RESA Law, RA 9646, Real Estate Service Act.,RESA

Dear Fellow  Real Estate Service Practitioner,

 May I present to you the  RESAP RA 9646. For those   who doesn’t have a copy.   Take note of the 4 words in declaration of policy

  •  technically competent
  • Responsible
  • Respected
  • Globally competitive    whose standards of practice and service

S. No. 2963

H. No. 3514

 

Republic of the Philippines

Congress of the Philippines

 Metro manila

Fourteenth Congress

Second Regular Session

 

Begun and held in Metro Manila, on Monday , the twenty-eighth day

of July, two thousand eight

 

[Republic Act 9646]

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 AND FOR

OTHER PURPOSES

 

Be it enacted by the Senate and the House of Representatives

Of the Philippines in Congress assembled :

 

             

                                                                        ARTICLE I.

                                              TITLE, DECLARATION OF POLICY   DEFINITION OF TERMS

 

  1.         SECTION . 1 Title  –  This Act shall be known as the “Real Estate Service Act of the Philippines.”
  2.        
  3.         SEC. 2. Declaration of Policy
  4.        
  5.         The State recognizes the vital role of real estate service practitioner in the social , political , economic
  6.         development and progress of the country by promoting the real estate market ,stimulating economic
  7.         activity and enhancing government income from real property-based transactions. Hence, it shall
  8.         develop and nurture through proper and effective regulation and supervision a corps of technically
  9.         competent, responsible and respected professional real estate service practitioners whose standards 
  10.         of  practice and service shall be globally competitive and will promote the growth of real property
  11.         industry.
  12.                    
  13.         Sec. 3. Definition of Terms – As used in this Act, the following terms shall mean:
  14.         
  15.         (a)   “ Appraiser”      also known as valuer , refer to a person who conducts valuation/appraisal;
  16.          specifically, one who possesses the necessary qualifications, license, ability and experience to execute
  17.          or direct the valuation /appraisal of real  property.
  18.          
  19.         (b)   “Assessor”    refers to an official in the local government unit,who performs  appraisal and
  20.          assessment of real properties , including plants , equipment , and machineries, essentially for
  21.          taxation purposes. This definition also includes assistant assessors.
  22.    
  23.         (c)   “Real estate”      refers to the land and all those items which are attached to the land. It is the
  24.          physical, tangible entity, together with all additions or improvements  on , above or below the  ground.  
  25.   
  26.         (d)   “Real estate development project”      means the development of the land for residential ,
  27.             commercial, industrial , agricultural , institutional  and recreational purposes, or any
  28.             combination of such including ,but not limited to, tourist resort , reclamation projects ,
  29.             building or housing projects, whether for individual or condominium ownership ,memorial
  30.             parks and other of similar nature.
  31.     
  32.         (e)   “Real  estate  developer”   refers to any natural or juridical person engaged in the business of
  33.               developing real estate development project for his/her or its own account and offering them
  34.               for sale or lease.        
  35.  
  36.         (f)    ”Real property ”  includes all the rights, interests and benefits related to the ownership of real  
  37.               estate
  38.               
  39.         (g)  ”Real estate service practitioner ”  shall refer to and consist of the following:
  40.                           
  41.         (1)   Real estate consultant  –  a duly registered and licensed natural person who for a
  42.          professional fee , compensation or other valuable consideration, offers or renders
  43.          professional advice  and judgment on: (i) the acquisition, enhancement, preservation,
  44.          utilization or disposition of lands or improvement thereon; and (ii) the conception, planning,
  45.          management and development of real estate projects;
  46.           
  47.        (2)    Real estate appraiser   –  a duly registered and licensed natural person who, for a
  48.         professional fee, compensation or other valuable consideration, performs or renders, or offers
  49.         to perform services in estimating and arriving at an option of or acts as an expert on real
  50.         estate values, such services of which shall be finally rendered by the preparation of the report
  51.         in acceptable written form.
  52.       
  53.       (3)  Real estate assessor    –   a duly registered and licensed natural person who works in a local
  54.        government unit and performs appraisal and  assessment of real properties, including plants,
  55.        equipment, and machineries essentially for taxation purposes.
  56.       
  57.        (4)    Real estate broker    –   a duly registered and licensed natural person who, for a professional
  58.         fee, commission or other valuable consideration acts as an agent of a party in a real estate
  59.        transaction to offer, advertise, solicit, list, promote, mediate, negotiate or effect the meeting
  60.        of the minds on the sale, purchase, exchange, mortgage, lease or joint venture, or other
  61.        similar transactions on real estate or any interest therein.
  62.   
  63.        (5)   Real estate salesperson   –   a duly accredited natural person who performs service for, and
  64.         in behalf of, a real estate broker who is registered and licensed by the Professional Regulatory 
  65.         Board of Real Estate Service for or in expectation of a share in the commission, professional
  66.         fee, compensation or other valuable consideration.

