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Tag: RA 9646

  • What is The Best Way to Set Up a Home Office For A Real Estate Broker?

    “Most people who work at home find they do not have the benefit of receptionists who serve as personal guards.”

    – Judith Martin, American Journalist, Author and Etiquette Authority

    This article was written last August 31, 2013. It was probably published on my WordPress site the next day or a few days after. The record of it was lost when I lost control of the domain name four years ago. But, I just found out that an updated version of this article was published on October 7, 2013, on the website ZipMatch.

    The title of the ZipMatch version of my article is “Working-from-Home Tips for Licensed Brokers.” I am so grateful that ZipMatch used and cited my article. It brings joy to my heart. Compared to other websites that claim my written articles as their own.

    Since this article is more than a decade old, then it is now time to update it as well while keeping in mind what the world has gone through with COVID-19. The updates will be in blue font.

    Photo by Ameruverse Digital Marketing Media on Pexels.com

    By Realttorney®

    Do real estate service practitioners (RESPs) in the Philippines need a physical office? Yes is the sad answer to the question.

    Section 33 of RA 9646 mandates licensed real estate brokers, appraisers, and consultants to “establish and maintain a principal place of business and such other branch offices as may be necessary, and shall conspicuously display therein the original and/or certified true copies of his/her certificate of registration as well as the certificates of registration of all real estate service practitioners employed in such office.”

    The legislators felt that requiring RESPs to have physical offices would give them credibility and make them look more professional vis-à-vis fly-by-night colorum brokers that are still operating despite the passage of the Real Estate Service Act (RESA) more than 14 years ago.

    However, the cost of maintaining an office is a drain on the meager resources of independent RESPs. Therefore, I would venture a guess and declare that most independent RESPs have home offices – where they can display their certificate of registration proudly as required by RESA.

    Having a home office is the best of both worlds for real estate brokers. First, you comply with what is required by RESA. Second, you do not have high overhead costs to maintain a home office.

    Third, you do not even have to dress up and commute to work. Lastly, you have the flexibility to work whatever time you want while balancing your business time with your family time.

    If this is the case, then it shouldn’t be really hard to establish a home office. Correct?

    Not exactly, because it is more than what it seems. Working from home is not as easy as people would like many to believe. Oftentimes, having the flexibility of time makes it harder to be productive and complete each day’s goals or tasks.

    I have experienced this when my daughter often interrupts my work by politely asking for something as mundane as “Papa, can I please have a glass of water?” She is four years young and although I am irritated sometimes, I still welcome such interruption. But, for others, such may not be the case, especially when there is a deadline to meet.

    At home, distractions abound as well. And it becomes easy to put off those particularly annoying tasks – like tracking and listing your daily expenses for tax purposes – until tomorrow.

    For veteran brokers and newbies (newly licensed real estate brokers) alike, here are five (5) tips to guide RESPs on getting the most out of working from home, four of which were taken from the article from Argonautnews.com.

    TIP 1: Make a schedule and stick to it. A good schedule covers what you absolutely need to accomplish while being realistic about the amount of time each week to grow your business and prospect for new business. Stick to your schedule. For instance, spend your mornings completing administrative paperwork, touching base with clients on current deals, and securing exclusive listing agreements. Then, spend the rest of the day prospecting – in the home office or out.

    Create a flexible schedule. This means planning for potential distractions, including personal phone calls, family members, pet noise, and televisions. However, this does not mean you are to put your personal life second. Some brokers find themselves on the clock all the time, as they’ve allowed the line to blur between work hours and non-work hours. Make sure to schedule time for family and friends outside of your established working hours. To have a life, plan it.

    Tip 2: Establish a routine. Sometimes, it is tempting to get out of bed and go straight to the laptop and begin working because you thought of numerous things upon waking up. Resist this urge. Instead, create a routine that prepares your physical and mental state to tackle the work for the day.

