FOR REAL ESTATE SERVICE PRACTITIONERS BASED ON THE DRAFT PROVIDED BY PRBRES

CRB Bong Cruz

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 (AIPO) of real estate service practitioners

The nomenclature Code of Ethics: A code of ethics is a set of principles of

conduct within an organization that guide decision making and behavior. The purpose of the code is to provide members and other interested persons with guidelines for making ethical choices in the conduct of their work.

The association of trade or vocation has a responsibility to society as a whole for the activities of its members

Evidence of a growing realization that regard for the public welfare is good business practice

Codes typically divided into four distinct elements: an introduction or preamble, a statement of purposes and values, specific rules of conduct which may be

subdivided in various ways, and implementation of the code, which will

define administrative processes, reporting, and sanctions.

Real Estate Service is:Noble professionCommitted to rural and urban properties

Those engaged are:bound by a code of conduct, morals, and values in performance of their rights, duties and obligations towards the public, their client, the government, colleagues to the profession and to the people they serve for the benefit of the common good.

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Real Estate Service Practitioners:

ConsultantsAppraisersAssessors (new)BrokersSalespersons

Section 1. The Real Estate Service Practice is a noble profession, calling or occupation and those engaged therein shall abide by, commit and comply with all the laws, standards, decrees, orders and rules and regulations enacted or promulgated by duly constituted government authorities.

Section 2. The Real Estate Service Practitioners shall perform it duties and responsibilities with utmost integrity, responsibility, fidelity, sincerity, respect and courtesy for colleagues in the profession with a behavior proper to a professional.

The Real Estate Service Practitioners shall adhere to the strict compliance of the National Code of Ethics and Responsibilities with honesty, good moral conduct and strong sense of values.

Section 3. It is required to have adequate education, value formation, knowledge, competence and expertise in real estate service.

Section 4. This Code of Ethics and Responsibilities for real estate service practitioner shall be prescribed and issued by the accredited and integrated professional organization of real estate service practitioners (AIPO).

Section 5. The spirit of unity, harmony, camaraderie, cooperation and professional relationship among the practitioners is essential, and shall be promoted under the principle of solidarity.

Section 6. All real estate service practitioners being automatically members of the APO shall practice self government which shall regulate and 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.

Section 7. The real estate service practitioner as prescribed by law shall take an oath and be bound in conscience to practice in real estate service in an exemplary manner with the sense of responsibility, integrity, honesty, high moral and technical standards, with professionalism consistent to being a responsible citizen oblige to respect the dignity of the individual, well being and unity of the real industry for the good of economic development and progress of the nation.

Responsibility to GovernmentResponsibility to the PublicResponsibility to clientResponsibility to fellow

practitionersResponsibility to AIPO

The Practitioner should secure all the necessary licenses, permits and authority from the Commission and other government agencies as may be required by law, ordinance or rules and regulations and comply with all the requirements relative to the practice of real estate service.

The Practitioner shall pay any and all professional fees and taxes that are required by law in the practice of real estate.

The Practitioner shall provide assistance and cooperate with the Commission through the Professional Regulatory Board of Real Estate Service (PRBRES), and all government agencies and instrumentalities in the promotion, development and conservation of lands and other natural resources, its improvements and rights and interest therein.

The Practitioner shall not encourage, tolerate or participate in the evasion or illegal reduction in the payment of all taxes, fees or charges that is due to the government.

The Practitioner shall not offer or agree to pay, to split or rebate any professional fee or valuable consideration, directly or indirectly with any person who is not a licensed real estate service practitioner or to cooperate, assist or endorse any transaction or engagement of his/her professional services in violation of any existing law and its rules and regulations.

The Practitioner shall indicate his license number issued by the Commission as indicated in the Certificate of Registration, professional identification card number, PTR number, APO receipt number, and the date of issuance and the validity period on the documents he signs, uses or issues.

In case of signboard, billboard, advertisement and other forms of published announcements and/or advertisements, Practitioner shall only be required relative to the Real Estate Service Practice.

The Practitioner shall be imbued with a social responsibility and conscience for he/she does not live by himself/herself and his/her family alone but he/she is a part of society with duties and responsibility for others for the promotion of the common good.

The Practitioner shall ensure the highest and best use (HABU) of the land and the equitable distribution of ownership, including environmental preservation and protection, irrespective of political beliefs, cultural background, sect, religion or class.

The Practitioner shall keep himself well informed to any economic, financial market, laws, other forces affecting real estate in his/her community in the locality as well as updates with continuing professional development on real estate laws, rules and regulations.

