UNKNOWN to many, real estate under the new landscape resulting from the passage of the Real Estate Service Act (RESA) or Republic Act No. 9646 more that two years ago, offers a lot of opportunities. As compared to other professions under the Professional Regulation Commission (PRC), real estate has this different levels or categories of practice:

1. Real estate salesperson – a duly accredited person who performs service for, and in behalf of a real estate broker who is registered and licensed by the Professiobak Regulatory Board of Real Estate Service for or in expectation of a share in the commission, professional fee, compensation or other valuable consideration.

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2. Real estate broker – a duly registered and licensed natural person who, for a professional fee, commission or other valuable consideration, acts as an agent of the 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 sumilar transactions on real estate or any interest therein.

3. Real estate assessor – a duly registered and licensed natural person who works in a local government unit and performs appraisal and assessment of real properties, including plants, equipment, and machineries, essentially for taxation purposes.

4. Real estate appraiser – a duly registered and licensed natural person who, for a professional fee, compensation or other valuable consideration, performs or renders, or offers to perform services in estimating and 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.

5. Real estate consultant – a duly registered and licensed natural person who, for a professional fee, compensation or other valuable consideration, offers or renders professional advice and judgment on: (i) the acquisition, enhancement, preservation, utilization or disposition of lands or improvements thereon; and (ii) the conception, planning, management and development of real estate projects.

Apart from the abovementioned levels or categories of practice and the usual practice of sales and marketing where real estate brokers are known for, real estate offers new fields in government service, private and corporate practice and the academe.

As far as government service is concerned, Sec. 30 Rule IV of the Implementing Rules and Regulations of RESA states: “Positions in Government Requiring the Services of Registered and Licensed Real Estate Service Practitioners. Within three (3) years from the effectivity of R. A. No. 9646, all existing and new positions in the national and local governments, whether career, permanent, temporary or contractual, primarily requiring the services of any real estate service practitioner, shall be filled only by registered and licensed real estate service practitioners.”

In the corporate practice of real estate service, the following rules shall be observed:

1. The partnership or corporation shall regularly submit a lists of its practitioners to PRC and SEC as part of its annual report requirements. There shall be at least one (1) licensed real estate broker for every twenty (20) accredited salespersons.

2. Divisions or departments of partnerships or corporations engaged in marketing or selling must be headed by a full-time registered and licensed real estate broker.

3. Branch offices of real estate service entities must be manned by a duly licensed real estate broker, appraiser or consultant as the case may be.

With a four-year course to be required for those who will take the licensure examination for the practice of real estate, it is expected that educational institutions will be at the forefront to offer this required courses by the school year 2012 – 2013. Sec. 14 Rule III of RESA IRR states: “Provided further, that as soon as a course leading to a Bachelor’s degree in Real Estate Service is implemented by the CHED (Commission on Higher Education), the Board shall make this course a requirement for taking the licensure examination.”

There is an urgent need therefore for real estate practitioners to serve this new field of practice in the academe. The law requires that the Regulatory Board of Real Estate Service prescribe, the essential requirements as to the curricula and facilities of schools offering real estate courses in real estate service, and that such requirements including the employment of qualified faculty members are properly complied with.

Real estate in government service, private and corporate practice and the academe? Make your choice.

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authored by Mr. Roberto Capili

The writer is a Certified Public Accountant and president of the Baguio Realtors Board, Inc. Apart from being a recognized Real Estate Practitioner as a Real Estate Broker and Educator, Lecturer and Resource Person, he is likewise a Business Management/ NGO/Cooperative Consultant, Project Development Consultant, Financial Advisor/Loan Broker and Columnist.

Just what exactly are the topics being tested on the Philippine real estate broker’s exam? During the last examinations given by the Professional regulations Commission last March 2011. The following tables of specifications (TOS) were adopted and the list of competencies included in a generic manner as deemed needed by the profession, academe, and industry. The TOS were reclustered by the Professional Regulatory Board, the Board,with the assistance of PRC Consultants for Test Construction Development.

