House of Representatives 15th Congress Committee on Civil Service and Professional Regulation Committee Report No.

2437 Re: Recommendation on the Status of AIPO (PhilRES) under RA 9646 as per Congressional Hearing on House Resolution No. 2149 filed by Hon. Rodolfo G. Valencia

Republic of the Philippines HOUSE OF REPRESENTATIVES Quezon City Fifteenth Congress Third Regular Session

18 September 2012 MEMORANDUM FOR ATTENTION : : The Deputy Secretary General for Operations The Executive Director Plenary Affairs Bureau The Service Director Bills and Index Srvice FROM : The Deputy Secretary General for Committee Affairs

Transmitted and received on Thursday (10:20am), 11 October 2012

----------------------------------------------------------------------------------------------------------------------------------------------------We are transmitting six (6) copies of the Committee Report submitted by the Committee on Civil Service and Professional Regulation and Appropriations on House Resolution No. 2828 entitled

"RESOLUTION URGING THE PROFESSIONAL REGULATORY BOARD OF REAL ESTATE SERVICE (PRBRES), UNDER THE SUPERVISION AND ADMINISTRATIVE CONTROL OF THE PROFESSIONAL REGULATION COMMISSION (PRC), TO FINALLY RESOLVE THE STATUS OF THE ACCREDITED AND INTEGRATED PROFESSIONAL ORGANIZATION (AIPO) FOR REAL ESTATE SERVICE PRACTITIONERS IN THE PHILIPPINES AND TO INFORM THE HOUSE OF REPRESENTATIVES ON ITS COMPLIANCE WITH RA NO 9646 WHICH MANDATES THE AIPO TO PROMULGATE AND ADOPT THE CODE OF ETHICS AND RESPONSIBILITIES" pursuant to House Resolution No. 2149, entitled, "RESOLUTION DIRECTING THE COMMITTEE ON CIVIL SERVICE AND PROFESSIONAL REGULATION TO LOOK INTO THE MATTER RELATING TO THE ACCREDITATION AND INTEGRATION OF REAL ESTATE SERVICE ASSOCIATIONS INTO ONE NATIONAL ORGANIZATION AS MANDATED UNDER SECTION 34 OF REPUBLIC ACT NO. 9646, OTHERWISE KNOWN AS THE "REAL ESTATE SERVICE ACT OF THE PHILIPPINES" For your appropriate action.

ATTY. ARLENE C. DADA ARNALDO

2/8 | Emphasis supplied by PhilRES Natl Vice President Remigio rem Ramirez 0922.883.9308 [email protected]

Republic of the Philippines HOUSE OF REPRESENTATIVES

Quezon City

Transmitted and received on Thursday (10:20am),

Fifteenth Congress Third Regular Session

11 October 2012

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COMMITTEE REPORT NO. 2437

Submitted by the Committee on Civil Service and Professional Regulation on 11 OCT 2012 Re : House Resolution No. 2823 Recommending its adoption pursuant to House Resolution No. 2149; informing the House of the findings and recommendations of the Committee Sponsor : Rep. Andres-D. Salvacion, Jr. and the members of the Committee on Civil Service and Professional Regulation ----------------------------------------------------------------------------------------------------------------------------------------------------Mr. Speaker: The Committee on Civil Service and Professional Regulation to which was referred House Resolution No. 2149, introduced by the Honorable Rodolfo G. Valencia, entitled: "RESOLUTION DIRECTING THE COMMITTEE ON CIVIL SERVICE AND PROFESSIONAL REGULATION TO LOOK INTO THE MATTER RELATING TO THE ACCREDITATION AND INTEGRATION OF REAL ESTATE SERVICE ASSOCIATIONS INTO ONE NATIONAL ORGANIZATION AS MANDATED UNDER SECTION 34 OF REPUBLIC ACT NO. 9646, OTHERWISE KNOWN AS THE "REAL ESTATE SERVICE ACT OF THE PHILIPPINES" has considered the same and has the honor to recommend to the House that the attached House Resolution No. 2823 with Rep. Andres D. Salvacion, Jr. and the members of the Committee as authors thereof, entitled: "RESOLUTION URGING THE PROFESSIONAL REGULATORY BOARD OF REAL ESTATE SERVICE (PRBRES), UNDER THE SUPERVISION AND ADMINISTRATIVE CONTROL OF THE PROFESSIONAL REGULATION COMMISSION (PRC), TO FINALLY RESOLVE THE STATUS OF THE ACCREDITED AND INTEGRATED PROFESSIONAL ORGANIZATION (AIPO) FOR REAL ESTATE SERVICE PRACTITIONERS IN THE PHILIPPINES AND TO INFORM THE HOUSE OF REPRESENTATIVES ON ITS COMPLIANCE WITH RA NO. 9646 WHICH MANDATES THE AIPO TO PROMULGATE AND ADOPT THE CODE OF ETHICS AND RESPONSIBILITIES" be adopted pursuant thereto, together with the attached report of the Committee on its findings and recommendations. Respectfully submitted: HON. ANDRES D. SALVACION, JR. Chairman, Committee on Civil Service and Professional Regulation THE HONORABLE SPEAKER House of Representatives Quezon City 3/8 | Emphasis supplied by PhilRES Natl Vice President Remigio rem Ramirez 0922.883.9308 [email protected]

