MO 39

Looking back at M.O. 39 of DTI -- the predecessor of RA 9646.

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Republic of the Philippines
DEPARTMENT OF TRADE AND INDUSTRY
Bureau of Trade Regulation and Consumer Protection

MINISTRY ORDER NO. 39

SUBJECT: RULES AND REGULATIONS GOVERNING THE LICENSING AND SUPERVISION OF REAL ESTATE SALESMEN, BROKERS, APPRAISERS AND CONSULTANTS AND REALTY SERVICE ORGANIZATIONS.

Pursuant to the provisions of Section 79 (B) of the Revised Administrative Code and Section 3 (e) and (ee) of Act No. 2728, as amended by Act Nos. 3715 and 3969 as well as Executive Order No. 913, the following rules and regulations governing the licensing and supervision of real estate salesmen, brokers, appraisers, consultants and realty service organizations are hereby promulgated for the information, guidance and compliance of all concerned.

ARTICLE I. STATEMENT OF POLICY

SECTION 1. The primary purposes of the Administrative Order are: (1) to protect the public from dishonest or incompetent salesmen, brokers, appraisers and consultants; (2) to prescribe standards and qualifications for these realty service practitioners; (3) to maintain high standards in the real estate profession; and (4) to protect licensed real estate salesmen, brokers, appraisers and consultants from unfair or improper competition.

ARTICLE II. SCOPE AND IMPLEMENTING AUTHORITY

SECTION 1. JURISDICTION. The Director of Bureau of Trade Regulation and Consumer Protection (BTRCP) shall qualify, approve, license, supervise, suspend, and revoke the license of real estate salesmen, brokers, appraisers, and consultants. He shall qualify, register, recognize, supervise and withdraw or revoke certificates of recognition issued to associations of real estate brokers, or other realty service practitioners and the national federations of such organizations and to accredit seminars conducted by said organizations.

SECTION 2. CRITERIA FOR ACCREDITATION OF SEMINARS FOR REALTY SERVICE PRACTICE. The Director shall accredit comprehensive real estate seminars intended to prepare examinees for licensing as real estate broker, appraiser or consultant; provided, that such seminars shall a) be conducted by single proprietorship, partnership or corporation duly registered with the Department of Trade and Industry whose principal purpose is real estate education, or any real estate association which is affiliated with any member of the Realty Service Council; b) consists of at least 24 lecture hours; and c) cover the subjects prescribed in Article 6, Section 1 of this Administrative Order and the corresponding syllabus for each subject as approved by BTRCP.

The accreditation shall remain in full force and effect for all seminars conducted subsequent to said accreditation unless revoked by the Director upon proof that any single class of the seminar has deviated from or failed to comply with the required criteria for accreditation.

ARTICLE III. DEFINITIONS

SECTION 1. REAL ESTATE. It is defined as the land and or building or other improvements permanently attached or annexed to land including the rights and interest thereon and includes rural, suburban and urban land and the developments thereof such as residential, commercial, industrial, institutional, agricultural, aquacultural or combinations of such rights and interests; resorts, land reclamation, building or housing projects either for individual or condominium ownership, memorial parks, townhouses, clubhouses and others of similar nature.

SECTION 2. REAL ESTATE SALESMAN. A natural person who performs for and in behalf of a real estate broker under whom he is licensed any of the functions of a real estate broker for or in expectation of a share in the commission, fee, compensation or other valuable consideration.

SECTION 3. REAL ESTATE BROKER. Any person, natural or juridical, who is agent of another person and for or in expectation of a fee, commission or other valuable consideration, shall perform any of the following acts: offers, advertises, solicits, lists, promotes, mediates, negotiates or effects the meeting of the minds on the sale, purchase, exchange, mortgage or lease of, or joint venture or other transactions in real estate or any interest therein.

SECTION 4. REAL ESTATE APPRAISER. A natural or juridical person who, for and in expectation of a fee, compensation or other valuable consideration, offers or renders services in estimating and arriving at an opinion of or act as an expert on real estate values.

