Resa and Irr - Cres 2014

The Real Estate Service Act of the Philippines and
Implementing Rules and Regulations [ IRR ]
A. THE RESA ND IMPLEMENTING RULES AND REGULATIONS
B. THE REAL ESTATE SERVICE ACT OF THE PHILIPPINES
REPUBLIC ACT NO. 8646

IMPLEMENTING RULES AND REGULATIONS
REPUBLIC OF THE PHILIPPINES

PROFESSIONAL REGULATION COMMISSION
Manila
PROFESSIONAL REGULATORY BOARD OF REAL

ESTATE SERVICE
Resolution No. 02
Series of 2010
IMPLEMENTING RULES AND REGULATIONS

OF REPUBLIC ACT NO. 9646, KNOWN AS
THE “REAL ESTATE SERVICE ACT OF THE PHILIPPINES”
Pursuant to Section 5, (J), Article II and Section 42, Article V of Republic Act No. 9646, “An Act
regulating the Practice of Real Estate Service in the Philippines, Creating for the Purpose a
Professional Regulatory Board of Real Estate Service, Appropriating Funds Therefor and for Other
Purposes”, the Professional Regulatory Board of Real Estate Service, hereinafter called as the
Board, after the review and approval by the Professional Regulation Commission, hereinafter
referred to as the Commission, hereby adopts, issues, and promulgates this resolution embodying
the following Implementing Rules and Regulations to carry out, administer, and enforce the
provisions of R.A. No. 9646.
RULE I
TITLE OF THE RULES, DECLARATION OF POLICY &
DEFINITION OF TERMS
The RESA and Implementing Rules and Regulations – CRES © 2014ATM | 1
SECTION 1. Title - These Rules shall be known as “THE IMPLEMENTING RULES AND
REGULATIONS OF REPUBLIC ACT NO. 9646, known as the “Real Estate Service Act of the
Philippines”, in short, the “IRR of R.A. No. 9646”, or merely the IRR.
SEC. 2. Declaration of Policy - The State recognizes the vital role of real estate service
practitioners in the social, political, economic development and progress of the country by promoting
the real estate market, stimulating economic activity and enhancing government income from real
property-based transactions. Hence, it shall develop and nurture through proper and effective
regulation and supervision a corps of technically competent, responsible and respected
professional real estate service practitioners whose standards of practice and service shall be
globally competitive and will promote the growth of the real estate industry.
The IRR shall be interpreted, construed, and carried out in the light of the above Declaration of
Policy, which embodies the legislative intent in enacting R.A. No. 9646.
SEC. 3. Definition of Terms – As used in the IRR,, the following terms shall be understood to mean
as follows:
a. "Appraiser" also known as valuer, refers to a person who conducts valuation/appraisal;

specifically, one who possesses the necessary qualifications, license, ability and experience
to execute or direct the valuation/appraisal of real property.
b. "Assessor" refers to an official in the local government unit, who performs appraisal and
assessment of real properties, including plants, equipment, and machineries, essentially
for taxation purposes. This definition also includes assistant assessors.
c. "Real estate" 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 or improvements on, above or below
the ground.
d. "Real estate development project" means the development of land for residential,
commercial, industrial, agricultural, institutional or recreational purposes, or any combination
of such including, but not limited to, tourist resorts, reclamation projects, building or housing
projects, whether for individual or condominium ownership, memorial parks and others of
similar nature.
e. "Real estate developer" refers to any natural or juridical person engaged in the business of
developing real estate development project for his/her or its own account and offering them
for sale or lease.
f. "Real property" includes all the rights, interests and benefits related to the ownership of real
estate.
g. "Real estate service practitioners" shall refer to and consist of the following:
(1) Real estate consultant – a duly registered and licensed natural person who, for a
professional fee, compensation or other valuable consideration, offers or renders
professional advice and judgment on: (i) the acquisition, enhancement, preservation,
utilization or disposition of lands or improvements thereon; and (ii) the conception,
planning, management and development of real estate projects.
(2) Real estate appraiser – a duly registered and licensed natural person who, for a
professional fee, compensation or other valuable consideration, performs or renders,
or offers to perform services in estimating and arriving at an opinion of or acts as an

expert on real estate values, such services of which shall be finally rendered by the
preparation of the report in acceptable written form.
(3) Real estate assessor — a duly registered and licensed natural person who works in
a local government unit and performs appraisal and assessment of real properties,
including plants, equipment, and machineries, essentially for taxation purposes.
(3) 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.
(4) 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.
h. “Accredited and Integrated Professional Organization (AIPO)” – the national integrated

organization of natural persons duly registered and licensed as Real Estate Service
Practitioners that the Board, subject to the approval by the Commission, shall recognize or
accredit as the one and only AIPO, pursuant to Sec. 34, Art. IV of R.A. No.9646.
i. “ Interim Accredited Professional Organization (IAPO)” – the professional organization

accredited by the Commission only to operate and perform activities or acts prior to and until
the recognition or birth of the AIPO as defined in h. above.
RULE II
PROFESSIONAL REGULATORY BOARD OF REAL ESTATE SERVICE
SEC. 4. Creation and Composition of the Board – There is hereby created a Professional
Regulatory Board of Real Estate Service, hereinafter referred to as the Board, under the supervision
and administrative control of the Professional Regulation Commission (PRC), hereinafter referred to
as the Commission, composed of a chairperson and four (4) members who shall be appointed by the
President of the Philippines from the three (3) recommendees chosen by the Commission from a list
of five (5) nominees per position submitted by the accredited and integrated professional
organization of real estate service practitioners: Provided, That two (2) of the members of the Board
shall represent the government assessors and appraisers, who are both in active government
service.
The first Board shall be organized within six (6) months from the effectivity of R.A. No. 9646.
This provision shall be implemented in accordance with the guidelines of Executive Order No. 496,
Series of 1991 on the selection, nomination, recommendation, and appointment of those who will fill
up any vacancy in the Board.
SEC.5. Powers and Functions of the Board. – The Board is hereby vested the following specific
powers and functions:
(a) Provide comprehensive policy guidelines for the promotion and development of the real
estate industry in relation to the regulation of the practice of the real estate service
profession;

(b) Conduct licensure examinations for the practice of the real estate service profession and
prescribe the appropriate, syllabi of the subjects for examination with their tables of
specifications;
(c) Issue, suspend, revoke or reinstate, after due notice and hearing, certificates of registration
or professional identification cards for the practice of real estate service;
(d) Maintain a comprehensive and updated register of licensed real estate service professionals;
(e) Monitor the conditions affecting the practice of real estate service and adopt such measures
as may be proper for the enhancement of the profession and/or the maintenance of high
professional, ethical and technical standards;
(f) Adopt a national Code of Ethics and Responsibilities issued by the AIPO to be strictly
observed by all licensed real estate service practitioners;
(g) Hear or investigate any violation of R.A. No. 9646, the IRR and the Code of Ethics and
Responsibilities for real estate service practitioners
and issue subpoena and subpoena duces tecum to secure the appearance of witnesses and
the production of documents in connection therewith;
(h) Safeguard and protect legitimate and licensed real estate service practitioners and, in
coordination with the accredited and integrated professional organization (AIPO) of real
estate service practitioners, monitor all forms of advertisements, announcements,
signboards, billboards, pamphlets, brochures and others of similar nature concerning real
estate and, where necessary, exercise its quasi-judicial and administrative powers to finally
and completely eradicate the pernicious practices of unauthorized or unlicensed individuals;
(i) Prescribe, in cooperation with the Commission on Higher Education (CHED) or the
concerned state university or college, the essential requirements as to the curricula
and facilities of schools, colleges or universities seeking permission to open academic
courses or already offering such courses in real estate service, and to see to it that these
requirements, including the employment of qualified faculty members, are properly complied
with;
(j) Promulgate, administer and enforce rules and regulations necessary in carrying out the
provisions of R.A. No. 9646;
(k) Supervise and regulate the registration, licensure and practice of real estate service in
the Philippines;
(l) Assess and fix the rate of reasonable regulatory fees;
(m) Administer oaths and affirmations;
(n) Adopt an official seal of the Board with the interpretation of its symbols attached to this
Resolution and made an integral part thereof as Annex “A”;
(o) Evaluate periodically the status of real estate service education and profession, and
recommend and/or adopt measures to upgrade and maintain its high standard;
(p) Prescribe guidelines and criteria for the Continuing Professional Education (CPE) program
for real estate service practitioners in consultation with the accredited and
integrated professional organization of real estate service practitioners;
(q) Screen, issue and monitor permits to organizations of real estate professionals in the
conduct of seminars and accredit such seminars pursuant to the CPE program, as well as
the instructors or lecturers therein, for the purpose of upgrading the quality and knowledge of
the profession;
(r) Monitor and supervise the activities of the accredited and integrated professional
organization (AIPO) and other associations of real estate service practitioners; and
(s) Discharge such other powers, duties and functions as the Commission may deem necessary
to carry out the provisions of R.A. No. 9646.
The policies, resolutions and rules and regulations issued or promulgated by the Board shall be
subject to the review and approval by the Commission. However, the Board's decisions, resolutions
or orders which are not interlocutory, rendered in an administrative case, shall be subject to
review by the Commission only on appeal, in accordance with Republic Act No. 8981 and its
Implementing Rules and Regulations.

