29 RESA 9646 (1).pptx

1. REAL ESTATE SERVICE ACT
(RESA 9646)
“An Act Regulating The Practice Of Real Estate Service In The
Philippines, Creating For The Purpose A Professional Regulatory
Board Of Real Estate Service, Appropriating Funds Therefore
And For Other Purposes.”

2. The Real Estate Service Act[
RESA]
 Now R.A. no. 9646
 Regulatory law on the practice of Real estate
Service of the Philippines
 Professionalizes and regulates practitioner
through the professional Regulation Commission:
◦ Real Estate Consultants
◦ Real Estate Appraisers.
(including LGU assessors and NGA appraisers)
◦ Brokers

3. The RESA

4. Rationale
 Real property is a vital driver of the economy
◦ Stimulating the land market
◦ Encouraging investment
◦ Revenue generation by the government
◦ Sound decision making of property owners
◦ Better policy making and governance
◦ Protection of public, etc.
 Professionalization and regulation essential
 Real estate practice is a profession w/
multidisciplinary body of knowledge.


5. Rationale
 Valuation and Appraisal: core of professionalization
◦ Covers a broad range of property types in varied geographical &
economic conditions.
◦ Result of such highly technical work provide the basis for decisions w/
regard to property sales, expropriation, compensation, mortgage financing,
assessment of taxes, etc..
 Consultancy is an expert level of practicing valuation
and / or brokerage.
 Brokerage facilitates transactions of parties


6. Why Professionalize LGU Assessors?
 They are appraisers who also perform assessment function essentially for
LGU taxation purposes
 A very large group, larger than private appraisers:
◦ Physical presence all over the country outputs are complete, voluminous
and varied.
 Perform sensitive functions w/ in a unique and highly politicized environment
 Output of Assessors are crucial and critical to the viability of LGUs as they
directly affect local revenues and national income


7. State Policy (Article 1, sec. 2)
 State recognized vital role of the profession
in the social, political, economic development and progress the
country
 State to develop and nurture a corps of
technically competent, responsible and
respected professionals through proper and effective
regulation and supervision


8. Salient Provisions
 The RESA

9. Act Constituting Real Estate Service Practice
CONSULTANT
APPRAISER
SALESPERSON
ASSESSOR
BROKER
Renders professional advice and judgment on the acquisition,
enhancement, preservation, utilization or disposition of lands or
improvement thereon & the conception, planning management
and development of real estate projects.
Perform 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 service of w/c shall be finally rendered by the
preparation of the report in acceptable written form.
Performs appraisal & assessment of real properties , including
plants, equipment & machineries, essentially for taxation
purposes.
Acts an agent of a party of a real estate transaction to 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.
Performs service for, and in behalf of, a real estate broker in
expectation of share in the commission, professional fee,
compensation or other valuable consideration.

10. The Professional Board
 Board creation or composition ( sec 4)
◦ To be organized w/ in 6 mos.
◦ Appointment by the president from 3
recommendees chosen by PRC
◦ 2 members shall represent govt. assessors
and appraisers
 Term of office ( sec 7)
◦ 3 years each; re-appointment not to exceed
6 consecutive years
◦ First board: chairman; 3 years; first 2
members; 2 years; 2 other members;
1 year
 Compensation/ Allowances ( sec 8)
◦ Based on existing rates of other boards
 Suspension/ removal from the Board (
sec 9)
◦ By the president, upon PRC
recommendation
◦ • Board to submit annual report to
PRC detailing all accomplishment ( sec
11)
• PRC to Supervise the board and
provide secretariat and enforcement
assistance

11. Keys Powers and Function of the Board (Art.2 sec 5)
 Policy guidance
 Licensure examination; prescription of appropriate syllabi
 Issuance, suspension , revocation or reinstatement of certificate of registration or PRC ID
 Monitor and enhance the practice of the profession; maintain high professional, ethical or
technical standards
 Adopt a code of ethics and responsibilities ( sec 35)
 Hear and investigate violation; quasi-judicial and admin powers
 Safeguard and protect legitimate practitioners
 Prescribe academic requirements for course offering; CPE program; accredits seminar,
lecturer, etc.
 Supervise AIPO and related associations

