LEGAL REQUIREMENTS FOR REAL ESTATE SERVCE PRACTICE

Views:
 
Category: Education
     
 

Presentation Description

BATCH 37TH

Comments

Presentation Transcript

LEGAL REQUIREMENTS FOR REAL ESTATE SERVICE PRACTICE : 

LEGAL REQUIREMENTS FOR REAL ESTATE SERVICE PRACTICE Photo courtesy of www.hlurb.gov.ph

(DAO) NO. 2 (Series of 1988) LIFTING THE REQUIREMENTS OF ACCREDITATION OF SEMINARS AND ATTENDANCE IN A DULY ACCREDITED SEMINAR FOR REAL ESTATE BROKERS/APPRAISERS, AS A PRE-REQUISITE FOR THE GRANT OF LICENSE, AS WELL AS CHANGING CERTAIN REQUIREMENTS FOR QUALIFICATION OF REAL ESTATE BROKERS. MINISTRY ORDER NO. 39Series of 1985 RULES AND REGULATIONS GOVERNING THE LICENSING AND SUPERVISION OFREAL ESTATE SALESMEN, BROKERS, APPRAISERS AND CONSULTANTSAND REALTY SERVICE ORGANIZATIONS DEPARTMENT ORDER (DO) NO. 22 ( Series of 1987 ) RULES AND REGULATIONS MODIFYING CERTAIN PROVISIONS OF MINISTRY ORDER NO. 39, S. OF 1985, PRESCRIBING THE MANNER OF QUALIFYING REALTY SERVICE PRACTITIONERS.

(DAO) NO. 6 Series of 1994 PRESCRIBING THE MANNER OF QUALIFYING REALTY SERVICE PRACTITIONERS, EXEMPTION TO REALTY SERVICE PRACTICE REQUIRING THE ACCREDITATION OF SEMINARS FOR REALTY SERVICE, PRESCRIBING THE SUBJECTS TO BE INCLUDED IN THE EXAMINATION FOR THE REAL ESTATE BROKERS, APPRAISERS AND CONSULTANTS AS WELL AS THE QUALIFICATIONS OF EXAMINEES, MEMBERSHIPS IN THE EXAMINATION COMMITTEES, WAIVER OF PAYMENTS OR SURCHARGE OF UNPAID LICENSE FEES PRIOR TO 1983 REQUIREMENT FOR CONTINUING EDUCATION, INCORPORATING, MODIFYING DEPARTMENT ORDER NO. 97 SERIES OF 1992 ON THE CREATION AND FUNCTIONS OF THE REALTY SERVICE COUNCIL OF THE PHILIPPINES, REQUIREMENT OF CERTIFICATION OF A RECOGNIZED REAL ESTATE ASSOCIATION IN LIEU OF BOND REQUIREMENT. : 

(DAO) NO. 11 ( Series of 2003 ) MAKING LICENSES OF ALL REALTY SERVICE PRACTITIONERS VALID FOR THREE YEARS (DAO) NO. 6 Series of 1994 PRESCRIBING THE MANNER OF QUALIFYING REALTY SERVICE PRACTITIONERS, EXEMPTION TO REALTY SERVICE PRACTICE REQUIRING THE ACCREDITATION OF SEMINARS FOR REALTY SERVICE, PRESCRIBING THE SUBJECTS TO BE INCLUDED IN THE EXAMINATION FOR THE REAL ESTATE BROKERS, APPRAISERS AND CONSULTANTS AS WELL AS THE QUALIFICATIONS OF EXAMINEES, MEMBERSHIPS IN THE EXAMINATION COMMITTEES, WAIVER OF PAYMENTS OR SURCHARGE OF UNPAID LICENSE FEES PRIOR TO 1983 REQUIREMENT FOR CONTINUING EDUCATION, INCORPORATING, MODIFYING DEPARTMENT ORDER NO. 97 SERIES OF 1992 ON THE CREATION AND FUNCTIONS OF THE REALTY SERVICE COUNCIL OF THE PHILIPPINES, REQUIREMENT OF CERTIFICATION OF A RECOGNIZED REAL ESTATE ASSOCIATION IN LIEU OF BOND REQUIREMENT.

(DAO) NO. 6 ( Series of 2007 ) Increasing the Fines and Penalties for Violations (DAO) NO. 7 ( Series of 2007 ) Prescribing New Requirements For The Licensing of Real Estate Brokers, Real Estate Appraisers, and Real Estate Consultants. ( Attendance in Accredited Seminar and Mandatory Membership in National Realty Association )

MINISTRY ORDER NO. 39Series of 1985(As amended by DO No. 22, S. of 1987, DAO No. 2, S. of 1988 and DAO No. 6, S. of 1994) SUBJECT : RULES AND REGULATIONS GOVERNING THE LICENSING AND SUPERVISION OF - REAL ESTATE SALESMEN, BROKERS, APPRAISERS CONSULTANTS - REALTY SERVICE ORGANIZATIONS : 

MINISTRY ORDER NO. 39Series of 1985(As amended by DO No. 22, S. of 1987, DAO No. 2, S. of 1988 and DAO No. 6, S. of 1994) SUBJECT : RULES AND REGULATIONS GOVERNING THE LICENSING AND SUPERVISION OF - REAL ESTATE SALESMEN, BROKERS, APPRAISERS CONSULTANTS - REALTY SERVICE ORGANIZATIONS

ARTICLE I – STATEMENT OF POLICY SECTION 1 - The primary purposes of the Administrative Order are (1) to protect the public from dishonest or incompetent salesmen, brokers, appraisers and consultants; (2) to prescribe standards and qualifications for these realty service practitioners; (3) to maintain high standards in real estate profession; and (4) to protect licensed real estate salesmen, brokers, appraisers and consultants from unfair or improper competition. : 

ARTICLE I – STATEMENT OF POLICY SECTION 1 - The primary purposes of the Administrative Order are (1) to protect the public from dishonest or incompetent salesmen, brokers, appraisers and consultants; (2) to prescribe standards and qualifications for these realty service practitioners; (3) to maintain high standards in real estate profession; and (4) to protect licensed real estate salesmen, brokers, appraisers and consultants from unfair or improper competition.