PREFATORY STATEMENT
House Resolution No. 2149 was introduced by Representative Rodolfo G. Valencia to look into the matter relating to the accreditation and integration of real estate service associations into one national organization as mandated under Section 34 of RA No 9646, otherwise known as the "Real Estate Service Act of the Philippines" The House Committee on Civil Service and Professional Regulation, to which was referred HR 2149, conducted a public hearing on the matter, specifically on 28 March 2012 where the representatives of the following agencies, real estate associations and stakeholders were invited:
Professional Regulation Commission (PRC) Professional Regulatory Board on Real Estate Service (PRBRES) Philippine Real Estate Service Practitioners, Inc. (PHILRES) Philippine Association of Realtors Boards, Inc. (PAREB) Real Estate Brokers Association of the Philippines,, Inc. (REBAP) Institute of Philippine Real Estate Consultants, Inc. (IPREC) Philippine Association of Realty Consultants & Specialists, Inc. (PARCSI) Philippine Association of Realty Appraisers, Inc (PART) Northern Mindanao Association of Real Estate Appraisers, Inc. (NMREA) Philippine Realtors Foundation, Inc. (PRF) Chamber of Real Estate and Builders Association,, Inc. (CREBA) National Real Estate Association, Inc. (NREA) NAR Philippines, Inc. Philippine Association of Local Treasurers & Assessors, Inc. (PALTA) Philippine Association of Municipal Assessors, Inc. (PAMA) Philippine Association of Assessing Officers, Inc. (PAAO) Philippine Council of Real Estate Educators, Inc. (PCREE) Subdivision and Housing Developers Association, Inc. (SHDA) Organization of Socialized Housing Developers of the Philippines, Inc. (OSHDP) Philippine Allied Chamber of Real Estate Brokers and Licenses Salesmen, Inc. (PhilAcre, Inc.)

FACTS
Section 34 of Republic Act 9646 mandates the organization of all real estate service associations into one national organization as the only Accredited and Integrated Professional Organization (AIPO) of real estate service practitioners duly registered with the Professional Regulatory Board on Real Estate Service (PRBRES) The section provides for the integration of all real estate service associations into one national organization to be recognized by the Board, subject to the approval of the Professional Regulation Commission (PRC) as the only accredited and integrated professional organization of real estate service practitioners. It further provides the automatic membership into the AIPO of a real estate service practitioner duly registered with the Board, to receive the benefits and privileges appurtenant thereto, without prejudice to membership in other association of real estate service practitioners. Under Section 55 of the Law,, it is the AIPO which shall prescribe and issue the Code of Ethics and Responsibilities for real estate service practitioners which the Board shall adopt and promulgate. PRB-RES, under its Resolution No. 19 adopted on 21 October 2011, granted the petition of the Philippine Real Estate Service Practitioners. Inc. (PHILRES) for recognition and accreditation as the one and only AIPO together with the issuance of PRA Certificate of Accreditation No. 1-APO-044. The same officially took effect on December 1, 2011 immediately following the publication of the Resolution in the Official Gazette on November 14, 2011.

