Philippine Code Of Ethics For Real Estate Practitioners


Who are Real Estate Service Practitioners?

Real estate 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:
    1. The acquisition, enhancement, preservation, utilization or disposition of lands or improvements thereon;
    2. The conception, planning, management and 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 act 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 Assessors– 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 performs service for, and in behalf of a real estate broker, who is registered and licensed by the Professional Board of Real Estate service for in expectation of a share in the commission, professional fee, compensation or other valuable consideration.

Introduction:

The realty service practice is noble profession, calling or occupation, is dedicated to the promotion, development including proper zonification and conservation of land and natural resources, including improvement, rights and interest appurtenant thereto for the benefits and enjoyment of the Filipino people they serve.

Declaration of Principles

  1. The realty service is noble profession, calling or occupation and those engaged therein shall abide by and comply with all the laws decrees, orders and rules and regulation enacted or promulgated by the duly constituted government authorities;
  2. Utmost fidelity, sincerity, respect for colleagues in the profession, and honesty shall be observed at all times by those in the realty service practice in their relation with the client, the community and the nation in general;
  3. Adequate knowledge, competence and expertise in real estate development and management shall be maintained; and upgrading of the standards of practice shall be effected when the need arises; all these for, and in the interest of the social and economic progress of the country;
  4. The spirit of camaraderie, cooperation and professional relationship by respecting the rights of other practitioners shall be promoted; and every organization to which they shall be encourage to join shall be purpose as well as set up, upgrade, and maintain a high level of integrity, honesty and competence in the profession for the best interest of the community and the nation;
  5. A high level of professional respect with colleagues in the realty service practice shal be maintained, and their dealings with each other shall always be fair honest and just;
  6. The Golden Rule which reads: “ Treat others as you like them to treat you” shall be observed in all dealings and relation of the practitioners with clients, fellow practitioners, the organization to which they belong and the general public.

Scope and Purview of the code:

Categories in the rules of conduct

  1. In relation to the government
  2. In relation to the public
  3. In relation to the client/customer
  4. In relation to fellow practitioners/colleagues
  5. In relation to the organization

Relation to the Government:

  1. The practitioner should secure all the necessary licenses, permits and authority from the professional regulatory board of the Real Estate Service (PRBES), and other government agencies as may be required by law, ordinance or rules and regulations and comply with all the requirements thereof before engaging in the same;
  2. He should pay any and all taxes, fees dues, levies or charges that the government may impose in accordance to law, ordinance, or rules and regulations;
  3. He should help, assist and cooperative with Professional Regulation Board of real estate service and all government agencies and instrumentalities in the promotion, development proper zonification and conservation of lands and other natural resources; its improvements and rights and interest therein;
  4. He should not encourage, abet, tolerate or participate in the evasion or illegal reduction in the payment of all taxes, fees dues, levies or charges that may be imposed by the government;
  5. He should not offer or agree to pay to, split or rebate any commission, fee or valuable consideration, directly or indirectly, with any person who is not a duly licensed practitioner or to cooperate, assist or endorse any transaction or engagement of his services in violation of any existing law rule or regulation;
  6. He should indicate the certificate of registration, professional identification card, PTC number, and APO (accredited professional organization) receipt number, and the date of issuance and the duration of validity on the documents he signs, uses or issues as well as in his letterhead, dry seal, signboard, advertisement and other announcement in relation to the realty practice;

Relation to the public:

  1. The practitioner should be imbued with a social conscience for he does not live by himself and his family alone but he is part of a society with definite social responsibilities;
  2. He should ensure the highest and best use of the land and the equitable distribution of ownership, irrespective of political beliefs, cultural background, sect, religion or class;
  3. He should keep himself well-informed as to any movement affecting real estate in the community city or province, so that he may be able to contribute to public thinking on matters of taxation, land use, city planning, zonification and other programs of the government;
  4. He should cooperate with the government in protecting the public against deceptive, unfair and unconscionable acts and practices of some unscrupulous or unlicensed practitioners, like fraud, misrepresentation r concealment of relevant information and other related unethical practices;
  5. He should ascertain all pertinent facts concerning every property, and avoid error, exaggeration, misrepresentation or concealment of pertinent facts in dealing with the general public concerning real estate transactions;
  6. He should not be instrumental in introducing in a neighborhood a certain character or use of property which will tend to impair or erode property values within that neighborhood;
  7. He should not be a party to the naming of a false consideration in a deed, unless it be the naming of an obviously nominal consideration;
  8. He should not engage in activities that constitute the practice of law and should recommend that title be examined and legal counsel be obtained when the interest of either party required it;
  9. He should keep in a special bank account, separate from his own funds, money coming into his hands in trust for other persons, such as escrows, trust funds, client’s money and other like items;
  10. As a real estate appraiser, he should not render an opinion without careful and thorough analysis and interpretation of all factors affecting the value of the property. His counsel and advice constitutes a professional service for which he should make a fair and reasonable charge;
  11. As an appraiser, he should not undertake to make an appraisal or render an opinion that is outside the field of his experience and competence unless he obtains the assistance of another practitioner familiar with such type property or unless the facts are disclosed to the client.

