Thursday, August 27, 2009

How to Pass the Philippine Bar Examinations - Full Report by Justice A. Melencio-Herrera

OBSERVATION ON THE 1980 PHILIPPINE BAR EXAMINATIONS – Full report

The following are excerpts from the actual reports of the 1980 Bar Examiners submitted to, and released to the law schools by, Madam Justice Ameurfina Melencio-Hererra, Chairperson of the 1980 Committee on Bar Examinations. I have already made a summary of this report and has posted it in this blog in the post entitled “How to pass the Philippine bar exams.” However I believe that law students and law professors will gain more by reading the full report. Although this report was made more than 27 years ago, the lessons that can be gleaned are timeless and can still very much apply to those who will be taking the Philippine bar exams. This report is also useful for law professors and law schools as this will help us re-evaluate our teaching methods in order to effectively help our students hurdle the hardest exam in the Philippines, the bar exams.

The report starts out with these interesting observations:

1. With a relatively few notable exceptions, I observed a deficiency in the examinees’ ability to express properly and concisely their answer to the questions.

2. Likewise, with a few notable exceptions, the analytic or logical process left much to be desired.

3. Knowledge of the fundamental legal principles was lacking in many instances.

4. Only in a few instances was there a command of the English language.

Recommendation for consideration

1. The elevation of the standards of legal education and instruction, i.e., a more intensive preparation in the legal fundamentals necessary for the assumption of office as a member of the Bar.

2. Require additional courses even in law school proper in the fields of English composition and grammar for those who are deficient in their ability to express and convey their ideas.

Additional recommendation on the grading system

The present grading system tends lo lay stress on competitive performance. And yet, difference in decimal points could be subjective and may not do justice to the competitors, Perhaps, the shift should be towards the assessment of each, individual candidate’s performance. I would categorize the candidates’ performance into just three (3) classes, namely: (1) failure, (2) passing and (3) outstanding without giving any grades in specific figures.

Finally, the unknown identity of the examiners even among themselves (except to the Chairman) until the final submission of the candidate’s performance is to be commended as a meritorious feature in the conduct of Bar examinations and should be adopted as a norm for future examinations. It is obvious that it insulates the examiner from unhealthy representations on the part of interested parties and it should encourage a more respectful attitude towards the Bar examinations.

1. Very many examinees, to put it mildly, “murder” the English language. Some are worse than high school undergraduates.

2. They fail to analyze and understand the question thoroughly, where oftentimes the answer is found or suggested in it.

3. They base their answer not on the specific import or meaning of the question but on the association they believe the question has with a vague knowledge of the legal provision that instantly comes into their minds. The results is an answer given without reflection that obviously misses the point or fails to obtain full credit.

4. There are few examinees who just do not have the mental capacity for the law profession. Taking the examinations for any number of times may only be an exercise in futility.

5. Handwritings of some are difficult to read or “decipher”. Apparently, the examinees concerned do not make any sincere or serious effort to make them readable.

The ink used spreads or the ballpen is too fine or light and blue. Both make correction of the papers an ordeal to the examiner who has to change his correction speed to very slow.

6. Many examinees also need, aside from the English language, a refresher course in logic. They give inconsistent or conflicting positions in one answer and do not know how to analyze problems.

7. Many examinees do not follow instructions. Few give a “Yes” or “No”, making the examiner guess just what they mean in their vague discussion. Others copy the question first before answering. Still others over several pages and making correction difficult, or they write on both sides of the page.

8. Many examinees do not review their answers. Many answers have been found lacking not only several words but important ones as well which spell the difference between correct and wrong answers.

1. Many candidates did not know specific provisions of the Civil Code on Torts and Damages. This may be due to the fact that the subject of Torts and Damages was not given much attention in the basic law course and in the bar review because in the past, this field of law was rarely the subject of the bar questions. And yet, the importance of this branch of civil law cannot be ignored considering that most civil cases filed in our courts involved torts and damages. Our lawyer must, therefore, be more familiar with this important branch of civil law before they are allowed to practice. I respectfully recommend that in future bar examinations torts and damages be listed among the divisions of civil law to be considered in the bar examinations.

2. Many candidates were familiar with cases decided by the Supreme Court and some even mentioned their titles. Unfortunately, however, a good number did not know the fundamental legal principles enunciated in such decisions. Considering that under the civil law system, which is the system followed in the Philippine, the rules of law are found in the codes, unlike the common law where the law is found in the cases, it is evident that a knowledge and understanding of the law as found in the codes is more important than a knowledge of the cases. In actual litigations most cases are resolved by the very law itself and the problem for the lawyer and court lies more in finding the specific law applicable to the case rather than find a decided case on which to base a decision. Therefore, with all due respect, I submit that more emphasis should be given in the bar examinations on the knowledge of the law and the fundamental principles rather on the knowledge of specific cases.

3. I agree that definitions and distinctions, enumerations and memory work should not be the criteria in the bar examinations and that all bar questions be in the form of problems and cases. But may I suggest and recommend that the problems and questions be based on codal provisions and fundamental principles of civil law which law practitioners are likely to face in their practice rather than extra practitioners are likely to face in their practice rather than extra ordinary situations that rarely confront our courts and practitioners.

4. A number of candidates could not write legibly. I found it hard to read their answers and much time was wasted in deciphering what they wanted to say. Bar candidates should be advised to write legibly.

5. Many candidates did not use the proper tenses. Bar candidates should be advice to be more careful with their tenses and try to aim at clarity in their answer.

6. Some candidates do not follow the numbers correlatively in answering the questions. They jump over some numbers and do not indicate where the answer may be found thus making the correction more difficult, confusing and time consuming.

7. Some candidates have resorted to what they called “alternative answer” by discussing both sides of the problem and arriving at opposing conclusions. Considering that most problems in the bar have to sides the appraisal and grading of those “alternative answer become more difficult. In my view this should be avoided.

