REAL ESTATE SERVICE ACT OF THE PHILIPPINES (RA 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

Article 1:

TITLE, DECLARATION OF POLICY & DEFINITION OF TERMS

Section 1: Section 2: Section 3: Title Declaration of Policy Definition of Terms Real Estate Real Property Real Estate Developer Real Estate Development Project Real Estate Consultant Real Estate Appraiser Real Estate Assessor Real Estate Broker Real Estate Sales Persons
DREAM Realty and Appraisal Company Ltd. Compilations 2012 by: Malou Deiparine REB / REA

Article 2:

PROFESSIONAL REGULATORY BOARD OF REAL ESTATE SERVICE (PRBRES) Section 4: Section 5: Section 6: Section 7: Section 8: Section 9: Section 10: Section 11: Creation & Composition of the Board Powers and Functions of the Board Qualifications of the Chairperson & Members of the Board Terms of Office Compensation and Allowances of the Chairperson & Members of the Board Removal of the Chairperson & Members of the Board
Supervision of the Board, Custodian of its Records, Secretariat & Support Services

Annual Report

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Article 3:

LICENSURE EXAMINATION AND REGISTRATION

Section 12: Section 13: Section 14: Section 15: Section 16: Section 17: Section 18: Section 19: Section 20: Section 21: Section 22: Section 23: Section 24: Licensure Examination Scope of Examination Qualification of Applicants for Examination Ratings in the Examination Release of the Results of Examination Issuance of Certificate of Registration and Professional Identification Card Refusal to Register Revocation or Suspension of the Certificate of Registration (COR)
and the Professional Identification Card (PIC) or Cancellation of Special/Temporary Permit

Registration Without Examination

Reinstatement, Re-issuance or Replacement of COR, PIC and Special/Temporary Permit

Roster of Real Estate Service Practitioners Issuance of Special/Temporary Permit Foreign Reciprocity
DREAM Realty and Appraisal Company Ltd. Compilations 2012 by: Malou Deiparine REB / REA

Article 4:

PRACTICE OF REAL ESTATE SERVICE

Section 25: Section 26: Section 27: Section 28: Section 29: Section 30: Section 31: Section 32: Section 33: Section 34: Section 35: Section 36: Section 37: Section 38: Oath Professional Indemnity Insurance/Cash or Surety Bond Acts Constituting the Practice of Real Estate Service Exemptions from the Acts Constituting the Practice of Real Estate Service Prohibition Against the Unauthorized Practice of Real Estate Service
Positions in Government Requiring the Services of Registered and Licensed RESP

Supervision of Real Estate Salespersons (Amended by Resolution No. 13 Series of 2011) Corporate Practice of the Real Estate Service Display of License in the Place of Business Accreditation and Integration of Real Estate Service Association (AIPO) Code of Ethics and Responsibilities of Real Estate Service Practioners Continuing Professional Education (CPE) Program Enforcement Assistance to the Board
Indication of the Certificate of Registration, Professional Identification Card/License No. Privilege Tax Receipt (PTR) Number, and Accredited Professional Organization (AIPO) No.

Article 5:

PENAL & FINAL PROVISIONS

Section 39: Section 40: Section 41: Section 42: Section 43: Section 44: Section 45: Penal Provisions Appropriations Transitory Provisions Implementing Rules and Regulations Separability Clause Repealing Clause Effectivity

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REAL ESTATE SERVICE ACT OF THE PHILIPPINES (RA 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

SALIENT POINTS Article 1: TITLE, DECLARATION OF POLICY & DEFINITION OF TERMS Real Estate Land + Anything Attached to It Real Property Real Estate + Bundle of Rights Real Estate Developer Engaged in Real Estate Development Project Real Estate Development Project Development of RICAS registered under ACT 496 Real Estate Consultant Renders professional advice and judgment Real Estate Appraiser Renders an opinion of property values Real Estate Assessor Government appraisers for taxation purposes Real Estate Broker Procuring Cause meeting of the minds between buyers & sellers Real Estate Sales Persons Performs services for and in behalf of a real estate broker Article 2:
PRC

PROFESSIONAL REGULATORY BOARD OF REAL ESTATE SERVICE (PRBRES)

= Professional Regulation Commission

PRBRES

Professional Regulatory Board of Real Estate Service

1 Chairman Appointed by the president 4 Members 3 recommended by the commission 5 nominees each position by APO 2 members shall represent government appraisers and assessors

