Lesson 5

Industry Guidelines and Updates

Lesson Description: This lecture will give an introductory overview of the real estate
practice. The updates on relevant memorandum approved by the PRBRES on the practice.

LESSON OBJECTIVES
• Get to know the PRBRES and the general and important guidelines set by the Professional
Regulatory Board (PRBRES)
• To be aware of the current industry guidelines for practice

LESSON LEARNING OUTCOMES

• Apply and act on the guidelines set by PRBRES on the practice
• Be motivated and be inspired by the current market for real estate practice

I. REGULATORY BODY
a. The Professional Regulation Commission (PRC/Commission) is the licensing and regulatory
agency of the national government for the practice of regulated professions.

b. It was first created as a national government agency by Presidential Decree (P.D.) No. 223
dated June 22, 1973, signed by then President Ferdinand E. Marcos, mandated to enforce the
laws regulating the various professions. It was previously called the Office of the Board of
Examiners, which was created by Republic Act No. 546 on June 17, 1950, under the aegis of
the Civil Service Commission.

c. On December 5, 2000, President Joseph Ejercito Estrada signed Republic Act No. 8981
otherwise known as the PRC Modernization Act of 2000. The Implementing Rules and
Regulations were adopted on February 15, 2001 through PRC Resolution No. 1 series of 2001.

functions: 1) executive functions; 2) quasi-legislative functions; and 3) quasi-judicial

It had also set its new thrusts and priorities such as customer-focused service,
modernization through full computerization and re-structuring, integrity of licensure
examinations, good governance, protection and promotion of Filipino professionals
and support to national development priorities.

d. Legal mandate of PRC to performs two important functions,

1) to conduct and administer licensure examinations to aspiring professionals,
2) to regulate and supervise the practice of the professions exercised in
partnership with the forty-six (46) Professional Regulatory Boards (PRBs) in
the fields of health, business, education, social sciences, engineering and
technology.

a. The PRBs govern their respective professions’ practice and ethical

standards and accredit the professional organization representing the
professionals.

PS 1 Fundamentals of Real Estate Management --- Lyceum of Alabang : SY 2024. ---- Prof Ann V. Villareal
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 e. The PRC serves more than 4.9 million professionals (as of October 2022) from 46 various
regulated professions and the hundreds of thousands of aspiring professionals who take the
licensure examinations every year. Thus, PRC stakeholders include the professionals, would-
be professionals, accredited professional organizations, foreign professionals seeking
temporary permit to practice their professions in the country, schools and academe, and other
government agencies.

Professional Regulation Commission (PRC)

• Regulate and supervise the practice of the professionals who constitute the highly skilled
manpower of the country.
• Mandate: plays a strategic role in developing the corps of professionals for industry,
commerce, governance, and the economy.
• Role: Oversees the licensing requirement of the real estate practice, Conducts examination
of RE Brokers, Assessors and Consultants, Monitors the conduct CPDs, Oversees the CPD
providers
• There are Forty Seven (47) regulated professions

Professional Regulatory Board of Real Estate Service (PRBRES)

Functions:
1. Prepare the contents of licensure examinations.
2. Determine, prescribe, and revise the course requirements
3. Recommend measures necessary for advancement in their fields
4. Visit / inspect schools and establishments for feedback
5. Adopt and enforce a Code of ethics for the practice of their respective professions
6. Administer oaths and issue Certificate of Registration
7. Investigate violations of set professional standards and adjudicate administrative and other
cases against erring registrants
8. Suspend, revoke, or reissue Certificate of Registration for causes provided by law

II. PRB RES Guidelines in Practice

Composition of the Ist Board – 2010-2018

• Hon Eduardo G. Ong - Chairman

• Hon Ramon CF Cuervo III - Member
• Hon Bansan Choa - Member
• Hon Florencio Dino - Member
• Hon Rafael “Paeng” Fajardo - Member

Current Board - 2018-present

• Hon. Ofelia C. Binag - Chairman

• Hon Pilar Banaag - Member
• Hon Rafael Fajardo - Member
• Hon Jose Arnold Tan - Member

