FOURTEENTH CONGRESS OF THE 
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REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
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SENATE 
S. NO. 1656 
Introduced by Senator Antonio P. Trillanes IV 
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. 
\ 
Real estate service practice, itself, however, needs to be strengthened and given 
its rightful recognition as a profession. It should be appropriately regulated and 
provided institutionalized government support so that there is developed a corps of 
highly respected, technically competent, and disciplined real estate service practitioners, 
knowledgeable of internationally accepted standards and practice of the profession who 
will earn the respect and confidence of the public and the local and foreign investors as 
well. The prevailing negative perception of the work of m a y  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 (apprakjtq bcQkers 
and consultants) are under the supervision of the Department of Trade and bdustry 
(DTI), through the Bureau 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. 
The Real Estate Service Act (RESA) seeks to address these problems. It 
professionalizes 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 
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 
are 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. 
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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). 
ANTONIO F. TRULANES IV 
Senator 
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FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
) 
Introduced by Senator Antonio F. Trillanes IV 
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 if enacted by fk Senate and House of Representatives ofthe Philippines in Congress 
assembled: 
ARTICLE I 
SECTION 1. Title. - This Act shall be known as the ”REAL ESTATE SERVICE 
ACT OF THE PHILIPPINES.” 
SEC. 2. Declaration of Policy. - The State recognizes the vital role of real estate 
service practitioners in the social, political, economic development and progress of the 
country by promoting the real estate market, stimulating economic activity and 
enhancing government income from real property-based transactions. Hence, it shall 
develop and nurture through proper and effective regulation and supervision a corps of 
technically competent, responsible and respected professional real estate service 
practitioners whose standards of practice and service shall be globally competitive and 
will promote the growth of the real property industry. 
SEC. 3. Definition of Terms. - As used in this Act, the following terms shall 
mean: 
(a) Appraiser - also known as Valuer; refers to a person who conducts 
valuation/appraisal; specifically, one who possesses the necessary qualifications, 
ability, and experience to execute or direct the valuation/appraisal of real or 
personal property; 
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@) Assessor - a government officer who conducts appraisal and assessment of real 
properties for taxation purposes. 
(c) Real estate -refers to the land and all those items which are attached to the land. 
It is the physical, tangible entity which can be seen and touched, together with all 
the addition on, above, or below the ground. 
(d) Real estate development project - means the development of land for residential, 
commercial, industrial, agricultural, institutional or recreational purposes, or any 
combination of such, including but not limited to tourist resorts, reclamation 
projects, building or housing projects whether for individual or condominium 
ownership, memorial parks, and others of similar nature. 
(e) Real Property - includes all the rights, interests, and benefits related to the 
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ownership of real estate; 
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any interest therein. 
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4) Real estate salesperson - a duly registered and accredited natural person 
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who performs for and in behalf of a real estate broker who is 
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registered/licensed by the Professional Regulatory Board of Real Estate 
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Service, for or in expectation of a share in the commission, fee, compensation 
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or other valuable consideration. 
(f) Real estate service practitioners shall refer to and consists of the 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 improvement thereon; and 
(b) the conception, planning, management, and development of realty 
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 
of or act as an expert 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 
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ARTICLE I1 
PROPESSIONAL 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 orgakation(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. Dowers 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 govenunent 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, certificate of 
registrationlprofessional license or professional identification card for the 
practice of the real estate service; 
(d) Maintain a comprehensive and updated register of licensed real estate 
professionals; 
(e) Monitor the conditions affecting the practice of real estate service and adopt such 
measures as may be proper for the enhancement of the profession and/or the 
maintenance of high professional, ethical and technical standards; 
(f) 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 
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subpoena and subpoena duces tecum to secure the appearance of witnesses and the 
production of documents in connection therewith; 
(g) 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 carrying 
out the provisions of this Act; 
(j) Supervise and regulate the registration, licensure and practice of rea1 estate 
service in the Philippines; 
(k) Administer oaths and affirmations; 
(1) Adopt an official seal of the Board; 
@)Evaluate periodically the status of 
appraisal/valuation education and 
recommend and/or adopt measures to upgrade and maintain its high standard; 
(11) 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 
(4) Discharge such other powers, duties and functions, as the Commission may 
deem necessary to carry out the provision of this Act. 