SECTION 5. REAL ESTATE CONSULTANT. A natural or juridical person who, for and in expectation of a fee, compensation or other valuable consideration, offers or renders professional advice on: (1) the acquisition, preservation, utilization or disposition of lands or improvements thereon or valuable rights existing or to be created thereon; (2) the conception, planning and development of realty projects which may or otherwise encumber units like subdivision lots, condominium units, market stalls, memorial parks and the like.

ARTICLE IV. ACTS CONSTITUTING REAL ESTATE SERVICE PRACTICE AND ITS EXCEPTIONS

SECTION 1. ACTS CONSTITUTING REAL ESTATE SERVICE PRACTICE. Any single act or transaction embraced within the definition contained in ARTICLE III, SECTION 2 to 5 hereof, shall constitute an act of engaging in the real estate service practice.

SECTION 2. EXCEPTIONS. The provisions of these rules and regulations shall not apply to the following persons:

a)Any person, natural or juridical, who shall directly perform by himself the acts mentioned in ARTICLE III, SECTIONS 2 to 5 hereof with reference to his or its own property. Provided , that this exception shall not be applicable to those persons selling his or its own property for business purposes (e.g. developers).
b)Any receiver, trustee or assignee in bankruptcy or insolvency proceeding;
c)Any person acting pursuant to the order or any court of justice;
d)Public officers while performing their duties;
e)Any person who is a duly-constituted attorney-in-fact for purposes of sale, mortgage, lease or exchange or other similar contracts of real estate;
f)Any person who is duly authorized official or employee of a bank, insurance company, savings and loan association or financial institution with respect to the disposition and sale of its foreclosed or acquired assets.

ARTICLE V. LICENSING REQUIREMENTS

SECTION 1. LICENSE REQUIRED TO PRACTICE. NO person shall, directly or indirectly, engage in the real estate service practice or represent himself as a real estate salesman, broker, appraiser or consultant without having first secured the corresponding license in accordance with these rules.

All branch offices of every real estate broker, appraiser or consultant must be manned by a duly-licensed real estate broker, appraiser or consultant as the case may be and must be registered as such with the BTRCP.

The Bureau shall maintain a register of salesman, brokers, appraisers, consultants and realty service organizations which shall be updated every year. The register shall be open to the public for inspection during office hours.

SECTION 2. JURIDICAL PERSON IN REALTY SERVICE PRACTICE. No partnership or corporation shall engage as a realty service practitioner unless it is duly licensed by the Director. All persons authorized to act for and in behalf of the partnership or corporation as a realty service practitioner shall be duly-licensed realty service practitioners. The partnership or corporation shall submit a list of its representatives licensed as a realty service practitioner upon the filing of its application.

SECTION 3. APPLICATION FOR LICENSE. Any natural person who is duly qualified, may apply for license as a real estate salesman, broker, appraiser, or consultant on forms duly prescribed for the purpose.

SECTION 4. QUALIFICATION OF APPLICANT. Any natural person who applies for a license as a real estate salesman, broker, appraiser or consultant must, at the moment of filing of his application, also establish to the satisfaction of the Director that:

a)He is at least 21 years old;
b)He is honest, truthful and of good moral character;
c)He has not been convicted of any offense involving moral turpitude. As proof, he shall submit to the Director his clearance either from the Clerks of City of Municipal Court and Regional Trial Court of the locality where he has resided or held office for at least one (1) year immediately prior to the date of application or from the National Bureau of Investigation;
d)An applicant for a license as a salesman must have satisfactorily completed at least high school course or its equivalent without taking any qualifying examination;
e)If he is an applicant for a license for a real estate broker, he must have satisfactorily completed at least one hundred forty-four (144) units of college undergraduate study or must have finished seventy-two (72) units in college provided that he must have been a licensed real estate salesman for a period of four (4) years and duly recommended by a licensed broker. He must have passed a real estate brokers examination given by the Bureau and has or will be able to establish an office with the facilities necessary to satisfactorily render the service expected of a broker.
f)If he is an applicant for license as a real estate appraiser, he must have at least five (5) years active experience as a licensed real estate broker or (5) years experience as appraiser in any government agency, banking, financial institution or any company involved in appraisal of real estate properties, duly certified under oath by his employer or head of the agency provided that he has satisfactorily completed a four (4) year baccalaureate degree and must have passed a real estate appraisers exam given by the Bureau.
g)In case of a real estate consultant, the applicant must have at least ten (10) years experience as a licensed real estate broker and passed a real estate consultants examinations given by the Bureau.

