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Questions and Answers

What is the primary goal of a real estate consultant?

  • To provide free services to clients
  • To acquire, enhance, preserve, utilize, or dispose of real estate
  • To provide objective and unbiased advice to clients (correct)
  • To act as a broker, appraiser, or agent

    • What is a characteristic of professional real estate consulting?

  • Giving considered judgment after careful investigation and deliberation with the client (correct)
  • Providing advice without investigation
  • Selling properties to clients
  • Providing free services to clients

    • What is the basis of a real estate consultant's fee?

  • Contingency-based
  • Commission-based
  • Agreed fee (correct)
  • Hourly rate

    • What is a key distinction between a real estate consultant and a broker, appraiser, or agent?

    <p>The product of their mind, based on their experience and judgment</p> Signup and view all the answers

    What is a characteristic of a real estate consultant's advice?

    <p>It is objective and unbiased</p> Signup and view all the answers

    What is a characteristic of a real estate consultant's report?

    <p>It is written and includes reasoning</p> Signup and view all the answers

    What is a key aspect of a real estate consultant's service?

    <p>Completely detached advice</p> Signup and view all the answers

    How does a real estate consultant approach each client or problem?

    <p>Individualistically</p> Signup and view all the answers

    What is the purpose of a mutually acceptable consultant in a property rental dispute?

    <p>To determine the fair market rent</p> Signup and view all the answers

    Why does a growing law firm need a location analysis?

    <p>To decide on the best office location</p> Signup and view all the answers

    What is the main goal of a location analysis for a distributor of bottled drinking water?

    <p>To find the best location for a distribution center</p> Signup and view all the answers

    Why does an apartment complex owner need a neighborhood analysis?

    <p>To assess the impact of neighborhood changes on the property</p> Signup and view all the answers

    What is the main goal of an evaluation for an income-producing property?

    <p>To assess the risks and cash flow of an investment</p> Signup and view all the answers

    What is the primary concern of a facilities planning project for an industrial company?

    <p>To plan the expansion of an existing plant</p> Signup and view all the answers

    What is a key consideration in a location analysis for a distributor of bottled drinking water?

    <p>Tax structures of each locality</p> Signup and view all the answers

    What is the main purpose of an evaluation for an investor considering an income-producing property?

    <p>To assess the risks and cash flow of an investment</p> Signup and view all the answers

    What is the concern of the owner of a substantial landholding in a distant province?

    <p>To decide whether to sell or hold the property</p> Signup and view all the answers

    A newly formed limited partnership is seeking guidance on acquiring a luxury apartment building. What is their primary concern?

    <p>Converting the building into a residential condominium</p> Signup and view all the answers

    What is the primary concern of a city planning board seeking advice?

    <p>Analyzing the impact of a development</p> Signup and view all the answers

    What is the main issue faced by an apartment development in another city?

    <p>High tenant turnover</p> Signup and view all the answers

    What are the options being considered by the owner of a vacant lot in an urbanizing area?

    <p>Selling the lot, entering into a joint venture, developing the lot, or exchanging it for another property</p> Signup and view all the answers

    What is the concern of the owners of a downtown loft building that has been vacated by its principal tenant?

    <p>Deciding whether to demolish, leave vacant, or rent the building</p> Signup and view all the answers

    What is the primary concern of a bank that requires new quarters?

    <p>Assessing space needs</p> Signup and view all the answers

    What is the main concern of a property owner and a lessee who cannot agree on the rental to be paid over the next ten years of a lease?

    <p>Conflict resolution</p> Signup and view all the answers

    What is the main purpose of the Implementing Rules and Regulations (IRR) of R.A. No. 9646?

    <p>To carry out, administer, and enforce the provisions of R.A. No. 9646</p> Signup and view all the answers

    What is the minimum experience required for an applicant to be eligible for a real estate consultant's license?

    <p>At least ten years of experience as a real estate broker or five years as a real estate appraiser</p> Signup and view all the answers

    What is the purpose of the examination for real estate consultants given by the Professional Regulation Commission (PRC)?

    <p>To ensure that the applicant has the necessary knowledge and skills to be a real estate consultant</p> Signup and view all the answers

    What is the conflict of interest rule for real estate consultants?

