Top Ten: March 2012 Real Estate Brokers Licensure Examination

-->

The Successful Examinees Who Garnered The Ten (10) Highest Places Are The Following:

Rank - Name - School - Rating (%)

1

Rafael Emmanuel Religioso Villadiego University Of The Philippines-Diliman 88.75

2

Nelson Rodavia Gorom University Of Nueva Caceres 88.25

3

Chloe Chizu Go Cedenio Go De La Salle University-Manila 87.50

4

Ma Rosario Chu Dizon University Of The Philippines-Diliman 87.00

Rey Nathaniel Cagulada Ifurung Ateneo De Manila University-Manila 87.00

5

Genevieve Padua Ayochok University Of The Cordilleras (For.Baguio C.F.) 86.50

Ricardo Jose Sanchez Consunji III University Of The Philippines-Diliman 86.50 

Alton Camacho Durban University Of The Philippines-Diliman 86.50

Joan Lou Po Gamboa De La Salle University-Manila 86.50

Minnie Palo Leongson Holy Angel University 86.50

Jose Ramon Villacorta Villatuya University Of Santo Tomas 86.50

6

Victor Michael Patricio Anastacio Ateneo De Manila University-Q.C. 86.25

Dax Orlando Beleno Dizon Jr University Of The Philippines-Diliman 86.25

Richard Joseph Fernando Elias Ateneo De Manila University-Q.C. 86.25

Mary Rocelyn Petalver Lim Ateneo De Manila University-Q.C. 86.25

Jose Orlando Imperial Lozada De La Salle University-Manila 86.25

Sharon Anne Go Ong Ateneo De Manila University-Q.C. 86.25

Deborah Trisha Ngo Que De La Salle University-Manila 86.25

Ethel Angelie Cabatingan Relampagos University Of San Carlos 86.25

7

Elmer Macaalay Castillo University Of The Philippines-Diliman 86.00

Michael Lavezares Cañete Divine Word University-Tacloban 86.00

Sarah Eufrosina Daclan Celino University Of The Philippines-Diliman 86.00

Orlando Caranto De Guzman San Beda College 86.00

Luis Wenceslao Trinidad Fuentes De La Salle University-Manila 86.00

Paulo Ferdinand Medalla Luna University Of The Philippines-Los Baños 86.00

Bryan Christopher Ngo Que De La Salle University-Manila 86.00

8

Mark Juan Abelon University Of The Philippines-Diliman 85.75 

Alex Joseph De Guzman Coloquio Ateneo De Manila University-Q.C. 85.75

Catherine Marie Suzanne Escaler De Leon De La Salle University-Manila 85.75

John Abbe Lancita Gardiola University Of The Philippines-Los Baños 85.75

Radden Opeña Nibungco University Of Santo Tomas 85.75

Rizalina Castro Quilit Ateneo De Manila University-Q.C. 85.75

9

Jose Lustre Basa Philippine College Of Health & Sciences 85.50

Maria Adiel Santos Bonifacio Ateneo De Manila University-Q.C. 85.50

Shann Nicoleby Siy Chan Ateneo De Manila University-Q.C. 85.50

Margaret Peralta Gan University Of The Philippines-Diliman 85.50

Gregor Timothy Oreto Marcaida Pamantasan Ng Lungsod Ng Maynila 85.50

Jamille Filomena Aquino Molina University Of The Philippines-Diliman 85.50 

Vanessa Dugui-Es Palay Saint Louis University 85.50

Rhea Angela Diez Tan-Tago Ateneo De Manila University-Q.C. 85.50

Jose Manuel Teofilo Juan Paulotan Kiang Villonco Ateneo De Manila University-Q.C. 85.50

