THIRTEENTH CONGRESS OF THE REPUBLIC ) 
5 JUN 29 P I  1'18 
OF THE PHILIPPINES 
) 
Second Regular Session 
1 
Introduced by Senator Rodolfo G. Biazon 
EXPLANATORY NOTE 
Real estate service practice is a multi-disciplinary profession that covers a 
broad range of subjects and property types in a variety of geographical and 
economic conditions. The results of such highly technical work provide the basis 
for decisions with regard to property sales, expropriation compensation, 
mortgage financing and assessment of taxes. In view of this, the public and the 
business community must have confidence that real estate service, particularly 
appraisal, is being conducted competently and professionally by the practitioners. 
The Land Valuation Study 200212003 undertaken under the Philippines- 
Australia Land Administration and Management Project (PA-LAMP) reviewed the 
existing issuance relating to the licensing of appraisers and assessors, Le., 
Ministry Order No. 39, series of 1985, issued by the Department of Trade and 
Industry (DTI). Presently, the national government agency responsible for the 
licensing and supervision of real estate service practitioners (RESPs), which 
include the appraisers, is the Bureau of Trade Regulation and Consumer 
Protection (BTRCP) of the DTI. Licensing and supervision of the RESPs were 
made a function of the DTI because real estate service was considered as a 
trade rather than as profession. The existing arrangement, however, has been 
noted to be ineffective as the rules set forth under MO No. 39 are not strictly 
enforced. There have been no government disciplinary or penal actions against 
RESPs for incompetence, negligence, unethical behavior, and malpractice. 
Also, there seems to be no sufficient incentives under the present set-up 
for RESPs to be licensed. After almost two decades since the issuance of the 
Order, licensed appraisers alone in the Philippines numbered 335, which is 
relatively low by international standards. Comparatively, Malaysia has 638 
licensed valuers/appraisers; New Zealand, 927; Australia, 6,000; and the United 
States of America, 88,000. Moreover, private sector appraisal organizations do 
not have wide representation with the combined membership totaling only 100 
licensed appraisers, most of which are based in Metro Manila. The organizations 
of local government assessors have relatively higher membership but most 
assessors are not licensed. 
To strengthen the accountability of the RESPs and protect the public 
interest, there is a need to regulate and professionalize the real estate service 
practice by legislation and transfer the licensing and regulating functions from the 
BTRCP to the Professional Regulatory Board of Real Estate Service (PRBRES) 
under the supervision and administrative control of the Professional Regulation 
Commission (PRC). The licensing and regulation arrangement under the PRC 
will recognize real estate service practice as a profession rather than as a trade, 
and will give the licensed practitioners a higher professional standing. 


To carry out the aforementioned objectives, the PRBRES, to be composed 
of a chairperson and four members appointed by the President of the Philippines, 
shall be mandated, among others, to: 
e 
Promulgate, administer and enforce policy guidelines rules and 
regulations for the promotion and development of the real estate 
industry; and 
Supervise and regulate the licensure, registration and practice of 
the real estate service. 
Among the policy guidelines to be promulgated, administered, and 
enforced by the PRBRES shall be the uniform valuation standards which include, 
among others, the code of ethics and professional conduct for the practice of the 
profession. Needless to say, the development and adoption of uniform valuation 
standards will improve significantly the general appraisal in the country; promote 
and maintain a high level of public trust in appraisal practice; and help improve 
and standardize operation of assessment offices. 
Licensure and registration as prerequisites to the practice of the 
profession serve as barriers to the entry of the unqualified and, therefore, protect 
the public against incompetent practice. 
The high quality of the professional 
practice, however, can be ensured and sustained through a strong valuation 
education base which will provide the necessary training and skills development 
for practitioners at all stages. 
The present lack of provisions for formal 
education and training in property valuation for appraisers/assessors in the 
country is expected to be addressed with the proposed PRBRES' function to 
prescribe or provide, in cooperation with the Commission on Higher Education 
(CHED), the essential requirements for the introduction of the basic as well as 
the continuing professional education program on property valuation. 