ARTICLE II.

 

PROFESSIONAL REGULATORY BOARD

OF REAL ESTATE SERVICE

                                 SEC. 4. Creation and Composition of the Board. 

                 There is hereby created a Professional Regulatory Board of Real Estate Service, hereinafter referred to

                as the Board, under the supervision and administrative control of the Professional Regulation

                Commission (PRC), hereinafter referred to as the Commission, composed of a chairperson and four(4)

                members who shall be appointed by the President of the Philippines from the three (3) recommendees

                chosen by the Commission from a list of five (5) nominees per position submitted by the accredited and

                integrated professional organizations of real estate service practitioners: Provided, that two (2)

                members of the Board shall represent the government assessors and appraisers.

                 The first Board shall be organized within six (6) months from the effectivity of this Act.

            

SEC. 5. Powers and Functions of the Board 

The Board is hereby vested the following powers and functions : 

 (a)    Provide comprehensive policy guidelines for the promotion and development of the real  

                estate industry;                             

(b)     Conduct licensure examinations for the practice of the real estate service profession and

 prescribe the appropriate syllabi of the subjects for examination;

(c)      Issue, suspend, revoke or reinstate, after due notice and hearing, certificates of

                registration or professional identification cards for the practice of real estate service;               

(d)     Maintain a comprehensive and updated register of licensed real estate service

                 professional;

 (e)     Monitor the conditions affecting the practice of real estate service and adopt such

 measures as may be proper for the enhancement of the profession and/or the maintenance of

                 high professional, ethical and technical standards;

(f)      Adopt the national Code of Ethics and Responsibilities to be strictly observed by all

licensed real estate service practitioners;             

 (g)      Hear or investigate any violation of this Act, its implementing rules and regulations, and

                the Code of Ethics and Responsibilities for real estate service practitioners and issue subpoena

                and subpoena duces tecum to secure the appearance of witnesses and the production of

                documents in connection therewith;

 (h)    Safeguard and protect legitimate and licensed real estate service practitioners and, in

                 coordination with the accredited and integrated professional organization of real estate

                practitioners, monitor all forms of advertisements, announcements, signboards, billboards,

                pamphlets, brochures and others of similar nature concerning real estate and, where

                necessary, exercise its quasi-judicial and administrative powers to finally and completely eradicate

               the pernicious practices of unauthorized or unlicensed individuals;

 (i)      Prescribe, in cooperation with the Commission on Higher Education (CHED) or the

                concerned state university or college, the essential requirements as to the curricula and

                facilities of schools, colleges or universities seeking permission to open academic courses or

                already offering such courses in real estate service, and to see to it that these requirements,

                including the employment of qualified faculty members, are properly complied with;

               

(j)      Promulgate, administer and enforce rules and regulations necessary in carrying out the

                provisions of this Act;           

(k)      Supervise and regulate the registration, licensure and practice of real estate service in the

                Philippines;

(l)        Assess and fix the rate of reasonable regulatory fees;

(m)     Administer oaths and affirmations;

(n)     Adopt an official seal of the Board;

 (o)     Evaluate periodically the status of real estate service education and profession, and

            recommend and/or adopt measures to upgrade and maintain its high standard;

(p)     Prescribe guidelines and criteria for the Continuing Professional Education (CPE) program

                 for real estate service practitioners in consultation with the accredited and integrated

                 professional organizations of real estate service practitioners;

(q)     Screen, issue and monitor permits to organizations of real estate professionals in the

                 conduct of seminars and accredit such seminars pursuant to the CPE program, as well as the

                 instructors or lecturers therein, for the purpose of upgrading the quality and knowledge of the

                 profession;

(r)       Monitor and supervise the activities of the accredited and intergrated professional

                 organizations and other associations of real estate service practitioners; and

(s)       Discharge such others powers, duties and functions as the Commission may deem necessary

                 to carry out the provision of this Act.