Evelyn Cabrera Viray University Of The Philippines-Diliman 85.50

10 

Emmanuel Liboon Benitez University Of The Philippines-Diliman 85.25

Ray Rosello De Yro Blancaflor Saint Paul University-Tuguegarao 85.25

Deborah Blanca Rivera Esquivias University Of The Philippines-Diliman 85.25 

Arvel Sojor Lara Ramon Magsaysay Memorial Colleges 85.25

Michael Balacuit Quililan University Of The Philippines-Diliman 85.25

Rimmon Resus Sendiong Cebu Doctors University 85.25

Edita Vitto Soberano Adamson University 85.25

Lily Jane Gallardo Tablante University Of The Philippines-Diliman 85.25

Steven Fredric Española Tiong University Of Santo Tomas 85.25

Batas Pambansa 220 - B.P. 220

REPUBLIC OF THE PHILIPPINES

BATASANG PAMBANSA

Fourth Regular Session

P.B. No. 1880

BATAS PAMBANSA BLG. 220

AN ACT AUTHORIZING THE MINISTRY OF HUMAN  

SETTLEMENTS TO ESTABLISH AND PROMULGATE  

DIFFERENT LEVELS OF STANDARDS AND TECHNICAL  

REQUIREMENTS FOR ECONOMIC AND SOCIALIZED  

HOUSING PROJECTS IN URBAN AND RURAL AREAS  

FROM THOSE PROVIDED UNDER PRESIDENTIAL  

DECREES NUMBERED NINE HUNDRED FIFTY-SEVEN,  

TWELVE HUNDRED SIXTEEN, TEN HUNDRED NINETY-SIX  

AND ELEVEN HUNDRED EIGHTY-FIVE

BE IT ENACTED BY THE BATASANG PAMBANSA IN SESSION ASSEMPLED:

SECTION 1. It is hereby declared a policy of the Government to promote and 

encourage the development of economic and socialized housing projects, primarily by the private sector, in order to make available adequate economic and socialized housing units for average and low-income earners in urban and rural areas. 

SECTION 2.  As used in this Act, economic and socialized housing refers to 

housing units which are within the affordability level of the average and low-income earners which is thirty percent (30%) of the gross family income as determined by the National Economic and Development Authority from time to time. It shall also refer to the government-initiated sites  and services development and construction of economic and socialized housing projects in depressed areas.  

SECTION 3.  To carry out the foregoing policy, the Ministry of Human 

Settlements is authorized to establish and promulgate different levels of standards and technical requirements for the development of economic and socialized housing projects and economic and socialized housing units in urban and rural areas from those provided in Presidential Decree Numbered Nine hundred fifty-seven, otherwise known as the "Subdivision and Condominium Buyers' Protective Decree," Presidential Decree Numbered Twelve hundred and sixteen,  "Defining Open Space in Residential Subdivision"; Presidential  Decree Numbered Ten Hundred  and ninety-six, otherwise known as the "National Building Code of the Philippines"; and Presidential Decree Numbered Eleven hundred and eighty-five, otherwise known as the "Fire Code of the Philippines" and the rules and regulations promulgated thereunder, in consultation with the Ministry of Public Works and Highways, the Integrated National Police, and other appropriate government units and instrumentalities and private associations. 

SECTION 4.  The standards and technical requirements to be established under Section three hereof shall  provide for environmental ecology, hygiene and cleanliness, physical, cultural and spiritual development and public safety and may vary in each region, province or city depending on the availability of indigenous materials for building construction and other relevant factors. 

SECTION 5.  The different levels of standards and technical requirements that 

shall be established and promulgated by the Ministry of Human Settlements only after public hearing and shall be published in two newspapers of general circulation in the Philippines for at least once a week for two consecutive weeks and shall take effect thirty days after the last publication.  

SECTION 6.  This Act shall take effect upon its approval. 

Approved, March 25, 1982.  

Prs-032-0022

-->

Real Property Buyer's Guide

Before Buying

1. Check if the Project has a Certificate of Registration and License to Sell.

You should ask the broker/agent of the owner/developer if the project is registered and has a License to Sell issued by HLURB:

* This can be verified at the On-line Queries/HLURB website (www.hlurb.gov.ph) for the list of projects covered with Certificate of Registration and License to Sell as well as any encumbrance thereon, e.g. Cease and Desist Order, Suspension of License, etc.;

* Or you may visit or call the nearest HLURB Regional Office for this information.

2. Visit the subdivision/condominium, where the house and lot or condo unit to be purchased is located to know its natural topography, viz: susceptibility to landslide, flooding, erosion, etc.;

If the project is covered with a License to Sell, you may already enter into a Contract with the owner/developer. However, there are things which must be checked:

1. The date of completion of the project as indicated in the License to Sell;

2. If the property is mortgaged, it should have a Clearance to Mortgage from the HLURB;

3. The facilities and amenities represented in the advertisement flyers/ brochures are in accordance with the approved subdivision and condominium plan on file with HLURB.

