Remman Ent vs PRC G.R. No. 197676, February 4, 2014

 

REMMAN & CREBA vs. PRBRES and PRC

G.R. No. 197676, February 4, 2014

 

Facts:

R.A. No. 9646, otherwise known as the “Real Estate Service Act of the Philippines” was signed into law on June 29, 2009 by President Gloria Macapagal-Arroyo. It aims to professionalize the real estate service sector under a regulatory scheme of licensing, registration and supervision of real estate service practitioners (real estate brokers, appraisers, assessors, consultants and salespersons) in the country.

On December 7, 2010, herein petitioners Remman Enterprises, Inc. (REI) and the Chamber of Real Estate and Builders’ Association (CREBA) instituted Civil Case No. 10-124776 in the Regional Trial Court of Manila, Branch 42. Petitioners sought to declare as void and unconstitutional the following provisions of R.A. No. 9646:

SEC. 28. Exemptions from the Acts Constituting the Practice of Real Estate Service. – The provisions of this Act and its rules and regulations shall not apply to the following:

(a) Any person, natural or juridical, who shall directly perform by himself/herself the acts mentioned in Section 3 hereof with reference to his/her or its own property, except real estate developers;

x x x x

SEC. 29. Prohibition Against the Unauthorized Practice of Real Estate Service. – No person shall practice or offer to practice real estate service in the Philippines or offer himself/herself as real estate service practitioner, or use the title, word, letter, figure or any sign tending to convey the impression that one is a real estate service practitioner, or advertise or indicate in any manner whatsoever that one is qualified to practice the profession, or be appointed as real property appraiser or assessor in any national government entity or local government unit, unless he/she has satisfactorily passed the licensure examination given by the Board, except as otherwise provided in this Act, a holder of a valid certificate of registration, and professional identification card or a valid special/temporary permit duly issued to him/her by the Board and the Commission, and in the case of real estate brokers and private appraisers, they have paid the required bond as hereto provided.

Petitioners contend that the assailed provisions of R.A. No. 9646 are unduly oppressive and infringe the constitutional rule against deprivation of property without due process of law.

Issue:

Whether Sections 28(a), 29, and 32 of [R.A. No. 9646] are unconstitutional for violating substantive due process.

 

Held:

No, R.A. No. 9646 is valid and constitutional.

Substantial distinctions do exist between ordinary property owners exempted under Section 28(a) and real estate developers, and the classification enshrined in R.A. No. 9646 is reasonable and relevant to its legitimate purpose.

Section 29 of R.A. No. 9646 requires as a condition precedent for all persons who will engage in acts constituting real estate service, including advertising in any manner one’s qualifications as a real estate service practitioner, compliance with licensure examination and other registration requirements including the filing of a bond for real estate brokers and private appraisers. R.A. No. 9646 aims to regulate the real estate service sector in general by professionalizing their ranks and raising the level of ethical standards for licensed real estate professionals.

R.A. No. 9646 was intended to provide institutionalized government support for the development of “a corps of highly respected, technically competent, and disciplined real estate service practitioners, knowledgeable of internationally accepted standards and practice of the profession.”  In approving R.A. No. 9646, the legislature rightfully recognized the necessity of imposing the new licensure requirements to all real estate service practitioners, including and more importantly, those real estate service practitioners working for real estate developers. Unlike individuals or entities having isolated transactions over their own property, real estate developers sell lots, houses and condominium units in the ordinary course of business, a business which is highly regulated by the State to ensure the health and safety of home and lot buyers.

R.A. No. 9646 is a valid exercise of the State’s police power. No right is absolute, and the proper regulation of a profession, calling, business or trade has always been upheld as a legitimate subject of a valid exercise of the police power of the State particularly when their conduct affects the execution of legitimate governmental functions, the preservation of the State, public health and welfare and public morals.

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