THIRTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
.
.
 
1
.
 
S. No. $20 
INTRODUCED BY HON. MANUEL B. VILLAR, JR. 
EXPLANATORY NOTE 
The Proposed measure seeks to systematize and professionalize the real estate industry in 
the Philippines. Despite the tremendous growth of the industry and its impact on the economy, it 
is unfortunate that no comprehensive law has been enacted to regulate it. 
For this reason, the public have become victims to anomalous real estate transactions in a 
rising frequency with no adequate remedy. Unscrupulous real estate brokers, developers, and 
dealers have gone unpenalized. 
In order to safeguard public interest, there is a need to consolidate and integrate the laws, 
rules and regulations relative to real estate practice. There is also a need to create a Real Estate 
Commission, with appropriate duties, powers and functions, that will allow it to regulate, 
supervise and oversee' the 'industry. When these are done, the buying public as well as the 
government can finally be protected against unlawful and unconscionable transactions. 
A 
...' 
__.... 
MANUEL B. V 
LAR, JR. 
T' 


THIRTEENTH CONGRESS OF THE 
"04 JUE~ 
3Q PKIIX 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
SENATE 
S. No. 
820 
INTRODUCED BY HON. MANUEL B. VILLAR, JR. 
AN ACT REGULATING THE PRACTICE OF REAL ESTATE SERVICE IN THE 
PHILIPPINES, CREATING A REAL ESTATE COMMISSION AND APPROPRIATING 
FUNDS THEREFOR 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assenz bled. 
SECTION I .  Short Title. - This Act shall be known as the "Real Estate License Act of the 
Philippines." 
SEC. 2. Declaration of Policy. - The Estate recognizes the need to professionalize and regulate 
real estate services in the country as a vital component of economic development. For this 
purpose, real estate service practitioners shall be under the supervision and control of a Real 
Estate Commission with quasi-judicial powers to regulate, curtail and penalize acts or practices 
prejudicial to the public interest. 
SEC. 3. Definition of Terms, - As used in this Act, the following terms shall mean: 
(a) "Real estate" - refers to the land, building, or other improvements permanently attached or 
annexed to the land, including the rights and interest therein; 
(b) "Real estate development project" - the development of land for residential, commercial, 
industrial, agricultural, institutional or recreational purposes, or any combination or 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 consist of the following: 
(1) Real estate salesperson - a natural person who performs services under the direct supervision 
and control of a real estate broker any or all the functions of the latter, for or in expectation of a 
share in the commission, fee, compensation, or other valuable consideration of the broker and 


who is separately licensed as such under the rules and regulations of the Real Estate 
Commission; 
(2) Real estate broker. - any person, natural or juridical, who on behalf of another person and for 
or in expectation of a fee, commission, compensation or other valuable consideration, shall 
perform any of the following acts: offers, advertises, solicits, lists, promotes, mediates, negotiates 
or affects a sale, purchase exchange, mortgage, lease, joint venture or other transaction in real 
estate or any interest therein; 
(3) Real estate appraiser - a natural person who is a licensed real estate broker and who, for and 
in expectation of a fee, compensation or other valuable consideration, offers to render or renders 
services as an expert on real estate values. 
(4) Real estate consultant - a natural person who is a licensed real estate broker and who, for and 
in expectation or a fee compensation or other valuable consideration, offers or renders 
professional advise and judgement on: (a) the acquisition, enhancement, preservation, utilization 
or disposition of lands or improvements thereon; and (b) the conception, planning, management, 
and development of realty projects. 
ARTICLE I1 
REAL ESTATE COMMISSION 
SEC. 4. Real Estate Commission. - A "Real Estate Commission" is hereby created which shall be 
composed of a chairman and two (2) Deputy Chairmen who shall be appointed by the President, 
and the tenure of office of the Chairman shall be for five (5) years, and the Deputy Chairmen for 
four (4) years and three (3) years respectively. 
To be eligible for office as member of the Commission, he shall be thirty-five (35) years of age, 
of good moral character and a holder of a four-year Bachelor's degree: Provided, that at least two 
(2) members shall have been engaged in the real estate business either as real estate broker, 
appraiser or consultant for at least ten (1 0) years. 
The Chairman shall receive an annual salary of Three hundred Thousand Pesos (P300,OOO.OO) 
and the members shall receive an annual salary of Two Hundred Forty-Thousand Pesos 
(P240,OOO) each. 
SEC. 5. 
following powers and functions: 
Powers and Functions of the Commission. - The Commission shall exercise the 


