ALL TRUE ( Many here are past examination questions on True or False before)

SUBDIVISION, CONDOMINIUM, LAND MANAGEMENT

1. Under the local Government Code, the issuance of License to sell for subdivision projects has been devolved with the local
government.
2. A Deed of Sale with Mortgage is not covered by Maceda Law because there is already conveyance or transfer of ownership.
3. Condominium projects are not covered by the 20% socialized housing requirement under R.A. 7279, only residential
subdivision projects.
4. Under the new IRR on PD 957, the development permit issued by the local government for a subdivision project is valid for
three years. It used to be 2 years only.
5. A notice of adverse claim annotated on the title may be cancelled after the expiration of 30 days after its validity and
annotation by verified petition by party of interest with the Register of Deeds.
6. The Community Mortgage Program of the government allows the squatters to own the land they occupy by forming
themselves into a cooperative and paying for the property through the National Home Mortgage Finance Corporation
7. In case of conflict between the condominium corporation and the master deed, the latter shall prevail. A condominium
project can still exists even without a condominium corporation.
8. The highest selling price for for socialized housing project now is P450,000.00 . Highest Pag-ibig loan now is P6,000,000.00.
Maximum paying period is 30 years.
9. The Housing and Urban Coordinating Council (HUDCC) is the body which formulates the policies and objectives as well as
the over-all strategies of the countrys national shelter program. The current president is VP Jejomar Binay (2012). The
HUDCC also is the government agency tasked to enforce RENT CONTROL LAW.
10. As provided for by RA 7279, a developer of a subdivision project is required to develop 20% of the project for socialized
housing. Covered are PD 957 project and economic housing projects. Another alternative for the 20% requirement is
purchase of Pag-ibig or HGC Bonds or joint venture with the government.
11. The development of a 20-hectare agricultural land into a farmlot subdivision does not require DAR Conversion Permit only clearance because there is no conversion on the purpose of use.
12. Foreigners can collectively own up to 40% interest in a townhouse complex covered by a Condominium Certificate of Title.
13. Condominium concept can be applied to horizontal projects like residential townhouses, industrial warehouses. A
condominium project is sometimes called vertical subdivision.
14. The Land Bank is mandated to compensate the landowner the amount that may be agreed upon by the land owner and the
Department of Agricultural under the CARP law.
15. The Department of Energy is one of the members involve in the preparation of the necessary rules and regulation in
implementing RA 8974 an act which facilitates the right-of-way acquisition for government infrastructure projects.
16. Under PD 957, a juridical person refers to a business firm whether a corporation, partnership, cooperative, association or a
single proprietorship
17. In the amendment of the master deed of mixed-use condominium project, the required majority vote of registered owners
is based on floor area of ownership.
18. Bulk buying refers to the purchase by a person, natural or juridical, two or more saleable lots or units within an HLURB
approved subdivision.
19. Agricultural land with a slope of 18% or more is exempted from the coverage of the agrarian reform law.
20. An uninhabited and underdeveloped parcel of land for at least 10 years owned by the local government is not exempted
from the coverage of Urban Development and Housing Program (UDHP).
21. A foreign corporation may construct a condominium project on a parcel of land leased by said corporation

