APREA Press Release Criticizing GPH for Failure in REITs


APREA criticizes Philippines government failure to implement REITs Potential benefit to national economy at risk August 9 2011, Singapore – The Asia Pacific Real Estate Association (APREA), which promotes and represents the real estate sector on a regional basis, has reacted strongly to the news that SM Prime Holdings has dropped its plans to launch a REIT because of insistence by government regulators on proposed rules that APREA and the industry in general have repeatedly stated to be unworkable. The Philippines introduced a REIT Act as far back as December 2009. However, supporting regulations are required for the law to become operative.

Draft regulations were prepared in May 2010 but the new administration chose to re-open certain issues, of particular note increasing the minimum level of public ownership from the level prescribed in the Act of 33% to a sliding scale of 40% rising to 67% in 3 years. 33% is already high by international standards and the sliding scale proposed has been widely critcised as being unworkable and risks killing off the REIT idea in the Philippines.
Peter Mitchell, CEO of APREA said, “It is now getting on for 2 years since the REIT Act was enacted. There has been a lot of global institutional interest in investing in new REITs in the Philippines and the advent of REITs has been eagerly watched.

“The benefits that REITs bring to the broader economy are well documented and it is therefore very disappointing that the regulators in the Philippines are continuing to delay their introduction. There seems to be a failure to understand the economic benefit, what it takes to create a successful REIT market and how global institutions allocate funds to listed real estate.

“The record over the last year looks very sorry compared to the way in which REIT laws have been welcomed in the other countries in the region.

“The minimum public ownership condition, even if accepted by a sponsor, would
result in very sub-optimal products being offered, to the detriment of investors. Either way, if insisted upon it will ensure that REITs won’t successfully get under way in the Philippines.

“To be sure, there are aspects of the new law that won’t be perfect, but the
experience of other countries shows that it is best to get it under way and consider enhancements on the basis of performance.

“The window won’t stay open for ever, and the obfuscating may kill a major potential benefit to the economy through, amongst other things, billions of extra dollars flowing in.”

About APREA:

APREA is a non-profit industry association that works to encourage greater investment in the real estate sector in Asia Pacific through the provision of better information to investors, improving the general operating environment, encouraging best practices and unifying and strengthening the industry. APREA’s mission is to:

• Promote the real estate sector in the Asia Pacific region to domestic and
foreign investors
• Develop a unified and powerful professional industry body, and
• Represent the sector to governments and regulators to improve the commercial operating environment for members Its membership comprises real estate companies, listed real estate trusts, unlisted property funds, investment managers, investment banks, property securities fund managers, institutional investors, real estate consultants, corporate advisors, stockbrokers, investment advisors and universities.

APREA membership is the gateway to a network of the industry’s most influential decision makers and provides the opportunity to influence and participate in the development of the real estate markets in Asia.

APREA’s achievements in education and information dissemination, and focus on improving the general real estate operating environment, have firmly entrenched it as the leading representative body for the industry in the region. In particular, its achievements in driving regulatory improvements within the listed real estate trust sector extend beyond existing markets and pave the way for the emergence of new markets in other Asian countries.

For additional information on APREA, please visit www.aprea.asia.

APREA focuses its attention on activities that benefit the real estate sector in the region. Among the recent achievements by APREA in Asia Pacific are:

• Production of the first edition of its Best Practices Handbook and the establishment of annual best practice regional awards
• Various submissions concerning proposed accounting and financial reporting standards that impact real estate entities
• Establishment of new member chapters in the Philippines, India and Australia
• Increased research and information available to members
• New committees – Sustainability, Valuation and Investor Outreach committees
• Launch of APREA Institute programs in Malaysia and the Philippines
• Advocacy to regulators in Japan, India, Hong Kong and Singapore
• Ongoing assistance to the Philippine Stock Exchange leading to the passing of a REIT Law
• Annual survey of Asian real estate leaders , the results of which were disseminated and discussed at the 2011 APREA Property Leaders Forum in Beijing
• Annual compensation trend survey of Asian real estate companies
• Successful annual Property Leaders Forum in Beijing in April 2011
• Successful annual VIP – Asia Investor Roundtable in Singapore in September 2010
• The holding of many industry events including seminars on debt and market outlook
• Launch of a research report on sustainability best practice amongst Asian companies
• Launch of a research report on corporate governance in Asian listed real estate vehicles, including corporate governance indices in Malaysia, Japan and Singapore
• Launch of a research report on the significance of real estate in Asian pension funds

About APREA Institute:

The APREA Institute, APREA’s education and training arm, provides the foundation for
raising standards in the industry through the provision of practical and applied training programs to real estate professionals. Its Certificate of Real Estate Investment Finance program is the only course of its kind in the region to be both developed and delivered by industry practitioners. It is currently delivered in China, Hong Kong, the Philippines, Malaysia and Singapore and the feasibility of delivery it in India is currently under consideration.

For more information, please contact:

Is Abdul Mohaimin
Events Manager, APREA
+65 64381110


The mandate is integrate, not wait-and-see

QUESTION: Sir John, I truly believe in our mandate to integrate per Sec 34 of RA 9646. Kanino ba talaga kami mag pa-integrate, sa PhilRES or IPORESP? Wise ba na mag wait-and-see kami?

ANSWER: Wrong yang wait-and-see kasi defiance yan sa integration mandate. Kahit saan sa dalawa pwede, kung gusto mo both ehhh pwede rin kasi mag merge naman yan later. Kung wise ka, dito ka magpa-integrate sa IPORESP kasi zero membership fee, maganda ang CPE-cost-reduction program, rock-solid ang anti-colorum program, may opportunity ka to take leadership, and most of all the Rltr title is here in IPORESP. Kung wise ka, mag-sign-up ka ng maaga sa IPORESP kasi merong "early-bird-catch-the-worm" policy dito.

Ang mga nagsasabi ng wait-and-see at nangungumbinsi sa iba na mag-wait-and-see ay mga kalaban yan ng IPORESP, kasi ayaw nila sa IPORESP kasi ma-apektohan ang hanapbuhay nila bilang voltures ng membership fee ng mga Association, voltures ng pagka-mahal-mahal na CPE na na deka-dekada na hindi nag-improve ang kalidad, voltures na mga protector ng mga colorum, voltures na oligarchs ng leadership positions sa mga Associations.

Ang mandate ay INTEGRATE, hindi wait-and-see. Ganyan ka simple yan.

Link to IPORESP Integration form in pdf format is at http://reibs.com/IPORESPin​tegrationForm.pdf

Link to IPORESP Integration form in MS Wors .doc format is at http://reibs.com/IPORESPin​tegrationForm.docx


Salesperson Registration Procedure of PRC - Full Text and Comments

Meron lumabas sa Manila Standard Page A2 today 16 August 2011, PRB-RES Resolution No. 13, Amendment on the IRR for Salespersons Accreditation. I don't like it for the following reasons:

(1) hindi pa rin klaro kung ilang hours ang 12 Credit Units ng Salesperson Seminar on Real Estate Brokerage. Basta ang pagkaka-alam ko, ang universal standard ay 1 Credit Unit = 16 Hours of Classroom Contact.

(2) ini-insist pa rin nila ang 120 hours training requirement. Malakas talaga ang mga pangwarta na Training Providers sa PRB-RES na eto.