SEC. 6. Qualifications of the Chairperson and Members of the Board. The Chairperson and the
Members of the Board shall, at the time of their appointment, possess the following qualifications:
(a) citizen and resident of the Philippines;

(b) holder of a bachelor's degree related to real estate;
(c) An active licensed practitioner of real estate service for at least ten (10) years prior to his/her
appointment;
(d) A bona fide member in good standing of the accredited and integrated professional
organization of real estate service practitioners but not an officer or trustee at the time of
his/her appointment;
(e) Neither be a member of the faculty of an institute, school, college or university, nor have any
pecuniary interest, direct or indirect, in any institution or association where review classes or
lectures in preparation for the licensure examination are being offered or conducted; and
(f) Of good moral character, and must not have been convicted by final judgment by a
competent court of a criminal offence involving moral turpitude.
SEC. 7. Term of Office. The chairperson and the members of the Board shall hold office for a
term of three (3) years from the date of their appointment and until their successor/s shall have been
appointed: Provided, That the members of the first appointed Board shall hold office for the following
terms: one (1) member as chairperson, to serve for three (3) years; two (2) members, to serve for
two (2) years; and two (2) members, to serve for one (1) year.
The Chairperson and the Members of the Board may be reappointed for a second term but in no
case shall he/she serve continuously for more than six (6) years. Any vacancy in the Board shall be
filled for the unexpired portion of the term of the member who vacated the position. On the
constitution of the first Board, the Chairperson and the Members of the Board shall automatically be
registered and issued Certificates of Registration and Professional Identification Cards. Each
member of the Board shall take the proper oath of office prior to the assumption of duty.
SEC. 8. Compensation and Allowances of the Chairperson and Members of the Board. The
chairperson and the members of the Board shall receive compensation and allowances comparable
to the compensation and allowances received by the chairman and the members of existing
professional regulatory boards under the Commission, as provided for in the General Appropriations
Act, the Salary Standardization Law, and the Joint Circular issued by the Commission and the
Department of Budget and Management (DBM).
SEC. 9. Removal of the Chairperson and Members of the Board. The chairperson or any member
of the Board may be suspended or removed by the President of the Philippines, upon the
recommendation of the Commission and after due notice and hearing in a proper administrative
investigation to be conducted by the Commission on the following grounds:
1. Neglect of duty,
2. Abuse of power,
3. Oppression,
4. Incompetence,
5. Unprofessional, unethical conduct,
6. Immoral or dishonourable conduct,
7. Commission or toleration of irregularities in the conduct of examination or tampering of the
grades, or
8. For any final judgment or conviction of any criminal offence involving moral turpitude.
The Commission in the conduct of the investigation shall be guided by Sec. 7 (s) of R.A. No. 8981
and its rules on administrative investigation.

SEC. 10 Supervision of the Board, Custodian of its Records, Secretariat and Support Services. The
Board shall be under the general supervision and administrative control of the Commission. All
records of the Board, including applications for examination, examination papers and
results, minutes of deliberations, administrative and other investigative cases involving real estate
service practitioners, shall be kept by the Commission. The Commission shall designate
the secretary of the Board at the office, Secretary, Professional Regulatory Boards and shall provide
the secretariat and other support services to implement the provisions of R.A. No. 9646 subject to
the usual government accounting and auditing rules and regulations.
SEC. 11. Annual Report. The Board shall, at the close of each calendar year, submit an annual
report to the Commission, giving a detailed account of its proceedings and accomplishments during
the year and recommending measures to be adopted with the end-in-view of upgrading and
improving the conditions affecting the practice of real estate service in the Philippines.
RULE III
LICENSURE EXAMINATION AND REGISTRATION
SEC. 12. Licensure Examination. Every applicant seeking to be registered and licensed as a real
estate service practitioner, except a real estate salesperson, shall undergo an examination to be
given by the Board as provided for in R.A. No. 9646. Examinations for the practice of real estate
service in the Philippines shall be given by the Board in such places and dates as the Commission
may designate in the Master Schedules of Board Licensure Examinations for Professionals for the
year as issued by the Commission.
SEC. 13. Scope of Examination. The licensure examination for the applicants for real estate
brokers, real estate appraisers and real estate consultants shall cover, but not limited to, the
following
(a) For real estate consultants:
1. fundamentals of real estate consulting;

2. Standards and ethics;
3. Consulting tools and techniques, which include project feasibility study and
investment measurement tools;
4. Real estate finance and economics;
5. Real estate consulting and investment analyses;
6. Consulting for specific engagement, which includes consulting for commercial,
industrial, recreation and resort and hotel properties, and consulting for government
and corporate and financial institutions;
7. Land management system and real property laws; and
8. any other related subjects as may be determined by the Board;
(b) For real estate appraisers:
1. Fundamentals of real estate principles and practices;

2. Standards and ethics;
3. Theories and principles in appraisal;
4. Human and physical geography;
5. Methodology of appraisal approaches;
6. Valuation procedures and research;
7. Appraisal of machinery and equipment;
8. Practical appraisal mathematics;
9. Appraisal report writing;
11. Case studies;

12. Land management system and real property laws; and
13. any other related subjects as may be determined by the Board; and
(c) For real estate brokers:
1. Fundamentals of property ownership;

2. Code of ethics and responsibilities;
3. Legal requirements for real estate service practice;
4. Real estate brokerage practice;
5. Subdivision development;
6. Condominium concept and other types of real estate holdings;
8. Basic principles of ecology;
9. Urban and rural land use;
10. Planning, development and zoning;
11. Legal aspect of sale, mortgage and lease;
12. Documentation and registration;
13. Real property laws and taxation; and
14. any other related subjects as may be determined by the Board.
To conform to technological and modern developments, the Board may re-cluster, rearrange,
modify, add to, or exclude any of the foregoing subjects and their syllabi with tables of specifications
as may be necessary.
SEC. 14. Qualification of Applicants for Examinations. In order to be admitted to the licensure
examination for real estate service, a candidate at the time of filing his/her application, shall establish
to the satisfaction of the Board that he/she possesses the following qualifications:
(a) A citizen of the Philippines,

(b) A holder of a relevant bachelor's degree from a state university or college, or other
educational institution duly recognized by the CHED: Provided, That he/she has completed
at least one hundred twenty (120) credit units of real estate subjects and training from
accredited service providers, as may be determined by the Board; Provided, further, that as
soon as a course leading to a Bachelor's degree in Real Estate Service is implemented by
the CHED, the Board shall make this course a requirement for taking the licensure
examination,
(c) Is of good moral character, and must not have been convicted of any crime involving moral
turpitude,
(d) An applicant for the licensure examination for real estate consultants must show proof that
he/she has at least ten (10) years experience as a licensed real estate broker, or an
assessor, or as a bank, or institutional appraiser, or an employed person performing real
property valuation, or at least five (5) years experience as a licensed real estate appraiser.
All applications for examination shall be filed with the Board who shall assess and approve said
applications and issue to the qualified examinees the corresponding permits or notices of admission
to take such examination upon submission of the following documents:
1. Original and photocopy of Birth Certificate or Certificate of Live Birth (NSO) and / or valid
Philippine passport, or any others proof of citizenship,
2. Original and photocopy of transcript of records and / or diploma with scanned picture,
3. Original and photocopy of notarized certification by employer of his/her years of experience
or pre-requisite Certificate of Registration (COR) and / or Professional Identification Card
(PIC) or DTI license (for real estate consultants),
4. Original and photocopy of NBI clearance,
5. Original and photocopy of duly notarized accredited seminar and / or training certificate,

