LEGAL REQUIREMENT FOR REAL ESTATE SERVICE:

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DTI MINISTRY CODE NO. 39, SERIES OF 1985 real estate service practice in the phils prior to RESA
A GRADUATE OF RELEVANT BACHELORS DEGREE required to be a real estate broker
JULY 30, 2009 resa effectivity
REAL ESTATE ASSESSOR govt official for taxation
REAL ESTATE DEVELOPER corporation that engages with memorial parks
VALUER another term for real estate appraiser
REAL ESTATE land and all attached to it
ACCREDITED REAL ESTATE SALESPERSON previously titled as salesman
ASSISTANT ASSESSOR includes the chief assessor in a municipality
ACCREDITED AND INTEGRATED PROFESSIONAL ORGANIZATION (AIPO)
GRANDFATHER CLAUSE licensed with DTI can still practice because of this
4 MEMBERS aside from 1 chairman, PRBRES has
ACCREDITED AND INTEGRATED PROFESSIONAL ORGANIZATION responsible for the nominations of
PRBRES
ACCREDITED REAL ESTATE SALESPERSON salesperson requirement
INTERIM ACCREDITED PROFESSIONAL ORGANIZATION first national organization before AIPO
REGISTER WITH HLURB aside from PRC, REB should also
PROFESSIONAL REGULATION COMMISSION PRBRES should be supervised by
TERMINATION OF HIS EMPLOYMENT BY THE REAL ESTATE BROKER registration with HLURB will be
terminated upon
UNETHICAL PRATICE ground for PRBRES suspension
UNEXPIRED PORTION OF THE TERM OF THE MEMBER WHO VACATED board vacancy term upon vacation
of a position
AT LEAST 2 YEARS OF COLLEGE requirement for salesperson
AT LEAST HIGH SCHOOL GRADUATE DTI salesman requirement
P 1000 salesperson bond
COMMISSION ON HIGHER EDUCATION works with PRBRES for the curriculum etc
PROFESSIONAL REGULATION COMMISSION after filing with PRBRES, victims of violation call also file in
24 CPE UNITS required to renew license before RESA effectivity
PRESIDENT OF THE PHILIPPINES can suspend board members
CONVICTION OF A CRIME OF SLIGHT PHYSICAL INJURIES may not be a ground of the chairperson
REAL ESTATE SALESPERSON no exams needed
PRBRES prepares the exams
BS REAL ESTATE MANAGEMENT degree for real estate
MUST BE A RESIDENT OF THE PHILIPPINES not a requirement to quality for the exam
5 YEARS needed to a consultant, if appraiser already
120 UNITS before taking the REB exam
75% -passing rate
10 DAYS results of the exam should be released in
UNTIL REVOKED validity of the certificate of registration
50% -no grade below
PROFESSIONAL IDENTIFICATION CARD PRC should also give this aside from COR
TERESITA MANZALA-RESEARCH
3 YEARS renew the ID
P 20,000 appraiser bond
P 20,000 broker bond
UNAVAILABILITY OF LOCAL PRACTITIONERS TO ENHANCE THE PRACTICE foreigners can practice here
temporarily if
3 YEARS renew the ID
REAL ESTATE CONSULTANT no bond
THERE IS FOREIGN RECIPROCITY foreigners can practice here if
TAKE AN OATH BEFORE THE BOARD successful examine must do before praticing
AT LEAST ONE TRANSACTION means youre taking part in the practice
EMAIL ADDRESS OF PRACTITIONER should not be included in the roster of registered professional
20 PRC ACCREDITED AND HLURB REGISTERED REAL ESTATE SALESPERSONS is to one broker
P 200,000 fine if you engage with real estate transaction w/o license
CITY TREASURER OF MANILA professional should be paid here if youre office is in Manila
WITHIN 15 DAYS FROM THE RECEIPT OF DECISION after found liable by PRBRES, he can appeal to the PRC

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TWO YEARS a suspended license can be reinstated after

A HOUSEOWNER WHO WILL SELL HIS OWN LOT not engage in the practice of real estate service
RE SALESPERSON not reqd member of AIPO
P 200,000 FINE/ 4 YEARS unlicensed appraiser penalty
20 ACCREDITED SALESPERSONS is to 1 broker
CERTIFICATE OF REGISTRATION should be displayed in business
NATL CODE OF ETHICS AND RESPONSIBILITIES promulgated by the board
120 HOURS OF REAL ESTATE SEMINAR continuing education program
DIVISION MANAGER should be full time
THE PARTNER liable for violation in real estate partnership
TEN YEARS PRACTICE reqd to be a board member
FOUND TO BE PSYCHOLOGICALLY UNFIT board shall not register COR
BE A MEMBER IN GOOD STANDING OF THE AIPO to renew id, a real estate consultant is required to
A LICENSED REAL ESTATE APPRAISER a requirement to be a city assessor
REAL PROPERTY ASSESSING OFFICER (RPAO) EXAMINATIONS required prior to RESA
REAL ESTATE PRIVATE APPRAISER 20,000 bond
P 1000 salesperson bond
DEC 31 OF THE YEAR HLURB expiration of salesperson
AIPO RECEIPT NUMBER should be indicated PTR and license number
AUTOMATIC AND MANDATORY membership of AIPO
ATLEAST 200,000 FINE violation of resa
SECURING ACCREDITATION FROM PRC what salesperson should do first
SERVICE color blue in logo
SURETY BOND bond of private real estate appraiser
ATTY IN FACT WHO DOESN T REQUIRE COMPENSATION exempted from coverage
EDUARDO ONG first chairman of PRBRES
RA 8981 (PRC MODERNIZATION ACT) law that governs PRC
PHILIPPINE INSTITUTE OF REAL ESTATE SERVICE PRACTICE AIPO approved by the PRC last 2011
PAPRB group of various regulatory boards under PRC
MORE THAN 20,000 total number of real estate service praticioners
REAL ESTATE ASSESSOR following is not issued a separate license for the practice of their specified profession
46 total number of regulatory boards in the country supervised by PRC
OFFICE OF THE BOARD EXAMINERS prior to PRC
2009 added RESA
VOCATIONAL TECHNOLOGY not a sector under PRC
PROFESSIONAL MODERNIZATION ACT OF 2000 law governing PRC
BUSINESS, EDUCATION, MANAGEMENT SECTOR classification of real estate service
7 YEARS term of office of the commissioners of the PRC
NAME AND LICENSE ARE ENTERED IN THE PRC REGISTRY BOOK prc law, definition of practicing
professional
94. PRBRES clustered the exam subjects into 3 SUBJECTS
95. PD 957 law that governs the current practice of real estate service
96. JANUARY 31 due date of yearly professional tax
97. LAST DAY OF FEB community tax must be paid by the real estate broker to the local government
98. OCTOBER 2012 first professional summit held by the PAPRB in cooperation with PRC
99. Judgment of the PRC becomes final within a period of 15 DAYS FROM RECEIPT OF JUDGMENT
rd
100.
3 WEEK OF OCTOBER Philippine Professionals Competitiveness Week, Noynoy
FUNDAMENTALS OF PROPERTY OWNERSHIP
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1987 PHILIPPINE CONSTITUTION main law governing the right to own real estate
REGALIAN DOCTRINE all lands of the public domain belong to the state
40% maximum foreign ownership
FAMILY CODE OF THE PHILIPPINES law that governs relations of a couple who wants to get married
AGRICULTURAL lands that can be alienated
SHARE illegitimate childs share on the legitime
EMINENT DOMAIN power of the state to take private property for public use
ABSOLUTE COMMUNITY OF PROPERTY property relations when there is prenup
POLICE POWER power of the state to take away the land if used for illegal purpose
RIGHT TO DISPOSE one of the most important right of a person who owns an agricultural land