The Practitioner shall cooperate with the government in protecting the public against deceit, misrepresentation, unfair, relevant information and other related unethical and immoral practices and malpractices of unlicensed and unauthorized real estate service practitioners.

He/She shall endeavor to present the true picture of the subject of the engagement, its improvements, or rights and interest including the liens or encumbrances thereof.

Further he/she shall be accountable in all pertinent facts concerning every property transactions with transparency and accountability.

In advertisements, brochures, flyers, press releases and/or other means of announcements (whether in tri-media or electronic media/means), the Practitioner shall present a true picture of the property listing, subdivision project or any assignment, its improvements, its rights and interests, liens or encumbrances, if any, and should indicate his/her name, firm name, address and license number stated in the Certificate of Registration and the Professional Identification Card Number with validity thereof issued by the Professional Regulation Commission in accordance with the Implementing Rules & Regulations of RA 9646.

In case of Real Estate Salesperson, he/she shall indicate the name and the license number of the Real Estate Broker whom the Real Estate Salesperson has the written authority to act for and in behalf of the Real Estate Broker in all form of advertisements/announcements.

The Practitioner shall make sure that all agreement, terms and conditions, financial obligations and commitments in real estate transactions are in writing, duly signed by all the parties concerned and if necessary, shall be properly authenticated by a Notary Public.

The Practitioner in accepting listing and/or assignment to act for and in behalf of a client shall oblige himself/herself with prudence, integrity and utmost loyalty, fidelity and good faith in protecting and promoting the interest of his/her client without sacrificing the legitimate interest of the other party of the transaction and shall not be contrary to the law, good morals and public interest.

The Practitioner shall attend dutifully the Continuing Professional Education (CPE) with the spirit of responsibility and accountability being aware on the need to study and in educating the public and the client for the sake of fairness who entrusted him/her.

He/She shall endeavor to be updated on current legislations, proposed legislations and government policies and programs which may affect the client’s interest. 

The Practitioner shall not accept any professional fee or valuable consideration from any party of the real estate transactions except from his/her client unless with the full knowledge and consent of all the parties to the transaction.

He/She shall not introduce or make overprice from the authority granted by the Client, except on the usual agreed minimum professional fee as approved by the accredited and integrated professional organization of the real estate service practitioners.

The Practitioners who are full-time employee of a juridical person shall not engage in moonlighting, malpractices, unethical practices of acting as a dummy, revealing any confidential and classified corporate information that is detrimental to the trust and confidence of clients.

  The Practitioner shall charge or collect standard

professional fees which are fair and reasonable in accordance with local industry practice in similar transactions but not lower than the agreed minimum professional fee as approved by the accredited and integrated professional organization of the real estate service practitioners.

  The Practitioner shall not advertise any property

listing or assignment without written authority from the Client and shall only offer the same on the agreed authorized price granted by the client.

The Practitioner shall present all written offers or counter-offers/proposals to the Client for his/her sound judgement or decision and shall endeavor to make his/her client conclude a fair and reasonable contract advantageous to all the parties concern to the transaction. Further, he/she shall assist the client and/or the other party to acquire possession and ownership of the property subject to the transaction in accordance with the terms and conditions agreed upon by the parties.

 

In case the Practitioner is called upon to act as witness in a court proceeding he/she shall give testimonies in the most unbiased, honest, truthful and professional manner.

As Real Estate Appraiser and/or Real Estate Consultant, the Practitioner shall only undertake consulting services or engagements in a conduct that is legal, ethical and moral. The Practitioner shall act as disinterested third (3rd) party in rendering unbiased appraisal report and/or consulting services and shall perform the engagements with impartiality, objectivity, and independence without accommodation of personal interests. The Appraiser or Consultant shall be required to avoid any action that would be considered as misleading or fraudulent or to knowingly permit an employee or other person to communicate such misleading or fraudulent report.

The Real Estate Appraiser and/or Real Estate Consultant shall not render opinion on any engagement or study without carefully and thoroughly analyzing and interpreting all factors or forces affecting the value of the property subject to the engagement. The Practitioner’s advice constitutes a professional service for which he/she shall make a fair and reasonable professional fee charges

The Appraiser and/or Consultant shall not accept the professional engagement if it is beyond the field of his/her experience and competence unless he/she obtains assistance from another practitioner familiar with the subject of the engagement and such facts shall be fully disclosed to the client.

