Q&A About Salespersons and Brokers

QUESTION: Under RA 9646, can a licensed real estate broker act as supervisor of real estate salespersons who works the offices of different developers?

ANSWER: YES, as long as he has his own independent office and the total number of salespersons he supervise does not exceed 20.

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QUESTION: Regarding our salespersons, can they serve 2 brokers with different projects?

ANSWER: A salesperson can only work under the control and supervision of one broker, a broker can only have a maximum of 20 salesparson, this is what the RA 9646 provides. The good thing in my National Listing Initiative is that the Developers who have HLURB Permit automatically accredits IPORESP and all its members; in short, ALL brokers will automatically become accredited to sell anything that is captured by the National Listing of the IPORESP, whether that be a condo/subd project, individually owned property, bank foreclosed properties, or gov't foreclosed properties. In short, a salesperson working for a broker can sell EVERYTHING in the National Listing, and thus in short ans simple statement it means ALL salespersons and Brokers nationwide can sell your project.

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QUESTION: Sir John, I just want to make clear if the 20 Salespersons limit per Broker is applicable only to in-house corporate brokers. How about those independent brokers who are selling different projects from different developers?

ANSWER: ‎20:1 Ratio is a legislated limitation sa aplicable sa lahat, whether the broker is an employee (inhouse) of the developer or the broker is an independent office, klaro yan sa RA 9646.

Yung independent brokers ay may limitation on the number of salesperson 20 lang talaga ang maximum, pero pwede mag-benta kahit gaano ka-raming project (in fact ang ideal ay lahat na project) walang limitatation.

Dapat alam mo rin ang difference ng in-house broker and independent broker. Lahat na broker dapat merong OPISINA, required ang official place of business sa RA 9646. Ang in-house broker, ang office niya ay ginagastosan ng developer at merong terms and conditions yan. Ang independent naman ay ginagastosan ng sarili niya.

Ang tanong, under RA 9646, pwede pa ba mag-continue na merong license ang mga brokers na walang opisina, yung tipo bang parang fly by night na sa Jollibbee nakikipag-transaction? Ang sagot ay HINDI NA, nasa RA 9646 yan nakasulat sa Section 33. Hindi na pwede yung mga Brokers na walang official receipt. Kung inhouse broker ka, gamit mo resibo ng Developer. Kung independent broker ka, ehhhh gamit mo sarili mong resibo. Eto ang na overlook ng anomalous na PRB-RES ngayon, kaya ayun pinagbibigyan lahat ng license without exam kahit walang mga office and resibo ang mga fly by night.

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QUESTION: Thanks for the quick reply and for the additional insights. I have seen some postings in the internet by some brokers who used "independent broker" loosely. Well, at least now this is clear. Your idea above of coming up with a National Listing would be very useful since the database (I'm assuming it is online?) could be accessed by a subscriber even if the broker is in the province.

ANSWER: The National Listing is online na kasama eto ng IPORESP Website. Kung licensed broker ka you can access it through the internet kasi yan ang incomable (mapapakinabangan mo) service na babayaran (maybe between P500 to P1,000/yr) mo bilang member ng IPORESP. Brokers lang makaka-access ng National Listing. Ang mga salesperson, kung kailangan nila ng info from the National Listing Database, ehhhh hingin nila sa kani-kanilang boss broker.

Ang public hindi nila makikita ang National Listing. Ang makikita lang ng public sa IPORESP Website ay ang National Directory ng mga Brokers in compliance to RA 9646 Sec 22. In short, for example kung merong buyer na gusto bumili ng residential lot sa Cebu, ang gagawin niya punta siya sa website ng IPORESP, then tingnan niya ang Brokers Directory, then click niya ang Cebu and lalabas na mga pangalan ang address ninyo mga brokers sa Cebu, ang buyer na ang mag choose sino sa inyo ang pagtatanungan niya tungkol sa availability ng property sa Cebu. Through the National Listing, ikaw na broker dyan sa Cebu, makikita mo kung ano ang mga for sale na units dyan sa cebu in just one click by accessing the National Listing, and you can give real-time reliable info to the client.

