Real Estate Practice

RA 9646Real Estate Service Act of the PhilippinesPassed to Senate: May 12, 2009 Approved and signed into Law: June 29, 2009Took effect officially: July 30, 2009

Sec. 13 – scope of examination Sec. 14 – qualification of applicants for

examination Sec.20 – registration without examination Sec. 26- Surety bond 20,000 Sec. 28 – Exemptions from acts as practice

of Real Estate Service (own property, order of court, SPA w/o remuneration, public officers doing duty)

Sec. 36 – CPE 45 units or 15 units per yr for 3 yrs

Sec. 39 – Penalty; not less than 100,000 or 2 years imprisonment or both

PD 957The Subdivision and Condominium Buyers Protective DecreeJuly 12, 1976

• Sec. 17 – registration of sale shall be done by seller at RD

• Sec 25 – issuance of title: developer must deliver the title 6 months from full payment

• Sec. 30 – organization of Homeowner’s Association, done by owner or developer

• Sec. 32 – 1 phase = 10 has = 1 yr reglamentary period

• Sec. 39 – penalty violation: 20,000 or 10 yrs imprisonment

RA 7160Local Government Code of 1991

RA 8424Tax Reform Act of 1997

Agrarian ReformPD 27 Tenants Emancipation Decree (for rice and corn)

RA 3844Code of Agrarian Reform

RA 6657Comprehensive Agrarian Reform Law (amending RA 3844)June 15. 1988

RA 9700Act Extending CARP Law RA 6657

DAR Administrative Order No. 12Guidelines on conversion of agricultural land to non-agriOctober 25, 1994

RA 9225Dual Citizenship Law

RA 9189The Overseas Absentee Voting Act of 2003

Consulta Nos. 3543 and 3554Issued by Benedictor Ulep of LRA stating that waiver of foreign husband married to Filipina is no longer required in the registration of saleMarch 12, 2003

Land ReformPD 1517Urban Land Reform in the PhilippinesJune 11, 1978

RA 7279Urban Development Housing Act: law that favors the urban poorMarch 24, 1992

PD 2016Prohibiting the eviction of occupant of families from lands identified and proclaimed as APDs or ULRZs and exempting such land from payment of realty taxJanuary 23, 1996

Proclamation No. 1893 Declaring Metro Manila as ULRZSeptember 11, 1979

Proclamation No. 1967Declaring 244 APDs and ULRZs in Metro Manila (currently 284 APDs and ULRZs)

Buyers’ Protection and BenefitRA 6552 Maceda Law (Installment Buyers)August 26, 1972

PD 947Subdivision and Condominium Buyers Protective Decree July 12, 1976

PD 1216Defining “open space” in residential subdivision October 14, 1977

BP 220An act authorizing the ministry of Human Settlements (now HLURB) to establish and promulgate different levels of standards for economic and socialized housing

PD 1096

National Building Code

PD 1185 - Fire Code

PD 9904 Magna Carta for Homeowners’ and Homeowners’ Association

E0 71HLURB devolved function to LGU (Subdivisions’ development permit)

RA 4726Condominium LawJune 18, 1968

RA 7899Amended Sec 4 and 16 of RA 4726 (HLURB authorized to approve any amendment/revocation of the master deed with consent with simple majority) - 1995

RA 8763 Home Guaranty Corporation Act of 2000

RA 8974 Expropriation Law

HISTORY OF HLURBEO 419 (1973) – creation of Task Force on Human Settlements under Development Academy of the Philippines

PD 933 (1976) – TFHS was renamed into Human Settlement Commission

PD 13396 (1978) – HSC was renamed into Human Settlements Regulatory Commission (HSRC), the regulatory arm of the Ministry of Human Settlements

EO 648 (1981) – HSRC assumed functions of NHA on real estate management

EO 90 (1986) – renamed as HLURB (Housing and Land Use Regulatory Board) and National Shelter Program, designed HLURB as the sole regulatory body for housing and land development under Housing and Urban Development Coordinating Council (HUDCC)

Realty InvestmentPD 471 – May 24, 1974 Fixing a maximum period for the duration of lease of private lands to aliens 25 years renewable another 25 years

RA 7652

Allowing Long term lease of private lands by foreign investors that is 50 years renewable once for 25 years

Rentals of Residential PropertiesRA 9653 – Rent Control Law of 2009 (rent increase not more than 7%, 2 months deposit, 1 month advance)

Land RegistrationAct 496 – The Land Registration Act – November 6, 1902RA 26 – An act providing a special procedure for the reconstitution of Torrens title lost or destroyed (September 25, 1946)

RA 8371 - Indigenous People Rights Act

RA 1529 The Property Registration Decree June 11, 1978

RA 6732An act allowing admin reconstitution of original copies of certificate of titles lost or destroyed due to fire, food and other force majeureJune 8, 1989

