Legal Requirements for Real Estate Service Practice

Legal Requirements for Real Estate Service Practice

• Prior to the RESA law, the law that governed the real estate service practice is:

• DTI Ministry Order No. 39, Series of 1985
• DTI Code of Commerce
• DTI Ministry Order No. 85, Series of 1989
• Real Estate Service Act of the Philippines - ✔✔DTI Ministry Order No. 39, Series of 1985

Explanation: Real Estate Service Practice was formerly under THe supervision and regulation of the Department of Trade and Industry particularly the Bureau of Trade Regulation and Consumer Protection (BTRCP). The DTI that time issued Ministry Order No. 39 in order to regulate the .real estate service. Under the present RESA law, real estate service practice is regulated by the Professional Regulatory Board or Real Estate Service under the Professional Regulation Commission.

• Grace decided to be a real estate broker, it is therefore required she must, in the meantime be a

graduate of:

• A bachelor's degree in real estate management
• A relevant bachelor's degree
• At least 2 years of college ·which leads to a BS/AB degree
• A bachelor's degree in real estate brokerage - ✔✔A relevant bachelor's degree

See Section 14 (b) of the IRR of RESA law.

• The Real Estate Service Act of the Philippines (RA 9646) became effective last:

• June 15, 2009
• June 30, 2010
• July 30, 2009
• July 30, 2010 - ✔✔July 30, 2009

Note: The key word in this question is ··effective" out when the question asks about the date of signing the examinee must answer "29 June 2009".

• Under the RESA law, a city government official whose purpose is primarily for taxation

purposes is the:

• Real estate treasurer
• Real estate appraiser
• Real estate assessor
• Private real estate appraiser - ✔✔Real estate assesor

Note: The real estate appraiser and assessor take the same appraisal examination and are categorized as one real estate service practice. Tile main difference between the two is that tile assessor is employed as a government official for purposes of taxation. It is opined that the assessor may, when allowed by his superior, practice private real estate appraisal practice as they are issued one and the same category of license and share the same examination. In the same manner, a private real estate appraiser may apply with the government as a real estate assessor provided he completes all the requirements of a civil servant. It is humbly submitted that the real estate assessor is actually a specific practice under the general term real estate

appraiser:

• In case RR development corporation will engage in the development of land for a memorial

park, the corporation shall be referred to under the RESA and defined as a:

• Real estate business corporation
• Real estate developer
• Real estate development and memorial company
• Real estate dealer - ✔✔Real estate developer

Explanation: "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.

• Joe, as a real estate appraiser, is a person who conducts valuation/ appraisal with the necessary

qualifications and experience to direct the valuation of real property and is also referred to as:

A Property appraiser

• Value estimator
• Real estate assessor
• Valuer - ✔✔Valuer

Explanation: Under real estate appraisal practice, the appraiser is ordinarily and internationally referred to as 'VALUER". Options A and B are not tile appropriate terminologies. While Option c is a technically an appraiser in public office for purposes of realty taxation.

• It refers to the land, improvement and all those attached to the land which are tangible and

physical:

• Real property
• Real estate
• Real estate improvements
• Real property and improvement - ✔✔Real Estate

Explanation: Please note that real property is the brooder concept which consists of the concepts of (i) real estate as the tangible component and (ii) interests therein (bundle of rights} as the intangible component.

• Previously a licensed real estate salesman under MO 39 series of 1985, the salesman is now

referred to under RESA as:

• Accredited real estate salesman
• Accredited real estate salesperson
• Licensed real estate salesperson
• Licensed real estate sales agent - ✔✔Accredited real estate salesperson

Explanation: Always remember that a real estate salesperson under the RESA Law is strictly speaking not 'licensed" but merely ·~4 ACCREDITED" to real estate broker for one (1) year.

• For the assessor, as provided under the RESA it shall refer to the Chief Assessor of the

municipality or city or province and includes the:

• Assistant assessor
• Public government appraiser
• Public real estate assessor
• Government chief appraiser - ✔✔Assistant assessor