QUESTION: Rltr. John, businesswise, what will be the new practice when IPORESP becomes AIPORESP? You will reap the fruits of your licenses and get the DIGNITY of the profession. All Brokers and Appraisers who want to be listed in the Directory as "ACTIVE" will be required to set-up an office and have Official Receipt. We will MANDATE charging of PROFESSIONAL FEES on the following services menu. Ang hindi susunod, ma charge ng violation sa ETHICS! Walang colorum na palalampasin, ipakulong lahat, mga developer na nag employ ng colorum kakasuhan at singilin ng IPORESP ng P200,000 proprietary infringement damages.
PROFESSIONAL SERVICE MENU AND TARIFF
- Percentage Commission (separate table of standard will be provided)
- Verbal Consultation (in office) - P500
- Verbal Consultation (outside office) - P1,000 plus gas
- Issuance of Prescription (checklist of required documents) - P500
- Entry/Edit/Upload of Record in PNLS - P500
- Print-out of Listing Record from PNLS - P200/property
- Acceptance of Authority to Sell/Lease - P500
- Property Management - P20,000 per year
- Stamping of Clearance on Reservation Form - P500
- Stamping of Clearance on Contract to Sell - P500
- Stamping of Clearance on Deed of Sale - P500
- Stamping of Clearance on Start of Lease Contract - P500
- Stamping of Clearance on Ending of Lease Contract - P500
- Stamping of Construction Clearance by Real Estate Project Developer - P1,000
- Record Verification in Registry of Deeds - P1,500
- Record Verification in Assessor's Office - P1,500
- Entry-level Seminar of Salesperson - P3,000
- Management and Supervision of Independent Salesperson - P12,000/yr
- Photography of properties for sale for advertising purpose - P1,500
- Advertising clearance - P500
- Regular Routine Appraisal for Tax update purpose - P500
- Special Mandatory Appraisal of property for sale - P10,000
- Successful Colorum Reporting - P100,000 (payable by IPORESP)
- Waiving of Professional Service Fee, on case to case basis, would require BIR Clearance.
QUESTION: Are those rates quoted inclusive of VAT?
ANSWER: No. It does not include VAT. The service provider will add on it either 12%VAT or 3% Percentage Tax.
CALL FOR UNIFICATION
Now, why are you just sitting there? Everyone must help, you and me, everyone, in finding the RESPs and making them sign-up in IPORESP.
Meron pang mga provinces and municipalities na walang Brokers. Once we set up the AIPORESP, PNLS, and Professional Fee System, please try to explore the possibility of moving to the provinces and set-up your office there para maserbisyohan ang mga tao.
ADVERTISING CLEARANCE
QUESTION: Rltr. John, I read Advertising Clearance in the Service Menu of Professional Services. What is that?
ANSWER: With the PNLS up and running, LAHAT po na properties for sale and lease makikita po sa PNLS. LAHAT as in LAHAT, may broker man yan o wala.
Real Estate Advertising Companies, mga classified ads like Buy and Sell, SUlit, AyosDito, etc. whether online or print, will be Regulated. Bago ma ADVERTISE ang property, kailangan po ng Advertising Clearance and PNLS Upload, a procedure that is exclusively done by licensed brokers. Sa mga kaya po mag DIY sa pagbebenta ng properties nila, pwede po iwasan ang Agency Service (pagbabayad ng commission); pero hindi pwede iwasan ang pagbabayad sa Advertising Clearance and PNLS Upload.
QUESTION: Nikko Mahor: Entry-level Seminar of Salesperson - P3,000. Sir John, ang current price ay nasa 1.5k-2k lang po... you might want to adjust para pumareho lang sa existing providers.
answer: You need 16 hours of Salesperson Training -- essentials lang yan. At P200 per hour, that should be P3,200. Eight hours dyan ay sa Governance. Another eight hours sa Specific Products. Sila ang mag adjust sa akin. I am not the one who will adjust to them.
SALESPERSON SUPERVISION
QUESTION: Rltr. John, what is that Management and Supervision of Independent Salesperson (P12,000/yr) in the menu?
ANSWER: Salespersons need Brokers to attach their registration under; and also to supervise their compliance to governance. Salespersons can either be EMPLOYED under the broker or INDEPENDENT under the broker. Pag employed, COMMISSION SHARING SCHEME. Pag independent, yan ang P12,000 Supervision Fee na babayaran niya sa Broker.
