QuestionsQuestions (Republic Act No. 9646)
RA 9646 is the “Real Estate Service Act of the Philippines.” The State recognizes the vital role of real estate service practitioners in national development and shall promote proper regulation and supervision to develop technically competent, responsible, and respected practitioners with globally competitive standards.
They include: real estate consultant, real estate appraiser, real estate assessor, real estate broker, and real estate salesperson.
A real estate broker is a duly registered and licensed person who, for a commission, acts as an agent to offer, advertise, solicit, list, promote, mediate, negotiate, or effect the meeting of minds in real estate transactions. A real estate salesperson is an accredited natural person who performs service for and in behalf of a licensed real estate broker for or in expectation of a share in commission/compensation.
The Board is under PRC supervision/administrative control and is composed of a chairperson and four members appointed by the President from recommendees of the PRC. Two members represent government assessors and appraisers.
Examples include: (1) conduct licensure examinations and prescribe syllabi; (2) issue/suspend/revoke/reinstate certificates of registration/IDs; (3) maintain an updated register of licensed practitioners; (4) adopt a national Code of Ethics; (5) investigate violations and issue subpoenas; plus others such as enforcing rules, regulating education/CPE, and monitoring advertisements to eradicate unlicensed practice.
They must be (among others): Philippine citizens and residents; holders of a related bachelor’s degree; active licensed real estate service practitioners for at least 10 years; bona fide members in good standing of the integrated accredited organization but not officers/trustees at appointment; not faculty and without pecuniary interest in review centers; and of good moral character with no final conviction of a crime involving moral turpitude.
Applicants seeking registration and licensure as real estate service practitioners (except salespersons) must undergo an examination. Real estate salespersons have accreditation (no exam). Also, certain existing practitioners may be registered without taking the prescribed examination, subject to conditions in the Act.
A candidate must obtain an average of at least 75% in all subjects, with no rating below 50% in any subject.
The Board shall not register if the person was convicted of a criminal offense involving moral turpitude, found guilty of immoral/dishonorable conduct, or found psychologically unfit after investigation.
After due notice and hearing, the Board may do so for: (1) procurement by fraud/deceit; (2) allowing an unqualified person to advertise/practice using one’s credentials; (3) unprofessional/unethical conduct; (4) malpractice or violation of the Act/IRR/Code of Ethics; and (5) engaging in practice during the suspension period.
They must post professional indemnity insurance/cash/surety bond, renewable every three years, in an amount determined by the Board but not less than PHP 20,000, without prejudice to additional client requirements.
Any single act or transaction embraced within Section 3(g) (as described in the Act’s definition of covered activities) when performed by a real estate service practitioner constitutes an act of engaging in real estate service.
No person may practice or offer to practice real estate service in the Philippines, or use titles/signs implying one is a practitioner, or advertise indicating qualification, unless licensed/registered with required bond (for brokers/private appraisers) and possessing a valid certificate and professional identification card/special permit, unless otherwise provided.
Salespersons cannot be signatories to a written agreement involving a real estate transaction unless the supervising real estate broker is also a signatory. They cannot negotiate/mediate/transact for a broker without the required authorized accreditation. A broker violates the Act for employing/utilizing a salesperson without required accreditation.
No partnership or corporation may engage in real estate service unless duly registered with the SEC and the persons authorized to act are licensed practitioners (broker/appraiser/consultant as applicable). It must submit lists of practitioners annually. Marketing/sales divisions for development projects must be headed by full-time licensed real estate brokers; branch offices must be manned by licensed practitioners; and at least one licensed real estate broker must be present for every 20 accredited salespersons.
Any violation (including IRR violations) is penalized by a fine not less than PHP 100,000 or imprisonment not less than two years, or both. If committed by an unlicensed practitioner, the fine and imprisonment are doubled. For juridical persons, specified responsible officers (partner/president/director/manager) are held directly liable with principal/co-principal participation.