Understanding RESA: A Must for Real Estate Investors

Key Provisions of RESA Law

1. Licensing and Registration: The RESA Law requires real estate service practitioners (brokers, appraisers, and consultants) to be licensed by the Professional Regulation Commission (PRC). This ensures that only qualified professionals provide these services.

2. Professional Standards: The law sets standards for professional conduct and ethics, which practitioners must adhere to. This helps maintain the integrity of the industry and ensures that clients receive competent and ethical services.

3. Continuing Education: Licensed professionals are required to undergo continuing education to keep their knowledge and skills up-to-date.

Penalties for Violations

1. Unlicensed Practice: Practicing real estate service without a valid license is illegal and can result in fines and imprisonment. Violators may be penalized with a fine of not less than PHP 200,000 or imprisonment of not less than 4 years, or both.

2. False Representation: Making false representations about one's qualifications or engaging in fraudulent activities can lead to severe penalties, including revocation of licenses and criminal charges.

3. Unethical Conduct: Engaging in unethical or dishonest practices can also result in disciplinary actions by the PRC, which may include suspension or revocation of the license.

Why Deal Only with Licensed Practitioners

1. Professional Expertise: Licensed practitioners have met educational and experience requirements, ensuring they possess the necessary knowledge and skills to handle real estate transactions competently.

2. Consumer Protection: The licensing process and adherence to ethical standards protect consumers from fraud and unethical practices. Licensed professionals are accountable to regulatory bodies, offering an additional layer of security for clients.

3. Legal Compliance: Working with licensed practitioners ensures that all transactions comply with legal and regulatory requirements, reducing the risk of legal issues.

4. Quality Assurance: Licensed practitioners are subject to continuing education requirements, which helps them stay current with industry trends, legal changes, and best practices, ensuring high-quality service.

Dealing with licensed professionals helps ensure a smooth, legally compliant, and ethically sound real estate transaction, providing peace of mind and protection for both buyers and sellers.