When Buying

1. Check if the broker/agent is registered with HLURB/DTI;

2. Verify if the property has not been sold to other buyers with the Register of Deeds;

3. Check into your source of income whether you can afford to pay the equity and the monthly installments;

4. Check if the materials of the house or condo unit conform with the development standards and approved construction specifications submitted to HLURB;

5. Check whether the developer would payfor the water and electric meters, the subdivision perimeter fence, etc;.

6. Check who would eventually operate the subdivision/condominium water system.

Before Signing the Contract to Sell

1. Don’t sign any blank form of the Contract;

2. Read thoroughly all the contents of the Contract more especially the terms and conditions in fine print;

3. Secure a copy of the Contract and all other documents that you have signed;

4. Make sure that the Contract would be registered by the owner/developer to the Register of Deeds;

5. Pay directly to the owner/developer or the marketing agent authorized by said owner/developer only; and

6. Ask an official receipt on all payments for your file.

Source: www.hlurb.gov.ph

-->

Sample computation of capital gains tax (CGT) on sale of real property

Mr. Santos sells a residential lot in Pasig City with a floor area of 200sqm on cash with Selling Price of P3 Million. Mr. Santos is not engaged in a real estate business. The proceeds from the sale will be used by Mr. Santos for his trip to US and other personal expenses.  The following are the fair market value information of the real property:

1. Fair Market Value as determined by BIR Commissioner (Zonal Value/BIR Rules):

1a. Land: P1,600,000 (let us say BIR Zonal value is P8,000/sqm [200 x 8,000=1,600,000])

1b. Improvement: P1,200,000

2. Fair Market Value as determined by Provincial/City Assessor’s (per latest Tax Declaration):

2a. Land: P1,400,000

2b. Improvement: P1,300,000

How much is the Capital Gains Tax?

Answer/solution:

Step 1. Determine the highest fair value (FMV):

Total FMV1 (1a + 1b): P2,800,000

Total FMV2 (2a + 2b): P2,700,000

Total FMV3 (1a + 2b): P2,900,000

Total FMV4 (2a + 1b): P2,600,000

The Highest FMV is FMV3: P2,900,000. This is the FV we will use in the step 2.

Step 2. Determine the higher between FMV and Selling Price:

FMV = P2,900,000

Selling Price = P3,000,000

The higher value is the selling price P3,000,000. This is our tax base for computing Capital Gains Tax.

Step 3. Calculate Capital Gains Tax.

CGT = P3,000,000 x 6%

CGT = P180,000

For more info on CGT check http://www.bir.gov.ph/taxinfo/tax_capgin.htm

-->

Source:http://businesstips.ph/how-to-compute-capital-gains-tax-on-sale-of-real-property/

Incoming search terms:

CGT on sale of real estate

real property tax

taxes on sale of real property

fair market value of real estate

illustration of CGT computation

how to compute capital gains

The Real Estate Mortgage Law

Real Estate Mortgage Law
(Act 3135, as amended by RA 4118)

a. Coverage

Governs sales made under a special power inserted in or attached to any real-estate mortgage, which is made as security for the payment of money or the fulfillment of any other obligation. The Act will govern the manner in which the sale and redemption shall be effected, whether or not provision for the same is made in the power. (Sec 1, Act 3135)

The law covers only real estate mortgages. It is intended merely to regulate the extrajudicial sale and redemption of the property if and when the mortgagee is given a special power or express authority to do so in the deed itself or in a document annexed thereto.

b. Remedies available to mortgagee upon default of the mortgagor

            The mortgagee has a choice of one (1) of two (2) remedies, but he cannot have both. The mortgagee may (i) foreclose the mortgage or (ii) file an ordinary action to collect the debt, i.e. specific performance.

            When the mortgagee chooses the foreclosure of the mortgage as a remedy, he enforces his lien by the sale on foreclosure of the mortgaged property. The proceeds of the sale will be applied to the satisfaction of the debt. With this remedy, he has a prior lien on the property. In case of a deficiency, the mortgagee has the right to claim for the deficiency resulting from the price obtained in the sale of the real property at public auction and the outstanding obligation at the time of the foreclosure proceedings. (Soriano v. Enriquez, 24 Phil. 584; Banco de Islas Filipinas v. Concepcion Hijos, 53 Phil. 86; Banco Nacional v. Barreto, 53 Phil. 101)

On the other hand, if the mortgagee resorts to an action to collect the debt, he thereby waives his mortgage lien. He will have no more priority over the mortgaged property. If the judgment in the action to collect is favorable to him, and it becomes final and executory, he can enforce said judgment by execution. He can even levy execution on the same mortgaged property, but he will not have priority over the latter and there may be other creditors who have better lien on the properties of the mortgagor. Caltex Phils. vs. IAC, August 25, 1989

If mortgagor issues post-dated checks, resorting to a criminal action for violation of BP 22 also precludes the remedy of foreclosure and vice versa. Recovery of the amount due is deemed included in the action for violation of BP 22.