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The policies, resolutions, and rules and regulations issued or promulgated by the 
Board shall be subject to the review and approval by the Commission. However, the 
Board's decisions, resolutions or orders, which are not interlocutory, rendered in an 
administrative case, shall be subject to review by the Commission only 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 (10) years prior to &/her 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 his/her 
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 
(f) Of good moral character and must not have been convicted by final judgment by 
a competent court of a criminal offense involving moral turpitude. 
SEC. 7. Term of Office. - The chairperson and 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 he/she 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/professional license and professional identification cards. Each member of 
the Board shall take the proper oath of office prior to the assumption of duty. 
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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 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. 10. Supervision of fhe Board, Custodian of its Records, Secretariat and 
Support Seuvices. - 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. Licensuve Examination. - Every applicant seeking to be registered and 
licensed, as a real estate service practitioner, except a real estate salesperson, shall 
undergo an examination as provided for in this Act. Examinations for the practice of 
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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 ofExamination. - 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 the time of filing 
his application, establish to the satisfaction of the Board that he/she possesses the 
following qualifications: 
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(a) A citizen of the Philippines; 
@) 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: Pmvided, That an applicant for the licensure 
examination for real estate appraisers must show proof that he has at least three 
(3) years experience as a licensed red 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 (10) 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 (10) days from the last day of the 
examination. 
SEC. 17. Issuance of the Certecate of Regis&ationfl-'rofessional License and 
Professional IdentiFcation Card. - A certificate of registration/professional 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 
registration/professional license shall bear the signature of the chairperson of the 
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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. Refisal 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 after investigation by the 
Board, or has been found to be psychologically unfit. 
SEC. 
19. 
Revocation 
or 
Suspension 
of 
the 
Cevfifcate 
of 
Regisfra fioflrofessional License and Professional Identification Curd. - The Board 
may, after giving proper notice and hearing to the party coiicenied, revoke the certificate 
of registration/professional license and professional identification card of a real estate 
service practitioner or suspend him/her from the practice of the profession for any 
miprofessioiial 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 mid payment of 
the required fees, the following shall be registered and issued by the Board and 
Commission a certificate of registration/professional 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 
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appraisers and real estate consultants, and have 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 (WAO) 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 
institutions/entities recognized by the Board. 
Those falling under categories @) 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 
Registratioflrofessional License and Professional Identzpcation Card. - The Board 
may, upon application and for reasons deemed proper and sufficient, reinstate any 
revoked certificate of registration/professional 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 
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addresses, dates of registration or issuance of certificates, and other data which the 
Board may deem pertinent. 
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. Fowign Reciprocity. - No foreign real estate service practitioner shall be 
admitted 
to 
the 
licensure 
examination 
or 
be 
given 
a 
certificate 
of 
registration/professional license or professional identification card or be entitled to any 
of the privileges under this Act unless the country of which he/she is a citizen 
specifically allows Filipino real estate service practitioners to practice within its 
territorial limits on the same basis as the citizens of such foreign country. 
ARTICLE N 
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: 
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(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; 
@) Any receiver, trustee or assignee in bankruptcy or insolvency proceedings; 
(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. 
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SEC. 28. Prohibition Against the Unauthorized Practice of Real Estate Service. - 
No person shall practice or offer to practice real estate service in the Philippines or offer 
himself/herself as real estate service practitioner, or use the title, word, letter, figure, or 
any sign tending to convey the impression that one is a real estate service practitioner, or 
advertise or indicate in any manner whatsoever that one is qualified to practice the 
profession, or be appointed as real property appraiser or assessor in any national 
government entity or local government unit, unless he/she has satisfactorily passed the 
licensure examination given by the Board, except as otherwise provided in this Act, and 
is a holder of a valid certificate of re@tration/professional license and professional 
identification card or a valid special/temporary permit duly issued to him/her by the 
Board and the Commission. 
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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. 
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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 him/her 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 
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such employment. 
without first securing an authorized permit as real estate salesperson for the real estate 
broker and/or 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 services of a 
real estate salesperson who has not secured the required professional license prior to 
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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. 
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office. 
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 his/her certificate of registration/professional 
license as well as the licenses of all real estate service practitioners employed in such 
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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 
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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 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 tlw 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 (Php100,000.00), 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 
my. 
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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. 
SEC. 38. Trunsitovy 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. Implementing 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. Esfectivity. - 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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