An effective regulatory structure coupled with a strong appraisal education 
program will not only equip the professional appraisers/assessors as well as the 
other real estate service practitioners with the latest knowledge and skills in their 
crafts but will also prime them to meet the challenges brought about by the 
continuing changes in the new global order. 
Results of the consultation workshops on the proposals embodied in this 
bill indicate the strong support of the various stakeholders (private practitioners, 
government appraiserslassessors, local chief executives, among others). It is 
also worthy to note that similar proposals were deliberated upon and passed by 
the House of Representatives of the 12'h Congress in its Second Regular 
Session. 
In view of the foregoing, the approval of this Bill is strongly recommended, 
N 


THIRTEENTH CONGRESS OF THE REPUBLIC ) 
) 
5 JUN 29 I-'1 :!B 
OF THE PHILIPPINES 
Second Regular Session 
) 
Introduced by Senator Rodolfo G. Biazon 
AN ACT REGULATING THE PRACTICE OF REAL ESTATE SERVICE IN 
THE PHILIPPINES CREATING FOR THE PURPOSE A PROFESSIONAL 
REGULATORY BOARD OF REAL ESTATE SERVICE, APPROPRIATING 
FUNDS THEREFOR AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines 
in Congress assembled: 
ARTICLE I 
SECTION I. Title - This Act shall be known as the "Real Estate Service 
Act of the Philippines." 
SEC. 2. 
Declaration of Policy. - The State recognizes the vital role of 
real estate service practitioners in the social, political, economic development 
and progress of the country. Hence, it shall develop and nurture through proper 
and effective regulation and supervision competent and well-rounded 
professional real estate service practitioners whose standards of practice and 
service shall be globally competitive. 
SEC. 3. 
Definition of Terms. - As used in this Act, the following terms 
shall mean: 
(a) "Real estate" refers to the land and all those items which are attached 
to the land. It is the physical, tangible entity which can be seen and touched, 
together with all the addition on, above, or below the ground. 
(b) "Real estate development project" means the development of land for 
residential, commercial, industrial, agricultural, institutional or recreational 
purposes, or any combination of such, including but not limited to tourist resorts, 
reclamation projects, building or housing projects whether for individual or 
condominium ownership, memorial parks, and others of similar nature. 
(c) "Real estate service practitioners" shall refer to and consists of the 
following: 
(1) Real estate broker - a duly licensed natural person who, for a 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. 
(2) Real estate appraiser - a duly licensed natural person who, for a fee, 
compensation or other valuable consideration, performs or renders, or offers to 
perform or render services in estimating and arriving at an opinion of or act as an 
expert on real estate values, such services of which shall be finally be rendered 
by the preparation of the report in acceptable written form. 
(3) Real estate consultant - a duly licensed natural person who, for a 
fee, compensation or other valuable consideration, offers or renders professional 
advise and judgment on: 
(a) 
the acquisition, enhancement, preservation, 
utilization or disposition of lands or improvement thereon; and (b) 
the 
conception, planning, management, and development of realty projects. 
(4) Real estate salesperson - a natural person who performs for and in 
behalf of a real estate broker who is registeredllicensed by the Professional 
Regulatory Board of Real Estate Service. 
ARTICLE I I  
PROFESSIONAL REGULATORY BOARD OF REAL ESTATE SERVICE 
SEC. 4. Creation and Composition of the Board. - There is hereby 
created a Professional Regulatory Board of Real Estate Service, hereinafter 
referred to as the Board, under the supervision and administrative control of the 
Professional Regulation Commission, hereinafter referred to as the Commission. 
