Code of Ethics governs the conduct of those in realty service practice. Most of the principles contained herein are also discussed in the DTI-BTRCP Rules and Regulations under M.O. Order No. 39, Series of 1985.
Violations by the broker of any provisions of the Code, gives rise to sanctions that may be imposed by the brokers organization, without prejudice to disciplinary action that concerned DTI-BTRCP may impose when a complaint is filed against him.
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The Realty Service Practice, a profession, calling or occupation, is dedicated to the promotion,development and conservation of land and natural resources, including improvements and rights and interest appurtenant thereto for the benefit and enjoyment of the Filipino people. As such, those engaged therein are bound by a code of conduct, morals, and values in performance of their duties and obligations towards the government, co-practitioners and the people they serve.
It is, therefore, imperative and necessary to adopt this NATIONAL CODE ETHICS FOR THE REALTY SERVICE PRACTICE to govern the rule of conduct of those who will engage therein.
ARTICLE 1 – DECLARATION OF PRINCIPLES
SECTION 1. The Realty Service Practice is a noble profession, calling or occupation and those engaged therein shall abide by and comply with all the laws, decrees, orders and rules and regulations enacted or promulgated by duly constituted government authorities.SECTION 2. Utmost fidelity, sincerity, respect for colleagues in the profession, and honesty shall be observed at all times by those in the realty service practice in their relation with the client, the community and the nation in general.
SECTION 3. Adequate knowledge, competence and expertise in real estate development and management shall be maintained, and the upgrading of the standards of practice shall be effected when the need arises; all these for, and in the interest of the social and economic progress of the country.
SECTION 4. The spirit of camaraderie, cooperation and professional relationship among the practitioners shall be promoted; and every organization to which they shall be encouraged to join shall aims and purposes as will set up, upgrade, and maintain a high level of integrity, honesty and competence in the profession for the best interests of the community and the nation.
SECTION 5. A high level of professional relationship with colleagues in the Realty Service Practice shall be maintained, and their dealings with each other shall always be fair, honest and just.
SECTION 6. The Golden Rule which reads “Treat others as you like them to treat you.” shall be observed in all the dealings and relation of the practitioners with clients, fellow practitioners, the organization to which they belong, and the general public.
ARTICLE II – SCOPE AND PURVIEW OF THE CODE
SECTION 1. As used in this code and for the purpose hereof, the Realty Service Practice shall embrace and include all persons, partnership or corporations who are duly licensed by the Bureau of Domestic Trade in accordance with SECTION 3 (e) & (ee) of Act. No. 2728 as amended by Act No. 3715 & 3969 and Ministry Order No. 39, such other practitioners as the Director of Domestic Trade may now or hereafter license pursuant to any law, rule or regulation that may be promulgated by the government. They shall be called Realty Service Practitioners hereinafter known as Practitioners.
ARTICLE III – RULE OF CONDUCT AND PRACTICE
The Practitioners shall be governed by the following rules of conduct and practice.
SECTION 1. RELATION TO THE GOVERNMENT
- (a) The Practitioner should secure all the necessary Licenses, permits and authority from the Bureau of Domestic Trade and other government agencies as may be required by law, ordinance or rules and regulations and comply with all the requirements thereof engaging in the same.
- (b) He should pay any and all taxes, fees, dues, levies or changes that the government may impose in accordance to law, ordinances, or rules and regulations.
- (c) He should help, assist and cooperate with the Bureau of Domestic Trade and all government agencies and instrumentality in the promotion, development and conservation of lands and other natural resources, its improvements and rights and interest therein.
- (d) He should not encourage, abet, tolerate or participate in the evasion or illegal reduction in the payment of all taxes, fees, dues, levies or charges that may be imposed by the government.
- (e) He should not offer or agree to pay, to split or rebate any commission, fee or valuable consideration, directly or indirectly with any person who is not duly licensed practitioner or to cooperate, assist or endorse any transaction or engagement of his services in violation of any existing law, rule or regulation.
- (f) He should indicate the license number of the certificate issued by the Bureau of Domestic Trade in his letterhead, dry seal, signboard, billboard, advertisement of other announcement in relation to the Realty Service Practice.
SECTION 2. RELATION TO THE PUBLIC
- (a) The Practitioner should be imbued with a social conscience for he does not live by himself and his family alone but he is a part of society with social responsibilities.
- (b) He should ensure the highest and best use of the land and the equitable distribution of ownership, irrespective of political beliefs, cultural background, sect, religion or class.
- (c) He should keep himself well informed to any movement affecting real estate in his community, city or province, so that he may be able to contribute to public thinking on matters of taxation,land use, city planning and other programs of the government.
- (d) He should cooperate with the government in protecting the public against deceptive, unfair and unconscionable acts and practices of some unscrupulous or unlicensed practitioners like fraud, misrepresentation, concealment of relevant information and other related unethical practices.
- (e) He should ascertain all pertinent facts concerning every property and avoid error, exaggeration, misrepresentation or concealment of pertinent facts.
- (f) He should not be instrumental in introducing in a neighborhood a certain character or use of property which will tend to impair or erode property values within that neighborhood.
- (g) He should not be a party to the naming of a false consideration in a deed or instrument.
- (h) He should keep a special bank account separate and distinct from his own funds, all monies received in trust for other persons, such as deposit in escrow, trust funds, client’s money and similar items.
- (i) In his advertisements, brochures or announcements, he should present a true picture of the property, its improvements, or rights and interests therein including whatever liens or encumbrances it may have, if any, and should indicate his name, fi rm name, address and license number of the Certificate of issued by the Department of Trade and Industry. In case of real estate salesman, he should indicate the name, fi rm name and license number of the broker under whom he is employed.
- (j) He should see to it that all agreement, terms and conditions, financial obligations and commitments in real estate transactions are in writing, duly signed by all parties concerned and if necessary, to be properly authenticated by a Notary Public.
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