What's The Plan?

A couple of months ago, prior to when I stumbled onto the works of Mike Brooks, Brian Tracy and Tom Hopkins, I had a vague image in my mind of what I wanted: a house of my own, a new vehicle, and to get married to my fiancee Me-an.  As far as I know, those were my goals. 

The problem was, I didn't know how to make them come true.  I was trying to hit those targets in the dark.  Sure I passed the licensing exam for real estate brokers, but that didn't really get me any closer to making my goals come true.  My only thought was: if I sell enough, I'll have enough money to hit those goals.  So a couple of weeks ago, a thought hit me back: how am I going to sell enough to make enough money to hit those goals???  Yeah, I know, sometimes my mind is slow to the point of stupidity, but I'm glad I finally came around to the question.  Result: I started looking around online for instructional materials on sales, motivation, and goal-setting.  Hence, the 3 aforementioned gentlemen. 

Listening to their works was like magic!  My mind started to open up to the reality of selling, and how difficult it really is.  I always had this impression that selling was straightforward: if there was a need, just offer the product that answers the need and voila!  Boy was I surprised!  There were steps necessary like prospecting, qualifying, presenting, then finally closing the sale.  There is etiquette involved, tactics and strategies, and mind-altering mental instructions and affirmations!  There's bits and pieces about family, health, friendship, teamwork, and so much more.  More than that, the goal-setting instruction that I got specifically from Brian Tracy has got me moving.  Now, I have real goals, and action plans and steps that I must take to make them happen.

So, what's the plan?

Find out what you want to do, make plans and steps to achieve that, and pay the price willingly.  In other words, keep studying to arm your mind with new ideas and ways, and keep keeping on and never give up.

So, what's changed?

Good question.  At the very least, I've started to learn Tai Chi.  I've started an abs workout to trim my waistline.  And I've set a 200 meters target for my weekly swimming activity.  For my financial health, I have made plans to learn investing in mutual funds and stocks, as well as joint ventures, and buying and selling properties.  I have to fine-tune the action steps, but I now have a light leading to my goals, and that's the best gift I'll ever get this Christmas, maybe for the rest of my life even. 

My goals:
"I earn at least Php100,000 a month by March 2012."
"I own a 3-bedroom townhouse in San Juan by January 2013."
"I own and drive a Mitsubishi ASX by April 2012."
"I marry Me-an by December 2012."
"I enjoy traveling abroad and going to beaches with Me-an by January 2013."
"I own and use a Motorola Xoom by March 2012."
"I am strong and healthy by February 2012."
"I secure an educational plan for Kyle by April 2012."

When The Torii Residences starts selling, you better believe my life's gonna start moving very quickly towards those goals!  I can't wait!!!  Everyday, I'm gonna look at my goals and visualize my house, my car, my wedding, my tablet, my strong and lean body, and my kid's educational plan.  Those things will happen, as sure as the sun rises everyday!  I'm gonna keep keeping on until I can write new goals towards bigger and better things!  Hmmm... Maybe I should upgrade to a 4-bedroom townhouse?

Upgrade your life!!!
Jon

Bank Financing: Understand the Appraisal

I'll make this a short post, just to clarify some things about the bank financing appraisal process.  Mostly for my benefit really, so I don't forget haha!

So, let's say you want to buy a townhouse unit from a seller.  The seller agrees to 20% downpayment and bank financing, because really, it's the same banana, and the seller will get paid anyway.  The question is, what do you do to get bank financing?  Well, first of all, go to a bank and ask them for their requirements for the appraisal.  That would usually be a certified copy of the TCT (or CCT if condominiums), etc.  You will also have to pay for the appraisal fee (typically 3 - 3.5K within Metro Manila).  After a week or two, the bank will then let you know how much the property is worth according to their appraisal (fair market value) and up to what percentage they're willing to finance it.  Typically, banks will finance up to a maximum of 70% of the appraised value.

Now here's the tricky part:  the appraised value vs. the selling price.

Don't expect the appraisal value to match the selling price.  In most cases, the appraisal value will be less than the selling price.  So going back to our example, if the seller was selling the property at 5M, and he agrees to a 20% downpayment, but the bank only appraised the property at 4M and will only finance 70%, that means you have to shoulder the difference and that will be your downpayment amount.  To illustrate:

20% of 5M = 1M -> this was supposed to be your downpayment (equity)
70% of 4M = 2.8M -> this is what the bank will finance (loan)
5M - 2.8M = 2.2M -> this is what you will actually have to pay as downpayment (equity)

The reason why developers are able to offer bank financing that is equal in appraised value and selling price is because their properties were pre-appraised by their partner banks already.  That's why they will let you know what banks are affiliated with them.  So unless you can get a better (or same) bank appraisal elsewhere, you should seriously consider the affiliated banks of the developer.  But if you're buying a resale unit such as our example, your best bet would be to ask the seller for a discount or price cut, to lessen your equity contribution aka downpayment. 

Oh, and yeah, the most important factor to get bank financing:  your financial status.

How do banks determine how much you can afford?  They'll look at how much you're making in a month, and will lend you an amount that you can pay off with 30% of your net income, subject to how long the loan will be.  If the property you're loaning for is not within that margin, then you don't get the loan.  Simple eh? Hehe.

Did I say this was going to be a short post?  Ooops.

Don't put your eggs in one basket,
Jon

The Secret to Increasing Sales Productivity

You might be wondering why I'm writing about Sales per se.  Well, so am I.  That may not instill a lot of confidence in my article but actually, I've been listening to some sales materials  on CD as well as watching youtube videos about the grand art of selling, all to widen my understanding of one of the most basic and oldest of transactions: Sales.  So I find myself wanting to share the lessons I've learned so far.

It's important to note that all of us are sellers as well as buyers at one time or another.  So when selling, it's important not to lose sight of that fact.  In Sales, the real secret to increasing productivity is asking the right questions (probing) and listening for the real answer.  

And overcoming objections.

And improving your closing technique.

And having a great team. 


The truth is, all of those are true.  However, if you absolutely suck at asking questions, and you don't care enough to listen for the answers, you'll just be going around in circles trying to overcome objections, aside from wasting time and effort trying to close people who won't buy from you anyway.  That's why I believe that asking the right questions and listening for the real answers is the precursor.  When you ask the right questions and you listen to answers, you will find out what your client's reason(s) is/are.  You will find out the why's and why not's, as well as a lot of other things.

The not-so-secret secret: QUALIFYING YOUR CLIENTS.

Qualifying.  First time I heard that, I knew what it meant, but I didn't know how and what to do in the context of Sales.  In other words, qualifying your clients means finding out if they actually have the intention to buy whatever it is you're selling.  To qualify a lead you need to do a couple of things:

1. Find out their motivation.  Ask them why they're inquiring about your product or service, find out if they have a definite and specific timetable.  Anything other than a straight answer might mean that person is just curious and not really looking to buy.  They might even be asking for a friend or family member, so make sure you ask to be referred instead.  This is important to avoid the "I'm not interested" and "I'm not ready to buy yet" as well as other price objections.
   