The Board shall be composed of a chairperson and four (4) members who shall 
be appointed by the President of the Philippines from a list of three (3) 
recommendees for each position, chosen and ranked by the Commission from a 
list of five nominees for each position submitted by the accredited and integrated 
professional organization(s) of real estate service practitioners: Provided, that, 
two (2) of the members shall represent the government assessors and 
appraisers. 
The first Board shall be organized within thirty (30) days from the 
effectivity of this Act. 
SEC. 5. 
Powers and Functions of the Board - 
The Board is hereby 
Provide comprehensive policy guidelines for the promotion and 
development of the real estate industry, which shall include, among others, the 
uniform valuation standards, code of ethics and professional conduct for the 
vested the following powers and functions. 
(a) 


practice of real estate service, and ensure compliance therewith by all concerned 
parties in both the government and private sectors; 
(b) Promulgate, administer and enforce rules and regulations necessary 
for carrying out the provisions of this Act; 
(c) Supervise and regulate the registration, licensure and practice of real 
estate service in the Philippines; 
(d) Administer oaths and affirmations; 
(e) Adopt an official seal of the Board; 
(0 Issue, reinstate, suspend or revoke after due notice and hearing 
certificate of registrationlprofessional license or professional identification card 
for the practice of the real estate service. 
(9) Monitor the conditions affecting the practice of real estate service and 
adopt such measures as may be proper for the enhancement of the profession 
andlor the maintenance of high professional, ethical and technical standards; 
(h) Hear or investigate any violation of this Act, its implementing rules and 
regulations, and the code of ethics for real estate service practitioners as shall 
come to the knowledge of the Board and for this purpose, issue subpoena and 
subpoena duces fecum to secure the appearance of witnesses and the 
production of documents in connection therewith. 
(i) 
In coordination with the accredited and integrated professional 
organization of real estate practitioners, monitor all form of advertisements, 
announcements, signboards, billboards, pamphlets, brochures and others of 
similar nature concerning real estate and provide every possible safeguard to 
protect legitimate and licensed real estate service practitioners and in pursuance 
thereof, exercise its judicial and police powers to finally and completely eradicate 
the pernicious practices of unauthorized and unlicensed individuals or "colurums" 
engaged on real estate service; 
(j) Study, examine and prescribe, in cooperation with the Commission on 
Higher Education (CHED) or the concerned state university or college, the 
essential requirements as to curricula and facilities of schools, colleges, or 
universities seeking permission to open courses or already offering courses in 
appraisal or valuation, and to see to it that these requirements, including the 
employment of qualified faculty members, are properly complied with; 
(k) Evaluate periodically the status of appraisallvaluation education and 
recommend andlor adopt measures to upgrade and maintain its high standard; 
(I) 
Prescribe guidelines and criteria for the Continuing Professional 
Education (CPE) program for real estate service practitioners after consultation 


with the accredited and integrated professional organizations of real estate 
service practitioners; 
(m) Screen, issue and monitor permits to organizations of real estate 
professionals in the industry to conduct seminars and to accredit such seminars, 
as well as the instructors or lecturers therein for the purpose of upgrading the 
quality and knowledge of the profession; 
Conduct examinations as a prerequisite to the practice of the 
profession and issue, adopt and prepare syllabi of the subjects for examination 
by determining and preparing the questions which shall strictly be within the 
scope of the syllabus of the subject for examination; 
(n) 
(0) Monitor the activities of the accredited and integrated professional 
organization and other associations of real estate service practitioners; and 
(p) Discharge such other powers, duties and functions as the Commission 
may deem necessary to carry out the provision of this Act. 
The policies, resolutions, and rules and regulations issued or promulgated 
by the Board shall be subject to the review and approval by the Commission. 
However, the Board’s decisions, resolutions or orders, which are not 
interlocutory, rendered in an administrative case, shall be subject to review by 
the Commission only if on appeal. 