ARTICLE II – SCOPE AND IMPLEMENTING AUTHORITY : 

ARTICLE II – SCOPE AND IMPLEMENTING AUTHORITY SECTION 1 – The Director of Trade Regulation and Consumer Protection (hereinafter known as the Director) shall qualify, approve, license, supervise, suspend and revoke the license of real estate salesmen, brokers, appraisers and consultants. He shall also qualify, register, recognize, supervise and withdraw or revoke certificates of recognition issued to associations of REALTY SERVICE PRACTITIONERS and the national federation of such organizations and to accredit seminars FOR REALTY SERVICE PRACTICE. (As amended by DAO No. 2 and DAO No. 6)

SECTION 2 – CRITERIA FOR ACCREDITATION OF SEMINARS FOR REALTY SERVICE PRACTICE : 

SECTION 2 – CRITERIA FOR ACCREDITATION OF SEMINARS FOR REALTY SERVICE PRACTICE THE DIRECTOR SHALL ACCREDIT COMPREHENSIVE REAL ESTATE SEMINARS INTENDED TO PREPARE EXAMINEES FOR LICENSING AS REAL ESTATE BROKER, APPRAISER, OR CONSULTANT PROVIDED THAT SAID SEMINARS SHALL A) BE CONDUCTED BY A SINGLE PROPRIETORSHIP, PARTNERSHIP OR CORPORATION DULY REGISTERED WITH THE DEPARTMENT OF TRADE AND INDUSTRY WHOSE PRINCIPAL PURPOSE IS REAL ESTATE EDUCATION, OR ANY REAL ESTATE ASSOCIATION WHICH IS AFFILIATED WITH ANY MEMBER OF THE REALTY SERVICE COUNCIL; B) CONSIST OF AT LEAST 24 LECTURE HOURS; AND C) COVER THE SUBJECTS PRESCRIBED IN SECTION 1 ARTICLE 6 OF THIS ADMINISTRATIVE ORDER AND THE CORRESPONDING SYLLABUS FOR EACH SUBJECT AS APPROVED BY THE BTRCP.

THE ACCREDITATION SHALL REMAIN IN FULL FORCE AND EFFECT FOR ALL SEMINARS CONDUCTED SUBSEQUENT TO SAID ACCREDITATION UNLESS REVOKED BY THE DIRECTOR UPON PROOF THAT ANY SINGLE CLASS OF THE SEMINAR HAS DEVIATED OR FAILED TO COMPLY WITH THE REQUIRED CRITERIA FOR ACCREDITATION. (As amended by DAO No. 6) : 

THE ACCREDITATION SHALL REMAIN IN FULL FORCE AND EFFECT FOR ALL SEMINARS CONDUCTED SUBSEQUENT TO SAID ACCREDITATION UNLESS REVOKED BY THE DIRECTOR UPON PROOF THAT ANY SINGLE CLASS OF THE SEMINAR HAS DEVIATED OR FAILED TO COMPLY WITH THE REQUIRED CRITERIA FOR ACCREDITATION. (As amended by DAO No. 6) VALID

ARTICLE III – DEFINITIONS SECTION 1 – REAL ESTATE : 

ARTICLE III – DEFINITIONS SECTION 1 – REAL ESTATE herein is defined as the land and/or building or other improvements permanently attached or annexed to land including the rights and interests thereon and includes rural, suburban, and urban land and the development thereof such as residential, commercial, industrial, institutional, agricultural, aquacultural or combinations of such rights and interest, resorts, land reclamation, building, or housing projects either for individual or condominium ownership, memorial parks, townhouses, club houses and others of similar nature

SECTION 2 – A REAL ESTATE SALESMAN : 

SECTION 2 – A REAL ESTATE SALESMAN is a natural person who performs for and in behalf of a real estate broker under whom he is licensed, any of the functions of a real estate broker, for or in expectation of a share in the commission, fee, compensation or other valuable consideration.

SECTION 3 – A REAL ESTATE BROKER : 

SECTION 3 – A REAL ESTATE BROKER is any person, natural or juridical, who is an agent of another person and for or in expectation of a fee, commission or other valuable consideration, shall perform any of the following acts : offers, advertises, solicits, lists, promotes, mediates, negotiates or effects the meeting of the minds on the sale, purchase, exchange, mortgage or lease of, or joint venture or other transactions in real estate or any interest therein.

Slide 13: 

SECTION 4 – A REAL ESTATE APPRAISER is a natural or juridical person who, for or in expectation of a fee, compensation or other valuable consideration, offers or renders services in estimating and arriving at an opinion of, or act as an expert on real estate values. SECTION 5 – A REAL ESTATE CONSULTANT is a natural or juridical person who, for or in expectation of a fee, compensation or other valuable consideration, offers or renders professional advice and judgment on : (1) the acquisition, preservation, utilization, or disposition of land or improvements thereon, or valuable rights existing or to be created thereon; (2) the conception, planning and development of realty projects which may or otherwise encumber units like subdivision lots, condominium units, market stalls, memorial parks, and the like.

SECTION 6 – Realty Service Practitioner is hereby defined to include : 

SECTION 6 – Realty Service Practitioner is hereby defined to include real estate salesman, real estate broker, real estate appraiser and real estate consultant.

ARTICLE IV – ACTS CONSTITUTING REAL ESTATE SERVICE PRACTICE AND ITS EXCEPTIONS : 

ARTICLE IV – ACTS CONSTITUTING REAL ESTATE SERVICE PRACTICE AND ITS EXCEPTIONS SECTION 1 – Act constituting Real Estate Service Practice. Any single act or transaction embraced within the definitions contained in Article III, Sections 2 to 5 hereof, shall constitute an act of engaging in the real estate service practice.

