Real Estate Broker Exam Reviewer (Nrea Part1)

Pactum commissorium refers to a stipulation in a mortgage agreement that allows the mortgagee (lender) to take possession of the property as their own if the mortgagor (borrower) defaults on their payments. This means that if the borrower fails to fulfill their obligations, the lender has the right to seize the property.

When a real estate service practitioner resigns or is terminated from their employment, their employer is required to report this to the PRBRES within 15 days from the date of the resignation or termination. This reporting is necessary to keep the PRBRES updated on the employment status of real estate service practitioners and to ensure compliance with regulations and guidelines.

RA 7279, also known as the Urban Development and Housing Act, is the correct answer because it is the law that specifically addresses urban development and housing in the Philippines. This law provides guidelines and regulations for the planning and development of urban areas, as well as the provision of affordable housing for low-income families. It aims to address the housing needs of the urban poor and promote sustainable urban development.

A tie line is an imaginary line that connects a known geographic position to a corner of a titled property. It is used to establish a reference point for surveying and mapping purposes. The tie line helps in accurately determining the boundaries of the property and is an essential component in the metes and bounds method of property description.

Add 4+3+2+1 = 10 , use it as divisor from P 10,000,000.00 to get the amount each part. multiply it with 4.

In a monopolistic market, there is only one provider of a particular product or service, which gives them significant control over the market. This allows the company to enjoy a certain level of monopoly power, as they have the ability to set prices and control the supply of their product or service. In the given scenario, where there is only one telco provider in the country, it suggests that this company has a monopolistic market position, enabling them to dominate the telecommunications industry without facing significant competition.

When the Banko Sentral ng Pilipinas sells more treasury notes and bonds to mop up excess liquidity in the system, it is using monetary policy. Monetary policy refers to the actions taken by the central bank to control the money supply and interest rates in order to stabilize the economy. By selling treasury notes and bonds, the central bank reduces the amount of money available in the system, which helps to control inflation and maintain price stability. This is a tool commonly used by central banks to manage the economy and ensure its proper functioning.

Legitime means that part of the property of the testator or estate that cannot be disposed of because the law has reserved it for compulsory heirs. This means that certain heirs, such as children or a spouse, have a legal right to a portion of the deceased person's property, and this portion cannot be freely given away or disposed of by the testator. It is a protected share of the estate that is guaranteed by law to specific individuals.

One principal borrower and maximum of 2 co-borrower in one loan application

Immobility is a physical characteristic of land because it refers to the fact that land cannot be moved from one location to another. Unlike other assets or goods, land is fixed in its location and cannot be transported or relocated. This immobility is a fundamental feature of land that affects its value and use. It is an important consideration in real estate and urban planning, as the location of land plays a crucial role in its desirability and potential for development.

A holographic will is a will that is entirely written by the hand of the testator himself. It must be dated and signed by the testator himself. However, it does not require the signatures of three witnesses and acknowledgment before a notary public. Therefore, the correct answer is that a holographic will must be signed by 3 witnesses and acknowledged before a notary public.

Extrajudicial settlement of estate refers to the process of settling the estate among the heirs without involving the court. This means that the heirs come to an agreement on how to distribute the assets and liabilities of the deceased person's estate without the need for court intervention. It is a simpler and more informal way of handling the estate, often used when there is no dispute among the heirs and the estate is not complex.

Section 18 of the Urban Development Housing Act (RA 7279) mandates that developers of a subdivision project allocate 20% of the main subdivision for socialized housing. This means that developers are required to set aside a portion of the subdivision for housing units that are affordable to low-income families. This provision aims to address the housing needs of the less privileged members of society and promote inclusive and equitable urban development.

The principle of substitution states that the value of a property is determined by the cost of acquiring an equally desirable substitute property. In other words, a buyer would not pay more for a property when there are other similar properties available at a lower cost. This principle is based on the assumption that rational buyers and sellers will seek the most economical option when making a purchase. By comparing the prices of similar properties, appraisers can estimate the value of a property based on the principle of substitution.

Under IRR of RA 9646, the lawyers of the PRC shall act as prosecutors against illegal practitioners and violators of RA 9646. The PRC, or the Professional Regulation Commission, is the government agency responsible for regulating and supervising the practice of various professions in the Philippines. In the context of RA 9646, which pertains to real estate service practitioners, the lawyers of the PRC are given the authority to prosecute individuals who engage in illegal real estate practices or violate the provisions of the law.