TABLE OF SPECIFICATIONS IN

GENERAL / FUNDAMENTALS OF REAL ESTATE SERVICE

Weight 25% number of  items 100 questions

1.Named describe apply an analyze the Fundamentals of property ownership

2.Recall explain and practice and categorize the Code of ethics and responsibilities of real estate practitioners

3.State, translate/discuss, interpret and examine the legal requirements for real estate service

4.List identify use and classify real estate laws and taxation

TABLE OF SPECIFICATIONS

INSPECIAL AND TECHNICAL KNOWLEGE

Weight 25% number of  items 100 questions

1. Recall estimate illustrate outline /design the special and technical knowledge on subdivision development

2. State describe prepare differentiate condominium concepts and other types of real estate holdings

3. List explain illustrate analyze the legal aspect of sales mortgage and lease

4. Record translate/locate schedule/prepare and examine the documentation and registration of transaction

TABLE OF SPECIFICATIONS IN

PROFESSIONAL PRACTICE

Weight 50% number of  items 200 questions

1. Name discuss apply and appraise the Real estate brokerage practice

2. Recall describe compute /illustrate calculate real estate finance and economics

3. State discuss illustrate differentiate urban and land use

4. Recognize locate identify prepare and examine the planning development and zoning of

properties

5. State translate interpret and analyze the basic principle of ecology

6. Recall explain use analyze the  Basic appraisal for real estate brokers

Real estate is hot in the Philippines right now. All over the malls you see countless people giving out real estate advertisement flyers left and right. Real estate Project developments have sprouted all across the country offering vertical high rise condominiums and single family homes from the north to the south. Many people have jumped to a real estate sales career as a plethora of real estate inventory competes in the market.

The practice of real estate is governed by the RESA law. It mandates certain requirements for real estate practitioners critical of which is attendance of real estate related courses. A real estate broker would require 120 units of real estate courses aside from a college degree and take a PRC examination. A salesperson is required by law to take anywhere from12 units to 120 units of real estate related courses with a deadline of December 31, 2011 for PRC accreditation.

In the US, prior to engaging in the practice of real estate such as buying or selling, an individual needs to go through a school dedicated to real estate training and pass a real estate exam administered by the state. Here in the Philippines we see a lot of  real estate salespeople discussing sales transactions and  financing terms with the public that have not been properly accredited as of yet with the PRC.

The question is, as a real estate professional,  a real estate practitioner must have the duty to protect the buyer and seller in a real estate transaction. He or she must know the real estate laws and procedures in the Philippines to represent his clients interest.

The question again is where does one go to gain this real estate knowledge.

As a minimum the real estate broker must know the following areas:

Registration of public lands

Real estate brokerage and practice

real estate math

land titles and deeds- documentation and registration of property

land use planning, zoning and development, urban development and housing program

basic appraisal principles and practice

fundamentals of property ownership

real estate economics

principles and methodology in subdivision development

the condominium law and concept

rules and regulations under the RESA law

There are 5 basic factors when choosing your real estate training center.

1. Is the teacher competent in the area being discussed?

Too often the real estate course providers have many speakers that talk about their area of expertise. Remember that you are in school to learn the basic principles and fundamentals. The teacher has to be organized in thought and aware of the coverage breakdown of the exam questions.  What are the credentials of your teacher? Does he or she have the sufficient background and a teacher who can impart complex matters in a simple understandable format?

2. Does the school have sufficient and extensive materials for their student?

Find out beforehand what kind of training materials they will provide you. Is it just a couple of pages or extensive well researched material accumulated through years of teaching real estate.

3. Does the school have board topnotchers and what is their passing rate?

Find out how past students have fared in their examination and how many students have passed in the last examination.

4. Is the classroom location conducive to learning?

What kind of atmosphere does the school have? Is it conducted in a cramped room condition with students in complete focus or talking to each other? Do they include food and ample breaks?  Is the room temperature too cold or hot and the room well lighted? Is the classroom venue accessible to you?

5. Do they offer 120 hours of real estate training?

A school that provides 120 hours of learning is far better to succeed with their students than 60 hours of learning and 60 hours of on the job training. Why? Because the subject matter of real estate is broad and extensive and 120 hours is just barely enough time for a lecture on real estate brokerage and practice.

Are you just a mere test taker or a career professional? Your answer to this question will determine what real estate learning center you will want to attend.

1. What are the requirements for a person to get licensed in the Philippines?

There are five categories of real estate practitioners in the Philippines

(1) Real estate consultant – a duly registered and licensed -natural person who, for a professional fee, compensation or other valuable consideration, offers or renders professional advice and judgment on: (i) the acquisition, enhancement, preservation, utilization or disposition of lands or improvements thereon; and (ii) the conception, planning, management and development of real estate projects.
(2) Real estate appraiser— a duly registered and licensed natural person who, for a professional fee, compensation or other valuable consideration, performs or renders, or offers to perform services in estimating and 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.
(3) Real estate assessor — a duly registered and licensed natural person who works in a local government unit and performs appraisal and assessment of real properties, including plants, equipment, and machineries, essentially for taxation purposes.
(4) Real estate broker – a duly registered and licensed natural person who, for a professional fee, commission or other valuable consideration, 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.
(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.

