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FUNDREAL > Real Estate Activities and Services + RESA Law > Flashcards

Real Estate Activities and Services + RESA Law Flashcards

1
Q

What are the Real Estate Activities?

A

Real estate buying, selling, renting, leasing and operating of self-owned/leased apartment buildings, non-residential and dwellings

Real estate buying, developing, subdividing and selling

Cemetery and columbarium development, selling, renting, leasing and operating of self-owned cemetery/ columbarium (including burial crypt)

Renting or leasing services of residential properties

Other real estate activities with own or leased property

Real estate activities on a fee or contract basis

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2
Q

Total revenue of Real Estate Activities in 2012

A

Php 1.1 Trillion

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3
Q

Largest share of Establishment in Real Estate Activities

A

Real estate buying, selling, renting, leasing, and operating of self-owned/leased apartment buildings, non-residential and dwellings (47.9%)

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4
Q

Smallest share of Establishment in Real Estate Activities

A

Other real estate activities with own or leased property

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5
Q

Total Employment in Real Estate Establishments 2018

A

89.3 thousand

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6
Q

Highest Employment in Real Estate Establishments 2018

A

Real estate buying, developing, subdividing and selling (41,700)

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7
Q

Lowest Employment in Real Estate Establishments 2018

A

Other real estate activities with own or leased property (1900)

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8
Q

Average Annual Compensation for Employees

A

Php 532.8 thousand

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9
Q

What are the 4 types of real estate services

A

BROKERAGE
APPRAISAL
ASSESSMENT
CONSULTING

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10
Q

Act ________ on the year ______ granted the then Bureau of Commerce under the then Department of Commerce and Industry, the power to qualify, approve and license real estate brokers, as well as to suspend and revoke said license for cause.

A

Act no. 2728 on year 1930

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11
Q

_____________ on _____ defined “real estate brokers” as those persons who for a compensation, negotiate the sale of real property, procure loans on mortgage, security, collects rents and attend to the licensing of houses and lands.

A

Commerce Administrative Order No. 3 on 1933

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12
Q

______________________________ enumerated the rules and regulations governing the licensing and supervision of real estate salesmen, brokers, appraisers, consultants and realty service organizations.

A

Ministry Order No. 39, series of 1985

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13
Q

__________________________________ modified certain provisions of Ministry Order No. 39, series of 1985, prescribing the manner of qualifying realty service practitioners.

A

Department Order No. 22, series of 1987

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14
Q

__________________________________ amended Ministry Order No. 39, series of 1985 for the purpose of lifting the requirements of accreditation of seminar for real estate brokers/ appraisers, as a pre-requisite for the grant of license, as well as changing certain requirements for qualifications of real estate brokers

A

Department Administrative Order No. 2, series of 1988

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15
Q

A house bill professionalizing real estate practice was initiated by ___________________

A

Cong. Rodolfo Valencia.

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16
Q

Father of the Real Estate in the Philippines

A

Cong. Rodolfo Valencia.

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17
Q

What are the dates of the Thirteenth Congress

A

(July 26, 2004 - June 8, 2007)

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18
Q

Senate Bill No. 345 was filed by _______________ on ___________________

A

Sen. Sergio Osmena III on June 30, 2004.

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19
Q

It declares as policy of the State to professionalize the activities of real estate practitioners in the Philippines by placing their operation on a sound, credible, legitimate and efficient basis, in order to better serve the needs of the general public, industry, commerce and agriculture and which consequently shall be under the supervision and control of a Commission with proper quasi-judicial and police powers to curtail and prevent act or practices prejudicial to the public interest.

A

Senate Bill No. 345

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20
Q

“An Act Regulating the Practice of Real Estate Service in the Philippines, creating a Real Estate Commission and Appropriating Funds Therefor,” or the “Real Estate License Act of the Philippines”

A

Senate Bill 820

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21
Q

Who introduced Senate Bill 820?

A

Introduced by Senator Manny Villar on June 30, 2004

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22
Q

The Real Estate License Act authored by Sen. Miriam Defensor Santiago, July 1, 2004.

A

Senate Bill No. 1241

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23
Q

The bill created the “Real Estate Commission,” and laid out the qualifications of the Chairman and the deputies, as well as the powers and functions of the Commission.

