Real Estate Service Coach [RESC]: Exhortations to PRC HLURB BIR

Showing posts with label Exhortations to PRC HLURB BIR. Show all posts

8/06/2013

Income Tax Return as Requirement for Professional License Renewal

QUESTION: Rltr. John, there is an idea that income tax return be required in renewing license from the Professional Regulation Commission. What is your thought on this?

ANSWER: That's a "half good" idea and therefore "half-welcomed". The other half of the good idea is that real estate marketing companies and individual taxpayers who derive income from real estate service (such as agents, brokers, salespersons, appraisers, and developer/consultants) must attach their PRC Professional Registration in their Income Tax Return -- which means those who are actually earning from real estate profession without PRC registration must be fined P200,000 and imprisoned for at least six months for violation of Philippine Real Estate Service Act of 2009.

Investing in real estate education and licensing is expensive. Nobody wants to waste money on non-earning professions. It is good that government will have a record of earnings and taxes of licensed real estate professionals so that the people will have a basis to decide intelligently if they would know if this is a gainfully-earning profession or not.

If you ask a 15-year seasoned licensed real estate broker like me if this profession is financially gainful, my answer is no, it is not gainful. To the new-comers and wannabe's in this real estate service industry, I would tell them, if they have P10,000 to spend for real estate seminar, they would get a better chance to earn a jackpot if they would use the money to bet in lotto compared to investing in real estate education and professional license.

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!

8/04/2013

Open Message to BIR, DOF, and DOJ

OPEN MESSAGE TO BIR, DOF, and DOJ

We are happy that BIR will pursue self-employed professionals who are tax evaders. We hope that BIR will not waste its effort in barking at a wall or the wrong tree.

Most of us who proudly call ourselves "self-employed" are, in reality, either unemployed or underemployed -- meaning, we don't actually make money because of government failure to protect our proprietary rights to practice as licensed professionals. As a result, our supposed to be earnings are being stolen by the unlicensed practitioners. These unlicensed practitioners have already paid the taxes that we, the licensed ones, could have paid.

Although we are non-earners, believe it or not, we do care for government. In fact, we have a suggestion on how government can make HUGE money from these real estate tycoons. Our suggestion is easy to do, but you can only do this (1) if you have the "balls", and (2) if the President will not accept bribe from these tycoons. Now, listen carefully, below is my suggestion.

We suggest BIR to review the withholding tax remittance record of sales agents of (1) real estate developers and (2) real estate marketing companies, and (3) bank departments selling foreclosed properties and cross check the taxpayer's names individually with the record of the Professional Regulations Commission (PRC) to determine if the taxpayer legally earned commission as PRC licensed real estate agent (Broker or Salesperson) or illegally earned commission as an unlicensed real estate agent. The Department of Justice (DOJ) may use the tax record as proof that a person practiced the profession without license, and by virtue of RA 9646, the government can collect a fine of P200,000 each count from the real estate tycoon who owns the company, plus P200,000 each count from the unlicensed real estate agent who received the commission. How much money are we talking about here that government can potentially gain from fines? Ninety-five (95) percent of real estate agents are unlicensed, hence, expect that you can get P400,000 fines from each count of the 95% of the condominiums, houses, and subdivision lots that got sold by unlicensed real estate agents since January 2010.

Those earnings and taxes could have been paid by us, the licensed ones, if they were not stolen by the unlicensed real estate agents. The real estate tycoons make a lot of money in engaging unlicensed real estate agents. Wealth gained from engaging unlicensed real estate agents is clear ill-gotten wealth. The FINES on the real estate tycoons is just a fraction of their ill-gotten wealth.

To all licensed real estate practitioners, please share this message on your timeline. By sharing this, you are doing your part in sending our message to BIR in response to their eagerness to MAKE MONEY FOR GOVERNMENT from real estate transactions.

By the way, the Integrated Professional Organization of Real Estate Practitioners (IPORESP.ORG) has declared a Licensing Strike, which means the government will never make licensing money and taxes from the licensed ones until we lift the strike. This is a peaceful strike, 100% virtual, you won't see us with placards on the street. We are open for dialogue.