2. What law governs the real estate practice in the Philippines?

Republic Act (R.A.) No. 9646, or The Real Estate Service Act of the Philippines which is more commonly referred to as the RESA law has been signed into law by president Gloria Macapagal-Arroyo last June 29, 2009. As mentioned in this article, it hopes to professionalize and regulate the practice of real estate in the country through the development of technically competent, trained, and accountable real estate practitioners in the country. We have published its full context here http://globaltechsource.net/realestate/?page_id=43

3. What is the importance of the RESA law?

The RESA law through the Professiobal Regulations Commission now governs the licensing of real estate practitioners.

Only licensed real estate practitioners are to be engaged in the practice of real estate subject a few exemptions.

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 pesos (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.

4. What should i do if i am interested to obtain a salesperson license?

• Category 1: He/she has at least 2nd year or 72 units in college of educational attainment, with or without prior experience
• Category 2: He/she is at least a highschool graduate and with and existing DTI/HLURB Registration
• Category 3: He/she is at least a highschool graduate and with at least three (3) years of active practice

• Category 1:
  • Original and Notarized Certificate of Educational Attainment on the Completion of at least two (2) years of college
  • Original and Notarized Certification of at least 12 credit units in a CPE class on Real Estate Brokerage

• Category 2:
  • Original and Notarized Certificate of Educational Attainment on the Completion of at least highschool graduate (e.g. Highschool diploma)
  • Original and Notarized Certification of at least 120 credit units (60 units classroom lecture, 60 units training/fieldwork, certified by the developer/broker)
  • Original and Notarized Certification of his/her DTI Licensed Real Estate Broker or HLURB-Registered Real Estate Developer
  • Original and photocopy of DTI/HLURB Certificate of Registration as Salesperson

• Category 3:
  • Original and Notarized Certificate of Educational Attainment on the Completion of at least highschool graduate (e.g. Highschool diploma)
  • Original and Notarized Certification of at least 120 credit units (60 units classroom lecture, 60 units training/fieldwork, certified by the developer/broker)
  • Original and Notarized Certification of his/her Supervising Real Estate Broker of HLURB-registered Real Estate Developer

The salesperson is not required to take a PRC exam.

5. What should i do if I’m interested to become a real estate broker?

In order to be admitted to the licensure examination for real estate service, a candidate shall, at the time of filing his/her application, establish to the satisfaction of the Board that he/she possesses the following qualifications:
(a) A citizen of the Philippines;
(b) A holder of a relevant bachelor’s degree from a state university or college, or other educational institution duly recognized by the CHED: Provided, That as soon as a course leading to a Bachelor’s degree in Real Estate Service is implemented by the CHED, the Board shall make this course a requirement for taking the “licensure examination; and
(c) Of good moral character, and must not have been convicted of any crime involving moral turpitude

at the present time you would need to have taken  120 hours of real estate courses to submit to the PRC.

6. What school of real estate can give me the 120 hour real estate course?

There are various real estate boards that schedule the 120 hours of real estate course. SCORE exponent training center is am independent training center and  recognized provider and will be holding the 120 hour real estate course starting this october 8, 2011.

Here is the link to the class information http://www.globaltechsource.net/score

7.When can I take the broker’s exam?

The last broker exam was given on March 2011 and is known to be given once a year. There is no final date set yet by the PRC but is it advised to take the 120 hour real estate course as early as you can to be able to master the subject matter.

WE HAVE received numerous queries on the new rules governing real estate practice. Since we cannot respond to all those questions, we are discussing in our article today the highlights of the recently published Implementing Rules and Regulations (IRR) of the new real estate law.

The law imposes a stiff penalty for violations in real estate service practice, which is found in Section 39, Rule V of the IRR: “Violations shall be meted a penalty of a fine of not less than P100,000 or imprisonment of not less than two (2) years, or both fine and imprisonment upon the discretion of the court.” The Real Estate Service Act (RESA) likewise, imposes a higher penalty for illegal, illegitimate or the so-called “colorum” real estate practice which shall be meted a penalty of a fine of not less than P200,000.00 or imprisonment of not less than four (4) years, or both fine and imprisonment upon the discretion of the court.

