1 REB All Subjects 2
1 REB All Subjects 2
1 REB All Subjects 2
REGALIAN DOCTRINE
All Lands of the public domain belong to the state*.
"All lands of the public domain, waters, minerals, coal, petroleum, and other mineral oils,
all forces of potential energy, fisheries, forests or timber, wildlife, flora and fauna, and
other natural resources are owned by the State. With the exception of agricultural lands
and all other natural resources shall not be alienated. The exploration development and
utilization of natural resources shall be under the full control and supervision of the
State. The State may directly undertake such activities, or it may enter into co-
production, joint venture, or production-sharing agreements with Filipino citizens, or
corporations or associations at least sixty per centum of whose capital is owned by such
citizens. x x x" [Sec. 2. Art. XII]
I. RIGHT TO OWN LAND The right to own real estate in the Philippines is governed by:
A. Constitution [1987 Philippine Constitution] and Art.XII. Sec. 3. Philippine
citizenship may be lost or reacquired in the manner provided by law. Art. XII. Sec.4.
Citizens of the Philippines who marry aliens shall retain their citizenship, unless by their
act or omission they are deemed, under by law, to have renounced it. Art.XII. Sec.7.
Save in cases of hereditary succession, no private lands shall be transferred or
conveyed except to individuals, corporations or associations qualified to acquire or hold
lands of the public domain. Art. XII. Sec.8. Notwithstanding the provisions of Section 7
of the article, a natural- born citizen of the Philippine citizenship may be transferee of
private lands, subject to limitations provided by law.
Ownership carries with it a distinct social obligation. As stewards of their land, owners
are obliged to use their properties to promote not only their properties to promote not
only their interest but also the general welfare. When a person's landholdings exceed
the requirements of his needs, or their utilization is not conducive to general welfare, the
state may exercise its power to regulate and control ownership.
This refers to the rights or attributes which are inherent in, or appurtenant to ownership,
and include the rights.
to possess to use, to the fruits, to dispose, and to recover
1. Government or Legal:
a. Zoning - refers to use restrictions in particular areas or the delineation of allowable
uses in particular areas.
b. Subdivision Regulations - requirements which must be complied within subdivision
specifications, etc.,
c. Police Power - the power of the state to regulate the use of the property
d. Building Code - regulations pertaining to specifications such as height, setbacks
e. Eminent Domain - the power of the State to take the private property for public use
upon payment of just compensation.
f. Escheat - the reversion of the State to take private property for public use upon
payment of just compensation.
g. Taxation - power of the State to impose and collect tax and other charges.
2. Contractual or Voluntary:
a. Lease Contract - the temporary surrender of the right to possess, use and enjoy in
favor of person who pays a consideration.
b. Right of Way Easement - the right given to an owner of an adjoining land to pass or
have access thru another land.
c. Usufruct - conveyance of the right to enjoy the fruits of the property. d. Use
Restrictions in Subdivision Contract
BUNDLE OF RIGHTS
Estate - refers to the totality of the assets owned by a person which includes real estate
and personal properties.
Real State - refers to the land and all permanent improvements thereon.
"TITLE" is not synonymous with the Torrens Certificate of Title. It is a term which
means evidence or proof of ownership, such as tax declaration, realty tax receipts, deed
of sales, and Torrens Certificate of Title. The best evidence of ownership of title is the
Torrens Certificate of Title because it is imprescriptible and indefeasible. A person is
deemed to have title to a property when he can exercise or has the bundle of rights over
it.
EXCEPTIONS
1. As exceptions to the general cases to the rule, alien acquisition of real estate in the
Philippines is allowed in the following cases.
a) Acquisition before the 1935 Constitution;
b) Acquisition by hereditary succession [LEGAL HEIR] ;
c) Purchase by aliens of not more than 40% of the units in a condominium project;
d) Purchase by former natural-born Filipino citizens, subject to the by law requirements
or limitations prescribed.
Urban land shall refer to land located in an urban area. The urban areas shall include:
(1) In their entirety, all municipal jurisdictions which, whether designated or not as
chartered cities, provisional capitals, have population density of at least 1,000 persons
per square kilometer;
(2) Poblaciones or central districts of municipalities and cities which have a population
density of at least 500 persons per square kilometer;
(3) Poblaciones or central districts (not included in 1 and 2 above) regardless of
population size which have the following: (a) A street pattern, i.e., a network of streets in
either at parallel or right angle orientation; and (b) At least six establishments
(commercial, manufacturing, recreational and/ or personal services); and (c) At least
three of the following: 1. A town hall, church or chapel with religious services at least
once a month; 2. A public plaza or cemetery; 3. A market place or building where
trading activities are carried on at least once a week; and 4. A public building like a
school, hospital, puericulture and health center or library. (d) Barangays having at least
1,000 inhabitants which meet the conditions set forth in the preceding subparagraph
[sub-par. (3)] and in which the occupation of the inhabitants is predominantly other than
farming or fishing.
Rural lands shall refer to land located in a rural area. The rural areas shall refer to all
the areas of the Philippines which do not meet the conditions set forth in the definition of
urban areas in the immediately preceding paragraph (par. 3) of this Section. (Sec. 1.
IRR. BP 185) bb) In case of married couples, one or both of them may avail of the
privilege provided that the total area shall not exceed the maximum limit. cc) When the
transferee already owns urban or rural lands for residential purpose, he shall be entitled
to acquire additional urban or rural land for residential purpose which, when added to
those already owned by him shall not exceed maximum area allowed by law.
BP 185: Mechanics for registration of transfer No deed of conveyance in favor of a
transferee under Batas Pambansa Blg. 185 shall be registered by the Register of Deeds
unless accompanied by a sworn statement showing the;
1. date and place of the transferee's birth;
2. names and addresses of his parents, of his spouse and children if any; 3. area,
location and mode of acquisition of his landholdings in the Philippines if any; 4. his
intention to reside permanently in the Philippines; 5. date he lost his Philippine
citizenship, and
6. country of which he is presently a citizen. The sworn statement herein above
mentioned shall be in addition to the documentary requirements prescribed as
prerequisites for the registration of titles under existing law and regulation. (Sec.4, IRR.