    <p>The engagement of a real estate consultant must not be contingent or dependent upon the reporting of pre-determined findings or recommendations</p> Signup and view all the answers

    When must a real estate consultant disclose their interest in a property subject of consultancy?

    <p>Before accepting the consultancy engagement</p> Signup and view all the answers

    What is the role of the Professional Regulation Commission (PRC) in the issuance of the Implementing Rules and Regulations (IRR) of R.A. No. 9646?

    <p>The PRC reviews and approves the IRR before its issuance by the PRBRES</p> Signup and view all the answers

    What is the name of the law that regulates the practice of real estate service in the Philippines?

    <p>R.A. No. 9646</p> Signup and view all the answers

    What is the purpose of the Code of Ethics & Responsibilities under Section 35 of Article IV of R.A. No. 9646?

    <p>To provide a framework for conflict of interest rules for real estate consultants</p> Signup and view all the answers

    What is the primary purpose of the Continuing Professional Education (CPE) program?

    <p>To maintain the high standards and advancement of the real estate profession</p> Signup and view all the answers

    What is the qualification required for a candidate to be admitted to the licensure examination for real estate consultant?

    <p>A citizen of the Philippines and a holder of a relevant bachelor's degree</p> Signup and view all the answers

    Who is responsible for developing and prescribing guidelines on Continuing Professional Education (CPE)?

    <p>The Professional Regulatory Board of Real Estate Service (PRBRES)</p> Signup and view all the answers

    What is the requirement for taking the licensure examination for real estate consultants, as prescribed by the CHED?

    <p>A course leading to a Bachelor's Degree in Real Estate Service</p> Signup and view all the answers

    What is the minimum experience required for an applicant to take the licensure examination for real estate consultants?

    <p>10 years of experience as a licensed real estate broker or an assessor</p> Signup and view all the answers

    Who recommended the syllabus outline for the consulting service practice?

    <p>Realtor Domingo D. de Vera</p> Signup and view all the answers

    Under which provision of the law is the Continuing Professional Education (CPE) program developed and prescribed?

    <p>Section 36 of Article IV</p> Signup and view all the answers

    What is the requirement for an applicant to show proof of, in addition to the educational qualifications, to take the licensure examination for real estate consultants?

    <p>Good moral character and 10 years of experience</p> Signup and view all the answers

    A ______ company has foreclosed on a partially completed residential condominium project.

    <p>guaranty</p> Signup and view all the answers

    The trust department of a small bank is required to dispose of an ______ that includes several large properties.

    <p>estate</p> Signup and view all the answers

    An investor planning the purchase of a large tract is concerned about how the ______ should be developed.

    <p>property</p> Signup and view all the answers

    A small investor has acquired an ______-producing property.

    <p>income</p> Signup and view all the answers

    The owners of a vocational training center wish to convert it to a ______ building.

    <p>medical</p> Signup and view all the answers

    The consultant is asked to provide advice on ______ and alternatives.

    <p>objectives</p> Signup and view all the answers

    The consultant will help the client decide about such ______ as how to develop the property.

    <p>problems</p> Signup and view all the answers

    The consultant will help in selecting the ______, builder, and management.

    <p>architect</p> Signup and view all the answers

    The property owner and lessee seek a _______________ mutually acceptable to help them ascertain the fair market rent.

    <p>consultant</p> Signup and view all the answers

    A growing law firm requires larger offices and seeks a _______________ analysis to determine the best location.

    <p>location</p> Signup and view all the answers

    A distributor of bottled drinking water wants to know where to locate a _______________ center in relation to the total expected market area.

    <p>distribution</p> Signup and view all the answers

    The owner of an apartment complex wants to know whether she should keep or sell the property and whether it should be sold as an apartment complex or converted into _______________ units.

    <p>condominium</p> Signup and view all the answers

    An investor has been offered an income-producing property and wishes to know what risks are involved, what after-tax cash flow is to be expected, and how sound the property is, and how the purchase should be _______________.

    <p>financed</p> Signup and view all the answers

    An industrial company needs to expand a plant and wants to know what it can expect to get for the plant in the market, what it would have to pay for a suitable existing _______________ at another location.

    <p>facility</p> Signup and view all the answers

    An industrial company wants to know how much it would cost to acquire a site and build a new _______________.