    As much as possible, wake up at the same time every day. Start off your day by meditating, exercising, or finding quiet time to reflect on your personal life. Shower, dress up, have breakfast, and take your child or children to school. Create a routine that takes into account the most important matters in your life. It all depends on what goals you want to accomplish this year and the year after. Afterward, it’s time to get down for some serious and uninterrupted work time.

    TIP 3. Make a space. Camping out and working on the couch is not likely to get you very far. Invest heavily in personalizing your office space. Stock it with the office equipment you need to get the job done. Do not try to conduct your entire business from your smartphone. You will need an actual computer (or laptop), printer-scanner-xerox machine – and of course a desk and comfortable chair. This is your workspace.

    As you’ll invariably spend many hours in your car each week, keep chargers for your mobile products – tablets and phones – in your car. Increasingly, real estate brokers carry laptops or tablets (and sometimes mobile printers) so they can type up and process transactions quickly. To keep all your work materials together, consider purchasing a car organizer. Most importantly, make sure that you have more than ample data connectivity for the day.

    TIP 4. Find support. Working from home can make anyone feel disconnected. However, the great thing about working from home in this day and age is that you are not alone. There are plenty of other workers – in real estate and other professions – who live nearby and deal with the same struggles unique to working from a home office. Organize midday breaks for walks, refreshments, and conversations about work and family. Where can you find these fellow home office workers? Start by asking around your own professional network. You can also reach out through the virtual social network to create a live one. Form a community by planning regular meetings with these solitary workers.

    TIP 5: Take advantage of the benefits. Working from home can save money by skipping expensive rent or desk fees for co-working arrangements, and time by eliminating your commute and office-chatter distractions. Further, tax deductions are allowed for some of the expenses and utilities used exclusively for your home office. Consult your certified public account on this matter.

    To summarize, licensed real estate brokers should have an office – whether a home office or a physical office with a separate address. However, a home office is often most advantageous to real estate brokers because we are still compliant with RESA, have minimal overhead costs, and have no commute time to work.

    To make a home office setup work, real estate brokers need to step up a schedule and stick to it, establish a routine, create a workspace at home, and take advantage of tax benefits. Just make sure that your office space at home will be conducive and inspire you to work smart.

    In the end, whether you work at home or not, real estate brokers are people person in general. Your people skills are the most important of all. No one likes a grumpy and hard-to-get-along broker. This is what makes or breaks the career of a licensed real estate broker, not their home office setup.

    Are there other tips that we have forgotten to mention above? Let us know by leaving your comments below.

    ——-

    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.

  • Mastering the Balancing Act: A Guide to Part-Time Real Estate Brokerage Success in the Philippines

    “The effort to work a small deal versus the bigger one is about the same. Focus your mindset on fewer, bigger, and better deals.”

    – Atty. Ernesto C. Perez II, CTEPTM Real Estate Attorney & Licensed Real Estate Broker

    By Realttorney®

    I was an attorney first then a licensed real estate broker second. In terms of the practice in real estate service, I am more well-versed in the documentation side of the real estate transaction. My wife, who is also a licensed real estate broker, is the one who has experienced closing real estate sales transactions.

    It is safe to say that my wife and I are part-time real estate brokers. Why? Because real estate brokerage is not our main source of income. Unlike the hundreds of licensed real estate brokers who actively practice the profession as their bread-and-butter income source. They are the backbone of this industry. Kudos to them.

    Photo by Thirdman on Pexels.com

    And, in the dynamic landscape of the Philippine real estate industry, the role of a licensed real estate broker is pivotal. However, many licensed professionals find themselves constrained by the commitments of a full-time job in another field.

    Balancing two professions is undeniably challenging but not insurmountable. This article aims to provide insightful pointers on how a licensed real estate broker can successfully work part-time in the Philippines, especially when juggling a full-time role in another profession.

    Before delving into strategies, it’s imperative to address the regulatory framework governing real estate brokerage in the Philippines. If one wishes to be a part-time real estate broker in the Philippines, he or she should have an unexpired license. Hence, if your license is expired, then you cannot legally practice your part-time profession.