ARTICLE VI. QUALIFYING EXAMINATIONS

SECTION 1 � SUBJECTS. An examination shall be given for applicants for license as real estate brokers, appraisers and consultants which shall include the following subjects:

A) FOR REAL ESTATE BROKERS

Fundamentals of property ownership; legal requirements for real estate practice; real estate brokerage practice; subdivision development; condominium concept; real estate financing, taxation and economics; basic principles of ecology; urban and rural land use, planning, development and zoning; legal aspects of sale, lease and mortgage and documentation and registration.

B) FOR REAL ESTATE APPRAISERS

General real estate information; theories and principles in appraisal; laws affecting real estate appraisal, approaches and researches; practical appraisal mathematics; appraisal report writing income and investment problems; appraisal of machineries and equipment; case studies.

C) Qualifying examinations, written or oral, shall be given for applicants for license as REAL ESTATE CONSULTANTS. Applicants shall be required to prepare a thesis, project feasibility studies or case studies that will show proof that said applicant can provide professional advice or judgment on �

1. The acquisition, preservation, utilization or disposition of lands or improvement the � on or valuable rights existing or to be created thereon.
2. The conception, planning and development of realty projects which may or otherwise encumber units like subdivision lots, condominium units, market stalls, memorial parks and the like.

D) The provision of these rules and regulations and the Code of Ethics of realty service practice approved by the Secretary of Trade and Industry.

E) And such other subjects as the Director may deem proper and necessary to be included.

SECTION 2 � APPLICATION FOR EXAMINATION. Applicants for examinations for real estate brokers, appraisers and consultants may apply with the Department on forms duly prescribed for the purpose. Applicants shall possess the educational and/or experience requirements provided for under the rules, AT THE TIME OF FILING of the application.

EXAMINATION COMMITTEE - There shall be three (3) examination committees, one each for real estate brokers, appraisers and consultants. The committees for real estate brokers and appraisers shall be composed of four (4) members each. The Director shall appoint one (1) representative from the Bureau who will be member of both committees and three (3) each for both committees to be recommended by the Presidents of the national organizations of real estate brokers, appraisers and consultants, respectively. Each member shall serve for at least two (2) years unless sooner removed for cause.

In case of the committee for consultants, it shall be composed of five (5) member; one from the BTRCP and four (4) members to be recommended by the President of the national organization of consultants.

The members of the aforementioned committees shall serve for two (2) years unless sooner terminated by the Director or any higher authority. The representatives of the national organizations of real estate brokers, appraisers and consultants shall be entitled to an honorarium of Five Hundred (P500.00) pesos each for every examination conducted by each committee but not the representative of the BTRCP. In case the examination is held outside Metro Manila, the representative of the BTRCP shall be entitled to transportation expenses and her diems but not the representatives of the national organizations.

The representative of the national organizations must have at least ten (10) years of exemplary experience as licensed real estate brokers for the committee for brokers, five (5) years as licensed real estate appraisers for appraisers and five (5) years as licensed real estate consultants.

These committees shall conduct the examination under direction and supervision of the Director who shall provide the facilities for said examination.

ARTICLE VII. DURATION, RENEWAL AND TERMINATION OF LICENSE

SECTION 1 � DURATION OF LICENSES. All licenses for real estate brokers shall expire on December 31st of each year.

In the case of real estate appraisers and consultants, the duration of the license shall be for a period of three (3) years provided that the license fee for the three (3) year period shall be paid in full upon the issuance of the license.

