Freeman Cebu Business

Messed up state of real estate in Philippines

INVESTING ON THE GO - Iggy Go - The Freeman

There is no lack of opportunity in the real estate industry but there is plenty of anomalies, lapses, negligence and scams/frauds happening. The main issue lies with RESA Law implementation.

Other professions like dentists have the Philippine Dental Association; doctors have Philippine Medical Association; lawyers have the Integrated Bar of the Philippines, etc.. and so forth.

Other professions have big, united, strong organization that can gather evidences, have unlicensed practitioners arrested, prosecuted, and jailed. In the case of real estate service professionals, we are on our own.

The developers are business as usual, so long as they earn. And sometimes, real estate brokerages are allegedly part of the problem too, so long as they make their share of money.

The RESA Law

The passing of the Republic Act 9646 by Congress or the Real Estate Service Act in 2009 was aimed to professionalize the real estate service industry in the Philippines.

The Professional Regulation Commission (PRC) through the Professional Regulatory Board of Real Estate Service (PRBRES) is mandated to implement the provisions of the law. The Implementing Rules and Regulations of RA 9646 stated in..

SEC. 34. Accreditation and Integration of Real Estate Service Associations (AIPO). All real estate service associations shall be integrated into one (1) national organization, which shall be recognized by the Board, subject to the approval of the Commission, as the only accredited and integrated professional organization of real estate service practitioners pursuant to PRC Res. No. 2004-178, Series of 2004.

A real estate service practitioner duly registered with the Board shall automatically become a member of the accredited and integrated professional organization of real estate service practitioners, and shall receive the benefits and privileges appurtenant thereto; Provided That the Board, subject to approval by the Commission, shall issue a Resolution on the membership and payment of the fee therefore as a requirement for the renewal of the Professional Identification Card.

The automatic membership in the Accredited and Integrated Professional Organization of real estate service practitioners shall not be a bar to membership in other associations of real estate service practitioners.

A little history for context

The first recognized AIPO, which is PhilRES ceased to exist since 2014 after various Real Estate Service Organizations opposed its formation due to various reasons. Why was it opposed? Who knows at this point, we can only guess.

The absence of AIPO, which should have helped PRC and PRBRES implement the law resulted in various violations and rampant illegal practices of non-licensed consultants, appraisers, brokers, and non-accredited real estate salespersons. Ironically, some unscrupulous licensed brokers and developers are recruiters and coddlers of unlicensed (colorum) real estate agents.

The AIPO, just like other professional organizations’ AIPO under PRC has the power to prescribe Code of Ethics and to discipline and sanction erring members as stated in the RESA’s IRR:

SEC. 35. Code of Ethics and Responsibilities for Real Estate Service Practitioners. The Board shall adopt and promulgate the Code of Ethics and Responsibilities for real estate service practitioners which shall be prescribed and issued by the accredited and integrated professional organization (AIPO) of real estate service practitioners.

RESA is now 11 years old and yet we have no AIPO that will help implement the provisions of RESA for the improvement of the real Estate Service industry and enhance the services and protection of the buying public from unlicensed practitioners.

There is no provision in RA 9646 that gives power to PRC to appoint an Interim IPO, yet PRC created one (and alleged insertions later-on), which is now the center of controversy.

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