RESA Law (RA 9646) Explained in Plain Language
A simple guide to understanding the Real Estate Service Act of the Philippines
The Real Estate Service Act of the Philippines, commonly known as the RESA Law (Republic Act No. 9646), is a national law that regulates the real estate profession in the country. It ensures that only trained, qualified, and licensed individuals can provide real estate services — protecting the public from fraud, misinformation, and risky transactions.
Here is an easy-to-understand summary of what the law covers and why it matters.
1. What Does the RESA Law Do?
At its core, the RESA Law aims to:
Regulate real estate service practice
Ensure professionals are licensed and competent
Protect buyers, sellers, landlords, and tenants
Promote ethical, transparent, and professional real estate transactions
It also creates a governing body — the Professional Regulatory Board of Real Estate Service — under the Professional Regulation Commission (PRC) to supervise the profession.
2. Who Is Covered Under the RESA Law?
The law governs ALL real estate service practitioners, including:
Real Estate Brokers
Real Estate Salespersons
Real Estate Appraisers
Real Estate Consultants
Real Estate Assessors
Each role has specific qualifications, responsibilities, and licensing requirements.
3. Key Features of the RESA Law (In Simple Terms)
✔ Only Licensed Professionals Can Legally Handle Real Estate Transactions
This includes selling, leasing, listing properties, negotiating deals, and advertising real estate services. Unlicensed practice is prohibited.
✔ PRC Licensing Is Required
Anyone who wants to practice as a real estate broker, appraiser, or consultant must pass a PRC licensure examination.
Salespersons must complete college units, undergo training, and be accredited under a licensed broker.
✔ A Professional Regulatory Board Oversees the Profession
The law establishes a board that:
Conducts licensure exams
Issues and renews licenses
Enforces ethical standards
Investigates violations
Maintains a national registry of licensed professionals
✔ Unlicensed Practice Is Penalized
Violators may face:
₱100,000+ fines
2+ years imprisonment
Penalties are doubled for unlicensed individuals illegally practicing real estate service.
✔ Corporate Real Estate Practice Is Regulated
Companies offering real estate services must:
Register with the SEC
Ensure their officers are licensed practitioners
Maintain a licensed broker for every 20 salespersons
✔ Salespersons Must Be Supervised by a Licensed Real Estate Broker
They cannot legally negotiate or sign real estate documents unless their supervising broker is also a signatory.
✔ Government Real Estate Positions Must Be Filled by Licensed Practitioners
Government offices that deal with appraisal, assessment, or real estate matters must hire licensed professionals.
✔ Ethics, Accountability, and Continuing Education Are Required
The law mandates a Code of Ethics and requires continuous professional development to keep practitioners informed and competent.
4. Why the RESA Law Matters to the Public
✔ It Protects You From Fraud
Only licensed practitioners can legally handle transactions, reducing the risk of scams and fake listings.
✔ It Ensures You Receive Accurate Information
Licensed brokers are trained to evaluate property documents, analyze pricing, and guide clients properly.
✔ It Creates a Safer, More Professional Real Estate Market
The law enforces standards so clients receive reliable, ethical, and transparent service.
✔ It Makes Real Estate Transactions Legally Compliant
From documentation to due diligence, licensed professionals ensure that every step follows proper procedures.
5. In Plain Words: What Is the RESA Law About?
It is a law designed to protect the public by making sure that only trained, tested, and licensed real estate professionals can practice real estate service in the Philippines.
If you’re buying, selling, leasing, or investing — working with a licensed professional is not just safer.
It’s the law.
FAQ: RESA Law (RA 9646) Explained
Q1: What is the RESA Law (RA 9646)?
The Real Estate Service Act of the Philippines (RA 9646) is a law that regulates the practice of real estate service in the country. It establishes qualification standards, licensure exams, supervision, and penalties for unauthorized practice.
Q2: Who is allowed to practice real estate service under RA 9646?
Only individuals who pass the licensure examination, hold a valid certificate of registration, and possess a professional identification card issued by the Professional Regulatory Board and the PRC may legally practice real estate service in the Philippines.
Q3: What are considered “real estate service practitioners” under the law?
Real estate service practitioners include:
Real estate brokers
Real estate appraisers
Real estate consultants
They are defined in Section 3(g) of RA 9646.
Q4: What acts are considered unauthorized practice of real estate service?
It is illegal for anyone to:
Practice or offer to practice real estate service
Advertise themselves as a real estate practitioner
Use titles that imply they are licensed
Without passing the licensure exam and securing required registration and identification cards.
Q5: Are real estate salespersons covered by the RESA Law?
Yes. Real estate salespersons must be accredited by the Board, must have at least two years of college, and must work under the direct supervision of a licensed real estate broker. They cannot independently sign agreements or negotiate transactions.
Q6: Can a salesperson earn commissions directly from clients?
No. Salespersons may only receive fees or commissions from the licensed real estate broker who supervises them.
Q7: Are corporations allowed to practice real estate service?
Yes — but only if the partnership or corporation is registered with the SEC and all authorized representatives are licensed real estate brokers, appraisers, or consultants.
Q8: What are the penalties for practicing real estate without a license?
Violators face:
A fine of ₱100,000 or more, or
2 years imprisonment or more, or
Both
Penalties are doubled for unlicensed practitioners.
Q9: Do real estate practitioners need to indicate their license number on documents?
Yes. Licensed practitioners must indicate their certificate of registration, license number, and APO number on all documents they sign or issue.
Q10: Is Continuing Professional Education (CPE) required?
Yes. The Board requires real estate practitioners to complete CPE programs as part of license renewal, ensuring they remain updated and competent.
Q11: How does the RESA Law protect the public?
RESA ensures:
Only qualified and licensed professionals can charge fees
Buyers and sellers are protected from fraud and malpractice
Real estate practitioners follow ethical and professional standards
Violations are penalized by law
These protections are grounded in the policy declaration of RA 9646.
Q12: What government bodies implement the RESA Law?
The law is implemented by:
The Professional Regulation Commission (PRC)
The Professional Regulatory Board of Real Estate Service (PRBRES)
They supervise examinations, registration, licensing, and enforcement.
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