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RESA Senate Final Version
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CONGRESS OF THE PHILIPPINES

fourteenth congress

Second Regular Session

SENATE S. No. 2963

(In Substitution of Senate Bill Nos. 1298,1644, 1656, and taking into consideration HBN 3514)

 

Prepared By The Committees on Civil Service And Government Reorganization, Urban Planning, Housing And Resettlement And Finance With Senators Santiago, Blazon, Trillanes IV, Lacson, Escudero, Zubiri and Gordon As Authors thereof

 

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 House of Representatives of the Philippines in Congress assembled:

ARTICLE I

TITLE, DECLARATION OF POLICY AND DEFINITION OF TERMS

SEC. 1. Title. - This Act shall be known as the "Real Estate Service Act of the Philippines".

SEC. 2. Declaration of Policy. - The State recognizes   the   vital   role   of  real   estate   service practitioners   in   the   social,   political,   economic development and progress of the country by promoting the real estate market, stimulating economic activity and enhancing government income from real property-based transactions. Hence, it shall develop and nurture through proper and effective regulation and supervision a  corps  of technically  competent,  responsible  and 15 respected professional real estate service practitioners whose standards of practice and service shall be globally competitive and will promote the growth of the real property industry.


SEC. 3. Definition of Terms. -  As used in this Act, the following terms shall mean:

  1. "Appraiser" also known as valuer, refers to a person who conducts valuation/appraisal; specifically, one who possesses the necessary qualifications, license, ability and experience to execute or direct the valuation/appraisal of real property;

  2.  "Assessor" refers to a person in the local government   unit,   who   performs   appraisal   and assessment   of   real   properties,   including   plants, equipment, and machineries, essentially for taxation purposes.   This   definition   also   includes   assistant assessors;

  3.  "Real estate" refers to the land and all those items which are attached to the land. It is the physical, tangible entity,  together with  all the  additions or improvements on, above or below the ground;

  4. "Real estate development project" means the  development   of   land   for   residential,   commercial, industrial,  agricultural,  institutional or recreational purposes, or any combination of such including, but not limited to, tourist resorts, reclamation projects, building or housing  projects,   whether   for   individual   or condominium ownership, memorial parks and others of similar nature;

  5. "Real estate developer" refers to any natural or juridical person engaged in the business of developing real estate development project for his/her or its own account and offering them for sale or lease;

  6. 'Heal property" includes all the rights, interests and benefits related to the ownership of real estate;

  7. "Real estate service practitioners" shall refer to and consist of the following:

    1. Real estate consultant - a duly registered and licensed natural person who, for a professional fee, compensation or other valuable consideration, offers or renders professional advice and judgment on:

(i) the acquisition, enhancement, preservation, utilization or disposition of lands or improvements thereon; and

 (ii) the conception, planning, management and development of re al estate projects;

    1.  Real estate appraiser - a duly registered and licensed natural person who, for a professional fee, compensation or other valuable consideration, performs or renders, or offers to perform services in estimating and arriving at an opinion of or acts as an expert on real estate values, such services of which shall be finally rendered by the preparation of the report in acceptable written form;
    2.  Real estate assessor - a duly registered and licensed natural person who works in a local government unit and performs appraisal and assessment of real  properties,  including plants,  equipment,  and machineries, essentially for taxation purposes;

    3. Real estate broker - a duly registered and  licensed natural person who, for a professional fee, commission or other valuable consideration, 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 on the sale, purchase, exchange, mortgage, lease or joint venture, or other similar transactions on real estate or any interest therein; and

    4. Real estate salesperson - a duly accredited natural person who performs service for, and in behalf of, a real estate broker who is registered and licensed by the Professional Regulatory Board of Real Estate Service for or in expectation of a share in the commission, professional   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  organization of real  estate  service practitioners: Provided, That the four (4)  two (2) of the members shall each represent the real estate consultants, the real estate appraisers, the real estate assessors, and the real estate brokers. of the proposed 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. 6. Powers and Functions of the Board. - The Board is hereby vested the following powers and functions:

  1. Provide comprehensive policy guidelines for the promotion and development of the real estate industry;

  2. Conduct   licensure   examinations  for  the practice  of the  real estate service profession and prescribe the appropriate syllabi of the subjects for examination;

  3. Issue, suspend, revoke or reinstate, after due notice  and hearing,  certificates of registration  or professional identification cards for the practice of real estate service;

  4. Maintain  a  comprehensive  and  updated register of licensed real estate service professionals;

  5. 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;

  6.  Adopt   a   national   Code   of Ethics   and Responsibilities to be strictly observed by all licensed real estate service practitioners;

  7. 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;

  8. 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;

  9. Prescribe,     in    cooperation     with     the Commission on  Higher Education  (CEDED)  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;
  10. Promulgate, administer and enforce rules and regulations necessary in carrying out the provisions of this Act;

  11. Supervise  and  regulate  the  registration, licensure and practice of real estate service in the Philippines;

  12. Assess  and   fix  the  rate   of reasonable  regulatory fees

  13. Administer oaths and affirmations;

  14. Adopt an official seal of the Board;

  15. Evaluate periodically the status of real estate service education and profession, and recommend and/or adopt measures to upgrade and maintain its high standard;

  16. 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;

  17. 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;

  18. Monitor and supervise the activities of the accredited and integrated professional organizations and other associations of real estate service practitioners; and

  19. 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.

