PRC denies PhilRes Application for Renewal of AIPO Status
PRC DENIES PHILRES APPLICATION FOR RENEWAL OF AIPO STATUS
PRC Resolution No. 19 enjoined PHILRES to insure the accomplishments of the purposes, duties and responsibilities
prescribed in RA 9646 and its IRR and the Articles of Incorporation and By-Laws.
After an extensive review, the PRBRES, with the concurrence of the PRC, has decided not to grant the renewal application of PHILRES. Some are based on the following grounds:
PRC RESOLUTION 2014-178: RULES GOVERNING xxx THE RENEWAL OF CERTIFICATES OF ACCREDITATION, xxx AND THEIR CANCELLATION/SUSPENSION
Rule 2 – Accreditation >>> (list of qualification)
Rule 3 – Renewal of Certificate of Accreditation >>> (requirements for submission)
Rule 4 – Cancellation of Accreditation >>> (list of disqualifications)
RULE #4 (1) – PhilRES, after three (3) years of operation, is no longer an “association of natural persons” but an “association of associations and individuals” with SEC incorporation of four (4) organizations in violation of the One National Organization Rule under Sec 34 of RA 9646 and its appointment mandate under PRC Resolution No. 19.
RULE #4 (2) - No significant achievements that will justify how the AIPO served the best interest of the profession for which it was accredited.
a. Non-compliance of its transitory provisions particularly for failure to hold a National Election for the last three (3) years
b. No Amendment of By-Laws on provisions inimical to the welfare of the practitioners
… with reference to Rule 3(4)
c. Failure to subscribe to primary and secondary purposes as embodied on its Articles of Incorporation
RULE #4 (3) – While the 50% membership is not applied as a
stiff renewal requirement, membership registration for the last three (3) years, however, is substantially low for a national organization mandated to member and integrate all real estate practitioners despite the vested authority given by the Commission as well as the “automatic membership clause” provided in Sec 34 of RA 9646 :
a. No membership recruitment strategy has been effectively installed nationwide to ensure AIPO membership of practitioners despite of the automatic membership clause under the law
… with reference to Rule 3(7)
b. Submitted list as of November 11, 2014 does not reflect complete records of the claimed membership (with PRC registration numbers and date of registration)
… with reference to Rule 3(6)
RULE #4 (6) – In the spirit of transparency, particularly on the membership fund, the submitted application lacks
financial reports of incorporated chapters
PRC RESOLUTION 2014-178:
RULES GOVERNING THE STATUS OF THE PRESENT ACCREDITED PROFESSIONAL ORGANIZATIONS (APOs), ACCREDITATION OF NEW/FUTURE PROFESSIONAL ORGANIZATIONS,
THE RENEWAL OF CERTIFICATES OF ACCREDITATION, AND THEIR CANCELLATION /SUSPENSION
RESOLUTION 2014-178 FINDINGS
RULE 2. Accreditation of Professional Organization and Issuance of the Certificate of Accreditation.
– In order to be accredited by the Professional Regulation Commission, a professional organization must meet the following requirements :
1. It is established for the benefit and welfare of the professionals of one discipline, the advancement of their profession, and the attainment of other professional ends.
∙ It has failed to unify the industry as embodied in the primary purposes in its Amended Articles of Incorporation and New By-Laws
RULE 3. Renewal of Certificate of Accreditation.
– The accredited professional organization … upon submission of the requirements enumerated hereunder … provided that the certificate of accreditation has not been cancelled or revoked under any of the causes /
grounds set forth in Rule 4 hereof;
4. Copy of Amended Articles of Incorporation and
By-Laws, if any
RA 9646, Sec 34 – Accreditation and Integration
of Real Estate Service Associations. –
All real estate service associations shall be integrated into one (1) national organization, which shall be recognized by the Board, subject to the approval of the Commission, as the only accredited and integrated professional organization of real estate service practitioners.
