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FIFTEENTH CONGRESS

CONGRESS OF THE PHILIPPINES
First Regular Session

HOUSE OF REPRESENTATIVES

House BillNo. 402"?

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 bil.

JESUS QRISPIN C. REMULLA.


FIFTEENTH CONGRESS

CONGRESS OF THE PHILIPPINES
First Regular Session

HOUSE OF REPRESENTATIVES

House Bill No. 402'7

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 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
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, carr
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 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) xxx

(0) 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 shall take effect fifteen (15) days following its publication in

Approved,

the Official Gazette or in a major daily newspaper of general circulation in the
Philippines. :