RESA

REPUBLIC ACT NO. 9646 T

H E

E A L

S T A T E

E R V I C E

C T

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 & for Other Purposes

T HE R EAL E STATE S ERVICE A CT (RESA)

Now R.A. No. 9646

Signed 29 Jun 09 Published 15 Jul 09

(Philippine Daily Inquirer)

Regulatory law on the practice of real estate service in the Philippines Professionalizes & regulates practitioners through the Professional Regulation Commission: Real estate consultants Real estate appraisers
(including LGU assessors &NGA appraisers)

9646

Brokers

overview
THE RESA LAW

R ATIONALE
Real property is a vital driver of the economy Professionalization & regulation essential for
Stimulating the land market Encouraging investments Revenue generation by the government Sound decision making of property owners Better policy making & governance Protection of public, etc.

Real estate practice is a profession with multidisciplinary body of knowledge Gearing towards international best practices

R ATIONALE
Valuation/appraisal: core of professionalization
Covers a broad range of property types in varied geographical & economic conditions Results of such highly technical work provide the basis for decisions with regard to property sales, expropriation compensation, mortgage financing, assessment of taxes, etc.

Consultancy as an expert level of practicing valuation and/or brokerage Brokerage facilitates transactions of parties Profession requires technical competence/ continuing education & confidence of the public

W HY P ROFESSIONALIZE LGU A SSESSORS ?

They are appraisers who also perform assessment function essentially for LGU taxation purposes

A very large group, larger than private appraisers: physical presence all over the country outputs are complex, voluminous & varied Perform sensitive functions within a unique & highly politicized environment
Output is crucial & critical to the viability of LGUs as they directly affect local revenues & national income Professionalization will provide them continuing technical education & training geared to global standards

S TATE P OLICY

(ARTICLE I. SEC. 2)

1. State recognizes vital role of the profession in

the social, political, economic development and progress of the country

2. State to develop and nurture a corps of technically competent, responsible and respected professionals through proper and
effective regulation and supervision

3. State to promote standards of practice and service to be globally competitive and the growth of the real estate industry

salient provisions
THE RESA LAW

ACTS CONSTITUTING REAL ESTATE SERVICE PRACTICE

CONSULTANT Render professional advice & judgment on the acquisition, enhancement, preservation, utilization or disposition of lands or improvements thereon, & the conception, planning, management & development of real estate projects Performs or renders, or offers to perform services in estimating & 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 Performs appraisal & assessment of real properties, including plants, equipment, & machineries, essentially for taxation purposes

APPRAISER

ASSESSOR

BROKER

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 Performs service for, & in behalf of, a real estate broker for or in expectation of a share in the commission, professional fee, compensation, or other valuable consideration

SALES PERSON

- ARTICLE I. SEC. 3G

T HE P ROFESSIONAL B OARD
Board Creation/Composition (Sec. 4) to be organized within 6 mos. Appointment by the President from 3 recommendees chosen by PRC 2 members shall represent the govt. assessor & appraisers Term of Office (Sec. 7)
3 years each; re-appointment not to exceed 6 consecutive years First Board: Chairman: 3 years; First 2 members: 2
years; 2 other members: 1 year

Compensation /Allowances (Sec. 8)

based on existing rates of other Boards

Suspension/Removal from the Board (Sec. 9)

by the President, upon PRC recommendation
- for neglect of duty, abuse of power, oppression, incompetence, etc., or for conviction of any criminal offense involving moral turpitude.

Board to submit annual report to PRC detailing all accomplishment (Sec. 11) PRC to supervise the Board and provide secretariat and enforcement assistance
(Sec. 10 & Sec. 37)

KEY POWERS & FUNCTIONS OF THE BOARD (ARTICLE II. SEC. 5)

Policy guidance Licensure examinations; prescription of appropriate syllabi Issuance, suspension, revocation or reinstatement of certificates of registration or PRC ID Monitor and enhance the practice of the profession; maintain high professional, ethical/technical standards Adopts a Code of Ethics & Responsibilities (Sec. 35) Hear and investigate violations: quasi-judicial & admin powers Safeguard & protect legitimate practitioners Prescribe academic requirements for course offering; CPE program; accredits seminars, lecturers, etc. Supervise APO & related associations

QUALIFICATIONS OF CHAIR & BOARD MEMBERS (ARTICLE II. SEC. 6)