    <p>building</p> Signup and view all the answers

    The owner of an apartment complex wants to know whether she should keep or sell the property and what are the advantages and disadvantages of _______________.

    <p>rehabilitation</p> Signup and view all the answers

    Pursuant to Section 42, Article V of RESA, the Professional Regulatory Board of Real Estate Service (PRBRES) after the review and approval by the ______ adopts, issues, promulgates the Implementing Rules and Regulations (IRR) to carry out, administer, and enforce the provisions of R.A.No. 9646.

    <p>Professional Regulation Commission</p> Signup and view all the answers

    Among other qualifications, an applicant for a real estate consultant’s license must have at least ten years experience as a licensed real estate ______ or five years experience as real estate appraiser.

    <p>broker</p> Signup and view all the answers

    The ______ for Consultant’s License – Among other qualifications, an applicant for a real estate consultant’s license must have at least ten years experience as a licensed real estate broker or five years experience as real estate appraiser, and must pass an examination for real estate consultants given by the Professional Regulation Commission (PRC).

    <p>Qualifications</p> Signup and view all the answers

    PRBRES shall develop, prescribe and promulgate guidelines on ______ upon consultation with the accredited and integrated professional organization.

    <p>CPE</p> Signup and view all the answers

    The Code of Ethics & Responsibilities, the engagement of a real estate consultant must not be contingent or dependent upon reporting of pre-determined findings or recommendations to be made, as provided for in the ______ under Section 35 of Article IV.

    <p>RESA</p> Signup and view all the answers

    When the consultant or a relative within the fourth civil degree owns not less than twenty percent propriety interest in the property subject of consultancy, he must disclose such interest before accepting the consultancy ______.

    <p>engagement</p> Signup and view all the answers

    The primary purpose of the ______ is to maintain the high standards and advancement of the real estate profession and.

    <p>CPE</p> Signup and view all the answers

    A candidate shall, at the time of filing his/her application, establish to the satisfaction of the Board that he/she possesses a ______ degree from a state university or college.

    <p>bachelor’s</p> Signup and view all the answers

    The Implementing Rules and Regulations (IRR) of R.A. No. 9646 were adopted on ______ 2010.

    <p>21 July</p> Signup and view all the answers

    An applicant for a real estate consultant’s license must possess the other qualifications at the time of filing of the application for the ______ examinations.

    <p>licensure</p> Signup and view all the answers

    An applicant for the licensure examination for real estate consultants must show proof that he/she has at least ten (10) years ______ as a licensed real estate broker or an assessor, or as a bank or.

    <p>experience</p> Signup and view all the answers

    The Professional Regulation Commission (PRC) issues the Implementing Rules and Regulations (IRR) to carry out, administer, and enforce the provisions of ______.

    <p>R.A.No. 9646</p> Signup and view all the answers

    The BTRCP, under BUREAU ORDER NO. 03, S. 2006, has prescribed a ______, based on the syllabus outline recommended by Realtor Domingo D.de Vera in 2000.

    <p>syllabus</p> Signup and view all the answers

    The qualified applicant shall be a holder of a relevant ______ degree from a state university or college, or other educational institution duly recognized by the CHED.

    <p>bachelor’s</p> Signup and view all the answers

    A candidate shall be of ______ moral character, and must not have been convicted of any crime involving moral turpitude.

    <p>good</p> Signup and view all the answers

    PRBRES shall develop, prescribe and promulgate guidelines on CPE upon consultation with the ______ and integrated professional organization of real estate service practitioners.

    <p>accredited</p> Signup and view all the answers

    An owner of a substantial landholdings in a distant province wants to know whether to sell or hold the property, the tax consequences of a ______, and how to go about marketing the property if he decides to sell.

    <p>sale</p> Signup and view all the answers

    A newly formed limited partnership is interested in acquiring a luxury apartment building for ______ into a residential condominium.

    <p>conversion</p> Signup and view all the answers

    A city planning board is seeking advice on the ______ of a sale.

    <p>impact</p> Signup and view all the answers

    The owners of a downtown loft building that has been vacated by its principal tenant need to know whether the building should be ______, left vacant, or rented on a temporary basis while redevelopment of the property for other uses is awaited.

    <p>demolished</p> Signup and view all the answers

    A bank requires new ______.

