FAQs About The RESA Law: Learn More About Real Estate Law
If you’re thinking about settling down in a house and lot in Baguio City or other parts of the Philippines, you may be looking for the services of a real estate agent. However, not everyone who tries to sell you land or looks at properties is licensed to practice this profession.
When consulting a real estate agent in Baguio City, you need to make sure that they are qualified and not breaking the RESA Law. This protects you as a buyer and helps regulate practitioners of real estate services. But what is the RESA Law? How does it work?
Keep reading to find out more about the RESA Law to see if you’re working with a reputable real estate agent, assessor, or broker. With this simple info, you’ll be well-prepared when you consult someone for a home or condominium in Baguio City!
What Is The RESA Law?
Aka Republic Act No. 9646, the RESA (Real Estate Service Act) Law was created to protect real estate professionals and prevent freelance illegal practices by “colorum” agents who work to evade paying commissions and taxes.
This law was introduced in 2009, and the PRC (Professional Regulation Commission) is in charge of regulating the profession. To be eligible to practice real estate services, some may need licenses from the PRC depending on the kind of service.
Who are practitioners of real estate services?
According to Section 3 of the law, there are five kinds of practitioners of real estate services. They are:
Consultant offer professional advice on acquiring, enhancing, preserving, utilizing, or disposing of land or any improvements upon it, according to the law. Appraisers perform services related to estimating property value. Assessors are hired by local government units like provinces and cities to assess the value of real property for tax purposes – this includes immovable properties like machinery.
Brokers act as agents – essentially middlemen - for parties negotiating real estate transactions, and they’re involved in things like the sale, mortgage, or lease of a real property. Salespersons act on behalf of a broker to facilitate a transaction.
What Does The Law Prohibit?
The RESA Law prohibits people from practicing or offering to practice real estate service in the Philippines, or give the impression that they are a real estate practitioner or are otherwise qualified without passing the licensure exam given by the Board.
Who Are Exempted?
The following people are exempted from the accreditation, licensure, and registration requirements of the RESA Law: