3/30/2011

Buyers' agent will not recognize brokers licensed under the anomalous PRB-RES

QUESTION: Sir John, as an Exclusive Buyer Agent kind of a Broker, do you consider real estate properties that are represented by seller-side licensed brokers who are licensed under the PRB-RES?

ANSWER: I used to, but this time NO, because I do not recognize the anomalous installation of the current PRB-RES of PRC. For the best interest of my client, I will have to bypass the Broker and deal directly with Seller.

The RA 9646 requires the formation of AIPORESP first before PRB-RES can be nominated, before oathtaking can be done, before exam can be done. There is no AIPORESP yet, so there should be no PRB-RES yet, there should be no oathtaking yet, there should be no exam yet.

Follow up Question: Sir John, how do you know who is the owner of the property being advertised for sale?

ANSWER: That is easy. Just check out the location of the property, sketch the map, and verify it in the Real Estate Property Tax Assessors Office of the Local Government Unit, then pay P160 in the Registry of Deeds to get a Certified Copy of the Title of Property. That's how easy to know the papers and owner of a property being offered/advertised for sale.

14 comments:

Jon said...

sir, while i understand where you're coming from, that would be the same as saying that those of us who recently passed the grueling 400 items exam last March 27, 2011 do not have the right to be licensed real estate brokers... no offense taken though, but still really controversial :D

JOHN ODONNELL R. PETALCORIN said...

I am very sorry, Jon, but I guess you studied the RA 9646, so I believe you know the law. If there is no IPO, there should be No PRB-RES, No Exam, No Oathtaking.

Jon said...

As per the IRR of RA 9646, the board shall be composed of a chairperson and 4 others as chosen by the President from nominees submitted by the AIPO. Since the AIPO doesn't exist yet, there's also a provision for an IAIPO (section 3-i), which I interpret to be the amalgamation of all the current accredited real estate organizations. While the IRR states it to be an "organization" that will act prior to the creation of the AIPO, I doubt it was taken literally and at face value to be singular. If I'm not mistaken, that's where the nominees came from, which enabled the PRC to continue with the creation of the PRB-RES. It seems to be the case of which came first, the chicken or the egg. It also seems that the PRB-RES had to be created first for the AIPO to happen (Sec. 34), which will eventually start the ball rolling on the process down the line. I guess if they just said "The president will assign the first Board, which will integrate all the professional organizations into one AIPO, that will then provide the PRC with nominees for the president to choose the next Chairperson and 4 members," there would be no misunderstanding. I do applaud your conviction though, and regardless of your stand on my newly-acquired license, I think you'd be a great addition to the PRB-RES. Cheers and God bless!

JOHN ODONNELL R. PETALCORIN said...

SEC. 4. Creation and Composition of the Board.

There is hereby created a Professional Regulatory Board of Real Estate Service, hereinafter referred to as the Board, under the supervision and administrative control of the Professional Regulation Commission (PRC), hereinafter referred to as the Commission, composed of a chairperson and four (4) members who shall be appointed by the President of the Philippines from the three (3) recommendees chosen by the Commission from a list of five (5) nominees per position submitted by the accredited and integrated professional organizations of real estate service practitioners: Provided, that two (2) members of the Board shall represent the government assessors and appraisers. The first Board shall be organized within six (6) months from the effectivity of this Act.

JOHN ODONNELL R. PETALCORIN said...

The PRC's first task in implementing the RA 9646 should have been to organize a steering committee who will call the practitioners individually (who are currently licensed under DTI) for a National Convention and election to IPO Trustees and Officers. Then the officers will form and register the IPO in the SEC before they nominate 5 persons (who are non-officers and non-trustees) for the positions in the PRB-RES. The accreditation of the IPO by PRC is only ceremonial.

Theognosis said...

"The RA 9646 requires the formation of AIPORESP first before PRB-RES can be nominated..."

I think you are mistaken here. As per definition of terms of the IRR and contrary to your statement, the initial composition of the board is dependent on the IAPO (Interim Accredited Professional Organization) that is accredited by PRC. Note that the "IAPO" is not the "AIPO".

JOHN ODONNELL R. PETALCORIN said...
"The PRC's first task in implementing the RA 9646 should have been to organize a steering committee who will call the practitioners individually (who are currently licensed under DTI) for a National Convention and election to IPO Trustees and Officers."

The IRR is silent on the process of creating the IAPO, so your assertion that there should be a national convention and election has no grounds. May I know where you got this information?

The logic is quite simple, really.

On the creation of the Board:

PRC -> Interim APO -> PRB-RES -> AIPO

After the Board is created:

AIPO -> PRB-RES

The current PRB-RES is legal and there is no controversy at all. RA 9646 along with its IRR is the best thing that has happened to the Real Estate industry so don't put it down if you really care for this country!

Mabuhay ang Pilipinas at ang mga bagong Real Estate Brokers!

JOHN ODONNELL R. PETALCORIN said...

That's true. They invented an "Interim IPO" and used it as a vehicle to by-pass the IPO, that's how the anomaly started, and Iv'e been watching it from day one. Ohh yes, you can enjoy the works of these anomalous PRB-RES now, you can get license and exemption and anything, BUT still I personally don't recognize anything born out of anomaly, that is my discipline when it comes to prudence, that is how I do business.