(3) kulang ang specified document for proof of Filipino citizenship. Hindi nila alam na ang Birth Cert ay partial proof lang ng Filipino Citizenship.

(4) walang basis ang deadline and extension of deadline ng Salesperson Registration, kasi wala talagang "timing" provision yan sa RA 9646. Wala dapat deadline yan.

In short, lousy pagka-gawa ang Resolution #13.

The 2 year deadline (30 July 2009 -30 July 2011) only refers to Registration Without Exam. It does not cover Salespersons. Napaghahalata na hindi nagbabasa ng RA 9646 yang naka-upo ngayon sa PRB-RES, or pwede rin ginagamit lang sila ng isang grupo na gumagawa ng paraan para ma-pwersa ang mga Salesperson na mag attend ng pangwarta nila na 120 hours na Salespersons Training. Sorry na lang yang mga mang-gagantso, IPORESP will simply tell the salespersons to WAIT until IPORESP change all the bopols in PRB-RES.

Tingnan mo yang 2.3.5. ang nakalagay Broker "or" Developer. Sa RA 9646, sa Broker lang employable ang Salesperson. Papano kung walang broker ang Developer kung saan ma-assign ang 1:20 ratio na Salesperson? Halata sa Resolution 13 na eto na merong kamay na nag-didikta sa mga pagkakamali na eto. Niri-RAPE ng naka-upo ngayon na PRB-RES ang real estate service sector ng mga mali na policy na inconsistent sa RA 9646, akala nila pag ginagahasa palagi eh masasarapan na, mali sila.

Hindi lang yan ang kabobohan nila, they also breached the legislated 2nd-year College requirement. Etong mga naka-upo ngayon sa PRB-RES ay hindi pwede sa trabaho ng security guard yang mga yan kasi hindi marunong sumunod ng mandate. Merong klaro na legislated mandate, pero wala sa hulog ang ini-implement. Inutusan mo bumili ng toyo, pag balik mantika ang dala. Pag sinabi ng BATAS na Salesperson minimum 2nd Year College natapos, YAN ANG BATAS na dapat ipatupad ng PRB-RES. Mali yang Resolution #13, wala yan sa hulog. Etong PRB-RES gumagawa ng sariling batas, eh hindi maka-hintay sa Amendment ng RA 9646.Hindi yata nila alam ang kanilang OATH. Hindi yata nila alam na ang trust and confidence sa kanila ay based on their duty to implement the RA 9646. Etong naka-upo sa PRB-RES ngayon hindi ma-aasahan pag implement ng batas, may mga sariling mundo.

TUESDAY, August 16, 2011
Republic of the Philippines
Professional Regulation Commission

SERIES of 2011


WHEREAS, Sec. 31, Rule IV of Board Res. No. 02, Series of 2010, the "IRR of RA. No. 9646" provides, In part, the accreditation of real estate salespersons, to wit: "x x x no examination shall be given, but they shall be accredited by the Board, provided that they have completed at least two (2) years of college and have undergone training and seminars of at least twelve (12) credit units In real estate brokerage. THOSE SALESPERSONS WHO ARE REGISTERED WITH THE DTI/HLURB OR OTHER SALESPERSONS WHO ARE IN THE ACTIVE PRACTICE FOR AT LEAST THREE (3) YEARS, AS MAY BE CERTIFIED BY A LICENSED BROKER OR A REAL ESTATE DEVELOPER, PRIOR TO THE EFFECTIVITY OF RA NO. 9646 MAY ALSO BE ACCREDITED BY THE BOARD UNTIL 30 JULY 2011. Provided, further, that in both cases, such Real Estate Salespersons must have undergone at least one hundred twenty (120) training hours in'rea1 estate brokerage, and have submitted original NSO certificate of live birth/birth certificate, NBI clearance, certificate of educational attainment or its equivalent, notarized certificate. of training or seminar and notarized certificate of their supervising licensed brokers, as may be required by the Board X X X X X', (Capitalization supplied)

WHEREAS since the period for the filing of' DTI/HLURB registered and the other salespersons’ application for the accreditation as salesperson would be too short or inadequate, the Board decided to amend the aforequoted provision by extending the 30 July 2011 to another deadline; and

WHEREAS, inasmuch as the aforequoted provisions would need for the effective implementation thereof, the Professional Regulatory Board of Real Estate Service, the Board, agreed to issue the, necessary guidelines or procedures therefor;'

NOW, THEREFORE, the Board RESOLVES, as it is hereby RESOLVED, to amend Sec. 31, Rule IV of Board Res. No. 02, Series of 2010, the 'IRR of RA No. 9646", by extending the "30 July 2011' deadline to "31 December 2011" and to Issue the guidelines on the accreditation of real estate service salespersons under the same section.

These Guidelines in the Accreditation of Real Estate Salesperson shall be observed:

1. The applicant, shall follow these steps:

1.1 Submit the filled-up or accomplished application with documents for pre-evaluation to the Office of the Secretary, PRBs or of the Assistant Secretary, PRBs (3rd, Flr., Main Bldg.) at the PRC Central Office, and the Regional Office processing counters.

1.2 Proceed to the cashier, for payment of fees P600.00 (Ground' Flr., Main Bldg.)

1.3 Proceed to the Customer Service Center for metered documentary stamp.

1.4 Submit duly accomplished application form to the Office of the Asst. Secretary, PRBs (3" Flr.).

1.5 Verify the status of application at the PRC Website: www.prc.gov ph

2. The applicant shall submit the following papers' documents In support of his' her qualification and In compliance with other requirements:

2.1 For Real Estate Salesperson with no OTI' HLIJRB Registration.

2.1.1 Original and Photocopy of NSO Birth Certificate / Certificate of Live Birth

2.1.2 Original and Photocopy of NSO Marriage Certificate / Contract (for Married female only)

2.1.3 Original and Notarized Certificate of Educational attainment on the Completion of at least two (2) years of College

2.1.4 Original NBI Clearance (Valid)

2.1.5 Original and Notarized Certification of twelve (12) credit units on Real Estate Brokerage. ,

2.2 For Real Estate Salesperson with DTI / HLURB Registration

2.2.1 Original and Photocopy of NSO Birth Certificate I Certificate of Live Birth

2.2.2 Original and Photocopy of NSO Marriage Certificate I Contract (for Married female only).

2.2.3 Original and Notarized Certificate of Educational Attainment (at least H.S Diploma) "

2.2.4 Original NBI Clearance (Valid).

2.2.5 Original and Notarized Certification of his/her DTI Licensed Estate Broker or HLURB Registered Real Estate Developer.

2.2.6 Original and Photocopy of DTI / HLURB Certificate of Registration as Salesperson.

2.2.7 Original and Notarized Certification of at least One Hundred Twenty (120) Hours of training and seminar to be issued by the Employer or Provider (60 hrs. classroom lectures or seminars and 60 hrs. of training or fieldwork).

2.3 Real Estate Salesperson with at Least Three (3) years of Active Practice.

2.3.1 Original and Photocopy of NSO Birth Certificate / Certificate of Live Birth

2.3.2 Original and Photocopy of NSO Marriage Certificate / Contract (for Married female only)

2.3.3 Original and Notarized Certificate of Educational Attainment (at least H.S. Diploma)

2.3.4 Original NBI Clearance (Valid)

2.3.5 Original and Notarized Certification of his / her Supervising Real Estate Broker or HLURB registered Real Estate Developer.

