Real Estate Service Coach [RESC]: Anomaly Scam Scheme Fraud

Showing posts with label Anomaly Scam Scheme Fraud. Show all posts

10/08/2014

Appraisers to be engaged in SALN investigations

I personally believe that allegations of understatement or overstatement of real estate values in SALN declaration of public officials must be proven with proper certification by a professional real estate appraiser. The problem is, what if the public official will not give consent to a third party appraising service that will be engaged by the allegator? To implement this, there must be a legislation that will require public officials to sign a waiver in their SALN that automatically allows third parties to perform real estate appraising on their property at question, which should also include due-diligence investigation on alleged undeclared assets.

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.
Thank you so much for visiting my site. May God Bless You!

6/16/2013

The most opportunistic colorum agents

... are the GOVERNMENT employees who work in the Assessors' Offices of the LGU and employees of the Bureau of Internal Revenue (BIR).

The biggest anomaly I have ever heard is the BIR employee and the Assessor's Office Employee connived together to convince the Buyer and Seller to push the licensed Broker out of the deal so they can assign a dummy agent and get the commission for themselves. Kawawa si Broker and he/she is not aware of what happened behind the scenes.

Broker ka, done deal na ang pangarap mong jackpot, ilapit mo na for clearance sa Assessor's Office and BIR, hahahaha patay ka kung malaking transaction yan -- bigla na lang yan mag rescind ang buyer and seller.

Meron pa, Assessors Office, porke merong access kung saan etong mga squatter occupied lands that are not paying real property tax, binibisita nila yan and they do KOTONG COLLECTIONS.

The reason why government will never issue a Memorandum Circular to Law Enforcement Agencies against unlicensed real estate broker practice is because they themselves, government employees, are practicing as unlicensed real estate agents. The colorums government are the most cruel among all -- they would even do MURDER just to steal the commission.

6/11/2013

PNoy Administration BIR milks income generated from Real Estate CRIMES

Revenue Regulation 10-2003, Dated May 2, 2013. Section 3 (G) Income payments to certain brokers and agents. - On gross commissions of customs, insurance, stock, immigration and commercial brokers, fees of agents of professional entertainers and real estate service practitioners (RESPs), (i. e. real estate consultants, real estate appraisers and real estate brokers) who failed or did not take up the licensure examination given by and not registered with the Real Estate Service under the Professional Regulations Commission. – Ten percent (10%).

The Real Estate Service Act of 2009 (RA 9646) says: RA 9646 SEC. 29 Prohibition Against the Unauthorized Practice of Real Estate Service. No person shall practice or offer to practice real estate service in the Philippines or offer himself/herself as real estate service practitioner or use the title, word, letter, figure or any sign tending to convey the impression that one is a real estate service practitioner, or advertise or indicate in any manner whatsoever that one is qualified to practice the profession, or be appointed as real property appraiser or assessor in any national government entity or local government unit, unless he/she has satisfactorily passed the licensure examination given by the Board, except as otherwise provided in this Act, and is a holder of a valid certificate of registration and professional identification card or a valid special/temporary permit duly issued to him/her by the Board and the Commission, and in the case of real estate brokers and private appraisers, they have paid the required bond as hereto provided.

RA 9646 SEC. 39. Penal Provisions. Any violation of this Act, including violations of implementing rules and regulations, shall be meted the penalty of a fine of not less than One hundred thousand pesos (P100,000.00) or imprisonment of not less than two (2) years, or both such fine and imprisonment upon the discretion of the court. In case the violation is committed by an unlicensed real estate service practitioner, the penalty shall be double the aforesaid fine and imprisonment.

COMMENT: As per our lectures before in taxation law, even income derived form illegal activities are taxable. just because it is taxed doesn't mean their activity is legal.

RESPONSE: Good. BIR record can be used as evidence of RA 9646 violation.

6/10/2013

How combustible methane could accumulate a condo unit

This has relation to the Serendra gas explosion that I explained in my blog yesterday. In my opinion, it was not LPG, but sewerage methane that exploded. The image below (left side) was taken from a condominium in Makati after the renovated. The image at the right was taken after I made corrections. The left photo shows how methane could enter the condo unit as a result of lousy plumbing job under the lavatory. It also shows the correction that needs to be done. So, look under your lavatory and sink and check it out if you see something like it and have it corrected, or else take the risk of gas fire, explosion, suffocation, or poisoning. What goes down from the units to the septic tank is not methane, but what goes up is a pure combustible methane that can explode when ignited.

In my opinion, the Serendra Blast was not LPG. All wastes from your toilet, lavatory, and sink goes down through pipes and down to the septic tank. Septic tank produces methane gas and it also goes up through the pipes and will enter your unit if the plumbing in your unit was lousy like the one you see in my actual pictures.

Now you see, colorum (unlicensed) real estate practitioners like agents, interior designers, engineers, plumbers, electicians -- DAMN THESE ARE DANGEROUS. I advocate the eradication and law enforcement against colorum, but the Philippine Government does not care, media does not care, real estate developers does not care -- as they say: IT'S MORE FUN IN THE PHILIPPINES.

I've been a licensed real estate broker since 1998. Not so long ago, Mar was chief of Dept of Trade and Industry, under this agency is the Bureau of Trade Regulations and Consumer Protection (BTRCP). Most real estate services require licensing in BTRCP. It was during his time as DTI chief when colorum real estate practitioners grew in exponential proportion, and their number have already reach a point that it is very difficult to eradicate. You see now, Mar handled the investigation of the Serendra blast but never looked at the angle that unlicensed real estate practitioners who did the piping installation, renovation, inspection, and leasing agency could possibly be the reason of the explosion. If I were a real estate tycoon and I need a whitewash, I would call on the right guy.

There are only three sets of persons who can be held liable: (1) the leasing agent, (2) the building administrator/engineer, (3) the renovation contractor. First, find out if these persons are LICENSED in the practice of the profession. The tenant and unit owner cannot be held liable because they are mere end-users or consumers of these real estate services.

