The discriminating loophole of RA 9646

VERY VERY VERY IMPORTANT! QUESTION: Sir John, I have read in your very old blogs that independent sole propriotor brokers are exempt from the 1:20 broker to salesperson maximum ratio? Is this stil true? ANSWER: YES. The 1:20 ratio only applies to CORPORATE PRACTICE. The 1:20 ratio is purposively put under Section 32 instead of Section 31. That's the discriminating loophole of the RESA law. Pag sole proprietor ka, walang limit ang salesperson mo.

That is what I was saying in my old blogs, it is better if you are an independent broker than a corporate broker. Yang1:20 ay para yan sa mga developers. Wala yan sa originnal Bill, pero paglabas ng batas, yan ang lumabas, yan ang purpose ng insertion na yan.

Ang nagtanung nito ay isang diligent na invisible student ko. Grabe angpag-aaral niya, umabot na siya doon malapit sa sukdulan ng pinaka luma kong blog. Yan ang maka inherit lahat na kalaman ko.

I said, "If you decide to become an in-house broker of developers, you will be limited to only 20 salespersons. If you decide to become an independent sole proprietorship, you can get as many salespersons as you want, sell whatever project you want, and serve a greater number of our countrymen." (JRP, AUGUST 2009)

But take note na pag Independent Broker ka and your business entity is formed as a corporation or partnership instead of a sole proprietorship, mahahagip ka ng RESA Sec 32 limitation of 1:20 ratio.


Eva Marxaud said...

Sir John, I intend to register my sole proprietorship Realty business as an independent broker by January next year...Can I really have as many sales person I want? Can I give them certification to have license? Will PRC approves them, how about the rule of 1:20 ratio to assure close and effective supervisions?

What IF I have already internal sales team heads with each of them have salespersons under them but all licensed under my supervisions as Real Estate Broker and there is new IRR RA 9646 Ammendments/insertions covering sole proprietorship; to impose also the 1:20 ratio? Is that possible?

I am not pretty sure if my question makes sense but I am really wondering..thank you


I cannot answer in behalf of PRC.

Your dream is very common. But be aware that reality does not match what we can read in RA 9646. At present, the PRC is a big failure, there is currently an "unlevel playing field" in the real estate service sector because it is controlled by an oligarchy. You must understand that registering a salesperson means COST and FINANCIAL INVESTMENT. If you push your plan, all I can say is you will be taking a huge financial risk.

Honestly, under the present anomalous component and oligarchic policy of PRB-RES, I recommend to all real estate agents that they wait and see before they register in the PRC as Salespersons and Brokers. There is no need to hurry because we can't smell any sign that PRC is implementing the RA 9646 in a straightforward manner. Pag mag register yang mga salesperson mo ngayon as you plan, magiging panalo sila sa papeles, pero matatalo sila sa competition sa merkado kasi ma-tali kamay nila sa labanan, and matatalo din ang registration expense investment ninyo.