Real Estate Services Act implementing rules out soon

MANILA, Philippines – The first Professional Regulatory Board of Real Estate Service (PRBRES), created under Republic Act No. 9646, otherwise known as Real Estate Service Act (RESA), is now finalizing the law’s implementing rules and regulations (IRR) after completing extensive consultations with stakeholders in Manila and in the regions.

Upon approval of the Professional Regulation Commission (PRC), the IRR will trigger the full implementation of RESA to professionalize and regulate the real estate service practice, covering real estate consultants, appraisers, local government assessors, and brokers, as envisioned in the law.

The PRBRES, under the administrative supervision of the PRC, serves as the primary regulatory body for the real estate service practice. It is chaired by Eduardo G. Ong and has for its members Bansan Choa, Ramon Cuervo III, Rafael Fajardo, and Florencio Diño.

RESA seeks to develop a corps of technically competent, responsible and respected professional real estate service practitioners whoss standards of practice and service are globally competitive and will promote the growth of the real estate industry in the country.

The law requires real estate service practitioners to pass the licensure examinations given by PRC, as a prerequisite to practice their profession. The first licensure examinations for brokers and appraisers are scheduled in December 2010, while that for consultants is scheduled for early next year.

Local government assessors and government appraisers are to be licensed as appraisers, which license will be a requirement to their appointments.

Real estate salespersons, while not required to be licensed, are to be accredited by the board.

Real estate service professionals are also required to undertake continuing professional education, adhere to a Code of Ethics and Responsibilities, and organize themselves into an Accredited Professional Organization (APO).

In the 14th Congress, RESA was sponsored in the Senate by Sen. Panfilo Lacson, chairman of the civil service and government reorganization, and authored by Senators Miriam Santiago, Rodolfo Biazon, Antonio Trillanes IV, Francis Escudero, Miguel Zubiri, and Richard Gordon.

In the House, it was sponsored by Rep. Raul Gonzales, and counts among its authors Congressmen Raul Del Mar, Eduardo Zialcita, Rodolfo Valencia, Amado Bagatsing, Narciso Santiago III, Roman Romulo, and Mark Llandro Mendoza.

The RESA law also envisions that an academic program for the real estate service profession will be established in the country.

In May 2010, the University of the Philippines Open University (UPOU), in partnership with LAMP2, commenced the first offering of the Continuing Professional Education Program on Land Valuation (CPEPLV). The program is designed to develop into a full academic program on land valuation and management.

The professionalization and regulation program of real estate service practitioners is part of the real property valuation and taxation reforms being pursued by the government, through the Department of Finance, under the Second Land Administration and Management Project (LAMP2), with funding support by the World Bank and technical assistance from the AusAid.

RESA, which considers the important role of real estate service professionals in accelerating the growth of the real property market, and enhancing its contribution to national development, complements the Valuation Reform Act (VRA) bill, a legislative advocacy of DOF, which will be re-filed in the 15th Congress.