Repeal of professional bond, another IPORESP advocacy
During the DTI days, our Professional Bond is only P5,000. The RA 9646 has increased the Professional Bond to P20,000. I can't find an argument in the transcript of the legislative deliberation when Real Estate Service Act was still a Legislative Bill that justifies the increase of the Professional Bond. So, it appears that there had been an insertion of some groups who wants to make money from Insurance Bonds. e are okay with Professional Bond, but we will advocate the reduction back to its original rate of P5,000, and the bond must be waved until IPORESP confirms that Colorum Practice is fully eradicated. It is not fair to deposit a Professional Bond to government if the government tolerates unlicensed practices. Hence, the REPEAL of the RA 9646 Provision below will be part of our advocacies. SEC. 26 Professional Indemnity Insurance/Cash or Surety Bond. All real estate brokers and private real estate appraisers shall, in addition to the oath referred to in the preceding section, be required to post a professional indemnity insurance/cash or surety bond, renewable every three (3) years, in an amount to be determined by the Board, which in no case shall be less than Twenty Thousand Pesos (P20,000.00) without prejudice to the additional requirement of the client. Comment from Karen Aranas: Ok naman ito. but based on my experience, there are clients na particular kung how much ang bond mo. They would even request for a higher bond if you're working on a big transaction w/ them. Karen, minimum Bond ang pinag-uusapan dyan. Ang Bond naman kasi pwede yan mas malaki pa dyan eh, pwede nga milyones ang bond. Pero minimum bond for licensing purposes only, hindi pwede excessive. Dapat yung tama lang. P5,000 is just right. I asked other professions, wala naman daw silang Bond requirement for initial and renewal of PRC license. Sa Doctors, ang bond nila ay sa Hospital, wherein pag na sue ang hospital, the hospital will charge it against the bond of the doctor. Looking back at my experience in evaluating government contractors, we used to have this thing we call Performance Bond that is deposited by the contractor along with his proposal to bid on a government project. Pag mag loko ang contractor and magkaroon ng damage ang gobyerno, pwede i-charge sa bond ng contractor. Dinideposit ang Bond in favor of the client. Applying what I learned from experience, self-study in the essence of bonds, and taking notes also of the feedback from interview, lumalabas na uncessary na i-require lahat na RESP na mag deposit ng bond sa PRC as a condition for licensing. Sumatotal, dapat abolish na yang Bond as requirement for licensing. However, i-retain pa rin ang provision na sinumang client ng RESP ay pwede mag demand na mag deposit ng Bond as an escrow sa PRC or any Bank. We will pursue the advocacy to REPEAL the surety bond provision in RA 9646 kasi dagdag pabigat gastos lang yan sa atin lahat. If ever we (you or myself) thinks we want to deposit a bond for whatever purpose that we think will be advantageous to us personally, even if no client requires it, we can still do it on our own, no one will stop our individual actions. But for the benefit of all, the Bond Provision must be repealed. Atsaka malaking SCAM yang issuance of surety bond by realty associations na hindi naman insurance company. Yang issuance of Certificate of Good Standing in lieu of surety bond ay isang malaking scam din yan ng mga traditional realty associations. Dapat nang matigil yang scam na yan. Comment from Karen Aranas: I'm a member of a realty association here in Cebu who refers to an insurance company. if referred by them to the insurance company here for the surety bond, meron kami discount mga 200 pesos yata yun... i forgot... I think they're given a referral fee & instead of taking it, they give it to us as discount. Karen, iba ang scam ng mga Associations dito sa Manila. Bayad ka sa kanila ng P1,000, bibigyan ka nila ng Certificate of Good Standing in lieu of Professional Bond, tatanggapin ng kakontsba sa DTI and HLURB at itatapon na papel para walang evidence. Kaya tingnan mo yang PhilRES, yan Cert of Good Standing ang pang-attract nila ng recruits. Scam yan. Yan ang presently na tinutukoy nilang "YOU CAN'T HANDLE THE TRUTH". Kasama ang PAREB, REBAP, NAR, dyan sa scam na yan. Dapat ma stop na yang fraud na yan. Pag maka-balik ako ng office, I'll show you how the actual evidence of this scam looks like - ang na involve ay N.A.REALTORS.