SECTION 2 – Exceptions – The provisions of these rules and regulations shall not apply to the following persons: : 

SECTION 2 – Exceptions – The provisions of these rules and regulations shall not apply to the following persons: a) Any person, natural or juridical, who shall directly perform by himself the acts mentioned in Article III, Section 2 to 5 hereof with reference to his or its own property.  PROVIDED, THAT HIS EXCEPTION SHALL NOT BE APPLICABLE TO THOSE PERSONS SELLING HIS OR ITS OWN PROPERTY FOR BUSINESS PURPOSES (E.G. DEVELOPERS). (As amended by DAO No. 6)

Slide 17: 

b)    An receiver, trustee or assignee in bankruptcy or insolvency proceedings; c)     Any person acting pursuant to the order of any court of justice; d)    Public officers while performing their official duties; e)     Any person who is duly constituted attorney-in-fact for purposes of sale, mortgage, lease or exchange or other similar contracts of real estate; f)     Any person who are duly authorized officials and employees of banks, insurance companies, savings and loan associations or other financial institutions with respect to the disposition and sale of its foreclosed or acquired assets.

ARTICLE V – LICENSING REQUIREMENTS : 

ARTICLE V – LICENSING REQUIREMENTS SECTION 1 – License Required to Practice. No person shall directly or indirectly engage in the real estate service, practice, or represent himself as a real estate salesman, broker, appraiser or consultant without having first secured the corresponding license from the Director in accordance with these rules. All branch offices of every real estate broker, appraiser or consultant must be manned by a duly licensed real estate broker, or consultant as the case may be and must be registered as such with the Bureau of Domestic Trade (hereinafter known as the Bureau).

Slide 19: 

The Bureau shall maintain a register of salesman, brokers, appraisers, consultants and realty service organizations which shall be updated every year. The register shall be open to the public for inspection during office hours.

SECTION 2 – Juridical Person in Realty Service Practice. : 

SECTION 2 – Juridical Person in Realty Service Practice. No partnership or corporation shall engage as a realty service practitioner unless it is duly licensed by the Director. All persons authorized to act for and in behalf of the partnership or corporation as a realty service practitioner shall be duly licensed realty service practitioners. The partnership or corporation shall submit a list of its representatives licensed as a realty service practitioner upon the filing of its application by the natural person.

Slide 21: 

SECTION 3 – Application for License. Any natural person who is duly qualified, may apply for license as real estate salesman, broker, appraiser or consultant on forms duly prescribed for the purpose.

SECTION 4 – Qualifications of Applicant. : 

SECTION 4 – Qualifications of Applicant. – Any natural person who applies for a license to engage as real estate salesman, broker, appraiser or consultant must at the same time of filing his application, also establish to the satisfaction of the Director that : a)      He is at least 21 years old; b)      He is honest, truthful and of good moral character;

Slide 23: 

c)      He has not been convicted of any offense involving moral turpitude. As proof, he shall submit to the Director his clearance either from the Clerk of City or Municipal Court or Regional Trial Court of the locality where he has resided or held office, for at least one year immediately prior to the date of application or from the National Bureau of Investigation.  IN THE CASE OF SALESMAN, HE SHALL SUBMIT A RECOMMENDATION OF THE EMPLOYER BROKER INSTEAD OF THE AFORESAID CLEARANCE.

APPLICATION FOR LICENSE AS SALESMAN : 

APPLICATION FOR LICENSE AS SALESMAN d)     An applicant for a license as salesman must have satisfactorily completed at least HIGH SCHOOL COURSE OR ITS EQUIVALENT WITHOUT TAKING QUALIFYING EXAMINATION.

e) If he is an applicant for a license for a real estate broker, he must have satisfactorily completed : 

e) If he is an applicant for a license for a real estate broker, he must have satisfactorily completed at least one (144) hundred forty-four units of college undergraduate study or - - - - - - - - - - - - - - - - - - - - In either case, He must have passed a real estate broker’s examination given by the Bureau and has or will be able to establish an office with facilities necessary to satisfactorily render the services expected of a broker. must have finished ( 72 )seventy-two units in college provided he has been a licensed salesman for a period of four years and duly recommended by a licensed broker.

f) If he is an applicant for license as real estate appraiser, : 

f) If he is an applicant for license as real estate appraiser, he must have at least five (5) years experience as licensed real estate broker OR FIVE (5) YEARS EXPERIENCE AS APPRAISER IN ANY GOVERNMENT AGENCY, BANKING/FINANCIAL INSTITUTION OF ANY COMPANY INVOLVED IN APPRAISAL OF REAL ESTATE PROPERTIES, DULY CERTIFIED UNDER OATH BY HIS EMPLOYER OR HEAD OF THE AGENCY PROVIDED HE/SHE HAS SATISFACTORILY COMPLETED A FOUR (4) YEAR BACCALAUREATE DEGREE and must have passed a real estate appraisers examination given by the Bureau.

g)  In case of a real estate consultant, the applicant must have at least : 

g)  In case of a real estate consultant, the applicant must have at least ten (10) years experience as a licensed real estate broker or five (5) years as a real estate appraiser and passed a real estate consultants examination given by the Bureau.(As amended by DO No. 22, DAO No. 2 and DAO No. 6)

ARTICLE VI – QUALIFYING EXAMINATION : 

ARTICLE VI – QUALIFYING EXAMINATION SECTION 1 – SUBJECT. AN EXAMINATION SHALL BE GIVEN FOR APPLICANTS FOR LICENSE AS REAL ESTATE BROKERS AND APPRAISERS WHICH SHALL INCLUDE THE FOLLOWING SUBJECTS: A) FOR REAL ESTATE BROKERS -  1. FUNDAMENTALS OF PROPERTY OWNERSHIP; 2. LEGAL REQUIREMENTS FOR REAL ESTATE PRACTICE; 3. REAL ESTATE BROKERAGE PRACTICE; 4. SUBDIVISION DEVELOPMENT; 5. CONDOMINIUM CONCEPT; 6. REAL ESTATE FINANCING, TAXATION, ECONOMICS; 7. BASIC PRINCIPLES OF ECOLOGY, URBAN AND RURAL 8. LAND USE, PLANNING, DEVELOPMENT AND ZONING; 9. LEGAL ASPECT OF SALE, MORTGAGE, LEASE; 10. DOCUMENTATION AND REGISTRATION.