TIP: If the mortgage covers the total claim, then foreclose. If not, still foreclose for after all you can still collect the deficiency from the principal debtor (if mortgagor is a third person), not the mortgagor unless the latter bound himself solidarily liable with the borrower. Make it a last resort to file a criminal action because in reality it takes much longer to pursue BP 22.

c. Need for special power of attorney

            Under Section 1 of Act No. 3135, a special power of attorney must be inserted in or attached to any Real Estate Mortgage.

Without proof of petitioner's special authority to foreclose, the Clerk of Court as Ex-Oficio Sheriff is precluded from acting on the application for extrajudicial foreclosure. (Office of the Court Administrator v. Pardo, RTJ-08-2109, April 30, 2008; Casano v. Magat, 425 Phil. 356, 360-361 (2002); Paguyo v. Gatbunton, A.M. No. P-06-2135, May 25, 2007, 523 SCRA 156, 161).

d. Authority to foreclose extrajudicially

           

            A mortgage may be foreclosed extrajudicially where there is inserted in the contract a clause giving the mortgagee the power upon default of the debtor, to foreclose the mortgage by an extrajudicial sale of the mortgaged property. The authority to sell is not extinguished by the death of the mortgagor (or mortgagee).

e. Procedure

(1) Where to file

All applications shall be filed with the Executive Judge through the Clerk of Court, who is also the Ex-Officio Sheriff. See Sec. 1, Circular No. 7-2002, Guidelines for the enforcement of Supreme Court Resolution of December 14, 1999 in A.M. no. 99-10-05-0 (re: Procedure in extra-judicial foreclosure of mortgage), as amended by the Resolutions dated January 30, 2001 and August 7, 2001.

(2) Where to sell

           

Province where the property is situated. (Sec. 2, R.A. 3135, as amended) Sale cannot be made legally outside of the province in which the property sold is situated.

If venue is subject to stipulation, such sale shall be made in said place (i.e., the place so stipulated) or in the municipal building of the municipality in which the property or part thereof is situated. (ibid.)

(3) Posting requirement

Notice of the sale is posted in at least three (3) public places of the municipality or city (Sheriff’s Office, Assessor’s Office and Register of Deeds) where the property is situated for not less than twenty (20) days and published once a week for at least three (3) consecutive weeks in a newspaper of general circulation in the municipality or city (Sec. 3, ibid). Posting of notice on mortgaged property not required.

Failure to advertise a mortgage foreclosure sale in compliance with statutory requirements constitutes a jurisdictional defect invalidating the sale. A substantial error or omission in a notice of sale will render the notice insufficient and vitiate the sale. (PNB v. Nepomuceno, 394 SCRA 405, 2002)

           

(4) Publication requirement

         (a) Sufficiency of newspaper publication

Notice shall also be published once a week for at least three (3) consecutive weeks in a newspaper of general circulation. The newspaper need not have the largest circulation so long as it is of general circulation. To be a newspaper of general circulation, it is enough that it is published for the dissemination of local news and general information; that it has a bona fide subscription list of paying subscribers; and that it is published at regular intervals.  The newspaper must not be devoted to the interests or entertainment of a particular class, profession, trade, calling, race or religious denomination. The newspaper need not have the largest circulation so long as it is of general circulation (Perez vs. Perez (2005)) in the municipality or city where the property is located. Metrobank v. Peñafiel, G.R. No. 173976 Feb. 27, 2009

(b) Need for republication in case of postponement

Republication is necessary for the validity of a postponed extrajudicial foreclosure sale. Another publication is required in case the auction sale is rescheduled, and the absence of such republication invalidates the foreclosure sale. The last paragraph of the prescribed notice of sale (under SC Circular 7-2002) allows the holding of a rescheduled auction sale without reposting or republication of the notice. In the event the public auction should not take place on the said date, it shall be held on ___________,______ without further notice.  However, the rescheduled auction sale will only be valid if the rescheduled date of auction is clearly specified in the prior notice of sale.  The absence of this information in the prior notice of sale will render the rescheduled auction sale void for lack of reposting or republication. (DBP vs. Emerald Resorts Hotel)

(c) Personal notice to the mortgagor when and when not needed

General Rule: Personal notice to the mortgagor is not generally required. Exception: Unless required in the mortgage contract, the lack of personal notice to the mortgagor is not a ground to set aside a foreclosure sale.