RESA and the rules and regulations governing real estate practice explicitly defines the acts or transactions which constitutes the practice of real estate service as: “Any single act or transaction embraced within the provision of Section (g) Rule II, IRR as performed by real estate service practitioners, shall constitute an act of engaging in the practice of real estate service.” (Section 27, Rule V, IRR)

Under RESA, assessors and government appraisers are included as real estate service practitioners. The law enumerates the acts which constitutes real estate practice as those which are done by the following:

1. Real estate consultant – a duly registered and licensed natural person who, for a professional fee, compensation or other valuable consideration, offers or renders professional advice and judgment on: (i) the acquisition, enhancement, preservation, utilization or disposition of lands or improvements thereon; and (ii) the conception, planning, management and development of real estate projects.

2. Real estate appraiser – a duly registered and licensed natural person who, for a professional fee, compensation or valuable consideration, performs or renders, or offers to perform services in estimating and 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.

3. Real estate assessor – a duly registered and licensed natural person who works in a local government unit and performs appraisal and assessment of real properties, including plants, equipment and machineries, essentially for taxation purposes.

4. Real estate broker – a duly registered and licensed natural person who, for a professional fee, commission or other valuable consideration, 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.

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 (PRB-RES) for or in expectation of a share in the commission, professional fee, compensation or other valuable consideration.

The exceptions to the enumerated acts that constitute the practice of real estate service include:

1. Any person, natural or juridical, who shall directly perform by himself/herself the acts mentioned in Section 3 hereof with reference to his/her or its own property, except real estate developers who are regulated by and registered with the Housing and Land Use Regulatory Board (HLURB) pursuant to law and other resolutions/regulations such as but not limited to Presidential Decree (PD) 957, as amended and Batas Pambansa Blg. 220 and their implementing rules and regulations;

2. Any receiver, trustee or assignee in bankruptcy or insolvency proceedings;

3. Any person acting pursuant to the order of any court of justice;

4. 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, without requiring any form of compensation or remuneration; and

5. Public Officers in the performance of their official duties and functions, except government assessors and appraisers.

Herein are the updated provisions on the Continuing Education Program (CEP) or Continuing Professional Education (CPE) for real estate service practitioners under the IRR:

1. Any holder of a valid DTI license and those who passed the 2009 and 2008 licensure examination given by DTI but failed to obtain their license on 30 July 2009 are required to earn fifteen (15) credit units.

2. Those who passed the 2007 licensure examination given by DTI but failed to obtain their license on 30 July 2009 are required to earn eighteen (18) credit units.

3. Those who failed to renew their DTI license prior to 30 July 2009 are required to earn twenty-four (24) credit units.

4. Those who passed the DTI licensure examination in 2006 and prior years but failed to obtain their license on 30 July 2009 are required to earn one hundred twenty (120) credit units.

The compliance with the CEP or CPE credit units is one of the requirements for a real estate service practitioner to obtain or renew his/her license and his/her registration (without examination) with the PRB-RES and the Professional Regulation Commission (PRC).

In this regard, we enjoin real estate practitioners who want to earn their CPE credit units, prospective real estate brokers licensure examinees and other persons to get in touch with us at Unit 306 3/F Antipolo Bldg., #89 Session Road, Baguio City for the schedules of the seminar on the Updated Real Estate Laws. Please call/text us at: 427-1971/ CP Nos. 09197229888/ 09285300285/ 09109302753.

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(The writer is a Certified Public Accountant and the president of the Baguio Realtors Board, Inc. Apart from being a recognized real estate practitioner and a real estate broker and educator, lecturer and resource person, he is a business management/NGO/cooperative consultant, project development consultant, columnist and financial advisor/loan broker.

For comments and more information of Real Estate Updates and Studies, you may get in touch with him at No. 04 Old Forestry Compound, Baguio City 2600. Tel. Nos. 427-1971 or 426-7582/ Cell No. 0910-930-2753 or email: bert_capili@yahoo.com/ bertcapili65@hotmail.com.

REAL Estate Brokerage as an organized calling or profession was pioneered in the Philippines in the early 1920’s by Mr. Collin M. Hoskins, an American serviceman who later turned into business, and his founding of the first realty service organization on November 7, 1938 which is the Manila Board of Realtors.

Apart from this, Mr. Hoskins set up the drafting of the rules and regulations on real estate practice called Commerce Administrative Order No. 3-6 promulgated and adopted on July 29, 1939. This code laid the basis and served as the guiding rules and regulations in the formal practice of real estate brokerage in the country.

The real estate business suffered a great setback during World War II and several years that followed after the end of the war in 1945. It was in the year 1960 when the requirement on examination for licensing as a Real Estate Broker was imposed for the first time. This significant year of 1960 was recognized in the real estate sector as the reckoning date of the start of its 50 years countdown in the formal recognition of real estate service practice.

