Real estate group files petition for declaratory relief vs. ‘anti-poor’ RESA law

A property sector advocacy group on Tuesday filed a class action petition seeking declaratory relief to amend the decade-old Real Estate Service Act of 2009 (RESA), which it claimed have “anti-poor” provisions that contributed to a 6.75-million housing backlog.

The A Better Real Estate Philippines (ABREP) movement filed the petition before the Makati Regional Trial Court.

In a virtual press conference, ABREP president Anthony Leuterio said the filing aims to promote inclusivity and the use of technology in the real estate industry.

“RESA is anti-poor because it forces unnecessary educational requirements that drive the cost of becoming a practitioner astronomically high,” said Leuterio.

He pointed out that under Section 14 of RESA, applicants for the Professional Regulation Commission’s (PRC) broker licensure exam are required to hold a four-year degree in Bachelor of Science in Real Estate Management (BSREM).

He emphasized that the provision is an “unnecessary” educational requirement that “needlessly drives up the cost of becoming a real estate broker.”

The degree alone can cost up to P300,000 to complete, making it the most expensive and onerous broker licensure process in the world.

As an alternative, he suggested decreasing BSREM’s units to those that are required to the practice.

For his part, National Real Estate Association (NREA) president Benny Cabrieto said that such a requirement makes it difficult to sell units, therefore increasing housing backlog “due to the lack of salespersons.”

“There are less than 100 BSREM graduates per year, and not all pass the board. Even the good schools do not offer this course,” Cabrieto said.

ABREP also took note of the overlapping regulatory authority between the PRC and Department of Human Settlements and Urban Development (DHSUD) created by RESA, which, it said, not only makes the process of licensure inefficient but also exposes potential practitioners to redundant registration costs.

“Bakit pinapahirapan natin ang mga salesperson? At the end of the day, there is a developer and broker who monitor the agents,” said Leuterio.

“It will take you six months to one year to get licensed and there is a large amount of money involved. To comply with the accreditation for salespersons, it will cost up to P30,000 if you are far from any DHSUD or PRC offices,” he added.

Fewer available practitioners in an industry that is already notorious for fluctuating employee retention rates, Leuterio said, will only aggravate the backlog, which the DHSUD has previously stated will balloon to approximately 22 million by 2022 if unaddressed.

“Our intent with the filing of the petition for declaratory relief is to start overhauling the industry’s regulatory framework to make the profession more inclusive and accessible,” said ABREP partner and legal advisor Atty. Estrella Elamparo.

Among of the most controversial provisions in RESA is the Section 32, which requires that corporations have at least one licensed broker for every 20 accredited salespersons, a provision that Elamparo said is “arbitrary” and was not deliberated upon according to House and Senate records.

This is not the first time that RESA has been challenged.

The Chamber of Real Estate Builders’ Association (CREBA) also attempted to get lawmakers to pay attention to amendments in previous years.

CREBA national president Noel Cariño emphasized that the provisions not only affect practitioners, but also developers.

“We are not anti-regulatory, but the problem lies in the 1-is-to-20 provision. Where did you get that number?” said Cariño.

“Now, we are saying tech will allow you to reach as many people as you want, but how can you say that the ‘magic 20’ will ensure optimal real estate marketing?” he asked.

The 1-is-to-20 rule also has implications surrounding the development and use of technology in the real estate industry, said Leuterio.

The ABREP president suggested that there have been cases where web platforms designed to connect salespersons to buyers have been misconstrued as being structured the same as traditional brokerage firms.

As a result, salespersons have allegedly been falsely accused of violating the 1-is-to-20 rule.

“RESA is anti-technology as it was crafted in the pre-automation era, at a time where we couldn't imagine the level of technology we have now,” said Leuterio.

Leuterio also highlighted RESA’s failure to promote equal opportunity for local real estate practitioners, stating that the law’s stringency has resulted in much of the industry going underground, resulting in a breeding ground for “colorums.”

“It is anti-Pinoy because it fails to promote equal opportunity for Filipinos while unauthorized foreign agents continue to operate unchecked,” said Leuterio.—AOL, GMA News