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REAL ESTATE SERVICE PROFESSIONAL

NATIONAL CODE OF ETHICS

BOOK ONE :

NATIONAL CODE OF ETHICS

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.

LOUIE ALLEN R. DAHILAN, REB, REA, 2010

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.
LOUIE ALLEN R. DAHILAN, REB, REA, 2010

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.
LOUIE ALLEN R. DAHILAN, REB, REA, 2010

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.

LOUIE ALLEN R. DAHILAN, REB, REA, 2010

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.

LOUIE ALLEN R. DAHILAN, REB, REA, 2010

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.
LOUIE ALLEN R. DAHILAN, REB, REA, 2010

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
LOUIE ALLEN R. DAHILAN, REB, REA, 2010

(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;

LOUIE ALLEN R. DAHILAN, REB, REA, 2010

(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;
LOUIE ALLEN R. DAHILAN, REB, REA, 2010

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;

LOUIE ALLEN R. DAHILAN, REB, REA, 2010

(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
LOUIE ALLEN R. DAHILAN, REB, REA, 2010

(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;

LOUIE ALLEN R. DAHILAN, REB, REA, 2010

(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;

LOUIE ALLEN R. DAHILAN, REB, REA, 2010

(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.
LOUIE ALLEN R. DAHILAN, REB, REA, 2010

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;
LOUIE ALLEN R. DAHILAN, REB, REA, 2010

(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;
LOUIE ALLEN R. DAHILAN, REB, REA, 2010

(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;

LOUIE ALLEN R. DAHILAN, REB, REA, 2010

(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;

LOUIE ALLEN R. DAHILAN, REB, REA, 2010

(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.
LOUIE ALLEN R. DAHILAN, REB, REA, 2010

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;

LOUIE ALLEN R. DAHILAN, REB, REA, 2010

(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;

LOUIE ALLEN R. DAHILAN, REB, REA, 2010

(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;
LOUIE ALLEN R. DAHILAN, REB, REA, 2010

(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;

LOUIE ALLEN R. DAHILAN, REB, REA, 2010

(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;

LOUIE ALLEN R. DAHILAN, REB, REA, 2010

(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;

LOUIE ALLEN R. DAHILAN, REB, REA, 2010

(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;

LOUIE ALLEN R. DAHILAN, REB, REA, 2010

(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.

LOUIE ALLEN R. DAHILAN, REB, REA, 2010

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;

LOUIE ALLEN R. DAHILAN, REB, REA, 2010

(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

LOUIE ALLEN R. DAHILAN, REB, REA, 2010

(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.

LOUIE ALLEN R. DAHILAN, REB, REA, 2010

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.

LOUIE ALLEN R. DAHILAN, REB, REA, 2010

THANK YOU VERY MUCH

LOUIE ALLEN R. DAHILAN, REB, REA, 2010

LOUIE ALLEN R. DAHILAN, REB, REA, 2010