2. Ask who are the decision-makers, who else is/are involved in the decision-making process.  Try your best to involve all of them when discussing or presenting your product or service to minimize the "I have to ask (whomever)" scenarios.  If in case you do get the "I have to ask (whomever)" scenario, try to see if you can speak with whomever it is they have to consult.  If they refuse or won't let you speak with that person, it's possible this is not the real objection and you may have to probe deeper.
   
3. Competition.  Find out who they've spoken with, what other product(s) they like or are considering.  Let's face it, we can't always win against the competition.  That's why you need to know if it's a battle you can win.  Find out what's important to your clients, and see if it's something you have or can offer, then play it up for maximum effect.  Please, don't resort to mudslinging to destroy your competition, that's just wrong.
   
4. Price, price, price.  Here's the reality of Sales: Price is King.  Check if your client has a realistic budget, find out what payment options or terms you can offer.  See how much leeway you have in terms of pegging a price on a product or service, how much of a discount or rebate you can bargain with to close the deal.  Dare I say it?  Be blunt if you have to.  Better find out if your client can afford it or not, and if he knows what he's getting himself into.  If you find out that your client can afford your product or service yet a price objection comes up later on when you ask for the deal, it's not the money that's the problem; it's a VALUE issue, you'll need to prove your and your product's value.
   

As you can see, qualifying properly will save you a lot of time, effort and money.  You won't be wasting your time trying to follow-up with unqualified non-buyers.  In the short term, you'll have less clients, but in the long term, you'll gain the few real clients who are ready and willing to buy.

I won't go into overcoming objections, closing techniques and teamwork, but suffice it to say that asking the right questions and listening for answers is the fundamental skill one needs to learn to be effective in Sales.  Don't be afraid to ask the questions that need to be asked, there's no other way unless you're psychic.




Ask and you shall receive,
Jon

The Torii Residences is a TOWNHOUSE - CONDO. What does that mean?

Ok, so I'm writing this to make sure people know that The Torii Residences is a townhouse - condominium project.  Sure, it looks like a townhouse, designed as a townhouse, and for all intents and purposes, it IS a townhouse.  At least as far as the type of housing, it is.  But as to type of ownership, it's a condominium.  THAT'S NOT A BAD THING!  I'll explain at the end of this post.  I just need to make sure that it is understood that a condominium is both a type of housing AND a type of ownership.

In other words, The Torii Residences is a "townhouse" type of housing, but it's a "condo" type of ownership.

Huh?  What does that mean, exactly?

It should be made clear that the type of ownership in a townhouse is the same as owning a house, in that if you own a townhouse, you own both the structure as well as the land it's built on.  The condo type of ownership means that the condo owner owns the unit itself (not including the land the unit is built on), which is taxed as an individual entity, as well as a percentage of the common areas of the whole project.

As an owner of a unit in The Torii Residences, your percent of ownership is calculated as your unit's total floor area over the total floor area of all the units combined.  You will see the percentage for each unit in The Torii Residences when you request for the price list.

Again, what does that mean???

It means that, among other things, being a Torii Residences owner means that you will pay annually for your unit's real estate property tax, plus you will also pay a portion of the common areas' real estate property tax based on that percentage.  Additionally, your condo dues will also be computed based on that percentage.

Hmm... Maybe an example would be easier to understand?

Here's an example to make it easier to digest.  Please bear in mind that peso amounts are just examples:

You bought a unit at The Torii Residences, with a floor area of 281.06 sq.m.  The overall floor area of the whole project is 10,648.98 sq.m.  Therefore, your percentage of ownership of The Torii Residences is 281.06 over 10,648.98 which is roughly equal to 2.64%.

So, let's say for example that annually, your unit's real estate tax is P10,000.  Of course, the common areas will also be charged a real estate tax.  Let's say for example that the common areas' tax is P50,000.  Therefore, 2.64% x 50,000 is P1,320.  In other words, you will pay a total of P11,320 annually for real estate tax.

I see...  What about the monthly homeowner's fee or condo dues?

Let's use another example for the homeowners' fees or condo dues in this case.

If the total condo dues assessed is P100,000, since your percent of ownership is 2.64%, your monthly dues will be 100,000 x 2.64%, which is P2,640.  Condo dues are for the maintenance of the common areas*, as well as funds for the condo corporation, and other expenses as the condo corporation may deem necessary.

The Torii Residences has a jogging path, clubhouse, and a swimming pool.  These are just some of the common areas that have to be maintained for your exclusive use and enjoyment.

Lastly, it needs to be emphasized that the percentage of ownership does not affect the weight of your vote in the condo corporation.  Except in cases where Republic Act 4726 (condominium act), as amended, requires the vote of owners owning a specific interest in the common areas as a condition precedent for the approval of certain corporate acts, each owner of a residential unit in The Torii Residences automatically becomes a member of the condo corporation and shall have only one (1) vote. 

*All condo owners share title to common areas. Common areas include land, the exterior of buildings, hallways, roofs, swimming pools -- any area used by multiple owners.

What about ownership itself?

Now we go into the main difference between types of ownership: house/townhouse vs. condo.

As I mentioned, the house/townhouse type of ownership means that you own the structure as well as the land it's built on.  For this type of ownership, you have a TCT, or a Torrens Certificate of Title.  The TCT is proof that you own the land and everything else on that piece of land.  The land is the one titled by the TCT, not the house or structure.

In a condo type of ownership, since you own the unit and a certain portion of the common areas, you get a CCT, or a Condominium Certificate of Title.  This title is for the unit and/or common areas, not the land that the condominium is built on.

Another advantage to the condominium-type of ownership is that foreigners are allowed to purchase a unit, as long as the total percentage of foreign-ownership in the whole project does not exceed 40%, since a condominium project is treated as a corporation.

So, who owns the land?  Where is the TCT for the land in a condominium type of ownership?

Well, as far as The Torii Residences is concerned, the land will be turned over to the condominium corporation upon turn-over of the project.  In other words, the TCT of the land will be in the name of the condo corporation.  So as an owner of a unit in The Torii Residences, you will be a part of the condo corporation that owns the land.  It will NOT reflect in the TCT that you're a co-owner, but as a holder of a CCT, your percent of ownership guarantees your co-ownership.

I co-own The Torii Residences???

Yes, exactly!  Let's say you buy a 78 sq.m. unit.  Since The Torii Residences is a condo type of ownership, you don't get a TCT for the 78 sq.m.  However, since this project is ultra low density, there will only be 37 co-owners of the whole 4,560 sq.m.  In other words, if your percent of ownership is 2.64% according to our earlier example, your share is actually worth 120.38 sq.m. (4,560 x 2.64%) of the whole land!  Of course, you can't sell it separately from the whole, but your share is actually worth more than just 78 sq.m.!  This is the secret of the true value of The Torii Residences: SPACE.

