REPUBLIC OF THE PHILIPPINES

Ministry of Trade and Industry

BUREAU OF DOMESTIC TRADE
Makati, Metro Manila

MINISTRY ORDER NO. 39

Series of 1985
(As amended by DO No. 22, S. of 1987,
DAO No. 2, S. of 1988 and DAO No. 6, S. of 1994)

SUBJECT : RULES AND REGULATIONS GOVERNING THE LICENSING AND SUPERVISION OF REAL
ESTATE SALESMEN, BROKERS, APPRAISERS AND CONSULTANTS AND REALTY
SERVICE ORGANIZATIONS

Pursuant to Section 79 (B) of the Administrative Code and Section 3 (e) and (ee) of Act No. 2728, as amended
by Act Nos. 3715 and 3969 as well as Executive Order No. 913, the following Rules and Regulations governing
the licensing and supervision of real estate salesmen, brokers, appraisers, consultants and realty service
organizations are hereby promulgated for the information, guidance and compliance of all concerned.

ARTICLE I – STATEMENT OF POLICY

SECTION 1 - The primary purposes of the Administrative Order are (1) to protect the public from
dishonest or incompetent salesmen, brokers, appraisers and consultants; (2) to prescribe standards and
qualifications for these realty service practitioners; (3) to maintain high standards in real estate profession; and
(4) to protect licensed real estate salesmen, brokers, appraisers and consultants from unfair or improper
competition.

ARTICLE II – SCOPE AND IMPLEMENTING AUTHORITY

SECTION 1 – The Director of Trade Regulation and Consumer Protection (hereinafter known as the
Director) shall qualify, approve, license, supervise, suspend and revoke the license of real estate salesmen,
brokers, appraisers and consultants. He shall also qualify, register, recognize, supervise and withdraw or revoke
certificates of recognition issued to associations of REALTY SERVICE PRACTITIONERS and the national
federation of such organizations and to accredit seminars FOR REALTY SERVICE PRACTICE. (As amended
by DAO No. 2 and DAO No. 6)

SECTION 2 – CRITERIA FOR ACCREDITATION OF SEMINARS FOR REALTY SERVICE

PRACTICE. THE DIRECTOR SHALL ACCREDIT COMPREHENSIVE REAL ESTATE SEMINARS
INTENDED TO PREPARE EXAMINEES FOR LICENSING AS REAL ESTATE BROKER, APPRAISER, OR
CONSULTANT PROVIDED THAT SAID SEMINARS SHALL A) BE CONDUCTED BY A SINGLE
PROPRIETORSHIP, PARTNERSHIP OR CORPORATION DULY REGISTERED WITH THE DEPARTMENT
OF TRADE AND INDUSTRY WHOSE PRINCIPAL PURPOSE IS REAL ESTATE EDUCATION, OR ANY
REAL ESTATE ASSOCIATION WHICH IS AFFILIATED WITH ANY MEMBER OF THE REALTY SERVICE
COUNCIL; B) CONSIST OF AT LEAST 24 LECTURE HOURS; AND C) COVER THE SUBJECTS
PRESCRIBED IN SECTION 1 ARTICLE 6 OF THIS ADMINISTRATIVE ORDER AND THE
CORRESPONDING SYLLABUS FOR EACH SUBJECT AS APPROVED BY THE BTRCP.

THE ACCREDITATION SHALL REMAIN IN FULL FORCE AND EFFECT FOR ALL SEMINARS
CONDUCTED SUBSEQUENT TO SAID ACCREDITATION UNLESS REVOKED BY THE DIRECTOR
UPON PROOF THAT ANY SINGLE CLASS OF THE SEMINAR HAS DEVIATED OR FAILED TO COMPLY
WITH THE REQUIRED CRITERIA FOR ACCREDITATION. (As amended by DAO No. 6)

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 ARTICLE III – DEFINITIONS

SECTION 1 – REAL ESTATE herein is defined as the land and/or building or other improvements
permanently attached or annexed to land including the rights and interests thereon and includes rural, suburban,
and urban land and the development thereof such as residential, commercial, industrial, institutional, agricultural,
aquacultural or combinations of such rights and interest, resorts, land reclamation, building, or housing projects
either for individual or condominium ownership, memorial parks, townhouses, club houses and others of similar
nature.

SECTION 2 – A REAL ESTATE SALESMAN is a natural person who performs for and in behalf of a
real estate broker under whom he is licensed, any of the functions of a real estate broker, for or in expectation
of a share in the commission, fee, compensation or other valuable consideration.

SECTION 3 – A REAL ESTATE BROKER is any person, natural or juridical, who is an agent of another
person and for or in expectation of a fee, commission or other valuable consideration, shall perform any of the
following acts : offers, advertises, solicits, lists, promotes, mediates, negotiates or effects the meeting of the
minds on the sale, purchase, exchange, mortgage or lease of, or joint venture or other transactions in real
estate or any interest therein.