2.3.6 Original and 'Notarized Certification of at least One Hundred Twenty (120) Hours of training and seminar to be Issued by the Employer or Provider (60 hrs. classroom lectures or seminars and 60 hrs. of training or fieldwork)

3. The Board shall include in the Resolution thereof subject to approval by the Commission the list of the salespersons accredited.

4. The Registration Division shall notify the accredited salespersons to enroll their names in the Roster of Accredited salespersons after they shall have paid the prescribed fee therefor.

5. Within a reasonable period, the enrolled accredited salespersons shall be issued with their identification cards (1D), containing the data or items that are material to the use thereof in their practice as real estate accredited salespersons.

6. The said 1D shall be renewable every year for a period of one (1) year from his / her birth month.

7. The Board and the Commission shall have the right to cancel, withdraw, confiscate, or not to renew such 1D upon violation of any law / rule or non-compliance with the conditions or obligations set forth therein.

This Resolution shall take effect after fifteen (15) days following its full and complete' publication In the Official Gazette or any major daily newspaper of general circulation in the Philippines.

Let a copy hereof be furnished to the UP Law Center, the Central and Regional Offices / Units and other governmental and non-governmental organizations that the PRBRES and the PRC may tap for their cooperative involvement on the implementation of this Resolution.

Done in the City of Manila, this 3rd day of August 2011.


Determining Proof of Filipino Citizenship

QUESTION: Sir John, ano po ba ang proof of Filipino Citizenship?

ANSWER: (1) Unexpired Philippine Passport, or (2) Philippine Birth Certificate coupled with an Affidavit of No Other Citizenship. Why? Kasi ang Dual Citizenship Law ay August 2003 lang naging effective. In short, if the person acquired other citizenship (say for example by naturalization) before August 2003, then the person must file Dual Citizenship in Bureau of Immigration to be able to restore the Filipino Citizenship that he/she lost when she acquired other citizenship before August 2003. Sa kulang-kulang na instruction nitomg mali-mali na PRB-RES, lumalabas na kahit hindi na Filipino Citizen ang RESP, makakakuha pa rin siya ng PRC License dahil Philippine Birth Cert lang ang pinakita niya.

Write this in your NOTES. Napakaraming CPE Provider and Lawyers and even PRC ang hindi alam etong rule na eto on Citizenship Determination. Sa FREE COACHING lang ng yours truly ninyo matutunan eto.

This lesson is very useful kasi Filipino Citizenship is a material factor in determining who are allowed to own land in the Philippines. Material din eto sa RESP registration and licensing that is restricted only to Filipino Citizenship. Pag dinaanan ng Integrity Review yang mga na-issue ng PRB-RES na mga license, sigurado merong sasablay dyan na ma-cancel ang registration.


The IPORESP Consultation Process

QUESTION: Sir John, how can IPORESP Guarantee that it is capable of listening to the voice of the wide democracy of the members when it comes to policy proposals that needs lobbying in Senate?

ANSWER: 100% Guarantee because IPORESP will have Directors for Policy and Governance Consultations (DPGC) at the provincial chapter levels for each of the clusters, namely: (1) Real Estate Brokers and Salespersons Society (BSS), (2) Real Estate Appraisers and Assessors Society (AAS), (3) Real Estate Consultants and Developers Society (CDS), (4) Real Estate Homeowners Association Officers and Administrators Society (HAOAS), (5) Real Estate Mortgagees and Guarantors Society (MGS). In short, the procedure in the By-Laws will say that IPORESP CEO will consult the 420 DPGCs in any proposed policy change on legislations.

QUESTION: Sir John, ang CEO or BOTs ba ang mag submit ng final position ng IPORESP sa Senate/Congress? Kahit ba merong consultation sa mga DPGC eh ang CEO and BOT pa rin ang masusunod. ANSWER: Ang personal opinion ng CEO and BOT member ay isu-submit nila sa DPGC kung saan sila sakop. Hindi mag-submit ng "one position" ang IPORESP sa Senate. Ang isu-submit ng IPORESP CEO sa Senate ay isang makapal na "position book" , which is the collection of the one-pager position papers of each participating DPGC. Bahala na ang bawat member ng Senate kung ano decision nila after nila mabasa ang "position book". Kung kailangan ng mga Senador nila ng Technical Resource Speaker na mag testify sa public consultation ng Senate Committee, sa "position book" din nila ma-determine kung sino ang mga DPGC ang iimbitahan nila.

Kung mahilig ka sa policy-making, mag submit ka na ng IPORESP Integration Form (IIF) para ma-imbitahan ka na maging DPGC ng province and cluster kung saan ka nabibilang.


DECISION! The 1:20 Broker:Salesperson ratio in RA 9646 has been a hot issue these days and I have received at least 20 inquiries about how should IPORESP handle the controversy. IPORESP don't tolerate individual lobbying in Senate or Supreme Court, especially on RA 9646 amendment. IPORESP will only bring it up in Senate when two conditions are met: (1) There exists a sufficient number of Brokers who have registered more than 20 Salespersons in IPORESP, (2) These Brokers with excessive number of Salespersons can justify that they have exhausted sufficient effort yet futile in finding other Brokers to absorb the excess. Sa ngayon, hindi pa kailangan isipin ang dagdag kasi wala pang Broker ang naka register sa IPORESP ng mahigit sa 20 Salespersons. In short, "ON THE NEED" basis ang policy lobbying service ng IPORESP para sa mga members.

The rule will apply on the proposal to lift the requirement on "completed at least 2nd year college" para sa mga salesperson. Kailangan meron munang sufficient number of IPORESP-Registered Salespersons na below 2nd Year College bago mag launch ng lobby ang IPORESP.


Bawat isa po tayo ay merong mga ayaw sa kahit anong partikular na provision sa RA 9646. Bawat isa din po tayo ay merong mga gustong interpretasyon sa RA 9646 na gusto natin malagay sa IRR and CodER. Pero PIGILAN po natin ang ating mga sarili na gumamit ng impluensya na mag lobby sa PRB-RES, or Supreme Court, or sa Congress, or sa Senate. Hindi po makatwiran ang individual or small group lobbying katulad ng ginagawa ng CREBA and PhilRES sa sarili lang nila ang iniisip nila. Ang RA 9646 ay dapat i-implement ng deretso, na hindi paliko-liko. Hintayin natin ang maayos na policy consultation process ng IPORESP



Brokers are not trained as supervisors

GREATEST FEAR! The greatest fear that I have is if the Developers will argue in Senate that they cannot take the risk of executing a business decision of hiring Brokers in the management and supervisory position because the supply of Brokers that we have now have no training in Salesperson Management. The mistake of the CRESR and CPE providers in the past is they trained and molded Brokers to become one-man-selling machine rather than managers of organized salespersons unit. Developers are not willing to hire Brokers because they know that Brokers have this mentality of treating salespersons as competitors rather than part of the team. BIG PROBLEM!


Please maximize the REALTERS Page in Facebook. You can advertise in the wall of REALTERS Page should you be a "Broker Looking for Salesperson Applicants" or a "Salespersons Looking for Brokers to Work With". Hayaan po natin mag flow ang symbiotic energy -- Developers must open-up to get in Brokers, and likewise Brokers must open-up to get in Salespersons. Gawin po nating VIBRANT ang real estate market. Salamat po.

