DAVAO CITY — The Real Estate Brokers Association of the Philippines (REBAP) Davao chapter has beefed up its campaign on the Republic Act 9646 or the Real Estate Services Act (RESA) of the Philippines to guide both the public and the brokers better understanding of the amendments of the law. REBAP Davao chapter vice president Winstone V. Pulido said they welcome the law as it will continually professional their sector.
He said with the number of unlicensed brokers operating in the island, RBAP do not have way to monitor the activities of some of these sellers.
The new law is beneficial to the buying public of transacting as they will be shielded from transacting to unregistered brokers that led overpricing of the property and engage in unethical practices.
He said the government has been taking serious steps to provide protection for property buyers and they see this as a good step for them to be encouraged to invest more in Philippine real estate.
The law states that a licensed broker is allowed to have under him only 20 sellers but the practice before the approval of the new law was many real estate projects had only one or two registered brokers with 200 to 300 sellers.
He said with RESA, the practice of real estate broker will now be regulated even as he said that a broker before he or she will be allowed to take the real estate brokers examination for licensing need to acquire 24 units under the continuing education program (CEP) and this arrangement will be honored for the 2011 examinations.
By 2012, prospective examinees need to comply 120 units under the CEP, he said.
The legitimate practitioners of brokering as a business are subjected to fees and taxes while a good number of “fly-by-night” brokers that would number to about 2,500 in Davao City alone escape government regulations and payment of taxes and fees, he said.
“And this would some up to millions of losses of government in the form of taxes as most unlicensed brokers charge 5 percent commission,” he said.
The RESA Law is in support to professionalize and regulate the practice of real estate in the country through the development of technically competent, trained and accountable real estate practitioners.
The law defines that real estate broker is a duly registered and licensed natural person who, for a professional fee, commission or other valuable consideration, acts as an agent of a party in a real estate transaction to offer, advertise, solicit, list, promote, mediate, negotiate or effect the meeting of the minds on the sale, purchase, exchange, mortgage, lease or joint venture, or other similar transactions on real estate or any interest therein.
Pulido said the REBAP supports the information dissemination campaign of the Professional Regulation Commission (PRC) and the Bureau of Internal Revenue (BIR) to reach out to as many brokers to have themselves get licensed and legalized their profession.
Pulido said although this will be a huge task ahead, the passage of the RESA Law is a good start to professionalize their sector and at the same time protect the interest of the public from unscrupulous agents.
With the real estate industry in Davao City hitting a positive growth, he said, a lot of real estate development is opening up in the city especially that there is a demand for houses here from the neighboring regions wanting to locate here.
Meanwhile, he said brokers who will attend the First Mindanao Real Estate and Housing Conference in Davao City scheduled on Oct. 5 to 6 will earn units and credited under as allowed by PRC. (PNA)