agents and brokers affected by the new RESA law

More than 100,000 real estate agents and brokers affected by the new RESA law


AFTER nearly 22 years, real estate service practitioners in the Philippines will be professionalized and will have to get licenses from the Professional Regulatory Commission, as the Real Estate Service Act took effect Thursday.

The Real Estate Service Act of the Philippines, which aims to “safeguard and protect legitimate licensed real estate service practitioners,” will lead to the creation of a Bachelor of Science in Real Estate Service, which should be recognized by the Commission on Higher Education and the Professional Regulatory Board on Real Estate Service.

“to finally and completely eradicate the pernicious practices of unauthorized or unlicensed individuals,” the new law, Republic Act 9646, said.

The provision serves as an additional security for the public when transacting with brokers or appraisers. Under the new law, real estate consultants, appraisers, local government assessors and brokers will be overseen by the Professional Regulatory Board of Real Estate Service under the PRC.

Under the bill, which will affected more or less than 100, 000 agents and brokers, the Professional Regulation Commission will take over from the Department of Trade and Industry in administering examinations for real estate service practitioners in the private sector.

Unlicensed practitioners for real estate will be meted with a penalty ranging P200,000 to P2,000,000, as well as 1year to 12 years imprisonment.

CHED executive director Atty. Julito Vitriolo said there are several schools offering such courses on real estate, as he expects them to grow further. “I think with the passage of this bill, more schools will seek accreditation for courses on real estate,” he said. They will be subjected to a licensing process that will require them to pass a technical examination, comply with the program of continuing education and training, and observe the Code of Conduct and Responsibilities.

Salespersons, although not considered part of the professional group, will be accredited by the PRC, after undergoing training and working under a licensed real estate broker. RESA will require real estate practitioners to post a Professional Indemnity Insurance/Cash or Surety Bond upon taking their oath to practice the profession before the PRC.

The new law is expected to stimulate the property market, encourage investments in construction and development, generate employment and increase revenues for the government.

The bill also includes a provision requiring a professional indemnity insurance/cash or surety bond for real estate brokers and private appraisers. The bill sets the minimum limit at only P20,000 but the client is free to impose additional requirements depending on the transaction involved. The provision serves as an additional security for the public when transacting with brokers or appraisers.

It was sponsored in the House by Iloilo City Representative Rep. Raul T. Gonzalez Jr., chair of the Committee on Civil Service and Professional Regulation, and in the Senate by Sen. Panfilo M. Lacson, acting chair of the Committee on Civil Service and Government Reorganization.

The law, according to Senate President Juan Ponce Enrile, should protect the public from unscrupulous real estate service practitioners.

Manny Florendo of Philproperties lauded the passage of the law, adding that real estate service practitioners are helping ensure the vibrant movement of capital to support economic activities that would generate more resources for development projects.

“It is just right that the real estate practice should be regulated through appropriate licensing and the observance of a code of ethics with a defined disciplinary procedure for the protection of the public,” Florendo said.

Real estate service practitioners include real estate consultants, appraisers, assessors, brokers and salespersons. But the bill will require only real estate consultants, appraisers, assessors and brokers to have licenses and other requirements.

To help these agents and brokers, Florendo said their company- Philproperties Corporation are open to assist affected agents in getting their licenses under the new implementing guidelines.

Philproperties is also extending their arms to the newly licensed brokers to help them in starting their career ...

“Just contact us at phone number 667.3757 and 914-4927, or cellphone number 0917.830.7742, or visit our website at http://www.philproperties.ph/", Florendo said.

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