BP 185)
Under Foreign Investments Act of 1991 e) Any natural born citizen who has lost his
Philippine citizenship and who has the legal capacity to enter into a contract under
Philippine laws may be a transferee of a private land. aa) up to a maximum area of five
thousand (5,000) square meters in the case of urban land or 3 hectares in the case of
rural land to be used by him for business or other purposes. bb) In the case of married
couples, one of them may avail of the privilege herein granted: provided that if both shall
avail of the same, the total area acquired shall not exceed the maximum herein fixed.
cc) In the case of the transferee already owns urban or rural land for business or other
purposes, he shall still be entitled to be a transferee of additional urban or rural land for
business or other purposes which when added to those already owned by him shall not
exceed the maximum areas herein authorized. dd) A transferee under this Act may
acquire not more than two (2) lots which should be situated in different municipalities or
cities anywhere in the Philippines: Provided. That the total land area thereof shall not
exceed - five thousand (5,000) square meters in the case of urban land or - three (3)
hectares in the case of rural land - for use by him for business or other purposes. A
transferee who has already acquired urban land shall be disqualified from acquiring
rural land and vice versa".(Sec.10. RA 7042 as amended by R.A 8179. Approved March
28,1996)
SECTION1. Short Title - This Act shall be known as the "Citizenship Retention and Re-
acquisition Act of 2003."
SEC.2.Declaration of Policy - It is hereby declared the policy of the state that all
Philippine citizens who become citizens of another country shall be deemed not to have
lost their Philippine citizenship under the conditions of this Act.
SEC. 5 Civil and Political Rights and Liabilities - Those who retain or reacquire
Philippine citizenship under this Act shall enjoy full civil and political rights and be
subject to all attendant liabilities and responsibilities under existing laws of the
Philippines and the following conditions: (1) Those intending to exercise their right of
suffrage must meet the requirements under Sec.1,Article V of the Constitution, Republic
Act No. 9189, otherwise known as the, "The Overseas Absentee Voting Act of2003".and
other existing laws. (2) Those seeking elective public office in the Philippines shall meet
the qualifications for holding such public office as required by the Constitution and
existing laws, and at the time of the filing of the certificate of candidacy, make a
personal and sworn renunciation of any and all the foreign citizenship before any public
authorized to administer an oath; (3) Those appointed to any public office shall
subscribe and swear to an oath of allegiance to the Republic of the Philippines and its
duly constituted authorities prior to their assumption of office: Provided, that they
renounce their oath of allegiance to the country where they took that oath; (4) Those
intending to practice their profession in the Philippines shall apply with the proper
authority for a license or permit to engage in such practice; and (5) That right to vote or
be elected or appointed to any public office in the Philippines cannot be exercised by, or
extended to, those who: (a) Are candidates for or are occupying any public office in the
country of which they are naturalized citizens; and/or (b) Are in active service as
commissioned or non-commissioned officers in the armed forces of the country which
they are naturalized citizens.
SEC.8. Effectivity Clause. - This Act shall take effect after fifteen (15) days following its
publication in the Official Gazette or two newspapers of general circulation.
Approved.
EFFECTIVITY : SEPTEMBER 18, 2003
PUBLICATION : SEPTEMBER 2, 2003 (Manila Times and Today)
APPROVED BY GMA : AUGUST 29, 2003
2. BORROMEO VS. DESCALLAR G.R. No. 159310, February 24, 2009 "WHAT ARE
THE RIGHTS OF A FOREIGNER WHO ACQUIRED LAND VS. FILIPINA GIRLFRIEND
IN WHOSE NAME THE TCT WAS PLACED UNDER This is the issue discussed by the
Supreme Court in the case of Borromeo vs. Descallar, G.R. No. 159310, February 24,
2009. The facts are stated in the decision are:
Jambrich, an Austrian arrived in the Philippines in 1983 being assigned in the country
and was transferred to Cebu and met and fell in love with a separated Filipina [herein
referred to as respondent with two kids and who
had no means of livelihood. Thereafter, they bought their house and lots but the
Register of Deeds refused registration of the Deed of Absolute Sale on the ground that
Jambrich was an alien and could not acquire alienable lands of the public domain and
therefore his name was erased and the titles issued in the name of the Filipina. In 1986,
Jambrich sold his rights and interests in the said property to a Filipino buyer, Borromeo,
[the petitioner in this case] to pay for his debt but when Borromeo sought to register the
deed assignment, he discovered that the titles to the lots had been transferred to the
name of the Filipina and that the same had been mortgaged. The buyer, Borromeo then
filed a complaint for recovery of the properties. The Filipina girlfriend claimed that she
bought it with her own funds and that Jambrich being a foreigner, was not entitled to
own a land in the Philippines. The Regional Trial Court rendered a decision in favor of
the buyer and declared him to be the owner of the properties since the facts show that
the Filipina had no means of livelihood or funds to have bought the property. The
Filipina appealed and the decision was reversed by the Court of Appeals stating that the
foreigner Jambrich, could not have acquired land being a foreigner. The buyer,
Borromeo, appealed by way of petition to the Supreme Court which stated the issues; 1.
Who purchased the subject properties? 2. What is the effect of registration of the
properties in the name of the Filipina? In upholding the decision of the lower court, the
Supreme Court stated: The evidence presented showed that Jambrich had all the
authority to transfer all his rights, interests and participation in the subject properties by
the virtue of the Deed of Assignment to the buyer, Borromeo, as it was shown that the
funds to purchase the properties came from the Jambrich, who was therefore the true
buyer of the property, and "Further, the fact that the disputed properties were acquired
during the couple's cohabitation does not help the respondent. The rule that co-
ownership applies to a man and woman living exclusively with each other as husband
and wife without the benefit of marriage, but otherwise capacitated to marry each other
does not apply. In the instant case, the respondent was still legally married to another
when she and Jambrich lived together. In such adulterous relationship, no co-
ownership exists between the parties. It is necessary for each of the partners to prove
his or her actual contribution in the acquisition of property in order to be able to claim
any portion of it. Presumptions of co- ownership and equal contribution do not apply."
As to the registration of the properties in the name of the Filipina, the Supreme Court
said, "It is settled that the registration is not a mode of acquiring ownership. It is only a
means of confirming the fact of its existence with notice to the world at large.
Certificates of title are not a source of right. The mere possession of a title does not
make one true owner of the property. This is the situation in the instant case.
Respondent did not contribute a single centavo in the acquisition of the properties. She
and her two properties were then fully supported by Jambrich." As to the capacity of
Jambrich, being an alien, to acquire land, the Supreme Court said, "xxxx the transfer of
land to Jambrich, who is an Austrian, would have been declared invalid if challenged,
had not Jambrich conveyed the properties to petitioner who is a Filipina citizen. xxxxxx
The rationale behind the Court's ruling in the United Church Board for World Ministries,
as reiterated in the subsequent cases, is this - since the ban on aliens is intended to
preserve the nation's land for future generations of Filipinos, that aim is achieved by
making lawful the acquisition of real estate by aliens who became Filipino citizens by
naturalization or those transfers made by aliens to Filipino citizens. As the property in
dispute is already in the hands of a qualified person, a Filipino citizen, there would be no
more public policy to be protected. The objective of the constitutional provision to keep
our lands in Filipino hands has been achieved."