Relation to the client:

  1. The practitioner, in accepting an appointment or authority to act for and in behalf of a client or customer, should pledge himself with utmost fidelity and good faith to protect and promote the interest of his client without in any manner sacrificing the legitimate interest of the other party in the transaction;
  2. For the sake of justice and fairness to his client who reposed confidence in him, the practitioner should endeavor to be well informed of current legislation, policies and programs of the government including proposed legislation, which may affect the programs of his client;
  3. He should not accept any commission, fee or any valuable consideration from any party in any transaction except from his client unless with the full knowledge and consent of all the parties in the transaction. He shall not also introduce or work for an overprice from either the buyer or seller except the usual standard rate of commission on any real estate transaction.
  4. He should charge and collect only such fees or commission as area fair and reasonable in accordance with usual schedule of commissions;
  5. He should not advertise any property without authority and in any offering, the price quoted should be in accordance with the price agreed with the owners as the offering price;
  6. In the event that more than one formal offer on a specific property is made before the owner has accepted a proposal, all written offer should be presented to the owner for decision.
  7. He should endeavor to make his client conclude a fair contract, advantageous to both;
  8. He should assist his client acquire possession and ownership of the real property bought in accordance with the terms and conditions agreed upon;
  9. In case he is called upon to act as witness in a court proceeding he should give his testimonies in the most unbiased, honest, truthful and professional manner;
  10. As a real estate appraiser, he should not render an opinion without careful and thorough analysis and interpretation of all factors affecting the value of the property. His counsel and advice constitutes a professional service for which he should make a fair and reasonable charge;
  11. As an appraiser, he should not undertake to make an appraisal or render an opinion that is outside the field of his experience and competence unless he obtains the assistance of another practitioner familiar with such type of property unless the facts are disclosed to the client.

Relation to fellow Practitioners:

  1. He should not solicit a listing which is currently listed exclusively with another broker unless the listing agreement has expired or revoked by the owner and the owner offers to list the same to the new broker without soliciting the same;
  2. When he accepts a listing from another broker, the agency of the broker who offers the listing should be respected until it has expired and the property has come to the attention of the accepting broker from a different source, or until the owner without soliciting, offers to list with the accepting broker, Such a listing should not be passed to a third broker or published in a daily newspaper without the knowledge and consent of the listing broker;
  3. Signs giving notice of a property for sale, rent, lease or exchange should not be placed on any property by more than one broker and only if authorized by the owner;
  4. He should not use information obtained by him from a listing broker through offers to cooperate or received through multiple listing services or other sources authorized by the listing broker for the purpose of creating a referral prospect to a third broker or for creating a buyers prospect, unless such is authorized by the listing broker;
  5. He should cooperate with other brokers on property listed and share the commission on an agreed basis. Negotiations concerning property listed exclusively with one broker should be carried with listing broker, and not the owner, except with the consent of the listing broker;
  6. He should not solicit or use the services of an employee or salesman of another practitioner without the knowledge of the employer;
  7. He should not criticize publicly a competitor nor volunteer an opinion of a competitor’s transaction. If his opinion is sought, it should be rendered with professional integrity and courtesy;
  8. The practitioners should seek no unfair advantage over his fellow practitioner and should willingly share with them the lessons of his experience and study;
  9. He should conduct his business properly to avoid any controversy with his fellow practitioners. In the event of a controversy should be submitted for arbitration to such organization or association whose decision, if accepted by both parties, will be final and binding as far as the association is concerned;
  10. If the controversy is between practitioner belonging to different organizations or associations, it should be submitted to an Arbitration Board consisting of one member from each organization or association chosen by each of the parties to the controversy. A third member should be chosen from either organization or association or from the national organization or association to which said organization are affiliated;
  11. In case a complaint is filed against a practitioner with his organization or association for unethical or unfair practice, he should voluntarily submit all pertinent facts before an investigating body that may be formed by his organization or association for evaluation and resolution;

Relation to his organization including the national association to which his organization is affiliated:

  1. In the interest of society and his own profession, calling or occupation, the practitioner should abide by the constitution and by-laws of his association or organization and the national association to which it is affiliated;

Election as officer or member of the governing body of the organization or association carries with it the moral obligation to serve honorably, unselfishly, diligently and efficiently. It should not be the subject of election campaign, or use of letters or nominees or candidates or other forms of electioneering or any agreement or any act which will interfere with the free and wise choice of the officers and members of the governing body of the organization;

  1. He should support his organization morally and financially and actively support its plans, programs and regulations before taking any judicial or quasi-judicial action.

Sanctions:

Violations of any provisions of this code shall give rise to any sanction that may be imposed by the organization to which a practitioner belongs as a member. Without prejudice, however, to such disciplinary action that the Professional Regulatory Board of Real Estate Service (PRBRES) may deem expedient thereon when the proper compliant against the erring practitioner for alleged misconduct is filed with the board in accordance with existing rules and regulations.

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