SECTION 4 – A REAL ESTATE APPRAISER is a natural or juridical person who, for or in expectation
of a fee, compensation or other valuable consideration, offers or renders services in estimating and arriving at
an opinion of, or act as an expert on real estate values.

SECTION 5 – A REAL ESTATE CONSULTANT is a natural or juridical person who, for or in

expectation of a fee, compensation or other valuable consideration, offers or renders professional advice and
judgment on : (1) the acquisition, preservation, utilization, or disposition of land or improvements thereon, or
valuable rights existing or to be created thereon; (2) the conception, planning and development of realty projects
which may or otherwise encumber units like subdivision lots, condominium units, market stalls, memorial parks,
and the like.

SECTION 6 – Realty Service Practitioner is hereby defined to include real estate salesman, real estate
broker, real estate appraiser and real estate consultant. (As amended by DAO No. 6)

ARTICLE IV – ACTS CONSTITUTING REAL ESTATE SERVICE PRACTICE

AND ITS EXCEPTIONS

SECTION 1 – Act constituting Real Estate Service Practice. Any single act or transaction embraced
within the definitions contained in Article III, Sections 2 to 5 hereof, shall constitute an act of engaging in the real
estate service practice.

SECTION 2 – Exceptions – The provisions of these rules and regulations shall not apply to the following
persons:

1. Any person, natural or juridical, who shall directly perform by himself the acts mentioned in Article III,
Section 2 to 5 hereof with reference to his or its own property.

PROVIDED, THAT HIS EXCEPTION SHALL NOT BE APPLICABLE TO THOSE PERSONS

SELLING HIS OR ITS OWN PROPERTY FOR BUSINESS PURPOSES (E.G. DEVELOPERS). (As
amended by DAO No. 6)

2. An receiver, trustee or assignee in bankruptcy or insolvency proceedings;

2. Any person acting pursuant to the order of any court of justice;

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 2. Public officers while performing their official duties;

2. Any person who is duly constituted attorney-in-fact for purposes of sale, mortgage, lease or exchange or
other similar contracts of real estate;

2. Any person who are duly authorized officials and employees of banks, insurance companies, savings and
loan associations or other financial institutions with respect to the disposition and sale of its foreclosed
or acquired assets.

ARTICLE V – LICENSING REQUIREMENTS

SECTION 1 – License Required to Practice. No person shall directly or indirectly engage in the real
estate service, practice, or represent himself as a real estate salesman, broker, appraiser or consultant without
having first secured the corresponding license from the Director in accordance with these rules.

All branch offices of every real estate broker, appraiser or consultant must be manned by a duly
licensed real estate broker, or consultant as the case may be and must be registered as such with the Bureau of
Domestic Trade (hereinafter known as the Bureau).

The Bureau shall maintain a register of salesman, brokers, appraisers, consultants and realty service
organizations which shall be updated every year. The register shall be open to the public for inspection during
office hours.

SECTION 2 – Juridical Person in Realty Service Practice. No partnership or corporation shall engage
as a realty service practitioner unless it is duly licensed by the Director. All persons authorized to act for and in
behalf of the partnership or corporation as a realty service practitioner shall be duly licensed realty service
practitioners. The partnership or corporation shall submit a list of its representatives licensed as a realty service
practitioner upon the filing of its application by the natural person.

SECTION 3 – Application for License. Any natural person who is duly qualified, may apply for license
as real estate salesman, broker, appraiser or consultant on forms duly prescribed for the purpose.

SECTION 4 – Qualifications of Applicant. – Any natural person who applies for a license to engage as
real estate salesman, broker, appraiser or consultant must at the same time of filing his application, also
establish to the satisfaction of the Director that :
1. He is at least 21 years old;
2. He is honest, truthful and of good moral character;
3. He has not been convicted of any offense involving moral turpitude. As proof, he shall submit to the
Director his clearance either from the Clerk of City or Municipal Court or Regional Trial Court of the
locality where he has resided or held office, for at least one year immediately prior to the date of
application or from the National Bureau of Investigation.

IN THE CASE OF SALESMAN, HE SHALL SUBMIT A RECOMMENDATION OF THE

EMPLOYER BROKER INSTEAD OF THE AFORESAID CLEARANCE.

4. An applicant for a license as salesman must have satisfactorily completed at least HIGH SCHOOL
COURSE OR ITS EQUIVALENT WITHOUT TAKING QUALIFYING EXAMINATION.

