Regulation of Real Estate Service Practice in PH

Board creation and structure

Section 4 creates a Professional Regulatory Board of Real Estate Service (“Board”) under the supervision and administrative control of the Professional Regulation Commission (“Commission”).
The Board consists of a chairperson and four (4) members appointed by the President from three (3) recommendees chosen by the Commission from five (5) nominees per position submitted by the accredited and integrated professional organization of real estate service practitioners.
Two (2) Board members must represent government assessors and appraisers.
The first Board must be organized within six (6) months from the effectivity of the Act.
The chairperson and members must meet qualifications under Section 6, including Filipino citizenship, a related bachelor's degree in real estate, at least ten (10) years active licensed practice, good moral character, and restrictions on faculty membership and pecuniary interests in licensure review settings.
Board members hold office for three (3) years under Section 7, with limits on continuous service of no more than six (6) years, and with vacancy appointments for the unexpired portion of the term.

Board powers, supervision, and reporting

The Board must set comprehensive policy guidelines to promote and develop the real estate industry (Section 5).
The Board must conduct licensure examinations at least once every year, and prescribe subject syllabi.
The Board must issue, suspend, revoke, or reinstate certificates of registration/professional identification cards after due notice and hearing.
The Board must maintain a comprehensive and updated register of licensed real estate service professionals.
The Board must adopt a national Code of Ethics and Responsibilities for strict observance by licensed practitioners.
The Board must investigate violations of the Act, implementing rules, and the Code, and issue subpoena and subpoena duces tecum to secure witnesses and document production.
The Board must safeguard legitimate licensed practitioners and, in coordination with the accredited and integrated professional organization, monitor real estate advertisements and other promotional materials, exercising quasi-judicial and administrative powers to eradicate unauthorized or unlicensed practice.
The Board must prescribe curriculum and facility requirements for schools/colleges/universities seeking to open or maintain real estate service academic courses, and ensure compliance including qualified faculty.
The Board must promulgate and enforce necessary rules, supervise registration/licensure/practice, and assess/fix reasonable regulatory fees.
The Board must administer oaths and affirmations, adopt an official seal, and evaluate education/profession status for upgrades.
The Board must implement and manage the Continuing Professional Education (CPE) program through guidelines, permits for seminars, monitoring of accredited seminars and lecturers, and supervision of accredited integrated organizations and associations.
Board issuances (policies/resolutions/rules) require Commission review and approval; Board decisions/orders that are not interlocutory and are issued in administrative cases are reviewable by the Commission only on appeal.
Section 10 requires that Board records—including applications, exam papers/results, minutes, and investigative cases—are kept by the Commission, which must designate the Board secretary and provide secretariat and support services.

Licensure examination, passing rates, and registration

Section 12 requires licensure examination for applicants seeking registration and license as real estate service practitioners, except real estate salespersons.
The Board conducts examinations in locations and dates designated by the Commission, at least once every year.
Section 13 requires examination coverage for: real estate consultants, real estate appraisers, and real estate brokers, including fundamentals, ethics, specialized subject matter (e.g., appraisal theory and methodology; brokerage practice; subdivision and condominium concepts), legal requirements, and other related subjects determined by the Board.
The Board may recluster, rearrange, modify, add to, or exclude examination subjects for technological and modern developments.
Section 14 sets applicant qualifications at time of filing:
- Filipino citizenship.
- A relevant bachelor’s degree from a state university or college or other CHED-recognized educational institution.
- Good moral character and no conviction for a crime involving moral turpitude.
For real estate consultants, applicants must show proof of at least ten (10) years experience as a licensed real estate broker or an assessor, or as a bank/institutional appraiser or an employed person performing real property valuation, or at least five (5) years experience as a licensed real estate appraiser.
The Board must assess and approve examination applications and issue permits to qualified examinees.
Section 15 sets passing requirements: an average of at least seventy-five percent (75%) across all subjects, with no rating below fifty percent (50%) in any subject.
Section 16 requires release of examination results within ten (10) days from the last day of the examination.
Section 17 provides certificate issuance upon passing, subject to payment of fees prescribed by the Commission, and requires a certificate bearing specified signatures and the Commission’s official seal.
Section 17 also requires a professional identification card with registration number, issuance date, and expiry date, signed by the Commission chairperson, renewed every three (3) years upon Board satisfaction of requirements including CPE attendance.
Section 18 prohibits registration issuance if the successful examinee has been convicted of any crime involving moral turpitude, found guilty of immoral or dishonorable conduct after Board investigation, or found psychologically unfit.

