Everything You Need to Know About the RESA Law in the Philippines

Understanding the Real Estate Service Act or Republic Act No. 9646

Buying a house in the Philippines involves a huge budget, so homebuyers should practice due diligence when transacting with property sellers or developers. Good thing the government is taking active measures to combat illegal transactions through the creation of the Real Estate Service Act of the Philippines. In this short guide, you will learn what the RESA law is all about and its implications to the real estate profession in the country.

What Is the Real Estate Service Act or RA 9646?

The Real Estate Service Act of the Philippines, or RESA Law in short, was created to regulate the real estate profession in the country and ensure that all practicing real estate professionals are duly licensed. Under Republic Act No. 9646, the rights of real estate professionals are protected. The RESA Law covers all acts pertaining to real estate services as well as the penalties incurred for committing such violations.
Moreover, this law also specifies the qualifications of any individual practicing the profession. The objective is to prevent malpractices, including those freelance illegal property sellers and colorum agents. Meanwhile, even before the creation of the RESA Law, real estate brokers applied for license with the Department of Trade and Industry. Now, the agency that regulates real estate professionals is the Professional Regulation Commission where applicants will take the Real Estate Broker Licensure Examination to become eligible.

Who Are Real Estate Service Practitioners?

Under RA No. 9646 - Section 27, a person is considered engaging in the practice of real estate service when any single transaction or act in the provisions is performed, such as selling a property. Hence, real estate service practitioners include real estate consultants, real estate assessors, real estate appraisers, real estate salespersons, and real estate brokers.
In case RA 9646 has been violated by any of these considered real estate service practitioners, penalties will be given. For instance, guilty licensed real estate professionals will be fined with not less than PHP 100,000 or two years of imprisonment. Unlicensed offenders, on the other hand, will incur double penalty of PHP 200,000 fine or four years of imprisonment.
Those who are exempted from this law are real property owners, trustees under insolvency proceedings or bankruptcy, duly constituted attorneys or persons acting under court orders, and public officers performing such acts as part of their duties.

Final Thoughts

With the combined efforts of the government and concerned agencies, the Philippines is yet to witness a real estate industry that is free from illegal practices and unfair systems. Filipino homebuyers and investors deserve honest and transparent treatment from real estate service professionals, especially from licensed brokers. As the leading brokerage company in Baguio, REALS.PH is committed to providing excellent service to property owners, buyers, and sellers. Visit our page for our latest listings of houses for sale in Baguio City and other emerging prime locations in the country.