JohnPetalcorin
Rltr® John R. Petalcorin
Licensed Real Estate Broker
Convenor, IPORESP.Org
Founder, RealterSociety.Org

7/08/2013

Maybe the Law does not apply on monkeys

ATTN REAL ESTATE EDUCATORS AND PRC:

Don't you understand this? Do you (or we as Filipinos in general) want to establish an identity or character na mga BOBO tayo at hindi nakaka-intindi ng sarili nating batas in English? Meron nang CHED curriculum in Real Estate Service and implemented na effective 1st Sem 2012. Ganun na ba kayo ka GUTOM at hindi na nag-function ang utak ninyo para suwayin eto at sirain etong magna carta natin? 2013 na ngayon. Why are you still allowing non-graduates of BS Real Estate to take licensure exam?

SEC. 14. Qualifications of Applicants for Examinations

In order to be admitted to the licensure examination for real estate service, a candidate shall, at the time of filing his/her application, establish to the satisfaction of the Board that he/she possesses the following qualifications:

(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 IN TAKING THE LICENSURE EXAMINATION.

Foreign Reciprocity?

QUESTION: Hi Sir Rltr John, Question: I knew someone who is a broker in the united States, specifically Atlanta, Georgia. She is an American. In terms of Reciprocity, how can she practice here in the Philippines? She is also interested in my listings.

ANSWER: If you ask me about what the law says, she can't practice here.
If you ask me about what reality says, she can practice and make money here in Philippines (steal the entrepreneurial rights of the local Filipino Brokers and Salespersons) here because the government is not implementing the law enforcement aspect of the law. Even if she will put up a real estate sales business in front of PRC office, the government won't care. It is because the PRC Commissioner, and the people sitting in PRC-RES now are not doing their job, specifically:

RESA Sec 5, (H) Safeguard and protect legitimate and licensed real estate service practitioners and, in coordination with the accredited and integrated professional organization of real estate practitioners [AIPORESP], monitor all forms of advertisements, announcements, signboards, billboards, pamphlets, brochures and others of similar nature concerning real estate and, where necessary, exercise its judicial and police powers to finally and completely eradicate the pernicious practices of unauthorized or unlicensed individuals;

Did we prompted PRC about this issue? Yes we did. We sent formal letter not just once but followed it up many times. The PRC ignored it. That is why we are on Licensing Strike -- no one will renew license.

QUESTION: omg. the reason I ask because this so called reciprocity, where I could practice there also

ANSWER: You practice there, you go to jail. U.S. is a civilized society, they implement laws there. Philippines is not a civilized nation.

1/21/2013

What we are afraid of

We are not hesitant of paying license, requirements for license, business permits, and whatever kind of tax to BIR. We would love to. Just implement the PD 957 and RA 9646 so we will earn BIG and be able to share our scraps to the government licensing and taxes. What we are afraid of is when our members in IPORESP keeps on paying all these government fees but government can't even sign a mere Advisory to implement the vital provisions in PD 957 and RA 9646 that will make the licensed ones earn a decent amount of income.

Look at Atty. T. Manzala, chairperson of PRC. She met the RESPs and expressed a dismay why anti-colorum is not yet implemented. Pagalit-galit pa raw. So after few weeks, pinuntahan ko siya sa office niya to deliver a letter for her to sign an advisory on the correct onset dateof implementation of RA 9646 anti-colorum -- hanggang ngayon hindi pa pinipirmahan. Lumalabas na ang chief-of-police ay siya mismo ang protector ng mga criminal na colorum. This explains why we are on licensing strike-- walang magpa-renew ng license -- that's an order from me. PAPALAG BA PRC sa akin? Hindi maka-palag kasi sila merong pagkaka-mali eh. Nasa PRC ang trigger, switcvh on and off ng licensing strike, if they will sit on implementing RA 9646, the switch triggered ON, if they will sign the advisories, the switch triggers OFF. Kung hindi nila i-implement ang RA 9646, mag close shop na lang sila (PRC).

COMMENT: Gigi F. Bonquin: makes sense..

ANSWER: Si Gigi F. Bonquin, she choose the strategy of having a Real Estate Directory. Magandang strategy yan. Sinabihan ko siya na merong Sec 22 ang RESA, kunin mo sa PRC ang roster ng lahat na RESP para hindi ka mahirapan. Pero alam ni Gigi na ayaw ibigay ng PRC, and the reason I can think of kaya hindi sila nag-komply sa Sec 22 request is takot ang mga protektor ng sindikato dyan sa PRC na ma-organize natin ang democracy ng mga RESPs.