A

Senate Bill No. 1241

24
Q

the Real Estate Service Act of the Philippines (Senator Rodolfo Biazon, June 29, 2005)

A

Senate Bill No. 2060

25
Q

the “Real Estate Service Act of the Philippines” (Rep. Raul del Mar, July 1, 2004)

A

House Bill No. 70

26
Q

was approved on third reading on February 16, 2009, with Sen. Aquilino Pimentel III, as the lone opposition, and fourteen senators in favor.

A

Senate Bill 2963

27
Q

was approved by President Gloria Macapagal Arroyo on June 29, 2009, and took effect on July 30, 2009, following its publication.

A

Republic Act No. 9646

28
Q

Policies, standards and guidelines for the Bachelor of Science in Real Estate Management (BSREM), pursuant to RA 7722 and RA 9646.

A

CMO 28, series of 2011

29
Q

“An Act Regulating the Practice of Real Estate Service in the Philippines, Creating for the Purpose a Professional Regulatory Board of Real Estate Service, Appropriating Funds Therefor and for Other Purposes”

A

Real Estate Service Act of the Philippines (RA 9646)

30
Q

When was RA 9646 signed and published?

A

RA 9646 Signed: 29 JUNE 2009
Published: 15 JULY 2009

IRR: PRBRES Resolution#2
Approved: 21 JULY 2010

31
Q

Who are the Real Estate Service Practitioners according to RESA?

A 
Real Estate Consultant
Real Estate Appraiser
Real Estate Assessor
Real Estate Broker
Real Estate Salesperson
32
Q

What does PRBRES stand for?

A

Professional Regulatory Board of

Real Estate Service

33
Q

This is under the supervision and administrative control of

the Professional Regulation Commission (PRC)

A

The Board

34
Q

What is the board composed of?

A

Composed of a Chairperson and four (4) Members

35
Q

How are the members of the board chosen?

A

Shall be appointed by the President of the Philippines from the three (3) recommendees chosen by the Commission , two (2) of the members of the Board shall represent the government assessors and appraisers

36
Q

Name a few examples of grounds for removal of the board members/chairman?

A 
Grounds:
neglect of duty;
abuse of power;
oppression;
incompetence;
unprofessional,
unethical,
immoral or dishonorable conduct;
commission or toleration of irregularities in the conduct of  examination or tampering of the grades therein, or for any final  judgment or conviction of any criminal offense involving moral  turpitude.
37
Q

Name a few key functions of the Board

A

Provide comprehensive policy guidelines
Conduct licensure examinations;
Issue, suspend, revoke or reinstate, after due notice and hearing, CRs or PICs;
Monitor the conditions affecting the practice of real estate service
Adopt a national Code of Ethics and Responsibilities
Hear or investigate any violation of this Act, its implementing rules
and regulations, and the Code of Ethics and Responsibilities
Safeguard and protect legitimate and licensed real estate service practitioners and, in coordination with the accredited and integrated professional organization of real estate service practitioners,
Prescribe, in cooperation with the Commission on Higher Education (CHED) or the concerned state university or college, the essential requirements offering such courses in real estate service.

38
Q

Name the Current Chairman and Members of the board

A 
Chairman: Ofelia Binag
Members:
Pilar Torres - Banaag
Rafael Fajardo
Jose Arnold Tan
39
Q

What are the qualifications of applicants for the licensure Examination?

A

A citizen of the Philippines;

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

Of good moral character, and must not have been convicted of any crime involving moral turpitude: Provided, That an applicant for the licensure examination for real estate consultants must show proof that he/she has at least ten (10) years experience as a licensed real estate broker or an assessor, or as a bank or institutional appraiser or an employed person performing real property valuation, or at least five (5) years experience as a licensed real estate appraiser.

40
Q

What are the grounds for revocation of the PRC COR/PIC?

A

Procurement of a certificate of registration and/or professional identification card, or special/temporary permit by fraud or deceit;

Allowing an unqualified person to advertise or to practice the profession by using one’s certificate of registration or professional identification card, or special/temporary permit;

Unprofessional or unethical conduct;

Malpractice or violation of any of the provisions of this Act, its implementing rules and regulations, and the Code of Ethics and Responsibilities for real estate service practitioners; and

Engaging in the practice of the profession during the period of one’s suspension.

41
Q

What is the basis for issuance of temporary permit for foreigners?

A

Upon application and payment of the required fees and subject to the approval of the Commission, the Board may issue special/temporary permit to real estate service practitioners from foreign countries whose services are urgently needed in the absence or unavailability of local real estate service^ practitioners for the purpose of promoting or enhancing the practice of the profession in the Philippines.

