RESA

REPUBLIC ACT NO. 9646

T

H E

E A L

S T A T E

E R V I C E

C T

An Act Regulating the Practice of Real Estate Service in the Philippines, Creating
for the Purpose a Professional Regulatory Board of Real Estate Service,
Appropriating Funds Therefor & for Other Purposes

T HE R EAL E STATE S ERVICE A CT (RESA)

Now R.A. No. 9646

Signed 29 Jun 09
Published 15 Jul 09
(Philippine Daily Inquirer)

Regulatory law on the

practice of real estate
service in the Philippines
Professionalizes &
regulates practitioners
through the Professional
Regulation Commission:
Real estate consultants
Real estate appraisers
(including LGU assessors &NGA
appraisers)

Brokers

9646

overview
THE RESA LAW

R ATIONALE
Real property is a vital driver of the economy
Professionalization & regulation essential for

Stimulating the land market

Encouraging investments
Revenue generation by the government
Sound decision making of property owners
Better policy making & governance
Protection of public, etc.

Real estate practice is a profession with multidisciplinary body of knowledge

Gearing towards international best practices

R ATIONALE
Valuation/appraisal: core of professionalization
Covers a broad range of property types in varied
geographical & economic conditions
Results of such highly technical work provide the basis
for decisions with regard to property sales,
expropriation compensation, mortgage financing,
assessment of taxes, etc.

Consultancy as an expert level of practicing

valuation and/or brokerage
Brokerage facilitates transactions of parties
Profession requires technical competence/
continuing education & confidence of the public

W HY P ROFESSIONALIZE LGU A SSESSORS ?

They are appraisers who also perform assessment
function essentially for LGU taxation purposes

A very large group, larger than private appraisers:

physical presence all over the country outputs are
complex, voluminous & varied
Perform sensitive functions within a unique & highly
politicized environment
Output is crucial & critical to the viability of LGUs as
they directly affect local revenues & national income
Professionalization will provide them continuing
technical education & training geared to global
standards

S TATE P OLICY

(ARTICLE I. SEC. 2)

1. State recognizes vital role of the profession in

the social, political, economic development and
progress of the country

2. State to develop and nurture a corps of

technically competent, responsible and
respected professionals through proper and
effective regulation and supervision

3. State to promote standards of practice and

service to be globally competitive and the
growth of the real estate industry

salient provisions
THE RESA LAW

ACTS CONSTITUTING REAL ESTATE SERVICE PRACTICE

CONSULTANT

Render professional advice & judgment on the acquisition, enhancement,

preservation, utilization or disposition of lands or improvements thereon, &
the conception, planning, management & development of real estate projects

APPRAISER

Performs or renders, or offers to perform services in estimating & arriving at

an opinion of or acts as an expert on real estate values, such services of which
shall be finally rendered by the preparation of the report in acceptable written
form

ASSESSOR

Performs appraisal & assessment of real properties, including plants,

equipment, & machineries, essentially for taxation purposes

BROKER

Acts as an agent of a party in a real estate transaction to offer, advertise,

solicit, list, promote, mediate, negotiate or effect the meeting of the minds on
the sale, purchase, exchange, mortgage, lease or joint venture, or other
similar transactions on real estate or any interest therein

SALES PERSON

Performs service for, & in behalf of, a real estate broker for or in expectation of
a share in the commission, professional fee, compensation, or other valuable
consideration

- ARTICLE I. SEC. 3G

T HE P ROFESSIONAL B OARD
Board Creation/Composition (Sec. 4)
to be organized within 6 mos.
Appointment by the President from 3
recommendees chosen by PRC
2 members shall represent the govt.
assessor & appraisers
Term of Office (Sec. 7)
3 years each; re-appointment not to
exceed 6 consecutive years
First Board: Chairman: 3 years; First 2 members: 2
years; 2 other members: 1 year

Compensation /Allowances (Sec. 8)

based on existing rates of other Boards

Suspension/Removal from the Board (Sec. 9)

by the President, upon PRC recommendation
- for neglect of duty, abuse of power, oppression,
incompetence, etc., or for conviction of any criminal
offense involving moral turpitude.