4. If he is an applicant for a license for a real estate broker, he must have satisfactorily completed at least
one hundred forty-four units of college undergraduate study or must have finished seventy-two units in
college provided he has been a licensed salesman for a period of four years and duly recommended by a
licensed broker. He must have passed a real estate broker’s examination given by the Bureau and has or
will be able to establish an office with facilities necessary to satisfactorily render the services expected of

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 a broker.

6. If he is an applicant for license as real estate appraiser, he must have at least five (5) years experience
as licensed real estate broker OR FIVE (5) YEARS EXPERIENCE AS APPRAISER IN ANY
GOVERNMENT AGENCY, BANKING/FINANCIAL INSTITUTION OF ANY COMPANY INVOLVED IN
APPRAISAL OF REAL ESTATE PROPERTIES, DULY CERTIFIED UNDER OATH BY HIS
EMPLOYER OR HEAD OF THE AGENCY PROVIDED HE/SHE HAS SATISFACTORILY
COMPLETED A FOUR (4) YEAR BACCALAUREATE DEGREE and must have passed a real estate
appraisers examination given by the Bureau.

7. In case of a real estate consultant, the applicant must have at least ten (10) years experience as a
licensed real estate broker or five (5) years as a real estate appraiser and passed a real estate
consultants examination given by the Bureau.
(As amended by DO No. 22, DAO No. 2 and DAO No. 6)

ARTICLE VI – QUALIFYING EXAMINATION

SECTION 1 – SUBJECT. AN EXAMINATION SHALL BE GIVEN FOR APPLICANTS FOR LICENSE AS

REAL ESTATE BROKERS AND APPRAISERS WHICH SHALL INCLUDE THE FOLLOWING SUBJECTS:

A) FOR REAL ESTATE BROKERS -

FUNDAMENTALS OF PROPERTY OWNERSHIP; LEGAL REQUIREMENTS FOR REAL ESTATE

PRACTICE; REAL ESTATE BROKERAGE PRACTICE; SUBDIVISION DEVELOPMENT;
CONDOMINIUM CONCEPT; REAL ESTATE FINANCING, TAXATION, ECONOMICS; BASIC
PRINCIPLES OF ECOLOGY, URBAN AND RURAL LAND USE, PLANNING, DEVELOPMENT AND
ZONING; LEGAL ASPECT OF SALE, MORTGAGE, LEASE; DOCUMENTATION AND
REGISTRATION.

B) FOR REAL ESTATE APPRAISERS –

GENERAL REAL ESTATE INFORMATION; THEORIES AND PRINCIPLES IN APPRAISAL; LAWS

AFFECTING REAL ESTATE APPRAISAL; HUMAN AND PHYSICAL GEOGRAPHY;
METHODOLOGY OF APPRAISAL APPROACHES AND RESEARCHES; PRACTICAL APPRAISAL
MATHEMATICS; APPRAISAL REPORT WRITING; INCOME AND INVESTMENT PROBLEMS;
APPRAISAL OF MACHINERIES AND EQUIPMENT; CASE STUDIES.

C) A QUALIFYING EXAMINATION, WRITTEN OR ORAL, SHALL BE GIVEN FOR APPLICANTS FOR

LICENSE AS REAL ESTATE CONSULTANTS. APPLICANTS SHALL BE REQUIRED TO PREPARE A
THESIS, PROJECT FEASIBILITY STUDIES OR CASE STUDIES THAT WILL SHOW PROOF THAT
SAID APPLICANT CAN PROVIDE PROFESSIONAL ADVISE OR JUDGMENT ON THE
ACQUISITION, PRESENTATION, UTILIZATION OR DISPOSITION OF LANDS OR IMPROVEMENTS
THEREON, OR VALUABLE RIGHTS EXISTING OR TO BE CREATED THEREON. THE
CONCEPTION, PLANNING AND DEVELOPMENT OF REALTY PROJECTS WHICH MAY OR
OTHERWISE ENCUMBER UNITS LIKE SUBDIVISION LOTS, CONDOMINIUM UNITS, MARKET
STALLS, MEMORIAL PARKS AND THE LIKE.

D) THE PROVISIONS OF THESE RULES AND REGULATIONS AND THE CODE OF ETHICS OF REALTY
SERVICE
PRACTICE APPROVED BY THE SECRETARY OF TRADE AND INDUSTRY.

E) And such other subjects as the Director may deem proper and necessary to be included. (As amended by
DAO No. 6)

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 Section 2 – APPLICATION FOR EXAMINATION. APPLICANTS FOR EXAMINATION FOR REAL
ESTATE BROKERS, APPRAISERS AND CONSULTANTS MAY APPLY WITH THE DEPARTMENT ON
FORMS DULY PRESCRIBED FOR THE PURPOSE. APPLICANTS SHALL POSSESS THE EDUCATIONAL
AND/OR EXPERIENCE REQUIREMENT PROVIDED FOR UNDER THE RULES, AT THE TIME OF FILING
OF THE APPLICATION. (As amended by DAO No. 6)

SECTION 2 – Examination Committee. There shall be three (3) examination committees, one each for
real estate brokers, appraisers and consultants. The Committee for real estate brokers and appraisers shall be
composed of FOUR (4) MEMBERS EACH. The Director shall appoint one (1) representative from the Bureau
who will be member of both committees and THREE (3) each for both committees to be recommended by the
President of the national organizations of real estate brokers, appraisers and consultants respectively. Each
member shall serve for at least two (2) years unless sooner removed for cause.

