What are the 10 most important things you need to know

about the RESA Law or RA 9646?

Are you currently involved in what is considered to be real estate services? If so, your official acts and
transactions are covered by Republic Act No. 9646 or the Real Estate Service Act of the Philippines,
which is more commonly referred to as the RESA Law. If you are not sure whether your acts
constitute a violation of this law, or whether you are even covered by the law, we suggest you read on.

The RESA Law, which took effect on July 30, 2009, deals primarily with the acts generally considered
to be real estate services, the qualifications of those who may practice the profession, and the
penalties corresponding to violations of its provisions.

The law protects the rights of those who call themselves real estate professionals, and also lays down
the rules which these professionals have to adhere to, so that they may be registered under the
Professional Regulation Commission (PRC) and be allowed to continue their practice.

1. Who are those deemed to be practitioners of real estate services

and what do they do?
Section 3(g) of the RESA Law lists five types of professionals who are considered to be in the practice
of real estate services. They are real estate consultants, appraisers, assessors, brokers, and
salespersons. The first must be duly registered and licensed by the PRC, while real estate
salespersons need only be accredited.

According to the RESA Law, real estate consultants are those who offer or render professional advice
and judgment on the acquisition, enhancement, preservation, utilization, or disposition of lands or
improvements thereon. They also facilitate the conception, planning, management, and development
of real estate projects.

Real estate appraisers are those who perform services that involve estimating and rendering an
opinion on the value of real property. Real estate assessors, on the other hand, are those who are
employed by local government units (cities, municipalities, and provinces) and appraise and assess
the value of real properties, which include plants, equipment, and machineries. While appraisers
perform their tasks for the purpose of reporting the values as appraised, assessors perform such
tasks for the purpose of taxation.

Real estate brokers are those who act as agents of a party in a real estate transaction. They facilitate
the offer, advertisement, solicitation, listing, promotion, mediation, negotiation, or the actual meeting of
minds between parties on the sale, exchange, mortgage, lease, joint venture, or any similar
transaction involving real properties. In a nutshell, they act as middlemen between the person offering
to sell their property and the one offering to buy it.

Finally, real estate salespersons are those who may act in behalf of a real estate broker to facilitate a
real estate transaction. It is not uncommon in the Philippines for a single real estate broker to have
several salespersons working under him or her.

2. What are the qualifications required under RA 9646?

All applicants must be Filipino citizens, although the law in this case does not distinguish between
natural-born and naturalized Filipino citizens. In addition, they must have a college degree (or at least
2 years of college education for salespersons) and have not been convicted of any crime.

In addition to the above-mentioned requirements, consultants must also show proof of experience in
the field, including proof of being licensed for at least 10 years as a broker, an assessor, a bank or
institutional appraiser, a property-evaluating employee, or as a licensed appraiser for at least 5 years.
Corporations and partnerships are also allowed to engage in real estate practice if they are duly
registered with the Securities and Exchange Commission. However, a corporation/partnerships
officers or those authorized to act in its behalf must all be licensed real estate brokers, appraisers, or
consultants.

3. How about professionals who have been practicing real estate

services since before 2009
According to Section 20, professionals who have been practicing real estate services before the
RESA Law took effect in 2009 can be issued a certificate and professional ID without taking the
prescribed exam, provided that they satisfy any of the following requirements:

They are already real estate brokers, appraisers, or consultants licensed by the
Department of Trade and Industry
They are already assessors or appraisers who hold permanent appointments and have
been practicing their profession for the last 5 years (before 2009) and have passed the
Real Property Assessing Officer exam conducted by the Civil Service Commission
They are assessors or appraisers who hold permanent appointments, have at least 10
years actual experience in real property appraisal or assessment, and have completed at
least 120 hours of accredited training on real property appraisal

4. Does passing the licensure exam automatically lead to

registration?
The PRC may deny your application for the real estate service profession, even if you have passed
the licensure exam. The three most common grounds are the following: First, if you have been
convicted by a court of law of any criminal offense. Second, if you, upon investigation by the PRC,
have been found guilty of immoral or dishonorable conduct. Finally, if you have been found to be
psychologically unfit for the profession.

5. Who is exempted from the application of the law?

Section 28 of the RESA Law stipulates that the following are exempted from the application of its
provisions.

First are owners of real property (or private owners), as they are not required to have a license in
order to sell their own property. However, this does not include real estate developers, because they
are regulated by the Housing and Land Use Regulatory Board (HLURB).

Trustees in bankruptcy or insolvency proceedings are also exempted, as well as people who act
pursuant to court orders (e.g., sheriff of the court); duly constituted attorneys-in-fact authorized to
negotiate the sale, mortgage, lease, or exchange of real estate (provided that they do not require any
form of compensation); and public officers who perform such acts in line with their official duties.
However, it is important to know that the latter does not include government assessors.

6. Can foreigners practice real estate services in the Philippines?

Generally, no. However, the law does state an exemption: foreign reciprocity. Section 24 of the RESA
Law stipulates that foreigners are prohibited from the practice of real estate services in the
Philippines, although it also says that this rule shall not apply if the country where the foreign applicant
is from allows Filipinos in the real estate service industry to practice within its territory as its own
citizens would.
7. Are there any other details regarding the licensure examination
and the license itself?
The licensure exam is prepared and administered by the Professional Regulatory Board for Real
Estate Practice, which is under the PRC. It is composed of 13 real estaterelated subjects, which may
be increased as the Board sees fit.

After passing the examination, you will be required to take an oath before a member of the Board or
the PRC. In addition, applicants for real estate brokers and appraisers are required to post a cash or
surety bond that would serve as professional indemnity insurance. This bond is renewable every 3
years and shall not be less than Php20,000. The license issued is also renewable every 3 years.

The PRC licenses must be displayed in a conspicuous area in the office or business establishment
that is dedicated to the practice of real estate services.

8. Can my license be suspended or revoked?

The PRC may revoke your certificate of registration and professional ID for a number of reasons.
First, if you got your license through fraud or deceit. Second, if you allow an unqualified person to
advertise or practice the profession using your own certificate, ID card, or permit. Third, if you engage
in unprofessional or unethical conduct. Fourth, if you commit any form of malpractice or a violation of
the RESA Law itself, its Implementing Rules and Regulations, and the Code of Ethics and
Responsibilities for Real Estate Service Practitioners. And finally, if you get suspended for an offense
and continue practicing real estate services.

9. What does the law prohibit?

Section 29 prohibits the practice or the offer to practice real estate services, or to offer yourself as a
real estate service practitioner if you have not been licensed by the PRC (except those who are
covered by the RESA Laws exemption).

10. What are the penalties for violating RA 9646?

Section 39 stipulates that any violation of the RESA Law, including violations of its Implementing
Rules and Regulations, shall be penalized with a fine of not less than Php100,000 or imprisonment of
not less than 2 years, or both. If the offender happens to be unlicensed, the aforementioned penalty is
doubled (Php200,000 and/or 4 years imprisonment).

Furthermore, partnerships, corporations, associations, or other judicial entities who have committed,
consented to, or knowingly tolerated such a violation are deemed a principal or a co-principal of the
violation, along with the other participants, and are subject to the same penalty.