The rational thing for big real estate syndicates operating colorums to get necessary protection is to BRIBE PRC and HLURB in in exchange of not implementing the RA 9646 for over 4 years already and PD 957 for over 11 years already. Call it a mere suspicion, but if I were the briber, the only rational receiver of the bribe are the members of the PRB-RES, the PRC Chief, and HLURB chief. So these bribe receivers have a technique to keep the RESPs leaders mouth shut -- feed the leaders with income from excessive CPE hours and Salesperson Seminars. That's the reason why the leaders of the Associations never fought the colorums -- gubahugan ug CPE ang mga garapata.

COMMENT: Fred Bautista: Halos lahat ng CPE provider ay real estate association.baka mag increase sila ng membership dues.hindi na kailangan ang CPE para makapag renew ng license eh...approved yong tatlong license ni boss ng walang cpe at certificate of good standing ng aipo e malamang yong mga nag rerenew ngayon approved din.

ANSWER: Required man or not-required ang CPE, my order is LICENSURE STRIKE. We are fighting for ALL. We have bigger demands than just getting an exemption out of personal favor for one self.

11/12/2012

Status of Ombudsman case on Sec 14B

RA 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".

NOTE that CHED implemented the Course last October 2011, so the examinees after October 2011 should already be required to have graduated the 4-year course BS Real Estate Management. But the PRB-RES have not implement the explicit ORDER of Section 14B, then we have no choice but to file NEGLIGENCE RESULTING TO WASTE OF GOVERNMENT RESOURCES in the proper forum. Last 31 May 2012, I have filed a complaint in Ombudsman against the PRB-RES on negligence of duty, irregularity of conducting examination. Filing of Complaint received by Ombudsman with Reference No. C-2012-06-0160. The respondents are PRB-RES.

It's already approaching 6 months and no hearing yet. So I sent a follow-up to Ombudsman today.

1/09/2012

Possible bread and butter of licensed practitioners

I have impending deal with BIR. Kung matutuloy ang plano, baka mag one week stay-in workshop kami ng BIR sa isang resort just to plan the BIR-Capture of the RESPs and to train me so that REIBS/REALTER will become a Model Real Estate Firm in terms of tax-paying. Magiging accredited Professional Tax training-provider din ang REALTER.

Meron akong hinihingi sa BIR. Meron na akong mga talking points na hinanda na makakabuti sa ating lahat. Gusto ko, meron tayong lahat bread and butter. Gusto ko lahat na Deed of Sale or Contract to Sell, bago yung Notarial Clause, ay meron nang boxes for the signature of Licensed Appraiser and Licensed Broker -- parang structural plan ba ng bahay merong pipirmahan ang electrical engineer, civil engineer, architect. Hindi rin pwede ma advertise for sale ang isang property pag walang Certification Clearance ng License Broker. So every now and then meron na tayong Customers.

In case of Deed of Sale or COntract to Sell, pipirma muna ang Appraiser and Broker bago dalhin sa Notaryo or sa Assessor's Office sa City Hall. Dapat ang pipirma na Broker and Appraiser ay magka-ibang tao, hindi pwede iisang tao lang. Kapag Project naman, merong box ang Consultant.

Sabi ng BIR, ang PTR ang proof na "practicing" ang isang RESP. Malapit na tayo magpapagawa ng kanya-kanyang STAMP. Ganito ang standard na laman:

Rltr. JOHN R. PETALCORIN
Real Estate Broker
PRCLic# 0010105 Exp 11/2014
HLURB#:
PTR# 0343339 Issd 1/4/2011 Manila
TIN: 000-201-443-576
Tel#: 0921-7172040 / 02-5830858

Pero hindi ibig sabihin na pag pinapirmahan sayo eh entitled ka na for Commission. Babayaran ka sa Due Diligence Professional Service mo sa pag pirma, pero separate yang Agency Agreement. Pag walang Agency Agreement between you and the Client, hindi ka entitled sa Commission.

HIGH PRIORITY eto ng PNoy Administration. Mangyayari talaga eto. Hindi Notarial Fee ang tawag. Ang term na gagamitin natin ay "Professional Due Diligence Fee". Pero tandaan ninyo, merong responsibility na kasama yan. Pag yang contract na yang pinirmahan ninyo ay sumablay, ang pumirma ang mawawalan ng license.

Let's say ang project ay wala panang HLURB License to sell, patay ang pumirma na Consultant.

Let's say ang nakalagay na Final Selling Price eh mas mababa sa Zonal Value, patay ang Appraiser nyan.

Let's say ang seller ay hindi pala yun ang true owner ng property, patay ang Broker na pumirma nya.

