FOURTEENTH CONGRESS OF THE REPUBLIC ) 
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OF THE PHILIPPINES 
1 
First Regular Session 
1 
Introduced. by Senator Biazon 
EXPLANATORY NOTE 
Real property, as a major source of government revenues, has a vast 
potential for greater contribution to gross domestic income which remains to be 
fully tapped. Real estate practitioners perform highly technical work which 
provides the basis for decisions on property sales, expropriations, compensation, 
mortgage financing, and assessment of taxes, as well as in the development of 
the real estate industry in the country. Therefore, they play a vital role in tapping 
into this potential and promoting national progress. 
However, real estate service practice needs to be strengthened and given 
its rightful recognition as a profession. It should be appropriately regulated and 
provided institutionalized government support to develop a corps of highly 
respected, technically 
competent, and disciplined 
real estate 
service 
practitioners, knowledgeable of internationally accepted standards and practice 
of the profession. The prevailing negative perception of the work of many 
appraisers and assessors as hardly professional and tainted with various 
considerations serves as a setback for the growth of the real estate market as a 
factor for national development. 
Presently treated as a trade, real estate service practitioners (appraisers, 
brokers and consultants) are under the supervision of the Department of Trade 
and Industry (DTI) through the Buteau of Trade Regulation and Consumer 
Protection (BTRCP), in the exercise of its consumer regulation functions. This is 
an incongruous arrangement that has not been conducive to effective regulation 
of the real estate practice as the DTI itself considers this function extraneous to 
its mandate. Neither does it, have the expertise and the staff to competently 
perform the regulatory functions for this industry. 
h 
The Real Estate Service Act (RESA) seeks to address these problems. It 
provides for the professionalization of the real estate service practice by 
transferring the regulatory function from the DTI to the Professional Regulation 
Commission (PRC) to be exercised by a Professional Real Estate Service Board 
(PRESB). The Board will be responsible for the examination, registration, 
licensing, discipline, and ensuring continuing education and training for real 
estate service practitioners. It will monitor and have oversight of the industry 
practice, including the Code of Ethics. Government appraisers and assessors 
shall be covered by this professionalization. 
The PRESB will be serviced by the secretariat pool of the Professional 
Regulation Commission (PRC) and provided an office space within the PRC. 


The Bill has undergone extensive consultation with, and have the 
unqualified support of a broad group of stakeholders in the private sector (the 
Property Appraisers Association of the Philippines (PARA), 
the Institute of 
Philippine Real Estate Appraisers (IPREA), the Real Estate Council of the 
Philippines (RESCOP), the Capital Markets Development Council (CMDC), the 
Financial Executives of the Philippines (FINEX), etc., as well as in the 
government (the local government assessors, local chief executives, the Bangko 
Sentral ng Pilipinas (BSP), the DTI, the PRC, among others). 
In view of the foregoing, approval of this bill is earnestly sought. 
Senator 


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FOURTEENTH CONGRESS OF THE REPUBLIC ) 
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( '\i';y 
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First Regular Session 
1 
, .  
OF THE PHILIPPINES 
) 
Introduced by Senator Biazon 
AN ACT 
REGULATING THE PRACTICE OF REAL ESTATE SERVICE IN THE 
PHILIPPINES CREATING 
FOR THE 
PURPOSE 
A 
PROFESSIONAL 
REGULATORY BOARD OF REAL ESTATE SERVICE, APPROPRIATING 
FUNDS THEREFOR AND FOR OTHER PURPOSES 
Be it enacted by tbe Senate and House of Representatives of the 
Philippines in Congress assembled: 
ARTICLE I 
SEC. 1. Title. - This Act shall be known as the "REAL ESTATE SERVICE ACT 
OF THE PHILIPPINES." 
SEC. 2. Dedaration of Policy. - The State recognizes the vital role of real estate 
service practitioners in the social, political and economic development of the 
country by promoting the real estate market, stimulating economic activity and 
enhancing government income from real property-based transactions. Toward 
this end and to promote the growth of the real property industry, 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 technically and 
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 
valuationlappraisal; specifically, one who possesses the necessary 
qualifications, ability, and experience to execute or direct the 
valuationlappraisal of real or personal property; 
I 