PS 1 Fundamentals of Real Estate Management --- Lyceum of Alabang : SY 2024. ---- Prof Ann V. Villareal
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 OPERATIONAL GUIDELINES ON THE IMPLEMENTATION OF SECTIONS 31 and 32
PARAGRAPH A, ARTICLE IV, RA NO. 9646 ON SUPERVISION AND ACCREDITATION
OF REAL ESTATE SALESPERSONS
• WHEREAS, Section 2 of the Real Estate Service Act (hereinafter referred as RA No. 9646) provides the declared policy of
the State recognition on 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 of corps of technically competent,
responsible and respected Professional Real Estate Practitioners whose standards of practice and service shall be globally
competitive and will promote the growth of the real estate industry;

1. Accreditation and Accountability of Real Estate Salespersons.

o Under the direct supervision and accountability of a real estate broker

o 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

o Either directly or indirectly, can negotiate, mediate or transact 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.

o A real estate broker shall be guilty of violating R.A. No. 9646 or the IRR for employing or utilizing the services of an
unaccredited real estate salesperson

2. WHEREAS, Section 32 2nd sentence of paragraph A and paragraph C, Article IV of RA No. 9646 provides that there shall at
least be one (1) licensed Real Estate Broker for every twenty (20) accredited Salespersons x x x 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;

3. Definitions

o Real Estate Brokers (REB) - duly registered and licensed natural persons who for a professional fee, commission or other
valuable consideration, acts as an agent of a party in real estate transactions to do listing, advertising, mediating, promoting,
soliciting, offering, negotiating and effecting (lampsone) the meeting of the minds of the parties in the transaction on sale,
purchase, lease, exchange, mortgage, joint venture or other (splemjo) similar transactions on real estate or any interest
therein such documentation of titles, processing of titles and the like;

o Real Estate Salespersons – refers to duly accredited natural person by the Professional Regulatory Board of Real Estate
Service (PRBRES) who performs service for and in behalf of a licensed Real Estate Broker with expectation of a share in
the commission, professional fee, compensation or other valuable consideration;

o Accreditation – refers to the formal or official approval granted to a person (herein after referred to a Salesperson) upon
meeting the essential requirements as provided by the defined guidelines;

o CPD Council – refers to the CPD Council created to promote, ensure and implement the continues improvement of
knowledge, skills and competencies of Real Estate Service Professionals and accredited Real Estate Practitioners in
accordance with the national, regional and international standard of professional practices;

4. Section 4. Validity and the Prescribed Fees – those applying for Accreditation as Salesperson shall pay the required fees and shall
be valid as follows:
o 4.1. P450 valid for a year or
o 4.2. P900 valid for two (2) years

5. Section 5. Fraud Relating to Accreditation of Salesperson – Fraudulent acts relating to the Accreditation of the Salesperson shall
be ground for suspension or revocation of accreditation or licensee and PIC of the Accredited Salesperson and the licensed Broker
who has direct supervision and responsibility of the salesperson and punishable under the pertinent provisions of RA #9646, the
revised Penal Code on Decir under Article 317 and other applicable laws

In addition, any government officials or employees who is party of any fraudulent act relating to the above Accreditation shall be
subjected to administrative penalties that may be imposed under the anti-graft laws, the Administrative Code and the Code of
Conduct of Public Officials and Employees

PS 1 Fundamentals of Real Estate Management --- Lyceum of Alabang : SY 2024. ---- Prof Ann V. Villareal
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 Section 6. Miscellaneous Provision – The following shall be complied as part of the Operational Guidelines (OG): The Board shall
prepare a Resolution thereof for the list of Salespersons to be accredited subject to the approval by the Commission (PRC);

6.2 The Registration Division shall notify the Accredited Salespersons to enroll their names in the Roster of Accredited Salespersons
after they shall have paid the prescribed fee(s) thereof;

6.3 That the accreditation number assigned to Accredited Salesperson shall have a suffix which is the licensed number of
Supervising licensed Real Estate Broker and the corresponding number of the Salesperson under the Supervising
licensed Real Estate Broker (such as: 00000- 00018-01 up to 20);

6.4. Processing of Salesperson Accreditation Application shall be done by the Supervising licensed Real Estate Broker or her
authorized representative duly supported with Special Power of Attorney (SPA); representative duly supported with Special Power
of Attorney (SPA)

Within a reasonable period, the enrolled accredited Salesperson shall be issued with their Identification Card (I.D.) after the issuance of
accreditation Resolution, containing the Salespersons Accreditation Number, Validity thereof, name of the Supervising licensed Real
Estate Broker and his/her license number and validity thereof;