A real estate service practitioner duly registered with the Board shall automatically become a member of the accredited and integrated professional organization of real estate service practitioners, and shall receive the benefits and privileges appurtenant thereto. Membership in the accredited and integrated professional organization of real estate service practitioners shall not be a bar to membership in other associations of real estate service
practitioners.
∙ PhilRES failed to submit an amended by-laws that should incorporate, among others, the following :
♉ as per PRC mandate under Letter of Instruction by former Chairperson Atty. Teresita Manzala dated November, 2012 specifically calling for the amendment of election related provisions
♉ amendment on chapter incorporation provision deemed as void ab initio as violation against the One National Organization Rule under Section 34 of RA 9646
♉ In the PRC Position Paper submitted to Congress in 2012, the Commission has resolved the issue on the appropriate interpretation of above provision by upholding an interpretation harmonizing both paragraphs. PRC interpreted that the use of the word “associations” was
intended to direct and compel the numerous real estate associations to become integrated into one single accredited professional organization to be composed of individual practitioners. (See pages 2-4 of said position)
♉ Despite the mandate of the law for one single organization, the AIPO incorporated three (3) chapters making the organization an association of associations and association of individuals at the same time
RULE 3. Renewal of Certificate of Accreditation.
6. Complete list of members indicating their PRC registration numbers and date of registration
∙ Submitted members’ list as of November 11, 2014 does not reflect
complete records of the claimed membership (with PRC registration numbers and date of registration)
7. Report on significant achievements as a corporate body in attaining the objectives of the organization, in the enhancement of the welfare of its members and the stature/prestige of the profession to be signed by Board of Directors /Trustees
∙ It has failed to unify the industry as embodied in the primary
purposes in its Amended Articles of Incorporation and By-Laws
∙ After 3 years, the AIPO has failed to enroll majority of the
practitioners despite the PRC mandate and vested authority as well
as the “automatic membership clause” provided in Sec 34 of RESA
∙ As emphasized as one of its secondary purposes, the AIPO failed to
form strategic affiliations with other real estate organizations
whose purposes are also in accordance with the association's own
objectives and the provisions of RA 9646 and other related
Philippine Laws on real estate service practice;
∙ Failure to comply with the By-Laws transitory provisions primarily
for not holding a national election for more than three (3) years
RULE 4. Cancellation of Accreditation
– A certificate of accreditation of an accredited professional organization shall be cancelled or suspended by the Commission or by the concerned professional regulatory board upon approval or concurrence by the Commission only after due hearing under any of the following
grounds / causes:
The accredited professional organization ceased to possess any of the qualifications for accreditation;
The accredited professional organization no longer served the best interest of the profession for which it was accredited;
∙ With the incorporation of three (3) chapters, PhilRES has become
an association of associations and association of individuals at the
same time betraying the mandate given by Resolution No. 19
(2011); ignoring the clarification under the PRC Position Paper
submitted to Congress (2012); and, setting aside the wisdom of the
House of Representatives Resolution No. 299 (2012) for the AIPO to be an association of individuals
∙ Failure to unify / integrate the practitioners. The AIPO should have
taken the opportunity to amend its by-laws’ provisions inimical to
the interest of the industry
∙ See other comments above on Rule 2 (1) and Rule 3 (7)
The membership of the accredited professional organization falls 50% or below of those who have been issued of their annual registration cards for the current year;
∙ Although the 50% requirement does not apply to an integrated
professional organization, the AIPO, after three (3) years, has failed
to enroll majority of the practitioners despite the PRC mandate
and vested authority as well as the “automatic membership
clause” provided in Sec 34 of RA 9646:
No membership recruitment strategy has been effectively installed nationwide to ensure AIPO membership
The accredited professional organization and/or its chapter
organizations has not submitted audited financial statements thereof;
∙ Although provisions for chapter incorporation is deemed invalid as
violation with One National Organization Rule Section 34 of RA 9646, in the spirit of transparency of membership funds, the AIPO has not submitted financial reports of its three (3) incorporated chapters