6. Community tax certificate,
7. Four (4) colored passport size pictures with white background and complete nametag and
other documents in accordance with the requirements set by the Commission.
SEC. 15. Ratings in the Examination. In order that a candidate may be deemed to have successfully
passed the examination, he/she must have obtained an average of at least seventy-five percent
(75%) in all subjects, with no rating below fifty percent (50%) in any subject. The Board may adopt
its own internal procedure on the implementation of this provision.
The reports of ratings may be distributed to the successful examinees during their mass oathtaking.
SEC. 16. Release of the Results of Examination. The results of the licensure examination shall be
released by the Board within ten (10) days from the last day of the examination. The result shall be
published in a daily major newspaper of general circulation and PRC website.
SEC. 17. Issuance of the Certificate of Registration and Professional Identification Card. A
certificate of registration shall be issued to examinees who pass the licensure examination for real
estate service practice, subject to payment of fees prescribed by the Commission. The certificate of
registration shall bear the signature of the chairperson of the Commission and the chairperson and
the members of the Board, stamped with the official seal of the Commission, indicating that
the person named therein is entitled to practice the profession with all the benefits and privileges
appurtenant thereto. This certificate of registration shall remain in full force and effect until revoked
or suspended in accordance with R.A . No. 9646.
A Professional Identification Card bearing the registration number, date of issuance and expiry date,
duly signed by the chairperson of the Commission, shall likewise be issued to every registrant. upon
payment of the required fees. The professional identification card shall be renewed every three (3)
years and upon satisfying the requirements of the Board such as, but not limited to, attendance in
the CPE program.
SEC. 18. Refusal to Register. The Board shall not register and issue a certificate of registration to
any successful examinee who has been convicted by a court of competent jurisdiction of any
criminal offense involving moral turpitude or has been found guilty of immoral or dishonorable
conduct after investigation by the Board, or has been found to be psychologically unfit.
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) Procurement of a certificate of registration and/or professional identification card, or

special/temporary permit by fraud or deceit;
(b) Allowing an unqualified person to advertise or to practice the profession by using one's
certificate of registration or professional identification card, or special/temporary permit;
(c) Unprofessional or unethical conduct;
(d) Malpractice or violation of any of the provisions of R.A. No. 9646, the IRR, and the Code
of Ethics and Responsibilities for real estate service practitioners; and
(e) Engaging in the practice of the profession during the period of one's suspension.
The rules on administrative investigation issued by the Commission shall govern the hearing or
investigation of the case, subject to the applicable provisions of R.A. No. 8981, R.A. No. 9646, and
the Rules of Court; Provided, That the suspension or revocation of the Certificate of Registration and
Professional Identification Card, or the cancellation of the Temporary/Special Permit of the
respondent professional shall not prejudice his /her prosecution for criminal liabilities and the

imposition of the penalties under R.A. No. 8981, R.A. No. 9646, under the Revised Penal Code, or
any other special law.
SEC. 20. Registration Without Examination. Upon application and payment of the required fees, the
following shall be registered, and shall be issued by the Board and the Commission a certificate of
registration and a professional identification card without taking the prescribed examination:
(a) Those whose, on the date of the effectivity of R.A. No. 9646 or as of 30 July 2009, are already
licensed as real estate brokers, real estate appraisers or real estate consultants by the
Department of Trade and Industry (DTI) by virtue of Ministry Order No. 39, as amended:
Provided, that they are in active practice as real estate brokers, real estate appraisers, and
real estate consultants, and that they have undertaken relevant Continuing Professional
Education (CPE) or Continuing Education Program (CEP) to the satisfaction of the Board:
Provided, further, that the following practitioners shall be allowed to register:
1. Any holder of a valid DTI license who has earned fifteen (15) Continuing Education
Program (CEP) or CPE credit units;
2. Those who had failed to renew their DTI License prior to 30 July 2009 but who have
earned twenty-four (24) CEP credit units from accredited service providers as per M.O.
39 or CPE credit units from CPE Council Accredited Provider from 2007 to July 30,
2011;
3. Those who had passed the 2009 & 2008 licensure examinations given by the DTI but
who had failed to obtain their license upon the effectivity of the R.A. No. 9646 and who
have earned fifteen (15) CEP or CPE credit units;
4. Those who had passed the 2007 licensure examinations given by the DTI but who had
failed to obtain their license upon the effectivity of the R.A. No. 9646 and who have
earned eighteen (18) CEP or CPE credit units;
5. Those who had passed the DTI licensure examinations in 2006 and prior years but
who had failed to obtain their license upon the effectivity of R.A .No. 9646 and who
have earned one hundred twenty (120) CEP or CPE credit units;
Provided, finally, that real estate practitioners falling under the above-described categories who fail
to comply with the necessary CPE requirements within two (2) years after the effectivity of R.A. No.
9646, on or before 30 July 2011, shall be required to take the Board licensure examination for real
estate service practitioners;
(b) Assessors and appraisers who, on the date of the effectivity of R.A. No. 9646 or as of 30 July
2009, hold permanent appointments and are performing actual appraisal and assessment functions
for the last five (5) years, have passed the Real Property Assessing Officer (RPAO) examination
conducted and administered by the Civil Service Commission (CSC) in coordination with
the Department of Finance (DOF), and have undertaken relevant CPE to the satisfaction of the
Board; and
(c) Assessors and appraisers who, on the date of the effectivity of R.A. No. 9646 or as of 30 July
2009, hold permanent appointments and have at least ten (10) years actual experience in real
property appraisal or assessment and have completed at least one hundred twenty (120) hours of
accredited training on real property appraisal conducted by national or international appraisal
organizations or institutions/entities, duly certified by the Department of Finance (DOF) or any other
pertinent national government agencies or Government Owned and Controlled Corporations
(GOCC) as the case may be, recognized by the Board and relevant CPE credit units to the
satisfaction of the Board.
Those falling under categories (b) and (c) shall register with the Board after they shall have complied
with the requirements for registration as real estate appraisers, and have completed twenty four (24)

CPE credit units. Provided, that those seeking to be licensed to a new credential level shall be
required to take the pertinent Board licensure examination for real estate service practitioners.
Those so exempt under the aforementioned categories shall file their application within two (2) years
from the effectivity of Republic Act No. 9646 or until 30 July 2011. Provided, that the renewal of the
professional identification card is subject to the provisions of Section 17, Art. III of R. A. No. 9646.
An applicant for registration without examination must submit the following documents:
1. Original and photocopy of Certificate of Live Birth / Birth Certificate (NSO), or valid Philippine
passport, or any other proof of citizenship;
2. Original and photocopy of Certificate of Registration (COR) and / or Professional Identification
Card (PIC) or DTI Licenses;
3. DTI Certification of Rating (for those who passed the examinations but failed to obtain their
license),
4. Original and photocopy of NBI Clearance,
5. Duly notarized CEP/CPE Certification,
6. Civil Service Commission Certification, DOF, or any other national government agencies, or
GOCC Certification (assessors or government appraisers), or any certification of accredited
seminar/training provider,
7. Appointment papers and service records to prove appraisal or assessment experience (for
assessors or government appraisers),
8. Original and photocopy of Marriage Certificate / Contract of Marriage (NSO) (if applicable),
9. Four (4) passport size colored photos with complete nametag in white background, original
and photocopy of community tax certificate (CTC), and surety bond for Real estate brokers
and private real estate appraisers.
SEC. 21. Reinstatement, Re-issuance or Replacement of Certificate of Registration, Professional