3. MULLER VS. MULLER, G. R. No. 149625, August 29, 2006 IN REPITITION FOR
SEPARATION OF PROPERTY ELENA BUENAVENTURA MULLER, -versus- HELMUT
MULLER, "Aliens, whether individuals or corporations, are disqualified from acquiring
lands of the public domain. Hence, they are also disqualified from acquiring private
lands. The primary purpose of the constitutional provision is the conservation of the
national patrimony. In the case of Krivenko vs. Register of Deeds, the Court held:
xxxxxx Thus, in the instant case, respondent cannot seek reimbursement on the ground
of equity where it is clear that he willingly and knowingly bought the property despite the
constitutional prohibition. Further, the distinction made between transfers of ownership
as opposed to recovery of funds is a futile exercise on respondent's part. To allow
reimbursement would in effect permit respondent to enjoy the fruits of a property which
he is not allowed to own. Thus, it is likewise prescribed by law. As expressly held in
Cheesman v. Intermediate Appellate Court:
Section 1. Title ––– This Act shall be known as the "Investors' Lease Act".
Sec.2. Declaration of Policy –––– It is hereby declared the policy of the State to
encourage foreign investments consistent with the constitutional mandate to conserve
and develop our own patrimony. Towards this end, the State hereby adopts a flexible
and dynamic policy of the granting of long-term lease on private lands to foreign
investors for the establishment of industrial estates, factories, assembly or processing
plants, agro-industrial enterprises, land development for industrial, or commercial use,
tourism and other similar priority productive endeavors.
Sec.3. Definitions –––– For purposes of this act, unless the context indicates otherwise,
the term: (1) "Investing in the Philippines" shall mean making an equity investment in
the Philippines through actual remittance of foreign exchange or transfer of assets,
whether in the form of capital goods, patents, formulas or other technological rights or
processes, upon registration with the Securities and Exchange Commission; and (2)"
Withdrawal of approved investment" shall mean either: (a) the failure to operate the
investment project for any three (3) consecutive years; or (b) outright abandonment of
the investment project at any time during the approved lease period: Provided, that
failure to pay lease rental for three (3) consecutive months coupled with the failure to
operate the investment project for the same period shall be deemed as outright
abandonment of the project.
Sec.4. Coverage –––– Any foreign investor investing in the Philippines shall be allowed
to lease private lands in accordance with the laws of the Republic of the Philippines
subject to the following conditions: (1) No lease contract shall be for a period exceeding
fifty (50) years, renewable once for a period of not more than twenty-five (25) years; (2)
The leased area should solely for the purpose of the investment upon the mutual
agreement of the parties; (3) The leased premises shall comprise such area as may
reasonably be required for the purpose of the investment subject however to the
Comprehensive Agrarian Reform Law and the Local Government Code. The leasehold
right acquired under long-term lease contracts entered into pursuant of this Act may be
sold, transferred, or assigned: Povided. That when the buyer, transferee, or assignee is
a foreigner or a foreign-owned enterprise, the conditions and limitations in respect to the
used of the leased property as provided for under this Act shall continue to apply.
Sec. 6 Termination of Lease Contract –– The Secretary of Trade and Industry shall
terminate any lease contract entered into under the provisions of this Act, if the
investment project is not initiated within three (3) years from the signing of the lease
contract.
Matthews vs. Taylor, G.R. 164584, [June 22, 2009], IS THE LEASE OF REAL
PROPERTY IN THE NAME OF THE FILIPINA WIFE VALID WITHOUT THE CONSENT
OF THE FOREIGN HUSBAND? It is not the uncommon that real property is placed
under the name of the Filipina wife who married to a foreigner in as much as a foreigner
cannot own land in the Philippines save only in constitutionally recognized exceptions.
In such a case, may the Filipina wife lease out the property without the consent of the
foreign husband? In the Supreme Court case of Matthews vs. Taylor, G.R No. 164584,
[June 22, 2009], this issue was raised wherein the Supreme Court resolved the issue of
whether the contract of lease entered into by the Filipina wife over real property is valid
despite the absence of consent of the foreign husband. The facts as stated in the
decision are as follows: "On June 30, 1988, respondent, Benjamin A. Taylor (Benjamin),
a British subject, married Joselyn C. Taylor (Joselyn), a 17- year old Filipina. On June 9,
1989, while their marriage was subsisiting, Joselyn from Diosa M. Martin a 1,294
square-meter lot ( Boracay property) situated at Manoc-Manoc, Boracay Island, Malay
Aklan, for and in consideration of P129,000.00. The sale was allegedly financed by
Benjamin. Joselyn and Benjamin, also using the latter's funds, constructed
improvements thereon and eventually converted the property to a vacation and tourist
resort known as the Admiral Ben Bow Inn. All required permits and licenses for the
operation of the resort were obtained in the name of Ginna Celestino, Joselyn's sister.
However, Benjamin and Joselyn had a falling out, and Joselyn ran away with Kim
Philippsen. On June 8, 1992. Joselyn executed a special power of Attorney (SPA). In
favor of Benjamin, authorizing the latter to maintain, sell, lease, and sub-lease and
otherwise enter into the contract with third parties with respect to their Boracay property.
On July 20, 1992, Joselyn, as lessor and petitioner Philip Matthews as lessee, entered
into an Agreement of Lease (Agreement) involving the Boracay property for a period of
25 years, with an annual rental of P 12,000.00. The agreement was signed by the
parties and executed before a Notary Public. Petitioner thereafter took possession of
the property and renamed the resort as Music Garden Resort.
