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28 July 2009

What do you think about the Real Estate Service Act ?


Share your thoughts on the
Real Estate Service Act of the Philippines

The Real Estate Service Act of the Philippines, Republic Act No. 9646 has been enacted and is effective on July 30, 2009 which will now place the practice of real estate service under the Professional Regulation Commission.

The Act is intended to professionalize the real estate service industry covering real estate brokers, real estate salespersons, real estate appraisers, real estate consultants and even real estate assessors.

As the implementing rules and regulations will still have to be prepared and formulated, we invite you to share with us your thoughts, comments and suggestions which may be of help in the formulation of the implementing rules and regulations.

To know more about the Real Estate Service Act, go to : real estate service act of the philippines at http://realestateserviceact.blogspot.com/
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5 comments:

John Petalcorin said...

WARNING FROM REIBS.COM

THE NEW LAW entitled “Real Estate Service Act of the Philippines” (Republic Act 9646) was signed by the President on June 29, 2009 and took effect on July 30, 2009. The five servicemen of the real estate industry (Salesperson, Broker, Assessor, Appraiser, and Consultant) are now under the Professional Regulation Commission (PRC), just like the doctors and lawyers. Now the upcoming real estate servicement (except salespersons) are required to have gone through a bachelor’s degree in real estate service, and after which they will have to pass the real estate board exam. Those Salespersons, Brokers, Appraisers, and Consultants, whose registration and license is unexpired as of 30 July 2009, will be carried over, are allowed to continue the practice, and are exempted from the board exam.

THE ACT OF ADVERTISING (offering out fliers, calling cards, brochures, price lists, posting of tarpaulins, and building websites for real estate advertising purposes), is not yet an act of real estate broker until a person writes/stamps his/her name as contact person behind those advertising medium. The law (PD 957 and its Implementing Rules, find it in www.hlurb.gov.ph) requires professional license and registration from DTI (now PRC) and HLURB before a person asigns himself as contact person of any real estate advertising. The law applies to in-house and independent real estate agents.

...In August 2009, we sent someone out to the malls in Metro Manila to gather fliers handed over by real estate salespersons. Out of the 138 fliers we collected, only two claim to be licensed brokers, all the rest are colorum salespersons. Surprisingly, the two who have broker license numbers are not listed in the HLURB Brokers list, meaning, they could be fake...

...The RA 9646 requires each division, department, or unit of a developer marketing arm to be managed and headed by a licensed broker. For the developers who have neglected to register their salesforce with the HLURB in the past (brokers and salespersons), stop dreaming about bending the law and waiting for an Implementing Rules and Regulation that will give exemptions. REIBS suggests that developers start hiring more Real Estate Brokers and accredit as much external Licensed Real Estate Brokers they can, to be able to meet the 20:1 salesperson:broker ratio required by RA 9646....

... For some of our colleague Licensed Real Estate Brokers who operate as freelancers, we suggest that you establish a formal office and remain independent. If you become an in-house broker, you will be limited to only 20 salespersons. If you are an independent sole proprietorship, you can get as many salespersons as you want. Join only whatever in-house group you want as long as it is not contaminated with managers who are not Licensed Real Estate Brokers (because the law oblige us not to tolerate such activities within our organization). There are colorums, especially the manager types, who shop around for licensed brokers they can conspire with in consideration for a fee (eto pera, pagamit naman ng license mo). I, for one was already approached, and someone else I know from Binondo was approached also. These colorum managers will offer you something hard to refuse, so you can continue their Salesperson cum Manager operation using your name and License# for their protection. Brokers, what these people are attempting to do is called falcification and usurpation, and please do not put your license on the line, there are very few licensed brokers now and we do not want to become much fewer -- if you conspire with these colorums, we will purge you in the same manner we purge the colorums...

Read the full text of this article at http://reibs.com/REIBSAgentWarning.html.

renz said...

Let the Authorities do their Job to impose the appropriate penalty for violators including Developer who employ unlicensed In-House Broker or Unaccredited salesperson if we are keen in professionalizing the industry. Let the licensed and accredited practitioners do the job.

Anonymous said...

Atty. Einstein,

How can we avoid confusion and achieve standardization in the property valuation if the Assessors can simply set their own rules, standards and methodologies that might be in conflict with the other RE groups-consultants, appraisers, brokers and salespersons. Under the RESA, being one of real practitioners might give them power and immunity in segregating themselves as autonomous group in the RE practice.

Thanks and more power!

Anonymous said...

Hi Atty Martinez,

Just 2 points of clarification about the RESA:

1.Under the RESA, can somebody become a licensed RE consultant, appraiser, assessor, broker, insurance agent (life and non-life) all at the same time? Will there be no conflict of interest with those professions?
2. Will there be also a PRC licensure exam for Assessor just like in other fields? All the other groups earn their living based on commissions and fees. How can PRC regulate the Assessors if they work under the jurisdiction of the local government units?

I'm just quite surprised why were they included in the professional real estate practice.

Please enlighten us. Thanks

philinfocenter said...

The inclusion of the assessors as one of the real estate service practitioners was part of the program of the DOF under the so called LAMP Project which aimed to professionalize the assessors to improve property valuation.

Although there are concerns about their inclusion, as it seems this is more of the position rather than a profession per se, the fact remains that the law has included them as part of the real estate practitioners.

Under the RESA, they will therefore be governed also by the PRC and since they are government employees as well, they shall also be governed by the code of conduct for public officials and employees.