But take note that JSA na ang gagamitin. Under the JSA, the Salesperson is provided by the Broker with a list of 56 Prospective Buyers to work on for the next 12 months, within the region lang para hindi siya masyado mabigatan sa transpo. Separate topic yang JSA.
So, each Salesperson wannabe is looking at investing around P15,000 while looking at a potential income from a list of 56 Prospective Buyers. As a matter of cross reference, please read also my blog titled "Here's A Good Deal for Salespersons".
WHO WILL DO THE SALES WORKLOAD?
QUESTION: Sir John, pwede ba personal na mag benta benta si Broker?
ANSWER: Hindi. Ang benta-benta ay trabaho yan ng Salesperson at hindi makikipag kompetensiya ang Broker sa Salesperson.
MANDATORY APPRAISAL
QUESTION: Rltr. John, ano po yang Mandatory Appraisal?
ANSWER: Magkakaroon ng government legislation (probably amendment of Local Government Code) na lahat na real estate property ay kailangan ng mandatory appraisal report every five years for Assessed Value Update purposes. The Appraisal can be done by private Appraisers. The asking price of all properties for sale will use the data from the Appraisal Report.
So, the active Appraisers gotta have good walking shoes and must know how to do it in a quick manner. As soon as the law takes effect, we have 5 years to prepare the procedure and set-up the Appraisers' Principal Place of Business (PPB) nationwide to assure the public that we can absorb the workload that will arrive like a tsunami. People will surely fall in line on queue to get the Appraiser's service.
FREELANCE AGENTS?
QUESTION: Nikko Mahor:"Salespersons can either be EMPLOYED under the broker or INDEPENDENT under the broker. Pag employed, COMMISSION SHARING SCHEME. Pag independent, yan ang P12,000 Supervision Fee na babayaran niya sa Broker." Question: When you say independent, I take it to mean freelance, sir?
ANSWER: Freelance refers to TIME committed for work. Parang Part-time salesperson sa weekend, pub dancer sa gabi, katulong sa araw. Gets mo? Independent means the working relationship of between the Broker and Salesperson is on INDEPENDENT CONTRACTOR basis. Now don't blink about the innovation that am about to say. Under the Independent Scheme, the Salesperson gets the Broker as Independent Contractor to provide him with Management and Supervision Services. So hindi na kailangan ni Salesperson magkaroon ng sariling Official Receipt. Only the BrokerOffices are required to have ORs. The Independent Salesperson pays the Broker P12,000 for one year and he/she gets one year Management and Supervision service -- the Broker will issue Official Receipt to the Salesperson for the P12,000 and also for the P3,000 training. As independent contractor scheme, the Salesperson gets 100% of the commission.
STAMPING SERVICES
QUESTION: Rltr. John, what is that Stamping? Where will we get the stamp?
ANSWER: IPORESP will have exclusive authority to manufacture and sell the TRODAT stamper for Project Development Consultants, Brokers, Appraisers, and Salespersons. Mabibili yan only from IPORESP. All stampers will have a print record in IPORESP. Just like in firearm registration, merong storage ng sample slug yung baril mo sa Firearms and Explosive Unit ng PNP. Ganun din yang mga Trodat Stamps na yan. In this way, IPORESP can quickly check if the stamped documents in the grounds are genuine -- for fraud detection purposes.
Under the new set-up, no real estate document is legal unless it carries the stamp of the licensed ones. No document gets stamped unless it passed through the due-diligence scrutiny of the licensed ones. Say goodbye to fraud.
CUSTOMER HAGGLING FOR REDUCTION OF PROFESSIONAL FEES
QUESTION: Rltr. John, how will we handle the situation if the customer will haggle for reduction of Professional Fees?
ANSWER: You tell them you will lose your license if you will not follow the IPORESP Prescribed Tariff. As a professional, you will be trained and audited to follow PROCEDURE. If you will not follow procedure, say goodbye to your license. Discounts will be given to Senior Citizens, Disabled,and Student customers. Waiving a fee is hassle because it will require BIR approval.
ON CONSULTANTS
Consultant's specific JOB per RA 9646 is PROJECT DEVELOPMENT (Condo and Subdivision). In my old blogs, I already mentioned that ALL ENGINEERING PLANS for new Houses, Subdivisions, Condominiums, and Townhouses will have a separate box for Consultant's Stamp. Local Government Code will be amended to insert this policy in the requirements for issuance of Construction Permit.
