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Tag: PD 957

  • Reminders as 2024 Rolls In

    “Our goal is to set the gold standard when it comes to compliance.”

    – Cathy Engelberg, Commissioner of the WNBA

    By Realttorney®

    Happy New Year. We wish you all the best for the Year of the Dragon. May you all work synergistically with your teams or other REPs to have the most prosperous 2024 possible.

    Photo by fauxels on Pexels.com

    We hope that you have your yearly goals written and these goals broken down into quarterly, monthly, and weekly goals.  Since this is the first working day of 2024, we would like to remind all real estate service professionals (RESPs) of some regulatory compliances according to Republic Act No 9646 and its Implementing Rules and Regulations (IRR).

    First, in Section 38, Rule IV of the IRR “Real estate service practitioners shall be required to indicate the certificate of registration, professional identification card, Privilege Tax Receipt (PTR) number, AIPO membership and/or receipt number.”

    Now, the IRR says ”privilege tax receipt” but in reality, this is called the Professional Tax Receipt or PTR. Yet, despite the “misspelling”, the mandate is clear. All licensed RESPs should get a PTR.

    Here are my previous year’s Professional Tax Receipts as an attorney and real estate broker

    It costs around PhP 300.00 and you can get this at the Office of the Treasurer of your LGU. Just say that you will get a PTR when you stand in front of the transaction window of the Treasurer’s Office. Some LGUs may not have a PTR, but instead have an OTR – the Occupational Tax Receipt – which is the same thing.

    What must you bring with you when you apply for a PTR? For veteran RESPs, a photocopy, digital copy, or the original copy of the PTR of the previous year will suffice. For the new salespersons and brokers, you need to bring a photocopy of your Certificate of Registration and the PRC ID Card with you.

    Second, if you are already registered with the Bureau of Internal Revenue (BIR) then you should pay your annual registration fee of PhP 500.00 using the BIR Form 0605. You can remit the payment at the BIR Revenue District Office (RDO) that you registered in or at the Authorized Agent Banks of the concerned RDO.

    Third, and final reminder, concerns accredited real estate salespersons and licensed real estate brokers who engage in project selling. If it is your cup of tea to sell subdivision and condominium projects then you are mandated by Presidential Decree No. 957 to register with the Department of Human Settlements and Urban Development (DHSUD), according to existing rules and regulations.

    Like securing a PTR, the Certificate of Registration must be renewed annually. You can apply at the Main office of DHSUD in Quezon City or at its Regional Offices nearest your place of residence.

    For licensed real estate brokers wanting to do project selling for the first time or those who are renewing their certificate of registration, kindly prepare for submission the following:

    (1) duly accomplished Application Form – which is specific per region. The application form you can download if you click here is only for Region IV-A [CALABARZON];

    (1) Photocopy of valid PRC-issued Certificate of Registration and PRC-issued Professional Identification Card (Originals thereof to be presented upon filing for comparison as faithful reproduction);

    (2) previous year’s Official Receipt;

    (3) Two recent 2 X 2 ID pictures; and

    (4) Surety/Cash Bond.

    If you are lucky to have been issued an ID Card issued by DHSUD then a copy of it can also be submitted. The registration fee is PhP 720.00 if renewed before expiration.

    Here is my DHSUD Identification Card for the year 2023

    Meanwhile, for newly accredited salespersons or those wanting to renew, you need to submit the following:

    (1) duly accomplished Application Form – which is specific per region. The application form you can download if you click here is only for Region IV-A [CALABARZON];

    (2) Two recent 2 X 2 ID pictures;

    (3) a copy of the PRC-issued accreditation card, or PRC-issued Official Receipt. or the PRC-issued claim stub;

    (4) Cash/Surety bond; and

    (5) the Letter of Engagement/Employment signed by a DHSUD registered Real Estate Broker with these attachments – copies of the PRC ID card of the broker, the DHSUD ID card, and the listing of accredited salespersons from PRC under the broker’s name. The registration fee is PhP 288.00 if renewed before expiration on December 31.

    Here is a sample of the Salesperson’s Letter of Engagement/Employment. Once again, notice that the Letter is region-specific. I secured this since I filed my requirements to the CALABARZON region in Brgy. Halang, Calamba City, Province of Laguna.

    Here is a final note. According to Section 4.7. of PRBRES Resolution No. 11, Series of 2021, “it is only after Mass Oath taking that the RES-Applicant can be considered Accredited and can already practice the real estate brokerage profession and may now register at DHSUD.”

    Let it be known that the Real Estate Salesperson-Applicant can only apply for registration at the DHSUD after attending the oathtaking ceremony – whether in person or online – NOT before. We hope this is clear.

    So kindly perform these regulatory compliances for you to work fully compliant with the requirements of the law that regulates our profession. Failure to comply is a violation of the law and the professional can be subjected to criminal and administrative sanctions.

    Start the year right. As professionals, these are the things we do. It is part of our identity as legal and fully compliant real estate service professionals.

    ——-

    Atty. Jojo is a real estate attorney, an estate planning attorney, a licensed real estate broker, and a PRC-accredited Lecturer/ Speaker for Training Programs in Real Estate. He is committed to helping new and veteran real estate service practitioners be well-informed of the latest laws, rules, regulations, and information relevant to the real estate service sector.

  • Can a Homeowner-Member Refuse to Pay Monthly Dues Because of Poor Service?

    Indeed, the essence of community life is association and cooperation for without these such broader welfare goals cannot be attained.

