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An overview of Republic Act 9646: The Philippine Real Estate Act of 2009 which was approved and signed by former president and now Congresswoman Gloria Macapagal-Arroyo last June 29, 2009. It was inevitable to have this law after 20 plus years of legislation by congress and lobbied by professional real estate organization to protect the real estate industry from malpractice, fraud and illegal activities that have plagued investing public and real estate professionals.
Republic of the Philippines
Congress of the Philippines
Metro Manila
Fourteenth Congress
Second Regular Session
Second Regular Session
Begun and held in Metro Manila, on Monday, the twenty-eight day of July, two thousand eight.
Republic Act No. 9646 June 29, 2009
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
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled::
ARTICLE I
TITLE, DECLARATION OF POLICY AND DEFINITION OF TERMS
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, economic development and progress of the country by promoting the real estate market, stimulating economic activity and enhancing government income from real property-based transactions. Hence, it shall develop and nurture through proper and effective regulation and supervision a corps of technically competent, responsible and respected professional real estate service practitioners whose standards of practice and service shall be globally competitive and will promote the growth of the real estate industry.
Section 3. Definition of Terms. - As used in this Act, the following terms shall mean:
(a) "Appraiser" also known as valuer, refers to a
person who conducts valuation/appraisal; specifically, one who possesses
the necessary qualifications, license, ability and experience to
execute or direct the valuation/appraisal of real property.
(b) "Assessor" refers to an official in the local
government unit, who performs appraisal and assessment of real
properties, including plants, equipment, and machineries, essentially
for taxation purposes. This definition also includes assistant
assessors.
(c) "Real estate" refers to the land and all those
items which are attached to the land. It is the physical, tangible
entity, together with all the additions or improvements on, above or
below the ground.
(d) "Real estate development project" means the
development of land for residential, commercial, industrial,
agricultural, institutional or recreational purposes, or any combination
of such including, but not limited to, tourist resorts, reclamation
projects, building or housing projects, whether for individual or
condominium ownership, memorial parks and others of similar nature.
(e) "Real estate developer" refers to any natural or
juridical person engaged in the business of developing real estate
development project for his/her or its own account and offering them for
sale or lease.
(f) "Real property" includes all the rights, interests and benefits related to the ownership of real estate.
(g) "Real estate service practitioners" shall refer to and consist of the following:
(1) Real estate consultant - a duly registered and
licensed -natural person who, for a professional fee, compensation or
other valuable consideration, offers or renders professional advice and
judgment on: (i) the acquisition, enhancement, preservation, utilization
or disposition of lands or improvements thereon; and (ii) the
conception, planning, management and development of real estate
projects.
(2) Real estate appraiser- a duly registered and
licensed natural person who, for a professional fee, compensation or
other valuable consideration, performs or renders, or offers to perform
services in estimating and arriving at an opinion of or acts as an
expert on real estate values, such services of which shall be finally
rendered by the preparation of the report in acceptable written form.
(3) Real estate assessor - a duly registered and
licensed natural person who works in a local government unit and
performs appraisal and assessment of real properties, including plants,
equipment, and machineries, essentially for taxation purposes.
(4) Real estate broker - a duly registered and
licensed natural person who, for a professional fee, commission or other
valuable consideration, acts as an agent of a party in a real estate
transaction to offer, advertise, solicit, list, promote, mediate,
negotiate or effect the meeting of the minds on the sale, purchase,
exchange, mortgage, lease or joint venture, or other similar
transactions on real estate or any interest therein.
(5) Real estate salesperson - a duly accredited
natural person who performs service for, and in behalf of. a real estate
broker who is registered and licensed by the Professional Regulatory
Board of Real Estate Service for or in expectation of a share in the
commission, professional fee, compensation or other valuable
consideration.
ARTICLE II
PROFESSIONAL REGULATORY BOARD OF REAL ESTATE SERVICE
PROFESSIONAL REGULATORY BOARD OF REAL ESTATE SERVICE
Section 4. Creation and Composition of the Board.
- There is hereby created a Professional Regulatory Board of Real
Estate Service, hereinafter referred to as the Board, under the
supervision and administrative control of the Professional Regulation
Commission (PRC), hereinafter referred to as the Commission, composed of
a chairperson and four (4) members who shall be appointed by the
President of the Philippines from the three (3) recommendees chosen by
the Commission from a list of five (5) nominees per position submitted
by the accredited and integrated professional organization of real
estate service practitioners: Provided, That two (2) of the members of the Board shall represent the government assessors and appraisers.