My advice to the Condo Homeowners Association is straightforward. You are the last line of an organized defense. Protect your selves and your families. Make sure that people doing services in your condominium are LICENSED. I am talking about brokers, leasing agents, property managers, renovation contractors, building administrators, plumbers, building engineers, and electricians. Make sure they are licensed. The Homeowners Association must not allow themselves to be over-powered by the influence of the Developer because these Developer are fond of using colorum for cheaper labor cost and exploitable services. As members of the homeowners association, the bottom line is, you are the end-users and end-consumers and you need to protect yourselves. If your developer and real estate agents did not disclose that your building is sitting on top of the fault line, it is time you discuss it as a community and come up with plans. Don't be victims.

QUESTION: So this scenario is also applicable to houses. if the Serendra has a U-Pipe, then what causes the explosion is LPG?

ANSWER: Yes. This anomaly i can be in condo units and also house. The Serendra Blast investigators did not know what to look for. They did not have this theory until I exposed it here. I was wanting to investigate what is left of the explosion. I will be looking in particular for that pipe under the lavatory and the sink. But I don't think it is possible now, especially if they wanted to white-wash it and push the LPG theory down our throat.

You know, modern centralized LPG piping systems (if ever it is functional in Serendra) have auto shut-off mechanism -- continuous leak is almost impossible. They have to tell this technological feature of the Serendra fittings. I was surprised they didn't.

QUESTION: Is this scenario visible by the naked eye by just quickly looking at the lavatory or sink?

ANSWER: No it is not, especially if your there is a drawer type cabinet under your lavatory or sink. This anomaly is very common in drawer type space saver cabinet under lavatory. You have to crawl down and look for it down there. See this picture below.

QUESTION: Sir John, is it possible to maliciously convert a condo unit into a bomb?

ANSWER: Yes. Very easy. Refer to image one above. Simply unscrew the plug at the bottom of the U-shape pipe to release the water that prevents the Methane from entering the room. Once you remove the water that served a natural barrier between your room and the septic tank, Methane will enter your room and the room will become a ready explosive in just an hour. The only thing that is lacking is a detonator, a park, an igniter, if you light a cigarette, BOOM. If you wanna die by suicide of Methane poisoning, simply unplug the cap, close your windows, turn off your exhaust, and sleep, you will never wake up the next day if you inhaled too much of it. You see, if you complain of being always sleepy while inside your condo unit, call me up for a Safety Inspection Service (it will not cost you that much), there might be something in there that you can't see. I have a gas detector professional gadget specially for that purpose.

QUESTION: Rltr. John, we are conducting professional consultation about the upcoming Congressional Bill that seeks to require all condominium units to be installed with Gas Detector Device, which will be implemented via LGU. What can you say about this?

ANSWER: The Republic Act 9514 of December 2008 (Revised Fire Code of the Philippines) is already a sufficient legislation. There is no need for a new law. Most buildings are already installed with smoke and fire alarms. The homeowners just have to UPGRADE technology and specifically use early warning devise that can detect various types of dangerous gas aside from smoke. Let the private sector sell the devise in various models and let the buyers choose -- there is no need to force the buyers to buy it from LGUs.

6/08/2013

I can personally attest that an Ayala condo unit was prone to gas explosion

You can look back in time. The explosions in Glorietta Ayala and also in Serendra were said to be possibly caused by gas leak. I could attest to that "possibility" and I have evidences.

My evidence could prove how Methane can fill the entire condo unit.

As a Broker, I am managing one unit of AVIDA MAKATI, an Ayala project. Way back in September 2012, the tenant complained about a foul suffocating smell in the unit similar to a sewerage. Remember this is also the similar account of the tenant before the May 2013 Serendra explosion. So I went to the unit to do my duty as manager. I have proofs that Ayala made a major error in their sewerage system, which could cause methane accumulation and possible explosion when you light a lighter for your cigarette of when you turn on your cooking stove. The owner of the unit knows this because I reported it to him. I have photograph of the entry point of the methane gas into the condo unit, photograph of my DIY solution that will prevent the methane gas from entering the condo unit, and I am willing to present the photographs to the Serendra Blast investigators, to the media, and anyone who needs to see it, and will even send it to the subscribers of this Real Estate Service Coach (RESC) blog site -- just ask for it nicely. Aside from the pictures, I have THREE corroborating witnesses, a record of communication to the owner about the problem, and a complaint form that Ayala failed to act upon to troubleshoot the problem.

Nag complain ang tenant, pero hindi man nila inayos, so ako na lang gumawa ng napaka simple na solution.

The problem with Ayala (and of course many Real Estate Developers) is that they hire unlicensed professionals -- mga colorum. Example in this picture below is a colorum Sales Agent engaged by Ayala.

You can easily detect a colorum Sales Agent by getting a specimen of their marketing fliers (you can find many colorums in malls), and counter-checking the names in the professional license verification in PRC Website. If they can engage colorum Sales Agent, how much more in construction department that the public don't see? Those could be unlicensed colorum engineers doing the construction. Colorum professionals are dangerous to the public, but colorum are favorite service provider of real estate developers because colorum offers cheap and exploitable services. The public must know our warnings. The Professional Regulation Commission (PRC) is the one to blame in the prevalence of colorum -- they tolerate it, they refuse to issue a law enforcement memorandum that we requested, that is why we, IPORESP is on licensing strike now. Corruption and government failure -- that is the reason why real estate consumers are exposed to hazards.

On the Serendra explosion, my suggestion for the DOST investigators (I hope they can read this blog) is to get the list of people working in Ayala (in Sales, Leasing, Property Management, Interior Designers, and Construction Department) and check it out with PRC if any of these are UNLICENSED. How they do do it? Well, go to BIR and get a list of people that Ayala pays for in the Income Withholding Tax. Let me predict, THE NATION WILL EXPLODE with the result if it is exposed! From Sales to Engineers -- a lot of them are UNLICENSED (mga colorum). Of course, investigate also the other developers -- this is for the greater good.