Golf courses can be considered as an example of an Environmentally Critical Project (ECP) because they often require large amounts of water for irrigation, which can put a strain on local water resources. Additionally, the use of pesticides and fertilizers on golf courses can contribute to water pollution and harm local ecosystems. The construction of golf courses may also involve clearing natural vegetation and altering the landscape, potentially leading to habitat loss and disruption of wildlife. Therefore, golf courses can have significant environmental impacts and can be classified as an ECP.

Anticipation refers to the expectation of future benefits or value that can be derived from owning and using real estate. It implies that the value of the property is not solely based on its current state or benefits, but also takes into account the potential future benefits that can be gained from it. This concept recognizes that the value of real estate is influenced by factors such as location, market trends, and potential future developments or improvements. Therefore, the correct answer affirms that the value of real estate is determined by the present worth of all present and future benefits that can be anticipated from owning and using it.

Disposable income refers to the amount of money an individual has available to spend or save after deducting taxes and other mandatory contributions from their salary. It is the income that can be used for discretionary purposes, such as buying goods and services or saving for the future. This term specifically refers to the net take-home pay after subtracting statutory contributions like SSS, Pag-IBIG, Philhealth, and withholding tax. Therefore, the correct answer is Disposable income.

The given color scheme for residential land use includes various colors such as red, blue, yellow, violet, and yellow green. Out of these options, yellow is the correct answer for the standard color scheme for residential land use. This means that yellow is commonly used to represent residential areas on maps, zoning codes, or other land use plans. It is important to have a standardized color scheme for land use to ensure consistency and clarity in urban planning and development.

The period of lease for a lessee who is a Filipino is 99 years. This means that the lessee will have the right to use and occupy the leased property for a period of 99 years. After this period, the lease agreement will expire, and the property will revert back to the lessor. This is a significant period of time that allows the lessee to make long-term plans and investments in the leased property.

This statement suggests that the value of an item production is determined by its impact on the net income of the enterprise. In other words, the worth of an item's production is measured by how much it contributes to the overall profitability of the business. This implies that items that generate more net income are considered to have higher value in this context.

The minimum clear width for the main door under BP 220 is 0.80 meters. This means that the door should have a width of at least 0.80 meters to allow for easy passage and accessibility.

A metropolis refers to a large and densely populated urban area that includes a core city and its surrounding suburbs or satellite communities. These suburbs or satellite communities have physically merged with the core city, resulting in a sprawling metropolitan urban center. A metropolis is typically characterized by its economic, cultural, and political significance, as well as its diverse range of amenities and services.

The correct answer is "Assessed value". The assessed value is the value placed on taxable property by the assessor for ad valorem tax purposes. It is the value used to calculate property taxes and is typically a percentage of the property's market value. The assessed value may be lower than the market value to account for factors such as depreciation or local tax laws.

RA 6552 is the correct answer because it is also known as the Maceda Law of 1972. This law provides protection to buyers of real estate properties who have paid at least two years of installments. It states that if the buyer defaults on their payments, they have the right to receive a grace period and can still recover the total amount they have paid if they have paid at least two years of installments. This law aims to protect buyers from losing their investments in real estate properties.

An easement is a legal right that allows one person to use another person's property for a specific purpose. It is a type of encumbrance that is imposed on an immovable property for the benefit of another immovable property owned by a different person. This means that the owner of the property subject to the easement must allow the owner of the benefiting property to access or use their property in a certain way. This could include rights of way, such as a pathway or driveway, or other specific uses like drainage or utilities.

A closed mortgage refers to a type of mortgage where the borrower is not allowed to pay off the loan before the maturity date without the consent of the lender. This means that the borrower is obligated to make regular payments until the loan reaches its full term. The lender has the authority to decide whether they will accept early payment or not. This type of mortgage provides stability and security for both the borrower and the lender, as it ensures a predictable payment schedule and interest income for the lender.

The standard color scheme for commercial land use is red. This color is commonly associated with energy, excitement, and urgency, making it an ideal choice for commercial areas. Red can attract attention and stimulate customers, which is beneficial for businesses. It is often used for signs, logos, and advertisements in commercial areas to grab people's attention and create a sense of urgency to engage with the business. Additionally, red can also convey a sense of power and confidence, which can be appealing for commercial establishments.

The broker should not terminate salesperson B to avoid an argument. Instead, they should investigate who showed and presented the project to the buyer to determine the official agent. Terminating salesperson B without proper investigation would not be a fair resolution to the dispute and could potentially lead to further conflict.

