National Code of Ethics in the Realty Service Practice

INTRODUCTION The Realty Service Practice, a profession, calling or occupation, is dedicated to the promotion, development including proper zonification and conservation of land and natural resources, including improvements and rights and interests appurtenant thereto for the benefit and enjoyment of the Filipino People. As such, those engaged therein are bound by a code of conduct, morals, and values in the performance of their duties and obligations towards the government co-practitioners and the people they serve. It is, therefore, imperative and necessary to adopt this NATIONAL CODE OF ETHICS for REALTY SERVICE PRACTICE to govern the role of conduct of those who will engage therein. ARTICLE I. DECLARATION OF PRINCIPLES SECTION 1 - The Realty Service Practice is a noble profession, calling or occupation and those engaged therein shall abide by and comply with all the laws, decrees, orders and rules and regulations enacted or promulgated by duly constituted government authorities. SECTION 2 - Utmost fidelity, sincerity, respect for colleagues in the profession, and honesty shall be observed at all times by those in the realty service practice in their relation with the client, the community and the nation in general. SECTION 3 - Adequate knowledge, competence and expertise in real estate development and management shall be maintained; and the upgrading of the standards of practice shall be effected when the need arises; all these for, and in the interest of the social and economic progress of the country. SECTION 4 - The spirit of camaraderie, cooperation and professional relationship by respecting the rights of other practitioners shall be promoted; and every organization to which they shall be encouraged to join shall have such aims and purposes as will set up, upgrade, and maintain a high level of integrity, honesty and competence in the profession for the best interest of the community and the nation. SECTION 5 - A high level of professional and respect relationship with colleagues in the Realty Service Practice shall be maintained, and their dealings with each other shall always be fair, honest and just. SECTION 6 - The Golden Rule which reads: "Treat others as you like them to treat you" shall be observed in all the dealings and relation of the practitioners with clients, fellow practitioners, the organization to which they belong, and the general public. ARTICLE II. SCOPE AND PURVIEW OF THE CODE SECTION 1 - As used in this code and for the purpose hereof, the Realty Service Practice shall embrace and include all persons, partnerships or corporations who are duly licensed by the Department of Trade and Industry in accordance with Section 3(e) and (ee) of Act No. 2728 as amended by Act No. 3715 and 3969 and Ministry Order No. 39, Series of 1985 as real estate salesman, broker, appraiser or consultant and such other practitioners as the Directors of the Department of Trade and Industry may now or hereafter license pursuant to any law, rule or regulation that may be promulgated by the government. They shall be called Realty Service Practitioners hereinafter known as Practitioners. ARTICLE III. RULES OF CONDUCT AND PRACTICE The practitioners shall be governed by the following rules of conduct and practice: SECTION 1 - Relation to the Government (a) The practitioner should secure all the necessary licenses, permits and authority from the Department of Trade and Industry and other government agencies as may be required by law, ordinance or rules and regulations and comply with all the requirements thereof before engaging in the same;

(b) He should pay any and all taxes, fees, dues, levies or charges that the government may impose in accordance to law, ordinance, or rules and regulations; (c) He should help, assist and cooperate with the Department of Trade and Industry and all government agencies and instrumentalities in the promotion, development, proper zonification and conservation of lands and other natural resources; its improvements and rights and interests therein; (d) He should not encourage, abet, tolerate or participate in the evasion or illegal reduction in the payment of all taxes, fees, dues, levies or charges that may be imposed by the government; (e) He should not offer or agree to pay to, split or rebate any commission, fee or valuable consideration, directly or indirectly, with any person who is not a duly licensed practitioner or to cooperate, assist or endorse any transaction or engagement of his services in violation of any existing law, rule or regulation; (f) He should indicate the license number of the certificate issued by the Department of Trade and Industry in his letterhead, dry seal, signboard, billboard, advertisement or other announcement in relation to the Realty Service Practice; SECTION 2 - Relation to the Public (a) The practitioner should be imbued with a social conscience for he does not live by himself and his family alone but he is a part of society with definite social responsibilities; (b) He should ensure the highest and the best use of the land and the equitable distribution of ownership, irrespective of political beliefs, cultural background, sect, religion or lass; (c) He should keep himself well informed as to any movement affecting real estate in his community, city or province, so that he may be able to contribute to public thinking on matters of taxation, land use, city planning, zonification and other programs of the government; (d) He should cooperate with the government in protecting the public against deceptive, unfair and unconscionable acts and practices of some unscrupulous or unlicensed practitioners, like fraud, misrepresentation, concealment of relevant information and other related unethical practices; (e) He should ascertain all pertinent facts concerning every property, and avoid error, exaggeration, misrepresentation or concealment of pertinent facts in dealing with the general public concerning real estate transactions; (f) He should not be instrumental in introducing in a neighborhood a certain character or use of property which will tend to impair or erode property values within that neighborhood; (g) He should not be a party to the naming of a false consideration in a deed of instrument; (h) He should keep a special bank account separate and distinct from his own funds, all moneys received in trust for other persons, such as deposit in escrow, trust funds, clients earnest money and similar items; (i) In his advertisements, brochures or announcements, he should present a true picture of the property, its improvements, or rights and interests therein including whatever liens or encumbrances it may have, if any, and should indicate his name, firm name, address and license number of the Certificate issued by the Department of Trade and Industry. In case of real estate salesman, he should indicate the name, firm name and license number of the broker under whom he is employed; (j) He should see to it that all agreements, terms and conditions, financial obligations and commitments in a real estate transaction are in writing, duly signed by all parties concerned and if necessary to be properly authenticated by a Notary Public. SECTION 3 - Relation to the Client/Customer (a) The practitioner, in accepting an appointment or authority to act for and in behalf of a client or customer, should pledge himself with utmost fidelity and good faith to protect and promote the interest of his client without in any manner sacrificing the legitimate interest of the other party in the transaction; (b) For the sake of justice and fairness to his client who have reposed confidence in him, the Practitioner should endeavor to be well informed of current legislation, policies and programs of the government including proposed legislation, which may affect the interest of his client; (c) He should not accept any commission, fee or any valuable consideration from any party in any transaction except from his client unless with the full knowledge and consent of all the parties in the transaction. He shall not also introduce or work for an overprice from either the buyer or seller except the usual standard rate of commission on any real estate transaction; (d) He should charge or collect only such fees or commissions as are fair and reasonable in accordance with usual schedule of commission for Metro Manila and provinces; (e) He should not advertise any property without authority and in any offering, the price quoted should be in accordance with the price agreed with the owners as the offering price. (f) In the event that more than one formal offer on a specific property is made before the owner has accepted a proposal, all written offers should be presented to the owner for his decision; (g) He should endeavor to make his client and customer conclude a fair contract advantageous to both; (h) He should assist his customer acquire possession and ownership of the real property bought in accordance with the terms and conditions agreed upon; (i) In case he is called upon to act as witness in a court proceeding he should give his testimonies in the most unbiased, honest, truthful and professional manner;