SECTION 2 � LICENSE NUMBER. A permanent license number shall be assigned to each broker, whether natural or juridical, appraiser and consultant by the Director which number shall be indicated in letterheads, dry seals, signboards, advertisements and other public announcements. In case of a salesman, the license number of the broker under whom he is licensed shall be indicated.

SECTION 3 � RENEWAL OF LICENSE. Licenses may be renewed within thirty (30) days after its expirty date upon application in the form duly prescribed by the Bureau.

If the licensee renews the certificate after thirty (30) days but within the year for renewal, he must pay a surcharge of fifty (50%) percent of the basic fee in addition to the license fee.

If he renews his license after one or more years, he shall pay the basic license fee for all the years he was not licensed plus fifty (50%) surcharge on the total basic fee.

SECTION 3.1 � CONTINUING EDUCATION. Any person who has passed the examination given by the bureau but FAILS TO SECURE A LICENSE within two (2) years from the date of passing the examination or who FAILS TO RENEW his or her license for three (3) consecutive years shall be required to submit a CERTIFICATION from a single proprietorship, partnership or corporation and duly registered with the DTI whose principal purpose is real estate education or any real estate association which is affiliated with member of the Realty Service Council (RSC) that he has completed a total of twenty (20) hours before his license can be issued or renewed.

Realty service practitioners shall be required every three (3) years to submit a certification from a single proprietorship, partnership or corporation and duly registered with the DTI whose principal purpose is real estate education or any real estate or any real estate association which is affiliated with any member of the Realty Service Council (RSCP) that he has completed a total of sixteen (16) hours. Failure to submit the certification shall mean non-issuance or non-renewal of the license.

SECTION 4 � CUSTODY OF SALESMAN�S LICENSE, TERMINATION OF EMPLOYMENT. The real estate salesman� license certificate must be delivered to and displayed at the office of his principal broker. If for any cause whatsoever the services of the salesman shall be terminated, this fact and the reasons therefore must be transmitted to the Director and the salesman�s license surrendered for cancellation by his principal broker within fifteen (15) days from the date his services are terminated. It is understood that the broker shall be liable for the acts of the salesman until the receipt of notice of termination by the Director.

ARTICLE VIII. BOND, CERTIFICATION AND LICENSE FEES

SECTION 1 � BOND � Before the license of a real estate broker is granted, the applicant shall submit to the Director a good and sufficient bond in the amount of FIVE THOUSAND (P5000.00) PESOS payable to the Republic of the Philippines. It may either be a cash bond, surety bond issued by a duly licensed surety company, bonds of the Republic of the Philippines, or bond secured by a real estate mortgage. In case of bonds issued by surety companies, the bond shall provide that it shall remain in full force and effect until cancelled or released by the Director or superceded by another bond which shall assume any and all obligations of the previous bond. Said bond shall be conditioned upon the faithful and honest seded by another bond which shall assume any and all obligations of the previous bond. Said bond shall be conditioned upon the faithful and honest discharge by the applicant as well as the real estate salespersons working under him of their duties, the applicants shall be liable on the bond to any and all who may suffer loss by reason of such failure.

SECTION 2 - CANCELLATION OR RELEASE OF BOND. When a licensee desires to have his bond cancelled or released other than for purposes of substituting with another bond, he must comply with the following requirements:

1. Apply in writing and under oath to the Director for the release and cancellation of his bond and state among other things that there is no pending claim or obligation against him from his client or person with whom he has real estate transactions;
2. Publish a notice in a newspaper of general circulation in the locality where his principal office is located stating among other things that he has applied to the Director for the release and cancellation of his bond. The notice shall further state, that any person having claim for money or property against him in his realty service practice must file his claim with the Director within thirty (30) days from the date of publication;
3. Submit proof of publication; and
4. Surrender his license certificate.

SECTION 3 � CERTIFICATION IN LIEU OF THE BOND REQUIRED IN THE AFOREMENTIONED SECTION. The applicant may opt to secure a certification from a recognized real estate association that it guarantees the faithful and honest discharge by the applicant as well as the real estate salespersons working under him, of their duties and shall be liable to any and all persons who may suffer loss by reason of such failure to up to the amount of FIVE THOUSAND (P5,000.00) PESOS.

