Professional Documents
Culture Documents
means of carrying out the general object. It is also project in the regular course of business are now
well-settled that the “one title-one subject” rule required to be headed by full-time, registered and
does not require the Congress to employ in the title licensed real estate brokers, this requirement
of the enactment language of such precision as to constitutes limitations on the property rights and
mirror, fully index or catalogue all the contents business prerogatives of real estate developers
and the minute details therein. The rule is which are not all reflected in the title of R.A. No.
sufficiently complied with if the title is 9646. Neither are real estate developers, who are
comprehensive enough as to include the general already regulated under a different law, P.D. No.
object which the statute seeks to effect. Indeed, 957, included in the definition of real estate service
this Court has invariably adopted a liberal rather practitioners. We hold that R.A. No. 9646 does not
than technical construction of the rule “so as not to violate the one-title, one-subject rule.
cripple or impede legislation.”
295
Real State Industry; Real estate developers are
prohibited from performing acts or transactions
constituting real estate service practice without first Statutory Construction; Implied Repeal of
complying with registration and licensing Statutes; It is a well-settled rule of statutory
requirements for their business, brokers or agents, construction that repeals by implication are not
appraisers, consultants and salespersons.—R.A. favored. In order to effect a repeal by implication,
No. 9646 is entitled “An Act Regulating the the later statute must be so irreconcilably
Practice of Real Estate Service in the Philippines, inconsistent and repugnant with the existing law
Creating for the Purpose a Professional Regulatory that they cannot be made to reconcile and stand
Board of Real Estate Service, Appropriating Funds together.—It is a well-settled rule of statutory
Therefor and For Other Purposes.” Aside from construction that repeals by implication are not
provisions establishing a regulatory system for the favored. In order to effect a repeal by implication,
professionalization of the real estate service sector, the later statute must be so irreconcilably
the new law extended its coverage to real estate inconsistent and repugnant with the existing law
developers with respect to their own properties. that they cannot be made to reconcile and stand
Henceforth, real estate developers are prohibited together. The clearest case possible must be made
from performing acts or transactions constituting before the inference of implied repeal may be
real estate service practice without first complying drawn, for inconsistency is never presumed. There
with registration and licensing requirements for must be a showing of repugnance clear and
their business, brokers or agents, appraisers, convincing in character. The language used in the
consultants and salespersons. Petitioners point out later statute must be such as to render it
that since partnerships or corporations engaged in irreconcilable with what had been formerly
marketing or selling any real estate development enacted. An inconsistency that falls short of that
standard does not suffice. Moreover, the failure to ing their ranks and raising the level of ethical
add a specific repealing clause indicates that the standards for licensed real estate professionals.
intent was not to repeal any existing law, unless Same; Statutory Construction; The rule is that
an irreconcilable inconsistency and repugnancy every statute must be interpreted and brought into
exist in the terms of the new and old laws. accord with other laws in a way that will form a
Statutes; Real Estate Service Act of the uniform system of jurisprudence.—The rule is that
Philippines (R.A. No. 9646); Real Estate Brokers; every statute must be interpreted and brought into
Section 29 of R.A. No. 9646 requires as a condition accord with other laws in a way that will form a
precedent for all persons who will engage in acts uniform system of jurisprudence. The legislature is
constituting real estate service, including presumed to have known existing laws on the
advertising in any manner one’s qualifications as a subject and not to have enacted conflicting laws.
real estate service practitioner, compliance with Congress, therefore, could not be presumed to have
licensure examination and other registration intended Sections 28, 29 and 32 of R.A. No. 9646 to
requirements including the filing of a bond for real run counter to P.D. No. 957.
estate brokers and private appraisers.—Section 29 Constitutional Law; Police Power; No right is
of R.A. No. 9646 requires as a condition precedent absolute, and the proper regulation of a profession,
for all persons who will engage in acts constituting calling, business or trade has always been upheld
real estate service, including advertising in any as a legitimate subject of a valid exercise of the
manner one’s qualifications as a real estate service police power of the State particularly when their
practitioner, compliance with licensure conduct affects the execution of legitimate
examination and other registration requirements governmental functions, the preservation of the
including the filing of a bond for real estate State, public health and welfare and public morals.