(j) As a real estate appraiser, he should not render an opinion without careful and thorough analysis and interpretation of all factors affecting the value of the property. His counsel and advice constitutes a professional service for which he should make a fair and reasonable charge; (k) As an appraiser, he should not undertake to make an appraisal or render an opinion that is outside the field of his experience and competence unless he obtains the assistance of another practitioner familiar with such type of property or unless the facts are fully disclosed by the client. SECTION 4 - Relations to Fellow Practitioners (a) He should not solicit a listing which is currently listed exclusively with another broker unless the listing agreement has expired or revoked by the owner and the owner offers to list the same to the new broker without soliciting the same; (b) When he accepts a listing from another broker, the agency of the broker who offers the listing should be respected until it has expired and the property has come to the attention of the accepting broker from a different source, or until the owner without solicitation, offers to list with the accepting broker. Such a listing should not be passed to a third broker or published in a daily newspaper without the knowledge and consent of the listing broker; (c) Signs giving notice of a property for sale, rent, lease or exchange should not be placed on any property by more than one broker and only if authorized by the owner; (d) He should not use information obtained by him from a listing broker through offers to cooperate or received through multiple listing services or other sources authorized by the listing broker for the purpose of creating a referral prospect to a third broker or for creating a buyer's prospect, unless such is authorized by the listing broker; (e) He should cooperate with other brokers on property listed and share the commission on an agreed basis. Negotiations concerning property listed exclusively with one broker should be carried with listing broker, and not the owner, except with the consent of the listing broker; (f) He should not solicit or use the services of an employee or salesman of another practitioner without the knowledge of the employer; (g) He should not criticize publicly a competitor nor volunteer an opinion of a competitor's transaction. If his opinion is sought, it should be rendered with professional integrity and courtesy; (h) The practitioners should seek no unfair advantage over his fellow practitioners and should willingly share with them the lessons of his experience and study; (i) He should conduct his business properly to avoid any controversy with his fellow practitioners. In the event of a controversy between practitioners belonging to the same organization or association chosen by each of the parties to the controversy. A third member shall be chosen by the members previously chosen from either organization or association or from the national organization or association to which said organizations or associations are affiliated; (j) In case the practitioners in a controversy are not members of any duly recognized organization or the Arbitration Boards cannot settle the controversy, the Department of Trade and Industry shall assume jurisdiction over said controversy; (k) In case a complaint is filed against a practitioner with his organization or association for unethical or unfair practice, he should voluntarily submit all pertinent facts before an investigating body that may be formed by his organization or association for evaluation and resolution. SECTION 5 - Relation to his Organization Including the National Association to which his Organization is Affiliated (a) In the interest of society and his own profession, calling or occupation, the practitioner should abide by the Constitution and By-Laws of his association or organization and the National Association to which it is affiliated; (b) Election as officer or member of the governing body of the organization or association carries with it the moral obligation to serve honorably, unselfishly, diligently and efficiently. It should not be the subject of election campaign, or use of letters or circulars announcing one's candidacy or appealing for votes for himself or for other nominees or candidates or other forms of electioneering or any agreement or any act which will interfere with the free and wise choice of the officers and members of the governing body of the organization; (c) He should support his organization morally and financially and actively support its plans, programs and projects for the benefit of all the members of the organization or association; (d) Any practitioner should first exhaust all administrative remedies available under existing laws, rules and regulations before taking any judicial or quasi-judicial action. ARTICLE IV. SANCTIONS Violations of any provision of this Code shall give rise to any sanction that may be imposed by the organization to which a practitioner belongs as a member, without prejudice, however, to such disciplinary action that the Department of Trade and Industry may deem expedient thereon when the proper complaint against the erring practitioner for alleged misconduct is filed with the Department in accordance with existing rules and regulations. In the case of practitioners who are not members of any organization, any complaint against them shall be governed by the existing laws, rules and regulations governing controversies. ARTICLE V. EFFECTIVITY This code shall take effect immediately. Done in Makati, Metro Manila, this 29th day of September, 1993. Approved by:

(SGD.) RIZALINO S. NAVARRO Secretary, Department of Trade and Industry Real Estate Code of Ethics Courtesy from: Land Asia Institute Philippines