CODE OF ETHICS

1. The power to adopt the Code of Ethics and Responsibilities, under the RESA shall be under the
a. Professional Regulation Commission
b. Accredited and Integrated Professional Organization
c. Professional Regulatory Commission
d. Professional Regulatory Board of Real Estate Service
D. PROFESSIONAL REGULATORY BOARD OF REAL ESTATE SERVICE

2. The following person is not covered by the Code of Ethics and Responsibilities for real estate service
practice
a. Real estate salesperson
b. Real estate broker
c. Real estate appraiser
d. real estate dealer
D. REAL ESTATE DEALER

3. The code of ethics and responsibilities, as provided under the RESA shall be prescribed and issued by
the
a. National Association of real estate service practitioner
b. Accredited and Integrated Professional Organization
c. Professional Regulatory Commission
d. Professional Regulatory Board of Real Estate Service
B. ACCREDITED AND INTEGRATED PROFESSIONAL ORGANIZATION

4. Before the RESA , the code of ethics under the DTI was referred to as
a. National Code of Ethics
b. National Code of Ethics for Real Estate Service
c. National Code of Ethics for Realty Service Practice
d. national Code of Ethics and Responsibilities
C. NATIONAL CODE OF ETHICS FOR REALTY SERVICE PRACTICE

5. Under the then code of ethics, the realty service is considered the following and not a
a. Calling
b. Profession
c. Business
d. Occupation
C. BUSINESS

6. As per the definition of real estate service practitioners under the RESA, the codes of ethics no longer
cover the following
a. Real estate salesman
b. Real estate consultants
c. Real estate brokerage partnership
d. Real estate appraiser
C. REAL ESTATE BROKERAGE PARTNERSHIP

7. Under the code of ethics, it does not include the relation of the real estate service practitioner to the
a. public
b. government
c. developer
d. client
C. DEVELOPER
8. Attendance in a continuing professional education is provided also in the code of ethics under the
following provision
a. The spirit of camaraderie, cooperation and professional relationship of other shall be promoted
b. Their dealings with each shall be fair, honest and just
c. A high level of respect relationship with colleagues in the Realty Service Practice shall be maintained
d. Adequate knowledge, competence and expertise in real estate development and management shall be
maintained
D. ADEQUATE KNOWLEDGE, COMPETENCE AND EXPERTISE IN REAL ESTATE DEVELOPMENT AND
MANAGEMENT SHALL BE MAINTAINED

9. The statement do unto others what you want others to do unto you is referred to as the
a. Good manners and right conduct
b. Golden rule
c. Spirit of Camaraderie
d. Respect for others
B. GOLDEN RULE

10. As to their relation with the government, the practitioner is not the following
a. License
b. Permits
c. Authority to pay surety bond
d. Required registration
C. AUTHORITY TO PAY SURETY BOND

11. The real estate broker is not required under the code of ethics and the RESA to secure the following
before engaging in practice
a. Postal I.D
b. Payment of professional tax
c. Professional Identification Card
d. Certificate of Registration with PRC
A. POSTAL I.D

12. The following act should not be done by the broker and is unethical
a. Split commission with an unlicensed broker
b. Share commission as agreed
c. Agree to revise commission sharing
d. Accept the arrangement for reduction in commission as agreed
A. SPLIT COMMISSION WITH AN UNLICENSED BROKER

13. The owner requested the broker on how to reduce the capital gains tax to be paid. It is unethical for
the broker to recommend the following
a. To undervalue the sale price
b. To pay the capital gains on time
c. To pay transfer tax to the city treasurer
d. To pay in managers check to the bank
A. TO UNDERVALUE THE SALE PRICE

14.If one participated in the undervaluation of the sale, the broker is deemed to have violated his relation
to the
a. Client
b. Public
c. Government
d. Organization he belongs
C. GOVERNMENT

15. As a real estate broker, one is not required to indicate the professional license no. in the following
documents
a. Advertisements
b. Letterhead
c. Deed of absolute sale
d. Calling cards
C. DEED OF ABSOLUTE SALE

16. The practitioner must display the following in their place of business as provided in the Code of Ethics
a. AIPO Receipt
b. Surety bond
c. Professional Identification Card
d. Certificate of registration
D. CERTIFICATE OF REGISTRATION

17. The statement that the practitioner should be imbued with a social conscience for he does not live by
himself and his family alone can be said to reflect the following idea
a. Network with others
b. No man is an island
c. Better to live inside a subdivision
d. Join a professional organization
B. NO MAN IS AN ISLAND

18. Acts of treating others irrespective of political beliefs, cultural background, sect, religion or class is to
have no
a. Discrimination
b. Religion
c. Partisan politics
d. Foreign friends
A. DISCRIMINATION

19. An act that can be said to be unethical in dealing with a real property being sold by the owner
a. Avoid exaggeration
b. Conceal relevant information
c. Refrain from misrepresentation
d. Ascertain
B. CONCEAL RELEVANT INFORMATION

20. A real estate broker bought a lot in a residential subdivision, and it would be unethical for him to
construct on the property the following
a. Residential house
b. His professional office
c. Piggery
d. Duplex residential apartment
C. PIGGERY

