7/26/2010

IRR of RA 9646 - Real Estate Service Act of the Philippines - Part 3 of 4


[Basic Knowledge for Brokers] The Implementing Rules and Regulation (IRR) of the R.A. 9646 was published in the Philippine Daily Inquirer on July 24, 2010. In accordance with Sec. 45 of the IRR, it shall take effect on 8 August 2010.

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SEC. 15. Ratings in the Examination

In order that a candidate may be deemed to have successfully passed the examination, he/she 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. The Board may adopt its own internal procedure on the implementation of this provision.

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. The result shall be published in a daily major newspaper of general circulation and PRC website.

SEC. 17. Issuance of the Certificate of Registration and the Professional Identification Card

A certificate of registration shall be issued to examinees who pass the licensure examination for real estate service practice, subject to payment of fees prescribed by the Commission. The certificate of registration shall bear the signature of the chairperson of the Commission and the chairperson and the 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. This certificate of registration shall remain in full force and effect until revoked or suspended in accordance with R.A. No. 9646.

A professional identification card bearing the registration number, date of issuance and 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 CPE program.

SEC. 18. Refusal to Register

The Board shall not register and issue a certificate of registration to any successful examinees 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 Certificate of Registration and the Professional Identification Card or Cancellation of Special/Temporary Permit

The Board may, after giving proper notice and hearing to the party concerned, revoke the certificate of registration and the professional identification card, or cancel the special or temporary permit of a real estate service practitioner, or suspend him/her from the practice of the profession on any of the following instances hereunder:

(A) Procurement of a certificate of registration and/or professional identification card, or special/temporary permit by fraud or deceit;

(B) Allowing an unqualified person to advertise or to practice the profession by using one’s certificate of registration or professional identification card, or special/temporary permit;

(C) Unprofessional or unethical conduct;

(D) Malpractice or violation of any of the provisions of this R.A. No. 9646, the IRR, and the Code of Ethics and Responsibilities for real estate service practitioners; and

(E) Engaging in the practice of the profession during the period of one’s suspension.

The rules on administrative investigation issued by the Commission shall govern the hearing or investigation of the case, subject to the applicable provisions of R.A. No. 8981, R.A. No. 9646, and the Rules of Court; Provided, That the suspension or revocation of the Certificate of Registration and Professional Identification Card, or the cancellation of the Temporary/Special Permit of the respondent professional shall not prejudice his/her prosecution for criminal liabilities and the imposition of the penalties under R.A. No. 8981, R.A. No. 9646, under the Revised Penal Code, or any other special law.

SEC. 20. Registration Without Examination

Upon application and payment of the required fees, the following shall be registered, and shall be issued by the Board and the Commission a certificate of registration and a professional identification card without taking the prescribed examination:

(A) Those who, on the date of the effectivity of R.A. No. 9646 or as of 30 July 2009, are already licensed as real estate brokers, real estate appraisers or real estate consultants by the Department of Trade and Industry (DTI) by the virtue of Ministry Order No. 39, as amended: Provided, That they are in active practice as real estate brokers, real estate appraisers and real estate consultants, and that they have undertaken relevant Continuing Professional Education (CPE) or Continuing Education Program (CEP) to the satisfaction of the Board; Provided, further, That the following practitioners shall be allowed to register:

1. Any holder of a valid DTI license who has earned fifteen (15) Continuing Education Program (CEP) or CPE credit units;

2. Those who has failed to renew their DTI License prior to 30 July 2009 but who have earned twenty-four (24) CEP credit units from accredited service providers as per M.O. 39 or CPE credit units from CPE Council Accredited Provider from 2007 to July 30, 2011.

3. Those who had passed the 2009 and 2008 licensure examinations given by the DTI but who have failed to obtain their license upon the effectivity of the R.A. No. 9646 and who have earned fifteen (15) CEP or CPE credit units;

4. Those who had passed the 2007 licensure examinations given by the DTI but who have failed to obtain their license upon the effectivity of the R.A. No. 9646 and who have earned eighteen (18) CEP or CPE credit units;

5. Those who had passed the DTI licensure examination in 2006 and prior years but who failed to obtain their license upon the effectivity of R.A. No. 9646 and who have earned one hundred twenty (120) CEP or CPE credit units;

Provided, finally That the real estate practitioners falling under the above-described categories who fail to comply with the necessary CPE requirements within two (2) years after the effectivity of R.A. No. 9646, on or before 30 July 2011, shall be required to take the Board licensure examination for the real estate service practitioners;

(B) Assessors and appraisers who, on the date of the effectivity of R.A. No. 9646 or as of 30 July 2009, hold permanent appointment and are performing actual appraisal and assessment functions for the last five (5) years, have passed the Real Property Assessing Office (RPAO) 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; and

(C) Assessors and appraisers who, on the date of the effectivity of R.A. No. 9646 or as of 30 July 2009, hold permanent appointment and have at least ten (10) years actual experience in real property appraisal or assessment and have completed at least one hundred twenty (120) hours of accredited training on real property appraisal conducted by national or international appraisal organizations or institutions/entities duly certified by the Department of Finance (DOF) or any other pertinent national government agencies or Government Owned and Controlled Corporations (GOCC) as the case may be, recognized by the Board and relevant CPE to the satisfaction of the Board.