(b) Assessor - a government officer who conducts appraisal and assessment 
(c) Real estate - refers to the land and all those items which are attached to 
the land. It is a physical and tangible entity, together with all the addition 
on, above, or below the ground. 
of real properties for taxation purposes. 
(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 Property - includes all the rights, interests, and benefits related to 
(9 Real estate service practitioners shall refer to and consists of the 
the ownership of real estate; 
following: 
1) Real estate consultant - a duly registered and licensed natural person 
who, for a fee, compensation or other valuable consideration, offers or 
renders professional advise and judgment on: (a) the acquisition, 
enhancement, preservation, utilization or disposition of lands or 
improvements thereon; and (b) the conception, planning, management, 
and development of realty projects. 
2) Real estate appraiser - a duly registered and licensed natural person 
who, for a fee, compensation or other valuable consideration, performs 
or renders, or offers to perform or render services in estimating and 
arriving at an opinion, on real estate values, such services of which 
shall finally be rendered by the preparation of the report in acceptable 
written form. 
3) Real estate broker - a duly registered and licensed natural person who, 
for a fee, commission or other valuable consideration, acts as an agent 
of a party in a real estate transaction to offer, advertise, solicit, list, 
promote, mediate, negotiate, or effect the meeting of the minds on the 
sale, purchase, exchange, mortgage, lease, or joint venture or other 
similar transactions on real estate or any interest therein. 
4) Real estate salesperson - a duly registered and accredited natural 
person who performs for and in behalf of a registered real estate 
broker for or in expectation of a share in the commission, fee, 
compensation or other valuable consideration. 
2 


ARTICLE I1 
PROFESSIONAL REGULATORY BOARD OF REAL ESTATE SERVICE 
SEC. 4. Creation and Composition of the Board. - To promote the objectives 
of professionalizing the real estate service practice, there is hereby created a 
Professional Regulatory Board of Real Estate Service, hereinafter referred to as 
the Board, under the supervision and administrative control of the Professional 
Regulation Commission, hereinafter referred to as the Commission. The Board 
shall be composed of a Chairperson and four (4) members who shall be 
appointed by the President of the Philippines from a list of three (3) 
recommendees for each position, chosen and ranked by the Commission from a 
list of five nominees for each position submitted by the accredited and integrated 
professional organization(s) of real estate service practitioners: Provided, that 
two (2) of the members shall represent the government assessors and 
appraisers. 
The Board shall be organized within thirty (30) days from the effectivity of 
this Act. 
SEC. 5. Powers and Functions of the Board. - The Board is hereby vested the 
following powers and functions: 
(a) Provide comprehensive policy guidance for the promotion and 
development of the real estate service practice as a profession both in the 
government and in the private sector; 
(b) Conduct licensure examinations for the practice of the real estate service 
profession and prescribe the appropriate syllabi of the subjects for 
examination; 
(c) Issue, suspend, revoke or reinstate, after due notice and hearing, 
certificates 
of 
registrationlprofessional 
licenses 
or 
professional 
identification cards for the practice of the real estate service; 
(d) Maintain a comprehensive and updated register of licensed real estate 
(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; 
professionals; 
(9 Hear or investigate any violation of this Act, its implementing rules and 
regulations, and the code of ethics 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; 
3 


(9) Safeguard and protect legitimate and licensed real estate service 
practitioners, and, in coordination with the accredited and integrated 
professional organization of real estate practitioners, monitor all forms of 
advertisements, announcements, signboards, billboards, pamphlets, 
brochures and others of similar nature concerning real estate, and, where 
necessary, exercise its judicial and police powers to finally and completely 
eradicate the pernicious practices of unauthorized or unlicensed 
individuals. 
(h) 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 appraisal or valuation, and to see to it that these 
requirements, including the employment of qualified faculty members, are 
properly complied with; 
(i) Promulgate, administer and enforce rules and regulations necessary for 
(j) Supervise and regulate the registration, licensure and practice of real 
estate service in the Philippines; 
(k) Administer oaths and affirmations; 
(I) Adopt an official seal of the Board; 
(m)Evaluate periodically the status of appraisal/valuation education and 
recommend and/or adopt measures to upgrade and maintain its high 
standard; 
(n) Prescribe guidelines and criteria for the Continuing Professional Education 
(CPE) program for real estate service practitioners in consultation with the 
accredited and integrated professional organizations of real estate service 
practitioners; 
(0) 
Screen, issue and monitor permits to organizations of real estate 
professionals in the conduct of 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; 
(p) Monitor and supervise the activities of the accredited and integrated 
professional organizations and other associations of real estate service 
practitioners; and 
(9) Discharge such other powers, duties and functions, as the Commission 
may deem necessary to carry out the provision of this Act. 
carrying out the provisions of this Act; 
4 


