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REPUBLIC OF THE PHILIPPINES 
1 
Second Regular Session 
1 
S E N A T E  
me"< ,\lFP &C/ 
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COMMITTEE REPORT NO. 
232 
Submitted iointlv bv the Committees on Civil Service and Government 
- .  
Reorganization 
Housing and Resettlement and 
Finance on 
Re: 
S.B. No. 2963 
Recommending its approval in substitution of Senate Bill Nos. 1298, 
1644, 1656 and taking into consideration House Bill No. 3514. 
Sponsor: 
Senator Panfilo M. Lacson 
MR. PRESIDENT: 
The Committees on Civil Service and Government Reorganization, 
Urban Planning, Housing and Resettlement and Finance, to which were 
referred S. B. No. 1298 introduced by Senator Miriam Defensor Santiago, 
entitled: 
AN ACT 
REGULATING THE PRACTICE OF REAL ESTATE SERVICE IN THE PHILIPPINES, 
CREATING A REAL ESTATE COMMISSION AND APPROPRIATING FUNDS 
THEREFOR 
S, B. No. 1644, introduced by Senator Rodolfo G. Biazon, entitled: 
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 
S. 6. No. 1656, introduced by Senator Antonio F. Trillanes IV, entitled: 
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 
and taking into consideration House Bill No. 3514, 
introduced by 
Representatives Del Mar, Zialcita, Valencia, Gonzales, Bagatsing, Santiago (N), 
Romulo, Mendoza, Lagman, Almario, Yu, Sy-Alvarado, Piamonte, Cerilles, 
Chatto and Codilla, per Committee Report No. 269, entitled: 


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 
have considered the same and have the honor to report them back to the 
the recommendation that the attached bill, Senate Bill 
No. 
, prepared by the Committees, entitled: 
“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 approved in substitution of Senate Bill Nos. 1298, 1644, 1656 and taking 
into consideration House Bill No. 3514, with Senators Santiago, Biazon, 
Trillanes IV and Lacson as authors thereof. 
Respectfully submitted: 
Chairman, Committee on Civil Service 
and Government Reorganization 
PAN 
&i$d&ON 
Ac ’ a 
airman. Committee on 
Cidil Serbice and’ Government 
JUAN MIGUEL F. ZUBlRl 
Chairman, Ctte. on Urban Planning, 
Housing and Resettlement 
EDGARD J.A GARA 
Committee on Civil Service and 
Government Reorganization 
Committee on Urban Planning, 
Housing and Resettlement 
Committee on Finance 
ALAN PETER S. CAYETANO 
Committee on Civil Service and 
Government Reorganization 
Committee on Urban Planning, 
Housing and Resettlement 
J. GORDON 
ommittee on Civil Service and 
Government Reorganization 
Committee on Finance 
Committee on Civil Service and 
Government Reorganization 
Committee on Urban Planning, 
Housing and Resettlement 
Committee on Finance 
I 


/ 
vernment Reorganization 
Committee on Urban Planning, 
Housing and Resettlement 
Committee on Finance 
Committee on Urban Planning, 
Housing and Resettlement 
Committee on Finance 
Commiiee on Finance 
/""q 
F 
Committee on Finance - 
LOREN B. LEGARDA 
Committee on Civil Service 
Committee on Urban Planning, 
- 
Housing and Resettlement 
Committee on Finance 
A 
c 
Housing and Resettlement 
Committee on Finance 
MIRIAM DEFENSOR SANTIAGO 
Committee on Finance 
I 
EX-OFFICIO MEMBERS: 
HON. JUAN PONCE ENRILE 
Senate President 
Senate of the Philippines 


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~ iSror)~; 
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Cl"C*CfA~'t, 
FOURTEENTH CONGRESS OF THE REPUBLIC 
} 
OF THE PHILIPPINES 
Second Regular Session 
S E N A T E  
(In Substitution of Senate Bill Nos. 1298,1644,1656, and taking into consideration HBN 
3514) 
Prepared by the Committees on Civil Service and Government Reorganization, 
Urban Planning, Housing and Resettlement and Finance with Senators Santiago, 
Biazon, Trillanes IV and Lacson as authors thereof 
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 Representatiues of 
the Philippines 
in Congress assembled: 
ARTICLE I 
TITLE, DECLARATION OF POLICY AND DEFINITION OF TERMS 
SEC. 1. 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 
by promoting the real estate market, stimulating economic activity and enhancing 
government income from real property-based transactions. Hence, it shall develop and 
nurture through proper and effective regulation and supervision a corps of technically 
competent, responsible and respected professional real estate service practitioners 
whose standards of practice and service shall be globally competitive and will promote 
the growth of the real property industry. 