The Real Estate Appraiser shall protect the confidential nature of the engagement under the Principle of Appraiser-Client privilege communication, pertaining to factual data obtained as the result of the engagement. The Appraiser and/or Consultant shall not disclose any confidential factual data to anyone except to: (1) the client or the person authorized by the client in writing; (2) Third (3rd) parties authorized by due process of law; and (3) duly authorized professional peer reviewer of the engagement.

Likewise, it is unethical for a professional peer reviewer to disclose any confidential information or factual data relative to the engagement such as but not limited to written reports, contracts and agreement unless there is a written consent or authority from the client.

It is unethical for the Appraiser or the Consultant to accept professional fee that is contingent upon the reporting of a predetermined result or a direction that favors the cause of the client. The restriction of contingent fee applies to consulting services on a professional fee basis and where the Consultant is acting in an independent manner that requires impartiality.

Bribery and the giving of gratuity for undisclosed professional fees or anything of value in exchange for the procurement of appraisal or consulting engagement is unethical.

A Practitioner shall prepare and preserve written records of the transaction or engagements (collectively referred to as the work file) for a period of at least five (5) years after the report date or at least two (2) years after final disposition of any juridical proceeding from which the testimony was given, whichever period expires last.

The Appraiser/Consultant shall not have any interest in whatever form on the property subject to the engagement. Signatories of juridical persons performing real estate service practice must be licensed Real Estate Service Practitioners. Its Officers and Directors must all be licensed Real Estate Service Practitioners duly licensed and registered with the Professional Regulation Commission (PRC).

The Appraisal/Consultant shall not compromise and endanger his/her professional work by delegating the task, career and responsibilities to any unlicensed individual whether an employee or contractor or an apprentice/trainee;

The Real Estate Broker shall not solicit a listing that is currently listed exclusively with another Real Estate Broker unless the exclusive listing agreement has expired or revoked by the client with the knowledge of the Listing Broker and the Client offers the same to a new Real Estate Broker without soliciting it or use other unethical means to attain or acquire the said agreement.

The Real Estate Broker when accepting a listing agreement from the Listing Broker, the agreement shall be respected until it has expired. When a listing has come to the attention of the Accepting Real Estate Broker from a different source, or when the Client, without solicitation offers the listing to the Accepting Broker, such listing should not be passed to a Third Broker via electronic mail, SMS or published in any form or announcements and/or advertisements without the knowledge and consent of the Listing Broker.

Advertising with signage giving notice of a property for sale, rent, lease or exchange shall not be placed on any property by more than one Real Estate Broker and only if authorized by the property owner and/or Client in writing.

The Practitioner shall not use any vital documents such as but not limited: data and information, lot plans, drawings, or studies obtained received thru multiple listing facilities relative the professional conduct without written consent by the other Real Estate Service Practitioner.

The Practitioner shall cooperate with other Real Estate Brokers on property listed and justly share the professional fee as prescribed in the Tariff of Professional Fees approved by the Accredited and Integrated Professional Organization (AIPO).

The Practitioner shall not solicit or use the services of the employee of another Practitioner without the written consent by the latter.

The Practitioner shall not engage in slander, oral defamation, gossip, or criticize publicly a practitioner and/or competitor nor volunteer a negative and damaging opinions of a competitor and/or fellow practitioner in any means (SMS, electronics mails or letters, etc of similar nature). If one’s opinion is essentially sought for common good one should render judgment with discretion, prudence, truth with professional integrity, courtesy and respect to a fellow practitioner safeguarding their human rights and good name.

The practitioner shall not seek unjust and unfair advantage over his fellow practitioners by organizing or sowing discord, spreading and bad mouthing against other practitioners particularly officers and members of their association or AIPO.

The Practitioner shall willingly share, contribute, write and publish articles for the benefit of fellow practitioners for the good of the real estate industry by imparting his/her knowledge, technical training, experiences, studies or research without prejudice to classified or confidential information from client.

 

The Practitioner shall conduct his professional practice with honor, dignity and integrity to avoid any controversy with his fellow practitioners.

In the event of a controversy between practitioners belonging to the Accredited and Integrated Professional Organization (AIPO), such controversy should be submitted for arbitration to the said AIPO whose decision, if accepted by both parties, will be binding.

If the AIPO cannot settle the controversy, the Commission through the PRB-RES shall assume jurisdiction over said controversy in accordance to Section 5 paragraph (c) & (g) of the RA#9646.

Likewise, in case a complaint is filed against a Practitioner for immoral, unethical or unfair practice, he/she shall submit all pertinent facts and documents as required by law in observance of due process. 

In the interest of the general public and his/her own profession, calling or occupation, the Practitioner shall abide by the articles of incorporation and by-laws of the AIPO in compliance with Section 34 of R.A. 9646.