22. As provided for in the CARP, three hectares may be awarded to each child of the landowner, provided that he is at least 15
years of age actually tilling and managing the farm.
23. Mr. Reyes bought 30 town house units within an HLURB approved subdivision for the purpose of reselling the same without
alteration in the approved plan. This is an example of a block sale and therefore Mr. Reyes is exempted in securing a
Certificate of Registration and Licenses to Sell from HLURB first before he could start selling said units.
24. In the absence of any provision in the master deed, the shares of condominium unit owners in the common areas shall be
based on a per unit basis.
25. The tenants of at least 10 years residential apartment located in an urban land reform area are entitled to the right of first
refusal if the apartment owner will only sell the property.
26. Under R.A. 9225, commonly known as Dual Citizenship Law, former natural-born Filipinos are not automatically conferred
Philippine Citizenship - needs oath of allegiance at Bureau of Immigration or Philippine Embassy.
27. Under R.A. 6657, the maximum area for retention is 5 hectares for the owner plus 3 hectares for each child who is at least
15 years old and is actually tilling the land or managing the farm.
28. In general, the CARP Law (1988) covers all agricultural lands, public or private, regardless of produce.
29. Under P.D. 1216, for one hectare and above, at least 30% is mandatory for open space in a subdivision project.
30. The term of a condominium corporation is co-terminus with the duration of the condominium project.
31. Sale of subdivision lots may not always be covered by a license to sell from the Housing and Land Use Regulatory Board
(HLURB). There are exemptions.
32. Gridiron refers to a subdivision scheme where the resulting blocks are rectangular in shape.
33. Corporations cannot acquire agricultural lands of public domain by patent but may only lease up to 1,000 hectares. Filipino
citizen may acquire no more than 12 hectares or lease of no more than 500 hectares. Ref. 1987 Constitution.
34. A Registry of Property is a list of all realty property located within the territorial jurisdiction of the local government unit
concerned, prepared and maintained by the provincial/city/municipal assessor.
35. The Land Registration Authority and the Land Management Bureau (Bureau of Land) have concurrent jurisdiction in the
approval of subdivision survey plans. Bureau of Land for untitled properties, LRA for already titled properties.
36. Any disposition of the common areas of the condominium requires the affirmative vote of the simple majority of the unit
owners. Simple majority maybe based on number of units or based on floor area.
37. An amendment to the Master of Deed of a Condominium project approved by the unit owners may be registered with
Register of Deeds provided the amendment is also approved by the city or municipal engineer and the Housing and Landuse Regulatory Board.
38. The HLURB regulates the activities of the real estate dealers / developers, as well as the real estate brokers and
salespersons. Other real estate practitioners are not covered like appraisers and consultants.
39. Lands acquired by beneficiaries under CARL, RA 6657, shall not be sold, conveyed or transferred for a period of ten (10)
years.
40. Under BP 185 and RA No. 8179, a former natural born Filipino citizen who has bought urban land residential purposes may
still purchase another urban land for business purpose subject to limitations of the law.
41. Any part of the condominium project which is not a condominium unit is automatically a common area.
42. Square planning is a subdivision scheme for a tract of land with a flat terrain.
43. Irrigated land may not be given conversion permit even when the irrigation is provided by a private organization
44. Under agrarian reform law, the retention under PD 27 is 7 hectares only.
45. Under agrarian reform law, the coverage under PD 27 is for only private agricultural lands being used for rice and corn only.

