RESA R.A 9646 Real Estate Service Act of the Philippines PDF

REAL ESTATE SERVICE ACT OF THE PHILIPPINES RESA R.A 9646 An act regulating the practice of real estate service in the Philippines, creating for the purpose a professional regulatory board of Real Estate service appropriating funds therefor and for other purposes.  ARTICL...

REAL ESTATE SERVICE ACT OF THE PHILIPPINES RESA R.A 9646 An act regulating the practice of real estate service in the Philippines, creating for the purpose a professional regulatory board of Real Estate service appropriating funds therefor and for other purposes.  ARTICLE I TITLE, DECLARATION OF POLICY AND DEFINITION OF TERMS SECTION 1. TITLE This act shall be known as the “Real Estate Service Act of the Philippines”. SECTION 2. DECLARATION OF POLICY The state recognizes the vital role of real estate service practitioners in the social, political and economic development and progress of the country by promoting real estate market stimulating the economic actvity and enhancing government income from real property- based transactions. SECTION 3. DEFINITIONS OF TERMS This section provides definitions for various terms used in the Act, including: Appraiser": A person qualified to conduct valuation or appraisal of real property. Assessor": An official in local government responsible for appraising and assessing real properties for taxation purposes. Real estate": Refers to land and all items attached to it, including improvements on, above, or below the ground. Real estate development project": The development of land for various purposes, such as residential, commercial, industrial, or recreational, including tourist resorts and housing projects. "Real estate developer": A person or entity engaged in the business of developing real estate projects for sale or lease. "Real property": Encompasses all rights, interests, and benefits related to the ownership of real estate. "Real estate service practitioners": Includes various professionals, such as real estate consultants, appraisers, assessors, brokers, and salespersons, each with their specific roles and responsibilities in real estate transactions.  ARTICLE II PROFESSIONAL REGULATORY BOARD OF REAL ESTATE SERVICE SECTION 4. CREATION AND COMPOSITION OF THE BOARD A Professional Regulatory Board of Real Estate Service, referred to as the Board, is established. The Board consists of a chairperson and four members appointed by the President of the Philippines. These appointments are made from a list of recommendations provided by the Professional Regulation Commission (PRC) and the accredited professional organization of real estate service practitioners. Two members of the Board must represent government assessors and appraisers. The first Board must be organized within six months from the Act's effectivity. SECTION 5. POWERS AND FUNCTIONS OF THE BOARD. The Board has various powers and functions, including: Providing policy guidelines for the real estate industry's promotion and development. Conducting licensure examinations and defining syllabi for these exams. Issuing, suspending, revoking, or reinstating certificates of registration for real estate service practitioners. SECTION 6. QUALIFICATIONS OF THE CHAIRPERSON AND MEMBERS OF THE BOARD The chairperson and members must meet specific qualifications, including Philippine citizenship, relevant educational background, a minimum of ten years of experience in real estate service, membership in the professional organization, and good moral character. They should have no conflicts of interest or criminal convictions involving moral turpitude. SECTION 7. TERM OF OFFICE Board members serve three-year terms, with initial appointments staggered to ensure continuity. Members can be reappointed for a second term but not serve continuously for more than six years. Vacancies are filled for the unexpired portion of the SECTION 8. COMPENSATION AND ALLOWANCES OF THE CHAIRPERSON AND MEMBERS OF THE BOARD The chairperson and members receive compensation and allowances similar to other professional regulatory boards. The President, based on Commission recommendations, can suspend or remove board members for various reasons, including misconduct. SECTION 9. REMOVAL OF THE CHAIRPERSON AND MEMBERS OF THE BOARD The President, upon the Commission's recommendation, can suspend or remove a chairperson or member for various reasons, including neglect of duty, misconduct, or criminal convictions involving moral turpitude. SECTION 10.. SUPERVISION OF THE BOARD, CUSTODIAN OF ITS RECORDS, SECRETARIAT AND SUPPORT SERVICES The Board operates under the supervision of the Commission, with the Commission serving as the custodian of the Board's records, including examination materials and administrative cases. The Commission provides secretariat and support services. SECTION 11. ANNUAL REPORT The Board is required to submit an annual report to the Commission at the end of each calendar year, detailing its activities and accomplishments and suggesting improvements for the real estate service profession in the Philippines.  