IN THE CASE OF THE COMMITTEE FOR THE CONSULTANTS, IT SHALL BE COMPOSED OF

FIVE (5) MEMBERS, ONE FROM THE BUREAU OF DOMESTIC TRADE AND FOUR (4) MEMBERS TO
BE RECOMMENDED BY THE PRESIDENT OF THE NATIONAL ORGANIZATION OF CONSULTANTS.

The members of the aforementioned Committees shall serve for two (2) years unless sooner
terminated by the Director or any other higher authority. The representatives of the National Organizations of
real estate brokers, appraisers and consultants shall be entitled to an honorarium of Five Hundred (P500.00)
Pesos each for every examination conducted by each Committee but not the representative of the BDT. In
case the examination is held outside Metro Manila, the representative of the BDT shall be entitled to
transportation expenses and per diems but not the representatives of the National Organizations.

The representatives of the National Organizations in the aforesaid Committees must have at least ten
(10) years of exemplary experience as licensed real estate brokers for the Committee for brokers, five years as
licensed real estate appraisers for the Committee for appraisers and five years as licensed real estate
consultant for the Committee for consultants.

These Committees shall conduct the examination under the direction and supervision of the Director
who shall provide the facilities for said examination. (As Amended by DO No. 22 and DAO No. 6)

ARTICLE VII – DURATION, RENEWAL AND TERMINATION OF LICENSE

SECTION 1 – Duration of License. All licenses FOR REAL ESTATE BROKERS shall expire on
December 31st of each year.

IN CASE OF REAL ESTATE APPRAISERS AND CONSULTANTS, THE DURATION OF THE LICENSE
SHALL BE FOR A PERIOD OF THREE (3) YEARS PROVIDED THAT THE LICENSE FEES FOR THE
THREE-YEAR PERIOD SHALL BE PAID IN FULL UPON ISSUANCE OF THE LICENSE. (As amended by
DAO No. 6)

SECTION 2 – License Number. A permanent license number shall be assigned to each broker, whether
natural or juridical, appraiser and consultant by the Director which number shall be indicated in letterheads, dry
seals, signboards, advertisements and other public announcements. In the case of a salesman, the license
number of the broker under whom he is licensed shall be indicated.

SECTION 3 – Renewal of License. Licenses may be renewed within thirty (30) days after its expiry date
upon application in the form duly prescribed by the Bureau.

If the licensee renews the Certificate after thirty (30) days but within the year of renewal, he must pay a
surcharge of fifty percent (50%) of the basic fee in addition to the license fee.

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 If he renews his license after one or more years, he shall pay the basic license fee for all the years he
was not licensed plus fifty percent (50%) surcharge on the total basic fee. (As amended by DAO No. 6)

SECTION 3.1 – CONTINUING EDUCATION. ANY PERSON WHO PASSED THE EXAMINATION
GIVEN THE BY THE BUREAU BUT FAILS TO SECURE A LICENSE WITHIN TWO (2) YEARS FROM THE
DATE OF PASSING THE EXAMINATION OR WHO FAILS TO RENEW HIS/HE LICENSE FOR THREE (3)
CONSECUTIVE YEARS SHALL BE REQUIRED TO SUBMIT A CERTIFICATION FROM A SINGLE
PROPRIETORSHIP, PARTNERSHIP OR CORPORATION AND DULY REGISTERED WITH THE
DEPARTMENT OF TRADE AND INDUSTRY WHOSE PRINCIPAL PURPOSE IS REAL ESTATE
EDUCATION OR ANY REAL ESTATE ASSOCIATION WHICH IS AFFILIATED WITH ANY MEMBER OF
THE REALTY SERVICE COUNCIL, THAT HE HAS COMPLETED A TOTAL OF TWENTY (20) HOURS
BEFORE HIS LICENSE CAN BE ISSUED OR RENEWED.

