DOJ Opinion No. 118, s. 1992

DOJ OPINION NO. 118 , s. 1992 September 16, 1992 The Chief Executive Officer Housing and Land Use Regulatory Board 4th Floor, D & E Building 1050 Quezon Avenue, Quezon City Sir : This refers to the request for opinion on whether the regulatory powers of the Bureau of Trade Regulation and Consumer Protection ("BTRCP") over real estate brokers have been transferred to the Housing and Land Use Regulatory Board ("HLURB") pursuant to Presidential Decree No. 957 and Executive Order No. 90, series of 1986. The above query is raised by reason of the "apparent duplicity" in the exercise of regulatory functions over real estate brokers by the aforesaid government agencies. It is observed that while the abovementioned statutes invest such functions upon the HLURB, it seems that the BTRCP can likewise claim similar authority by virtue of the relevant provisions of Act No. 2728 and Presidential Decree No. 721. prcd It is the HLURB's view, however, that the BTRCP's regulatory power over real estate brokers has been transferred to the HLURB. It is argued that P.D. 957 and E.O. 648 were enacted later than Act 2728 and P.D. 721 and that between them, the former may be deemed special legislations which should prevail over the latter, which are general in character. The pertinent provisions of law read: Act No. 2728 (as amended) "Section 3. Powers and Functions in General. The Bureau of Commerce and Industry shall have, under the immediate executive authority, direction, and supervision of the Department of Commerce and Communications, the following powers, duties, functions and aims: xxx xxx xxx (e) To organize, establish, create, maintain and regulate, and whenever it may deem it proper, authorize the creation, under such regulations as it may prescribe, of commercial exchanges and other public places of exchange, and to suspend and abolish the same, as it may see fit; to qualify, approve, authorize, and license for periods not to exceed three years, as exchange agents, merchandise brokers, ship brokers and interpreters and real estate brokers, and to suspend and revoke said license or any of them for cause; and to organize and authorize associations of exchange agents, merchandise brokers, ship brokers and interpreters and real estate brokers, subject to such regulations as it may prescribe, and to consolidate, suspend and dissolve the same." P.D. No. 721 "Sec. 2. Bureau of Domestic Trade . The Bureau of Domestic Trade shall, among others, consolidate functions pertaining to local commerce and the protection of the consuming public. There are created the following divisions in the Bureau of Domestic Trade: xxx xxx xxx "(c) Brokers Division which shall administer the licensing of commercial brokers and real estate brokers and appraisers, excluding brokers for stocks and securities." P.D. No. 957 "Section 3. National Housing Authority. The National Housing Authority shall have exclusive jurisdiction to regulate real estate trade and business in accordance with the provisions of this Decree." xxx xxx xxx "Section 11. Registration of Dealers, Brokers and Salesman . No real estate dealer, broker, or salesmen shall engage in the business of selling subdivision lots or condominium units unless he has registered himself with the Authority in accordance with the provisions of this Section." prcd E.O. No. 648 "Section 8. Transfer of Functions. The regulatory functions of the National Housing Authority pursuant to Presidential Decrees Nos. 957,1216, 1344 and other related laws are hereby transferred to the Commission, together with such applicable personnel, appropriation, records, equipment and property necessary for the enforcement and implementation of such functions. Among these regulatory functions are: . . . (5) Registration of dealers, brokers and salesmen engaged in the business of selling subdivision lots or condominium units; (6) Revocation of registration of dealers, brokers and salesmen; . . .; E.O. No 90 "Sec. 1. Key Agencies . To ensure the accomplishment of the National Shelter Program, the following primary government housing agencies, any provision of existing laws and their respective charters to the contrary notwithstanding, are hereby mandated to: xxx xxx xxx "(c) Human Settlements Regulatory Commission The Human Settlements Regulatory Commission, renamed as the Housing and Land Use Regulatory Board, shall be the sole regulatory board for housing and land development. It is charged with encouraging greater private sector participation in low-cost housing through liberalization of development standards, simplification of approvals for permits and licenses." (all emphases supplied) A basic rule of statutory construction states that to properly construe a law, it legislative history may be looked into and examined (U.S. vs. De Guzman, 30 Phil. 416). The review of the prior laws on the same subject matter is useful in the determination or discovery of the legislative purpose or policy as revealed in the previous enactments on the subject matter, the logical assumption being that the