11. 12 HECTARES homestead land under 1987 constitution

12. CONTRACTUAL limitation on the right of ownership aside from legal
13. SEPARATION OF PROPERTY property relation with prenup stating that theres a complete separation of
property
14. ALLUVIUM name for the gradual deposited soil by a flowing river
15. NO RENOUNCEMENT OF CITIZENSHIP pinoys can still buy property even after marrying a foreigner
16. STEWARD CONCEPT OF OWNERSHIP owner should utilize the land properly for the general welfare
17. HAS THE BUNDLE OF RIGHTS owner in fee simple
18. CONDOMINIUM CERTIFICATE OF TITLE best evidence of condo unit ownership
19. EXPROPRIATION proceeding to take private property for public use
20. LEASE THE LAND if foreigners want to build a house
21. HEREDITARY SUCCESSION filipinos that became foreign citizen can still own a house through this
22. PRENUP should be executed for complete separation of property
23. USUFRUCT right of fruits of property
24. AUGUST 3, 1988 law that governs property relations between married people under New Civil code
25. 18 YEARS OLD BOTH legal age to get married under the new family code
26. DEED OF RESTRICTIONS voluntary limitation in ones right of ownership
27. PRIVATE GRANT when 2 neighbors goes into a sale
28. VOID AFFIDAVIT signed by foreigner whos wife bought a property
29. FORMER NATL BORN PINOY can buy properties
30. COMMUNITY PROPERTY even though a property is donated before the marriage
31. LEGAL HEIR a foreigner can own a land via hereditary succession
32. PARAPHERNAL PROPERTY property of wife which was inherited during marriage
33. JUS SOLI citizenship is based on location of birth
34. FILE A PETITION IN BUREAU OF IMMIGRATION to be a dual citizen this must be done by natural born pinoy
35. CO-OWNERSHIP property relations if not married
36. 1 HECTARE natl born pinoy can own a property in rural area
37. SHE GETS THE CONSENT OF THE HUSBAND separated from husband but wants to sell property. Property
inherited prior to marriage
38. 5000 SQM maximum area that can be purchased through foreigh investments act
39. INVOLUNTARY if property loaned was sold in a auction
40. CAPITAL PROPERTY sole property of the husband who is now married
41. BUYING AND SELLING not included trade in foreigh investors act
42. ESCHEAT govt may own a property of the deceased
43. 1000 HECTARES corn business can lease a land from the government
44. THEY HAVE A JUDICIAL SEPARATION OF PROPERTY wife and husband can sell to each other
45. 5 YEARS period of time to question a husband who sold a conjugal property
46. TORRENS TITLE imprescriptible and indefeasible
47. FOREIGN INVESTORS LEASE ACT -50 years lease renewable for another 25
48. ACT OF LEGISLATURE citizenship aside from naturalization
49. LEGAL GUARDIAN CANNOT ACQUIRE THE LAND THEY ARE ADMINISTERING
50. ILLEGITIMATE born without marriage
51. CORPORATION CAN LEASE PUBLIC DOMAINS FOR 25, RENEWABLE 25 YEARS
52. RIGHT OF WAY EASEMENT right given the owner of a property behind yours
53. ACCRETION gradual deposit of land by river
54. 60% -min pinoy ownership in a corporation
55. RELATIVE COMMUNITY OF PROPERTY property relations if married in 1975 but no pre nup
56. EXCLUSIVE MONEY OF THE WIFE husband has no consent with transfer of property. Before the family code
57. 25 YEARS foreign investors lease act renewable up to
58. 10 YEARS acquire possession if in good faith
59. JUDICIAL ORDER can separate properties if theres no marriage settlement
60. LEASE CONTRACT temporary use of land
61. RECLAMATION filling up submerged land
62. POP DENSITY OF 1000 PERSON/SQM urban area
63. AFFIDAVIT UNDER BP 185 first thing to do to acquire land by a natural born filipino
64. TAKING OATH OF ALLEGIANCE to become dual citizen
65. 30 YEARS acquire possession if in bad faith
66. JUDICIAL SEPARATION OF PROPERTY if no marriage settlement, this must be issued
67. PARAPHERNAL PROPERTY piece of land through inheritance, no marriage settlement
68. JUS SANGUINIS citizenship by citizenship of parents

69. PATRIMONIAL PROPERTY escheated by government

70. A DUAL CITIZEN may own a land in the phils
71. SPECIAL RESIDENT RETIREES VISA a visa given to foreigner to reside in the phils under Philippine Retirement
Authority
72. PATRIMONIAL PROPERTY not intended for public use
73. 0% -minimum amount of Filipino ownership of a real estate corporation
74. 750 sqm a pinoy may apply for free patent under RA 10023, this is for first and second class municipalities
75. A child born out of wedlock from minor parents, but who eventually got married, will now be classified as
LEGITIMATE
76. A sale of parcel of land, bought by a foreigner who was not allowed to own land, sold eventually to a Filipino citizen
is VALID.
77. For a pinoy who Is a citizen of Australia, to be able to acquire land under BP185, the person should be born of
atleast one Filipino parent
78. LEGITIME reserved for compulsory heirs
79. FOREIGN INVESTOR ACT OF 1991 former natural born pinoy can acquire land in a rural area not to exceed 3
HECTARES
80. If marriage settlement is void, theres an ABSOLUTE COMMUNITY OF PROPERTY
81. SALE BY CITY TREASURER DUE TO DELINQUENT TAXES is not considered a public grant
82. Illegitimate minor child may use the surname of the father who is married to another provided THE FATHER
EXECUTES AN AFFIDAVIT OF ACKNOWLEDGEMENT
83. INVOLUNTARY GRANT land acquired through public auction
84. INTESTATE SUCCESSION when a person inherits real estate from the deceased who died with a will but which
was declared void, would be an inheritance through
85. A Filipina can sell to her husband if theres a JUDICIAL SEPARATION OF PROPERTY
86. IMMOVABLE AND MOVABLE classification of property under civil code
87. 1987 CONSTITUTION granting foreigners citizenship
88. CO OWNERSHIP if two people, both single, lived together as husband and wife
89. The taking private property must be with payment of just compensation and for the purpose of PUBLIC USE
90. COMMUNITY PROPERTY property inherited before marriage and married without settlement (girl)
91. Children can inherit upon DEATH OF THE FATHER/MOTHER
92. LEGAL HEIR the only way for a foreigner to inherit property
93. SALE OF CONDO UNIT TO A FOREIGNER NOT an involuntary grant
94. Marriage settlement should be executed BEFORE MARRIAGE
95. RENUNCIATION OF FOREIGN CITIZENSHIP not a requirement of becoming dual citizen
96. RIGHT OF WAY AGREEMENT considered a voluntary limitation on ones ownership to land
97. 500 HECTARES allowable leasable alienable land of the government
98. AVULSION current river segragates from one estate on its bank portion of land and transfer to another estate
99. RIGHT TO RECEIVE RENT right of owner of a parcel of land to receive civil fruits means the following
100.
MUST BE TITLED LAND not a requisite for the exercise of eminent domain
CODE OF ETHICS AND RESPONSIBILITIES
1. PRBRES adopts the code of sthics and responsibilities
2. REAL ESTATE DEALERS not covered by code of ethics
3. AIPO prescribe and issue of code of ethics
4. NATL CODE OF ETHICS FOR REALTY SERVICE PRATICE name of the code during DTI
5. BUSINESS realty service is not a
6. REAL ESTATE BROKERAGE PARTNERSHIP not covered by the code
7. THE DEVELOPER relationship of broker to this is not covered by the code
8. ADEQUATE KNOWLEDGE, COMPETENCE AND EXPERTISE IN REAL ESTATE DEVELOPMENT AND
MANAGEMENT SHALL BE MAINTAINED reason of CPE attendance
9. GOLDEN RULE suggested by the code
10. AUTHORITY TO PAY SURETY BOND not required for a practitioner
11. POSTAL ID not required to secure
12. SPLIT COMM WITH AN UNLICENSED BROKER -unethical
13. TO UNDERVALUE THE PRICE -unethical
14. GOVERNMENT in undervalution, broker is unethical to the govt
15. DEED OF ABSOLUTE SALE license is not reqd to be written here
16. CERTIFICATE OF REGISTRATION display in business
17. NO MAN IS AN ISLAND practitioner should be imbued with social conscience
18. DISCRIMINATION -unethical

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CONCEAL RELEVANT INFO -unethical