B)   FOR REAL ESTATE APPRAISERS : 

B)   FOR REAL ESTATE APPRAISERS GENERAL REAL ESTATE INFORMATION; THEORIES AND PRINCIPLES IN APPRAISAL; LAWS AFFECTING REAL ESTATE APPRAISAL; HUMAN AND PHYSICAL GEOGRAPHY; METHODOLOGY OF APPRAISAL APPROACHES AND RESEARCHES; PRACTICAL APPRAISAL MATHEMATICS; APPRAISAL REPORT WRITING; INCOME AND INVESTMENT PROBLEMS; APPRAISAL OF MACHINERIES AND EQUIPMENT; CASE STUDIES.

Slide 30: 

REAL ESTATE CONSULTANTS C) A QUALIFYING EXAMINATION, WRITTEN OR ORAL, SHALL BE GIVEN FOR APPLICANTS FOR LICENSE AS REAL ESTATE CONSULTANTS. APPLICANTS SHALL BE REQUIRED TO PREPARE A THESIS, PROJECT FEASIBILITY STUDIES OR CASE STUDIES THAT WILL SHOW PROOF THAT SAID APPLICANT CAN PROVIDE PROFESSIONAL ADVISE OR JUDGMENT ON  -  THE ACQUISITION, PRESENTATION, UTILIZATION OR DISPOSITION OF LANDS OR IMPROVEMENTS THEREON, OR VALUABLE RIGHTS EXISTING OR TO BE CREATED THEREON. -   THE CONCEPTION, PLANNING AND DEVELOPMENT OF REALTY PROJECTS WHICH MAY OR OTHERWISE ENCUMBER UNITS LIKE SUBDIVISION LOTS, CONDOMINIUM UNITS, MARKET STALLS, MEMORIAL PARKS AND THE LIKE.

Slide 31: 

D) THE PROVISIONS OF THESE RULES AND REGULATIONS AND THE CODE OF ETHICS OF REALTY SERVICE PRACTICE APPROVED BY THE SECRETARY OF TRADE AND INDUSTRY. E)    And such other subjects as the Director may deem proper and necessary to be included. (As amended by DAO No. 6)

Section 2 – APPLICATION FOR EXAMINATION : 

Section 2 – APPLICATION FOR EXAMINATION APPLICANTS FOR EXAMINATION FOR REAL ESTATE BROKERS, APPRAISERS AND CONSULTANTS MAY APPLY WITH THE DEPARTMENT ON FORMS DULY PRESCRIBED FOR THE PURPOSE. APPLICANTS SHALL POSSESS THE EDUCATIONAL AND/OR EXPERIENCE REQUIREMENT PROVIDED FOR UNDER THE RULES, AT THE TIME OF FILING OF THE APPLICATION. (As amended by DAO No. 6)

SECTION 2 – Examination Committee. : 

SECTION 2 – Examination Committee. There shall be three (3) examination committees, one each for real estate brokers, appraisers and consultants. The Committee for real estate brokers and appraisers shall be composed of FOUR (4) MEMBERS EACH. The Director shall appoint one (1) representative from the Bureau who will be member of both committees and THREE (3) each for both committees to be recommended by the President of the national organizations of real estate brokers, appraisers and consultants respectively. Each member shall serve for at least two (2) years unless sooner removed for cause.

CONSULTANTS EXAM COMMITTEE : 

CONSULTANTS EXAM COMMITTEE IN THE CASE OF THE COMMITTEE FOR THE CONSULTANTS, IT SHALL BE COMPOSED OF FIVE (5) MEMBERS, ONE FROM THE BUREAU OF DOMESTIC TRADE AND FOUR (4) MEMBERS TO BE RECOMMENDED BY THE PRESIDENT OF THE NATIONAL ORGANIZATION OF CONSULTANTS.

Qualifications of Exam Committee : 

Qualifications of Exam Committee The representatives of the National Organizations in the aforesaid Committees must have at least ten (10) years of exemplary experience as licensed real estate brokers for the Committee for brokers, Five (5) years as licensed real estate appraisers for the Committee for appraisers and five years (5) as licensed real estate consultant for the Committee for consultants.

ARTICLE VII – DURATION, RENEWAL AND TERMINATION OF LICENSE : 

ARTICLE VII – DURATION, RENEWAL AND TERMINATION OF LICENSE SECTION 1 – Duration of License. All licenses FOR REAL ESTATE BROKERS shall expire on December 31st of each year.

Slide 37: 

IN CASE OF REAL ESTATE APPRAISERS AND CONSULTANTS, THE DURATION OF THE LICENSE SHALL BE FOR A PERIOD OF THREE (3) YEARS PROVIDED THAT THE LICENSE FEES FOR THE THREE-YEAR PERIOD SHALL BE PAID IN FULL UPON ISSUANCE OF THE LICENSE. (As amended by DAO No. 6) AMENDMENT: ALL LICENSES OF REAL ESTATE BROKERS, APPRAISERS AND CONSULTANTS ARE VALID FOR 3 YEARS.

LICENSE NUMBER : 

LICENSE NUMBER SECTION 2 – License Number. A permanent license number shall be assigned to each broker, whether natural or juridical, appraiser and consultant by the Director which number shall be indicated in letterheads, dry seals, signboards, advertisements and other public announcements. In the case of a salesman, the license number of the broker under whom he is licensed shall be indicated. 123456

SECTION 3 – Renewal of License. : 

SECTION 3 – Renewal of License. Licenses may be renewed within thirty (30) days after its expiry date upon application in the form duly prescribed by the Bureau.

