Philipp
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

FIFTEENTH CONGRESS
Third Regular Session

COMMITTEE REPORT NO.
Submitted by the Committee on Labor and Employment on 16 APR 2013

Re: House Bill No.

Recommending its approval in substitution of House Bill No. 4027

Sponsors: Reps. Emil L. Ong and Jesus Crispin C. Remulla

Mr. Speaker:

The Committee on Labor and Employment, to which was referred House Bill
No. 4027, introduced by Rep. Jesus Crispin C. Remulla, entitled:

“AN ACT
PROMOTING EMPLOYMENT OPPORTUNITIES IN REAL ESTATE
SERVICE IN THE PHILIPPINES, AMENDING FOR THE PURPOSE
CERTAIN PROVISIONS OF REPUBLIC ACT NUMBER 9646,
OTHERWISE KNOWN AS THE REAL ESTATE SERVICE ACT OF
THE PHILIPPINES”

has considered the same and recommends that the attached House Bill No.
, entitled:

“AN ACT
PROMOTING EMPLOYMENT OPPORTUNITIES IN REAL
ESTATE SERVICE IN THE PHILIPPINES, AMENDING FOR THE
PURPOSE SECTIONS 2, 31 and 32 OF REPUBLIC ACT NUMBER
9646, OTHERWISE KNOWN AS THE ‘REAL ESTATE SERVICE
ACT OF THE PHILIPPINES’ ”

be approved in substitution of House Bill No. 4027. with Reps. Jesus Crispin C.
Remulla, Romeo M. Jalosjos, Jr. and Angelo B. Palmones as authors thereof.


HOUSE OF REPRESENTATIVES

‘Constitution Hills, Quezon City

HE No. 4027

Respectfully submitted; )

== —
EMIL L. O1
Chair
Committee on Labor and Employment

THE HONORABLE SPEAKER
HOUSE OF REPRESENTATIVES
QUEZON CITY


Republic of the Philippines
HOUSE OF REPRESENTATIVES.

Cons Hills, Quezon City

FIFTEENTH CONGRESS
Third Regular Session

6925

HOUSE BILL NO.

Introduced by Reps. Jesus Crispin C. Remulla, Romeo M. Jalosjos, Jr. and Angelo B.
Palmones

AN ACT
PROMOTING EMPLOYMENT OPPORTUNITIES IN REAL
ESTATE SERVICE IN THE PHILIPPINES, AMENDING FOR THE
PURPOSE SECTIONS 2, 31 and 32 OF REPUBLIC ACT NUMBER
9646, OTHERWISE KNOWN AS THE “REAL ESTATE SERVICE ACT
OF THE PHILIPPINES”

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Section 2 of Republic Act No. 9646 is hereby amended to read as
follows:

“Section 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, PROMOTING
EMPLOYMENT OPPORTUNITIES IN THE SECTOR 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 estate industry.”

‘SEC. 2. Section 31 of the same law is hereby amended to read as follows:

“Section 31. 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] RELEVANT EDUCATION and have undergone
training and seminars in real estate brokerage as may be required by the
Board. THE TECHNICAL EDUCATION AND SKILLS DEVELOPMENT
AUTHORITY (TESDA) SHALL FORMULATE, IN COLLABORATION


WITH RELEVANT INDUSTRY ASSOCIATIONS, THE TRAINING
REGULATIONS (TRS) FOR REAL ESTATE SALESPERSONS.

“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]
WITHOUT SECURING 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] OVER any service rendered or work done by such
salesperson in any real estate transaction.

“No violation of this provision shall be a 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. 3. Section 32 of the same law is hereby amended to read as follows:
“Section 32. 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 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. [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. 4. Implementing Rules and Regulations. - Within thirty (30) days from the
effectivity of this Act, the Secretary of Labor and Employment shall issue and publish the
necessary rules and regulations to implement the provisions of this Act.

SEC. 5. Separability Clause. - |f any provision of this Act is declared
unconstitutional, the same shall not affect the validity and effectivity of the other provisions
hereof.

SEC. 6. Repealing Clause. - All laws, executive orders, presidential decrees,
presidential proclamations, rules and regulations or parts thereof inconsistent with the
provisions of this Act are hereby repealed or modified accordingly.

SEC. 7. Effectivity Clause.- This Act shall take effect fifteen (15) days after its
complete publication in the Official Gazette or in a newspaper of general circulation.

Approved,


FIFTEENTH CONGRESS

; CONGRESS OF THE PHILIPPINES
First Regular Session

HOUSE OF REPRESENTATIVES

House BillNo. __ £6277"

INTRODUCED BY REPRESENTATIVE JESUS CRISPIN C. REMULLA

EXPLANATORY NOTE

The rise of the real estate industry has contributed much to the growth of the
Philippine economy in recent years.