REALTY SERVICE PRACTITIONERS SHALL BE REQUIRED EVERY THREE (3) YEARS TO SUBMIT A
CERTIFICATION FROM A SINGLE PROPRIETORSHIP, PARTNERSHIP OR CORPORATION AND DULY
REGISTERED WITH THE DEPARTMENT OF TRADE AND INDUSTRY WHOSE PRINCIPAL PURPOSE IS
REAL ESTATE EDUCATION OR ANY REAL ESTATE ASSOCIATION WHICH IS AFFILIATED WITH ANY
MEMBER OF THE REALTY SERVICE COUNCIL, THAT HE HAS COMPLETED A TOTAL OF 16 HOURS.
FAILURE TO SUBMIT THE CERTIFICATION SHALL MEAN NON-ISSUANCE OR NON-RENEWAL OF
THE LICENSE. (As amended by DAO No. 6)

SECTION 4 – Custody of Salesman’s License Termination of Employment. The real estate salesman’s
license certificate must be delivered to, and displayed at the Offices of his principal broker. If for any cause
whatsoever the services of the salesman shall be terminated, this fact, and the reasons therefore must be
transmitted to the Director and the salesman’s license surrendered for cancellation by his principal broker within
fifteen (15) days from the date his services are terminated.

It is understood that the broker shall be liable for the acts of the salesman until the receipt of notice of
termination by the Director.

ARTICLE VIII – BOND AND LICENSE FEE

SECTION 1 - Bond. Before the license of real estate broker is granted, the applicant shall submit to the
Director a good and sufficient bond in the amount of Five Thousand Pesos (5,000.00) payable to the Republic
of the Philippines. It may either be a cash bond, surety bond issued by a duly licensed surety company, bonds
of the Republic of the Philippines, or bond secured by a real estate mortgage. In case of bonds issued by
surety companies, the bond shall provide that it shall remain in full force and effect until cancelled or released by
the Director or superceded by another bond which shall assume any and all obligations of the previous bond.
Said bond shall be conditioned upon the faithful and honest discharge by the applicant, as well as the real estate
salesperson working under him, of their duties and shall further provide that upon failure to discharge these
duties, the applicant shall be liable on the bond to any and all persons who may suffer loss by reason of such
failure.

SECTION 2 – Cancellation or Release of Bond. When a licensee desires to have his bond cancelled or
released other than for purposes of substituting with another bond, he must comply with the following
requirements.

1. Apply in writing and under oath to the Director for the release and cancellation of his bond and state
among other things that there is no pending claim or obligation against him from his client or person with
whom he has real estate transactions;

2. Publish a notice in a newspaper of general circulation in the locality where his principal office is located
stating among other things that he has applied to the Director for the release and cancellation of his bond.

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 3. The notice shall further state, that any person having any claim for money or property against him in his
realty service practice must file his claim with the Director within thirty (30) days from the date of
publication.

4. Submit proof of publication; and

5. Surrender his license certificate.

SECTION 3 – CERTIFICATION IN LIEU OF BOND REQUIRED FOR THE AFOREMENTIONED

SECTIONS, THE APPLICANT MAY OPT TO SECURE A CERTIFICATION FROM A RECOGNIZED REAL
ESTATE ASSOCIATION THAT IT GUARANTEES THE FAITHFUL AND HONEST DISCHARGE BY THE
APPLICANT, AS WELL AS THE REAL ESTATE SALESPERSON WORKING UNDER HIM, OF THEIR
DUTIES AND SHALL BE LIABLE TO ANY AND ALL PERSONS WHO MAY SUFFER LOSS BY REASON
OF SUCH FAILURE UP TO THE AMOUNT OF FIVE THOUSAND PESOS.
(As amended by DAO No. 6)

ARTICLE IX – SUSPENSION AND REVOCATION

SECTION 1 – Grounds for Suspension and Revocation. The Director, may motu propio or upon
verified complaint in writing by any person, investigate the act complained of against any real estate salesman,
broker, appraiser or consultant; provided that if the acts or transactions complained of involve subdivisions or
condominium projects, the Director shall promptly endorse the matter to the Human Settlements Regulatory
Commission.

The Director may, after due notice and hearing, suspend or revoke the license for such period as he
may deem proper, when the licensee is found guilty of the following acts :

A. RELATION TO THE GOVERNMENT

1. Procuring license thru fraud, deceit or false statement of facts which otherwise could have disqualified the
applicant;
2. Splitting or offering or agreeing to pay, split or rebate any commission, fee or valuable consideration,
directly or indirectly, with any party who is not a duly licensed real estate broker or salesman licensed
under him, cooperating, assisting in or endorsing a transaction or engagement of his services, for a
salesman; sharing his commission or fee with anyone other than the broker under whom he is licensed.
3. Failure to indicate his license number in his letterhead, dry seal, signboard, advertisement or other public
announcement;
4. Any act or conduct that may demonstrate incompetence, untrustworthiness, dishonesty, fraudulent or
improper dealings;
5. Disregard or violation of the law and the rules and regulations.