It is the Broker who will control the chariot, and the salespersons will pull the chariot to its destination. The plentier the horses, the faster and more successful the Broker will be. As of now, the rule of the game is 20 maximum number of horses per chariot. So, Brokers, my advice is you have to maximize the number of your horses.


The survival kit requires three stages, (1) band together a strong IPORESP, (2) tailor-fit a CPE that enhances the value of RESPS from the perspective of the Sellers and Buyers, (3) build an online PNLS that will serve as the fastest way to sell and safest way to buy. Right now, we are stil in stage 1 and I am hoping that the RESPs feels the rush of a drowning sector that needs to grasp for air.

Real Estate Service Academy and Online CPE

QUESTION: Sir John, may nabasa akong "Real Estate Service Academy" under the Director of Charity Programs sa notes na Vacant Officers Positions in IPORESP. Ano yang Real Estate Service Academy?

ANSWER: It's the knowledge spring of IPORESP that produces Master Degree in Real Estate Service. Each batch will only have around 100 students. Each Provincial Chapter will nominate and sponsor one full-time scholar every year. All fresh grads of this Academy will serve as Provincial Executive Director of IPORESP. The top five graduates will be sent abroad (like Harvard or Univ of Reading UK) on full-time scholarship to finish second Masters Degree there or PhD in Real Estate Service, and they have to come back to Philippines after graduation to work for Real Estate Developers here.

Fully funded scholars yang mga students dyan sa Academy, so walang problema sa revenues ang mga Professors and Administrators ng Academy.

The requirement for graduation for each student is production of a 2-hour Educational Video of various Real Estate-relevant topics -- parang Thesis nila yan. These educational videos will be uploaded in the IPORESP Website, and anyone who views it pays around P150 to get a 2-hour training credit CPE or Salesperson Training (I used P150 based on current entrance fee to moviehouses). The earnings are split threeways, a portion for the author, a portion for the Provincial Chapter, and a portion for IPORESP HQ.

Let's say P50 goes to the author. If we have 50,000 RESPs who will access his topic, he gets P2.5M Royalty. As long as the topic stays in IPORESP Website, he/she will earn from it and the royalty can even be inheritted by his/her survivors. Yung capital ng Provincial Chapter for his scholarship ay mababawi agad in one year and habangbuhay kikita ang province nyan.

Ang mga RESPs naman eh kung ang requirement ng PRC ay 16 hours of CPE every 3 years, eh nasa P1,200 lang ang gagastusin nya sa pag access ng Online CPE. Atsaka various topics yan, hindi katulad nung mga nakaka-sawa na paulit-ulit na CRESR.

Lahat na scholars na ipapadala natin abroad obligado gumawa ng 2-hour Educational Video sa lahat na subjects na matutunan nila abroad and will be made available for us to access at a very minimal fee. In this way, we will also learn what our scholars learn abroad.

Lahat din na Real Estate Development Project (such as Condominium, Resorts, Residential Subdivisions, Golf and Country Clubs, Commercial Cmplex) ay dapat merong 1-hour Project Presentation that we can access in the IPORESP Online Learning System. So kung Broker ka, pag meron kang bagong applicant na Salesperson, bigyan mo lang siya ng Checklist (refer to catalogue) kung alin ang gusto mong subjects sa Online Training na i-take niya. Kung guso mo siya mag specialize in a particular project, ipa-take mo sya ng online training about that project over and above the other subjects na gusto mo ipa-take sa kanya. Pag ma-kompleto na nya yung nasa checklist mo, ipakita niya ang Printed Training Certificates niya, verify mo sa system kung talaga bang ti-nake niya ang online training, and then recommend mo na siya sa IPORESP for Registration and then sa PRC. Ganyan lang ka-simple ang Salesperson Training.

In short, say goodbye to the traditional classroom instruction. Online na lahat. Pare-pareho makukuha nating quality ng training.

Yun namang mga gustong mag-specialize in generating income from teaching, ang advice ko sa kanila, sumulat sila ng script sa mga subjects na tinuturo nila. Then IPORESP HQ will assist them in converting those scripts into video presentation, and upload it in the IPORESP Website. Pag merong mag take, kikita ang author ng passive income forever. Mas malaki ang kikitain ng mga independent authors kasi wala silang ka-hati sa Royalty. Atsaka walang monopoly yan kasi pwede namang iba-ibang author ang isang topic -- lets say ang explanatory presentation ng topic na RA 9646 ay pwedeng merong iba't ibang version dahil sa iba't ibang author. Kung mahilig ka lang mag-basa ng mga books on Management, Leadership, Marketing, Negotiation, etc. pwede mo yan gawan ng script and upload the educational video in the Online Learning System.

Ang Masters Degree, usually around 700 hours of learning time ang dinadaanan ng mga yan bago sila ma-gawaran ng Masters Degree sa mga Universities. So, pwede rin nating gawin eh kapag ang isang RESP ay umabot na sa 700 hours of online training ang na-accumulate niya, ehhh bigyan na natin siya ng Masters Degree Certificate.

QUESTION: Sir John, how will IPORESP implement this? ANSWER: There is a Director position in IPORESP called Chapter Director for Educational and Research Contributions (DERC). There will be one DERC in each Province and Society nationwide, so tha would be around 420 DERCs nationwide. The function of this DERC, which is a requirement to maintain his/her position, is to contribute at least one (1) topic per year, and he can work on it alone or he can also tap the RESPs in his/her area for some inputs. The product of the DERCs are all consolidated and properly catalogued in the Real Estate Academy Online in IPORESP Website.

That's it! Now if you have read this and have not yet integrated into IPORESP, you better integrate now and invite your fellow RESPs too. Our website, where you can integrate using an online form, is at http://iporesp.org


IPORESP integration form and salesperson registration form



Q: Who are qualified to submit this IIF? ANSWER: LAHAT dapat mag submit. Ahente, Salesperson, Broker, Appraiser, Consultant, Assessor. May PRC Registration man or wala, dapat MAG-SUBMIT ng Integration Form ASAP!

Q: May bayad ba? ANSWER: Wala. IPORESP Board of Trustees Approved Form on 01 August 2011. This Form is NOT FOR SALE and NO MEMBERSHIP FEE is required. If you need a .PDF or .DOC format of the form, please request for it by emailing johnpetalcorin@gmail.com or also you can download it from these links:

Link to IPORESP Integration form in pdf format is at http://reibs.com/IPORESPin​tegrationForm.pdf

Link to IPORESP Integration form in MS Wors .doc format is at http://reibs.com/IPORESPin​tegrationForm.docx

Q: Pwede ba submit by email? ANSWER: Hindi pwede. Ipadala po by LBC ang originally signed na document na merong dry seal ng Notaryo. Kung grupo kayo sa isang area, mas maganda kung ipadala ninyo by LBC in bulk para tipid sa LBC courier fee. Group sending is only good ha kapag nasa gathering kayo and sabay sabay kayo mag completo and magpa notaryo ng form. Pero kung iba-ibang place kayo, send it individually, no need to wait for it to be collected by one person. Huwag na i-tengga. Kung ang bulk sending ay makaka tagal lang, have them send it individually na lang ASAP.Kasi ang bulk sending kailangan nyo pa physically collectahin yan, ehhhh makakatagal lang yan.