               

                                   The policies, resolutions, rules and regulations issued or promulgated by the Board shall be  

                subject to the review and approval by the Commission. However, the Board’s decisions, resolutions or

                orders  which are not interlocutory, rendered in an administrative case, shall be subject to review by the

                                   Commission only on appeal.

               

SEC. 6. Qualifications of the Chairperson and the Members of the Board

               

              The chairperson and the members of the Board shall, at the time of their appointment, possess the

                following qualifications :              

                     (a)     A  citizen  and resident of the Philippines;

                     (b)     A holder of a bachelors degree related to real estate;

                     (c)     An active licensed practitioners of real estate service for at least ten(10) years prior to

                      his/her appointment;                           

                    (d)     A bona fide  member in good standing of the accredited and integrated professional

                      organization of real estate service practitioners but not an officer or trustee at the time of

                      his/her appointment;

                      (e)    Neither be a member of the faculty of an institute , school , college or university , nor have

                      any pecuniary interest , direct or indirect , in any institution or association where review classes

                      or lectures in preparation for the licensure examination are being offered or conducted; and

                       (f)      Of Good moral  character , and must not have been convicted by final judgment by a

                       competent court of a criminal offense involving moral turpitude.                              

SEC. 7. Term of Office   –    The chairperson and the members of the Board shall hold office for a term of three ( 3 ) years from the date of their appointment and until their successor/s shall have been appointed: Provided , That the members of the  first appointed Board shall hold office for the following terms: one (1) member as chairpersons, to serve for three  (3) years; two (2) members, to serve for two (2) years ; and two (2) members, to serve for one (1) year.

The chairperson and the members of the Board may be reappointed for a second term but in no case shall he/she serve continuosly for more than  six (6) years. Any vacancy in the Board shall be filled for the unexpired portion of the term of the first Board, the chairperson and the members of the Board shall automatically be registered and issued certificates of registration and professional identification cards. Each member of the Board shall take the proper oath of office prior to the assumption of duty.

 

 SEC. 8. Compensation and Allowance of the Chairperson and Members of the Board

The chairperson and the members of the Board shall receive compensation and allowances comparable to the compensation and allowances received by the chairman and the members of existing professional regulatory boards under the Commission, as provided for in the General Appropriation Act.

SEC. 9. Removal of the Chairperson and Members of the Board.

The chairperson or any members of the Board may be suspended or removed by the President of the Philippines. Upon the recommendation of the Commission, for neglect of duty; abuse of power; oppression; incompetence; unprofessional, unethical, immoral or dishonorable conduct; commission or toleration of irregularities in the conduct of examination or tampering of the grades therein, or for any final judgment or conviction of any criminal offense involving moral turpitude.

SEC. 10. Supervision of the Board, Custodian of its Records, Secretariat and Support Services.   

The Board shall be under the general supervision and administrative control of the Commission. All records of the Board, including applications for examination papers and results, minutes of deliberations, administrative and other investigative cases involving real estate service practitioners, shall be kept by the Commission. The Commission shall designate the secretary of the Board and shall provide the secretariat and other support services to implement the provisions of this Act subject to the usual government accounting and auditing rules and regulations.

SEC. 11. Annual Report.   

The Board shall, at the close of each calendar year, submit an annual report to the Commission, giving a detailed account of its proceedings and accomplishments during the year and recommending measures to be adopted with the end-in-view of updating and improving the conditions affecting the practice of real estate service in the Philippine

 

ARTICLE III

LICENSURE EXAMINATION AND REGISTRATION                      

SEC. 12. Licensure Examination.

