real estate service act of the philippines

7/27/2019 Real Estate Service Act of the Philippines

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R E S AT H E R E A L E S T A T E S E R V I C E A C T

An Act Regulating the Practice of Real Estate Service in the Philippines, Creating

for the Purpose a Professional Regulatory Board of Real Estate Service,

Appropriating Funds Therefor & for Other Purposes

R E P U B L I C A C T N O . 9 6 4 6


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T H E R E A L E S T A T E S E R V I C E ACT ( RE S A )

Now R.A. No. 9646

Signed 29 Jun 09 Published 15 Jul 09

(Philippine Daily Inquirer)

Regulatory law on the

practice of real estate

service in the Philippines

Professionalizes &

regulates practitioners

through the Professional

Regulation Commission:

Real estate consultants Real estate appraisers

(including LGU assessors &NGA

appraisers)

Brokers

9 6 4 6


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T H E R E S A L A W

overview


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RA TI O NA L E

Real property is a vital driver of the economy

Professionalization & regulation essential for Stimulating the land market

Encouraging investments

Revenue generation by the government

Sound decision making of property owners

Better policy making & governance

Protection of public, etc.

Real estate practice is a profession with multi-

disciplinary body of knowledge

Gearing towards international best practices


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W HY P R O F E S S I O N A L I Z E L G U A SSE SSO R S ?

They are appraisers who also perform assessment

function essentially for LGU taxation purposes

A very large group, larger than private appraisers:

physical presence all over the country outputs are

complex, voluminous & varied

Perform sensitive functions within a unique & highly

politicized environment

Output is crucial & critical to the viability of LGUs asthey directly affect local revenues & national income

Professionalization will provide them continuing

technical education & training geared to globalstandards


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S T A T E P O L I C Y (ARTICLE I. SEC. 2)

1. State recognizes vital role of the profession inthe social, political, economic development and

progress of the country

2. State to develop and nurture a corps of

technically competent, responsible andrespected professionals through proper andeffective regulation and supervision

3. State to promote standards of practice and

service to be globally competitive and thegrowth of the real estate industry


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T H E R E S A L A W

salient provisions


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ACTS CONSTITUTING REAL ESTATE SERVICE PRACTICE

Render professional advice & judgment on the acquisition, enhancement,

preservation, utilization or disposition of lands or improvements thereon, &the conception, planning, management & development of real estate projectsCONSULTANT

Performs or renders, or offers to perform services in estimating & arriving atan opinion of or acts as an expert on real estate values, such services of whichshall be finally rendered by the preparation of the report in acceptable writtenform

APPRAISER

Performs appraisal & assessment of real properties, including plants,equipment, & machineries, essentially for taxation purposesASSESSOR

Acts as an agent of a party in a real estate transaction to offer, advertise,solicit, list, promote, mediate, negotiate or effect the meeting of the minds onthe sale, purchase, exchange, mortgage, lease or joint venture, or other

similar transactions on real estate or any interest therein

BROKER

Performs service for, & in behalf of, a real estate broker for or in expectation ofa share in the commission, professional fee, compensation, or other valuableconsideration

SALES PERSON

- ARTICLE

I. SEC

. 3G


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T H E P R O F E SSIO NA L B O A R D

Board Creation/Composition (Sec. 4)

to be organized within 6 mos.

Appointment by the President from 3

recommendees chosen by PRC

2 members shall represent the govt.

assessor & appraisers

Term of Office (Sec. 7) 3 years each; re-appointment not to

exceed 6 consecutive years

First Board: Chairman: 3 years; First 2 members: 2years; 2 other members: 1 year

Compensation /Allowances (Sec. 8)

based on existing rates of other Boards

Suspension/Removal from the Board(Sec. 9) by the President, upon PRC recommendation

- for neglect of duty, abuse of power, oppression,

incompetence, etc., or for conviction of any criminal

offense involving moral turpitude.

Board to submit annual report to PRC

detailing all accomplishment(Sec. 11)

PRC to supervise the Board and provide

secretariat and enforcement assistance(Sec. 10 & Sec. 37)


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KEYPOWERS & FUNCTIONS OF THE BOARD (ARTICLE II. SEC. 5)

Policy guidance

Licensure examinations; prescription of appropriate syllabi

Issuance, suspension, revocation or reinstatement of

certificates of registration or PRC ID

Monitor and enhance the practice of the profession; maintain

high professional, ethical/technical standards Adopts a Code of Ethics & Responsibilities (Sec. 35)

Hear and investigate violations: quasi-judicial & admin powers

Safeguard & protect legitimate practitioners

Prescribe academic requirements for course offering; CPEprogram; accredits seminars, lecturers, etc.