But before I show my evidences, let me see the insides of the Serendra unit that exploded. I hope it is still untouched. Please allow me to check the debris inside the unit, I will be looking for a particular evidence that would possibly be similar to what I have. If it is already cleaned, I hope to see the detailed pictures. I am looking for something in particular, which I expect would not be obliterated because it is usually located in an isolated part inside the unit. Whether I find what I am looking for or not, I can show you the Avida evidence that I have in my possession. With my evidence at hand, we can possibly conclude the cause, close the case, and help prevent other units that are yet to possibly explode.

Finally, once they see my evidences, ALL CONDOMINIUM OWNERS must check their units if something looks like it to prevent explosion like Serendra.

QUESTION FROM THE PUBLIC: Rltr. John, how much will you charge to inspect my condo unit just to see if there is anything in here that could possibly cause a gas explosion?

ANSWER: Oh I never thought about that opportunity of inspecting explosion possibilities. Thank you for the idea. I do inspect wellness and safety of leased units on routine basis for a fee of P3,500 per unit owner (individual client) and been checking only the concrete cracks, door locks, stability of steel welding, glass mounts, and fire exits. Part of it is also installing peep holes and door chime if there is none. Thank you for the idea. I will try to include prevention of gas explosion in the next inspections. Just give me a call. Nevertheless, much better if the media can publish my evidences of possible causes of Methane accumulation and explosion, so that everyone who knows how to use the screwdriver can Do-it-Yourself (DIY) in checking their units.

QUESTION FROM THE PUBLIC: Rltr. Petalcorin, is there a way for a building to know which unit/s are defective, meaning, which units are prone to gas accumulation and explosion?

ANSWER: That is a great question. Yes, I have read about a very cheap yet effective procedure that can be implemented by the entire building to determine which units are gas-proof and which units are prone to gas accumulation and explosion. Moreover, there are also fixed and portable gadgets that can be installed inside to unit to detect possibilities of explosive gas.

QUESTION: Sir John, the image below says the owner did not do any renovation in the kitchen and toilet. What does this mean?

ANSWER: As I was saying, I have to see the unit first, if they would allow me to look for that particular thing that can cause gas accumulation and explosion. If the owner did not do any renovation, then it was really the worse scenario wherein it was an engineering defect by the developer (Ayala) that is similar to what I personally detected and repaired in Avida (Ayala). I would say worse because it would mean ALL units built by Ayala must be inspected to see if we can find anything similar.

QUESTION: Realter Petalcorin, how do you interpret the electric outage before the explosion? Please see this picture below.

ANSWER: There are many possibilities. An accumulated gas needs ignition in order to explode. If there was power outage, it is possible that the ignition was caused by a spark as a result of sudden return of electricity. It is also possible that the tenant may have lit a candle to remedy the power outage, or he tried to light a cigarette to remedy his boredom. Anything that sparks can ignite and explode an accumulated gas. If there was power outage, the electric powered exhaust systems that sucks away gas from the sewerage chambers underground won't work, so these gas creates pressure and naturally goes up to the units.

QUESTION: Sir John, I have read in the news that Mar Roxas was saying that it could probably be LPG Gas that caused the explosion. What can you say about this?

ANSWER: In my opinion, it is least likely. The capacity of standard LPG tank is 11 kilogram. An 11 kilogram full-tank LPG that leaks completely is not sufficient to explode a 20 square meter studio unit -- we can test it if you want. I think unit 501B of Serendra is bigger than 20 square meters -- please find it out. I also read the statements. They seem to be saying that Serendra have centralized piped gas system or in my understanding an LPG source that goes distributed by retail to the units through pipes. Kindly double check it if it is functional. I am not sure if this centralized LPG pipes are functional because I didn't know there is any existing condominium in the Philippines with centralized LPG source -- where will the building tap a source of LPG wholesale?

The tenant, Angelito San Juan, age 63, is a witness. He smelt foul odor. He did not say he smelt LPG. It is safe to assume that a 63 year old person is familiar with the smell of LPG. It must be something else, not LPG. My strong suspicion is that it was raw methane from the sewerage system. If I were one of the investigators, I would conduct a smell memory test on Angelito San Juan by letting him smell LPG versus sewerage methane, he should be able to tell which one he smelt inside his unit in Serendra before the blast. If you cant find sewerage methane, just ask me, I'll bring you to Avida and show you where you can smell sewerage methane -- you can even try to spark a lighter to see if the gas is combustible.

QUESTION: Rltr. John, there were already many government scientists and personnel who are members of the inter-agency investigating team who inspected the unit aftermath; but they could not find evidence to determine the source. Why do you think they are at loss?

ANSWER: Because they don't know exactly what to look for. They don't know what particular thing to look for. I bet none of them ever had experience in gas explosion materials investigation. In my experience, there is only one piece of material to look for to explain the source of the gas. I know what to look for, I know where it is located, I have a feeling it's still just there where it is supposed to be. I am curious. I would like to see that particular material with my own eyes. I just hope they did not clean out the entire unit yet.

6/11/2013 12:32AM. Here is the real event picture of how combustible methane could enter the condo unit as a result of lousy plumbing.

5/15/2013

Police Entrapped Fake Real Estate Broker

This item in the local Philippine news caught my attention -- watch it at http://www.gmanetwork.com/news/video/95003/24oras/24oras-pekeng-real-estate-broker-huli-sa-entrapment

After studying the news item, I noticed that this is actually not a case of a Fake Real Estate Broker. The suspect neither represented as, nor claimed to be a "Broker" or "Agent" in any of her offers, transaction, fliers, business card card. This is a case of Unauthorized Collector of real estate amortization, hence not an offense against RESA, but an offense against the Developer. Had the Police mentioned the name of Developer who owns the project, we could show many "Pekeng Real Estate Broker" that the Developer employs under their payroll. In short, this simply shows Media and Police lacks understanding about RESA. If you did not preempt this reaction of mine, it also means YOU LACK understanding of what RESA is -- even if you are already a Broker.