Except for some exceptions, the ability of the examinees to present their opinions and thoughts on the questions asked was creditable. There were misspelling wrong grammar and a number of omissions but they are acceptable and not glaring, considering the pressure on the examinees and the time constraints.

What is apparent, however, is the general misconception of the principles of taxation in relation to the whole context of taxation, as well as its practical application especially in the light of other applicable laws. Reading the answers, it seems that the approach to taxation is divided into two approaches. One is that taxation is a necessity and, therefore, tax laws must be legal. Second thought is that taxes are burdens on the citizenry and, therefore, must be considered illegal The Method of teaching taxation must have been rather simplistic with no aim to apply the tax laws on our day to day dealings. As this was apparent, the undersigned tended to be more lenient in her corrections of the test papers.

It is observed that using December 31, 1979 as the cut-off date for sourcing the questions is rather restrictive and does not give the examiner sufficient leeway especially in topics where major changes, even on concepts, are effected by the government. Since most of the students will be taking pre-bar review, wouldn’t April or May be a better date? At least questions will be more current.

The procedure by which the test papers were given to us, the checks and counter checks by the bar confidant and others who were participating in the handling of the test papers to maintain the integrity of the bar leaves nothing to be desired. Full cooperation was given by them.

1. The 1980 Examinations, under the strict monitoring and guidance of the Chairman, have succeeded in maintaining the complete confidentiality of the identities of the BAR examiners. This was achieved by the adoption of the following measures:

2. The poor grammar, limited vocabulary, redundancy and unorganized presentation of the issues involved have a caused a telling effect of the percentage of passing in Mercantile Law.

3. The allocation of certain percentages on the number of question given to each subdivision of the bar subject has assured a uniform stress, thereby avoiding the concentration of questions on a particular law or subdivision.

4. Despite the written instructions, a great number of the examinees have repeated verbatim the facts of the case and the question. This has wasted the examiner’s time and effort in correcting the papers.

On November 16, 1980, there were 1,798 bar candidates who took the examination in criminal law, out of this number, 594 successfully passed or 33%, while 1,204 failed, 221 of whom are disqualified for having obtained a grade below 50%.

1. Substandard collegiate or academic training, resulting in the insufficient knowledge of the law and its application; and

2. Inadequate command of the English language.

These observations may be properly shown by quoting answers of a certain examinees to a question thus propounded as follows:

Question No. 6(b) – “An accused was found guilty of double murder and was meted out two sentences of reclusion perpetua. How would be the accused serve the sentences?”

Answer – “Both penalties must be served by the accused, and he was electrocuted and died then it washes out the remaining sentence to served by the accused.”

Quoted hereunder is another question to which the examinees concerned gave his answer as follows:

Question No. 11. – “Patrolman Cruz, acting under orders of the Municipal Mayor, Who wanted to put a stop to the frequent occurrence of robbery in Sitio Masukal, patrolled the place. At about midnight, seeing three persons acting suspiciously in front of an uninhabited house and entering the same, he arrested them without warrant and took them to the municipal building where they were detained in jail for about five hours before they where released.

Patrolman Cruz was accused of arbitrary detention. If you were the Judge, would you convict him of the crime charged?”

Answer – “No. considering his possession as peace officer by the higher authority to patrol the place where robbery are frequent. The one responsible for this is the Municipal Mayor who order without warrant of arrest and the act of the patrolman are in good faith believing to be a robbery entering a house.

So the proper party liable is the Municipal Mayor.”

Most, if not all, who obtained failing grades have different unique ways of answering questions which only tends to show either because of poor scholastic training or lack of preparation not only in their collegiate or academic courses but may also be traceable to their primary and secondary education.

The majority of those who failed in the subject have also manifestly shown their poor command of the English language, such that certain examinees may probably know the law nut they lack the ability to express themselves. The results is that, one will find it very difficult to understand what they really wanted to convey in their answer to the question propounded.

As an example, I hereby refer to the answer of another examinee to question No. 17. herein below quoted as follows:

Question No. 17 – “AA” was the owner of a jeepney for hire. When his driver was hospitalized, he hired “BB” as driver on a temporary basis and entrusted to him the vehicle for transporting passengers from Quiapo to Baclaran with a compensation of P30.00 a day. “BB” never returned the vehicle and after search the vehicle was found in Tarnate, Cavite, About to be sold. “BB” was charged with Qualified Theft and was convicted .

Appealing the judgment of conviction, defense counsel contends that “BB” may have committed Esta fa but not Qualified Theft on the theory that the position of the vehicle was obtained with the consent of “AA” the owner, and therefore, there was no illegal taking.

Decide the case.”

In answer thereto, the particular examinees gave the following answer:

“The defense counsel of the accused contention in untenable assuming now that there is no illegal taking of the jeep from “AA”. The owner but “BB” a temporary driver hired by “AA” failure to return the jeep such vehicle as now ready to be sold by “BB” have an intent to gain is theft cases as an element.

It may not be amiss to state in this connection, that there are also hundreds of them whose penmanship is almost illegible.

Several examinees have made very unsatisfactory showing to such an extent that there is one who obtained a grade as low as 7% another obtained a grade of 11%; still some others obtained grades of 12%; 16%; 17%; 18%; 19%; 20%; 21%; 24%; 25%; 26%; 27%; 31%; 34%; etc.

Due to this very poor showing of a considerable number of examinees, in order to avoid unnecessary waste of time, money and energy and in order to give the students concerned advice to shift to other course before it is too late, it is suggested that before a law student is allowed to enroll in the College of Law proper, he should first pass an entrance examination, to be given under the supervision of the Supreme Court. More or less, the examination to be given should cover the following subjects: (1) Elementary Law; (2) Logic; (3) English and Composition, etc.

It is further suggested that in order to afford bar examinees a better opportunity to pass the given subjects, at least 30 questions should be propounded in each subjects and the examinees allowed to answer a choice of twenty questions.