    <p>quarters</p> Signup and view all the answers

    The owner of the vacant lot in an urbanizing area wants to know whether he should sell the lot, enter into a ______ venture for development, develop the lot himself, or exchange all or part of the lot for another property.

    <p>joint</p> Signup and view all the answers

    An apartment development in another city is suffering from high tenant ______.

    <p>turnover</p> Signup and view all the answers

    A property owner and a lessee cannot agree on the rental to be paid over the next ten years of a ______ that contains a series of renewal every two years.

    <p>lease</p> Signup and view all the answers

    A real estate consultant provides advice on the acquisition of a property for an agreed fee.

    <p>True</p> Signup and view all the answers

    A real estate consultant's report is always oral.

    <p>False</p> Signup and view all the answers

    A real estate consultant's service is similar to that of a broker, appraiser, or agent.

    <p>False</p> Signup and view all the answers

    A real estate consultant treats each client and problem in a standardized way.

    <p>False</p> Signup and view all the answers

    The primary goal of real estate consulting is to provide objective advice.

    <p>True</p> Signup and view all the answers

    A real estate consultant's fee is based on the value of the property.

    <p>False</p> Signup and view all the answers

    Real estate consulting is a regulated profession in the Philippines.

    <p>True</p> Signup and view all the answers

    A real estate consultant can provide advice on the development of a property.

    <p>True</p> Signup and view all the answers

    The Professional Regulation Commission (PRC) is responsible for reviewing and approving the Implementing Rules and Regulations (IRR) of R.A. No. 9646.

    <p>True</p> Signup and view all the answers

    An applicant for a real estate consultant's license must have at least five years experience as a licensed real estate broker or ten years experience as a real estate appraiser.

    <p>False</p> Signup and view all the answers

    The Code of Ethics & Responsibilities under Section 35 of Article IV of R.A. No. 9646 provides guidelines for real estate consultants on conflict of interest.

    <p>True</p> Signup and view all the answers

    A real estate consultant must disclose their interest in a property subject of consultancy before accepting the engagement.

    <p>True</p> Signup and view all the answers

    The examination for real estate consultants is given by the Professional Regulatory Board of Real Estate Service (PRBRES).

    <p>False</p> Signup and view all the answers

    The Implementing Rules and Regulations (IRR) of R.A. No. 9646 were adopted on 21 July 2015.

    <p>False</p> Signup and view all the answers

    The Real Estate Service Act of the Philippines is also known as R.A. No. 9654.

    <p>False</p> Signup and view all the answers

    The Professional Regulation Commission (PRC) has no role in the issuance of the Implementing Rules and Regulations (IRR) of R.A. No. 9646.

    <p>False</p> Signup and view all the answers

    The first licensing regulations for real estate appraisers were issued on April 28, 1960.

    <p>False</p> Signup and view all the answers

    According to DOJ Opinion No. 113, Series of 1995, foreigners can be accredited as realty service practitioners.

    <p>False</p> Signup and view all the answers

    The real estate service practitioners were governed by the Department of Trade and Industry until 2009.

    <p>True</p> Signup and view all the answers

    The realty service practice regulations were codified under Ministry Order No. 39 in 1985.

    <p>True</p> Signup and view all the answers

    Commerce Administrative Order No. 60-1 was issued on July 29, 1939.

    <p>False</p> Signup and view all the answers

    The Professional Regulation Commission (PRC) has been governing real estate service practitioners since 1995.

    <p>False</p> Signup and view all the answers

    The realty service practice is not considered a profession.

    <p>False</p> Signup and view all the answers

    The regulations for real estate service practitioners were revised by Trade Administrative Order No. 75-1.

    <p>True</p> Signup and view all the answers

    A real estate consultant's skill is based on their ability to perform a series of precise steps, assignment after assignment.

    <p>False</p> Signup and view all the answers

    A real estate consultant's fee is based on their ability to perform a specific task.

    <p>False</p> Signup and view all the answers

    The principal difference between a real estate specialist and a real estate consultant lies in the outcome of their work.

    <p>True</p> Signup and view all the answers

    Licensing Regulation Act 2728 was passed in 1938 to regulate the real estate practice in the Philippines.

    <p>True</p> Signup and view all the answers

    A real estate consultant's role is limited to facilitating transactions.

