7/26/2010

IRR of RA 9646 - Real Estate Service Act of the Philippines - Part 4 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. 30. Positions in Government Requiring the Services of Registered and Licensed Real Estate Service Practitioners

Within three (3) years from the effectivity of R.A. No 9646, all existing and new positions in the local and national governments, whether career, permanent, temporary or contractual, primarily requiring the services of a real estate service practitioner, shall be filled only by registered and licensed real estate service practitioners.

All incumbent assessors holding permanent appointments shall continue to perform their functions without need for reappointment and without diminution of status, rank and salary grade, and shall enjoy security of tenure. However, they may not be promoted to a higher position until they meet the qualification requirements of that higher position as herein prescribed. Nothing in the R.A. No 9646 and the IRR shall be construed to reduce any benefit, interest, or right enjoyed by the incumbents at the time of the enactment of the R.A. No 9646. The appointing authority shall exercise his power to appoint the assessor in accordance with the provisions of R.A. No 9646 and the IRR only when a vacancy occurs.

SEC. 31 Supervision of Real Estate Salespersons

For real estate salespersons, no examination shall be given, but they shall be accredited by the Board, provided that they have completed at least two (2) years of college and have undergone training and seminars of at least twelve (12) credit units in real estate brokerage. Those salespersons who are registered withe DTI/HLURB or other salespersons who are in the active practice for at least three (3) years, as may be certified by a licensed broker or a real estate developer, prior to the effectivity of R.A. No. 9646 may also be accredited by the Board until 30 July 2011. Provided, further, That in both cases such Real Estate Salespersons must have undergone at least one hundred twenty (120) training hours in real estate brokerage, and have submitted original NSO certificate of live birth / birth certificate, NBI clearance, certificate of educational attainment or its equivalent, notarized certificate of training or seminar and notarized certificate of their supervising licensed brokers, as may be required by the Board.

Real estate salespersons shall be under the direct supervision and accountability of a real estate broker. As such, they cannot by themselves be signatories to a written agreement involving a real estate transaction unless the real estate broker who has direct supervision and accountability over them is also signatory thereto.

No real estate salesperson, either directly or indirectly, can negotiate, mediate or transact any real estate transaction for and in behalf of a real estate broker without first securing an authorized accreditation as real estate salesperson for the real estate broker as prescribed by the Board.

A real estate broker shall be guilty of violating R.A. No 9646 or the IRR for employing or utilizing the services of a real estate salesperson when he/she has not secured the required accreditation from the Board prior to such employment.

No salesperson shall be entitled to receive or demand a fee, commission or compensation of any kind from any person, other than the duly licensed real estate broker who has direct control and supervision over him, for any service rendered or work done by such salesperson in any real estate transaction.

No violation of this provision shall be cause for revocation or suspension of the certificate of registration of the real estate broker unless there was actual knowledge of such violation or the broker retains the benefits, profits or proceeds of a transaction wrongfully negotiated by the salesperson.

SEC. 32. Corporate Practice of Real Estate Service

(A) No partnership or corporation shall engage in the business of 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 registered and licensed 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 SEC as part of its annual reportorial requirements. There shall be at least one (1) licensed real estate broker for every twenty (20) accredited salespersons.

(B) Divisions or departments of partnership and corporation engaged in marketing or selling any real estate development project in the regular course of business must be headed by full-time registered and licensed real estate brokers.

C) Branch offices of real estate brokers, appraisers or consultants must be manned by a duly licensed real estate broker, appraiser or consultant as the case may be.

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 registered and 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 corporations.

SEC. 33. Display of License in the Place of Business

Every registered and 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 and professional identification card as well as the certificates of registration and professional identification cards of all the real estate service practitioners employed in such office.

SEC. 34. Accreditation and Integration of Real Estate Service Associations

All real estate service associations shall be integrated into one (1) national organization, which shall be recognized by the Board, subject to the approval of the Commission, as the only accredited and integrated professional organization of real estate service practitioners pursuant to PRC Res. No. 2004-178 Series of 2004.

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; Provided, That the Board, subject to the approval by the Commission, shall issue a Resolution on the membership and payment of the fee therefor as a requirement for the renewal of the Professional Identification Card. The automatic membership in the accredited and integrated professional organization of real estate service practitioners shall not be a bar to membership in other associations association of real estate service practitioners.

SEC. 35. Code of Ethics and Responsibilities for Real Estate Service Practitioners

The Board shall adopt and promulgate the Code of Ethics and Responsibilities for real estate service practitioners which shall be prescribed and issued by the accredited and integrated professional organization (AIPO) of real estate service practitioners.

SEC. 36. Continuing Professional Education (CPE) Program

The Board shall develop, prescribe and promulgate guidelines on 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 by the Board, subject to the approval of the Commission. 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.

SEC. 37. Enforcement Assistance to the Board

The Board shall be assisted by the Commission in carrying out the provisions of the R.A. No 9646 and the IRR and other policies. The lawyers of the Commission shall act as prosecutors against illegal practitioners and other violators of R.A. No 9646 and the IRR. The duly constituted authorities of the government shall likewise assist the Board and the Commission in enforcing the provisions of the R.A. No 9646 and the IRR.

SEC. 38. Indication of the Certificate of Registration, Professional Identification Card Number, and Privilege Tax Receipt (PTR) Number, and Accredited Integrated Professional Organization (AIPO) Number

Real Estate service practitioners shall be required to indicate the certificate of registration, professional identification card, PTR Number, and AIPO membership and/or receipt number, and the date of issuance and the duration of validity on the documents he/she signs, uses or issues in connection with the practice of his/her profession.

