Real estate advertising regulations (II)-A A +A
Real Estate Updates
Sunday, January 27, 2013
THE new real estate law by virtue of the Real Estate Service Act (RESA) – R. A. No. 9646 requires a stricter and more profound observance of the provisions of RESA which applies especially to individual real estate practitioners and real estate companies as advertisers. Licenses in the form of a Certificate of Registration (COR) and a Professional Identification (ID) Card are issued to real estate practitioners as proof of their privilege to practice the profession.
The rules and regulations on real estate advertising pertaining to the display of license in the place of business and the grounds for revocation or suspension of the COR and Professional ID Card was discussed earlier. Continuing our discussion on such real estate advertising rules and regulations, the following are the other provisions:
4. Other grounds for suspension and revocation of the real estate practitioner’s license relating to real estate advertising include:
a. Failure to include the license number in his/her letterhead, dry seal, signboard, advertisement or other public announcements.
b. Making false or deceitful promise in advertisements, brochures, billboards or other similar announcements.
5. If the licensee is also a real estate dealer, he shall include said business designation with the same size and type of letters to his designation as real estate salesperson, broker, appraiser or consultant in the signboards, billboards, brochures, advertisements, public announcements, letterheads and similar means of communication.
6. In his advertisements, brochures and announcements, he should present a true picture of the property, its improvements or rights and interests thereto including whatever liens or encumbrances it may have.
7. Signs giving notice of a property for sale, rent, lease or exchange should not be placed on any property by more than one real estate broker and only if authorized by the owner or seller.
8. Advertisements made by owners or developers through any media must reflect the real facts and must be presented in such manner that will not tend to mislead or deceive the public.
9. The owner or developer of real estate projects shall be answerable and liable for the facilities, improvements, infrastructures or other forms of development represented or promised in their advertisements.
10. Sales propaganda disseminated by the owner/developer or his/her authorized/ accredited real estate brokers/salespersons shall form part of the sales warranties enforceable against the owner or developer jointly or severally. Failure to comply with these warranties shall be punishable in accordance with the penalties of applicable laws and regulations, particularly Sec. 39 Article V of RESA which states:
“Penal Provisions – Any violations of this Act, including violations of implementing rules and regulations, shall be meted the penalty of a fine of not less than One hundred thousand pesos (P100,000.00) or imprisonment of not less than two (2) years, or both such fine and imprisonment upon the discretion of the court. In case the violation is committed by an unlicensed real estate service practitioner, the penalty shall be double the aforesaid fine and imprisonment.
“In case the violation is committed, by a partnership, corporation, association or any other juridical person, the partner, president, director or manager who has committed or consented to or knowingly tolerated such violation shall be held directly liable and responsible for the acts as principal or as co-principal with the other participants, if any.”
The other sources of real estate advertising rules and regulations include the Code of Ethics and Responsibilities for Real Estate Service Practitioners [Sec. 35 Article IV – RESA, which states: The Board 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.] which is now in the process of being formulated and finalized. We will update you on this once the Professional Code for Real Estate Practice is in effect.
(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: email@example.com/ firstname.lastname@example.org).
Published in the Sun.Star Baguio newspaper on January 28, 2013.