    <p>False</p> Signup and view all the answers

    A real estate consultant is a specialist in a particular field, such as brokerage or appraisal.

    <p>False</p> Signup and view all the answers

    The Secretary of Trade and Industry is responsible for promulgating administrative orders to regulate the real estate practice.

    <p>True</p> Signup and view all the answers

    A real estate consultant's advisory service is limited to the real estate service practice and industry.

    <p>True</p> Signup and view all the answers

    A college degree in Real Estate Service is a requirement to take the licensure examination for real estate consultants.

    <p>True</p> Signup and view all the answers

    The PRBRES develops guidelines on CPE upon consultation with the accredited and integrated professional organization of real estate service practitioners only.

    <p>False</p> Signup and view all the answers

    A real estate consultant applicant must have at least five years of experience as a licensed real estate broker or an assessor.

    <p>False</p> Signup and view all the answers

    The syllabus outline for the consulting service practice was recommended by the PRBRES.

    <p>False</p> Signup and view all the answers

    The primary purpose of the CPE is to maintain the high standards of the real estate profession.

    <p>True</p> Signup and view all the answers

    An applicant for the licensure examination for real estate consultants must show proof of at least five years of experience as a licensed real estate broker or an assessor.

    <p>False</p> Signup and view all the answers

    The PRBRES develops guidelines on CPE upon consultation with the PRC only.

    <p>False</p> Signup and view all the answers

    The BTRCP, under Bureau Order No. 03, S. 2006, has prescribed a syllabus based on the syllabus outline recommended by the PRBRES.

    <p>False</p> Signup and view all the answers

    Match the following with the required qualifications for taking the licensure examination for real estate consultants:

    <p>Citizenship = Of the Philippines Educational Background = Relevant Bachelor's Degree Moral Character = Of good moral character Work Experience = At least 10 years as a licensed real estate broker or assessor</p> Signup and view all the answers

    Match the following with the purpose of the Implementing Rules and Regulations (IRR) of R.A. No. 9646:

    <p>Regulation of Real Estate Practice = To implement the provisions of R.A. No. 9646 Licensure Examination = To evaluate the competence of real estate consultants Code of Ethics = To guide the behavior of real estate consultants CPE Program = To maintain the high standards of the real estate profession</p> Signup and view all the answers

    Match the following with the role of the Professional Regulation Commission (PRC) in the issuance of the Implementing Rules and Regulations (IRR) of R.A. No. 9646:

    <p>Approval = To approve the IRR Development = To develop the IRR Prescription = To prescribe the IRR Implementation = To implement the IRR</p> Signup and view all the answers

    Match the following with the name of the law that regulates the practice of real estate service in the Philippines:

    <p>R.A. No. 9646 = The Real Estate Service Act of the Philippines R.A. No. 9262 = Anti-Violence Against Women and Their Children Act of 2004 R.A. No. 9160 = Anti-Money Laundering Act of 2001 R.A. No. 7309 = Magna Carta of Public Health Workers</p> Signup and view all the answers

    Match the following with the purpose of the Code of Ethics & Responsibilities under Section 35 of Article IV of R.A. No. 9646:

    <p>Guiding Behavior = To guide the behavior of real estate consultants Regulating Practice = To regulate the practice of real estate service Licensure Examination = To evaluate the competence of real estate consultants CPE Program = To maintain the high standards of the real estate profession</p> Signup and view all the answers

    Match the following with the primary purpose of the Continuing Professional Education (CPE) program:

    <p>Maintain High Standards = To maintain the high standards and advancement of the real estate profession Regulate Practice = To regulate the practice of real estate service Licensure Examination = To evaluate the competence of real estate consultants Code of Ethics = To guide the behavior of real estate consultants</p> Signup and view all the answers

    Match the following with the requirement for taking the licensure examination for real estate consultants, as prescribed by the CHED:

    <p>College Degree = A course leading to a Bachelor's Degree in Real Estate Service Work Experience = At least 10 years as a licensed real estate broker or assessor Citizenship = Of the Philippines Moral Character = Of good moral character</p> Signup and view all the answers

    Match the following with the minimum experience required for an applicant to take the licensure examination for real estate consultants:

    <p>10 years = As a licensed real estate broker or assessor 5 years = As a real estate appraiser or agent 15 years = As a real estate consultant or broker 20 years = As a real estate developer or investor</p> Signup and view all the answers

