Comprehensive Real Estate Seminar

(CRES) Review

Code of Ethics
DTI-BTRCP
Ministry Order No. 39,
Series of 1985

Ethics is the branch of moral

science, idealism, justness and
fairness which treats of the duties
that a member of a profession or
craft owes to the public, to the
governments, to his clients or
patron, and to his professional
brethren or members.

The Realty Service Practice, a profession, is

dedicated to the promotion, development
and conservation of land and natural
resources, including improvements and
rights and interest appurtenant thereto for
the beneKit and enjoyment of the Filipino
people. Those engaged therein are bound by
a code of conduct, morals, and values in
performance of their duties and obligations.

NATIONAL CODE OF ETHICS FOR THE

REALTY SERVICE PRACTICE
to govern the rule of conduct

Who are the Real Estate Practitioners?

Real Estate Consultants

Real Estate Appraisers
Real Estate Assessors
Real Estate Brokers
Real Estate Salespersons

Realty Service Practice - a profession,

calling or occupation is dedicated to the
promotion, development including
proper zoniKication and conservation of
land & natural resources, including
i m p r o v e m e n t , r i g h t s , i n t e r e s t
appurtenant thereto for the beneKit &
enjoyment of the Filipino people they
serve.

Declaration of Principles
Section 1. The realty service practice is a noble
profession, calling or occupation and those
engaged therein shall abide by and comply with all
the laws, decrees, orders and rules and regulations
enacted or promulgated by the duly constituted
government authorities.

Declaration of Principles
Section 2. Utmost Kidelity, sincerity, respect for
colleagues in the profession & honesty shall be
observed at all times by those in the realty service
practice in relation with the client, the community
& the nation in general

S e c t i o n 3 . A d e q u a t e k n o w l e d g e ,
competence and expertise in real estate
development and management shall be
maintained; and upgrading of the standards
of practice shall be effected when the needs
arises; all these for and in the interest of the
social & economic progress of the country.

Section 4. The spirit of camaraderie,

cooperation and professional relationship
b y r e s p e c t i n g t h e r i g h t s o f t h e
practitioners shall be promoted; and every
organization to which they shall be
encouraged to join shall have such aims
and purposes as will set up, upgrade, and
maintain a high level of integrity, honesty
and competence in the profession for the
best interest of the community and the
nation.

Section 5. A high level of professional

respects with colleagues, in the realty
service practice shall be maintained and the
dealings with each other shall always be fair,
honest and just;

Section 6. The Golden Rule which reads

Treat others as you like them to treat
you shall be observed in all dealings and
relation of the practitioners with clients,
fellow practitioners, the organization to
which they belong and the general public.

Categories in the Rules of Conduct

a. In relation to the government
b. In relation to the public
c. In relation to client / customer
d. In relation to fellow practitioner/
colleague
e. In relation to the organization

In Relation to the Government

1. The practitioner should secure all the
necessary license, permits and authority
for the PRBRES and other government
agencies as maybe required by law,
ordinance or rules and regulations and
comply with all the requirements thereof
before engaging in the same

2. He should pay any and all taxes, fees,

dues, levies and charges that the government
may impose in accordance to law, ordinance,
rules and regulations.
3. He should help, assist and cooperate
with the Department of Trade and Industry &
all other government agencies &
instrumentalities in the promotion,
development proper zonification,
conservation of lands & other natural
resources, its improvements & rights &
interest therein.

4. He should not encourage, abet, tolerate or

participate in the evasion or illegal reduction
in the payment of all taxes, fees, dues, levies
or charges that may be imposed by the
government.

5. He should not offer or agree to pay, to split or

rebate any commission, fee or valuable
consideration, directly or indirectly with any
person who is not duly licensed practitioner
or to cooperate, assist or endorse any
transaction or engagement of his services in
violation of any existing laws, rules or
regulations.

6. He should indicate the certificate

issued by the Department of Trade and
Industry in his letterheads, dry seal,
signboard, advertisement in relation to
the realty service practice.

In Relation to the Public

1. The practitioner should be imbued
with a social conscience for he does not
live by himself and his family alone but
he is a part of a society with deKinite
social responsibilities.

In Relation to the Public

2. He should ensure the highest and
best use of the land & the equitable
distribution of ownership, irrespective of
political beliefs, cultural backgrounds,
sect, religions or class.

3. He should keep himself well

informed as to any movement affecting
real estate in the community, city or
province, so that he may be able to
contribute to public thinking on matters
of taxation, land use, city planning,
zonification & other purpose of the
government.

4. He should cooperate with the

government in protecting the public
against deceptive, unfair and
unconscionable or misleading acts &
practices of some unscrupulous or
unlicensed practitioners like fraud,
misrepresentation, concealment of
relevant information and other
related unethical practices.

5. He should ascertain all pertinent

facts concerning every property and
avoid errors, exaggerations
misrepresentation or concealment of
pertinent facts in dealing with the
general public concerning real estate
transactions.

6. He should not be instrumental in

introducing in a neighborhood a certain
character or use of property which will
tend to impair or erode property values
within that neighborhood.

7. He should not be a party to the

naming of a false consideration in a
deal, unless it be the naming of an
obviously nominal consideration.
8. He should not engage on activities
that constitute the practice of law and
should recommend that title be
examined and legal counsel be obtained
when the interest of either party require
it.

9. He should keep in a special bank account

separate from his own funds, money coming
into his hands in trust for other persons such
as escrows, trust funds, clients earnest money
and other like items.

