RESA

REPUBLIC ACT NO. 9646

T H E R E A L E S T A T E S E R V I C E A C T

“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 Therefor & for Other Purposes”
T HE R EAL E STATE S ERVICE A CT (RESA)
 Now R.A. No. 9646
 Signed 29 Jun ‘09
 Published 15 Jul ’09
(Philippine Daily Inquirer)

 Regulatory law on the

practice of real estate
service in the Philippines
 Professionalizes & 9646
regulates practitioners
through the Professional
Regulation Commission:
 Real estate consultants
 Real estate appraisers
(including LGU assessors &NGA
appraisers)
 Brokers
 overview
THE RESA LAW
R ATIONALE
 Real property is a vital driver of the economy
 Professionalization & regulation essential for
 Stimulating the land market
 Encouraging investments
 Revenue generation by the government
 Sound decision making of property owners
 Better policy making & governance
 Protection of public, etc.
 Real estate practice is a profession with multi-
disciplinary body of knowledge
 Gearing towards international best practices
R ATIONALE
 Valuation/appraisal: core of professionalization
 Covers a broad range of property types in varied
geographical & economic conditions
 Results of such highly technical work provide the basis
for decisions with regard to property sales,
expropriation compensation, mortgage financing,
assessment of taxes, etc.
 Consultancy as an expert level of practicing
valuation and/or brokerage
 Brokerage facilitates transactions of parties
 Profession requires technical competence/
continuing education & confidence of the public
W HY P ROFESSIONALIZE LGU A SSESSORS ?
 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
complex, voluminous & varied

 Perform sensitive functions within a unique & highly

politicized environment

 Output is crucial & critical to the viability of LGUs as

they directly affect local revenues & national income

 Professionalization will provide them continuing

technical education & training geared to global
standards
S TATE P OLICY (ARTICLE I. SEC. 2)

1. State recognizes vital role of the profession in

the social, political, economic development and
progress of the country
2. State to develop and nurture a corps of
technically competent, responsible and
respected professionals through proper and
effective regulation and supervision
3. State to promote standards of practice and
service to be globally competitive and the
growth of the real estate industry
salient provisions
THE RESA LAW
ACTS CONSTITUTING REAL ESTATE SERVICE PRACTICE
Render professional advice & judgment on the acquisition, enhancement,
CONSULTANT preservation, utilization or disposition of lands or improvements thereon, &
the conception, planning, management & development of real estate projects

Performs or renders, or offers to perform services in estimating & arriving at

APPRAISER 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

Performs appraisal & assessment of real properties, including plants,

ASSESSOR equipment, & machineries, essentially for taxation purposes

Acts as an agent of a party in a real estate transaction to offer, advertise,

solicit, list, promote, mediate, negotiate or effect the meeting of the minds on
BROKER
the sale, purchase, exchange, mortgage, lease or joint venture, or other
similar transactions on real estate or any interest therein

Performs service for, & in behalf of, a real estate broker for or in expectation of
SALES PERSON a share in the commission, professional fee, compensation, or other valuable
consideration

- ARTICLE I. SEC. 3G
T HE P ROFESSIONAL B OARD
Board Creation/Composition (Sec. 4)
 to be organized within 6 mos.
 Appointment by the President from 3
recommendees chosen by PRC
 2 members shall represent the govt.
assessor & 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
- for neglect of duty, abuse of power, oppression,
incompetence, etc., or for conviction of any criminal
offense involving moral turpitude.
 Board to submit annual report to PRC
detailing all accomplishment (Sec. 11)
 PRC to supervise the Board and provide
secretariat and enforcement assistance
(Sec. 10 & Sec. 37)
KEY POWERS & FUNCTIONS OF THE BOARD (ARTICLE II. SEC. 5)
 Policy guidance
 Licensure examinations; prescription of appropriate syllabi
 Issuance, suspension, revocation or reinstatement of
certificates of registration or PRC ID
 Monitor and enhance the practice of the profession; maintain
high professional, ethical/technical standards
 Adopts a Code of Ethics & Responsibilities (Sec. 35)
 Hear and investigate violations: quasi-judicial & admin powers
 Safeguard & protect legitimate practitioners
 Prescribe academic requirements for course offering; CPE
program; accredits seminars, lecturers, etc.
 Supervise APO & related associations
QUALIFICATIONS OF CHAIR & BOARD MEMBERS (ARTICLE II. SEC. 6)
 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 APO 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 or conducted
 good moral character, not convicted of a criminal
offense
LICENSURE EXAMINATION & REGISTRATION (ARTICLE III)
SCOPE OF EXAMINATION
(ARTICLE III. SEC. 13)

 75% PASSING RATE IN ALL SUBJECTS;

N O G R A D E I N A N Y S U B J E C T B E L O W 5 0 % (ARTICLE III. SEC. 15)
 1 0 D A Y S – R E L E A S E O F E X A M R E S U L T S (ARTICLE III. SEC. 16)
QUALIFICATIONS OF APPLICANTS FOR EXAM (ARTICLE III. SEC. 14)
 Filipino citizenship
 Relevant bachelor’s degree (a Bachelor's degree in Real
Estate Service shall be a requirement upon its implementation by
the CHED)
 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, an assessor, or as a bank or institutional
appraiser or an employed person performing RP valuation
 At least 5 years experience as an appraiser
CERTIFICATE OF REGISTRATION & PRC ID (ARTICLE II. SEC. 17)