The first Board shall be organized within six (6) months from the effectivity of this Act.
Section 5. Powers and Functions of the Board. - The Board is hereby vested the following powers and functions:
(a) Provide comprehensive policy guidelines for the promotion and development of the real estate industry;
(b) Conduct licensure examinations for the practice
of the real estate service profession and prescribe the appropriate,
syllabi of the subjects for examination;
(c) Issue, suspend, revoke or reinstate, after due
notice and hearing, certificates of registration or professional
identification cards for the practice of real estate service;
(d) Maintain a comprehensive and updated register of licensed real estate service professionals;
(e) Monitor the conditions affecting the practice of
real estate service and adopt such measures as may be proper for the
enhancement of the profession and/or the maintenance of high
professional, ethical and technical standards;
(f) Adopt a national Code of Ethics and
Responsibilities to be strictly observed by all licensed real estate
service practitioners;
(g) Hear or investigate any violation of this Act,
its implementing rules and regulations, and the Code of Ethics and
Responsibilities for real estate service practitioners and issue subpoena and subpoena duces tecum to secure the appearance of witnesses and the production of documents in connection therewith;
(h) Safeguard and protect legitimate and licensed
real estate service practitioners and, in coordination with the
accredited and integrated professional organization of real estate
service practitioners, monitor all forms of advertisements,
announcements, signboards, billboards, pamphlets, brochures and others
of similar nature concerning real estate and, where necessary, exercise
its quasi-judicial and administrative powers to finally and completely
eradicate the pernicious practices of unauthorized or unlicensed
individuals;
(i) Prescribe, in cooperation with the Commission on
Higher Education (CHED) or the concerned state university or college,
the essential requirements as to the curricula and facilities of
schools, colleges or universities seeking permission to open academic
courses or already offering such courses in real estate service, and to
see to it that these requirements, including the employment of qualified
faculty members, are properly complied with;
(j) Promulgate, .administer and enforce rules and regulations necessary in carrying out the provisions of this Act;
(k) Supervise and regulate the registration, licensure and practice of real estate service in the Philippines;
(l) Assess and fix the rate of reasonable regulatory fees;
(m) Administer oaths and affirmations;
(n) Adopt an official seal of the Board;
(o) Evaluate periodically the status of real estate
service education and profession, and recommend and/or adopt measures to
upgrade and maintain its high standard;
(p) Prescribe guidelines and criteria for the
Continuing Professional Education (CPE) program for real estate service
practitioners in consultation with the accredited and integrated
professional organization of real estate service practitioners;
(q) Screen, issue and monitor permits to
organizations of real estate professionals in the conduct of seminars
and accredit such seminars pursuant to the CPE program, as well as the
instructors or lecturers therein, for the purpose of upgrading the
quality and knowledge of the profession;
(r) Monitor and supervise the activities of the
accredited and integrated professional organization and other
associations of real estate service practitioners; and
(s) Discharge such other powers, duties and functions
as the Commission may deem necessary to carry out the provisions of
this Act.
The policies, resolutions and rules and regulations
issued or promulgated by the Board shall be subject to the review and
approval by the Commission. However, the Board's decisions, resolutions
or orders which are not interlocutory, rendered in an administrative
case, shall be subject to review by the Commission only on appeal.
Section 6. Qualifications of the Chairperson and Members of the Board. - The chairperson and the members of the Board shall, at the time of their appointment, possess the following qualifications:
(a) A citizen and resident of the Philippines;
(b) A holder of a bachelor's degree related to real estate;
(c) An active licensed practitioner of real estate service for at least ten (10) years prior to his/her appointment;
(d) A bona fide member in good standing of the
accredited and integrated professional organization of real estate
service practitioners but not an officer or trustee at the time of
his/her appointment;
(e) Neither be a member of the faculty of an
institute, school, college or university, nor have any pecuniary
interest, direct or indirect, in any institution or association where
review classes or lectures in preparation for the licensure examination
are being offered or conducted; and
(f) Of good moral character, and must not have been
convicted by final judgment by a competent court of a criminal offense
involving moral turpitude.