            Unless otherwise stipulated by the parties to the mortgage contract, the debtor-mortgagor need not be personally served a copy of the notice of the extra- judicial foreclosure.  SC Circular 7-2002

f. Possession by purchaser of foreclosed property

Upon failure of the debtor to redeem the property within one (1) year after the date of the registration of the certificate of sale, winning bidder becomes the absolute owner.

g. Remedy of debtor if foreclosure is not proper

Within thirty (30) days after the purchaser is given possession of the property, the debtor may petition that the sale be set aside on the ground that the mortgage was not violated or the sale was not made in accordance with the provisions of Act 3135. (Sec. 8. This may be done in the proceedings in which possession was requested)

h. Redemption

            Right of Redemption is the right of the mortgagor to redeem the mortgage property within a certain period (1 year) after it was sold for the satisfaction of the mortgage debt.

Requisites for valid redemption:

     1. Redemption within 1 year from registration of sale;

   2. Payment of purchase price plus 1% interest per month thereon if any, paid by purchaser; and

     3. Written notice of redemption served on officer who made the sale.

(1) Who may redeem

a.    The debtor;

b.    The debtor's successors-in-interest;

c.    Any judicial creditor or judgment creditor of the debtor;

d.    Any person having a lien on the property subsequent to the mortgage or deed of trust under which the property is sold (Redemption price to be paid by accommodation mortgagors).

(2) Amount of Redemption price

a.   Limited to the winning bid price plus twelve percent (12%) interest per annum.

b. Purchase price if judgment obligor. Sum paid on last redemption if redemptioner. (Rule 39, Sec. 28, Rules of Court). The redemptioner should make an actual tender in good faith of the full amount of the purchase price (Hi-Yield Realty vs. CA (2002)

(3) Period for redemption

Natural persons: Within 1 year from and after the date of the sale. Sec. 6

Juridical persons: Until but not after the registration of the certificate of foreclosure sale with the applicable Register of Deeds, which in no case shall be more than 3 months after foreclosure, whichever is earlier. (Sec. 47, R.A. 8791)

(4) Effect of pendency of action for annulment of sale

The filing of court action to enforce redemption has effect of preserving the redemptioner’s rights; and freezing the expiration of one year period to redeem. (Banco Filipino v Court of Appeals)

i. Writ of possession

(1) Ministerial duty of the court

The duty of the trial court to grant a writ of possession is ministerial. Such writ issues as a matter of course upon the filing of the proper motion and the approval of the corresponding bond. Any question regarding the regularity and validity of the sale is to be determined in a subsequent proceeding. (Sec. 8). Mandamus will lie.

The judge to whom an application for writ of possession is filed need not look into the validity of the mortgage or the manner of its foreclosure. In the issuance of a writ of possession, no discretion is left to the Trial Court. Any question regarding the cancellation of the writ in respect to the validity/regularity of the foreclosure sale or the mortgage should be determined in a subsequent proceeding (PNB v. Sanao).  Such question cannot be raised to oppose the issuance of the writ, since the proceeding is ex parte. (Samson vs Rivera, 2004)

After the consolidation of title in the buyer’s name for failure of the mortgagor to redeem, the writ of possession becomes a matter of right

(2) Enforcement against third parties

            The purchaser or last redemption shall be entitled to possession of the property upon the finality of the order of confirmation or upon the expiration of the period of redemption, unless a third party is actually holding the same adversely to the judgment debtor.

(3) Pendency of action for annulment of sale

            The pendency of a separate civil suit questioning the validity of the sale of the mortgaged property cannot bar the issuance of the writ of possession. DBP vs Spouses Gatal (2005)

j. Annulment of sale (See g. Remedy of debtor if foreclosure is not proper, supra)

READ ALSO: Full Text of Act 3135 Real Estate Mortgage Law

Incoming search terms:

real estate mortgage law

redemption of mortgage

procedure for foreclosure

writ of possession

foreclosure of mortgage

annulment of sale

extrajudicial foreclosure

remedies on foreclosure

rules of court

Act 3135

Coverage and Instructions for the Real Estate Broker Exam

Here is the PRC Board of Real Estate Service Program of the Real Estate Brokers’ Licensure Examinations which will be conducted on Sunday, 27 March 2011 in Manila,Baguio,Cagayan De Oro,Iloilo,Cebu, and Davao Cities 

7:00AM to 7:45AM – General Instructions and Filling Up of Forms
8:00AM to 10:00AM – General / Fundamentals of Real Estate Service(25%)
11:00AM to 1:00PM – Special and Technical Knowledge(25%)
2:00PM to 6:00PM – Professional Practice(50%)

Coverage of PRC Real Estate Brokers Exam 

General/Fundamentals of Real Estate Service

•Fundamentals of Property Ownership
•Code of Ethics and Responsibilities
•Legal Requirements for Real Estate Service (RA 9646 / IRR)
•Real Estate Laws and Taxation (Agri Law, CARPER, RA 7160 / 8424, etc)