Photo
NAME OF PROFESSIONAL BOARD Photo

NAME OF PROFESSIONAL TITLE OF PROFESSION

TITLE OF PROFESSION

 PRC ID renewable every 3 years

 satisfy Board requirements, i.e. CPE
 to be displayed in the place of business (ARTICLE IV. SEC. 33)
 Practitioners to indicate license information (APO/PTR numbers/date of
issuance) on documents he/she signs (ARTICLE III. SEC. 38)
REVOCATION OF PRC ID & CERTIFICATE (ARTICLE II. SEC. 19)
 fraudulent/deceitful procurement of a 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 or unethical conduct

 malpractice or violation of RESA, its IRR, & the Code of

Ethics & Responsibilities

 Practice of profession while under suspension

REGISTRATION WITHOUT EXAMINATION (ARTICLE II. SEC. 20)
A  Those already licensed as real estate brokers, 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 & appraisers who hold permanent appointment & are

performing actual appraisal & assessment functions for the last 5 years
 Passed the RPAO Examination
 Have undertaken relevant CPE to the satisfaction of the Board

C  Assessors & appraisers 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 within 2 years from the effectivity of RESA

 Renewal of the PRC ID is subject to the provisions of Section 17
 B & C shall comply w/ the requirements for registration as RE
appraisers
 Those seeking to be licensed to a new credential level shall be
required to take the pertinent licensure examination
FOREIGN PRACTITIONERS
Foreign Reciprocity Principle (ARTICLE III. SEC. 24)
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 III. SEC. 23)

Applicable for foreign practitioners whose
services are urgently needed in the absence or
unavailability of local practitioners
practice of real
estate service
THE RESA LAW
OTHER REQUIREMENTS TO PRACTICE PROFESSION (ARTICLE IV)

OATH (A IV, S . 25)

RTICLE EC

 Applies to all qualified examinees, applicants

for registration without examination, and
accredited salespersons

PROFESSIONAL INDEMNITY INSURANCE/BOND (A IV, S . 26)

RTICLE EC

 Applicable only to private sector practitioners

- Additional requirement for licensure/renewal
 Amount to be determined by the Board,
but not less than Php20,000.00
 Client may require additional bond/insurance
 Renewable every 3 years
E XEMPTIONS FROM THE P RACTICE (A RTICLE IV. 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 in 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, without compensation
or remuneration in any form
 public officers while performing their official duties &
functions, except government assessors & appraisers
PROHIBITIONS A GAINST UNAUTHORIZED PRACTICE
PRIVATE PRACTICE
 No license + bond = no practice/advertisement of
profession (ARTICLE IV. SEC. 29)

GOVERNMENT PRACTICE
 No license = no appointment as real property appraiser or
assessor in any NG entity or LGU (ARTICLE IV. 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 assessors/assistant assessors with permanent
appointments shall continue to perform functions without
reappointment, diminution of status, rank & salary grade, &
shall enjoy security of tenure. Not be promoted to a higher
position until they meet the qualification requirements of the higher
position.
S UPERVISION OF S ALES P ERSONS (ARTICLE IV. SEC. 31)

 accreditation only

 2 years college

 trainings & seminars in real estate brokerage

 direct supervision & accountability brokers

 cannot sign transaction documents, co-signed by a

licensed broker

 not entitled to receive or demand a fee, commission or

compensation of any kind from any person, other than
the broker
C ORPORATE P RACTICE (ARTICLE IV. SEC. 32)

 SEC registration
 Persons acting for the partnership or corporation should all be
duly registered & licensed practitioners
 1 Broker for every 20 accredited salespersons
 Divisions or departments engaged in marketing or selling any
real estate development project must be headed by full time
registered & licensed brokers
 Branch offices must be manned by licensed practitioners
 May hire the services of registered & licensed practitioners on
commission basis as independent contractors & not as
employees
ACCREDITATION & INTEGRATION (A RTICLE IV. 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
CONTINUING PROFESSIONAL EDUCATION (A RTICLE IV. SEC. 36)

 Board will develop, CPE Council

prescribe, & promulgate
CPE program & guidelines
 In consultation with the
integrated professional
organization & other
concerned sectors
 CPE council
penal & final
provisions
THE RESA LAW
P ENAL & F INAL P ROVISIONS OF RESA (A RTICLE V)

Penal Provisions (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 for the Board (SEC. 40)
 Funding requirement of RESA - GAA
Transitory Provision (SEC. 41)
 DTI-BTRCP 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) and pertinent provisions of CSC law
Effectivity (SEC. 45)
 Takes effect 15 days after publication in the Official Gazette or in a
major daily newspaper of general circulation
RESA Implementation
Updates
THE RESA LAW
THE INTERIM ACCREDITED PROFESSIONAL
ORGANIZATION (APO)

October 22, 2009 -

PRC met with
LAMP-BLGF and the
public and private
sector RESPs’
associations for the
organization of the
Federation of Real
Estate Service
Associations
(FRESA)
 FIRST MEETING OF FRESA FOR THE ELECTION OF
OFFICERS

(1) technical assistance in the establishment of the interim FRESA; and

(2) support FRESA in the selection of nominees to the Board from the
government and private sectors and for submission to the PRC.
 MEETING WITH P RIVATE SECTOR B UILDERS

The Subdivision and Housing Developers Association (SHDA) met with

the Advocacy Team on January 28, 2010 to discuss concerns on RESA
MEETING WITH THE C IVIL SERVICE COMMISSION (CSC) ON THE
APPLICATION OF THE GRANDFATHER CLAUSE

Meeting with CSC Chairman Francisco Duque III on February 11, 2010,
on the implementation of RESA
LAMP Assistance
THE RESA LAW
 L AMP ASSISTANCE ON RESA IMPLEMENTATION

•TAs for formulation of IRR

•TA for development of licensure
examination
• Nationwide RESA dissemination
Thank You!