

The hiring or the employment of the broker is accomplished by means of a ________ which creates an
agency relationship between the property owner and the broker.

brokerage contract

Question 2

Lea Villareal, a licensed REB and Rachel Villareal, an accredited RES, sold the property of Jacob Reid
with a 500 square meter at Php 12,000.00/square meter who paid the professional fee of 6.5% of the
contract price. Both parties agreed to a 50% - 50% sharing scheme. How much did each receive as
Broker's fee? (Round off the answer to the nearest peso).

Php 195,000.00

Question 3

The disclosure of the identity of the principal in a transaction is an important aspect of the
relationship between the principal and the broker. However there are instances where the undisclosed
principal exists. When this happens:

The broker is liable himself to the third party.

Question 4

As a real estate practice being raised to a profession, its affairs is now handled by what Board?

PRC of Real Estate Service

Question 5

It is a fee paid to a person who makes a sale. It is usually a percent of the selling price.

Commission

Question 6

Mr. Hoskins on November 7, 1938 founded the Manila Board of Realtors and set up the drafting of the
rules and regulations on brokerage called Commerce Administrative Order No. 3-6. When was this
adopted?

July 29, 1939

Question 7

Which of the following is a kind of Brokerage?

All of the above.

Question 8

Incorrect

Mark 0.00 out of 1.00

According to RA 9646, applicants as practitioners of real estate services must be Filipino citizens which
means an applicant must be natural-born Filipino citizen or naturalized Filipino citizen.

False

Question 9

Incorrect

Mark 0.00 out of 1.00

Conflict of interest between a real estate broker and his client arises when:

(i) The property offered by the real estate broker is owned by him or his relatives to the fourth civil
degree.

(ii) The property is owned by a partnership or corporation in which the real estate broker or his
relative within the same civil degree has no less that 20% proprietary interest therein.

(iii) The real estate broker fails to disclose that he is interested in buying or selling the property
himself.

(iv) The broker was engaged by the buyer for the broker to look for and negotiate the purchase of a
particular property.

All of the above are correct.

Question 10

It is a written contract of sale between two parties who agrees to the terms and conditions set forth.

Agreement of Sale

Question 11

It is one whereby the authority to negotiate for sale was verbally given.

Oral Listing
Question 12

Seth Mendoza is seeking to be registered and licensed as a real estate service practitioner thus he has
to undergo an examination as provided for by RA No. 9646. The scope of examination he is applying
for are as follows:

fundamentals of property ownership;

code of ethics and responsibilities;

legal requirements for real estate service practice;

real estate brokerage practice;

subdivision development;

condominium concept;

real estate finance and economics;

basic principles of ecology;

urban and rural land use;

planning, development and zoning;

legal aspect of sale, mortgage and lease;

documentation and registration;

real property laws and any other related subjects as may be determined by the Board.

He is preparing for real estate brokers examination.

Question 13

This refers to an authority given to a RE Broker by a Borrower-Mortgagor to look for and negotiate for
a Financier-Mortgagee or a Financier-Mortgagee to look for Borrowers-Mortgagor.

Loan Agency Listing

Question 14
Which kind of listing wherein the RE Broker may retain the difference between the contract price
received from the buyer over the net price given to the seller as professional fee or commission
compensation of REB professional services?

Net listing

Question 15

When did Mr. Hoskins founded the Manila Board of Realtors and set up the drafting of the rules and
regulations on brokerage called Commerce Administrative Order No. 3-6?

November 7, 1938

Question 16

A person directly engaged in the business of buying, selling or exchanging real estate property
whether on a full time basis.

Real Estate Dealer

Question 17

Which is true about Endorsement of Listing or Extension of Authority?

In this agreement, the listing RE Broker allows cooperating RE Broker to sell the listed property with an
agreement to share of the professional fees among themselves on an agreed sharing scheme.

Question 18

The relationship that exists when one person is employed to act for another is called:

Agency
Question 19

The following are the Basic Functions of Real Estate Broker, except:

Real Estate Broker engages in marketing or selling any real estate development project through all
forms of advertisements.

Question 20

Incorrect

Mark 0.00 out of 1.00

Which of the following buyers can benefit from Solicited Listing?

All of the above.

Question 21

The Mendez family's ancestral house was sold for Php 4.6M. How much money will they have after
they pay their real estate agent a 3.5% commission?