Special and Technical Knowledge

•Subdivision Development (includes PD 957, BP 220, RA 7279, etc)
•Condominium Concepts and Other Types of Real Estate Holdings
•Legal Aspect of Sale, Mortgage and Lease
•Documentation and Registration

Professional Practice

•Real Estate Brokerage Practice
•Real Estate Finance and Economics
•Urban and Land Use
•Planning, Development and Zoning
•Basic Principles of Ecology
•Basic Appraisal for Real Estate Brokers

General Instructions:

1. Visit your school/building assignment prior to the day of the examination.

2. Report to the school / building assignment before 6:30AM on the first day of theexamination to verify your room and seat number. Be punctual, because lateexaminees will not be admitted. Examination fee of ABSENT examinees will beforfeited. 

3. Examinees are required to wear the following attire every examination day:

o Male Examinees – White polo shirts, or white t-shirts with collar
o Female Examinees – White blouses, or white t-shirts with collar

4. Bring the following on examination day:

a. Notice of Admission

b. Official Receipt

c. One (1) piece metered-stamped Window Mailing Enveloped. 

d. Two (2) or more pencils (No. 1 or No. 2)[NOTE from RESAR] Bring eraser.

e. Ballpen with BLACK INK only

f. One (1) piece Long Brown Envelopeg. One (1) piece Long Transparent (non-colored) Plastic Envelope (for keepingyour valuables and other allowed items)

The following are PROHIBITED inside the examination premises/rooms:. Programmable Calculators (check the list of non-programmable calculators at the PRC)

a. CELLULAR PHONES, portable computers, BlueTooth or similargadgets/devices.

b. Bags of any kind (Ladies bag and shoulder bags, attache case, backpacks,etc)

c. Other examination aides not stated on this program.

NOTE: 

PRC WILL NOT BE RESPONSIBLE FOR PROHIBITED ITEMS THAT WILL BE LOST. 

Read carefully and follow the instructions on your Notice of Admission 

--> Source: http://www.scribd.com/doc/47969237/PRC-2011-RES-Broker-s-Board-Exam-Program

Implementing Rules and Regulations (IRR) of the Real Estate Service Act (RESA)

-->

REPUBLIC OF THE PHILIPPINES

PROFESSIONAL REGULATION COMMISSION

PROFESSIONAL REGULATORY BOARD OF REAL ESTATE SERVICE

Manila

IMPLEMENTING RULES AND REGULATIONS

OF THE REAL ESTATE SERVICE ACT OF THE PHILIPPINES

Pursuant to Sec. 42 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” or the “Real Estate Service Act of the Philippines,” the following Implementing Rules and Regulations are hereby adopted.

RULE I

TITLE OF THE RULES, DECLARATION OF POLICY &

DEFINITION OF TERMS

SECTION 1. Title – These Rules shall be known as “THE RULES AND REGULATIONS IMPLEMENTING THE PROVISIONS OF REPUBLIC ACT NO. 9646” otherwise known as the “Real Estate Service Act of the Philippines.”

SECTION 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.

SECTION 3. Definition of Terms – As used in these Rules, the following terms shall be defined 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:

                        i.        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.

                       ii.        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.

                      iii.        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.

                      iv.        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.

                       v.        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 Professional Organization (APO) of Real Estate Service Practitioners – the integrated national organization recognized by the Board, as may be approved by the Commission, composed of natural persons duly registered and licensed by the Commission to practice real estate.

RULE II

PROFESSIONAL REGULATORY BOARD OF REAL ESTATE SERVICE

SECTION 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. The first Board shall be organized within six (6) months from the effectivity of this Act.

SECTION 5. Powers and Functions of the Board. – The Board is hereby vested the following powers and functions:

1.    Provide comprehensive policy guidelines for the promotion and development of the real estate industry;

2.    Conduct licensure examinations for the practice of the real estate service profession and prescribe the appropriate, syllabi of the subjects for examination;

3.    Issue, suspend, revoke or reinstate, after due notice and hearing, certificates of registration or professional identification cards for the practice of real estate service;

4.    Maintain a comprehensive and updated register of licensed real estate service professionals;

5.    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;

6.    Adopt a national Code of Ethics and Responsibilities to be strictly observed by all licensed real estate service practitioners;

7.    Hear or investigate any violation of the Act, its implementing rules and regulations, 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;

8.    Safeguard and protect legitimate and licensed real estate service practitioners and, in coordination with the accredited and integrated professional organization 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;