SEC. 6. Qualifications of the Chairperson and Members of the Board. - 
The chairperson and members of the Board shall, at the time of their 
appointment, possess the following qualifications: 
(a) Must be a citizen and resident of the Philippines; 
(b) Must be a holder of at least a bachelor’s degree; 
(c) Must be an active licensed practitioner of the real estate service, either 
as real estate broker, appraiser or consultant for at least ten ( I O )  years prior to 
hislher appointment; 
(d) 
Must be a bonafide member of the accredited and integrated 
professional organization of real estate service practitioners but not an officer at 
the time of hidher appointment. 
(e) Must neither be a member of the faculty of an institute, school or 
college of real estate service nor have any pecuniary interest, direct or indirect, in 
any institution or association where review classes or lectures in preparation for 
the licensure examination are being offered or conducted; and 
(f) Must be of good moral character and must not have been convicted by 
final judgment by a competent court of a criminal offense involving moral 
turpitude. 


SEC. 7. Term of Office. - The chairperson and members of the Board 
shall hold office for a term of three (3) years from the date of their appointment 
and until their successork shall have been appointed and duly qualified: 
Provided, That members of the first appointed Board shall hold office for the 
following terms: one (1) member as chairperson for three (3) years, two (2) 
members for two (2) years and two (2) members for one (I) year. 
The chairperson and members of the Board may be reappointed for 
another term but in no case shall hekhe serve continuously for more than six (6) 
years. Any vacancy in the Board shall be filled for the unexpired portion of the 
term only. 
The chairperson and members of the Board shall automatically be 
registered and issued with a certificate of registration/professional license and 
professional identification card. 
Each member of the Board shall take the proper oath of office prior to the 
assumption of duty. 
SEC. 8. Compensation and Allowances of the Chairperson and Members 
of the Board. - The chairperson and members of the Board shall receive 
compensation and allowances comparable to the compensation and allowances 
received by the chairperson and members of existing professional regulatory 
boards under the Commission as provided for in the General Appropriations Act. 
SEC. 9. Removal of the Chairperson and Members of the Board. - The 
chairperson or any member of the Board may be suspended or removed by the 
President of the Philippines upon recommendation of the Commission for neglect 
of duty, abuse of power, oppression, incompetence, unprofessional, unethical, 
immoral or dishonorable conduct, commission or toleration of irregularities in the 
conduct of examination or tampering of the grades therein, or for any final 
judgment or conviction of any criminal offense involving moral turpitude by the 
court after having been given the opportunity to defend himself/herself in a 
proper administrative investigation. 
SEC. I O .  Supervision of the Board, Custodian of its Records, Secretariat 
and Support Services. - The Board shall be under the general supervision and 
administrative control of the Commission. 
All records of the Board, including 
applications for examination, examination papers and results, minutes of 
deliberations, administrative and other investigative cases involving real estate 
service practitioners, shall be kept by the Commission. 
The Commission shall 
designate the secretary of the Board and shall provide the secretariat and other 
support services to implement the provisions of this Act subject to the usual 
government accounting and auditing rules and regulations, 


SEC. 11. Annual Repon'. - The Board shall, at the close of each 
calendar year, submit an annual report to the Commission, giving a detailed 
account of its proceedings and accomplishments during the year and 
recommending measures to be adopted with the end-in-view of upgrading and 
improving the conditions affecting the practice of real estate service in the 
Philippines. 
ARTICLE 111 
LICENSURE EXAMINATION AND REGISTRATION 
SEC. 12. 
Licensure Examination. - Every applicant seeking to be 
registered and licensed as a real estate service practitioner, except a real estate 
salesperson, shall undergo an examination as provided for in this Act. 
Examinations for the practice of real estate service in the Philippines shall be 
given by the Board at least once every year in such places and dates as the 
Commission may designate. 