brokers and private appraisers. While Section 11 of —Indeed, no right is absolute, and the proper
P.D. No. 957 imposes registration requirements for regulation of a profession, calling, business or
dealers, brokers and salespersons engaged in the trade has always been upheld as a legitimate
selling of subdivision lots and condominium units, subject of a valid exercise of the police power of the
Section 29 of R.A. No. 9646 regulates all real State particularly when their conduct affects the
estate service practitioners whether private or execution of legitimate governmental functions,
government. While P.D. No. 957 seeks to supervise the preservation of the State, public health and
brokers and dealers who are engaged in the sale of welfare and public morals. In any case, where the
subdivision lots and condominium units, R.A. No. liberty curtailed affects at most the rights of
9646 aims to regulate the real estate service sector property, the permissible scope of regulatory
in general by professionaliz- measures is certainly much wider. To pretend that
licensing or accreditation requirements violate the
296
due process clause is to ignore the settled practice,
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under the mantle of police power, of regulating constitute a sector that hires or employs the
entry to the practice of various trades or largest number of brokers, salespersons,
professions. appraisers and consultants due to the sheer
Same; Equal Protection of the Laws; If number of products (lots, houses and condominium
classification is germane to the purpose of the law, units) they advertise and sell nationwide. As early
concerns all members of the class, and applies as in the ‘70s, there has been a proliferation of
equally to present and future conditions, the errant developers, operators or sellers who have
classification does not violate the equal protection reneged on their representation and obligations to
guarantee.—Although the equal protection clause comply with government regulations such as the
of the Constitution does not forbid classification, it provision and maintenance of subdivision roads,
is imperative that the classification should be drainage, sewerage, water system and other basic
based on real and substantial differences having a requirements. To protect the interest of home and
reasonable relation to the subject of the particular lot buyers from fraudulent acts and manipulations
legislation. If classification is germane to the perpetrated by these unscrupulous subdivision and
purpose of the law, concerns all members of the condominium sellers and operators, P.D. No. 957
class, and applies equally to present and future was issued to strictly regulate housing and real
conditions, the classification does not violate the estate development projects. Hence, in approving
equal protection guarantee. R.A. No. 9646, the legislature rightfully recognized
the necessity of imposing the new licensure
297
requirements to all real estate service
practitioners, including and more importantly,
those real estate service practitioners working for
Real Estate Service Act of the Philippines (R.A. real estate developers. Unlike individuals or
No. 9646); Real Estate Brokers; R.A. No. 9646 was entities having isolated transactions over their
intended to provide institutionalized government own property, real estate developers sell lots,
support for the development of “a corps of highly houses and condominium units in the ordinary
respected, technically competent, and disciplined course of business, a business which is highly
real estate service practitioners, knowledgeable of regulated by the State to ensure the health and
internationally accepted standards and practice of safety of home and lot buyers.
the profession.”—R.A. No. 9646 was intended to Constitutional Law; Since every law is
provide institutionalized government support for presumed valid, the presumption of
the development of “a corps of highly respected, constitutionality can be overcome only by the
technically competent, and disciplined real estate clearest showing that there was indeed an
service practitioners, knowledgeable of infraction of the Constitution, and only when such
internationally accepted standards and practice of a conclusion is reached by the required majority
the profession.” Real estate developers at present
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Real Estate Service (PRBRES) created under government entity or local government unit, unless
the new law. he/she has satisfactorily passed the licensure
The implementing rules and regulations examination given by the Board, except as
(IRR) of R.A. No. 9646 were promulgated on otherwise provided in this Act, a holder of a
July 21, 2010 by the PRC and PRBRES under valid cer-
Resolution No. 02, Series of 2010.
300
On December 7, 2010, herein petitioners
Remman Enterprises, Inc. (REI) and the
Chamber of Real Estate and Builders’ tificate of registration, and professional
Association (CREBA) instituted Civil Case identification card or a valid
No. 10-124776 in the Regional Trial Court of special/temporary permit duly issued to
Manila, Branch 42. Petitioners sought to him/her by the Board and the Commission, and in
declare as void and unconstitutional the the case of real estate brokers and private
following provisions of R.A. No. 9646: appraisers, they have paid the required bond as
hereto provided.