ARTICLE IX. SUSPENSION AND REVOCATION

SECTION 1 � GROUNDS FOR SUSPENSION AND REVOCATION. The Director may, motu proprio or upon verified complaint in writing by any person, investigate the acts complained of against any real estate salesman, broker, appraiser or consultant provides that if that the acts or transactions complained of involved subdivision or condominium projects, the Director shall promptly indorse that matter to the Housing and Land Use Regulatory Board (HLURB). The Director may, after due notice and hearing, suspend or revoke the license for such period as he may deem proper when the license is found guilty of the following acts:

A. RELATION TO THE GOVERNMENT

1. Procuring license through fraud, deceit or false statement of fact which otherwise could have disqualified the applicant;
2. Splitting or offering or agreeing to pay, split or rebate any commission, fee or valuable consideration, directly or indirectly, with any party who is not duly licensed real estate broker or salesman under him, cooperating, assisting in or indorsing a transaction or engagement of his services; for a salesman, sharing his commission or fee with anyone other than the broker under he is licensed;
3. Failure to indicate his license number in his letterhead, dry seal, signboard, billboard, advertisement or other public announcement;
4. Any act or conduct that may demonstrate incompetence, untrustworthiness, dishonesty, fraudulent or improper dealings;
5. Disregard or violation of the law and the rules and regulations.

B. RELATION TO THE PUBLIC

1. Making any false or deceitful promise in advertisements, brochures or billboards, or other similar announcements;
2. Procuring or helping to procure consent to or affecting closing or consummation or any real estate transaction or engagement of his services by means of fraud, deceit, intimidation, violence or immoral offering;
3. Failure to account or remit within fifteen (15) days from receipt or possession of any money belonging to the client unless a different period is expressly agreed upon between the realty service practitioner and his client;
4. Failure to treat as trust account the money or other funds of his principal or client;
5. Conviction of crime for unlawful conversion of any person�s fund or property;
6. Negligence or failure to disclose or ascertain to any person with whom licensee is dealing any material fact or data or information relating to the property and within the knowledge of the licensee at the time of the transaction;
7. Any licensee who attempts or performs acts to sell property or advertises or places a �FOR SALE� sign on the property of which he is not authorized by the owner or holder of authority to sell or on which the authority to sell has expired;
8. Allowing a conflict of interest to arise between the licensee and his client under the following circumstances:

a) The real estate broker or salesman who fails to disclose to the buyer that the property he is offering for sale is owned by him or by his relatives within the 4th civil degree or by a partnership or corporation in which he or his relatives within the same degree have at least 20% proprietory interest;
b) The real estate broker or salesman who fails to disclose to the seller that the real estate broker or salesman is buying the property for himself or for his relatives within the 4th civil degree or for the partnership or corporation where he or his relatives within the same degree have at least 20% proprietory interest;
c) The real estate appraiser or consultant who accepts an assignment to appraise or to render an opinion of value and fails to disclose at the outset or in the appraisal or consultancy report that he or his relatives within the 4th civil degree or for partnership or corporation where he or his relatives within the same degree have at least 20% proprietory interest, has an interest on the property;
d) The real estate appraiser or consultant who accepts the assignment to appraise or render advise on a property, cotingent upon the reporting of a predetermined finding or recommendation to be made.

C. RELATION TO CO-BROKER

Representing any party to a real estate transaction to breach his contract for the purpose of substituting in lieu thereof a new contract where such substitution is likely to benefit or enhance the benefit or enhance the interest of the licensee.

D. RELATION TO HIS BOARD

1. Representing himself as a realtor unless he is a member in good standing of the association of realtors board that has the exclusive right to use the patented designation of REALTOR.
2. Using a logo, badge, name or insignia or membership in any real estate organization of which the licensee is not a member.