Every applicant seeking to be registered and licensed as a real estate service practitioner, except a real estate salesperson, shall undergo an examination as provided for in this Act. Examinations for the practice of real estate service in the Philippines shall be given by the Board at least once every year  in such places and dates as the Commission may designate.

SEC. 13. Scope of Examination.

An examination shall be given to the licensure applicants for real estate brokers, real estate appraisers and real estate consultants which shall include, but not limited to, the following:

(a)    For real estate consultants – fundamentals of real estate consulting; standards and ethics;

consulting tools and techniques, which include project feasibility study and investment measurement tools; real estate finance and economics; real estate consulting and investment analyses; consulting for specific engagement, which includes consulting for commercial, industrial, recreation and resort and hotel properties, and consulting for government and corporate and financial institutions; land management system and real property laws; and any other related subjects as may be determined by the Board;

(b)   For real estate appraisers – fundamentals of real estate principles and practices; standards

and ethics; theories and principles in appraisal; human and physical geography; methodology of appraisal approaches; valuation procedures and research; appraisal of machinery and equipment; practical appraisal mathematics; appraisal report writing; real estate finance and economics; case studies; land management system and real property laws; and any other related subjects as may be determined by the Board; and

(c)    For real estate brokers – fundamentals of property ownership; code of ethics and

responsibilities; legal requirements for real estate service practice; real estate brokerage practice; subdivision development; condominium concept; real estate finance and economics; basic principles of ecology; urban and rural land use; planning, development and zoning; legal aspect of sale, mortgage and lease; documentation and registration; real property laws; and any other related subjects as may be determined by the Board.

To confirm with technological and modern developments, the Board may recluster, rearrange, modify, add to or exclude any of the foregoing subjects as may be necessary.

SEC. 14. Qualification of Applicants for Examinations.

In order to be admitted to the licensure examination for real estate service, a candidate shall, at the time of filing his/her application, establish to the satisfaction of the Board that he/she possesses the following  qualifications:

(a)    A citizen of the Philippines;

(b)   A holder of a relevant bachelor’s degree from state university or college, or other educational

institution duly recognized by the CHED: Provided, That as soon as a course leading to a Bachelor’s degree in Real Estate Service is implemented by the CHED, the Board shall make this course a requirement for taking the licensure examination; and

(c)    Of good moral character, and must not have been convicted of any crime involving moral

turpitude: Provided, That an applicant for the licensure examination for real estate consultants must show proof that he/she has at least ten(10) years experience as a licensed real estate broker or an assessor, or as a bank or institutional appraiser or an employed person performing real property valuation, or a t least five(5) years experience as a licensed real estate appraiser.

                All applications for examination shall be filed with the Board which shall assess and approve said applications and issue to the qualified examinees the corresponding permits to take such examination.

                SEC. 15. Ratings in the Examination.

                In order that a candidate may be deemed to have successfully passed the examination, he/she must have obtained an average of at least seventy-five percent (75%) in all subjects, with no rating below fifty percent (50 %) in any subject.

                SEC. 16. Release of the Results of Examination.

                The results of the licensure examination shall be released by the Board within ten(10) days from the last day of the examination.

                SEC. 17. Issuance of the Certificate of Registration and Professional Identification Card.

                 A certificate of registration shall be issued to examinees who pass the licensure examination for real estate service subject to payment of fees prescribed by the Commission. The certificate of registration shall bear the signature of the chairperson of the Commission and the chairperson and the members of the Board, stamped with the official seal of the Commission, indicating that the person named therein is entitled to practice the profession with all the benefits and privileges appurtenant thereto. This certificate of registration shall remain in full force and effect until revoked or suspended in accordance with this Act.

                A professional identification card bearing the registration number, date of issuance and expiry date, duly signed by the chairperson of the Commission, shall likewise be issued to every registrant upon payment of the required fees. The professional identification card shall be renewed every three(3) years and upon satisfying the requirements of the Board such as, but not limited to, attendance in the CPE program.

SEC. 18. Refusal to Register.