12. QUALIFICATION OF CHAIR AND BOARD
MEMBERS
 Filipino citizen; resident of the Philippines
 Bachelor’s degree related to Real Estate
 Active practice for at least 10 years prior to
appointment
 Bona fide member of the AIPO but not an officer
or trustee at the time of appointment
 Neither a faculty member of any academic
institution nor have any pecuniary interest in any
group where review classes or lectures are
offered of conducted


13. Licensure Examination & Registration (article 3)
Scope
of
Examination
article
3,sec.
13
- 75% passing rate in all subjects no grade in any subjects below 50%
(art.3,sec.15)
- 10 days max.- release of exam result (art.3,sec.16)
Real Estate
Consultants
Real Estate
Appraiser
Real Estate
Brokers
 Fundamental of Real Estate consulting
 Standards and ethics
 Consulting tools & techniques
 Real estate finance & economics
 Real estate consulting & investment analyses
 Consulting for specific engagement
 Consulting for government & corporate & financial
institutions
 Lands management system & real property laws
 Fundamental of real estate principles & practice
 Standards & ethics
 Theories & principles in appraisal
 Human & physical geography
 Methodology & appraisal approaches
 Valuation procedures 7 research
 Appraisal & machinery equipment
 Practical appraisal mathematics
 Appraisal report writing
 Real estate finance & economics
 Case study
 Land management system& real property laws
 Fundamentals of property ownership
 Code of ethics & responsibilities
 Legal requirements for real estate
service practice
 Real estate brokerage practice
 Subdivision development
 Condominium concept
 Real Estate & economics
 Basic principles of ecology
 Urban & rural land use
 Planning, development & zoning
 Legal

14.  Filipino citizen
 Has a Bachelor’s Degree in Real Estate
Management - shall be a requirement as implemented
by the CHED ( starting CY 2016)
 Of good moral character & must not have been
convicted of any crime involving moral turpitude
 For real estate consultants:
◦ At least 10 years experience in either capacity as a
licensed real estate broker
◦
Qualification for Application for Exam (Article 3, sec 14)

15. CERTIFICATE OF REGISTRATION & PRC ID (ARTICLE 2. SEC.17)
 PRC ID renewable every 3 years
 Satisfy Board requirements, i.e. CPE
 To be displayed in the place of business
(ARTICLE 4. SEC.33)
 Practitioner to indicate license
information(AIPO/PTR numbers/ date
of issuance in documents he/ she signs

16. REVOCATION OF PRC ID &CERTIFICATE (ARTICLE 2. SEC.19)
 fraudulent/ deceitful procurement of the certificate of
registration & or PRC ID or special temporary permit
 Advertisement of unqualified person using
somebody else’s certificate, PRC ID, or special
temporary permit
 Unprofessional & unethical conduct
 Malpractice or violation of RESA, its IRR, and the
code of ethics & responsibilities


17. REGISTRATION WITHOUT EXAMINATION ( ARTICLE 2. SEC.30)
A. Those already licensed as real
estate brokers, or real estate
appraisers, or real estate
consultants by the DTI under
Ministry Order No. 39
-They are in active practice as brokers,
appraisers & consultants
-Have undertaken relevant CPE to the
satisfaction of the board
B. Assessors & appraiser who hold
permanent appointment & are
performing actual appraisal &
assessment functions for the at least
5 years
-Passed the RPAO Examination
- Have undertaken relevant CPE to
the satisfaction of the board
C. Assessors & appraiser who hold
permanent appointment & have at least
10 years experience in Real property
appraisal or assessment
- Have completed 120 hours of accredited
training
- Have undertaken relevant CPE to the
satisfaction of the board
 Application shall be w/in 2 years from the affectivity of RESA
 Renewal of the PRC ID is subject to the provisions of section 17
 B & C shall comply w/ the requirements for registration RE appraisers
 Those seeking to be licensed to a new credential level shall be required to take pertinent
licensure examination

18. FOREIGN PRACTITIONER
Foreign Reciprocity Principle (ARTICLE 3 SEC. 14)
Foreign practitioners, whose governments admit
Filipinos to practice the profession in their countries, will
be allowed to practice the profession in the Philippines
Special /Temporary Permit ( ARTICLE 3. SEC. 23)
Applicable for foreign practitioners whose services are
urgently needed in the absence or unavailability of local
practitioners

