PROFESSIONAL FEES

QUESTION: Rltr. John, businesswise, what will be the new practice when IPORESP becomes AIPORESP?
You will reap the fruits of your licenses and get the DIGNITY of the profession. All Brokers and Appraisers who want to be listed in the Directory as "ACTIVE" will be required to set-up an office and have Official Receipt. We will MANDATE charging of PROFESSIONAL FEES on the following services menu. Ang hindi susunod, ma charge ng violation sa ETHICS! Walang colorum na palalampasin, ipakulong lahat, mga developer na nag employ ng colorum kakasuhan at singilin ng IPORESP ng P200,000 proprietary infringement damages.

PROFESSIONAL SERVICE MENU AND TARIFF

• Percentage Commission (separate table of standard will be provided)
• Verbal Consultation (in office) - P500
• Verbal Consultation (outside office) - P1,000 plus gas
• Issuance of Prescription (checklist of required documents) - P500
• Entry/Edit/Upload of Record in PNLS - P500
• Print-out of Listing Record from PNLS - P200/property
• Acceptance of Authority to Sell/Lease - P500
• Property Management - P20,000 per year
• Stamping of Clearance on Reservation Form - P500
• Stamping of Clearance on Contract to Sell - P500
• Stamping of Clearance on Deed of Sale - P500
• Stamping of Clearance on Start of Lease Contract - P500
• Stamping of Clearance on Ending of Lease Contract - P500
• Stamping of Construction Clearance by Real Estate Project Developer - P1,000
• Record Verification in Registry of Deeds - P1,500
• Record Verification in Assessor's Office - P1,500
• Entry-level Seminar of Salesperson - P3,000
• Management and Supervision of Independent Salesperson - P12,000/yr
• Photography of properties for sale for advertising purpose - P1,500
• Advertising clearance - P500
• Regular Routine Appraisal for Tax update purpose - P500
• Special Mandatory Appraisal of property for sale - P10,000
• Successful Colorum Reporting - P100,000 (payable by IPORESP)
• Waiving of Professional Service Fee, on case to case basis, would require BIR Clearance.

VAT ON PROFESSIONAL FEES

QUESTION: Are those rates quoted inclusive of VAT?

ANSWER: No. It does not include VAT. The service provider will add on it either 12%VAT or 3% Percentage Tax.

CALL FOR UNIFICATION

Now, why are you just sitting there? Everyone must help, you and me, everyone, in finding the RESPs and making them sign-up in IPORESP.

Meron pang mga provinces and municipalities na walang Brokers. Once we set up the AIPORESP, PNLS, and Professional Fee System, please try to explore the possibility of moving to the provinces and set-up your office there para maserbisyohan ang mga tao.

ADVERTISING CLEARANCE

QUESTION: Rltr. John, I read Advertising Clearance in the Service Menu of Professional Services. What is that?

ANSWER: With the PNLS up and running, LAHAT po na properties for sale and lease makikita po sa PNLS. LAHAT as in LAHAT, may broker man yan o wala.
Real Estate Advertising Companies, mga classified ads like Buy and Sell, SUlit, AyosDito, etc. whether online or print, will be Regulated. Bago ma ADVERTISE ang property, kailangan po ng Advertising Clearance and PNLS Upload, a procedure that is exclusively done by licensed brokers. Sa mga kaya po mag DIY sa pagbebenta ng properties nila, pwede po iwasan ang Agency Service (pagbabayad ng commission); pero hindi pwede iwasan ang pagbabayad sa Advertising Clearance and PNLS Upload.

SALESPERSON SEMINAR COST

QUESTION: Nikko Mahor: Entry-level Seminar of Salesperson - P3,000. Sir John, ang current price ay nasa 1.5k-2k lang po... you might want to adjust para pumareho lang sa existing providers.
answer: You need 16 hours of Salesperson Training -- essentials lang yan. At P200 per hour, that should be P3,200. Eight hours dyan ay sa Governance. Another eight hours sa Specific Products. Sila ang mag adjust sa akin. I am not the one who will adjust to them.