In other condo projects where there are literally hundreds of unit owners for a certain size of land, each unit owner actually co-owns a smaller percent of the actual property, aside from literally owning a small unit!  Here's another example: 200 unit owners in a condo building on a 4,560 sq.m. property.  Each unit is 50 sq.m..  That means every unit owner's percent of ownership is just 0.5%.  Then that also means that each unit owner actually co-owns just 22.8 sq.m. of the land, even less than the actual floor area!  This brings us to another advantage of The Torii Residences - it's a townhouse type of housing, not a condo type of housing.  That's why you have more floor area, because it's designed as a townhouse.

Consider what you get: You get a prestigious address in San Juan, with amenities like a swimming pool, a clubhouse and a jogging path; 4 or 5 bedrooms with its own closet, and toilet & bath; the best materials, workmanship and design; an exclusive enclave for you and your family; more value for the size of land your unit is built on, and the space and convenience of townhouse living!

So, no need to worry.  Just because you don't get a TCT it doesn't mean that you are not an owner of the property.  You are a co-owner of the whole project, you co-own The Torii Residences!

That's definitely a VERY good thing.

Wait...  In a condo-type of ownership, every unit owner owns the land the whole project is built on.  That means I can't do whatever I want to do with my portion of the land?

Since every unit owner is a co-owner of the whole land, decisions about the common areas and the land itself are made corporation style, by majority vote.  If you think about it, in townhouse compounds as well as subdivisions nowadays, there exists a master deed that every owner has to follow.  In other words, even if you own the lot your house or townhouse is built on, it still doesn't mean you can do whatever you want.  Let's say you don't want The Torii Residences because it's a townhouse-condo, and you want a regular townhouse where you get a TCT and the lot is yours, you will find that there is a master deed that mandates what you can and can not do, sometimes even down to the color of your roof!  Do you think your neighbors in the other townhouse units will agree if you suddenly want to tear down your townhouse and build a different one?  Nope.  In other words, it's just the same as what you'll get with The Torii Residences, it's the wave of the future!

But...  What if another unit owner or owners fail to pay their property taxes, won't that mean the whole project might be in danger of being foreclosed by the government?

If that were true, don't you think there would be a lot more of condominiums being foreclosed now?  Since condominium ownership is treated as a separate unit, each unit is taxed individually.  So if a unit owner becomes delinquent, only his unit is in danger of foreclosure (Republic Act 4726, Section 25).  As to the common areas, it is the duty of the condo corporation to pay for the property taxes of those.  Guess who the condo corporation is?  That's right, all of you.  Just like in any good neighborhood, everybody has to help out, it's that simple!

Check out the model unit when it's ready, maybe you'll never want to leave.


Own a unit now at The Torii Residences!
Jon

Moving On With The Torii Residences

Alrighty, flyering activity last October 5 - check!  Time to plan for next activities.  More flyering?  You betcha!  But aside from that, since the model unit is nearing completion (it's part of Cluster D, specifically D-13), I expect to see more activity at the site itself.  Definitely, once people see the model unit, they'll be blown away by how excellent and truly beautiful the project is.  I know, I'm too excited!  In line with that, gotta start looking forward to holding open houses, too.  Yup, I'm starting my online education as I type this blog entry.  I'm reading up on articles, watching videos, looking at other possibilities that I may have overlooked before.  Hopefully, I'll be ready when the time comes, and that time is approaching rapidly!

This is a short entry, just something to announce what I'm up to now.  Once the model unit is ready for viewing, I can start inviting those people who have contacted me before asking about The Torii Residences.  And by that time, I'll have something more concrete to show off hehehe.  I can't wait!!!

By the way, if you have any great ideas about how to hold an open house, and you're willing to share, please be my guest!  Any kind of help is welcome, just like a kind heart and a warm smile :)

See you then,
Jon

Arrghhh! The Rainy Season Is Raining On My Parade!

It's the rainy season, the last quarter of the year, storms & typhoons abound.  I shouldn't even be surprised anymore.  After all, I've been living here forever!  Still, all this rain is driving me up the wall, especially since I have already paid for the day to do my flyering activity for The Torii Residences.  It was supposed to have been last Sept. 28, but since Metro Manila was under Storm Signal #2 on the day prior, it was normal to expect that my activity would be cancelled.  Good thing I was able to have it moved to tomorrow, Oct. 5.  Well, what do you know, there's another forecast: a storm is a-brewing, and is expected to dump more rains tomorrow.  Ugh, I can't stand this.  On top of everything, I'm having respiratory issues, too.  Which means to say, I haven't been able to put in some much needed physical activity (read: swimming), and it's bringing my morale down to dangerously low levels.  Talk about your downer.

Ah well, still, hope springs eternal, and I'm not anything if not an optimist.  Maybe tomorrow we'll see a bright sunny day, enough to do flyering for 2-3 hours, which will be enough, really.  Just 3 hours of sunshine from 2-5pm tomorrow, and I'll be a happy camper.  Everyday, I hope that next person who calls or sends me SMS would be my first buyer for The Torii Residences.  Heck, if I had money, I'd probably be jonesing for one unit myself.

In any case, tomorrow...  We'll see how tomorrow goes!  The opportunity to let people know how great The Torii Residences is will be enough to sustain my goodwill.  I'm sure it'll be alright.  In case it rains though, I'll just move it to next week again hehe.

Tomorrow, tomorrow, I love you, tomorrow!
Jon 

The Torii Residences: Flyering Activity #2

It's been awhile since the last flyering activity.  That's because the last time, we were flagged down and the flyers were confiscated.  Apparently, you need a permit if you want to do flyering activities.  To apply for a permit, you have to write a letter of intent specifying the streets and days you'll hold the activity.  For me, I specified the Immaculate Concepcion Academy (ICA), Xavier School, and Annapolis street, on the 21st and 28th of September, to do my flyering activities.  Total cost was P1,500 or P750 a day.  Yesterday was Sept. 21, so I got my two flyering girls, Angeline and Jobelle, along with my dad's driver, Barok, and off we went to Annapolis street in San Juan to hand out The Torii Residences' flyers.

Barok beside the guard at O.B.

Barok the moonlighter

We parked near the O.B. Montessori school, which incidentally was my first target to do the deed at.  We got there at 10:40a.m., and made plans to meet up around 11:30a.m. to wrap up and have lunch before proceeding to ICA and Xavier.  There really weren't a lot of people to hand out flyers to, as most people there were maids and/or drivers.  Still, there was the odd mom or dad in the crowd so it wasn't a total waste of time.  However, I don't think it's worth the effort to go back there next time, as there just wasn't enough of the target crowd to hand the flyers out to.  After a delicious lunch at Mang Inasal where I gave the owners a flyer too, we headed to Ash Creek to park and plan a little.  The guards there are paranoid, or too earnest, or both.  While just sitting down with flyers in hand, they thought we were there to hand out flyers and said it wasn't allowed.  I had to gently remind them that we were just sitting there and not doing our activity.  Good thing they knew well enough to back off.