Identification Card and Special/Temporary Permit. The Board may, after the expiration of two (2)
years from the date of revocation of a certificate of registration and/or professional identification
card, and upon application and compliance with the required CPE units, and for reasons deemed
proper and sufficient, reinstate any revoked certificate of registration and reissue a
suspended professional identification card and in so doing, may, in its discretion, exempt the
applicant from taking another examination; Provided, that the Board shall issue a resolution subject
to the approval of the Commission in granting a petition for reinstatement to the practice of real
estate service profession. A new certificate of registration, professional identification card or
special/temporary permit may be issued to replace lost, destroyed or mutilated ones, subject to the
rules as may be promulgated by the Board and the Commission, upon payment of the required fees
therefor.
SEC. 22. Roster of Real Estate Service Practitioners. The Board, in coordination with the AIPO of
real estate service practitioners, shall prepare, update and maintain a roster of real estate service
practitioners which shall contain the names of all registered real estate service practitioners, their
residence and office addresses, license numbers, dates of registration or issuance of
certificates, and other data which the Board may deem pertinent. Copies thereof shall be made
available to the public upon request
SEC. 23. Issuance of Special/Temporary Permit. Upon application and payment of the required fees
and subject to the approval of the Commission, the Board may issue special/temporary permit to real
estate service practitioners from foreign countries whose services are urgently needed in the
absence or unavailability of local real estate service practitioners for the purpose of promoting or
enhancing the practice of the profession in the Philippines.
SEC. 24. Foreign Reciprocity. No foreign real estate service practitioner shall be admitted to the
licensure examination, be given a certificate of registration or a professional identification car, be
issued a Special/Temporary Permit, or be entitled to any of the privileges under R.A. No. 9646 and

the IRR unless the country of which he/she is a citizen of specifically allows Filipino real estate
service practitioners to practice within its territorial limits on the same basis as the citizens of such
foreign country; Provided, That the guidelines therefor issued by the Commission, or by the Board
subject to approval by the Commission, shall govern the provisions of the foregoing Sec. 23 and of
the herein Sec. 24.
RULE IV
PRACTICE OF REAL ESTATE SERVICE
SEC. 25. Oath. All successful examinees qualified for registration, all qualified applicants for
registration without examination and accredited salespersons shall be required to take an oath
before any member of the Board or any officer of the Commission duly authorized by the
Commission to administer oaths prior to entering into the practice of real estate service in
the Philippines Provided, That the mass oathtaking of the foregoing may be initiated and supervised
by the Board in coordination with the AIPO.
SEC. 26. Professional Indemnity Insurance/Cash or Surety Bond. All real estate brokers and
private real estate appraisers shall, in addition to the oath referred to in the preceding section, be
required to post a professional indemnity insurance/cash or surety bond, in an amount to be
determined by the Board, which in no case shall be less than Twenty thousand pesos (P20,000.00),
without prejudice to the additional requirement of the client. It will be renewable every three (3)
years.
SEC. 27. Acts Constituting the Practice of Real Estate Service. Any single act or transaction
embraced within the provisions of Section 3(g), Rule II hereof, as performed by real estate service
practitioners, shall constitute an act of engaging in the practice of real estate service.
SEC. 28. Exemptions from the Acts Constituting the Practice of Real Estate Service. The provisions
of R.A. No. 9646 and the IRR shall not apply to the following:
(a) Any person, natural or juridical, who shall directly perform by himself/herself the acts mentioned
in Section 3 hereof with reference to his/her or its own property, except real estate developers
who are regulated by and registered with the Housing and Land Use Regulatory Board (HLURB)
pursuant to law and other resolutions/regulations such as but not limited to Presidential Decree
(PD) 957, as amended, and Batas Pambansa Blg. 220 and their Implementing Rules and
Regulations;
(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 other 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. 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 R.A. No. 9646 and the
IRR is 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 provided. for
in R.A. No. 9646.

SEC. 30. Positions in Government Requiring the Services of Registered and Licensed Real Estate
Service Practitioners. Within three (3) years from the effectivity of RA No. 9646, all existing and new
positions in the national and local governments, whether career, permanent, temporary
or contractual, primarily requiring the services of any real estate service practitioner, shall be filled
only by registered and licensed real estate service practitioners.
All incumbent assessors holding permanent appointments shall continue to perform their functions
without need for re appointment and without diminution of status, rank and salary grade, and shall
enjoy security of tenure. However, they may not be promoted to a higher position until they meet the
qualification requirements of that higher position as herein prescribed. Nothing in R.A. No. 9646 and
the IRR shall be construed to reduce any benefit, interest, or right enjoyed by the incumbents at the
time of the enactment of R.A. No. 9646. The appointing authority shall exercise his power to appoint
the assessor in accordance with the provisions of R.A. No. 9646 and the IRR only when a vacancy
occurs.
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 of at least twelve (12) credit units
in real estate brokerage. Those salespersons who are registered with the DTI/HLURB or other
salespersons who are in the active practice for at least three (3) years, as may be certified by a
licensed broker or a real estate developer, prior to the effectivity of R.A. No. 9646 may also be
accredited by the Board until 30 July 2011. Provided, further, that in both cases, such Real Estate
Salespersons must have undergone at least one hundred twenty (120) training hours in real estate
brokerage, and have submitted original NSO certificate of live birth/ birth certificate, NBI clearance,
certificate of educational attainment or its equivalent, notarized certificate of training or seminar and
notarized certificate of their supervising licensed brokers, 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 themselves 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 indirectly, can negotiate,
mediate or transact any real estate transaction for and in behalf of a real estate broker without first
securing an authorized accreditation as real estate salesperson for the real estate broker, as
prescribed by the Board. A real estate broker shall be guilty of violating R.A. No. 9646 or the IRR 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.
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
full-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. 33. Display of License in the Place of Business. Every registered and licensed real estate
service practitioner shall establish and maintain a principal place of business and such other branch
offices as may be necessary, and shall conspicuously display therein the original and/or certified true
copies of his/her certificate of registration and professional identification card as well as the
certificates of registration and professional identification cards of all the real estate
service practitioners employed in such office.
SEC. 34. Accreditation and Integration of Real Estate Service Associations. All real estate service
associations shall be integrated into one (1) national organization, which shall be recognized by the
Board, subject to the approval of the Commission, as the only accredited and integrated
professional organization of real estate service practitioners pursuant to PRC Res. No. 2004-178,
Series of 2004.
A real estate service practitioner duly registered with the Board shall automatically become a
member of the accredited and integrated professional organization of real estate
service practitioners, and shall receive the benefits and privileges appurtenant thereto; Provided
That the Board, subject to approval by the Commission, shall issue a Resolution on the membership
and payment of the fee therefor as a requirement fro the renewal of the Professional Identification
Card. The automatic membership in the accredited and integrated professional organization of real
estate service practitioners shall not be a bar to membership in other associations of real estate
service practitioners.
SEC. 35. Code of Ethics and Responsibilities for Real Estate Service Practitioners. The Board shall
adopt and promulgate the Code of Ethics and Responsibilities for real estate service practitioners
which shall be prescribed and issued by the accredited and integrated professional organization
(AIPO) of real estate service practitioners.
SEC. 36. Continuing Professional Education (CPE) Program. The Board shall develop, prescribe
and promulgate guidelines on CPE upon consultation with the accredited and integrated professional
organization of real estate service practitioners, affiliated association of real estate service
practitioners and other concerned sectors, and in accordance with such policies as may have been
prescribed by the Board, subject to the approval of the Commission. The Board shall create a CPE
Council that shall be composed of a chairperson coming from the Board, a member from the
accredited and integrated professional organization of real estate service practitioners and a
member from the academe.
SEC. 37. Enforcement Assistance to the Board. The Board shall be assisted by the Commission in
carrying out the provisions of R.A. No. 9646 and the IRR and other policies. The lawyers of the
Commission shall act as prosecutors against illegal practitioners and other violators of R.A. No.
9646 and the IRR. The duly constituted authorities of the government shall likewise assist the Board
and the Commission in enforcing the provisions of R.A. No. 9646 and the IRR..