SALESPERSON SUPERVISION

QUESTION: Rltr. John, what is that Management and Supervision of Independent Salesperson (P12,000/yr) in the menu?

ANSWER: Salespersons need Brokers to attach their registration under; and also to supervise their compliance to governance. Salespersons can either be EMPLOYED under the broker or INDEPENDENT under the broker. Pag employed, COMMISSION SHARING SCHEME. Pag independent, yan ang P12,000 Supervision Fee na babayaran niya sa Broker.
But take note that JSA na ang gagamitin. Under the JSA, the Salesperson is provided by the Broker with a list of 56 Prospective Buyers to work on for the next 12 months, within the region lang para hindi siya masyado mabigatan sa transpo. Separate topic yang JSA.
So, each Salesperson wannabe is looking at investing around P15,000 while looking at a potential income from a list of 56 Prospective Buyers.

As a matter of cross reference, please read also my blog titled "Here's A Good Deal for Salespersons".

WHO WILL DO THE SALES WORKLOAD?

QUESTION: Sir John, pwede ba personal na mag benta benta si Broker?

ANSWER: Hindi. Ang benta-benta ay trabaho yan ng Salesperson at hindi makikipag kompetensiya ang Broker sa Salesperson.

MANDATORY APPRAISAL

QUESTION: Rltr. John, ano po yang Mandatory Appraisal?

ANSWER: Magkakaroon ng government legislation (probably amendment of Local Government Code) na lahat na real estate property ay kailangan ng mandatory appraisal report every five years for Assessed Value Update purposes. The Appraisal can be done by private Appraisers. The asking price of all properties for sale will use the data from the Appraisal Report.
So, the active Appraisers gotta have good walking shoes and must know how to do it in a quick manner. As soon as the law takes effect, we have 5 years to prepare the procedure and set-up the Appraisers' Principal Place of Business (PPB) nationwide to assure the public that we can absorb the workload that will arrive like a tsunami. People will surely fall in line on queue to get the Appraiser's service.

FREELANCE AGENTS?

QUESTION: Nikko Mahor:"Salespersons can either be EMPLOYED under the broker or INDEPENDENT under the broker. Pag employed, COMMISSION SHARING SCHEME. Pag independent, yan ang P12,000 Supervision Fee na babayaran niya sa Broker." Question: When you say independent, I take it to mean freelance, sir?

ANSWER: Freelance refers to TIME committed for work. Parang Part-time salesperson sa weekend, pub dancer sa gabi, katulong sa araw. Gets mo? Independent means the working relationship of between the Broker and Salesperson is on INDEPENDENT CONTRACTOR basis. Now don't blink about the innovation that am about to say. Under the Independent Scheme, the Salesperson gets the Broker as Independent Contractor to provide him with Management and Supervision Services. So hindi na kailangan ni Salesperson magkaroon ng sariling Official Receipt. Only the BrokerOffices are required to have ORs. The Independent Salesperson pays the Broker P12,000 for one year and he/she gets one year Management and Supervision service -- the Broker will issue Official Receipt to the Salesperson for the P12,000 and also for the P3,000 training. As independent contractor scheme, the Salesperson gets 100% of the commission.

STAMPING SERVICES

QUESTION: Rltr. John, what is that Stamping? Where will we get the stamp?

ANSWER: IPORESP will have exclusive authority to manufacture and sell the TRODAT stamper for Project Development Consultants, Brokers, Appraisers, and Salespersons. Mabibili yan only from IPORESP. All stampers will have a print record in IPORESP. Just like in firearm registration, merong storage ng sample slug yung baril mo sa Firearms and Explosive Unit ng PNP. Ganun din yang mga Trodat Stamps na yan. In this way, IPORESP can quickly check if the stamped documents in the grounds are genuine -- for fraud detection purposes.
Under the new set-up, no real estate document is legal unless it carries the stamp of the licensed ones. No document gets stamped unless it passed through the due-diligence scrutiny of the licensed ones. Say goodbye to fraud.

CUSTOMER HAGGLING FOR REDUCTION OF PROFESSIONAL FEES

QUESTION: Rltr. John, how will we handle the situation if the customer will haggle for reduction of Professional Fees?