A Fake Broker is a person who is not registered in Professional Regulations Commission (PRC), who makes a living out of representing, offering, selling, and getting commission or any form of remuneration for the act of acting as AGENT of another person in selling or leasing real estates. You can easily find a Fake Broker -- simply go to high foot-traffic places like malls and someone hands out a flier to you, look at the back of the flier and see if the person named therein as the offerer has a Real Estate Broker PRC license Number -- if none then that is a Fake Broker. Also in internet advertising platform such as BuyandSell and even Sulit or AyosDito or 88DB or Facebook or Twitter, you will see a lot of Fake Brokers. Watch out because 95% of those persons handing out fliers in the malls are FAKE BROKERS -- they have no PRC license. It is very easy to know it.

It makes me sad when a fellow Broker tells me his license is already expired but has not earned anything for the past three years despite having so much inventory of properties to sell. He sincerely complied to the requirement of establishing a principal place of business, he has official receipts, he has HLURB registration, and all other government requirements to practice the profession legally.

I just told him to look at the FreeAds sites in the internet. It's all flooded by colorum Ads. Since day 1, I've been telling you, these guys sitting in PRC now are people who work under the table for rich real estate developers who use colorum like cormorant ducks. They have no plans to do their job in facilitating the enforcement of laws.

So, we are now on LICENSING STRIKE for a reason. If you will not cooperate in the strike, you just get yourself hanged twice.

The Professional Regulatory Commission (PRC) is grossly partial in implementing the Real Estate Service Act of 2009 (RESA), thus causing UNFAIR COMPETITION in favor of those who don't voluntarily follow the RESA. To be able to compete in business, it is just right for us who follow RESA to set aside our eagerness to abide by the law for the meantime, temporarily, as we struggle to grasp for air as while we wait for PRC to fully perform its mandate. The corruption of the PRB-RES reflects the corruption of the PRC and the entire Aquino Administration. There is no denying, we can feel the pain of corruption through our skin and bones.

The LICENSING STRIKE is still in effect. The persons sitting in the PRB-RES PRC are the ones who block the full implementation of the Real Estate Service Act of 2009.

Below are some specimens we (licensed Brokers) gathered from a mall in just a spur of the moment last April 2013. Only in the Philippines, "It's More Fun in the Philippines", the government tolerate and won't take action against unlicensed professional practice. So, ONLY IN THE PHILIPPINES, I tell the consumers -- BE CAREFUL WITH YOUR MONEY -- there are many hungry people in Philippines that Real Estate Developers exploit like cormurant birds to dive in the water to get some fish. If you buy from these unlicensed ones, you are killing the real estate profession in the Philippines.

2/02/2013

Homestead Titles in Bangsamoro Land

In the past, there were no cadastral surveys and land titles. However, there were already conveyances such as sale, lease, dowry (wedding gift to the bride),diyah (blood money), inheritance, and royalty gratuities.

The Sultanate of Sulu owns the Spratleys. In 1417, the heirs of Sultan Paduka Pahala already gave it as gratuity gift to China after his death while on State Visit to China. It is the same manner of conveyance (though royal gratuity gift) as how Sabah, which was owned by Brunei, ended up in the ownership of the warriors of the Sultanate of Sulu.

The Bangsamoro People owns Mindanao, Sulu, Palawan, and Sabah and are fully aware that there are squatters (who were issued colonial land titles which later became Torrens Title and Homestead Titles). This is the root cause of the Bangsamoro War that is still ongoing.

Now I will give you a brief assignment to talk to your relatives who migrated to Mindanao so you will have a personal touch of this lesson. If your clan is originally from Visayas and Luzon, it is most likely that you have some relatives who transmigrated to Mindanao or Palawan between 1930s to 1970s. The transmigration was a result of the Homestead Program (HP).

The HP is a very simple anomaly. First, the colonizers (or colonizer-controlled Philippine President) issues land title (issued in Manila) to their cronies specifying large tracks of land areas in Mindanao even without inspecting who is residing and working on the land -- the output is a Homestead Title. Then the crony who received the Homestead Title will subdivide the land and sell it to those who avail of the Homestead Program. The cronies also have conflict against fellow cronies because the HP titles overlap with one another (naturally because the boundaries are roughly estimated only, there were no land survey made).

Ang mga local people na nakatira sa Mindanao and Palawan for centuries na eh nagulat na lang na merong dumadating na taga Ilocos (at iba pang lugar sa Luzon) na merong hawak na titulo ng lupa nila -- so nagkaroon ng conflict. The Philippine Government sends in the Army to supress the local people in favor of the beneficiaries of the Homestead Program who holds title.

The HP was very cruel. The local people were uprooted, massacred one family after the next, and most of them were pushed to the highlands and to the now ARMM areas. Now we have the Bangsamoro People and Bangsamoro War in the Philippines.

China will help the Bangsamoro People recover their NATION! This is the most exciting thing to watch in the coming years. The Moro National Liberation Front (MNLF) is the army of the Bangsamoro People (Mindanao, Sulu, Palawan, Sabah) and will soon recover Sabah from the Malaysian occupation.

1/16/2013

Is "now" the right time to buy, sell, invest?

QUESTION: Rltr. John, I already have a house where I live with my family. I have a full-time work, multi-million savings, and would like try to invest in real estate. I have read different versions of advise from almost any real estate agents, but one common suggestion is they all think that NOW is the right time to invest. What is your version, Sir. John?

ANSWER: Of course the agents would always say they want you to invest now because they are interested in the commission, and I will never forget to mention that they will also force their listing down your throat. I understand that you already have a residence, so obviously you just want to invest in real estate. I understand also that you have full-time work, so I assume you don’t have sufficient time to personally handle the hassles of buying and selling — so you need an agent.

Dreaming of big profit in dealership (buying and selling) is easy, but actual profit can only propagate as a result of favorable market choices and successful negotiation. Buying or selling in a hurry will narrow your choices and may possibly make you lose your position of strength in price negotiation.

Buy low, sell high, that is the basic rule in investment decision-making. To buy low, I suggest you have yourself represented by a professional buyer-side agent so you can have a wide array of choices and an expert negotiator on your side. Establish a good relationship with your agent through the use of a document called Intent to Buy (please remind me to discuss this document in the next issue of Real Estate Service Coach). To sell high, don’t wait for the time when you badly need money. Pass it over to a sales agent as soon as you acquire the property. The longer is its exposure period in the market, the bigger is the chance of selling it at the best profiteering price.