SEC. 13. Scope of Examination. - An examination shall be given to the 
licensure applicants for real estate brokers, real estate appraisers and real estate 
consultants, which shall include but not limited to the following: 
(a) For real estate brokers - Fundamentals of property ownership; legal 
requirements for real estate practice; real estate brokerage practice; practical 
appraisal for real estate broker; site location and map reading; subdivision 
development; condominium concept; real estate financing; taxation, economics, 
basic principles of ecology; urban and rural land use; planning, development and 
zoning; legal aspect of sale, mortgage, lease documentation and registration; 
agrarian and urban reform laws; code of ethics; and any other related subjects as 
may be determined by thy Board. 
(b) For real estate appraisers - General real estate information; theories 
and principles in appraisal; human and physical geography; methodology of 
appraisal approaches and research; practical appraisal mathematics, appraisal 
report writing; laws affecting real estate appraisal; income and investment 
problems; case studies; agrarian and urban land reform laws, code of ethics; and 
any other related subjects as may be determined by the Board. 
(c) 
For real estate consultants - 
Pre-investment/feasibility studies; 
design; process innovation; construction/installation and other technical services 
on special studies; agrarian and urban land reform laws; code of ethics; and any 
other related subjects as may be determined by the Board. 
To conform with technological and modern changes, the Board may 
recluster, rearrange, modify, add or exclude any of the foregoing subjects as the 
need arises. 


SEC. 14. Qualification of Applicants for Examinations. - In order to be 
admitted to the licensure examination for real estate service, a candidate shall, at 
the time of filing his application, establish to the satisfaction of the Board that: 
(a) He is a citizen of the Philippines; 
(b) He is at least eighteen (18) years of age; 
(c) 
He is a holder of a bachelor's degree from a state university or 
college, or other educational institution duly recognized by the Commission on 
Higher Education (CHED); 
given by accredited entities; and 
(d) He has attended and completed an appropriate real estate seminar 
(e) He is of good moral character and must not have been convicted of 
any crime involving moral turpitude: Provided, That an applicant for the licensure 
examination for real estate appraisers must show proof that he has at least five 
(5) years experience as a licensed real estate broker, or as an assessor, or as 
bank or institutional appraiser, or an employed person performing real property 
valuation: Provided, further, That an applicant for the licensure examination for 
real estate consultants must show proof that he has at least ten ( I O )  years 
experience as a licensed real estate broker, or an assessor, or as bank or 
institutional appraiser, or an employed person performing real property valuation, 
or at least five (5) years experience as a licensed real estate appraiser. 
All applications for examination shall be filed with the Board which shall 
assess and approve the said applications and issue to the qualified examinees 
the corresponding permit to take such examination. 
SEC. 15. Ratings in the Examination. - In order that a candidate may be 
deemed to have successfully passed the examination, he must have obtained an 
average of at least seventy-five percent (75%) in all subjects, with no rating 
below fifty percent (50%) in any subject. 
SEC. 16. Release of the Results of Examination - The results of the 
licensure examination shall be released by the Board within ten (IO) days from 
the last day of the examination. 
SEC. 17. Issuance of the Certificate of RegisfrafionProfessional License 
and Professional Idenfjficafion Card. - A certificate of registrationlprofessional 
license shall be issued to examinees who pass the licensure examination for real 
estate service subject to payment of fees prescribed by the Commission, The 
certificate of registrationlprofessional license shall bear the signature of the 
chairperson of the Commission and the chairperson and members of the Board, 
stamped with the official seal of the Commission, indicating that the person 
named therein is entitled to practice the profession with all the benefits and 


privileges appurtenant thereto. 
The certificate of registrationlprofessional 
license shall remain in full force and effect until revoked or suspended in 
accordance with this Act. 
A professional identification card bearing the registration number; date of 
issuance, expiry date, duly signed by the chairperson of the Commission, shall 
likewise be issued to every registrant upon payment of the required fees. 
The 
professional identification card shall be renewed every three (3) years and upon 
satisfying the requirements of the Board, such as but not limited to attendance in 
the Continuing Professional Education (CPE) program. 