The Board shall not register and issue a certificate of registration to any successful examinee who has been convicted by a court of competent jurisdiction of any criminal offense involving moral turpitude or has been found guilty of immoral or dishonorable conduct after investigation by the Board, or has been found to be psychologically unfit.

SEC. 19. Revocation or Suspension of the Certificate of Registration and the Professional Identification Card or Cancellation of Special / Temporary Permit.

                 The Board may, after giving proper notice and hearing to the party concerned, revoke the certificate of registration and the professional identification card, or cancel the special/temporary permit of a real estate service practitioners, or suspend him/her from the practice of the profession on any of the following instances hereunder:

(a)    Procurement of certificate of registration and/or professional identification card , or special/temporary permit by fraud or deceit;

(b)   Allowing an unqualified person to advertise or to practice the profession by using one’s certificate of registration or professional identification card, or special/temporary permit;

(c)    Unprofessional or unethical conduct;

(d)   Malpractice or violation of any of the provisions of this Act, its implementing rules and regulations, and the Code of Ethics and Responsibilities for real estate service practitioners; and

(e)   Engaging in the practice of the profession during the period of one’s suspension.

SEC. 20. Registration Without Examination

Upon application and payment of the required fees, the following shall be registered, and shall be issued by the Board and the Commission a certificate of registration and professional identification card without taking the prescribed examination:

 (a)      Those who, on the date of the effectivity of this Act, are already licensed real estate brokers,

                real estate appraiser or real estate consultants by the Department of Trade and Industry ( DTI )  by virtue  

              of Ministry Order No. 39  as amended: Provided,  That they are in  active practice as real estate brokers,

              real estate appraisers and real estate consultant, and have undertaken relevant CPE, to the satisfaction of

              the Board;

(b)     Assessors and appraisers who, on the date of the effectivity of this Act, hold permanent

Appointments and are performing actual appraisal and assessment functions for the last five (5)  years, 

have passed the Real Property Assessing Officer (RPAO) examination conducted and administered  by the

Civil Service Commission (CSC) in coordination with the Department of Finance  (DOF), and have

undertaken relevant CPE to the satisfaction of the Board; and   

(c)      Assessors and appraisers who, on the date of the effectivity of this Act, hold permanent

appointments and have at least  (10 ) years actual experience in real property appraisal or assessment and

have completed at least one hundred twenty (120) hours of accredited training on real property appraisal

conducted by national or international appraisal organizations or institutions/entities recognized by the

Board and relevant CPE to the satisfaction of the Board.

                Those falling under  categories (b) and (c) shall register with the Board after they shall have

complied with the requirements for registration as real estate appraisers; Provided. That Those seeking to be licensed to a new credential level shall be required to take the pertinent licensure examination.

                Those so exempt under the aforementioned categories shall file their application within  two (2) years from the effectivity of this Act. Provided, That the renewal of the professional identification card is subject to the provisions of Section 17 hereof.     

SEC. 21. Reinstatement ,Reissuance or Replacement of Certificate of Registration, Professional Identification Card and Special / Temporary Permit.

The Board may, after the expiration of two (2)  years from the date of revocation of a certificate of registration and/ or professional identification card, and upon application, compliance with the required CPE units, and for reasons deemed proper and sufficient, reinstate any revoked certificate of registration and reissue a suspended professional identification card and in so doing, may, in its discretion, exempt the applicant from taking another examination.

A new certificate of registration, professional identification card or special/temporary permit may be issued to replace lost, destroyed or mutilated ones, subject to the rules as may be promulgated by the Board.

SEC. 22. Roaster of Real Estate Service Practitioners.  

The Board, in coordination with the integrated professional organization of real estate service practitioners, shall prepare, update and maintain a roster of real estate service practitioners which shall contain the names of all registered real estate service practitioners, their residence and office addresses, license number, dates of registration or issuance of certificates, and other date which the Board may deem pertinent. Copies thereof shall be made available to the public upon request.

SEC. 23. Issuance of Special/Temporary Permit.

Upon application and payment of the request fees and subject to the approval of the Commission, the Board may issue special/temporary permit to real estate service practitioners from foreign countries whose services are urgently needed in the absence or unavailability of local real estate service practitioners for the purpose of promoting or enhancing the practice of the profession in the Philippines.