4/8 | Emphasis supplied by PhilRES Natl Vice President Remigio rem Ramirez 0922.883.9308 [email protected]

THE ISSUE
The issue was triggered by Section 3.h. of the Implementing Rules and Regulations (IRR) of RA 9646 which defined the AIPO as the -national integrated organization of natural persons duly registered and licensed as real estate service practitioners that the Board, subject to the approval of the Commission, shall recognize or accredit as the one and only AIPO, pursuant to Sec. 34, Art. IV of R.A.No. 9646" In the hearing held on 28 March 2012, the PRC and all real estate associations, both in government and in private sector, presented their respective Position Papers to the Committee. The PRC claimed that the law provides for the integration of all real estate service associations into one national organization. By the use of the phrase "service associations", the law seems to require "associations" to be integrated into "one national organization" thereby creating the perceived inconsistency between Section 3(h) of the IRR and Section 34 of the law. One interpretation is that the "associations" or juridical entities per se are to be integrated into a single organization. The other interpretation is that the use of the word "associations" was intended to direct and compel the numerous real estate service associations that have been in existence for some time, to become integrated into a single accredited organization to be composed of real estate service practitioners. PRC cited the ruling of the Supreme Court that "It is a fundamental rule in statutory construction that the clauses, phrases, sections and provisions of a law be read as a whole; never as disjointed or truncated parts, for a law is enacted as a single entity and not by installment of paragraphs here and subsections there. (Samar II
Electric Cooperative, Inc. and Baltazar Dacula vs. Estrella Qjiijano, G.R. Nos. 166674, April 27, 2007).

Based on the aforecited rule, PRC argued that the first interpretation does not explain and will actually be inconsistent with the remainder of the provision of Section 34 that the accredited and integrated professional organization will be the "only accredited and integrated professional organization of real estate service practitioners". On the other hand, the second interpretation is in keeping with the qualifications in the second clause of Section 34 that directs the Board to recognize an integrated national organization, subject to the approval of the PRC, as the "only accredited and integrated professional organization of real estate service practitioners".

DISCUSSION
Under RA 9646, the PRC is mandated to recognize and license real estate service practitioners. These are natural persons who are required to take and pass the examination administered by the PRBRES. Real estate service associations, while possessing juridical personality, are not required to take and pass the examination. The AIPO cannot be an umbrella organization of all existing real estate service associations in view of difference in personality and governing by-laws which may conflict and create confusion rather than regulation by the State as declared in the policy of the RESA Law. AIPO members are duly registered and licensed real estate service practitioners by the PRBRES. Members of other real estate service associations may not even require registration and licensing by the PRC. Only natural person can be a real estate service practitioner, as defined in Section 3(g) of the RESA Law, who can meet the pre-requisites for licensure examination under Section 14, Article III of the Law.

5/8 | Emphasis supplied by PhilRES Natl Vice President Remigio rem Ramirez 0922.883.9308 [email protected]

There can be no argument that real estate service practitioners refer to natural persons. If the intent of the law is to integrate only associations and not individuals or natural persons, then Section 34 would not have provided the further qualification in the latter part. Stated differently if only associations are to be integrated, then it would not be possible at all to have an integrated professional organization of real estate service practitioners because real estate service practitioners are natural persons and not juridical entities that associations are under the law. The membership in the AIPO of a real estate service practitioner duly registered with the Board arises by operation of law, LEAVING THE PRACTITIONER NO DISCRETION WHATSOEVER NOT TO BE A MEMBER thereof. The second paragraph in Section 34 clarifies that membership in the AIPO is not a bar to membership in other associations of real estate service practitioners This provision acknowledges the fact that a number of real estate associations have been in existence long before the RESA law and have had long standing members who may choose to remain members of such associations apart from their mandated membership in the AIPO.

FINDINGS
Since what is sought to be integrated are the organizations of real estate service professional, all existing real estate service practitioners should be properly represented. In this way, the true consensus of all practicing professional will be reflected in the objectives and endeavors of the integrated organization. This is also in accordance with Section 34 which mentions all real estate service associations. As mandated in the law, the PRBRES invited all existing professional organizations for them to send their president or duly authorized representative in a convention for the election of Board of Trustees and officers of the AIPO. This led to the formation of the "Convenors Group" constituted by the presidents, board chairmen and members of real estate service associations and organizations who acted in the best interest of their respective organizations. The members further exercised their constitutional right to association guaranteed under Section 8 of Article III of the 1987 Constitution of the Republic of the Philippines. In essence, the requirement under Section 34 of R.A. 9646 for all real estate service associations to be integrated into one national organization to be recognized by the PRBRES as the only accredited and integrated professional organization of real estate service practitioners is substantially complied with. Wherefore, premises above considered; the Committee finds Section 3(h) of the IRR consistent with Section 34 of the RESA Law.