This thread can also be read at http://petalcorin.blogspot.com/2011/05/philippine-national-listing-initiative.html

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QUESTION: Thanks for your immediate reply...we're also handling memorial lots from different developers...daming ahente... iba ang organizational set up sa mga company...may quota...mostly lahat nang agents ko maraming brokers ang dala..coz of the di...fferent projects handled by different brokers..as of now part sila nang agency ko ..can they be pulled out by their respective brokers ...can you suggest ...on possible solutions habang wala pa ang national listing ... or internal arrangement nyo na lng ng mga brokers...kc hindi lahat nang brokers naka focus sa selling ng memorial lots.thanks. MAGKANU KAYA BABAYARAN SA HLURB? REQUIRED B???KAAGAD? THANKS

ANSWER: @Alex, there is no temporary or interim fix for the issue you have raised about memorial lots. The law has to be followed, if you ask me, meaning, the RA 9646 applies to memorial lots, no excuses, no policy fix for this.

If you are looking for "policy fixers", talk to the PRB-RES who are sitting now, they are very tolerant to anomalies, and I have lost trust and confidenceino them for treachery of mandate, that's why I don't like them.

There is a law called PD 957 which REQUIRES all brokers and salespersons to get an HLURB Permit (I think around P1200 not so sure) before selling PROJECTS of developers. This PD 957 is also the regulatory policy for subdivision and condominium projects. So if you have no HLURB permit and you are selling projects, or if you are selling a project that has no HLURB license to sell, you are violating the law. The GROSS violation of the PD 957 is one of the reason why I personally rate the Philippine real estate industry a mark of ZERO when it comes to integrity.

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QUESTION: Sir John, what will be the relevance of the Associations (REBAP and PAREB) when IPORESP is established?

ANSWER: They will be relevant in localized social activities such as holiday parties, civic volunteerism, sportsfest; but no longer relevant in Education (CPE) and Shared Listing. CPEs will be handled by institutions accredited by CHED and National Listing will be handled by IPORESP.

Pero hindi ganun kadali eto. Lalaban yang mga naghaharing-uri dyan sa mga Associations na matagal nang kumikita sa CPE.

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QUESTION: Under RA 9646, can a license real estate broker get a registration and license even if he has no official place of business?

ANSWER: He can get a Registration Certificate, but should not be able to get a License. Kung nakakuha ng license, anomaly yan.

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QUESTION: What is the difference between an in-house broker and an external broker?

ANSWER: The Developer or Real Estate Marketing Company spends for the overhead of the broker's office. The External Broker spends for the overhead of his own independent office. Normally, the commission rate of the In-house Broker is smaller than the External Broker, kasi gumagastos ng overhead ang Company sa in-house Broker eh.

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QUESTION: Under RA 9646, can unlicensed/unregistered real estate agents continue to operate under a Special Power of Attorney issued by the property owner or developer?

ANSWER: YES. As long as the Power of Attorney document does not contain a clause that obligates the property owner to compensate the agent.

QUESTION: So there is no commission for the person w/ the SPA? (At least not in writing)

ANSWER: As long as the SPA does not have a clause on the seller's obligation to pay commission, then the transaction is exempted from RESA. There is no prohibition in voluntary giving and receiving a gratuity money for a successful SPA.

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QUESTION: Under RA 9646, can a real estate broker just allow his license number to be used by estate marketing companies and just collect a percentage commission without hands-on supervision over the salespersons?

ANSWER: NO. There has to be a job rendered to be entitled to the commission. The job of the broker is to supervise the operation of Salespersons registered under his license.

QUESTION: Isn't that like just being an External Broker with the In-House salespersons doing most of the work?

ANSWER: In that case on the question, the answer is NO. Meaning, it is unethical for the Broker to have his licensed used by someone he cannot supervise. The Broker has to have supervision and accountability over the operations of his salespersons -- this is the core essense of the broker-salesperson relationship that RA 9646.