RULE V

PENAL AND FINAL PROVISIONS


SEC. 39. Penal Provisions

Any violation of the R.A. No 9646, including violations of this IRR, shall be meted the penalty of a fine of not less than one hundred thousand pesos (P100,000.00) 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 an unlicensed real estate service practitioner, 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 any.

SEC. 40. Appropriations

The chairperson of the Professional Regulation Commission shall immediately include in the Commission’s programs the implementation of R.A. No 9646 and the IRR the funding of which shall be included in the annual General Appropriation Act and thereafter.

SEC. 41. Transitory Provisions

Within ninety (90) days from the effectivity of the R.A. No 9646, the DTI - Bureau of Trade Regulation and Consumer Protection (BTRCP) shall transfer all pertinent records, documents and other materials to the Professional Regulatory Board of Real Estate Service.

SEC. 42. Implementing Rules and Regulations

Within six (6) months after the effectivity of the R.A. No. 9646, the Commission, together with the Board, and 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 and Responsibilities for real estate service practitioners, needed to implement the provisions of the R.A. No 9646. The Board shall issue and promulgate a resolution for the IRR subject to review and approval by the Commission.

Nothing in R.A. No. 9646 and the IRR shall be construed or interpreted to the effect or prevent the practice of any other profession legally regulated by any other professional regulatory law.

SEC. 43. Separability Clause

If any clause, sentence, paragraph or part of the IRR shall be declared unconstitutional or invalid, such judgment shall not affect, invalidate or impair any other part thereof.

SEC. 44. Repealing Clause

1. Sections 3(e) and (ee) of Act No 2728, as amended by Act No 3715 and Act No 3969, Sections 472 and 473 of the Local Government Code of 1991 (RA 7160), and pertinent provisions of the Civil Service Law are hereby modified accordingly.

2. All laws, decrees, executive orders, memorandum orders and other administrative issuance or parts thereof which are inconsistent with the provisions of the R.A. No. 9646 and/or the IRR are hereby modified, superseded or repealed accordingly.


SEC. 45. Effectivity

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.

Done in the City of Manila this 21st day of July, 2010.

Signed by:

Eduardo Gutierrez-Ong
Chairman

Ramon F. Cuervo III
Member

Bansan C. Choa
Member

Rafael M. Fajardo
Member

Florencio C. Dino II
Member

ATTESTED BY:

Carlos G. Almerol
Secretary, Professional Regulatory Board

APPROVED:

Nicolas P. Lapena, Jr
Chairman, PRC

Antonio S. Adriano
Commissioner, PRC

Nilo L. Rosas
Commissioner, PRC

ANNEX A - Official Seal of the Professional Regulatory Board of the Real Estate Service (PRBRES) [Image is not included in this blog]

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




If there is anything else important that I forgot to include in this article, please email me. 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!//JOHN PETALCORIN

8 comments:

Anonymous said...

if one needs to ask questions about this IRR, which office is the best one to call?

JOHN ODONNELL R. PETALCORIN said...

Dear anonymous: I have been trying to call the PRC this whole morning. I was passed on from PRC Secretary Dept (3140018) to Records Section (3140020), then then to Licensing Secretariat Section (7351533). In circle and endlessly busy phones. I gave up.

Anonymous said...

I started to be a salesperson in 2009, hoping I could pass the DTI broker exam. Then came the RESA ratification and then now with the guideline that only those who have been engaged with real estate for at least 10 years can take the boards. Is my understanding correct, or can I still take up the next boards even though I'm a newbie?

JOHN ODONNELL R. PETALCORIN said...

Dear anonymous salesperson in 2009:

Your understanding is wrong.

The "10 year experience" mentioned in Sec 14-D is a qualification for the Real Estate CONSULTANT examination. The 10 year experience is not a requirement for Broker examination.

For the Real Estate Broker Exam, the applicable qualifications are Section 14-A/B/C.

Anonymous said...

YEES!!!! Thanks.

anonymous salesperson in 2009

Anonymous said...

I am an employee of a developer with the title of account manager, we are handling brokers to sell our properties. Do i need to get a license.

JOHN ODONNELL R. PETALCORIN said...

Dear Anonymous EMPLOYEE of Developer:

That is a very good question. If you are merely handling (coordinating with) brokers to help them sell the properties of your employer (developer), you do not need to get a license AS LONG AS (1) you will NOT ENGAGE yourself in selling/offering directly to buyers and (2) you are not part of the sales commission recipients. Your function will be something like a Real Estate Projects Technical Expert wherein you have a number of brokers (you call it accounts) and you visit your brokers to introduce a new projects or update them of the status of projects, and also act as point person of information between the developer and broker. In pharmaceutical, you will be like a Medical Representative, you don't prescribe products to patients, you merely introduce the products to the Doctors. As long as your Work Description is clear and you don't make any secret deals of selling properties, my opinion is that you don't need to get a license.

J said...

Good day, as said in this section:
SEC. 31 Supervision of Real Estate Salespersons

For real estate salespersons, no examination shall be given, but they shall be accredited by the Board, provided that they have completed at least two (2) years of college and have undergone training and seminars of at least twelve (12) credit units in real estate brokerage. Those salespersons who are registered withe DTI/HLURB or other salespersons who are in the active practice for at least three (3) years, as may be certified by a licensed broker or a real estate developer, prior to the effectivity of R.A. No. 9646 may also be accredited by the Board until 30 July 2011. Provided, further, That in both cases such Real Estate Salespersons must have undergone at least one hundred twenty (120) training hours in real estate brokerage.
The question is, where can we get the 120 training hours? Is it provided by the PRC or Developers? Thanks for the quick response.