(a) To provide comprehensive policy guidance for the promotion and development of the real 
estate industry; 
(b) To initiate, integrate and recommend such rules and regulations, standards, guidelines and 
procedures as may be necessary for the growth and effective enhancement of the real estate 
profession; 
(c) Gather and compile statistical data required in the effective implementation of this Act; 
(d) Draw up recommendations to government agencies or departments concerned for the purpose 
of rationalizing and coordinating real estate transactions; 
(e) To promulgate such rules and regulations as may be necessary to implement effectively the 
provisions of this Act; 
(f) To assess and fix the rate of reasonable regulatory license fees; 
(9) To administer oath and affirmation and to issue subpoena and subpoena duces tecum in 
connection with any investigation of which it has jurisdiction under this Act; 
(11) To appoint, discipline and/or remove subordinate officials or employees, and to determine the 
compensation of its technical staff or personnel: Provided, That except as to its technical staff 
and such other position as the Commission may declare to be highly technical or primarily 
confidential, all positions under the Commission are subject to the provisions of the Civil Service 
Law and Rules, but are exempt from the regulations of the Wage and Position Classification 
Office: 
(i) After notice and hearing, revoke, cancel or suspend the exercise or enjoyment of license and 
benefits granted under this Act; 
(j) To monitor all forms of advertisements, announcements, signboards, billboards, pamphlets, 
brochures and other of similar nature concerning real estate and to provide every possible 
safeguard to protect legitimate and licensed real estate service practitioners and in pursuance 
thereto it shall exercise its judicial and police powers to finally and completely eradicate the 
pernicious practices or 'unauthorized and unlicensed individuals engaged in real estate service 
practice; 
(IC) To screen, issue and monitor permits issued to accredited organizations of real estate 
professionals in the industry; and to accredit seminars and real estate instructors for the purpose 
of upgrading the quality and knowledge of the profession; and to conduct examination as a 
prerequisite in the practice of the profession; 


(1) To require all transactions involving the sale, lease, exchange or mortgage of real estate to be 
certified by a duly licensed real estate broker and which in the case of an owner or developer of a 
real estate development project shall be a requirement for an application for Lic'ense To Sell with 
the Housing and Land Use Regulatory Board (HLURB) and registration with toe Register of 
Deeds, except in exempt transactions as provided under Section 18; 
(in) To have exclusive jurisdiction in determining and integrating all rules and regulations with 
respect to the payment of government fees, dues or charges in relation to the privilege to practice 
the profession; 
(11) 
To adopt a national code of ethics to be strictly observed by all licensed real estate 
salespersons, brokers, appraisers and consultants. 
SEC. 6. License Requirement. - No natural nor juridical person or a division or department 
thereof, shall directly or indirectly engage in real estate services practice or represent himself or 
itself as a real estate salesperson, broker, appraiser or consultant without having first secured the 
corresponding license from the Commission in accordance with this Act and the person or 
persons authorized to act as such for any juridical person in respect to real estate services shall all 
be duly licensed real estate service practitioners. 
SEC. 7. Application for License. - Any natural person duly qualified and who has successfully 
passed the examination required by this Act for real estate brokers, appraisers, consultants, may 
apply for a license as real estate broker, appraiser, or consultant or forms duly prescribed by the 
Commission. 
Any natural person duly qualified under Section 8 of this Act may apply for a license as real 
estate salesperson and shall at all times be under the direct supervision and control of a real estate 
broker. 
SEC. 8. 
Qualifications. - 
Any applicant for examination for license to engage in the 
real estate profession shall, at the time of the filing of his application be: 
(a) A Filipino citizens; 
(b) At least twenty-one years old; 
(c) Of good moral character; and 
(d) A holder of a bachelor's degree from a duly recognized school, university or institution and he 
must lime attended and completed a real estate service seminar given by accredited entities for 
those applying as real estate brokers salespersons, the applicant must be a holder of a high school 