6.5. The Accredited Salesperson shall always wear the PRC issued I.D. every time he/she shall be performing a real estate
brokerage services and shall not be pass-on or be allowed to be used by any person other than the Accredited Salesperson;

6.6. The issued I.D. shall be renewable every two (2) years from January 1 to December 31 and can be renewed Fifteen (15)
days before the expiration;

6.7. The PRBRES and the PRC shall have the right to cancel, withdraw, confiscate or not to renew the Accreditation or the I.D.
of the Salesperson upon violation of any provision of RA No. 9646, any law/rules or non-compliance with the conditions or
obligations set herein.

PS 1 Fundamentals of Real Estate Management --- Lyceum of Alabang : SY 2024. ---- Prof Ann V. Villareal
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Reminders on the practice of the Salesperson

1. Indication of the IDs and its validity

• 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.

PS 1 Fundamentals of Real Estate Management --- Lyceum of Alabang : SY 2024. ---- Prof Ann V. Villareal
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 2. Penal provision on the violation of RA 9646

3. The need to be compliant with the guidelines set by PRBRES Board Reso 11 series of 2021

A. Set Number of hours of the Certificate Training Program seminar

a. RESA - 3 hours
b. Taxation - 5 hours
c. Code of Ethics - 2 hours
d. Transfer of Titles - 2 hours

B. A seminar completion report should be submitted by the seminar provider to the CPDAS 10
days after the seminar

C. No “for sale” of certificates

D. Non compliance means an automatic disapproval of the seminar application

E. Online Seminar
a. Maximum of 100 participants
b. Maximum of 4-5 hours per day
c. Zoom link should be provided to access for checking by the council

F. On Broker-Salesperson Relationship

a. The salespersons should be BIR registered

b. The agency of the Broker-salespersons should be clear on the scope of the relationship -
Documentation, Brokerage, Project Selling
c. The Brokers should be the one to process the application of the salespersons (SPA is
needed if cannot)

d. Non compliance on the application may cause the delay

PS 1 Fundamentals of Real Estate Management --- Lyceum of Alabang : SY 2024. ---- Prof Ann V. Villareal
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 G. Seminar irregularities
a. TOR non compliance (2 years in college)
b. The salesperson cannot practice if not completely registered Both PRC and DHSUD
c. Has taken the oath

H. Application Timeframe
a. The PRBRES processes the applications within the week it was submitted
b. The CPD council releases the Board Resolutions on the approval regularly

I. Reasons for the delay of the application as a salesperson

a. The seminar was disapproved
b. Your application was disapproved
i. 2 years in college
ii. TOR/Seminar certificate discrepancy
iii. You have not accessed the Board Resolution

J. DHSUD
a. Effective soon – the salesperson’s application with PRC should be completed first before
they can process the registration with the DHSUD
b. DHSUD will re process all applications with PRC receipts only
c. The Broker’s registration should be current (not lapsed)
d. The DHSUD will ask for a certification from PRC on the Broker’s roster

K. Concerns and Issues on the practice

a. Different Brokers reflected on the PRC and DHSUD applications
a. Salespersons cannot set up their own realty firms
b. Unit Managers (not Licensed) are handling Brokers under them – “pyramid scheme”
c. The PRBRES will release their findings in the regional areas on the violations that were
observed
d. The non compliant professionals and firms will be cited and may be sanctioned
e. We are prohibited to lend nor rent-out our licenses to developers nor any unauthorized
parties.
f. Referral incentives can be given to the unlicensed referrers but it should be just a
minimal amount.
g. Only REBs are allowed to receive commissions (and their RESP). Consultants,
Appraisers, Lawyers, SPAs are not allowed to receive commissions under the law.
h. We cannot be brokers and appraisers at the same time in one transaction.
i. REBs should not offer recommendations as it is the job of the consultants. Likewise, we
should refrain from giving the estimated market value of the property unless we are
hired as appraisers.
j. BROKERS act as AGENTS. And what we call agents should be called Salespersons (RESP).
We should use these correct terminologies.

Https://www.prc.gov.ph/history

PS 1 Fundamentals of Real Estate Management --- Lyceum of Alabang : SY 2024. ---- Prof Ann V. Villareal
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