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QUESTION: Sir John, is a Broker required to issue an Official Receipt for the commission he received?

ANSWER: YES of course. Pag wala yang Official Receipt, eh fly-by-night Broker yan na tax evader. Kaya nga sa RA 9646, merong provision on the development of the Code of Ethics and Responsibilities (CES). Isa yang tax-paying sa mga Responsibilities. Sa ngayon, wala pang CES.

QUESTION: How do you get your own official receipts?

ANSWER: In order to satisfy the Official Place of Business requirement in Sec 33 of RA 9646, you have to go through the process of starting-up with renting an office space, getting a Business Name Registration at DTI, Barangay Clearance for your business, Business Permit from City Hall, SSS Registration Number, and then have Official Receipts printed through the authorization of BIR. The law wants to stop clandestine real estate deals where Brokers can get away without paying taxes from the income they earn from commissions and other monetary receipts.

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QUESTION: Sir John, ano ang requirement for registration na naka-saad sa RA 9646 na na overlook nitong anomalous na PRB-RES?

ANSWER: Marami sila na overlook. (1) Psychological Fitness test per Sec 18, (2) Must have an Official Place of Business per sec 33. Meron din silang lapses on Citizenship requirement and CPE requirement. I think these guys are incompetent.

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Question: Under RA 9646, can a person, who is an unlicensed real estate professional, own a real estate service company?

ANSWER: YES. But he has to hire the services of licensed and registered real estate service professionals.

Just like a bus company na ang may-ari ay walang mga kamay at paa, at walang driver's license. He can own a bus company but he has to hire professional drivers to operate the his bus.

QUESTION: sir when u say licensed and registered, broker ba? quite interesting...

ANSWER: Marami ang hindi nakaka intindi nito na nag-tuturo ng CRESR and CPE. Ang Broker Registration Certificate (BRC) ay iba pa yan sa Broker License Card (BLC).

Yang BRC ay papel yan na ini-issue ng PRC na parang Diploma na yan na nare-receive mo during Oathtaking and ilalagay mo display sa wall ng Office mo per Sec 33 or RA 9646; hindi eto nire-renew at pinapapalitan lang eto ng PRC pag nawala/ninakaw. This BRC shows that you are Registered in PRC. Kahit may BRC ka, hindi ka pa makapag-practice, kailangan mo ng BLC.

Yang BLC ay plastic card yan. Nirerenew mo yan every two years I think. Before you can renew that, kailangan mai-pasa mo other requirements katulad ng office inspection, tax payment clearance, CPE, etc.

Pati yang PRB-RES na umiikot dyan na naka-upo sa presidential table ng mga consultation at iba pang gathering ng mga brokers, hindi nila alam etong distinction na eto between BRC and BLC.

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QUESTION: Sir John, when you say "eradication of colorum", do you want to jail the colorums?

ANSWER: For me, personally, I believe that INTEGRATION is the only way towards peaceful eradication of colorum. The kind of integration strategy in my heart is not coercive, but attractive policy framework and an equal application of law where each working professonal will financially prosper.

Naniniwala ako na dumami ang colorum salespersons dahil sa kapabayaan ng mga leader ng mga Associations at mga nagtuturo ng CRESR and CPE. The failure was rooted on EDUCATION! The brokers were molded to become freelance agents rather than supervisors/managers of agents. As a result of the failure, the brokers erroneously perceive the agents as their competitors instead of allies. On the side of the agents, it is excusable that they were not able to register in the past (in DTI and HLURB) because NO BROKERS TOOK THEM IN!

Did the government (DTI and HLURB) failed in the real estate service sector? YES. BIG BIG BIG BIG FAILURE by government.

So now we have RA 9646. We have renewed NEW HOPES. Let's not allow the old dogs to screw this up, PLEASE!

COMMENT: Sir John, actually po its the Developers who allowed non-license to sell for them, as long as they produce. According to developers mas masipag daw po ang non license kesa sa license. May mga mayayabang din po na non-license after mo turuan pag natuto na susuwagin ka na gusto nya sya na broker. Ang because of their threat na hindi bibenta pag di sila gawin na broker the developer has no other means but to make them broker despite na ma hurt ang license broker.