SEC. 3. Definition of Terms. - As used in this Act, the following terms shall mean: 
A. "Appraiser", 
also known as valuer, refers to a person who conducts 
valuation/appraisal; specifically, one who possesses the necessary qualifications, 
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license, ability and experience to execute or direct the valuation/appraisal of real 
property. 
B. “Assessor” refers to a person in the local government unit, who performs appraisal 
and assessment of real properties, including plants, equipment, and machineries, 
essentially for taxation purposes. This definition also includes assistant assessors. 
C. ”Real estate” refers to the land and all those items which are attached to the land. It 
is the physical, tangible entity, together with all the additions or improvements on, 
above or below the ground. 
D. ”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. 
E. ”Real estate developer” refers to any natural or juridical person engaged in the 
business of developing real estate development project for his/her or its own 
account and offering them for sale or lease. 
“Real property” includes all the rights, interests and benefits related to the 
ownership of real estate. 
F. 
G. ”Real estate service practitioners” shall refer to and consist of the following: 
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 other valuable consideration, performs or 
renders, or offers to perform services in estimating and arriving at 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 
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purposes. 
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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; and 
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. 
ARTICLE I1 
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, composed of a chairperson and 
four (4) members who shall be appointed by the President of the Philippines from the 
three (3) recommendees chosen by the Commission from a list of five (5) nominees per 
position submitted by the accredited and integrated professional organizations of real 
estate service practitioners. Provided flint, the four (4) members shall each represent the 
real estate consultants, the real estate appraisers, the real estate assessors, and the real 
estate brokers. 
The first Board shall be organized within six (6) months from the effectivity of 
this Act. 
SEC. 5. Powers and Functions of the Board. - The Board is hereby vested the following 
powers and functions: 
A. Provide comprehensive policy guidelines for the promotion and development of the 
real estate industry; 
B. Conduct licensure examinations for the practice of the real estate service profession 
and prescribe the appropriate syllabi of the subjects for examination; 
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C. Issue, suspend, revoke or reinstate, after due notice and hearing, certificates of 
registration or professional identification cards for the practice of real estate service; 
D. Maintain a comprehensive and updated register of licensed real estate service 
professionals; 
E. Monitor the conditions affecting the practice of real estate service and adopt such 
measures as may be proper for the enhancement of the profession and/or the 
maintenance of high professional, ethical and technical standards; 
F. Adopt a national Code of Ethics and Responsibilities to be strictly observed by all 
licensed real estate service practitioners; 
G. Hear or investigate any violation of this Act, its implementing rules and regulations, 
and the Code of Ethics and Responsibilities for real estate service practitioners and 
issue subpoena and subpoena duces tecum to secure the appearance of witnesses 
and the production of documents in connection therewith; 
H. Safeguard and protect legitimate and licensed real estate service practitioners and, in 
coordination with the accredited and integrated professional organization of real 
estate service practitioners, monitor all forms of advertisements, announcements, 
signboards, billboards, pamphlets, brochures and others of similar nature 
concerning real estate and, where necessary, exercise its quasi-judicial and 
administrative powers to finally and completely eradicate the pernicious practices of 
unauthorized or unlicensed individuals; 
Prescribe, in cooperation with the Commission on Higher Education (CHED) or the 
concerned state university or college, the essential requirements as to the curricula 
and facilities of schools, colleges or universities seeking permission to open 
academic courses or already offering such courses in real estate service, and to see to 
it that these requirements, including the employment of qualified faculty members, 
are properly complied with; 
Promulgate, administer and enforce rules and regulations necessary in carrying out 
the provisions of this Act; 
K. Supervise and regulate the registration, licensure and practice of real estate service 
in the Philippines; 
L. Assess and fix the rate of reasonable regulatory fees; 
M. Administer oaths and affirmations; 
N. Adopt an official seal of the Board; 
0. Evaluate periodically the status of real estate service education and profession, and 
recommend and/or adopt measures to upgrade and maintain its high standard; 
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P. Prescribe guidelines and criteria for the Continuing Professional Education (CPE) 
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program for real estate service practitioners in consultation with the accredited and 
integrated professional organizations of real estate service practitioners; 
Q. Screen, issue and monitor permits to organizations of real estate professionals in the 
conduct of seminars and accredit such seminars pursuant to the CPE program, as 
well as the instructors or lecturers therein, for the purpose of upgrading the quality 
and knowledge of the profession; 
R. Monitor and supervise the activities of the accredited and integrated professional 
organizations and other associations of real estate service practitioners; and 
S. Discharge such other powers, duties and functions as the Commission may deem 
necessary to carry out the provisions 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 on appeal. 
