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Real Estate Service Act Reviewer by KIM CLaudio of Section 2009 2015
Real Estate Service Act Reviewer by KIM CLaudio of Section 2009 2015
I. Real Estate Service Act (R.A. 9646, June 29, 2009) It refers to the land and all those items which are attached to the
land. It is the physical, tangible entity, together with all the additions
What is the State’s declaration of policy? or improvements on, above or below the ground.
The State recognizes the vital role of real estate service practitioners
in the social political, economic development and progress of the What is a Real Estate Development Project?
country by promoting the real estate market, stimulating economic It means the development of land for residential, commercial,
activity and enhancing government income from real property- industrial, agricultural, institutional or recreational purposes, or
based transactions. Hence, it shall develop and nurture through any combination of such including, but not limited to:
proper and effective regulation and supervision a corps of a. tourist resorts
technically competent, responsible and respected professional real b. reclamation projects
estate service practitioners whose standards of practice and service c. building or housing projects, whether for individual or
shall be globally competitive and will promote the growth of the condominium ownership
real estate industry. d. memorial parks and
e. others of similar nature.
Who is an Appraiser?
He/she is also known as valuer. He/she is a person who conducts Who is a Real Estate Developer?
valuation/appraisal; specifically, one who possesses the necessary It refers to:
qualifications, license, ability and experience to execute or direct a. any natural or juridical person
the valuation/appraisal of real property. b. engaged in the business of developing real estate
development project
Who is an Assessor? c. for his/her or its own account and
He/she is an official in the local government unit, who performs d. offering them for sale or lease.
appraisal and assessment of real properties, including plants,
equipment, and machineries, essentially for taxation purposes. This What is Real property?
definition also includes assistant assessors. It includes all the rights, interests and benefits related to the
ownership of real estate.
Who are deemed to engage in real estate practice? d. Any person who is a
i. duly constituted attorney-in-fact for
Any person who engages in the acts or transactions by real estate
purposes of sale, mortgage, lease or
practitioners found in Section 3(g) of the R.A. 9646.
exchange, or other similar contracts of real
estate,
What are the prohibitions in engaging in real estate ii. without requiring any form of
practice? compensation or remuneration; and
No person can practice or offer to practice or advertise (e.g. Executor of a will or administrator of an estate)
himself/herself as a real estate service practitioner or be appointed
as a real property appraiser/assessor without the following:
e. Public officers in the performance of their official duties and Who are penalized for engaging a real estate service
functions, except government assessors and appraisers. salesperson not accredited by the Board or for
(e.g. Sheriff required to sell a property through a court
allowing them to transact under their own name?
order)
The real estate broker, provided:
What happens to the positions in the Government a. there was actual knowledge of such violation OR
b. the broker retains the benefits, profits or proceeds of a
requiring the services of a real estate service
transaction wrongfully negotiated by the salesperson
practitioner?
Within three (3) years from the passage of R.A. 9646, only registered What are the requirements for a corporation or
and licensed real estate service practitioners may take such partnership to engage in RESP?
positions.
a. The partnership or corporation must be duly registered with
the Securities and Exchange Commission (SEC);
What happens to those employed by the Government
b. The persons authorized to act for the partnership or
engaging in real estate service? corporation are all duly registered and licensed real estate
All incumbent assessors holding permanent appointments shall brokers, appraisers or consultants
continue with their positions but they cannot be promoted to a c. The partnership or corporation shall regularly submit a list
higher position without meeting the qualification requirements of of its real estate service practitioners to the Commission
the higher position. and to the SEC as part of its annual reportorial
requirements.
What are the requirements to become a real estate d. There shall at least be one (1) licensed real estate broker
service salesperson? for every twenty (20) accredited salespersons.
He/she must be accredited by the Board, provided he has the
following qualifications:
a. completed at least two (2) years of college and What are the requirements for divisions of a partnership
b. have undergone training and seminars in real estate or a corporation engaged in marketing or selling
brokerage, as may be required by the Board. real estate development projects in the regular
course of business?
They must also be under the direct supervision and accountability of
It must be headed by a full-time registered and licensed real estate
a real estate broker.
broker.
What are the requirements of the branch officers of real professional organization of real estate service practitioners, and
estate practitioners? shall receive the benefits and privileges appurtenant thereto.
Membership in this organization shall not be a bar for the RESP to
It must be manned by a duly licensed real estate broker, appraiser or
join other real estate service associations.
consultant as the case may be.
What is the CPE?
This is the Continuing Professional Education Program that is
What are the requirements in case of resignation or developed, prescribed and promulgated by the Board upon
termination of the RESP? consultation with the accredited and integrated professional
The same shall be reported by the employer to the Board within a organization of real estate service practitioners, affiliated association
period not to exceed fifteen (15) days from the date of effectivity of real estate service practitioners and other concerned sectors, and
of the resignation or termination in accordance with such policies as may have been prescribed by the
Board, that is subject to the approval of the Commission. The Board
Can the partnership or corporation hire RESP on shall also create a CPE Council.
commission basis? What is the composition of the CPE Council?
a. A chairperson coming from the Board,
Yes, and they may be considered as independent contractors subject
b. a member from the accredited and integrated professional
to the provisions of the Labor Code.
organization of real estate service practitioners and
c. a member from the academe.
Are there other requirements for RESP regarding their
principal place of business? Who assists the Board to enforce the law?
They must display the original and/or certified true copies of his/her The Commission assists the Board. The lawyers of the Commission
certificate of registration as well as those RESP employed in such act as the prosecutors for any violations of the Act. The duly
office. constituted authorities of the Government shall likewise assist the
Board.
What is the AIPO?
It is the Accredited and Integrated Professional Organization of real What are the required things that a RESP must indicate
estate service practitioners. I is selected by the (This is currently in their practice?
vacant)
He/she must indicate the following on the documents he/she signs,
uses or issues in connection with the practice of his/her profession:
A real estate service practitioner duly registered with the Board shall
a. the certificate of registration,
automatically become a member of the accredited and integrated
b. professional identification card,
c. PTR number, and perform activities or acts prior to and until the recognition or birth
d. APO receipt number, and of the AIPO. (There is currently none)
e. the date of issuance and
f. the duration of validity Who is the current chairperson of the Board?
Dr. Eduardo Gutierrez Ong
What are the penalties for any violation of R.A. 9646?
For those who are registered and licensed RESP, a fine of not less
than One hundred thousand pesos (P100,000.00) or imprisonment
of not less than two (2) years, or both such fine and imprisonment
upon the discretion of the court.
For those who are unlicensed RESP, the penalty shall be double the
aforesaid fine and imprisonment.