SEC. 18. Refusal to Register. - The Board shall not register and issue a 
certificate of registration/professionaI license to any successful examinee who 
has been convicted by a court of competent jurisdiction of any criminal offense 
involving moral turpitude or has been found guilty of immoral or dishonorable 
conduct after investigation by the Board, or has been declared to be of unsound 
mind. The reason for the refusal shall be set forth in writing. 
SEC. 
19. 
Revocation or 
Suspension of the 
Certificate 
of 
Registration/Professional License and Professional ldenfification Card. - The 
Board may, after giving proper notice and hearing to the party concerned, revoke 
the certificate of registration/professional license and professional identification 
card of a real estate service practitioner or suspend him/her from the practice of 
the profession for any unprofessional or unethical conduct, malpractice, or 
violation of any of the provisions of this Act, its implementing rules and 
regulations, and the code of ethics for real estate service practitioners. 
SEC. 20. Registration Without Examination. - Upon application and 
payment of the required fees, the following shall be registered and issued by the 
Board and Commission a certificate of registration/professional license and 
professional identification card without taking the prescribed examinations: 
(a) Those who, on the date of the effectivity of this Act, are already 
licensed as real estate broker, real estate appraiser, or real estate consultants by 
the Bureau of Domestic Trade by virtue of Ministry Order No. 39, as amended; 
(b) Assessors who, on the date of the effectivity of this Act, have passed 
the Real Property Assessing Officers (RPAO) examination conducted and 
administered by the Civil Service Commission in coordination with the 
Department of Finance; 
(c) Assessors not qualified under (a) or (b) but who have, on the date of 
effectivity of this Act, at least five (5) years experience in real property appraisal 
or assessment, and have completed at least thirty two (32) hours of training on 


real property appraisal conducted by national appraisal organizations or 
institutionslentities recognized by the Board. 
Those falling under categories (b) and (c) shall register with the Board 
after they shall have complied with the requirements for registration as real 
estate appraiser: Provided, that those seeking to be licensed to a new credential 
level shall be required to take the pertinent licensure examination. 
Those so exempt under the aforementioned categories shall file their 
application within two (2) years from the effectivity of this Act: Provided That the 
renewal of the professional identification card is subject to the provisions of 
Section 17 hereof. 
SEC. 21. Reinstatement, Reissuance or Replacement of Certificate of 
Registrafion/Professional License and Professional Identification Card. - The 
Board may, upon application and for reasons deemed proper and sufficient, 
reinstate any revoked certificate of registrationlprofessional license and reissue a 
suspended professional identification card, and in so doing it may, in its 
discretion, exempt the applicant from taking another examination. 
A new certificate of registrationlprofessional license or professional 
identification card may be issued to replace lost, destroyed or mutilated ones 
subject to such rules as may be promulgated by the Board. 
SEC. 22. Roster of Real Estate Service Practitioners. - The Board shall 
prepare, update and maintain a roster of real estate service practitioners which 
shall contain the names of all registered real estate service practitioners, their 
residence and office addresses, dates of registration or issuance of certificates, 
and other data which the Board may deem pertinent. 
The roster shall be open to the public, copies of which shall be sent to 
each real estate service practitioner listed therein. 
SEC. 23. Issuance of Special or Temporary Permit. - Upon application 
and payment of the required fees, and subject to the approval of the 
Commission, the Board may issue special or temporary permit to real estate 
service practitioners from foreign countries whose services are urgently needed 
in the absence or inadequacy of local real estate service practitioners for the 
purpose of promoting or enhancing the practice of the profession in the 
Philippines. 
SEC. 24. 
Foreign Reciprocity. 
- 
No foreign real estate service 
practitioner shall be admitted to the licensure examination or be given a 
certificate of registrationlprofessional license or professional identification card or 
be entitled to any of the privileges under this Act unless the country of which 
hekhe is a citizen specifically allows Filipino real estate service practitioners to 


practice within its territorial limits on the same basis as the citizens of such 
foreign country. 