SEC. 28. Exemptions from the Acts xxxx
Constituting the Practice of Real Estate Service.— SEC. 32. Corporate Practice of the Real Estate
The provisions of this Act and its rules and Service.—(a) No partnership or corporation shall
regulations shall not apply to the following: engage in the business of real estate service unless
(a) Any person, natural or juridical, who shall it is duly registered with the Securities and
directly perform by himself/herself the acts Exchange Commission (SEC), and the persons
mentioned in Section 3 hereof with reference to authorized to act for the partnership or
his/her or its own property, except real estate corporation are all duly registered and
developers; licensed real estate brokers, appraisers or
xxxx consultants, as the case may be. The partnership
SEC. 29. Prohibition Against the Unauthorized or corporation shall regularly submit a list of its
Practice of Real Estate Service.—No person shall real estate service practitioners to the Commission
practice or offer to practice real estate service in and to the SEC as part of its annual reportorial
the Philippines or offer himself/herself as real requirements. There shall at least be one (1)
estate service practitioner, or use the title, word, licensed real estate broker for every twenty (20)
letter, figure or any sign tending to convey the accredited salespersons.
impression that one is a real estate service (b) Divisions or departments of partnerships
practitioner, or advertise or indicate in any and corporations engaged in marketing or selling
manner whatsoever that one is qualified to any real estate development project in the regular
practice the profession, or be appointed as real course of business must be headed by full-time
property appraiser or assessor in any national registered and licensed real estate brokers.
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(c) Branch offices of real estate brokers, issuance of license to sell of subdivision
appraisers or consultants must be manned by a owners and developers pursuant to
duly licensed real estate broker, appraiser or Presidential Decree (P.D.) No. 957; (3) it
consultant as the case may be. violates the due process clause as it impinges
In case of resignation or termination from on the real estate developers’ most basic
employment of a real estate service practitioner, ownership rights, the right to use and dispose
the same shall be reported by the employer to the property, which is enshrined in Article 428 of
Board within a period not to exceed fifteen (15) the Civil Code; and (4) Section 28(a) of R.A.
days from the date of effectivity of the resignation No. 9646 violates the equal protection clause
or termination. as no substantial distinctions exist between
Subject to the provisions of the Labor Code, a real estate developers and the exempted
corporation or partnership may hire the services of group mentioned since both are property
registered and licensed real estate brokers, owners dealing with their own property.
appraisers or consultants on commission basis to Additionally, petitioners contended that
perform real estate services and the latter shall be the lofty goal of nurturing and developing a
deemed independent con- “corps of technically competent, reasonable
and respected professional real estate service
301
practitioners” is not served by curtailing the
right of real estate developers to conduct their
tractors and not employees of such corporations. business of selling properties. On the
(Emphasis and underscoring supplied.) contrary, these restrictions would have
disastrous effects on the real estate industry
According to petitioners, the new law is as the additional cost of commissions would
constitutionally infirm because (1) it violates affect the pricing and affordability of real
Article VI, Section 26 (1) of the 1987 estate packages. When that happens,
Philippine Constitution which mandates that petitioners claimed that the millions of jobs
“[e]very bill passed by Congress shall embrace and billions in revenues that the real estate
only one subject which shall be expressed in industry generates for the government will be
the title thereof”; (2) it is in direct conflict a thing of the past.
with Executive Order (E.O.) No. 648 which After a summary hearing, the trial court
transferred the exclusive jurisdiction of the denied the prayer for issuance of a writ of
National Housing Authority (NHA) to preliminary injunction.
regulate the real estate trade and business to
the Human Settlements Commission, now the 302
Housing and Land Use Regulatory Board
(HLURB), which authority includes the
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On July 12, 2011, the trial court rendered real estate developers was anchored on
its Decision2 denying the petition. The trial reasonable classification aimed at protecting
court held that the assailed provisions are the buying public from the rampant
relevant to the title of the law as they are misrepresentations often committed by
intended to regulate the practice of real estate unlicensed real estate practitioners, and to
service in the country by ensuring that those prevent unscrupulous and unethical real
who engage in it shall either be a licensed estate practices from flourishing considering
real estate broker, or under the latter’s the large number of consumers in the regular
supervision. It likewise found no real discord course of business compared to isolated sale
between E.O. No. 648 and R.A. No. 9646 as transactions made by private individuals
the latter does not render nugatory the selling their own property.
license to sell granted by the HLURB to real
estate developers, which license would still _______________
subsist. The only difference is that by virtue 2 Id.
of the new law, real estate developers will
now be compelled to hire the services of one 303
licensed real estate broker for every twenty
salespersons to guide and supervise the
Hence, this appeal on the following
coterie of salespersons under the employ of
questions of law:
the real estate developers.