    Match the following with the person who recommended the syllabus outline for the consulting service practice:

    <p>Realtor Domingo D. de Vera = In 2000 PRC Chairperson = In 2006 CHED Commissioner = In 2001 BTRCP Director = In 2005</p> Signup and view all the answers

    Match the following with the provision of the law under which the Continuing Professional Education (CPE) program is developed and prescribed:

    <p>Section 36 of Article IV = R.A. No. 9646 Section 35 of Article IV = R.A. No. 9646 Section 30 of Article III = R.A. No. 9646 Section 20 of Article II = R.A. No. 9646</p> Signup and view all the answers

    Study Notes

    Realty Consulting

    • Realty consulting is defined as the provision of advice, guidance, and support in real estate matters, on a fee basis, by qualified professionals who subscribe to a suitable code of ethics.
    • It involves giving competent and objective (disinterested and unbiased) advice and judgment on real estate matters.

    Definition of a Real Estate Consultant

    • A real estate consultant is 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:
      • Acquisition, enhancement, preservation, utilization, or disposition of real estate.
      • Real estate consulting services, including consultancy services, and other allied services.

    Characteristics of Professional Real Estate Consulting

    • Consultation advice and opinion are documented with reasoning in a written report (or supported by an oral report), and for an agreed fee.
    • The consulting service is a separate and distinct undertaking, completely distinguished from that of a broker, appraiser, or agent.
    • Advice means considered judgment arrived at after careful investigation and deliberation with the client, never given off-the-cuff.
    • The consultant treats each client or problem individualistically.

    Specific Consulting Cases

    • Investment advice: advice on whether to sell or hold a property, tax consequences of a sale, and how to market the property if deciding to sell.
    • Conversion services: guidance on the value and physical soundness of a building, tenant policies, amenities, pricing of converted units, and expected investment return.
    • Impact analysis: advice on the impact of a development project on the environment, traffic, and community.
    • Management assistance: assistance in stabilizing tenancy without reducing rents.
    • Sales consulting: advice on whether to sell a property, enter into a joint venture for development, develop the property, or exchange it for another property.
    • Use study: advice on whether to demolish a building, leave it vacant, or rent it temporarily while awaiting redevelopment.
    • Assessing space needs: evaluating the needs of a growing law firm for new offices.
    • Conflict resolution: mutually acceptable help in resolving disputes between a property owner and lessee.
    • Location analysis: analysis of alternative sites for a distribution center, considering delivery times, toll fees, growth patterns, and tax structures.
    • Neighborhood analysis: advice on whether to keep or sell a property, or convert it into condominium units, considering neighborhood changes.
    • Evaluation: evaluation of an income-producing property, including risks, after-tax cash flow, soundness, financing options, and rehabilitation possibilities.
    • Facilities planning: guidance on expanding a plant, including market prospects, acquisition costs, moving costs, and tax implications.

    Licensing Regulations

    • Pursuant to Section 42, Article V of RESA, the Professional Regulatory Board of Real Estate Service (PRBRES) adopts, issues, and promulgates the Implementing Rules and Regulations (IRR) to carry out, administer, and enforce the provisions of R.A. No. 9646.

    Qualifications for Real Estate Consultants

    • An applicant for a real estate consultant's license must have at least ten years of experience as a licensed real estate broker or five years of experience as a real estate appraiser, and must pass an examination for real estate consultants given by the Professional Regulation Commission (PRC).

    Code of Ethics & Responsibilities

    • The engagement of a real estate consultant must not be contingent or dependent upon reporting of pre-determined findings or recommendations to be made.
    • A real estate consultant must disclose any proprietary interest in the property subject of consultancy before accepting the engagement.

    Continuing Professional Education

    • The PRBRES shall develop, prescribe, and promulgate guidelines on Continuing Professional Education (CPE) upon consultation with the accredited and integrated professional organization (AIPO) of real estate service practitioners, affiliated association of real estate service practitioners, and other concerned sectors.

    Education, Experience, Standards of Practice, and Ethics

    • A real estate consultant should have a college degree in Real Estate Service.
    • A candidate for the licensure examination for real estate consultants must possess a bachelor's degree from a state university or college, or other educational institution duly recognized by the CHED.
    • The candidate must be of good moral character and must not have been convicted of any crime involving moral turpitude.