    Even as a part-time real estate broker, adherence to ethical standards and regulatory compliance should never be compromised. Maintaining a deep understanding of the Real Estate Service Act (RESA) of 2009 and Resolution No. 39, Series of 2019 (Code of Ethics) ensures that brokers operate within legal parameters, thereby safeguarding their reputation and their level of professionalism.

    Here are 5 important insights that will guide a part-time real estate broker to be successful in his or her second or third chosen profession.

    Time Management and Prioritization

    Effective time management is the linchpin of part-time real estate brokerage if success is the goal. Given that you have a full-time commitment to another profession, delineating clear boundaries and allocating specific hours for real estate activities is essential.

    1. Set Clear Boundaries: Designate certain days or hours exclusively for real estate tasks. One or two days a week would be ideal. And, two to three hours a week could provide enough spark to keep your interest in this profession.

    2. Leverage Technology: Utilize scheduling tools (Google or Apple Calendar), and communication platforms to streamline and automate your processes. Create systems that will assist you in getting your tasks done at the least amount of time necessary. There are various productivity and note-taking web applications to help you plan and organize your activities under a single platform.

    3. Delegate When Necessary: Consider hiring or partnering with assistants for tasks that don’t require your direct involvement. If you have a personal assistant, who works with you on your full-time profession then it is best that you inform him or her of the “extra” work that he or she will perform for you as a licensed real estate broker. The best practice is if you close a transaction then your assistant gets rewarded for the valuable assistance extended to you.

    Niche Specialization

    One of the most effective strategies for part-time brokers is to specialize in a particular niche within the real estate market. The Professional Regulatory Board for Real Estate Service (PRBRES) has announced that they are encouraging all licensed real estate brokers to specialize in three major areas.

    First, is General Brokerage, Titling, and Documentation. Second, is Residential Project Selling. And lastly, Foreclosed Properties. Despite these three areas of specialization, there are still several niches that you can focus your attention on. These could range from residential properties in specific locations to commercial real estate or even niche markets like farm lot developments and agricultural real estate, industrial development projects, or memorial lot projects.

    Never be a jack of all trades and be a master of none. Pick a niche to specialize in. Specializing allows you to:

    1. Build Expertise: Deep dive into market trends, pricing strategies, and client preferences within your chosen niche. Your expertise will allow you to do fewer, better but bigger valued deals. Be the go-to broker in your chosen field of specialization.

    2. Network Efficiently: Focus your networking efforts on industry events, seminars, and groups relevant to your specialization. It makes sense to focus your time and energy on a particular segment of the real estate industry. If you focus enough time and effort on a particular segment then you will be recognized as a thought leader for that chosen segment of yours.

    3. Maximize ROI: With targeted marketing and a specialized client base, you can achieve higher returns on your time and investment. If you will not be able to focus 100% on real estate, then if you do work on a deal make it worth your while.

    Collaborative and Synergistic Partnerships

    Collaboration can be a game-changer for part-time real estate brokers. By forging strategic partnerships with full-time brokers or real estate agencies, you can tap into their resources, listings, and client base. Just make sure that the partnership you are entering into is synergistic for both parties involved. It must be the right fit.

    This can be done through the following:

    1. Referral Agreements: Establish referral agreements where you can refer clients to other brokers in exchange for a commission split or a referral fee. There is no hard-and-fast rule about this. Just make sure that when you request for a commission split then you will contribute more effort to the transaction than just merely referring a prospective buyer or seller outside your chosen niche.

    2. Team Up for Listings: Partner with other brokers to co-list properties, thereby expanding your reach without overextending yourself. We suggest that the real properties that will be co-listed belong to the category of your chosen niche but outside your area of operation. As a part-time real estate broker it is best to concentrate on a specific area of operation or concern like the CALABARZON area, or different regions in the Philippines.

    3. Shared Resources: Utilize shared office spaces, administrative support, and marketing resources to enhance your part-time operations. This is how you create leverage in your part-time profession. But be smart about this. Study sharing resources assiduously. If not, this can be a drain on your financial resources.