1/14/2013

The Anomaly of Notarial Fee Rip-off

QUESTION: Rltr. John, I bought a property worth P10Million. The agent says the Notary Public is asking P100,000 (1% of P10M) for the deed of sale. I felt I was treated unfairly, so decided to put the documentation on hold. How much should be the notarial fee of the Deed of Absolute Sale?

ANSWER: That’s a rip-off! The correct price tag of notarization of deed of sale is maximum Five Hundred Pesos (P500). Rule 5 Section of the 2004 Rules on Notarial Practice in the Philippines, titled Imposition and Waiver of Fees of Notary Public, states that a notary public may charge the maximum fee unless he waives the fee (meaning, charge a lower fee) in whole or in part. Section 21 of Rule 141 states that the notarial fee for entries of certificates of sale and final deeds of sale in extra-judicial foreclosures of mortgages is Five Hundred Pesos (P500).

If I were you, I would skip the headache by having that deed of sale notarized by someone else other that that one being recommended by the agent. By the way, I am surprised that you (buyer) are the one paying the notarization of deed of sale. Notarization of any deed of property conveyance (whether sale, lease, or mortgage) is supposed to be at the expense of the conveyor who executes the deed. Myself, being an Exclusive Buyer Agent, I always believe that a well informed buyer can never be deceived.

Lease-Back and Buy-Back Scams, the anomaly of non-disclosure of master deed

QUESTION: Hi John, Sorry we werent able to meet in the Phils when I was there last Xmas holidays. Anyways, I wanted to continue our conversation if you can represent my property for rental at The Gramercy Residences. However, CPI (Century Properties, ie, ) informed me that the leasing of the property is "exclusive" to them for 2 yrs based on a MAster Deed which I have not even saw. Is this legal? Even if this is in the Master Deed which I never had a chance to review nor approve of, can I contest this? I dont understand why they would restrict any of their unit owners to use other property managers if they cant assure that they will find a tenant for the unit. Appreciate your thoughts on this pls.

ANSWER: FULL DISCLOSURE during the sales process is one of the basic ethical standard in dealing with CONSUMERS and it appears CENTURY PROPERTIES fell short on this standard.

Next time, do not buy any product of any company that does not fully disclose information that is important to consumers such as the Master Deed of the Condominium Project. I never fall short of reminding you that in the Philippines, buying and investing in real estate is DANGEROUS -- you can read (full access without a fee) my blogs in Google Blogspot titled Real Estate Service Coach.

How dangerous is it? Hehehehe. Well, that Exclusive Lease Management Provision in the Master Deed is just tip of the iceberg of the anomaly, and I will call it LEASE-BACK ANOMALY. I have even seen a Master Deed fine print that says "whenever you want to resell your unit in the future, you can only resell it to the developer at ORIGINAL PRICE when you bought it" - I call it a BUY-BACK ANOMALY. The more stupid thing is, when they make their sales presentation, they dare call it INVESTMENT without a blink right in front of your face. I guess I don't have to elaborate this further. Blame it upon government, they give AWARDS to the culprits of these investment scams.

Are these investment scams legal? YES, in the Philippines, anything UNFAIR is legal as long as the government see your signature consenting and patronizing it. I hope you understand my situation and that I cannot save you from that pit hole that you entered in STUBBORNLY. My job as coach is PREVENTION, not cure.

Next time, if you are approached by a seller's agent, tell them frankly that you can receive their fliers and attend their sales presentation and project site visit but you will not sign any piece of paper until you get second opinion and recommendation of your EXCLUSIVE BUYER AGENT (EBA). If the EBA cannot detect an imminent risk in your acquisition, you need not pay the EBA. Without an EBA, no one will watch your back, no one will protect you in this investment-fraud-infested country.

I will enter this blog under the ANOMALY label. Further reading recommended is Commentary on "Calculating Return-On-Investment For Condo Units".

1/08/2013

Licensing Strike! Broker closing shop!

You did a lot of effort to become a Broker because you believed that real estate sales in the Philippines generate THRILLIONS of sales each year. Your belief is reinforced with the sight of towering high-rise condominiums all over Metro Manila (that has caused the congestion of the metropolis). You are aware that at present, there are already around 20,000 Brokers. So, you, picked up your 10 digit calculator to estimate the 5% commission from a thillion pesos and divide it by 20,000. Assuming you are equally competent than everyone else, you should be earning around P2.5Million each year, as a Broker -- so you run in a hurry to BIR and register yourself under VAT.

Well, let me tell you the truth. I myself, whom you recognize as one of the powerful Brokers in the Philippines, is not earning that much as a Broker. You, me, all Brokers are not earning that much, right? But our expenses in license, seminar, professional bond, memberships in associations are SURE EXPENSES that we can't escape;and we spend for these things because we believe in legality and righteousness.

Now, where is your P2.5M share of the industry? Where did the money GO? Do you know who raked in the income of that huge agency profession? It's the COLORUMS -- the unlicensed real estate practitioners whose operators are TOLERATED and PROTECTED by the Philippine Government.

Ever since in the 80's there are already government regulations that provide Brokers (and the legitimate Salesperson they supervise) the exclusive proprietary rights to exercise the practice and profession of the Real Estate Agent. But government, whether DTI or PRC or HLURB has never protected our proprietary rights. It appears to me that all of these real estate regulatory laws that promise proprietary rights to licensees are HOAX, a BIG GOVERNMENT SCAM, and FARCE (as one license striker call it). The government is not implementing the entire RA 9646, nor the PD 957, they just want the portions of it where they get money from us -- parang mga sahuran na pa-upo-upo lang mga bantay-salakay na tumatanggap ng pera pa-ilalim mula sa mga mayayamang criminal na nag-eexploit ng services ng mga walang lisensyang real estate colorum agents.