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POWERS AND FUNCTION OF THE BOARD (PRBRES) 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. Provide policy and guidelines Conduct licensure exam and provide syllabus for exam Issue, suspend, revoke, reinstate certificate of registration and personal identification Maintain and update registered licensed real estate service practitioners Maintain high professional, ethical and technical standards Adopt a code of ethics and responsibilities Hear and investigate any violation of RESA and IRR and the CODE of ethics and issue subpoena Safeguard and protect licensed practitioners and monitor advertisement Prescribe with CHED for opening of curriculum Enforce rules Supervise registration of license and practice Assess and fix regulatory fees Administer oath and affirmation Adopt an official seal Evaluate and maintain high standard of RES education and profession Prescribe guidelines for CPE with APO Issue permits and screen RES org in conducting seminars and CPE Monitor and supervise activities of APO Offers necessary

QUALIFICATIONS OF THE BOARD 1. 2. 3. 4. 5. 6. A citizen of the Philippines Holder of Bachelors Degree related to Real Estate At least 10 years active licensed practitioner A bona fide member in good standing of APO but not an officer or trustee Not a faculty of any school or a reviewer Good moral and no crime records with final judgment

TERMS OF OFFICE OF THE BOARD Chairperson and members BUT: 1st BOARD: Chairperson 2 members 2 members = = = = = 3 years from date of appointment renewable but up to 6 years only 3 years 2 years 1 year -shall be given automatically -certificate of registration -personal identification cards

REMOVAL OF BOARD Suspended and removed by the president of the Philippines upon recommendation of the commission on the following grounds: Neglect of duty Abuse of power Oppression Incompetence Unprofessional Unethical Immoral or dishonorable conduct Commission or toleration of irregularities in exams or tampering of grades Final judgment / conviction involving moral turpitude

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Article 3:

LICENSURE EXAMINATION AND REGISTRATION

For Real Estate Brokers Scope: 1. Fundamentals of Property ownership 2. Code of ethics and responsibilities 3. Legal requirements for Real Estate Service practitioners 4. Real Estate brokerage practice 5. Subdivision development 6. Condominium concept 7. Real Estate finance and economics 8. Basic principles of ecology 9. Urban and rural land use 10. Planning, development and zoning 11. Legal aspect of sale, mortgage and lease 12. Documentation and registration 13. Real property lawsetc. QUALIFICATIONS FOR EXAMINATION AND LICENSING 1. 2. 3. 4. A citizen of the Philippines A holder of relevant Bachelors degree until the course of B.S. in RES or B.S. REM is implemented completed at least 120 credit units of real estate subjects Of good moral and no final conviction involving moral turpitude CONSULTANT = at least 10 years as a licensed broker or assessor -bank appraiser -employed as real property valuator / appraiser = at least 5 years licensed appraiser -75 % average in all subjects -no rating below 50% -released within 10 days from date of exam

Passing grade

Certificate of registration -signed by chairperson of PRC -signed by chairperson of PRBRES -signed by members of PRBRES -stamped with official seal of the PRC Professional Identification Card -registration member -date of issuance and expiry date -signed by chairperson of the PRC -renewed every 3 years Refusal to Register Successful Examinees -convicted of any criminal offense involving moral turpitude -guilty of immoral or dishonorable conduct -psychologically unfit

Revocation or Suspension of = Certificate of Registration (CR) = Personal Identification Card (PIC) = Special / Temporary Permit of Salesperson 1. 2. 3. 4. 5. Procurement of CR /PIC by deceit or fraud Allowing an unqualified person to advertise or practice the profession by using ones CR / PIC / SP Unprofessional or unethical conduct Malpractice or violation of RESA, its ITR and the code of ethics Engaging in the practice of profession during suspension

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REGISTRATION WITHOUT EXAMINATION Those who are already licensed broker, appraiser, consultants under DTI by Ministry Order 39 as of RESA effective on July 30, 2009 provided: 1. They are in active practice 2. They have undertaken CPE or CEP a. Holder of DTI license who earned 15 CEP credit units b. Failed to renew DTI license before July 30, 2009 who have earned 24 CEP credit units (from accredited providers as per MO 39 or CPE credit from Council of Accredited Provider) from 2007 July 30, 2011 c. Who pass the 2008 and 2009 DTI exams but failed to obtain license upon effectivity of RA 9646 and who have earned 120 CEP credit units Summary of CPE holder and licensed prior to RA 9646 valid license DTI + 15 CPE / CEP failed to renew DTI + 24 CPE / CEP passed2008 & 2009 but no license yet + 15 CPE / CEP passed 2007 DTI but no license yet + 18 CPE / CEP passed 2006 & prior years but no license yet + 120 CPE / CEP not in above category should comply necessary CPE / CEP within 2 years after effectivity of RA 9646 or from July 31, 2009 to July 30, 2011 Assessors and Appraisers a. as actual appraiser and assessment employee holding permanent appointments for the last 5 years have passed the real property assessing officer (RPAO) exam by civil service commission with department of finance Shall have with relevant CPE credits 24 CPE b. as actual appraiser and assessment employee holding permanent appointments for the credit units last 10 years completed 120 hours of accredited training on real property appraisal by Department of Finance and other GOCC 3.