Elections of Officers and Trustees and/or Board Members of the AIPO must be carried out with a commitment to moral integrity, an obligation to serve with a sense of responsibility, honor, unselfishness, diligence and efficiency and further, shall not be subject of self-interest, undue use of force, authority and/or abuse of power and discretion.

Electioneering in any form shall not be allowed nor tolerated and anyone doing such shall be automatically disqualified as Candidate. Conduct thereof must be harmonious, peaceful and orderly.

The Practitioner shall swear under oath to support the AIPO financially and morally and shall actively participate with its plans, programs and projects for the benefit of the welfare of the AIPO general membership and the real estate industry.

The practitioner shall first exhaust all possible administrative remedies with discretion in compliance with due process available under the existing laws, rules and regulations before taking any judicial or quasi-judicial action.

The Practitioners shall strictly observe and/or comply the AIPO’s Code of Ethics.

A Practitioner, whether as an individual, as a member of a firm, or as an officer or employee of a corporation, partnership, cooperatives, association, shall be deemed to be engaged in the practice of real estate service profession within the meaning and intent of Republic Act No. 9646 and its rules and regulations issued hereto, if:

  He/She advertises himself/herself or in any other

manner conveys the impression to the public that he/she is skilled in the knowledge, science and practice of real estate service, and is qualified to render professional service as a registered real estate service professional for a fee or other compensation paid to him/her or another for and in his/her behalf or even without such fee or compensation;

He/She maintains a regular office for the practice of his/her profession as a registered real estate service professional when he/she performs the professional individually or renders service as such in the office of the client or employer;

He/She prepares, signs or certified as correct for clients or employers, any professional reports, bids, invoices or even documents intended to be used for obtaining or soliciting any loan or credit and other documents which requires the services of a registered real estate service practitioner;

He/She shall cooperate in extending the effectiveness of the real estate service profession and endeavor to be well-informed of the latest development in the profession by sharing or exchanging information and experience with other real estate service practitioners, other professionals and student, and by contributing to real estate publications and participating in the activities of the real estate service organizations or societies;

He/She shall be dignified in explaining and discussing his/her work and shall refrain from self-laudatory advertising or propaganda.

In advertising, the Practitioners shall not advertise, or cause or allow to be advertised, his/her professional attainment or services, except in stating qualifications in applications for employment.

However, publication of authorship of books, technical reports and studies, lectures or papers delivered in conference and seminars, and similar activities which are beneficial to the real estate service profession as a whole are not considered advertising.

Moreover, development and maintenance of a Website in the Internet shall not be considered as advertising either;

He/She shall live and cooperate in upholding the integrity and honor of the profession at all times, by avoiding all conduct and practices that will discredit and injure the real estate service profession, practice self-respect, selflessness as well as in respecting the dignity of human person for the good of humanity.

A Real Estate Service Professional shall not seek to obtain clients by solicitation. Advertising is a form of solicitation.

Publication of an announcement is permitted only for opening of a new office, change in office location or telephone numbers or reorganization of firm or office practice; provided it contains basic information essential to the announcement and is of reasonable size.

Announcement of any of the above information may also be made to clients and to individuals other than clients with whom professional contacts are maintained.

Listing of firm name in lobby directory of an office building and entrance door solely for the purpose of enabling interested parties to locate an office is permissible but must be in good taste and modest in size.

The Practitioner recognizes Almighty God or Supreme Being as his/her own Creator and Guide for his/her own destiny and reason for living good moral life and exemplary conduct or behavior in the practice of the real estate profession and in dealing with others.

Violation of any provisions of this Code including the RESA and its implementing rules and regulations shall give rise to any sanction that may be imposed by AIPO or the organization to which a practitioner belongs as a member, without prejudice, however, to disciplinary action that the Professional Regulation Commission (PRC) upon the recommendation of the Professional Regulatory Board of Real Estate Service (PRB-RES) may deem expedient thereon.

Then, the proper complaint against the erring practitioner or juridical person such as corporations, partnerships or organizations for alleged misconduct will be filed with the PRC in accordance with existing rules and regulations.

In the case of practitioners who are not members of any organizations, any complaint against them shall be governed by existing laws, rules and regulations governing controversies.

Section 1. If any provisions or part thereof shall be declared unconstitutional or invalid, such judgment shall neither invalidate nor impair any other provisions or part thereof.

Section 2. This National Code of Ethics and Responsibilities shall take effect after fifteen (15) days following its full and complete publication any newspaper of general circulation.