Those falling under the categories (B) and (C) shall register with the Board after they shall have complied with the requirements for registration as real estate appraisers, and have completed twenty four (24) CPE credit units. Provided, That those seeking to be licensed to a new credential level shall be required to take the pertinent Board licensure examination for the real estate service practitioners.

Those so exempt under the aforementioned categories shall file their application within two (2) years from the effectivity of R.A. No. 9646 or until 30 July 2011. Provided, That the renewal of the professional identification card is subject to the provisions of Section 17, Art. III of R.A. No. 9646.

An applicant for registration without examination must submit the following documents:

1. Original and photocopy of Certificate of Live Birth / Birth Certificate (NSO), or a valid Philippine passport, or any other proof of citizenship;

2. Original and photocopy of Certificate of Registration (COR) and/or Professional Identification Card (PIC) or DTI Licenses;

3. DTI Certification of Rating (for those who passed the examination but failed to obtain their license)l

4. Original and photocopy of NBI clearance;

5. Duly notarized CEP/CPE Certification;

6. Civil Service Commission Certification, DOF, or any other national government agencies, or GOCC Certification (assessors or government appraisers), or any certification of accreditation seminar/training provider.

7. Appointment papers and service records to prove appraisal or assessment experience (for assessors and government appraisers);

8. Original and photocopy of Marriage Certificate / Contract of Marriage (NSO) (if applicable)

9. Four (4) passport size colored photos with complete nametag in white background, original and photocopy of Community Tax Certificate (CTC), and surety bond for real estate brokers and private real estate appraisers.

SEC.21. Reinstatement, Reissuance or Replacement of Certificate of Registration, Professional Identification Card and Special/Temporary Permit.


The Board may, after the expiration of two (2) years from the date of revocation of a Certificate of Registration and/or Professional Identification Card, and upon application and compliance with the required CPE units , and for reasons deemed proper and sufficient, reinstate any revoked certificate of registration reissue a suspended professional identification card and in doing, may, in its discretion, exempt the applicant from taking another examination; Provided, That the Board shall issue a resolution subject to the approval of the Commission in granting a petition for reinstatement to the practice of real estate service profession. A new certificate of registration, professional identification card or special/temporary permit may be issued to replace lost, destroyed or mutilated ones, subject to the rules as may be promulgated by the Board and the Commission, upon payment of the required fees therefor.

SEC. 22. Roster of Real Estate Service Practitioners


The Board, in coordination with the AIPO of real estate service practitioners, 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 addresses, license number, dates of registration or issuance of certificates, and other data which the Board may deem pertinent. Copies thereof shall be made available to the public upon request.

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/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. Foreign Reciprocity

No foreign real estate service practitioner shall be admitted to the licensure examination or be given a certificate of registration or a professional identification card, or be entitled to any of the privileges under the R.A. No. 9646 and the IRR 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 citizens of such foreign country; Provided, That the guidelines therefor issued by the Commission, or by the Board subject to the approval of the Commission, shall govern the provisions of the foregoing Sec. 23 and of the herein Sec. 24.


ARTICLE IV.

PRACTICE OF REAL ESTATE SERVICE


SEC. 25. Oath

All successful examinees qualified for registration, all qualified applicants for registration without examination and accredited salesperson shall be required to take an oath before any member of the Board or any officer to the Commission duly authorized by the Commission to administer oaths prior to entering into the practice of real estate service in the Philippines. Provided, That the mass oathtaking of the foregoing may be initiated and supervised by the Board in coordination with the AIPO.

SEC. 26 Professional Indemnity Insurance/Cash or Surety Bond

All real estate brokers and private real estate appraisers shall, in addition to the oath referred to in the preceding section, be required to post a professional indemnity insurance/cash or surety bond, in an amount to be determined by the Board, which in no case shall be less than Twenty Thousand Pesos (P20,000.00), without prejudice to the additional requirement of the client. It will be renewable every three (3) years.

