Problems with the RESA Law: Save the Real Estate Industry

While the real estate industry has always been unpopular among the Filipinos,
the passage of RA 9646 or the Real Estate Service Act (RESA), various real estate
groups and practitioners have been making noises as they raise concerns over the new
law. For them, said law is excessively regulated and might lead to the end of the
industry.
With the growing demand for real estate services, the government recognizes the
vital role of practitioners in the economy. Hence, the law was mandated to provide
supervision, regulate such profession and promote the real estate industry. It mainly
aims to alleviate the problem with “colorum” agents and brokers and to improve tax
collection from these practitioners. Although the aim is for the betterment of services, it
has also added to the burden of the practitioners.
Academic Requirement
In 2009, the RESA Law required only a bachelor’s degree and 120-hour of
training for the brokers and only a minimum of two years in college for salespersons.
However, effective 2016, pursuant to CMO No. 28 Series of 2011 issued by the
Commission on Higher Education (CHED), a degree in Bachelor of Science in Real
Estate Management is now a requirement upon taking the licensure examination.
This provision has concerned a lot of individuals especially those who wanted to
pursue the field of real estate industry but has already graduated from college with a
different degree. It might lead to a decrease in number of licensed practitioners in the
market. Further, there are also concerns with regard to the sustainability of such course
as it is unpopular among the high school students. With the implementation of K-12
Program, the law does not have a specific provision as to whether Senior High School
graduates may be accredited as Real Estate Salespersons. In the real estate industry, a
diploma is not a guaranteed success.
“The academic requirement should be lessen and non-BS REM graduates who
have undergone the required number of units should be allowed to take the licensure
examination,” Rosario Concon, a real estate broker suggests. According to her, there
are a lot of graduates who want to pursue this industry but because of the strict
requirement, some have resorted to becoming “colorum” agents. This will not only affect
the tax collection of the government but it might also affect the businesses of the
licensed practitioners.
PRC or HLURB
Practitioners have also raised issues regarding registration. The real estate
practitioners are now being regulated by the Professional Regulatory Commission
(PRC). To legally practice such profession, one has to register in PRC. Applicants must
submit a number of documents such as NSO Birth Certificate, Marriage Certificate, NBI
Clearance etc. The applicant must pay the required fee in the cashier. After such, one
must wait for months or even years for the resolution to be released.
 However, the burden does not end there. One has to also register in the Housing
and Land Use Regulatory Board (HLURB) and submit another layer of requirements
with a fee. According to Vicente Concon, a real estate broker in General Santos City,
there is redundancy in the registration process since it required the same documents.
Moreover, the HLURB, regardless whether or not one is an accredited practitioner, will
penalize those who engaged in illegal transactions.
Renewal of Licenses
Pursuant to Republic Act (R.A.) 10912, “An act mandating and strengthening the
continuing professional development program for all regulated professions, creating the
Continuing Professional Development Council, and appropriating funds therefor, and for
related purposes,” a real estate broker is required to have a total of 45 units before
renewing such license.
Unlike other professions which only need at least one convention or seminar in
the country may already earn the required number of units; in real estate service, one
has to attend a number of seminars to earn the required units. However, these do not
come cheap. Fees may range from Php 15,000 to Php 30,000 with plane tickets and
accommodation still excluded.
“If one may opt to earn the required units for one time, there are conventions
available but the problem is these are conducted abroad which are relatively expensive,”
Vicente Concon added. This does not only adds to the expenses but also takes most of
their time listening to lectures instead of using their time to market their projects. To the
practitioners, it may seem that these CPD providers have made these seminars as a
business to the expense of the practitioners.
Income and Tax
Real estate brokers and salespersons
Reaction and Suggestions
The real estate industry is not new to me. I grew up with this business and
personally experienced it. To be able to sell legally, I have undergone a series of
trainings and seminars to earn units as a real estate salesperson and submitted the
required documents. However, up to now, I am still waiting for the resolution whether or
not my application is accepted.