    Continuous Learning and Professional Development

    The real estate landscape is ever-evolving, influenced by economic factors, regulatory changes, and technological advancements. As a part-time real estate broker, investing in continuous learning is non-negotiable. Moreover, our Code of Ethics requires us to be life-long learners.

    As part-timers, you should commit to the following:

    1. Attend Seminars and Workshops: Stay abreast of industry trends, legal updates, and best practices by attending PRC-accredited continuing professional development (CPD) seminars.

    2. Engage in Online Courses: Leverage online platforms offering courses on real estate brokerage, property valuation, and market analysis, even though they are not accredited CPD seminars. There are a few experts in real estate who are not accredited by the PRC to teach real estate topics. But this should not stop you from enrolling in said courses to increase your knowledge base.

    3. Join Professional Organizations: Become a member of reputable real estate organizations like the Real Estate Brokers Association of the Philippines (REBAP) to access resources, networking opportunities, and mentorship programs of some chapters like the REBAP Metro Tagaytay Chapter.

    Marketing and Branding

    Finally, building a robust personal brand is crucial for part-time brokers to establish credibility and attract clients. But this matter goes hand in hand with effective time management and prioritization of activities.

    The part-time real estate broker must first and foremost have a simple marking plan to set clear goals on how to deploy various marketing strategies available with the help of the latest technology like ChatGPT. Effective marketing strategies include:

    1. Content Marketing: The part-time real estate broker can share insights, market analyses, and tips through his or her blogs, videos, or podcasts. Think about creating a YouTube channel even as a part-timer. This could be a potent avenue for engagement and establishing yourself as a niche player in your segment.

    2. Social Media Presence: Maintain an active presence on professional platforms like LinkedIn, Facebook, Instagram and/or TikTok. For starters, post once a week on all these social media applications. Then when you get a hang of things, you may want to increase the frequency of your posts from 2 to 5 posts three or four times a week. Finally, when your time allows it, you may want to create ads in each social media application to reach more potential clients within your niche.

    3. Client Testimonials: Showcase testimonials from satisfied clients to build trust and credibility. Even as a part-time real estate broker, this strategy will work because it gives social validation on what type of professional you are to work with and the level of service you provide.

    In conclusion, navigating the realm of part-time real estate brokerage in the Philippines necessitates a strategic approach encompassing time management skills, niche specialization, collaborative partnerships, continuous learning, and effective marketing. By implementing these pointers, licensed real estate brokers can not only successfully balance a part-time brokerage role with a full-time profession but also thrive in the competitive Philippine real estate landscape.

    Tell me, what is your full-time profession? And is this article a valuable resource for you in the upcoming year? Let us have a conversation.

    ——-

    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.

  • The Most Important Personal Quality A Licensed Real Estate Broker Needs To Be Successful in the Real Estate Service

    Integrity is doing the right thing, even when no one is watching.

    C.S. Lewis, British Writer & Literary Scholar

    By Realttorney®

    For those planning to take the Real Estate Broker’s Examination in April 2024, this will give you perspective on how you should act and what the future holds for you in a business that is based on the network and relationships you build at the beginning and all throughout your career.

    This is an offshoot of my lectures on the Code of Ethics for Real Estate Service Practitioners. I have always said that the real estate service profession is relationship-based. How people perceive you or the kind of reputation you build as you embark on your career will determine how long you will last.

    This article is written for those graduating with their degree in Bachelor of Science in Real Estate Management in 2024, as well as those newly accredited Real Estate Salespersons and newly licensed Real Estate Brokers.

    What then is the answer to the title of this article?

    The most critical personal quality for a successful real estate broker is unwavering integrity. In a profession built on trust, clients seek assurance that their interests are paramount.

    Integrity is the bedrock of ethical conduct, ensuring transparent transactions and fostering lasting relationships. A licensed real estate broker’s commitment to honesty and ethical practices not only safeguards the client’s interests but also enhances the reputation of the entire real estate industry.

    Integrity establishes credibility, allowing a broker to navigate challenges with trust and professionalism, ultimately defining success through a legacy of reliability and client satisfaction.

