Philippine Real Estate Laws & Rules Comprehensive
Practice Exam with Answers | Reviewer for Licensure 2025
BOARD OF REAL ESTATE
1. A developer is planning a new residential subdivision. Which law mandates that 30% of
the total area must be allocated for parks, playgrounds, and other open spaces?
a) PD 957
b) PD 1216
c) BP 220
d) RA 7279
Correct Answer ✔✔: b) PD 1216
Rationale: PD 1216 is the amendment to PD 957 that explicitly defines the 30%
requirement for open spaces within a subdivision project. While PD 957 is the main
protective decree for buyers, the specific 70-30 saleable-to-open-space ratio is enshrined in
PD 1216.
2. A client who has been making installment payments on a lot for three years defaults on
his payments. Which law grants him the right to a cash surrender value after default?
a) PD 957
b) RA 7279
c) RA 6552
d) RA 4726
Correct Answer ✔✔: c) RA 6552
Rationale: RA 6552, known as the Maceda Law, protects real estate installment buyers. It
grants the right to a grace period, and if the buyer has paid installments for at least two
years, they are entitled to a cash surrender value of at least 50% of the total payments
made upon cancellation of the contract.
3. Which law is primarily known as the "Subdivision and Condominium Buyers' Protective
Decree"?
a) RA 4726
b) PD 1216
c) PD 957
d) RA 9904
Correct Answer ✔✔: c) PD 957
,Rationale: Presidential Decree No. 957 is the primary law regulating the sale of subdivision
lots and condominium units, requiring developers to secure licenses to sell and register
their projects to protect buyers from fraudulent practices.
4. A real estate service practitioner is renewing their license and must comply with the
mandatory continuing education requirement. Which law mandates the Continuing
Professional Development (CPD) program?
a) RA 9646
b) RA 8981
c) RA 10912
d) PD 957
Correct Answer ✔✔: c) RA 10912
Rationale: The Continuing Professional Development (CPD) Act of 2016 (RA 10912)
requires all licensed professionals, including real estate brokers and salespersons, to
complete CPD units as a prerequisite for the renewal of their Professional Identification
Card (PIC).
5. Which law established the system for the registration of property titles and is known as
the Property Registration Decree?
a) Act 496
b) CA 141
c) PD 1529
d) RA 6732
Correct Answer ✔✔: c) PD 1529
Rationale: Presidential Decree No. 1529, the Property Registration Decree, is the
comprehensive law that governs the registration of land titles and deeds in the Philippines,
consolidating and updating previous land registration acts.
6. A natural-born Filipino who became a U.S. citizen wants to buy a residential lot in his
hometown. Which law allows former Filipino citizens to acquire private land in the
Philippines?
a) RA 7042
b) BP 185
c) PD 471
d) The Constitution
Correct Answer ✔✔: b) BP 185
,Rationale: Batas Pambansa Blg. 185 is the specific law that grants former natural-born
Filipinos the right to acquire private land in the Philippines, subject to certain limitations
and conditions.
7. Which law provides the minimum design standards for economic and socialized housing
projects?
a) PD 957
b) PD 1216
c) BP 220
d) RA 7279
Correct Answer ✔✔: c) BP 220
Rationale: Batas Pambansa Blg. 220 provides the specific guidelines and minimum design
standards for the development of economic and socialized housing projects, making
housing more affordable through cost-effective design and materials.
8. The "Lina Law," which provides the legal framework for urban land reform and
housing, is formally known as:
a) PD 1517
b) RA 7279
c) RA 9397
d) RA 10884
Correct Answer ✔✔: b) RA 7279
Rationale: The Urban Development and Housing Act (UDHA) of 1992, or RA 7279, is
commonly known as the "Lina Law" after its principal sponsor, Senator Joey Lina. It
addresses the housing needs of the underprivileged and sets guidelines for eviction and
demolition.
9. A foreign investor wishes to lease private land for a manufacturing plant for 50 years.
Which law allows for such a long-term lease?
a) PD 471
b) RA 7042
c) RA 7652
d) BP 185
Correct Answer ✔✔: c) RA 7652
Rationale: While PD 471 allows leases to aliens for 25 years renewable for another 25, RA
7652 specifically allows foreign investors to lease private lands for a period of 50 years,
renewable once for a further 25 years.
, 10. Which law requires developers of main subdivision projects to allocate 15% of the total
area for socialized housing?
a) RA 7279
b) RA 10884
c) RA 9397
d) BP 220
Correct Answer ✔✔: b) RA 10884
Rationale: RA 10884 amended the Balanced Housing Development Program, requiring
developers of subdivision projects to develop an area for socialized housing equivalent to at
least fifteen percent (15%) of the total subdivision area or total cost.
11. Which law is known as the "Condominium Act" and provides the legal basis for the
creation and governance of condominiums?
a) PD 957
b) RA 4726
c) RA 9904
d) RA 6552
Correct Answer ✔✔: b) RA 4726
Rationale: Republic Act No. 4726, The Condominium Act, defines condominiums, enables
the separate ownership of individual units, and establishes the rules for the governance of
condominium projects.
12. A project may have significant environmental impact. Which law requires the
preparation of an Environmental Impact Statement (EIS) before its implementation?
a) RA 8749
b) PD 1586
c) RA 9275
d) RA 9003
Correct Answer ✔✔: b) PD 1586
Rationale: Presidential Decree No. 1586 established the Philippine Environmental Impact
Statement (EIS) System, which mandates that all environmentally critical projects and
projects located in environmentally critical areas must secure an Environmental
Compliance Certificate (ECC) based on a submitted EIS.