Angeline at Xavier

Jobelle at ICA

Long story short, Angeline handed out flyers at Xavier, and Jobelle did her thing at ICA, while Barok straddled the middle.  I told them to choose who to hand out the flyers to: the parents.  Still, it looks like they handed out flyers even to maids and drivers, too.  Well, I don't think it's that bad, since some househelp have some clout with their bosses, and in the Philippines, they're considered family, anyway.  Lots of flyers were handed out, we didn't get accosted by the guy in the green uniform, unlike before, and somebody already called me today to ask about The Torii Residences.  So, it was a good day!  See you again on the 28th of September!

Good job, Angeline!

Fly-er me to the moon,

Jon "The Broke-r"
PRC License No. 0004326

Update: PRC Accreditation For Real Estate Salespersons

As promised, I'm back with the update on how to be accredited as a real estate salesperson with the Professional Regulation Commission (PRC).  This is known as PRB-RES (Professional Regulatory Board - Real Estate Service) Resolution No. 13, amendment to Section 31 of the RESA Law IRR (Implementing Rules and Regulations).  The major change is the deadline: from July 30, 2011 to December 31, 2011.  This deadline only applies to those who have been salespersons for 3 years or more AND are not at least 2nd year college level.  There is no deadline for those who want to be salespersons AND are at least 2nd year college level.  Without further ado...

The applicant shall follow these steps:

1. Submit the filled-up or accomplished application with supporting documents for pre-evaluation to the Office of the Secretary, PRBs or of the Assistant Secretary, PRBs (3rd floor, Main Bldg) at the PRC Central Office, or Regional Offices processing counters.
2. Proceed to the cashier for payment of fees - P600.00 (Ground floor, Main Bldg.)
3. Proceed to the Customer Service Center for metered documentary stamp (same)
4. Submit duly accomplished application form to the Office of the Assistant Secretary, PRBs (3rd floor)
5. Verify the status of your application at the PRC website: www.prc.gov.ph

Supporting documents for NEW or existing real estate salesperson with no DTI/HLURB registration:

• Original and photocopy of NSO birth certificate / Certificate of Live Birth
• Original and photocopy of NSO marriage certificate (for married females only)
• Original and notarized Certificate of Educational Attainment on the completion of at least two (2) years of college
• Original NBI clearance (valid for the current year)
• Original and notarized Certification of twelve (12) credit units on Real Estate Brokerage (12 CPE units)

Supporting documents for existing real estate salesperson with DTI/HLURB registration:

• Original and photocopy of NSO birth certificate / Certificate of Live Birth
• Original and photocopy of NSO marriage certificate (for married females only)
• Original and notarized Certificate of Educational Attainment (at least High School diploma)
• Original NBI clearance (valid for the current year)
• Original and notarized Certification from his/her DTI-licensed real estate broker or HLURB-registered real estate developer
• Original and photocopy of DTI/HLURB Certificate of Registration as Salesperson
• Original and notarized Certification of at least One Hundred Twenty (120) hours of training and seminar, to be issued by the employer or provider (60 hours classroom lecture or seminars and 60 hours of training or fieldwork)

Supporting documents for existing real estate salesperson with at least three (3) years of active practice:

• Original and photocopy of NSO birth certificate / Certificate of Live Birth
• Original and photocopy of NSO marriage certificate (for married females only)
• Original and notarized Certificate of Educational Attainment (at least High School diploma)
  
• Original NBI clearance (valid for the current year)
• Original and notarized Certification from his/her supervising licensed real estate broker or HLURB-registered real estate developer
• Original and notarized Certification of at least One Hundred Twenty (120) hours of training and seminar, to be issued by the employer or provider (60 hours classroom lecture or seminars and 60 hours of training or fieldwork)

Some more information about the accreditation:

• The Registration Division shall notify the accredited salesperson to enroll their names in the Roster of Accredited salespersons after they shall have paid the prescribed fee.
• Within a reasonable period, the enrolled accredited salespersons shall be issues their identification cards (ID), containing the data or items that are material to the use thereof in their practice as real estate accredited salespersons.
• The said ID shall be renewable every year for a period of one (1) year from his/her birth month.
• The Board (PRB-RES) and the Commission (PRC) shall have the right to cancel, withdraw, confiscate, or not to renew such ID upon violation of any law or rule or non-compliance with the conditions or obligations set forth therein.

There you have it, the implementing rules and regulations for getting accredited as a real estate salesperson with the PRC.  I'm sure some people will be saddened by the fact that the PRB-RES specified only existing salespeople with a high school diploma are eligible to get registered until December 31, 2011.  We can only hope that they'd see fit to amend it once more and soon, at least until the deadline.

Finally, many thanks to www.foreclosurephilippines.com for this.  For more information about real estate and foreclosures, visit Jay Castillo's site, too.

Happy Selling!
Jon

Focus: The Torii Residences

Okay, so it's time to really gear up and get down to business.  What a lot of you don't know is, I'm an accidental real estate broker.  The truth is, I was on my way to pursuing online marketing and website design, by learning HTML, CSS and Javascript, as well as reading and signing up on everything I can find online about SEO, SEM, article marketing, etc.  You can find evidence of that in this blog, in my earlier posts.  So as luck would have it, I told a high school friend about it, and he told me to help him market his real estate projects online and offline.  The deal?  I had to get licensed as a real estate broker first.  And so I enrolled with the Urban Institute of Real Estate for the CREB (certified real estate broker) course and passed the board exam, and here I am.  My friend did good on his promise and gave me this chance to help him market The Torii Residences, a 38-unit townhouse-designed condo project hidden away in San Juan. 

The Torii Residences will have 5 clusters, from A to E, with a total lot area of almost half a hectare.  The first cluster is under construction now and will be ready for occupancy in the 1st quarter of 2012 with 14 units.  Amenities include a jogging path that is completely safe from motor vehicles within the compound, a swimming pool, and a clubhouse.  For more information about the project, watch this video of The Torii Residences.

We are currently looking for investors who would like to get in during the pre-selling stage; the advantage is really huge (more than a million, so to speak)!  I'm also encouraging other licensed brokers who would like to sell this project to their clients.  If you're interested, as an investor or a broker, shoot me an e-mail.