In line with this development, Congress passed Republic Act 9646 otherwise
known as the Real Estate Service Act of the Philippines. This law makes it the
policy of the State to promote the advancement in the sector by developing and
nurturing through the proper and effective regulation and supervision a corps of
technically competent and responsible professional real estate service practitioners
whose standards of practice and service shall be globally competitive and will
promote the growth of the industry as a whole

. Consistent with the said policy, this bill seeks to expand the employment
opportunities in the real estate business by amending certain provisions of the
aforesaid law in order to accord more qualified persons the opportunity of taking part
as professionals in the field of real estate.

By giving more persons access to employment opportunities, this Act aims to

provide a fertile ground for employment generation in the real estate industry. It will
thus encourage economic growth and provide an effective vinculum to ease and curb

the rise in unemployment.

In view of the foregoing, | recommend the immediate passage of this bill.

JESUS GRISPIN C. REMULLA


FIFTEENTH CONGRESS

CONGRESS OF THE PHILIPPINES
First Regular Session

HOUSE OF REPRESENTATIVES

Aon
House Bill No. _ SU«& ¢

INTRODUCED BY REPRESENTATIVE JESUS CRISPIN C. REMULLA

AN ACT PROMOTING EMPLOYMENT OPPORTUNITIES IN REAL ESTATE
SERVICE IN THE PHILIPPINES, AMENDING FOR THE PURPOSE CERTAIN
PROVISIONS OF REPUBLIC ACT NUMBER 9646, OTHERWISE KNOWN 23) THE
REAL ESTATE SERVICE ACT OF THE PHILIPPINES

Be it enacted by the Senate and House of Representatives of the Philippines
in Congress assembled:

SECTION 1. Section 2 of Republic Act No. 9646 is hereby amended to read .
as follows :

“Section 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, PROMOTING
EMPLOYMENT OPPORTUNITIES IN THE SECTOR 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 estate industry.

SEC. 2. Section 31 of the same law is hereby amended to read as follows:

“Section 31. 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
RELEVANT EDUCATION [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 ‘

xxx

SEC. 3. Section 32 of RA 9646 is amended to read as follows:

“Section 32. 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 be. The
partnership or corporation shall regularly submiit a list of its real estate-
service practitioners to the Commission and to the SEC as part of its
annual reportorial requirements. [There shall at least be one (1)
licensed real estate broker for every twenty (20) accredited
salespersons.] -

(b) xxx

(c) xxx =

SEC. 4. 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. 5. This Act shalll 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,


Republic of the Philippines
HOUSE OF REPRESENTATIVES

Quezon City, Metro Manila

MINUTES OF THE MEETING OF THE COMMITTEE ON LABOR AND EMPLOYMENT HELD ON
14 NOVEMBER 2012, 10:15 A.M TO 3:00 PM AT CONFERENCE ROOMS 9 & 10, MITRA BUILDING,

HOUSE OF REPRESENTATIVES, QUEZON CITY

GUESTS / RESOURCE PERSONS

‘Asst, Secretary Ma. Joji Aragon Department of Labor & Employment (DOLE)
Mr. Jose Sandoval Bureau of Local Employment, DOLE.

Ms. Evelyn-Dacomos eer
Ms, Teresita Audea ‘National Conciliation & Mediation Board (NCMB)
Ms, Shirley Pascual NCMB =
‘Ay. Cyrus Montesa ‘Securities and Exchange Commission (SEC)
Hon. Joel Magiunscd ‘Anakpawis
Mr. Ronnie Nismal Federation of Free Workers (FW)
Ms, Josephine Femandez Bankers Association of the Philippines (BAP)
Mr, Armando Montano Jr. ‘Arms Corporation of the Phi
Mr. Rufino Margate Jr Federation of Philippine Industries (FP1)
Ms. Luna Cun Uy FP
I. CALL TO ORDER

Chairperson Emil Ong called the meeting to order at 10:15 a.m. Upon the motion of Rep. Angelo Palmones,
the calling of the roll was dispensed with.

I. OPENING REMARKS OF THE CHAIRPERSON

‘The Chairperson gave a brief statement on the measures for consideration.

Ill. CONSIDERATION OF THE DRAFT COMMITTEE REPORT ON MEASURES SEEKING TO
INCREASE THE PENALTY FOR THE NON-IMPLEMENTATION OF WAGE RATES (HB Nos. 942,
1817, 1889 & 2884)

Upon motion of Rep. Palmones, duly seconded, the Committee approved the committee report on
measures seeking to increase the penalty for the non-implementation of wage rates.
Rep. Palmones also moved that members present be made as co-authors.

