Migration from licensed to unlicensed

MIGRATION FROM LICENSED TO UNLICENSED

For the best interest of survival, let's focus on migrating everyone from licensed status to unlicensed kasi mas mag survive tayo pag unlicensed tayo kesa sa licensed, kasi hindi naman protected ng GPH ang proprietary rights natin sa profession eh. GPH is still protecting the colorum (in fact protected by BIR). The CPE is exorbitant. The IPO is subjected to cronyism.

The broker-client relationship (including identity) is protected by professional proprietary privacy rights, hindi pwede i-disclose kasi ma-sulot ang client. Walang privacy guarantee ang BIR na ma protection nila ang client information natin.

Bumababa na ang registration ng Brokers and salespersons sa HLURB and this is a good momentum which is a result of our peaceful advocacy in the past 5 years. Nilalangaw na ang renewal department ng PRC kasi hindi na nag-rerenew mga Brokers ng license nila. When time comes to renew your individual license, alam na natin lahat na susulatan mo ang PRC and BIR and HLURB about these issues. If they ask kung saan ang pera, we tell them na kinita na nag mga colorum ang kita natin at binayaran na ng colorum ang tax na dapat tayo ang nag-bayad. If they would ask for an explanation of the non-renewal of license, refer my name to them. The GPH is most welcome to set an appointment for a dialogue with us -- which I will gladly represent.

Individually, let's make a firm decision not to be led into the slaughterhouse. Let's share our bad experience by telling all broker wannabee that it's not worth it. Let's scrap the RA 9646 for the good of everyone.

Everyone knows the sacrifices I have made in advocating RA 9646, but it just didn't work out. The GPH is corrupted and will never cooperate with our advocacy for professionalization. The GPH is just a leech.

---

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!

Transferring a Salesperson

QUESTION: Rltr John, I am a Broker. My Salesperson created a friction with the relative of the owners of the Developer. As a result, she can no longer work well with the Developer. Should I terminate her license for a cause?

ANSWER: Salespersons are somewhat jointly supervised by the Broker and the Developer. People are social beings, meaning, it is inevitable that we interact with other human beings. It happens all the time that Salespersons would run into conflict or even romantic intimacy with someone in the Developer side specially if there is a personality mismatch or match between the Salesperson and whoever she works directly in the company of the Developer. There is no need to terminate her license. Do not do unto others what you don't want others to do to you. Instead, PROTECT her means of livelihood and help her to finally get out of that conflict zone. All you need to do is transfer her to another Developer. It is a big world out there and there are a lot of Developers out there who would take her -- all you need to do is write a letter to the current developer to terminate her accreditation (without prejudice to commissions that may be due to her on hold-over clause) and then write an endorsement letter to the new developer where you want her to transfer to. Understand also that Developers don't like fall-outs of their sales force, so try your best to assign a replacement Salesperson.

---

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!

How to frankly treat a Broker wannabe

QUESTION: Sir John, I want to become a Broker like you. Can you help me become a licensed Broker?

ANSWER: No, I won't help you. If the number of brokers will become too many, our professional fees will become cheaper. Mag Salesperson ka kung gusto mo mag-benta-benta. Starting June 2012, you have to be a graduate of 4 year course BS Real Estate in order to qualify to take the exam. If ever you will take the course, I wish you all the bad luck, I hope you will not graduate, I hope you will shift course in the middle. We will make the exam very difficult to make sure that you will not pass. Baka tatabihan mo pa negosyo ko, maging competitor pa kita, bababa kita ko. Makikisali ka pa sa hati-an ng pie ng professional fee. Never ask that question again to a hungry Broker because you will never like his frank answer.

---

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!

Differentiate Active from Inactive Broker

Question: Rltr. John, what is the similarity and difference between Active and Inactive licensee in IPORESP?

ANSWER: Similarity, both are licensed and both are members of AIPORESP.

The PRC licensees are Salespersons, Brokers, Appraisers, Assessors, Consultants. In HLURB, we have Salespersons, Brokers, Dealers, and Developers.

Active means the licensee have a capability to render LEGITIMATE services. Capability means he has Principal Place of Business, Official Receipts, IPORESP-Trained in Professional Services Procedures, etc. If you go to the office of an active licensee, you will find him working, and he has Salespersons.