DOCUMENTS FOR APPLICATION OF LICENSURE

A. BOARD EXAM: (original and photocopy) Certificate of live birth (NSO) or valid Philippine passport Original / photocopy of transcript or diploma with scanned pictures NBI clearance Notarized seminar or certificate of training (CPE) Community tax certificate 4 colored passport size with white background and nametag WITHOUT BOARD EXAM : (original and photocopy) Birth certificate (NSO) or valid Philippine passport Certificate of registration or PIC or DTI license DTI certificate of rating (for exam passers) Duly notarized CEP / CPE certification Civil service, DOF, GOCC, certificate of trainings Appointment papers and service records for assessors and government appraisers Marriage contract (NSO) CTC, surety bond for brokers and appraisers 4 colored passport size with white background and nametag

B.

REINSTATEMENT / RE-ISSUANCE OF CR / PIC / SP Two (2) years from date of revocation (may issue without taking exam but comply with CPE units required)

ACCREDITED INTEGRATED PROFESSIONAL ORGANIZATION OF REAL ESTATE SERVICE PRACTICE (AIPO) Shall maintain Roster of practitioners containing: i. Names of all registered RES practitioners ii. Residence and office address iii. License number iv. Date of registration and issuance of certificates

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Article 4:

PRACTICE OF REAL ESTATE SERVICE

OATH TAKING REQUIRED Before entering into practice of RESbefore: [a] the member of the board [b] any officer of PRC ~ in coordination with AIPO 1. 2. 3. Successful examinees qualified for registration Qualified applicants for registration without exam Accredited salesperson Professional indemnity insurance For licensed brokers, appraisers and consultants Minimum of 20, 000 Renewable every 3 years

CASH / SURETY BOND

NO PERSON SHALL PRACTICE REAL ESTATE SERVICE UNLESS: 1. Has Satisfactorily Passed the Licensure Examination given by the Board (except as otherwise provided in RA 9646 and the IRR) 2. Holder of a valid Certificate of Registration (COR), Professional Identification Card (PIC), Special/Temporary Permit (S/TP) 3. Paid the Required Bond

Section 31:
a. b. c.

Supervision of Real Estate Salespersons

no exam needed supervise and accredited by PRBRES at least 2 years of college have earned 12 credit units training in Real Estate brokerage those who are in active practice for at least 3 years certified by licensed broker or developer prior to effectivity of RA 9646 who were with DTI / HLURB will be accredited until July 30, 2011 must have undergone at least 120 training hours salespersons shall be required to submit the following documents for BOARD accreditation: i. Birth certificate (NSO) ii. NBI clearance iii. Certificate of educational attainment iv. Notarized certificate of training v. Notarized certificate of supervising brokers salespersons shall be under direct supervision and accountability of RE brokers cannot be signatives to a written agreement of any RES sales broker is also a signatory cannot negotiate, mediate, transact any real estate transaction for and in behalf of a broker without securing an authorized accreditation from broker cannot demand a fee, commission or compensation other than the broker who has direct contact and supervision over him

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EXEMPTIONS FROM RA. 9646 1. Dealers who shall perform directly real estate services with regards to his / her own property 2. Any receiver, trustee or assignee in bankruptcy or insolvency proceedings 3. Any person acting pursuant to the order of any court of justice 4. Any person who is duly constituted as attorney-in-fact for purposes of sale, mortgage, lease or exchange or other similar contracts of real estate without compensation or remuneration 5. Public officers in the performance of their duties except government appraisers and assessors

RESOLUTION NO. 13 -- SERIES OF 2011 AMENDMENT OF SEC. 31, RULE IV OF BOARD RES. NO. 02, SERIES OF 2010, THE IMPLEMETING RULES AND REGULATIONS OF R.A. NO. 9646, KNOWN AS THE REAL ESTATE SERVICE ACT OF THE PHILIPPINES, AND ISSUANCE OF THE GUIDELINES ON THE ACCREDITATION OF REAL ESTATE SALESPERSONS UNDER THE SAME SECTION NOW, THEREFORE, the Board RESOLVES, as it is hereby RESOLVED, to amend Sec. 31, Rule IV of Board Res. No. 02, Series of 2010, the IRR of R.A. No. 9646, by extending the 30 July 2011 deadline to 31 December 2011 and to issue the guidelines on the accreditation of real estate service salespersons under the same section. These Guidelines in The Accreditation of Real Estate Salesperson shall be observed: 1. The applicant shall follow these steps:
1.1. Submit the filled-up or accomplished application with documents for pre-evaluation to the Office of the Secretary, PRBs or of the Assistant Secretary, PRBs (3rd Flr., Main Bldg.) at the PRC Central Office, and the Regional Offices processing counters. 1.2. Proceed to the cashier for payment of fees P600.00 (Ground Flr., Main Bldg.) 1.3. Proceed to the Customer Service Center for metered documentary stamp 1.4. Submit duly accomplished application form to the Office of the Asst. Secretary, PRBs (3 rd Flr.) 1.5. Verify the status of application at the PRC Website: www.prc.gov.ph

2.