Let me take the opportunity to show you the flyer for the Torii Residences.  The layout, overall design, as well as the logos were all created by my lovely fiancee; I took care of the ad copy.  I'm now sourcing for people who will do flyering, and looking for places where we can disseminate these beautiful creations.  If you know anybody who would like to do part-time work handing out flyers for P200 a day, for about 5-6 hours, please ask them to get in touch with me.  I'm also on the lookout for real estate salespersons who would like to get accredited with the PRC under me.

I hope you can join us, as an investor or as someone who will market this beautiful condo project.  You're always welcome to visit the site to see how things are progressing, just let me know in advance so I can give you a tour.  You're also very much welcome to send me an e-mail if you have anything to ask.  If you're looking for value, this is it, your gateway to upscale urban living in the heart of Metro Manila - The Torii Residences.


Live beautifully,

Jon Tanpoco
(PRC license no. 4326)

So You're Now a Professional. What Does The BIR Say About That?

A couple of months ago, after passing the real estate broker board exam given by the Professional Regulation Commission (PRC), I was at a loss regarding the procedures I should be aware of with regard to the Bureau of Internal Revenue (BIR).  I knew I had to find out because I didn't want to be labeled as a tax evader, and ignorance isn't an excuse.  So, I sent an e-mail to the BIR, without really expecting a reply:

Hello,

I'm a recent passer of the PRC-held real estate brokers exam last March 27, 2011.  I'd like to seek clarification about the requirements for a professional such as I.  Please verify that we need:

• Professional Tax Receipt (PTR) - municipal hall
• BIR Certificate of Registration - is this necessary for individual brokers?  I heard this is for those who want to put up a brokerage company
• Official Receipt - is this necessary for individual brokers?

I would appreciate it if you could point me to a resource where I can find the answers.  Thank you very much.

Sincerely,

Jon

So imagine my surprise when I receive a reply, albeit a couple of months late:

In reply, since you are now considered a professional being a real estate broker duly registered as one under the Professional Regulation Commission (PRC), you are required to issue the corresponding Professional Tax Receipt (PTR) to your prospective clients.  The said PTR has to be coordinated with the city or municipal hall that has jurisdiction over your place of residence or practice of profession.  However, we refer you to Section 7 of Revenue Regulations (RR) No. 11-2008, which mentions among others, that PTR is one of the documentary requirements required from professionals, to wit;
SEC. 7. BIR FORMS AND ADDITIONAL DOCUMENTARY REQUIREMENTS . - The registration forms  shall  generally contain the taxpayer's name, TIN, SEC/CDA/DTI/HLURB Registration Number, date of registration, registered address, taxpayer type, tax types, business style, place of residence  (for individual) , line of business, and such other information as may be required by the Commissioner in the form prescribed therefor to   be   filled out in two (2)   copies, properly labeled and indicated thereon the   specific purpose of the copy, i.e., “taxpayer’s   copy” and  “BIR’s copy” .
These forms shall be submitted together with the required documents , namely:

(a)  In   the   case   of   self-employed  individuals,  mixed    income   earners, professionals,  estates  and  trusts      -Form  to  be  prescribed  by  the  BIR,  together  with  the submission of the   following:

(a.1)   For self -employed, professionals , mixed income earners - Photocopy   of :

(a.1.1) Mayor’s Business Permit /PTR issued by the LGU;

(a.   1.2) Lease Contract, if applicable;

(a.1.3) DTI   Certificate   of Registration of Business Name, if a business trade name shall be used ;

(a.1.4) Certificate of Authority if Barangay Micro Business Enterprises (BMBE) registered-entity, if applicable ;

(a.1.5) Proof of Registration/Permit to Operate with Board of Investment (BOI)/Board of Investment for Autonomous Region for Muslim Mindanao (BOI-ARMM), Philippine Export Zone Authority  (PEZA), Bases Conversion Development  Authority  (BCDA)    &  Subic  Bay  Metropolitan  Authority (SBMA), if applicable;

(a.1.6) Franchise Agreement, if applicable;

(a.1.7) Sworn Statement of Capital, if applicable; (a.1.8) Working Permit for non-resident;

(a.1.9) Waiver of husband to claim additional exemption, if applicable;

(a.1.10) Marriage Contract, if applicable ; and

(a.1.11) Birth Certificates of declared dependents, if applicable.

(a.2)       For   Trust - In addition to the requirements under a.1 (1 to 7), photocopy   of the trust   agreement;

(a.3)      For   Estate (under judicial settlement)   -   In addition to the requirements under a.1 (1 to 7), photocopy  of the Death Certificate of the  deceased.
As to BIR - Certificate of Registration (COR), we affirm that you are also to be issued one by the BIR – Revenue District Office (RDO) that has jurisdiction over your place of residence or practice of profession.  We refer you to Section 8 (A) of the said RR, to wit;
SEC.   8. CERTIFICATE OF REGISTRATION (COR).   -

(A)  Persons Entitled to the Issuance of   COR. - The COR  shall only   be issued to individuals engaged in business or the practice of profession  and   to juridical   persons (whether taxable or exempt) by the Revenue District Officer (RDO) concerned  (i.e.,RDO of head office/branch/facility) upon compliance with the requirements for registration. Issuance of COR, whether upon registration or upon update of taxpayer’s information, is not subject to the payment of Certification Fee, unless the taxpayer requested for a certified copy of said COR, in which case, the same shall be subject to the payment of Certification Fee imposed by Sec. 15 hereof.

(B)  Persons Not Covered by the Issuance  of the  COR. - Employees, one-time taxpayers, and/or persons  who have secured TIN under EO 98 with the BIR shall not be issued a COR.
As to official receipts, we confirm that as a professional, you are likewise required to request for an authority to print receipts (ATP) prior to registration and issuance of such to your prospective clients.  We refer you to Section 237 and 238 of the 1997 Tax Code, to wit;
SEC. 237. Issuance of Receipts or Sales or Commercial Invoices. - All persons subject to an internal revenue tax shall, for each sale or transfer of merchandise or for services rendered valued at Twenty-five pesos (P25.00) or more, issue duly registered receipts or sales or commercial invoices, prepared at least in duplicate, showing the date of transaction, quantity, unit cost and description of merchandise or nature of service: Provided, however, That in the case of sales, receipts or transfers in the amount of One hundred pesos (P100.00) or more, or regardless of the amount, where the sale or transfer is made by a person liable to value-added tax to another person also liable to value-added tax; or where the receipt is issued to cover payment made as rentals, commissions, compensations or fees, receipts or invoices shall be issued which shall show the name, business style, if any, and address of the purchaser, customer or client: Provided, further, That where the purchaser is a VAT-registered person, in addition to the information herein required, the invoice or receipt shall further show the Taxpayer Identification Number (TIN) of the purchaser.

The original of each receipt or invoice shall be issued to the purchaser, customer or client at the time the transaction is effected, who, if engaged in business or in the exercise of profession, shall keep and preserve the same in his place of business for a period of three (3) years from the close of the taxable year in which such invoice or receipt was issued, while the duplicate shall be kept and preserved by the issuer, also in his place of business, for a like period.
 