Inactive means the person has a license badge, but he sleeps whole day, or on vacation whole year round, day and night in the coffee shop, ir in the noodle shop; he has no office, no salespersons; probably he has another full-time job or he is retired already.

Licensing is part of cost of doing business

QUESTION: Rltr. John, what is the difference between licensing in Professional Regulations Commission (PRC) and licensing in Realter Society.

ANSWER: The key terminologies that differentiate the two are “License to Operate” versus “License to Use a Patented Professional Title”. Only government can grant license to operate a government-regulated real estate practice or profession. In fact, within the government, there are also several other regulating agencies other than PRC that the individual needs to get license and registration from in order to get license to operate — examples are Bureau of Internal Revenue (BIR) for official receipts, City/Municipal Hall for business permits, and Housing and Land Use Regulatory Board (HLURB) for permit to sell real estate development projects (condominium, subdivisions, burial lots).

Realter Society registers in the Trademarks Department of the Intellectual Property Office Philippines (IPOPHIL) to get the patent of the Realter and Rltr professional titles. IPOPHIL grants Rltr. John R. Petalcorin (aka the Rltr Realter patent inventor, registrant, patent owner, and founder of Realter Society) the exclusive license to commercially operate the manner of use of the Rltr Realter service mark. The identity of all individual persons who are granted an extension of Right to Use the Patented Professional Title are recorded by the patent owner in the Realter Society Registry. The registry is necessary so that government (particularly BIR) will have a reference to determine how much Tax on Royalties should the patent owner correctly pay each year.

Even if a person has license to operate, he/she cannot use the Rltr Realter professional title if he/she will not get license to use the patented professional title from Realter Society. On the other hand, even if a person has a license to use the patented Rltr professional title being a genuine registered member of Realter Society, he/she cannot operate a particular government-regulated profession if he/she will not get license to operate from the government agencies.

Compliance to requirements of government license to operate will cost an individual real estate practitioner at least P5,000 if the cost is equally distributed per year. If you prefer icing on the cake, Realter Society membership costs less than P730 per year.

The bottom line is, licensing is part of the regular cost of doing business.

This is a good question and I will post this in the FAQ section of the Realter website.

GLOBALIZATION is the main reason why I patented Rltr Realter. If Realter succeeds in penetrating the global arena, the tax on royalties that the Philippine Government will get is HUGE! But there is a lot of workload to do. Philippines is the HOMELAND of Realter Society and I want a Model Home; I don't want a dirty home when the world looks at us.

Changes in real estate license and ranks

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 who have rendered a record of at least 10 years of ACTIVE service.

Within your license, there will be three layers of ranks that will automatically promote the licensee based on years of ACTIVE service.

BROKERS RANK

1. Broker - below 5 years active service
2. Senior Broker - 5-10 years active service
3. Consultant Broker - above 10 years active service

APPRAISERS RANK

1. Appraiser - below 5 years active service
2. Senior Appraiser - 5-10 years active service
3. Consultant Appraiser - above 10 years active service

PROJECT DEVELOPERS RANK

1. Project Developer - below 5 years active service
2. Senior Project Developer - 5-10 years active service
3. Consultant Project Developer - above 10 years active service

SALESPERSONS RANK

1. Salesperson - below 5 years active service
2. Senior Salesperson - 5-10 years active service
3. Consultant Salesperson - above 10 years active service

QUESTION: Nikko Mahor: will the rank be reflected in the license card? sana... para makita nung tumitingin kung baguhan o tumanda na sa industriya.

No. It will not reflect in the License Card. Sa IPORESP-level policy ang Ranks kasi hindi naman alam ng PRC kung Active or Inactive ang licensee. IPORESP lang ang may alam kung active or inactive ang licensee. Sa calling cards lang nila makikita mo kung anong rank.

Single license system

Another program of IPORESP is that the real estate service will have a PRC license card that will look different from the rest of the professions. We will have a SINGLE LICENSE SYSTEM. It will be like a Driver's License that will indicate the CLASS RESTRICTION.

A: Salesperson

B: Broker

C: Appraiser

D: Assessor

E: Developer

So, if you have license to operate as Broker and Appraiser, your Class Restriction will be [BC]. You don't need to maintain two cards. Don't need to pay for the two licenses separately. You will only have one license number. Did you get it?