    The quote by Clive Staples Lewis underscores the importance of unwavering integrity in one’s actions, aligning with the ethical foundation essential for success in the real estate service sector. Additionally, it reflects the commitment to principled conduct, emphasizing that true integrity is demonstrated consistently, regardless of external scrutiny or financial gains.

    What is the next most important personal quality?

    In addition to unwavering integrity, effective communication stands out as a bonus quality crucial for success in real estate brokerage. Clear and timely communication is the linchpin of client relationships and successful transactions.

    A broker’s ability to articulate complex real estate concepts, market trends, and negotiation strategies instills confidence in clients. Moreover, active listening skills enable brokers to understand clients’ needs and preferences, fostering a more personalized and satisfactory experience.

    How can these qualities be demonstrated in what licensed real estate brokers do and the opportunities that come along with them?

    So, what do licensed real estate brokers do? Well, that answer can be found in Paragraph (4) (G), Section 3 of Republic Act No. 9646, otherwise known as the “Real Estate Service Act of the Philippines.” It states that a 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.

    Simply put, the real estate broker is the middle person between the two parties wanting to make a deal or consummate a real estate transaction. What transactions, you ask? It could be a sale, purchase, exchange, mortgage, lease or joint venture project, or similar transactions on real estate or any interest therein.

    What then are the opportunities for a newly licensed real estate broker? Easily, engaging in real estate brokerage is the most obvious one. A new real estate broker can apply with established real estate development companies to market existing projects all over the country.

    Or the newbie can set out on his/her own and be an independent real estate broker seeking out listings from sellers of real property. The newbie can do this for a couple of years until he/she is ready for the next step in his/her career in real estate.

    As they gain experience, the newbies are exposed to unethical behavior or other RESPs or are tempted to perform unethical actions by the sellers or buyers themselves. Under PRBRES Resolution No. 39, Series of 2019, working with unlicensed individuals is unethical. Likewise, sharing one’s compensation with a “colorum” practitioner is unethical. Therefore, the new real estate brokers must stand their ground and resist all attempts at performing unethical acts.

    When I deliver the lecture on the Code of Ethics to aspiring real estate salespersons, I always say to the attendees that I will not judge them for the acts that they did in violation of the Code of Ethics or Rep. Act No. 9646. But, I tell them that if they get caught they have to bear the consequences of their acts. Therefore, maintaining unwavering integrity is key to one’s career longevity.

    Meanwhile, not being able to properly communicate legal principles and the pros and cons of the real estate transaction at hand is a great disservice by the real estate brokers to their clients. It goes without saying that a good communicator is humble, honest, and straightforward. The real estate broker must call a spade a spade with or without embellishment. Enough of the “sales talk” and the B.S. to the clients.

    The passion one has for real estate and its vast earning opportunities must always be tempered by unwavering integrity and effective communication skills. Through a combination of integrity and adept communication, a real estate broker not only builds trust but also cultivates a reputation as a reliable and client-centric professional, essential for sustained success in the dynamic real estate industry in the Philippines.

    ——-

    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, and regulations, and information relevant to the real estate service sector.

  • 3 Crucial Steps to Creating Extra Time in a Day

    “Starting your day early gives you an immense advantage. It boosts your energy, puts you ahead of the rest of the pack, and allows you to be better organized so success will come more easily.”

    – Michael Masterson, creator of Early to Rise

    By Realttorney

    If you are at a loss on how to make 2024 your best year in real estate, you can read the article I wrote regarding this topic. The tips written there can be used and applied in all endeavors not just real estate.

    Since we all have the same 24 hours given to us, how we use our time determines whether the goals we set for ourselves are accomplished or not during the period we allocate.

    Way back in 2003, I subscribed to a newsletter from an author who wrote daily articles based on the motto of Benjamin Franklin: “Early to bed and early to rise, makes a man healthy, wealthy, and wise.” It was written by Michael Masterson (a pen name) and the website is Early to Rise (ETR).