SEC. 38. Indication of the Certificate of Registration, Professional Identification Card/License
Number, Privilege Tax Receipt (PTR) Number, and Accredited Integrated Professional Organization
(AIPO) Number. Real estate service practitioners shall be required to indicate the
 certificate of registration,
 professional identification card,
 PTR number, and
 AIPO membership and /or receipt number, and
 the date of issuance and the duration of validity
on the documents he/she signs, uses or issues in connection with the practice of his/her profession.
RULE V
PENAL AND FINAL PROVISIONS
SEC. 39. Penal Provisions. Any violation of R.A. 9646, including violations of this IRR, shall be
meted the penalty of
1. a fine of not less than one hundred thousand pesos (P100,000.00) or

2. imprisonment of not less than two (2) years,
3. 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.
SEC. 40. Appropriations. The chairperson of the Professional Regulation Commission shall
immediately include in the Commission's programs the implementation of R.A. No. 9646 and the IRR
the funding of which shall be included in the annual General Appropriations Act and thereafter.
SEC. 41. Transitory Provision. Within ninety (90) days from the effectivity of R.A. No. 9646, the DTI -
Bureau of Trade Regulation and Consumer Protection (BTRCP) shall transfer all pertinent records,
documents and other materials to the Professional Regulatory Board of Real Estate Service.
SEC. 42. Implementing Rules and Regulations. Within six (6) months after the effectivity of R.A. No.
9646, the Commission, together with the Board and the accredited and integrated professional
organization of real estate service practitioners, the Department of Finance, and the CHED, shall
prepare the necessary rules and regulations, including the Code of Ethics and Responsibilities for
real estate service practitioners, needed to implement the provisions of R.A. No. 9646. The Board
shall issue and promulgate a resolution for the IRR subject to review and approval by the
Commission.
Nothing in R.A. No. 9646 and the IRR shall be construed or interpreted to effect or prevent the
practice of any other profession legally regulated by any other professional regulatory law.
SEC. 43. Separability Clause. If any clause, sentence, paragraph or part of the IRR shall be
declared unconstitutional or invalid, such judgment shall not affect, invalidate or impair any other part
thereof.
SEC. 44.. Repealing Clause.

1. 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 are hereby modified accordingly.
2. All laws, decrees, executive orders, department or memorandum orders and other
administrative issuances or parts thereof which are inconsistent with the provisions of R.A. No.
9646 and / or the IRR are hereby modified, superseded or repealed accordingly.
SEC. 45. Effectivity. The IRR shall take effect after fifteen (15) days following its full and complete
publication in the Official Gazette or in a major daily newspaper of general circulation in
the Philippines.
Done in the City of Manila this 21st day of July, 2010

Published July 24, 2010 [ Philippine Daily Inquirer and The Philippine Star ]
_______________________________________________________________________________
G.R. No. 197676, February 04, 2014 - REMMAN ENTERPRISES, INC. AND CHAMBER OF REAL
ESTATE AND BUILDERS’ ASSOCIATION, Petitioners, v. PROFESSIONAL REGULATORY BOARD
OF REAL ESTATE SERVICE AND PROFESSIONAL REGULATION COMMISSION, Respondents.
EN BANC
G.R. No. 197676, February 04, 2014
REMMAN ENTERPRISES, INC. AND CHAMBER OF REAL ESTATE AND BUILDERS’

ASSOCIATION, Petitioners, v. PROFESSIONAL REGULATORY BOARD OF REAL ESTATE
SERVICE AND PROFESSIONAL REGULATION COMMISSION, Respondents.
DECISION
VILLARAMA, JR., J.:
Assailed in this petition for review under Rule 45 is the Decision1 dated July 12, 2011 of the Regional
Trial Court (RTC) of Manila, Branch 42 denying the petition to declare as unconstitutional Sections
28(a), 29 and 32 of Republic Act (R.A.) No. 9646.
R.A. No. 9646, otherwise known as the “Real Estate Service Act of the Philippines” was signed into
law on June 29, 2009 by President Gloria Macapagal–Arroyo. It aims to professionalize the real
estate service sector under a regulatory scheme of licensing, registration and supervision of real
estate service practitioners (real estate brokers, appraisers, assessors, consultants and
salespersons) in the country. Prior to its enactment, real estate service practitioners were under the
supervision of the Department of Trade and Industry (DTI) through the Bureau of Trade Regulation
and Consumer Protection (BTRCP), in the exercise of its consumer regulation functions. Such
authority is now transferred to the Professional Regulation Commission (PRC) through the
Professional Regulatory Board of Real Estate Service (PRBRES) created under the new law.
The implementing rules and regulations (IRR) of R.A. No. 9646 were promulgated on July 21, 2010
by the PRC and PRBRES under Resolution No. 02, Series of 2010.
On December 7, 2010, herein petitioners Remman Enterprises, Inc. (REI) and the Chamber of Real
Estate and Builders’ Association (CREBA) instituted Civil Case No. 10–124776 in the Regional Trial
Court of Manila, Branch 42. Petitioners sought to declare as void and unconstitutional the following
provisions of R.A. No. 9646:
SEC. 28. Exemptions from the Acts Constituting the Practice of Real Estate Service. – The
provisions of this Act and its rules and regulations shall not apply to the following:

(a) Any person, natural or juridical, who shall directly perform by himself/herself the acts mentioned
in Section 3 hereof with reference to his/her or its own property, except real estate developers;
xxx
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.
xxx
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 full–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. (Emphasis and underscoring supplied.)
According to petitioners, the new law is constitutionally infirm because (1) it violates Article VI,
Section 26 (1) of the 1987 Philippine Constitution which mandates that “[e]very bill passed by
Congress shall embrace only one subject which shall be expressed in the title thereof”; (2) it is in
direct conflict with Executive Order (E.O.) No. 648 which transferred the exclusive jurisdiction of the
National Housing Authority (NHA) to regulate the real estate trade and business to the Human
Settlements Commission, now the Housing and Land Use Regulatory Board (HLURB), which
authority includes the issuance of license to sell of subdivision owners and developers pursuant to
Presidential Decree (P.D.) No. 957; (3) it violates the due process clause as it impinges on the real
estate developers’ most basic ownership rights, the right to use and dispose property, which is
enshrined in Article 428 of the Civil Code; and (4) Section 28(a) of R.A. No. 9646 violates the equal
protection clause as no substantial distinctions exist between real estate developers and the
exempted group mentioned since both are property owners dealing with their own property.

Additionally, petitioners contended that the lofty goal of nurturing and developing a “corps of
technically competent, reasonable and respected professional real estate service practitioners” is not
served by curtailing the right of real estate developers to conduct their business of selling properties.
On the contrary, these restrictions would have disastrous effects on the real estate industry as the
additional cost of commissions would affect the pricing and affordability of real estate packages.
When that happens, petitioners claimed that the millions of jobs and billions in revenues that the real
estate industry generates for the government will be a thing of the past.
After a summary hearing, the trial court denied the prayer for issuance of a writ of preliminary
injunction.
On July 12, 2011, the trial court rendered its Decision2 denying the petition. The trial court held that
the assailed provisions are relevant to the title of the law as they are intended to regulate the
practice of real estate service in the country by ensuring that those who engage in it shall either be a
licensed real estate broker, or under the latter’s supervision. It likewise found no real discord
between E.O. No. 648 and R.A. No. 9646 as the latter does not render nugatory the license to sell
granted by the HLURB to real estate developers, which license would still subsist. The only
difference is that by virtue of the new law, real estate developers will now be compelled to hire the
services of one licensed real estate broker for every twenty salespersons to guide and supervise the
coterie of salespersons under the employ of the real estate developers.
On the issue of due process, the trial court said that the questioned provisions do not preclude
property owners from using, enjoying, or disposing of their own property because they can still
develop and sell their properties except that they have to secure the services of a licensed real
estate broker who shall oversee the actions of the unlicensed real estate practitioners under their
employ. Since the subject provisions merely prescribe the requirements for the regulation of the
practice of real estate services, these are consistent with a valid exercise of the State’s police power.
The trial court further ruled that Section 28(a) does not violate the equal protection clause because
the exemption of real estate developers was anchored on reasonable classification aimed at
protecting the buying public from the rampant misrepresentations often committed by unlicensed real
estate practitioners, and to prevent unscrupulous and unethical real estate practices from flourishing
considering the large number of consumers in the regular course of business compared to isolated
sale transactions made by private individuals selling their own property.
Hence, this appeal on the following questions of law:chanRoblesvirtualLawlibrary
1. Whether there is a justiciable controversy for this Honorable Court to adjudicate;
2. Whether [R.A. No. 9646] is unconstitutional for violating the “one title–one subject” rule under
Article VI, Section 26 (1) of the Philippine Constitution;
3. Whether [R.A. No. 9646] is in conflict with PD 957, as amended by EO 648, with respect to
the exclusive jurisdiction of the HLURB to regulate real estate developers;
4. Whether Sections 28(a), 29, and 32 of [R.A. No. 9646], insofar as they affect the rights of
real estate developers, are unconstitutional for violating substantive due process; and
5. Whether Section 28(a), which treats real estate developers differently from other natural or
juridical persons who directly perform acts of real estate service with reference to their own
property, is unconstitutional for violating the equal protection clause. 3
The Court’s Ruling
The petition has no merit.