SEC. 24. Foreign Reciprocity

No foreign real estate service practitioner shall be admitted to the licensure examination or be given a certificate of registration or a professional identification card, or be entitled to any of the privileges under this Act unless the country of which he/she is a citizen specially allows Filipino real estate service practitioners to practice within its territorial limits on the same basis as citizens of such foreign country.

 

ARTICLE IV

 

PRACTICE OF REAL ESTATE SERVICE 

SEC. 25. Oath.

All successful examinees qualified for registration and all qualified applicants for registration without examination as well as accredited salespersons shall be required to take an oath before any member of the Board or any officer of the Commission duly authorized by the Commission to administer oaths prior to entering into the practice of real estate service in the Philippines.

SEC. 26. Professional Indemnity Insurance/Cash or Surety Bond.

All real estate brokers and private real estate appraisers shall, in addition to the oath referred to in the preceding section. Be required to post a professional indemnity insurance/cash or surety bond, renewable every three(3) years, in an amount to be determined by the Board, which in no case shall be less than Twenty thousand Pesos (P20,000.00), without prejudice to the additional requirement of the client.

 SEC. 27. Acts  Constituting the Practice of Real Estate Service.

Any single act or transaction embraced within the provisions of Section 3(g) hereof, as performed by real estate service practitioners, shall constitute an act of engaging in the practice of real estate service.

SEC. 28. Exemptions from the Acts Constituting the Practice of Real Estate Service.

The  provisions of this Act and its rules and regulations shall not apply to the following:

(a)    Any person, natural or juridical, who shall directly perform by himself/herself the acts

mentioned in Section 3 hereof with reference to his/her or its own property, except real estate developers;

(b)   Any receivers, trustee or assignee in bankruptcy or insolvency proceedings;

(c)    Any person acting pursuant to the order of any court of justice;

(d)   Any person who is a duly constituted attorney-in-fact for purposes of sale, mortgage, lease or

exchange, or other similar contracts of real estate, without requiring any form of compensation or remuneration; and

(e)   Public officers in the performance of their official duties and functions, except government

assessors and appraisers.

 

SEC. 29. Prohibition Against the Unauthorized Practice of real Estate Service     

No person shall practice or offer to practice real estate service in the Philippines or offer

himself/herself  as real estate service practitioner, or use the title, word, letter, figure, or any sign tending to convey the impression that one is a real estate service practitioner, or advertise or indicate in any manner whatsoever that one is  qualified to practice the profession, or be appointed as real property appraiser or assessor in any national government entity or local government unit, unless he /she has satisfactorily passed the licensure examination given by the Board, except as otherwise provided in this Act, a holder of a valid certificate of registration, and professional identification card or a valid special/temporary permit duly issued to him/her by the Board and the Commission, and in the case of real estate brokers and private appraisers, they have paid required bond as hereto provided.

       
SEC. 30.  Position of the Government Requiring the Service of Registered and Licensed Real Estate Service Practitioners.

Within three (3) years from the effectivity of  this Act., all existing and new position in the national and local governments, whether career, permanent , temporary or contractual, and primarily requiring the service of any real estate service practitioner, shall be filled only by registered and licensed real estate practitioners.

All incumbent assessors holding permanent appointments shall continue to perform their functions without need for reappointment and without diminution of status, rank and salary grade, and shall enjoy security of tenure. However, they may not be promoted to a higher position until they meet the qualification requirements of that higher position as herein prescribed. Nothing in this Act. shall be construed to reduce any benefit, interest , or right enjoyed by the incumbents at the time of the enactment of this Act. The appointing authority shall exercise his power to appoint the assessor in accordance with the provisions of this Act only when vacancy occurs.