IV. CONSIDERATION OF THE DRAFT COMMITTEE REPORT ON MEASURES SEEKING TO
STRENGTHEN TRIPARTISM (HB Nos. 5864 and 5935)

Upon motion of Rep. Palmones, duly seconded by Rep. Linabelle Ruth Villarica, the Committee approved
the committee report on measures seeking to strengthen tripartism. Rep. Palmones also moved that
‘members present be made as co-authors



v.

Vi.

DELIBERATION ON HB NO. 5934, MEASURE SEEKING TO STRENGTHEN CONCILIATION —
MEDIATION AS A VOLUNTARY MODE OF DISPUTE SETTLEMENT FOR ALL LABOR CASES,
AMENDING FOR THE PURPOSE THE LABOR CODE OF THE PHILIPPINES, AUTHORED BY REP.

‘EMI ONG-——— a

Upon motion of Rep. Palmones, duly seconded by Rep. Villarica, the Committee approved the bill seeking
conciliation-mediation as a voluntary mode of dispute settlement for all labor cases, amending for the
purpose, Art, 228 of PD 442 (Labor Code of the Philippines). Rep. Palmones moved that members present
bbe made as co-authors,

DELIBERATION ON HB Nos. 4718 & 6402, MEASURES SEEKING TO STRENGTHEN REPUBLIC
ACT 8759 OR THE PUBLIC EMPLOYMENT SERVICE OFFICE (PESO), AUTHORED BY REPS.
BENITEZ AND VILLARICA, RESPECTIVELY

Upon motion of Rep. Palmones, duly seconded, the Committee approved the bills seeking to strengthen
RA 8759 or PESO. Rep. Palmones also moved that members present be made as co-authors.

The Committee meeting was suspended at 11:00 a.m and resumed its deliberation at 1:30 p.m with
Rep. Romeo Jalosjos Jr. presiding, .

VI. DELIBERATION ON HB No. 6110, MEASURE SEEKING TO AMEND SECTION 132 OF THE
-—-LABOR-CODE_BY_PROVIDING_CHILDREN-OF-MALE-EM! S SERY

VILL.

BENEFITS, AUTHORED BY REP. BAGASINA

Upon motion of Rep. Jesus Crispin Remulla, duly seconded by Rep. Palmones, the Committee approved
the bill seeking to amend Sec. 132 of the Labor Code by providing children of male employees access to
nursery benefits.

DELIBERATION ON HB No. 4027, MEASURE SEEKING TO PROMOTE EMPLOYMENT
OPPORTUNITIES IN REAL ESTATE SERVICE IN THE PHILIPPINES, AMENDING FOR THE
PURPOSE CERTAIN PROVISIONS OF RA 9646, OTHERWISE KNOWN AS THE REAL ESTATE
‘SERVICE ACT OF THE PHILIPPINES, AUTHORED BY REP. REMULLA

Upon motion of Rep Remulla, duly seconded by Rep. Palmones, the Committee approved the bill
seeking to promote employment opportunities in real estate service in the Philippines amending cer
provisions of RA 9646 (The Real Estste Service Act of the Philippines). Rep. Palmones also moved that
he be made as co-author of the bill.

ADJOURNMENT

There being no other matters to discuss, the meeting adjourned at 3:15 p.m

Prepared

(SGD.) LOLA FEBE S. PIMENTEL

SLSO IL

(SGD.) CELESTE S. DE CASTRO

Committer

(SGD.) EMIL L. ONG
Chairman



FACT SHEET

House Bill No. 4027
(As Approved by the Committee on November 14, 2012)

AN ACT
PROMOTING EMPLOYMENT OPPORTUNITIES IN REAL
ESTATE SERVICE IN THE PHILIPPINES, AMENDING FOR THE
PURPOSE SECTIONS 2, 31 AND 32 OF REPUBLIC ACT
NUMBER 9646, OTHERWISE KNOWN AS THE REAL ESTATE
SERVICE ACT OF THE PHILIPPINES

Introduced by: REPS. JESUS CRISPIN C. REMULLA, ROMEO M. JALOSJOS, JR.,
& ANGELO B. PALMONES

Committee Referral: COMMITTEE ON LABOR AND EMPLOYMENT
Committee Chairperson: REP. EMIL L. ONG
OBJECTIVE:
+ To promote employment opportunities in the real estate sector.
KEY PROVISIONS:

+ Requires relevant education, instead of completion of two (2) years of college,
in addition to training and seminars, for a real estate salesperson to qualify as
such

‘Requires the Technical Education and Skills Development Authority (TESDA)
to formulate, in collaboration with relevant industry associations, the training
regulations for real estate salespersons

« Removes the provision that there shall be at least one (1) licensed real estate
broker for every twenty (20) accredited salespersons

RELATED LAW:

© Sections 2, 31, and 32 of R.A. 9646, otherwise known as the “Real Estate
Service Act of the Philippines”