(1) The candidates should be required to write their answers on every other line, thus leaving a blank space between lines. This will facilitate correction, especially as many scrawl their answers and there is abundance of poor penmanship. Beside, almost all notebooks are less than half-filled so that there will be no problem of pages to write on.

(2) Answer should be separated from one another by at least two space-lines. This will facilitate identification of answer and obviate the review (resulting in time consumed, which could be otherwise invested in further correction) of questions overlooked by the candidate or not answered at all.

(3) Unless there is a very imperative reason for requiring the examiner to date every initial, this should not be required. Too much time is wasted.

(4) A device should be adopted so that the examiner will not have to write on two separate grading sheets. Instead carbonized paper or similar duplicatory means, should be used. This will eliminate errors committed while transposing the grades on the second grading sheet, and more important, it will save time. More than half an hour is consumed every time grades of 25 notebooks are duplicated on the grading sheet (or an average of more than three hours per 200 notebooks) – time which could, instead, be spent correcting notebooks.

It with be noted that no suggestions on “substantive” aspects have been made because the writer believes that she is still not in a position to suggest further development in that respect.

I. Conduct of the Examination

As far as I know there has been no word, whether publicly made or circulated in whisper, of any leakage of questions or even merely of the identities of the examiners. The story going around, according to a law faculty member of the UST and lecturer at the U.P. College of law, is that in the Bar examinations there was only one examiner for all the subjects: Justice Herrera herself.

While this rumor may be laced with some humor, it points up nonetheless the successful safeguarding of the integrity of the examination.

II. Showing of the Examinees

In Legal Ethics and Practical Exercise , 620 examinees out of 1,792 applicants (or 34.6%) obtained a grade of 75% or higher. 1,172 failed to make the passing grade; included in this number are 119 applicants whose grades were lower than 50%. Grades ranged from a high of 93% to a disquieting low of 7%. A profile of grade-distribution is appended to this report.

The examinees inhabiting the lowermost rungs of the grading scale manifested not alone an appalling lack of knowledge of the fundamental principles involved in the examination questions but also an inability to logically string their thoughts together compounded by an almost incredible deficiency in language skills.

That is not to say that everyone who received higher grades demonstrated no language difficulties. It may in fact be justifiably said that a commendable command of language is the fortune of but a few of the examinees.

III. Other Matters

(a) Comment on the relative weight of legal Ethics.

Rule 138 allocates the combination of Legal Ethics and Practical Exercise a relative weight of 5% in the Bar examination. Because of the joinder of these two non-homogeneous subjects, it has of course been necessary to apportion the rather meager 5% between Legal Ethics on the one hand and, on the other, Practical Exercise. In this year’s examination. The apportionment is 70% for the first and 30% for the other.

In overall terms, therefore, the effective relative weight of Legal Ethics is only 3.5% (this being 70% of 5%), and that of Practical Exercise 1.5% (being 30% of 5%).

One question that may be asked is whether it is worth examining Bar applicants in full subjects with effective relative weights that, by mathematical calculation, would require almost 30 points (in Legal Ethics) or some 67 points (in Practical Exercise) to effect a single point differential in the overall Bar examination average of an examinee.

A more basic observation, however, arises out of a comparison between Legal Ethics 3.5% and Taxation’s 10%. The relative weight of the first is only a third of the second, But we do know that ethics is bedrock matter to the profession. While its articulation in codal or canonical form may vary from time to time, the basic principles by which a lawyer’s conduct must ever be guided are virtually unchanging, if these are not at all unchangeable. On the other, tax laws in particular undergo changes with rapidity that leaves even the tax practitioners gasping in trying to catch up, so that passable knowledge of tax laws now could mean nothing after we no more than a few years. Yet, taxation in effect is recognized in quantitative terms as three times more important than legal ethics.

It may be a manner if looking at the conclusion of Legal Ethics in the Bar examination, considering the feathery weight allocated to the subject, as but a grudging concession to the ethical aspects of the ancient and honorable profession of the law.

May not a re-appraisal be in order?

(b) The Bar examination as a device to re-orient the educative process.

While passing the Bar examinations has not been conceded by the law schools as an end in the educative process of a lawyer, Dean Irene Cortes has noted that.

***what has developed in most schools is that it has become the principal goal. The curriculum, method of instruction, the review courses in the fourth year-all contribute to emphasize this.”

It seems from the observation of Dean Cortes that the currently predominant stress in instruction has been a sort of reaction to Bar examinations which have largely been a test of knowledge of the law’s content, with scant requirement for demonstration of the applicant’s proficiency in analytical and reasoning techniques associated with the exercise of the profession of the law.

This caused-and-effect relation, so far productive of less than ideal results, indicates that it is possible to cause a re-orientation of the stress in instruction in the law schools by institutionalizing the type of Bar examination that, to enable their law graduates to hurdle the same, would compel the law schools to shift their emphasis instruction towards techniques rather than mere content. For instance, If it were regularly made a part of the Bar examination questions involving problem-situations to ask the examinees to identity the issue, law schools would have to teach their students the techniques in issue identification and not simply to know what the law is. I use this as an example because many examinees in Legal Ethics and Practical Exercise went off-track in problem-solving due to error in perceiving the issues.

The possibilities of the Bar examination as a device with which to trigger off the orientation can only be expressed in general terms here. Obviously, the fashioning of specifics will require a detailed study.

Republic Act No. 9646, Real Estate Service Act of the Philippines

Republic of the Philippines
Congress of the Philippines

Metro Manila

Fourteenth Congress
Second Regular Session


Begun and held in Metro Manila, on Monday, the twenty-eight day of July, two thousand eight.

Republic Act No. 9646 June 29, 2009

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

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled::

ARTICLE I
TITLE, DECLARATION OF POLICY AND DEFINITION OF TERMS

Section 1. Title. - This Act shall be known as the. "Real Estate Service Act of the Philippines".