PIGGERY unethical to construct in residential area
THE TRUE BASIS OF CAPITAL GAINS TAX tell the owner
PLACED IN SEPARATE BANK ACCOUNT money from client to broker should be placed
NAME AND LICENSE NUMBER OF THE BROKER salesperson requirement
IN WRITING agreements should be (its ok if not notarized)
LOYALTY TO THE CLIENT pleadge of a REP
PROPERTY TO APPRECIATE VALUE IN A YEAR -unethical
THE OWNER AND SELLER KNOWS AND BOTH AGREED to accept dual commissions
BE AUTHORIZED BY THE OWNER to put up a sign
NO LONGER PUT HIS OR HER SIGN FOR SALE if theres a sign already by another broker
5,500,000 owners price. Should be sold regardless of the value
HAVE THE SELLER AND BUYER CONCLUDE A FAIR DEAL brokers responsibility
TO TESTIFY IN TRUTHFUL MANNER responsibility in a civil case
WITH ASSISTANCE FROM FAMILIAR WITH THE APPRAISAL OF SUCH appraisers guide
THE OWNER OFFER TO LIST THE SAME TO THE NEW BROKER ethical if the property is listed to another
broker
COME TO THE ATTENTION OF BROKER X FROM A DIFFERENT SOURCE ethical to do if the listing is under
broker Y
THE LISTING BROKER HAS CONSENTED if the property is listed exclusively
HIS OPINION SHOULD BE DONE WITH COURTESY AND PROFESSIONAL RESPECT ethical thing to do if
property is listed under another broker
SHARE HIS EXPERIENCE ON THE TRANSACTION responsibility of experienced broker
DISCUSS AND CLEAR THE COMMISSION ARRANGEMENT BEFOREHAND -ethical
EXHAUST THE REMEDIES WITHIN ORGANIZATION before going to court
EXPULSION FROM THE ORGANIZATION AIPO can do this to a broker if found guilty of a violation
THE BROKER CAN USE THE SERVICES OF THE SALESMAN OF ANOTHER BROKER PROVIDED HE PAYS
THE SALESPERSON A COMMISSION -unethical
THERE IS NO SIGN PLACED ON THE PROPERTY a broker can only post a sign on the property if
THE LATEST OFFER SHOULD BE PRESENTED TO THE OWNER ethical thing to do even when theres a first
offer already
FIELD OF SPECIALIZATION AS A REAL ESTATE BROKER should not be indicated in ads
TO TELL THE BUYER THERE ARE MANY INTERESTED ALTHOUGH THERE ARE ONLY A FEW INTERESTED
BUYERS -unethical
ELECTIONEERING DURING THE ANNUAL ELECTIONS unethical if part of an organization
HE WILL ALSO SELL THE PROPERTY AFTER APPRAISING IT -unethical
WILLINGLY SHARE EXPERIENCE WITH NEW BROKERS -ethical
ENGAGE THE SERVICES OF THE SALESPERSON OF ANOTHER BROKER WITHOUT INFORMING THE
BROKER CONCERNED unethical

REAL ESTATE LAWS AND TAXATION

3.0% -creditable withholding tax rate
LOCAL GOVT CODE OF 1991 taxation of real property is governed by
SELLING PRICE basis of capital gains tax
CAPITAL GAINS TAX sale of capital asset amount is 2,300,000; should be paid where the property is located;
penalty surcharge is 25% of 6% from the contract price
FAIR MARKET VALUE AND TAX DEC basis of the improvement tax on house and lot
ORDINARY ASSET foreclosed properties
FINAL TAX tax paid to BIR on a sale of a condo unit used as residence by the owner
25% -penalty surcharge; theres also a penalty if you fail to build a principal house
BID PRICE basis of the capital gains tax, if the property was not redeemed
CITY ASSESORS OFFICE where to get value of the improvement; where to get latest certification
CERTIFICATE AUTHORIZING REGISTRATION BIR will issue this after full payment of capital gains tax
TH
5 OF THE FOLLOWING MONTH capital gains tax should be paid
PREPAID INCOME TAX creditable withholding tax of the lot of a developer
REGISTRATION WITH HLURB habitually engaged in real estate
160,000 ceiling for the lot value in socialized housing

30 DAYS FROM THE NOTARIZATION OF THE SALE one must inform BIR to exempted from taxes from principal
residence sale; title must also be registered under a name of a natural person; exemption should be PUT IN
ESCROW; can only be availed every 10 years
5% WITHOLDING TAX
P 15.00 doc stamps of foreclosed property
30 DAYS FROM EXPIRATION OF REDEMPTION PERIOD winning bidder must pay capital gains tax
15 % WITHHOLDING TAX broker with 800k earnings
CREDITABLE WITHHOLDING TAX initially paid after a foreclosure
P 1919500 exempted from VAT
3% PERCENTAGE TAX broker is subject to this tax
P 12800 rent exemption in VAT
IF TOTAL SALES EXCEEDED 1919500 YOULL PAY VAT
18 CALENDAR MONTHS should build a new house to be exempted from tax
P 3199200 exempted from VAT in condo
ACTUAL USE OF THE PERSON IN POSSESSION should be classified for the assessment purposes
CURRENT AND FAIR MARKET VALUE basis of assessor in valuing the property of the land owner
1% OF THE ASSESSED VALUE basis real property tax in province; SEF fund rate
ACTUAL USE principal or predominant use
NOT EXCEEDING 5% OF THE ASSESSED VALUE basis on the idle land tax
REAL PROPERTY TAX assessed value x tax rate
2%/MONTH penalty on real property tax
APPROVED LOCAL TAX ORDINANCE for the local govt to impose and implement local tax
NOT EXCEED 40% -assessment level for agricultural lands
OF THE LAND if the farm is uncultivated, itll be subjected to idle tax
FAIR MARKET VALUE OF THE IMPROVEMENT assessment level of the improvement of a property
20% DISCOUNT early payment of tax in Baguio
4 EQUAL QUARTERLY PAYMENTS real estate tax could be like this without penalty
st
ON 1 OF JANUARY local govt code accrues
LAND WITH UNFAVORABLE PHYSICAL FACTORS no idle land tax
SHALL NOT EXCEED 60% OF THE ACTUAL COST- special levy for land benefitting public works and
improvements
REGISTRAR OF DEEDS OF THE CITY LBAA head
3 YEARS max total liability of SEF late payment
60 DAYS FROM THE RECEIPT OF ASSESSMENT should complain if someone doesnt agree with the
assessment
30 DAYS FROM RECEIPT OF DECISION if the decision is unfavorable, you can appeal to CBAA
60 DAYS FROM DATE OF TRANSFER notify the assessor after ownership transfer
PAY THE REAL ESTATE TAX first thing to do if under protest
PRESIDENT OF THE PHILS can condone real estate taxes
UNPAID DELINQUENT REAL ESTATE TAXES local govt should file a notice of delinquency
ASSESSED VALUE fair market value x tax rate
JAN 1 OF NEXT YEAR all reassessment done after jan 1 should take effect
OWNER MUST FILE A SWORN DECALARTION OF PROPERTY VALUE EVERY 3 YEARS
NO ACTION FOR THE COLLECTION OF THE REAL ESTATE TAX SHALL BE INSTITUTED AFTER 5 YEARS
LOCAL SCHOOL BOARDS SEF beneficiary
TAX DEC assessment level may be found
2% OF THE ASSESSED VALUE new tax rate in Cebu
CITY ASSESSOR not a member of LBAA
10 YEARS assessment if first time to declare
1 YEAR RIGHT OF REDEMPTION for foreclosure of delinquent tax payers
to 1% OF ASSESSED VALUE socialized housing tax in QC
NOT MORE THAN 100,000 socialized housing is taxable in QC
50% -tax rate for commercial
HOW MUCH WILL BE THE QUARTERLY TAX PAYMENT FOR A RESIDENTIAL VALUE AT 1800000 IF THE TAX
RATE IS 2%?
THE OWNER FAILED TO PAY HIS BASIC REAL ESTATE TAX OF 10000 AND 5000 IN SEF. HOW MUCH WILL
BE THE TOTAL INTEREST TO BE PAID FOR THE 5 YEARS DELINQUENCY?
NEXT QUARTER AFTER ASSESSMENT if actual change in use is reported to the assessor office, it shall take
effect
3 YEARS assessor should undertake general revision of real property reassessment

RA 9700 CARPER comprehensive agrarian reform programs with extensions with reforms
5 YEARS extension in CARPER
NOT EXCEEDING 3 HECTARES CARPER extends the land distribution programs
10 YEARS lock in period of lands under CARP
5 YEARS conversion of land if not economically feasible for agriculture
BID PRICE OR ZONAL VALUE OR ASSESORS VALUE WHICHEVER IS HIGHER basis of CGT/CWT in case of
non-redemption
Donation of house and lot to the daughter is not subject of DOCUMENTARY STAMP TAX
0.5% -socialized housing tax for lands over 50k