Php 4,439,000.00

Question 22

The Real Estate Service Act or RESA is also called as:

RA No. 9646

Question 23

It is where the compensation of the broker is his overpriced over and above the price net of all
expenses fixed by the property owner.
Net Listing

Question 24

A tact and diplomatic broker does what?

He appreciates delicate situations and acts accordingly.

Question 25

It refers to a cooperative arrangement among the RE Brokers for the sale of a real property in which
the professional fee shall be divided between the listing RE Broker and the selling RE Broker.

Multiple Listing

Question 26

Below are the five general steps or phases to complete a real estate cycle for the broker to earn
commission, fee or other valuable consideration. Which is the first step based on normal sequence?

Closing

Question 27

Below are the five general steps or phases to complete a real estate cycle for the broker to earn
commission, fee or other valuable consideration. What is the last step?

Closing

Question 28
Is one where the agent is authorized to perform a broad range of acts with stipulated limitations in
connection with the principal’s business.

General Agency

Question 29

It is one whereby the authority to negotiate for sale was given in writing.

Written Listing

Question 30

It is one wherein the professional fee or commission of the Real Estate Broker shall be based on a
stipulated percentage (%) of the contract price or price consideration.

Percentage Listing

Question 31

According to RA No. 9646, the chairperson and the members of the Professional Regulatory Board of
Real Estate Service or “Board” can neither be a member of the faculty of the institute, school, college
or university, nor have any pecuniary interest, direct or indirect, in any institution or association where
review classes or lectures in preparation for the licensure examination are being offered or conducted.

True

Question 32

Incorrect

Mark 0.00 out of 1.00

It is one wherein the authority to negotiate for sale or the authority to perform any of the real estate
transaction is given to two or more RE Brokers and the sale made by one of the RE Brokers.
Multiple Listing

Question 33

It is one where the agent is authorized to do one or more specific acts in accordance with detailed
instructions.

Special Agency

Question 34

It is a legally enforceable agreement to do, or not to do, a particular thing for a consideration.

Contract

Question 35

A real-estate agent is paid a monthly salary of Php 35,000.00 plus commission. Last month he sold one
condominium for Php 2,210,000.00, earning a 3.5% commission on the sale. How much was his
commission?

Php 77,350.00

Question 36

Incorrect

Mark 0.00 out of 1.00

This refers to is a percent of the selling price.

Agreement of Sale
Question 37

It is one whereby the Client-Seller authorized the Real Estate Broker to look for a buyer and negotiate
the property for sale.

Sales Agency Listing

Question 38

It is the price or subject matter, which includes a contract; may be in money, commodity, exchange, or
a transfer of personal effort.

Consideration

Question 39

According to RA No. 9646, the chairperson and the members of the Professional Regulatory Board of
Real Estate Service or “Board” can either be a member of the faculty of the institute, school, college or
university, or have any pecuniary interest, direct or indirect, in any institution or association where
review classes or lectures in preparation for the licensure examination are being offered or conducted.

False

Question 40

A real-estate agent is paid a monthly salary of Php 35,000.00 plus commission. Last month he sold one
condominium for Php 2,210,000.00, earning a 3.5% commission on the sale. What was his total pay
last month?

Php 112,350.00

Question 41
Is one where the agent is authorized to transact all of the principal's businesses of every kind.

Universal Agency

Question 42

The Republic Act No. 9646 (The Real Estate Service Act or RESA) was authored by one of PAREB's Past
National President, former Congressman Rodolfo G. Valencia. When was RESA approved by President
Gloria M. Arroyo?

June 29, 2009

Question 43

It is an authority given by the property owner to a RE Broker to look for a property to be exchanged
with his property.

Exchange Agency Listing

Question 44

You decided to sell your 3-story house for Php 5.3M with a 4.5% commission in place, as agreed
between you and the listing broker. How much will the broker earn?

Php 238,500.00

Question 45

In this contract, a broker is employed by a property owner to obtain a buyer or a tenant for his
property.

Listing Contract

Question 46

What does this mean the broker is industrious?

He is earnest and steady in follow-ups even the tiniest details of every transaction.

Question 47

This refers to a person who acts for or on behalf of another by authority from the latter.

Agent

Question 48

What does this mean the broker is dependable?

He is able to keep his promises for the customer wants to know that he will be there when he says he
will be there.

Question 49

It is where the seller-principal agrees to pay the listing broker a specific sum of money upon the sale of
the property.

Flat Listing

Question 50

A listing agency may be terminated in various ways.

By accomplishment of the object or purpose of the agency.

By operation of law.

By expiration of the period for which the agency was constituted.