The green lines in the official seal of the Professional Regulatory Board of Real Estate Service represent the real estate service practitioners. The green lines symbolize the interconnectedness and unity of the various professionals in the real estate industry, such as real estate consultants, appraisers, assessors, brokers, and salespersons. It signifies their collaboration and dedication to upholding professional standards and providing quality service in the real estate sector.

Desert is not an example of an ecosystem because it lacks the necessary components to sustain a diverse range of organisms. Unlike terrestrial, salt water, and freshwater ecosystems, deserts have extremely low rainfall and limited plant life, resulting in a scarcity of food and water sources. This makes it difficult for a variety of organisms to survive and thrive in desert environments.

Dower refers to the part of a man's real estate that his widow inherits for life. It is a legal provision that ensures the widow's financial security after her husband's death. The dower typically includes a portion of the husband's property or assets, such as land or income-producing assets, which the widow can use and benefit from during her lifetime. This provision aims to provide support and stability for the widow, ensuring that she has a place to live and a source of income after her husband's passing.

Scarcity is an example of a determinant of value because when a resource or item is scarce, meaning it is limited in quantity, it becomes more valuable. Scarcity creates a sense of urgency and desire among individuals, leading to increased demand and higher prices. This principle is commonly observed in economics, where rare or limited resources command higher prices in the market due to their scarcity.

The correct answer is 120 sq.m. This means that according to PD 957, the minimum lot size required for single detached open market housing is 120 square meters. This regulation ensures that there is enough space for a standalone house to be built on the lot, providing adequate living space for the residents.

Gentrification refers to the process of renovating and improving a neighborhood, often resulting in an influx of wealthier residents and businesses. This can lead to increased property values, displacement of lower-income residents, and changes in the character of the area. Gentrification is typically associated with the movement of young professionals to the central city, as they seek out urban amenities and proximity to employment opportunities.

RA 10121 is the correct answer because it refers to the Philippine Disaster Risk Reduction and Management Act of 2010. This act was enacted to strengthen the country's capacity for disaster risk reduction and management, and to ensure the protection and welfare of the Filipino people during times of disasters. It provides a comprehensive framework for disaster risk reduction and management, including the establishment of a National Disaster Risk Reduction and Management Council and the integration of disaster risk reduction and management into local development plans.

Real property refers to land and any permanent structures or improvements attached to it. This includes fixtures, which are items that are affixed to the land or property and are considered part of it. The bundle of rights refers to the legal rights associated with owning real property. However, trade fixtures are not considered part of real property. Trade fixtures are items that are attached to the property by a tenant or business owner for the purpose of conducting their trade or business, and they can be removed by the tenant when they vacate the property.

The minimum area allocated for a park and playground is 100 sq.m. This means that the park and playground must have at least 100 sq.m. of space in order to meet the minimum requirements.

A mixed-use development refers to an area that combines different types of land uses, such as residential, commercial, and institutional, within the same vicinity. While residential and institutional land use classifications are mentioned as individual options, the correct answer is "Commercial" because it indicates that the area in question includes a combination of various land uses, making it a mixed-use development.

In a Tacita Reconducta, if the lessee continues occupancy for at least 15 days from the expiration of the lease with the acquiescence of the lessor and without notice to vacate, it is understood that there is an implied new lease contract. This means that if the lessee stays in the property for 15 days after the lease ends, with the lessor's consent and without any notice to vacate, it is assumed that a new lease agreement has been formed.

Within 3 years from the effectivity of RA 9646, all existing and new positions in the national or local government shall be filled only by registered and licensed real estate service practitioners. This means that after 3 years, individuals who are not registered and licensed in the real estate service profession will no longer be eligible to hold these positions. This requirement ensures that those in government positions related to real estate have the necessary knowledge and qualifications to effectively perform their duties.

RA 4726 is the correct answer because it is the specific law that governs condominiums in the Philippines. This law provides regulations and guidelines for the establishment, management, and ownership of condominium units. It covers various aspects such as the creation of condominium corporations, the rights and obligations of unit owners, and the administration and maintenance of common areas. RA 4726 is the most relevant law in relation to condominiums, making it the correct answer.

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A revoked license may be reinstated in 2 years. This means that after a period of 2 years, an individual who had their license revoked can apply to have it reinstated. During this time, they may have to fulfill certain requirements or conditions set by the licensing authority. This period allows the individual to demonstrate their commitment to safe and responsible driving before being granted the privilege to drive again.

