THE Chamber of Real Estate and Builders’ Association Inc. (Creba) is calling for amendments to key provisions of the Real Estate Service Act to address its negative economic impact on developers and real estate professionals.
Republic Act 9646, more commonly known as the Resa Law, was enacted into law in 2009 to develop “a corps of technically competent, responsible and respected professional real estate service practitioners.”
Charlie A.V. Gorayeb, chairman of Creba, said that while the title and the objectives of the law are clear and specific enough, the subsequent provisions “extend beyond regulation of the real estate service practice.”
He said stressed that “even developers are now being regulated against selling their own projects.”
One of the provisions he was referring to is Section 28 of the Resa law, which states that the provisions of the law and its rules and regulations shall not apply to any person, natural or juridical, who shall directly perform by himself the acts of a real estate service practitioner with reference to his or its own property, “except real estate developers.”
“The prohibition for developers to sell their own properties is counter-productive and puts landowners at a very disadvantageous position,” Gorayeb said.
Another provision is the transfer of the regulation and licensing of real estate brokers, appraisers, assessors and consultants and as well as the registration of agents or salespersons from the Department of Trade and Industry to the Professional Regulation Commission.
Creba national president Noel Toti Cariño assailed what he said were discriminatory scholastic requirements for real estate salespersons before they can get accredited and registered by the Professional Regulatory Board of Real Estate Service (PRB-RES).
He emphasized that the PRC’s standards are “very high” and could deprive a lot of people who wish to make a living through real estate service, especially considering the large number of real estate agents who were earning a decent living from legitimately offering real estate before the Resa law was implemented.
“We will be depriving these poor individuals the chance to partake in the economic benefits of real estate. Many of them have been there working for so long, and then they will be suddenly cut off because they cannot qualify for registration,” said Cariño
Creba suggests that the academic requirements for real estate salespersons should be reduced, provided that they undergo formal training or are certified to possess ample experience by the licensed broker supervising them.
The group also urges the removal of the policy limiting the supervision of only 20 salespersons per licensed broker.
Gorayeb also urged lawmakers to revisit Section 34 of the law which, he said, has sowed division and confusion for many years among stakeholders on the matter of the “accredited and integrated professional organization” and its intended nature.
He cited that this issue must be resolved “to bring unity to the varied sectors of the industry.”
The group also wants a clear statement clarifying that the requirement for real estate brokers to register under the Housing and Land Use Regulatory Board (HLURB) by virtue of Presidential Decree 957 promulgated in 1975, has been superseded by Resa as an effect of the takeover of the PRC on all licensed real estate professionals.