As Lead Convenor of IPORESP, I have thousands of licensed practitioners who follow me. In my previous blogs, I frequently mentioned an encouraging note on getting business licenses, BIR registration, and official receipts, etc. etc.; but time had reached a point when I have so say we had ENOUGH of this cruelty by the government. Now the irony is, yesterday, I went to Manila City Hall to get a Business Retirement Form to close REIBS.COM Real Estate Information and Broker Service. Closing shop, in fact have already stopped operating as a business since 31 December 2010, yet retaining the professional license, is the best decision I ever made since the last time I got disillusioned since the approval of the Real Estate Service Act of 2009. This week, I will also go to HLURB to voluntarily suspend my HLURB Registration so that I will not incur penalties and surcharge later on when I register again. I have the same plan for my PRC license, I will have it voluntarily suspended to escape the yearly surcharge when I renew later on.

I know our sector is frustrating; but I discourage everyone from reaching an extreme point just like the incident of a Broker hanging self last October 2012.

Don't worry, this is no big deal. Brokers who are honest about their finances will sure follow my course of action, no big deal. I am not surrendering, I am just retreating. I will open up the business again in the future; but not until PRC signs the advisory that the same law enforcement procedure that is applied on the other professions will apply to the real estate service.

RE: IPORESP. Everyone will FOLLOW my lead. No one will renew their license. No one will establish a business. No one will pay their taxes. But everyone will continue to operate, serve the people, and bring that scraps that you earn into your family's table. Lalangawin ang PRC and HLURB. That's what will happen. We call it Licensing Strike. Only those who tolerate the corruption of PRC and HLURB will renew their registration, and we want to know WHO THEY ARE -- they can never become pillars of the IPORESP. Definitely, no rally in the streets.

12/17/2012

Real estate market plummets in PH

To tell you honestly, sales of middle to high-end real estate in the Philippines is plummeting because of five reasons below.

(1) The conviction of Chief Justice Renato Corona and the Department of Justice (DOJ) blockade against realty acquisitions of the Ampatuans produces a chilling effect to the rest of domestic rich who are mostly living through unexplained wealth.

(2) The Bureau of Internal Revenue's invitation to real estate buyers to explain their source of income produces a chilling effect to all prospective buyers. Your Tax Identification Number is now required in the paperwork of buying real estate and car. The BIR will ask you to report to their office to explain your wealth when they get to know (you can't hide the deal) that you buy brand new real estate or brand new car. This is very scary.

(3) The lack of consumer protection as a result of PRC's mal-implementation of the Real Estate Service Act (RA 9646), the HLURB's mal-implementation of Subdivision and Condominium Buyers Protection Decree (PD 957), and lack of genuine Exclusive Buyer Agents (EBA) practitioners, frustrate and scare the hell out of the buyers.

(4) The impending Freedom of Information Bill (FOIA) that does not come along with a Privacy Bill produces a chilling effect to all prospective buyers. This is very scary because government can just sell/release your private information data, including your wealth indicators, to anyone upon request for data.

(5) The economic crisis in America and Europe at present made the foreign buyers hold-on to their monies and reluctant to invest.

The plummet is already on-going, we just don't know how long they can keep it secret, and we don't know when will this bottom out. The reason #3 is fast affecting the low-cost market.

It might also interest you to read the collection of blogs under label Anomaly Scam Scheme Fraud.

12/05/2012

Repost: PRC Commissioner nabbed for extortion

The law applies to all. DAHIL SA KWARTA. Take note ha, HINDI SIYA LICENSED REAL ESTATE BROKER. Eto ay COLORUM RESP sa loob ng PRC, at COMMISSIONER pa! Dyosporsanto! http://www.abs-cbnnews.com/nation/12/05/12/prc-commissioner-nabbed-extortion. Pupuntahan ko talaga ang eto sa NBI. I will file chrges against violation of RA 9646. Magandang sample case etong PRC Commissioner. Kaya pala etong PRC hindi ini-implement ng maayos ang RA 9646 kasi sila mismo mga COLORUM.

So a while ago I sent email to DOJ, saying: "This refers to ABS CBN news about PRC Commissioner Nabbed for Extortion dated 5 Dec 2012. I noticed he acted illegally as real estate agent when he collected commission from lease of a property. Myself as a licensed Real Estate Broker I would like to file charges against the PRC Commissioner on violation of Real Estate Service Act of 2009 or RA 9646. What particular office can I go to do this filing? Who should I see what's the office address and what telephone number? I am Rltr John R Petalcorin Convenor of the IPORESP Integrated Professional Organization of Real Estate Service Practitioners. I live in 5 Houston Street Marikina City. My phone number is 0921-7172040 also 02-4752007 also 0-5830858. Thanks for the quick response."

11/18/2012

Beware of real estate broker licensure seminars scam

Republic Act 9646 SECTION 14. Qualifications for Applicants for Examination (B) A holder of relevant bachelor’s degree from a state university or college, or other educational institution duly recognized by CHED: Provided, that AS SOON AS a course leading to Bachelor’s Degree in Real Estate Service is implemented by the CHED, the Board shall make this course a requirement for taking the licensure examination;

Please be informed that there is already a CHED MEMO CIRCULAR dated October 25, 2011 that IMPLEMENTS CURRICULUM of the 4-Yr BS Real Estate Management Course last October 2011. Hence, all examinees after starting November 2011 are already required to have graduated the 4-Yr BS REM as a condition to qualify for the licensure examination.

A case is already filed in Ombudsman on NEGLIGENCE RESULTING TO WASTE OF GOVERNMENT RESOURCES last 31 May 2012 against the PRB-RES on negligence of duty, irregularity of conducting examination with Reference No. C-2012-06-0160. Over and above the Ombudsman case, we will also file a Petition Temporary Restraining Order (TRO) to the Supreme Court, with the PRC Commissioner as respondent, to discontinue the issuance of licenses to those who took the exam after October 2011 who have not completed 4-Year BS Real Estate Management course. Though this TRO, the number of victims of the irregularity will stop accumulating.