ANSWER: You tell them you will lose your license if you will not follow the IPORESP Prescribed Tariff. As a professional, you will be trained and audited to follow PROCEDURE. If you will not follow procedure, say goodbye to your license. Discounts will be given to Senior Citizens, Disabled,and Student customers. Waiving a fee is hassle because it will require BIR approval.

ON CONSULTANTS

Consultant's specific JOB per RA 9646 is PROJECT DEVELOPMENT (Condo and Subdivision). In my old blogs, I already mentioned that ALL ENGINEERING PLANS for new Houses, Subdivisions, Condominiums, and Townhouses will have a separate box for Consultant's Stamp. Local Government Code will be amended to insert this policy in the requirements for issuance of Construction Permit.

QUESTION: Lebb Medina Tibio: You mean to say that all proposed projects done primarily by Architects Planners,Urban Planners and other allied services should pass the stamp box of the Real Estate Consultant for a fee? For what kind of scrutiny or review they may want to employ when the truth of the matter, these multi-discipline sectors such as Urban Planners and Architects are already experts in their field of endeavor.What value of service they may want to render? I think it's more complicated.

ANSWER: YES YES YES YES with exclamation mark! Must have a Stamp of the Real Estate Consultant to ensure that it is compliant to the restrictions of the "community". We will use the Consultants on technicalities they are trained for the benefit of the subdivision, village, or community -- especially on the ENVIRONMENTAL and CONFORMITY aspect. It's okay to be a genius architect who builds round-shaped buildings, but we are doing the Developer a favor here and we want the Consultants to do the job to ensure that you conform if the Master Deed if ever it wants a box-shaped buildings inside their village.

Urban Planners, Engineers, and Architects will still have their stamp boxes in the plans; but we will ADD the Real Estate Project Developer (Real Estate Consultant) box. In short, the others will still have a space to sit in the jeepney, pero umusog lang ng konti kasi papasok at uupo si Consultant sa jeepney.
Now listen to what I am about to say. The Term Real Estate Consultant will be changed to Real Estate Project Developer in RA 9646 amendment.

The term "Consultant" will then CAN be used by Brokers, Appraisers, Real Estate Project Developers, and even Salespersons.

EFFECT OF NUMBER OF RESPs ON PROFESSIONAL FEES

QUESTION: Sir John, what determines the rate of professional fees?

ANSWER: The number and provincial distribution of licensed Brokers and Appraisers will determine the market price of the real estate services Professional Fees. In economics, supply and demand determines the market price. No problem about the demand because IPORESP will surely push for the mandatory due diligence processes in all real estate transactions that will require all customers and clients to have their documents reviewed and stamped in Broker office. On the supply side, the fewer the service providers, the higher the fees; the greater the number of service providers, the lower the fees. That is why when I say that the LAW SAYS that the onset of 4 year BS REM as requirement for exam starts June 2012, it should start on June 2012. There should be 4-5 years moratorium of new licensees and the law already provides for this moratorium. It is very difficult to make a stable price determination if the number of service providers keep on growing.

ONSET OF IMPLEMENTATION OF PROFESSIONAL FEES

QUESTION: Sir John, when is the onset date of implementation of Professional Fees?

ANSWER: Professional Fees cannot be implemented effectively at the ground level without AIPORESP that will mandate the (1) office set-up requirements, (2) standard due-diligence procedure, business process, (3) standard rates on all RESPS, and (4) taxation. There are still procedural training to be done by Salespersons, Brokers, and Appraisers to enable them to perform services that gives them the right to charge professional fees. The Professional Fees is a program of IPORESP and we understand that there are real estate practitioners who oppose it, especially the old-minded ones. RESPs have to rally behind IPORESP, by signing up through the membership process of IPORESP.ORG if they want to speed up the implementation. RESPs who have not signed-up in IPORESP are assumed and considered to be anti Professional Fees, and the anti group puts a lot of stress on the program. For example, now, IPORESP is on Licensing Strike because of red tape in PRC -- the strike gives a lot of stress on the timely implementation of IPORESP plans and programs.

