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National Code of Ethics for 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 abet 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 recall
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 valid 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

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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 graceful, honest and unprejudiced.
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;

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(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 aid, 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 prove 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 piece of society with obvious 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 class;
(c) He should keep himself well informed as to any movement affecting right estate
in his community, city or province, so that he may be able to contribute to public
thinking on matters of taxation, land consume, 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;

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(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 dependable 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;

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(c) He should not accept any commission, fee or any critical consideration from any
party in any transaction except from his client unless with the fleshy 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 procure 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
designate 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 befriend 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 glance in a court proceeding he should give his
testimonies in the most unbiased, honest, truthful and professional manner;
(j) As a accurate estate appraiser, he should not render an view 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.

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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 buyers 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 thought of a
competitors transaction. If his opinion is sought, it should be rendered with
professional integrity and courtesy;

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(h) The real estate practitioners should view no unfair advantage over his fellow
practitioners and should willingly section 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
exercise of letters or circulars announcing ones 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;

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(c) He should support his organization morally and financially and actively support its
plans, programs and projects for the abet 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 sterling thereon when the favorable 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

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