19. PRACTICE OF REAL ESTATE
SERVICE
THE RESA

20. OTHER REQUIREMENTS TO PRACTICE PROFESSION
(ARTICLE 4)
 OATH (ARTICLE 4 sec. 5)
◦ Applies to all qualified examinees, applicants for registration
w/out examination,& accredited salespersons
 Professional Indemnity Insurance/bond (ARTICLE 4.SEC.26)
◦ Applicable only to private sector practitioners
 Additional requirement for licensure/renewal
◦ Amount to be determined by the Board, but not less than
Php20,000
◦ Client may require additional bond/insurance
◦

21. EXEMPTION FROM THE PRACTICE (ARTICLE 4. SEC.28)
-any person who shall directly perform the acts of real estate
service upon own property, except real estate developers.
-receivers, trustees or assignees bankruptcy/ insolvency
proceedings .
-persons acting pursuant to the order of the court
-attorney-in-fact on sale, mortgage, lease or exchange, or
other similar acts on real estate w/out compensation or
remuneration in any form.

22. PROHIBITIONS AGAINST UNAUTHORIZED PRACTICE
Private practice
 No license + Bond= No practice/ advertisement of profession
(ARTICLE 4,SE.29)
Government Practice
 No license= no appointment as real
property appraiser or assessor in any
NG Entity or LGU (ARTICLE 4, SEC.29)
 Within 3 years, all existing & new NG & LGU positions, whether, career,
permanent, temporary or contractual shall be filled only by registered
licensed practitioners ( sec.30)
 Incumbent processors / & assistant assessors w/ permanent
appointments shall continue to performs functions w/out reappointment,
diminution of status, rank & salary grade, & shall enjoy security of tenure .
Not be promoted to higher position until they meet the qualification
requirements of the higher position.

23. SUPERVISION OF SALES PERSONS (ARTICLE 4, SEC.31)
 Accreditation only
 2 years college
 Training & seminars of real estate brokerage
 Direct supervision & accountability brokers
 Cannot sign transaction documents, co- signed by a licensed
broker


24. CORPORATE PRACTICE (ARTICLE 4, SEC.32)
 Sec registration
 Persons acting for the partnership or corporation should all
be duty registered & licensed practitioners
 Broker for every 20 accredited salespersons
 Divisions or departments engage in marketing or selling
any real estate development project must beheaded by full
time registered & licensed brokers


25. ACCREDITATION & INTEGRATION (ARTICLE 4, SEC. 34)
All real estate service
associations to be
integrated into 1
national organization as
the only accredited &
integrated professional
organization of
practitioners
Automatic
membership to the
integrated organization
Is not a bar to
membership in other
associations
Appraisers
Association
Brokers
Association
Consultants
Association
Assessors
Association
Integration
Organization

26. CONTINUING PROFESSIONAL EDUCATION ( ARTICLE5, SEC.36)
 Board will develop,
prescribe, & promulgate
CPE programs &
guidelines
 In consultation w/ the
integrated professional
organization & other
concerned sectors]
 CPE council
Member
from
the
academ
e
Board
member as
chairperson
Member of
integrated
professional
association
CPE council

27. PENAL & FINAL PROVISIONS
The RESA

28. PENAL & FINAL PROVISION OF RESA (ARTICLE 5)
 Penal Provision ( sec.39)
 Fine-not <Php100,000.00; imprisonment- < than 2 years
 Offense committed by unlicensed practitioner, penalty- double fine & imprisonment
 Corporate offense: covers those consented to or tolerated the violation
 Appropriations from the Board (sec.40)
 Funding requirement of RESA- GAA
 Transitory Provision (sec. 41)
 DTI- BTPCP to transfer records & documents to PRC w/ in 90 days
 IRR (sec.42)
 Shall be prepared w/ in 6 mos. by the Board, APO, DOF, CHED
 Repealing clause (sec.44)
 Act Nos. 2728, 3715 & 3969 granting DTI the regulation of the practice
 RA 7160 (Secs. 472 & 473) & pertinent provisions of CS law
 Affectivity (sec.45)
 Takes effect 15 days after publication in the Official Gazette or in a major daily news paper of general circulation