Capili: Corporate practice of the real estate service

Monday, May 30, 2011

1. PARTNERSHIPS or corporations must register with the Securities and Exchange Commission (SEC) before engaging in real estate service practice. All persons authorized to act for the partnership or corporation must be duly registered and licensed real estate brokers, appraisers or consultants.

2. The SEC registered partnership or corporation shall regularly submit its lists of its practitioners to the Professional Regulation Commission (PRC) and SEC as part of its annual reportorial requirements. There shall be one (1) licensed real estate broker for every twenty (20) accredited real estate salespersons.

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3. Divisions or departments of partnerships and corporations engaged in marketing or selling any real estate development projects must be headed by full-time registered and licensed real estate brokers.

4. Branch offices of real estate service entities must be manned by duly licensed real estate brokers, appraisers or consultants as the case maybe.

In case of resignation or termination from employment of a real estate service practitioner, the same shall be reported by the employer to the Professional Regulatory Board of Real Estate Service (PRB-RES) within fifteen (15) days from the date of the effectivity of the resignation or termination.

Subject to the provisions of the Labor Code, a corporation or partnership may hire the services of registered real estate service practitioners on commission basis and the latter shall be deemed independent contractors and not employees of such entity.

Display of license in the place of business

Every registered and licensed real estate service practitioners shall establish and maintain a principal place of business and such other branch offices as may be necessary, and shall conspicuously display their license in such office.

Code of ethics and responsibilities

PRB-RES shall adopt and promulgate the Code of Ethics and Responsibilities for real estate service practitioners, which shall be prescribed and issued by the accredited and integrated professional organization (Aipo) of real estate service practitioners.

Continuing Professional Education (CPE) program

PRB-RES shall develop, prescribe and promulgate guidelines on CPE upon consultation with the AIPO and other real estate service organizations subject to the approval by PRC. It shall create a CPE Council to be composed of a chairperson coming from the Regulatory Board, a member from the AIPO and a member from the academe.

Penal provisions

Any violation of RESA, its IRR and the Code of Ethics and Responsibilities shall be meted a fine and/or imprisonment as follows:

1. For licensed real estate service practitioners – a fine of not less than P100,000.00 or imprisonment of not less than two (2) years, or both at the discretion of the court.

2. For unlicensed (colorum) persons – fine of not less than P200,000.00 or imprisonment of not less than four (4) years, or both at the discretion of the court.

In case violation is committed by a partnership, corporation or any other juridical person, the partner, president, director, officer or manager who committed or consented to such violation shall be held liable and responsible for the acts of the principal or as a co-principal with other participants, if any.

We would like to personally thank the assistance of the Professional Regulatory Board of Real Estate Service (PRB-RES) specifically Chairman Eduardo G. Ong and Commissioner Rafael M. Fajardo for their continued support in our various undertaking and in the formulation of this Primer.

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(The writer is a Certified Public Accountant and the president of the Baguio Realtors Board, Inc. Apart from being a recognized 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, Financial Advisor/Loan Broker and Columnist. For comments and more information of Real Estate Updates and Studies, you may get in touch with him at No. 04 Old Forestry Compound, Baguio City 2600. Tel. No. 427-1971/Cell No. 09109302753/ 09163188274 or email: bert_capili@yahoo.com/ bertcapili65@hotmail.com.)