So, sa Due Diligence, merong parameters na Consultant lang ang gagawa, meron din parameters na Appraiser lang ang gagawa, meron din parameters na Broker lang ang gagawa. Pagdating sa presyohan ng serbisyo, gusto ko marangal na bayad, mabubuhay na may dignidad ang mga pamilya natin.

Ang list of Due Diligence responsibilities ng bawat profession ay isasama sa CodER. Noong araw, Code of Ethics lang tawag nyan sa MO 39. Obsolete na yang CodE pag pasok ng RA 9646. Kaya yan naging Code of Ethics and Responsibilities sa RA 9646 dahil dito sa List of Responsibilities na ilalagay pa lang natin. Ngayon meron na kayong hint kung papano nabuhay at na approve yang RESA after 23 years sa archive.

Ma balewala ba ang Seller? Hindi ma baliwala ang Seller. In fact mas lalong magiging convenient sa Seller kasi magiging "kampante" na ang Buyer kasi certificado na ang kanyang binebenta. Sa ngayon kasi, ang buyer ay medyo aloof kasi natatakot siya na baka lolokohin siya. Pag meron nang mandatory Due Diligence, wala nang lokohan. Pag wala nang lokohan, mag increase ang number of transactions sa market, pag dynamic ang market makikinabang tayo nyan, everybody happy.

Hindi mawawalan ng trabaho ang Colorum. Magiging Documenter, Errand, Referral Agent, Property Presenter yan sila na hindi na kailangan ng license. Pwede sila maging homy sa isang Broker or pwede rin sila maging on-call na independent contractors. Pero sabi ng BIR, with or without license, basta kumikita as service provider, DAPAT merong PTR and dapat merong Real Estate Firm (REF) na hahawak sa kanila na mag-submit ng monthly report nila sa BIR. Bilang Broker, hindi kasi tayo pwede tumayo sa pwesto natin eh, pag umalis tayo sa office natin wala nang pipirma. Ang Broker ay "taong bahay". Pag kailangan natin magpa-accredit sa isang Developer, ang tao ng Developer ang pupunta sa office natin, para silang MedRep ba na pupunta sa office ng Doctor para i-introduce sa atin ang Project nila at mag-dala ng mga fliers. Mga office ng Broker, magkakarron ng mga racks kung saan ilalagay ng mga DeveloperReps ang mga fliers ng project nila.

Sa new set-up, yang mga Developer, mga wise din yan sila, sa dami ng Brokers sa listahan nila, siguradong uunihin nila bisitahin at bigyan ng accreditation ang mga Brokers na maraming Salespersons. Pag wala kang Salespersons, siguradong hindi ka papansinin ng mga Developers. So, ngayon pa lang mag isip na kayo ng style para maka-recruit ng Salespersons kasi siguradong mag compete tayo lahat sa pag-rerecruit.

Nakikita nyo yang mga Sari-Sari Store? Diba meron yan silang mga Coca Cola na refrigerator, meron silang sponsored ng Signboards, pati mga racks nila sponsored ng mga Brands. Ganun din mangyayari sa atin mga Brokers. Mga Developers mag sponsor yan sila ng PC natin, Office Chair, mga Office Supplies, WebPage natin, Signboards, Amerikana Coat, Calling Cards, Trodat Stamps, baka nga pati kotse na mag logo ng Developer sponsor nila para lang ma-expose ang logo nila. So, huwag tayo mabahala sa gastusin sa Office natin dahil tutulungan naman tayo ng mga Developer pag mag-sipag lang tayo mag manage ng mga Salespersons na magbenta.

Kasama na yung HLURB Registration pag mag engage sa Project-Selling ang Broker or Salesperson. Meron din naman tayong mga Business Associates na hindi mag project selling. Ma cover ka lang ng PD 957 pag ikaw ay Project Seller na Broker, Salesperson, Dealer and Developer. Yung mga project sellers na Brokers and Sellers lang ang obligado ng HLURB Registration. Ako hindi naman ako Project Seller, atsaka maraming katulad ko na hindi Project Seller, hindi ko na kailangan yang HLURB, dagdag gastos lang yan.

Yang mandatory Due Diligence Certification Stamping na nilalakad ko, walang kinalaman ang PD 957 dyan, that is purely General Practitioner Responsibility.

Pero in the case of Real Estate Firm (REF) who will follow a Business Associate Scheme formation, mas efficient kung ang General Manager na ang mag-lakad ng HLURB Registration ng mga member-Associates.