PROHIBITIONS & PENALTIES

🔹 Illegal Practices & Consequences Under RESA 9646

📌 Understanding Prohibitions in Real Estate Practice

Real estate professionals are required to operate within the legal framework of RESA 9646. Any violation of this law can result in serious penalties, including fines, imprisonment, or license revocation.

📢 Who Can Legally Engage in Real Estate Practice?
✔ Licensed Real Estate Brokers, Appraisers, and Consultants
✔ Accredited Real Estate Salespersons (Must work under a licensed broker)

❌ Who Cannot Practice?
🚫 Unlicensed individuals or those falsely claiming to be brokers or appraisers
🚫 Businesses engaging in real estate transactions without proper registration
🚫 Government employees acting as brokers or agents while in office

📌 Illegal Practices Under RESA 9646

🚨 Unauthorized Practice of Real Estate Service

  • No one can act as a broker, appraiser, or consultant without a valid PRC license.
  • Salespersons cannot operate independently—they must be under a licensed broker.

🚨 Misrepresentation & Fraudulent Transactions

  • Providing false information about a property (e.g., fake titles, incorrect property details)
  • Misleading advertising or withholding material facts from clients

🚨 Unethical Commission Practices

  • Real estate salespersons cannot receive commissions directly from clients—only from their supervising broker.
  • Brokers must not engage in commission-sharing with unlicensed agents.

🚨 False Advertising & Unverified Listings

  • Publishing misleading or inaccurate property details in advertisements
  • Using another broker’s listings without consent

🚨 Corporate Violations

  • Real estate firms must be registered and employ only licensed professionals.
  • At least one licensed broker is required for every 20 salespersons in a company.

🚨 Engaging in One-Time, Big-Time Deals at the Expense of Ethical Practices

  • Prioritizing profit over ethical client service
  • Encouraging buyers or sellers into unfair agreements for personal gain

📌 Penalties for Violating RESA 9646

📑 Fine & Imprisonment
⚖ Illegal real estate practice – Fine of at least ₱100,000 or 2 years imprisonment, or both.
⚖ If committed by an unlicensed person – Double the fine and imprisonment duration.

📑 License Suspension or Revocation
❌ Practitioners found guilty of unethical or illegal activities may face:

  • Suspension of their PRC license
  • Permanent revocation of their real estate license

📑 Corporate Liability

  • If a company violates RESA 9646, its owners, directors, or managers will be held responsible.
  • The SEC may suspend or revoke the company's business registration.

📑 Foreign Real Estate Practitioners

  • Foreigners cannot practice real estate in the Philippines unless their country allows Filipinos to practice real estate there.

📌 Best Practices to Stay Compliant

✅ Ensure Proper Licensing – Always verify that brokers, appraisers, and consultants have active PRC licenses.
✅ Work with Accredited Salespersons – Brokers must only employ registered salespersons.
✅ Verify Property Documents – Double-check titles, contracts, and legal papers before transactions.
✅ Follow Ethical Advertising Standards – Only promote listings that are accurate and truthful.
✅ Report Illegal Practices – If you see unauthorized brokers or fraudulent deals, report them to PRBRES or PRC.