ANSWER: Totoo yan. Maraming broker na ginagawa lang part-time job angpagiging broker, yung iba nga mga retirado na ang edad. Marami din broker na hindi naghahabol ng benta kasi part-time lang nila ang pagiging broker eh, parang prestige badge lang ba ang kanilang pagka broker. Ang broker din ay hindi committed exclusively sa isang developer, as a result eh nagseselos ang developer. Dahil sa mga factors na eto, talagang pagdating sa selling power, eh mababa ang pagtingin ng mga Developers sa brokers.

I understand all these issues and I believe, I can answer all question kahit iharap nyo pa ako sa isang panel ng mga presidente ng mga developers, and I am pretty sure things will change for the best for all parties if we just allow the RA 9646 and IPORESP Formation to be implemented. Pag mag-kanya-kanya ang mga sectors na mag-lobby for their own exemption, favor, and protection eh mas lalong magiging magulo.

Ngayon hindi na pwede pa-badge-badge na lang ang broker. Meron nang requirement na "Official Place of Business". Ang Office ay magastos yan sa overhead, so pag Independent Broker ka dapat masipag ka talaga, at pag In-house Broker ka eh dapat masipag ka at loyal ka sa Developer mo. Ganito ang magiging medium-term set-up.

Pero pag ma-implement na ng IPORESP ang Philippine National Listing, tiba-tiba si Developer kasi magiging open market na. Pag ma-encode na ni Developersa National Listing ang mga binibenta nyang mga projects eh in just a matter of seconds pwede na yan ibenta ng lahat na brokers and salespersons all over the Philippines.

Meron din akong kilala na mga Brokers na merong Office na kumukuha din ng unregistered salesperson (or agent) to operate flier saturation drives. Ang mga eto ay napaka active pa sa mga Associations, mga leader pa nga eh. Hindi ko ma-intindihan kung bakit hindi sumusunod sa registration requirement ang mga Brokers na eto.

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PERSONAL MESSAGE: Sir John, I am unlicensed and unregistered real estate professional. I am a Sales Director in one of the big Developers. As a Director, I have Sales Managers and many agents down under my division, I recruited them all, and I don't wanna give them up. Assuming I can't pass the Broker's Exam, what will I do?

ANSWER: I will answer this by IPORESP Group Chat tonight.‎... kung papayag ang asker na magpakilala. Kung hindi, I'll just answer it here in the comment.

Hehehehe. Hindi pumayag. Okay here are the things that you have to know and things that you have to do to protect your hold on your salespersons.

1. AWARENESS. Sooner by Surprise, that Developer Corporation will have to fire and replace you with a licensed real estate broker to comply with the RESA Law. They are telling you now that they will fight in Supreme Court for you to stay, but you don't see that they are just buying time to secure those salespersons away from you.

2. TRANSITION. Meet your salespersons and brief them of the truth. Tell them about RA 9646. Tell them the truth that they should have been registered as Salespersons per PD 957 but you didn't do it because you yourself is not a licensed broker. Tell them that the Developers will soon have to replace you. Now, GET THEIR SYMPAHY. You are a team, those are your people through the years. They trust you and they will stick with you if you have a way out without scattering your team. Tell them you will establish your own Real Estate Marketing Company and tell your salespersons that they can always come with you.

3. INDEPENDENCE. In this portion, I assume you earned sufficient savings from the sales that you normally brag about, otherwise you skip this portion and let's talk about SSS Retirement Benefits. If you have savings, then start-up your own Real Estate Company. You hire Brokers to manage your company, and register your salespersons under the Brokers. Don't worry about listings when you are already an independent real estate marketing company because you are IPORESP and we have a Philippine National Listing Project (read about it).

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QUESTION: Can a salesperson transfer to another registered broker anytime of the year or can he file a resignation letter and transfer to another group?do we expect them to sign in our contract of agency? to avoid cross-selling among salespersons and brokers. Do we a specific rule about this matter ?thank you and more power!!

