Bar Subject: Practical Exercises

What converts a private deed of absolute sale into a public document under Philippine law?

• AThe registration of the deed with the local government treasurer's office
• BThe formal acknowledgment of the instrument before a duly commissioned notary public
• CThe payment of capital gains tax and documentary stamp tax to the Bureau of Internal Revenue
• DThe physical delivery of the original owner's duplicate certificate of title to the buyer

Notarization converts a private document into a public instrument under the 2004 Rules on Notarial Practice.

Which article of the Civil Code requires contracts transmitting real rights over immovable property to appear in a public document?

• AArticle 1144
• BArticle 1358
• CArticle 1495
• DArticle 1602

Article 1358 of the Civil Code mandates that contracts conveying real rights over immovable property must appear in a public document.

Under the principle of autonomy of contracts, how may parties allocate taxes in a real estate sale?

• ATaxes must always be borne equally between seller and buyer regardless of agreement.
• BThe parties may freely agree on the allocation of taxes and transfer expenses.
• CThe buyer is strictly prohibited from assuming the seller's capital gains tax liabilities.
• DThe local civil registrar determines tax allocations based on zonal property values.

Parties are free to stipulate the allocation of taxes and expenses under the autonomy of contracts.

What is the legal effect of executing a notarized deed of absolute sale over real property?

• AIt automatically creates a real estate mortgage in favor of the local municipality.
• BIt constitutes constructive delivery of the property and creates a registrable public instrument.
• CIt exempts the transaction from all national and local tax liabilities.
• DIt extinguishes the buyer's obligation to pay the remaining balance of the purchase price.

Execution of a public instrument constitutes constructive delivery and creates a registrable document.

What requirement must a notary public verify before executing a notarial acknowledgment on a deed of sale?

• AThe active tax exemption status of both the buyer and seller
• BThe personal appearance and competent evidence of identity of the executing parties
• CThe certified true copy of the buyer's municipal business permit
• DThe written recommendation of the barangay agrarian reform council

Notaries must confirm personal appearance and verify competent evidence of identity before acknowledging documents.

What is the primary requirement for an affiant when executing a jurat before a notary public?

• ASubmitting a written waiver of personal appearance signed by two witnesses
• BPersonally appearing before the notary public and taking an oath or affirmation
• CFiling a petition for notarization with the Clerk of Court of the Regional Trial Court
• DPaying a fixed administrative fee set by the Integrated Bar of the Philippines

A jurat requires the affiant to personally appear before the notary public and take an oath or affirmation.

Under the 2004 Rules on Notarial Practice, what constitutes competent evidence of identity for a jurat?

• AA residence certificate issued by the local barangay chairman
• BAn official current photo ID bearing the signature of the individual issued by a government agency
• CA community tax certificate issued within the preceding five years
• DA personal affidavit executed by an immediate family member of the affiant

Competent evidence of identity requires an official current government-issued photo ID bearing the signatory's signature.

How does a jurat differ fundamentally from an acknowledgment in Philippine notarial practice?

• AA jurat involves an oath as to the truth of contents, whereas an acknowledgment confirms voluntary execution.
• BA jurat can only be executed by corporate officers, whereas an acknowledgment is for private individuals.
• CA jurat does not require the physical presence of the affiant before the notary public.
• DA jurat is used exclusively for contracts involving the sale of registered real estate properties.

A jurat involves swearing to the truth of document contents, while an acknowledgment confirms voluntary execution.

What is the legal consequence if a notary public executes a jurat without the affiant personally appearing before them?

• AThe notary public is subject to administrative revocation of commission and disciplinary sanction.
• BThe document automatically converts into a non-binding private writing without legal effect.
• CThe notary public must pay a fine to the Department of Justice within thirty days.
• DThe affiant is granted an automatic thirty-day extension to ratify the document.

Executing a jurat without personal appearance constitutes grave misconduct warranting revocation of the notarial commission.

Which of the following notations must appear at the conclusion of a notarized jurat block?

• AThe residential addresses of two instrumental witnesses who observed the signing
• BThe Doc. No., Page No., Book No., and Series year of the notary's register
• CThe certificate of good moral standing issued by the Integrated Bar of the Philippines
• DThe judicial docket number of the pending civil case before the regional trial court

A complete jurat includes the Doc. No., Page No., Book No., and Series year corresponding to the notarial register.

What is the primary legal effect of executing a Deed of Absolute Sale in a public instrument?

• AIt automatically exempts the transaction from all national capital gains taxes
• BIt transfers constructive ownership of the real property from the seller to the buyer
• CIt converts the real property into a non-transferable government heritage asset
• DIt stays all pending expropriation proceedings before the local trial court

Execution of a public instrument transfers constructive ownership of real property to the buyer.

Under general Philippine practice and custom, which tax arising from the sale of real property is typically borne by the seller?

• ALocal transfer tax payable to the city treasurer
• BCapital gains tax arising from the disposition of real property
• CRegistration fee payable to the Registry of Deeds
• DValue-added tax on residential lease rentals

Capital gains tax arising from the sale of real property is typically paid by the seller.

Why is a notarial acknowledgment essential in a Deed of Absolute Sale involving real property?