RA 9646, by itself, stands alone as an IMPLEMENTED LAW. May mga tao talaga na LAW BREAKERS! Palusot nila habang wala pa raw malaking signeage na naka-paskil na BAWAL, ehh tuloy-tuloy lang ang gawaing ILLEGAL kahit sinabi na ng RA 9646 na ILLEGAL. Don't put the Consumers in PERILOUS situation! If you insist that NO ROAD WARNING SIGN means a GO, you should at least put a FULL-DISCLOSURE clause in your ads about the RA 9646 Sec 14B an CHED Memo 25 Oct 2012, and put a MONEY-BACK-GUARANTEE clause!

Nakaka-inis etong mga seminar providers, mentalidad COLORUM! Hanggat hindi hinuhuli, hanggat merong palusot, tuloy ang pag lampastangan sa RA 9646! Mga PASAWAY!

IMPORTANTE PRC to issue ADVISORY that completion of BS Real Estate Management in Philippines is required in all future licensure exams, with reference to RA 9646 Sec 14B in correspondence with CHED Memo Order dated 25 Oct 2011 implementing the BS Real Estate Management curriculum starting school year June 2012.

Everyone, take note ha, this is very important information. It is PRC's mandate to conduct exams once every year (see Sec 12 of RA 9646), so, the PRC may schedule a Broker's Exam in 2013, 2014, 2015 just for mere compliance purpose only. However, RA 9646 and CHED already mandated that starting School Year 2011-2012, the completion of 4-Yr BS Real Estate Management is already a REQUIREMENT for an exam applicant to qualify to take the licensure exam. In short, magkakaroon ng exam every year for mere compliance purpose lang, pero bakante ang exam room kasi walang mag qualify na mag take ng exam until the future will come that the first graduate of 4-Yr Course BS REM will take the exam (perhaps 2016).

Meron nang explicit provision ang RA 9646 Sec 14B, so hindi na kailangan ng PRC Resolution. Ang ilalabas lang ng PRC ay ADVISORY. IPORESP will provide advocacy support to the Advisory.

Pag binasa mo ang Sec 14B, hagip lahat na types of licensure exams (broker, appraiser, consultant) sa requirement na kailangan na ng completion ng 4-yr BS REM para mag qualify mag exam. Hindi lang Brokers Exam ang apektado ng Sec 14 B. Pati ako, apektado ako sa Sec 14B na yan kasi kahit 14 years na ako Broker, hindi na ako maka-exam ng Appraiser, nor Consultant hanggang hindi ako makatapos ng 4-yr course BS REM.

Lahat na PRC Resolution, hindi pwede salungatin ang RA 9646. Kung ako tatanungin, maraming parts ang RESA na kailangan URGENTLY i-revise, repeal, redefine, etc, pero DAPAT idaan sa Legislative Amendment, hindi pwede short-cut. Nakita ko na lahat na loopholes ng RA 9646, that is why I have my own Legislative Agenda. Kung meron sana tayong Party List, mai-susulong natin etong Legislative Agenda ng mabilisan.

For information.

Rltr. John Odonnell R. Petalcorin
Real Estate Broker

4/09/2012

Exams after 25 Oct 2011 may be invalid and void from the beginning

BIG BIG CAVEAT EMPTOR
The RA 9646 has explicitly and directly ordered the PRB-RES-PRC to make the graduation of the 4-year course BS Real Estate Management as part of the requirement for taking the Licensure Exam AFTER 25 October 2011, the date when CHED approved the Policies Standards and Guidelines for Bachelor of Science in Real Estate Management (refer to CHED MEMO 28 Series of 2011 and its Table of Course Specifications).

RESA Section 14, Paragraph B, says: "...Provided, that as soon as a course leading to Bachelor’s Degree in Real Estate Service is implemented by the CHED, the Board shall make this course a requirement for taking the licensure examination".

At the moment, considering majority of IPORESP members are CHARTER MEMBERS (covered by RESA grandfather clause, no exam required), IPORESP will move that the registrations of those who pass the exam after 25 Oct 2011 will be downgraded to SALESPERSONS.

The power of DEMOCRACY is the only "possible" way IPORESP will not move for the invalidation of all license of those who pass on exams conducted after 25 Oct 2011. WHen I say DEMOCRACY, I mean NUMBERS of IPORESP members who belong to that questionable group. Their only hope to hold on to those license is by JOINING IPORESP and participating in the democratic process from within.

VOID FROM THE BEGINNING

There is such a thing we call "VOID FROM THE BEGINNING" that applies in the same manner in Real Estate Service Licensing.

For analogy purpose, Let me give you an example in the case of Marriage Certificates. Mr. Steve Dundie, an American Citizen is currently married to another American Citizen named Mrs. Lilibeth Lee Lundie since year 2007. Steve went to Philippines in 2009, mis-declared his marital status, and was able to marry a Filipina named Liza De Guzman. There is a law in Philippines that disallow subsequent marriage when the present marriage is not yet dissolved. Mr. Steve Dundie and Liza De Guzman may be able to get married in front of the priest and/or judge, and may even be able to Genuine Marriage Certificate from the church, local civil registrar, and national statistics office; however, any institution, organization, or individual have all the right to refuse to honor such Lundie-DeGuzman marriage certificate because it is void from the beginning as it is acquired through fraud and deceit. For instance, if Liza De Guzman will file for a Dependent Spouse Benefit Claim in U.S. Social Security or any other insurance, her claim will surely be denied on grounds that marriage is void from the beginning.

Hindi porke may PRC License Certificate ang tao or plastic card ang tao na ng PRC na Broker siya, eh i-honor na agad yan ng mga nakaka-alam (after due-diligence) na nag exam siya after 25 October 2011 despite the fact na wala siyang natapos na 4-Year course BS Real Estate Management. Section 14B is a basis for others to consider your license as VOID FROM THE BEGINNING.

PRB-RES's WRONG REASONING (as always)
QUESTION: Sir John, according to PRB-RES until there is no graduate of BS REM, they will continue conducting exams using the 120 credit hours requirement.