Section 2. Declaration of Policy. - The State recognizes the vital role of real estate service practitioners in the social political, economic development and progress of the country by promoting the real estate market, stimulating economic activity and enhancing government income from real property-based transactions. Hence, it shall develop and nurture through proper and effective regulation and supervision a corps of technically competent, responsible and respected professional real estate service practitioners whose standards of practice and service shall be globally competitive and will promote the growth of the real estate industry.

Section 3. Definition of Terms. - As used in this Act, the following terms shall mean:

(a) "Appraiser" also known as valuer, refers to a person who conducts valuation/appraisal; specifically, one who possesses the necessary qualifications, license, ability and experience to execute or direct the valuation/appraisal of real property.

(b) "Assessor" refers to an official in the local government unit, who performs appraisal and assessment of real properties, including plants, equipment, and machineries, essentially for taxation purposes. This definition also includes assistant assessors.

(c) "Real estate" refers to the land and all those items which are attached to the land. It is the physical, tangible entity, together with all the additions or improvements on, above or below the ground.

(d) "Real estate development project" means the development of land for residential, commercial, industrial, agricultural, institutional or recreational purposes, or any combination of such including, but not limited to, tourist resorts, reclamation projects, building or housing projects, whether for individual or condominium ownership, memorial parks and others of similar nature.

(e) "Real estate developer" refers to any natural or juridical person engaged in the business of developing real estate development project for his/her or its own account and offering them for sale or lease.

(f) "Real property" includes all the rights, interests and benefits related to the ownership of real estate.

(g) "Real estate service practitioners" shall refer to and consist of the following:

(1) Real estate consultant - a duly registered and licensed -natural person who, for a professional fee, compensation or other valuable consideration, offers or renders professional advice and judgment on: (i) the acquisition, enhancement, preservation, utilization or disposition of lands or improvements thereon; and (ii) the conception, planning, management and development of real estate projects.

(2) Real estate appraiser- a duly registered and licensed natural person who, for a professional fee, compensation or other valuable consideration, performs or renders, or offers to perform services in estimating and arriving at an opinion of or acts as an expert on real estate values, such services of which shall be finally rendered by the preparation of the report in acceptable written form.

(3) Real estate assessor - a duly registered and licensed natural person who works in a local government unit and performs appraisal and assessment of real properties, including plants, equipment, and machineries, essentially for taxation purposes.

(4) Real estate broker - a duly registered and licensed natural person who, for a professional fee, commission or other valuable consideration, acts as an agent of a party in a real estate transaction to offer, advertise, solicit, list, promote, mediate, negotiate or effect the meeting of the minds on the sale, purchase, exchange, mortgage, lease or joint venture, or other similar transactions on real estate or any interest therein.

(5) Real estate salesperson - a duly accredited natural person who performs service for, and in behalf of. a real estate broker who is registered and licensed by the Professional Regulatory Board of Real Estate Service for or in expectation of a share in the commission, professional fee, compensation or other valuable consideration.

ARTICLE II
PROFESSIONAL REGULATORY BOARD OF REAL ESTATE SERVICE

Section 4. Creation and Composition of the Board. - There is hereby created a Professional Regulatory Board of Real Estate Service, hereinafter referred to as the Board, under the supervision and administrative control of the Professional Regulation Commission (PRC), hereinafter referred to as the Commission, composed of a chairperson and four (4) members who shall be appointed by the President of the Philippines from the three (3) recommendees chosen by the Commission from a list of five (5) nominees per position submitted by the accredited and integrated professional organization of real estate service practitioners: Provided, That two (2) of the members of the Board shall represent the government assessors and appraisers.

The first Board shall be organized within six (6) months from the effectivity of this Act.

Section 5. Powers and Functions of the Board. - The Board is hereby vested the following powers and functions:

(a) Provide comprehensive policy guidelines for the promotion and development of the real estate industry;

(b) Conduct licensure examinations for the practice of the real estate service profession and prescribe the appropriate, syllabi of the subjects for examination;

(c) Issue, suspend, revoke or reinstate, after due notice and hearing, certificates of registration or professional identification cards for the practice of real estate service;

(d) Maintain a comprehensive and updated register of licensed real estate service professionals;

(e) Monitor the conditions affecting the practice of real estate service and adopt such measures as may be proper for the enhancement of the profession and/or the maintenance of high professional, ethical and technical standards;

(f) Adopt a national Code of Ethics and Responsibilities to be strictly observed by all licensed real estate service practitioners;

(g) Hear or investigate any violation of this Act, its implementing rules and regulations, and the Code of Ethics and Responsibilities for real estate service practitioners and issue subpoena and subpoena duces tecum to secure the appearance of witnesses and the production of documents in connection therewith;

(h) Safeguard and protect legitimate and licensed real estate service practitioners and, in coordination with the accredited and integrated professional organization of real estate service practitioners, monitor all forms of advertisements, announcements, signboards, billboards, pamphlets, brochures and others of similar nature concerning real estate and, where necessary, exercise its quasi-judicial and administrative powers to finally and completely eradicate the pernicious practices of unauthorized or unlicensed individuals;

(i) Prescribe, in cooperation with the Commission on Higher Education (CHED) or the concerned state university or college, the essential requirements as to the curricula and facilities of schools, colleges or universities seeking permission to open academic courses or already offering such courses in real estate service, and to see to it that these requirements, including the employment of qualified faculty members, are properly complied with;

(j) Promulgate, .administer and enforce rules and regulations necessary in carrying out the provisions of this Act;

(k) Supervise and regulate the registration, licensure and practice of real estate service in the Philippines;

(l) Assess and fix the rate of reasonable regulatory fees;

(m) Administer oaths and affirmations;

(n) Adopt an official seal of the Board;

(o) Evaluate periodically the status of real estate service education and profession, and recommend and/or adopt measures to upgrade and maintain its high standard;

(p) Prescribe guidelines and criteria for the Continuing Professional Education (CPE) program for real estate service practitioners in consultation with the accredited and integrated professional organization of real estate service practitioners;

(q) Screen, issue and monitor permits to organizations of real estate professionals in the conduct of seminars and accredit such seminars pursuant to the CPE program, as well as the instructors or lecturers therein, for the purpose of upgrading the quality and knowledge of the profession;

(r) Monitor and supervise the activities of the accredited and integrated professional organization and other associations of real estate service practitioners; and

(s) Discharge such other powers, duties and functions as the Commission may deem necessary to carry out the provisions of this Act.

