Real Estate Service Act of the Philippines: RESA LAW OR RA 9646

What is RESA Law or RA 9646?

  1. Real Estate Service Act of the Philippines
  2. Effectivity was on July 30, 2009

Who are covered by this Law?

All real estate practitioners under RESA Law are as follows:

  1. Brokers
  2. Appraisers
  3. Consultant
  4. Salespersons
  5. Assessors- included also but should be licensed also as an appraiser, Assistant assessors are included under Sec. 3b of RA9646, however, must be a licensed appraiser, too.

Purpose of this law under Declaration of Policy (section 2 RA 9646)

The state recognizes the vital role of real estate service practitioners in the social, political, economic development and progress of the country by purpose.

  • Promoting the real estate market
  • Stimulating economic activity and
  • Enhancing government income from real property-based transactions

How to do it?

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.


AIPO                -Accredited and Integrated Professional Organization

PRBRES            -Professional Regulatory Board for Real Estate Service

PRC                  -Professional Regulation Commissions

Who designate the Master Schedules of Board Licensure Examination for real estate brokers, appraisers and consultants?

The Professional Regulatory Commissions

What are the real estate subjects covered by the brokers, appraisers and consultants examination?

For real estate brokers:

  • Fundamentals of property ownership
  • Code of ethics and responsibilities
  • Legal requirements for real estate service practice
  • Real estate brokerage practice
  • Subdivision development
  • Condominium concept and other types of real estate holdings
  • Real estate finance and economics
  • Basic principles of ecology
  • Urban and rural land use
  • Planning, development and zoning
  • Legal aspect of sales, mortgage and lease
  • Documentation and registration
  • Real property laws and taxation and
  • Any other related subjects as may be determined by the board


How do the examinations look like in the actual examination?

First Part- 2 hours

  1. Fundamentals of property ownership
  2. Code of ethics
  3. Legal requirements for real estate service
  4. Real estate laws and taxation

Second Part- 2 hours

  1. Subdivision development
  2. Condominium concept/other realty holdings
  3. Legal aspect: sales, leases and mortgages
  4. Documentation and registration

Third Part- 4 hours

  1. Real estate brokerage practice
  2. Real estate finance and economics
  3. Urban and land-use
  4. Basic principles of ecology
  5. Basic appraisal for real estate brokers

Total hours                 – 8 hours (one day)

Number of items        – 400 questions

What is the passing rate? How do they compute?

  • Generally , 75% average
  • With no cluster –there are 3 clusters or parts – be below 50% (raw score)


Who are qualified to take the examination, in general for brokers and appraisers?

  • In general, Filipino citizen
  • College graduate (4-year course, any course)
  • Good moral character, and must not have been convicted of any crime involving moral turpitude
  • Note: you can take brokers exam ahead of appraisers exam or vice versa.


In addition to the above, who else and what else are the additional requirements if the applicant is taking the consultants examination.

  • Must show proof that he/she has at least ten (10) years as licensed real estate broker
  • Or 10 years as an assessor
  • Or 10 years as a bank, or institutional appraiser
  • Or 10 years as a n employed person performing real property valuation
  • Or at least five (5) years’ experience as licensed real estate appraiser


Who will prepare and give the examination for real estate brokers, appraisers and consultants?

The Professional Regulatory Board for Real Estate Practice (PRBRES)

Successful examinee may not be registered by PRC, in what cases? Sec. 18 RESA Law.

  • Convicted by a court of competent jurisdiction of any criminal offense involving moral turpitude
  • Has been found guilty of immoral or dishonorable conduct after investigation by the Board.
  • Has been found to be psychologically unfit.


A license maybe suspended or revoked or special/temporary permit maybe cancelled, in what grounds?

  1. Procurement of a certificate of registration and/or professional identification card, or special/temporary permits by fraud or deceit.
  2. 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.
  3. Unprofessional or unethical conduct
  4. Malpractice or violation of any of the provisions of R.A No. 9646, the IRR, and the Code of Ethics and Responsibilities for real estate service practitioners and
  5. Engaging in the practice of the profession during the period of one’s suspension.


What is the grandfather’s rule in RA9646? registration without taking the examination.

It is a privilege given to those who are already licensed practitioners under the DTI or before the effectivity of RA9646, to register at PRC upon payment of the required fees and submitting the required CPE certificate (now CPD) even without taking the usual examination.