Section 7. Term of Office. - The
chairperson and the members of the Board shall hold office for a term of
three (3) years from the date of their appointment and until their
successor/s shall have been appointed: Provided, That the members
of the first appointed Board shall hold office for the following terms:
one (1) member as chairperson, to serve for three (3) years; two (2)
members, to serve for two (2) years; and two (2) members, to serve for
one (1) year.
The chairperson and the members of the Board may be
reappointed for a second term but in no case shall he/she serve
continuously for more than six (6) years. Any vacancy in the Board shall
be filled for the unexpired portion of the term of the member who
vacated the position. On the constitution of the first Board, the
chairperson and the members of the Board shall automatically be
registered and issued certificates of registration and professional
identification cards. Each member of the Board shall take the proper
oath of office prior to the assumption of duty.
Section 8. Compensation and Allowances of the Chairperson and Members of the Board. - The chairperson and the members of the Board shall receive compensation and allowances comparable to the compensation and allowances received by the chairman and the members of existing professional regulatory boards under the Commission, as provided for in the General Appropriations Act.
Section 9. Removal of the Chairperson and Members of the Board. - The chairperson or any member of the Board may be suspended or removed by the President of the Philippines, upon the recommendation of the Commission, for neglect of duty; abuse of power; oppression; incompetence; unprofessional, unethical, immoral or dishonorable conduct; commission or toleration of irregularities in the conduct of examination or tampering of the grades therein, or for any final judgment or conviction of any criminal offense involving moral turpitude.
Section 10. Supervision of the Board, Custodian of its Records, Secretariat and Support Services. - The Board shall be under the general supervision and administrative control of the Commission. All records of the Board, including applications for examination, examination papers and results, minutes of deliberations, administrative and other investigative cases involving real estate service practitioners, shall be kept by the Commission. The Commission shall designate the secretary of the Board and shall provide the secretariat and other support services to implement the provisions of this Act subject to the usual government accounting and auditing rules and regulations.
Section 11. Annual Report. - The Board shall, at the close of each calendar year, submit an annual report to the Commission, giving a detailed account of its proceedings and accomplishments during the year and recommending measures to be adopted with the end-in-view of upgrading and improving the conditions affecting the practice of real estate service in the Philippines.
ARTICLE III
LICENSURE EXAMINATION AND REGISTRATION
Section 12. Licensure Examination. - Every applicant seeking to be registered and licensed as a real estate service practitioner, except a real estate salesperson, shall undergo an examination as provided for in this Act. Examinations for the practice of real estate service in the Philippines shall be given by the Board at least once every year in such places and dates as the Commission may designate.
Section 13. Scope of Examination. - An
examination shall be given to the licensure applicants for real estate
brokers, real estate appraisers and real estate consultants which shall
include, but not limited to, the following:
(a) For real estate consultants - fundamentals of
real estate consulting; standards and ethics; consulting tools and
techniques, which include project feasibility study and investment
measurement tools; real estate finance and economics; real estate
consulting and investment analyses; consulting for specific engagement,
which includes consulting for commercial, industrial, recreation and
resort and hotel properties, and consulting for government and corporate
and financial institutions; land management system and real property
laws; and any other related subjects as may be determined by the Board;
(b) For real estate appraisers - fundamentals of real
estate principles and practices; standards and ethics; theories and
principles in appraisal; human and physical geography; methodology of
appraisal approaches; valuation procedures and research; appraisal of
machinery and equipment; practical appraisal mathematics; appraisal
report writing; real estate finance and economics; case studies; land
management system and real property laws; and any other related subjects
as may be determined by the Board; and
(c) For real estate brokers - fundamentals of
property ownership; code of ethics and responsibilities; legal
requirements for real estate service practice; real estate brokerage
practice; subdivision development; condominium concept; real estate
finance and economics; basic principles of ecology; urban and rural land
use; planning, development and zoning; legal aspect of sale, mortgage
and lease; documentation and registration; real property laws; and any
other related subjects as may be determined by the Board.
To conform with technological and modern
developments, the Board may recluster, rearrange, modify, add to, or
exclude any of the foregoing subjects as may be necessary.
Section 14. Qualification of Applicants for Examinations.