ANSWER: PRB-RES' act of continuing the conduct of exams after October 2011 is a clear negligence of their duty to implement the RA 9646. First and foremost, it is very clear that PRB-RES is mandated by RA 9646 that BS-REM shall be a requirement for the exam when the CHED approved the curriculum. Secondly, if that is how they (PRB-RES) will twist the law, then for sure no one will take the course of BS-REM, and no CHED-accredited School would venture to offer a 4-Year BS REM Course. Why would a rational person study for four years to comply with the requirement of the licensing exam if he/she can just get the alternative 15-days short course?

4/01/2012

Counterfeit Certificate of Authority to Register - Fake CAR

BIR charges two individuals and Dagupan City Registrar of Deeds for fake CAR

The Bureau of Internal Revenue (BIR) today filed a criminal complaint against two
individuals, together with the Registrar of Deeds of Dagupan City, in connection with the transfer of title over a parcel of land and the improvement thereon using a falsified Certificate Authorizing Registration (CAR) and Tax Clearance Certificate (TCC). Reference: ftp://ftp.bir.gov.ph/webadmin1/pdf/pr31mar2912.pdf

1/26/2012

Policy on Quack Agents

QUACK AGENT - this is my new word for this week. You can use this to ridicule another agent (for some reason) at your most convenience. For example, you can print a large tarpaulin that says, "WISE BUYERS AVOID QUACK AGENTS".

Always remember the rule of survival in the real estate market. Eye for and eye. Tooth for a tooth. Always follow your instinct. The code was made in the past to level the playing field. If you sense that your counterpart (individual, group, organization, association, or corporation) don't follow the code, then your actions should not be restrained by the code. You have to do what you have to do to survive. If they don't follow RESA, then don't allow your actions to be restrained by RESA.

The Developers must realize that when a broker speaks ill about a particular developer, the word spreads fast among the customers. Pag sinabi ko na etong particular na Developer ay maraming Unprofessional and Quack Brokers, matindi ang negative impact nyan.

12/06/2011

CONSULTANTS - Most Victimized by Colorum

QUESTION: Sir John, anong real estate profession ang pinaka-biktima ng colorum?

ANSWER: Surprisingly, the Real Estate Consultants. Why? It is because most unregistered salespersons of Development Projects call themselves "PROPERTY CONSULTANTS".

Mind you, the Real Estate Consultants work for Developers. They even design the marketing strategy of the Developers.

12/02/2011

The hidden charges subscription scam

The RA 9646 says that as a real estate service practitioner (RESP), you are an automatic member of whatever APO or AIPO the PRC will designate, and you are not barred from joining any organization, whether that other organization is an AIPO-Formation movement or not. The caveat emptor is, please restrain yourself from the temptation of signing-up in any group that does not tell your obligations and fees and dues that comes along with your membership, especially if the recruiters will require you to have your sign-up paper notarized. Never get victimized in those Hidden Charges Subscription Scam (HCSS)! There is no need to sign-up because we are all automatic members of whatever APO or AIPO the PRC will designate.

If you are cornered to sign-up in a group that operates an HCSS, then at least try to protect yourself before you sign-up. The defense against hidden charges scam is to write-in a statement: "I sign this membership form on the understanding that there is perpetually no monetary obligation involved", right inside the sign-up form before you have it notarized, and keep one copy for your file.

Remember, there is this very prominent group that is well-connected with PRC; and they already have the PRC paper to claim that thay are AIPO (although I only call them APO because they are not a 50% integration of the RESPs when they started). This group premeditated a P10,000 membership dues per year, at target of 50,000 members including salespersons, they are projecting a P500Million collections without giving any plans and projects for the members. I knew the scam because I was invited to the inner circle of the players of this HCSS, but I refused. Yes, that big, P10,000 per year plus excessively unreasonble CPE/seminar hours. They are silent about their ill intention, they will show you AIPO papers and force you to sign-up, and they will coercively corner you to sign-up without a choice. The worse is, they also know this caveat emptor that I issued and they will simply tell you that I am wrong and that they only charge P500, and that would make you bite the bait.

Look, I am not asking any centavo from you, in fact I am giving people a CHOICE to select the license-maintenance-cost-saving option. I am a pro bono consumer rights advocate and pro-bono real estate service coach. I know that requirements to maintain a license is just a COST, not an investment, and we have a CHOICE to for an AIPO that will not act like a cost parasite.

We have a CHOICE not to get victimized by a scam. I created and supported IPORESP and designed it as a CHOICE, a fall-back organization for RESPs who is not comfortable with whatever AIPO or APO the PRC designates. In fact I volunteered to be the chief convenor of IPORESP, and I have made a promise not to aspire any officer position, so I am just a plain convenor. I am out when the IPORESP becomes AIPO. I have kept my promise. There were people who invited me to become officer in the other group but I refused because I already am committed to each RESP who signed-up in IPORESP. This IPORESP is a very slow yet continuous AIPO Formation Movement. Unlike the other groups who fraudulently claimed in their APO application paper that they represent 75% of the licensed real estate practitioners, the IPORESP always tells the truth and is 100% accurate in following the correct integration process. The identities of real estate practitioners who sign-up in IPORESP are treated with confidentiality, and we are bonded together as a people power who advocate ZERO membership fee, ZERO monthly dues, ZERO annual dues from the AIPO that their sign-ups will create.

As of this writing, IPORESP sign-ups is already over 600 and growing each day. We in IPORESP follow the PRC procedure and we need to get sign-ups of 50% of the RESPs who have PRC ID Cards becore we apply for accreditation to replace whatever Interim APO Designate that we have. What we have now is an APO Designate which anomalously got their accreditation on November 2011 with only less than 30 sign-ups to start with -- they got it because of FRAUD.

10/13/2011

Dealing with Brokers Associated with REBAP and PAREB is Discouraged

Selective Lawfulness Anomaly. It appears that the Associations (special mention PAREB and REBAP), who claim to be "law-abiders and licensees", are still conducting CPE and SEMINARS without AIPO CPE Council yet. The public has to be informed NOT TO DEAL with RESPs who are associated with PAREB and REBAP because these people are capable of selecting obedience/disobedience to the Laws and Ethics in Real Estate Service.