SEC. 6. Qualifications of the Chairperson and Members of the Board. - The 
chairperson and the members of the Board shall, at the time of their appointment, 
possess the following qualifications: 
A. A citizen and resident of the Philippines; 
B. A holder of a bachelor’s degree related to real estate; 
C. An active licensed practitioner of real estate service for at least ten (10) years prior to 
his/ her appointment; 
D. A bona fide member in good standing of the accredited and integrated professional 
organization of real estate service practitioners but not an officer or trustee at the 
time of his/her appointment; 
E. Neither be a member of the faculty of an institute, school, college or university, 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. 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 the members of the Board shall hold 
office for a term of three (3) years from the date of their appointment and until their 
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successor/s shall have been appointed: Provided, That the members of the first 
appointed Board shall hold office for the following terms: one (1) member as 
chairperson, to serve for three (3) years; two (2) members, to serve for two (2) years; and 
two (2) members, to serve for one (1) year. 
The Chairperson and the members of the Board may be reappointed for a second term 
but in no case shall helshe serve continuously for more than six (6) years. Any vacancy 
in the Board shall be filled for the unexpired portion of the term of the member who 
vacated the position. On the constitution of the first Board, the chairperson and the 
members of the Board shall automatically be registered and issued certificates of 
registration and professional identification cards. 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 the members of the Board shall receive compensation and 
allowances comparable to the compensation and allowances received by the chairman 
and the 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 the 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. 
SEC. 10. 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. 
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SEC. 11. Annual Report. - 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 consultants - fundamentals of real estate consulting; standards and 
ethics; consulting tools and techniques, which include project feasibility study and 
investment measurement tools; real estate finance and economics; real estate 
consulting and investment analyses; consulting for specific engagement, which 
include consulting for commercial, industrial, recreation and resort and hotel 
properties, and consulting for government and corporate and financial institutions; 
land management system and real property laws; and any other related subjects as 
may be determined by the Board. 
B. For real estate appraisers - fundamentals of real estate principles and practices; 
standards and ethics; theories and principles in appraisal; human and physical 
geography; methodology of appraisal approaches; valuation procedures and 
research; appraisal of machinery and equipment; practical appraisal mathematics; 
appraisal report writing; real estate finance and economics; case studies; land 
management system and real property laws; and any other related subjects as may 
be determined by the Board; and 
C. For real estate brokers - fundamentals of property ownership; code of ethics and 
responsibilities; legal requirements for real estate service practice; real estate 
brokerage practice; subdivision development; condominium concept; real estate 
finance and economics; basic principles of ecology; urban and rural land use; 
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planning, development and zoning; legal aspect of sale, mortgage and lease; 
documentation and registration; real property laws; and any other related subjects 
as may be determined by the Board; 
To conform with technological and modern developments, the Board may recluster, 
rearrange, modify, add or exclude any of the foregoing subjects as may be necessary. 
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/her application, establish to the satisfaction of the Board that he/she possesses the 
following qualifications: 
A. A citizen of the Philippines; 
B. A holder of a relevant bachelor's degree from a State university or college, or other 
educational institution duly recognized by the CHED: Puooided, that as soon as a 
course leading to a Bachelor's degree in Real Estate Service is implemented by the 
CHED, the Board shall make this course a requirement for taking the licensure 
examination; 
C. Of good moral character, and must not have been convicted of any crime involving 
moral turpitude; Pro-oided, that an applicant for the licensure examination for real 
estate consultants must show proof that he/she has at least ten (10) years experience 
as a licensed real estate broker or an assessor, or as a 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 said applications and issue to the qualified examinees the corresponding 
permits 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/she 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 (10) days from the last day of the 
examination. 
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SEC. 17. Issuance of the Certificate of Registration and Professional Identification 
Card. - A certificate of registration 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 registration shall bear the signature of the chairperson of 
the Commission and the chairperson and the 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. This 
certificate of registration 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 and 
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 he renewed every three (3) years and upon satisfying the requirements of the 
Board, such as, but not limited to, attendance in the CPE program. 
SEC. 18. Refusal to Register. - The Board shall not register and issue a certificate of 
registration 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 found 
to be psychologically unfit. 
SEC. 19. Revocation or Suspension of the Certificate of Registration and the 
Professional Identification Card or Cancellation of Speciapemporary Permit. - The 
Board may, after giving proper notice and hearing to the party concerned, revoke the 
certificate of registration and the professional identification card, or cancel the special or 
temporary permit 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 and Responsibilities for real estate service practitioners. 