SEC. 6. Qualifications of the Chairperson and Members of the Board. - The chairperson and the members of the Board shall, at the time of their appointment, possess the following qualifications:

  1. A citizen and resident of the Philippines;
  2. A holder of a bachelor's degree related to real estate;
  3. An active licensed practitioner of real estate service for at least ten (10) years prior to his/her appointment;
  4. 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;
  5. 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
  6. Of good moral character, and must not have been convicted b}r 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 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.

 

SEC. 8. Compensation and Allowances 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 Appropriations Act.

 

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

 

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, 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 upgrading and improving the conditions affecting the practice of real estate service in the Philippines.

 

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:

  1. 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 include 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;

  2.  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

  3. 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 conform 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:

 

  1. A citizen of the Philippines;
  2.  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 shad make this course a requirement for taking the licensure examination; and
  3. 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.

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 he 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 or temporary permit of a real estate service practitioner, or suspend him/her from the practice of the profession for any unprofessional or unethical conduct, 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. on any of the following instances hereunder:

  1. Procurement of a certificate of registration and/or  professional  identification  card,   or  special temporary permit by fraud or deceit;
  2. 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;
  3. Unprofessional or unethical conduct;
  4. 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
  5. 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 a professional identification card without taking the prescribed examination:

  1. 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;
  2.  Assessors and appraisers who, on the date of the effectivity of this Act, hold permanent appointment 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
  3. Assessors and appraisers who, on the date of the effectivity of this Act, hold permanent appointment 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 institution/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 assessors or 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, 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 he promulgated by the Board.

 

SEC.  22. Roster 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 data which the Board may deem pertinent. Copies thereof shall be made available to the public upon request.

 

SEC. 23. Issuance of Special or Temporary Permit. - Upon application and payment of the required fees and, subject to the approval of the Commission, the Board may issue special or 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 specifically 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.  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 bond, renewable every three (3) years, in an amount to be determined by the Board, which in no case shall be  less  than One  hundred  thousand  pesos (P100,000.00)   nor  more  than   One   million pesos (P1000.000.00).

 

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:

  1.  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;
  2.  Any   receiver,   trustee   or   assignee   in bankruptcy or insolvency proceedings;
  3. Any person acting pursuant to the order of any court of justice;
  4.  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
  5. 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, and is 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 the required bond as hereto provided.

 

SEC. 30. Positions in Government Requiring the Services of Registered and Licensed Real Estate Service Practitioners. - Within three (3) years from the effectivity of this Act, all existing and new  positions in the national and local governments, whether career, permanent, temporary or contractual, and primarily requiring  the   services  of  any   real  estate  service practitioner,  shall be filled only by registered  and licensed real estate service 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 a 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 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 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. - 

  1. 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.
  2. 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.
  3. 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 contractors 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 tile certificates of registration of all tile real estate service practitioners employed in such office.

 

SEC. 34. Accreditation and Integration of Real Estate Service Practitioners. - All real estate service practitioners shall be integrated into four (4) professional one national organization, one each for real estate consultants, real estate appraisers, real estate assessors, and real estate brokers, which shall be recognized by the Board, subject to the approval of the Commission, as the only accredited and integrated professional organization for each of real estate service practitioners. A real estate service practitioner duly registered with the Board shall automatically become a member of his/her respected 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 service practitioners.

 

SEC. 35. Coda 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 organizations 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 concerned 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 organizations 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.   - Seal estate service practitioners shall   be   required   to   indicate   the   certificate   of registration,   professional   identification   card,   PTR number, and APO receipt number, and the date of issuance and the duration of validity on the documents he/she signs, uses or issues in connection with the practice of his/her profession.

 

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 pesos (P100,000.00) but not more than One million pesos (Pl,000,000.00) or imprisonment of not less than six (6) months but not more  than  six  (6) 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.

 

SEC. 40. Appropriations. — The chairperson of the    Professional    Regulation    Commission    shall immediately include in the Commission's programs 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 organizations 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 invalid, such judgment shall not affect, invalidate or impair any other part of this Act. 

SEC.  44.  Repealing Clause, -

  1. Sections 3 (e) and (ee) of Act No. 2728, as amended by Act No. 3715 and Act No. 3969, Sections 472 and 473 of the Local Government Code of 1991 (RA 7160), and pertinent provisions of the Civil Service Law are hereby modified accordingly.
  2. 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.

 

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