Slide 40: 

If the licensee renews the Certificate after thirty (30) days but within the year of renewal, he must pay a surcharge of fifty percent (50%) of the basic fee in addition to the license fee. If he renews his license after one or more years, he shall pay the basic license fee for all the years he was not licensed plus fifty percent (50%) surcharge on the total basic fee. (As amended by DAO No. 6)

CONTINUING EDUCATION PROGRAM : 

CONTINUING EDUCATION PROGRAM SECTION 3.1 – CONTINUING EDUCATION. ANY PERSON WHO PASSED THE EXAMINATION GIVEN THE BY THE BUREAU BUT FAILS TO SECURE A LICENSE WITHIN TWO (2) YEARS FROM THE DATE OF PASSING THE EXAMINATION OR WHO FAILS TO RENEW HIS/HE LICENSE FOR THREE (3) CONSECUTIVE YEARS SHALL BE REQUIRED TO SUBMIT A CERTIFICATION FROM A SINGLE PROPRIETORSHIP, PARTNERSHIP OR CORPORATION AND DULY REGISTERED WITH THE DEPARTMENT OF TRADE AND INDUSTRY WHOSE PRINCIPAL PURPOSE IS REAL ESTATE EDUCATION OR ANY REAL ESTATE ASSOCIATION WHICH IS AFFILIATED WITH ANY MEMBER OF THE REALTY SERVICE COUNCIL, THAT HE HAS COMPLETED A TOTAL OF TWENTY (20) HOURS BEFORE HIS LICENSE CAN BE ISSUED OR RENEWED.

Slide 42: 

REALTY SERVICE PRACTITIONERS SHALL BE REQUIRED EVERY THREE (3) YEARS TO SUBMIT A CERTIFICATION FROM A SINGLE PROPRIETORSHIP, PARTNERSHIP OR CORPORATION AND DULY REGISTERED WITH THE DEPARTMENT OF TRADE AND INDUSTRY WHOSE PRINCIPAL PURPOSE IS REAL ESTATE EDUCATION OR ANY REAL ESTATE ASSOCIATION WHICH IS AFFILIATED WITH ANY MEMBER OF THE REALTY SERVICE COUNCIL, THAT HE HAS COMPLETED A TOTAL OF 16 HOURS. FAILURE TO SUBMIT THE CERTIFICATION SHALL MEAN NON-ISSUANCE OR NON-RENEWAL OF THE LICENSE. (As amended by DAO No. 6) CEP

SECTION 4 – Custody of Salesman’s License Termination of Employment. : 

SECTION 4 – Custody of Salesman’s License Termination of Employment. The real estate salesman’s license certificate must be delivered to, and displayed at the Offices of his principal broker. If for any cause whatsoever the services of the salesman shall be terminated, this fact, and the reasons therefore must be transmitted to the Director and the salesman’s license surrendered for cancellation by his principal broker within fifteen (15) days from the date his services are terminated.  It is understood that the broker shall be liable for the acts of the salesman until the receipt of notice of termination by the Director.

ARTICLE VIII – BOND AND LICENSE FEE : 

ARTICLE VIII – BOND AND LICENSE FEE SECTION 1 - Bond. Before the license of real estate broker is granted, the applicant shall submit to the Director a good and sufficient bond in the amount of Five Thousand Pesos (5,000.00) payable to the Republic of the Philippines. It may either be a - cash bond, - surety bond issued by a duly licensed surety company, - bonds of the Republic of the Philippines, or - bond secured by a real estate mortgage.

PURPOSE OF BOND : 

PURPOSE OF BOND Said bond shall be conditioned upon the faithful and honest discharge by the applicant, as well as the real estate salesperson working under him, of their duties and shall further provide that upon failure to discharge these duties, the applicant shall be liable on the bond to any and all persons who may suffer loss by reason of such failure. In case of bonds issued by surety companies, the bond shall provide that it shall remain in full force and effect until cancelled or released by the Director or superceded by another bond which shall assume any and all obligations of the previous bond.

SECTION 2 – Cancellation or Release of Bond. : 

SECTION 2 – Cancellation or Release of Bond. When a licensee desires to have his bond cancelled or released other than for purposes of substituting with another bond, he must comply with the following requirements. 1)  Apply in writing and under oath to the Director for the release and cancellation of his bond and state among other things that there is no pending claim or obligation against him from his client or person with whom he has real estate transactions; 2)  Publish a notice in a newspaper of general circulation in the locality where his principal office is located stating among other things that he has applied to the Director for the release and cancellation of his bond. 3)  The notice shall further state, that any person having any claim for money or property against him in his realty service practice must file his claim with the Director within thirty (30) days from the date of publication. 4)  Submit proof of publication; and 5)  Surrender his license certificate.

SECTION 3 – CERTIFICATION IN LIEU OF BOND : 

SECTION 3 – CERTIFICATION IN LIEU OF BOND THE APPLICANT MAY OPT TO SECURE A CERTIFICATION FROM A RECOGNIZED REAL ESTATE ASSOCIATION THAT IT GUARANTEES THE FAITHFUL AND HONEST DISCHARGE BY THE APPLICANT, AS WELL AS THE REAL ESTATE SALESPERSON WORKING UNDER HIM, OF THEIR DUTIES AND SHALL BE LIABLE TO ANY AND ALL PERSONS WHO MAY SUFFER LOSS BY REASON OF SUCH FAILURE UP TO THE AMOUNT OF FIVE THOUSAND PESOS. (As amended by DAO No. 6)

ARTICLE IX – SUSPENSION AND REVOCATION : 

ARTICLE IX – SUSPENSION AND REVOCATION SECTION 1 – Grounds for Suspension and Revocation. The Director, may motu propio or upon verified complaint in writing by any person, investigate the act complained of against any real estate salesman, broker, appraiser or consultant; provided that if the acts or transactions complained of involve subdivisions or condominium projects, the Director shall promptly endorse the matter to the Human Settlements Regulatory Commission.  The Director may, after due notice and hearing, suspend or revoke the license for such period as he may deem proper, when the licensee is found guilty of the following acts :

A.                RELATION TO THE GOVERNMENT : 

A.                RELATION TO THE GOVERNMENT 1)  Procuring license thru fraud, deceit or false statement of facts which otherwise could have disqualified the applicant; 2)  Splitting or offering or agreeing to pay, split or rebate any ommission, fee or valuable consideration, directly or indirectly, with any party who is not a duly licensed real estate broker or salesman licensed under him, cooperating, assisting in or endorsing a transaction or engagement of his services, for a salesman; sharing his commission or fee with anyone other than the broker under whom he is licensed. 3)  Failure to indicate his license number in his letterhead, dry seal, signboard, advertisement or other public announcement; 4)  Any act or conduct that may demonstrate incompetence, untrustworthiness, dishonesty, fraudulent or improper dealings; 5)  Disregard or violation of the law and the rules and regulations.

