REAL ESTATE SERVICE ACT (RESA LAW)

Republic Act 9646

 10 Things You Should Know About the RESA Law
 The RESA Law, which took effect on July 30, 2009, deals primarily: 1) with
the acts generally considered to be real estate services 2) the
qualifications of those who may practice the profession and 3) the penalties
corresponding to violations of its provisions

 The law protects the rights of those who call themselves real estate
professionals, and also lays down the rules which these professionals have
to adhere to, so that they may be registered under the Professional
Regulation Commission (PRC) and be allowed to continue their practice.
 1. Who are those deemed to be
practitioners of real estate services and
what do they do?
 Section 3(g) of the RESA Law lists five types of professionals who
are considered to be in the practice of real estate services: (1) real
estate consultants (2) appraisers (3) assessors (4) brokers and (5)
salespersons The first must be duly registered and licensed by the
PRC, while real estate salespersons need only be accredited

 According to the RESA Law, real estate consultants are those who
offer or render professional advice and judgment on the
acquisition, enhancement, preservation, utilization, or disposition
of lands or improvements thereon. They also facilitate the
conception, planning, management, and development of real
estate projects.
1. Who are those deemed to be
practitioners of real estate services and
what do they do?
 Real estate appraisers are those who perform services
that involve estimating and rendering an opinion on the
value of the property
 Real estate assessors are those who are employed by local
government units (cities, municipalities, and provinces)
and appraise and assess the value of real properties,
which include plants, equipment, and machinery
 Appraisers perform their tasks for the purpose of
reporting the values as appraised, assessors perform such
tasks for the purpose of taxation.
1. Who are those deemed to be
practitioners of real estate services and
what do they do?
 Real estate brokers are those who act as agents of a
party in a real estate transaction
 They facilitate the offer, advertisement, solicitation,
listing, promotion, mediation, negotiation, or the
actual meeting of minds between parties on the sale,
exchange, mortgage, lease, joint venture, or any
similar transaction involving real properties
 In a nutshell, they act as middlemen between the
person offering to sell their property and the one
offering to buy it
1. Who are those deemed to be
practitioners of real estate services and
what do they do?
 Real estate salespersons are those who
may act on behalf of a real estate broker
to facilitate a real estate transaction
 It is not uncommon in the Philippines for
a single real estate broker to have several
salespersons working under him or her.
2. What are the qualifications required under RA 9646?

 all applicants must be Filipino citizens,

whether natural-born or naturalized
Filipino citizens
 must have a college degree (or at least 2
years of college education for
salespersons)
 have not been convicted of any crime
2. What are the qualifications required under RA 9646?

 consultants must also show proof of experience in the field,

including proof of being licensed for at least 10 years as a broker,
an assessor, a bank or institutional appraiser, a property-
evaluating employee, or as a licensed appraiser for at least 5
years

 Corporations and partnerships are also allowed to engage in real

estate practice if they are duly registered with the Securities and
Exchange Commission. However, a corporation/partnership’s
officers or those authorized to act in its behalf must all be
licensed real estate brokers, appraisers, or consultants.
3. How about professionals who have been practicing real estate services since before 2009

 Section 20, professionals who have been practicing

real estate services before the RESA Law took
effect in 2009 can be issued a certificate and
professional ID without taking the prescribed
exam, provided that they satisfy any of the
following requirements:
1) they are already real estate brokers, appraisers,
or consultants licensed by the Department of Trade
and Industry
3. How about professionals who have been practicing real estate services since before 2009

2) assessors or appraisers who hold permanent

appointments and have been practicing their
profession for the last 5 years (before 2009) and have
passed the Real Property Assessing Officer exam
conducted by the Civil Service Commission
3) assessors or appraisers who hold permanent
appointments, have at least 10 years of actual
experience in real property appraisal or assessment,
and have completed at least 120 hours of accredited
4. Does passing the licensure exam
automatically lead to registration?
The PRC may deny your application for the real estate service
profession, even if you have passed the licensure exam.
The three most common grounds are the following:
1) if you have been convicted by a court of law of any
criminal offense
2) if you, upon investigation by the PRC, have been
found guilty of immoral or dishonorable conduct
3) if you have been found to be psychologically unfit for
the profession
5. Who is exempted from the application
of the law?
 Section 28 of the RESA Law stipulates that the following are exempted
from the application of its provisions.
1) owners of real property (or private owners), as they are not
required to have a license in order to sell their own property. However, this
does not include real estate developers, because they are regulated by the
Housing and Land Use Regulatory Board (HLURB).
2) trustees in bankruptcy or insolvency proceedings
3) as well as people who act pursuant to court orders (e.g., sheriff of
the court);
4) duly constituted attorneys-in-fact authorized to negotiate the sale,
mortgage, lease, or exchange of real estate (provided that they do not
require any form of compensation); and
5) public officers who perform such acts in line with their official
duties. However, it is important to know that the latter does not include
government assessors.
6. Can foreigners practice real estate services in the Philippines?

 Generally, NO. However, the law does state an

exemption: FOREIGN RECIPROCITY
 Section 24 of the RESA Law stipulates that
foreigners are prohibited from the practice of real
estate services in the Philippines, although it also
says that this rule shall not apply if the country
where the foreign applicant is from allows Filipinos
in the real estate service industry to practice within
its territory as its own citizens would.
7. Are there any other details regarding the licensure examination and the license itself?

• The licensure exam is prepared and administered by the Professional

Regulatory Board for Real Estate Practice, which is under the PRC. It is
composed of 13 real estate-related subjects, which may be increased as
the Board sees fit.
• After passing the examination, you will be required to take an oath
before a member of the Board or the PRC. In addition, applicants for
real estate brokers and appraisers are required to post a cash or surety
bond that would serve as professional indemnity insurance. This bond
is renewable every 3 years and shall not be less than Php20,000. The
license issued is also renewable every 3 years.
• The PRC licenses must be displayed in a conspicuous area in the office
or business establishment that is dedicated to the practice of real estate
services.
8. Can license be suspended or revoked?

 The PRC may revoke certificate of registration and professional ID

for a number of reasons:
1) if you got your license through fraud or deceit
2) if you allow an unqualified person to advertise or practice the
profession using your own certificate, ID card, or permit
3) if you engage in unprofessional or unethical conduct
4) if you commit any form of malpractice or a violation of the
RESA Law itself, its Implementing Rules and Regulations, and the Code
of Ethics and Responsibilities for Real Estate Service Practitioners
5) if you get suspended for an offense and continue practicing real
estate services
9. What does the law prohibit?

 Section 29 prohibits the practice or the

offer to practice real estate services or to
offer yourself as a real estate service
practitioner if you have not been
licensed by the PRC (except those who
are covered by the RESA Law’s
exemption)
10. What are the penalties for violating RA 9646?

 Section 39 stipulates that any violation of the RESA Law,

including violations of its Implementing Rules and Regulations,
shall be penalized with a fine of not less than Php100,000 or
imprisonment of not less than 2 years, or both. If the offender
happens to be unlicensed, the aforementioned penalty is
doubled (Php200,000 and/or 4 years’ imprisonment)
 Furthermore, partnerships, corporations, associations, or other
judicial entities who have committed, consented to or
knowingly tolerated such a violation are deemed a principal or
a co-principal of the violation, along with the other
participants, and are subject to the same penalty
Thank You!