Broker Quiz

Which law governs the practice of real estate service in the Philippines?

• RA 6552

• RA 7279

• RA 9646

• PD 957

• RA 4726

Answer explanation

RA 9646, the Real Estate Service Act (RESA), professionalizes the practice of real estate by regulating qualifications, licensing, and conduct, ensuring competent service and consumer protection.

What is the maximum land area a former natural-born Filipino citizen can acquire for business use in rural areas?

• 1 hectare

• 3 hectares

• 5 hectares

• 7 hectares

• 10 hectares

Answer explanation

The Constitution and laws like the CARL (RA 6657) allow former natural-born citizens to own up to 5 hectares for rural business use, promoting investment while protecting land reform policies.

Which of the following is NOT considered an essential element of a valid contract?

• Consent

• Object

• Cause

• Notarization

• Legal Capacity

Answer explanation

While notarization makes a contract admissible in court, the essential elements of a valid contract are consent, object, and cause. Notarization is a formality, not a requirement for validity.

Which is NOT a mode of acquiring ownership under the Civil Code?

• Donation

• Prescription

• Succession

• Lease

• Sale

Answer explanation

A lease only grants temporary possession and use. Ownership can be acquired through sale, donation, succession, or prescription, which involve legal transfer of title or claim.

What law created the Housing and Land Use Regulatory Board (HLURB)?

• RA 8763

• RA 9646

• RA 7279

• RA 11201

• PD 957

Answer explanation

RA 8763 reorganized the HLURB to streamline housing development policies. Its functions are now under DHSUD (RA 11201), showing evolving governance in housing regulation.

In what type of listing can a seller still sell the property themselves and avoid paying commission?

• Exclusive right to sell

• Open listing

• Net listing

• Exclusive agency listing

• MLS listing

Answer explanation

An exclusive agency allows one broker, but if the owner sells without help, no commission is owed—unlike exclusive right to sell, where the broker gets paid regardless of who sells.

What is co-brokerage?

• A broker acting on their own

• A broker subcontracting work

• A buyer hiring two brokers

• Two brokers working together

• One broker financing another

Answer explanation

Co-brokerage is when two brokers collaborate to match buyers and sellers. It expands market reach and opportunities and must be properly documented for commission sharing.

What document legally permits a broker to market and sell a property?

• Contract to Sell

• Deed of Sale

• Authority to Sell

• Letter of Intent

• Memorandum of Agreement

Answer explanation

The Authority to Sell is a formal agreement that empowers a broker to represent a seller and list a property, establishing legal and ethical responsibility.

What is the standard broker’s commission for urban residential sales?

• 2%

• 3%

• 4%

• 5%

• 10%

Answer explanation

The 5% commission is the industry norm in the Philippines for residential urban sales. It may vary but reflects the broker's service in marketing, negotiating, and closing the sale.

Who may NOT render legal advice regarding real estate?

• Licensed real estate brokers

• PRC-certified appraisers

• Notaries public

• Licensed lawyers

• BIR examiners

Answer explanation

Brokers can discuss contract terms but cannot give legal advice unless also licensed lawyers. Doing so may constitute unauthorized practice of law.