Jon said...

Sir, regardless of your personal stand on the creation of the PRB-RES and the validity of our PRC license, you seem to be willing to bypass the code of ethics, which is rather disturbing. Whatever your personal views are, it doesn't change the reality that we got our license legally, by going through the prescribed process. I understand that you've decided to personally shun the PRC and the PRB-RES, but in so doing, you'd also be putting your license and your practice in jeopardy. Your personal opinions and views notwithstanding, it IS the law, and you are nevertheless covered by it, unless you decide to quit being a citizen and live under a rock under the sea. Again, I mean no disrespect, I even linked back to some of your topics for the benefit of my classmates in facebook. However, I think you're howling at the moon, and your considerable intelligence and experience should instead be channeled towards helping the new licensees become the kind of brokers that will make you, the profession, and the country proud. Your contention, in your mind, remains to be the ONLY truth, but as you can see from Theognosis' post, there are other truths out there. Who can say who's really right? Only the courts can decide that. So until you've filed a case, and won, our license IS valid, and we are real estate brokers.

JOHN ODONNELL R. PETALCORIN said...

Filing a case in court about the anomaly did not even cross my mind. You should realize that you can do whatever you want with what you availed of, you earned it, so enjoy it. The market is so wide and huge I am not the only person you will be dealing with in this universe. But what I'm telling you is how "I" do business, in which I have no room that tolerates products of anomalous transactions, especially if the client's interest is at stake. Righteousness is the road I personally choose to take because that is my professional discipline as an EBA. If you don't like my style, then just walk away, find your peace somewhere, you know you can't drag me into the dirty mud. When I say the EBA will not deal, then the door is closed. Leave us alone. Go in peace.

Jon said...

I realize that I may have offended you, that is not my intention. Like I said, I do respect your position in this matter. I merely want to state that going straight to the client behind the broker's back, even if you question that broker's license due to the implementation of RA 9646, is going against the code of ethics. I don't see how that's "dragging you to the mud." I think you know that such an act will create repercussions both to your integrity and your practice, and will cause your client some problems, too. That's all I wanted to point out. Anyway, more power to you sir, I'll keep coming back to read up on your posts, I thank you for your indulgence.

Theognosis said...

JOHN ODONNELL R. PETALCORIN said...
"They invented an 'Interim IPO' and used it as a vehicle to by-pass the IPO, that's how the anomaly started, and Iv'e been watching it from day one."

The introduction of an interim body is a logical necessity because neither the AIPO and the PRB-RES cannot START to exist as they are dependent on each other like chicken and egg. Even if you contend that a national convention and election is required in selecting the nominees for the Board (btw, you still haven't told me your sources on that), you will still end up "inventing" an interim organization that is distinct from the AIPO.

JOHN ODONNELL R. PETALCORIN said...
"Ohh yes, you can enjoy the works of these anomalous PRB-RES now, you can get license and exemption and anything, BUT still I personally don't recognize anything born out of anomaly, that is my discipline when it comes to prudence, that is how I do business."

In one of your blogs, you stated that you plan to become a licensed Real Estate Consultant. May I know how you intend to pursue this given that you don't recognize PRB-RES, its exams and its certifications? Are you going back to DTI to obtain your license? HLURB perhaps?

By the way, with the exception of your personal opinion on PRB-RES, I find your blog very informative. More power to you! I hope that someday you will finally support PRB-RES and the new set of brokers like Jon who want to be as successful as you are.

JOHN ODONNELL R. PETALCORIN said...

@Jon, the only Broker that cannot be bypassed is one who has EXCLUSIVE Authority to Sell. All the rest, they can be, and in fact it is the rule of thumb to always lead your client direct to the property owner. If you work for buyers, you find sellers directly not agents/brokers because another layer of agents/brokers will just increase the negotiated price. But the most important is, dealing with people who tolerate integrity anomalies will just give you a hassle in the transaction and it's not good for the client. We have this thing we call FSBO and it's the thing that is just in time to promote while the integrity of the philippine real estate service sector is shaking.

@Theo, I think i can't recall stating I plan to become a RE Consultant. If I ever did, I guess it is no longer material now because I am no longer interested to deal with the PRB-RES that lacks integrity in my standard.

JOHN ODONNELL R. PETALCORIN said...

Oh sorry I forget to answer Theo's question about obtaining license. Here is the answer. RA 9646 SEC 28 is about Exemptions from the Acts Constituting the Practice of Real Estate Service. The provisions of this Act and its rules and regulations shall not apply to the following: (D) Any person who is duly constituted attorney-in-fact for purposes of sale, mortgage, lease or exchange, or other similar contracts of real estate, without requiring any form of compensation or remuneration.

NOTE: the most important in invoking paragraph D is that you must be serving WITHOUT REQUIRING COMPENSATION. In short, it is okay to receive gratuity compensation from a happy buyer (internal arrangement) as long as you did not require or oblige the buyer to compensate you, and the proof of this is the SPA.

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