Q: May deadline ba eto? ANSWER: Meron, kahapon pa deadline nyan, hehehe. Mag submit po kayo ng maaga kasi may dalawang workload po ang gagawin sa Processing Site (Marikina and Manila) ng Form pag-dating sa IPORESP, (#1) Examination, counterchecking, and analysis of data, and (#2) Encoding of Data in the computer and uploading in the IPORESP Website. Libre po ang workload #1 kasi manual technical expertise lang po yan. Pero po, ang workload #2 ay gumagastos po tayo nyan para sa Internet Encoding Shop na gagawa ng pa-isa-isang pag upload sa Internet. Wala pa po tayong pondo, so ang mga initial gastos ay donation/subsidized/abono muna ng Lead Convenor. Pag ma-ubos na po ang pang abono, magkakaroon ng panibagong policy na mag-bayad na ng pang Workload #2 by LBC directa sa Internet Encoding Shop ang mga hindi maagap mag-submit ng Form.

Q: Sir John, may ipapadala dagdag ako sayo na (2) IIF para sa dalawa kong salesperson. kelangan ko pa ba i-attach ung xerox copy PRC ID & COR ko para mairegister under my license? Or just the IFF only together with their individual personal ID. ANSWER: Magandang tanong yan. Xerox mo na lang magka-tabi ang ID nya and ID mo --- isang page lang. Mas makaka-tipid kayo kung isang batch lang ang LBC package ninyo lahat ikaw kasama salespersons/agents mo.

Q: Sir John, salesperson po ako and hindi ako maka register sa PRC kasi walang Broker dito sa mga inhouse sa amin, pero meron mga external broker? Mag completo din ba ako ng IPORESP Integration Form? ANSWER: Yes you have to complete the IIF. Pag dating ng IFF sa IPORESP, you will be listed as a presumed member and we will refer you to the Brokers in your area so that the Broker wh will be interested on you can contact you and you can sign-up under the supervision of the Broker who will be willing to train and absorb you for PRC Registration. We want ALL agents nationwide to be Registered. As far as IPORESP and RA 9646 is concerned, ang Broker na una mag register ng Salesperson ay siyang Broker na merong exclusive supervision on that particular salesperson. Hindi pwede ang Salesperson na meron dual registration sa dalawang Broke. Pag ang Salesperson/Agent ay naka submit na ng Integration Form sa IPORESP, kahit wala pa yang PRC Registration, hindi na yan siya pwede i-harass on violation of RA 9646. Hindi pwede bulabugin ang operations ng merkado sa maliit na kadahilanang mabagal ang PRC sa Registration or dahil merong malaking harang sa Registration dahil sa unreasonable CPE requirement ng anomalous IRR. IPORESP is the emergency sanctuary of ALL.

QUESTION: Sir John, labing apat po kami mag-babarkada sa College. Meron nang mga iba't ibang trabaho mga barkada ko, yung iba manager sa bangko, yung iba sa gobyerno, yung iba negosyante. Pag meron sila ni refer sa akin at maka benta ako, pwede ko po ba sila bigyan ng referral fee? Ano gagawin ko para maging legal? ANSWER: YES pwede! Ideal na Salesperson ay mga kakilala mo, kaibigan, kamag-anak. First, ipa kompleto nyo muna ng IPORESP Integration Form (libre naman eto so no problem). Then WAIT for around 6 months the next steps -- expect a policy on Salesperson Training Certification (ikaw na mag train sa kanila para tipid) and the worry-free IPORESP Assisted Salesperson Registration in PRC. Pero FIRST STEP muna, RIGHT NOW, submit the IPORESP Registration Form, ikaw and your barkadas.

QUESTION: Sir ok lang ba magsubmit na ng IIF kahit di pa nakapag salespersons seminar? kasi ako nagstop recruiting baka ako madali ng resa. pwede na ho ba tayo? Can we start now? total sila tuloy tuloy benta kahit walang license. ANSWER: YES Pwede na magpa-integrate sa IPORESP. At least meron nang protection ang Salesperson, we can attest that he/she is willing to REGISTER. Hanap-buhay must not stop for a small reason that the PRC is slow in Registration Process, or the Salesperson Training Requirement is too oppressive. All operation must continue para hindi ma-bulabog ang market.

QUESTION: Saan po i-submit ang IPORESP Integration Form after ma notaryohan? ANSWER: Ipadala mo by LBC sa IPORESP Processing Site. Nakalagay naman ang instruction sa upper portion ng Form.


Magna Carta for Homeowners Associations

Republic of the Philippines
Metro Manila

Fourteenth Congress
Third Regular Session

Begun and held in Metro Manila, on Monday, the twenty-seventh day of July, two thousand nine.

Republic Act No. 9904


Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:


Section 1. Title. – This Act shall be known as the "Magna Carta for Homeowners and Homeowners’ Associations".

Section 2. Declaration of Policy. - In fulfillment of the constitutional principles directing the State to encourage, promote and respect nongovernmental, community - based and people’s organizations in serving their legitimate collective interests in our participatory democracy, it is hereby declared the policy of the State to uphold the rights of the people to form unions, associations, or societies, and to recognize and promote the rights and the roles of homeowners as individuals and as members of the society and of homeowners' associations. To this end, the State shall endeavor to make available resources and assistance that will help them fulfill their roles In serving the needs and interests of their communities, in complementing the efforts of local government units (LGUs) in providing vital and basic services to our citizens, and in helping implement local and national government policies, programs, rules and ordinances for the development of the nation.

Section 3. Definition of Terms. - For purposes of this Act, the following terms shall mean:

(a) "Accounting period" refers to the fiscal or calendar year adopted by a homeowners’ association in the recording and reporting of its fiscal transactions.

(b) "Association" refers to the homeowners’ association which is a nonstock, nonprofit corporation registered with the Housing and Land Use Regulatory Board (HLURB), or one previously registered with the Home Insurance Guarantee Corporation (now Home Guaranty Corporation) or the Securities and Exchange Commission (SEC), organized by owners or purchasers of a lot in a subdivision/village or other residential real property located within the jurisdiction of the association; or awardees, usufructuaries, legal occupants and/or lessees of a housing unit and/or lot in a government socialized or economic housing or relocation project and other urban estates; or underprivileged and homeless citizens as defined under existing laws in the process of being accredited as usufructuaries or awardees of ownership rights under the Community Mortgage Program (CMP), Land Tenure Assistance Program (LTAP) and other similar programs in relation to a socialized housing project actually being Implemented by the national government or the LGU.

(c) "Association member" refers to a homeowner who is a member of the association where his/her housing unit or lot is situated and those defined in the articles of incorporation and bylaws of the association.

(d) "Basic community services and facilities" refer to services and facilities that redound to the benefit of all homeowners and from which, by reason of practicality, no homeowner may be excluded such as, but not limited to: security; street and vicinity lights; maintenance, repairs and cleaning of streets; garbage collection and disposal; and other similar services and facilities.

(e) "Board" refers to the board of directors or trustees of the association which has primary authority to manage the affairs of the association.