Filipino citizen; resident of the Philippines Bachelors Degree related to real estate

active practice for at least 10 years prior to appointment

bona fide member of the APO but not an officer or trustee at the time of appointment neither a faculty member of any academic institution nor have any pecuniary interest in any group where review classes or lectures are offered or conducted good moral character, not convicted of a criminal offense

LICENSURE EXAMINATION & REGISTRATION (ARTICLE III)

SCOPE OF EXAMINATION
(ARTICLE III. SEC. 13)

75% PASSING RATE IN ALL SUBJECTS; N O G R A D E I N A N Y S U B J E C T B E L O W 5 0 % (ARTICLE III. SEC. 15) 1 0 D A Y S R E L E A S E O F E X A M R E S U L T S (ARTICLE III. SEC. 16)

QUALIFICATIONS OF APPLICANTS FOR EXAM (ARTICLE III. SEC. 14)

Filipino citizenship Relevant bachelors degree (a Bachelor's degree in Real
Estate Service shall be a requirement upon its implementation by the CHED)

Of good moral character & must not have been convicted of any crime involving moral turpitude

For real estate consultants:

At least 10 years experience in either capacity as a licensed real estate broker, an assessor, or as a bank or institutional appraiser or an employed person performing RP valuation At least 5 years experience as an appraiser

CERTIFICATE OF REGISTRATION & PRC ID (ARTICLE II. SEC. 17)

Photo
NAME OF PROFESSIONAL BOARD
TITLE OF PROFESSION

Photo

NAME OF PROFESSIONAL

TITLE OF PROFESSION

PRC ID renewable every 3 years satisfy Board requirements, i.e. CPE to be displayed in the place of business (ARTICLE IV. SEC. 33) Practitioners to indicate license information (APO/PTR numbers/date of issuance) on documents he/she signs (ARTICLE III. SEC. 38)

REVOCATION OF PRC ID & CERTIFICATE (ARTICLE II. SEC. 19)

fraudulent/deceitful procurement of a certificate of registration &/or PRC ID, or special temporary permit advertisement of unqualified person using somebody elses certificate, PRC ID, or special temporary permit unprofessional or unethical conduct malpractice or violation of RESA, its IRR, & the Code of Ethics & Responsibilities

Practice of profession while under suspension

REGISTRATION WITHOUT EXAMINATION (ARTICLE II. SEC. 20)

A

Those already licensed as real estate brokers, real estate appraisers or real estate consultants by the DTI under Ministry Order No. 39

They are in active practice as brokers, appraisers & consultants Have undertaken relevant CPE to the satisfaction of the Board

Assessors & appraisers who hold permanent appointment & are performing actual appraisal & assessment functions for the last 5 years

Passed the RPAO Examination Have undertaken relevant CPE to the satisfaction of the Board

Assessors & appraisers who hold permanent appointment & have at least 10 years experience in real property appraisal or assessment

Have completed 120 hours of accredited training Have undertaken relevant CPE to the satisfaction of the Board

Application shall be within 2 years from the effectivity of RESA Renewal of the PRC ID is subject to the provisions of Section 17 B & C shall comply w/ the requirements for registration as RE appraisers Those seeking to be licensed to a new credential level shall be required to take the pertinent licensure examination

FOREIGN PRACTITIONERS
Foreign Reciprocity Principle (ARTICLE III. SEC. 24) Foreign practitioners, whose governments admit Filipinos to practice the profession in their countries, will be allowed to practice the profession in the Philippines

Special/Temporary Permit (ARTICLE III. SEC. 23) Applicable for foreign practitioners whose services are urgently needed in the absence or unavailability of local practitioners

practice of real estate service

THE RESA LAW

OTHER REQUIREMENTS
RTICLE EC

TO PRACTICE PROFESSION (ARTICLE IV)

OATH (A IV, S . 25) Applies to all qualified examinees, applicants for registration without examination, and accredited salespersons PROFESSIONAL INDEMNITY INSURANCE/BOND (A IV, S . 26) Applicable only to private sector practitioners - Additional requirement for licensure/renewal Amount to be determined by the Board, but not less than Php20,000.00 Client may require additional bond/insurance Renewable every 3 years
RTICLE EC

E XEMPTIONS

FROM THE

P RACTICE (A

RTICLE

IV. SEC. 28)

any person who shall directly perform the acts of real estate service upon own property, except real estate developers receivers, trustees or assignees in bankruptcy/insolvency proceedings persons acting pursuant to the order of the court

attorney-in-fact on sale, mortgage, lease or exchange, or other similar acts on real estate, without compensation or remuneration in any form
public officers while performing their official duties & functions, except government assessors & appraisers

