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Hello, realty practitioners and the aspiring ones.

In this blog, we shall try to review all the relevant information that all of us should be familiar with. We shall also venture to learn new information about current trends in our own turfs and find out too about some beneficial tools of the trade that the other practitioners in different places have.

The process of relearning may not be so acceptable for the more knowledgeable but our experience will prove that it is worth another chance to review or be familiar with them. The aspiring ones and the beginners will find this effort quite gainful.

We shall try to go back to the definitions of some terms used in realty trade or the uncharacteristic ‘lingo’ or ‘lingua franca’ in real estate parlance. We shall also work out some computations that are commonly used in the practice. We will take a closer look at the laws, presidential decrees and other legal dictum covering the entire real estate business. We shall carefully go through the legal instruments that are commonly used and even the rarely used or occasional ones. We will also devote time in looking at the type of ownership proofs or tools that are usually less paid attention to. As a whole, we shall study everything that will be handy for our practice of the trade.

As we are always in the progressing mode, the different tools of the trade will be sorted to become compilations of the different learning modules that we could all share with the upcoming professional realtors and even with the ordinary real estate agents.

The challenge that confronts us lies in making our profession be the real proper linkage between the owners of the real estate properties or the sellers and the possible and new real estate owners or buyers. The effort towards a continuing education of professional practitioners is only one of the best solutions to this challenge. Thus, this blog will try to fill in the gap. With your continued patronage, participation and important contribution every challenge will always be surmountable and attainable.

Typographical errors and improper use of interchangeable ideas could result in blatant mistakes and in the misinterpretation of some language of the trade. With your watchful and caring guardianship, we will always look forward to your constructive suggestions in order to correct them promptly and efficiently. Your experiences and knowledge will reinforce our quest for better and clearer information among our peers.

You may have chance to look at some linkable blogs like:TVY Realty, Reality in Realty and Seaforest Thinks. They are worth your time and effort.

Lesson 1

      Our first lesson will be about four of the most commonly used terms in the practice of real estate service or ‘trade’. These are Real Estate, Real Property and two of the Real Estate Service Practitioners namely the Real Estate Broker and the Real Estate Person. Before we try to explain anything about these terms, let us just look at what the Republic Act 9646 (AN ACT REGULATING THE PRACTICE OF REAL ESTATE SERVICE IN THE PHILIPPINES, CREATING FOR THE PURPOSE A PROFESSIONAL REGULATORY BOARD OF REAL ESTATE SERVICE) states about them. As the legal experts will always remind us, that it is always best to explain the legal terminologies the way they are stated and used in their original form in the particular law itself. All real estate service practitioners know or must know that R. A. 9646 which was approved on June 2009, regulates all the practice of real estate services in the Philippines, shortly known as the Real Estate Service Act or RESA.

      Let us find out what R. A. 9646 states about these four terms and give some explanations on some of the important words in the definition of terms.

Real estate refers to the land and all those items which are attached to the land. It is the physical, tangible entity, together with all the additions or improvements on, above or below the ground. [R. A. 9646, Sec. 3, (c)]

      Let us review our understanding of some of the highlighted words. The land is a capital resource that could be owned by a person, a group of individual, a juridical entity like a corporation, through inheritance, sale, purchase, exchange of properties or services or other valuable considerations of equal values and foreclosure due to unpaid loans and mortgages, if the land and its improvements are used as collaterals. Attached to means fastened to according to legal dictionary. The additions and improvements on, above or below the land are attached to it through planting (like in growing plants), constructing (as in building residence and erecting multi-storey structures) and excavating and embedding (as in gas and water tanks) just to cite some examples. If after all this effort to explain, you got more confused, then adhere to the advise of legal authorities, refer to the actual definitions stated in the law itself. 

Real property includes all the rights, interests and benefits related to the ownership of real estate. . [R. A. 9646, Sec. 3, (f)] 

      Rights mean legally enforceable claim; privilege; power of appointment or choice. Interests mean the right or title of any extent in any property or estate. Benefits mean proceeds or profits derived from rights or titles to any property or estate. Ownership means group of rights to use and enjoy property, including the right to transmit/transfer it to others. You will realize that the definitions of the words are intertwined and related in some aspects. 

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. [R. A. 9646, Sec. 3, (g) (4)]

       The words real estate broker, realtor and broker are interchangeably used in referring to the person who is negotiating and facilitating the meeting of the minds of the sellers and the buyers to complete the sale transaction. Remember that there are other similar transactions on real estate that a real estate broker will negotiate. 

      All real estate service practitioners know that to be registered and licensed, a person has to pass the real estate examination which is usually given annually and most likely during the first quarter of the year. Most examinees are encouraged to undergo review seminars sponsored by the different realtor boards, of course for a fee.

      In some situations, the real estate brokers are expected to do extra services like requesting for the certified true copies of the Transfer Certificate of Title (TCT or briefly called ‘Title’), Tax Declaration of Real Estate Property (called Tax Dec or ‘oja’), Certification of Real Estate Payment; paying in behalf of the sellers and buyers, for the Notary Fees of the Deed of Sale and other legal instruments, the Capital Gains Tax, Documentary Stamp Tax, the Certification Authorizing Registration (secured only after payment of CGT and DST), the Registration Fee, Computerization and Transfer Fee, and other Incidental Expenses related to the transfer and registration. These extra activities are being done by the Real Estate Broker or the Real Estate Person performing for and in his/her behalf. These additional tasks could be: an act of goodwill, an assurance that he/she shall be promptly paid the authorized and agreed commission and for an extra fee. 
      
      The percentage of the commission to be paid for the real estate broker was not specified anywhere in R. A. 9646. Let us just guess what is probably in the mind of the Law framers. Possibly, they do not want to put a ceiling on the commission, as some real estate service practitioners could be more creative than others in enabling overprice on the subject property. The said law should have specified the percentage of commission in recognition of the fate of ordinary real estate practitioners who are always at the disadvantage in bargaining for commonly accepted five (5%) percent commission on actual gross sales. 

Real estate salesperson is a duly accredited natural person who performs service for, and in behalf of a real estate broker who is registered and licensed by the Professional Regulatory Board of Real Estate Service for or in expectation of a share in the commission, professional fee, compensation or other valuable consideration. [R. A. 9646, Sec. 3, (g) (5)]

      The Real Estate Salesperson, Real Estate Agent and Agent are also interchangeably used. He/she should be under the supervision of a registered and licensed real estate broker. In the accreditation process, the salesperson or agent should have been oriented to the ethical standard being followed and the proper role of real estate practitioners, (these will be taken up separately). In some unique cases, the salesperson could be tasked to do the ordinary responsibilities of the real estate broker. In some instances the non accredited salesperson are more courageous in enforcing the payment of five (5%) percent commission and would even enable overprice on the subject real estate property. 

      These are all that I could share with you for now. I believe that our mind could comprehend even the review of past information in much easier recall mode if these are gradually fed into our memory. But always remember that if I had cause confusion in your mind just stick to what the law states.

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