Remman Enterprises v. PRB-Yap, K. C2020

 Remman Enterprises, Inc. and Chamber of Real Estate and Builder’s Association v.  Professional Regulatory Board of Real Estate Service Ser vice and Professional Regulation Commission G.R. No. 197676 | February 4, 2014 VILLARAMA, JR ., ., J.

The Court will not declare a statute as unconstitutional when its regulation is an unavoidable consequence of a reasonable regulatory measure. FACTS

This case involves a petition for review under Rule 45 on the subject of the Real Estate Service Act of the Philippines. R.A. 9646 (Real Estate Service Act of the Philippines) was passed. Its purpose is to professionalize the real estate service sector under regulatory scheme of licensing, registration and supervision of real estate service practitioners. The supervision was likewise lodged under the authority of the Professional Regulatory Commission (PRC). The law required that companies providing real estate services must transact with the employ of duly licensed real estate brokers. Petitioner assails the constitutionality of the law, alleging that it violates the due process clause and infringes the ownership rights of real estate developers enshrined in Art. 428 of the Civil Code. Furthermore, they claim that it violates the equal protection clause as owners o wners of private  properties are allowed to sell their properties without the need of a licensed real estate broker. The provisions in question are – Section 29. Prohibition Against the Unauthorized Practice of Real Estate Service. o Section 32. Corporate Practice of the Real Estate Service. o The RTC denied the issuance of a writ of preliminary injunction. • •

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ISSUES AND HOLDING

1. Whether the assailed provisions are in violation of the due process clause, particularly substantive due process. No. •

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The requirements for substantive due process are – 1. Lawful government purpose; and 2. Reasonable means necessary for the accomplishment acco mplishment of the lawful purpose. The lawful purpose of R.A. 9646 is to professionalize the real estate service and increase its standards. The law recognizes the role of real estate practitioners in spearheading the continuous flow of capital, in boosting investor confidence, and in promoting national progress. The requirement of employing a duly licensed real estate broker for transactions is reasonable as it merely regulates the conduct of business, and does not curtail the exercise of petitioners’ ownership rights. !

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Lastly, there is a substantial distinction between real estate developers and owners of  private who want to sell their private property. Unlike individuals or entities having isolated transactions over their own  property, real estate developers dev elopers 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. !

WHEREFORE, the petition is DENIED. RTC decision AFFIRMED and UPHELD.

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