Have you ever wondered what principles real estate professionals live by? Whether you’re a seasoned professional or just dipping your toes into the property pool, understanding the ethical landscape is crucial. Dive into the National Code of Ethics for Real Estate Service, where we blend serious business with a sprinkle of fun. Imagine navigating the bustling real estate market with a moral compass as your guide, ensuring every deal is profitable and ethical. Ready to explore the golden rules that make the real estate world go round? Let’s embark on this journey together and unlock the secrets to becoming a respected and successful real estate practitioner!

What is a Code of Ethics?

Imagine embarking on a grand adventure without a map or compass. A code of ethics is the guiding star for real estate professionals, ensuring they act in ways that uphold the industry’s values and integrity. It’s a set of principles designed to instruct professionals on how to navigate their roles ethically and responsibly. By understanding these guidelines, real estate practitioners can make decisions that benefit all stakeholders, from clients and colleagues to the public and government.

Meet PRBRES: The Guardians of Real Estate Ethics

Who keeps the real estate world in check? Meet PRBRES, short for the Professional Regulatory Board of Real Estate Service. These dedicated pros are the superheroes of the real estate industry, ensuring everything runs smoothly and ethically. They set the rules, conduct those nerve-wracking licensure exams, and issue the all-important certificates that let you practice. But that’s not all! They also keep a watchful eye on licensed practitioners, making sure everyone plays by the rules. Think of PRBRES as the guardians of your real estate journey who ensure fairness, integrity, and professionalism at every turn.

Under Section 5 (f), Article II and Section 35, Article IV of R.A. No. 9646, otherwise known as the “Real Estate Service Act of the Philippines,” the PRBRES is also responsible for adopting and promulgating the hereunder “National Code of Ethics and Responsibilities for Real Estate Service Practice,” which will be discussed further later in the blog. 

Policy of the State

The state plays a vital role in boosting economic activity and revenue in real estate. To help with this, it aims to nurture technically competent, responsible, and respected real estate service practitioners who adhere to clear standards. But what do these standards entail? They’re about staying competitive globally and fueling the vibrant growth of our real estate industry. 

Being a competent, responsible, and respected real estate service practitioner means having a set of general principles to adhere to. These are the following:

• Principle of Solidarity: “The spirit of unity, harmony, camaraderie, cooperation and professional relationship among the practitioners is essential.”
• The Golden Rule: “Do unto others as you would have them do unto you.”

National Code of Ethics and Responsibilities for Real Estate Service Practitioners

Embedded within the real estate industry fabric are the guiding principles that uphold integrity, competence, and excellence among its practitioners. The National Code of Ethics and Responsibilities for Real Estate Service Practitioners is a beacon, outlining standards that promote professionalism and drive the sector forward. Let’s delve into what these principles mean and how they shape the landscape of real estate practices today.

Responsibility in relation to the PUBLIC

When serving the public, real estate professionals are responsible for social good. They must safeguard the public interest by ensuring only licensed experts handle real estate matters. Additionally, ethical practitioners prioritize transparency by disclosing all relevant details about properties in their advertisements, empowering buyers and sellers alike. In short, a practitioner should have COLDS:

• Confidentiality
• Obedience
• Loyalty
• Disclosure
• Social Responsibility

Responsibility in relation to the CLIENTS

Clients in real estate are the cornerstone of every transaction. They rely on professionals to safeguard their interests and guide them through the complexities of property transactions with integrity and expertise. Thus, it’s only fair that professionals also have ethics and responsibilities to adhere to for their clients so that trust is not broken. 

Real estate professionals must stay informed about current laws and government policies to ensure justice and fairness. They should only accept compensation from their broker. This ensures transparency and accountability in financial transactions. When setting prices, they should avoid overpricing while considering strategies like net listings or innovative marketing approaches to maximize value for sellers. 

Of course, one should never forget that ethical conduct requires practitioners to prioritize their clients’ interests with loyalty and fidelity while respecting the concerns of all parties involved. They do this by never accepting fees or benefits from anyone other than their client without full disclosure and consent from all parties. Additionally, they must adhere to standardized and fair professional fees recommended by accredited organizations, ensuring transparency and professionalism in every transaction. 

Responsibility in relation to the GOVERNMENT

In real estate, integrity is paramount. A dedicated real estate professional should never entertain the idea of offering, splitting, or rebating commissions, fees, or any form of compensation with individuals who aren’t duly licensed or accredited. This commitment ensures that every transaction upholds ethical standards, protecting both clients and the profession’s integrity. In short, do not violate the law. We owe it to the government to be socially responsible professionals, as they are the ones who help nurture individuals in real estate. Otherwise:

“Ignorantia legis non excusat”

or

“Ignorance of the law excuses no one from compliance therewith.”

Responsibility in relation to FELLOW PRACTITIONERS

Naturally, real estate practitioners also have a responsibility towards their fellow practitioners. They will be working with them, so a respectful and responsible environment must be created with them to avoid any potential conflicts. 

One way they can do this is by never soliciting a listing that is currently exclusively listed with another broker unless the listing agreement has expired or been revoked by the owner, who then offers the listing to the new broker without solicitation. 

Meanwhile, when accepting a listing from another broker, it’s crucial to honor the agency of the original broker until the agreement expires and the property is officially transferred to the accepting broker’s care. This means refraining from passing the listing to a third broker or publishing it without the knowledge and consent of the listing broker. 

Responsibility in relation to the ASSOCIATION

Professionalism is not just about transactions—it’s a commitment to integrity and mutual respect among practitioners. Here’s how ethical guidelines in terms of association shape this dynamic industry. 

Real estate professionals must obtain written consent before using confidential professional conduct documents. They are encouraged to collaborate with fellow practitioners and agree on fair professional fees based on industry standards set by the Accredited and Integrated Professional Organization (AIPO). Soliciting the services of another practitioner’s employees without consent is prohibited.

Professionals must also maintain professionalism by refraining from slander, gossip, or public criticism of colleagues or competitors. Similarly, when providing opinions for the common good, they must do so with integrity, truthfulness, and respect while safeguarding the rights and reputation of others.

Furthermore, practitioners should avoid seeking unfair advantages through divisive tactics or spreading rumors about fellow professionals or industry associations. Instead, they should actively contribute to the industry’s advancement by sharing knowledge, experiences, and technical training for the benefit of all.

Violation of the Code of Ethics

When real estate practitioners breach ethical standards, the PRBRES can suspend or revoke their registration certificates or professional identification cards after due notice and hearing. PRBRES may also conduct investigations, issue subpoenas, and compel witnesses to appear and produce relevant documents when there is a violation of the RESA Law, its Implementing Rules and Regulations, and the Code of Ethics and Responsibilities for real estate service practitioners, ensuring accountability within the industry. 

Final Thoughts

In the intricate world of real estate, ethical conduct isn’t just a guideline—it’s the foundation that sustains trust, fairness, and professionalism. By adhering to the Code of Ethics and Responsibilities, real estate practitioners uphold the highest standards of integrity and accountability. This commitment safeguards the interests of clients and stakeholders and fosters a community where collaboration and respect thrive. As we navigate the complexities of this dynamic industry, let us continue to uphold these principles, ensuring that every transaction contributes to the growth and credibility of the real estate profession. Together, we can shape a future where ethical practices define success, inspire confidence, and elevate the standards of excellence in real estate service.