13. Which law abolished the share tenancy system and established agricultural leasehold in
the Philippines?
a) Act 4054
b) PD 27
Practice Exam with Answers | Reviewer for Licensure 2025
BOARD OF REAL ESTATE
1. A developer is planning a new residential subdivision. Which law mandates that 30% of
the total area must be allocated for parks, playgrounds, and other open spaces?
a) PD 957
b) PD 1216
c) BP 220
d) RA 7279
Correct Answer ✔✔: b) PD 1216
Rationale: PD 1216 is the amendment to PD 957 that explicitly defines the 30%
requirement for open spaces within a subdivision project. While PD 957 is the main
protective decree for buyers, the specific 70-30 saleable-to-open-space ratio is enshrined in
PD 1216.
2. A client who has been making installment payments on a lot for three years defaults on
his payments. Which law grants him the right to a cash surrender value after default?
a) PD 957
b) RA 7279
c) RA 6552
d) RA 4726
Correct Answer ✔✔: c) RA 6552
Rationale: RA 6552, known as the Maceda Law, protects real estate installment buyers. It
grants the right to a grace period, and if the buyer has paid installments for at least two
years, they are entitled to a cash surrender value of at least 50% of the total payments
made upon cancellation of the contract.
3. Which law is primarily known as the "Subdivision and Condominium Buyers' Protective
Decree"?
a) RA 4726
b) PD 1216
c) PD 957
d) RA 9904
Correct Answer ✔✔: c) PD 957
,Rationale: Presidential Decree No. 957 is the primary law regulating the sale of subdivision
lots and condominium units, requiring developers to secure licenses to sell and register
their projects to protect buyers from fraudulent practices.
4. A real estate service practitioner is renewing their license and must comply with the
mandatory continuing education requirement. Which law mandates the Continuing
Professional Development (CPD) program?
a) RA 9646
b) RA 8981
c) RA 10912
d) PD 957
Correct Answer ✔✔: c) RA 10912
Rationale: The Continuing Professional Development (CPD) Act of 2016 (RA 10912)
requires all licensed professionals, including real estate brokers and salespersons, to
complete CPD units as a prerequisite for the renewal of their Professional Identification
Card (PIC).
5. Which law established the system for the registration of property titles and is known as
the Property Registration Decree?
a) Act 496
b) CA 141
c) PD 1529
d) RA 6732
Correct Answer ✔✔: c) PD 1529
Rationale: Presidential Decree No. 1529, the Property Registration Decree, is the
comprehensive law that governs the registration of land titles and deeds in the Philippines,
consolidating and updating previous land registration acts.
6. A natural-born Filipino who became a U.S. citizen wants to buy a residential lot in his
hometown. Which law allows former Filipino citizens to acquire private land in the
Philippines?
a) RA 7042
b) BP 185
c) PD 471
d) The Constitution
Correct Answer ✔✔: b) BP 185
,Rationale: Batas Pambansa Blg. 185 is the specific law that grants former natural-born
Filipinos the right to acquire private land in the Philippines, subject to certain limitations
and conditions.
7. Which law provides the minimum design standards for economic and socialized housing
projects?
a) PD 957
b) PD 1216
c) BP 220
d) RA 7279
Correct Answer ✔✔: c) BP 220
Rationale: Batas Pambansa Blg. 220 provides the specific guidelines and minimum design
standards for the development of economic and socialized housing projects, making
housing more affordable through cost-effective design and materials.
8. The "Lina Law," which provides the legal framework for urban land reform and
housing, is formally known as:
a) PD 1517
b) RA 7279
c) RA 9397
d) RA 10884
Correct Answer ✔✔: b) RA 7279
Rationale: The Urban Development and Housing Act (UDHA) of 1992, or RA 7279, is
commonly known as the "Lina Law" after its principal sponsor, Senator Joey Lina. It
addresses the housing needs of the underprivileged and sets guidelines for eviction and
demolition.
9. A foreign investor wishes to lease private land for a manufacturing plant for 50 years.
Which law allows for such a long-term lease?
a) PD 471
b) RA 7042
c) RA 7652
d) BP 185
Correct Answer ✔✔: c) RA 7652
Rationale: While PD 471 allows leases to aliens for 25 years renewable for another 25, RA
7652 specifically allows foreign investors to lease private lands for a period of 50 years,
renewable once for a further 25 years.
, 10. Which law requires developers of main subdivision projects to allocate 15% of the total
area for socialized housing?
a) RA 7279
b) RA 10884
c) RA 9397
d) BP 220
Correct Answer ✔✔: b) RA 10884
Rationale: RA 10884 amended the Balanced Housing Development Program, requiring
developers of subdivision projects to develop an area for socialized housing equivalent to at
least fifteen percent (15%) of the total subdivision area or total cost.
11. Which law is known as the "Condominium Act" and provides the legal basis for the
creation and governance of condominiums?
a) PD 957
b) RA 4726
c) RA 9904
d) RA 6552
Correct Answer ✔✔: b) RA 4726
Rationale: Republic Act No. 4726, The Condominium Act, defines condominiums, enables
the separate ownership of individual units, and establishes the rules for the governance of
condominium projects.
12. A project may have significant environmental impact. Which law requires the
preparation of an Environmental Impact Statement (EIS) before its implementation?
a) RA 8749
b) PD 1586
c) RA 9275
d) RA 9003
Correct Answer ✔✔: b) PD 1586
Rationale: Presidential Decree No. 1586 established the Philippine Environmental Impact
Statement (EIS) System, which mandates that all environmentally critical projects and
projects located in environmentally critical areas must secure an Environmental
Compliance Certificate (ECC) based on a submitted EIS.
13. Which law abolished the share tenancy system and established agricultural leasehold in
the Philippines?
a) Act 4054
b) PD 27