Justiciable Controversy
The Constitution4 requires as a condition precedent for the exercise of judicial power the existence of
an actual controversy between litigants. An actual case or controversy involves a conflict of legal
rights, an assertion of opposite legal claims susceptible to judicial resolution. 5 The controversy must
be justiciable – definite and concrete – touching on the legal relations of parties having adverse legal
interests, which may be resolved by a court of law through the application of a law. 6 In other words,
the pleadings must show an active antagonistic assertion of a legal right, on the one hand, and a
denial thereof on the other; that is, it must concern a real and not a merely theoretical question or
issue. There ought to be an actual and substantial controversy admitting of specific relief through a
decree conclusive in nature, as distinguished from an opinion advising what the law would be upon a
hypothetical state of facts.7 An actual case is ripe for adjudication when the act being challenged has
a direct adverse effect on the individual challenging it. 8cralawlawlibrary
There is no question here that petitioners who are real estate developers are entities directly
affected by the prohibition on performing acts constituting practice of real estate service without first
complying with the registration and licensing requirements for brokers and agents under R.A. No.
9646. The possibility of criminal sanctions for disobeying the mandate of the new law is likewise real.
Asserting that the prohibition violates their rights as property owners to dispose of their properties,
petitioners challenged on constitutional grounds the implementation of R.A. No. 9646 which the
respondents defended as a valid legislation pursuant to the State’s police power. The Court thus
finds a justiciable controversy that calls for immediate resolution.
No Violation of One–Title One–Subject Rule
Section 26(1), Article VI of the Constitution states:chanRoblesvirtualLawlibrary

SEC. 26 (1). Every bill passed by the Congress shall embrace only one subject which shall be
expressed in the title thereof.
In Fariñas v. The Executive Secretary,9 the Court explained the provision as follows:
lLawlibrary
The proscription is aimed against the evils of the so–called omnibus bills and log–rolling legislation
as well as surreptitious and/or unconsidered encroaches. The provision merely calls for all parts of
an act relating to its subject finding expression in its title.
To determine whether there has been compliance with the constitutional requirement that the subject
of an act shall be expressed in its title, the Court laid down the rule that –
Constitutional provisions relating to the subject matter and titles of statutes should not be so
narrowly construed as to cripple or impede the power of legislation. The requirement that the
subject of an act shall be expressed in its title should receive a reasonable and not a
technical construction. It is sufficient if the title be comprehensive enough reasonably to
include the general object which a statute seeks to effect, without expressing each and every
end and means necessary or convenient for the accomplishing of that object. Mere details
need not be set forth. The title need not be an abstract or index of the Act. 10 (Emphasis supplied.)ch
anroblesvirtualawlibrary
The Court has previously ruled that the one–subject requirement under the Constitution is satisfied if
all the parts of the statute are related, and are germane to the subject matter expressed in the title,
or as long as they are not inconsistent with or foreign to the general subject and title. 11 An act having
a single general subject, indicated in the title, may contain any number of provisions, no matter how
diverse they may be, so long as they are not inconsistent with or foreign to the general subject, and
may be considered in furtherance of such subject by providing for the method and means of carrying
out the general object.12

It is also well–settled that the “one title–one subject” rule does not require the Congress to employ in
the title of the enactment language of such precision as to mirror, fully index or catalogue all the
contents and the minute details therein. The rule is sufficiently complied with if the title is
comprehensive enough as to include the general object which the statute seeks to effect. 13 Indeed,
this Court has invariably adopted a liberal rather than technical construction of the rule “so as not to
cripple or impede legislation.” 14
R.A. No. 9646 is entitled “An Act Regulating the Practice of Real Estate Service in the Philippines,
Creating for the Purpose a Professional Regulatory Board of Real Estate Service, Appropriating
Funds Therefor and For Other Purposes.” Aside from provisions establishing a regulatory system for
the professionalization of the real estate service sector, the new law extended its coverage to real
estate developers with respect to their own properties. Henceforth, real estate developers are
prohibited from performing acts or transactions constituting real estate service practice without first
complying with registration and licensing requirements for their business, brokers or agents,
appraisers, consultants and salespersons.
Petitioners point out that since partnerships or corporations engaged in marketing or selling any real
estate development project in the regular course of business are now required to be headed by full–
time, registered and licensed real estate brokers, this requirement constitutes limitations on the
property rights and business prerogatives of real estate developers which are not all reflected in the
title of R.A. No. 9646. Neither are real estate developers, who are already regulated under a different
law, P.D. No. 957, included in the definition of real estate service practitioners.
We hold that R.A. No. 9646 does not violate the one–title, one–subject rule.
The primary objective of R.A. No. 9646 is expressed as follows:
SEC. 2. Declaration of Policy. – The State recognizes the vital role of real estate service
practitioners in the social, political, economic development and progress of the country by promoting
the real estate market, stimulating economic activity and enhancing government income from real
property–based transactions. Hence, it shall develop and nurture through proper and effective
regulation and supervision a corps of technically competent, responsible and respected professional
real estate service practitioners whose standards of practice and service shall be globally
competitive and will promote the growth of the real estate industry.
We find that the inclusion of real estate developers is germane to the law’s primary goal of
developing “a corps of technically competent, responsible and respected professional real estate
service practitioners whose standards of practice and service shall be globally competitive and will
promote the growth of the real estate industry.” Since the marketing aspect of real estate
development projects entails the performance of those acts and transactions defined as real estate
service practices under Section 3(g) of R.A. No. 9646, it is logically covered by the regulatory
scheme to professionalize the entire real estate service sector.
No Conflict Between R.A. No. 9646 and P.D. No. 957, as amended by E.O. No. 648
Petitioners argue that the assailed provisions still cannot be sustained because they conflict with
P.D. No. 957 which decreed that the NHA shall have “exclusive jurisdiction to regulate the real
estate trade and business.” Such jurisdiction includes the authority to issue a license to sell to real
estate developers and to register real estate dealers, brokers or salesmen upon their fulfillment of
certain requirements under the law. By imposing limitations on real estate developers’ property
rights, petitioners contend that R.A. No. 9646 undermines the licenses to sell issued by the NHA
(now the HLURB) to real estate developers allowing them to sell subdivision lots or condominium
units directly to the public. Because the HLURB has been divested of its exclusive jurisdiction over

