Capili: The new real estate law revisited (I)

WHAT happened with Resa (Real Estate Service Act - Republic Act No. 9646) eight (8) months after its effectivity on July 30, 2009? As of today, the Professional Regulatory Board of Real Estate Service (PRBRES) which was tasked to handle the affairs of the real estate service practice is still to be organized, its members to be designated and the implementing rules and regulations (IRR) of Resa still to be formulated.

Allow me to appraise you of Resa's objectives, intentions, purposes and important provisions. The approval by PGMA of the new real estate law last June 29, 2009 signaled the start of the professionalization of the real estate service practice. The supervision and administrative control is now under the Professional Regulation Commission (PRC).

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Previously, the real estate service practice was considered more as a trade, rather than a profession, since the supervision and administration was given to the Department of Trade and Industry (DTI) more specifically to its Bureau of Trade Regulation and Consumer Protection (BTRCP).

The main objective of Resa is elaborated in Section 2, Article I on the Declaration of Policy to quote: "The State recognizes the vital role of real estate service practitioners in the social, political, economic development and progress of the country by promoting the real estate market, stimulating economic activity and enhancing government income from real property-based transactions. Hence, it shall develop and nurture through proper and effective regulation and supervision a corps of technically competent, responsible and respected professional real estate service practitioners whose standards of practice and service shall be globally competitive and will promote the growth of the real estate industry.

It is clear from the above definition that the law's intention is to produce globally competitive and professionally competent real estate service practitioners.

The law further defines the scope of "real estate" which refers to the land and all those items which are attached to the land, such as buildings, houses, factories and the like. It is the physical, tangible entity together with all the additions or improvements on, above or below the ground. On the other hand, "real property" is referred to as the rights, interests and benefits related to the ownership of real estate.

Resa categorizes "real estate service practitioners" as follows:

1. Real estate consultant - a duly registered and licensed natural person who, for a professional fee, compensation or other valuable consideration, offers or renders professional advice and judgment on: (i) the acquisition, enhancement, preservation, utilization or disposition of lands or improvements thereon; and (ii) the conception, planning, management and development of real estate projects.

2. Real estate appraiser - a duly registered and licensed natural person who, for a professional fee, compensation or other valuable consideration, performs or renders, or offers to perform services in estimating and arriving at 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.

3. Real estate assessor - a duly registered and licensed natural person who works in a local government unit and performs appraisal and assessment of real properties, including plants, equipment and machineries, essentially for taxation purposes.

4. Real estate broker - a duly registered and licensed natural person who, for a professional fee, commission or other valuable consideration, acts as an agent of a parry in a real estate transaction to offer, advertise, solicit, list, promote, mediate, negotiate or effect the meeting of the minds on the sale, purchase, exchange, mortgage, lease or joint venture, or other similar transactions on real estate or any interest therein.

5. Real estate salesperson - a duly accredited natural person who performs service for and in behalf of, a real estate broker, who is registered and licensed by the Professional Regulatory Board of Real Estate Service for or in expectation of a share in the commission, professional fee, compensation or other valuable consideration.

(to be continued - next week the discussions on the Professional Regulatory Board of Real Estate Service)

-oOo-

(The write is a Certified Public Accountant and the president of the Baguio Realtors Board, Inc. Apart from being a Real Estate Practitioner as a Real Estate Broker and Educator, Lecturer and Resource Person; he is likewise a Business Management/NGO/Cooperative Consultant, Project Development Consultant and Financial Advisor/Loan Broker. For comments and more information on Real Estate Updates and Studies, you may get in touch with him at Unit 303, 3/F, Otek Square, Otek Street, Baguio City, Tel. Nos. 304-3371 or 442-1176, cellular 0909-404-8863 or email: bert_capili@yahoo.com or bertcapili65@hotmail.com)