The policies, resolutions and rules and regulations issued or promulgated by the Board shall be subject to the review and approval by the Commission. However, the Board's decisions, resolutions or orders which are not interlocutory, rendered in an administrative case, shall be subject to review by the Commission only on appeal.

Section 6. Qualifications of the Chairperson and Members of the Board. - The chairperson and the members of the Board shall, at the time of their appointment, possess the following qualifications:

(a) A citizen and resident of the Philippines;

(b) A holder of a bachelor's degree related to real estate;

(c) An active licensed practitioner of real estate service for at least ten (10) years prior to his/her appointment;

(d) A bona fide member in good standing of the accredited and integrated professional organization of real estate service practitioners but not an officer or trustee at the time of his/her appointment;

(e) Neither be a member of the faculty of an institute, school, college or university, nor have any pecuniary interest, direct or indirect, in any institution or association where review classes or lectures in preparation for the licensure examination are being offered or conducted; and

(f) Of good moral character, and must not have been convicted by final judgment by a competent court of a criminal offense involving moral turpitude.

Section 7. Term of Office. - The chairperson and the members of the Board shall hold office for a term of three (3) years from the date of their appointment and until their successor/s shall have been appointed: Provided, That the members of the first appointed Board shall hold office for the following terms: one (1) member as chairperson, to serve for three (3) years; two (2) members, to serve for two (2) years; and two (2) members, to serve for one (1) year.

The chairperson and the members of the Board may be reappointed for a second term but in no case shall he/she serve continuously for more than six (6) years. Any vacancy in the Board shall be filled for the unexpired portion of the term of the member who vacated the position. On the constitution of the first Board, the chairperson and the members of the Board shall automatically be registered and issued certificates of registration and professional identification cards. Each member of the Board shall take the proper oath of office prior to the assumption of duty.

Section 8. Compensation and Allowances of the Chairperson and Members of the Board. - The chairperson and the members of the Board shall receive compensation and allowances comparable to the compensation and allowances received by the chairman and the members of existing professional regulatory boards under the Commission, as provided for in the General Appropriations Act.

Section 9. Removal of the Chairperson and Members of the Board. - The chairperson or any member of the Board may be suspended or removed by the President of the Philippines, upon the recommendation of the Commission, for neglect of duty; abuse of power; oppression; incompetence; unprofessional, unethical, immoral or dishonorable conduct; commission or toleration of irregularities in the conduct of examination or tampering of the grades therein, or for any final judgment or conviction of any criminal offense involving moral turpitude.

Section 10. Supervision of the Board, Custodian of its Records, Secretariat and Support Services. - The Board shall be under the general supervision and administrative control of the Commission. All records of the Board, including applications for examination, examination papers and results, minutes of deliberations, administrative and other investigative cases involving real estate service practitioners, shall be kept by the Commission. The Commission shall designate the secretary of the Board and shall provide the secretariat and other support services to implement the provisions of this Act subject to the usual government accounting and auditing rules and regulations.

Section 11. Annual Report. - The Board shall, at the close of each calendar year, submit an annual report to the Commission, giving a detailed account of its proceedings and accomplishments during the year and recommending measures to be adopted with the end-in-view of upgrading and improving the conditions affecting the practice of real estate service in the Philippines.

ARTICLE III
LICENSURE EXAMINATION AND REGISTRATION

Section 12. Licensure Examination. - Every applicant seeking to be registered and licensed as a real estate service practitioner, except a real estate salesperson, shall undergo an examination as provided for in this Act. Examinations for the practice of real estate service in the Philippines shall be given by the Board at least once every year in such places and dates as the Commission may designate.

Section 13. Scope of Examination. - An examination shall be given to the licensure applicants for real estate brokers, real estate appraisers and real estate consultants which shall include, but not limited to, the following:

(a) For real estate consultants - fundamentals of real estate consulting; standards and ethics; consulting tools and techniques, which include project feasibility study and investment measurement tools; real estate finance and economics; real estate consulting and investment analyses; consulting for specific engagement, which includes consulting for commercial, industrial, recreation and resort and hotel properties, and consulting for government and corporate and financial institutions; land management system and real property laws; and any other related subjects as may be determined by the Board;

(b) For real estate appraisers - fundamentals of real estate principles and practices; standards and ethics; theories and principles in appraisal; human and physical geography; methodology of appraisal approaches; valuation procedures and research; appraisal of machinery and equipment; practical appraisal mathematics; appraisal report writing; real estate finance and economics; case studies; land management system and real property laws; and any other related subjects as may be determined by the Board; and

(c) For real estate brokers - fundamentals of property ownership; code of ethics and responsibilities; legal requirements for real estate service practice; real estate brokerage practice; subdivision development; condominium concept; real estate finance and economics; basic principles of ecology; urban and rural land use; planning, development and zoning; legal aspect of sale, mortgage and lease; documentation and registration; real property laws; and any other related subjects as may be determined by the Board.

To conform with technological and modern developments, the Board may recluster, rearrange, modify, add to, or exclude any of the foregoing subjects as may be necessary.