    I read his articles and it fascinated me immensely. He became my unofficial mentor in the aspects of goal-setting, time management, and wealth-building.

    I subscribed to his newsletter and purchased his books. I also joined the 2007 Total Success Achievement Program of ETR. This article is inspired by one of the weekly Power Surge Messages that was emailed to the participants by Robert L. Cox, the Success Mentor of the said Program.

    What is the most common reason why goals are not accomplished? Lack of time. I am very familiar with this and have used this reason as an excuse to explain why my goals have not been achieved year after year.

    How can you overcome this great obstacle of “lack of time” and achieve more this 2024? By creating time. But, this is not to say that we will be having a 25-hour or 26-hour day. That is quite impossible.

    Robert Cox said, “Successful people know how to ‘create time’ by using their time better than the majority of the population.” Therefore, if you want to be successful you should be able to know how to create time.

    But, there have been other articles written about the topic of finding more time in a day. One of these is written by my then unofficial mentor Leo Babauta – the creator of Zen Habit.

    What are the 3 crucial steps to creating extra time in a day?

    First, get up an hour earlier each morning. According to Michael Masterson, “The extra time gives you a tremendous advantage over everyone and everything you compete against.” This resonates with me because I am a morning person. I cherish the quiet time each morning while my wife and children are still fast asleep.

    I don’t waste this golden hour. I perform my morning routine. I meditate, pray, read my vision and mission statements, review my plan for the day as well as revisit my weekly and monthly goals.

    Leo Babauta wrote the “10 Benefits of Rising Early, and How to Do It” way back in May 2007. I fully subscribe to the 10 benefits that he listed. It is a great article because Leo also gave 8 tips on how to become an early riser.

    For this year, I want to establish the habit of writing for 60 minutes for the books, blog articles, and scripts for the videos within this golden hour. I think this is the missing link that will elevate the execution of my monthly plans and accomplish my goals efficiently.

    Second, become better organized. By waking up early in the morning, I can review my weekly and monthly goals and recalibrate them based on the progress or setbacks that I have encountered daily. Why? Because life happens. That’s why?

    As you get better organized, you become more efficient with the use of your time. Tasks that take an hour to do, may be accomplished in just half the time. In effect, you gain an “extra” 30 minutes to use for the completion of other tasks or goals.

    Third, determine your definiteness of purpose in life. The phrase “definiteness of purpose” was coined by Napoleon Hill in his book “Think and Grow Rich.”

    Mr. Hill said that definiteness of purpose is the starting point of all achievement, and its lack is the stumbling block for ninety-eight out of every hundred people simply because they never really define their goals and start toward them.[1]

    “Definiteness of purpose develops self-reliance, personal initiative, imagination, enthusiasm, self-discipline, and concerted efforts. All these are required for success… Once you have determined your definite major purpose, you will begin to budget your time, your money, and all your day-to-day endeavors so that they will lead to the attainment of your major purpose. Time budgeting always pays dividends because each moment is made to progress toward your goal…”[2]

    Knowing your definite major purpose focuses all your efforts toward the achievement of that purpose. Therefore, it is easier to give up binge-watching various Netflix series, or mindless surfing the internet.

    If you are a news junky like me, it will be easier to stop reading the newspaper and watching the news on TV if you have identified your definite major purpose.

    All the time that you gain from giving up watching Netflix, YouTube, and surfing the internet can be redirected towards achieving your goals. And that is one of the major advantages of having a definiteness of purpose.

    These 3 crucial steps can be individual topics that can be discussed lengthily in an essay. But, it is important to know and implement these 3 steps to have more time on your hands in the pursuit of your goals.

    Following them will guarantee your success in all aspects of your life. Try them out, you have nothing to lose.

    [1]“Napoleon Hill’s Keys to Success: The 17 Principles of Personal Achievement,” Edited by Matthew Sartwell, New York, Plume, October 1997, page 1.

    [2]Ibid., pages 3-4.

    ——-

    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.

  • REMINDERS AS 2022 ROLLS IN

    “By the taxes he pays, a citizen has every right to demand for a good and honest government.”