The policies, resolutions, and rules and regulations issued or promulgated by 
the Board shall be subject to the review and approval of the Commission, 
However, the Board's decisions, resolutions or orders rendered in an 
administrative case, which are not interlocutory, shall be subject to review by the 
Commission only if on appeal. 
SEC. 6. Qualifications of the Chairperson and Members of the Board. - The 
Chairperson and members of the Board shall, at the time of their appointment, 
possess the following qualifications: 
(a) A citizen and resident of the Philippines; 
(b) A holder of at least a relevant bachelor's degree; 
(c) An active licensed practitioner of the real estate service, either as real 
estate appraiser or consultant, for at least ten (IO) continuous years prior 
to hislher appointment; 
(d) A bona fide member of the accredited and integrated professional 
organization of real estate service practitioners but not an officer at the 
time of hislher appointment. 
(e) Neither be a member of the faculty of an institute, school or college of real 
estate service nor have any pecuniary interest, direct or indirect, in any 
institution or association where review classes or lectures in preparation 
for the licensure examination are being offered or conducted; and 
(9 Of good moral character and must not have been convicted by final 
judgment by a competent court of a criminal offense involving moral 
turpitude. 
SEC. 7. Term of Office. - The chairperson and members of the Board shall hold 
office for a term of three (3) years from the date of their appointment and until 
their 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 members of the Board may be reappointed for a second 
term but in no case shall hekhe serve continuously for more than six (6) years. 
Any vacancy in the Board shall be filled for the unexpired portion only of the term 
of the member who vacated the position. On the constitution of the first Board, 
the chairperson and members of the Board shall automatically be registered and 
issued certificates of registration/professionaI license and 
professional 
5 


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 members of the Board shall receive 
compensation and allowances comparable to the compensation and allowances 
received by the chairperson and members of existing professional regulatory 
boards under the Commission as provided for in the General Appropriations Act. 
SEC. 9. Removal of the Chairperson and Members of the Board. - The 
Chairperson or any member of the Board may be suspended or removed by the 
President of the Philippines after investigation and upon recommendation of the 
Commission for neglect of duty, abuse of power, oppression, incompetence, 
unprofessional, unethical, immoral or dishonorable conduct, commission or 
toleration of irregularities in the conduct of examination or tampering of the 
grades therein, or for any final judgment or conviction of any criminal offense 
involving moral turpitude. 
SEC. I O .  Supervision of the Board, Custodian of Its Records, Secretariat 
and Support Services. - The Board shall be under the general supervision and 
administrative control of the Commission. All records of the Board, including 
applications for examination, examination papers and results, minutes of 
deliberations, administrative and other investigative cases involving real estate 
service practitioners, shall be kept by the Commission. The Commission shall 
designate the secretary of the Board and shall provide the secretariat and other 
support services to implement the provisions of this Act subject to the usual 
government accounting and auditing rules and regulations. 
SEC. 11. Annual 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 
6 


salesperson shall undergo an examination as provided for in this Act. 
Examinations for the practice of real estate service in the Philippines shall be 
given by the Board at least once every year in such places and dates as the 
Commission may designate. 
SEC. 13. Scope of Examination. - An examination shall be given to the 
licensure applicants for real estate brokers, real estate appraisers and real estate 
consultants, which shall include but not limited to the following: 
(a) For real estate brokers - fundamentals of property ownership; code of 
ethics; 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, 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. 
(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. 
(c) 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 includes 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. 
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 
7 