ARTICLE IV 
PRACTICE OF REAL ESTATE SERVICE 
SEC. 25. Oath. - All successful examinees qualified for registration and 
all qualified applicants for registration without examination as well as licensed 
sales persons shall be required to take an oath of profession before any member 
of the Board or any government official authorized by the Commission to 
administer oaths prior to entering into the practice of real estate service in the 
Philippines. 
SEC. 26. Acts Constituting the Practice of Real Estate Service. - Any 
single act or transaction embraced within the provisions of Section 3 hereof shall 
constitute an act of engaging in the practice of real estate service. 
SEC. 27. Exemptions from the Acts Constituting the Practice of Real 
Estate Service. - The provisions of this Act and its rules and regulations shall 
not apply to the following: 
(a) Any person, natural or juridical, who shall directly perform by himself 
the acts mentioned in Section 3 hereof with reference to his or its own property; 
(b) 
Any receiver, trustee or assignee in bankruptcy or insolvency 
proceedings; 
(c) 
Any person acting pursuant to the order of any civil court of justice; 
(d) Any person who is duly constituted attorney in fact for purposes of 
SEC. 28. Prohibition Against the Unauthorized Practice of Real Estate 
Service. - No person shall practice or offer to practice real estate service in the 
Philippines or offer himself/herself as real estate service practitioner, or use the 
title, word, letter, figure, or any sign tending to convey the impression that one is 
a real estate service practitioner, or advertise or indicate in any manner 
whatsoever that one is qualified to practice the profession, or be appointed as 
real property appraiser or assessor in any national government entity or local 
government unit, unless he/she has satisfactorily passed the licensure 
examination given by the Board, except as otherwise provided in this Act, and is 
a holder of a valid certificate of registration/professional license and professional 
identification card or a valid speciaVtemporary permit duly issued to himlher by 
the Board and the Commission. 
SEC. 29. Positions in Government Requiring the Services of Registered 
and Licensed Real Estate Service Practitioners -Within three (3) years from the 
and 
sale, mortgage, lease or exchange or other similar contracts of real estate. 


effectivity of this Act, all existing and proposed positions in the local and national 
governments, whether career, permanent, temporary or contractual, and 
primarily requiring the services of a real estate service practitioner shall be filled 
only by registered and licensed real estate service practitioners. 
SEC. 30. Custody and Supervision of Real Estate Salespersons. - A real 
estate salesperson shall be under the custody and direct supervision of a real 
estate broker, As such, helshe cannot by himselflherself be a signatory to a 
written agreement involving a real estate transaction unless the real estate 
broker who has custody and direct supervision over himlher is also a signatory 
thereto. No real estate salesperson can negotiate, mediate or transact any real 
estate transaction for and in behalf of a real estate broker without first securing 
an authorized permit as real estate salesperson for the real estate broker and/or 
company he is working for as prescribed by the Board. A real estate broker shall 
be guilty of violating this Act for employing or utilizing the services of a real estate 
salesperson who has not secured the required professional license prior to such 
employment. 
SEC. 31. Corporate Practice of the Real Estate Service. - 
(a) No partnership or corporation shall engage in real estate service 
practice unless it is duly registered with the Securities and Exchange 
Commission (SEC), and the persons authorized to act for the partnership or 
corporation are all duly licensed as brokers, appraisers or consultants, as the 
case may be. The partnership or corporation shall regularly submit a list of its 
real estate service practitioners to the Commission and to the SEC as part of its 
annual reportorial requirements. 
(b) Divisions or departments of corporations and partnerships engaged in 
marketing or selling any real estate development project in the regular course of 
business must be headed by a full-time licensed real estate broker. 
In case of resignation or termination from employment of a real estate 
service practitioner, the same shall be reported by the employer to the Board 
within a period not to exceed fifteen (15) days from the date of effectivity of the 
resignation or termination. 
