Real Estate Service Act (RESA) of 2009 or R.A. 9646
What is Real Estate Service? What constitutes as an act of engaging in the practice of real estate service?
SEC. 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.
What is a real estate service practitioner? What is a Real Estate Broker (REB)? What is a Real Estate Salesperson (RES)?
SEC. 3. Definition of Terms. – As used in this Act, the following terms shall mean:
(g) “Real estate service practitioners” shall refer to and consist of the following:
(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.
What is not allowed by RESA?
SEC. 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.
Under what circumstances can a Certificate of Registration and Professional Identification Card be revoked or suspended?
SEC. 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) Allowing an unqualified person to advertise or to practice the profession by using one’s certficate of registration or professional identification card, or special/temporary permit;
(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
SEC. 28. Exemptions from the Acts Constit&ng the Practice of Real Estate Service. .- The provisions of this Act and its rules and regulations shall not apply to the following: SEC. 26. (a) Any person, natural or juridical, who shall directly perform by himselfherself the acta mentioned in Section 3 hereof with reference to his/her or its own property, except real estate developers; I5 (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 o!her 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.
SEC. 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 thembelves 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 ~hdirectly, can negotiate, mediate or transact any real estate transaction for and in behalf of a real estate broker without first securing an authorized accreditation ae 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. .~ 17
SEC. 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 -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.
SEC. 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 (PhPl00,000.00) 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.