SEC. 20. Registration Without Examination. - Upon application and payment of the 
required fees, the following shall be registered, and shall be issued by the Board and the 
Commission a certificate of registration and a professional identification card without 
taking the prescribed examination: 
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A. Those who, on the date of the effectivity of this Act, are already licensed as real 
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estate brokers, real estate appraisers or real estate consultants by the Department of 
Trade and Industry (DTI) by virtue of Ministry Order No. 39, as amended Provided, 
That they are in active practice as real estate brokers, real estate appraisers and real 
estate consultants, and have undertaken relevant CPE to the satisfaction of the 
Board; 
B. Assessors who, on the date of the effectivity of this Act, hold permanent 
appointment and are performing actual appraisal and assessment functions for the 
last five (5) years, have passed the Real Property Assessing Officer (RPAO) 
examination conducted and administered by the Civil Service Commission (CSC) in 
coordination with the Department of Finance (DOF), and have undertaken relevant 
CPE to the satisfaction of the Board; and 
C. Assessors who, on the date of the effectivity of this Act, hold permanent 
appointment and have at least ten (10) years actual experience in real property 
appraisal or assessment and have completed at least one hundred twenty (120) 
hours of accredited training on real property appraisal conducted by national or 
international appraisal organizations or institution/entities recognized by the Board 
and relevant CPE to the satisfaction of 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 appraisers: 
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 Registration, 
Professional Identification Card and Speciaflemporary Permit.- The Board, after the 
expiration of two (2) years from the date of revocation of a Certificate of Registration 
and/or Professional Identification Card, and upon application, compliance with the 
required CPE units, and for reasons deemed proper and sufficient, reinstate any 
revoked certificate of registration and reissue a suspended professional identification 
card and in so doing, may, in its discretion, exempt the applicant from taking another 
examination. 
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permit may be issued to replace lost, destroyed or mutilated ones, subject to the rules as 
may he promulgated by the Board. 
SEC. 22. Roster of Real Estate Service Practitioners. - The Board, in coordination with 
the integrated organizations of real estate service practitioners, 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, 
license number, dates of registration or issuance of certificates, and other data which the 
Board may deem pertinent. Copies thereof shall be made available to the public upon 
request. 
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 unavailability 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 registration or a 
professional identification card, or be entitled to any of the privileges under this Act 
unless the country of which he/she is a citizen specifically allows Filipino real estate 
service practitioners to practice within its territorial limits on the same basis as 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 accredited salespersons shall 
be required to take an oath before any member of the Board or any officer of the 
Commission duly 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(g) hereof, as performed by real 
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estate service practitioners, 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/herself the 
acts mentioned in Section 3 hereof with reference to his/her or its own property, 
except real estate developers; 
8. Any receiver, trustee or assignee in bankruptcy or insolvency proceedings; 
C. Any person acting pursuant to the order of any court of justice; and 
D. Any person who is a duly 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. 
E. Public officers in the performance of their official duties and functions, except 
government assessors and appraisers. 
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, and professional identification card or a 
valid special/temporary permit duly issued to him/her 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 effectivity of this 
Act, all existing and new positions in the national and local governments, whether 
career, permanent, temporary or contractual, and primarily requiring the services of 
any real estate service practitioner, shall be filled only by registered and licensed real 
estate service practitioners. 
All incumbent assessors holding permanent appointments shall continue to 
perform their functions without need for reappointment and without diminution of 
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status, rank and salary grade, and shall enjoy security of tenure. However, they may 
not be promoted to a higher position until they meet the qualification requirements of 
that higher position as herein prescribed. Nothing in this Act shall be construed to 
reduce any benefit, interest, or right enjoyed by the incumbents at the time of the 
enactment of this Act. The appointing authority shall exercise his power to appoint the 
assessor in accordance with the provisions of this Act only when a vacancy occurs. 
SEC. 30. Supervision of Real Estate Salespersons. - For real estate salespersons, no 
examination shall be given, but they shall be accredited by the Board: Provided, That 
they have completed at least two (2) years of college and have undergone training and 
seminars in real estate brokerage, as may be required by the Board. Real estate 
salespersons shall be under the direct supervision and accountability of a real estate 
broker. As such, they cannot by themselves be signatories to a written agreement 
involving a real estate transaction unless the real estate broker who has direct 
supervision and accountability over them is also a signatory thereto. No real estate 
salesperson, either directly or indirectly, can negotiate, mediate or transact any real 
estate transaction for and in behalf of a real estate broker without first securing an 
authorized accreditation as real estate salesperson for the real estate broker, 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 when he/she has not 
secured the required accreditation from the Board prior to such employment. 