Board to submit annual report to PRC

detailing all accomplishment (Sec. 11)
PRC to supervise the Board and provide
secretariat and enforcement assistance
(Sec. 10 & Sec. 37)

KEY POWERS & FUNCTIONS OF THE BOARD (ARTICLE II. SEC. 5)

Policy guidance
Licensure examinations; prescription of appropriate syllabi
Issuance, suspension, revocation or reinstatement of
certificates of registration or PRC ID
Monitor and enhance the practice of the profession; maintain
high professional, ethical/technical standards
Adopts a Code of Ethics & Responsibilities (Sec. 35)
Hear and investigate violations: quasi-judicial & admin powers
Safeguard & protect legitimate practitioners
Prescribe academic requirements for course offering; CPE
program; accredits seminars, lecturers, etc.
Supervise APO & related associations

QUALIFICATIONS OF CHAIR & BOARD MEMBERS (ARTICLE II. SEC. 6)

Filipino citizen; resident of the Philippines
Bachelors Degree related to real estate

active practice for at least 10 years prior to

appointment
bona fide member of the APO but not an officer or
trustee at the time of appointment
neither a faculty member of any academic institution
nor have any pecuniary interest in any group where
review classes or lectures are offered or conducted
good moral character, not convicted of a criminal
offense

LICENSURE EXAMINATION & REGISTRATION (ARTICLE III)

SCOPE OF EXAMINATION
(ARTICLE III. SEC. 13)

75% PASSING RATE IN ALL SUBJECTS;

N O G R A D E I N A N Y S U B J E C T B E L O W 5 0 % (ARTICLE III. SEC. 15)
1 0 D A Y S R E L E A S E O F E X A M R E S U L T S (ARTICLE III. SEC. 16)

QUALIFICATIONS OF APPLICANTS FOR EXAM (ARTICLE III. SEC. 14)

Filipino citizenship
Relevant bachelors degree (a Bachelor's degree in Real
Estate Service shall be a requirement upon its implementation by
the CHED)

Of good moral character & must not have been

convicted of any crime involving moral turpitude

For real estate consultants:

At least 10 years experience in either capacity as a licensed
real estate broker, an assessor, or as a bank or institutional
appraiser or an employed person performing RP valuation
At least 5 years experience as an appraiser

CERTIFICATE OF REGISTRATION & PRC ID (ARTICLE II. SEC. 17)

Photo
Photo

NAME OF PROFESSIONAL BOARD

NAME OF PROFESSIONAL

TITLE OF PROFESSION

TITLE OF PROFESSION

PRC ID renewable every 3 years

satisfy Board requirements, i.e. CPE
to be displayed in the place of business (ARTICLE IV. SEC. 33)
Practitioners to indicate license information (APO/PTR numbers/date of
issuance) on documents he/she signs (ARTICLE III. SEC. 38)

REVOCATION OF PRC ID & CERTIFICATE (ARTICLE II. SEC. 19)

fraudulent/deceitful procurement of a certificate of
registration &/or PRC ID, or special temporary permit
advertisement of unqualified person using somebody
elses certificate, PRC ID, or special temporary permit
unprofessional or unethical conduct
malpractice or violation of RESA, its IRR, & the Code of
Ethics & Responsibilities

Practice of profession while under suspension

REGISTRATION WITHOUT EXAMINATION (ARTICLE II. SEC. 20)

A

Those already licensed as real estate brokers, real estate appraisers or

real estate consultants by the DTI under Ministry Order No. 39

Assessors & appraisers who hold permanent appointment & are

performing actual appraisal & assessment functions for the last 5 years

Passed the RPAO Examination

Have undertaken relevant CPE to the satisfaction of the Board

Assessors & appraisers who hold permanent appointment & have at

least 10 years experience in real property appraisal or assessment

They are in active practice as brokers, appraisers & consultants

Have undertaken relevant CPE to the satisfaction of the Board

Have completed 120 hours of accredited training

Have undertaken relevant CPE to the satisfaction of the Board

Application shall be within 2 years from the effectivity of RESA

Renewal of the PRC ID is subject to the provisions of Section 17
B & C shall comply w/ the requirements for registration as RE
appraisers
Those seeking to be licensed to a new credential level shall be
required to take the pertinent licensure examination

FOREIGN PRACTITIONERS
Foreign Reciprocity Principle (ARTICLE III. SEC. 24)
Foreign practitioners, whose governments admit
Filipinos to practice the profession in their
countries, will be allowed to practice the
profession in the Philippines

Special/Temporary Permit (ARTICLE III. SEC. 23)

Applicable for foreign practitioners whose
services are urgently needed in the absence or
unavailability of local practitioners

practice of real
estate service
THE RESA LAW

OTHER REQUIREMENTS

TO PRACTICE PROFESSION (ARTICLE IV)

OATH (A IV, S . 25)

Applies to all qualified examinees, applicants
for registration without examination, and
accredited salespersons
RTICLE

EC

PROFESSIONAL INDEMNITY INSURANCE/BOND (A IV, S . 26)

Applicable only to private sector practitioners
- Additional requirement for licensure/renewal
Amount to be determined by the Board,
but not less than Php20,000.00
Client may require additional bond/insurance
Renewable every 3 years
RTICLE

