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Ethical Standards For Real Estate Practice Prelim Exam
Ethical Standards For Real Estate Practice Prelim Exam
Esperal
Prelim Examination
Marks 45.00/50.00
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:
As a real estate practice being raised to a profession, its affairs is now handled by what Board?
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?
Question 7
Question 8
Incorrect
False
Question 9
Incorrect
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.
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:
subdivision development;
condominium concept;
real property laws and any other related subjects as may be determined by the Board.
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.
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.
Question 17
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
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
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
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
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
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.
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?
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.
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
Question 47
This refers to a person who acts for or on behalf of another by authority from the latter.
Agent
Question 48
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
By operation of law.