SUBDIVISION DEVELOPMENT
SUBD AND CONDOMINIUM BUYERS PORTECTIVE DECREE of 1976 law that protects subv and condo buyers
NATIONAL HOUSING AUTHORITY tasked to provide responsive housing to low income families
HLURB Homeowners should register here; can file complaint here if noncompletion of project; approves the bank
loan of developers
ATTACHED AGENCY TO HUDCC highest policy making body for housing
CERTIFICATE OF REGISTRATION corporation w/c intends to develop a subdivision must first get this from
HLURB
MACEDA LAW governs the failures in amortization; sale through financing from the seller
SUBDIVISION PROJECT land parcel partitioned for residential purposes into individual lots
COMPLEX SUBDIVISION PLAN includes the streets, open space, passageway
SOCIALIZED HOUSING for underprivileged and homeless citizens
DEVELOPER CAN ADVERTISE W/O LICENSE TO SELL AS LONG AS ITS FOR ANNOUNCEMENT PURPOSES
ONLY
30% -open space
REAL ESTATE DEALER person directly engaged as principal in selling
LOCATIONAL CLEARANCE written authority to develop a certain area; allowed under the provisions of the zoning
ordinance
P 400,000 ceiling for socialized housing
FUTURE DEVELOPMENT NOT COVERED BY THE LICENSE TO SELL should not be placed in advertisements
SALE OF A SUBDIVSION LOT BY THE ORIGINAL PURCHASER THEREOF exempted from registration
certificate
PERFORMANCE BOND UNDER PD 957 SHALL BE MADE PAYABLE TO THIS REPUBLIC OF THE PHILS
VERIFIED COMPLAINT OF BUYER license to sell should be suspended
CEAST AND DESIST ORDER to start hearing for the PD 957 violation
REALTY INSTALLMENT BUYERS PROTECTION ACT law that governs the non payment of the buyer
FULL PAYMENT OF THE UNIT the developer shall deliver the title of the lot
CERTIFICATE OF COMPLETION if the developer intends to donate roads/open space to LGU, they have to
provide this
NOT LESS THAN 10 HECTARES phases of subdivision development
NOT EXCEED P 10,000 administrative fines of HLURB for PD 957 violations
NOT EXCEED P 20,000 fines in violation of PD 957
NOT MORE THAN 10 YEARS imprisonment
400 meters maximum length of a block
APPROVAL OF SUBD PLAN task of LGU now, not HLURB
120 SQM minimum lot area for single detached open market housing
4 M minimum lot frontage for rowhouses in PD 957; requires 20 units per block
3.5 M minimum lot frontage for rowhouses BP 220
150 LITERS/CAPITA/DAY water connection for subdivisions
BLOCK parcel of land bounded by streets, pathways intended for building
CONDO PROJ entire parcel of real property divided in condominium
DWELLING generally defined as structure designed or used as residence
SINGLE DETACHED dwelling surrounded by yards
DUPLEX -2 separate living units
CORNER LOT lot situated in the intersection of 2 or more streets
IRREGULAR LOT not squared or rectangle in shape
AFFORDABLE COST reasonable price based on needs and capability of Program beneficiaries, RA 7279
64 SQM minimum lot size socialized single detached unit
QUASI JUDICIAL power of HLURB to hear and decide buyer complaints
CLUSTER HOUSING -3 or more separate living units grouped closely together

SHELL HOUSE met the min requirements for a housing core with addl walls, plumbing, floor and electrical
COMPLETE HOUSE shell house with windows, doors and partition walls
3 METERS minimum width of pathwalk
REFUND PAYMENT SHOULD INCLUDE AMORTIZATION INTEREST EXCLUDING DELIQNUENCY INTERESTS
IF BUILDING IS NOT COMPLETED, BUYER CAN GIVES NOTICE TO THE DEVELOPER AND MAY STOP FROM
MONTHLY PAYMENT
MAGNA CARTA FOR HOMEOWNERS AND HOMEOWNERS ASSOCIATIONS law that governs homeowners
rights; fine for violating -- not less than 5k but not more than 50k
50% PLUS 1 simple majority; can sign to remove director
HOMEOWNER MEMBERS DUTY EXCEPT PROPOSE MEASURES TO RAISE FUNDS
A BOARD MAY BE DISSOLVE BY SUBMITTING A SIGNED PETITION OF 2.3 OF THE ASSOC MEMBERS
3 YEARS allowable proxy for members

CONDOMINIUM CONCEPTS AND OTHER TYPES OF REAL ESTATE MORTGAGES

EQUAL SHARE ON COMMON AREAS if theres no provision in master deed
PROVISION FOR MANAGEMENT BODY OF THE PROJECT not part of master deed
CONDO CORP coterminous with the life of the project; holds the title to the land
40% --foreigners share on townhouse project
CCT best proof of condo ownership
BASED ON THE NUMBER OF BEDROOMS not a measure of the interest in the common areas
CONDO HOUSE RULES AND REGULATIONS not included in the master deed
AT LEAST ONE FOREIGNER OR UNITS WILL BE SOLD TO FOREIGNERS condo corp is required
THE OWNER IS LIABLE TO PAY REAL ESTATE TAXES OF HIS UNIT
CONDO CORP MAY BE DISSOLVED BY AFFIRMATIVE VOTES OF ALL THE MEMBERS
CONDO UNIT interior surface of floor, ceiling, walls and exterior doors and windows w/c is for independent use
MASTER DEED share in the common areas may be found; most important document, owner must get the
knowledge
UNIT OWNER DOES NOT HAVE TO PAY FOR SHARE IN INSURANCE OF THE CONDO
MAJORITY VOTE SHOULD SHOULD BE PER FLOOR UNIT AREA if therell be amendment on the master deed
AN OWNER CAN SELL A UNIT UNLESS THERE IS A RIGHT OF FIRST REFUSAL must first offered to existing
unit owners
A NOTICE OF UNPAID ASSESSMENT IS REGISTERED WITH REGISTER OF DEEDS lien
COMMON AREAS weight bearing walls, columns and beams, stairways, halls elev etc. including utilities and
amenities
CERTIFICATE OF MANAGEMENT to register a sale, one must get this from the condo corp
GENERAL COMMON AREA not subject to exclusive use
LIMITED COMMON AREA exclusive use like parking space
THE CONDOMINIUM ACT the governing law in buying a condo unit
CITY ENGINEER shall get the approved amendment of condominium apart from HLURB
If damaged and or more units are untenantable, therell be partition by sale if 30% of owners are opposed to
repairs
Condo corp maybe dissolved if 50% are opposed to restoration of a 50 year old structure
Condo corp shall not sell common areas unless authorize by SIMPLE MAJORITY OF THE REGISTERED
OWNERS
COMPLY WITH USE RESTRICTIONS responsibility of unit owner to condo corp
A buyer may ask for a refund of the total amount paid iincluding AMORTIZATION INTERESTS BUT EXCLUDING
DELIQUENCY INTERESTS, WITH INTEREST THEREON AT THE LEGAL RATE
HLURB final approval if condo corp may integrate the project with another
6 MONTHS temporary license to sell validity; issued so that the developer may start selling units
1000 SQM minimum lot area for a farmlot
25% OF FARMLOT buildable for residential
REAL ESTATE INVESTMENT TRUST (REIT) Law stock corporation for the purpose of owning income generating
real estate assets
Constitutive Document means Articles of Incorporation
FUND MANAGER responsible for allocation of the deposited property
PROPERTY MANAGER professional administrator of real properties and management services
AT LEAST 90% -REIT must distribute annually to its shareholders its distributable income
AT LEAST 1000 PUBLIC SHAREHOLDERS for REIT to be recognized as public company
P 300,000,000 minimum paid up capital for REIT
1% CREDITABLE WITHHOLDING TAX REIT income payments is subjected to this

P10,000,000 minimum paid-up capital of fund manager

10% FINAL TAX cash and property dividends is subject to this
SUBSCRIPTION TO SHARES OF STOCKS way to make an investment in the REIT
A developer wants to build townhouses but would like to build a condominium project instead such development
would be called TOWNHOUSE PROJECT
PROVISION FOR MAINTENANCE AND INSURANCE not in master deed
750 SQMS minimum size of farmlot
Condo owner cant PAINT EXTERIOR WALLS OF THE UNIT
CREMAINS ashes from cremation
INURNMENT placing of cremated remains in an urn
500 SQM minimum plot size for an industrial estate per hlurb admin order 2
FACTORY PLOT allocated lot in an industrial subdivision
OSSUARY internment space for bones
PERPERTUAL CARE FUND amount collected for columbarium project maintenance and upkeep
1 X 2.44 METERS minimum burial plot size for ground internment
4 x 5 METERS minimum plot size for mausoleum