On the issue of due process, the trial court 1. Whether there is a justiciable controversy for
said that the questioned provisions do not this Honorable Court to adjudicate;
preclude property owners from using, 2. Whether [R.A. No. 9646] is unconstitutional
enjoying, or disposing of their own property for violating the “one title-one subject” rule
because they can still develop and sell their under Article VI, Section 26 (1) of the
properties except that they have to secure the Philippine Constitution;
services of a licensed real estate broker who 3. Whether [R.A. No. 9646] is in conflict with
shall oversee the actions of the unlicensed PD 957, as amended by EO 648, with respect
real estate practitioners under their employ. to the exclusive jurisdiction of the HLURB to
Since the subject provisions merely prescribe regulate real estate developers;
the requirements for the regulation of the 4. Whether Sections 28(a), 29, and 32 of [R.A.
practice of real estate services, these are No. 9646], insofar as they affect the rights of
consistent with a valid exercise of the State’s real estate developers, are unconstitutional
police power. The trial court further ruled for violating substantive due process; and
that Section 28(a) does not violate the equal 5. Whether Section 28(a), which treats real
protection clause because the exemption of estate developers differently from other
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natural or juridical persons who directly other words, the pleadings must show an
perform acts of real estate service with active antagonistic assertion of a legal right,
reference to their own property, is on the one hand, and a denial thereof on the
unconstitutional for violating the equal other; that is, it must concern a real and not a
protection clause.3 merely theoretical question or issue. There
ought to be an actual and substantial
The Court’s Ruling controversy admitting of specific relief
The petition has no merit. through a decree conclusive in nature, as
distinguished from an opinion advising what
Justiciable Controversy the law would be upon a hypothetical state of
The Constitution4 requires as a condition facts.7 An actual case is ripe for adjudication
precedent for the exercise of judicial power when the act being challenged has a direct
the existence of an actual contro- adverse effect on the individual challenging
it.8
_______________ There is no question here that petitioners
3 Id., at pp. 172-173. who are real estate developers are entities
4 1987 CONSTITUTION, Article VIII, Sec. 1, par. 2. directly affected by the prohibition on
Judicial power includes the duty of the courts of performing acts constituting practice of real
justice to settle actual controversies involving rights estate service without first complying with
which are legally demandable and enforceable, and to the registration and licensing requirements
determine whether or not there has been a grave abuse of for brokers and agents under R.A. No. 9646.
discretion amounting to lack or excess of jurisdiction on The possibility of criminal sanctions for
the part of any branch or instrumentality of the disobeying the mandate of the new law is
Government. likewise real. Asserting that the prohibition
violates their rights as property owners to
304
dispose of their properties, petitioners
challenged on constitutional grounds the
versy between litigants. An actual case or implementation of R.A. No. 9646 which the
controversy involves a conflict of legal rights, respondents defended as a valid legislation
an assertion of opposite legal claims pursuant to the
susceptible to judicial resolution.5 The
controversy must be justiciable — definite _______________
and concrete — touching on the legal 5 Garcia v. Executive Secretary, G.R. No. 157584, April
relations of parties having adverse legal 2, 2009, 583 SCRA 119, 129.
interests, which may be resolved by a court of
law through the application of a law.6 In
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considered in furtherance of such subject by R.A. No. 9646 is entitled “An Act
providing for the method and means of Regulating the Practice of Real Estate Service
carrying out the general object.12 in the Philippines, Creating for the Purpose a
It is also well-settled that the “one title-one Professional Regulatory Board of Real Estate
subject” rule does not require the Congress to Service, Appropriating Funds Therefor and
employ in the title of the enactment language For Other Purposes.” Aside from provisions
of such precision as to mirror, fully index or establishing a regulatory system for the
catalogue all the contents and the minute professionalization of the real estate service
details therein. The rule is sufficiently sector, the new law extended its coverage to
complied with if the title is comprehensive real estate developers with respect to their
enough as to include the general object which own properties. Henceforth, real estate
the statute seeks to effect.13 Indeed, this developers are prohibited from performing
Court has invariably adopted a liberal rather acts or transactions constituting real estate
than technical construction of the rule “so as service practice without first complying with
not to cripple or impede legislation.”14 registration and licensing requirements for