- In order to be admitted to the licensure examination for real estate
service, a candidate shall, at the time of filing his/her application,
establish to the satisfaction of the Board that he/she possesses the
following qualifications:
(a) A citizen of the Philippines;
(b) A holder of a relevant bachelor's degree from a
state university or college, or other educational institution duly
recognized by the CHED: Provided, That as soon as a course
leading to a Bachelor's degree in Real Estate Service is implemented by
the CHED, the Board shall make this course a requirement for taking the
"licensure examination; and
(c) Of good moral character, and must not have been convicted of any crime involving moral turpitude: Provided,
That an applicant for the licensure examination for real estate
consultants must show proof that he/she has at least ten (10) years
experience as a licensed real estate broker or an assessor, or as a bank
or institutional appraiser or an employed person performing real
property valuation, or at least five (5) years experience as a licensed
real estate appraiser.
All applications for examination shall be filed with
the Board which shall assess and approve said applications and issue to
the qualified examinees the corresponding permits to take such
examination.
Section 15. Ratings in the Examination. - In order that a candidate may be deemed to have successfully passed the examination, he/she must have obtained an average of at least seventy-five percent (75%) in all subjects, with no rating below fifty percent (50%) in any subject.
Section 16. Release of the Results of Examination.
- The results of the licensure examination shall be released by the
Board within ten (10) days from the last day of the examination.
Section 17. Issuance of the Certificate of Registration and Professional Identification Card.
- A certificate of registration shall be issued to examinees who pass
the licensure examination for real estate service subject to payment of
fees prescribed by the Commission. The certificate of registration shall
bear the signature of the chairperson of the Commission and the
chairperson and the members of the Board, stamped with the official seal
of the Commission, indicating that the person named therein is entitled
to practice the profession with all the benefits and privileges
appurtenant thereto. This certificate of registration shall remain in
full force and effect until revoked or suspended in accordance with this
Act.
A professional identification card bearing the
registration number, date of issuance and expiry date, duly signed by
the chairperson of the Commission, shall likewise be issued to every
registrant upon payment of the required fees. The professional
identification card shall be renewed every three (3) years and upon
satisfying the requirements of the Board such as, but not limited to,
attendance in the CPE program.
Section 18. Refusal to Register. - The
Board shall not register and issue a certificate of registration to any
successful examinee who has been convicted by a court of competent
jurisdiction of any criminal offense involving moral turpitude or has
been found guilty of immoral or dishonorable conduct after investigation
by the Board, or has been found to be psychologically unfit.
Section 19. Revocation or Suspension of the
Certificate of Registration and the Professional Identification Card or
Cancellation of Special/Temporary Permit. - The Board may, after
giving proper notice and hearing to the party concerned, revoke the
certificate of registration and the professional identification card, or
cancel the special/temporary permit of a real estate service
practitioner, or suspend him/her from the practice of the profession on
any of the following instances hereunder:
(a) Procurement of a certificate of registration
and/or professional identification card, or special/temporary permit by
fraud or deceit;
(b) Allowing an unqualified person to advertise or to
practice the profession by using one's certificate of registration or
professional identification card, or special/temporary permit;
(c) Unprofessional or unethical conduct;
(d) Malpractice or violation of any of the provisions
of this Act, its implementing rules and regulations, and the Code of
Ethics and Responsibilities for real estate service practitioners; and
(e) Engaging in the practice of the profession during the period of one's suspension.
Section 20. Registration Without Examination,
- Upon application and payment of the required fees, the following
shall be registered, and shall be issued by the Board and the Commission
a certificate of registration and a professional identification card
without taking the prescribed examination:
(a) Those who, on the date of the effectivity of this
Act, are already licensed as real estate brokers, real estate
appraisers or real estate consultants by the Department of Trade and
Industry (DTI) by virtue of Ministry Order No. 39, as amended: Provided,
That they are in active practice as real estate brokers, real estate
appraisers and real estate consultants, and have undertaken relevant CPE
to the satisfaction of the Board;
(b) Assessors and appraisers who, on the date of the
effectivity of this Act, hold permanent appointments and are performing
actual appraisal and assessment functions for the last five (5) years,
have passed the Real Property Assessing Officer (RPAO) examination
conducted and administered by the Civil Service Commission (CSC) in
coordination with the Department of Finance (DOF), and have undertaken
relevant CPE to the satisfaction of the Board; and
(c) Assessors and appraisers who, on the date of the
effectivity of this Act, hold permanent appointments and have at least
ten (10) years actual experience in real property appraisal or
assessment and have completed at least one hundred twenty (120) hours of
accredited training on real property appraisal conducted by national or
international appraisal organizations or institutions/entities
recognized by the Board and relevant CPE to the satisfaction of the
Board.
