RA 9646: Real Estate Service Act of the Philippines (RESA)
Meaning
Republic Act No. 9646, signed in 2009, regulates and professionalizes real estate practice in the Philippines. It requires those who sell, appraise, assess, or advise on real estate to be licensed and places them under the supervision of the Professional Regulation Commission (PRC).
Key Details
- Covered practitioners: real estate brokers, appraisers, assessors, consultants, and salespersons.
- Regulating body: the Professional Regulatory Board of Real Estate Service (PRBRES) under the PRC. Its members are appointed by the President, and it administers the licensure examination, issues and revokes licenses, and sets standards and the code of ethics.
- Licensing: a person must pass the licensure examination and register with the PRC before practicing. Practicing without a license is a punishable offense.
- Salespersons: they must work under the supervision of a licensed broker and may not practice independently.
- Owners and developers: those who sell through agents must engage licensed brokers and salespersons.
- Continuing professional development (CPD): licensed practitioners must complete CPD requirements to renew their licenses.
- Exceptions: owners dealing directly with their own property, and certain persons acting without compensation or in a fiduciary or legal capacity, such as trustees and receivers, are generally exempt.
- Penalties: unlicensed practice and other violations may lead to fines and/or imprisonment. Licensed practitioners who commit ethical or legal violations may face suspension or revocation of their licenses. The exact amounts are in the law’s penal provisions.
Importance
- Consumer protection: it protects buyers, sellers, and investors from fraud, unlicensed agents, and unethical practices.
- Professional standards: it sets requirements for education, examination, and ethical conduct.
- Accountability: brokers are answerable for their salespersons, and violations can be sanctioned.
- Market credibility: it supports transparency and trust in property transactions, including valuation and assessment.
Additional Info
- Its Implementing Rules and Regulations (IRR), issued by the PRC and the Board, contain the detailed requirements.
- Practitioners are bound by the Code of Ethics and Professional Standards issued under the law.
- Clients can verify a practitioner’s license with the PRC before engaging their services.
- Qualifications, fees, and penalty amounts may be updated through board resolutions, so check the PRC website for current requirements.