the time of filing his application, establish to the satisfaction of the Board that 
he/she possesses the following qualifications: 
(a) A citizen of the Philippines; 
(b) At least twenty-one (21) years of age; 
(c) A holder of a bachelor’s degree from a state university or college, or other 
educational institution duly recognized by the Commission on Higher 
Education (CHED); 
(d) Has attended and completed an appropriate real estate seminar given by 
accredited entities; and 
(e) Of good moral character and must not have been convicted of any crime 
involving moral turpitude: Provided, That an applicant for the licensure 
examination for real estate appraisers must show proof that he has at 
Jeast three (3) years experience as a licensed real estate broker, or as an 
assessor, or as bank or institutional appraiser, or an employed person 
performing real property valuation: Provided, further, that an applicant for 
the licensure examination for real estate consultants must show proof that 
he has at least ten (IO) years experience as a licensed real estate broker, 
or an assessor, or as bank or institutional appraiser, or an employed 
person performing real property valuation, or at least five (5) years 
experience as a licensed real estate appraiser. 
All applications for examination shall be filed with the Board which shall 
assess and approve the said applications and issue to the qualified examinees 
the corresponding permit to take such examination. 
SEC. 15. Ratings in the Examination. - In order that a candidate may be 
deemed to have successfully passed the examination, he must have obtained an 
average of at least seventy-five percent (75%) in all subjects, with no rating 
below fifty percent (50%) in any subject. 
SEC. 16. Release of the Results of Examination. - The results of the licensure 
examination shall be released by the Board within ten (IO) days from the last day 
of the examination. 
SEC. 17. lssuance of the Certificate of Registration/Professional License 
and Professional ldentification Card. - A certificate of registrationlprofessional 
license shall be issued to examinees who pass the licensure examination for real 
estate service subject to payment of fees prescribed by the Commission. The 
certificate of registrationlprofessional license shall bear the signature of the 
8 


Chairperson of the Commission and the Chairperson and members of the Board, 
stamped with the official seal of the Commission, indicating that the person 
named therein is entitled to practice the profession with all the benefits and 
privileges appurtenant thereto. The certificate of registration/professional license 
shall remain in full force and effect until revoked or suspended in accordance 
with this Act. 
A professional identification card bearing the registration number, date of 
issuance, expiry date, duly signed by the Chairperson of the Commission, shall 
likewise be issued to every registrant upon payment of the required fees. The 
professional identification card shall be renewed every three (3) years and upon 
satisfying the requirements of the Board, such as but not limited to attendance in 
the Continuing Professional Education (CPE) program. 
SEC. 18. Refusal to Register. - The Board shall not register and issue a 
certificate of registration/professional license to any successful examinee who 
has been convicted by a court of competent jurisdiction of any criminal offense 
involving moral turpitude or has been found guilty of immoral or dishonorable 
conduct afler investigation by the Board, or has been found to be psychologically 
unfit. 
SEC. 
19. 
Revocation 
or 
Suspension 
of 
the 
Certificate 
of 
Registration/Professional License and Professional Identification Card. - 
The Board may, after giving proper notice and hearing to the party concerned, 
revoke the certificate of registration/professional license and professional 
identification card of a real estate service practitioner or suspend himlher from 
the practice of the profession for any unprofessional or unethical conduct, 
malpractice, or violation of any of the provisions of this Act, its implementing rules 
and regulations, and the code of ethics for real estate service practitioners. 
SEC. 20. Registration Without Examination. - Upon application and payment 
of the required fees, the following shall be registered and issued by the Board 
and Commission a certificate of registrationlprofessional license and professional 
identification card without taking the prescribed examinations: 
(a) Those who, on the date of the effectivity of this Act, are already licensed 
as real estate broker, real estate appraiser, or real estate consultants by 
the 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 
9 


undertaken relevant Continuing Program of Education (CPE) to the 
satisfaction of the Board. 
(b) Assessors, as defined in this Act, 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 Officers (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. 
(c) Assessors not qualified under (a) or (b) but who, on the date of effectivity 
of this Act, have at least five (5) years actual experience in real property 
appraisal or assessment and have completed at least sixty (60) hours of 
training on real property appraisal conducted by national appraisal 
organizations or institutiondentities recognized by the Board. 
Those falling under categories (b) and (c) shall register with the Board after 
they shall have complied with the requirements for registration as real estate 
appraiser: Provided, that those seeking to be licensed to a new credential level 
shall be required to take the pertinent licensure examination. 
Those so exempt under the aforementioned categories shall file their 
application within two (2) years from the effectivity of this Act: Provided, that the 
renewal of the professional identification card is subject to the provisions of 
Section 17 hereof. 
SEC. 21. Reinstatement, Reissuance or Replacement of Certificate of 
Registration/Professional License and Professional Identification Card. - 
The Board may, upon application and for reasons deemed proper and sufficient, 
reinstate any revoked certificate of registration/professionaI license and reissue a 
suspended professional identification card, and in so doing it may, in its 
discretion, exempt the applicant from taking another examination. 
A new certificate of registration/professional license or professional 
identification card may be issued to replace lost, destroyed or mutilated ones, 
subject to such rules as may be promulgated by the Board. 
SEC. 22. Roster of Real Estate Service Practitioners. - The Board shall 
prepare, update and maintain a roster of real estate service practitioners which 
shall contain the names of all registered real estate service practitioners, their 
residence and office addresses, dates of registration or issuance of certificates, 
and other data which the Board may deem pertinent. 
10 