their business, brokers or agents, appraisers,
_______________ consultants and salespersons.
10 Id., at p. 198; p. 519. Petitioners point out that since
11 Cordero and Salazar v. Cabatuando and Sta. partnerships or corporations engaged in
Romana, 116 Phil. 736, 740; 6 SCRA 418, 422 (1962); see
marketing or selling any real estate
development project in the regular course of
also Sumulong v. COMELEC, 73 Phil. 288, 291 (1941).
business are now required to be headed by
12 Tio v. Videogram Regulatory Board, 235 Phil. 198,
full-time, registered and licensed real estate
204; 151 SCRA 208, 214 (1987).
brokers, this requirement constitutes
13 Cawaling, Jr. v. COMELEC, 420 Phil. 524, 534;
limitations on the property rights and
368 SCRA 453, 460 (2001), citing Tatad v. The Secretary
business prerogatives of real estate
of the Department of Energy, 346 Phil. 321, 405; 282
developers which are not all reflected in the
SCRA 337 (1997) and Hon. Lim v. Hon. Pacquing, 310
title of R.A. No. 9646. Neither are real estate
Phil. 722, 767; 240 SCRA 649, 679 (1995). developers, who are already regulated under
14 Id., citing Tobias v. Abalos, G.R. No. 114783, a different law, P.D. No. 957, included in the
December 8, 1994, 239 SCRA 106, 111 and Sumulong v. definition of real estate service practitioners.
COMELEC, supra note 11. We hold that R.A. No. 9646 does not
violate the one-title, one-subject rule.
307
The primary objective of R.A. No. 9646 is
expressed as follows:
repugnance clear and convincing in character. license to sell subdivision lots and
The language used in the later statute must condominium units
be such as to render it irreconcilable with
what had been formerly enacted. An _______________
inconsistency that falls short of that standard 15 Agujetas v. Court of Appeals, 329 Phil. 721, 745-
does not suffice.15 Moreover, the failure to add 746; 261 SCRA 17, 34-35 (1996).
a specific repealing clause indicates that the 16 Secretary of Finance v. Hon. Ilarde, 497 Phil. 544,
intent was not to repeal any existing law, 556; 458 SCRA 218, 233 (2005).
unless an irreconcilable inconsistency and 17 Issued on July 12, 1976.
repugnancy exist in the terms of the new and
old laws.16 310
There is nothing in R.A. No. 9646 that
repeals any provision of P.D. No. 957, as
in the registered units; (4) approval of
amended by E.O. No. 648. P.D. No. 957,
performance bond and the suspension of
otherwise known as “The Subdivision and
license to sell; (5) registration of dealers,
Condominium Buyers’ Protective Decree,”17
brokers and salesman engaged in the
vested the NHA with exclusive jurisdiction to
business of selling subdivision lots or
regulate the real estate trade and business in
condominium units; and (6) revocation of
accordance with its provisions. It empowered
registration of dealers, brokers and
the NHA to register, approve and monitor
salesmen.18
real estate development projects and issue
E.O. No. 90, issued on December 17, 1986,
licenses to sell to real estate owners and
renamed the HSRC as the Housing and Land
developers. It further granted the NHA the
Use Regulatory Board (HLURB) and was
authority to register and issue/revoke licenses
designated as the regulatory body for housing
of brokers, dealers and salesmen engaged in
and land development under the Housing and
the selling of subdivision lots and
Urban Development Coordinating Council
condominium units.
(HUDCC). To date, HLURB continues to
E.O. No. 648, issued on February 7, 1981,
carry out its mandate to register real estate
reorganized the Human Settlements
brokers and salesmen dealing in
Regulatory Commission (HSRC) and
condominium, memorial parks and
transferred the regulatory functions of the
subdivision projects pursuant to Section 11 of
NHA under P.D. 957 to the HSRC. Among
P.D. No. 957, which reads:
these regulatory functions were the (1)
regulation of the real estate trade and SECTION 11. Registration of Dealers, Brokers
business; (2) registration of subdivision lots and Salesmen.—No real estate dealer, broker or
and condominium projects; (3) issuance of salesman shall engage in the business of selling
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subdivision lots or condominium units unless he Salesmen kept in the Authority which shall be
has registered himself with the Authority in open to public inspection.
accordance with the provisions of this section.