LEGAL ASPECTS OF SALE, LEASE AND MORTGAGE

THERE IS MEETING OF THE MINDS for a contract to be valid
CONTRACT OF SALE one of the parties obligates himself to transfer the ownership of and to deliver a
determinate thing, and the other to pay therefore a price certain in money or its equivalent; 3 elements: cause,
being objects sold and consideration for the property
SELLER MUST TRANSFER THE OWNERSHIP
CONDITIONAL SALE there is an agreement contained terms and conditions
Spouses cant sell property to each other as a general except theres a JUDICIAL SEPARATION OF PROPERTY
AGENT CANT ACQUIRE THE PROPERTY THAT IS ENTRUSTED TO HIM BECAUSE OF FIDUCIARY
RELATIONSHIP
NO RIGHT TO REDUCTION IN PRICE if the transferred area is smaller than the indicated area
EQUITABLE MORTGAGE pacto de retro sale but was actually a mortgage
RESIDENTIAL LOTS covered by Maceda Law
60 DAYS GRACE PERIOD for failure to pay monthly payments after 20 months
MACEDA LAW = total payments made x percentage refund; Brokers commission cant be refunded; 50% first 5
years + 5% every year after; RA 6552 rights of a buyer of a condominium unit, when he fails to pay monthly
installments under the contract to sell
4 YEARS PERIOD pacto de retro sale but no mention of right to redemption
Owner is obliged to MAKE PROPERTY SUITABLE FOR THE PURPOSE if it will enter in lease contract
ASSIGN THE CONTRACT OF LEASE lessee cant do this without consent of owner
DEPOSIT for unpaid bills and damages to the premises
MONTH TO MONTH LEASE if owner continues to receive rental during first 5 days after tenancy expiry
1 MONTH ADVANCE, 2 MONTHS DEPOSIT rent control law
Rental payment of lease shall be paid on the date as provided in the contract of lease
NONPAYMENT OF 1 MONTH owner can eject tenant: Makati 3 BR
NEED OF LESSOR FOR USE OF HIS IMMEDIATE FAMILY not a ground to eject the lessee
CITY/MUNICIPAL TREASURER lessee may deposit here in case the owner refuses to receive it
3 MONTHS ejectment period under rent control act
UNDER RENT CONTROL -YOU CANNOT SUBLEASE UNLESS THERES A CONSENT, increase should not
exceed 7%
NONPAYMENT OF LANDLINE not a ground for judicial ejectment
LEASE CONTRACT IS VALID EVEN IF THERES NO WRITTEN AGREEMENT meeting of the minds is enough
UNLAWFUL DETAINER case of the owner in case of ejectment
MORTGAGE IS ACCESORY CONTRACT
RENT TO OWN no limit in increase
5% WITHHOLDING TAX rent of an office space by a business corporation
PACTUM COMMISSORIUM immediately appropriate the property mortgaged upon non payment
3 MONTHS (90 DAYS) right to redeem after foreclosure sale
MORTGAGE SHOULD BE REGISTERED WITH REGISTRAR OF DEEDS
REAL ESTATE MORTGAGE property is the collateral
FORECLOSURE SALE should be sold at public auction
SPECIAL POWER OF ATTORNEY bank need this to sell the property under extrajudicial foreclosure
PACTUM NON-ALIENDO owner cant sell the property during the life of the loan

NON PAYMENT OF PRINCIPAL OBLIGATION a ground for the foreclosure of a real estate mortgage
LEGAL MORTGAGE one required by express provision of the law
ACCELERATION CLAUSE upon non payment, the principal will become due and demandable
1 YEAR FROM REGISTRATION OF FORECLOSURE mortgagor may redeem his property in extrajudicial
CORPORATION MAY REDEEM THE PROPERTY FORECLOSED UNTIL BUT NOT AFTER REGISTRATION OF
SALE
CHATTEL MORTGAGE when personal property is recorded in the Registry of Property as security for the
performance obligation
REGISTRATION reason of notarization of lease contract
OPTION contract granting a person the privilege to buy or not to buy certain real property at anytime within the
agreed period
GENERAL BANKING ACT OF 2000 provides the redemption perio of foreclosed property of corporation from a
bank
P 1 5000 in Municipalities, this is the range of rent to be included in the RENT CONTROL ACT
The buyer may rescind if theres a lack of ATLEAST 10% OF THE TOTAL AREA
VOIDABLE sale of real property which is valid but which may be annulled on grounds
A 5yr lease was entered into by parties and to be valid the same must be WITH A MEETING OF MINDS

DOCUMENTATION AND REGISTRATION

IN PUBLIC INSTRUMENT to be registered with the registry of property
Contract of Sale is still valid even if it is not notarized; AT LEAST 18 YO
Contract of Lease may be registered with the Registry of Deeds provided it must be DULY NOTARIZED
Contract is VOIDABLE if theres consent but vitiated as error, fraud or undue influence
Deed must be duly notarized WHERE THE PARTIES WILL APPEAR BEFORE THE NOTARY PUBLIC
For notarization purposes, a COMPETENT EVIDENCE OF IDENTITY MUST BE PRESENTED
In case a sale of piece of land is through an agent, the authority of the latter must be IN WRITING; valid for 2 years
For SPAs issued abroad and notarized by a native lawyer, the sale entered into is still valid.
DEED OF EXTRAJUDICIAL SETTLEMENT not a common designation for real estate transaction
DACION EN PAGO paying off loans by using property for payment
UNILATERAL DEED OF SALE may be executed by the seller to be able to sell w/o requiring the buyer to be
present; for buyers who are based abroad
In DOAS, CAPACITY TO BUY LAND should be indicated with respect to the corporate buyer
CORPORATE SECRETARYS CERTIFICATE sale must be accompanied by this for the purpose of signing for the
corp
MINOR BE REPRESENTED BY THE LEGAL GUARDIAN for minor to purchase condo unit
ACKNOWLEDGEMENT refers to an act whereby a person appears before a notary public
VENDOR in DOAs, the owner of the house being sold is generally referred
POWER OF ATTORNEY an authorization to act on someones behalf
SPA required if the owner will be represented by the daughter; lease of real property for more than 1 year
PRIMARY ENTRY BOOK where RD records the instrument of sale and other pertinent docs PD 1529
LAW ON AGENCY law governing use and requirement of a power of attorney in a sale
CONTRACT OF AGENCY where a person binds himself to render some service or to do something in
representation of another
In Bilateral DOAS, seller and witness signs the DOAS
AFFIDAVIT OF LOSS owner must execute submit this at Registry of Deeds if the TCT cannot be located
It is not required to submit the ORIGINAL COPY OF THE TITLE to register a sale with RD
GENERAL POWER OF ATTORNEY atty in fact should have this in rental transaction; it authorizes your agent to
act on your behalf for administration, general supervision and management
In order to be issued a title with only tax dec, a title requires the filing of a land registration proceeding in the
REGIONAL TRIAL COURT WHERE THE PROPERTY IS LOCATED
SUBSTITUTE POWER OF ATTORNEY SPA of the SPA
DEATH OF THE PURCHASER SPA of executed by the buyer to purchase land will not be extinguish under the
this
NOTICE OF LIS PENDENS TCT annotation indicates that the property is involved in a civil case; land is subject to
case for recovery
PRINCIPAL owner who desires to sell will execute a SPA
Land Registration Authority is under DOJ
PD 1529 Property Registration Decree
ACT OF REGISTRATION operative act to convey or affect land in a sale insofar as third persons are concerned
OWNERS DUPLICATE CERTIFICATE OF TITLE presented with the deed of sale in the RD to register DOAS

TCT indefeasible and imprescriptible

CANCELLATION OF MORTGAGE instrument executed by the mortgagee in the RD to discharge mortgage
ADVERSE CLAIM valid for 30 days; may be cancelled by the order of the court
SEC 4, RULE 74 lien in case of registration of deed of extrajudicial settlement; 2 years from date of registration;
there should be a VERIFIED PETITION FOR CANCELLATION to cancel this
Settle of adjudication should be published ONCE EVERY THREE WEEKS for a DOES to be registered
AFFIDAVIT OF PUBLICATION BY HEIR proof for extrajudicial settlement has been done
AFFIDAVIT OF SELF ADJUDICATION if theres one sole heir, this must be registered for the settlement of the
state
There should be order of the court if there shall be erasures, alteration or amendment in Title.
In case of loss, the owner may PETITION FOR ISSUANCE OF DUPLICATE OWNERS CERTIFICATE OF TITLE
REGIONAL TRIAL COURT where the lost/destroyed titles shall be reconstituted; should be at least 10% (not less
than 500) of the titles
Deeds, conveyances and other instruments shall be signed by at least TWO WITNESS
CERTIFICATE OF REDEMPTION must be presented in the RD to cancel the certificate of sale after the owner
was able to redeem the property
TRANSFER TAX No RD shall register a sale unless it is shown that the ff yearly taxes have been paid and
updated in the citys treasury office
LAND TITLING COMPUTERIZATION PROJECT LRA should enable the quick and secure registration of land titles
in the country through the application of state-of the-art information technology under this program
2 YEARS validity of notary publics authority to perform notarial acts
JUDICIAL FORM form used for the issuance of the TCT
SPA to be irrevocable the same must be COUPLED WITH INTEREST
CONTRACT TO SELL OF A SUBDIVISION LOT required by law to be registered with the RD
LAND REGISTRATION AUTHORITY exists for the sole purpose of implementing Torrens system
LAND REGISTRATION ACT prior to property registration decree
EULALIO DIAZ III current admin of LRA
DOAS sale be registered with RD in ANY SUFFICIENT FORM