Those falling under categories (b) and (c) shall
register with the Board after they shall have complied with the
requirements for registration as real estate appraisers: Provided, That those seeking to be licensed to a new credential level shall be required to take the pertinent licensure examination.
Those so exempt under the aforementioned categories
shall file their application within two (2) years from the effectivity
of this Act: Provided, That the renewal of the professional identification card is subject to the provisions of Section 17 hereof.
Section 21. Reinstatement, Reissuance or Replacement of Certificate of Registration, Professional Identification Card and Special/Temporary Permit. - The Board may, after the expiration of two (2) years from the date of revocation of a certificate of registration and/or professional identification card, and upon application, compliance with the required CPE units, and for reasons deemed proper and sufficient, reinstate any revoked certificate of registration and reissue a suspended professional identification card and in so doing, may, in its discretion, exempt the applicant from taking another examination.
A new certificate of registration, professional identification card or special/temporary permit may be issued to replace lost, destroyed or mutilated ones, subject to the rules as may be promulgated by the Board.
Section 22. Roster of Real Estate Service Practitioners.
- The Board, in coordination with the integrated professional
organization of real estate service practitioners, shall prepare, update
and maintain a roster of real estate service practitioners which shall
contain the names of all registered real estate service practitioners,
their residence and office addresses, license number, dates of
registration or issuance of certificates, and other data which.the Board
may deem pertinent. Copies thereof shall be made available to the
public upon request.
Section 23. Issuance of Special/Temporary Permit. - Upon application and payment of the required fees and. subject to the approval of the Commission, the Board may issue special/temporary permit to real estate service practitioners from foreign countries whose services are urgently needed in the absence or unavailability of local real estate service^ practitioners for the purpose of promoting or enhancing the practice of the profession in the Philippines.
Section 24. Foreign Reciprocity. - No foreign real estate service practitioner shall be admitted to the licensure examination or be given a certificate of registration or a professional identification card, or be entitled to any of the privileges under this Act unless the country of which he/she is a citizen specifically allows Filipino real estate service practitioners to practice within its territorial limits on the same basis as citizens of such foreign country.
ARTICLE IV
PRACTICE OF REAL ESTATE SERVICE
Section 25. Oath. - All successful examinees qualified for registration and all qualified applicants for registration without examination as well as accredited salespersons shall be required to take an oath before any member of the Board or any officer of the Commission duly authorized by the Commission to administer oaths prior to entering into the practice of real estate service in the Philippines.
Section 26. Professional Indemnity Insurance/Cash or Surety Bond. - All real estate brokers and private real estate appraisers shall, in addition to the oath referred to in the preceding section, be required to post a professional indemnity insurance/cash or surety bond, renewable every three (3) years, in an amount to be determined by the Board, which in no case shall be less than Twenty thousand pesos (P20,000.00), without prejudice to the additional requirement of the client.
Section 27. Acts Constituting the Practice of Real Estate Service. - Any single act or transaction embraced within the provisions of Section 3(g) hereof, as performed by real estate service practitioners, shall constitute an act of engaging in the practice of real estate service.
Section 28. Exemptions from the Acts Constituting the Practice of Real Estate Service. - The provisions of this Act and its rules and regulations shall not apply to the following":
(a) Any person, natural or juridical, who shall
directly perform by himself/herself the acts mentioned in Section 3
hereof with reference to his/her or its own property, except real estate
developers;
(b) Any receiver, trustee or assignee in bankruptcy or insolvency proceedings;
(c) Any person acting pursuant to the order of any court of justice;
(d) Any person who is a duly constituted
attorney-in-fact for purposes of sale, mortgage, lease or exchange, or
other similar contracts of real estate, without requiring any form of
compensation or remuneration; and
(e) Public officers in the performance of their official duties and functions, except government assessors and appraisers.
Section 29. Prohibition Against the Unauthorized Practice of Real Estate Service.
- No person shall practice or offer to practice real estate service in
the Philippines or offer himself/herself as real estate service
practitioner, or use the title, word, letter, figure or any sign tending
to convey the impression that one is a real estate service
practitioner, or advertise or indicate in any manner whatsoever that one
is qualified to practice the profession, or be appointed as real
property appraiser or assessor in any national government entity or
local government unit, unless he/she has satisfactorily passed the
licensure examination given by the Board, except as otherwise provided
in this Act, a holder of a valid certificate of registration, and
professional identification card or a valid special/temporary permit
duly issued to him/her by the Board and the Commission, and in the case
of real estate brokers and private appraisers, they have paid the
required bond as hereto provided.
