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2015-11-27 06:06:48
Real Estate

Real Estate
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  1. Before this date, licensing and supervision of real estate practice was under the Department of Trade and Industry
    June 29, 2009
  2. Basis RESA Law covering salespersons, brokers, appraisers, consultants and realty service organizations
    Ministry Order No. 39, Series of 1995
  3. Legislative Intent of RESA
    The state recognizes role of real estate service practitioners in nation-buildingThere is a need to develop through regulation and supervision technically competent, responsible and respected real estate professionalsThe standards for real estate practice should be globally competitive that will promote the growth of real estate industry
  4. When was RESA passed?
    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.
  5. When was RESA approved into law?
    Date: June 29, 2009
  6. RESA Law was approved by the following?
    • (Sgd.) PROSPERO C. NOGRALES - Speaker of the House of Representatives 
    • (Sgd.)JUAN PONCE ENRILE - President of the Senate  
    • (Sgd.)GLORIA MACAPAGAL-ARROYO - President of the Philippines
  7. What is the date of effectivity of RESA?
    This Act shall take effect fifteen (15) days following its publication in theOfficial Gazette or in a major daily newspaper of general circulation in the Philippines.RESA was published in Philippine Daily Inquirer on July 15, 2009. Hence, it took effect on August 1, 2009, or fifteen (15) days following its publication.
  8. When was the IRRs of RESA signed, and what is the date of its effectivity?
    The IRRs of RESA, otherwise known as PREBRES Resolution No. 2, Series of 2010, was signed last July 21, 2010, and was published in both Philippine Star and Philippine Daily Inquirer on July 24, 2010. Hence, the IRRs became effective on August 8, 2010.
  9. Which Section in RESA did the RESPs been enumerated?
    Answer: Section 3(g)
  10. What Constitutes Real Estate Practice? Are there exemptions?
    • Section 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 
    • (b) Any receiver, 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.
  11. In order to practice, all RESPs must pass annual licensure examinations to be administered by the Professional Regulation Commission (PRC). Exception to this rule are _____________.
    real estate salespersons.
  12. Qualifications of Applicants for Examinations
    • Answer: As enumerated in Section 14
    • (a) A citizen of the Philippines;
    • (b) A holder of a relevant bachelor's degree from a 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 at least five (5) years experience as a licensed real estate appraiser.
  13. What is the “Grandfather Clause” under RESA?
    • Answer: As stated in Section 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 a professional identification card without taking the prescribed examination:

    • (a) Those who, on the date of the effectivity of this Act, are already licensed as real estate brokers, real estate appraisers 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 consultants, 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 ten (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.
  14. What is an AIPO?
    AIPO stands for Accredited and Integrated Professional Organization.
  15. Who regulates real estate practice?
    The Professional Regulatory Board of Real Estate Service (PREBRES) regulates real estate practice in the Philippines, under the supervision and administrative control of the Professional Regulation Commission (PRC). It is composed of a chairperson and four (4) members who shall be appointed by the President of the Philippines from the three (3) recommendeeschosen by the PRC from a list of five (5) nominees per position submitted by the AIPO of real estate service practitioners:Provided, That two (2) of the members of the Board shall represent the government assessors and appraisers.
  16. What are the power and functions of PREBRES?
    • (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 professionals;

    • (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 a 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 service 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 organization 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 integrated
    • professional organization and other associations of real estate service
    • practitioners; and

    • (s) Discharge such other powers, duties and functions as the Commission may
    • deem necessary to carry out the provisions of this Act.

    The policies, resolutions and 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.
  17. What are qualifications for PREBRES members?
    • Section 6 of RA 9646 Qualifications of the Chairperson and Members of
    • the Board.