REAL ESTATE BROKERAGE AND PRACTICE

PRESENTATION AND DEMONSTRATION step in the brokerage process where the broker is showing the
unit/amenities
TO DRAFT A LEGAL CONTRACT TO SELL is not considered a function of a real estate broker
Salespersons should be DULY ACCREDITED WITH PRC
LAW ON AGENCY law that governs the relationship between broker and owner in lease transaction
Broker MUST BE THE PROCURING CAUSE to be entitled to a professional fee
EXCLUSIVE RIGHT TO SELL REB would get a fee even though the owner was able to find a buyer
REB comm; Real Estate Dealer PROFIT
Owner principal; REB AGENT
OPEN LISTING there are many authorities to sell
NET LISTING prof fee beyond the minimum amount that the owner would want to receive
PROFICIENCY IN ENGLISH not really an essential element of REB
UPON CONSUMMATION OF THE CONTRACT REB is entitled to a professional fee; If theres 2 brokers, comm
would be shared as agreed upon
HOLDOVER CLAUSE if buyer was registered within the period of authority to sell, broker is still entitled to a comm
REAL PROPERTY physical, tangible entity, together with all the additions on, above or below the ground, includes
all the rights, interests benefits related to the ownersip of real estate
REB should be LICENSED UNDER PRC to lease wrehouses
REAL ESTATE DEALER engaged in trading and leasing his own real properties with purpose of profit
st
SECURE PROPERTY LISTINGS -1 step in real estate brokerage practice
The authority is still VALID even if its not in writing
TREASURERS OFFICE where the professional tax must be paid
PURCHASE AGENCY if the principal is looking for properties to buy
REGISTRATION NUMBER WITH PRC should be indicated in ads, calling cards etc
MORTGAGE AGENCY authority given by a buyer for the broker to secure financing
JOINT VENTURE AGENCY - authority given by a party to look for a partner to develop a residential subdivision
MULTIPLE LISTING cooperative arrangement
PROSPECT a buyer whos willing to buy a property
BOARD RESOLUTION OF CORPORATION AUTHORIZING SIGNATORY if listing is from a corp
TURNOVER OF THE PROPERTY is not really part of the steps in real estate brokerage

The earnest money shall be considered as FORMING PART OF THE PURCHASE PRICE
NEGOTIATIONS thru broker mediations theres meeting of the minds
ESCROW agreement (third party in sale transaction); agent (person)
LISTING authority by a REB to find a lessee
OPTION MONEY shall be separate and distinct from the purchase price;
Another option aside from escrow is the RETENTION OF MONEY UNTIL SELLER VACATES
PROJECT SELLING general term to selling properties
SHARING OF BROKER WITH ANOTHER BROKERS not contained in an authority to sell
EXCLUSIVE AGENCY LISTING exclusive broker wont get the comm if the owner sold the property
FIDUCIARY RELATIONSHIP relation of trust that governs owner and listing broker
REB may advertise the property for sale provided THE CONSENT OF THE OWNER IS GIVEN
IRREVOCABLE AUTHORITY not a mode of extinguishing agency bet owner and broker
REBs liability for the RES shall be limited to acts within the scope of authority given by the broker
TO WARRANT THAT THE TITLE IS TRANSFERRED TO THE BUYER is not a duty of the real estate broker
REB is not expected to have a working knowledge of Real estate assessment
Difference between REB and Real Estate Dealer is ONLY THE BROKER EARNS PROFESSIONAL FEES
SUSPECT buyer willing to buy the but cannot afford the price
NON-EXCLUSIVE LISTING authority granted to 2 or more brokers to lease a property
TRANSFERRING THE TITLE not a function of REB
DIRECT BUYER buyer without engaging the broker
REB TYPES: GENERAL AND PROJECT SELLING BROKERAGE
FSBO for sale by the owner
LISTING BROKER has an authority to sell a specific property
REB is already considered a practicing broker when IN PRACTICE OCCASIONALLY
In case of non payment of comm, the demand and claim will have to go to COURTS

REAL ESTATE FINANCE

MULTIPLIER EFFECT effect that is made in one aspect of the economy with the other economic activities
NEEDS cant be predicted in real estate economics
PRICE result of the interplay and relationship between supply and demand
Monthly amortization on a dimishing balance on installment sales of lots =amortization financed x amortization
factor
BUYERS MARKET numerous lots being sold but only few buyers
EQUITY difference between total price and loanable amount
INTEREST RATE AND TERM OF PAYMENT where the amortization is based
SELLERS MARKET few lots being sold but numerous buyers
SPOT CASH/CASH PAYMENTnot considered as sale on financing
1000 sqm maximum size of residential through Pagibig Financing
In obtaining a housing loan, it is required that THE HOUSE PURCHASED MUST BE MORTGAGED TO THE BANK
MONTHLY AMORTIZATION monthly payments of an installment
Amount to be financed =TOTAL CONTRACT PRICE MINUS DOWNPAYMENT
70 YEARS maximum age limit for the maturity of payment of the loan in pagibig financing
MORTGAGE REDEMPTION INSURANCE addl requirement which is to pay off the loan or outstanding obligation
upon the death of the borrower
DEFERRED CASH PAYMENT where the buyer pays the total price within a short of period of time without interest
MULTIPLIER EFFECT OF REAL ESTATE effect of real estate on the other economic activities of the country;
1:16.6 index used in the Philippines
DP =TOTAL CONTRACT PRICE MINUS AMOUNT FINANCED
MONTHLY INTEREST =(TCP X PERCENT PER ANNUM) / 12
Freddie was paying a monthly amortization of P 54,100/month at 21% interest per annum. If the amortization factor
is 0.02705. How much is the amount being financed? ANS: 2,000,000
DIMINISHING BALANCE interests in payments decreases while the payment of principal increases
LOAN VALUE amount of the property used as a basis for the maximum amount of loan that can be given
BALLOON PAYMENT after 5 years of installment, buyer will make a lump sum payment at the end
A movement in the supply of real estate housing versus the effective demand would affect the PRICE
IN HOUSE FINANCING provided by the developers
3,000,000 maximum loanable amount in Pagibig
CAPACITY TO PAY bank will determine this to assess the loanable amount
BRIDGE FINANCING availed of by the borrower in the event his long term loan is not yet approved for the
purchase

ANTICHRESIS credit acquires the title to receive fruits of a property from the borrower to be applied to the
payment of the interest and thereafter to the principal amount
DEMOGRAPHICS important and main determinant in the demand for housing
HOME DEVELOPMENT MUTUAL FUND provides most housing loans and provident loans to the public
REPRICING refers to the change in interest rates on agreed interval periods of the loan between the lender and
the borrower
100% -loan to value ratio for affordable housing through Pagibig Fund up to 400k
LETTER OF GUARANTY assurance given by a bank to the seller that he/she will be paid by the bank for the
approved buyers loan under certain conditions
4.5% -interest rate under the present affordable housing of pagibig
MORTGAGEE lends money to the borrower
2000 processing fee to be paid by a borrower of a Pagibig loan at the time of approval and take out
6.6% -GDP growth of Phils 2012; 7.1 2013; 6.1 2014; 5.8 2015
3 MEMBERS maximum number of Pag-ibig members that may be tacked into a single loan
2950 CONTRIBUTION Pagibig loan 5.9 to 6M
65 YEARS OLD age limit of pag-ibig loan
PRETERMINATION PENALTY amount charged to the borrower for early payment of the principal
CTS arrangement made with the developer and pag-ibig fund to guarantee the payment of the monthly
amortization by the borrower and failure of which within a certain period, the developer will buy back the contract to
sell from Pag-ibig
1.9% -population growth per NEDA from 2000-2010