diploma in a duly recognized school, university or institution and he must have attended and 
completed a real estate service seminar given by accredited entities. 
(e) Must not have been convicted of a crime where fraud in an essential element: Provided, That 
an applicant for the licensure examination for real estate broker must submit a certification under 
oath that he has three (3) years experience as licensed real estate salesperson jointly certified by 
the licensed real estate brolerh with whom he has practiced for such period and the specific 
dates of employment; for real estate appraisers, certification under oath of five ( 5 )  years 
experience as a licensed real estate broker: Provided, ftirther, That an applicant for the licensure 
examination for real estate consultants must certify under oath that he has at least ten (10) 
experience as a licensed real estate broker and at least five (5) years experience as real estate 
appraiser. 
SEC. 9. Scope of Examination. An examination . shalL be given to the licensure applicants for 
real estate brokers, real estate appraisers or real estate consultants, which shall include 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 
locatioii 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 aspects of sale, mortgage, lease, documentation and registration; 
agrarian reform law; code of ethics; and other relevant subjects as may be determined by the 
Board. 
(b) For real estate appraisers - General real estate information; theories and principles in practical 
appraisal mathematics; appraisal report writing; laws affecting real estate appraisal; income and 
investment problems; appraisals of machinery and equipment; case studies; agrarian reform law; 
code of ethics; and other relevant subjects as may be determined by the Commission. 
(c) For real estate consultants - Written and/or oral examination on reinvestment/feasibility 
studies; design; process innovation; constructiodinstallation and other technical services on 
special studies; agrarian reform law; code of ethics; and other relevant subjects as may be 
determined by the Commission: Provided, however, That applicants shall, at the time of filing 
the application for real estate consultant examination, must have at least ten (10) years, 
experience in his field of specialization. 
SEC. 10. Duration of License. - All licenses shall be valid for a period of three (3) year and 
renewable in accordance with the rules and regulations of the Commission. 


SEC. 11. Rating in the Examination. - In order that candidate may be deemed to have 
successfully passed the examination, he must have obtained an average of at least seventy percent 
(70%) in all subject, with no rating below fifty percent (50%) in any subject. 
SEC. 12. License Numbers. - The Commission shall assign a permanent license number for each 
registered salesperson., broker, appraiser and consultant, which number shall be indicated in their 
respective pocket cards, letterheads, dry seals, signboards, billboards, advertisements, brochures, 
pamphlets and all other documents or -materials released by a real estate service practitioner in 
the exercise of his profession. As to salespersons, the license number of the real estate broker 
who has direct supervision and control over them shall be indicated. 
SEC. 13. Pocket Cards. - The Commission shall prepare, issue, and deliver to each licensed real 
estate service practitioner a pocket card in such form and manner as the Cornmission shall 
prescribe, but which shall contain the name, business address and license number of the license 
and in the case of a real estate salesperson, the name, business address and license number of the 
broker who has direct supervision and control over him and shall certify that the person whose 
name appears thereon is a licensed real estate service practitioner. Such cards shall be shown by 
the licenses to'all parties at the commencement of any transaction. In case of loss, destruction or 
damage, the Commissioner may, upon submission of an affidavit of loss, issue a duplicate card 
upon payment of a fee. 
SEC. 14. Display of License in the 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 certified true copies of the 
licenses of all as real estate service practitioners employed by such office. 
SEC. 15. Procedure in the Suspension and/or Revocation of License. - 
(a) The Commission shall motu propio or upon verified complaint, investigate and decide on 
matters involving the implementation and/or violation of the provisions of this Act and such 
investigation shall be mandatory when from the allegations of the complaint and the answer of 
the respondent, including the supporting documents, the merits of the case cannot be decided 
without conducting an investigation even if the respondent does not request a formal 
investigation. In no case shall the ruling of the Commission exceed ninety (90) days from the 
date the complaint is filed, except in exceptionally meritorious cases. 
(b) The direct evidence from the complainant and the respondent shall coiisist of the sworn 
statement and documents submitted in support of the complaint or answer as the case may be, 
without prejudice to the presentation of additional evidence deemed necessary but was 
unavailable during the time -of -filing of the complaint or answer, upon which the cross 


