What is the “Grandfather clause” of the RESA Law?

The “Grandfather clause” of  the RESA Law is the basis for the registration without examination of DTI licensed real estate professionals with the PRC. The Grandfather clause is Section 20, Article III of R.A. No. 9646, also known as the “Real Estate Service Act of the Philippines”, and Section 20, Rule III of Board Res. No. 02, also known as the “Rules and Regulations of R.A. No. 9646”.

Rather than include the grandfather clause with every new list of real estate professionals approved for registration without examination , I’ll just post it here and link them to this post.

The Grandfather clause also lists down the real estate license requirements that must be submitted to the PRC by qualified individuals.

Section 20, Rule III of the RESA Law IRR

SEC. 20. Registration Without Examination. Upon application and payment of the required fees, the following shall be registered, and shall be issued by the Board and the Commission a certificate of registration and a professional identification card without taking the prescribed examination:

(a) Those whose, on the date of the effectivity of R.A. No. 9646 or as of 30 July 2009, are already licensed as real estate brokers, real estate appraisers or real estate consultants by the Department of Trade and Industry (DTI) by virtue of Ministry Order No. 39, as amended: Provided, that they are in active practice as real estate brokers, real estate appraisers, and real estate consultants, and that they have undertaken relevant Continuing Professional Education (CPE) or Continuing Education Program (CEP) to the satisfaction of the Board: Provided, further, that the following practitioners shall be allowed to register:

1. Any holder of a valid DTI license who has earned fifteen (15) Continuing Education Program (CEP) or CPE credit units;

2. Those who had failed to renew their DTI License prior to 30 July 2009 but who have earned twenty-four (24) CEP credit units from accredited service providers as per M.O. 39 or CPE credit units from CPE Council Accredited Provider from 2007 to July 30, 2011;

3. Those who had passed the 2009 & 2008 licensure examinations given by the DTI but who had failed to obtain their license upon the effectivity of the R.A. No. 9646 and who have earned fifteen (15) CEP or CPE credit units;

4. Those who had passed the 2007 licensure examinations given by the DTI but who had failed to obtain their license upon the effectivity of the R.A. No. 9646 and who have earned eighteen (18) CEP or CPE credit units;

5. Those who had passed the DTI licensure examinations in 2006 and prior years but who had failed to obtain their license upon the effectivity of R.A .No. 9646 and who have earned one hundred twenty (120) CEP or CPE credit units;

Provided, finally, that real estate practitioners falling under the above-described categories who fail to comply with the necessary CPE requirements within two (2) years after the effectivity of R.A. No. 9646, on or before 30 July 2011, shall be required to take the Board licensure examination for real estate service practitioners;

(b) Assessors and appraisers who, on the date of the effectivity of R.A. No. 9646 or as of 30 July 2009, hold permanent appointments and are performing actual appraisal and assessment functions for the last five (5) years, have passed the Real Property Assessing Officer (RPAO) examination conducted and administered by the Civil Service Commission (CSC) in coordination with the Department of Finance (DOF), and have undertaken relevant CPE to the satisfaction of the Board; and

(c) Assessors and appraisers who, on the date of the effectivity of R.A. No. 9646 or as of 30 July 2009, hold permanent appointments and have at least ten (10) years actual experience in real property appraisal or assessment and have completed at least one hundred twenty (120) hours of accredited training on real property appraisal conducted by national or international appraisal organizations or institutions/entities, duly certified by the Department of Finance (DOF) or any other pertinent national government agencies or Government Owned and Controlled Corporations (GOCC) as the case may be, recognized by the Board and relevant CPE credit units to the satisfaction of the Board.

Those falling under categories (b) and (c) shall register with the Board after they shall have complied with the requirements for registration as real estate appraisers, and have completed twenty four (24) CPE credit units. Provided, that those seeking to be licensed to a new credential level shall be required to take the pertinent Board licensure examination for real estate service practitioners.

Those so exempt under the aforementioned categories shall file their application within two (2) years from the effectivity of Republic Act No. 9646 or until 30 July 2011. Provided, that the renewal of the professional identification card is subject to the provisions of Section 17, Art. III of R. A. No. 9646.

An applicant for registration without examination must submit the following documents:

1. Original and photocopy of Certificate of Live Birth / Birth Certificate (NSO), or valid Philippine passport, or any other proof of citizenship;

2. Original and photocopy of Certificate of Registration (COR) and / or Professional Identification Card (PIC) or DTI Licenses;

3. DTI Certification of Rating (for those who passed the examinations but failed to obtain their license),

4. Original and photocopy of NBI Clearance,

5. Duly notarized CEP/CPE Certification,

6. Civil Service Commission Certification, DOF, or any other national government agencies, or GOCC Certification (assessors or government appraisers), or any certification of accredited seminar/training provider,

7. Appointment papers and service records to prove appraisal or assessment experience (for assessors or government appraisers),

8. Original and photocopy of Marriage Certificate / Contract of Marriage (NSO) (if applicable),

9. Four (4) passport size colored photos with complete nametag in white background, original and photocopy of community tax certificate (CTC), and surety bond for Real estate brokers and private real estate appraisers.

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To our success and financial freedom!

Jay Castillo

Real Estate Investor

PRC Real Estate Broker Registration No. 3194
Blog: https://www.foreclosurephilippines.com
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Text by Jay Castillo and Cherry Castillo. Copyright © 2011 All rights reserved.

Full disclosure: Nothing to disclose.

PS. Join me at the next Think Rich Pinoy Seminar by Larry Gamboa which will be on May 28, 2011! Yes, I will be attending and I hope to see you there. Click here for more details.