What is Real Estate?

I. Real Estate Service Act (R.A. 9646, June 29, 2009) It 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
What is the State’s declaration of policy? or improvements on, above or below the ground.
The State recognizes the vital role of real estate service practitioners
in the social political, economic development and progress of the What is a Real Estate Development Project?
country by promoting the real estate market, stimulating economic It means the development of land for residential, commercial,
activity and enhancing government income from real property- industrial, agricultural, institutional or recreational purposes, or
based transactions. Hence, it shall develop and nurture through any combination of such including, but not limited to:
proper and effective regulation and supervision a corps of a. tourist resorts
technically competent, responsible and respected professional real b. reclamation projects
estate service practitioners whose standards of practice and service c. building or housing projects, whether for individual or
shall be globally competitive and will promote the growth of the condominium ownership
real estate industry. d. memorial parks and
e. others of similar nature.
Who is an Appraiser?
He/she is also known as valuer. He/she is a person who conducts Who is a Real Estate Developer?
valuation/appraisal; specifically, one who possesses the necessary It refers to:
qualifications, license, ability and experience to execute or direct a. any natural or juridical person
the valuation/appraisal of real property. b. engaged in the business of developing real estate
development project
Who is an Assessor? c. for his/her or its own account and
He/she is an official in the local government unit, who performs d. offering them for sale or lease.
appraisal and assessment of real properties, including plants,
equipment, and machineries, essentially for taxation purposes. This What is Real property?
definition also includes assistant assessors. It includes all the rights, interests and benefits related to the
ownership of real estate.

Who are real estate service practitioners?

These are:
 a. Real estate consultants a. a duly registered and licensed natural person
b. Real estate appraisers b. who works in a local government unit and
c. Real estate assessors c. performs appraisal and assessment of real properties,
d. Real estate brokers including plants, equipment, and machineries, essentially
e. Real estate salespersons for taxation purposes.

Who is a real estate consultant? Who is a real estate broker?

He/she is:
a. a duly registered and licensed natural person who, for a
professional fee, compensation or other valuable
consideration,
b. 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.
He/she is:
a. a duly registered and licensed natural person who,
b. for a professional fee, commission or other valuable
consideration,
c. acts as an agent of a party in a real estate transaction to
i. 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.

Who is a real estate appraiser? Who is a real estate salesperson?