Section 30. Positions in Government Requiring the Services of Registered and Licensed Real Estate Service Practitioners. - Within three (3) years from the effectivity of this Act, all existing and new positions in the national and local governments, whether career, permanent, temporary or contractual, and primarily requiring the services of any real estate service practitioner, shall be filled only by registered and licensed real estate service practitioners.
All incumbent assessors holding permanent appointments shall continue to perform their functions without need for re appointment and without diminution of status, rank and salary grade, and shall enjoy security of tenure. However, they may not be promoted to a higher position until they meet the qualification requirements of that higher position as herein prescribed. Nothing in this Act shall be construed to reduce any benefit, interest, or right enjoyed by the incumbents at the time of the enactment of this Act. The appointing authority shall exercise his power to appoint the assessor in accordance with the provisions of this Act only when a vacancy occurs.
Section 31. Supervision of Real Estate Salespersons. - For real estate salespersons, no examination shall be given, but they shall be accredited by the Board: Provided, That they have completed at least two (2) years of college and have undergone training and seminars in real estate brokerage, as may be required by the Board. Real estate salespersons shall be under the direct supervision and accountability of a real estate broker. As such, they cannot by themselves be signatories to a written agreement involving a real estate transaction unless the real estate broker who has direct supervision and accountability over them is also a signatory thereto. No real estate salesperson, either directly or indirectly, can negotiate, mediate or transact any real estate transaction for and in behalf of a real estate broker without first securing an authorized accreditation as real estate salesperson for the real estate broker, as prescribed by the Board. A real estate broker shall be guilty of violating this Act for employing or utilizing the services of a real estate salesperson when he/she has not secured the required accreditation from the Board prior to such employment.
No salesperson shall be entitled to receive or demand a fee, commission or compensation of any kind from any person, other than the duly licensed real estate broker who has direct control and supervision over him, for any service rendered or work done by such salesperson in any real estate transaction.
No violation of this provision shall be a cause for revocation or suspension of the certificate of registration of the real estate broker unless there was actual knowledge of such violation or the broker retains the benefits, profits or proceeds of a transaction wrongfully negotiated by the salesperson.
Section 32. Corporate Practice of the Real Estate Service.
(a) No partnership or corporation shall engage in the
business of real estate service unless it is duly registered with the
Securities and Exchange Commission (SEC), and the persons authorized to
act for the partnership or corporation are all duly registered and
licensed real estate brokers, appraisers or consultants, as the case may
be. The partnership or corporation shall regularly submit a list of its
real estate service practitioners to the Commission and to the SEC as
part of its annual reportorial requirements. There shall at least be one
(1) licensed real estate broker for every twenty (20) accredited
salespersons.
(b) Divisions or departments of partnerships and
corporations engaged in marketing or selling any real estate development
project in the regular course of business must be headed by full-time
registered and licensed real estate brokers.
(c) Branch offices of real estate brokers, appraisers
or consultants must be manned by a duly licensed real estate broker,
appraiser or consultant as the case may be.
In case of resignation or termination from employment
of a real estate service practitioner, the same shall be reported by
the employer to the Board within a period not to exceed fifteen (15)
days from the date of effectivity of the resignation or termination.
Subject to the provisions of the Labor Code, a
corporation or partnership may hire the services of registered and
licensed real estate brokers, appraisers or consultants on commission
basis to perform real estate services and the latter shall be deemed
independent contractors and not employees of such corporations.
Section 33. Display of License in the Place of Business.
- Every registered and licensed real estate service practitioner shall
establish and maintain a principal place of business and such other
branch offices as may be necessary, and shall conspicuously display
therein the original and/or certified true copies of his/her certificate
of registration as well as the certificates of registration of all the
real estate service practitioners employed in such office.
Section 34. Accreditation and Integration of Real Estate Service Associations. - All real estate service associations shall be integrated into one (1) national organization, which shall be recognized by the Board, subject to the approval of the Commission, as the only accredited and integrated professional organization of real estate service practitioners.
A real estate service practitioner duly registered
with the Board shall automatically become a member of the accredited and
integrated professional organization of real estate service
practitioners, and shall receive the benefits and privileges appurtenant
thereto. Membership in the accredited and integrated professional
organization of real estate service practitioners shall not be a bar to
membership in other associations of real estate service practitioners.