EC

E XEMPTIONS

FROM THE

P RACTICE (A

RTICLE

IV. SEC. 28)

any person who shall directly perform the acts of real

estate service upon own property, except real estate
developers
receivers, trustees or assignees in bankruptcy/insolvency
proceedings
persons acting pursuant to the order of the court

attorney-in-fact on sale, mortgage, lease or exchange, or

other similar acts on real estate, without compensation
or remuneration in any form
public officers while performing their official duties &
functions, except government assessors & appraisers

PROHIBITIONS A GAINST UNAUTHORIZED PRACTICE

PRIVATE PRACTICE
No license + bond = no practice/advertisement of
profession (ARTICLE IV. SEC. 29)
GOVERNMENT PRACTICE
No license = no appointment as real property appraiser or
assessor in any NG entity or LGU (ARTICLE IV. SEC. 29)
Within 3 years, all existing & new NG & LGU positions, whether
career, permanent, temporary or contractual shall be filled
only by registered & licensed practitioners (SEC. 30)
Incumbent assessors/assistant assessors with permanent
appointments shall continue to perform functions without
reappointment, diminution of status, rank & salary grade, &
shall enjoy security of tenure. Not be promoted to a higher
position until they meet the qualification requirements of the higher
position.

S UPERVISION

OF

S ALES P ERSONS

(ARTICLE IV. SEC. 31)

accreditation only
2 years college
trainings & seminars in real estate brokerage
direct supervision & accountability brokers
cannot sign transaction documents, co-signed by a
licensed broker

not entitled to receive or demand a fee, commission or

compensation of any kind from any person, other than
the broker

C ORPORATE P RACTICE

(ARTICLE IV. SEC. 32)

SEC registration
Persons acting for the partnership or corporation should all be
duly registered & licensed practitioners
1 Broker for every 20 accredited salespersons
Divisions or departments engaged in marketing or selling any
real estate development project must be headed by full time
registered & licensed brokers
Branch offices must be manned by licensed practitioners
May hire the services of registered & licensed practitioners on
commission basis as independent contractors & not as
employees

ACCREDITATION & INTEGRATION (A

All real estate service
associations to be
integrated into 1 national
organization as the only
accredited & integrated
professional organization
of practitioners
Automatic membership to
the integrated organization
Is not a bar to membership
in other associations

RTICLE

IV. SEC. 34)

CONTINUING PROFESSIONAL EDUCATION (A

Board will develop,
prescribe, & promulgate
CPE program & guidelines
In consultation with the
integrated professional
organization & other
concerned sectors
CPE council

RTICLE

IV. SEC. 36)

CPE Council

penal & final

provisions
THE RESA LAW

P ENAL & F INAL P ROVISIONS

OF

RESA (A

RTICLE

V)

Penal Provisions (SEC. 39)

Fine - not < Php100,000.00; Imprisonment - < than 2 years
Offense committed by unlicensed practitioner, penalty double fine &
imprisonment
Corporate offense: covers those consented to or tolerated the violation

Appropriations for the Board (SEC. 40)

Funding requirement of RESA - GAA

Transitory Provision (SEC. 41)

DTI-BTRCP to transfer records & documents to PRC w/in 90 days

IRR (SEC. 42)

Shall be prepared w/in 6 mos by the Board, APO, DOF & CHED

Repealing Clause (SEC. 44)

Act Nos. 2728, 3715, & 3969 granting DTI the regulation of the practice
RA 7160 (Secs. 472 & 473) and pertinent provisions of CSC law

Effectivity (SEC. 45)

Takes effect 15 days after publication in the Official Gazette or in a
major daily newspaper of general circulation

RESA Implementation
Updates
THE RESA LAW

THE INTERIM ACCREDITED PROFESSIONAL

ORGANIZATION (APO)

October 22, 2009 PRC met with

LAMP-BLGF and the
public and private
sector RESPs
associations for the
organization of the
Federation of Real
Estate Service
Associations
(FRESA)

FIRST MEETING OF FRESA FOR THE ELECTION OF

OFFICERS

(1) technical assistance in the establishment of the interim FRESA; and

(2) support FRESA in the selection of nominees to the Board from the
government and private sectors and for submission to the PRC.

MEETING WITH P RIVATE SECTOR B UILDERS

The Subdivision and Housing Developers Association (SHDA) met with

the Advocacy Team on January 28, 2010 to discuss concerns on RESA

MEETING

WITH THE C IVIL SERVICE

APPLICATION OF THE GRANDFATHER

COMMISSION (CSC)
CLAUSE

ON THE

Meeting with CSC Chairman Francisco Duque III on February 11, 2010,
on the implementation of RESA

LAMP Assistance
THE RESA LAW

L AMP ASSISTANCE ON RESA IMPLEMENTATION

TAs for formulation of IRR

TA for development of licensure
examination
Nationwide RESA dissemination

Thank You!