APPRAISAL, ECONOMICS, FINANCING, SURVEYING

46. In the economic sense, infiltration refers to the displacement of the present residents with people of lower economic status
or different cultural or social background.
47. In an approved lot plan, you will never find a direction described as N92 deg. 3740E (this is already S88 deg EAST)
48. If income approach is to anticipation, comparative approach is to substitution.
49. Cul-de-sac is a passageway with only one outlet.
50. In surveying, tie point refers to the reference point. Point 1 of the map is the point of beginning in lot plotting. Tie line
is the imaginary line that connects point of beginning to a reference point like BLLM.
51. Under the Pag-ibig loan, the collateral value of house and lot package is determined by applying the loan to collateral ratio
or loan to value ratio to the appraised value of the property.
a. Loan Value = Appraised Value x Loan to Collateral Ratio
52. The rate of return earned by an investor which does not include allowance for capital recovery is called interest rate.
53. To plot a given property, the basic data needed are the bearing (angular degrees, and distance (linear measures) of the
corners indicated in the lot descriptions.
54. In real estate investment, using other peoples money is called leverage.
TITLES, OWNERSHIP
55. The annotation at the back of the title that refers to Rule 74, Section 4 of the Rules of Court means that the property is
subject to claims by any heir, creditor or person who may have been unduly deprived of their lawful participation in the
estate within a period of two years after the settlement and distribution of said estate.
56. Conversion to a home lot from agricultural use is allowable, when the applicant owns the lot, intends to establish a dwelling
place and the lot area is not to exceed 500 square meters.
57. Administrative reconstitution of lost or destroyed original copy of certificate of title can be availed of only when the lost or
destroyed certificates in the Registry of Deeds consist of at least 10 percent of all titles in the Registry but not less than 500
titles.
58. All Filipinos who have lost their Philippine citizenships and have become citizens of another country can avail of the Dual
Citizenship Law under R.A. 9225.
59. Where there is no will, an illegitimate child is also a compulsory heir and entitled to one-half the share of a legitimate child,
while the surviving spouses share is equivalent to the share of one legitimate child. This may not be true if there is a will by
the decedent.
60. There is no free portion if the decedent left no will.
61. Easements or restrictions on the title of a raw land shall apply to resulting lots when it is subdivided.
62. An alien can own a condominium unit or a townhouse unit in a condominium concept.
63. In some old Spanish titles, the unit of measure of:
a. one (1) are is equivalent to 100 square meters
b. and 1 centare is equivalent to 1 square meter.
64. Land acquired by a former natural born Filipino citizen under the foreign investment Act shall be principally, directly and
actually used by him in the conduct of his commercial business including lease of land, but excluding buying and selling
thereof.
65. In succession, the estate of the deceased person is divided among heirs in accordance with law:
a. Died intestate means no will; descent
b. Died testate means with will; devise ; the will is subject to probate of the court
66. Patrimonial property of the state is property owned by the state in its private capacity.
67. Public dominion is the property of the government in its public capacity.

68. Lien is a charge or encumbrance on property, usually for payment of some obligation while lis pendens is a claim on
ownership.
69. An application for land registration under Torrens System desired to be amended for the sole purpose of excluding a
portion of land covered in the original application does not require a new publication.
70. Easement of right of way may be acquired by prescription (10 years).
71. In co-ownership, a co-owner is entitled to right of redemption or right of first refusal if the property of co-owner is to be
disposed or was disposed. Pre-emption before disposition; redemption after disposition.
72. As general rule, husband and wife cannot sell property to each other.
73. A couples property relations may be governed by stipulations in a contract, freely and voluntarily entered into, before the
solemnization of marriage.
74. All properties acquired after marriage or during marriage through gratuitous title regardless of marriage settlement are
exclusive properties of the one acquiring spouse.
TAXATION
75. Under local government code of 1991 (RA7160), a barangay treasurer may be deputized to collect all taxes on realty
located in the barangay
76. Acquired real estate assets held by banking institution when sold are subject to creditable withholding tax. They are not
subject to capital gains tax nor value added tax.
77. Real estate owned by educational institutions which is used exclusively and directly for educational purpose is exempt from
real estate tax. Generally, it is not exempted if it is vacant or being rented by a taxable person.
78. Even religious institution, if the lot is vacant and of no use, is taxable.
79. In a deed of sale with assumption of mortgage, the selling price is the
basis of DST on the sale.
80. Donation of the open space in a subdivision project in favor of the local government is exempted from donors tax.
81. Under the local Government Code, agricultural lands more than one hectare are subject to the additional 5% idle land tax
when of the area is still uncultivated.
82. In case of installment or deferred payment sale, the documentary stamp tax shall be accrue only upon notarizatrion of the
deed of absolute sale.
83. An additional ad valorem tax of not exceeding 5% annually of the assessed shall be added to the basic real property tax on
idle lands.
84. A person who disposes his principal residence, which has been fully utilized in acquiring or construction of new principal
residence within 18 months from date of sale, is conditionally exempted from capital gains tax.
85. The seller who paid the capital gains tax is not required to include his capital gains as part of his regular income when he
files his income tax return. CGT is a final withholding tax or final tax on presumed income.
86. The transfer tax in the sale of real estate properties is paid at the treasurers office of the local government. Corporations
not habitually engaged in real estate business when selling properties located within Quezon City, Taguig, Pasig, Caloocan
and Las Pinas, all in Metro Manila, are subject to another local tax business tax. Dealers and developers are, in general,
not subject to business tax.
87. Corp. maybe subject to capital gains tax if it can be proven that the property is idle for at least 2 years before the sale.
88. Donation in favor of a legally adopted child is subject to a maximum rate of 15% donors tax.
89. In foreclosure sale, the creditor bank is the statutory seller and is liable to pay the capital gains tax based on the bid price.
90. A Deed of Exchange involving two residential houses and lots are both subject to capital gains tax.
91. Dacion en Pago of real estate classified as capital asset is also subject to capital gains tax.
92. Pacto de Retro sale is subject to capital gains tax if the property is a capital asset.
93. Re-conveyance Deed is also, again subject to capital gains tax if it is a capital asset.