Section 35. Code of Ethics and Responsibilities for Real Estate Service Practitioners. - The Board shall adopt and promulgate the Code of Ethics and Responsibilities for real estate service practitioners which shall be prescribed and issued by the accredited and integrated professional organization of real estate service practitioners.
Section 36. Continuing Professional Education (CPE) Program. - The Board shall develop, prescribe and promulgate guidelines on CPE upon consultation with the accredited and integrated professional organization of real estate service practitioners, affiliated association of real estate service practitioners and other concerned sectors, and in accordance with such policies as may have been prescribed by the Board, subject to the approval of the Commission. The Board shall create a CPE Council that shall be composed of a chairperson coming from the Board, a member from the accredited and integrated professional organization of real estate service practitioners and a member from the academe.
Section 37. Enforcement Assistance to the Board. - The Board shall be assisted by the Commission in carrying out the provisions of this Act and its implementing rules and regulations and other policies. The lawyers of the Commission shall act as prosecutors against illegal practitioners and other violators of this Act and its rules. The duly constituted authorities of the government shall likewise assist the Board and the Commission in enforcing the provisions of this 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 shall be required to indicate the certificate of registration, professional identification card, PTR number, and APO receipt number, and the date of issuance and the duration of validity on the documents he/she signs, uses or issues in connection with the practice of his/her profession.
ARTICLE V
PENAL AND FINAL PROVISIONS
Section 39. Penal Provisions, - Any violation of this Act, including violations of implementing rules and regulations, shall be meted the penalty of a fine of not less than One hundred thousand pesos (P100,000.00) or imprisonment of not less than two (2) years, or both such fine and imprisonment upon the discretion of the court. In case the violation is committed by an unlicensed real estate service practitioner, the penalty shall be double the aforesaid fine and imprisonment.
In case the violation is committed, by a partnership,
corporation, association or any other juridical person, the partner,
president, director or manager who has committed or consented to or
knowingly tolerated such violation shall be held directly liable and
responsible for the acts as principal or as a co-principal with the
other participants, if any.
Section 40. Appropriations. - The chairperson of the Professional Regulation Commission shall immediately include in the Commission's programs the implementation of this Act, the funding of which shall be included in the annual General Appropriations Act and thereafter.
Section 41. Transitory Provision. - Within ninety (90) days from the effectivity of this Act, the DTI - Bureau of Trade Regulation and Consumer Protection (BTRCP) shall transfer all pertinent records, documents and other materials to the Professional Regulatory Board of Real Estate Service.
Section 42. Implementing Rules and Regulations. - Within six (6) months after the effectivity of this Act, the Commission, together with the Board and the accredited and integrated professional organization of real estate service practitioners, the Department of Finance, and the CHED, shall prepare the necessary rules and regulations, including the Code of Ethics and Responsibilities for real estate service practitioners, needed to implement the provisions of this Act.
Section 43. Separability Clause. - If any clause, sentence, paragraph or part of this Act shall be declared unconstitutional or invalid, such judgment shall not affect, invalidate or impair any other part of this Act.
Section 44. Repealing Clause.
(a) Sections 3(e) and (ee) of Act No. 2728, as
amended by Act No. 3715 and Act No. 3969, Sections 472 and 473 of the
Local Government Code of 1991 (Republic Act No. 7160), and pertinent
provisions of the Civil Service Law are hereby modified accordingly.
(b) All laws, decrees, executive orders, department
or memorandum orders and other administrative issuances or parts thereof
which are inconsistent with the provisions of this Act are hereby
modified, superseded or repealed accordingly.
Section 45. Effectivity. - This Act shall take effect fifteen (15) days following its publication in the Official Gazette or in a major daily newspaper of general circulation in the Philippines.
Approved.
(Sgd.) JUAN PONCE ENRILE
President of the Senate
(Sgd.) PROSPEROC. NOGRALES
Speaker of the House of Representatives
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This Act which is a consolidation of Senate Bill
No. 2963 and House Bill No. 3514 was finally passed by the Senate and
the House of Representatives on May 12, 2009.
(Sgd.) EMMA LIRIO-REYES
Secretary of Senate
(Sgd.) MARILYN B. BARUA- YAP
Secretary General, House of Represenatives
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(Sgd.) GLORIA MACAPAGAL-ARROYO
President of the Philippines
President of the Philippines
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