Course: ELEC.

2 Real Estate Brokerage

Objective: To introduce to students in the Real Estate Brokerage practice by equipping
them with the concepts and harnessing to them the standards and other considerations in
this career, at the same time to prepare them to be equip on the board examinations.
Module: 4 Week: 16

PART V OTHER RELATED REAL ESTATE LAWS

REPUBLIC ACT NO. 7279 AN ACT TO PROVIDE FOR A COMPREHENSIVE AND

CONTINUING URBAN DEVELOPMENT AND HOUSING PROGRAM,
Sec. 27. Action Against Professional Squatters and Squatting Syndicates. — The LGUs, xxx
shall adopt measures to identify and effectively curtail the nefarious and illegal activities of
professional squatters and squatting syndicates

Penalties:
Any person or group identified as such shall be summarily evicted and their dwellings or
structures demolished, and shall be disqualified to avail of the benefits of the Program. A
public official who tolerates or abets the commission of the abovementioned acts shall be
dealt with in accordance with existing laws.
For purposes of this Act, professional squatters or members of squatting syndicates shall be
imposed the penalty of six (6) years imprisonment of a fine of not less than Sixty thousand
pesos (P60,000.00) but not more than One hundred thousand pesos (P100,000), or both, at
the discretion of the court.

FUNDAMENTALS OF CONTRACTS AND AGENCY

Contract Defined meeting of minds between two persons whereby one binds himself,
with respect to the
other, to give something or render some service in return.
Elements of a valid contract
1. Consent of the contracting parties
2. Object certain which is the subject matter of the contract
3. Cause or consideration of the obligations which is established

Objects of a contract
1. All things which are not outside the commerce of men including future things or
property can be the object of a contract. All rights which are not instransmissible may also
be the object of contracts.
2. All services which are not contrary to law, morals, good customs, public order or public
policy may likewise be the object of the contract.
3. No contact maybe entered into upon future inheritance except in cases expressly
authorized by law

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Form of a contract to be of obligatory force
ntered into, it shall be
obligatory provided all of the essential elements for its validity are present
In what ever form Except when:
1. The law requires that it must be in a certain form in order to be valid;
2. The law requires that the contract must be in a certain form in order to be enforceable

Contracts which must appear in writing

1. Donations of personal property whose sale exceeds P5,000;
2. Sale of piece of land or any interest therein by an agent;
3. Contract of antichresis; and
4. Agreements regarding payment of interest in contracts of loan.

Inexistent and void contracts from the beginning

1. Those whose cause, object or purpose is contrary to law, morals, good customs, public
order or public policy;
2. Those which are absolutely simulated or fictitious;
3. Those whose cause or object did not exist at the time of the transaction and can not
come into existence;
4. Those whose object is outside the commerce of man;
5. Those which contemplate an impossible service;
6. Those where the intention of the parties relative to the principal object cannot be
ascertained; and
7. Those expressly prohibited or declared void by law.

Voidable contracts
1. Those where one of the parties is incapable of giving consent to a contract (e.g. insane
@ sell)
2. Those where the consent is vitiated by mistake, violence, intimidation, undue influence or
fraud.

Unenforceable contracts
1. Those entered into in the name of another person by one who has no authority or legal
representation, or who has acted beyond his power (eg. selling property w/o authority)
2. Those that do not comply with the Statute of Frauds; and
3. Those where both parties are incapable of giving consent.

Enforceable contract when a contract is enforceable under the Statute of Frauds, and a
public document is necessary for its registration in the Registry of Deeds, the parties may
avail of the right when a specific form is required by law. (eg. Contract of sale in private
writing valid between parties not 3rd persons)

CONTRACT OF AGENCY

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behalf of another, with the consent or authority of the latter. It is based on representation in
behalf of the principal

Elements of Agency
1. Consent of the parties (the principal, agent, at times the sub-agent)
2. Subject matter (the juridical act to be performed by the agent and the act must be
possible, lawful determinate and non- personal);
3. Consideration ( the compensation to be paid or the commission to be earned by the agent

Acceptance of Agency
1. Express - in writing or through a public document, like the Special Power of Attorney.
2. Implied - implied from the acts of the agent carrying out the agency or from the silence
or inaction of the principal under the circumstances.

Modes of extinguishing a contract of agency

1. By expiration of the period for which that agency was constituted;
2. By the death , civil interdiction, insanity or insolvency of the principal or the agent;
3. By the withdrawal of the agent;
4. By the accomplishment of perfection of the object or purpose of the agency;
5. By the revocation of the agent’s employment;
6. By the dissolution of the firm or corporation which entrusted or accepted the agency; and
7. By other modes such as: termination of mutual consent, novation, loss of the subject
matter and outbreak of war

R.A. 9856 THE REAL ESTATE INVESTMENT TRUST ACT ( AN OVERVIEW)

The law grants certain incentives to REITs in order to achieve the following objectives: To
make large-scale, income- producing real estate investments To be accessible to ordinary
investors To develop the capital market; To help finance and develop infrastructure projects;
and To protect the investing public (Sec. 2 REIT) SALIENT FEATURES:
1. REIT must be a corporation.
2. REIT must be a real estate company.
3. REIT must have a minimum paid up capital of P300M (Sec. 8.2, REIT)
- in cash or property
4. REIT must be a publicly listed company with local stock exchange
5. Minimum public ownership (MPO) requirement There must be at least 1,000 ―public
shareholders‖ (PS); Each owning at least 50 shares of a class of share; Who, in the
aggregate, own at least 1/3 of the REIT’s outstanding capital stock (Sec. 8.1, REIT)
Public shareholder means a shareholder of a REIT other than the following persons: -The
sponsor/promoter of the REIT – contributes cash or property in incorporating REIT -a
director, principal officer or principal shareholder of the sponsor/promoter of the REIT .
6. Mandatory Dividend Declaration
REIT must annually distribute at least 90% of its Distributable Income to its shareholders
References:

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Mallonga R. (2013). Comprehensive Real Estate Seminar Reviewer. E-Global Order
Corporation. Butuan City, Philippines.

Pobre, G. (2012). Comprehensive Agrarian Reform Program. Comprehensive Real Estate

Seminar. PAREB-DBRFI. Davao City, Philippines

BIONGAN-PESCADERA, M, (2014). Property Documentation and

Registration. Comprehensive Real Estate Seminar. PAREB-DBRFI. Davao City, Philippines