Supervise APO & related associations


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QUALIFICATIONS OF CHAIR & BOARD MEMBERS (ARTICLE II. SEC. 6)

Filipino citizen; resident of the Philippines

Bachelors Degree related to real estate

active practice for at least 10 years prior to

appointment

bona fide member of the APO but not an officer ortrustee at the time of appointment

neither a faculty member of any academic institution

nor have any pecuniary interest in any group where

review classes or lectures are offered or conducted

good moral character, not convicted of a criminal

offense


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QUALIFICATIONS OFAPPLICANTS FOR EXAM (ARTICLE III. SEC. 14)

Filipino citizenship

Relevant bachelors degree (a Bachelor's degree in RealEstate Service shall be a requirement upon its implementation by

the CHED)

Of good moral character & must not have been

convicted of any crime involving moral turpitude For real estate consultants:

At least 10 years experience in either capacity as a licensed

real estate broker, an assessor, or as a bank or institutional

appraiser or an employed person performing RP valuation

At least 5 years experience as an appraiser


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CERTIFICATE OF REGISTRATION & PRC ID (ARTICLE II. SEC. 17)

PRC ID renewable every 3 years

satisfy Board requirements, i.e. CPE

to be displayed in the place of business (ARTICLE IV. SEC. 33)

Practitioners to indicate license information (APO/PTR numbers/date of

issuance) on documents he/she signs (ARTICLE III. SEC. 38)

Photo

TITLE OF PROFESSION

Photo

N A M E O F P R O F E S S I O N A L

T I T L E O F P R O F E S S I O N

N A M E O F P R O F E S S I O N A L B O A R D


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REVOCATION OF PRC ID & CERTIFICATE (ARTICLE II. SEC. 19)

fraudulent/deceitful procurement of a certificate of

registration &/or PRC ID, or special temporary permit

advertisement of unqualified person using somebody

elses certificate, PRC ID, or special temporary permit

unprofessional or unethical conduct

malpractice or violation of RESA, its IRR, & the Code of

Ethics & Responsibilities

Practice of profession while under suspension


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REGISTRATION WITHOUT EXAMINATION (ARTICLE II. SEC. 20)

Application shall be within 2 years from the effectivity of RESA

Renewal of the PRC ID is subject to the provisions of Section 17

B & C shall comply w/ the requirements for registration as RE

appraisers

Those seeking to be licensed to a new credential level shall be

required to take the pertinent licensure examination

Those already licensed as real estate brokers, real estate appraisers or

real estate consultants by the DTI under Ministry Order No. 39 They are in active practice as brokers, appraisers & consultants

Have undertaken relevant CPE to the satisfaction of the Board

A

Assessors & appraisers who hold permanent appointment & are

performing actual appraisal & assessment functions for the last 5 years

Passed the RPAO Examination Have undertaken relevant CPE to the satisfaction of the Board

B

Assessors & appraisers who hold permanent appointment & have at

least 10 years experience in real property appraisal or assessment Have completed 120 hours of accredited training

Have undertaken relevant CPE to the satisfaction of the Board

C


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FOREIGN PRACTITIONERS

Foreign Reciprocity Principle (ARTICLE III. SEC. 24)

Foreign practitioners, whose governments admit

Filipinos to practice the profession in their

countries, will be allowed to practice the

profession in the Philippines

Special/Temporary Permit(ARTICLE III. SEC. 23)

Applicable for foreign practitioners whose

services are urgently needed in the absence orunavailability of local practitioners


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T H E R E S A L A W

practice of real

estate service


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OTHER REQUIREMENTS TO PRACTICE PROFESSION (ARTICLE IV)

OATH (ARTICLE IV, SEC. 25)

Applies to all qualified examinees, applicantsfor registration without examination, and

accredited salespersons

PROFESSIONAL INDEMNITYINSURANCE/BOND (ARTICLE IV, SEC. 26)

Applicable only to private sector practitioners

-Additional requirement for licensure/renewal

Amount to be determined by the Board,but not less than Php20,000.00

Client may require additional bond/insurance

Renewable every 3 years


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E X E M P T I O N S F R O M T H E P R A C T I C E (ARTICLE IV. SEC. 28)

any person who shall directly perform the acts of real

estate service upon own property, except real estatedevelopers

receivers, trustees or assignees in bankruptcy/insolvency

proceedings

persons acting pursuant to the order of the court

attorney-in-fact on sale, mortgage, lease or exchange, or

other similar acts on real estate, without compensation

or remuneration in any form

public officers while performing their official duties &

functions, except government assessors & appraisers


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PROHIBITIONS AGAINST UNAUTHORIZED PRACTICE

P R I V A T E P R A C T I C E

No license + bond = no practice/advertisement ofprofession (ARTICLE IV. SEC. 29)