B.    RELATION TO PUBLIC : 

B.    RELATION TO PUBLIC 1) Making any false or deceitful promise in advertisements, brochures or billboards, or other similar announcements; 2) Procuring or helping to procure consent to or affecting closing or consummation of any real estate transaction or engagement of his services by means of fraud, deceit, intimidation, violence or immoral offering; 3) Failure to account for or remit within fifteen (15) days from receipt or possession of any money belonging to the client unless a different period is expressly agreed between the realty service practitioner and his client. 4) Failure to treat as trust account, the money or other funds of his principal or client; 5)  Conviction of crime for unlawful conversion of any person’s fund or property; ESTAFA

6) Negligence or failure to disclose or ascertain to any person with whom licensee is dealing any material fact, data or information relating to the property and within the knowledge of the licensee at the time of the transaction.7) Any licensee who attempts or perform acts to sell property or advertises or places a “FOR SALE” sign on the property of which he is not authorized by the owner or holder of authority to sell or on which the authority to sell has expired. : 

6) Negligence or failure to disclose or ascertain to any person with whom licensee is dealing any material fact, data or information relating to the property and within the knowledge of the licensee at the time of the transaction.7) Any licensee who attempts or perform acts to sell property or advertises or places a “FOR SALE” sign on the property of which he is not authorized by the owner or holder of authority to sell or on which the authority to sell has expired.

8)  Allowing a conflict or interest to arise between the licensee and his client under the following circumstances: : 

8)  Allowing a conflict or interest to arise between the licensee and his client under the following circumstances: a)  The real estate broker or salesman who fails to disclose to the buyer that the property he is offering for sale is owned by him or by his relatives within the fourth civil degree or by a partnership or corporation in which he or his relatives within the same degree have at least 20% proprietary interest. b)   The real estate broker or salesman who fails to disclose to the seller that the real estate broker or salesman is buying or interested in buying property for himself or for his relatives within the fourth civil degree or for the partnership or corporation where he or his relatives within the same degree have at least 20% proprietary interest.

c) The real estate appraiser or consultant who accepts an assignment to appraise or to render an opinion of value and fails to disclose at the outset or in the appraisal or consultancy report the he or his relatives within the fourth civil degree or the partnership or corporation where he or his relative within the same degree have at least 20% of proprietary interest, has an interest on said property; d)   The real estate appraiser or consultant who accepts the assignment to appraise or render advice on a property, contingent upon the reporting of predetermined amount of value or predetermined findings or recommendation to be made. : 

c) The real estate appraiser or consultant who accepts an assignment to appraise or to render an opinion of value and fails to disclose at the outset or in the appraisal or consultancy report the he or his relatives within the fourth civil degree or the partnership or corporation where he or his relative within the same degree have at least 20% of proprietary interest, has an interest on said property; d)   The real estate appraiser or consultant who accepts the assignment to appraise or render advice on a property, contingent upon the reporting of predetermined amount of value or predetermined findings or recommendation to be made.

Slide 54: 

C. RELATION TO CO-BROKER 1.  Inducing any party to a real estate transaction to breach his contract for the purpose of substituting in lieu thereof a new contract where such substitution is likely to benefit or enhance the interest of the licensee. D.  RELATION TO HIS BOARD 1.  Representing himself as a REALTOR unless he is a member in good standing of the association of real estate brokers that has the exclusive right to use the patented designation REALTOR. 2.  Using a logo, badge, name or insignia of membership in any real estate organization of which the licensee is not a member. E.  OTHER SIMILAR UNSOUND REAL ESTATE BUSINESS PRACTICES

SECTION 2 – Effect of Suspension or Revocation of License. : 

SECTION 2 – Effect of Suspension or Revocation of License. The suspension or revocation of a real estate broker’s license shall operate to suspend the license of all real estate salesmen in the employ of such broker, pending a change of employer and the issuance of a new license to the salesman. The real estate salesman’s license may be issued under another broker for the unexpired period if applied for. Revocation or suspension of license does not relieve the erring salesman, broker, appraiser or consultant from any civil or criminal liability arising from the same acts.

Slide 56: 

SECTION 3 – Ineligibility for Re-License in Case of Revocation. A real estate service practitioner whose license is revoked by the Director for cause as provided in Section 1, Article IX shall be disqualified to obtain another or renewed license. SECTION 4 - Reinstatement of License. A license surrendered to the Director for any cause other than for any grounds for suspension and revocation, may be reinstated for the unexpired term, upon application thereof, without the payment of any additional fee.

ARTICLE X – LICENSE CERTIFICATE – POCKET CARDS, ETC. : 

ARTICLE X – LICENSE CERTIFICATE – POCKET CARDS, ETC. SECTION 1 – Issuance of License Certificate and Card. Upon payment of the fees required under Article VIII, Section 3 (a, b & c) of these Rules and Regulations, the Director shall issue to the qualified applicant a license certificate as a real estate salesman, broker, appraiser, or consultant with a permanent license number as specified under Article VII, Section 2 of these Rules and Regulations.

Slide 58: 

Maramie Kho Venta

Slide 59: 

In addition to the license certificate, the Director shall issue to such licensee a pocket card certifying that the person whose name, signature, thumbmark, date and place of birth, address and picture appearing therein is a duly licensed real estate salesman, the name and address of the broker-employer shall also appear.

Slide 60: 

Maramie Kho Venta

Be a professional broker . . . Proper attire : 

Be a professional broker . . . Proper attire Name : Maramie K. Venta Address : 123 Ayala Ave., Makati

Slide 62: 

ARTICLE XI – REALTY SERVICE ORGANIZATION  SECTION 1 – Organization. - An association of duly licensed real estate practitioners may be organized in any first class municipality, city or province by incorporating themselves in accordance with the existing laws of the Philippines.