Note: Those who passed the exams before the effectivity of RA9646 for brokers, appraisers and consultants but unable to secure their respective license are also qualified under grandfather’s rule”.

Included were:

  • Brokers, appraisers, consultants
  • Salespersons
    • If high school graduate only or less than 72 units in college
      • Must have 4-year experience as licensed salesperson at DTI
      • Or 3 years actual experience as certified by his broker or developer
    •  If at least 2nd year college or with 72 units in college, at least
      • Anytime, not covered by grandfather’s rule
      • No exam needed, just CPD for at least 12 hours
      • Salespersons need not take the exam
  •  Under the law, assessors and assistant assessors are included even if they are not yet licensed as appraisers under DTI, but subject to qualifying experience and tenure of office.
    • Those who passed the RPAO exam- minimum experience is 5 years with permanent appointment
    • Without RPAO (real property assessing officer)- minimum experience of 10 years with permanent appointment

Note: For qualified assessors and assistant assessors under grandfather’s rule, only the appraisers license will be given to them. They have to take the exams for them to get the broker or consultants license, however, subject to required educational attainment and experience in case of consultant.

What is the rule before a foreigner maybe given a special or temporary permit to practice real estate service in the Phils. (sec. 23)?

If services are urgently needed in the absence or unavailability of local real estate service practiitioners for the purpose of promoting or enhancing the practice of the profession in the Philippines.

Under the section 24 of RESA Law, can a foreigner be admitted in the licensure exam and practice real estate in the Phils.?

In general, YES! Under reciprocity rule.

What is foreign reciprocity rule? Section 24

In general, if Filipinos are allowed to be licensed and practice real estate in, say, USA, then we will allow US citizens also to be licensed here and practice, subject to the approval of the board (PRBRES) and the commission (PRC).

What is the duration of the license? The bond? Expiration of the license?

Duration          – one time payment for 3 years

Bond               – 3 years also, co-terminus with the license

Expiration        – birthdate of the license

For Salespersons:

Duration          – yearly

Expiration        – every end of the year

Bond                – exempted

Who are exempted in the acts constituting the practice of real estate service? APRECOT (They can sell real estate properties even without the required license for brokers)

  1. Attorney in fact
  2. Public official in the performance of their duties
  3. Receiver, or assignee in bankruptcy or insolvency proceedings
  4. Employees of financial institution
  5. Court order. Any person acting thru court order
  6. Owner of real estate property (not a developer or dealer)
  7. Trustee

What does SEC. 30 of RESA Law says with regards to positions in government requiring the services of registered and licensed real estate service practitioners?

Within three (3) years from the effectivity of R.A. No. 9646, all existing and new positions in the national and local government, whether career, permanent, temporary or contractual, primarily requiring the service of any real estate service practitioner, shall be filled only by registered and licensed real estate service practitioners.

All incumbent assessors holding permanent appointments shall continue to perform their functions without need for re-appointment and without diminution of status, rank and salary grade, and shall enjoy security of tenure.

However, they may not be promoted to a higher position until they meet the qualification requirements of that higher position as herein prescribed. Nothing in R.A. No. 9646 and the IRR shall be construed to reduce any benefit, interest, or right enjoyed by the incumbents at the time of the enactment of R.A. No. 9646. The appointing authority shall exercise his power to appoint the assessor in accordance with the provisions of R.A. No. 9646 and the IRR only when a vacancy occurs.

How many salespersons can a broker extend his license?

Manimum of 20 or 20 salespersons for every one broker

Minimum educational attainment of salespersons to be qualified?

  • At least 2nd year college or 72 units in college
  • No need of taking an exam
  • No bond needed (they use the broker’s bond)
  • License renewal – every year

Who are required to file bond as additional requirement in licensing?

  • The brokers and appraisers only
  • Consultants are not required
  • Salespersons are also not required

What are the penalties for practicing real estate without license (colorum practice)?

  • If violation is committed by licensed practitioner- P100,000 maximum or 2 years imprisonment or both.
  • If violation is committed by an unlicensed practitioner – P200, 000 maximum or 4 years imprisonment or both.


Read the full text here: Real Estate Service Act of the Philippines: IRR of R.A. No. 9646

Ready to take the exam? click here for Tips on How to Pass the Real Estate Licensure Exam

Related Post

Leave a comment

Your email address will not be published. Required fields are marked *