The roster shall be open to the public, copies of which shall be sent to each 
real estate service practitioner listed therein. 
SEC. 23. Issuance of Special or Temporary Permit. - Upon application and 
payment of the required fees, and subject to the approval of the Commission, the 
Board may issue special or temporary permit to real estate service practitioners 
from foreign countries whose services are urgently needed in the absence or 
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 
registrationlprofessional license or professional identification card or be entitled 
to any of the privileges under this Act unless the country of which helshe is a 
citizen specifically allows Filipino real estate service practitioners to practice 
within its territorial limits on the same basis as the citizens of such foreign 
country. 
ARTICLE IV 
PRACTICE OF REAL ESTATE SERVICE 
SEC. 25. Oath. - All successful examinees qualified for registration and all 
qualified applicants for registration without examination, as well as accredited 
salespersons, shall be required to take an oath of profession before any member 
of the Board or any government official authorized by the Commission to 
administer oaths prior to entering into the practice of real estate service in the 
Philippines. 
SEC. 26. Acts Constituting the Practice of Real Estate Service. - Any single 
act or transaction embraced within the provisions of Section 3 hereof shall 
constitute an act of engaging in the practice of real estate service. 
SEC. 27. Exemptions from the Acts Constituting the Practice of Real Estate 
Service. - The provisions of this Act and its rules and regulations shall not apply 
to the following: 
(a) Any person, natural or juridical, who shall directly perform by himself the 
acts mentioned in Section 3 hereof with reference to his or its own 
property; 
(b) Any receiver, trustee or assignee in bankruptcy or insolvency proceedings; 
11 


(c) Any person acting pursuant to the order of any civil court of justice; and 
(d) Any person who is duly constituted attorney in fact for purposes of sale, 
mortgage, lease or exchange or other similar contracts of real estate. 
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 himselflherself 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 registrationlprofessional license 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 proposed positions in the local and national 
governments, whether career, permanent, temporary or contractual, and 
primarily requiring the services of a real estate service practitioner, shall be filled 
only by registered and licensed real estate service practitioners. 
SEC. 30. Supervision of Real Estate Salespersons. - For real estate 
salespersons, no examination shall be given, but they are entitled to 
accreditation by the Board: Provided, that they have completed at least two (2) 
years of college and have undergone thirty-six (36) hours of training in real estate 
brokerage. Real estate salespersons shall be under the direct supervision and 
accountability of a real estate broker. As such, he/she cannot by himself/herself 
be a signatory to a written agreement involving a real estate transaction unless 
the real estate broker who has direct supervision and accountability over himlher 
is also a signatory thereto. No real estate salesperson can negotiate, mediate or 
transact any real estate transaction for and in behalf of a real estate broker 
without first securing an authorized permit as real estate salesperson for the real 
estate broker andlor company he is working for as prescribed by the Board. A 
real estate broker shall be guilty of violating this Act for employing or utilizing the 
12 