ARTICLE III LICENSURE EXAMINATION AND REGISTRATION SECTION 12. LICENSURE EXAMINATION Outlines the requirement for individuals aspiring to become registered and licensed real estate service practitioners in the Philippines (excluding real estate salespersons) to undergo an examination. These examinations are conducted by the Board at least once a year, with specific places and dates determined by the Commission. SECTION 13. SCOPE OF EXAMINATION The scope of the examination is detailed for different categories, including real estate consultants, appraisers, and brokers. It specifies the subjects covered in the examinations and allows for adjustments to accommodate technological and modern developments. SECTION 14. QUALIFICATION OF APPLICANTS FOR EXAMINATIONS. Candidates must meet specific qualifications to be admitted to the licensure examination, including Philippine citizenship, relevant educational qualifications, and good moral character. There are also experience requirements for certain categories of applicants. SECTION 15. RATINGS IN THE EXAMINATION Successful candidates must achieve an average score of at least 75% in all subjects, with no score falling below 50% in any subject to pass the examination. SECTION 16. RELEASE OF THE RESULTS OF EXAMINATION Examination results are to be released within ten days from the last day of the examination. SECTION 17. ISSUANCE OF THE CERTIFICATE OF REGISTRATION AND PROFESSIONAL IDENTIFICATION CARD Explains the issuance of a certificate of registration and professional identification card for successful examinees. These documents grant the right to practice the profession, subject to fees and renewal requirements. SECTION 18. REFUSAL TO REGISTER Discusses instances where the Board can refuse to register an applicant, such as convictions for crimes involving moral turpitude or unethical conduct. SECTION 19. REVOCATION OR SUSPENSION OF THE CERTIFICATE OF REGISTRATION AND THE PROFESSIONAL IDENTIFICATION CARD OR CANCELLATION OF SPECIAL/TEMPORARY PERMIT. Covers the revocation, suspension, or cancellation of certificates and permits for real estate service practitioners, with specific reasons listed, including unethical conduct or malpractice. Lawyer SECTION 20. REGISTRATION WITHOUT EXAMINATION Eoutlines the conditions for registration without the need for an examination in the real estate service profession. It specifies three categories of individuals who can be registered without taking the prescribed examination: 1. Individuals already licensed as real estate brokers, appraisers, or consultants by the Department of Trade and Industry (DTI) as of the effective date of the Act. They must be actively practicing in one of these roles and have completed relevant Continuing Professional Education (CPE) to the satisfaction of the Board. 2. Assessors and appraisers with permanent appointments who have been performing appraisal and assessment functions for at least five years and have passed the Real Property Assessing Officer (RPAO) examination administered by the Civil Service Commission (CSC) in coordination with the Department of Finance (DOF). They must also have undertaken relevant CPE to meet the Board's requirements 3. Assessors and appraisers with permanent appointments who have at least ten years of actual experience in real property appraisal or assessment and have completed at least 120 hours of accredited training on real property appraisal conducted by national or international organizations recognized by the Board. Relevant CPE is also required. Those individuals falling under categories 2 and 3 may initially register as real estate appraisers and later seek licensure at a different credential level, provided they meet the necessary requirements, including taking the relevant licensure examination. Applicants who fall into these exempt categories must file their applications within two years from the effective date of the Act. It's important to note that the renewal of the professional identification card is subject to the provisions of Section 17, which covers renewal requirements. SECTION 21. REINSTATEMENT, REISSUANCE OR REPLACEMENT OF CERTIFICATE OF REGISTRATION, PROFESSIONAL IDENTIFICATION CARD AND SPECIAL/TEMPORARY PERMIT Details the reinstatement, reissuance, or replacement of certificates and identification cards for individuals who have had them revoked, lost, or damaged. SECTION 22. ROSTER OF REAL ESTATE SERVICE PRACTITIONERS Discusses the creation and maintenance of a roster of registered real estate service practitioners, containing their relevant information for public access. SECTION 23. ISSUANCE OF SPECIAL/TEMPORARY PERMIT Explains the issuance of special/temporary permits to foreign real estate service practitioners when their services are urgently needed due to the unavailability of local practitioners. SECTION 24. FOREIGN RECIPROCITY Outlines the condition for foreign reciprocity, stating that foreign real estate service practitioners can only be admitted to the licensure examination or granted registration if their home country allows Filipino practitioners the same privileges.  ARTICLE IV PRACTICE OF REAL ESTATE SERVICE SECTION 25. OATH All individuals who have successfully passed the real estate service examination, as well as those who are qualified to register without examination and accredited salespersons, must take an oath before a Board member or a Commission-authorized officer before practicing real estate service in the Philippines. SECTION 26. PROFESSIONAL INDEMNITY INSURANCE/CASH OR SURETY BOND Real estate brokers and private appraisers must also obtain professional indemnity insurance or post a cash or surety bond, renewable every three years, with an amount determined by the Board, not less than P20,000. This is in addition to the oath required in Section 25. SECTION 27. ACTS CONSTITUTING THE PRACTICE OF REAL ESTATE SERVICE Any action or transaction falling under the provisions of Section 3(g) performed by real estate service practitioners constitutes the practice of real estate service. SECTION 28. EXEMPTIONS FROM THE ACTS CONSTITUTING THE PRACTICE OF REAL ESTATE SERVICE Certain exemptions from practicing real estate service include property owners acting on their own properties, receivers, trustees, court-ordered individuals, and authorized attorneys-in-fact for real estate transactions. Public officers, except government assessors and appraisers, are exempt when performing their official duties. SECTION 29. PROHIBITION AGAINST THE UNAUTHORIZED PRACTICE OF REAL ESTATE SERVICE Unauthorized practice of real estate service is prohibited. Only licensed practitioners can offer real estate services, use the title, advertise