    (a) A citizen and resident of the Philippines;

    (b) A holder of a bachelor’s degree related to real estate;

    • (c) An active licensed practitioner 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.
  18. What are grounds for suspension and removal of PREBRES members?
    Answer : The chairperson or any member 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.
  19. What are the Crimes adjudged to involve moral turpitude?
    • 1) Abduction with consent
    • 2) Bigamy
    • 3) Concubinage
    • 4) Smuggling
    • 5) Rape
    • 6) Estafa through falsification of a document
    • 7) Attempted Bribery
    • 8) Profiteering
    • 9) Robbery
    • 10) Murder, whether consummated or attempted
    • 11) Estafa
    • 12) Theft
    • 13) Illicit Sexual Relations with a Fellow Worker
    • 14) Violation of BP Bldg. 22
    • 15) Falsification of Document
    • 16) Intriguing against Honor
    • 17) Violation of the Anti-Fencing Law
    • 18) Violation of Dangerous Drugs Act of 1972 (Drug-pushing)
    • 19) Perjury
    • 20) Forgery
    • 21) Direct Bribery
    • 22) Frustrated Homicide
  20. What are the crimes that do not involve moral turpitude, namely:
    • 1) Minor transgressions of the law (i.e., conviction for speeding)
    • 2) Illegal recruitment
    • 3) Slight physical injuries and carrying of deadly weapon (Illegal possession of firearms)
    • 4) Indirect Contempt
  21. What is the “Foreign Reciprocity Clause”?
    RA 9646, Section 24. Foreign Reciprocity.-No foreign real estate service practitioner shall be admitted to the licensure examinationor be given a certificate of registrationor 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 specifically allows Filipino real estate service practitioners to practice within its territorial limits on the same basis as citizens of such foreign country.
  22. What is the exception to the “Foreign Reciprocity Clause”?
    RA9646, Section 23.Issuance of Special/Temporary Permit.-Upon application and payment of the required 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.
  23. What are specific provisions regulating the practice of real estate salesperson?
    • Answer: Section 31 of RA 9646For 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 may be required by the Board. Real estate salespersons shall be under the direct supervision and accountability of a 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 salesperson, either directly or indirectly, can negotiate, mediate or transact any real estate transaction for and 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 receive 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.
  24. Is there a “Grandfather Clause” for real estate salespersons?
    Answer: Yes, under Section 31 of the IRR of RESA which states that those salespersons who are registered with the DTI/HLURB or other salespersons who are in the active practice for at least three (3) years, as may be certified by a licensed broker or a real estate developer, prior to the effectivity of R.A. No. 9646 may also be accredited by the Board until 30 July 2011. Provided, further, that in both cases, such Real Estate Salespersons must have undergone at least one hundred twenty (120) training hours in real estate brokerage, and have submitted original NSO certificate of live birth/ birth certificate, NBI clearance, certificate of educational attainment or its equivalent, notarized certificate of training or seminar and notarized certificate of their supervising licensed brokers, as may be required by the Board.
  25. What is corporate practice of real estate service?
    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 may be. 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 salespersons.
    • b) Divisions 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.
  26. What are the penalties for illegal real estate practice?
    Section 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 pesos (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 has 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.
  27. Creation and Composition of 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 organization of real estate service practitioners: Provided, That two (2) of the 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.
  28. Current Chairman and Members
    • EDUARDO G. ONG  Chairman
    • FLORENCIO C. DIÑO  Member
    • RAFAEL M. FAJARDO  Member
  29. How long is the term of office of the Board?
    • 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 chairperson, 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 continuously for more than six (6) years. Any vacancy in the Board shall be filled for the unexpired portion of the term of the member who vacated the position. On the constitution 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.
  30. The following PRC Commissioners are signatories of the IRR of RA 9646:

    RAMON C.F. CUERVO III - Member

    BANSAN C. CHOA - Member

    RAFAEL M. FAJARDO - Member




    CARLOS G. ALMELOR - Secretary, Professional Regulatory Boards

    • NICOLAS P. LAPEÑA, JR - Chairman

    ANTONIO S. ADRIANO - Commissioner

    NILO L. ROSAS - Commissioner