E. OTHER SIMILAR UNSOUND REAL ESTATE BUSINESS PRACTICES

SECTION 2 � EFFECT OF SUSPENSION OR REVOCATION OF LICENSE. The suspension or revocation of a real estate salesmen in the employ of such broker, pending a change of employer and the issuance of a new license to the salesmen. The real estate salesman's license may be issued under another broker for the unexpired period. The revocation or suspension of license does not relieve the erring salesman, broker, appraiser or consultant from any civil or criminal liability arising from the same acts.

SECTION 3 - INELIGIBILITY FOR RE-LICENSE IN CASE OF REVOCATION. A real estate service practitioner whose licensed is revoked by the Director for cause as provided in Section 1, Article X, shall be disqualified to obtain another or renewed license.

SECTION 4 - REINSTATEMENT OF LICENSE. A license surrendered to the Director for any cause other than for any grounds for suspension and revocation, may be reinstated for the unexpired term, upon application thereof, without the payment of any additional fee.

ARTICLE X. LICENSE CERTIFICATE, POCKET CARDS, ETC.

SECTION 1 - ISSUANCE OF LICENSE CERTIFICATE AND CARD. Upon payment of the fees required under Articles VIII, Section 3 (A, B & C) of these rules and regulations, the Director shall issue to the qualified applicant a license certificate as a real estate salesman, broker, appraiser or consultant with a permanent license number as specified under Article VII, Section 2 of these rules and regulations. In addition to the license certificate, the Director shall issue to the licensee a pocket card certifying that the person whose name, signature, thumbmark, date and place of birth, address or consultant. However, in the case of salesman, the name and address of the broker employer shall also appear.

SECTION 2 - DISPLAY OF LICENSE IN PLACE OF BUSINESS. Every licensed broker, appraiser or consultant shall establish and maintain a principal place of business and such other branch offices as his business may require, and shall conspicuously display therein his signboard and his license certificate and the licenses of salesman in his employ if any. Certified true copies of their license certificates shall be displayed in the branch offices.

SECTION 3 - REALTY SERVICE PRACTITIONERS WHO ARE ALSO DEALERS. If the licensee is also a real estate dealer, he shall include said business designation with the same size and type of letters to his designation as salesman, broker, appraiser or consultant in the signboard, billboards, brochures, advertisements, public announcement, letterheads and similar means of communication.

ARTICLE XI. REALTY SERVICE ORGANIZATION

SECTION 1 - ORGANIZATION . An association of duly licensed real estate service practitioners may be organized in any first class municipality, city or province by incorporating themselves in accordance with the existing laws of the Philippines.

SECTION 2 - PURPOSES. The purposes of the associations shall embody the following:

a) To provide facilities to each members as to enable them to adequately serve their clients and the community;
b) To promote the mutual interest of its members and the community;
c) To set up, upgrade and maintain the standards of a real estate business and realty service practice;
d) To adopt and enforce a Code of Ethics approved and accepted by DTI upon recommendation of the Director;
e) To establish a uniform schedule of minimum fees, commission or compensation to avoid unfair competition; and
f) To cooperate with the government agencies and entities as well as with other trade organization as regards adoption of laws, ordinances, regulations and functions involving or affecting real estate.

SECTION 3 - OFFICE. The association shall maintain an office with adequate facilities and personnel separate from and not connected with the office of any of its officers or members.

SECTION 4 - ANNUAL REPORT. A copy of the association's annual report audited financial statement and updated roster of members must be furnished the Bureau within thirty (30) days after the end of the fiscal year of the association.

SECTION 5 - RECOGNITION to only one association in a first class municipality or city or province shall be given by the Director as he may deem necessary. Only the association shall be authorized to use the term "BOARD" as part of the name of the association.

SECTION 6 - SPECIALIST IN REALTY SERVICE. The Director may register and recognize association of specialists in the realty service such as specialist in land subdivision development, properly management, housing condominium and other specialist as may later be created provided they affiliate themselves with the recognized national federation.