URBAN AND RURAL LAND USE

URBAN DEVELOPMENT AND HOUSING ACT OF 1992 law providing for a comprehensive urban and housing
program in the Phils. RA 7279
AREAS FOR PRIORITY DEVELOPMENT -244 areas in Manila identified in Proclamation 1967
URBAN LAND REFORM ZONES term used interchangeably to refer to areas for priority development
284 present number of APDs/ULRZs
LAND USE PLAN allocating available land resources as equitably as possible among competing user groups for
diff functions
LAND ASSEMBLY acquisition of lots of varying ownership through purchase or expropriation for the purpose of
planned development and socialized housing programs without individual property restrictions
ON SITE DEVELOPMENT process of upgrading blighted and slum urban areas with a view of minimizing
displacement of dwellers in said areas
SMALL PROPERTY OWNERS not exceeding 300 sqm residential lots in highly urbanized areas; 800 sqm in other
urban areas
LAND BANKING acquisition of lands in advance of actual need to promote planned development and socialized
housing programs
LAND SWAPPING process of land acquisition by exchanging land for another piece of land of equal value, or for
shares of stock in a government or quasi government corporation, for the purpose of planned and rational
development and provision for socialized housing
PROFESSIONAL SQUATTERS occupy the land without consent of the owner and who have legitimate income for
housing
SECURITY OF TENURE degree of protection afforded to qualified beneficiaries against unjust eviction
RESETTLEMENT AREAS used for relocation of the underprivileged and homeless citizens
SLUM IMPROVEMENT AND RESETTLEMENT PROGRAM program of NHA of upgrading and improving blighted
areas outside metro manila
SQUATTING SYNDICATES groups of persons engaged in business of squatter housing
UNDERPRIVILEGED AND HOMELESS CITIZENS beneficiaries of this act
Urban areas in RA 7279 -500 persons/sqKM
URBANIZABLE AREAS lands which display marked and great potential of becoming urban areas within 5 years
For planning purposes, HUDCC shall be furnished by the LGU a copy of its inventory EVERY 3 YEARS
EXPROPRIATION/ACQUIRING PRIVATE LANDS least priority in modes of acquisition
DEPARTMENT OF FINANCE land valuation guidelines shall be set on the latest real property tax dec by this
agency
Should the beneficiary unlawfully dispose lot shall also lose right to land, and shall be barred from benefits under
this act from date of violation for a period of 10 YEARS
A Beneficiary must not be UNDERPRIVILEGED AND HOMELESS to qualify for a socialized housing program
EXEMPTION FROM PAYING LOCAL REAL ESTATE TAXES not an incentive to encourage greater participation
in socialized housing

NHA or LGU provides socialized housing or resettlement areas

ON SITE DEVELOPMENT shall be implemented whenever possible in order to ensure minimum movement of
occupants of blighted lands and slum areas
6 YEARS IMPRISONMENT; 60,000 100,000penalty of professional squatters and squatting syndicate
WHEN THE PRIVATE OWNER NEEDS THE LAND squatters should be evicted or demolished
ADEQUATE PERMANENT LOCATION not a mandatory in execution of eviction or demolition
PREVAILING MINIMUM WAGE X 60 DAYS financial assistance if the relocation provided not be possible with the
period
Relocation shall be undertaken by the LGU concerned and the NHA with the assistance of other government
agencies from service of notice by the court within 45 DAYS
ESTEROS, RAILROAD TRUCKS, RIVERBANKS unlawful to build structures
COMMUNITY HOUSING PROGRAM mortgage financing program of the NHMFC assists legally organized
associations of underprivileged and homeless citizens to purchase and develop a tract of land under the concept of
community ownership; EXEMPTED FROM CAPITAL GAINS TAX; SHALL NOT BE EVICTED IN 3 MONTHS;
administered by NHA
1/2 OF 1% OF THE ASSESSED VALUE constitutional principle that the ownership of propertys social function
and to raise funds, all local government units are authorized to impose an additional RET on land of; additional may
be imposed on urban lands shall only be applied to lands with 50,000 assessed value over
UP TO 6 YEARS IMPRISONMENT AND 5K 100K FINE violators of RA 7279
LGU responsible for implementation of RA 7279; mandated to provide local housing needs for constituents
Urban Land Reform was declared under the law under PD 1517
Decisions of Local zoning boards may be appealed to HLURB
COMPLIANCE PROJECT project utilized to comply with the balance housing development required under section
18 of RA 7279
NON PERFORMING SOCIALIZED HOUSING ASSETS socialized housing units of projects owned by the
government housing agencies needing rehabilitation and restoration before they can be made available for sale
POTABLE WATER basic service provided by LGU or NHA in socialized housing
CAPITAL GAINS TAX ON RAW LAND USED FOR THE PROJECT tax exemptions to encourage greater private
sector participation
TOTAL SUBDIVISION AREA gross land area + aggregate floor area of all housing units under RA 7279

PLANNING, DEVELOPMENT AND ZONING

HLURB assists LGU in the formulation of their respective land use plans
LOCAL GOVERNMENT CODE OF 1991 law that provides that the local government shall prepare respective land
use
12 STEPS TO LAND USE PLANNING recommended in forming LUP
TOWN PLAN official public document adopted by the local government units as a guide to decision regarding the
physical and socio-economic development of the community
LAND USE PLAN allocation of land resources to different use on the comprehensive and integrated plan for the
area
ZONING division of the community into functional zones; concerned with use of land, control of density thru
imposition of building height control, open space etc
LAND USE PLANNING refers to the rational and judicious approach of allocating available land resources to
different land using activities such as residential, commercial etc
Land use plans shall be enacted through their respective ZONING ORDINANCE (logical arranges, prescribes and
apportions a given political subdivision)
ZONING MAP a graphic presentation of the zone classifications
STAKEHOLDER has an interest in the development activity, program or project
CARRYING CAPACITY ANALYSIS studying the effects of population growth and urban development on the
ecosystem
R-1 low density residential
C-2 medium density commercial zone
SHZ socialized housing zone
POLICE POWER legal basis of the LGU to zone areas
BUILT-UP AREA contiguous grouping of 10 or more structures
CBD areas for trade, services and business purposes as used in the zoning ordinances
CONFORMING USE use of an area in accordance with the zoning classification
CLUP docu embodying specific proposals for guiding, regulating growth and development of a city
EXCEPTION grants an owner relief from certain provisions of a zoning ordinance
FAR = GFA/LOT WHERE IT STANDS

CONFLICTING USES refers to uses or land activities with contrasting characteristics sited adjacent to each other
COMPATIBLE USE capable of existing together harmoniously
CERTIFICATE OF NON-CONFORMANCE certificate issued to owners of all uses existing prior to the approval of
the zoning ordinance which do not conform in a zone as per provision of the said ordinance
AGRICULTURAL ZONE intended for cultivation/fishing and pastoral activities
REZONING process of introducing amendments to or a change in the text or maps of the zoning ordinance
ZONING ADMINISTRATOR employee responsible for the implementation of the zoning ordinance
SETBACK open space left between the building the lot lines is referred to
I-2 Medium Industrial Zone
66 DWELLING UNITS OR MORE PER HECTARE High density residential
LOCAL ZONING BOARD AND ADJUSTMENT APPEALS where application for exemption is filed
MALLS High density commercial zones
GOLF COURSE not considered environmentally critical area
WATER BODIES TAPPED FOR DOMESTIC SOURCES not environmentally critical project
In low residential zone no building should be higher than 10 METERS
AIR TRANSPORTATION OFFICE prescribes the height limit in the national building code
GFA total floor space within the perimeter of the permanent external walls
SPECIAL INSTITUTIONAL ZONE institutional establishments like welfare homes, homes for the aged etc
GENERAL RES ZONE no filling station/service station
20 DWELLING UNITS AND BELOW low density residential
BEDROOM not a customary accessory in dwelling units
BUFFER AREA separates incompatible elements, uses to control pollution, no permanent structures are allowed
TOURIST ZONES sites within cities endowed with natural physical attributes and resources that are conducive to
recreation, leisure and other wholesome activities
WATER ZONE bodies of water within cities or municipalities w/c includes rivers, streams, lakes, and seas

ECOLOGY
ECOLOGY Ddistribution and abundance of life and interactions between organisms and their environment; syn natural environment
ECOSYSTEM all organisms living in a particular area, as well as nonliving, physical components of the
environment
BIOMES major regional grouping of plants and animals
ABIOTIC non living and physical components of the environment
DENR tasked to protect the envi and natural resources of the country
ENVIRONMENTAL IMPACT ASSESSMENT process that involves predicting and evaluating the likely impacts of a
project
ENVIRONMENT COMPLIANCE CERTIFICATE proponent conforms with by signing the sworn undertaking of full
responsibility over implementation of specified measures which are necessary to comply with existing
environmental regulations
THE PHILIPPINE CLEAN AIR ACT OF 1999 law that governs the protection of the environment, particularly
covering the pollution control of the atmosphere
CERTIFICATE OF NON COVERAGE project is not covered by the EIS system and is not required to secure an
ECC
ENVIRONMENTAL CRITICAL PROJECT project which may pose significant negative impact at certain threholds
of operation regardless of location
ENVIRONMENTALLY CRITICAL AREA environmentally sensitive such that significant environmental impacts are
expected if certain types/thresholds of proposed projects are located, developed or implemented in it
ABANDONMENT STAGE there shall be specific measures and conditions that the project proponent has to
undertake
Most problematic sources of pollution air, water, and SOLID WASTE
AIR POLLUTANT any matter found in the atmosphere that is detrimental to health
AMBIENT AIR QUALITY general amount of pollution present in a broad area; atmospheres average purity
CERTIFICATE OF CONFORMITY certicate issued by DENR certifying that a new vehicle meets the requirements
of the law
GREENHOUSE GASES potentially be expected to induce global warming
INFECTIOUS WASTE means that portion of medical waste that could transmit an infectious disease
ECO-PROFILE geographic based instrument for planners and decision makers which present an evaluation of the
environment quality and carrying capacity of an area
MEDICAL WASTES materials generated as a result of patient treatment
OZONE DEPLETING SUBSTANCES substances that deplete ozone layer