RECOMMENDATIONS
After due consideration, and in the light of the foregoing facts and findings, the Committee recommends the following: 1. 2. That the House of Representatives adopt the attached Resolution That the House of Representatives transmits copies of this Committee Report and the attached House Resolution to the Professional Regulation Commission (PRC), all existing real estate service associations and the stakeholders. That the House of Representatives calls on PRBRES and PRC to submit their reports to the House on the implementation of the attached Resolution

3.

6/8 | Emphasis supplied by PhilRES Natl Vice President Remigio rem Ramirez 0922.883.9308 [email protected]

Republic of the Philippines HOUSE OF REPRESENTATIVES

Quezon City

Fifteenth Congress Third Regular Session House Resolution No. 2823 -----------------------------------------------------------------------------------------------------------------------------------------Introduced by Rep Andres D. Salvacion, Jr. and the members of the Committee on Civil Service and Professional Regulation -----------------------------------------------------------------------------------------------------------------------------------------RESOLUTION URGING THE PROFESSIONAL REGULATORY BOARD OF REAL ESTATE SERVICE (PRBRES), UNDER THE SUPERVISION AND ADMINISTRATIVE CONTROL OF THE PROFESSIONAL REGULATION COMMISSION (PRC), TO FINALLY RESOLVE THE STATUS OF THE ACCREDITED AND INTEGRATED PROFESSIONAL ORGANIZATION (AIPO) FOR REAL ESTATE SERVICE PRACTITIONERS IN THE PHILIPPINES AND TO INFORM THE HOUSE OF REPRESENTATIVES ON ITS COMPLIANCE WITH RA NO. 9646 WHICH MANDATES THE AIPO TO PROMULGATE AND ADOPT THE CODE OF ETHICS AND RESPONSIBILITIES

WHEREAS, pursuant to Section 34 of Republic Act 9646, the Professional Regulatory Board of Real Estate Service, under the supervision and administrative control of the Professional Regulatory Commission, initiated the integration of all existing professional organizations into one national organization of real estate service practitioners duly registered with the Board, that led to the formation of the "Convenors Group" constituted by the presidents, board chairpersons and members of real estate service associations and organizations who acted in the best interest of their respective organizations and their members, and to form an association as the constitutional right guaranteed under Section 8 of Article III of the 1987 Constitution of the Republic of the Philippines.

WHEREAS, the Board, under its Resolution No. 19 adopted on 21 October 2011, granted the petition of the Philippine Institute of Real Estate Service Practitioners, Inc. (PHILRES) for recognition and accreditation as the one and only AIPO together with the issuance of PRA Certificate of Accreditation No. l-APO-044. The same officially took effect on December 1, 2011 immediately following the publication of the Resolution in the Official Gazette on November 14, 2011;

7/8 | Emphasis supplied by PhilRES Natl Vice President Remigio rem Ramirez 0922.883.9308 [email protected]

WHEREAS, Section 34 of the law mandates that 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 PRC, as the only accredited and integrated professional organization of real estate service practitioners;

WHEREAS, Section 3 (h) of the implementing rules and regulations (IRR) of R.A. 9646 defined AIPO as 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 and accredit as the one and only AIPO;

WHEREAS, only a natural person can be a real estate service practitioner as defined in Section 3(g) of the RESA Law, who can meet the pre-requisites for licensure examination under Section 14 of the said law;

WHEREAS, the AIPO cannot be an umbrella organization of all existing real estate service associations in view of difference in personality and governing by-laws which may conflict and create confusion rather than regulation by 'the State as declared in the policy of the RESA Law. AIPO members are duly registered and licensed real estate service practitioners by the Board while members of other real estate service associations may not even require registration and licensing by the Commission;

WHEREAS, in view of the issue on the interpretation of Section 34 of R.A. 9646 vis-a-vis Section 3(h) of the IRR of the said law, the adoption and promulgation of the Code of Ethics and Responsibilities for real estate service practitioners as mandated under Section 35 of the law has been unduly delayed;

NOW, THEREFORE

BE IT RESOLVED, as it is hereby resolved, that the House of Representatives urge the Professional Regulatory Board of Real Estate Service (PRBRES), under the supervision and administrative control of the Professional Regulation Commission (PRC), to finally resolve the status of the accredited and integrated professional organization (AJPO) for real estate service practitioners in the Philippines and to inform the House of Representatives on its compliance with RA No. 9646 which mandates the AIPO to promulgate and adopt the Code of Ethics and Responsibilities.

8/8 | Emphasis supplied by PhilRES Natl Vice President Remigio rem Ramirez 0922.883.9308 [email protected]