It was not a smooth travel and rosy picture that real estate service practice undergone from 1960 and onwards. In 1985, Ministry Order No. 39 saw its first implementation by then Ministry of Trade and Industry (now the Department of Trade and Industry). It expanded the scope of the practice from brokerage and now includes real estate appraisal and consultancy.

It took about twenty-four (24) years from 1985 and forty-nine (49) from 1960 when the new real estate law (Real Estate Service Act or RESA) was finally approved and was made effect on July 30, 2009, fifteen days after its publication in a major daily newspaper of general circulation in the Philippines. RESA raised the practice in real estate from a higher level of being a trade business under DTI to a formal profession under the Professional Regulation Commission (PRC). It is the newest member recognized by PRC in its roll of formal and recognized professions.

The Implementing Rules and Regulations (IRR) of RESA (R. A. No. 9646) was published in a major newspaper of general circulation on July 24, 2010 and took effect on August 8, 2010. This is covered by the Professional Regulatory Board of Real Estate Service (PRB-RES) Resolution No. 02, Series of 2010. Among other important provisions, the IRR provides for the rules and requirements covering the registration without examination by real estate practitioners licensed under DTI Ministry Order N0. 39 and others needed to be licensed under RESA.

“Sec. 20 (Rule III). Registration Without Examination. Upon application and payment of the required fees, the following shall be registered, and shall be issued by the Board (PRB-RES) and the Commission (PRC) a certificate of registration and a professional identification card without taking the prescribed examination:”

1. Licensed real estate practitioners (brokers, appraisers and consultants) as of July 30, 2009 by DTI by virtue of M.O. No. 39 and have undertaken the following required Continuing Professional Education (CPE) credit units, among other requirements:

a. 15 CPE credit units – holder of a valid DTI license and those who passed the 2009 & 2008 licensure examination given by DTI but failed to obtain their license on July 30, 2009.

b. 18 CPE credit units – those who passed the 2007 licensure examination given by DTI but failed to obtain their license on July 30, 2009.

c. 24 CPE credit units – those who failed to renew their DTI license prior to July 30, 2009.

d. 120 CPE credit units – those who passed the DTI licensure examination in 2006 and prior years but failed to obtain their license on July 30, 2009.

In this regard, practitioners falling under the above categories (a to d) who fail to comply with the necessary CPE requirements within two (2) years or from July 30, 2009 to July 30, 2011, shall be required to take the Board licensure examination if they intend to pursue their real estate practice.

2. Government assessors and appraisers holding permanent positions as of July 30, 2009, performing actual appraisal for the last five (5) years and have passed the Real Property Assessing Officer (RPAO) examination.

3. Government assessors and appraisers holding permanent positions as of July 30, 2009, have at least ten (10) years actual experience in property appraisal and have completed 120 hours of accredited training on real property appraisal.

For categories under Nos. 2 & 3 above, they have also to complete 24 CPE credit units to be registered as real estate appraisers without undergoing the required licensure examination.

The first set of the chairperson and members of the Professional Regulatory Board of Real Estate Service (PRB-RES) took their oath as real estate practitioners and were sworn into office by then President Gloria M. Arroyo last March 2010 in Malacanang. The Board is headed by Chairman Eduardo Gutierrez-Ong and Ramon C.F. Cuervo III, Bansan C. Choa, Rafael M. Fajardo and Florencio C. Dino II, as members.

Among the tasks assigned to the Board are: the adoption of the Code of Ethics and Responsibilities for real estate service practitioners, the organization, accreditation and integration of practitioners and service organizations into one (1) national organization recognized by PRB-RES and approved by PRC, conduct of licensure examination in coordination with the PRC, formulate licensure examination questions and come up with the required subjects/topics for said examinations and the syllabi and requirements for the offering of a four year course in real estate in coordination and consultation with the Commission on Higher Education (CHED).

We expect a lot of various activities and happenings as the new professional practice in real estate unfolds. Brace up for new twists and bold undertakings as real estate service practice enters 2011.

(The writer is a Certified Public Accountant and the president of the Baguio Realtors Board, Inc. Apart from being a recognized Real Estate Practitioner as a Real Estate Broker and Educator, Lecturer and Resource Person, he is likewise a Business Management/ NGO /Cooperative Consultant, Project Development Consultant, Financial Advisor/Loan Broker and Columnist. For comments and more information of Real Estate Updates and Studies, you may get in touch with him at No. 04 Old Forestry Compound, Baguio City 2600. Tel. Nos. 427-1971 or 426-7582/ Cell No. 0910-930-2753 or email: bert_capili@yahoo.com/ bertcapili65@hotmail.com.