Investing in Real Estate? Who Should I deal with? Finding the right Real Estate Service Practitioner

 

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Basically, a person with a specific need would look for a qualified individual/professional/institution to deal with so he would get the appropriate and necessary treatment applicable to his condition, let’s see the following examples:

•    A sick person would go to a duly licensed and registered Physician (medical doctor), preferably with specialization and practices in a (usually) well-known hospital so that he would be properly diagnosed and receive the right treatment for his disease, everyone fears to fall victim of medical malpractice.

•    A person involved in a legal matter would seek the professional help of a duly licensed and competent attorney-at-law to help him resolve his legal issues, or

•    An investor would put his money in a reliable financial institution duly registered in the Securities and Exchange Commission (SEC), or another governing body, which the law mandates  to avoid scams and ensure a good return of investment


Likewise, if you desire to own a real estate property whether for investment or a home, you should deal with a qualified and/or duly licensed Real Estate Professional to ensure safety of the transaction and quality of service, remember that when you purchase a real property, you shell-out millions of Pesos from your pocket, and you would want to get the property that complements the value of your money, receive the best service possible, and of course, avoid fraud, right?


In this time of day, you see lots of real estate developments everywhere - condominiums under construction and rising at the same time, subdivisions with lots and/or house and lot for sale are being built in a once “rural area” within the suburbs of Metro Manila, or you have known from someone that there is a property for sale by its owner. Well,  all of these have a lot to offer, from the most flexible payment term, the most aesthetically-designed amenity area, the largest living space, to the most accessible location. All of these signs of progress and numerous options have left you, the investor in a state of confusion in choosing the right property for you and your family.  One of the ways to help you decide is to seek the help of a Real Estate Sales Agent, but like what I said before, how would you know if you are dealing with a qualified Real Estate Practitioner?

On June 29, 2009, R.A. 9646, also known as the Real Estate Service Act (RESA) has been signed into a law and implemented to protect the welfare of the people/entities who intend to own Real Estate Properties in the Philippines, it also uplifts the Real Estate Service into a profession duly regulated by the Professional Regulation Commission (PRC), so basically, how does the RESA describe legitimate Real Estate Practitioners in terms of sale of real property?

Real Estate Professionals who have the right to engage in the sale of real estate properties are the Real Estate Brokers and Real Estate Salespersons:

•     A legitimate Real Estate Broker is a natural person who has undergone technical training on Real Estate, has passed the licensure exam for Real Estate Brokers facilitated by the PRC, has been duly registered after passing the Board Exam, and has been issued with a valid PRC license.

•     A legitimate Real Estate Salesperson should undergo a series of training and seminar and must be under the supervision of a duly registered and licensed Real Estate Broker and must be duly accredited with PRC before he/she may engage in any real estate sales transaction in behalf of the licensed Real Estate Broker

Moreover, if a PRC-licensed Real Estate Broker and a PRC-accredited Real Estate Salesperson wants to engage in the sale of properties offered by Real Estate Developer/s, they also have to register with the Housing and Land Use Regulatory Board (HLURB), as mandated by P.D. 957 (The Subdivision and Condominium Buyer’s Protective Decree).


Given the above-mentioned criteria, if you who wish to own a parcel of land or a house and lot for sale with a previous owner (resale) you have to ensure that the Real Estate Broker/ Salesperson you are transacting with is registered, duly licensed/ accredited with PRC and is duly authorized by the owner or his/ her authorized representative (as evidenced by a notarized Special Power of Attorney) to sell the property. The Real Estate Practitioner should always have a duly signed Authority To Sell or Offer To Sell from the rightful owner or his/her authorized representative.

On the other hand, if you want to acquire a property, let’s say a new condominium unit or a brand new house and lot offered by a Real Estate Developer, you have to be certain that the Real Estate Broker/ Salesperson you are to deal with is duly-registered with both the PRC and HLURB.  These government agencies basically issue a Certificate of Registration and an Identification Card for registered and licensed Real Estate Brokers and accredited Real Estate Salespersons. In addition to this, you may also check with PRC and/or HLURB office/s regarding the authenticity of the practitioner’s registration/license. Moreover, the licensed Real Estate Broker and accredited Real Estate Salesperson should have an active accreditation with the Real Estate Developer before he/she can proceed selling the property.


Real Estate Brokers/ Salespersons who engage in property sales without complying with these regulations may face penalties as stated in the two governing Philippine Real Estate Laws.


As we all know, there are always exemptions to the rule, so who are the people or entities who may sell real estate properties without registering or securing a license from the PRC / HLURB? This is what the RESA says:


•    The owner of the real estate property himself, as evidenced by the Owner’s Duplicate Transfer of Certificate of Title (TCT) or Condominium Certificate of Title (CCT) except Real Estate Developers


•    An authorized Representative (Attorney-in-Fact) of the owner of the Real Estate Property, with a duly notarized Special Power of Attorney (SPA) for purposes of sale of the property or such SPA bears the seal of the consul of the country where the owner of the property resides. The Attorney-if-Fact, however, should not receive any monetary consideration, or in kind relative to the negotiation and sale of the subject property, this statement may be indicated in the SPA as well.

In other words, in order for a person to receive a professional fee for a real estate sales (lease or mortgage) transaction, he/she has to be a PRC-licensed Real Estate Broker or a PRC- accredited Real Estate Salesperson.

•    Public Officers in the performance of their duties and functions, except government assessors and appraisers


•    Any receiver, trustee or assignee in bankruptcy or insolvency proceedings, and;


•    Any person acting pursuant to the order of any court of justice

Just like any other professionals regulated by the PRC, Licensed Real Estate Brokers and Accredited Real Estate Salespersons have undergone a series of technical training and regulation before they may engage in real estate transactions like purchase, lease, mortgage, and even joint venture of Real Estate Properties so that they may provide you with the best professional service.  Likewise, the Philippine Real Estate Laws – R.A. 9646 (RESA) and P.D. 957 are both created to ensure that the interests of both the Buyer and Real Estate Practitioner are protected.

So, remember, before you transact with anyone regarding the purchase (or lease/mortgage) of a real estate property, make sure if he/she is a licensed Real Estate Broker or an accredited Real Estate Salesperson who has complied with the Philippine Real Estate Laws, it really matters to be prudent when transacting with a person offering you a property for sale especially if he/she is asking you for a fee/commission without checking his / her background, because among the duties that a licensed Real Estate Broker / accredited Salesperson must perform is to verify the authenticity of the legal documents pertaining to or related to the property, check the technical specifications of the property if the same with the documents / public files, determine if the prospective client has the right to own the property, or if the seller has the right to sell, based on the governing Real Estate Property Laws, proper handling of delicate transactions for distressed properties (i.e. properties with pending legal case, adverse / multiple claims, etc.), identify which contract is suitable based on the settlement of the agreeing parties, and coordinate with other professionals (e.g. Attorney-At-Law, CPA, Real Estate Appraiser, etc.) and public officers/ government agencies.

Just like anyone else, you deserve to receive the appropriate professional service for your real estate investment.

I wish you good luck and happiness in finding your perfect home and investment!