Real Estate Agent Please Read RA 9646
RA 9646
REAL ESTATE SERVICE ACT
SEC. 2. Declaration of Policy
The State recognizes the vital role of real estate service practitioner in the social , political , economic
development and progress of the country by promoting the real estate market ,stimulating economic
activity and enhancing government income from real property-based transactions. Hence, it shall
develop and nurture through proper and effective regulation and supervision a corps of technically
competent, responsible and respected professional real estate service practitioners whose standards of
practice and service shall be globally competitive and will promote the growth of real property industry.
Sec. 3. Definition of Terms
(5) Real estate salesperson - a duly accredited natural person who performs service for, and
in behalf of, a real estate broker who is registered and licensed by the Professional Regulatory
Board of Real Estate Service for or in expectation of a share in the commission, professional
fee, compensation or other valuable consideration.
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 this Act, 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 required bond as hereto provided.
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 in real estate brokerage, as maybe required by the Board. Real estate salespersons shall be under the direct supervision and accountability of 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 a signatory thereto. No real estate sales person, either directly or indirectly , can negotiate ,mediate or transact any real estate transaction for 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 this Act 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 received 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 a 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. 39. Penal Provisions.
Any violation of this Act, including violations of implementing rules and regulations, shall be meted the
penalty of a fine of not less than One hundred thousand (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 was 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.
Republic Act 9646
Explanatory Note
By: Rommel R. Dominguez (REBL # 19148R) REBAP Makati
The Philippine real estate practice was regulated by the Ministry Order 39 of the Bureau of Trade Regulation and Consumer Protection of the Department of the Department of Trade and Industrry (DTI-BTRCP 1985 ). In October 22,1987,during the administration of president Corazon Aquino, a Real Estate Service Bill was filled in House of Representative by some groups who wanted the M.O. 39 to have a stronger legislative basis in order to eliminate the colorums. After many generations of Congressmen sat on it for 11 years, it was finally fully deliberated by Senate under the Committee Chairmanship of Senator Panfilo Lacson , recommending approval of Senate Bill 2963 on December 9,2008. On the side of the House of Representatives, they also have their House Bill No. 3514. After 22 years and four (4) Presidents, it was finally approved during the Second Regular Session of the Fourteenth Congress, and jointly enacted upon the House of Representatives on May 12,2009 under leadership of Speaker Prospero Nograles and the Senate under the leadership of Senate President Juan Ponce Enrile.
It was President Gloria Macapagal-Arroyo who signed it into Law on June 29,2009.The law that regulates the real estate practice in the Philippines is now Republic Act No. 9646, entitled Real Estate Service Act of the Philippines.
R.A. 9646 was published in the Philippine Daily Inquirer on July 15,2009. In accordance with Sec. 45 of Republic Act. No. 9646, the 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. The RA 9646 takes effect August 1,2009.
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