94. The assignment in favor of the condominium corporation of the land where the condominium project is erected is not
subject to capital gains tax.
95. Socialized housing project is not subject to any income tax, however subject to DST. Rawland sold if to be used for
socialized housing is not subject to capital gains tax, however, intention of use should be annotated the title of rawland.
96. The sale of the principal residence maybe exempted from capital gains tax if proceeds will be used to acquire new family
home, however, the DST should be paid so as to effect the transfer to the buyer
97. Sale of real property with an initial payment of more than 25% is a deferred payment,like a cash sale which requires full
payment of the capital gains tax before the sale can be registered.
98.
99.

100.
101.
102.
103.

The capital gains tax in the foreclosure sale of real estate classified as capital asset shall be based on the bid price, not on
zonal value or market value per tax declaration. BIR RULING
A real property auctioned by a local government unit in order to satisfy tax delinquency of its owner may be redeemed,
provided that, among others, the expenses of the sale, plus interest of not more than 2% per month on the purchase
price from the date of the sale to the date of redemption shall be paid.
A province or city is legally barred from levying an annual ad valorem tax on machinery or equipment for environmental
protection - one of the exemptions in local taxation.
An undivided real property may be listed, valued and assessed in the name of one or more co-owners.
The value (tax base) usually used to determine the capital gains tax in sale of real property is the selling price or the
market value of the property as determined by the BIR whichever is higher.
For purposes of local taxation, real estate shall be assessed on the basis of its current and fair market value.

LEGAL ASPECT: SALE, LEASE, MORTGAGE, DOCUMENTATION AND REGISTRATION

104. A verbal authority to sell given by the owner to the broker is valid. Contract maybe oral or in writing.
105. The buyer of a house and lot is required to declare said acquisition with the assessors office within 60 days from the
date of purchase.
106. Registration of a sale of real estate in favor of a Filipina married to a foreigner does not require anymore now an affidavit
of waiver by the foreign husband. See Consulta of Benedicto Ulep. Effectivity is March 2003.
107. Pactum Commissorium is a stipulation in the mortgage contract prohibiting mortgagor from appropriating the property
within the period of mortgage. It is a null and void stipulation.
108. Pactum de non Aliendo is a stipulation in the mortgage contract prohibiting mortgagor from alienating the property
within the period of mortgage. It is a null and void stipulation.
109. Under R.A. 8791, the maximum redemption period in extrajudicial foreclosure of mortgage executed by a corporation in
favor of a bank is three months or upon registration of the sale whichever comes first.
110. As a general rule,In case area is different from that stated in the contract, if the sale is for a lump sum there shall be no
increase nor decrease in the price.
111. A lessor is not entitled to eject the lessee with an unexpired lease contract upon the ground that the leased premises had
been sold to a third person who has knowledge of the lease, even if the sale is registered. Knowledge is tantamount to
registration.
112. An earnest money in considered as proof of perfection of sale. Sale is perfected once there is meeting of minds between
seller and the buyer. Brokers commission is due upon consummation.
113. An alien can be a mortgagee of a real property in the Philippines.
114. When two (2) different brokers cooperate on a sale, the commission is not always fifty-fifty. There is no law on
commission sharing; depends on the agreement between the cooperating brokers.
115. Lease of lands and buildings within ECOZONE to entities owned by aliens shall not exceed fifty (50) years extendible once
for a period of not more than 25 years.
116. Attachment is the temporary seizure of a property by a Court Order, usually done to have it available in the event of
adverse judgment of a pending case.

