RESA Law takes effect July 30, 2009

DTI will no longer accept applications for license, whether original or renewal upon effectivity.


After years of lobbying, Republic Act No. 9646 otherwise known as the “Real Estate Service Act of the Philippines” or RESA was finally signed into law on June 29, 2009 by President Gloria Macapagal Arroyo and will take effect July 30, 2009.

How does this law affect the practitioners?

RESA is an an act regulating the practice of real estate service in the Philippines, creating for the purpose a Professional Regulatory Board of Real Estate Service (Board) under the supervision and administrative control of the Professional Regulation Commission (PRC). The express repeal by RESA of Sections 3 (e) and (ee) of Act. No. 2728, as amended, the law from which Department of Trade and Industry (DTI) draws its authority to regulate the real estate service practice, will also result in the repeal of Ministry Order No. 39, Series of 1985, as amended, and other related issuances implementing Act No 2728.

One of the provisions of this law that is of immediate significance is the registration without examination of real estate brokers, real estate appraisers and real estate consultants who on the date of effectivity of the law are already licensed by DTI pursuant to M.O. No. 39.

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.

The RESA mandates the transfers of regulation of real estate practice from the DTI to the PRC and transfer all pertinent records to the PRC within ninety (90) days from effectivity.

As a consequence, starting July 30, 2009 the DTI Field Offices will no longer accept application for license, whether original or renewal, of real estate consultants, appraisers, brokers and salespersons. All records pertaining to licensed practitioners will be prepared for transmittal to the Board.

Those who have expired licenses or passers of previous examinations who have not applied for a license as of the above deadline will now be subject to the RESA which requires examination for licensure.

New and tougher requirements have been adopted in the RESA, like for brokers, an applicant for examination must be 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”. For real estate salespersons, no examination shall be given, but they shall be accredited by the Board, provided, that they have completed at least two (2) years of college.

The Act also states a 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 for any violations of this act or including violations of implementing rules and regulations.

However, any cases involving violation of Act No. 2728 as amended, whether pending or those that will be filed prior to effectivity of RESA, shall remain with DTI given the prospective application of the law.

RESA also mandates that 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.

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.

Click here to view RESA pdf file