ANSWER: @Alex, thank you for the question.

1. YES, the Salesperson can resign his contract from of one Broker and transafer to another Broker, provided that there is no condition that will be breach in previous contract. But a Salesperson cannot b...e under two Brokers simultaneously. (Basis: Sec 31 RA 9646 and Doctrine of Conflict of Competing Interest)

2. The contract between the Broker and Salesperson is called "Accreditation Contract" which must be signed by both. The Salesperson needs to Register in the PRC and the PRC needs to "Authorize" this Accreditation Contract before it can take affect.

3. No cross-selling because only the Broker can close a sale. The Salesperson will receive compensation for the service he rendered to his Broker, under a variety of conditions that is previously agreed upon by the Broker and Salesperson in the Accreditation Contract. In short, the Accreditation Contract may vary from one Broker to another Broker, and the variety will play as a freemarket mechanism that will promote competetion and efficiency among Brokers. However, the AIPORESP may standardize the commission sharing to prevent the inefficiency of too much transfers of Salespersons from one Broker to another.

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QUESTION: How can a broker perform better kung ang ka competensya nya non-licensed? Mas maganda ang competition kung license to license. Mag eexcel talaga ang magaling kung lahat starts the same, license and walang padrino?

ANSWER: The competition can only be perfect if the regulatory mechanism perfectly works, and this can only be done when the RA 9646 is properly followed, strictly implemented, and loopholes are clarified through vibrant democracy of the IPORESP.

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QUESTION: Sir John, bakit po hindi nire-require ng mga developers ang mga ahente nila na magpa-register sa DTI and HLURB noong araw atsaka ngayon?


ANSWER: dahil madali i-exploit ang mga ahente pag wala silang government protection. Wala din legal leverage ang colorum, pwede nilang denggoyin ang commission. Kumikita din sila ng malaki sa income taxes withheld na hindi na-reremit.


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QUESTION: Sir John, bakit po hindi nire-require ng mga developers ang mga ahente nila na magpa-register sa DTI and HLURB noong araw atsaka ngayon?

ANSWER: dahil madali i-exploit ang mga ahente pag wala silang government protection. Wala din legal leverage ang colorum, pwede nilang denggoyin ang commission. Kumikita din sila ng malaki sa income taxes withheld na hindi na-reremit.

Grabe ang exploitation nila sa mga ahente. Pinapa-saturate buong araw ng fliers, allowance lang binibigay, walang sweldo, walang benefits. Tapos ang naka-tatak pa na pangalan sa likod ng flier eh ang ahente na walang registration/license, ehhh bawal ka ya yan under PD 975. Matagal na nilang violate yan, kasabwat na ng mga Developers ang mga Associations sa toleration ng anomaly na yan kaya hindi yan na correct.

Ngayon under RA 9646, binibigyan na ang lahat ng government protection, eto namang Developers at Association din ang nag-hahari-harian gumapang sa PRC, kaya patuloy na ma-eexploit yang mga ahente. Tingnan mo nga yang siningit nila na 120 hours trainingrequirement ng salesperson, grabe na pangwarta yan. Sino kayang ahente na gagastos para sa 120 hours training na yan; at kung developer naman ang gagastos eh mag sisimula na may utang ang ahente.

Kailangan ng reporma, kaya tayo nandito sa IPORESP. At lalaban tayo.

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QUESTION: Sir John, under RA 9646, the Salesperson is only allowed to collect compensation from the Broker. How will the Salesperson know if the Broker received the commission already, or his share is due already?

ANSWER: The IPORESP National Listing System will also be used to promote transparency and prevent buyer-seller-broker-salesperson disputes on payment information.

The National Listing System information will surely be providing real-time information. You would know the status of a property, whether it is actively for sale, or for lease, or on reservation, on conditional sale, or under pending due diligence clearance, etc. I believe there should be no no dispute if information is clear, reliable, and accessible.