Prohibited Acts & Penalties
Know the grounds for license revocation under RA 9646. from fraud and malpractice to unethical conduct. Understand the criminal penalties and corporate liability provisions.
Grounds for License Revocation or Suspension
“The Board may, after giving proper notice and hearing to the party concerned, revoke the certificate of registration and the professional identification card, or cancel the special/temporary permit of a real estate service practitioner, or suspend him/her from the practice of the profession on any of the following instances hereunder: (a) Procurement of a certificate of registration and/or professional identification card, or special/temporary permit by fraud or deceit; (b) Allowing an unqualified person to advertise or to practice the profession by using one's certificate of registration or professional identification card, or special/temporary permit; (c) Unprofessional or unethical conduct; (d) Malpractice or violation of any of the provisions of this Act, its implementing rules and regulations, and the Code of Ethics and Responsibilities for real estate service practitioners; and (e) Engaging in the practice of the profession during the period of one's suspension.”
What This Means
Section 19 lists five grounds for license revocation or suspension. The Board must give proper notice and hearing before acting. this is due process. The most common violations include: lending your license to unqualified persons, professional negligence, and violating the Code of Ethics. Note that practicing during suspension is itself a separate ground for revocation.
- Fraud or deceit in obtaining the license
- Lending your license to unqualified persons
- Unprofessional or unethical conduct
- Malpractice or violation of RA 9646, IRR, or Code of Ethics
- Practicing during a suspension period
- Due process required: proper notice and hearing before revocation
Real-World Scenario
Broker Garcia has a busy practice. To handle more clients, she gives her PRC ID and authorization letters to her unlicensed nephew, allowing him to show properties and negotiate deals using her credentials.
What ground for revocation applies?
Corporate Practice Requirements
“No partnership or corporation shall engage in the business of real estate service unless it is duly registered with the Securities and Exchange Commission (SEC), and the persons authorized to act for the partnership or corporation are all duly registered and licensed real estate brokers, appraisers or consultants, as the case may be. The partnership or corporation shall regularly submit a list of its real estate service practitioners to the Commission and to the SEC as part of its annual reportorial requirements. There shall at least be one (1) licensed real estate broker for every twenty (20) accredited salespersons.”
What This Means
Realty firms must meet strict requirements: SEC registration, all authorized persons must be licensed, at least 1 broker per 20 salespersons, and branch offices must have their own licensed practitioners. Marketing/sales divisions of developers must be headed by a full-time licensed broker. Violations make the officers personally liable.
- Must be SEC-registered
- All persons authorized to act must be licensed (broker, appraiser, or consultant)
- Minimum ratio: 1 licensed broker per 20 accredited salespersons
- Must submit practitioner list to PRC and SEC annually
- Marketing/sales divisions must be headed by a full-time licensed broker (Section 32(b))
- Branch offices must be manned by a licensed practitioner (Section 32(c))
Real-World Scenario
A real estate developer's marketing department has 60 salespersons selling their condo projects. The department is headed by a marketing manager who has a business degree but no PRC real estate license.
What violations are present?
Criminal Penalties
“Any violation of this Act, including violations of implementing rules and regulations, shall be meted the penalty of a fine of not less than One hundred thousand pesos (P100,000.00) or imprisonment of not less than two (2) years, or both such fine and imprisonment upon the discretion of the court. In case the violation is committed by an unlicensed real estate service practitioner, the penalty shall be double the aforesaid fine and imprisonment. In case the violation is committed, by a partnership, corporation, association or any other juridical person, the partner, president, director or manager who has committed or consented to or knowingly tolerated such violation shall be held directly liable and responsible for the acts as principal or as a co-principal with the other participants, if any.”
What This Means
RA 9646 imposes criminal (not just administrative) penalties. Any violation carries at least P100,000 fine or at least 2 years imprisonment, or both. Unlicensed practitioners get double. For corporate violators, the law pierces the corporate veil. officers who committed, consented to, or tolerated the violation are personally liable as principals. Administrative sanctions (license revocation) can be imposed on top of criminal penalties.
- Any violation: at least P100,000 fine or at least 2 years imprisonment, or both
- Unlicensed practitioners: DOUBLE the penalty
- Corporate officers personally liable if they committed, consented, or tolerated
- Officers liable as "principal or co-principal". not merely accessory
- Administrative sanctions (Section 19) can be imposed alongside criminal penalties
- No stated upper limit. court has full discretion on maximum
Real-World Scenario
A corporation sets up a "property matching" service online. Unlicensed staff negotiate prices, draft contracts, and collect fees from both buyers and sellers. The company president knows about and approves this practice.
What penalties apply?
Frequently Asked Questions
Can a real estate license be permanently revoked?
Yes. Under Section 19, the Board can revoke a certificate of registration. However, Section 21 allows reinstatement after 2 years from revocation, upon application, CPE compliance, and for reasons deemed proper by the Board.
Is there an upper limit to the fine under RA 9646?
The law states "a fine of not less than" P100,000. it sets a floor but no ceiling. The maximum is at the court's discretion. For unlicensed practitioners, the minimum doubles to P200,000.
Can I report an unlicensed real estate practitioner?
Yes. You can file a complaint with the PRC Board of Real Estate Service. Under Section 37, the Commission's lawyers act as prosecutors against illegal practitioners, and "duly constituted authorities of the government shall likewise assist the Board and the Commission in enforcing the provisions of this Act."