    – Franklin D. Roosevelt

    By Realttorney

    Portions of the contents of this article were first published 4 days before its 10th year anniversary – January 12, 2012. It is updated to share the same message to all new and old real estate service practitioners (RESPs) – salespersons, brokers, appraisers, government assessors and consultants of their obligations as professionals.

    I wish all licensed RESPs a prosperous and abundant 2022. If we are to believe the “experts” and analysts the real estate industry looks brighter for this year due to the continued vaccination program of government, as the Philippine economy slowly rises up from the pandemic-induced negative growth in 2020.

    The boom in the demand for luxury and mid-income residential projects, both in the vertical and horizontal project, means more opportunities for RESPs earn more income in 2022. So, how do we prepare for a better and prosperous 2022?

    As the New Year is upon us already, I wish to outline some reminders that need to be performed by all old and new licensed RESPs pursuant 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.”

    Therefore, all licensed RESPs should get a PTR. It cost around P300.00 and you can get this at your 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 of the.

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

    It should be noted that the Privilege Tax Receipt mentioned in the IRR is the same as the Professional Tax Receipt mentioned in the Local Government Code. For real estate salespersons, if the PTR is unavailable in your LGU please ask for the Occupational Tax Receipt (OTR).

    Second, if you are already registered with the Bureau of Internal Revenue (BIR) then you should pay your annual registration fee of P500.00 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.

    Now, if you are still not registered with the BIR then you must do so in order to be compliant with the National Internal Revenue Code of 1998, as amended. It is also our obligation to follow the laws of the Philippines as mandated by the Code of Ethics and Responsibilities promulgated in PRBRES Resolution No. 39, Series of 2019. Hence, BIR registration is a must for all licensed RESPs.

    I will quickly outline below, the steps to register with BIR as a self-employed individual (professional):

    STEP 1: Secure and fill up BIR Form 1901 – Application for Registration for Self-Employed and Mixed Income Individuals, Estates/Trusts.

    STEP 2: Submit the same with the following documentary requirements to the RDO having jurisdiction over the place where you hold office – it could be a home office or a commercial office space.

    Documentary Requirements:

    1. Birth certificate (Original and photocopy);
    2. Marriage certificate (Original and photocopy); and
    3. Birth certificate of children (Original and photocopy);

    Other documents for submission, if requested:

    1. Mayor’s Permit (Original and photocopy);
    2. Contract of Lease (if renting);
    3. Title/Tax Declaration & SPA/Affidavit of Consent if the location is not owned by applicant (if not renting); and
    4. Sketch of location.

    STEP 3: Pay the Annual Registration Fee (P500.00) at the Authorized Agent Banks of the concerned RDO.

    STEP 4: Pay Documentary Stamp Tax (DST) [loose DST / BIR Form 2000 for DST on Contract of Lease, etc.). Present proofs of payment upon submission of the documentary requirements.

    STEP 5: Submit requirements for Authority to Print (ATP) and registration of books of accounts.

    Documentary Requirements:

    1. Accomplished BIR Form 1906;
    2. Job order from the printer;
    3. Final and clear sample of receipt and invoices (machine printed);
    4. Photocopy of Taxpayer Identification Number Card; and
    5. Photocopy of BIR Form 0605 (payment of registration fee).

    Book of Accounts:

    1. Cash Receipts;
    2. Cash Disbursement;
    3. Ledger;
    4. Journal;
    5. Subsidiary Sales Journal; and
    6. Subsidiary Purchase Journal [last 2 are additional books for VAT Taxpayer].

    STEP 6: Attend the taxpayer’s initial briefing to be conducted by the RDO concerned for new registrants in order to apprise them of their rights and duties/responsibilities as taxpayers.

    STEP 7: Wait for the RDO to issue the Certificate of Registration (BIR Form 2303) together with the “Ask for Receipt” notice, Authority to Print and Books of Accounts.

    For a more comprehensive discussion on the steps enumerated above including the related revenue issuances promulgated by the BIR and codal references in the National Internal Revenue Code can be found in the BIR website (www.bir.gov.ph).

