Real estate law enacted, finally

MANILA, Philippines—After 20 years, the Real Estate Service Act (RESA) was signed into law by President Gloria Macapagal-Arroyo on June 29.

Republic Act No. 9646, 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.

Under the new law, real estate consultants, appraisers, local government assessors and brokers will be overseen by the Professional Regulatory Board of Real Estate Service under the Professional Regulation Commission (PRC).

They will be subjected to a licensing process that will require them to pass a technical examination, comply with the program of continuing education and training, and observe the Code of Conduct and Responsibilities.

Salespersons, although not considered part of the professional group, will be accredited by the PRC, after undergoing training and working under a licensed real estate broker.

RESA will require real estate practitioners to post a Professional Indemnity Insurance/Cash or Surety Bond upon taking their oath to practice the profession before the PRC.

The new law is expected to stimulate the property market, encourage investments in construction and development, generate employment and increase revenues for the government.

It was sponsored in the House by Iloilo City Representative Rep. Raul T. Gonzalez Jr., chair of the Committee on Civil Service and Professional Regulation, and in the Senate by Sen. Panfilo M. Lacson, acting chair of the Committee on Civil Service and Government Reorganization.

The law, according to Senate President Juan Ponce Enrile, should protect the public from unscrupulous real estate service practitioners.–Philippine Daily Inquirer