Section 14. Qualification of Applicants for Examinations. - In order to be admitted to the licensure examination for real estate service, a candidate shall, at the time of filing his/her application, establish to the satisfaction of the Board that he/she possesses the following qualifications:

(a) A citizen of the Philippines;

(b) A holder of a relevant bachelor's degree from a state university or college, or other educational institution duly recognized by the CHED: Provided, That as soon as a course leading to a Bachelor's degree in Real Estate Service is implemented by the CHED, the Board shall make this course a requirement for taking the "licensure examination; and

(c) Of good moral character, and must not have been convicted of any crime involving moral turpitude: Provided, That an applicant for the licensure examination for real estate consultants must show proof that he/she has at least ten (10) years experience as a licensed real estate broker or an assessor, or as a bank or institutional appraiser or an employed person performing real property valuation, or at least five (5) years experience as a licensed real estate appraiser.

All applications for examination shall be filed with the Board which shall assess and approve said applications and issue to the qualified examinees the corresponding permits to take such examination.

Section 15. Ratings in the Examination. - In order that a candidate may be deemed to have successfully passed the examination, he/she must have obtained an average of at least seventy-five percent (75%) in all subjects, with no rating below fifty percent (50%) in any subject.

Section 16. Release of the Results of Examination. - The results of the licensure examination shall be released by the Board within ten (10) days from the last day of the examination.

Section 17. Issuance of the Certificate of Registration and Professional Identification Card. - A certificate of registration shall be issued to examinees who pass the licensure examination for real estate service subject to payment of fees prescribed by the Commission. The certificate of registration shall bear the signature of the chairperson of the Commission and the chairperson and the members of the Board, stamped with the official seal of the Commission, indicating that the person named therein is entitled to practice the profession with all the benefits and privileges appurtenant thereto. This certificate of registration shall remain in full force and effect until revoked or suspended in accordance with this Act.

A professional identification card bearing the registration number, date of issuance and expiry date, duly signed by the chairperson of the Commission, shall likewise be issued to every registrant upon payment of the required fees. The professional identification card shall be renewed every three (3) years and upon satisfying the requirements of the Board such as, but not limited to, attendance in the CPE program.

Section 18. Refusal to Register. - The Board shall not register and issue a certificate of registration to any successful examinee who has been convicted by a court of competent jurisdiction of any criminal offense involving moral turpitude or has been found guilty of immoral or dishonorable conduct after investigation by the Board, or has been found to be psychologically unfit.

Section 19. Revocation or Suspension of the Certificate of Registration and the Professional Identification Card or Cancellation of Special/Temporary Permit. - The Board may, after giving proper notice and hearing to the party concerned, revoke the certificate of registration and the professional identification card, or cancel the special/temporary permit of a real estate service practitioner, or suspend him/her from the practice of the profession on any of the following instances hereunder:

(a) Procurement of a certificate of registration and/or professional identification card, or special/temporary permit by fraud or deceit;

(b) Allowing an unqualified person to advertise or to practice the profession by using one's certificate of registration or professional identification card, or special/temporary permit;

(c) Unprofessional or unethical conduct;

(d) Malpractice or violation of any of the provisions of this Act, its implementing rules and regulations, and the Code of Ethics and Responsibilities for real estate service practitioners; and

(e) Engaging in the practice of the profession during the period of one's suspension.

Section 20. Registration Without Examination, - Upon application and payment of the required fees, the following shall be registered, and shall be issued by the Board and the Commission a certificate of registration and a professional identification card without taking the prescribed examination:

(a) Those who, on the date of the effectivity of this Act, are already licensed as real estate brokers, real estate appraisers or real estate consultants by the Department of Trade and Industry (DTI) by virtue of Ministry Order No. 39, as amended: Provided, That they are in active practice as real estate brokers, real estate appraisers and real estate consultants, and have undertaken relevant CPE to the satisfaction of the Board;

(b) Assessors and appraisers who, on the date of the effectivity of this Act, hold permanent appointments and are performing actual appraisal and assessment functions for the last five (5) years, have passed the Real Property Assessing Officer (RPAO) examination conducted and administered by the Civil Service Commission (CSC) in coordination with the Department of Finance (DOF), and have undertaken relevant CPE to the satisfaction of the Board; and

(c) Assessors and appraisers who, on the date of the effectivity of this Act, hold permanent appointments and have at least ten (10) years actual experience in real property appraisal or assessment and have completed at least one hundred twenty (120) hours of accredited training on real property appraisal conducted by national or international appraisal organizations or institutions/entities recognized by the Board and relevant CPE to the satisfaction of the Board.

Those falling under categories (b) and (c) shall register with the Board after they shall have complied with the requirements for registration as real estate appraisers: Provided, That those seeking to be licensed to a new credential level shall be required to take the pertinent licensure examination.

Those so exempt under the aforementioned categories shall file their application within two (2) years from the effectivity of this Act: Provided, That the renewal of the professional identification card is subject to the provisions of Section 17 hereof.

Section 21. Reinstatement, Reissuance or Replacement of Certificate of Registration, Professional Identification Card and Special/Temporary Permit. - The Board may, after the expiration of two (2) years from the date of revocation of a certificate of registration and/or professional identification card, and upon application, compliance with the required CPE units, and for reasons deemed proper and sufficient, reinstate any revoked certificate of registration and reissue a suspended professional identification card and in so doing, may, in its discretion, exempt the applicant from taking another examination.

A new certificate of registration, professional identification card or special/temporary permit may be issued to replace lost, destroyed or mutilated ones, subject to the rules as may be promulgated by the Board.

Section 22. Roster of Real Estate Service Practitioners. - The Board, in coordination with the integrated professional organization of real estate service practitioners, shall prepare, update and maintain a roster of real estate service practitioners which shall contain the names of all registered real estate service practitioners, their residence and office addresses, license number, dates of registration or issuance of certificates, and other data which.the Board may deem pertinent. Copies thereof shall be made available to the public upon request.