RA 7160 is the correct answer because it is commonly known as the Local Government Code of 1991. This law is a comprehensive legislation that provides for the organization, powers, and functions of local government units in the Philippines. It outlines the responsibilities and authority of local government officials, as well as the fiscal and administrative autonomy of local governments. RA 7160 is a crucial piece of legislation that empowers local government units to effectively govern their respective jurisdictions and promote local development.

Arbitrage refers to the process of exploiting price or interest rate differences in different markets to make a profit. It involves buying an asset at a lower price in one market and simultaneously selling it at a higher price in another market. This profit is made by taking advantage of the temporary imbalances in prices or interest rates.

Pine trees and bougainvillea bushes on a property that were planted by the current owner are considered examples of real estate because they are permanently attached to the land and cannot be easily removed without causing damage. Real estate refers to the land and any permanent fixtures or improvements on it, such as buildings, trees, and landscaping. These items are typically included in the sale of the property and are considered part of the real estate.

BP 185 refers to the law on acquisition by a natural born Filipino citizen on residential property. This law specifically deals with the rights and restrictions regarding the ownership of residential properties by Filipino citizens. It outlines the qualifications, limitations, and procedures for acquiring residential properties, ensuring that only natural born Filipino citizens can own such properties.

A tenant generally has the right to terminate a lease agreement with proper notice (usually 30 days). This allows them to avoid the rent increase if they don't wish to pay it.

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Intrinsic value refers to the amount considered based on evaluating facts to be the true or real worth of something. It is the underlying value of an asset, independent of its market price or external factors. Intrinsic value is often used in investment analysis to determine whether an asset is overvalued or undervalued. It takes into account the fundamental characteristics and potential future cash flows of the asset.

Under RA 9904, the dissolution of the board only needs a signed petition of 2/3 of the association members. This means that at least two-thirds of the members must sign the petition in order for the board to be dissolved. This requirement ensures that a significant majority of the association members are in agreement with the decision to dissolve the board, providing a level of consensus and preventing the dissolution from being easily manipulated or forced by a small minority.

In an easement appurtenant, the servient estate refers to the property on which the easement is placed. The easement is a right or privilege granted to the owner of another property, known as the dominant estate, to use a portion of the servient estate for a specific purpose. Therefore, the servient estate is the property that is burdened by the easement and allows the owner of the dominant estate to benefit from it.

Blue is the correct answer because it is commonly associated with institutional land use. Many institutions, such as schools, government buildings, and hospitals, use blue as a primary color in their branding and design. Blue is often chosen because it conveys a sense of trust, professionalism, and stability, which are important qualities for institutions. Additionally, blue is a calming color that can create a welcoming and comfortable environment for visitors and occupants of institutional spaces.

One are is equal to 100 square meters.

The correct answer is 72 sq.m. This is the minimum lot area required for single detached economic housing under B.P. 220. This means that any economic housing project that falls under this category must have a minimum lot area of 72 sq.m. in order to comply with the regulations set by B.P. 220.

Economic rent refers to the potential rental income that a property can generate, taking into consideration the prevailing market rates of nearby properties. It is the amount that a tenant is willing to pay for a property, based on its location, amenities, and demand in the market. Economic rent is determined by the forces of supply and demand and may differ from the contract rent, which is the actual rent agreed upon in a lease agreement. Deterred rent and potential rent are not relevant in this context.

Fiscal policy refers to the government's use of taxation and spending to influence the economy. In this case, the government is using its taxation power to encourage or discourage real estate development. By giving tax incentives to low-cost housing and increasing taxes on luxury condominium purchases, the government is using fiscal policy to shape the real estate market and promote certain types of development.

The standard color scheme for industrial land use is often represented by different colors to indicate specific types of industries or activities. In this case, violet is likely used to represent a particular type of industrial land use. Without further context or information, it is difficult to determine the exact meaning behind the violet color. However, it is common for color schemes to vary depending on local regulations or industry standards, so the use of violet in this context may have a specific significance within a particular region or industry.

The correct answer is based on the gross area of the main subdivision project. This means that the 20% requirement for socialized housing compliance will be calculated based on the total area of the main subdivision project, regardless of whether the area is saleable or not. This ensures that a fair and balanced approach is taken in providing socialized housing within the development, as it takes into account the overall size of the project rather than just the saleable area.

Judicial foreclosure is the correct answer because it is the type of foreclosure that is resorted to when there is no express authority in the mortgage contract to foreclose extra-judicially. In a judicial foreclosure, the mortgagee must file a lawsuit and go through the court system to obtain a foreclosure order. This process allows for the property to be sold at a public auction to satisfy the outstanding debt.