The Commissioner may, in meritorious cases, exempt any person subject to internal revenue tax from compliance with the provisions of this Section.

SEC. 238. Printing of Receipts or Sales or Commercial Invoices. - All persons who are engaged in business shall secure from the Bureau of Internal Revenue an authority to print receipts or sales or commercial invoices before a printer can print the same.

No authority to print receipts or sales or commercial invoices shall be granted unless the receipts or invoices to be printed are serially numbered and shall show, among other things, the name, business style, Taxpayer Identification Number (TIN) and business address of the person or entity to use the same, and such other information that may be required by rules and regulations to be promulgated by the Secretary of Finance, upon recommendation of the Commissioner.

All persons who print receipt or sales or commercial invoices shall maintain a logbook/register of taxpayers who availed of their printing services. The logbook/register shall contain the following information:
 

(1) Names, Taxpayer Identification Numbers of the persons or entities for whom the receipts or sales or commercial invoices were printed; and

(2) Number of booklets, number of sets per booklet, number of copies per set and the serial numbers of the receipts or invoices in each booklet.
The full text of RR 11-2008 and the 1997 Tax Code are accessible from the BIR website under the Issuances and Rulings, Revenue Regulations, 2008, 11-2008 links and Special Sites, Tax Code links respectively.

For other inquiries, you may visit www.bir.gov.ph or call us at 981-8888. We appreciate your continued support.

Sincerely,
The BIR Contact Center Team

E-mail: contact_us@cctr.bir.gov.ph

The information contained in this communication is intended solely for the use of the individual or entity to whom it is addressed and others authorized to receive it.   It may contain confidential or legally privileged information.   If you are not the intended recipient you are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Any views expressed in this message are those of the BIRCC based on available references and is not binding as evidence against the BIR. If you have received this communication in error, please notify us immediately by responding to this email and then delete it from your system. All emails and file attachments sent to and received through the BIR domain is scanned for viruses by BIR's email Virus scanning system. However it is recommended that attachments, if any, be scanned for viruses before launching. The BIR is not liable for any damages caused due to virus(es), trojans or any other form of malicious software transmitted over email. It is neither liable for the proper and complete transmission of the information contained in this communication nor for any delay in its receipt.

Well what do you know, the BIR actually responds to e-mail inquiries!  I was really honestly pleasantly blown away by this happy happenstance.  At least now, I know what to do!  PTR, and BIR certificate of registration and official receipts to practice my chosen profession as a licensed real estate broker.  All's good, things are looking up, as I said *^_^*

Hit me back (I must be dreaming!)
Jon

Real Estate Listing Contracts: Know How To Motivate Your Broker!

So I'm looking around the net for some contracts I can use later on.  I found this site that explains the 3 different types of listing agreements we have here in the Philippines.  I think people should read and understand these so they'll have a better idea on how to interact with brokers, and what makes us tick.

Exclusive Right To Sell

Exclusive Right To Sell means that no matter who buys the property, that broker will get the commission. There is a really good reason why most listings are Exclusive Right to Sell.  Think about it: If I spend my money and time doing the work to sell your property, but I don't have the security that I'll be paid for it, then, let's just say I'm not going to be so enthusiastic about spending that money and time, especially if any prospective buyer can just go straight to the seller and I end up getting nothing for my efforts. Some brokers only accept exclusive right to sell listings. Other brokers will only agree to do so on an upfront fee basis, as compared to waiting until the property actually sells. If you want a good broker to devote his/her full energy to selling your property, this is the kind of listing contract you should offer.  Before you condemn brokers for acting like money-hungry sharks, ask yourself how hard you would work at your job when the conditions are: maybe get paid, maybe not.  Makes sense now, doesn't it?

Exclusive Agency To Sell

Exclusive Agency means that you won't pay commission if you sell it yourself, but you will pay if your broker (known as the Seller's Broker), or some other broker (known as the Buyer's Broker), brings you the buyer. Any broker with a buyer is presumed to have gotten access to your property's information through your broker's marketing efforts.  Thus, the commission is typically shared between the Seller's Broker and the Buyer's Broker.  This listing contract DOES allow for anybody to just knock on your door and buy the property directly from you, despite the fact that your broker's efforts were what alerted them to the existence of the property in the first place.  Since most brokers have been burned on this one or know someone who has, few, if any, may want to accept this type of contract without requiring you to at least pay for their marketing expenses.  So that's really something you might want to discuss with your broker.  If you really want to escape having to pay the agent, count on being on your own through the negotiations and titling process.  A very large proportion of prospective buyers who will go around your broker to negotiate with you directly could be sharks, unqualified buyers, or possess some other characteristic that's going to cost you a large amount of money, time and frustration.  Why not get your broker to filter those out?  That's part of what we get paid for, anyway.

Open Listing

Open Listings are listings where there is no single broker that has a right to get paid. Of course, no one has the responsibility to act on the your behalf, either.  No one will market your property except yourself, no one will watch out for your best interest except yourself, and no one to help you along the way except yourself.  An open listing can occur when a broker agrees to market or advertise your property without the benefit of an exclusive agency or an exclusive right to sell.  In other words, there's no guarantee that the broker will really ever be the one to sell it, so he/she might not really put much effort into selling it.  You might as well advertise it yourself.  The bottom line with an open listing is that no broker has any incentive to market the home at all.  The typical market practice is for sellers to pay the commission, so buyers can opt to get a broker who will look for properties for them.  While there's nothing wrong with wanting to sell your own property, but if you don't even offer a commission to Buyer's Brokers, those brokers will avoid you because there is nothing in it for them to endorse you to their buyers.  You list your property cheap, and they're still going to take their buyers elsewhere. If your property is a good one, they'll bring their buyers all right - while working on their buyer's behalf to get them a better deal.  It's like a war, except you don't even have a soldier on your side.  You shouldn't expect any marketing or advertising at all with an open listing contract.

I have a special listing agreement contract.  It's an open listing contract, but it has a hold-over clause.  What is the holdover clause for?  Well, the Seller's Broker's authority ends upon the expiry date of the contract, right? However, if a buyer who was introduced or shown to the property from any source whatsoever, through the marketing efforts of the broker during the listing period, subsequently effects a private sale with the Seller within the holdover period, then the Seller is liable for the total commission as stated on the contract.  In other words, a holdover clause is a clause that protects the broker's interest even after the contract has expired, but only for a certain period of time, like a couple of months, depending on the agreement between the broker and the seller.  It offers a small measure of protection, which is still better than the usual open listing.  If you want it, I'll be happy to provide you a copy.

Of course, it still bears saying that you, as a seller or buyer or broker, should be careful of what you sign, especially where contracts are involved.  If you think there's something amiss, consult a lawyer.  There are lots of legal mumbo-jumbo that you shouldn't assume the meanings of .

