7/02/2010

Code of Ethics in Philippine Real Estate Service - Part 2 of 2



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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SECTION 3. RELATION TO THE CLIENT/CUSTOMER

  • (a) The Practitioner, in accepting an appointment or authority to act for and in behalf of a client or customer should pledge himself with utmost fidelity and good faith to protect and promote the interest of his client without, in any manner, sacrificing the legitimate interest of the other party in the transaction.
  • (b) For the sake of justice and fairness to his client who have reposed confidence in him, the practitioner should endeavor to be well informed of current legislation, policies and programs of the government including proposed legislation which may affect the interest of his client.
  • (c) He should not accept any commission, fee or any valuable consideration from any party in any transaction except from his client unless with the full knowledge and consent of all the parties in the transactions. He shall not also introduce or work for an overprice either from the buyer or seller, except the usual standard rate of commission on any real estate transaction.
  • (d) He should charge or collect only such fees or commissions as are fair and reasonable in accordance with local practice in similar transactions.
  • (e) He should not acquire an interest in or buy for himself or members of his family within the fourth civil degree, his firm or any member thereof or a corporation or partnership in which he or his relatives within the fourth civil degree have at least 20% property interest, without making his true position known to the owner, buyer or seller.
  • (f) He should not advertise any property without authority and in any offering, the price quoted should be in accordance with the price agreed with the owners as the offering price.
  • g) In the event that more than one formal offer on a specific property is made before the owner has accepted a proposal, all written offers should be presented to the owner for his decision.
  • (h) He should endeavor to make his client and customer conclude a fair contract advantageous to both.(i) He should assist his customer acquire possession and ownership of the property bought in accordance with the terms and conditions agreed upon.
  • (i) In case he is called upon to act as witness in a court proceeding he should give his testimonies in the most unbiased, honest, truthful and professional manner.
  • (j) As a real estate appraiser, he should not render an opinion without a careful and thorough analysis and interpretation of all factors affecting the value of the property. His counsel and advice constitutes a professional service for which he should make a fair and reasonable charge.
  • (k) As an appraiser, he should not undertake to make an appraisal or render an opinion that is outside the field of his experience and competence unless he obtains the assistance of another practitioner familiar with such type of property or unless the facts are fully disclosed by the client.


SECTION 4 RELATIONS TO FELLOW PRACTITIONERS

  • (a) He should not solicit a listing that is currently listed exclusively with another broker unless the listing agreement has expired or revoked by the owner and the owner offers to list the same to the new broker without soliciting the same.
  • (b) When he accepts a listing from another broker, the agency of the broker who offers the listing should be respected until it has expired and the property has come to the attention of the accepting broker from a different source, or until the owner, without solicitation, offers to list with the accepting broker. Such a listing should not be passed to a third broker or published in a daily newspaper without the knowledge and consent of the listing broker.
  • (c) Signs giving notice of a property for sale, rent, lease or exchange should not be placed on any property by more than one broker and only if authorized by the owner.
  • (d) He should not use information obtained by him from a listing broker through offers to cooperate or received through multiple listing services or other sources authorized by the listing broker for the purpose of creating a referral prospect to a third broker or for creating a buyer’s prospect, unless such use is authorized by the listing broker.
  • (e) He should cooperate with other brokers on property listed and share the commission on an agreed basis. Negotiations concerning property listed exclusively with one broker should be carried with the listing broker, and not the owner, except with the consent of the listing broker.
  • (f) He should not solicit or use the services of an employee or salesman of another practitioner without the knowledge of the employer.
  • (g) He should not criticize publicly a competitor nor volunteer an opinion of a competitor’s transaction. If his opinion is sought, it should be rendered with professional integrity and courtesy.
  • (h) The practitioner should seek no unfair advantage over his fellow practitioners and should willingly share with them the lessons of his experience and study.
  • (i) He should conduct his business properly to avoid any controversy with his fellow practitioners. In the event of a controversy between practitioners belonging to the same organization or association, such controversy should be submitted for arbitration to such organization or association whose decision, if accepted by both parties, will be final and binding as far as the association is concerned.
  • (j) If the controversy is between practitioners belonging to different organizations or associations, it should be submitted to an Arbitration Board consisting of one member from each organization or association chosen by each of the parties to the controversy. A third member shall be chosen by members previously chosen from either organization or association or from the national association where the parties to the controversy are affiliated.
  • (k) In case the practitioners who are parties to a controversy are not members of any duly recognized organization or the Arbitration Board can not settle the controversy, the Bureau of Domestic Trade shall assume jurisdiction over said controversy.
  • (l) In case a complaint is filed against a practitioner with his organization or association for unethical or unfair practice, he should voluntarily submit all pertinent facts before an investigating body that may be formed by his organization or association for evaluation and resolution.