    A final reminder to all new salespersons and brokers reading this article. The tax code states that “all individuals engaged in trade or business shall accomplish and file the application on or before the commencement of business operation or from the day the first (1st) transaction occurred or within thirty (30) days from the application with the LGU for issuance of Mayor’s Permit/Professional Tax Receipt (PTR), which ever comes earlier.”

    I encourage newly accredited salespersons and newly licensed real estate brokers to register with the BIR. Furthermore, the Code of Ethics and Responsibility mandates all RESP to register with the BIR. In 2005, Atty. Alexander L. Lacson published his book “12 Little Things Every Filipino Can Do To Help Our Country.” You can buy a copy of his book at his website at www.alexlacson.net.

    “PAY YOUR TAXES” is the 10th Little Thing he listed. I quote some portions of what he wrote in pages 75 – 80, which resonates the same message today as if it was written 17 years ago:

    “Of the many duties of a citizen under our Constitution, paying taxes is one of the most crucial. Because taxes are the lifeblood of our government, of our nation.

    “It is what we use to buy the basic textbooks for our millions of children in the country, or to build additional classrooms in public schools nationwide…

    “Taxes are what we use to buy the most basic of medicines, often generic and cheap, that our Department of Health officials distribute to 34 million Filipinos nationwide who live below the poverty line.

    “It is what we use to pay all our government employees nationwide – our soldiers, our policemen, our public school teachers, among many others.

    x     x     x

    “Viewed in this light, the taxes that you and I pay are actually not lost or wasted completely. A substantial portion of the taxes we pay is still put to good use. Because there are many public servants – not only a few or some – who still do their jobs properly. There are many of them, these honest and faithful ones, but maybe many of them are just in the rank and file, like you and me.

    “But they are there. Among the silent many who hold the center and keep our government from falling apart. They are the ones who keep our public institutions intact through storms and scandals, notwithstanding the misguided ambitions and corruption of some of their leaders.

    “It is for this reason that we should continue paying our taxes. The good ones in the government are still good reason for us to continue paying our taxes properly. The challenge for us is just how to increase the number of these good ones in government.

    x     x     x

    “In 2003, P83 Billion was collected from individual income taxes. But 91% of this amount came from salaried workers from the government and private sector, people who have no choice since their income taxes are withheld mandatorily. Only P7 Billion of P83 Billion (or 9%) came from businessmen and professionals like doctors, lawyers, accountants, architects, and dentists, among others.

    x     x     x

    “Can you imagine if our businessmen and professionals pay more income taxes? Or if our government is able to collect 21% this year instead of the 14.1% last year, because we all decided to pay 50% more of taxes this year? This means that our government will have more funds to perform its duties and obligations to the public.

    x     x     x

    “But we have to pay our taxes properly. Because we all live in the same country. Because this government, whether we like it or not, is our government. Its cost is a burden we must all share. The task of building this nation is a task that we all must share. We all must contribute to build this kind of nation we dream for ourselves. Each one of us has a role in it. Each one of us has a responsibility to it.”

    Third, and final reminder, concerns real estate salespersons and 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), pursuant to existing rules and regulations.

    Similar to 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 you 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) photocopy of your PRC ID Card, Certificate of Registration from PRC; (2) previous year’s Official Receipt; (3) recent 2 X 2 ID picture; and (4) surety/cash bond. If you are lucky to have been issued an ID Card by DHSUD then a copy of it can also be submitted. The registration fee is P720.00 if renewed prior to expiration.

    Meanwhile, for newly accredited salespersons or those wanting to renew, you need to submit the following: (1) duly accomplished application form – which can be downloaded from the DHSUD website; (2) recent 2 X 2 ID picture; (3) copy of the PRC-issued accreditation card, or PRC-issued O.R. or the claim stub; (4) cash/surety bond; and (5) the Letter of Engagement/Employer for the 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 P288.00 if renewed prior to expiration.

    I hope this is useful to you all as we welcome 2022. Happy New Year once again.