Slide 63: 

SECTION 2 – Purpose. The purpose of the association shall embody the following: a)  To provide facilities to its members as to enable them to adequately serve their clients and the community; b)  To promote the mutual interest of its members and the community; c)  To set up, upgrade and maintain the standards of a real estate business and realty service practice; d)  To adopt and enforce a Code of Ethics approved and accepted by the Minister of Trade and Industry upon recommendation of the Director; e)  To establish a uniform schedule of minimum fees, commission or compensation to avoid unfair competition; f)   To cooperate with the government agencies and entities as well as with other trade organizations as regards adoption of laws, ordinances, regulations and functions involving or affecting real estate.

RESCOP : 

RESCOP SECTION 7 – DESIGNATION OF THE REALTY SERVICE COUNCIL OF THE PHILIPPINES AS THE CONSULTATIVE BODY OF THE DEPARTMENT OF TRADE AND INDUSTRY, PURSUANT TO DEPARTMENT ORDER NO. 97 SERIES OF 1992, THE REALTY SERVICE COUNCIL OF THE PHILIPPINES HAS BEEN DESIGNATED AS THE GENERAL CONSULTATIVE BODY OF THE DEPARTMENT. THE REPRESENTATIVE FROM THE BUREAU OF TRADE REGULATION AND CONSUMER PROTECTION (BTRCP) TO THE COUNCIL SHALL BE THE CHAIRMAN OF THE COUNCIL.

Slide 65: 

THE COUNCIL SHALL HAVE THE FOLLOWING FUNCTIONS: 1.       TO PROVIDE ADVICE AND/OR RECOMMENDATION TO THE DEPARTMENT OF TRADE AND INDUSTRY ON ALL MATTERS RELATING/AFFECTING THE REAL ESTATE INDUSTRY, EITHER ON ITS OWN INITIATIVE OR AT THE REQUEST OF THE DEPARTMENT OF TRADE AND INDUSTRY OR ANY OF ITS BUREAUS AND AGENCIES OR OTHER GOVERNMENT AGENCIES. 2.       TO INITIATE STUDIES, POLICIES, PROGRAMS, PROJECTS AND ACTIVITIES THAT SHALL LEAD TO THE FURTHER DEVELOPMENT AND PROMOTION OF THE REALTY BUSINESS WHICH MAY BE IMPLEMENTED BY THE COUNCIL ITSELF AND/OR THE DEPARTMENT OF TRADE AND INDUSTRY AND ITS BUREAUS AND AGENCIES AND/OR OTHER GOVERNMENT OFFICES SO THAT THE INTEREST OF THE PUBLIC COULD BEST BE SERVED. 3.       TO RECOMMEND THE ACCREDITATION OF SEMINARS FOR REALTY SERVICE PRACTICE.

Slide 66: 

4.  TO ASSIST THE DEPARTMENT IN THE CONDUCT OF THE OATHTAKING OF EXAMINEES WHO PASSED THE REALTY EXAMINATIONS; 5.  TO PERFORM OTHER RELATED ACTIVITIES THAT WILL COMPLEMENT OR SUPPLEMENT THOSE BEING UNDERTAKEN BY THE GOVERNMENT AGENCIES RELEVANT TO AND FALLING UNDER THE REALM OF THE REAL ESTATE INDUSTRY; 6.  IN ORDER TO EFFECTIVELY IMPLEMENT ITS PROGRAMS, PROJECTS AND ACTIVITIES, THE COUNCIL IS AUTHORIZED TO COLLECT REASONABLE FEES TO COVER ADMINISTRATIVE EXPENSES. (As amended by DAO No. 6)

ARTICLE XII – ADMINISTRATIVE PROCEEDINGS : 

ARTICLE XII – ADMINISTRATIVE PROCEEDINGS SECTION 1 – Commencement. All administrative actions involving realty service practice, may be commenced motu propio by the Director, or by filing of a written complaint under oath with the Bureau by an aggrieved party specifying among other things the following :  a)  A brief statement of facts giving the background and the particular act/s and/or omission/s complained of; b)  Sworn statement/s of witness and/or documentary evidence, if any; c)  The relief prayed for, and preliminary or preventive measures or orders sought; d)  Such other matters of details that shall guide the Director in appraising the nature of the complaint and extent of the violation/s committed.

Slide 68: 

SECTION 2 - Preventive Measures. At any time after the commencement of an administrative action but prior to the resolution thereof, the Director, when so warranted by the circumstances may issue preliminary and/or preventive order/s such as but not limited to, temporary cease-and-desist order/s, to prevent and/or restrain the commission of acts, which would probably work injustice to, or prejudice, the rights of the complainant/s or any other person or entity involved, and/or which may render any action/order or judgment in the case, ineffectual.

Slide 69: 

SECTION 3 – Mediation-Conciliation. As soon as the complaint is instituted, the Director shall notify the party complained of (respondent) to appear before him for purposes of mediating the controversy. The mediation-conciliation process shall be governed by Ministry Order No. 69 Series of 1983 (Specially Rule IV thereof), which implements Executive Order No. 913. SECTION 4 – Answer by Respondent. Should there be a failure to amicably settle the dispute during the mediation stage, the Director shall immediately require respondent to submit his formal answer to the written complaint, and thereafter, set the hearing for the formal investigation of the case.

Slide 70: 

SECTION 5 – Formal Hearing. The formal hearing on the complaint filed shall be conducted in the manner prescribed under Rule V, Section 35, of Ministry Order No. 69, Series of 1983, which implements Executive Order No. 913; with the Revised Rules of Court, being made suppletory, when applicable.