If the Authority shall find that the applicant is On the other hand, Section 29 of R.A. No.
of good repute and has complied with the 9646 requires as a condition precedent for all
applicable rules of the Authority, including the persons who will engage in acts constituting
payment of the prescribed fee, he shall register real estate service, including advertising in
such applicant as a dealer, broker or salesman any manner one’s qualifications as a real
upon filing a bond, or other security in lieu thereof, estate service practitioner, compliance with
in such sum as may be fixed by the Authority licensure examination and other registration
conditioned upon his faithful compliance with the requirements including the filing of a bond for
provisions of this Decree: Provided, that the real estate brokers and private appraisers.
registration of a salesman shall cease upon the While Section 11 of P.D. No. 957 imposes
termination of his employment with a dealer or registration requirements for dealers, brokers
broker. and salespersons engaged in the selling of
Every registration under this section shall subdivision lots and condominium units,
expire on the thirty-first day of December of each Section 29 of R.A. No. 9646 regulates all real
year. Renewal of registration for the succeeding estate service practitioners whether private
year shall be granted upon written application or government. While P.D. No. 957 seeks to
therefore made not less than thirty nor more than supervise brokers and dealers who are
sixty days before the first day of the engaged in the sale of subdivision lots and
condominium units, R.A. No. 9646 aims to
_______________
regulate the real estate service sector in
18 E.O. No. 648, Sec. 8.
general by professionalizing their ranks and
raising the level of ethical standards for
311 licensed real estate professionals.
There is no conflict of jurisdiction because
ensuing year and upon payment of the prescribed the HLURB supervises only those real estate
fee, without the necessity of filing further service practitioners engaged in the sale of
statements or information, unless specifically subdivision lots and condominium projects,
required by the Authority. All applications filed specifically for violations of the provisions of
beyond said period shall be treated as original P.D. No. 957, and not the entire real estate
applications. service sector which is now under the
The names and addresses of all persons regulatory powers of the PRBRES. HLURB’s
registered as dealers, brokers, or salesmen shall be supervision of brokers and dealers to
recorded in a Register of Brokers, Dealers and effectively implement the provisions of P.D.
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No. 957 does not foreclose regulation of the less control in managing their business and
real estate service as a profession. Real estate will be burdened with additional expenses.
developers already regulated by the HLURB The contention has no basis. There is no
are now further required to deprivation of property as no restriction on
their use and enjoyment of property is caused
312
by the implementation of R.A. No. 9646. If
petitioners as property owners feel burdened
comply with the professional licensure by the new requirement of engaging the
requirements under R.A. No. 9646, as services of only licensed real estate
provided in Sections 28, 29 and 32. Plainly, professionals in the sale and marketing of
there is no inconsistency or contradiction in their properties, such is an unavoidable
the assailed provisions of R.A. No. 9646 and consequence of a reasonable regulatory
P.D. No. 957, as amended. measure.
The rule is that every statute must be
interpreted and brought into accord with _______________
other laws in a way that will form a uniform 19 Government Service Insurance System v. City
system of jurisprudence. The legislature is Assessor of Iloilo City, 526 Phil. 145, 152; 493 SCRA 169,
presumed to have known existing laws on the 177 (2006), citing Hon. Hagad v. Hon. Gozodadole, 321
subject and not to have enacted conflicting Phil. 604, 614; 251 SCRA 242, 252 (1995).
laws.19 Congress, therefore, could not be
presumed to have intended Sections 28, 29 313
and 32 of R.A. No. 9646 to run counter to P.D.