He/she is:
a. a duly registered and licensed natural person who,
b. for a professional fee, compensation or other valuable
consideration,
c. 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.
Who is a real estate assessor?
He/she is
He/she is:
a. a duly accredited natural person
b. 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
c. for or in expectation of a share in the commission,
professional fee, compensation or other valuable
consideration.
What is the Board created under R.A. 9646?
It is the Professional Regulatory Board of Real Estate Service.
Who are the members of the Board?
These are:
1. One (1) Chairperson and
2. 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.
What are its powers?
a. Provide comprehensive policy guidelines for the promotion
and development of the real estate industry;
b. Conduct licensure examinations for the practice of the real
estate service profession and prescribe the appropriate,
syllabi of the subjects for examination;
c. Issue, suspend, revoke or reinstate, after due notice and
hearing, certificates of registration or professional
identification cards for the practice of real estate service;
d. Maintain a comprehensive and updated register of licensed
real estate service professionals;
e. 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;
f. Adopt a national Code of Ethics and Responsibilities to be
strictly observed by all licensed real estate service
practitioners;
g. Hear or investigate any violation of this 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;
h. 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;
i. 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;
j. Promulgate, administer and enforce rules and regulations
necessary in carrying out the provisions of this Act;
k. Supervise and regulate the registration, licensure and
practice of real estate service in the Philippines;
l. Assess and fix the rate of reasonable regulatory fees;
m. Administer oaths and affirmations;
n. Adopt an official seal of the Board;
o. Evaluate periodically the status of real estate service
education and profession, and recommend and/or adopt
measures to upgrade and maintain its high standard;
p. 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;
q. 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;
r. Monitor and supervise the activities of the accredited and
integrated professional organization and other associations
of real estate service practitioners; and
s. Discharge such other powers, duties and functions as the
Commission may deem necessary to carry out the provisions
of this Act.
Who reviews and approves the policies, resolutions and
rules and regulations issued or promulgated by
the Board?
The Professional Regulations Commission reviews and approves
them.
Who reviews the Board’s decisions in administrative
cases?
The Professional Regulations Commission for those cases on appeal.
What are the qualifications of the Chairperson and
members of the Board?
They must be:
a. A citizen and resident of the Philippines;
b. A holder of a bachelor's degree related to real estate;
c. An active licensed practitioner of real estate service for at
least ten (10) years prior to his/her appointment;
d. A bona fide member in good standing of the accredited
and integrated professional organization of real estate
service practitioners
i. but not an officer or trustee at the time of
his/her appointment;
 e. 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
f. Of good moral character, and must not have been convicted
by final judgment by a competent court of a criminal offense
involving moral turpitude.
How long do they serve in the Board?
They 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.
Can they be reappointed?
Yes but they cannot serve continuously for more than six (6) years.
What happens when there’s a vacancy?
Any vacancy in the Board shall be filled for the unexpired portion of
the term of the member who vacated the position.
Can the Chairperson or Members of the Board be
suspended or removed?
Yes, 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 what grounds can they be suspended or removed?
They an be suspended or removed for:
a. neglect of duty;
b. abuse of power;
c. oppression;
d. incompetence;
e. unprofessional, unethical, immoral or dishonorable conduct;
f. commission or toleration of irregularities in the conduct of
examination or tampering of the grades therein, or
g. for any final judgment or conviction of any criminal offense
involving moral turpitude.
Who designates the secretary of the Board?
The Professional Regulations Commission.
Which real estate service practitioners must take an
examination?
All real estate service practitioners except real estate sales persons.
What is the scope of the examination for real estate
brokers?
The examination includes:
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.
Can these subjects change?
Yes, the Board may recluster, rearrange, modify, add to, or exclude
any of the foregoing subjects as may be necessary for purposes of
conforming to technological and modern developments.
What are the qualifications to take the examination?
a. A citizen of the Philippines;
b. 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; and
c. Of good moral character, and must not have been convicted
of any crime involving moral turpitude: Provided, That an
applicant for the licensure examination for real estate
consultants must show proof that:
i. he/she has at least ten (10) years
experience as a licensed real estate broker
or an assessor, or
ii. as a bank or institutional appraiser or an
employed person performing real property
valuation, or
iii. at least five (5) years experience as a
licensed real estate appraiser.
What are the requirements to pass the examinations?
The applicant must have received an overall average of seventy-five