INCINERATION burning of waste which emits poisonous and toxic fumes

SIGA called the traditional small-scale method of community neighborhood sanitation
TREATMENT not part of the sold waste reduction scheme
DISPOSAL in hierarchy of solid waste management, the following is the last method considered
AGRICULTURAL WASTES generated from planting/harvesting crops
BULKY WASTES cant be appropriately placed in separate containers because of size, shape or other physical
attributes
COMPOSTING controlled decomposition or organic matter by micro-organisms
CONTROLLED DUMP disposal site at which solid waste is deposited in accordance with the minimum prescribed
standards of site operation
ECOLOGICAL SOLID WASTE MANAGEMENT systematic administration of activities which provide segragation
at source, segregated transportation, storage, transfer, processing, treatment, and disposal of solid waste
LEACHATE liquid produced when waste undergo decomposition and when water percolate through solid waste
undergoing decomposition
MATERIALS RECOVERY FACILITY solid waste transfer station; sorting, drop-off, composting, recycling
OPEN DUMP wastes are indiscriminately thrown of without due planning and consideration for environmental
standards
RE-USE process of recovering materials intended for the same or different purposes
SANITARY LANDFILL site designed, constructed, operated and maintained in a manner that exerts engineering
control over significant potential environmental impacts
SOLID WASTE discarded household, commercial, non hazardous, agricultural and other solid waste
SOLID WASTE MANAGEMENT discipline associated with control of generation, storage, collection, transfer, and
transport, processing/disposal of solid wastes
SPECIAL WASTES paints, thinners, batteries, spray canisters and the like
TRANSFER STATIONS facilities to receive solid wastes, temporarily store, separate, convert, or process the
materials in the solid wastes, or to transfer the solid wastes directly from smaller to larger vehicles for transport
BLACK color of non biodegradable solid waste container
GREEN - color of biodegradable solid waste container
DOMESTIC SOURCES largest source of water pollution
POINT SOURCE identifiable source with specific point of discharge into body of water
NON POINT SOURCE cropland runoffs, animal wastes, construction sites, mining and logging operations,
landfills, spils
DRINKING WATER water intended for human consumption
FRESHWATER containing dissolved common salt containing less than 500 ppm
GROUNDWATER subsurface water occurs beneath a water table in soils and rocks or in geological formations
SEWAGE water borne wastes, excluding oil or oil wastes, removed from residences, bldgs. Etc. discarded
EFFLUENT discharge from known sources which is passed into a body of water or land
SURFACE WATER all water which is open to the atmosphere and subject to surface runoff
LAGUNA LAKE DEVELOPMENT AUTHORITY shall have exclusive jurisdiction to issue permit for the use of all
the surface water for any projects in or affecting the said region
LAGUNA DE BAY REGION rizal, laguna (san Pablo), pasay Caloocan, quezon, manila, tagaytay, town of carmona
cavite
SLUDGE solid or semi solid or liquid waste or residue generated from wastewater/water treatment plant, waste
control pollution facility
NATIONAL COMMISSION ON INDIDENOUS PEOPLE primary govt agency for indigenous people
Total number of ethnoliguistic groups of indigenous people is estimated to be 110
INDIGENOUS CULTURAL COMMUNITIES refers to a group of people or homogenous societies identified by self
ascription and ascription by other who have continuously lived as organized community on communally bounded
and defined territory
WRIT OF KALIKASAN remedy available to a non-governmental organization whose constitutional right to a
balanced and healthful ecology is violated
FREE AND PRIOR INFORMED CONSENT consensus of all the ICCs/IPs to; be determined in accordance with
their respective customary laws/practices
A petition for protection of the environment shall be filed with the SUPREME COURT
CERTIFICATE OF ANCESTRAL DOMAIN TITLE a title recognizing the rights of possession and ownership of
ICCs/IPs over ancestral domains
TEPO Temporary environmental protection order
WASTE AVOIDANCE AND REDUCTION Highest priority in hierarchy of solid waste management
DOMESTIC WASTE highest major source of water pollution

EPO (ENVIRONMENTAL PROTECTION ORDER) order issued by the court directing or enjoining any person or
government agency to perform or desist from performing an act in order to protect the environment

REAL ESTATE APPRAISSAL, SITE LOCATION AND MAP READING

REAL ESTATE APPRAISSER graduate of relevant bachelors degree; private practitioner (valuer) required to post
a 20,000 bond; city assessor should get a licensure to be promoted in higher position
APPRAISSAL estimate of value as of a particular point in time expressed in peso amount; NOT for capital gains
tax
ORAL REPORT not allowed anymore under RESA
PARTITIONING OF ESTATE purpose of appraisal where it is used to determine the FMV for distribution to heirs
PRINCIPLE OF SUBSTITUTION value of replaceable property intends to be indicated by the value of equally
desirable substitute property; market data approach (considered an approach to value) is related
PRINCIPLE OF HABU most likely to produce the greatest net return
INCREASING AND DECREASING RETURNS application of larger and larger amounts of the agents in production
will produce greater and greater net income up to a point is
PRINCIPLE OF CONFORMITY reasonable degree of social and economic homogeneity
PRINCIPLE OF ANTICIPATION value is worth of all present and future benefits arising from ownership; income
approach (estimates of the actual or stabilized gross income less provisions for vacancy and bad debts, operating
expenses, real estate taxes, repairs and maintenance, and administrative charges) is related
PRINCIPLE OF REGRESSION/PROGRESSION -old right beside new, increased or decreased value
SOCIAL AND IDEAL STANDARDS considered a factor that creates value
FUNCTIONAL OBSOLESCENE value depreciates in view of the decline in the utility or feature of the property
COST APPROACH utilizes the concept of determining replacement cost
If building depreciates 2% per year, life of the building will be 50 YEARS
Gross income multiplier = selling price of a comparable property / ANNUAL GROSS INCOME
TIE LINE considered an imaginary line used by the geodetic engineer in plotting and locating a specific property
VICINITY MAP map w/c provides the general location of a real property including the surrounding landmarks and
reference points
GEODETIC ENGINEER professional who undertakes resurvery, sevey and determination of lot boundaries
LOT PLAN determines the shape and dimensions of the lot being purchased
PACING counting of steps in a required distance to determine distance
BEARING angle less than 90 degrees measure from N to S and referred to in plotting a lot as
ONE DEGREE = 60 MINUTES
GEOHAZARD MAP identifies flood prone and landslide prone areas
TOPOGRAPHIC MAP map showing all the details that make up the surface features of the earth
CONTOUR LINES lines that indicate variation in land elevation
SUBDIVION PLAN plan showing general features and layout of a subdivision including block and lots and open
spaces
BUREAU OF LANDS BARRIO MONUMENT common point of reference is seen in the technical description
HYDROGRAPHIC SURVEY principal purpose is the determination of data relating to bodies of water
LAND CLASSIFICATION SURVEY classification of the countrys unclassified public forests into alienable or
disposable lands
Psu = private survey
Pcn = private consolidation subdivision survey (IF BUYER BOUGHT ADJACENT LOTS)
Psd = private subdivision
BEARING AND LOT POINTS to plot the shape and details of the lot
VALUE relationship between a thing desired and a potential purchaser
PURCHASING POWER observation in principles of appraisal is that the desire for the property must be backed by
SUN ORIENTATION not a value factor in the appraisal of parcel of land
DETERIORATION loss in value brought about by the wear and tear and the action of natural elements
BUREAU OF LANDS approves the subdivision plan of a parcel of land which has been subdivided into several lots
CYLINDRICAL CONCRETE MONUMENT marker used in the lot plan boundaries on the parcel land
MARKET DATA APPROACH sales comparison approach
REPRODUCTION COST cost to create a virtual replica of a n existing building using the same design and similar
building materials