AS WE have discussed in our column last week on the Implementing Rules and Regulations (IRR) of the Real Estate Service Act (Resa), the IRR had been published last July 24, 2010 in the Philippine Daily Inquirer (PDI), which will take effect fifteen (15) days thereafter. This means that the Resa IRR will take effect on August 8, 2010.

Updates on President Benigno Aquino III's presidency

The law imposes a stiff penalty for violations in real estate practice which is found in Section 39, Rule V of the IRR: "Violations shall be meted a penalty of a fine of not less than PIOO.OOO.OO or imprisonment of not less than two (2) years, or both fine and imprisonment upon the discretion of the court." The Resa likewise, imposes a higher penalty for illegal, illegitimate or "colorum" real estate practice which shall be meted a penalty of a fine not less than P200.000.00 or imprisonment of not less than four (4) years, or both fine and imprisonment upon the discretion of the court

Resa and the rules and regulations governing real estate practice explicitly defines the acts which constitutes the practice of real estate service as: "Any single act or transaction embraced within the provision of Section 3(g) Rule II, IRR as performed by real estate service practitioners, shall constitute an act of engaging in the practice of real estate service." (Section 27, Rule V, IRR)

The law enumerates the acts which constitutes real estate practice as those which are done by 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 valuable consideration, performs or renders, or offers to perform services in estimating and arriving at a 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 party 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.

The only exception to the enumerated acts which constitutes the practice of real estate service includes:

1. Any person, natural or juridical, who shall directly perform by himself/herself the acts mentioned in Section 3 hereof with reference to his/her or its own property, except real estate developers who are regulated by and registered with the Housing and Land Use Regulatory Board (HLURB) pursuant to law and other resolutions/regulations such as but not limited to Presidential Decree (PD) 957, as amended and Batas Pambansa Big. 220 and their implementing Rules and Regulations;

2. Any receiver, trustee or assignee in bankruptcy or insolvency proceedings;

3. Any person acting pursuant to the order of any court of justice;

4. Any person who is a duty constituted attorney-in-fact for purposes of sale, mortgage, lease or exchange, or other similar contracts of real estate, without requiring any form of compensation or remuneration; and

5. Public Officers in the performance of their official duties and functions, except government assessors and appraisers.

Herein are the updated provisions on the Continuing Education Program (CEP) or Continuing Professional Education (CPE) for real estate service practitioners under the IRR:

1. Any holder of a valid DTI license has to earn fifteen (15) credit units.

2. Those who failed to renew their DTI license prior to 30 July 2009 are required to earn twenty-four (24) credit units.

3. Those who had passed the 2009 8s 2008 licensure examinations given by DTI but failed to obtain their license on 30 July 2009 are required to earn fifteen (15) credit units.

4. Those who passed the 2007 licensure examination given by DTI but failed to obtain their license on 30 July 2009 are required to earn eighteen (18) credit units.

5. Those who passed the DTI licensure examination in 2006 and prior years but failed to obtain their license on 30 July 2009 are required to earn one hundred twenty (120) credit units.

The compliance with the CEP or CPE credit units is one of the requirements for a real estate service practitioner to obtain or renew his/her license and his/her registration with the Professional Regulatory Board of Real Estate Service (PRB-RES) and Professional Regulation Commission (PRC).

In this regard, we enjoin real estate practitioners to get in touch with us at Unit 303 3/F Otek Square, Otek St, Baguio City for the schedules of the Seminar on the Updated Real Estate Laws. Please call/text us at 427-1971 or 426-7582 / CP Nos. 09197229888/ 09285300285/ 09109302753.

-oOo-

(The writer is a Certified Public Accountant and the president of the Baguio Realtors Board 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 of 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. 427-1971 or 426-7582, Mobile Phone No. 0910-930-2753 or email bert.capili03@yahoo.com or bertcapili65@hotmaiLcom)