SEC. 27. Acts Constituting the Practice of Real Estate Service

Any single act or transaction embraced within the provisions of Section 3(G), Rule II hereof, as performed by real estate service practitioners, shall constitute an act of engaging in the practice of real estate service.

SEC. 28. Exemptions from the Acts Constituting the Practice of Real Estate Service

The provisions of this R.A. No. 9646 and the IRR shall not apply to the following:

(A) Any person, natural or judicial, who shall directly perform by himself/herself the acts mentioned in Section 3 hereof with reference to his/her or its own property, except real estate developers who are regulated by and registered with the Housing ang Land Use Regulatory Board (HLURB) pursuant to law and other resolutions/regulations such as but not limited to Presidential Decree (PD) 957, as amended,and Batas Pambansa Blg. 220 and their Implementing Rules and Regulations;

(B) Any receiver, trustee or assignee in bankruptcy or insolvency proceedings;

(C) Any person acting pursuant to the order of any court of justice;

(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, without requiring any form of compensation or remuneration; and

(E) Public officers in the performance of their official duties and functions, except government assessors and appraisers.

SEC. 29 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 the R.A. No 9646 and the IRR is a holder of a valid certificate of registration and professional identification card or a valid special/temporary permit duly issued to him/her by the Board and the Commission; and, in the case of real estate brokers and private appraisers, they have paid the required bond as provided for in R.A. No. 9646.

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Go to PART 1
Go to PART 2
Go to PART 3
Go to PART 4

8 comments:

Bonzenti said...

Good PM brod,

I am a Government Financial Institution employee. My present function is bank appraiser. I am also a licensed real estate appraiser. Please give me some insights on how would Section 28 (E)of RESA Law-IRR, be interpreted, considering that I am employed with a GFI? The resa law does not mention on GFI appraisers in relation with the practice of the profession. Are we still allowed to practice our profession, as mandated by the law, even that we are a GFI appraisers? What is your advise on this?

JOHN ODONNELL R. PETALCORIN said...

You are an "employee" (organic personnel) of the GFI and your official function is to appraise properties in compliance to the order and instruction of the GFI, you do not need to be a licensed appraiser as provided under Sec. 28-E.

However, if you are an independent contractor that provide appraisal services to GFI and any other kinds of customers, then you need a PRC license because you are not exempted by the licensing requirement.

While currently being employed by the GFI, you may perform private practice of appraisal services to the private clients outside your official function in the GFI as long as the following two conditions will be met: (1) you have an appraiser's license from PRC and (2) you are allowed by the GFI to do secondary job despite working full-time with the GFI that employs you.

When your employment with the GFI terminates, you will need a PRC license to practice real estate appraising.

Being an employee of the GFI, you may be able to get an appraiser's license from PRC without examination until 30 July 2011 by virtue of Section 20-B/C of RA. No. 9646 and its IRR.

Anonymous said...

Hi, I am a permanent government employee for more than 28 years and holding the position of Local Assessment Operations Officer III in the Office of the City Assessor.would like to know if my position could be classified under the definition of "Appraiser" in the IRR of RA 9646.Can I also avail of Sec. 20 paragraph C under IRR of RA 9646? Thank you and more power to you.

JOHN ODONNELL R. PETALCORIN said...

Dear Anonymous Assessor:

You are covered by Section 20 and exempted in the exam for the Licensed Assessor.

However there is also a paragraph in Section 20 that says, "Provided, That those seeking to be licensed to a new credential level shall be required to take the pertinent Board licensure examination for the real estate service practitioners."

Therefore, as a Licensed Assessor, you still have to take the Appraiser Examination if you want to become a Licensed Appraiser because is is already "cross-over" to another type of real estate service.

JOHN ODONNELL R. PETALCORIN said...

@Anonymous: it means you have to take the Board Exam if you are a licensed Assessor who wants to become a licensed Appraiser, Broker, or Consultant.

Example in my case, I am already a licensed Broker. I have to take the Board Exam for Consultant is I want to become a Consultant.

RONNIE CANUTO said...

Hi, I'm ronnie,31, real estate consultant for 3 years and now real estate sales manager. I'm very much interested to take the RESA but i'm not a college graduate. I only took 2 years in college(84units completed). Is it possible for me to take RESA exam? Please help me. Thanks.

JOHN ODONNELL R. PETALCORIN said...

Real Estate Consultant ka na pala, bakit ka pa mag take ng exam? I assume you have read RA 9646.

Anonymous said...

i've been a licensed broker for four years and a licensed appraiser for one year but i was employed in the assessor's office doing appraisal works for the past ten years. Do you think i will be qualified to take the consultancy exam pursuant to sec. 14 of R.A. 9646