21. If the owner wants to undervalue the sale price, the real estate broker is expected to tell the owner
a. To undervalue not lower than zonal value
b. To get a contact with the BIR
c. To have 2 deeds of sale
d. The true basis of capital gains tax
D. THE TRUE BASIS OF CAPITAL GAINS TAX

22. Funds which come into the hands of real estate broker from the client should be, under the Code of
Ethics
a. Placed in a separate bank account
b. Deposited in the brokers account
c. Just put in the wallet of the broker
d. Returned after using the money
A. PLACED IN A SEPARATE BANK ACCOUNT
23. An accredited real estate salesperson must be under the supervision of the real estate broker and
should indicate
a. Name and license number of the broker
b. Email address of the broker
c. The website of the broker
d. Name and field of specialization of the broker
A. NAME AND LICENSE NUMBER OF THE BROKER

24. As part of the obligation under the code of ethics the broker must, as much as possible see to it that
the agreements are
a. Notarized
b. In writing
c. In triplicate copies
d. Not required to be in writing
B. IN WRITING

25. In accepting an appointment or authority to act for and in behalf of a client or customer the broker
should pledge himself with utmost fidelity and good faith to protect and promote the interest of his client
which means
a. Loyalty to the client
b. Be loyal to the client at all costs
c. Be only working to the advantage of the client
d. Be unfair to the buyer in favor of the seller
A. LOYALTY TO THE CLIENT

26. A real estate broker uploaded an advertisement of a property in the internet. Which one would be
considered unethical
a. With nice view of the lake
b. Property to appreciate in value within a year
c. Located in gated subdivision
d. With wifi connection
B. PROPERTY TO APPRECIATE IN VALUE WITHIN A YEAR

27. Considered unethical for a real estate broker, with regards to his professional fee is to obtain the same
from both parties unless
a. The buyer was informed ahead of time
b. The owner did not know he will get a free from the buyer
c. The owner and seller knows and both agreed
d. The parties were not informed by the broker
C. THE OWNER AND SELLER KNOWS AND BOTH AGREED

28. For one to put up a for sale sign on the lot of the owner, the real estate broker must
a. Put a decent sign
b. Use only a tarpaulin signage
c. Make sure the sign is very visible
d. Be authorized by the owner
D. BE AUTHORIZED BY THE OWNER

29. If the real estate broker already saw another sign for sale of another broker, under the code of ethics
the broker must
a. Remove the sign before putting his sign
b. No longer put his or her sign for sale
c. Put the sign at least 3 meters away
d. Cover the sign of the other broker
B. NO LONGER PUT HIS OR HER SIGN FOR SALE
30. Mr. Yumul decided to sell his lot for P 5,500,000.00 although broker knew it can be sold for P
7,000,000.00 and the zonal value is P 6,500.000.00. What price should the broker offer to sell the house?
a. P 5,500,000.00
b. P 6,000,000.00
c. P 6,500,000.00
d. P 7,000,000.00
A. P 5,500,000.00

31. The code of ethics provides that the real estate broker in a real estate transaction should
a. Always make sure the seller is at an advantage
b. Be in favor of the seller always
c. have the seller and buyer conclude a fair deal
d. Be inclined to just thick of the commission
C. HAVE THE SELLER AND BUYER CONCLUDE A FAIR DEAL

32.. In a court case, the real estate appraiser was called to testify and under the code of ethics he must
testify in a manner
a. To protect his interest
b. To protect the interests of the client
c. To protect both their interest
d. To testify in a truthful manner
D. TO TESTIFY IN A TRUTHFUL MANNER

33. A licensed real estate appraiser can undertake the appraisal of the factory and plant under the
following
a. With assistance from one familiar with the appraisal of such
b. Is also a licensed real estate broker with experience
c. He or she has gained experience as assessor
d. The owner is not in a hurry
A. WITH ASSISTANCE FROM ONE FAMILIAR WITH THE APPRAISAL OF SUCH

34. The real estate broker should not solicit a listing which is currently listed exclusively with another
broker unless the listing agreement has expired and
a. The broker knows the contact no. of the owner
b. The broker already met the owner
c. Solicits the same from the owner
d. The owner offers to list the same to the new broker
D. THE OWNER OFFERS TO LIST THE SAME TO THE NEW BROKER

35. Real estate broker X accepted a listing from another broker Y. The agency of the broker Y who offers
the listing should be respected until it has expired and
a. Broker X is able to contact the owner
b. Come to the attention of broker X from a different source
c. Broker Y does not answer his text messages
d. Broker X solicits the listing from the owner
B. COME TO THE ATTENTION OF BROKER X FROM A DIFFERENT SOURCE

36. As to negotiations on a property listed exclusively with one broker, it should be through the listing
broker and not the owner, except
a. With consent of the owner
b. The listing broker has consented
c. The listing broker is just new
d. The listing broker is not knowledgeable
B. THE LISTING BROKER HAS CONSENTED
37. When a client asks the real estate broker for his opinion on a transaction not being handled properly
by another broker, he should
a. Criticize the manner of handling by the other broker
b. Simply say No comment
c. His opinion should be done with courtesy and professional respect
d. Point out the errors committed by the other broker
C. HIS OPINION SHOULD BE DONE WITH COURTESY AND PROFESSIONAL RESPECT