B. RELATION TO PUBLIC

1. Making any false or deceitful promise in advertisements, brochures or billboards, or other similar
announcements;
2. Procuring or helping to procure consent to or affecting closing or consummation of any real estate
transaction or engagement of his services by means of fraud, deceit, intimidation, violence or immoral
offering;
3. Failure to account for or remit within fifteen (15) days from receipt or possession of any money
belonging to the client unless a different period is expressly agreed between the realty service practitioner
and his client.
4. Failure to treat as trust account, the money or other funds of his principal or client;
5. Conviction of crime for unlawful conversion of any person’s fund or property;
6. Negligence or failure to disclose or ascertain to any person with whom licensee is dealing any material

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 fact, data or information relating to the property and within the knowledge of the licensee at the time of
the transaction.
7. Any licensee who attempts or perform acts to sell property or advertises or places a “FOR SALE” sign
on the property of which he is not authorized by the owner or holder of authority to sell or on which the
authority to sell has expired.
8. Allowing a conflict or interest to arise between the licensee and his client under the following
circumstances:

a. The real estate broker or salesman who fails to disclose to the buyer that the property he is
offering for sale is owned by him or by his relatives within the fourth civil degree or by a
partnership or corporation in which he or his relatives within the same degree have at least
20% proprietary interest.

b. The real estate broker or salesman who fails to disclose to the seller that the real estate
broker or salesman is buying or interested in buying property for himself or for his relatives
within the fourth civil degree or for the partnership or corporation where he or his
relatives within the same degree have at least 20% proprietary interest.

c. The real estate appraiser or consultant who accepts an assignment to appraise or to

render an opinion of value and fails to disclose at the outset or in the appraisal or
consultancy report the he or his relatives within the fourth civil degree or the partnership or
corporation where he or his relative within the same degree have at least 20% of
proprietary interest, has an interest on said property;

d. The real estate appraiser or consultant who accepts the assignment to appraise or render
advice on a property, contingent upon the reporting of predetermined amount of value or
predetermined findings or recommendation to be made.

C. RELATION TO CO-BROKER

1. Inducing any party to a real estate transaction to breach his contract for the purpose of substituting in lieu
thereof a new contract where such substitution is likely to benefit or enhance the interest of the licensee.

D. RELATION TO HIS BOARD

1. Representing himself as a REALTOR unless he is a member in good standing of the association of real
estate brokers that has the exclusive right to use the patented designation REALTOR.

2. Using a logo, badge, name or insignia of membership in any real estate organization of which the
licensee is not a member.

E. OTHER SIMILAR UNSOUND REAL ESTATE BUSINESS PRACTICES

SECTION 2 – Effect of Suspension or Revocation of License. The suspension or revocation of a real

estate broker’s license shall operate to suspend the license of all real estate salesmen in the employ of such
broker, pending a change of employer and the issuance of a new license to the salesman. The real estate
salesman’s license may be issued under another broker for the unexpired period if applied for.

Revocation or suspension of license does not relieve the erring salesman, broker, appraiser or
consultant from any civil or criminal liability arising from the same acts.

SECTION 3 – Ineligibility for Re-License in Case of Revocation. A real estate service practitioner

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 whose license is revoked by the Director for cause as provided in Section 1, Article IX shall be disqualified to
obtain another or renewed license.

SECTION 4 - Reinstatement of License. A license surrendered to the Director for any cause other than
for any grounds for suspension and revocation, may be reinstated for the unexpired term, upon application
thereof, without the payment of any additional fee.

ARTICLE X – LICENSE CERTIFICATE – POCKET CARDS, ETC.

SECTION 1 – Issuance of License Certificate and Card. Upon payment of the fees required under
Article VIII, Section 3 (a, b & c) of these Rules and Regulations, the Director shall issue to the qualified
applicant a license certificate as a real estate salesman, broker, appraiser, or consultant with a permanent
license number as specified under Article VII, Section 2 of these Rules and Regulations.

In addition to the license certificate, the Director shall issue to such licensee a pocket card certifying that
the person whose name, signature, thumbmark, date and place of birth, address and picture appearing therein is
a duly licensed real estate salesman, the name and address of the broker-employer shall also appear.

SECTION 2 - Display of License in Place of Business. Every licensed broker, appraiser or consultant
shall establish and maintain a principal place of business and such other branch offices as his business may
require, and shall conspicuously display therein his signboard and his license certificate and licenses of
salesman in his employ, if any. Certified true copies of their respective license certificates shall be displayed in
the branch offices.

SECTION 3 – Realty Service Practitioners Who Are Also Dealers. If the licensee is also a real estate
dealer, he shall include said business designation with the same size and type of letters to his designation as
salesman, broker, appraiser or consultant in the signboard, billboards, brochures, advertisements, public
announcements, letterheads and similar means of communication.