9.    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;

10.  Promulgate, administer and enforce rules and regulations necessary in carrying out the provisions of the Act;

11.  Supervise and regulate the registration, licensure and practice of real estate service in the Philippines;

12.  Assess and fix the rate of reasonable regulatory fees;

13.  Administer oaths and affirmations;

14.  Adopt an official seal of the Board;

15.  Evaluate periodically the status of real estate service education and profession, and recommend and/or adopt measures to upgrade and maintain its high standard;

16.  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;

17.  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;

18.  Monitor and supervise the activities of the accredited and integrated professional organization and other associations of real estate service practitioners; and

19.  Discharge such other powers, duties and functions as the Commission may deem necessary to carry out the provisions of this Act.

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.

SECTION 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:

1.    A citizen and resident of the Philippines;

2.    A holder of a bachelor’s degree related to real estate;

3.    An active licensed practitioner of real estate service for at least ten (10) years prior to his/her appointment;

4.    4. 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;

5.    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

6.    Of good moral character, and must not have been convicted by final judgment by a competent court of a criminal offence involving moral turpitude.

SECTION 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.

SECTION 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.

SECTION 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 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;
8.    Tampering of the grades therein,
9.    For any final judgment or conviction of any criminal offence involving moral turpitude.

SECTION 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 and shall provide the secretariat and other support services to implement the provisions of RA No. 9646 subject to the usual government accounting and auditing rules and regulations.

SECTION 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

SECTION 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 RA 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.

SECTION 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:

1.    For real estate consultants:

a.    Fundamentals of real estate consulting;
b.    Standards and ethics;
c.     Consulting tools and techniques, which include project feasibility study and investment measurement tools;
d.    Real estate finance and economics;
e.    Real estate consulting and investment analyses;
f.     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;
g.    Land management system and real property laws; and
h.    any other related subjects as may be determined by the Board;

2.    For real estate appraisers:

a.    Fundamentals of real estate principles and practices;
b.    Standards and ethics;
c.     Theories and principles in appraisal;
d.    Human and physical geography;
e.    Methodology of appraisal approaches;
f.     Valuation procedures and research;
g.    Appraisal of machinery and equipment;
h.    Practical appraisal mathematics;
i.      Appraisal report writing;
j.     Real estate finance and economics;
k.    Case studies;
l.      Land management system and real property laws; and
m.   any other related subjects as may be determined by the Board; and

3.    For real estate brokers:

a.    Fundamentals of property ownership;
b.    Code of ethics and responsibilities;
c.     Legal requirements for real estate service practice;
d.    Real estate brokerage practice;
e.    Subdivision development;
f.     Condominium concept;
g.    Real estate finance and economics;
h.    Basic principles of ecology;
i.      Urban and rural land use;
j.     Planning, development and zoning;
k.    Legal aspect of sale, mortgage and lease;
l.      Documentation and registration;
m.   Real property laws; and
n.    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 as may be necessary.

SECTION 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:

1.    A citizen of the Philippines;

2.    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 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.

3.    Is of good moral character, and must not have been convicted of any crime involving moral turpitude.

4.    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; Provided, thatsuch applicant for Real Estate Broker shall have taken eighteen (18) units of real estate subjects and applicant for Real Estate Appraiser shall have taken twenty (24) units of real estate subjects as stated in Section 13  hereof, as may be determined by the Board.

All applications for examination shall be filed with the Board which shall assess and approve said applications and issue to the qualified examinees the corresponding permits to take such examination in accordance with the requirements set by the Commission.

SECTION 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 procedures on the implementation of this provision.

SECTION 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 newspaper of general circulation. Provided, that the report of rating may be distributed to the successful examinees as may be determined by the Commission.

SECTION 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.

SECTION 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.

SECTION 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:

1.    Procurement of a certificate of registration and/or professional identification card, or special/temporary permit by fraud or deceit;

2.    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;

3.    Unprofessional or unethical conduct;

4.    Malpractice or violation of any of the provisions of this Act, its implementing rules and regulations, and the Code of Ethics and Responsibilities for real estate service practitioners; and

5.    Engaging in the practice of the profession during the period of one’s suspension.


SECTION 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:

1.    Those who, on the date of the effectivity of R.A. No. 9646 or as of 31 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 have undertaken relevant Continuing Professional Education (CPE) to the satisfaction of the Board; Provided that the following practitioners shall be allowed to register:

a.    Any active licensee who has secured or earned fifteen (15) CPE credit units;

b.    Those who failed to renew as of 31 July 2009 but have secured or earned twenty-four (24) CPE credit units;

c.    Those who have passed the May 2009 licensure examinations given by the DTI but failed to obtain their license upon the effectivity of the Act and have secured or earned twelve (12) CPE credit units;

d.    Those who have passed the May 2008 licensure examinations given by the DTI but failed to obtain their license upon the effectivity of the Act and have secured fifteen (15) 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 the Act, on or before 31 July 2011, shall be required to take the licensure examination.

