Practice of real estate service-A A +A
Real Estate Updates
Sunday, September 9, 2012
THE initial step for a real estate service practitioner to go through before starting the professional practice in real estate is to take an oath. All successful examinees qualified for registration and accredited salespersons shall be required to take an oath before any member of PRB-RES or any office of PRC to administer oaths prior to entering into the practice of real estate service in the Philippines.
In the case of real estate brokers and private real estate appraisers, in addition to the oath, they are required to post an indemnity insurance, cash or surety bond in an amount of not less than P20,000, without prejudice to the additional requirement of the client. This posted insurance or bond shall be renewable every three years.
Any single act or transaction as performed by real estate service practitioners – salespersons, brokers, appraisers, government assessors and appraisers and consultants – shall constitute an act of engaging in the practice of real estate service. Any person engage in the real estate practice are required by law, shall first secure a license before engaging in the said practice. However, it shall not apply to the following:
1. Any person, natural or juridical, with reference to his/her or its own property, except real estate developers registered with HLURB;
2. Receiver, trustee or assignee in bankruptcy or insolvency proceeding;
3. Any person acting through court order;
4. Any person constituted as attorney-in-fact for any real estate transaction/s, without compensation or remuneration; and
5. Public officers in the performance of their duties and functions, except assessors and appraisers in government service.
For real estate salespersons, no examination shall be given, but they shall be accredited by the PRB-RES provided that they have completed at least two (2) years of college and have undergone training and seminars of at least twelve (12) credit units in real estate brokerage. Real estate salespersons shall be under the direct supervision and accountability of a real estate broker.
Real estate salespersons cannot be signatories to a written agreement unless the real estate broker who had direct supervision and accountability over them is also a signatory thereto. They shall not be entitled to receive or demand a fee, commission or compensation of any kind from any person, other than the duly licensed real estate broker who has direct control and supervision over him, for any service or work done by such salesperson in any real estate transaction.
Corporate practice of real estate service
The following rules shall govern the corporate practice of real estate service:
1. Partnerships or corporations must register with 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 a list of its practitioners to PRC and SEC as part of its annual reportorial requirements. There shall be one (1) licensed real estate broker for every twenty (20) accredited salespersons.
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 practice entities must be manned by duly licensed real estate brokers, appraisers or consultants as the case may be.
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 – fine of not less than P100,000 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 or imprisonment of not less than four (4) years or both at the discretion of the court.
3. In case it was committed by a partnership, corporation or any other juridical persons, the partner, president, director, officer or manager who committed or consented to such violation shall be held liable and responsible for the acts as principal or as a co-principal with other participants, if any.
The Real Estate Service Act (Resa) had been in existence since its effectivity and implementation last July 30, 2009. This year marks the third year of RESA, yet many are not aware of the law. I call upon my colleagues in the profession, government offices concerned with the law and its enforcement and the general public to close ranks in assuring the effective observance and implementation of the law for the benefit of all.
(The writer is a Certified Public Accountant and 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 (074) 427-1971/ Cell Nos. 09109302753/09163188274 or email: firstname.lastname@example.org/ email@example.com).
Published in the Sun.Star Baguio newspaper on September 10, 2012.