examination by respondent and complainant shall be based. Following the cross-examination, 
there may redirect and recross-examination when deemed necessary. . 
(c) Either party may avail or service of counsel and may require the attendance of witnesses and 
the production of documentary evidence in his favor through the compulsory process of subpoena 
or subpoena duces tecum; 
(d) The investigation shall be conducted for the purpose of ascertaining the truth and without 
necessarily adhering to technical rules of judicial proceedings. 
(e) Any complain filed under this Act is without prejudice to civil or criminal actions filed in 
regular courts for the same acts. 
SEC. 16. Appeals. 
(a) Appeals shall be made by the party adversely affected by the decision to the office of the 
President within fifteen (15) days from receipt of the decision unless a petition for 
reconsideration is filed, which petition shall be decided within fifteen (15) days. Notice of the 
appeal shall be filed with the Cominission which shall forward the records of the case together 
with the notice the notice of appeal to the Office of the President or his- duly authorized 
representative within fifteen (15) days from filing of the notice of appeal, with its comment, if 
any. The notice of appeal shall specially state the date the decision was appealed from as well as 
the date of receipt thereof. It shall also set foi-th clearly the grounds relied upon in making the 
appeal from decisions; 
(b) A petition for consideration shall be based only on any of the following grounds: 
(1) New evidence discovered which materially affects the decision rendered; 
(2) The decision is not supported by the evidence or record; or 
(3) Errors of law or irregularities were committed which are prejudicial to the interest of the 
respondent: 
Provided, That only one petition for reconsideration shall be entertained. 
SEC. 17. Preventive Suspension & Others Measures. - The Commission may preventively 
suspend may license under this Act pending as investigation and/or decision, if the charge against 
any license involves misrepresentation, dishonesty or grave misconduct or fraud and there is 
strong evidence to believe that the respondent is quality of the charges which would warrant the 
revocation of his license. 


At any time after the commencement of an administrative action but prior to the resolution 
thereof, the Commissioner when so warranted by the circumstances, may issue preliminary 
and/or preventive orders such as but not limited to, temporary cease and desist orders to prevent 
and/or restrain the commission of acts, which would probably work injustice to, or prejudice the 
rights of the Complainants or any other person or entity involved, and/or which may render any 
action, order of judgment ineffectual. 
ARTICLE I11 
PRACTICE OF REAL ESTATE SERVICE 
SEC. 18. Acts Constituting the Practice of Real Estate Practice. - Any single act or transaction 
embraced within the definitions contained in Section 3 hereof, shall constitute as real estate 
service, except when the same is performed by: 
(a) Any natural or juridical person who directly performs by himself or itself any of the above- 
mentioned acts with respect to his or its own property except those covered by.Section 22. 
(b) Any receiver, trustee or assignee is insolvency proceedings; 
(c) Any person acting pursuant to a court order; 
(d) Public officers in the performance of their official duties; 
(e) Officials and employees of banks, insurance companies, savings and loan associations or 
other financial institutions with respect to the foreclosure and eventual disposition of their 
acquired assets and only while they are employed by such bank, insurance company, savings and 
loan association or financial institution. 
SEC. 19. Unauthorized Practice. - No person, whether natural or juridical, nor any of its 
employees or associates shall be allowed to practice the real estate profession in the Philippines 
without first obtaining a license under the provisions of this Act. Any person, whether natural or 
juridical, found guilty of violating this provision or who shall transact with an unlicensed 
practitioner shall be subject to the penalties provided in Section 29. 
SEC. 20. Branch Offices of Real Estate Service Practitioners. - Branch offices of real estate 
brokers, appraisers or consultants must be manned by a duly licensed real estate salesperson, 
broker, appraiser or consultant as the case may be and must be registered as such with the 
Commission 
SEC. 21. Real Estate Salesperson under Supervision and Control of Brokers. - No salesperson 
can negotiate, mediate or transact any real estate transaction for an in behalf of a broker without 