Claiming that the Agreement was null and void since it was entered into by Joselyn
without his (Benjamin's) consent, Benjamin instituted an action of Declaration of Nullity
of Agreement of Lease with Damages against Joselyn and the petitioner. Benjamin
claimed that his funds were used in the acquisition and improvement of the
Boracay property, and coupled with the fact that he was Joselyn's husband, any
transaction involving the said property required his consent." Was the lease entered into
by the Filipina wife without the consent of her foreign husband valid? To this the
Supreme Court said, "In fine, we are called upon to determine the validity of an
Agreement of Lease of a parcel of land entered into by a Filipino wife without the
consent of her British husband. In addressing the matter before us, we are confronted
not only with civil law or conflicts of law issues, but more importantly, with a
constitutional question. It is by undisputed that Joselyn acquired the Boracay property in
1989. Said acquisition was evidenced by a Deed of Sale with Joselyn as the vendee.
The property was also declared for taxation purposes under her name. When Joselyn
leased the property to petitioner, Benjamin sought the nullification of the contract on two
grounds; first, that he was the actual owner of the property since he provided the funds
used in purchasing the same; and second, that Joselyn could not enter into a valid
contract involving the subject property without consent. x x x Citing several decisions on
the matter, the Supreme Court reiterated that, 'The rule is clear and inflexible; aliens are
absolutely not allowed to acquire public or private lands in the Philippines, save only in
constitutionally recognized exceptions. There is no rule more settled than this
constitutional prohibition, as more aliens attempt to circumvent the provision by trying to
own lands through another. xxxxxx It therefore ruled as follows; xxxxxx In the light of the
foregoing jurisprudence, we find and so hold that Benjamin has no right to nullify the
Agreement of Lease between Joselyn and petitioner. Benjamin, being an alien, is
absolutely prohibited from acquiring private and public lands in the Philippines.
Considering that Joselyn appeared to be the designated "vendee" in the Deed of Sale of
said property, she acquired sole ownership thereto. This is true even if we sustain
Benjamin's claim that he provided the funds for such acquisition. By entering into such
contract knowing that it was illegal, no implied trust was created in his favor; no
reimbursement for his expenses can be allowed; and no declaration can be made that
the subject property was part of the conjugal/community property of the spouses. In any
event, he had and has no capacity or personality to question the subsequent lease of
the Boracay property by his wife on the theory that in so doing, he was merely
exercising the prerogative of a husband in respect of the conjugal property. To sustain
such a theory would countenance in direct controversion of the constitutional
prohibition. If the property were to be declared conjugal, this would accord the alien
husband a substantial interest and right over the land, as he would then have decisive
vote as to its transfer or disposition. This is a right that the Constitution does not permit
him to have. In fine, the Agreement of Lease entered into between Joselyn and
petitioner cannot be nullified on the grounds advanced by Benjamin. Thus, we uphold its
validity." - - - - - - - - - - - - - - -0- - - - - - - - - - - - - -
1. BASIS OF PROPERTY RELATIONS UNDER THE FAMILY CODE Art. 74: Family
Code 1. By marriage settlements executed before the marriage
2. By provisions of this Code
3. By the local custom
WAIVER OF RIGHTS Art. 89. No waiver of rights, shares and effects of the absolute
community of property during the marriage can be made except in the case of judicial
separation of property. When the waiver takes place upon a judicial separation of
property, or after the marriage has been dissolved or annulled, the same shall appear in
a public instrument and shall be recorded as provided in Article 77. The creditors of the
spouse who made such waiver may petition the Court to rescind the waiver to the extent
of the amount sufficient to cover the amount of their credits. (146a)
DONATION BY SPOUSE Art.98. Neither spouse may donate any community property
without the consent of the other. However, either spouse may, without the consent of
the other, make moderate donations from the community property for charity or on
occasions of family rejoicing or family distress.
RIGHT OF SPOUSE OVER EXCLUSIVE PROPERTY Art. 110. The spouses retain the
ownership, possession, administration and enjoyment of their exclusive properties.
Either spouse may, during the marriage, transfer the administration of his or her
exclusive property to the other by means of a public instrument, which shall be recorded
in the registry of property of the place the property is located. (137a, 168a, 169a)
Art.111. A spouse of age may mortgage, encumber, alienate or otherwise dispose of his
or her exclusive property, without the consent of the other spouse, and appear alone in
the court to litigate with regard to the same.
PROPERTY REGIME OF UNIONS WITHOUT MARRIAGE Art. 147. When a man and
woman who are capacitated to marry each other, live exclusively with each other as
husband and wife without the benefit of marriage or under a void marriage, their wages
and salaries shall be owned by them in equal shares and the property acquired by both
of them through their work or industry shall be governed by the rules on co- ownership.
In the absence of proof to the contrary, properties acquired while they lived together
shall be presumed to have been obtained by their joint efforts, work or industry, and
shall be owned by them in equal shares. For purposes of this Article, a party who did
not participate in the acquisition by the other party of any property shall be deemed to
have contributed jointly in the acquisition thereof if the former's efforts consisted in the
care and maintenance of the family and of the household. Neither party can encumber
or dispose by acts inter vivos of his or her share in the property acquired during
cohabitation and owned in common, without the consent of the other, until after the
termination of their cohabitation. When only one of the parties to void marriage is in
good faith, the share of the party In bad faith in the co- ownership shall be forfeited in
favor of their common children. In case of default of or waiver by any or all of the
common children or their descendants, each vacant share shall belong to the respective
surviving descendants. In all cases, the forfeiture shall take place upon termination of
the cohabitation. (144a)
AS AMENDED BY RA 9225
SECTION 1.Article 176 of Executive Order No. 209, otherwise known as the Family
Code of the Philippines, is hereby amended to read as follows: "Article 176 Illegitimate
children shall use the surname and shall be under the parental authority of their mother,
and shall be entitled to support in the conformity with this code. However, illegitimate
children may use the surname of their father if their filiation has been 1. expressly
recognized by the father through the record of birth appearing in the civil register, or 2.
when an admission in a public document or 3. private handwritten instrument is made
by the father. Provided, the father has the right to institute an action before the regular
courts to prove non- filiation during his lifetime. The legitime of each illegitimate child
shall consist of one-half of the legitime of a legitimate child." Approved: February 24,
2004
Section1. Article 177 of Executive Order No. 209, otherwise known as the "Family Code
of the Philippines" as amended, is hereby further amended to read as follows: "Art. 177.
Children conceived and born outside of wedlock of parents who, at the time of
conception of the former, were not disqualified only because either or both of them were
below eighteen (18) years of age, may be legitimated." "Art. 178. Legitimation shall take
place by a subsequent valid marriage between parents. The annulment of a voidable
marriage shall not affect the legitimation."
Approved: DEC. 20, 2009
III. Legal Requirements for Real Estate Service Practice
1. THE REAL ESTATE SERVICE ACT, REPUBLIC ACT NO. 9646 and IRR 2.
SUBDIVISION AND CONDOMINIUM BUYERS PROTECTIVE DECREE, PD 957 3.
LOCAL GOVERNMENT CODE OF 1991, REPUBLIC ACT NO. 7160
B. THE REAL ESTATE SERVICE ACT OF THE PHILIPPINES REPUBLIC ACT NO.
8646 IMPLEMENTING RULES AND REGULATIONS
Pursuant to Section 5, (J), Article II and Section 42, Article V of Republic Act No.9646,
"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
therefore, and for other Purposes", the Professional Regulation Commission, herein
after referred to as the Commission, hereby adopts, issues and promulgates this
resolution embodying the following Implementing rules and Regulations to carry out,
administer, and enforce the provisions of R.A. NO.9646.
