NATIONAL CODE OF ETHICS

The Code of Ethics governs the conduct of those in realty service practice. Most of the principles
contained herein are also discussed in the DTI-BTRCP Rules and Regulations under M.O. Order No. 39,
Series of 1985.
Violations by the broker of any provisions of the Code, give rise to sanctions that may be imposed by
the broker’s organization, without prejudice to disciplinary action that the concerned DTI-BTRCP may
impose when a complaint is filed against him.
INTRODUCTION
The Realty Service Practice, a profession, calling, or occupation, is dedicated to the promotion,
development, and conservation of land and natural resources, including improvements and rights and
interest appurtenant thereto for the benefit 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 ETHICS FOR THE REALTY
SERVICE PRACTICE to govern the rule of conduct of those who will engage therein.
ARTICLE 1 – 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 real 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 among the
practitioners shall be promoted; and every organization to which they shall be encouraged to join shall
aims and purposes as will set up, upgrade, and maintain a high level of integrity, honesty and
competence in the profession for the best interests of the community and the nation.
SECTION 5. A high level of professional relationship with colleagues in the Realty Service Practice shall
be maintained, and their dealings with each other shall always be fair, honest and just.
SECTION 6. The Golden Rule which reads “Treat others as you like them to treat you.” shall be observed
in all the dealings and relations 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 Bureau of Domestic
Trade in accordance with SECTION 3 (e) & (ee) of Act. No. 2728 as amended by Act No. 3715 & 3969
and Ministry Order No. 39, such other practitioners as the Director of Domestic Trade 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 – RULE 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 Bureau of
Domestic Trade and other government agencies as may be required by law, ordinance, or rules and
regulations and comply with all the requirements thereof engaging in the same.
(b) He should pay any and all taxes, fees, dues, levies, or changes that the government may impose in
accordance to law, ordinances, or rules and regulations.
(c) He should help, assist and cooperate with the Bureau of Domestic Trade and all government
agencies and instrumentality in the promotion, development, and conservation of lands and other
natural resources, its improvements, and rights and interest therein.
(d) He should not encourage, 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 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 indicate the license number of the certificate issued by the Bureau of Domestic Trade in
his letterhead, dry seal, signboard, billboard, advertisement of 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 part of society with social responsibilities.
(b) He should ensure the highest and 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 to any movement affecting real estate in his community, city,
or province, so that he may be able to contribute to public thinking on matters of taxation, land use,
city planning, 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.
(e) He should ascertain all pertinent facts concerning every property and avoid error, exaggeration,
misrepresentation, or concealment of pertinent facts.
(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 or instrument.
(h) He should keep a special bank account separate and distinct from his own funds, all monies received
in trust for other persons, such as deposits in escrow, trust funds, client’s 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 of issued by the Department of Trade and Industry. In the case of a 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 real estate transactions 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 on behalf of a client or
customer should pledge himself with the 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 has 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.
(c) He should not accept any commission, fee, or any valuable consideration from any party in any
transaction except from his client unless with the full knowledge and consent of all the parties in the
transactions. He shall not also introduce or work for an overprice either from the buyer or seller, except
the usual standard rate of commission on any real estate transaction.
(d) He should charge or collect only such fees or commissions as are fair and reasonable in accordance
with local practice in similar transactions.
(e) He should not acquire an interest in or buy for himself or members of his family within the fourth
civil degree, his firm or any member thereof, or a corporation or partnership in which he or his relatives
within the fourth civil degree have at least 20% property interest, without making his true position
known to the owner, buyer or seller.
(f) He should not advertise any property without authority and in any offering, the price quoted should
be in accordance with the price agreed with the owners as the offering price.
g) 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.
(h) He should endeavor to make his client and customer conclude a fair contract advantageous to both.
(i) He should assist his customer acquire possession and ownership of the property bought in
accordance with the terms and conditions agreed upon.
(i) In case he is called upon to act as a witness in a court proceeding he should give his testimonies in
the most unbiased, honest, truthful, and professional manner.
(j) As a real estate appraiser, he should not render an opinion without a careful and thorough analysis
and interpretation of all factors affecting the value of the property. His counsel and advice constitute 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.
SECTION 4 RELATIONS TO FELLOW PRACTITIONERS
(a) He should not solicit a listing that 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 buyer’s prospect unless such
use is authorized by the listing broker.
(e) He should cooperate with other brokers on the property listed and share the commission on an
agreed basis. Negotiations concerning property listed exclusively with one broker should be carried
with the 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 opinion of a competitor’s transaction.
If his opinion is sought, it should be rendered with professional integrity and courtesy.
(h) The practitioner should seek no unfair advantage over his fellow practitioners and should willingly
share 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, such
controversy should be submitted for arbitration to such organization or association whose decision, if
accepted by both parties, will be final and binding as far as the association is concerned.
(j) If the controversy is between practitioners belonging to different organizations or associations, it
should be submitted to an Arbitration Board consisting of one member from each organization or
association chosen by each of the parties to the controversy. A third member shall be chosen by
members previously chosen from either organization or association or from the national association
where the parties to the controversy are affiliated.
(k) In case the practitioners who are parties to a controversy are not members of any duly recognized
organization or the Arbitration Board can not settle the controversy, the Bureau of Domestic Trade shall
assume jurisdiction over said controversy.
(l) 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) Elections 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 campaigning or use of letters or circulars announcing one’s candidacy or appealing
for votes for himself or for other nominees or candidates or other form of electioneering 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.
(c) He should support his organization morally and financially and actively support its plans, programs,
and projects for the benefit 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
Violation of any provisions 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 disciplinary
action that the Department of Trade and Industry may deem expedient thereon hen the proper
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
organizations, any complaint against them shall be governed by existing laws, rules, and regulations
governing controversies.
ARTICLE V – EFFECTIVITY [Original, 1986]
This Code shall take effect fifteen (15) days after its publication in a newspaper of general circulation.
Done in Makati, Metro Manila, this 19th day of September 1986.
ARTICLE V – EFFECTIVITY [As Amended, 1993]
This Code shall take effect immediately after its publication in a newspaper of general circulation. Done
in Makati, Metro Manila, this 29th day of September 1993.

REFERENCE:
http://petalcorin.blogspot.com/2009/10/reibscom-code-of-ethics-in-philippine.html
http://petalcorin.blogspot.com/2010/07/code-of-ethics-in-philippine-real.html