services of a real estate salesperson who has not secured the required 
professional license prior to such employment. 
SEC. 31. Corporate Practice of the Real Estate Service. - 
(a) No partnership or corporation shall engage in real estate service practice 
unless it is duly registered with the Securities and Exchange Commission 
(SEC), and the persons authorized to act for the partnership or 
corporation are all duly licensed as brokers, appraisers or consultants, as 
the case may be. The partnership or corporation shall regularly submit a 
list of its real estate service practitioners to the Commission and to the 
SEC as part of its annual reportorial requirements. 
(b) Divisions or departments of corporations and partnerships engaged in 
marketing or selling any real estate development project in the regular 
course of business must be headed by a full-time licensed real estate 
broker. 
In case of resignation or termination from employment of a real estate service 
practitioner, the same shall be reported by the employer to the Board within a 
period not to exceed fifteen (15) days from the date of effectivity of the 
resignation or termination. 
Subject to the provisions of the Labor Code, a corporation or partnership may 
hire the services of licensed real estate brokers, appraisers or consultants on 
commission basis to perform real estate services and the latter shall be deemed 
independent contractors and not employees of such corporation or partnership. 
SEC. 32. Display of License in 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 the original and/or certified true copies of hidher 
certificate of registration/professional license as well as the licenses of all real 
estate service practitioners employed in such office. 
SEC. 33. Accreditation and Integration of Real Estate Service Practitioners 
Organizations. - All real estate service practitioners shall be integrated into one 
national organization, which shall be recognized by the Board as the one and 
only accredited and integrated professional organization of real estate 
practitioners. A real estate service practitioner duly registered with the Board 
shall automatically become a member of the accredited and integrated 
professional organization of real estate service practitioners and shall receive the 
13 


benefits and privileges appurtenant thereto. Membership in the accredited and 
integrated professional organization of real estate service practitioners shall not 
be a bar to membership in other associations of real estate service practitioners. 
SEC. 34. Code of Ethics for Real Estate Service Practitioners. - The Board 
shall adopt and promulgate the Code of Ethics for Real Estate Service 
Practitioners which shall be prescribed and issued by the accredited and 
integrated professional organization of real estate service practitioners. 
SEC. 35. Continuing Professional Education (CPE) Program. - The Board 
shall develop, prescribe and promulgate guidelines on continuing professional 
education (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 in coordination with 
the CHED. The Board shall create a CPE Council that shall be composed of a 
chairperson coming from the Board, a member from the accredited and 
integrated professional organization of real estate service practitioners and a 
member from the academe. 
ARTICLE V 
PENAL AND FINAL PROVISIONS 
SEC. 36. Penal Provisions. - Any violation of this Act, including violations of the 
implementing rules and regulations, shall be meted the penalty of a fine of not 
less than one hundred thousand pesos (Phpl00,000.00), or imprisonment of not 
less than two (2) years, or both such fine and imprisonment upon the discretion 
of the court. In case the violation is committed by unlicensed realty service 
practitioners, the penalty shall be double the aforesaid fine and imprisonment. 
In case the violation is committed by a partnership, corporation, association or 
any other juridical person, the partner, president, director or manager who has 
committed or consented to or knowingly tolerated such violation shall be held 
directly liable and responsible for the acts as principal or as a co-principal with 
the other participants, if any. 
SEC. 37. Appropriations. - The chairperson of the Professional Regulation 
Commission (PRC) shall immediately include in the Commission’s programs the 
implementation of this Act, the funding of which shall be included in the annual 
General Appropriations Act and thereafter. 
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SEC. 38. Transitory Provisions. - Within ninety (90) days after the effectivity of 
this Act, the Department of Trade and Industry (DTI) shall transfer all pertinent 
records, documents, and other materials to the Professional Regulatory Board of 
Real Estate Service. 
SEC. 39. lmplementing Rules and Regulations. - Within ninety (90) days after 
the effectivity of this Act, the Commission, together with the Board, the accredited 
and integrated professional association of real estate service practitioners, and 
the CHED shall prepare the necessary rules and regulations, including the code 
of ethics for real estate service practitioners, needed to implement the provisions 
of this Act. 
SEC. 40. Separability Clause. - If any clause, sentence, paragraph or part of 
this Act shall be declared unconstitutional or invalid, such judgment shall not 
affect, invalidate or impair any other part of this Act. 
SEC. 41. Repealing Clause. - All laws, decrees, executive orders, memorandum 
orders, and other administrative issuances and parts thereof which are 
inconsistent with the provisions of this Act are hereby modified superseded or 
repealed accordingly. 
SEC. 42. Effectivity. - This Act shall take effect fifteen (15) days following its 
publication in the Official Gazette or in a major daily newspaper of general 
circulation in the Philippines. 
Approved. 
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