SEC.2. Declaration of Policy- The State recognizes the vital role of Real Estate service
practitioners in the social, political economic development and progress of the country
by promoting the real estate market, stimulating economic activity and enhancing
government income from real property-based transactions. Hence, it shall develop and
nurture through proper and effective regulation and supervision a corps of technically
competent, responsible and respected professional real estate service practitioners
whose standards of practice and service shall be globally competitive and will promote
the growth of the real estate industry. The IRR shall be interpreted, construed, and
carried out in the light of the above Declaration of Policy, which embodies the legislative
intent in enacting R.A. NO. 9646.
SEC.3. Definition of terms - As used in the IRR, the following terms shall be understood
to mean as follows: a. "Appraiser" also known as valuer, refers to a person who
conducts, valuation/appraisal; specifically, one who possesses the necessary
qualifications, license, ability and experience to execute or direct the valuation/appraisal
of real property. b. "Assessor" refers to an official in the local government unit, who
performs appraisal and assessment of real properties, including plants, equipment, and
machineries, essentially for taxation purposes. This definition also includes assistant
assessors. c. "Real Estate" refers to the land and all those items which are attached to
the land. It is the physical d. "Real Estate development project" means the development
of land for residential, commercial, industrial, agricultural, institutional or recreational
purposes, or any combination of such including, but not limited to tourist resorts,
reclamation projects, building or housing projects, whether for individual or
condominium ownership, memorial parks and others of similar nature. e. "Real estate
developer" refers to any natural or juridical person engaged in the business of
developing real estate development project for his/her or its own account and offering
them for sale or lease. f. "Real property" includes all the rights, interest and benefits
related ti the ownership of real estate. g. "Real estate service practitioners" shall refer to
and consist of 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 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. h. "Accredited and
Integrated Professional Organization (IAPO)" - the national integrated organization of
natural persons duly registered and licensed as Real Estate Service Practitioners that
the Board, subject to the approval by the Commission, shall recognize or accredited as
the only AIPO, pursuant to Sec. 34, Art of R.A No.9646 i. "Interim Accredited
Professional Organization (IAPO)" - the professional organization accredited by the
Commission only to operate and perform activities or acts prior to and until the
recognition or birth of the AIPO as defined in h. above.
RULE II PROFESSIONAL REGULATORY BOARD OF REAL ESTATE SERVICE
SEC.4 Creation and Composition of the Board - There is hereby created a Professional
Regulatory Board of Real Estate Service, hereinafter referred to as the Board, under the
supervision and administrative control of the Professional Regulation Commission
(PRC), hereinafter reffered to as the Commission, composed of a chairperson and four
(4) members who shall appointed by the President of the Philippines from the three (3)
recommendees chosen by the Commission from a list of five (5) nominees per position
submitted by the accredited and integrated professional organization of real estate
service practitioners: Provided, That two (2) of the members of the Board shall
represent the government assessors and appraisers, who are both in active government
service. The first Board shall be organized within six (6) months from the effectivity of
R.A No. 9646. This provision shall be implemented in accordance with the guidelines of
Executive Order No. 496, Series of 1991 on the selection, nomination, recommendation,
and appointment of those who will fill up any vacancy in the Board.
SEC.5 Power and Functions of the Board - The Board is hereby vested the following
specific power and functions: (a) Provide comprehensive policy guidelines for the
promotion and development of the real estate industry in relation to the regulation of the
practice of the real estate service profession; (b) Conduct licensure examinations for the
practice of the real estate service profession and prescribe the appropriate, syllabi of
the subject for examination with their tables of specification; (c) Issue, suspend revoke
or reinstate, after due notice and hearing, certificates of registration or professional
identification cards for the practice of real estate service; (a) Maintain a comprehensive
and updated register of licensed real estate service professionals; (b) Monitor the
conditions affecting the practice of real estate service and adopt such measures as may
be proper for the enhancement of the profession and/or the maintenance of high
professional, ethical and technical standards;
(c) Adopt a national Code of Ethics and Responsibilities issued by the AIPO to be
strictly observed by all licensed real estate service practitioners; (d) Hear or investigate
any violation of R.A. No. 9646, the IRR and the Code of Ethics and Responsibilities for
real estate service practitioners and issues subpoena duces to secure the appearance
of witness and the production of document in connection therewith; (e) Safeguard and
protect legitimate and licensed real estate service practitioners and, in coordination with
the accredited and integrated professional organization (AIPO) of real estate service
practitioners, monitor all forms of advertisements, announcements, signboards,
billboards. Pamphlets, brochures and other similar nature concerning real estate and,
where necessary, exercise its quasi-judicial and administrative powers to finally and
completely eradicate the pernicious practices of unauthorized or unlicensed individuals;
(f) Prescribe, in cooperation with the Commission on Higher Education (CHED) or the
concerned state university or collage, the essential requirement as to the curricula and
facilities of schools, colleges or universities seeking permission to open academic
courses or already offering such courses in real estate service, and to see to it that
these requirements, including the employment of qualified faculty members, are
properly complied with; (g) Promulgate, administer and enforce rules and regulations
necessary in carrying out the provisions of R.A. No. 9646; (h) Supervise and regulate
the registration, licensure and practice of real estate service in the Philippines; (i)
Assess and fix the rate of reasonable regulatory fees; (k) Adopt an official seal of the
Board with the interpretation of its symbols attached to this Resolution and made part
thereof as Annex "A"; (l) Evaluate periodically the status of real estate service education
and profession, and recommend and/or measures to upgrade and maintain its high
standard; (m) Prescribe guidelines and criteria for the Continuing Professional
Education (CPE) program for real estate service practitioners in consultation with the
accredited and integrated professional organization of real estate practitioners; (n)
Screen, issue and monitor to organizations of real estate professional in the conduct of
seminar and accredit such pursuant to the CPE program, as well as the instructors or
lecturer therein , for the purpose of upgrading the quality and knowledge of the
profession; (o) Monitor and supervise the activities of the accredited and integrated
professional organization (AIPO) and other associations of real service practitioners;
and (p) Discharge such other powers, duties and functions as the Commission may
deem necessary to carry out the provisions of R.A. No. 9646. The policies, resolutions
and rules and regulations issued or promulgates by the Board shall be subject to the
review and approval by the Commission. However, the Board's decisions, resolutions or
orders which are not interlocutory, rendered in an administrative case, shall be subject
to review by the Commission only on appeal, in accordance with Republic Act No. 8981
and its Implementing Rules and Regulations.