SECTION 6 – Resolution-Decision. The Director shall resolve the dispute-complaint, after formal hearing, by rendering a resolution-decision, which when warranted, shall impose one or more of the following administrative penalties or those enumerated under Section 8 of Executive Order No. 913. : 

SECTION 6 – Resolution-Decision. The Director shall resolve the dispute-complaint, after formal hearing, by rendering a resolution-decision, which when warranted, shall impose one or more of the following administrative penalties or those enumerated under Section 8 of Executive Order No. 913. a)  Issue a cease and desist order; b)  Forfeiture of the performance bond filed with the Director; c)  Impose administrative fine/s in such amounts as may be reasonable, but in no case to be less that Five Thousand Pesos (P5,000.00) or more than One Hundred Fifty Thousand Pesos (P150,000.00); d)  Suspension and/or cancellation-revocation of license issued by the Bureau; e)  Such other penalties and/or sanctions which are deemed necessary by the Director to impose, in order to implement and achieve the aims, purposes, intents, objectives of these Rules and Regulations.

DAO No. 6, Series of 2007Sec. 3, Article V : 

DAO No. 6, Series of 2007Sec. 3, Article V Additional fines Sec. 2, Art. IX DAO No. 6, Series of 2007 “For every day of continuing violation, the amount of not more than P1,000 shall be imposed over and above the administrative fine to be reckoned from the date when the Writ of Execution is served. The amount of fine for each day shall be equivalent to 10% of the actual administrative fine but not less than P100 and not more than P1,000.”

Slide 73: 

SECTION 7 – Appeal. Final orders and decisions of the Director are appealable to the Minister of Trade and Industry within fifteen (15) days from receipt of notice thereof.

DEPARTMENT ADMINISTRATIVE ORDER NO. 3Series of 1999 SUBJECT: RULES AND PROCEDURES GOVERNING THE IMPLEMENTATION OF THE CONTINUING EDUCATION PROGRAM (CEP) FOR REALTY SERVICE PRACTITIONERS AS EMBODIED IN MINISTRY ORDER NO. 39, SERIES OF 1985, AS AMENDED BY DAO NO. 6, SERIES OF 1994. : 

DEPARTMENT ADMINISTRATIVE ORDER NO. 3Series of 1999 SUBJECT: RULES AND PROCEDURES GOVERNING THE IMPLEMENTATION OF THE CONTINUING EDUCATION PROGRAM (CEP) FOR REALTY SERVICE PRACTITIONERS AS EMBODIED IN MINISTRY ORDER NO. 39, SERIES OF 1985, AS AMENDED BY DAO NO. 6, SERIES OF 1994.

Section 1. Statement of Policy - The primary purpose of the Continuing Education Program (CEP for brevity) is to maintain the high standards and advancement of the real estate practice and for the realty service practitioners to keep abreast with the developments affecting their interest and that of the industry. Section 2. Coverage - The CEP shall cover the following: real estate brokers, real estate appraisers and real estate consultants. : 

Section 1. Statement of Policy - The primary purpose of the Continuing Education Program (CEP for brevity) is to maintain the high standards and advancement of the real estate practice and for the realty service practitioners to keep abreast with the developments affecting their interest and that of the industry. Section 2. Coverage - The CEP shall cover the following: real estate brokers, real estate appraisers and real estate consultants.

Section 4. Provider / Authorized Entities to Conduct the CEP - The following may be authorized to conduct the program: a.  Any Single proprietorship, partnership or corporation duly registered with the Department whose principal purpose is real estate education; b. Member-association of the Council; c.  Any real estate association affiliated with any member of the Council; d. Schools, colleges and universities recognized and registered with the Department of Education and Culture. e.  Government instrumentalities, agencies and offices which conduct seminar-workshops as a joint undertaking with any association mentioned under letters b and c of this section. : 

Section 4. Provider / Authorized Entities to Conduct the CEP - The following may be authorized to conduct the program: a.  Any Single proprietorship, partnership or corporation duly registered with the Department whose principal purpose is real estate education; b. Member-association of the Council; c.  Any real estate association affiliated with any member of the Council; d. Schools, colleges and universities recognized and registered with the Department of Education and Culture. e.  Government instrumentalities, agencies and offices which conduct seminar-workshops as a joint undertaking with any association mentioned under letters b and c of this section.

Section 7. Subject for Brokers’ Program, Credit Hours. a.  Any combination of the following subjects provided that the aggregate credit hours will not be less than twenty (20) hours or sixteen (16) hours, as the case may be:        Property Management        Property Development        Real Estate Financing        Real Estate Investment        Real Estate Taxation        Real Estate Trends and Forecasts        Laws Relating to Real Estate        Real Estate Project Syndication        Market Networking        Information Systems        Monetary and Fiscal Policies        Land Use and Zoning        Appraisal for Real Estate Brokers        Site Location and Map Reading        Subdivision Laws, Rules and Procedures        Legal and Technical Aspects of Condominium        Contract Documentation and Registration        Agrarian and Urban Reform        Environmental Ethics        Other subjects as may be approved by the Bureau Director : 

Section 7. Subject for Brokers’ Program, Credit Hours. a.  Any combination of the following subjects provided that the aggregate credit hours will not be less than twenty (20) hours or sixteen (16) hours, as the case may be:        Property Management        Property Development        Real Estate Financing        Real Estate Investment        Real Estate Taxation        Real Estate Trends and Forecasts        Laws Relating to Real Estate        Real Estate Project Syndication        Market Networking        Information Systems        Monetary and Fiscal Policies        Land Use and Zoning        Appraisal for Real Estate Brokers        Site Location and Map Reading        Subdivision Laws, Rules and Procedures        Legal and Technical Aspects of Condominium        Contract Documentation and Registration        Agrarian and Urban Reform        Environmental Ethics        Other subjects as may be approved by the Bureau Director

b.     Every lecture hour per subject shall be duly credited provided the maximum credit for each subject shall not exceed two (2) hours. : 

b.     Every lecture hour per subject shall be duly credited provided the maximum credit for each subject shall not exceed two (2) hours. 2 HRS.

Slide 79: 

ARTICLE XIII – FINAL PROVISION SECTION 1 – Penalties. Any person who act as a salesman, broker, appraiser, or consultant without the license as require herein or who violates any provisions of these rules and regulations, shall be punished with a fine of not exceeding Five Hundred Pesos (P500.00) or by imprisonment of not exceeding six months. or both in the discretion of the court.

authorStream Live Help