(f) "Common areas" refer to property owned or otherwise maintained, repaired or administered in whole or in part by the association including, but not limited to, roads, parks, playgrounds and open spaces as provided in Presidential Decree No. 1216.

(g) "Common expense" refers to costs incurred by the association to exercise any of the powers provided for in this Act.

(h) "Economic housing" refers to a type of housing project with lower interest rates and longer amortization periods provided to moderately low - income families, as defined under existing laws, rules and regulations.

(i) "Governing document" refers to the articles of incorporation, bylaws, conditions, rules and regulations of the association, or other written instrument by which the association has the authority to exercise any of the powers provided for in this Act.

(j) "Homeowner" refers to any of the following;

(1) An owner or purchaser of a lot in a subdivision/village;

(2) An awardee, usufructuary, or legal occupant of a unit, house and/or lot in a government socialized or economic housing or relocation project and other urban estates; or

(3) An informal settler in the process of being accredited as beneficiary or awardee of ownership rights under the CMP, LTAP, and other similar programs.

(k) "Residential real property" refers to any real property, the use of which is limited by law to primarily residential purposes.

(l) "Simple majority" refers to fifty percent (50%) plus one (1) of the total number of association members.

(m) "Socialized housing" refers to housing programs and projects covering houses and lots or home lots only undertaken by the government or the private sector for the underprivileged and homeless citizens which shall include sites and services development, long - term financing, liberalized terms on interest payments, and other benefits in accordance with the provisions of Republic Act No. 7279, otherwise known as the Urban Development and Housing Act of 1992 (UDHA).

(n) "Subdivision/Village" refers to a tract or parcel of land partitioned into individual lots, with or without improvements thereon, primarily for residential purposes.

Section 4. Registration with the HLURB. - Every association of homeowners shall be required to register with the HLURB. This registration shall serve to grant juridical personality to all such associations that have not previously acquired the same by operation of the General Corporation Law or by any other general law.

The procedure for registration shall be specifically provided for in the implementing rules and regulations to be promulgated by the HLURB pursuant to Section 28 of this Act.1avvphi1 Such procedure shall provide for an adjudicatory mechanism that will be observed in the event there is a dispute involving two (2) or more associations established within the same subdivision/village), community/area, or housing project seeking registration. In resolving this type of dispute, the HLURB shall take into account the date each association was legally established, the date of submission of its application for registration, the number of members, and other similar factors.

The existence of associations previously registered with the Home Insurance Guarantee Corporation or the SEC shall be respected, and the said associations shall not be charged a penalty when they register with the HLURB after this Act takes effect.


Section 5. Rights and Duties of Every Homeowner. - Every homeowner has the right to enjoy the basic community services and facilities: Provided, That he/she pays the necessary fees and other pertinent charges.

Section 6. Qualification of a Member. - A homeowner as defined under this Act shall be qualified to be a member of an association: Provided, however, That a lessee, usufructuary, or legal occupant shall have the right of a homeowner as set forth under this Act upon procurement of a written consent or authorization from the owner of the lot or housing unit.

Until such consent or authorization is revoked in writing, the owner of the lot or housing unit is deemed to have waived his/her rights enumerated under Section 7 of this Act, except subsection (b) of the same section which can be simultaneously enjoyed by both the owner and the lessee.

For purposes of this Act, the lessee authorized in accordance with this sect shall qualify as a member with all the rights enumerated in this Act, including the duties and obligations enumerated under Sections 7, 8 and 9 hereof: Provided, further, That lessees in government socialized housing projects or urban estates and those in communities of underprivileged and homeless citizens covered under the term under Section 3 of this Act will be considered as homeowners for the purpose of qualifying as a member of a homeowners' association without need of such written consent or authorization.

Section 7. Rights of a Member. - An association member has full rights:

(a) to avail of and enjoy all basic community services and the use of common areas and facilities;

(b) to inspect association books and records during office hours and to be provided upon request with annual reports, including financial statements;

(c) to participate, vote and be eligible for any elective or appointive office of the association subject to the qualifications as provided for in the bylaws;

(d) to demand and promptly receive deposits required by the association as soon as the condition for the deposit has been complied with or the period has expired;

(e) to participate in association meetings, elections and referenda, as long as his/her bona fide membership subsists; and

(f) to enjoy all other rights as may be provided for in the association bylaws.

Section 8. Duties of a Member. - A member shall have the following duties:

(a) to pay membership fees, dues and special assessments;

(b) to attend meetings of the association; and

(c) to support and participate In projects and activities of the association.

Section 9. Delinquent Member. - The bylaws shall provide for guidelines and procedures in determining who is a delinquent member, or a member not in good standing, and to prescribe the administrative sanctions to be imposed on such member. The right to due process shall be observed in cases where administrative sanctions are imposed on a delinquent member.


Section 10. Rights and Powers of the Association. - An association shall have the following rights and shall exercise the following powers:

(a) Subject to consultation and with the approval of a simple majority of the members, adopt and amend the articles of incorporation and bylaws, rules and regulations, pursuant to existing laws and regulations;

(b) In behalf of its members, institute, defend, or intervene in litigation and/or administrative proceedings affecting the welfare of the association and the subdivision/village as a whole, excluding, however, disputes that are not the responsibility of the association;

(c) Regulate the use, maintenance, repair, replacement and modification of common areas and cause additional improvements to be made part of the common areas: Provided, That the aforementioned do not contradict the provisions of the approved subdivision plan;

(d) Regulate access to, or passage through the subdivision/village roads for purposes of preserving privacy, tranquility, internal security, and safety and traffic order: Provided, That: (1) public consultations are held; (2) existing laws and regulations are met; (3) the authority of the concerned government agencies or units are obtained; and (4) the appropriate and necessary memoranda of agreement are executed among the concerned parties;

(e) Hire, discharge or contract managing agents and other employees, agents and independent contractors to ensure the full functioning and operation of the association;

(I) Subject to consultation with and the approval of a simple majority of the association members, acquire, hold, encumber and convey in its own name any right, title to or interest in real or personal property: Provided, That such approval of a simple majority of the association members shall not be required for the acquisition, holding, encumbrance and conveyance of personal properties in amounts not exceeding ten percent (10%) of the association’s cash holdings for its use in the course of its normal operations;

(g) Ensure the availability of quality water services at a reasonable price and at its option, administer and manage the waterworks system of the subdivision;

(h) Upon consultation, grant easements, leases, concessions and authority to use common areas and petition for or consent to the vacation of streets and alleys: Provided, That the said grant of easements, leases, concessions and authority shall not be applicable to access roads, main interconnecting roads, alleys and sidewalks within the subdivision;

(i) Impose or collect reasonable fees for the use of open spaces, facilities, and services of the association to defray necessary operational expenses, subject to the limitations and conditions imposed under the law, the regulations of the board and the association’s bylaws;

(j) Cause compliance with regard to height regulations, easements, use of homes, buildings, edifices, or structures that may be built within the subdivision, in accordance with the National Building Code, zoning laws, HLURB rules and regulations, existing local ordinances, and existing deeds of restriction;

(k) Subject to consultation and with the approval of a simple majority of the association members, allow the establishment of certain institutions such as, but not limited to, schools, hospitals, markets, grocery stores and other similar establishments that will necessarily affect the character of the subdivision/village in terms of traffic generation, and/or opening the area to outsiders which may result in the loss of privacy, security, safety, and tranquility to its residents, in accordance with the National Building Code, zoning laws, existing local ordinances, HLURB rules and regulations, and existing jurisprudence: Provided, That such prior approval shall not be necessary for the establishment of sari - sari stores, home industries and similar small - scale business enterprises within the subdivision/village classified as socialized housing;

(l) Suspend privileges of and services to and/or impose sanctions upon its members for violations and/or noncompliance with the association's bylaws, and rules and regulations;

(m) Petition for the creation of a separate barangay, independently or together with neighboring subdivisions: Provided, That all the requirements of the Local Government Code of 1991 are met; and

(n) Exercise any other powers conferred by the bylaws and the HLURB necessary for the governance and operation of the association.