117. Grace married Roy in 1989. On 1999, Graces surviving parent dies and she inherited a half hectare lot in Makati. After
the settlement of estate, Grace sold the property without the consent and over the objection of Roy. The sale is valid
because the 2-hectare lot is an exclusive property of Grace. Effectivity of Family Code is August 3, 1988.
118. A restriction provided in the Deed of Sale of a subdivision lot, which was not annotated in the title is binding between
parties.
119. Option money is the money in consideration of the right to purchase a property, usually not part of the purchase price.
120. Antichresis is a contract whereby a property is hypotheticated (or entrusted to the creditor) to secure an obligation
where the creditor is given right to possess the property and collect the fruits thereof. The loan contract is usually called
turn-key loan.
121. A unilateral Deed of Sale where the vendor only signs the contract of sale can be registered at RD.
122. A notice of adverse claim annotated in the title is, generally,valid for a period of 30 days.
123. Real estate salesmen are covered by the bond of their brokers.
124. Under RA 6552, the buyer who has paid less than 2 years of installment is entitled to grace period of no less than 60 days
plus 30-day notarial notice before the contract to sell maybe cancelled and payments be forfeited. No right of refund if
less than 2 years of installment.
125. A promise to buy and sell a determinate thing for a price certain is bilaterally demandable.
126. A contract purporting to be an absolute sale is presumed to be an equitable mortgage when the seller binds to pay the
taxes on the thing sold.
127. An exclusive right to sell is not the same as exclusive agency contract and better than the latter.
128. A person who is charged with estafa before a regular court can still apply for a license to engage in real estate practice as
broker because he is not yet convicted.
129. In a sublease, the personality of the original lease is not extinguished. The lessor and the lessee are still the parties to the
lease contract.
130. An agent does not guarantee title to the property he sells.
131. The act of a broker which is instrumental in effecting a meeting of the minds between seller and buyer as to price is
referred to as the procuring cause.
132.
133.
134.
135.
136.

An unregistered mortgage is binding only to the mortgagor and mortgagee.

A registered mortgage has better right than the subsequent sale of the property.
Registration does not confer title but merely confirms ownership to be binding against the whole world.
In a judicial foreclosure of mortgage the mortgagor has equity of redemption.
In extra-judicial foreclosure, the mortgagor has the right of redemption.

137. The de facto separation between husband and wife shall not affect the regime of absolute community even when there is
a formal agreement to the contrary.
138. Statute of fraud requires that certain contracts must be put into writing to be binding between two parties.
139. A sellers market is a situation where there are more buyers than buyers.
140. An unrecorded sale a retro is inferior than a subsequent registered mortgage.
141. In conjugal partnership, a house intended for family use which was acquired through the use of exclusive funds, remains
an exclusive property. However, in case of sale thereof, marital consent is still necessary being a family residence.
142. Registration is not a mode of acquiring ownership. It is just confirmation of ownership.
143. Though consent is one of the elements of conveyance, even if the seller only signs the Contract of Sale the instrument
can still be registered. There is an implied consent here for the seller would not deliver the ownership without payment,
in general. Another is the presence of dispositive clause or words of grant in the sales contract ( hereby sell)
144. Registration of a sale of a 5-hectare agricultural land must be accompanied by DAR Clearance.
145. The acceptance of option money by the seller is a proof of the perfection of the contract. Even without consideration,
just meeting of minds is already perfection of contract.