RP’s real estate brokers beef up info campaign on RESA Law

October 27, 2010

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)


More than P400-M new investments get tax incentives in Davao City

September 21, 2010

DCIPC officer-in-charge Jason Magnaye during the Davao Business Forum at the MediSpa, SM City Davao

The newest investments in Davao City valued at P441 million that passed through the Davao City Investments and Promotion Center (DCIPC) gets exemption of paying mayor’s permit and fees.DCIPC officer-in-charge Jason Magnaye said this is on top of the approved investments during the first semester amounting to P612 million.

He said they need to work hard in order to meet their target of P1.9 billion this year.

The recent approved investment is still in line with real estate where one is a subdivision project worth P119 million and the other, a commercial building for mixed use with investments at P322 million.

Magnaye also said that the earlier investments consist of two projects on real estate, one in tourism while the other in agri-business.

In the pipeline are on real estate and commercial buildings, he said.

Meanwhile, he said majority of the investments in Davao City for the past several years are in line with real property development.

He said for the past three years, projects in the city were dominated by property development getting a share of 83 percent of the total investments.

He cited that since DCIPC started in 1995, property development got the biggest chunk as it cornered 61 percent of the total investments.

On the other hand, Magnaye is optimistic of hitting their target as they incorporate service marketing in finding new investors.

Davao City Mayor Sara Duterte-Carpio also goes out of her way in meeting with prospective investors and personally discussed with them what the city can offer.

He said the mayor also conducts personal visits to and assessments of existing projects of interested investors like in Manila in order to see for herself their projects.

Magnaye cited for instance that the Mayor led a small team to conduct ocular visit to the World Trade Center (WTC) in Manila as she is interested that a developer would invest in convention center here.

Although he stressed that they cannot dictate on the kind of investments he said perhaps they could influence.

A team from WTC composed of some senior officials will be coming to Davao City by end of September to check on the city’s investment area.

“The fact that a senior official is coming over would indicate that they are interested,” he said.

Magnaye said they double up in finishing their inventory and data as to real property investments as these comprise of the common data that investors ask. The other basic data as to infrastructure and other related information are also being readied by their office, he said.

He said a series of review and assessment are being made by them to ensure that investors get relevant and appropriate data as this will help them decide in locating here.

He also said they will continue to improve on their services and reach out to other sectors as they align with the development direction of the city. (PNA)

Davao City sees new businesses for 2009

January 17, 2009

An increase in new businesses in Davao City is expected this year to about 10 percent higher than the total businesses registered last year.
Business bureau chief Atty. Johpee Agustin said they were able to served about 32,000 businesses in 2008 both for new registrants and renewal of business permits and they expect new businesses coming in.
She said they are optimistic of the business trend in the city even as she said that they will continue to come up with new strategies so Davao City would generate more revenues.
She noted that on the first week of January this year they already received 14,739 applications for renewal and about 170 for new registration.
On a daily basis she said they receive some 2,000 to 5,000 applications and inorder to fast track the issuance of permits they came up with a scheme where the applicants after complying basic requirements are given temporary authority to operate (TAO).  But this will not apply to those businesses that needs detailed requirements like detailed permits, etc.
She said once the TAO is issued the investor can proceed and they still have to comply the other steps as required by other regulatory bodies.
She said the strategy enticed other busnesses to come to the city and with proper education and awareness they also noticed that businesses are religiously complying with the requirements compared to their previous years operation.
Meanwhile Agustin said that with their successful implementation of collecting occupational permit fee (OPF) where it gave Davao City some P6 million in revenues last year, they will be implementing the Special Mayor’s Permit Fee (SMPF) this year.
The OPF in 2007 only had a collection of P3 million while  P1.9 million in 2006, she said.
For the SMPF she said they will start to collect fees on all activities that will be conducted in the city.
She said this scheme is also provided in the Local Government Code and they will be implementing such inorder to make use of whatever is allowed by law for the benefit of the people of Davao City.
Meanwhile Davao City Treasurer Rodrigo Riola said their target income this year is pegged at P548 million and 60 percent of this will be taken from business taxes.
He said based on their experienced 60 percent of this collection will be realized by the first quarter of the year and of the fees the real property tax contributes about  60 percent of the total revenue generated.
He said most of the real property owners pay their taxes on the first quarter of the year because of the 20 percent discount.
Riola also said that Manila-based companies or those from other areas that operate businesses in Davao City are already paying their taxes here.
He said consultation and dialogue with these businesses made them understand that they need to share their income to Davao City considering that they engage business here.