ARTICLE XI – REALTY SERVICE ORGANIZATION

SECTION 1 – Organization. - An association of duly licensed real estate practitioners may be organized in any
first class municipality, city or province by incorporating themselves in accordance with the existing laws of the
Philippines.

SECTION 2 – Purpose. The purpose of the association shall embody the following:

1. To provide facilities to its members as to enable them to adequately serve their clients and the
community;

2. To promote the mutual interest of its members and the community;

3. To set up, upgrade and maintain the standards of a real estate business and realty service practice;

4. To adopt and enforce a Code of Ethics approved and accepted by the Minister of Trade and Industry
upon recommendation of the Director;

5. To establish a uniform schedule of minimum fees, commission or compensation to avoid unfair

competition;

6. To cooperate with the government agencies and entities as well as with other trade organizations as

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 regards adoption of laws, ordinances, regulations and functions involving or affecting real estate.

SECTION 3 – Office. The association shall maintain an office with adequate facilities and personnel
separate from and not connected with the office or any of its officers or members.

SECTION 4 – Annual Report. A copy of the association’s annual report, audited financial statement and
updated roster of members must be furnished the Bureau within ninety (90) days after the end of the fiscal year
of the association.

SECTION 5 – Recognized Boards. The Director may issue a certificate of recognition to only one
association in a first class municipality or city or province as he may deem necessary. Only the association so
recognized and affiliated with recognized national federation shall be authorized to use the term ‘BOARD” as
part of the name of the association.

SECTION 6 – Specialists in Realty Services. The Director may register and recognize association of
specialists in the realty service such as specialists in land subdivision development, property management,
housing condominium and other specialists as may later be created, provided they affiliate themselves with the
recognized national federation.

SECTION 7 – DESIGNATION OF THE REALTY SERVICE COUNCIL OF THE PHILIPPINES AS THE

CONSULTATIVE BODY OF THE DEPARTMENT OF TRADE AND INDUSTRY, PURSUANT TO
DEPARTMENT ORDER NO. 97 SERIES OF 1992, THE REALTY SERVICE COUNCIL OF THE
PHILIPPINES HAS BEEN DESIGNATED AS THE GENERAL CONSULTATIVE BODY OF THE
DEPARTMENT. THE REPRESENTATIVE FROM THE BUREAU OF TRADE REGULATION AND
CONSUMER PROTECTION (BTRCP) TO THE COUNCIL SHALL BE THE CHAIRMAN OF THE COUNCIL.

THE COUNCIL SHALL HAVE THE FOLLOWING FUNCTIONS:

1. TO PROVIDE ADVICE AND/OR RECOMMENDATION TO THE DEPARTMENT OF TRADE AND

INDUSTRY ON ALL MATTERS RELATING/AFFECTING THE REAL ESTATE INDUSTRY, EITHER
ON ITS OWN INITIATIVE OR AT THE REQUEST OF THE DEPARTMENT OF TRADE AND
INDUSTRY OR ANY OF ITS BUREAUS AND AGENCIES OR OTHER GOVERNMENT AGENCIES.

2. TO INITIATE STUDIES, POLICIES, PROGRAMS, PROJECTS AND ACTIVITIES THAT SHALL LEAD
TO THE FURTHER DEVELOPMENT AND PROMOTION OF THE REALTY BUSINESS WHICH MAY
BE IMPLEMENTED BY THE COUNCIL ITSELF AND/OR THE DEPARTMENT OF TRADE AND
INDUSTRY AND ITS BUREAUS AND AGENCIES AND/OR OTHER GOVERNMENT OFFICES SO
THAT THE INTEREST OF THE PUBLIC COULD BEST BE SERVED.

3. TO RECOMMEND THE ACCREDITATION OF SEMINARS FOR REALTY SERVICE PRACTICE.

4. TO ASSIST THE DEPARTMENT IN THE CONDUCT OF THE OATHTAKING OF EXAMINEES WHO

PASSED THE REALTY EXAMINATIONS;

5. TO PERFORM OTHER RELATED ACTIVITIES THAT WILL COMPLEMENT OR SUPPLEMENT

THOSE BEING UNDERTAKEN BY THE GOVERNMENT AGENCIES RELEVANT TO AND FALLING
UNDER THE REALM OF THE REAL ESTATE INDUSTRY;

6. IN ORDER TO EFFECTIVELY IMPLEMENT ITS PROGRAMS, PROJECTS AND ACTIVITIES, THE

COUNCIL IS AUTHORIZED TO COLLECT REASONABLE FEES TO COVER ADMINISTRATIVE
EXPENSES. (As amended by DAO No. 6)

SECTION 7.1 – THE COUNCIL SHALL MEET EVERY THIRD THURSDAY OF THE MONTH. (As
amended by DAO No. 6)

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 SECTION 8 – Code of Ethics. No association of real estate service practitioners or their national
federation shall be eligible for issuance of certificates of recognition unless their members shall abide by the
Code of Ethics promulgated by the Ministry of Trade and Industry upon recommendation of the Director.