Surplus productivity refers to the remaining income or profit generated by land after all the costs associated with other factors of production, such as labor and capital, have been deducted. This concept suggests that land is the final factor to receive compensation for its contribution to the production process. This explanation aligns with the given statement, which states that land has the last claim to the net income after the costs of other factors of production have been paid.

Avulsion refers to the sudden and rapid removal of land by natural forces such as earthquakes, floods, or landslides. In this scenario, the earthquake caused a portion of the land on the farm to be torn away, which aligns with the definition of avulsion. This term is used specifically when there is a sudden and noticeable change in the boundaries of a property due to the forceful action of nature.

Insula is the correct answer because it refers to a type of building block in ancient Roman cities. The grid pattern mentioned in the question was a common urban design principle used in Roman cities, and the insulae were the individual building blocks within this grid. These insulae typically contained multiple apartments or shops and had an average area of 73 square meters. Therefore, the term "insula" aligns with the given information about the grid pattern and the average area of the building blocks.

A defeasance clause is a provision in a mortgage contract that releases the property from any encumbrance once the mortgaged obligation is completely paid off. This means that once the borrower fulfills their financial obligations, such as repaying the loan in full, the property is no longer subject to the mortgage and any associated liens or claims. The defeasance clause ensures that the borrower has clear ownership of the property once the mortgage is fully satisfied.

Under the minimum design standards of BP 220, the minimum lot area for a Duplex/Single attached for economic housing is 54 sq.m. This means that any duplex or single attached unit intended for economic housing must have a minimum lot area of 54 sq.m. This requirement ensures that there is enough space for the housing unit to be built and for the occupants to have a comfortable living space. A smaller lot area may not meet the minimum standards for economic housing, hence the correct answer is 54 sq.m.

EO 90 is the correct answer because it designates the HLURB (Housing and Land Use Regulatory Board) as the sole regulatory body for housing and land development. EO 90 establishes the HLURB's authority and responsibilities in ensuring the proper planning, development, and regulation of housing and land use in the country. It empowers the HLURB to enforce laws and regulations related to housing and land development, including the National Shelter Program. The other options, PD 957, RA 9653, RA 9700, and EO 209, do not specifically designate HLURB as the sole regulatory body for housing and land development.

Jon Maynard Keynes is considered the founder of modern macroeconomics because he revolutionized the field with his theories and ideas. He emphasized the importance of aggregate demand and the role of government intervention in stabilizing the economy. Keynes believed that during times of economic downturn, the government should increase its spending to stimulate demand and boost employment. His work laid the foundation for macroeconomic policies that are still used today, such as fiscal and monetary measures to manage economic fluctuations. Keynes' ideas had a significant impact on economic theory and policy-making, making him the correct answer for this question.

Thomas Malthus believed that population growth would lead to a decrease in worker wages, higher rents, and prices, ultimately resulting in a lower standard of living. He argued that population growth would outpace the availability of resources, leading to scarcity and economic decline. Malthus believed that this would create a cycle of poverty and hardship for the majority of the population. His theories on population and its impact on economic development were influential in the field of economics and demography.

Unearned increment refers to the increase in the value of real estate without any effort or expense by the owner. This means that the owner has not made any improvements or investments to enhance the property's value, yet it has appreciated over time. This concept highlights the idea that the increase in value is not directly linked to the owner's actions or contributions, but rather to external factors such as market conditions or development in the surrounding area.

The Certificate Authorizing Registration (CAR) has a validity of 1 year from the date of issue. This means that the CAR will remain valid for a period of one year starting from the date it was issued. After this period, the CAR will expire and may need to be renewed.

Gridiron is the correct answer because it refers to a subdivision scheme where the resulting blocks are more or less rectangular in shape. This term is commonly used in urban planning to describe a layout that consists of a grid-like pattern of streets and blocks, creating a more organized and efficient traffic flow. The gridiron pattern is characterized by its straight and perpendicular streets, allowing for easy navigation and accessibility. This type of planning is often found in cities and towns where practicality and functionality are prioritized in the design of the road network.

Under BP 220 IRR, the minimum floor to ceiling height is 2 meters. This means that the distance between the floor and the ceiling of a building must be at least 2 meters. This requirement ensures that there is sufficient vertical space in buildings to provide comfortable living conditions and adequate ventilation. It also helps to prevent overcrowding and promotes the health and safety of occupants.