SEC.6. Qualifications of the Chairpersons and Members of the Board. The Chairperson
and the Members of the Board shall, at the time of their appointment, possess the
following qualifications: (a) citizen and resident of the Philippines; (b) holder of
bachelor's degree related to real estate; (c) An active licensed practitioner of real estate
service for at least ten (10) years prior to his/her appointment; (d) A bona member in
good standing of the accredited and integrated professional organization of real estate
service practitioners but not an officer or trustee at the time of his/her appointment;
(e) Neither be a member of the faculty of an institute, school, college or university, nor
have any interest, direct or indirect, in any institution or association where review
classes or lectures in preparation for the licensure examination are being offered or
conducted; and (f) Of good moral character, and must not have been convicted by final
judgment by a competent court of a criminal offence involving moral turpitude.
SEC.7 Term of Office. The chairperson and the members of the Board shall hold office
for a term of three (3) years from the date of their appointment and until their
successor/s shall have been appointed: Provided, That the members of the first
appointed Board shall hold office for the following terms: one (1) member as
chairperson, to serve for three (3) years; two (2) members, to serve for two (2) years;
and two (2) members, to serve for one (1) year. The Chairperson and the Members of
the Board may be reappointed for a second term but in no case shall he/she serve
continuously for more than six (6) years. Any vacancy in the Board shall be filled for the
unexpired portion of the members who vacated the position. On the constitution of the
first Board, the Chairperson and the Members of the Board shall automatically be
registered and issued Certificates of Registration and Professional Identification Cards.
Each members of the Board shall take the oath to the assumption of duty.
SEC. 8 Compensation and Allowances of the Chairperson and Members of the Board.
The chairperson and the members of the Board shall receive compensation and
allowances comparable to the compensation and allowances received by the chairman
and the members of existing professional regulatory boards under the Commission, as
provided for in the General Appropriations Act, the Salary Standardization Law, and the
Joint Circular issued by the Commision and the Department of Budget and
Management (DBM).
SEC. 9 Removal of the Chairperson and Members of the Board. The chairperson or any
member of the Board may be suspended or removed by the President of the
Philippines, upon the recommendation of the Commission and after due notice and
hearing in a proper administrative investigation to be conducted by the Commission on
the following grounds: 1. Neglect of duly, 2. Abuse of power, 3. Oppression, 4.
Incompetence, 5. Unprofessional, unethical conduct, 6. Immoral or dishonorable
conduct, 7. Commission or toleration of irregularities in the conduct of examination or
tampering of the grades, or 8. For any final judgment or conviction of any criminal
offence involving moral turpitude. The Commission in the conduct of the investigation
shall be guided by Sec. 7 (s) of R.A. No. 8981 and its rules on administrative
investigation.
SEC. 10 Supervision of the Board, Custodian of its Records, Secretariat and Support
Service. The Board shall be under the general supervision and administrative control of
the Commission. All records of the Board, including applications for examination,
examination papers and results, minutes of deliberations, administrative and other
investigative cases involving real estate service practitioners, shall be kept by the
Commission. The Commission shall designate the secretary of the Board at the office,
Secretary, Professional Regulatory Boards and shall provide the secretariat and other
support services to implement the provisions of R.A. No. 9646 subject to the usual
government accounting and auditing rules and regulations
SEC. 11 Annual Report. The Board shall, at the close of each calendar year, submit an
annual report to the Commission, giving a detailed account of its proceedings and
accomplishments during the year and recommending measures to be adopted with the
end-in-view of upgrading and improving the conditions affecting the practice of real
estate service in the Philippines.
Sec. 13 Scope of Examination. The licensure examination for the applicants for real
estate brokers, real estate appraisers and real estate consultants shall cover, but no
limited to the following (a) For real estate consultants:
1. fundamentals of real consulting;
2. Standards and ethics;
3. Consulting tools and techniques, which include project feasibility study and
investment measurement tools;
4. Real estate finance and economics;
5. Real estate consulting and investment analyses;
6. Consulting for specific engagement, which includes consulting for commercial,
industrial, recreation and resort and hotel properties, and consulting for government and
corporate and financial institutions;
7. Land Management system and real property laws; and
8. any other related subjects as may be determined by the Board;
All applications for examination shall be filed with the Board who shall assess and
approve said applicants and issue to the qualified examines the corresponding permits
or notices of admission to take such examination upon submission of the following
documents:
1. Original and photocopy of Birth Certificate or Certificate of Live Birth (NSO) and / or
valid Philippine passport, or any other proof of citizenship,
2. Original and photocopy of transcript of records and / or diploma with scanned picture,
3. Original and photocopy of notarized certification by employer of his/her years of
experience or pre-requisite Certificate of Registration (COR) and / or Professional
Identification Card (PIC) or DTI license (for real estate consultants),
4. Original and photocopy of NBI clearance,
5. Original and photocopy of duly notarized accredited seminar and / or training
certificate,
6. Community tax certificate,
7. Four (4) colored passport size pictures with background and complete nametag and
other documents in accordance with the requirements set by the Commission.
SEC. 15 Rating in the Examination. In order that a candidate may be deemed to have
successfully passed the examination, he/she must have obtained an average of at least
seventy-five percent (75%) in all subjects, with no rating below fifty percent (50%) in any
subject. The board may adopt its own internal procedure on the implementation of this
provision. The reports of ratings may be distributed to the successful examinees during
their mass oath taking.
SEC. 18 Refusal to Register. The Board shall not register and issue a certificate of
registration to any successful examinee who has been convicted by a court of
competent jurisdiction of any criminal offense involving moral turpitude or has been
found guilty of immoral or dishonorable conduct after investigation by the Board, or has
been found to be psychologically unfit.
Provided, finally, that real estate practitioners falling the above-described categories
who fail to comply with the necessary CPE requirements within two (2) years after the
efectivity of R.A. No. 9646, on or before 30 July 2011, shall be required to take the
Board licensure examination for real estate service practitioner;
(b) Assessors and appraisers who, on the date of the effectivity of R.A. No. 9646 or as
of 30 July 2009, hold permanent appointments and are performing actual appraisal and
assessment functions for the last five (5) years, have passed the Real Property
Assessing Officer (RPAO) examination conducted and administered by the Civil Service
Commission (CSC) in coordination with the Department of Finance (DOF), and have
undertaken relevant CPE to the satisfaction of the Board; and (c) Assessors and
appraisers who, on the date of the effectivity of R.A. No. 9646 or as of 30 July 2009,
hold permanent appointments and have at least ten (10) years actual experience in real
property appraisal or assessment and have completed at least one hundred twenty
(120) hours of accredited training on real property appraisal conducted by national or
international appraisal organizations or institutions/entities, duly certified by the
Department of Finance (DOF) or any other pertinent national government agencies or
Government Owned and Controlled Corporations (GOCC) as the case may be,
recognized by the Board and relevant CPE credit units to the satisfaction of the Board.