new legislation has been enacted as a continuation of the existing legislative policy as a continuation of the existing legislative policy or a new effort to perpetuate or further advance it (Director of Lands vs. Abaja, 63 Phil. 559) The regulatory powers of the BTRCP over real estate brokers can be traced to Act No. 2728, supra . Section 3(3) thereof empowers the Bureau of Commerce and Industry to inter alia qualify, approve, authorize, an license for 3-year periods real estate brokers, to suspend and revoke licenses for cause, and to organize and regulate associations of real estate brokers and to consolidate or dissolve such associations. Act 2728 was superseded by P.D. 721 which created a Brokers Division within the Bureau of Domestic Trade "which shall administer the licensing of commercial brokers and real estate brokers and appraisers, excluding brokers for stocks and securities" (Sec. 2[c]). E.O. No. 574, however, abolished the aforesaid bureau (Sec. 18[2]) and mandated the Bureau of Consumer Affairs to "advise and assist the Minister [of Trade and Industry] in the discharge of the functions of the Ministry relating to real estate broker" (Sec. 10). The Bureau of domestic Trade was revived by E.O. 709 and was tasked to "assume the functions of the abolished Bureau of Consumer Affairs" (Sec. 4[1]). On February 27, 1987, e. No. No. 133 again abolished the Bureau of Domestic Trade and its functions assigned to the present BTRCP. (Sec. 18[i]). prcd Upon the other hand, the authority of the HLURB over real estate brokers originated in P.D. 957 which invested in the National Housing Authority "exclusive jurisdiction to regulate the real estate trade and business in accordance with the provisions of said Decree" (Sec. 3). Under Section 11 of said PD, "no real estate dealer, broker, or salesmen shall engage in the business of selling subdivision lots or condominium units unless he has registered himself with the [National Housing] Authority." The NHA's regulatory powers were in turn transferred to the Human Settlement Regulatory Commission under E.O. 648. Section 8 thereof specifies that among such transferred functions was the "registration of dealers, brokers and salesmen engaged in the business of selling subdivision lots or condominium units". E.O. No. 90 renamed the aforesaid Commission as the HLURB and made it "sole regulatory body for housing and land development" (Sec. 1[c]). It is settled in statutory construction that when two laws on the same subject are enacted on different dates, every effort must be exerted to make all such acts stand together and harmonize (US vs. Palacio, 33 Phil. 208; City of Naga vs. Agna, 71 SCRA 176). Repeals by implication are not favored (Valdez vs. Tuason, 40 Phil. 943; Villegas vs. Subido, 41 SCRA 190), hence, when confronted with apparently conflicting statutes, one should endeavor to reconcile them instead of invalidating one as against the other (Gordon vs. Veridiano II, 167 SCRA 51). It is not difficult to reconcile the HLURB's and the BTRCP's respective jurisdictions over real estate brokers. By explicit provisions, of law, and former encompasses only those intending to engage in the sale of subdivision lots and condominium units, whereas the BTRCP's authority covers all real estate brokers, i. e., persons engaged or intending to engage in the business of negotiating the purchase or sale of lands, buildings or interests therein (see Zamboanga Mutual Bldg. and Loan Association vs. Rafferty, 42 Phil. 408, Behn Meyer & Co., Ltd. vs. Nolting and Garcia, 35 Phil. 274). Accordingly, if at all there was a transfer of regulatory functions from the BTRCP to the HLURB, such transfer involved only the BTRCP's power to regulate real estate brokers engaged in selling subdivision lots and condominium units. In all other aspects of real estate brokering, regulatory jurisdiction over such activity remains with the BTRCP. The legislative intent not to fully divest the BTRCP of its regulatory prerogatives over real estate brokers is further shown by the fact that after the issuance of P.D. 957 on July 12, 1976, vesting exclusive authority on the NHA to regulate the real estate trade, E.O. 574 was enacted on December 7, 1979, which recognized the authority of the Bureau of Consumer Affairs (a predecessor agency of BTRCP) relative to real estate brokers. Indeed, had it been the legislative design to transfer all regulatory functions over real estate brokering to the HLURB, it could have easily provided so in E.O. 648 dated February 7, 1981 and E.O. 92 dated December 17, 1986. The presumption is that the enactment of laws, the legislator is aware, and has taken into account, the previous legislations relating to the same subject matter and in the absence of any express repeal or amendment, the new law is deemed adopted in accord with the legislative policy embodied in the prior legislations (See C & C Commercial Corporation vs. National Waterworks & Sewerage Authority, 21 SCRA 984). prcd The query is resolved accordingly. Very truly yours, (SGD.) FRANKLIN M. DRILON Secretary