Thomas Malthus believed that population growth would lead to a decrease in worker wages, higher rents, and prices, ultimately resulting in a lower standard of living. Malthus argued that population growth would outpace the ability of the economy to provide for everyone's needs, leading to scarcity and increased competition for resources. This would then drive down wages and increase the cost of living, making it difficult for the majority of people to maintain a decent standard of living. Malthus' ideas were influential in shaping debates on population growth and its impact on society.

An adverse claim annotation has a life of 30 days. This means that once an adverse claim annotation is made, it will remain valid and active for a period of 30 days. After this time, the annotation will expire and no longer hold any legal significance. It is important to address and resolve any adverse claims within this timeframe to ensure the accuracy and clarity of property ownership records.

The qualified members of the CPE council represent various organizations and institutions. The PRBRES, Academe, and AIPO are all mentioned as representatives, indicating that they are included in the list of qualified members. However, the "Commission" is mentioned separately, suggesting that it is not included as a representative of the CPE council.

Consumers are organisms that primarily obtain their energy by consuming other organisms. They are unable to produce their own food through photosynthesis or chemosynthesis, unlike producers. Decomposers, on the other hand, break down dead organic matter and recycle nutrients back into the ecosystem. While parasites also consume other organisms, they typically rely on a host organism for their survival. Therefore, consumers best fit the description of animals that ingest other organisms.

The term "value" refers to the present worth of future benefits that come from owning real estate. This includes any potential income that can be generated from the property, as well as any other advantages or benefits that may arise from its ownership. Capitalization is a method used to determine the value of an income-producing property, but it is not the actual value itself. Income and effective gross income are related to the financial performance of the property, but they do not encompass the broader concept of value.

The word "centare" is not commonly used in English, but it is a unit of area that is equal to one square meter. Therefore, the correct answer is 1 sq.m.

Jon Maynard Keynes is considered the founder of modern macroeconomics because he revolutionized the field with his theories and ideas. He argued that the government should play an active role in managing the economy, especially during times of recession or depression. Keynes emphasized the importance of aggregate demand and advocated for government intervention through fiscal policies such as increased government spending and tax cuts to stimulate economic growth. His work laid the foundation for the study of macroeconomics as we know it today, focusing on the overall performance and behavior of the economy as a whole.

75 meters by 2-1/2 meters (75 m)x(2.5m) = 187.5 sq.m. x (P 1,500.00 per sq.m.) = P 281, 250.00

A senior mortgage is a type of mortgage that holds a higher priority or claim over another mortgage. This means that in the event of foreclosure or default, the senior mortgage would be paid off first before any other mortgages or liens on the property. This makes it a superior choice for lenders as it provides them with greater security and reduces the risk of not being fully repaid.

The correct answer is 50 years renewable to another 25 years. This means that if the lessee is a foreign investor, they can initially lease the property for 50 years. After the initial lease period, they have the option to renew the lease for another 25 years. This provides the lessee with a total lease period of 75 years, allowing them to maintain long-term control and use of the property.

Market value refers to the current price at which an asset or a product can be bought or sold in the market. It is determined by the forces of supply and demand. Market value is often used to assess the worth or the fair value of an item in the marketplace. It represents the perceived value of the item based on the prevailing market conditions.

Encroachment refers to the act of a non-conforming use displacing an existing use. This can occur when a property owner uses their land in a way that violates zoning regulations or restrictions, thereby encroaching upon the rights or interests of neighboring properties. In this context, the term "encroachment" specifically relates to the displacement of an existing use by a non-conforming use, making it the correct answer.

Fixtures would be considered to be real property because they are items that are permanently attached to the land or property and cannot be easily removed without causing damage. They become part of the property and are therefore considered real property. Leasehold estate, chattels, and trade fixtures are not considered real property as they are either temporary rights to use the property, personal property, or items that can be easily removed without causing damage to the property.

A variance is a device that allows property owners to be exempted from certain zoning regulations when strict adherence to those regulations would cause undue hardship. This means that the property owner would face significant difficulties or disadvantages if they were not granted relief from the zoning ordinance. It is important to note that this exemption is not granted for mere convenience or financial gain, but rather to address specific hardships faced by the property owner.

The correct answer is MC No. 54 because it is the only option that is in line with the guidelines of Sec. 20, RA 7160. The other options (MC No. 64, MC No. 34, MC No. 43) are not mentioned in the given information and therefore cannot be considered as the correct answer.