Registration without exam, renewal periods, and discipline

Section 19 authorizes the Board, after notice and hearing, to revoke or suspend certificates/cards or cancel special/temporary permits for grounds including fraud or deceit in procurement; allowing unqualified persons to advertise or practice using one’s credential; unprofessional or unethical conduct; malpractice or violation of the Act/IRR/Code of Ethics; and practicing during the period of suspension.
Section 20 allows registration without examination upon application and payment of required fees for:
- Those already licensed by the Department of Trade and Industry (DTI) by virtue of Ministry Order No. 39, as amended, who are in active practice and have undertaken relevant CPE to the satisfaction of the Board.
- Assessors/appraisers with permanent appointments performing actual appraisal/assessment for the last five (5) years, who passed the Real Property Assessing Officer (RPAO) examination by the Civil Service Commission (CSC) in coordination with the Department of Finance (DOF), and who have undertaken relevant CPE.
- Assessors/appraisers with permanent appointments, with at least ten (10) years actual experience in real property appraisal or assessment, plus completion of at least one hundred twenty (120) hours of accredited training on real property appraisal conducted by national or international appraisal organizations/institutions/entities recognized by the Board, and relevant CPE.
For categories under Section 20, persons seeking a new credential level must take the pertinent licensure examination.
Those under the exempt categories in Section 20 must file their application within two (2) years from the effectivity of the Act.
Renewal of the professional identification card remains subject to Section 17 requirements.
Section 21 allows reinstatement/reissuance/replacement:
- After expiration of two (2) years from revocation, applicants may apply for reinstatement of a revoked certificate and reissue of a suspended identification card upon CPE compliance and for reasons deemed proper and sufficient; the Board may exempt the applicant from taking another examination.
- Replacement for lost, destroyed, or mutilated credentials is allowed subject to Board rules.
Section 22 requires the Board, in coordination with the accredited integrated organization, to prepare, update, and maintain a public roster containing names, addresses, license numbers, registration/issuance dates, and other pertinent data, with copies available to the public upon request.

Practice rules, licensing limits, and compliance obligations

Section 25 requires successful examinees for registration and qualified applicants for registration without examination, and accredited salespersons, to take an oath before the Board or any duly authorized Commission officer before practicing.
Section 26 requires real estate brokers and private real estate appraisers to post professional indemnity insurance/cash or surety bond, renewable every three (3) years, in an amount determined by the Board but not less than P20,000.00, without prejudice to additional client requirements.
Section 27 provides that any single act or transaction embraced within the Act’s defined practice activities (under Section 3(g)) constitutes engaging in the practice of real estate service when performed by qualified practitioners.
Section 28 exempts certain persons/acts from the Act’s applicability, including actions for one’s own property by those who are not real estate developers; receivers/trustees/assignees in bankruptcy or insolvency proceedings; actions pursuant to court orders; attorneys-in-fact for sale/mortgage/lease/exchange contracts without compensation/remuneration; and public officers performing official duties, except government assessors and appraisers.
Section 29 prohibits any person from practicing or offering to practice real estate service in the Philippines, holding themselves out or using titles/letters/signs suggesting they are real estate service practitioners, or advertising indicating qualification, or being appointed as real property appraiser or assessor in any national government or local government unit unless they hold required credentials (licensure examination pass, or valid certificate/professional identification card, or valid special/temporary permit) and, for brokers and private appraisers, have paid the required bond—except as otherwise provided in the Act.
Section 30 mandates that within three (3) years from the Act’s effectivity, all existing and new government positions in national and local governments primarily requiring real estate service practitioners must be filled only by registered and licensed real estate service practitioners.
Section 30 protects incumbent assessors holding permanent appointments: they continue without need for reappointment and without diminution of status/rank/salary grade and enjoy security of tenure, but cannot be promoted to higher positions unless they meet qualification requirements for those higher positions; appointing authority appoints only under the Act when vacancies occur.
Section 31 governs real estate salespersons:
- No examination is required; they must be accredited by the Board after completing at least two (2) years of college and undergoing training/seminars in real estate brokerage as required by the Board.
- Salespersons must be under the direct supervision and accountability of a real estate broker; they cannot be sole signatories to transaction agreements unless the broker who supervises them is also a signatory.
- Salespersons cannot negotiate/mediate/transact for a broker without authorized accreditation as real estate salesperson for that broker.
- Brokers violate the Act when employing/utilizing salespersons without required accreditation.
- Salespersons cannot demand or receive any fee/commission/compensation from any person other than the licensed real estate broker who directly controls and supervises them for services in any real estate transaction.
- No violation by a salesperson is a cause to revoke/suspend the broker’s certificate of registration unless there was actual knowledge of the violation or the broker retains benefits/proceeds from a wrongfully negotiated transaction.
Section 32 regulates corporate/partnership practice and minimum staffing:
- No partnership or corporation may engage in real estate service unless duly registered with the Securities and Exchange Commission (SEC) and persons authorized to act are all duly registered and licensed real estate brokers, appraisers, or consultants as applicable.
- Partnerships/corporations must regularly submit a list of their real estate service practitioners to the Commission and the SEC as part of annual reportorial requirements.
- There must be at least one (1) licensed real estate broker for every twenty (20) accredited salespersons.
- Marketing/selling divisions or departments must be headed by full-time registered and licensed real estate brokers.
- Branch offices must be manned by a duly licensed real estate broker/appraiser/consultant as applicable.
- Employers must report resignation or termination of a real estate service practitioner to the Board within a period not to exceed fifteen (15) days from effectivity of resignation/termination.
- Under the Labor Code framework, corporations/partnerships may hire on commission basis; the practitioner is deemed an independent contractor and not an employee.
Section 33 requires every registered and licensed practitioner to establish/maintain a principal place of business and necessary branch offices and to conspicuously display original and/or certified true copies of certificates, including certificates of practitioners employed.
Section 34 provides that real estate service associations must be integrated into one (1) national organization recognized by the Board and approved by the Commission as the only accredited and integrated professional organization; registered practitioners automatically become members and still may join other associations.
Section 35 requires the Board to adopt and promulgate the Code of Ethics and Responsibilities, which is prescribed and issued by the accredited and integrated professional organization.
Section 36 requires the Board to develop CPE guidelines upon consultation and to create a CPE Council composed of a chairperson from the Board, a member from the accredited integrated professional organization, and a member from the academe.
Section 37 provides enforcement assistance:
- The Board is assisted by the Commission.
- Commission lawyers act as prosecutors against illegal practitioners and other violators.
- Government authorities assist in enforcement.
Section 38 requires practitioners to indicate specified credential/tax identifiers (certificate of registration, professional identification card, PTR number, APO receipt number), issuance date, and validity duration on documents they sign/use/issue in connection with practice.
Section 23 permits special/temporary permits for foreign practitioners urgently needed due to absence/unavailability of local practitioners, subject to application, required fees, and approval of the Commission.
Section 24 requires reciprocity: no foreign practitioner is admitted to licensure examination, issued certificates/cards, or entitled to privileges unless their country specifically allows Filipino real estate service practitioners to practice within its territorial limits on the same basis.