42
Q

What is foreign Reciprocity?

A

No foreign real estate service practitioner shall be admitted to the licensure examination or be given a certificate of registration or a professional identification card, or be entitled to any of the privileges under this Act unless the country of which he/she is a citizen specifically allows Filipino real estate service practitioners to practice within its territorial limits on the same basis as citizens of such foreign country.

43
Q

What are the requirements before practicing real estate services?

A

Sec. 25. Oath. All successful examinees qualified for registration and all qualified applicants for registration without examination as well as accredited salespersons shall be required to take an oath before any member of the Board or any officer of the Commission duly authorized by the Commission to administer oaths prior to entering into the practice of real estate service in the Philippines.

Sec. 26. Professional Indemnity Insurance/Cash or Surety Bond. All real estate brokers and private real estate appraisers shall, in addition to the oath referred to in the preceding section, be required to post a professional indemnity insurance/cash or surety bond, renewable every three (3) years, in an amount to be determined by the Board, which in no case shall be less than Twenty thousand pesos (P20,000.00), without prejudice to the additional requirement of the client.

44
Q

Exemptions from the Acts Constituting the Practice of RES

A

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;

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

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

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

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

45
Q

Prohibition Against the Unauthorized Practice of RES

A

No person shall practice or offer to practice real estate service in the Philippines or offer himself/herself as real estate service practitioner, or use the title, word, letter, figure or any sign tending to convey the impression that one is a real estate service practitioner, or advertise or indicate in any manner whatsoever that one is qualified to practice the profession, or

Be appointed as real property appraiser or assessor in any national government entity or local government unit, unless he/she has satisfactorily passed the licensure examination given by the Board, except as otherwise provided in this Act, a holder of a valid certificate of registration, and professional identification card or a valid special/temporary permit duly issued to him/her by the Board and the Commission, and in the case of real estate brokers and private appraisers, they have paid the required bond as hereto provided.

46
Q

(Supervision of Real Estate Sales Person) No salesperson shall be entitled to receive or demand a fee, commission or compensation of any kind from ___________________________________________________ for any service rendered or work done by such salesperson in any real estate transaction.

A

any person, other than the duly licensed real estate broker who has direct control and supervision over him,

47
Q

(Supervision of Real Estate Sales Person) No violation of this provision shall be a cause for revocation or suspension of the certificate of registration of the real estate broker unless ___________________________________

A

there was actual knowledge of such violation or the broker retains the benefits, profits or proceeds of a transaction wrongfully negotiated by the salesperson.

48
Q

(Supervision of Real Estate Sales Person) No examination shall be given, but they shall be accredited by the Board. Provided, That :

A

they have completed at least two (2) years of college and have undergone training and seminars in real estate brokerage, as may be required by the Board.

49
Q

(Supervision of Real Estate Sales Person) Real estate salespersons shall be under the direct supervision and accountability of _____________. As such, they cannot by themselves be _________________________ unless the real estate broker who has direct supervision and accountability over them is also a signatory thereto.

A

a real estate broker; signatories to a written agreement involving a real estate transaction

50
Q

(Supervision of Real Estate Sales Person) No real estate salesperson, either directly or indirectly, can negotiate, mediate or transact any real estate transaction for and in behalf of a real estate broker without first _________________________________, as prescribed by the Board.

A

securing an authorized accreditation as real estate salesperson for the real estate broker

51
Q

No partnership or corporation shall engage in the business of real estate service unless it is duly registered with the ____________________

A

Securities and Exchange Commission (SEC)

52
Q

the persons authorized to act for the partnership or corporation are all :

A

duly registered and licensed real estate brokers, appraisers or consultants

53
Q

There shall at least be one (1) licensed real estate broker for __________ accredited salespersons.

A

every twenty (20)

54
Q

What document and date is the Code of Ethics and Responsibilities for Real Estate Service Practitioners

A

Document:
Resolution No. 39, Series of 2019

Publication Date:
29 July 2019

Effectivity Date:
14 August 2019

55
Q

What does CPE mean?

A

Continuing Professional Education

56
Q

What are the penalty/Penal provision of RES?

A

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.

Juridical Person - In case the violation is committed by juridical person, the partner, president, director or manager who has committed or consented to or knowingly tolerated such violation shall be held directly liable and responsible for the acts as principal or as a co-principal with the other participants, if any.

FUNDREAL (3 decks)

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