    Realty Consulting Services

    • Realty consulting services answer diversified questions related to real estate problems and issues from the standpoint of any party to a proposed transaction.
    • Consulting services cover a wide range of topics, including marketing, pricing, development, and management of properties.

    Specific Consulting Cases

    • Acquired asset: A guaranty company has foreclosed on a partially completed residential condominium project.
    • Liquidation: A trust department of a small bank is required to dispose of an estate that includes several large properties.
    • Development planning: An investor planning the purchase of a large tract is concerned about how the property should be developed, what use or uses should be contemplated, how development should be timed, how the finished product should be marketed, and the most desirable way to acquire the tract.

    Real Estate Consulting Cases

    • Development assistance: The owners of a vocational training center wish to convert it to a medical building and need help in selecting the architect, builder, and management and in arranging the necessary financing.
    • Investment advice: An owner of a substantial landholding in a distant province wants to know whether to sell or hold the property, the tax consequences of a sale, and how to go about marketing the property if he decides to sell.
    • Conversion services: A newly formed limited partnership is interested in acquiring a luxury apartment building for conversion into a residential condominium and seeks guidance on the value and physical soundness of the building, tenant policies, amenities, pricing of the converted units, and the kind of investment return that can be expected.

    Regulations and Licensing

    • The Real Estate Service Act of the Philippines (RESA) regulates the practice of real estate service in the Philippines.
    • The Professional Regulatory Board of Real Estate Service (PRBRES) adopts, issues, and promulgates the Implementing Rules and Regulations (IRR) to carry out, administer, and enforce the provisions of R.A. No. 9646.
    • Qualifications for Consultant's License: An applicant for a real estate consultant's license must have at least ten years of experience as a licensed real estate broker or five years of experience as a real estate appraiser and must pass an examination for real estate consultants given by the Professional Regulation Commission (PRC).

    Code of Ethics and Responsibilities

    • A real estate consultant must not be contingent or dependent on reporting predetermined findings or recommendations to be made.
    • A real estate consultant must disclose any propriety interest in the property subject of consultancy before accepting the consultancy engagement.

    Continuing Professional Education

    • The PRBRES develops, prescribes, and promulgates guidelines on Continuing Professional Education (CPE) in consultation with the accredited and integrated professional organization (AIPO) of real estate service practitioners, affiliated association of real estate service practitioners, and other concerned sectors.

    Education and Experience Requirements

    • A real estate consultant should have a college degree in Real Estate Service.
    • A candidate for the licensure examination for real estate consultants must possess a relevant bachelor's degree from a state university or college, or other educational institution duly recognized by the CHED.
    • A candidate must also have at least ten years of experience as a licensed real estate broker or an assessor, or as a bank or government personnel, or a combination thereof.

    Real Estate Service Act of the Philippines (RESA)

    • Also known as R.A. No. 9646
    • Regulates the practice of real estate service in the Philippines
    • Creates a Professional Regulatory Board of Real Estate Service (PRBRES) to carry out, administer, and enforce the provisions of R.A. No. 9646

    Implementing Rules and Regulations (IRR)

    • Adopted and issued by the PRBRES on July 21, 2010
    • Approved by the Professional Regulation Commission (PRC)
    • Carries out, administers, and enforces the provisions of R.A. No. 9646

    Qualifications for Real Estate Consultants

    • Must have at least ten years of experience as a licensed real estate broker or five years of experience as a real estate appraiser
    • Must pass an examination for real estate consultants given by the PRC
    • Must possess other qualifications at the time of filing the application for the licensure examination

    Code of Ethics & Responsibilities

    • Real estate consultants must not engage in activities that may compromise their independence and objectivity
    • Must disclose any potential conflicts of interest
    • Must not own more than 20% proprietary interest in a property subject to consultancy

    Public Practice of Real Estate Consulting

    • Real estate consulting is the provision of advice, guidance, and support in real estate matters on a fee basis by qualified professionals
    • Consultants must subscribe to a suitable code of ethics
    • Provides competent and objective advice and judgment on real estate matters

    Definition and Coverage of Consulting Services

    • Real estate consultant is 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:
      • Acquisition, enhancement, preservation, utilization, or disposition of real estate
      • Provides advice, guidance, and support in real estate matters
      • Offers or renders professional advice and judgment on real estate matters for a fee