       
  SEC. 31.  Supervision of Real Estate Salespersons

For real estate salespersons, no examination shall be given, but they shall be accredited by the

Board: Provided,  That they have completed at least two (2) years of college and have undergone training and seminars in real estate brokerage, as maybe required by the Board. Real estate salespersons shall be under the direct supervision and accountability of real estate broker. As such, they cannot by themselves be signatories to a written agreement involving  a real estate transaction unless the real estate broker who has direct supervision and accountability over them is also a signatory thereto. No real estate sales person, either directly or indirectly , can negotiate ,mediate or transact any real estate transaction for in behalf of a real estate broker without first securing  an authorized accreditation as real estate salesperson for the real estate broker, as prescribed  by the Board . A real estate broker shall be guilty of violating this Act  for employing  or utilizing the services of a real estate salesperson when he/she has not secured the required accreditation from the Board prior to such employment.

                No salesperson shall be entitled to received or demand a fee, commission or compensation of any kind from any person, other than the duly licensed real estate broker who has direct control and supervision over him, for any service rendered or work done by such salesperson in any real estate transaction.

                No violation of this provision shall be a cause for revocation or suspension of the certificate of registration of the real estate broker unless there was actual knowledge of such violation or the broker retains the benefits, profits or proceeds of a transaction wrongfully  negotiated by the salesperson.       

                SEC. 32.  Corporate Practice of the Real Estate Service

a)      No partnership or corporation shall engage in the business of real estate service unless it is duly registered with the Securities and Exchange Commission (SEC), and the persons authorized to act for the partnership or corporation are all duly registered and licensed real estate brokers, appraisers or consultants, as the case maybe . The partnership or corporation shall regularly submit a list of its real estate service practitioners to the Commission and to the SEC as part of its annual reportorial requirements. There shall at least be one (1)  licensed real estate broker for every twenty (20) accredited broker salespersons.

b)      Division or departments of partnerships and corporations engaged in marketing or selling any real estate development project in the regular course of business must be headed by full-time registered and licensed real estate brokers.

c)       Branch offices of real estate brokers, appraisers or consultants must be manned by a duly licensed real estate broker, appraiser or consultant as the case may be.

In case of resignation or termination from employment of a real estate service practitioner, the

same shall be reported by the employer to the Board within a period not to exceed fifteen(15) days from the date of effectivity of the resignation or termination.

                Subject to the provisions of the Labor Code, a corporation or partnership may hire the services of registered and licensed real estate brokers, appraisers or consultants on commission basis to perform real estate services and the latter shall be deemed independent contractor and not employees of such corporations.

                SEC. 33. Display of License in the Place of Business.

                Every registered and licensed real estate service practitioner shall establish and maintain a principal place of business and such other branch offices as may be necessary and shall conspicuously display therein the original and/or certified true copies of his/her certificate of registration as well as the certificates of registration of all the real estate service practitioner employed in such office.

SEC. 34. Accreditation and Integration of Real Estate Service Associations.

All real estate service associations shall be integrated into one(1) national organization, which shall be

organized by the Board, subject to the approval of the Commission, as the only accredited and integrated professional organization of real estate service practitioners.

A real estate service practitioner duly registered with the Board shall automatically become a member of

the accredited and integrated professional organization of real estate service practitioners, and shall receive the benefits and privileges appurtenant thereto. Membership in the accredited and integrated professional organization of real estate service practitioners shall not be a bar to membership in other associations of real estate practitioners.

SEC. 35. Code of Ethics and Responsibilities for Real Estate Service Practitioners.

The Board shall adopt and promulgate the Code of Ethics and Responsibilities for real estate service

practitioners which shall be prescribed and issued by the accredited and integrated professional organization of real estate service practitioners.

                SEC. 36. Continuing Professional Education (CPE) Program.

                The Board shall develop, prescribe and promulgate guidelines on CPE upon consultation with the accredited and integrated professional organization of real estate service practitioners, affiliated association of real estate service practitioners and other concern sectors, and in accordance with such policies as may have been prescribed by the Board, subject to the approval of the Commission. The Board shall create a CPE Council that shall be composed of a chairperson coming from the Board, a member from the accredited and integrated professional organization of real estate service practitioners and a member from the academe.

                SEC. 37. Enforcement Assistance to the Board.