first securing a license as salesperson under the rules of the Commission. A salesperson cannot 
by himself be a signatory to a written agreement involving a real estate transaction unless the real 
estate broker who has direct control and supervision over him is also a signatory thereto. A 
broker shall be guilty of violatiiig this act for having a salesperson who has not secured the 
required license, prior to employment. 
At no time shall the number of salesperson under a broker exceed twenty (20) and a list of the 
salespersons under the broker shall be submitted to the Commission and updated regularly. In the 
event a salesperson ceases to be employed with a broker, the same must be reported by the broker 
within thirty (30) days from cessation of relationship. 
No salesperson shall receive or demand a fee, commission or compensation of any kind from any 
person, other than the duly licensee real estate broker and 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 broker unless 
there was actual knowledge of such violation or the broker retains the benefits, profits or 
proceeds of a transaction wrongfblly negotiated by the salesperson. 
SEC. 22. Juridical Persons a Real Estate Service Practitioners. - 
(a) No partnership or corporation shall engage in real estate service practice unless it is duly 
licensed by the Commission and registered with the Securities and Exchange Cornmission 
(SEC), and the persons authorized to act as such for the partnership or corporation are all duly 
licensed as salesperson, 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) Division or departments of corporations and partnerships engaged in marketing or selling any 
real estate development project in marketing or selling any real estate development project in the 
reguIar course of business must be headed by a full-time licensed real estate broker and all 
salespersons in such division, or department must be separately licensed as salespersons under 
the rules of the Commission. There shall at least be one (1) licensed real estate broker for every 
twenty (20) licensed salespersons. 
In case of resignation or termination from employment of a real estate service practitioner, the 
same shall be reported by the employer to the Commission within a period not to exceed thirty 
(30) days from the date of the 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 of consultants on commission basis to perform real estate 
services and the later shall be deemed independent contractors and not employees of such 
corporation or partnership. 
Sec. 23. Duties and Responsibilities of Licensed Salesperson, Brokers, Appraisers and 
Consultants. - All licenses, in the practice of the.profession, are required to: 
(a) Present their pocket cards to all parties at the start of every transaction and inform them of 
any vital information affecting his or its license; 
(b) Disclose all material facts concerning such real estate transaction; 
(c) Undertake an accurate verification of all land titles, survey plans, technical description, 
transferability of ownership or possession, construction plans and specifications, zoning 
regulations, rules and laws, appraisals, assessed values and actual market valuation, before 
promoting or negotiating any transaction on any particular real estate or real estate development 
project; 
(d) Promote the fairest agreement among and between the parties to any real estate transaction; 
(e) Authenticate every contract negotiated by him or for and in behalf of his partnership or 
corporation with his personal signature and personal seal; 
(f) Advice the parties of the amount of taxes, fees and other assessment due the government in 
connection with said transaction; 
(8) Keep a registry book in the form prescribed by the Commission which shall contain a record 
of all transactions consummated by him specifying the nature of the property, assessed value, 
actual consideration for the contract, and nature of transction, whether a sale, exchange, 
moltgage, lease, joint venture or the like; 
(11) Submit an annual report of all his transactions to the Commission. 
SEC. 24. Grounds for Suspension and Revocation. - The Real Estate Commission may, motu 
propio, or upon verified complaint in writing by any person, investigate the activities of any real 
estate salesperson, broker, appraiser and consultant and after due notice and hearing, suspend or 
revoke the license for such period as the Commission may deem proper, when the license is 
found guilty of any of the following activities; 
(a) Procuring license or pocket card through fraud and deceit and making false, fraudulent or 
deceitful statement of facts in his application for license or forging any signature therein; 


(b) Malting any false and deceitfd promise directly or through prospectus, advertisements, 
pamphlets, brochures or billboards which are likely to influence persuade or induce any person to 
enter into a transaction; 
(c) Malting any substantial misrepresentation or non-disclosure of a material fact; 
(d) Any conduct in a real estate transaction which demonstrates gross and evident bad faith, 
dishonesty, untrusthworthiness or incompetence; 
(e) Paying or accepting, giving or charging any undisclosed commission, rebate, compensation or 
profit; 
(0 
Procuring or helping to procure consent to or effecting the consummation of any real estate 
transaction or engagement of this service by means of bribery or corruption, fraud, deceit, 
intimation, violence or immoral offerings; 
(8) Inducing any real party to a real estate transaction to break his contract for the purpose of 
substituting in lieu thereof a new contract with the sane or different principal where such 
substitution is motivated by personal gain of the licensee; 
(11) Misrepresenting himself as a member of an accredited organization of real estate service 
practitioners and using trade name; insignia or membership of any real estate organization, 
profession or trade of which the licensee is not a member 
(I) Splitting or offering or agreeing to pay, split or rebate any commission, fee or valuable 
consideration, directly or indirectly with any person who is not a duly licensed real estate broker 
or real estate salesperson for cooperating, assisting or endorsing a transaction or engagement of 
his services; 
(i) Conviction of a crime where fraud is an essential element; 
(lt) Dishonesty or engaging in fraudulent representations in any written document including any 
prospectus, advertisement, brochure, pamphlet, billboard and similar literature concerning any 
real estate transaction or project'; 
(1) Acting for more than one party to a transaction without the knowledge and consent ii writing 
of all parties; 
(m) Failing to exercise adequate supervision over the activities of his licensed employees; 
(11) Violation of any of the provisions of this Act or order of the Commission of which the broker 
has notice. 