No salesperson shall 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 rendered or 
work done by such salesperson in any real estate transaction. 
No violation of this provision shall be cause for revocation or suspension of the 
certificate of registration of the real estate broker unless there was actual knowledge of 
such violation or the broker retains the benefits, profits or proceeds of a transaction 
wrongfully negotiated by the salesperson. 
SEC. 31. Corporate Practice of the Real Estate Service. - 
A. No partnership or corporation shall engage in the business of real estate service 
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 
registered and licensed real estate brokers, appraisers or consultants, as the case may 
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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 
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reportorial requirements. There shall at least be one (1) licensed real estate broker for 
every twenty (20) accredited salespersons. 
B. Divisions or departments of partnerships and corporations engaged in marketing or 
selling any real estate development project in the regular course of business must be 
headed by full time registered and licensed real estate brokers. 
C. Branch offices of real estate brokers, appraisers or consultants must be manned by a 
duly licensed real estate broker, appraiser or consultant as the case may be. 
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 registered and 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 corporations. 
SEC. 32. Display of License in the Place of Business. - Every registered and 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 his/her certificate of registration as 
well as the certificates of registration of all the real estate service practitioners employed 
in such office. 
SEC. 33. Accreditation and Integration of Real Estate Service Practitioners 
Organizations. - All real estate service practitioners shall be integrated into four (4) 
professional organizations, one each for real estate consultants, real estate appraisers, 
real estate assessors, and real estate brokers, which shall be recognized by the Board, 
subject to the approval of the Commission, as the only accredited and integrated 
professional organizations for each of the real estate service Practitioners. A real estate 
service practitioner duly registered with the Board shall automatically become a 
member of his/ her respective accredited and integrated professional organization of 
real estate service practitioners, and shall receive the benefits and privileges 
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appurtenant thereto. Membership in the accredited and integrated professional 
organizations 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 and Responsibilities for Real Estate Service Practitioners. - 
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 organizations of real estate service practitioners. 
SEC. 35. Continuing Professional Education (CPE) Program. - The Board shall 
develop, prescribe and promulgate guidelines on CPE 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 by the Board, subject to 
the approval of the Commission. 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 organizations of real estate service practitioners and a member 
from the academe. 
SEC. 36. Enforcement Assistance to the Board. - The Board shall be assisted by the 
Commission in carrying out the provisions of this Act and its implementing rules 'and 
regulations and other policies. The lawyers of the Commission shall act as prosecutors 
against illegal practitioners and other violators of this Act and its rules. The duly 
constituted authorities of the government shall likewise assist the Board and the 
Commission in enforcing the provisions of this Act and its rules. 
SEC. 37. Indication of the Certificate of Registration, Professional Identification 
Card/License Number, Privilege Tax Receipt (PTR) Number and Accredited 
Professional Organization (APO) Number. - Real estate service practitioners shall be 
required to indicate the certificate of registration, professional identification card, PTR 
number, and APO receipt number, and the date of issuance and the duration of validity 
on the documents he/she signs, uses or issues in connection with the practice of his/her 
profession. 
ARTICLE V 
PENAL AND FINAL PROVISIONS 
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SEC. 38. 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 (PlO0,OOO.OO) but not more than one million pesos 
(Pl,OOO,OOO.OO) or imprisonment of not less than six (6) months but not more than six (6) 
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 a co-principal with the other participants, if 
any. 
SEC. 39. Appropriations. - The chairperson of the Professional Regulation Commission 
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. 40. Transitory Provision. - Within ninety (90) days from the effectivity of this Act, 
the DTI - Bureau of Trade Regulation and Consumer Protection (BTRCP) shall transfer 
all pertinent records, documents and other materials to the Professional Regulatory 
Board of Real Estate Service. 
SEC. 41. Implementing Rules and Regulations. - Within six (6) months after the 
effectivity of this Act, the Commission, together with the Board and the accredited and 
integrated professional organizations of real estate service practitioners and the CHED, 
shall prepare the necessary rules and regulations, including the Code of Ethics and 
Responsibilities for real estate service practitioners, needed to implement the provisions 
of this Act. 
SEC. 42. 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. 43. Repealing Clause. - 
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a) Sections 3 (e) and (ee) of Act No. 2728, as amended by Act No. 3715 and Act No. 
3969, Sections 472 and 473 of the Local Government Code of 1991 (RA 7160), and 
pertinent provisions of the Civil Service Law are hereby modified accordingly. 
b) All laws, decrees, executive orders, department or memorandum orders and 
other administrative issuances or parts thereof which are inconsistent with the 
provisions of this Act are hereby modified, superseded or repealed accordingly. 
SEC. 44. 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, 
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