Subject to the provisions of the Labor Code, a corporation or partnership 
may hire the services of licensed real estate brokers, appraisers or consultants 
on commission basis to perform real estate services and the latter shall be 
deemed independent contractors and not employees of such corporation or 
partnership. 
SEC. 32. Display of License in fhe Place of Business. - Every licensed 
real estate service practitioner shall establish and maintain a principal place of 


business and such other branch offices as may be necessary and shall 
conspicuously display therein the original and/or certified true copies of hidher 
certificate of registration/professional license as well as the licenses of all real 
estate service practitioners employed in such office. 
SEC. 33. 
Accreditation and lntegration of Real Estate Service 
Practitioners Organizations. 
- All real estate service practitioners shall be 
integrated into one national organization, which shall be recognized by the Board 
as the one and only accredited and integrated professional organization of real 
estate practitioners. A real estate service practitioner duly registered with the 
Board shall automatically become a member of the accredited and integrated 
professional organization of real estate service practitioners and shall receive the 
benefits and privileges appurtenant thereto. Membership in the accredited and 
integrated professional organization of real estate service practitioners shall not 
be a bar to membership in other associations of real estate service practitioners. 
SEC. 34. Code of Ethics for Real Estate Service Practitioners. - The 
Board shall adopt and promulgate the Code of Ethics for Real Estate Service 
Practitioners which shall be prescribed and issued by the accredited and 
integrated professional organization of real estate service practitioners. 
SEC. 35. Confinuing Professional Education (CPE) Program. - The CPE 
guidelines shall be prescribed and promulgated by the Board upon consultation 
with the accredited and integrated professional organization of real estate service 
practitioners, affiliated association of real estate service practitioners, and other 
concerned sectors, and in accordance with such policies as may have been 
prescribed in coordination with the CHED. 
The Board shall create a CPE 
Council that shall be composed of a chairperson coming from the Board, a 
member from the accredited and integrated professional organization of real 
estate service practitioners and a member from the academe. 
ARTICLE V 
PENAL AND FINAL PROVISIONS 
SEC. 36. 
Penal Provisions. - Any violation 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 unlicensed 
realty service practitioners, 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 a co-principal with the other participants, if any. 
In case the offender is a government official or employee, he/she shall, in 
addition to the above penalties, be deemed automatically dismissed from office 
and permanently disqualified from holding any elective or appointive position. 
SEC. 37. 
Appropriations. 
- 
The chairperson of the Professional 
Regulation Commission (PRC) shall immediately include in the Commission's 
programs the implementation of this Act, the funding of which shall be included in 
the Annual General Appropriations Act and thereafter. 
SEC. 38. 
Transitory Provisions. - Within ninety (90) days after the 
effectivity of this Act, the Department of Trade and Industry (DTI) shall transfer all 
pertinent records, documents, and other materials to the Professional Regulatory 
Board of Real Estate Service. 
SEC. 39. lmplemenfing Rules and Regulations. - Within ninety (90) days 
after the effectivity of this Act, the Commission, together with the Board, the 
accredited and integrated professional association of real estate service 
practitioners, and the CHED shall prepare the necessary rules and regulations, 
including the code of ethics for real estate service practitioners, needed to 
implement the provisions of this Act. 
SEC. 40. Separability Clause. - If any clause, sentence, paragraph or 
part of this Act shall be declared unconstitutional or invalid, such judgment shall 
not affect, invalidate or impair any other part of this Act. 
SEC. 41. Repealing Clause. - All laws, decrees, executive orders, 
memorandum orders, and other administrative issuances and parts thereof which 
are inconsistent with the provisions of this Act are hereby modified superseded or 
repealed accordingly. 
SEC. 42. 
Effectivity. - This Act shall take effect fifteen (15) days 
following its publication in the Official Gazette or in a major daily newspaper of 
general circulation in the Philippines, 
Approved,