percent (75%) with no grade below fifty percent (50%).
May the Board refuse registration to a successful
examinee?
Yes, the board may refuse registration of any successful examinee if:
a. the successful examinee has been convicted by a court of
competent jurisdiction of any criminal offense involving
moral turpitude or
b. has been found guilty of immoral or dishonorable conduct
after investigation by the Board, or
c. has been found to be psychologically unfit.
Can the Board suspend or revoke the Certificate of
Registration, professional identification card? Can
they cancel the special/temporary permit of a
real estate service practitioner or suspend
him/her from the practice?
Yes, they can after giving proper notice and hearing to the party
concerned, should the latter commit any of the following:
a. Procurement of a certificate of registration and/or
professional identification card, or special/temporary permit
by fraud or deceit;
b. 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;
c. Unprofessional or unethical conduct;
d. 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
e. Engaging in the practice of the profession during the period
of one's suspension.
Who are those that may be registered without taking
the examination? (also referred to as the
Grandfather Clause)
a. Those who, on the date of the effectivity of this Act, 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 CPE to the
satisfaction of the Board;
i. Any oholder of a valid DTI license who has
earned fifteen (15) Continuing Education
Program (CEP) or CPE credit units;
ii. Those who had failed to renew their DTI
license prior to 30 July 2009 but who have
earned twenty-four (24) CEP credit units
from accredited service providers as per MO
39 or CPE credit units from CPE Council
Accredited Providers from 2007 to 30 July
2011;
iii. Those who had passed the 2009 and 2008
licensure examinations given by DTI but
who had failed to obtain their license upon
the effectivity of R.A. 9646 and who have
earned (15) CEP or CPE credit units;
iv. Those who had passed the 2007 licensure
examinations given by DTI who had failed to
obtain their license upon the effectivity of
R.A. 9646 and who have earned (18) CEP or
CPE credit units;
v. Those who had passed DTI examinations but
who had failed to obtain their license upon
the effectivity of R.A. 9646 and who have
earned (120) CEP or CPE credit units;
b. Assessors and appraisers who, on the date of the effectivity
of this Act, 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
c. Assessors and appraisers who, on the date of the effectivity
of this Act, 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 under (b) and (c) must have the necessary requirements to
become real estate appraisers.
*Note: The CPE previously under the PRC is now called the
Continuing Professional Development (CPD).
When must those exempted from taking the
examination file their registration?
Within two (2) years from the effectivity of the act. Those who are
unable to comply shall be required to take the Board licensure
examination for real estate service practitioners.
Can the Board reinstate suspended or revoked licenses?
Yes, they can:
a. after the expiration of two (2) years from the date of
revocation or suspension,
b. upon application of the party interested and
c. after his/her compliance with the required CPE units and
d. for reasons deemed proper and sufficient by the Board.
Can the Board reissue lost, destroyed or mutilated
certificates of registration, professional
identification card or special/temporary permit?
Yes, subject to the rules promulgated by the Board.
What are the contents of the Roster of Real Estate
Service Practitioners?
It contains the following:
a. names of all registered real estate service practitioners,
b. their residence and office addresses,
c. license number,
d. dates of registration or issuance of certificates, and
e. other data which the Board may deem pertinent.
Copies thereof shall be made available to the public upon request.
Can foreign real estate service practitioners practice in
the Philippines?
Yes, provided their 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. Also, the country from which they are from should
also allow Filipinos to be RESP in their country. (Foreign
Reciprocity)
These foreign RESP must first apply and pay the required fees before
they are issued a special/temporary permit.
PRACTICE OF REAL ESTATE SERVICE
To who must any person qualified to register as real
estate service practitioners take an oath?
They must take it before:
a. any member of the Board or
 b. any officer of the Commission duly authorized by the
Commission to administer oaths.
Who are required to post a professional indemnity
insurance/cash or surety bond?
All real estate brokers or real estate appraisers
When must this be renewed?
Who may engage in real estate practice without the
It is renewable every three (3) years.
How much is the indemnity insurance/cash or surety
bond?
It is determined by the Board but it shall not be lower than
P20,000.
Can a client add to this indemnity insurance/cash or
surety bond?
Yes, the provision states that the amount fixed by the Board shall
not prejudice the client from seeking additional requirements.
a. Passed the licensure exam
b. A holder of a valid certificate of registration, a professional
identification card or special/temporary permit duly issued
by the Board and the Commission
c. As for real estate brokers or private appraisers, they must
have posted the professional indemnity insurance/cash or
surety bond.
required license?
a. 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;
b. Any receiver, trustee or assignee in bankruptcy or
insolvency proceedings;
c. Any person acting pursuant to the order of any court of
justice;

