“Foreign real estate service practitioners can only be granted the of practicing this profession if the origin country of the person also allows Filipinos to practice real estate service in their country.”
– Atty. Ernesto C. Perez II, CTEP, Real Estate Attorney
This article was first published on August 18, 2009. It is now more than 14 years old and is time to update it because its information is still relevant to this day despite the amendments to the PRC Charter. The updates will be in blue fonts.
By Realttorney®
Can foreigners become licensed real estate service practitioners in the Philippines? The categorical answer is YES.
However, it does not seem apparent when you look at the qualifications listed in Section 14 of Republic Act No. 9646, popularly known as the “Real Estate Service Act” (RESA). The first qualification provided therein states that the candidate for the licensure examination must be “a citizen of the Philippines.”
However, RESA does allow foreigners to have the opportunity to become licensed real estate service practitioners in the country under Section 24 (Foreign Reciprocity).
The practice of real estate service is very much similar to the practice of medicine and all other professions that are regulated by the Professional Regulatory Commission (PRC), according to its mandate based on Presidential Decree No. 223, now Republic Act No. 8981 – The PRC Modernization Act of 2000.
RESA grants the right to practice real estate service to a person after he or she passes the licensure examination given by the Professional Regulatory Board of Real Estate Service (See Section 12, RA 9646). If we are to read Sections 12, 14, and 24 side by side, Filipinos and foreigners who want to become licensed real estate service practitioners in the Philippines must first be qualified to take and pass the licensure examination.
Numerous decisions of the Supreme Court have long recognized as a valid exercise of governmental power the passage of legislation and administrative regulations requiring those who wish to practice certain professions to take and pass licensure examinations. For further reference on this point, you can read the recent case of BOARD OF MEDICINE, ET AL., vs. YASUYUKI OTA (G.R. No. 166097, July 14, 2008).
It must be stressed that the license to practice real estate service in the country is a privilege or franchise granted by the government. The power to regulate and control the practice of real estate service includes the power to regulate admission to the ranks of those authorized to practice real estate service.
Now, what does a foreigner have to do to be qualified to take the licensure examination for real estate service? Under Section 24, the foreigner must prove that his country “specifically allows Filipino real estate service practitioners to practice within its territorial limits on the same basis as citizens of such foreign country.”
How does a foreigner go about proving reciprocity? If you read RESA you cannot find the answer. The answer lies in Section 7 (j) of Rep. Act No. 8981 which defines the extent of the power of PRC to grant licenses.
The said Section states that the PRC may, upon recommendation of the Professional Regulatory Board, approve the registration of and authorize the issuance of a certificate of registration/license and professional identification card with or without examination to a foreigner who is registered under the laws of his state or country and whose certificate of registration issued therein has not been suspended or revoked.
It should be emphasized that the requirements for the registration or licensing in said foreign state or country are substantially the same as those required and contemplated by the laws of the Philippines and that the laws of such foreign state or country allow the citizens of the Philippines to practice the profession on the same basis and grant the same privileges as those enjoyed by the subjects or citizens of such foreign state or country.
This provision means that the PRC is authorized to prescribe additional requirements or grant certain privileges to foreigners seeking registration in the Philippines if the same privileges are granted to or some additional requirements are required of citizens of the Philippines in acquiring the same certificates in the foreign country.
In addition, the Commission may, upon recommendation of the Board concerned, authorize the issuance of a certificate of registration/license or a special temporary permit to foreign professionals who desire to practice their professions in the country under reciprocity and other international agreements; consultants in foreign-funded, joint venture or foreign-assisted projects of the government, employees of Philippine or foreign private firms or institutions pursuant to law, or health professionals engaged in humanitarian mission for a limited period of time.
Finally, agencies, organizations, or individuals whether public or private, who secure the services of a foreign professional authorized by law to practice in the Philippines for the reasons aforementioned, shall be responsible for securing a special permit from the Professional Regulation Commission (PRC) and the Department of Labor and Employment (DOLE), according to PRC and DOLE rules.
Now, must the foreigner demonstrate to the PRC that the requirements of foreign law are practical and attainable by Filipinos? Or must the foreigner prove first that a Filipino has been granted a license and allowed to practice real estate service in said country?
The case of the Board of Medicine vs. Ota says that “it is enough to prove that the laws in the foreign country permit a Filipino to get license and practice therein.” Hence, a foreigner need not prove first that a Filipino has already been granted a license and is actually practicing in his/ her country to be qualified for the licensure examination or be given a license without examination.
To be required to do so would be an arbitrary exercise of the powers of the PRC as was held in the Ota case. All the foreigner has to do is to submit “competent and conclusive documentary evidence, confirmed by the Department of Foreign Affairs, showing that his country’s existing laws permit citizens of the Philippines to practice the profession under the rules and regulations governing citizens thereof.”
Simply put, a foreigner must submit to the PRC a duly notarized English translation of the foreign law that grants him/her the right to practice real estate service in that foreign country, duly authenticated by the Consul General of the Philippine Embassy of the particular country. Now, this requirement is no longer found in Rep. Act No. 8981. And, until the requirements of the Ota case are abandoned by the Supreme Court, it is still considered as part of the law of the land.
Finally, what about foreigners who are licensed real estate service practitioners in other countries? Can they practice their profession in the Philippines? YES, they can.
For example, Realtors® from the United States can practice their profession in the country upon the recommendation of the Professional Regulatory Board of Real Estate Service (Board) to the PRC. Only after the PRC has approved the registration as well as authorized the issuance of a certificate of registration with or without examination. [See Section 7 (j), Rep. Act No. 8981]
If a US Realtor® is issued a certificate of registration with or without examination by the PRC then he/she can practice as a real estate service professional in the country. However, if this does not appeal to the US Realtor® then he/she has a final option.
It is also provided in RESA that the “upon application and payment of the required fees and subject to the approval of the Commission, the Board may issue special/temporary permit to real estate service practitioners from foreign countries whose services are urgently needed in the absence or unavailability of local real estate service practitioners for the purpose of promoting or enhancing the practice of the profession in the Philippines.” (Section 23)
Hence, if the US Realtor® is issued a special/temporary permit by the PRC then he/she can probably serve a foreign corporation that would want to lease land or any other real property in the country that foreigners can purchase.
Moreover, under Section 7 (l), Rep. Act No. 8981, the Commission has the power to supervise professionals who were former citizens of the Philippines and who had been registered and issued a certificate of registration and a professional identification card prior to their naturalization as foreign citizens, who may, while in the country on a visit, sojourn or permanent residence, practice their profession: Provided, That, prior to the practice of their profession they shall have first been issued a special permit and updated professional identification card by the Board concerned subject to approval by the Commission and upon payment of the permit and annual registration fees.
However, it seems absurd for the PRC to issue a temporary or special permit to a foreign real estate practitioner due to the unavailability of Filipino licensed real estate service practitioners in the country at this time.
I think with the more than 40,000 licensed real estate practitioners in the country any foreign or local corporation will be able to find a professional to their liking who will serve them with utmost competence, respect, and responsibility as compared to a foreign real estate service practitioner.
But, should you be able to provide me with a better example of why the PRC will issue a special/temporary permit to a foreign real estate service practitioner then please do inform me.
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Atty. Jojo is a real estate attorney, an estate planning attorney, a licensed real estate broker, and a PRC-accredited Lecturer/Speaker for Training Programs in Real Estate. He is committed to helping new and veteran real estate service practitioners be well-informed of the latest laws, rules, regulations, and information relevant to the real estate service sector.
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