Remman Enterprises, Inc. and Chamber of Real Estate and Builders Association v.

Professional Regulatory Board of Real Estate Service and Professional Regulation

Commission
G.R. No. 197676 | February 4, 2014
VILLARAMA, JR., J.

The Court will not declare a statute as unconstitutional when its regulation is an
unavoidable consequence of a reasonable regulatory measure.

FACTS

This case involves a petition for review under Rule 45 on the subject of the Real Estate Service
Act of the Philippines.
R.A. 9646 (Real Estate Service Act of the Philippines) was passed.
Its purpose is to professionalize the real estate service sector under regulatory scheme of
licensing, registration and supervision of real estate service practitioners.
The supervision was likewise lodged under the authority of the Professional Regulatory
Commission (PRC).
The law required that companies providing real estate services must transact with the employ
of duly licensed real estate brokers.
Petitioner assails the constitutionality of the law, alleging that it violates the due process clause
and infringes the ownership rights of real estate developers enshrined in Art. 428 of the Civil
Code. Furthermore, they claim that it violates the equal protection clause as owners of private
properties are allowed to sell their properties without the need of a licensed real estate broker.
The provisions in question are
o Section 29. Prohibition Against the Unauthorized Practice of Real Estate Service.
o Section 32. Corporate Practice of the Real Estate Service.
The RTC denied the issuance of a writ of preliminary injunction.

ISSUES AND HOLDING

1. Whether the assailed provisions are in violation of the due process clause, particularly
substantive due process. No.

The requirements for substantive due process are

1. Lawful government purpose; and
2. Reasonable means necessary for the accomplishment of the lawful purpose.
The lawful purpose of R.A. 9646 is to professionalize the real estate service and
increase its standards.
The law recognizes the role of real estate practitioners in spearheading the
continuous flow of capital, in boosting investor confidence, and in promoting
national progress.
The requirement of employing a duly licensed real estate broker for transactions is
reasonable as it merely regulates the conduct of business, and does not curtail the
exercise of petitioners ownership rights.

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 Lastly, there is a substantial distinction between real estate developers and owners of
private who want to sell their private property.
Unlike individuals or entities having isolated transactions over their own
property, real estate developers sell lots, houses and condominium units in the
ordinary course of business, a business which is highly regulated by the State
to ensure the health and safety of home and lot buyers.

WHEREFORE, the petition is DENIED. RTC decision AFFIRMED and UPHELD.

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