Hope that helps ya!

Jon

Things Are Looking Up!

Things are finally looking up!  That or I'm just really optimistic.  I hope both is true.  Everyday, when I wake up, my mind goes "Maybe today?"  Yeah, I'm an optimist :).  Here are a couple of things that I think are good reasons for me to say that things are, indeed, looking up:

• I'm now a premium member in SocialMonkee, a free backlink website.  Join now and refer 12 people to get upgraded too.
• I've finished my new website: East of Manila, featuring lots, house and lots, and townhouses in Marikina and Rizal Province.
• I'm close to a deal with a friend...  More details on that when it happens.
• I've been getting some hits on some of my listings...  Will update also when it happens.  I don't want to preempt anything hehe.
• Got some valuable information from a valued mentor, Sir Joey Zamora, regarding commission over-rides.  It definitely settled some doubts in my mind about when it's applicable.
• Got a great deal brewing with Urbanet (sister company of Urban Institute of Real Estate, where I reviewed for to become a licensed real estate broker) regarding DMCI accreditation and getting sales persons...  More on that when it actually happens.
• Got something good happening this December, looking forward to that!

Lots more things happening, and I'm getting really pumped-up and excited!  Wish me luck!

Jon

Filipinos No Longer Welcome As Domestic Helpers in KSA

I don't know if I'm going to be happy or vexed at this development.  Apparently, the Kingdom of Saudi Arabia (KSA) will no longer be hiring domestic helpers from the Philippines and Indonesia because of the breakdown in negotiations regarding labor issues.  The KSA claims that the "manpower from Southeast Asia" were causing a lot of problems, mainly for asking for a $400 monthly minimum wage, a location map of the Saudi's residence, and the opening of a bank account for the salary of the domestic helper.  I can't think of any reason why these are unreasonable demands, considering the KSA is oil-rich.  I'm tempted to say that they just want to be able to get away with their abusive natures and now that we're starting to implement safety nets for our people, they're looking for other people to take advantage of.  Domestic helpers are not animals, and they're entitled to safe working conditions, too.  I'm seriously worried for the Ethiopians now.

On a related note, although the KSA will no longer hire domestic helpers from the Philippines, they will still hire skilled labor such as welders, masons, carpenters, drivers, etc.  Hopefully, our OFWs will not be disheartened by this development.  I have to say though, props to our government for bringing those demands to the negotiation table.  We have to protect our people, and this is a step in the right direction.

Thinking about it now, after I've let out my initial frustrations, I think I'm more happy than angry that the KSA will no longer hire Filipino house help.  Honestly, they never had it so good, and they don't deserve it, as far as I'm concerned.  If they're not willing to ensure our people's financial and personal safety, then they have no right to our hard-working countrymen.  They can roll around in their oil for all I care, I'd rather ride a carabao or a horse if worse comes to worst.  Sorry, I know I'm not objective as far as this is concerned.  It's just that I never had a lot of respect for people who take advantage or hurt those who are weaker or can't fight back.  They're worse than animals in my opinion.  So, as far as I'm concerned, good riddance Saudis.

Jon

Homes For The Law and REIT

Wow, I didn't realize I hadn't blogged in more than a week!  10 days to be exact.  Truth is, news tend to be more or less the same, day in and day out.  Save for your occasional surprising tidbit, like Holcim increasing the price of cement by P10 when demand is seen to actually start falling due to the wet season, there's really not much to say about the real estate industry.  Sure there are still lots of exciting developments; condos are springing up left and right, even in Leyte, can you believe it?  But in general, there aren't a lot of really interesting news to share.  Well, I decided to just talk a bit about P-Noy's effort to help out our cops and soldiers, and the REIT again.

News about the housing units distributed to qualified policemen and soldiers is interesting because everybody's struggling to get their own piece of land, and being a cop or soldier in the Philippines doesn't exactly make one rich.  So it's always good news to hear about the government helping them out.  It's not a bad deal, too.  The article states: "A housing unit at the AFP/PNP Heroes Ville Housing Project in San Jose del Monte City with a lot area of 36 square meters and floor area of 22 square meters is worth P140,000, payable in 30 years at six percent per annum."  The monthly amortization starts off at P200 for the first 5 years, and gradually goes up to P809.53 from the 26th year onwards.  Maybe that'll be enough incentive for our law enforcers to stay clean, if you get what I mean.

As far as the REIT goes, Finance secretary Cesar Purisima said he had signed the tax rules already, but the government will impose value-added tax (VAT) on properties that will be transferred to REITs.  Still, notwithstanding that fact, shares of property developers such as Ayala Land and SM Prime Holdings have gone up on speculation that the introduction of REIT in the country will boost its value.  Philippine Stock Exchange President Hans Sicat disclosed that the minimum public ownership required is 40%, which will further be expanded to 67% in the next three years.  I think it's wise to keep an eye out for this investment, as the real estate industry in the Philippines is currently very healthy, one might stand to gain a lot, were one to play the cards right.

That's all for now, folks.  Have a good weekend, watch a movie, spend time with loved ones.  Be happy, stay healthy.

Jon

QR Codes: I can't help but like 'em!

QR Codes (Quick Response Codes) is not new, they've been out in Japan for some time now.  It's a clever way to get people to participate by using their mobile phones to decode or decipher what's encoded in the QR image.  It's typically a black and white affair, for contrast reasons.  But as cameras are getting better, and the software needed to decode them has also improved, we now see QR Codes that have images, even animated ones, embedded into the code!  For now, I'm just happy playing around with colors *^_^*.  Won't you indulge me and follow my QR Code?  Leave a review when you get there!  Thanks.

It's so cool!

Jon

East of Manila: Live and Play in the East

I'm finally happy with my new site: http://eastofmanila.co.cc to claim that it's finished and publish it as such!  The site is about real estate properties east of Metro Manila, Philippines, such as Marikina and the province of Rizal, including San Mateo, Antipolo, etc.

Visit my site to find out more about Amiya Raya, the park-themed residential community rising out of the hill-sides of San Mateo, just 30 minutes away from Commonwealth Avenue, Q.C.  Or Ramah Desa Mountain Residences of Antipolo.  You'll also find out more about Suburbia East, the flood-free subdivision by EEI Realty in Marikina City, as well as various townhouses like the Westdrive Villas by Atendido Realty.

Living in the east of the metro is a blessing.  It's close to the capital, and you don't even have to pay toll to get there.  Amiya Raya is so much like going up to Baguio that you'll forget that you're just a few minutes away from the hustle and bustle of the city.  Suburbia East is so peaceful and quiet that you wouldn't believe it's only walking distance to the access road leading to Concepcion, Marikina.  These are beautiful properties east of the Metro Manila, you'll love it here!