2.1. For Real Estate Salesperson with no DTI HLURB Registration

2.1.1. 2.1.2. 2.1.3. 2.1.4. 2.1.5. Original and photocopy of NSO Birth Certificate / Certificate of Live Birth Original and photocopy of NSO Marriage Certificate / Contract (for Married female only) Original and notarized Certificate of Educational Attainment on the Completion of at least two (2) years of College Original NBI Clearance (Valid) Original and notarized Certification of twelve (12) credit units on Real Estate Brokerage

2.2. For Real Estate Salesperson with DTI / HLURB Registration

2.2.1. 2.2.2. 2.2.3. 2.2.4. 2.2.5. Original and photocopy of NSO Birth Certificate / Certificate of Live Birth Original and photocopy of NSO Marriage Certificate / Contract (for Married female only) Original and notarized Certificate of Educational Attainment (at least H.S. Diploma) Original NBI Clearance (Valid) Original and notarized Certification of his / her DTI Licensed Estate Broker or HLURB Registered Real Estate Developer 2.2.6. Original and photocopy of DTI / HLURB Certificate of Registration as Salesperson 2.2.7. Original and notarized Certification of at least One Hundred Twenty (120) Hours of training and seminar to be issued by the Employer or Provider (60 hrs. classroom lectures or seminars and 60 hrs. of training or fieldwork)

2.3. Real Estate Salesperson with at Least Three (3) years of Active Practice
2.3.1. 2.3.2. 2.3.3. 2.3.4. 2.3.5. Original and photocopy of NSO Birth Certificate / Certificate of Live Birth Original and photocopy of NSO Marriage Certificate / Contract (for Married female only) Original and Notarized Certificate of Educational Attainment (at least H.S. Diploma) Original NBI Clearance (Valid) Original and Notarized Certification of his / her Supervising Real Estate Broker or HLURB registered Real Estate Developer 2.3.6. Original and Notarized Certification of at least One Hundred Twenty (120) Hours of training and seminar to be issued by the Employer or Provider (60 hrs. classroom lectures or seminars and 60 hrs. of training or fieldwork

Within a reasonable period, the enrolled accredited salesperson shall be issued with their identification cards (ID), containing the data or items that are material to the use thereof in their practice as real estate accredited salespersons The said ID shall be renewable every year for a period of one (1) year from his / her birth month

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The applicant shall submit the following papers / documents in support of his/her qualification and in compliance with other requirements:

CORPORATE PRACTICE OF THE RES Must be registered with SEC Members must all be registered and licensed brokers, consultants or appraisers Submit yearly a list of RES practitioners to PRC and SEC Must have at least 1 broker for every 20 agents Divisions / departments of developers in a real estate development project must be headed by full-time registered and licensed real estate brokers Branch officers must be manned by licensed brokers, appraisers and consultants NOTE: In case of resignation or termination of employed real estate service practitioners, employer shall report to the board within 15 days from termination effectivity

CODE OF ETHICS AND RESPONSIBILITIES The board shall adopt and promulgate AIPO shall prescribe and issue CONTINUING PROFESSIONAL EDUCATION (CPE) PROGRAM The board shall establish or create a CPE council Chairperson from the Board Member from AIPO Member from Academe

Article 5:

PENAL & FINAL PROVISIONS

A. Violations of RA 9646 and its IRR a. fine of not less than 100, 000 b. imprisonment of not less than 2 years c. both d. for unlicensed practitioners = double a and b 1st offense 2nd offense 3rd offense = = = APO suspension for 4 months recommend suspension of license from PRBRES and PRC recommend cancellation of license from PRBRES and PRC

B. violations of the code of ethics and responsibilities 1st offense 2nd offense 3rd offense 4th offense 5th offense = = = = = reprimand / warning APO suspension 2 months APO suspension 4 months recommend suspension of license from PRBRES and PRC recommend cancelation of license from PRBRES and PRC

EFFECTIVITY RESA LAW: ENACTED INTO LAW Implementing Rules and Regulations (IRR) Approved Published Effectivity Deadline of Section 20 (Registration w/o Examination Salespersons Accreditation

: : : : : :

June 29, 2009 21 July 2010 24 July 2010 August 9, 2010 30 July 2011 September 1 to December 31, 2011

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