SEC. 25. Certificate of Transaction. - The parties to a real estate transaction involving sale or 
exchange shall certify under oath in a form prescribed by the Commission that real estate broker 
has negotiated and mediated in the consummation, and that the consideration and all material 
facts contained in the deed of conveyance are true and correct: Provided however, That in cities 
and provinces where there are no licensed real estate brokers, or that the parties have directly 
negotiated and consummated the transaction with each other without the mediation of real estate 
broker, the certification shall estate the fact and shall be made under oat before the Register of 
Deeds of the city or province where the real estate is located: Provide also, That in the case of 
owners, developers or joint venture partner of real estate project, the certificate of transaction 
shall be a requirement for an application for License to Sell. 
No deed of conveyance in any real estate transaction mentioned herein shall be accepted for 
registration by the Registry of Deeds unless the aforesaid certification of the parties and the real 
estate brokers together with 'certification of payment of withholding tax on income value added 
tax, capital gains tax and other fees and taxes imposed by the Government are,present and filed 
accordingly. 
SEC. 26. Code of Ethics for Real Estate Service Practitioner. - The Board shall adopt the code of 
ethics for real estate service practitioners which shall be promulgated by the integrated national 
organization of real estate service practitioners. 
ARTICLE V 
FINAL PROVISIONS 
SEC. 27. - Transitory Provisions. - Those who, on the date of effectivity of this Act, are already 
licensed as real broker, real estate appraisers or real. estate consultant by the Bureau of Domestic 
Trade shall be registered and issued by the Board and the Commission a certificate of registration 
and a professional license without taking the prescribed examination: Provided, That they shall 
file their applications in the form prescribed for the purpose not later than one (1) year from the 
date of the effectivity of this Act: Provided, further, That the renewal of their licenses is governed 
by the provisions of this Act. 
All natural or juridical persons which as of the date of the effectivity of this Act are unlicensed 
real estate service practitioners shall obtain their licenses not later than one (1) year from the date 
of the effectivity of this Act. 
SEC. 28. Appropriations. - Such sums as may be necessary to carry out the provisions of this Act 
shall be included in the General Appropriations Act of the year following its enactment into law 
and thereafter. 


SEC. 29. Penal Provisions. - All cases of violations of this Act committed by any person whether 
natural or juridical including violations of implementing rules and regulations, shall be meted the 
penalty of a fine of not less than One Hundred Thousand Pesos (P100,OOO.OO) or imprisonment 
of not less than two (2) years, or both such fine and imprisonment upon the discretion of the 
court. 
hi case the violation is committed by a juridical person, in addition to the fine imposed by the 
preceding paragraph on the juridical person, the responsible officer or officers who shall consent 
to or shall knowingly tolerate such violations shall be directly liable for the acts of -his 
subordinates and shall be criminally liable as a co-principal, and shall be meted a fine of not, less 
than One Huudred Thousand Pesos (1 00,000.00) 
SEC. 3 1. Separability Clause. If any provision, or part hereof, is held invalid or unconstitutional, 
the remainder of the law or the provision not otherwise affected shall remain valid and 
subsisting. 
SEC. 32. Repealing Clause. presidential Decree No. 1602 is hereby amended and any law 
presidential decree or issuance, executive order, letter of instruction, administrative, rule or 
regulation contrary to, or inconsistent with, the provisions of this Act is hereby repealed, 
modified or amended accordingly. 
SEC. 33. Effectivity. This Act shall take effect fifteen (1 5) days after its publication in at least 
two (2) newspapers of general circulation. 
Approved,