We have to complete this program within the next four years to put in place a new system to accommodate the multiple license capability of the fresh graduates of the four year course.

Business as requirement for renewal of license

ANSWER: YES. The PRB-RES can do that if it really intends to (J) Promulgate, administer and enforce rules and regulations necessary in carrying out the provisions of this Act (RA. 9646). SEC. 33 says, "Display of License in the Place of Business. Every registered and licensed real estate service practitioner SHALL ESTABLISH AND MAINTAIN A PRINCIPAL PLACE OF BUSINESS and such other branch offices as may be necessary, and shall conspicuously display therein the original and/or certified true copies of his/her certificate of registration as well as the certificates of registration of all the real estate service practitioners employed in such office." In line with this, the PRB-RES can include the following document that will prove existence of Principal Place of Business: (1) Business Name Registration, (2) Official Receipt, (3) or Business Associate Certificate.

License is EXPENSE, Not Income

QUESTION: Sir John, I want to earn money in real estate. Kailangan ba ako kumuha ng license?

ANSWER: Dalawa lang naman yan eh, either you EARN or you SPEND. EARN or SPEND. EARN or SPEND. Those two will determine if you make profit or loss. My dear, LICENSE is under the category of SPEND, and it is very expensive to maintain a license (lalo na pag PHILRES ang Interim AIPO). Kung gusto mo lang magkaroon ng PRC Card, magpa license ka, but that won't guarrantee that you will earn. In fact, the moment you show to the buyers that you have a PRC Card, they will get scared because of the general perception that Brokers are "gahaman middleman". So, remember, LICENSE is an EXPENSE ITEM.

---

FLY-BY-NIGHT BROKERS

QUESTION: Sir John, I already have a Broker License, but I have no office yet. Part-time ko lang kasi ang pagiging Broker. Bakit wala akong na close na transaction?

ANSWER: You have a license, but no office. In short, you are an opportunistic FLY-BY-NIGHT. We are advocating against fly-by-nights because it is a hazzard to consumers. Useless yang license mo pag hindi mo kaya mag maintain ng office.

Determining Proof of Filipino Citizenship

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

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

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

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

Realteering require license, lawyers included

QUESTION: Sir John, I am an ATTORNEY/LAWYER by profession. I am not a licensed real estate professional broker or salesperson. My client asked my assistance to sell his real estate with a stipulated commission of 5%. We signed an Agency Agreement. Am I violating the R.A. 9646?

ANSWER: Definitely YES! You can go to jail for that.

Section 28 (D) of the R.A. No 9646 is about the Exemptions from the Acts Constituting the Practice of Real Estate Service.

Section 28 (D) exempts "any person who is duly constituted attorney-in-fact for purposes of sale, mortgage, lease or exchange, or other similar contracts of real estate, without requiring any form of compensation or remuneration".

There are actually five exemptions. If you did not meet the other exemptions, you will be captured by RA 9646 Section 28 D.

Can Foreign Brokers Practice in the Philippines?

QUESTION: Can foreigners now practice real estate service in the Philippines?

ANSWER: The answer is at SEC. 23 of RA 9646. Issuance of Special or Temporary Permit Upon application and payment of the required fees and, subject to the approval of the Commission, the Board may issue special/temporary permit to real estate service practitioners from foreign countries whose services are urgently needed in the absence or unavailability of local real estate service practitioners for the purpose of promoting or enhancing the practice of the profession in the Philippines.

SEC.24. Foreign Reciprocity No foreign real estate service practitioner shall be admitted to the licensure examination or be given a certificate of registration or a professional identification card, or be entitled to any of the privileges under this Act unless the country of which he/she is a citizen specifically allows Filipino real estate service practitioners to practice within its territorial limits on the same basis as citizens of such foreign country.

---

CONSIDER THESE

1. There is no other country yet that has authorized Filipino citizen brokers (who are neither residents nor citizen in their country) to practice real estate brokerage in their country.

2. There is oversupply of brokers all over the Philippines.

3. If the client require a bigger professional performance bond that local borkers cannot meet, a foreign broker who meets the requirement may be allowed to practice here, but only for that specific client.

---