Who are deemed to engage in real estate practice? d. Any person who is a
i. duly constituted attorney-in-fact for
Any person who engages in the acts or transactions by real estate
purposes of sale, mortgage, lease or
practitioners found in Section 3(g) of the R.A. 9646.
exchange, or other similar contracts of real
estate,
What are the prohibitions in engaging in real estate ii. without requiring any form of
practice? compensation or remuneration; and
No person can practice or offer to practice or advertise (e.g. Executor of a will or administrator of an estate)
himself/herself as a real estate service practitioner or be appointed
as a real property appraiser/assessor without the following:
 e. Public officers in the performance of their official duties and
functions, except government assessors and appraisers.
(e.g. Sheriff required to sell a property through a court
order)
What happens to the positions in the Government
requiring the services of a real estate service
practitioner?
Within three (3) years from the passage of R.A. 9646, only registered
and licensed real estate service practitioners may take such
positions.
What happens to those employed by the Government
engaging in real estate service?
All incumbent assessors holding permanent appointments shall
continue with their positions but they cannot be promoted to a
higher position without meeting the qualification requirements of
the higher position.
What are the requirements to become a real estate
service salesperson?
He/she must be accredited by the Board, provided he has the
following qualifications:
a. completed at least two (2) years of college and
b. have undergone training and seminars in real estate
brokerage, as may be required by the Board.
They must also be under the direct supervision and accountability of
a real estate broker.
Who are penalized for engaging a real estate service
salesperson not accredited by the Board or for
allowing them to transact under their own name?
The real estate broker, provided:
a. there was actual knowledge of such violation OR
b. the broker retains the benefits, profits or proceeds of a
transaction wrongfully negotiated by the salesperson
What are the requirements for a corporation or
partnership to engage in RESP?
a. The partnership or corporation must be duly registered with
the Securities and Exchange Commission (SEC);
b. The persons authorized to act for the partnership or
corporation are all duly registered and licensed real estate
brokers, appraisers or consultants
c. 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.
d. There shall at least be one (1) licensed real estate broker
for every twenty (20) accredited salespersons.
What are the requirements for divisions of a partnership
or a corporation engaged in marketing or selling
real estate development projects in the regular
course of business?
It must be headed by a full-time registered and licensed real estate
broker.
What are the requirements of the branch officers of real
estate practitioners?
It must be manned by a duly licensed real estate broker, appraiser or
consultant as the case may be.
What are the requirements in case of resignation or
termination of the RESP?
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
Can the partnership or corporation hire RESP on
commission basis?
Yes, and they may be considered as independent contractors subject
to the provisions of the Labor Code.
Are there other requirements for RESP regarding their
principal place of business?
They must display the original and/or certified true copies of his/her
certificate of registration as well as those RESP employed in such
office.
What is the AIPO?
It is the Accredited and Integrated Professional Organization of real
estate service practitioners. I is selected by the (This is currently
vacant)
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 this organization shall not be a bar for the RESP to
join other real estate service associations.
What is the CPE?
This is the Continuing Professional Education Program that is
developed, prescribed and promulgated by the Board 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, that is subject to the approval of the Commission. The Board
shall also create a CPE Council.
What is the composition of the CPE Council?
a. A chairperson coming from the Board,
b. a member from the accredited and integrated professional
organization of real estate service practitioners and
c. a member from the academe.
Who assists the Board to enforce the law?
The Commission assists the Board. The lawyers of the Commission
act as the prosecutors for any violations of the Act. The duly
constituted authorities of the Government shall likewise assist the
Board.
What are the required things that a RESP must indicate
in their practice?
He/she must indicate the following on the documents he/she signs,
uses or issues in connection with the practice of his/her profession:
a. the certificate of registration,
b. professional identification card,
 c. PTR number, and perform activities or acts prior to and until the recognition or birth
d. APO receipt number, and of the AIPO. (There is currently none)
e. the date of issuance and
f. the duration of validity Who is the current chairperson of the Board?
Dr. Eduardo Gutierrez Ong
What are the penalties for any violation of R.A. 9646?
For those who are registered and licensed RESP, 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.

For those who are unlicensed RESP, the penalty shall be double the
aforesaid fine and imprisonment.

Who are penalized in case it is a partnership or

corporation or other juridical entity that commits
a violation?
The partner, president, director or manager who has committed or
consented to or knowingly tolerated such violation

When did the RESA take effect?

On July 30, 2009.

OTHER NOTES ON RESA

*Additional notes from the IRR.

What is the IAIPO?

It is the Interim Accredited and Integrated Professional
Organization. It is accredited by the Commission only to operate and