2.    Assessors and appraisers who, on the date of the effectivity of R.A. No. 9646 or as of 31 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

3.    Assessors and appraisers who, on the date of the effectivity of R.A. No. 9646 or as of 31 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 recognized by the Board and relevant CPE to the satisfaction of the Board.

Those falling under categories (2) and (3) shall register with the Board after they shall have complied with the requirements for registration as real estate appraisers, as stated in paragraph (1) heretofore. Provided,that those seeking to be licensed to a new credential level shall be required to take the pertinent licensure examination.

All CPEs conducted prior to the implementation of these Rules shall be accredited and recognized by the Board upon recommendation of the Accredited Professional Organization (APO), including those conducted by the Department of Finance (DOF) through the Bureau of Local Government Finance (BLGF) and other government agencies. The Board reserves the right to reject any CPE which it deems not relevant to the practice of real estate service. However, upon implementation of these Rules, all CPEs shall be subject to the prior approval of the Board.

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 31 July 2011. Provided that the renewal of the professional identification card is subject to the provisions of Section 17 hereof.

SECTION 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.

SECTION 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.

SECTION 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.

SECTION 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 card, be issued a Special/Temporary Permit, or be entitled to any of the privileges under this Act 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.

RULE IV

PRACTICE OF REAL ESTATE SERVICE

SECTION 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.

SECTION 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.

SECTION 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.

SECTION 28. Exemptions from the Acts Constituting the Practice of Real Estate Service. The provisions of R.A. No. 9646 and this IRR shall not apply to the following:

1.    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 with respect to their external brokers or agents;

2.    Any receiver, trustee or assignee in bankruptcy or insolvency proceedings;

3.    Any person acting pursuant to the order of any court of justice;

4.    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

5.    Public Officers in the performance of their official duties and functions, except government assessors and appraisers.

SECTION 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 these Rules 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 hereto provided.

SECTION 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 this Act shall be construed to reduce any benefit, interest, or right enjoyed by the incumbents at the time of the enactment of this Act. The appointing authority shall exercise his power to appoint the assessor in accordance with the provisions of this Act only when a vacancy occurs.

SECTION 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, and 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 this Act 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.

SECTION 32. Corporate Practice of the Real Estate Service.

1.    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.

2.    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. 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.

3.    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.

SECTION 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 as well as the certificates of registration of all the real estate service practitioners employed in such office.

SECTION 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.

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. 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.

SECTION 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 of real estate service practitioners.

SECTION 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.

SECTION 37. Enforcement Assistance to the Board. The Board shall be assisted by the Commission in carrying out the provisions of this Act and its implementing rules and regulations and other policies. The lawyers of the Commission shall act as prosecutors against illegal practitioners and other violators of this Act and its rules. The duly constituted authorities of the government shall likewise assist the Board and the Commission in enforcing the provisions of this Act and its rules.

SECTION 38. Indication of the Certificate of Registration, Professional Identification Card/License Number, Privilege Tax Receipt (PTR) Number and Accredited Professional Organization (APO) Number. Real estate service practitioners shall be required to indicate the certificate of registration, professional identification card, PTR number, and APO 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

SECTION 39. Penal Provisions. Any violation of R.A. 9646, including violations of this IRR, shall be meted the penalty of 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. 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.

SECTION 40. Appropriations. The chairperson of the Professional Regulation Commission shall immediately include in the Commission’s programs the implementation of this Act, the funding of which shall be included in the annual General Appropriations Act and thereafter.

SECTION 41. Transitory Provision. Within ninety (90) days from the effectivity of this Act, 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.

SECTION 42. Implementing Rules and Regulations. Within six (6) months after the effectivity of this Act, 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 these Rules.

SECTION 43. Separability Clause. If any clause, sentence, paragraph or part of these Rules shall be declared unconstitutional or invalid, such judgment shall not affect, invalidate or impair any other part of these Rules.

SECTION 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 this Act are hereby modified, superseded or repealed accordingly.

SECTION 45. Effectivity. These Rules shall take effect fifteen (15) days following its publication in the Official Gazette or in a major daily newspaper of general circulation in the Philippines.