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.