QUESTION: Sir John, what is colorum? Are all colorum agents illegal? ANSWER: Colorum means unregistered or unlicensed in PRC and they are generally illegal. There are some types of colorum agents that are NOT ILLEGAL such as the holder of Special Power of Attorney (SPA), persons who act in pursuance of court order such as those selling foreclosed properties, receivers/trustees/assignee in bankruptcy or insolvency proceedings.
A colorum who receive "commissions" are already covered by the penalties set forth for illegal real estate service practice stated in RA 9646. However, bank employees are entitled to receive salaries from the bank (but not from the owner of a foreclosed property). Receivers/assignees/trustees can receive property management fees, which the court normally specify in the bancruptcy resolution. SPAs cannot demand compensation, but there is no law that will prevent the owner from giving out-of-the-pocket gratuities to SPAs.
2 comments:
If a person is working for the broker at a new subdivision, then can they pass out flyers or show potential buyers homes for sale at the subdivision? Therefore, there are not colorum agents, right? They are legal agents if they are working with a broker working for the owner of the subdivision - is that correct?
Thanks
Yes, that is correct. By the fliers alone that are distributed by Salespersons who work for Brokers, you would know that the flier is a marketing machinery of a Broker when you can read the accurate info of the Broker in the flier (usually at the end portion), showing the following info: Full Name of Broker, PRC Lic # of Broker, and HLURB Reg # of Broker -- and these info must be verifiable via website of PRC and HLURB. If you see the name of the Salesperson, it should also include the Salesperson's HLURB Reg # that must also be verifiable via HLURB website.
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