                The Board shall be assisted by the Commission in carrying out the provisions of this Act and its implementing rules and regulations and other policies. The lawyers of the Commission shall act as prosecutors against illegal practitioners and other violators of this Act and its rules. The duly constituted authorities of the government shall likewise assist the Board and the Commission in enforcing the provisions of this Act and its rules.

SEC. 38. Indication of the Certificate of Registration , Professional Identification

Card/License Number, Privilege Tax Receipt (PTR) Number and Accredited Professional Organization (APO) Number.

ARTICLE V

 

PENAL AND FINAL PROVISIONS

SEC. 39. Penal Provisions.

Any violation of this Act, including violations of implementing rules and regulations, shall be meted the

penalty of a fine of not less than One hundred thousand (P100,000.00) or imprisonment of not less than two (2) years, or both such fine and imprisonment upon the discretion of the court.  In case the violation is committed by an unlicensed real estate service practitioner, the penalty shall be double the  aforesaid fine and imprisonment.

In case the violation is committed, by a partnership, corporation, association or any other juridical person.

The partner, president director or manager who was committed or consented to or knowingly tolerated such violation shall be held directly liable and responsible for the acts as principal or as a co-principal with the other participants, if any.

SEC. 40. Appropriations.

The chairperson of the Professional Regulation Commission shall immediately include in the Commission’s

program the implementation of this Act, the funding of which shall be included in the annual General Appropriations Act and thereafter.

SEC. 41. Transitory Provision.

Within Ninety (90) days from the effectivity of this Act, the DTI – Bureau of Trade  Regulation and Consumer

Protection(BTRCP) shall transfer all pertinent records, documents and other materials to the Professional Regulatory Board of Real Estate Service.

SEC. 42. Implementing Rules and Regulations.

Within six (6) months after the effectivity of this Act, the Commission, together with the Board and the

accredited and integrated professional organization of real estate service practitioners, the Department of Finance, and the CHED, shall prepare the necessary rules and regulations, including the Code of Ethics and Responsibilities for real estate service practitioners, needed to implement the provisions of this Act.

SEC. 43. Separability Clause.

If any clause, sentence, paragraph or part of this Act shall be declared unconstitutional or valid,

such judgment shall not affect, invalidate or impair any other part of this Act.

SEC. 44. Repealing Clause

(a)    Sections 3(e) and (ee) of Act No.2728, as amended by Act No 3715 and Act No.3969, Section 472 and 473 of the local Government Code of 1991 (Republic Act No.7160), and pertinent provisions of the Civil Service Law are hereby modified accordingly.

(b)   All laws, decrees, executive orders, department or memorandum orders and other administrative issuances or parts thereof which are inconsistent with the provisions of this Act are hereby modified, superseded or repealed accordingly.

SEC. 45. Effectivity 

This Act shall take effect fifteen (15) days following its publication in the Official Gazette or in a major daily newspaper of general circulation in the Philippines.

 Approved.

 

 

               PROSPERO C. NOGRALES                                                           JUAN PONCE ENRILE

                 Speaker of the House                                                                          President of the Senate

                    Of Representatives

 

This Act which is a consolidation of Senate Bill No.2963 and House Bill No. 3514 was finally passed by the Senate and the House of Representatives on May 12, 2009

 

            MARILYN B. BARUA-RAP                                                           EMMA LIRIO-REYES

               Secretary General                                                                                Secretary of the Senate

    House of the Representatives

 

 

                  Approved:     JUN 29 2009

 

 

 

GLORIA MACAPAGAL-ARROYO

President of the Philippines

 

 

 

Rommel R. Dominguez

REBAP Makati License no. 19148

Real Estate Broker Association of the Philippines

 

About these ads

7 thoughts on “RESA Law, RA 9646, Real Estate Service Act.,RESA

  1. 1. When is the next realtor’s board exam ? Are there localized review centers like here in Iloilo City or is it possible to send somebody if we come up with a number of participants ?

    2. What’s the new procedure in renewing licences of existing realtor’s that were affected by RESA law ? Any light on this ?

  2. Good day I was luck to approach your subject in yahoo
    your subject is exceptional
    I obtain much in your theme really thank your very much
    btw the theme of you site is really quality
    where can find it

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s