PROFESSIONAL FEE IS ALSO A MECHANISM TO ERADICATE COLORUM

QUESTION: Rltr. John, can professional fees help in the colorum eradication?

ANSWER: Once the Professional Fees are fully implemented, the colorum will be eradicated for many reasons, such as: (1) advertising companies online and print will no longer accept request for advertising without advertising clearance from a licensed broker, (2) deeds of conveyances will already be required to get a broker's clearance stamp before notarization, (3) among others. The PNLS of IPORESP is also a sure effective way to eradicate scams and fraud in the real estate market because there will no longer be property that will be advertised for sale or lease without proper due-diligence clearance by the licensed brokers.

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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!

Solution to Outdated Info in Listings

QUESTION: Sir John, how can we make a Multiple Listing Website wherein information about listed properties are 100% updated in a timely manner?

ANSWER: Looking at the existing models and traditional procedure, I can say that there is no way to guarantee 100% truthfulness and update of an inputted listing because truth is dependent on time. A property for sale now may be already sold after an hour, and it takes inconvenience to update the advertisement. What I am saying is, nobody spends time to advertise "this property is no longer for sale". But the buyer side is protected by his exclusive buyer agent who will do the nity-gritty of due diligence as a shopping assistance.

However, to solve such problem, I developed a procedure that will make information in the web-based multiple listing 100% updated in a timely manner. I named it PNLS in my Blogs, hanapin mo na lang kasi nagkalat ang ideas ko nyan sa iba-t-ibang blog titles. Hindi ma-develop etong PNLS na eto habang PhilRES ang APO, hindi ko sila bibigyan ng strategic support kahit mag-attempt sila mag create. When IPORESP becomes AIPO, ma-implement natin eto, keep on signing-up lang in IPORESP, 8% na ng mga RESP nag sign-up sa IPORESP.

National Listing Benefits of Sellers Agents and Buyers Agents

QUESTION: Sir John, ano po ba ang mga properties na pwede namin ibenta na makikita namin sa Philippine National Listing System (PNLS) na gagawin ng AIPORESP? Paano ma access ang PNLS?

ANSWER: Lahat, including (1) ALL for sale by owner, (2) ALL project development such as condo, subdivision, memorial lots, (3) ALL foreclosed properties by banks, (4) ALL properties foreclosed by Government. Wherever it is, you can sell it Wherever you are. PNLS can be accessed online using your username and password. I call it a Perfect Market scenario.

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QUESTION: Sir John, malinis po ba mga papeles nyang mga properties na listed sa PNLS?

ANSWER: 100% malinis because sellers are required to pass through a due diligence process in a Broker's Office before it gets listed. The Broker can charge an AIPORESP-standardized Professional Fee (PF) for the pre-listing due diligence work. PF is your bread and butter income, atsaka meron ka pang commission pag mabili yang property that you uploaded in the PNLS.

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QUESTION: Sir John, paano naman ako mag earn sa PNLS kung ang Buyer ang lumapit sa akin?

ANSWER: Let's say you are a Davao-based Broker and a Buyer comes to your office looking for a Condominium in Manila (napakalayo). All you need to do is log-on to the PNLS, register the name of the Buyer in the PNLS (so meron ka nang hold sa kanya), and print out a filtered list that meets within the budget specification of the Buyer -- all this you can do in 15 minutes. Then ma-mili siya kung alin ang gusto niya, merong mga pictures yan, pwede mo i-print ang documents ng property to meet the Disclosure Policy. Pag intersado siya to buyone specific property, you will then contact the Listing Broker and start negotiating on the price. Pag ma-sara ang sale, you get half of the commission, the listing agent gets the other half. PNLS can print-out Deed of Sale, correctly calculated BIR Tax Bills, Real Property Tax Bill, in just a few clicks. That is how efficient the PNLS is. PNLS will make you a real PROFESSIONAL. With this PNLS, you will feel knowledgeable, smart, proud, dignified, satisfied, and your clients and customers will be happy.

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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!

Philippine National Listing Initiative

QUESTION: What is a Listing? Do we have this in the Philippines?