10. In his advertisement brochures and

announcements, he should present a true
picture of the property, its improvements,
right and interest therein including whatever
liens or encumbrances it may have if any and
should indicate the name, firm name, address
and license number of the broker under
whom he is employed.

11.
He should see to it that all
agreements, taxes conditions,
financial obligations and
commitments in real estate
transaction, are in writing, duly
signed by all parties concerned & if
necessary to be properly
authenticated by a notary public.

Some Other Duties to the Public

..He should not deny equal
professional services to any
person for reasons of race, color,
religion, sex, handicap, familiar
status or national origin

In Relation to the Client

1. The practitioner in accepting an appointment or
authority to act for and in behalf of a client or
customer, should pledge himself with
utmost fidelity and good faith to protect and
promote the interest of his client without in any
manner sacrificing the legitimate interest of the
other party in the transaction.

In Relation to the Client

2. For the sake of justice & fairness to his client who
have reposed confidence in him, the practitioner
should endeavor to be well informed of
current legislative, policies and programs of
the government including proposed legislation
which may affect the interest of his client.

3. He should not accept any commission or fee or

any valuable consideration from any party in
any transaction except from his client unless
with the full knowledge and consent of all
parties in the transaction. He shall not also
introduce or work for an overprice from
either the buyer or seller except the usual

standard rate of commission on any real

estate transaction .

4. He should charge & collect only such fees or

commission as are fair and reasonable in
accordance with usual schedule of commission.

5. He should not advertise any property

without authority and in any offering the
price quoted should be in accordance with
the price agreed with the owners as the
offering price.

6. In the event more than one formal offer on a

specific property is made before the owner has
accepted a proposal, all written offers
should be presented to the owner for his
decision.
7. He should endeavor to make his client
conclude a fair contract advantageous to
both.

8. He should assist his client acquire possession

and ownership of the real property both in
accordance with the terms & condition agreed
upon.
9. In case he is called upon to act as witness in a
court proceeding, he should give his testimonies in
the most unbiased, honest, truthful and
professional manner.

10. As a real estate appraiser he should not

render an opinion without careful and
thorough analysis and interpretation of all
factors affecting the value of the property. His
counsel and advice constitutes a professional
service for which he should make a fair and
reasonable charge.

11. As an appraiser he should not undertake to

make an appraisal or render an opinion that
is outside the field of his experience and
competence unless he obtains the assistance
of another practitioner familiar with such
type of property unless the facts are disclosed
to the client.

In Relation to Fellow Practitioners

1. He should not solicit a listing which is currently
listed exclusively with another broker unless the
listing agreement has expired or revoked by the
owner and the owner offers to list the same to the
new broker without soliciting the same.

In Relation to Fellow Practitioners

2. When he accepts a listing from another broker,
the agency of the broker who offers the listings
should be respected until it has expired and the
property has come to the attention of the
accepting broker from a different source, or until
the owner without soliciting , offers the list with
the accepting broker. Such a listing should not be
passed to a third broker or published in a daily
newspaper without the knowledge & consent of
the listing broker.

3. Signs giving notice of a property for sale, rent, lease

or exchange should not be placed on any property by
more than one broker and only if authorized by the
owner.

4. He should not use information obtained by him from
a listing broker through offers to cooperate or received
through multiple listing services or other sources
authorized by the listing broker for the purpose of
creating a referral prospects to a third broker or for
creating a buyers prospect, unless such is authorized
by the listing broker.

5. He should cooperate with other broker on

property listed and share the commission on an
agreed basis. Negotiation concerning
property listed exclusively with one broker
should be carried with listing broker and not
the owner, except with the consent of the
listing broker.

6. He should not solicit or use the services of an
employee or salesman of another practitioner
without the knowledge of the employer.

7. He should not criticize publicly a

competitor nor volunteer an opinion of a
competitors transaction. If his opinion is
sought, it should be rendered with
professional integrity and courtesy.

8.The practitioner should seek no unfair
advantage over his fellow practitioner and
should willingly share with the lesson of
his experience and study.

9. He should conduct his business properly

to avoid any controversy with his fellow
practitioners. In the event of a controversy
between practitioner belonging to the same
o r g a n i z a t i o n o r a s s o c i a t i o n , s u c h
controversy should be submitted for
arbitration to said organization whose
decision if accepted by both parties, will be
Kinal and binding as far as the association is
concerned.

10. In case the practitioners in a

controversy are not members of any
duly recognized organization or the
Arbitration Boards cannot settle the
controversy, the Department of Trade
and Industry shall assume jurisdiction
over said controversy;

11. In case a complaint is Kiled against a

practitioner with his organization or association
for unethical or unfair practice, he should
voluntary submit all pertinent facts before an
investigative body that may be formed by his
organization or association for evaluation and
resolution.

In Relation to his Organization including the

N a t i o n a l A s s o c i a t i o n t o w h i c h h i s
Organization is AfSiliated.

1. In the interest of society and his own

profession, calling or occupation, the
practitioner should abide by the
constitution and by-laws of his
association or organization and the
national association to which it is
afKiliated.

2. He should support his organization

morally and Kinancially and actively
support its plans, programs and projects
for the beneKit of the members of the
organization or association.

3. Any practitioner should Kirst exhaust all
administrative remedies available under
existing laws, rules and regulations before
taking any judicial or quasi-judicial action.

Sanctions
Violation of any provision of this code shall give
rise to any sanction that may be imposed by the
organization to which a practitioner belongs as
a member, without prejudice however to such
disciplinary action that the Department of
Trade and Industry may deem expedient
thereon when the proper complaint against the
erring practitioner for alleged misconduct is
Kiled with the Department in accordance with
existing rules and regulations.

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