SECTION 7 - DESIGNATION OF TH REALTY SERVICE COUNCIL OF THE PHILS. AS THE CONSULTATIVE BODY OF THE DTI. Pursuant to Department Order No. 97, series of 1992. The RSCP has been designated as the general consultative body of the Department. The representative from the BTRCP to the Council shall be the Chairman of the Council.

The Council shall have the following functions:

1. To provide advice and/or recommendation to the DTI on all matters relating/affecting the real estate industry either on its own initiative or at the request of the DTI or any of its bureaus and agencies or other government agencies;
2. To initiate studies, policies, programs, projects and activities that shall lead to the further development and promotion of the realty business which may be implemented by the Council itself and/or the DTI and its bureaus and agencies and/or other government offices so that the interest of the public could best be served;
3. To recommend the accreditation of seminars for realty service practice;
4. To assist the Department in the conduct of the oathtaking of examines who passed the realty examination;
5. To perform other related activities that will compliment or supplement those being undertaken by the government agencies relevant to and falling under the real of the real estate industry; and
6. In order to effectively implement its programs, projects and activities, the Council is authorized to collect reasonable fees to cover administrative expenses.

SECTION 8 - CODE OF ETHICS. No association of realty service practitioners or their national federation shall be eligible for issuance of certificates of recognition unless their members shall abide by the Code of Ethics promulgated by the DTI upon recommendation of the Director.

SECTION 9 - CONCILIATION AND ARBITRATION. The realty service associations registered under this Order, shall provide in their By-Laws a fixed set of Rules on conciliation and arbitration to settle questions and disputes between and among the different associations registered under this Order, individual members of said associations and other licensees under this Order, their patrons, clients and the general public, which facility should first be availed of before elevating their complaints to the Director, the DTI of the court justice.

SECTION 10 - WITHDRAWAL OF RECOGNITION. The Director may withdraw a certificate of recognition to any of the above-mentioned associations if after due notice and hearing, he finds that said association not fairly representative of the best elements engaged in the realty service practice or specialization they represent, or has not satisfactorily pursued or is not pursuing the objectives of the organization or when the association does not or no longer serve public interest.

ARTICLE XII. ADMINISTRATIVE PROCEEDINGS

SECTION 1 - COMMENCEMENT OF ADMINISTRATIVE ACTIONS. All administrative actions involving realty service practice may be commenced motu propio by the Director, or by filling a written complaint under oath with the Bureau of an aggrieved party specifying among other things the following:

a) A brief statement of facts giving the background and the particular act/s and/or omission's complained of;
b) Sworn statement of witnesses or documentary evidence/s, if any;
c) The relief prayed for and preliminary or preventive measures or orders sought; and
d) Such other matters or details that shall guide the Director in appraising the nature of the complaint and the extent of the violation committed.

SECTION 2 - PREVENTIVE MEASURES. At any time after the commencement of an administrative action but prior to the resolution thereof, the Director, when so warranted by the circumstances may issue preliminary and/or preventive order/s such as, but not limited to, temporary cease and decease its order/s, to prevent or restrain the commission of acts, which would probably work injustice to or prejudice the rights of the complainant or any other person or entity involved and/or which may render any action, order or judgment in the case ineffectual.

SECTION 3 - MEDIATION-CONCILIATION. As soon as the complaint is instituted, the Director shall notify the party complained of to appear before him for the purpose of mediating the controversy. The mediation-conciliation process shall be governed by M.O. No. 69, Series of 1983 (Specifically Rule IV thereof) which implement Executive Order No. 913.

SECTION 4 - ANSWER BY RESPONDENT. Should there be a failure to amicably settle the dispute during the mediation stage, the Director shall immediately require respondent to submit his formal answer to the written complaint and thereafter, set the hearing for the formal investigation of the case.

SECTION 5 - FORMAL HEARING. The formal hearing on the complaint filed shall be conducted in the manner prescribed under Rule V, Section 35, M.O. 69, Series of 1983, which implements Executive Order No. 913, with Revised Rules of Court being made supplementary, when applicable.

APPROVED.