ANSWER: The term "Listing" originated from the Stocks Exchange, which refers to a listing of stocks that are authorized for trading. Later on in Real Estate sector, the Americans use the term Listing to refer to properties authorized by licensed real estate brokers to be entered in the National Listing, which is a one online database administered by the National Association of Realtors (NAR).

The data in the national listing, which includes properties sold by individual owners, developers, banks, and local governments, can only be accessed by real estate brokers who subscribe monthly dues to its services.

When a property owner requests the services of a broker to sell his property, the owner pays a fix amount to the broker for the property to be inputted in the National Listing -- this fee is called listing fee and the contract is called listing agreement.

When a buyer approaches a broker, the latter can instantly access the National Listing to quickly provide a wide array of choices to the buyer.

The brokers in US also use this National Listing to compare real estate prices in the neighborhood so that they can give reliable information that will help sellers become realistic in their asking price. Whether you are a listing broker or buyer's broker, with a National Listing, you will earn (1) listing fee, (2) professional fee for due diligence, and (3) guaranteed share of the commission.


In the Philippines, we still don't have a National Listing database. So, we shouldn't be using the term "listing" here yet in the real estate sector.

The thing we have in Philippines are small separate collections of "Authority to Sell" being shared among a small group of Association members and this is what I call inefficiency. This inefficiency means the brokers' income is not sure, the buyers are not given a wide array of choices, the properties don't get sold fast.

This inefficiency is the thing that I want to eradicate by creating a one Integrated Professional Organization of Real Estate Practitioners (IPORESP) as the RA 9646 prescribe and then administer the National Listing. I envision that all licensed brokers will automatically become member of the IPORESP as individuals as the law prescribe and each one will benefit from the National Listing. So when you pay your membership to IPORESP (I proposed P1,000 a year), you get the benefit of access to the National Listing. So, this is it that we look forward to as the relevant development in line with the RA 9646 implementation.

The downside is, I am having difficulty pushing the initiative because there are people along the way who are doing a blockade, specifically the PRB-RES of PRC who are anomalously put to power by the two Associations (PAREB and REBAP). For three decades (1980s, 1990, 2000s), almost all brokers were not able to operate profitably well because of these Associations. Under the reign of the Associations, the colorum agents grew in thousands and these exploited flier-handing sharks ate a huge share of the market, displacing the licensed brokers. As long as the Associations control the market, the real estate broker license will continue as a mere plain pocket badge rather than a profitable profession.

If you support my National Listing Initiative, we as individual brokers have to form the IPORESP first, then replace the current PRB-RES, and establish the National Listing for the benefit of the buyers, sellers, brokers, and the entire real estate sector.

The National Listing is just one of the 17 Initiatives I have in mind so we can catch up with the global pioneers. If my initiatives will push through, the real estate industry in the Philippines will surely become dynamic.

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I dedicate this blog to my Facebook friends who celebrate their birthdays. I dedicate this blog to my friends who celebrate their birthdays.

Adiol Valderama Tamayo, Ana Mae Candelario, Charlize Legaspi, Chrizsh Teiin, Genelyn Ferrer, James Labor, Jayvee Alcober, Leroy Gonzales, Michelle Laurel, Rose Petalcorin, Sittie Asmia Dimaporo, Thol AtaydexCharm Sering, Clariza Petalcorin, Ernest Carpio, Felisa Lacsa, Ilda Zambrano-Payne, Joycelyn de Guzman, Marjec Yoon, May Idy Buan, Meztro Inhinyero Elektronico, Nenita Lleno Evangelista, Philip Calata, Ramil Milagrosa, Remz Rjletegio, Romarie Santos, Shandy Estobo Go-Aco

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QUESTIONS AND ANSWERS

Alex: Regarding our salespersons, can they serve 2 brokers with different projects?