real estate developers, the result is an implied repeal of P.D. No. 957 as amended by E.O. No. 648,
which is not favored in law.
It is a well–settled rule of statutory construction that repeals by implication are not favored. In order
to effect a repeal by implication, the later statute must be so irreconcilably inconsistent and
repugnant with the existing law that they cannot be made to reconcile and stand together. The
clearest case possible must be made before the inference of implied repeal may be drawn, for
inconsistency is never presumed. There must be a showing of repugnance clear and convincing in
character. The language used in the later statute must be such as to render it irreconcilable with
what had been formerly enacted. An inconsistency that falls short of that standard does not suffice. 15
Moreover, t he failure to add a specific repealing clause indicates that the intent was not to repeal
any existing law, unless an irreconcilable inconsistency and repugnancy exist in the terms of the new
and old laws.16
There is nothing in R.A. No. 9646 that repeals any provision of P.D. No. 957, as amended by E.O.
No. 648. P.D. No. 957, otherwise known as “ The Subdivision and Condominium Buyers’ Protective
Decree,”17 vested the NHA with exclusive jurisdiction to regulate the real estate trade and business
in accordance with its provisions. It empowered the NHA to register, approve and monitor real estate
development projects and issue licenses to sell to real estate owners and developers. It further
granted the NHA the authority to register and issue/revoke licenses of brokers, dealers and
salesmen engaged in the selling of subdivision lots and condominium units.
E.O. No. 648, issued on February 7, 1981, reorganized the Human Settlements Regulatory
Commission (HSRC) and transferred the regulatory functions of the NHA under P.D. 957 to the
HSRC. Among these regulatory functions were the (1) regulation of the real estate trade and
business; (2) registration of subdivision lots and condominium projects; (3) issuance of license to sell
subdivision lots and condominium units in the registered units; (4) approval of performance bond and
the suspension of license to sell; (5) registration of dealers, brokers and salesman engaged in the
business of selling subdivision lots or condominium units; and (6) revocation of registration of
dealers, brokers and salesmen.18
E.O. No. 90, issued on December 17, 1986, renamed the HSRC as the Housing and Land Use
Regulatory Board (HLURB) and was designated as the regulatory body for housing and land
development under the Housing and Urban Development Coordinating Council (HUDCC). To date,
HLURB continues to carry out its mandate to register real estate brokers and salesmen dealing in
condominium, memorial parks and subdivision projects pursuant to Section 11 of P.D. No. 957,
which reads:
SECTION 11. Registration of Dealers, Brokers and Salesmen. – No real estate dealer, broker or
salesman shall engage in the business of selling subdivision lots or condominium units unless he
has registered himself with the Authority in accordance with the provisions of this section.
If the Authority shall find that the applicant is of good repute and has complied with the applicable
rules of the Authority, including the payment of the prescribed fee, he shall register such applicant as
a dealer, broker or salesman upon filing a bond, or other security in lieu thereof, in such sum as may
be fixed by the Authority conditioned upon his faithful compliance with the provisions of this Decree:
Provided, that the registration of a salesman shall cease upon the termination of his employment
with a dealer or broker.
Every registration under this section shall expire on the thirty–first day of December of each year.
Renewal of registration for the succeeding year shall be granted upon written application therefore
made not less than thirty nor more than sixty days before the first day of the ensuing year and upon
payment of the prescribed fee, without the necessity of filing further statements or information,
unless specifically required by the Authority. All applications filed beyond said period shall be treated
as original applications.

The names and addresses of all persons registered as dealers, brokers, or salesmen shall be
recorded in a Register of Brokers, Dealers and Salesmen kept in the Authority which shall be open
to public inspection.
On the other hand, Section 29 of R.A. No. 9646 requires as a condition precedent for all persons
who will engage in acts constituting real estate service, including advertising in any manner one’s
qualifications as a real estate service practitioner, compliance with licensure examination and other
registration requirements including the filing of a bond for real estate brokers and private appraisers.
While Section 11 of P.D. No. 957 imposes registration requirements for dealers, brokers and
salespersons engaged in the selling of subdivision lots and condominium units, Section 29 of R.A.
No. 9646 regulates all real estate service practitioners whether private or government. While P.D.
No. 957 seeks to supervise brokers and dealers who are engaged in the sale of subdivision lots and
condominium units, R.A. No. 9646 aims to regulate the real estate service sector in general by
professionalizing their ranks and raising the level of ethical standards for licensed real estate
professionals.
There is no conflict of jurisdiction because the HLURB supervises only those real estate service
practitioners engaged in the sale of subdivision lots and condominium projects, specifically for
violations of the provisions of P.D. No. 957, and not the entire real estate service sector which is now
under the regulatory powers of the PRBRES. HLURB’s supervision of brokers and dealers to
effectively implement the provisions of P.D. No. 957 does not foreclose regulation of the real estate
service as a profession. Real estate developers already regulated by the HLURB are now further
required to comply with the professional licensure requirements under R.A. No. 9646, as provided in
Sections 28, 29 and 32. Plainly, there is no inconsistency or contradiction in the assailed provisions
of R.A. No. 9646 and P.D. No. 957, as amended.
The rule is that every statute must be interpreted and brought into accord with other laws in a way
that will form a uniform system of jurisprudence. The legislature is presumed to have known existing
laws on the subject and not to have enacted conflicting laws. 19 Congress, therefore, could not be
presumed to have intended Sections 28, 29 and 32 of R.A. No. 9646 to run counter to P.D. No. 957.
No Violation of Due Process
Petitioners contend that the assailed provisions of R.A. No. 9646 are unduly oppressive and infringe
the constitutional rule against deprivation of property without due process of law. They stress that
real estate developers are now burdened by law to employ licensed real estate brokers to sell,
market and dispose of their properties. Despite having invested a lot of money, time and resources
in their projects, petitioners aver that real estate developers will still have less control in managing
their business and will be burdened with additional expenses.
The contention has no basis. There is no deprivation of property as no restriction on their use and
enjoyment of property is caused by the implementation of R.A. No. 9646. If petitioners as property
owners feel burdened by the new requirement of engaging the services of only licensed real estate
professionals in the sale and marketing of their properties, such is an unavoidable consequence of a
reasonable regulatory measure.
Indeed, no right is absolute, and the proper regulation of a profession, calling, business or trade has
always been upheld as a legitimate subject of a valid exercise of the police power of the State
particularly when their conduct affects the execution of legitimate governmental functions, the
preservation of the State, public health and welfare and public morals. 20 In any case, wh ere the
liberty curtailed affects at most the rights of property, the permissible scope of regulatory measures
is certainly much wider. To pretend that licensing or accreditation requirements violate the due
process clause is to ignore the settled practice, under the mantle of police power, of regulating entry
to the practice of various trades or professions.21

Here, the legislature recognized the importance of professionalizing the ranks of real estate
practitioners by increasing their competence and raising ethical standards as real property
transactions are “susceptible to manipulation and corruption, especially if they are in the hands of
unqualified persons working under an ineffective regulatory system.” The new regulatory regime
aimed to fully tap the vast potential of the real estate sector for greater contribution to our gross
domestic income, and real estate practitioners “serve a vital role in spearheading the continuous flow
of capital, in boosting investor confidence, and in promoting overall national progress.” 22
We thus find R.A. No. 9646 a valid exercise of the State’s police power. As we said in another case
challenging the constitutionality of a law granting discounts to senior citizens:
hanRoblesvirtualLawlibrary
The law is a legitimate exercise of police power which, similar to the power of eminent domain, has
general welfare for its object. Police power is not capable of an exact definition, but has been
purposely veiled in general terms to underscore its comprehensiveness to meet all exigencies and
provide enough room for an efficient and flexible response to conditions and circumstances, thus
assuring the greatest benefits. Accordingly, it has been described as “the most essential, insistent
and the least limitable of powers, extending as it does to all the great public needs.” It is “[t]he power
vested in the legislature by the constitution to make, ordain, and establish all manner of wholesome
and reasonable laws, statutes, and ordinances, either with penalties or without, not repugnant to the
constitution, as they shall judge to be for the good and welfare of the commonwealth, and of the
subjects of the same.”
For this reason, when the conditions so demand as determined by the legislature, property rights
must bow to the primacy of police power because property rights, though sheltered by due
process, must yield to general welfare.
Police power as an attribute to promote the common good would be diluted considerably if on the
mere plea of petitioners that they will suffer loss of earnings and capital, the questioned provision is
invalidated. Moreover, in the absence of evidence demonstrating the alleged confiscatory effect of
the provision in question, there is no basis for its nullification in view of the presumption of validity
which every law has in its favor.23 (Emphasis supplied.)
No Violation of Equal Protection Clause
Section 28 of R.A. No. 9646 exempts from its coverage natural and juridical persons dealing with
their own property, and other persons such as receivers, trustees or assignees in insolvency or
bankruptcy proceedings. However, real estate developers are specifically mentioned as an
exception from those enumerated therein. Petitioners argue that this provision violates the equal
protection clause because it unjustifiably treats real estate developers differently from those
exempted persons who also own properties and desire to sell them. They insist that no substantial
distinctions exist between ordinary property owners and real estate developers as the latter, in fact,
are more capable of entering into real estate transactions and do not need the services of licensed
real estate brokers. They assail the RTC decision in citing the reported fraudulent practices as basis
for the exclusion of real estate developers from the exempted group of persons under Section 28(a).
We sustain the trial court’s ruling that R.A. No. 9646 does not violate the equal protection clause.
In Ichong v. Hernandez,24 the concept of equal protection was explained as follows:
The equal protection of the law clause is against undue favor and individual or class privilege, as
well as hostile discrimination or the oppression of inequality. It is not intended to prohibit legislation,
which is limited either in the object to which it is directed or by territory within which it is to operate. It
does not demand absolute equality among residents; it merely requires that all persons shall be
treated alike, under like circumstances and conditions both as to privileges conferred and liabilities
enforced. The equal protection clause is not infringed by legislation which applies only to those