PROHIBITIONS A GAINST UNAUTHORIZED PRACTICE

PRIVATE PRACTICE No license + bond = no practice/advertisement of profession (ARTICLE IV. SEC. 29) GOVERNMENT PRACTICE
No license = no appointment as real property appraiser or assessor in any NG entity or LGU (ARTICLE IV. SEC. 29) Within 3 years, all existing & new NG & LGU positions, whether career, permanent, temporary or contractual shall be filled only by registered & licensed practitioners (SEC. 30) Incumbent assessors/assistant assessors with permanent appointments shall continue to perform functions without reappointment, diminution of status, rank & salary grade, & shall enjoy security of tenure. Not be promoted to a higher
position until they meet the qualification requirements of the higher position.

S UPERVISION

OF

S ALES P ERSONS

(ARTICLE IV. SEC. 31)

accreditation only 2 years college trainings & seminars in real estate brokerage direct supervision & accountability brokers cannot sign transaction documents, co-signed by a licensed broker

not entitled to receive or demand a fee, commission or compensation of any kind from any person, other than the broker

C ORPORATE P RACTICE
SEC registration

(ARTICLE IV. SEC. 32)

Persons acting for the partnership or corporation should all be duly registered & licensed practitioners 1 Broker for every 20 accredited salespersons Divisions or departments engaged in marketing or selling any real estate development project must be headed by full time registered & licensed brokers Branch offices must be manned by licensed practitioners May hire the services of registered & licensed practitioners on commission basis as independent contractors & not as employees

ACCREDITATION & INTEGRATION (A

All real estate service associations to be integrated into 1 national organization as the only accredited & integrated professional organization of practitioners Automatic membership to the integrated organization Is not a bar to membership in other associations

RTICLE

IV. SEC. 34)

CONTINUING PROFESSIONAL EDUCATION (A

Board will develop, prescribe, & promulgate CPE program & guidelines In consultation with the integrated professional organization & other concerned sectors CPE council

RTICLE

IV. SEC. 36)

CPE Council

penal & final provisions

THE RESA LAW

P ENAL & F INAL P ROVISIONS

Penal Provisions (SEC. 39)

OF

RESA (A

RTICLE

V)

Fine - not < Php100,000.00; Imprisonment - < than 2 years Offense committed by unlicensed practitioner, penalty double fine & imprisonment Corporate offense: covers those consented to or tolerated the violation

Appropriations for the Board (SEC. 40)

Funding requirement of RESA - GAA

Transitory Provision (SEC. 41)

DTI-BTRCP to transfer records & documents to PRC w/in 90 days

IRR (SEC. 42)

Shall be prepared w/in 6 mos by the Board, APO, DOF & CHED

Repealing Clause (SEC. 44)

Act Nos. 2728, 3715, & 3969 granting DTI the regulation of the practice RA 7160 (Secs. 472 & 473) and pertinent provisions of CSC law

Effectivity (SEC. 45)

Takes effect 15 days after publication in the Official Gazette or in a major daily newspaper of general circulation

RESA Implementation Updates

THE RESA LAW

THE INTERIM ACCREDITED PROFESSIONAL ORGANIZATION (APO)

October 22, 2009 PRC met with LAMP-BLGF and the public and private sector RESPs associations for the organization of the Federation of Real Estate Service Associations (FRESA)

FIRST MEETING OF FRESA FOR THE ELECTION OF

OFFICERS

(1) technical assistance in the establishment of the interim FRESA; and (2) support FRESA in the selection of nominees to the Board from the government and private sectors and for submission to the PRC.

MEETING WITH P RIVATE SECTOR B UILDERS

The Subdivision and Housing Developers Association (SHDA) met with the Advocacy Team on January 28, 2010 to discuss concerns on RESA

MEETING

WITH THE C IVIL SERVICE APPLICATION OF THE GRANDFATHER

COMMISSION (CSC) CLAUSE

ON THE

Meeting with CSC Chairman Francisco Duque III on February 11, 2010, on the implementation of RESA

LAMP Assistance
THE RESA LAW

L AMP ASSISTANCE ON RESA IMPLEMENTATION

TAs for formulation of IRR TA for development of licensure examination Nationwide RESA dissemination

Thank You!