Section 11. Board of Directors or Trustees. - The bylaws of the association shall provide for the qualifications and number of the directors or trustees that will comprise the board.

Section 12. Duties and Responsibilities of the Board. In addition to the duties and responsibilities stated in the bylaws of the association, the board shall have the following duties and responsibilities:

(a) Regularly maintain an accounting system using generally accepted accounting principles, and keep books of accounts, which shall be open for inspection to any homeowner and duly authorized representatives of government agencies upon request, during reasonable hours, on business days;

(b) Collect the fees, dues and assessments that may be provided for in the bylaws and approved by a majority of the members;

(c) Collect reasonable charges for assessments, and after due notice and hearing by the board in accordance with the procedures as provided in the bylaws, and rules and regulations adopted by the board, charge reasonable fines for late payments and for violation of the bylaws, rules, and regulations of the association, in accordance with a previously established schedule adopted by the board and furnished to the homeowners;

(d) Propose measures to raise funds and the utilization of such funds and submit the same for consideration of the members of the association;

(e) Undergo a free orientation by the HLURB or any other competent agency deputized by it on how to conduct meetings, preparation of minutes, handling of accounts, laws and pertinent rules and regulations within thirty (30) days after election or appointment;

(f) Discharge the duties and responsibilities provided for in the association’s bylaws; and

(g) Exercise such other powers as may be necessary and proper in accordance with this Act and for the accomplishment of the purposes for which the association was organized.

The board shall act in all instances on behalf of the association, except to amend the articles of incorporation, to dissolve the association, to elect members of the board or to determine the qualifications, powers and duties, or terms of office of the board, and other instances that require the vote or approval of the members themselves. In the performance of their duties, the officers and members of the board shall exercise the degree of care and loyalty required by such position.

Section 13. Removal of a Director or Trustee. - Through a signed petition of a simple majority of the association members in good standing, subject to a verification and validation by the HLURB, a director/trustee may be removed for causes provided in the bylaws of the association: Provided, That if a majority of the members of the board is removed, it shall be considered a dissolution of the entire board, in which case, Section 14 hereof shall govern.

Within sixty (60) days after the removal of a director or trustee, an election shall be called by the remainder of the board for the purpose of determining who shall hold office for the unexpired term of the removed director/trustee.

Section 14. Dissolution of the Board. - Through a signed petition of two - thirds (2/3) of the association members subject to a verification and validation by the HLURB, the board of the association may be dissolved for causes provided in the bylaws of the association.

Within sixty (60) days from the above dissolution, an election for a new board shall be called and conducted by the HLURB for the purpose of determining who shall hold office for the unexpired term of the dissolved board.

Until the new board members shall have been elected and qualified, the HLURB shall designate an interim board: Provided, That such board shall be composed of association members in good standing: Provided, further, That such interim board members shall not be eligible to run in the election called for the purpose of replacing the members of the dissolved board.

Section 15. Association Bylaws. - The bylaws of the association shall be adopted by a simple majority of the members of the association. Consistent with the provisions of this Act, it shall provide for:

(a) The rights, duties and obligations of members;

(b) The circumstances under which membership is acquired, maintained, and lost;

(c) The schedule, venue, and manner of conducting the regular, special, and emergency meetings of the general membership, the required quorum, and allowable proxies in such meetings;

(d) The number, qualifications, powers and duties, terms of office, manner of electing and removing the board and the filling of vacancies in the board: Provided, That the term of office of the members of the board shall not exceed two (2) years;

(e) The qualifications, positions, duties, election or appointment, and compensation of other officers and employees of the association: Provided, That the term of office of the other officers shall not exceed two (2) years: Provided, further, That no officer of the association holding a rank of director or trustee shall likewise be entitled to any compensation;

(f) The schedule, venue, and manner of conducting the regular, special, and emergency meetings of the board, the required quorum, and allowable proxies in such meetings;

(g) Such powers that the board may delegate to a managing agent, if any, or to other persons;

(h) Which of its officers may prepare, execute, certify and record amendments to the governing documents on behalf of the association;

(i) The grounds and procedure for removal of director or trustee, and the manner of filling up vacancies in the board, consistent with Section 13 of this Act;

(j) The grounds and procedure for dissolution of the board, and the manner of reconstituting the board, consistent with Sections 13 and 14 of this Act;

(k) The actions for limiting, broadening or denying the right to vote, and the extent thereof;

(I) The designation of the presiding officer at meetings of directors or trustees and members;

(m) The time for holding the regular election of directors or trustees and the mode or manner of giving notice thereof;

(n) The creation of election, grievance and audit committees, and such other committees which the association may deem necessary; as well as a conciliation or mediation mechanism for the amicable settlement of disputes among members, directors or trustees, officers and committee members of the association;

(o) The dues, fees, and special assessments to be imposed on a regular basis, and the manner in which the same may be imposed and/or increased;

(p) The method of adopting, amending, repealing and abrogating the bylaws;

(q) The list of acts constituting a violation by its officers and the corresponding penalties therefor;

(r) The penalties for violation of the bylaws; and

(s) Such other matters necessary for the proper or convenient transaction of its corporate business and affairs.

Section 16. Proxies. - Association members may vote in person or by proxy in all meetings of members. Proxies shall be in writing, signed by the member and filed before the scheduled meeting with the association secretary. Unless otherwise provided in the proxy, it shall be valid only for the meeting for which it is intended, No proxy shall be valid and effective for a period longer than three (3) years at anyone time unless earlier revoked by the member.

Section 17. Financial and Other Records. - The homeowners’ association is enjoined to observe the following, with regard to its funds, financial and other records:

(a) The association or its managing agent shall keep financial and other records sufficiently detailed to enable the association to fully declare to each member the true statement of its financial status. All financial and other records of the association including, but not limited to, checks, bank records and invoices, in whatever form these are kept, are the property of the association. Each association’s managing agent shall turn over all original books and records to the association immediately upon termination of the management relationship with the association, or upon such other demand as is made by the board. An association’s managing agent is entitled to keep association records. All records which the managing agent has turned over to the association shall be made reasonably available for the examination and copying by the managing agent;

(b) All records involving the affairs of the association shall be available for examination by all owners, holders of mortgages on the lots, and their respective authorized agents upon reasonable advanced notice, during normal working hours at the office of the association: Provided, That holders of mortgages on lots may have access to the information about the property held in mortgage with the written consent of the registered owner;

(c) A financial statement of the association shall be prepared annually by an auditor, the treasurer and/or an independent certified public accountant within ninety (90) days from the end of the accounting period to be posted in the association office, bulletin boards, or other conspicuous places within the subdivision/village, and to be submitted to the HLURB; and

(d) The funds of the association shall be kept in accounts in the name of the association and shall not be joined with the funds of any other association, or any person responsible for the custody of such funds.