• ATo allow the document to be registered with the Registry of Deeds and bind third parties
• BTo guarantee that the purchase price is deposited directly into a Supreme Court escrow account
• CTo convert the civil deed into an unappealable criminal judgment of conviction
• DTo grant the notary public a permanent ten percent ownership stake in the property

Notarial acknowledgment converts the deed into a public instrument eligible for registration to bind third parties.

Under the 2004 Rules on Notarial Practice, how must the identity of contracting parties be established before a notary public?

• AThrough informal oral assurances provided by neighbor witnesses
• BThrough competent evidence of identity consisting of current government photo identification
• CThrough a certified tax declaration issued by the municipal assessor
• DThrough a written endorsement issued by the local Barangay Captain

The notary public must verify party identities through competent evidence of identity like valid government-issued photo IDs.

What is the legal status of an unnotarized Deed of Absolute Sale of land between the buyer and seller?

• AIt is completely void ab initio and transfers no rights whatsoever
• BIt remains valid and binding between the parties but cannot be registered with the Registry of Deeds
• CIt is converted into a unilateral contract of mortgage under the Civil Code
• DIt exposes both contracting parties to summary criminal disbarment

An unnotarized deed is valid between the parties but cannot be registered to bind third parties.

What is the legal significance of sending an extrajudicial demand letter under Article 1169 of the Civil Code?

• AIt automatically rescinds the contract without need for judicial intervention
• BIt puts the defaulting obligor in legal delay after the expiration of the period
• CIt transfers title over the real property directly to the buyer upon mailing
• DIt exempts the transaction from all national tax liabilities under the tax code

An extrajudicial demand puts the defaulting party in legal delay upon the expiration of the given period.

Under Article 1191 of the Civil Code, what remedies are available to a buyer when the seller breaches contractual obligations?

• AAction for criminal disbarment or administrative contempt of court
• BAction for specific performance or rescission of contract, with damages
• CEx parte petition for mandatory mediation before the local barangay
• DAutomatic forfeiture of the seller's property in favor of the national government

The aggrieved party in a reciprocal obligation may choose between specific performance and rescission, with damages.

What is the effect of a seller's failure to pay Capital Gains Tax within the stipulated contractual period?

• AThe contract of sale becomes void ab initio under the rules of civil law
• BThe buyer is prevented from securing a eCAR and registering the title
• CThe local trial court automatically issues a writ of execution against the seller
• DThe Registry of Deeds cancels the seller's tax declaration without notice

Non-payment of capital gains tax prevents the issuance of an eCAR required for title registration.

Which document is required from the Bureau of Internal Revenue before the Registry of Deeds can issue a new title to the buyer?

• ACertificate of Good Moral Standing
• BElectronic Certificate Authorizing Registration (eCAR)
• COrder of Mandatory Injunction
• DBarangay Clearance for Real Property Transfer

An Electronic Certificate Authorizing Registration (eCAR) from the BIR is required before title transfer.

What notice period is customarily provided in a demand letter to allow a defaulting party to cure contractual breach?

• AExactly twenty-four hours from receipt
• BA reasonable period such as fifteen days from receipt
• CA mandatory statutory period of ten years
• DExactly sixty calendar days from notarization

A reasonable period, customarily fifteen days from receipt, is provided to cure the breach.

What is the primary ground for declaring a defendant in default under Rule 9, Section 3 of the Rules of Court?

• AThe defendant fails to file an answer within the reglementary period despite valid service of summons
• BThe defendant refuses to attend the scheduled pre-trial conference in person
• CThe defendant fails to pay the required legal mediation fees to the trial court clerk
• DThe defendant files an unverified motion to dismiss based on improper venue

Default is declared when the defendant fails to file an answer within the reglementary period after valid service of summons.

Under the Rules of Civil Procedure, what is required before the court may issue an order declaring the defendant in default?

• AA written motion by the plaintiff with notice to the defendant and proof of failure to answer
• BAn ex parte verbal motion dictated directly into the court record during trial setting
• CAutomatic summary certification issued by the clerk of court without notice
• DA joint motion signed by both the plaintiff and the local barangay chairman

Declaring a defendant in default requires a written motion by the plaintiff with notice to the defendant and proof of default.

What is the immediate legal consequence when a defendant is declared in default by the trial court?

• AThe defendant loses standing in court and cannot actively participate in subsequent proceedings
• BThe defendant is immediately subjected to criminal arrest and imprisonment for contempt
• CThe court automatically dismisses the plaintiff's complaint with prejudice
• DThe defendant's real and personal properties are summarily attached by the sheriff

A party declared in default loses standing in court and cannot actively participate in the trial proceedings.

What procedural remedy is available to a defaulted defendant before the trial court renders judgment?

• AFile a verified motion under oath to set aside the order of default showing FAME and a meritorious defense
• BSubmit an immediate petition for certiorari directly to the Supreme Court En Banc
• CRequest the Department of Justice to conduct a preliminary investigation against plaintiff
• DAppeal the order of default directly to the Court of Appeals via notice of appeal

Before judgment, a defaulted defendant may move to set aside the order of default by showing FAME and a meritorious defense.

How many days is the standard reglementary period for a defendant to file an answer after service of summons?

• AThirty calendar days from service of summons
• BFifteen calendar days from service of summons
• CSixty calendar days from notarization of complaint
• DTen calendar days from pre-trial conference

Under Rule 11, Section 1 of the Rules of Court, the standard period to file an answer is fifteen days after service of summons.