    – Mr. Justice Hugo E. Gutierrez, Jr., in Bel Air Village Association, Inc. v. Dionisio

    By Realttorney®

    Ms. Beth left a question on the website which is very much relevant in today’s realities as a homeowner-member in a Homeowners Association (HOA). Here is the question:

    “Do I have the right not to pay the monthly due because the association’s officers failed to do their responsibilities of protecting the rights of the neighborhood against loud noise and maintaining the vacant lot? I hire people to clean the area and cut the tall grasses. I intend not to pay the monthly due to refund the amount I spent for cleaning the area. According to our officers, it is my responsibility to clean the vacant lot adjacent to me.”

    Before we answer the question of Ms. Beth let me discuss first the rights and duties of a Homeowner pursuant to Sections 7 and 8 of Republic Act No. 9904, otherwise known as the “Magna Carta for Homeowners and Homeowners’ Associations”.

    Under the Magna Carta, an association member has full rights:

    1. to avail of and enjoy all basic community services and the use of common areas and facilities;
    2. to inspect association books and records during office hours and to be provided upon request with annual reports, including financial statements;
    3. to participate, vote and be eligible for any elective or appointive office of the association subject to the qualifications as provided for in the bylaws;
    4. to demand and promptly receive deposits required by the association as soon as the condition for the deposit has been complied with or the period has expired;
    5. to participate in association meetings, elections and referenda, as long as his/her bona fide membership subsists; and
    6. to enjoy all other rights as may be provided for in the association bylaws. [Section 7, Rep. Act No. 9904]

    “Basic community services and facilities” refer to services and facilities that redound to the benefit of all homeowners and from which, by reason of practicality, no homeowner may be excluded such as, but not limited to: security; street and vicinity lights; maintenance, repairs and cleaning of streets; garbage collection and disposal; and other similar services and facilities. [Section 3 (d), Rep. Act No. 9904]

    On the other hand, a homeowner-member shall have the following duties:

    1. to pay membership fees, dues and special assessments;
    2. to attend meetings of the association; and
    3. to support and participate in projects and activities of the association. [Section 8, Rep. Act No. 9904]

    It is clear that paying the monthly association dues is a duty of a homeowner-member. But, before paying monthly dues, the homeowner-member must verify if the HOA is duly registered at the Department of Human Settlements and Urban Development (DHSUD) – formerly at the Housing and Land Use Regulatory Board (HLURB).

    If the HOA is duly registered, the homeowner-member must demand an official receipt that is registered at the Bureau of Internal Revenue (BIR) when paying the monthly dues and special assessments. This is to make sure that the dues being paid are legally accounted for.

    Now based on Rep. Act No. 9904 and its Implementing Rules and Regulations (IRR), please know that “the dues, fees, and special assessments to be imposed on a regular basis, and the manner in which the same may be imposed and/or increased” should be clearly provided or written in the Association Bylaws.

    Finally, please know that the monthly dues are intended for garbage collection, salary of security guards, cleaning and maintenance of streets, establishment of parks, etc. It is likened to a tax that Filipinos pay to support the programs of the National and Local Governments.

    Now, the question on the table is this: Can a homeowner-member withhold paying monthly dues when the HOA officials fail to perform their responsibilities in protecting the community, maintaining the facilities, and assuring the cleanliness of vacant lots?

    Based on the Magna Carta and its IRR, homeowner-members have no right to withhold or stop paying their monthly dues for any reason at all. If the homeowner-member has a complaint against the HOA Official then that should be addressed in a proper forum – like the Grievance Committee of the HOA or an administrative complaint filed at the DHSUD Regional Office.

    There is no provision in Rep. Act No. 9904 and IRR that legally permits or allows a homeowner-member to stop and withhold payment of monthly dues in response to the failings of the HOA Officers and their agents or representatives.

    Note that Section 23 of Pres. Decree No. 957 allows a buyer to stop or desist from paying installments for the reason that the developer to develop the condominium or subdivision project. This provision is quoted hereunder:

    “SECTION 23. Non-Forfeiture of Payments. – No installment payment made by a buyer in a subdivision or condominium project for the lot or unit he contracted to buy shall be forfeited in favor of the owner or developer when the buyer, after due notice to the owner or developer, desists from further payment due to the failure of the owner or developer to develop the subdivision or condominium project according to the approved plans and within the time limit for complying with the same. Such buyer may, at his option, be reimbursed the total amount paid including amortization interests but excluding delinquency interests, with interest thereon at the legal rate.”

    Now, this permission to withhold or desist installment payment “due to the failure of the owner or developer, desists from further payment due to the failure of the owner or developer to develop the subdivision or condominium project according to the approved plans and within the time limit for complying with the same” should strictly follow the requirements of due process.

    However, this permission is not present in the provisions of the Rep. Act No. 9904 and its IRR. Therefore, the conclusion here is the answer that is stated above. It is what it is. The homeowner-member has the duty to pay the monthly due every time it is time to pay it.

    Again, if the homeowner-member has a grievance with the HOA Officer not paying the monthly dues is the answer to the problem or grievance. Dura lex sed lex. The law is harsh but it is the law.

    Let us just hope that the HOA has a Grievance Committee already set up. If there is none then the Lupon ng Tagapamayapa of your barangay is the next best forum to bring your complaint.

    Best of luck to all the homeowner-member who are having difficulties with their HOA Officers/Officials or their representatives. I hope this helps with your situation.

    ——-

    Atty. Jojo is a real estate attorney, an estate planning attorney, a licensed real estate broker, and a PRC-accredited Lecturer/ Speaker for Training Programs in Real Estate. He is a Chartered Trust and Estate Planning (CTEP®) professional who is committed to educating Filipinos about the value and importance of having an estate plan in their lives.