SECTION 5. RELATION TO HIS ORGANIZATION INCLUDING THE NATIONAL ASSOCIATION TO WHICH HIS ORGANIZATION IS AFFILIATED



  • (a) In the interest of society and his own profession, calling or occupation, the practitioner should abide by the Constitution and By-laws of his Association or Organization and the National Association to which it is affiliated.
  • (b) Elections as officer or member of the governing body of the organization or association carries with it the moral obligation to serve honorably, unselfishly, diligently and efficiently. It should not be the subject of election campaigning, or use of letters or circulars announcing one’s candidacy or appealing for votes for himself or for other nominees or candidates or other form of electioneering agreement or any act which will interfere with the free and wise choice of the officers and members of the governing body of the organization.
  • (c) He should support his organization morally and financially and actively support its plans, programs and projects for the benefit of all the members of the organization or association.
  • (d) Any practitioner should first exhaust all administrative remedies available under existing laws, rules and regulations before taking any judicial or quasi-judicial action.


ARTICLE IV – SANCTIONS

Violation of any provisions of this Code shall give rise to any sanction that may be imposed by the organization to which a practitioner belongs as a member, without prejudice, however, to disciplinary action that the Department of Trade and Industry may deem expedient thereon hen the proper complaint against the erring practitioner for alleged misconduct is filed with the Department in accordance with existing rules and regulations. In the case of practitioners who are not members of any organizations, any complaint against them shall be governed by existing laws, rules and regulations governing controversies.

ARTICLE V – EFFECTIVITY [Original, 1986]

This Code shall take effect fifteen (15) days after its publication in a newspaper of general circulation. Done in Makati, Metro Manila, this 19th day of September 1986.

ARTICLE V – EFFECTIVITY [As Amended, 1993]

This Code shall take effect immediately after its publication in a newspaper of general circulation.Done in Makati, Metro Manila, this 29th day of September, 1993.

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If there is anything else important that I forgot to include in this article, or if you experienced a real estate transaction that is anomalous, scam, fraudulent scheme that you want me to document and expose for others to be warned, or if you want to donate to the war chest of real estate consumer rights advocacy, please feel free to email me at JohnPetalcorin@Gmail.Com. If you want to comment about this article, there is a provision for this purpose that you can find below.
Thank you so much for visiting my site. May God Bless You!

2 comments:

Armand Arbis said...

Hello John,
In my view after looking up other sources, this article is more useful in comparison. Tells tasks not clearly cited in other sources. May I suggest additional info that you might write as sort of guideline or just personal tips for agents and customers. I am referring to specific steps or work tasks broker or agent normally do, such as maybe:
1. Help customer review the Deed of sale or contract, or how to get or create RECEIPT forms for payments (sale or deposits, etc).
2. Help seller or buyer where or how to get Property tax records, how to pay Capital Gains.
3. What agency (i.e. Register of Deeds) to go to check title or TRANSFER. Hope these help us and others. Armand Arbis - aarbis@hotmailcom

Carlos Miguel De Villa said...

Thanks for sharing this post! This is very useful because I'm planning to buy a property from camella homes.