SECTION 9 – Conciliation and Arbitration. The realty service associations registered under this Order,
shall provide in their By-laws a fixed set of rules of conciliation and arbitration to settle questions or disputes
between and among the different associations registered under this Order, individual members of said
associations; other licensee under this order their patrons, clients and the general public, which facility shall first
be availed of before elevating their complaints to the Director, the Minister of Trade and Industry or the Court of
Justice.

SECTION 10 – Withdrawal of Recognition. The Director may withdraw a certificate of recognition to

any of the above-mentioned associations if after due notice and hearing, he finds that said association is not
fairly representative of the best elements engaged in the realty services practice or specialization they
represent, or has not satisfactorily pursued or is not pursuing the objectives of the organization or when the
association does not or no longer serve public interest.

ARTICLE XII – ADMINISTRATIVE PROCEEDINGS

SECTION 1 – Commencement. All administrative actions involving realty service practice, may be
commenced motu propio by the Director, or by filing of a written complaint under oath with the Bureau by an
aggrieved party specifying among other things the following :

1. A brief statement of facts giving the background and the particular act/s and/or omission/s complained of;

2. Sworn statement/s of witness and/or documentary evidence, if any;

3. The relief prayed for, and preliminary or preventive measures or orders sought;

4. Such other matters of details that shall guide the Director in appraising the nature of the complaint and
extent of the violation/s committed.

SECTION 2 - Preventive Measures. At any time after the commencement of an administrative action
but prior to the resolution thereof, the Director, when so warranted by the circumstances may issue preliminary
and/or preventive order/s such as but not limited to, temporary cease-and-desist order/s, to prevent and/or
restrain the commission of acts, which would probably work injustice to, or prejudice, the rights of the
complainant/s or any other person or entity involved, and/or which may render any action/order or judgment in
the case, ineffectual.

SECTION 3 – Mediation-Conciliation. As soon as the complaint is instituted, the Director shall notify the
party complained of (respondent) to appear before him for purposes of mediating the controversy. The
mediation-conciliation process shall be governed by Ministry Order No. 69 Series of 1983 (Specially Rule IV
thereof), which implements Executive Order No. 913.

SECTION 4 – Answer by Respondent. Should there be a failure to amicably settle the dispute during the
mediation stage, the Director shall immediately require respondent to submit his formal answer to the written
complaint, and thereafter, set the hearing for the formal investigation of the case.

SECTION 5 – Formal Hearing. The formal hearing on the complaint filed shall be conducted in the
manner prescribed under Rule V, Section 35, of Ministry Order No. 69, Series of 1983, which implements
Executive Order No. 913; with the Revised Rules of Court, being made suppletory, when applicable.

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 SECTION 6 – Resolution-Decision. The Director shall resolve the dispute-complaint, after formal
hearing, by rendering a resolution-decision, which when warranted, shall impose one or more of the following
administrative penalties or those enumerated under Section 8 of Executive Order No. 913.

1. Issue a cease and desist order;

2. Forfeiture of the performance bond filed with the Director;

3. Impose administrative fine/s in such amounts as may be reasonable, but in no case to be less that Five
Thousand Pesos (P5,000.00) or more than One Hundred Fifty Thousand Pesos (P150,000.00);

4. Suspension and/or cancellation-revocation of license issued by the Bureau;

5. Such other penalties and/or sanctions which are deemed necessary by the Director to impose, in order to
implement and achieve the aims, purposes, intents, objectives of these Rules and Regulations.

SECTION 7 – Appeal. Final orders and decisions of the Director are appealable to the Minister of
Trade and Industry within fifteen (15) days from receipt of notice thereof.

ARTICLE XIII – FINAL PROVISION

SECTION 1 – Penalties. Any person who act as a salesman, broker, appraiser, or consultant without
the license as require herein or who violates any provisions of these rules and regulations, shall be punished
with a fine of not exceeding Five Hundred Pesos (P500.00) or by imprisonment of not exceeding six months or
both in the discretion of the court.

SECTION 2 – Repealing Clause. Domestic Trade Administrative Order No. 1, Series of 1975 dated
April 2, 1975 is hereby repealed effective upon the approval of this Order.

SECTION 3 – Publication and Effectivity. These rules and regulations shall be published in full text once
in a newspaper of general circulation in the Philippines and shall take effect fifteen (15) days after its
publication.

RECOMMENDED BY:
(SGD.) LILIA B. DE LIMA
Director of Domestic Trade

APPROVED BY:
(SGD.) ROBERTO V. ONGPIN
Minister of Trade and Industry
September 25, 1985
__________________________________________________________________________

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