their qualifications, or be appointed in government positions related to real estate service. SECTION 30. POSITIONS IN GOVERNMENT REQUIRING THE SERVICES OF REGISTERED AND LICENSED REAL ESTATE SERVICE PRACTITIONERS Positions requiring the services of real estate practitioners must be filled by registered and licensed practitioners. Incumbent assessors will keep their positions but cannot be promoted until they meet new qualifications. No reduction in benefits for incumbents is allowed. SECTION 31. SUPERVISION OF REAL ESTATE SALESPERSONS Real estate salespersons must be accredited by the Board, have completed two years in college, and undergone training. They must work under the supervision of a real estate broker and cannot independently negotiate transactions. SECTION 32. CORPORATE PRACTICE OF THE REAL ESTATE SERVICE Corporate entities involved in real estate service must register with the Securities and Exchange Commission and have licensed real estate practitioners as authorized individuals. Certain rules apply to branches, and employment changes must be reported. If a real estate service practitioner resigns or is terminated from employment, the employer is required to report this to the Board within fifteen days from the effective date of the resignation or termination. Corporations or partnerships may engage registered and licensed real estate brokers, appraisers, or consultants on a commission basis to perform real estate services, and these individuals are considered independent contractors rather than employees of the corporations, subject to the Labor Code. SECTION 33. DISPLAY OF LICENSE IN THE PLACE OF BUSINESS Requires every registered and licensed real estate service practitioner to establish and maintain a principal place of business and any necessary branch offices. They must conspicuously display original or certified true copies of their certificate of registration, as well as the certificates of registration of all real estate service practitioners employed in those offices. SECTION 34. ACCREDITATION AND INTEGRATION OF REAL ESTATE SERVICE ASSOCIATIONS All real estate service associations will be integrated into one national organization recognized by the Board, with membership benefits and privileges. Membership in other associations is allowed. Lawyer SECTION 35. CODE OF ETHICS AND RESPONSIBILITIES FOR REAL ESTATE SERVICE PRACTITIONERS The Board is responsible for adopting and promoting a Code of Ethics and Responsibilities for real estate service practitioners. This code will be determined and issued by an accredited professional organization in the field. SECTION 36. CONTINUING PROFESSIONAL EDUCATION (CPE) PROGRAM The Board will establish guidelines for a Continuing Professional Education (CPE) Program in consultation with professional organizations, affiliated associations, and other relevant sectors. A CPE Council will be formed, consisting of members from the Board, professional organizations, and academia. SECTION 37. ENFORCEMENT ASSISTANCE TO THE BOARD The Commission will provide assistance to the Board in enforcing the provisions of the Act, including legal prosecution of illegal practitioners. Government authorities will also assist in enforcing the Act and its rules. SECTION 38. INDICATION OF THE CERTIFICATE OF REGISTRATION, PROFESSIONAL IDENTIFICATION CARD/LICENSE NUMBER, PRIVILEGE TAX RECEIPT (PTR) NUMBER AND ACCREDITED PROFESSIONAL ORGANIZATION (APO) NUMBER. Real estate service practitioners are required to include their certificate of registration, professional identification card, PTR number, and Accredited Professional Organization (APO) receipt number, along with issuance date and validity duration, on documents related to their professional practice. ARTICLE V PENAL AND FINAL PROVISIONS SECTION 39. PENAL PROVISIONS Outlines the penal provisions of the Act, stating that any violation, including those of implementing rules and regulations, will result in a penalty. Violators can face a fine of not less than PHP 100,000 or imprisonment of not less than two years, or both, at the discretion of the court. If the violation is committed by an unlicensed real estate service practitioner, the penalty is doubled. If a partnership, corporation, association, or juridical person is found in violation, the partner, president, director, or manager responsible for the violation will be held directly liable.  SECTION 40. APPROPRIATIONS Deas with appropriations, stating that the implementation of the Act will be included in the Commission's programs, with funding in the annual General Appropriations Act. SECTION 41. TRANSITORY PROVISION A transitory provision, requiring the transfer of relevant records and documents from the DTI - Bureau of Trade Regulation and Consumer Protection (BTRCP) to the Professional Regulatory Board of Real Estate Service within 90 days of the Act's effectivity. SECTION 42. IMPLEMENTING RULES AND REGULATIONS Discusses implementing rules and regulations. Within six months of the Act's effectivity, the Commission, the Board, the professional organization of real estate service practitioners, the Department of Finance, and the CHED will collaborate to prepare necessary rules and regulations, including the Code of Ethics and Responsibilities for practitioners. SECTION 43. SEPARABILITY CLAUSE A separability clause, indicating that if any part of the Act is declared unconstitutional or invalid, it won't affect other parts of the Act. SECTION 44. REPEALING CLAUSE includes a repealing clause, modifying or repealing specific sections of existing laws to align them with this Act and superseding any laws or regulations that are inconsistent with its provisions. SECTION 45. EFFECTIVITY Specifies the Act's effectivity, which will occur 15 days following its publication in the Official Gazette or a major daily newspaper of general circulation in the Philippines. THANK YOU