Spanish Land titlesPD 892 – discontinuance of the Spanish Mortgage Law system of registration and of the use of Spanish titles of land registration proceedings. Spanish titles must be registered within 6 months or up to August 16, 1976 or titles cannot be anymore used as proof of ownership.February 16, 1976

Tile No. 4136Mariano San Pedro Estate

On SquattingPD 772 – Anti squatting LawAugust 20, 1975

RA 7279Urban Development Housing Act – Law on professional squatters and squatting syndicate

On rights of balikbayan or Natural-Born Filipino citizensBP 185RA 8179

On Extra-Judicial Settlement of EstateSec 1 of Rule 74: Revised Rules of Court

If the decedent of left no will and no debts, the heirs are al of age, they may divide the estate among themselves through a public document (extra-judicial settlement of

estate) or if there is only one heir, affidavit of self-adjudication.

EO 209 – Family CodeRA 9255 – an act allowing illegitimate children to use the surname of their father (February 24, 2004)RA 9858 – an act providing the legitimization of children born to parents below marrying age RA 6809 – Age of majority commences at 18 years old (December 13, 1989)

On Land Use PlanningEO 72 – Providing for the preparation and implementation for the comprehensive land use plan by the local government unitMC 54 – guidelines of RA 7160 authorizing cities and municipalities non-agricultural useArt. 1458 – Meaning of Contract of SaleArt. 1543 – No lease for than 99 years shall be validArt. 1106 – Acquisition of land by prescriptionArt. 1403 – Statute of FraudArt. 476 – Quieting of titleArt. 649 – Easement of right of way; person can demand a right of way thru neighboring estates after just compensation

On EcologyPD 1586 – establishment of an Environmental Impact Statement System (EISS) – 1978

Proclamation No. 2146 – proclaiming certain areas and types of projects as environmentally critically and within the scope of the requirements of PD 1586

RA 8749 – Clean Air ActRA 10121 – Disaster Risk Reduction Management New Civil Code referencesArt. 429 – doctrine of self-help (right to exclude any person)Art. 438 – Hidden treasuresArt. 2132 – AntichresisArt. 1403 – Statute of Frauds

GENERAL/ FUNDAMENTALS OF REAL ESTATE SERVICE

Official Seal for PRBRES symbols:Land – real estateStructures – improvements on the LandTrees and Fruits – agricultural produceGreen Lines – real estate practitionersRed, White and Yellow – colors of the Philippine FlagBlue – color of serviceSun and rays – life and lightRising sun – vital role of real estate practitionersGold – ethical standards and prosperityMap of the Philippines – Philippine Archipelago

Fundamentals of Property OwnershipOwnership = independent right of person to exclusive enjoyment and control of a property FEE SIMPLE – “bundle of rights” (inherent and appurtenant to ownership)

- Usage of one right affects the other rights

Right to:o Possesso Use and enjoyo The fruitso Disposeo Vindicate or recover

Surface, Sub Surface and Air RightsWater rights – Riparian (stream, rivers and creeks) and Lattoral (sea)rights

Right to Hidden Treasure: General Rule: Hidden treasure belongs to owner of the land or owner where it is found. If treasure found is interest to science or arts, State may buy at just compensation. Exceptions:

1. Discovery made on property of another – ½ to finder. If trespasser, nothing.

Rights of Accession: General Rule: right by accession of owner to everything which is produced thereby. (naturally or artificially)

Best evidence of ownership: Torrens Certificate of Title

Modes of acquiring title:Private Grant (sale by private persons), Public Grant (Gov’t), Involuntary Grant (foreclosure sale), Inheritance, Reclamation, Accretion, Prescription, Revision

Right to own:

General Rule – Only Filipinos Citizens and Corporation (atleast 60% are Filipinos)Exceptions - Aliens can acquire if:

a. Acquisition before 1935 Constitutionb. Hereditary succession if legal heir acquirec. Not more than 40% in a condominium

projectd. Former natural born Filipino Citizens

Formal Natural Born Filipino Citizens limitations, Residential Purpose: 1,000 sqm. – urban land

1 hectare – rural/natural landBusiness Purpose: 5,000 sqm. – urban land

3 hectares – rural/natural land

Lands of public domain: Agricultural, Forest or Timber, Mineral and National Parks

Alienable Lads of the public domain shall be limited to agricultural lands.

Land Alienable and Disposable. refers to those lands of the public domain which have been the subject of the present system of classification and declared as not needed for forest purposes.

Filipino citizens may acquire alienable lands not more than 12 hectares or lease not more than 00 hectares.

Private corporations cannot acquire but can lease not to exceed 1,000 hectares and not exceeding 25 years.

Code of EthicsSec. 35 of RA 9646 mandates for a National Code of Ethics and Responsibilities for RE Practice.

Declaration of PrinciplesRules of conduct and practice to the gov’t, public, client, fellow practitioners and his organization

Penalty1st – reprimand2nd – Minimum 2 months not to exceed 6 months suspension of AIPO membership3rd – AIPO membership suspension and recommendation for license suspension