Section 23. Issuance of Special/Temporary Permit. - Upon application and payment of the required fees and. subject to the approval of the Commission, the Board may issue special/temporary permit to real estate service practitioners from foreign countries whose services are urgently needed in the absence or unavailability of local real estate service^ practitioners for the purpose of promoting or enhancing the practice of the profession in the Philippines.

Section 24. Foreign Reciprocity. - No foreign real estate service practitioner shall be admitted to the licensure examination or be given a certificate of registration or a professional identification card, or be entitled to any of the privileges under this Act unless the country of which he/she is a citizen specifically allows Filipino real estate service practitioners to practice within its territorial limits on the same basis as citizens of such foreign country.

ARTICLE IV
PRACTICE OF REAL ESTATE SERVICE

Section 25. Oath. - All successful examinees qualified for registration and all qualified applicants for registration without examination as well as accredited salespersons shall be required to take an oath before any member of the Board or any officer of the Commission duly authorized by the Commission to administer oaths prior to entering into the practice of real estate service in the Philippines.

Section 26. Professional Indemnity Insurance/Cash or Surety Bond. - All real estate brokers and private real estate appraisers shall, in addition to the oath referred to in the preceding section, be required to post a professional indemnity insurance/cash or surety bond, renewable every three (3) years, in an amount to be determined by the Board, which in no case shall be less than Twenty thousand pesos (P20,000.00), without prejudice to the additional requirement of the client.

Section 27. Acts Constituting the Practice of Real Estate Service. - Any single act or transaction embraced within the provisions of Section 3(g) hereof, as performed by real estate service practitioners, shall constitute an act of engaging in the practice of real estate service.

Section 28. Exemptions from the Acts Constituting the Practice of Real Estate Service. - The provisions of this Act and its rules and regulations shall not apply to the following":

(a) Any person, natural or juridical, who shall directly perform by himself/herself the acts mentioned in Section 3 hereof with reference to his/her or its own property, except real estate developers;

(b) Any receiver, trustee or assignee in bankruptcy or insolvency proceedings;

(c) Any person acting pursuant to the order of any court of justice;

(d) Any person who is a duly constituted attorney-in-fact for purposes of sale, mortgage, lease or exchange, or other similar contracts of real estate, without requiring any form of compensation or remuneration; and

(e) Public officers in the performance of their official duties and functions, except government assessors and appraisers.

Section 29. Prohibition Against the Unauthorized Practice of Real Estate Service. - No person shall practice or offer to practice real estate service in the Philippines or offer himself/herself as real estate service practitioner, or use the title, word, letter, figure or any sign tending to convey the impression that one is a real estate service practitioner, or advertise or indicate in any manner whatsoever that one is qualified to practice the profession, or be appointed as real property appraiser or assessor in any national government entity or local government unit, unless he/she has satisfactorily passed the licensure examination given by the Board, except as otherwise provided in this Act, a holder of a valid certificate of registration, and professional identification card or a valid special/temporary permit duly issued to him/her by the Board and the Commission, and in the case of real estate brokers and private appraisers, they have paid the required bond as hereto provided.

Section 30. Positions in Government Requiring the Services of Registered and Licensed Real Estate Service Practitioners. - Within three (3) years from the effectivity of this Act, all existing and new positions in the national and local governments, whether career, permanent, temporary or contractual, and primarily requiring the services of any real estate service practitioner, shall be filled only by registered and licensed real estate service practitioners.

All incumbent assessors holding permanent appointments shall continue to perform their functions without need for re appointment and without diminution of status, rank and salary grade, and shall enjoy security of tenure. However, they may not be promoted to a higher position until they meet the qualification requirements of that higher position as herein prescribed. Nothing in this Act shall be construed to reduce any benefit, interest, or right enjoyed by the incumbents at the time of the enactment of this Act. The appointing authority shall exercise his power to appoint the assessor in accordance with the provisions of this Act only when a vacancy occurs.

Section 31. Supervision of Real Estate Salespersons. - For real estate salespersons, no examination shall be given, but they shall be accredited by the Board: Provided, That they have completed at least two (2) years of college and have undergone training and seminars in real estate brokerage, as may be required by the Board. Real estate salespersons shall be under the direct supervision and accountability of a real estate broker. As such, they cannot by themselves be signatories to a written agreement involving a real estate transaction unless the real estate broker who has direct supervision and accountability over them is also a signatory thereto. No real estate salesperson, either directly or indirectly, can negotiate, mediate or transact any real estate transaction for and in behalf of a real estate broker without first securing an authorized accreditation as real estate salesperson for the real estate broker, as prescribed by the Board. A real estate broker shall be guilty of violating this Act for employing or utilizing the services of a real estate salesperson when he/she has not secured the required accreditation from the Board prior to such employment.

No salesperson shall be entitled to receive or demand a fee, commission or compensation of any kind from any person, other than the duly licensed real estate broker who has direct control and supervision over him, for any service rendered or work done by such salesperson in any real estate transaction.

No violation of this provision shall be a cause for revocation or suspension of the certificate of registration of the real estate broker unless there was actual knowledge of such violation or the broker retains the benefits, profits or proceeds of a transaction wrongfully negotiated by the salesperson.

Section 32. Corporate Practice of the Real Estate Service. -

(a) No partnership or corporation shall engage in the business of real estate service unless it is duly registered with the Securities and Exchange Commission (SEC), and the persons authorized to act for the partnership or corporation are all duly registered and licensed real estate brokers, appraisers or consultants, as the case may be. The partnership or corporation shall regularly submit a list of its real estate service practitioners to the Commission and to the SEC as part of its annual reportorial requirements. There shall at least be one (1) licensed real estate broker for every twenty (20) accredited salespersons.

(b) Divisions or departments of partnerships and corporations engaged in marketing or selling any real estate development project in the regular course of business must be headed by full-time registered and licensed real estate brokers.