    Characteristics of Professional Real Estate Consulting

    • Consultation advice and opinion are documented with reasoning in a written report (or supported by an oral report) for an agreed fee
    • Consulting service is a separate and distinct undertaking, completely distinguished from that of a broker, appraiser, or agent
    • Advice means considered judgment arrived at after careful investigation and deliberation with the client
    • Treats each client or problem individualistically

    Licensing Regulations

    • First licensing regulations were issued on July 29, 1939, under Commerce Administrative Order No. 39
    • Regulations were revised and amended several times, including Commerce Administrative Order No. 60-1 in 1960
    • Real Estate Service Act of the Philippines (RESA) or R.A. No. 9646 was signed into law on June 30, 2009
    • Transferred the regulation of real estate service practice from the Department of Trade and Industry to the Professional Regulation Commission (PRC) effective July 30, 2009

    Real Estate Consulting Services

    • Consulting services are not generally applied, except to the particular client or problem at hand.
    • Success of consulting services is measured by the extent of acceptance and utilization of services by the client.

    Types of Consulting Services

    • Feasibility studies
    • Development planning
    • Disposition planning
    • Evaluation of proposed transactions
    • Acquisition planning
    • Cost-benefit studies
    • Investment analysis
    • Risk analysis
    • Market analysis
    • Location analysis
    • Site selection
    • Zoning assistance
    • Impact analysis
    • Property management review
    • Neighborhood/community analysis
    • Highest and Best Use (HBU) studies

    Problems and Issues Addressed in Realty Consulting

    • Consulting services answer diversified questions related to real estate problems and issues from the standpoint of any party to a proposed transaction.
    • Examples of consulting services:
      • What is the most appropriate mode of disposition of our acquired assets?
      • What impact will a pending change in the community have on my property?
      • How can I improve the income from the property?

    Specific Consulting Cases

    • Needs assessments: A growing law firm requires larger offices, and partners have different opinions about the best office location.
    • Location analysis: A distributor of bottled drinking water wants to know where to locate a distribution center in relation to the total expected market area.
    • Neighborhood analysis: An owner of an apartment complex is concerned about undesirable changes in the neighborhood.
    • Evaluation: An investor has been offered an income-producing property and wishes to know what risks are involved, what after-tax cash flow is to be expected, and what advantages and disadvantages would be associated with rehabilitation.
    • Facilities planning: An industrial company needs to expand a plant and wants to know what it can expect to get for the plant in the market, what it would have to pay for a suitable existing facility at another location, and the after-tax implications of these various possibilities would be.

    Licensing Regulations

    • First licensing regulations were issued on July 29, 1939, under Commerce Administrative Order No.
    • Realty service practice regulations were revised by Commerce Administrative Order No. 60-1, issued on April 28, 1960.
    • In 1985, realty service practice regulations were codified under Ministry Order No. 39.
    • On July 30, 2009, real estate service practitioners began to be regulated by the Professional Regulation Commission (PRC) by virtue of R.A.No. 9646, also known as the Real Estate Service Act of the Philippines (RESA).

    Qualifications for Real Estate Consultants

    • Applicant for a real estate consultant's license must have at least ten years of experience as a licensed real estate broker or five years of experience as a real estate appraiser, and must pass an examination for real estate consultants given by the Professional Regulation Commission (PRC).

    Rule on Conflict of Interest

    • Engagement of a real estate consultant must not be contingent or dependent upon reporting of pre-determined findings or recommendations to be made.
    • A real estate consultant must disclose any proprietary interest in the property subject of consultancy before accepting the consultancy engagement.

    Continuing Professional Education (CPE)

    • PRBRES shall develop, prescribe, and promulgate guidelines on CPE upon consultation with the accredited and integrated professional organization (AIPO) of real estate service practitioners.

    Education, Experience, Standards of Practice, and Ethics

    • Consultant should have a college degree in Real Estate Service.
    • In order to be admitted to the licensure examination for real estate consultant, 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: citizen of the Philippines, holder of a relevant bachelor's degree, and of good moral character.

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    Test your knowledge of real estate consulting, including definition and coverage of consulting services, provision of advice, and code of ethics.

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