persons falling within such class, and reasonable grounds exists for making a distinction between
those who fall within such class and those who do not. (2 Cooley, Constitutional Limitations, 824–
825).25ChanRoblesVirtualawlibrary
Although the equal protection clause of the Constitution does not forbid classification, it is imperative
that the classification should be based on real and substantial differences having a reasonable
relation to the subject of the particular legislation. 26 If classification is germane to the purpose of the
law, concerns all members of the class, and applies equally to present and future conditions, the
classification does not violate the equal protection guarantee. 27
R.A. No. 9646 was intended to provide institutionalized government support for the development of
“a corps of highly respected, technically competent, and disciplined real estate service practitioners,
knowledgeable of internationally accepted standards and practice of the profession.” 28 Real estate
developers at present constitute a sector that hires or employs the largest number of brokers,
salespersons, appraisers and consultants due to the sheer number of products (lots, houses and
condominium units) they advertise and sell nationwide. As early as in the ‘70s, there has been a
proliferation of errant developers, operators or sellers who have reneged on their representation and
obligations to comply with government regulations such as the provision and maintenance of
subdivision roads, drainage, sewerage, water system and other basic requirements. To protect the
interest of home and lot buyers from fraudulent acts and manipulations perpetrated by these
unscrupulous subdivision and condominium sellers and operators, P.D. No. 957 was issued to
strictly regulate housing and real estate development projects. Hence, in approving R.A. No. 9646,
the legislature rightfully recognized the necessity of imposing the new licensure requirements to all
real estate service practitioners, including and more importantly, those real estate service
practitioners working for real estate developers. Unlike individuals or entities having isolated
transactions over their own property, real estate developers sell lots, houses and condominium units
in the ordinary course of business, a business which is highly regulated by the State to ensure the
health and safety of home and lot buyers.
The foregoing shows that substantial distinctions do exist between ordinary property owners
exempted under Section 28(a) and real estate developers like petitioners, and the classification
enshrined in R.A. No. 9646 is reasonable and relevant to its legitimate purpose. The Court thus rules
that R.A. No. 9646 is valid and constitutional.
Since every law is presumed valid, the presumption of constitutionality can be overcome only by the
clearest showing that there was indeed an infraction of the Constitution, and only when such a
conclusion is reached by the required majority may the Court pronounce, in the discharge of the duty
it cannot escape, that the challenged act must be struck down.29
Indeed, “all presumptions are indulged in favor of constitutionality; one who attacks a statute,
alleging unconstitutionality must prove its invalidity beyond a reasonable doubt; that a law may work
hardship does not render it unconstitutional; that if any reasonable basis may be conceived which
supports the statute, it will be upheld, and the challenger must negate all possible bases; that the
courts are not concerned with the wisdom, justice, policy, or expediency of a statute; and that a
liberal interpretation of the constitution in favor of the constitutionality of legislation should be
adopted.”30
WHEREFORE, the petition is DENIED. The Decision dated July 12, 2011 of the Regional Trial Court
of Manila, Branch 42 in Civil Case No. 10–124776 is hereby AFFIRMED and UPHELD.
No pronouncement as to costs.
SO ORDERED.
Sereno, C.J., Carpio, Velasco, Jr., Leonardo–De Castro, Brion, Peralta, Bersamin, Del Castillo,
Abad, Perez, Mendoza, Reyes, Perlas–Bernabe, and Leonen, JJ., concur.

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The Real Estate Service Act of the Philippines and

Implementing Rules and Regulations [ IRR ]

A. THE RESA ND IMPLEMENTING RULES AND REGULATIONS

B. THE REAL ESTATE SERVICE ACT OF THE PHILIPPINES

REPUBLIC ACT NO. 8646

REPUBLIC OF THE PHILIPPINES

PROFESSIONAL REGULATORY BOARD OF REAL

IMPLEMENTING RULES AND REGULATIONS

a. "Appraiser" also known as valuer, refers to a person who conducts valuation/appraisal;

The RESA and Implementing Rules and Regulations – CRES © 2014ATM | 2

h. “Accredited and Integrated Professional Organization (AIPO)” – the national integrated

i. “ Interim Accredited Professional Organization (IAPO)” – the professional organization

The RESA and Implementing Rules and Regulations – CRES © 2014ATM | 3

The RESA and Implementing Rules and Regulations – CRES © 2014ATM | 4

(a) citizen and resident of the Philippines;

The RESA and Implementing Rules and Regulations – CRES © 2014ATM | 5

(a) For real estate consultants:

1. fundamentals of real estate consulting;

(b) For real estate appraisers:

1. Fundamentals of real estate principles and practices;

The RESA and Implementing Rules and Regulations – CRES © 2014ATM | 6

(c) For real estate brokers:

1. Fundamentals of property ownership;

(a) A citizen of the Philippines,

The RESA and Implementing Rules and Regulations – CRES © 2014ATM | 7

(a) Procurement of a certificate of registration and/or professional identification card, or

The RESA and Implementing Rules and Regulations – CRES © 2014ATM | 8

The RESA and Implementing Rules and Regulations – CRES © 2014ATM | 9

SEC. 21. Reinstatement, Re-issuance or Replacement of Certificate of Registration, Professional

The RESA and Implementing Rules and Regulations – CRES © 2014ATM | 10

The RESA and Implementing Rules and Regulations – CRES © 2014ATM | 11

No salesperson shall be entitled to receive or demand a fee, commission or compensation of any

SEC. 32. Corporate Practice of the Real Estate Service.

The RESA and Implementing Rules and Regulations – CRES © 2014ATM | 12

The RESA and Implementing Rules and Regulations – CRES © 2014ATM | 13

1. a fine of not less than one hundred thousand pesos (P100,000.00) or

SEC. 44.. Repealing Clause.

The RESA and Implementing Rules and Regulations – CRES © 2014ATM | 14

Done in the City of Manila this 21st day of July, 2010

REMMAN ENTERPRISES, INC. AND CHAMBER OF REAL ESTATE AND BUILDERS’

VILLARAMA, JR., J.:

The RESA and Implementing Rules and Regulations – CRES © 2014ATM | 15

The RESA and Implementing Rules and Regulations – CRES © 2014ATM | 16

Hence, this appeal on the following questions of law:chanRoblesvirtualLawlibrary

1. Whether there is a justiciable controversy for this Honorable Court to adjudicate;

The Court’s Ruling

The petition has no merit.

The RESA and Implementing Rules and Regulations – CRES © 2014ATM | 17

No Violation of One–Title One–Subject Rule

Section 26(1), Article VI of the Constitution states:chanRoblesvirtualLawlibrary

The RESA and Implementing Rules and Regulations – CRES © 2014ATM | 18

The primary objective of R.A. No. 9646 is expressed as follows:

The RESA and Implementing Rules and Regulations – CRES © 2014ATM | 19

The RESA and Implementing Rules and Regulations – CRES © 2014ATM | 20

No Violation of Due Process

The RESA and Implementing Rules and Regulations – CRES © 2014ATM | 21

No Violation of Equal Protection Clause

In Ichong v. Hernandez,24 the concept of equal protection was explained as follows:

The RESA and Implementing Rules and Regulations – CRES © 2014ATM | 22

The RESA and Implementing Rules and Regulations – CRES © 2014ATM | 23

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