Those falling under categories (b) and (c) shall register with the Board after they shall
have complied with the requirements for registration as real estate appraisers, and have
completed twenty four (24) CPE credit units. Provided, that those seeking to be licensed
to a new credential level shall be required to take the pertinent Board licensure
examination for real estate practitioners. Those so exempt under the aforementioned
categories shall file their applicant within two (2) years from the effectivity of Republic
Act No. 9646 or until 30 July 2011. Provided, that the renewal of the professional
identification card is subject to the provisions of Section 17, Art. III of R.A. No. 9646. An
applicant for registration without examination must submit the following documents:
1. Original and photocopy of Certificate of Live Birth/Birth Certificate (NSO), or valid
Philippine passport, or any other proof of citizenship;
2. Original and photocopy of Certificate of Registration (COR) and / or Professional
Identification Card (PIC) or DTI License;
3. DTI certificate of Rating (for those who passed the examination but failed to obtain
their license),
4. Original and photocopy of NBI Clearance,
5. Duly notarized CEP/CPE Certification,
6. Civil Service Commission Certificate, DOF, or any other national government
agencies or, GOCC Certificate (assessors or government appraisers), or any certificate
of accredited seminar/training provider,
7. Appointment papers and service to prove appraisal or assessment experience (for
assessors of government appraisers),
8. Four (4) passport size colored photos with complete nametag in white background,
original and photocopy of community tax certificate (CTC) , and surety bond for real
estate brokers and private real estate appraisers.
SEC. 22 Roster of Real Estate Service Practitioner. The Board, in coordination with the
AIPO of real estate service practitioners, shall prepare, update and maintain a roster of
real estate service practitioners which shall contain the names of all registered estate
service practitioners, their residence and office address, license
numbers, date of registration or issuance of certificates, and other data which the Board
may deem pertinent. Copies thereof shall be made available to the public upon request.
SEC. 25 Oath. All successful examinees qualified for registration, all qualified applicants
for registration without examination and accredited salespersons shall be required to
take the 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 Provided, That the mass oathtakng of the foregoing
may be initiated and supervised by the Board in coordination with the AIPO.
SEC. 26 Professional Indemnity Insurance/Cash or Surety Bond. All real estate brokers
and private real estate practitioners shall, in addition to the oath referred to in the
preceding section, be required to post a professional indemnity insurance/cash or surety
bond, in an amount to be determined by the Board, which in no case shall be less then
Twenty thousand pesos (P20,000.00), without prejudice to the additional requirement of
the client. It will be renewable every three (3) years.
SEC. 27 Acts Constituting the Practice of Real Estate service. Any single act or
transaction embrace within the provisions of Section 3(g), Rule II hereof, as performed
by the real estate service practitioners, shall constitute an act of engaging in the
practices of real estate service.
SEC. 28 Exemptions from the Acts Constituting the Practice of Real Estate Service. The
provisions of R.A. No. 9646 and the IRR shall not apply to the following: (a) Any person,
natural or juridical, who shall directly perform by himself/herself the acts mentioned in
Section three 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 nut limited to Presidential Decree (PD) 957, as amended, and Batas Pambansa Blg.
220 and their Implementing Rules and Regulations; (b) Any receiver, trustee or
assignee in bankruptcy or insolvency proceedings; (c) Any person acting pursuant to
the order of any court of justice (d) Any person who is a duly constituted attorney-in-fact
for purposes of sales, mortgage, lease or exchange, or other similar contracts or real
estate, without requiring any form of compensation or remuneration; and (e) Public
Officers in the performance of their official duties and functions, except government
assessors and appraisers.
SEC. 33 Display of License in the Place of Business. Every registered and licensed real
estate service practitioner shall establish and maintain a principal place of business and
such other branch offices as may be necessary, and shall conspicuously display therein
the original and/or certified true copies of registration and professional identification
cards of all the real estate service practitioners employed in such office.
SEC. 34 Accreditation and Integration of Real Estate Service Association. All real estate
service association shall be integrated into one (1) national organization, which shall be
recognized by 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 practitioner, 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 fro the renewal of the professional identification
card, the automatic membership in the accredited and integrated professional
organization of real state service practitioner shall not be a bar to membership in other
association of real estate service practitioner
SEC. 35 Code of Ethics and Responsibilities for Real Estate Service Practitioner. The
board shall adopt and promulgated the code of ethics and responsibilities for real estate
service practitioner which shall be prescribed and issued by the accredited and
integrated professional organization (AIPO) of real estate service practitioner.
SEC. 36 Continuing Professional Education (CPE) Program. The board shall develop,
prescribed and promulgated guidelines on CPE upon consultation with the accredited
and integrated professional organization of real estate service practitioner, affiliated
association of real estate service practitioners and other concerned sectors, and in
accordance with such policies as may have been prescribed by the board, subject to the
approval of the commission .the board shall create a CPE council that shall be
composed of a chairperson coming board ,a member from the accredited and integrated
professional organization of real estate service practitioner and a member from the
academe.
SEC. 37 Enforcement Assistance to the Board. The board shall be assisted by the
commission in carrying out the provisions of R.A No. 9646 and the IRR and other
policies. The lawyers of the commission shall act as prosecutors against illegal
practitioner and other violations of R.A No. 9646 and the IRR. The duly constituted
authorities of the government shall likewise assist the board and commission in
enforcing the provisions of R.A No.9646 and the IRR.
SEC.38. Indication of the certificate of registration, professional identification
card/license number, privilege tax receipt (PTR) number, accredited integrated
professional organization (AIPO)number. Real estate service practitioner shall be
required to indicate the certificate of registration, professional identification card, PTR
number and AIPO membership and or receipt issue in connection with the practice of
his/her profession.,
SEC. 39 Penal Provisions. Any violation of R.A. 9646, including violations of this IRR,
shall be meted the penalty of a fine of not less than one hundred 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. In case the violation is committed, by a partnership, corporation,
association or any other 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 principle or as a co-principal with other
participants, if any.
SEC. 41 Transitory Provision. Within ninety (90) days from the effectivity of R.A. No.
9646, the DTI-Bureau of Trade Regulation and Consumer Protection (BTRCP) shall
transfer all pertinent records, documents and other materials to the Professional
Regulatory Board of Real Estate Service.