(c) Branch offices of real estate brokers, appraisers or consultants must be manned by a duly licensed real estate broker, appraiser or consultant as the case may be.

In case of resignation or termination from employment of a real estate service practitioner, the same shall be reported by the employer to the Board within a period not to exceed fifteen (15) days from the date of effectivity of the resignation or termination.

Subject to the provisions of the Labor Code, a corporation or partnership may hire the services of registered and licensed real estate brokers, appraisers or consultants on commission basis to perform real estate services and the latter shall be deemed independent contractors and not employees of such corporations.

Section 33. Display of License in the Place of Business. - Every registered and licensed real estate service practitioner shall establish and maintain a principal place of business and such other branch offices as may be necessary, and shall conspicuously display therein the original and/or certified true copies of his/her certificate of registration as well as the certificates of registration of all the real estate service practitioners employed in such office.

Section 34. Accreditation and Integration of Real Estate Service Associations. - All real estate service associations shall be integrated into one (1) national organization, which shall be recognized by the Board, subject to the approval of the Commission, as the only accredited and integrated professional organization of real estate service practitioners.

A real estate service practitioner duly registered with the Board shall automatically become a member of the accredited and integrated professional organization of real estate service practitioners, and shall receive the benefits and privileges appurtenant thereto. Membership in the accredited and integrated professional organization of real estate service practitioners shall not be a bar to membership in other associations of real estate service practitioners.

Section 35. Code of Ethics and Responsibilities for Real Estate Service Practitioners. - The Board shall adopt and promulgate the Code of Ethics and Responsibilities for real estate service practitioners which shall be prescribed and issued by the accredited and integrated professional organization of real estate service practitioners.

Section 36. Continuing Professional Education (CPE) Program. - The Board shall develop, prescribe and promulgate guidelines on CPE upon consultation with the accredited and integrated professional organization of real estate service practitioners, affiliated association of real estate service practitioners and other concerned sectors, and in accordance with such policies as may have been prescribed by the Board, subject to the approval of the Commission. The Board shall create a CPE Council that shall be composed of a chairperson coming from the Board, a member from the accredited and integrated professional organization of real estate service practitioners and a member from the academe.

Section 37. Enforcement Assistance to the Board. - The Board shall be assisted by the Commission in carrying out the provisions of this Act and its implementing rules and regulations and other policies. The lawyers of the Commission shall act as prosecutors against illegal practitioners and other violators of this Act and its rules. The duly constituted authorities of the government shall likewise assist the Board and the Commission in enforcing the provisions of this Act and its rules.

Section 38. Indication of the Certificate of Registration, Professional Identification Card/License Number, Privilege Tax Receipt (PTR) Number and Accredited Professional Organization (APO) Number. - Real estate service practitioners shall be required to indicate the certificate of registration, professional identification card, PTR number, and APO receipt number, and the date of issuance and the duration of validity on the documents he/she signs, uses or issues in connection with the practice of his/her profession.

ARTICLE V
PENAL AND FINAL PROVISIONS

Section 39. Penal Provisions, - Any violation of this Act, including violations of implementing rules and regulations, shall be meted the penalty of a fine of not less than One hundred thousand pesos (P100,000.00) or imprisonment of not less than two (2) years, or both such fine and imprisonment upon the discretion of the court. In case the violation is committed by an unlicensed real estate service practitioner, the penalty shall be double the aforesaid fine and imprisonment.

In case the violation is committed, by a partnership, corporation, association or any other juridical person, the partner, president, director or manager who has committed or consented to or knowingly tolerated such violation shall be held directly liable and responsible for the acts as principal or as a co-principal with the other participants, if any.

Section 40. Appropriations. - The chairperson of the Professional Regulation Commission shall immediately include in the Commission's programs the implementation of this Act, the funding of which shall be included in the annual General Appropriations Act and thereafter.

Section 41. Transitory Provision. - Within ninety (90) days from the effectivity of this Act, the DTI - Bureau of Trade Regulation and Consumer Protection (BTRCP) shall transfer all pertinent records, documents and other materials to the Professional Regulatory Board of Real Estate Service.

Section 42. Implementing Rules and Regulations. - Within six (6) months after the effectivity of this Act, the Commission, together with the Board and the accredited and integrated professional organization of real estate service practitioners, the Department of Finance, and the CHED, shall prepare the necessary rules and regulations, including the Code of Ethics and Responsibilities for real estate service practitioners, needed to implement the provisions of this Act.

Section 43. Separability Clause. - If any clause, sentence, paragraph or part of this Act shall be declared unconstitutional or invalid, such judgment shall not affect, invalidate or impair any other part of this Act.

Section 44. Repealing Clause. -

(a) Sections 3(e) and (ee) of Act No. 2728, as amended by Act No. 3715 and Act No. 3969, Sections 472 and 473 of the Local Government Code of 1991 (Republic Act No. 7160), and pertinent provisions of the Civil Service Law are hereby modified accordingly.

(b) All laws, decrees, executive orders, department or memorandum orders and other administrative issuances or parts thereof which are inconsistent with the provisions of this Act are hereby modified, superseded or repealed accordingly.

Section 45. Effectivity. - This Act shall take effect fifteen (15) days following its publication in the Official Gazette or in a major daily newspaper of general circulation in the Philippines.

Approved.

(Sgd.) JUAN PONCE ENRILE
President of the Senate

(Sgd.) PROSPERO C. NOGRALES
Speaker of the House of Representatives

This Act which is a consolidation of Senate Bill No. 2963 and House Bill No. 3514 was finally passed by the Senate and the House of Representatives on May 12, 2009.

(Sgd.) EMMA LIRIO-REYES
Secretary of Senate

(Sgd.) MARILYN B. BARUA-YAP
Secretary General
House of Represenatives

Approved: June 29, 2009

(Sgd.) GLORIA MACAPAGAL-ARROYO
President of the Philippines