38. A newly passed broker was dealing with a broker already 10 years in the profession. The more
experienced real estate broker should
a. Share his experienced on the transaction
b. Try to put one over the new broker
c. Use the advantage of his experience over the new broker
d. Keep quiet when asked for advice by the new broker
A. SHARE HIS EXPERIENCED ON THE TRANSACTION

39. So that no controversy or misunderstanding arises between the two brokers dealing on the sale of the
lot, the code of ethics requires
a. The two brokers assume that sharing will be 50-50
b. Discuss and clear the commission arrangement beforehand
c. Discuss the sharing only when the professional fee is received
d. The broker who transferred the title to the buyer should get more
B. DISCUSS AND CLEAR THE COMMISSION ARRANGEMENT BEFOREHAND
40. Broker Y has a complaint against Broker P who belonged to the same real estate service organization.
Broker Y must therefore
a. File the case in court
b. Exhaust remedies within their organization
c. File an administrative case with PRC
d. Tell other members openly about his complaint
B. EXHAUST REMEDIES WITHIN THEIR ORGANIZATION

41. For violation of the code of ethics, the following penalty may be imposed by the brokers professional
real estate organization
a. Removal of license
b. Suspension of license
c. Removal from roster of registered real estate brokers
d. Expulsion from the organization
D. EXPULSION FROM THE ORGANIZATION

42. Which of the following acts can be considered to be unethical for a real estate broker
a. The broker should cooperate with other brokers on property listed
b. The broker should share the commission on an agreed basis
c. The broker should seek no unfair advantage over his fellow brokers
d. The broker can use the services of the salesman of another broker provided he pays the salesperson a
commission
D. THE BROKER CAN USE THE SERVICES OF THE SALESMAN OF ANOTHER BROKER PROVIDED HE PAYS
THE SALESPERSON A COMMISSION

43. A 2 story house and lot was being rented out by the owner and listed it through several brokers. A
broker who also obtained the listing can place his for rent sign if authorized by the owner and only if
a. It does not exceed two signs for rent
b. It is placed not less than 2 meters away from the other sign
c. His sign is not more than 2 meters by 2 meters in size
d. There is no sign placed on the property
D. THERE IS NO SIGN PLACED ON THE PROPERTY
44. Several offers for the purchase of the property were submitted by the real estate broker to the owner
and then another offer to purchase was received by the real estate broker. What should the real estate
broker do?
a. Wait for the owner to decide first before giving the latest offer
b. Tell the purchaser that his offer will have to wait till owner decides
c. The latest offer should be presented to the owner for his decision
d. The real estate broker should tell the buyer to revise his offer
C. THE LATEST OFFER SHOULD BE PRESENTED TO THE OWNER FOR HIS DECISION

45. In his brochures, advertisement, or announcement the real estate broker should present a true
picture of the property and is not required to indicate the following
a. Rights or interest over the property
b. Liens or encumbrances on the property
c. Name and firm name
d. Field of specialization as a real estate broker
D. FIELD OF SPECIALIZATION AS A REAL ESTATE BROKER

46. The following is considered unethical for the real estate broker should not engage in the following
a. To have the house cleaned before bringing the buyer
b. To tell the buyer there are many buyers interested although there are only a few interested buyers
c. To open the windows of the house before bringing the buyer
d. To pass through a better road instead of the road with squatters
B. TO TELL THE BUYER THERE ARE MANY BUYERS INTERESTED ALTHOUGH THERE ARE ONLY A FEW
INTERESTED BUYERS

47. If a broker is a member of an organization, the real estate broker should not engage in the following
a. Be an officer and serve if elected
b. Electioneering during annual election
c. Support the programs or the organization
d. Pay on time the dues of the organization
B. ELECTIONEERING DURING ANNUAL ELECTION

48. In case a real estate broker is also a real estate appraiser, he or she may not appraise the property of
his client if
a. He will not paid a professional fee
b. He will also sell the property after appraising it
c. He is new real estate appraiser
d. The owner wants a predetermined price of the property
B. HE WILL ALSO SELL THE PROPERTY AFTER APPRAISING IT

49. As to the following acts of a real estate broker, which one can be considered within the bounds of the
code of ethics?
a. Delay the submission of an offer of another buyer
b. Encouraging the seller to undervalue the sale price
c. Willingly share his experience with new brokers
d. Criticize publicly another broker for his manner of selling
C. WILLINGLY SHARE HIS EXPERIENCE WITH NEW BROKERS

50. As a real estate broker, it is ethical to do the following acts. Which one however is not ethical
a. Share professional fees as agreed with the other broker
b. Engage the services of the salesperson of another broker without informing the broker concerned
c. Publish a listing of another broker only with his consent
d. Not give rebates or split commission with an unlicensed real estate broker
B. ENGAGE THE SERVICES OF THE SALESPERSON OF ANOTHER BROKER WITHOUT INFORMING THE
BROKER CONCERNED