G O V E R N M E N T P R A C T I C E

No license = no appointment as real property appraiser orassessor in any NG entity or LGU (ARTICLE IV. SEC. 29)

Within 3 years, all existing & new NG & LGU positions, whether

career, permanent, temporary or contractual shall be filled

only by registered & licensed practitioners (SEC. 30)

Incumbent assessors/assistant assessors with permanentappointments shall continue to perform functions without

reappointment, diminution of status, rank & salary grade, &

shall enjoy security of tenure. Not be promoted to a higherposition until they meet the qualification requirements of the higher

position.


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S U P E R V I S I O N O F SA L E S P E R SO NS (ARTICLE IV. SEC. 31)

accreditation only

2 years college

trainings & seminars in real estate brokerage

direct supervision & accountability brokers

cannot sign transaction documents, co-signed by a

licensed broker

not entitled to receive or demand a fee, commission or

compensation of any kind from any person, other than

the broker


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C O R P O R A TE P R A CTICE (ARTICLE IV. SEC. 32)

SEC registration

Persons acting for the partnership or corporation should all be

duly registered & licensed practitioners

1 Broker for every 20 accredited salespersons

Divisions or departments engaged in marketing or selling any

real estate development project must be headed by full timeregistered & licensed brokers

Branch offices must be manned by licensed practitioners

May hire the services of registered & licensed practitioners on

commission basis as independent contractors & not asemployees


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ACCREDITATION & INTEGRATION (ARTICLE IV. SEC. 34)

All real estate service

associations to beintegrated into 1 national

organization as the only

accredited & integrated

professional organizationof practitioners

Automatic membership to

the integrated organization

Is not a bar to membershipin other associations


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CONTINUING PROFESSIONAL EDUCATION (ARTICLE IV. SEC. 36)

Board will develop,

prescribe, & promulgateCPE program & guidelines

In consultation with the

integrated professionalorganization & other

concerned sectors

CPE council

CPE Council


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T H E R E S A L A W

penal & final

provisions


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P E NA L & F INA L P R O V I S I O N S O F RE S A (ARTICLE V)

Penal Provisions (SEC. 39) Fine - not < Php100,000.00; Imprisonment - < than 2 years

Offense committed by unlicensed practitioner, penalty double fine &imprisonment

Corporate offense: covers those consented to or tolerated the violation

Appropriations for the Board(SEC. 40) Funding requirement of RESA - GAA

Transitory Provision (SEC. 41) DTI-BTRCP to transfer records & documents to PRC w/in 90 days

IRR (SEC. 42) Shall be prepared w/in 6 mos by the Board, APO, DOF & CHED

Repealing Clause (SEC. 44)

Act Nos. 2728, 3715, & 3969 granting DTI the regulation of the practice

RA 7160 (Secs. 472 & 473) and pertinent provisions of CSC law

Effectivity(SEC. 45) Takes effect 15 days after publication in the Official Gazette or in a

major daily newspaper of general circulation


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T H E R E S A L A W

RESA Implementation

Updates


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T H E I N T E R I M A C C R E D I T E D P R O F E S S I O N A L

O R G A NIZ A TIO N ( A P O )

October 22, 2009 -

PRC met with

LAMP-BLGF and the

public and private

sector RESPs

associations for the

organization of the

Federation of Real

Estate Service

Associations

(FRESA)


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F I R S T M E E T I N G O F F R E S A F O R T H E E L E C TI O N O F

O F F I C E R S

(1) technical assistance in the establishment of the interim FRESA; and

(2) support FRESA in the selection of nominees to the Board from the

government and private sectors and for submission to the PRC.


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M E E T I N G W I T H P R I V A T E S E C T O R B U I L D E R S

The Subdivision and Housing Developers Association (SHDA) met with

the Advocacy Team on January 28, 2010 to discuss concerns on RESA


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M E E T I N G W I T H T H E C I V I L S E R V I C E C O M M I S S I O N ( C S C ) O N T H E

A P P L I C A T I O N O F T H E G R A N D F A T H E R C L A U S E

Meeting with CSC Chairman Francisco Duque III on February 11, 2010,

on the implementation of RESA


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T H E R E S A L A W

LAMP Assistance


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TAs for formulation of IRR

TA for development of licensure

examination

Nationwide RESA dissemination

LA M P AS S I S T A N C E O N R E S A I M P L E M E N T A T I O N


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Thank You!

real estate service act of the philippines

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