WORKSHOP PROBLEM-RESA LAW

By Atty. Rey D. Cartojano, REB, REA, REC LAWA LANDS, INC. is a Manila-based property developer which has invested in a retirement project in General Santos City. It has hired the services of ESGUERRA CONSULTANCY, a licensed real estate consultant, to provide feasibility studies and investment analysis, while FRED DUMASIS, employed as local assessor of a town in South Cotabato, was hired to conduct appraisal on potential sites. Because of its growing reputation in marketing local real estate projects, a top executive of LAWA LANDS, INC. initially awarded to PARE REALTY the lead role as marketing arm of the retirement project. While the project was ready to be launched, Republic Act No. 9646, or the Real Estate Service Act of the Philippines, took effect on 08 August 2010. Due to some corporate politics, ESGUERRA CONSULTANCY was instead hired as the lead marketing arm of the project, and it wasted no time in organizing an aggressive team of salespersons headed by ELENA LOZADA who reached only first year at ACLC College. Unfortunately, despite huge sales volume, ESGUERRA CONSULTANCY failed to renew its license with the Professional Regulatory Commission which expired last 31 December 2010, but it continued handling the role as marketing arm of the project. Caught in the sidelines was ROGER PARE, proprietor of PARE REALTY, which was convicted of illegal possession of firearms while supporting a mayoralty candidate in Maasim, Sarangani Province. 1. Sometime last October 2010, PARE REALTY wrote LAWA LANDS to discontinue hiring the services of ESGUERRA CONSULTANCY

WORKSHOP PROBLEM-RESA LAW

By Atty. Rey D. Cartojano, REB, REA, REC as lead marketing arm as it was not a licensed real estate broker, even if it had a license as real estate consultant. Is the position of PARE REALTY correct? If the letter of PARE REALTY was made on January 2011, will your answer be the same? Discuss your position 2. In retaliation, ESGUERRA REALTY filed an administrative complaint against ROGER PARE with the Professional Regulatory Commission (PRC) for revocation of brokers license on account of the latters conviction of a crime. If you are the PRC, what will be your verdict? Discuss with reasons. 3. As sales of LAWA LANDS are being handled by salespersons headed by ELENA LOZADA, ROGER PARE filed a criminal case for violation of the real estate service law against ELENA LOZADA before the Municipal Trial Court of General Santos City. LOZADA, however, raised the defense that she was given accreditation as real estate salesperson by the PRC. Is the accreditation of PRC correct? Will the criminal case of PARE succeed? Discuss your positions with reasons. 4. LAWA LANDS discovered that FRED DUMASIS made bloated appraisals thereby resulting on financial damage on the long term profitability of the project, as a result of which it filed likewise a criminal case for violation of the real estate service law against DUMASIS before the Municipal Trial Court of General Santos City. Will DUMASIS be convicted? Explain your position.