Real Estate Ethics & Responsibilities: Guidelines & Cases Module 3 Maita H. Siquijor Principal Real Estate Broker /PRC Accredited Trainer EstateClass.com

Objectives: To provide a guide for ethical and responsible conduct in online marketing & practitioner relations To provide cases of how individual practitioners and virtual communities resolve issues in safeguarding real estate practitioner rights, implementing ethical conduct & responsibility online

Real Estate Service Act (R.A. 9646) From “ The Real Estate Service Act (RESA) R.A of 2009” Art. II, Section 5 (f, g). Powers and Functions of the Board. - The Board is hereby vested the following powers and functions.... (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

Real Estate Service Act (R.A. 9646) Art. II, Section 5 (h). Powers and Functions of the Board. - The Board is hereby vested the following powers and functions.... (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 From “ The Real Estate Service Act (RESA) R.A of 2009”

Real Estate Service Act (R.A. 9646) Art. IV, 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. From “ The Real Estate Service Act (RESA) R.A of 2009” (in relation to creation of the proposed National Code of Ethics & Responsibilities)

Coverage of Proposed National Code of Ethics and Responsibilities for Real Estate Service Practice Article II - -GENERAL PROVISIONS AND DECLARATION OF PRINCIPLES 1. Compliance requirements – all practitioners shall abide by, commit and comply with all the laws, standards, decrees, orders, and rules and regulations enacted or promulgated by the duly constituted government authorities. 2. High ethical and moral standards – the practitioners shall observe at all times objective moral standards in the practice of real estate service with good governance in relation with the client/s and the community and in service to the nation and the Filipino people. 3. Adequate professional competence – a real estate service practitioner is required to have adequate education, value formation, knowledge, competence and expertise in real estate service. 4. Development of professional practice – the designated APO (Accredited Professional Organization) and PRB- RES shall develop and nurture through proper and effective regulation and supervision a corps of technically competent, responsible and respected professional real estate practitioners whose standards of practice and service shall be globally competitive and will promote the growth of the real estate industry.

Coverage of Proposed National Code of Ethics and Responsibilities for Real Estate Service Practice Article II - -GENERAL PROVISIONS AND DECLARATION OF PRINCIPLES 5. Growth of Professional Relationships – the spirit of unity, harmony, camaraderie, cooperation and professional relationship among the practitioners is essential and shall be promoted under the principle of subsidiary. 6. The Golden Rule – “Treat others as you like them to treat you” shall be observed in all the dealings and relation of the practitioners with clients, follow practitioners, the organization to which they belong and the general public. 7. Oath – the practitioner shall be bound to practice real estate service in an exemplary manner with the highest interest of the client and public foremost in his mind.

Rules of Conduct and Responsibilities Article III, Secs. 1-5 To the Government To the Public To the Clients To fellow Practitioners To the Accredited and Integrated Professional Organization

Sanctions & Penal Provisions for Violations Violations against the National Code of Ethics, R.A and any of its implementing rules and regulations or will be referred for disciplinary action by the Professional Regulation Commission (PRC) as recommended by the Philippine Regulatory Board-Real Estate Service (PRB-RES).

Ethical Listing of Properties via Authority to Sell Through direct authority to sell or lease expressly obtained from the registered owner No listing of properties in the MLS nor between RESPs without listing broker’s verification of all the property’s pertinent details, including ocular inspection Properly solicited extension of authority to sell to a 3 rd party by the buyer’s broker No publication, circulation or sharing of listing broker’s materials or photos in online or printed media without express permission of the listing broker

Online Verification of Licensed Professionals

RESPs Should Get Listing Broker’s Permission to Re-Post Listings w/ Proper Attribution or Instruction

Regulation & Enforcement via Community-Driven Ethics & Policies Online Multiple Listing Service Guidelines/Practices:

Public Online Ads Site: Disclosures on Data Use & Solicitation

Policy Formation by Formal Administrators or Self-Regulation by Discussion Leaders (FB Case)

Support of Licensed Sellers by Developers Publishing accredited brokers and salespersons in their website Developers to provide right to use logos (e.g. “Accredited Real Estate Broker/Agent”) to help public verify that real estate practitioners/consultants/in-house agents, with linkback to developer site. Impose that all sellers publish their PRC license or accreditation numbers in all their online ads or sites

References: ”An Overview of Code of Ethics & Responsibilities of RESPs” by Ramon R.A. Cuervo III accessed at and-responsibilities-of-resps/ and-responsibilities-of-resps/ Real Estate Service Act (9646) of 2009 accessed a “Code of Ethics and Responsibilities” accessed athttp:// of-Ethics-Responsibilitieshttp:// of-Ethics-Responsibilities “Conscience, Ethical Behaviour and Professional Prestige” by Ramon RA Cuervo III accessed at professional-prestige/ professional-prestige/ “Realty Code of Ethics” by Roberto Capili, Sunstar Baguio accessed at Professional Regulation Commission –