Press Release
February 25, 2009

Senate approves proposed Real Estate Service Act on third reading

With eighteen senators voting in favor, none against and no abstention, Senate approved on third reading last Monday, Senate Bill No. 2963 or the proposed Real Estate Service Act (RESA), which aims to professionalize the real estate industry, Senate President Juan Ponce Enrile said.

"Once enacted into law, the RESA Bill will increase the contribution of the real estate industry to the economic progress and stability in the country by professionalizing its practitioners," Enrile said.

The bill's complete title is "An Act Regulating the Practice of Real Estate Service in the Philippines, Creating for the Purpose a Professional Regulatory Board of Real Estate Service, Appropriating Funds therefor and for other Purposes".

Enrile explained the bill will establish an effective regulatory regime for the real estate service through the creation of Professional Board of Real Estate Service Board (PRESB) composed of highly respected practitioners. The PRESB will be under the Professional Regulation Commission (PRC). The board will then be mandated to come up with measures that will professionalize the careers involved in the real estate industry.

Under the bill, Enrile explained, agents will be required to take licensure examination before becoming real estate brokers, real estate appraisers or real estate consultants.

Sen. Panfilo Lacson, one of the principal authors of the bills, said the measure seeks to form a pool of competent, disciplined and highly respected real estate service practitioners who can help stimulate the development of the country's real estate industry.

During one of the public hearings on the bill, Philippine Association of Realtors Board (PAREB) national president Bobby Sy said the real estate industry contributes only roughly 6.6 percent to the national income, which is way below the 50 percent potential contribution.

Lacson said the creation of a professionalized corps of real estate practitioners will contribute in boosting revenue generation for the government on real property transactions, developing more confidence in the government valuation system, encouraging investment in the real property market, stimulating greater economic activity and generating more funds for poverty alleviation programs.

The other authors of the bill are Senators Miriam Defensor Santiago, Rodolfo Biazon and Antonio Trillanes IV.

News Latest News Feed