ANSWER: A salesperson can only work under the control and supervision of one broker, a broker can only have a maximum of 20 salesparson, this is what the RA 9646 provides. The good thing in my National Listing Initiative is that the Developers who have HLURB Permit automatically accredits IPORESP and all its members; in short, ALL brokers will automatically become accredited to sell anything that is captured by the National Listing of the IPORESP, whether that be a condo/subd project, individually owned property, bank foreclosed properties, or gov't foreclosed properties. In short, a salesperson working for a broker can sell EVERYTHING in the National Listing, and thus in short ans simple statement it means ALL salespersons and Brokers nationwide can sell your project.

Noel: Sir John, I just want to make clear if the 20 Salespersons limit per Broker is applicable only to in-house corporate brokers. How about those independent brokers who are selling different projects from different developers?

ANSWER: The 20:1 Ratio is a legislated limitation na aplicable sa lahat, whether the broker is an employee (inhouse) of the developer or the broker is an independent office, klaro yan sa RA 9646.

Yung independent brokers ay may limitation on the number of salesperson 20 lang talaga ang maximum, pero pwede mag-benta kahit gaano ka-raming project (in fact ang ideal ay lahat na project) walang limitatation.

Dapat alam mo rin ang difference ng in-house broker and independent broker. Lahat na broker dapat merong OPISINA, required ang official place of business sa RA 9646. Ang in-house broker, ang office niya ay ginagastosan ng developer at merong terms and conditions yan. Ang independent naman ay ginagastosan ng sarili niya.

Ang tanong, under RA 9646, pwede pa ba mag-continue na merong license ang mga brokers na walang opisina, yung tipo bang parang fly by night na sa Jollibbee nakikipag-transaction? Ang sagot ay HINDI NA, nasa RA 9646 yan nakasulat sa Section ...33. Hindi na pwede yung mga Brokers na walang official receipt. Kung inhouse broker ka, gamit mo resibo ng Developer. Kung independent broker ka, ehhhh gamit mo sarili mong resibo. Eto ang na overlook ng anomalous na PRB-RES ngayon, kaya ayun pinagbibigyan lahat ng license without exam kahit walang mga office and resibo ang mga fly by night.

Noel: Thanks for the quick reply and for the additional insights. I have seen some postings in the internet by some brokers who used "independent broker" loosely. Well, at least now this is clear. Your idea above of coming up with a National Listing would be very useful since the database (I'm assuming it is online?) could be accessed by a subscriber even if the broker is in the province.

ANSWER: The National Listing is online na kasama eto ng IPORESP Website. Kung licensed broker ka you can access it through the internet kasi yan ang incomable (mapapakinabangan mo) service na babayaran (P1,000/yr) mo bilang member ng IPORESP. Brokers lang makaka-access ng National Listing. Ang mga salesperson, kung kailangan nila ng info from the National Listing Database, ehhhh hingin nila sa kani-kanilang boss broker.

Ang public hindi nila makikita ang National Listing. Ang makikita lang ng public sa IPORESP Website ay ang National Directory ng mga Brokers in compliance to RA 9646 Sec 22. In short, for example kung merong buyer na gusto bumili ng residential lot sa Cebu, ang gagawin niya punta siya sa website ng IPORESP, then tingnan niya ang Brokers Directory, then click niya ang Cebu and lalabas na mga pangalan ang address ninyo mga brokers sa Cebu, ang buyer na ang mag choose sino sa inyo ang pagtatanungan niya tungkol sa availability ng property sa Cebu. Through the National Listing, ikaw na broker dyan sa Cebu, makikita mo kung ano ang mga for sale na units dyan sa cebu in just one click by accessing the National Listing, and you can give real-time reliable info to the client.

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QUESTION: Sir John, under RA 9646, the Salesperson is only allowed to collect compensation from the Broker. How will the Salesperson know if the Broker received the commission already, or his share is due already?

ANSWER: The IPORESP National Listing System will also be used to promote transparency and prevent buyer-seller-broker-salesperson disputes on payment information. The National Listing System information will surely be providing real-time information. You would know the status of a property, whether it is actively for sale, or for lease, or on reservation, on conditional sale, or under pending due diligence clearance, etc. I believe there should be no no dispute if information is clear, reliable, and accessible.

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IF YOU HAVE QUESTIONS, please go to the IPORESP Page in Facebook and ask it there. Thank you.