Section 18. Relationship with LGUs. - Homeowners' associations shall complement, support and strengthen LGUs in providing vital services to their members and help implement local government policies, programs, ordinances, and rules.

Associations are encouraged to actively cooperate with LGUs in furtherance of their common goals and activities for the benefit of the residents of the subdivisions/villages and their environs.

Where the LGUs lack resources to provide for basic services, the associations shall endeavor to tap the means to provide for the same. In recognition of the associations’ efforts to assist the LGUs III providing such basic services, association dues and income derived from rentals of their facilities shall be tax - exempt: Provided, That such income and dues shall be used for the cleanliness, safety, security and other basic services needed by the members, including the maintenance of the facilities of their respective subdivisions or villages.

LGUs shall, upon due notice, hold public consultations with the members of the affected associations, especially their officers and directors, where proposed rules, zoning and other ordinances, projects and/or programs affecting their jurisdiction and surrounding vicinity are to be implemented prior to the effectivity or implementation of such rules, zoning, ordinances, projects or programs: Provided, That in cases of zonal reclassification, the approval of a simple majority of homeowners shall be required.

Such public consultations shall conform to the manner as specified in Rule XI, Article 54 of the implementing rules and regulations of Republic Act No. 7160, otherwise known as the Local Government Code of 1991.

Section 19. Relationship with National Government Agencies. - The associations shall complement, support and strengthen the efforts of the national government agencies in providing vital services to their members and help implement the national government policies and programs.

Associations are encouraged to actively cooperate with national government agencies in the furtherance of their common goals and activities for the benefit of the residents of the subdivisions and its environs. National government agencies shall consult the associations where proposed rules, projects and/or programs may affect their welfare.


Section 20. Duties and Responsibilities of the HLURB. - In addition to the powers, authorities and responsibilities vested in it by Republic Act No. 8763, Presidential Decree No. 902 - A, Batas Pambansa Big. 68 and Executive Order No. 535, Series of 1981, as amended, the HLURB shall:

(a) Regularly conduct free orientation for officers of homeowners’ associations or deputize another competent agency to conduct the orientation;

(b) Formulate and publish a Code of Ethics and Ethical Standards for board members detailing prohibited conflicts of interest;

(c) Register all associations, federations, confederations or umbrella organizations of the associations;

(d) Hear and decide inter - association and/or inter - association controversies and/or conflicts, without prejudice to filing civil and criminal cases by the parties concerned before the regular courts: Provided, That all decisions of the HLURB are appealable directly to the Court of Appeals;

(e) Formulate the rules or manner of verification and validation of petitions for the removal of director(s) or trustee(s) of the association or dissolution of the board pursuant to Sections 13 and 14 of this Act;

(f) Exercise the same powers over federations, confederations or umbrella organizations of the associations;

(g) Formulate, in consultation with the representatives of associations, federations, confederations or umbrella organizations of the associations, standard nomenclatures to be used for the associations' books of accounts, and a standard articles of incorporation and bylaws for homeowners' association for reference purposes;

(h) Formulate, in consultation with the representatives of associations, federations, confederations or umbrella organizations of the associations, the guidelines in regulating the kinds of contributions and fees that may be charged and/or collected by associations; and

(i) Call upon the Philippine National Police, other law enforcement agencies, and other instrumentalities of the government, if necessary, for the enforcement of its functions.

Section 21. Additional Positions and Personnel for the HLURB. - For purposes of this Act, the HLURB shall, upon its discretion, create positions and enlist additional personnel to carry out its mandate.


Section 22. Prohibited Acts. - It shall be prohibited for any person:

(a) To compel a homeowner to join the association, without prejudice to the provisions of the deed of restrictions, its extensions or renewals as approved by the majority vote of the members or as annotated on the title of the property; the contract for the purchase of a lot in the subdivision project; or an award under a CMP project or a similar tenurial arrangement;

(b) To deprive any homeowner of his/her right to avail of or enjoy basic community services and facilities where he/she has paid the dues, charges, and other fees for such services;

(c) To prevent any homeowner who has paid the required fees and charges from reasonably exercising his/her right to inspect association books and records;

(d) To prevent any member in good standing from participating in association meetings, elections and referenda;

(e) To deny any member due process in the imposition of administrative sanctions;

(f) To exercise rights and powers as stated m Section 10 in violation of the required consultation and approval of the required number of homeowners or members;

(g) To unreasonably fail to provide basic community services and facilities and maintain, repair, replace, or modify such facilities;

(h) To unreasonably fail to comply with Section 17 of this Act; or

(i) To violate any other provision of this Act.

Section 23. Penalties and Sanctions. - Any person who, intentionally or by gross negligence, violates any provision of this Act, fails to perform his/her functions under this Act and/or violates the rights of the members, shall be punished with a fine of not less than Five thousand pesos (Php5, 000.00) but not more than Fifty thousand pesos

(Php50, 000.00) and permanent disqualification from being elected or appointed as member of the board, officer or employee of the association, without prejudice to being charged before a regular court for violations of the provisions of the Revised Penal Code, Civil Code and other pertinent laws.

If the violation is committed by the association, the members, officers, directors or trustees of the association who have actually participated in, authorized, or ratified the prohibited act shall be held liable.

If the violation is committed by the employees and agents who acted in gross violation of the provisions of this Act, the officers, directors or trustees, or incorporators of the association shall be jointly and severally liable with the offending employees, agents, and the association.1avvphi1

Section 24. Review of Association's Bylaws. - In order to comply with the provisions of this Act, the homeowners' association shall, within six (6) months from the effectivity of this Act, conduct a review of its bylaws, draft its own rules of procedure to be incorporated in the bylaws and conduct a plebiscite for the approval of the members of the association. A simple majority shall be used to determine the approval of the bylaws.

Section 25. Appropriations. - The amounts necessary for the implementation of this Act and for carrying out the additional functions and responsibilities of the HLURB shall be included in the annual General Appropriations Act.

Section 26. Separability Clause. - If any provision of this Act is declared invalid or unconstitutional, the remainder of the Act shall remain valid and subsisting.

Section 27. Repealing Clause. - All other issuances, laws, decrees, orders, rules and regulations, or parts thereof inconsistent with this Act are hereby repealed or modified accordingly.

Section 28. Implementing Rules and Regulations. - The HLURB shall formulate and promulgate, in consultation with concerned sectors, rules and regulations necessary to implement the provisions of this Act within SIX (6) months of its effectivity.

No rule or regulation shall be issued which tends to undermine the organizational and territorial integrity of any association.

Section 29. Effectivity. - This Act shall take effect fifteen (15) days following Its publication ill the Official Gazette or III at least two (2) national newspapers of general circulation.


Speaker of the House of Representatives JUAN PONCE ENRILE
President of the Senate

This Act which is a consolidation of Senate Bill No. 3106 and House Bill No. 50 was finally passed by the Senate and the House of Representatives on October 13, 2009.
Secretary General House of Representatives EMMA LIRIO-REYES
Secretary of the Senate

Approved: JAN. 07, 2010

President of the Philippines