Jon
PRC License No. 0004326

Residential Free Patent for Landowners!

Good news for landowners in Region 6 of the Philippines!  The Department of Environment and Natural Resources (DENR) has declared that free land titling is available for residential landowners, subject to the requirements under Republic Act 10023, otherwise known as the Residential Land Patent Act of 2010.  This act stipulates that landowners occupying untitled lands that are free and alienable may avail of free titling.  It's time for that land you've been greedily occupying and staunchly protecting with your life to be yours! 

If you are:

• a Filipino citizen
• occupying said residential land (alienable public land) for 10 years or more
• has paid the real estate property taxes on subject land parcel for the past 10 years or more

Then you're in luck!  Head on over to the DENR field office to submit your application for evaluation and assessment!

Some more information about how much residential land may be eligible for titling:

• Highly urbanized city - maximum of 200 sq.m., 500 sq.m.. in other cities
• 1st to 2nd class municipalities - maximum of 750 sq.m.
• 3rd class towns - maximum of 1,000 sq.m.

Now isn't that just exciting news?  Free land, just for living on it for 10 years or more, and for paying the property taxes ("amilyar" in Filipino).  Take care of it, land is precious, people have been known to kill for much less.

Residencefully yours,
Jon
PRC License No. 0004326

Rainy Season: How Is The Philippines So Far?

Hey it's the rainy season!  The season when a lot of people start sweating bullets despite the cold weather.  I don't mean to sound like it's no big deal, because it is.  A lot of Filipinos die when the storms come around, and millions, if not billions, of pesos go down the drain, literally.  I won't claim to know a lot of things where flooding is concerned, as well as storms, but to a certain extent, I know what I'd like to blame: People. 

People throwing things indiscriminately, clogging drains, pipes and sewers.  Add to that the country's antiquated sewerage design, and the sinking land masses and you have a sure recipe for disaster every time we have prolonged rains.  Heck, even some people in my home can't keep up the discipline necessary to keep the house free from garbage, and I'm talking about educated people here, what more those "underprivileged, uneducated" people living under the bridge and in squatter areas?  Well, with large areas of land being transformed into dumpsters, you'd hope that our government would learn to dispose of garbage better, but alas, that's not to be.  Not when ordinary Juans can't summon the wherewithal to find a garbage can to throw their garbage in.  It seems that the country's becoming one giant garbage bin, and it's not going to get better unless everybody starts pitching in and carrying their own weight.  Until then, our floods are going to get worse.  Our people are going to keep drowning.  Our country's going to sink deeper into 3rd world status.  Enough of my rants, here are some stories around the country about the floods:

• Firefighters to declog drainage in Metro - Yeah, now firemen have to do work that's not theirs, just because of people indiscriminately throwing garbage.  Go figure.
• Falcon victims reach 1M - And the toll will just keep on rising...
• Bulacan clears roads after Falcon - Kudos to the governor, but it's sad that we're always just reacting.
• Falcon losses up to P54M - People's resiliency is amazing.  What's more amazing is that they don't learn the lessons that would have prevented the problem in the first place.
• Pampanga in state of calamity as well as Still no classes in Pangasinan
• Falcon leaves but more to come - Maybe we should build arks?

In a bit of good news though, for a change:

• Praise for the country's weather forecasters - It's toward the end of the article, just keep reading ^_^
• Tax breaks for calamity victims - It's like a dark comedy; a tongue-in-cheek joke... But you take the good with the bad, and I guess this isn't as bad as it is good.
• Marikina is prepared - That's excellent news, isn't it?  It is ^_^. 

All this grief from a typhoon that's rated at a fourth of Ondoy (International name: Ketsana)?  I shudder to think what's in store for us in the coming days or weeks of the rainy season!

Let's start now!  Segregate our trash, clean up our sewers and rivers, upgrade our drainage systems!  Let's not wait for something like Ondoy to happen again before we finally do what needs to be done.

Invest in floaters,

Jon
PRC License No. 0004326

Real Estate Salespersons: What Do You Need To Know?

So you want to be a real estate salesperson?  Great!  Before the RESA Law (Republic Act 9646), things were simpler, and you could dive right in and start selling real estate.  It's different now, especially with the advent of the RA 9646 and its implementation.

For your information, according to the RESA Law (R.A. 9646), real estate agents can only be accredited under a licensed real estate broker:

Section 31. Supervision of Real Estate Salespersons. - For real estate salespersons, no examination shall be given, but they shall be accredited by the Board: Provided, That they have completed at least two (2) years of college and have undergone training and seminars in real estate brokerage, as may be required by the Board. Real estate salespersons shall be under the direct supervision and accountability of a real estate broker. As such, they cannot by themselves be signatories to a written agreement involving a real estate transaction unless the real estate broker who has direct supervision and accountability over them is also a signatory thereto. No real estate salesperson, either directly or indirectly, can negotiate, mediate or transact any real estate transaction for and in behalf of a real estate broker without first securing an authorized accreditation as real estate salesperson for the real estate broker, as prescribed by the Board. A real estate broker shall be guilty of violating this Act for employing or utilizing the services of a real estate salesperson when he/she has not secured the required accreditation from the Board prior to such employment.

No salesperson shall be entitled to receive or demand a fee, commission or compensation of any kind from any person, other than the duly licensed real estate broker who has direct control and supervision over him, for any service rendered or work done by such salesperson in any real estate transaction. (this means that the broker will be the one who will collect payment and then pay you.) 

No violation of this provision shall be a cause for revocation or suspension of the certificate of registration of the real estate broker unless there was actual knowledge of such violation or the broker retains the benefits, profits or proceeds of a transaction wrongfully negotiated by the salesperson. 

In other words, once you're accredited under a licensed broker, all your real estate activities will be under the broker, including your listings and commissions.  If you decide to break away from the broker, you will have to file for accreditation with the PRC again under a different broker.

For simplicity's sake, here's a table I made to show you the requirements for PRC accreditation:

In case you can't see it, feel free to right-click on it and download it for your convenience.

If you'd like to see what topics might be included in a 12 CPE units seminar, check out Urban Institute's page.  Typical costs for taking the 12 CPE units training range from 1,500 to 1,800.

I can't give you any info yet about how much PRC accreditation will cost as they have not released any information regarding that.  I will update this blog post as soon as I get information.

Additionally, after accreditation, you need to:

• Get registered with the HLURB - this is required if you are going to engage in project selling such as condominiums, townhouses, etc.
• Get acquainted with the different taxes that you are required to pay such as withholding tax, income tax, percentage tax and e-vat.  Check out the BIR's page for more information.

For now,  if you want to be an accredited salesperson, find a licensed broker, take the 12 CPE units seminar, order your NSO birth certificate and NBI clearance, and get everything else in order.  Once the PRC releases the final guidelines, you'll be ready! 

By the way, I'm a licensed broker hehe!
Jon