QUESTION: Lebb Medina Tibio: You mean to say that all proposed projects done primarily by Architects Planners,Urban Planners and other allied services should pass the stamp box of the Real Estate Consultant for a fee? For what kind of scrutiny or review they may want to employ when the truth of the matter, these multi-discipline sectors such as Urban Planners and Architects are already experts in their field of endeavor.What value of service they may want to render? I think it's more complicated.
ANSWER: YES YES YES YES with exclamation mark! Must have a Stamp of the Real Estate Consultant to ensure that it is compliant to the restrictions of the "community". We will use the Consultants on technicalities they are trained for the benefit of the subdivision, village, or community -- especially on the ENVIRONMENTAL and CONFORMITY aspect. It's okay to be a genius architect who builds round-shaped buildings, but we are doing the Developer a favor here and we want the Consultants to do the job to ensure that you conform if the Master Deed if ever it wants a box-shaped buildings inside their village.
Urban Planners, Engineers, and Architects will still have their stamp boxes in the plans; but we will ADD the Real Estate Project Developer (Real Estate Consultant) box. In short, the others will still have a space to sit in the jeepney, pero umusog lang ng konti kasi papasok at uupo si Consultant sa jeepney.
Now listen to what I am about to say. The Term Real Estate Consultant will be changed to Real Estate Project Developer in RA 9646 amendment.
The term "Consultant" will then CAN be used by Brokers, Appraisers, Real Estate Project Developers, and even Salespersons.
EFFECT OF NUMBER OF RESPs ON PROFESSIONAL FEES
QUESTION: Sir John, what determines the rate of professional fees?
ANSWER: The number and provincial distribution of licensed Brokers and Appraisers will determine the market price of the real estate services Professional Fees. In economics, supply and demand determines the market price. No problem about the demand because IPORESP will surely push for the mandatory due diligence processes in all real estate transactions that will require all customers and clients to have their documents reviewed and stamped in Broker office. On the supply side, the fewer the service providers, the higher the fees; the greater the number of service providers, the lower the fees. That is why when I say that the LAW SAYS that the onset of 4 year BS REM as requirement for exam starts June 2012, it should start on June 2012. There should be 4-5 years moratorium of new licensees and the law already provides for this moratorium. It is very difficult to make a stable price determination if the number of service providers keep on growing.
ONSET OF IMPLEMENTATION OF PROFESSIONAL FEES
QUESTION: Sir John, when is the onset date of implementation of Professional Fees?
ANSWER: Professional Fees cannot be implemented effectively at the ground level without AIPORESP that will mandate the (1) office set-up requirements, (2) standard due-diligence procedure, business process, (3) standard rates on all RESPS, and (4) taxation. There are still procedural training to be done by Salespersons, Brokers, and Appraisers to enable them to perform services that gives them the right to charge professional fees. The Professional Fees is a program of IPORESP and we understand that there are real estate practitioners who oppose it, especially the old-minded ones. RESPs have to rally behind IPORESP, by signing up through the membership process of IPORESP.ORG if they want to speed up the implementation. RESPs who have not signed-up in IPORESP are assumed and considered to be anti Professional Fees, and the anti group puts a lot of stress on the program. For example, now, IPORESP is on Licensing Strike because of red tape in PRC -- the strike gives a lot of stress on the timely implementation of IPORESP plans and programs.
PROFESSIONAL FEE IS ALSO A MECHANISM TO ERADICATE COLORUM
QUESTION: Rltr. John, can professional fees help in the colorum eradication?
ANSWER: Once the Professional Fees are fully implemented, the colorum will be eradicated for many reasons, such as: (1) advertising companies online and print will no longer accept request for advertising without advertising clearance from a licensed broker, (2) deeds of conveyances will already be required to get a broker's clearance stamp before notarization, (3) among others. The PNLS of IPORESP is also a sure effective way to eradicate scams and fraud in the real estate market because there will no longer be property that will be advertised for sale or lease without proper due-diligence clearance by the licensed brokers.
If there is anything else important that I forgot to include in this article, or if you experienced a real estate transaction that is anomalous, scam, fraudulent scheme that you want me to document and expose for others to be warned, or if you want to donate to the war chest of real estate consumer rights advocacy, please feel free to email me at JohnPetalcorin@Gmail.Com. If you want to comment about this article, there is a provision for this purpose that you can find below.
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