Oath, insurance bond, and ethics enforcement

Section 25 mandates an oath requirement before entering practice for successful examinees, qualified registrants without exam, and accredited salespersons.
Section 26 mandates indemnity insurance/cash/surety bond for real estate brokers and private real estate appraisers, renewable every three (3) years, with a minimum of P20,000.00.
Section 35 requires the Code of Ethics and Responsibilities adopted and promulgated by the Board for strict observance.
Section 19 ties discipline to violations of this Act, its implementing rules, and the Code, including grounds for revocation/suspension/cancellation after notice and hearing.
Section 5 requires the Board to maintain high professional, ethical, and technical standards through monitoring, advertisement regulation, and investigation of violations.

Penal provisions, appropriations, and final clauses

Section 39 imposes penalties for violations of the Act (including implementing rules): a fine of not less than P100,000.00 or imprisonment of not less than two (2) years, or both, at the court’s discretion.
Section 39 doubles the penalty when the violation is committed by an unlicensed real estate service practitioner.
Section 39 makes corporate/juridical liability operational by holding directly liable the partner, president, director, or manager who committed or consented to or knowingly tolerated the violation, as principal or co-principal.
Section 40 requires the chairperson of the Commission to immediately include implementation and funding in the Commission’s programs under the annual General Appropriations Act.
Section 41 provides a transitory transfer: within ninety (90) days from effectivity, DTI (Bureau of Trade Regulation and Consumer Protection (BTRCP)) must transfer all pertinent records, documents, and other materials to the Board.
Section 42 requires Commission, together with the Board and the accredited integrated organization, the Department of Finance, and the CHED, to prepare implementing rules and regulations, including the Code of Ethics, within six (6) months from effectivity.
Section 43 includes separability: if any part is declared unconstitutional/invalid, the remainder remains unimpaired.
Section 44 modifies and repeals inconsistent laws/decrees/executive orders/department or memorandum orders and other administrative issuances accordingly, and modifies 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.
Section 45 makes effectivity contingent on publication: the Act takes effect fifteen (15) days following publication in the Official Gazette or in a major daily newspaper of general circulation in the Philippines.
The Act was approved by the President on June 29, 2009, after final passage on May 12, 2009.