SEC. 42 Implementing Rules and Regulations. Within six (6) months after the effectivity
of R.A. No.9646, the Commission, together with the Board and the accredited and
integrated professional organization of real estate service practitioners, the Department
of Finance, and the CHED, shall prepare the necessary rules and regulations, including
the Codes of Ethics and responsibilities for real estate service practitioners, needed to
implement the provisions of R.A. No. 9646. The Board shall issue and promulgate a
resolution for the IRR subject to review and approval by the Commission. Nothing in
R.A. No. 9646 and the IRR shall be construed or interpreted to effect or prevent the
practice of any other profession legally regulated by any other professional regulatory
law.
SEC. 43 Separability Clause. If any clause, sentence, paragraph or part of the IRR shall
be declared unconstitutional or invalid, such judgment shall not affect, invalidate or
impair any other part thereof.
SEC. 44 Repealing Clause.
1. Section 3(e) and (ee) of Act No. 2728, as amended by Act No. 3715 and Act No.
3969, Sections 472 and 473 of the Local Government Code of 1991 (Republic Act No.
7160), and pertinent provisions of the Civil Service Law are hereby modified
accordingly.
2. All laws, decrees, executive orders, department or memorandum orders and other
administrative issuances or parts thereof which are inconsistent with the provisions of
R.A. No. 9646 and / or the IRR are hereby modified, superseded or repealed
accordingly.
SEC. 45 Effectivity. The IRR shall take effect after fifteen (15) days following its full and
complete publication in the Official Gazette or in a major daily newspaper of general
circulation in the Philippines. Done in the City of Manila this 21st day of July, 2010
Published July 24, 2010 [ Philippines Daily Inquirer and The Philippines Star ]
SECTION 2. Definition of Terms- When used in this Decree, the following terms shall,
unless the context otherwise indicates, have the following respective meanings: xxxxxx
b) Sale or sell- "Sale" or "sell" shall include every disposition, or attempt to dispose, for
a valuable consideration, of a subdivision lot, including the building and other
improvements thereof, if any, in a subdivision project or a condominium unit in a
condominium project. "Sale" and "sell" shall also include a contract to sell, a contract of
purchase and sale, an exchange, an attempt to sell, an option of sale or purchase, a
solicitation of a sale, or an offer to sell, directly or by an agent, or by a circular, letter,
advertisement or otherwise. A Privilege given to a member of a cooperative,
corporation, partnership, or any association and/or the issuance of a certificate or
receipt evidencing or giving the right of participation in, or right to, any land in
consideration of payment of the membership fee or dues, shall be deemed a sale within
the meaning of this definition. c) Buy and purchase- The "buy" and "purchase" shall
include any contract to buy, purchase, or otherwise acquire for a valuable consideration
a subdivision lot, including the building and other improvements, if any, in a subdivision
project or a condominium unit in a condominium project. xxxxxx 1) Broker- "Broker"
shall mean any person who, for commission or other compensation, undertakes to sell
negotiate the sale of a real estate belonging to another. m) Salesman- "Salesman" shall
refer to the person regularly employed by a broker to perform for and in his behalf, any
or all functions of real estate broker. xxxxxx
SECTION 11. Registration of Dealers, Brokers and Salesmen- No real estate dealer,
broker or salesman shall in the business of selling subdivision lots or condominium units
unless he has registered himself with the Authority in accordance with the provisions of
this section. If the Authority shall find that the applicant is of good repute and has
complied with the applicable rules of the Authority, including the payment of the
prescribed fee, he shall register such applicant as a dealer, broker or salesman upon
filing a bond, or other security in lieu thereof, in such sum as may be fixed by the
Authority conditioned upon his faithful compliance with the provisions of this Decree:
Provided, that the registration of a salesman shall cease upon the termination of his
employment with a dealer or broker. Every registration under this section shall expire on
the thirty-first day of December of each year Renewal of registration for the succeeding
year shall be granted upon written application thereof made not less than thirty nor more
then sixty days before the first of the ensuing year and upon payment of the prescribed
fee, without the necessary of filing further statement or information, unless specifically
required by the Authority. All applications filed beyond said period shall be treated as
original applications. The names address of all persons registered as dealers, brokers,
or salesmen shall be recorded in a Register of Broker of Brokers, Dealers and
Salesmen kept in the Authority which shall be upon to public inspection.
Pending hearing of the case, the Authority shall have the power to order the suspension
of the dealer's, broker's, of salesman's registration; provided, that such order shall state
the cause for the suspension. The suspension or revocation of the registration of a
dealer or broker shall carry with it all the suspension or revocation of the registrations of
all his salesmen. xxxxxx Done in the City of Manila, this 12th day of July, in the year of
Our Lord, nineteen hundred and seventy-six.
(Sgd.) FRDINAND E. MARCOS President of the Philippines
REVISED RULES AND REGULATIONS IMPLEMENTING THE SUBDIVISION AND
CONDOMINIUM BUYER'S PROTECTIVE DECREE (PD 957) AND OTHER RELATED
LAWS
Pursuant to Article IV Section 5 c) of Executive Order No. 648 the following rules are
hereby promulgated by the Housing Land Use regulatory Board (HLURB) to implement
Presidential Decree No. 957, 1344 and related laws applicable to open market and
medium cost subdivision and condominium projects. xxxxxx
Section 14. Certificate of Registration The certificate of registration for brokers and
salesmen shall expire on the first day of December each year. Renewal of registration
for the succeeding year shall be granted upon filing an applicant made not less than 30
or more than 60 days of the ensuing year and upon payment of the prescribed fee
without the necessity of filling further statement or information, unless specified by the
Board. All applications filed beyond said period shall be treated as original application.
I. DEFINITIONS
A. REAL ESTATE- refers to the land and all those items which are attached to the land.
It is the physical, tangible entity, together with all the additions or improvements on,
above or below the ground. [Sec. 3(c), RA 9646]
B. REAL PROPERTY- "Real estate" refers to the land and all those items which are
attached to the land. It is the physical, tangible entity, together with all the additions or
improvements on, above or below the ground, includes all the rights, interests and
benefits related to the ownership of real estate [Sec.3(f), RA 9646]
C. REAL ESTATE BROKERS- 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
1. sale,
2. mortgage,
3. purchase,
4. lease,
5. exchange,
6. joint venture, or
7. other similar transactions on real estate or any interest therein. [Sec.3(g)(4), RA
9646]
E. REAL ESTATE DEALER- Any person, natural or juridical, who is engaged in the
trade of selling, buying, or leasing his own real properties or interest therein, using his
own funds and with the purpose of realizing profit.