No. 957. Indeed, no right is absolute, and the proper
regulation of a profession, calling, business or
No Violation of Due Process trade has always been upheld as a legitimate
Petitioners contend that the assailed subject of a valid exercise of the police power
provisions of R.A. No. 9646 are unduly of the State particularly when their conduct
oppressive and infringe the constitutional affects the execution of legitimate
rule against deprivation of property without governmental functions, the preservation of
due process of law. They stress that real the State, public health and welfare and
estate developers are now burdened by law to public morals.20 In any case, where the liberty
employ licensed real estate brokers to sell, curtailed affects at most the rights of
market and dispose of their properties. property, the permissible scope of regulatory
Despite having invested a lot of money, time measures is certainly much wider. To pretend
and resources in their projects, petitioners that licensing or accreditation requirements
aver that real estate developers will still have
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validity which every law has in its favor.23 We sustain the trial court’s ruling that
(Emphasis supplied.) R.A. No. 9646 does not violate the equal
protection clause.
In Ichong v. Hernandez,24 the concept of
No Violation of Equal Protection Clause equal protection was explained as follows:
Section 28 of R.A. No. 9646 exempts from
its coverage natural and juridical persons The equal protection of the law clause is against
dealing with their own property, undue favor and individual or class privilege, as
well as hostile discrimination or the oppression of
_______________ inequality. It is not intended to prohibit
23 Carlos Superdrug Corp. v. Department of Social legislation, which is limited either in the object to
Welfare and Development, 553 Phil. 120, 132-133; 526
which it is directed or by territory within which it
is to operate. It does not demand absolute equality
SCRA 130, 143-144 (2007).
among residents; it merely requires that all
315 persons shall be treated alike, under like
circumstances and conditions both as to privileges
conferred and liabilities enforced. The equal
and other persons such as receivers, trustees protection clause is not infringed by legislation
or assignees in insolvency or bankruptcy which applies only to those persons falling within
proceedings. However, real estate developers such class, and reasonable grounds exists for
are specifically mentioned as an exception making a distinction between those who fall within
from those enumerated therein. Petitioners such class and those who do not. (2 Cooley,
argue that this provision violates the equal Constitutional Limitations, 824-825).25
protection clause because it unjustifiably
treats real estate developers differently from
those exempted persons who also own _______________
properties and desire to sell them. They insist 24 101 Phil. 1155 (1957).
germane to the purpose of the law, concerns importantly, those real estate service
all members of the class, and applies equally practitioners working for real estate
to present and future conditions, the
classification does not violate the equal _______________
protection guarantee.27 26 Mayor Villegas v. Hiu Chiong Tsai Pao Ho, 175
R.A. No. 9646 was intended to provide Phil. 443, 448; 86 SCRA 270, 275 (1978).
institutionalized government support for the 27 JMM Promotion and Management, Inc. v. Court of
development of “a corps of highly respected, Appeals, supra note 20, at p. 102; p. 332.
technically competent, and disciplined real
28 See Explanatory Note of Senate Bill No. 1644.
estate service practitioners, knowledgeable of
internationally accepted standards and 317
practice of the profession.”28 Real estate
developers at present constitute a sector that
hires or employs the largest number of developers. Unlike individuals or entities
brokers, salespersons, appraisers and having isolated transactions over their own
consultants due to the sheer number of property, real estate developers sell lots,
products (lots, houses and condominium houses and condominium units in the
units) they advertise and sell nationwide. As ordinary course of business, a business which
early as in the ‘70s, there has been a is highly regulated by the State to ensure the
proliferation of errant developers, operators health and safety of home and lot buyers.
or sellers who have reneged on their The foregoing shows that substantial
representation and obligations to comply with distinctions do exist between ordinary
government regulations such as the provision property owners exempted under Section
and maintenance of subdivision roads, 28(a) and real estate developers like
drainage, sewerage, water system and other petitioners, and the classification enshrined
basic requirements. To protect the interest of in R.A. No. 9646 is reasonable and relevant to
home and lot buyers from fraudulent acts and its legitimate purpose. The Court thus rules
manipulations perpetrated by these that R.A. No. 9646 is valid and constitutional.
unscrupulous subdivision and condominium Since every law is presumed valid, the
sellers and operators, P.D. No. 957 was issued presumption of constitutionality can be
to strictly regulate housing and real estate overcome only by the clearest showing that
development projects. Hence, in approving there was indeed an infraction of the
R.A. No. 9646, the legislature rightfully Constitution, and only when such a
recognized the necessity of imposing the new conclusion is reached by the required majority
licensure requirements to all real estate may the Court pronounce, in the discharge of
service practitioners, including and more
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