Cebu real estate board warns buyers against ‘colorum’ brokers

MINERVA BC NEWMAN

CEBU CITY—The Philippine Association of Real Estate Brokers (PAREB)-Cebu Real Estate Board Inc, (CEREB) warns the public against “colorum” real estate brokers and calls for ethical practices and professionalism among realtors and real estate practitioners/sellers.

PAREB-CEREB 2022 president Marianne Avenido-Neri and past president/adviser Marilou Cañizares agreed on the importance of professional and ethical standards as a protection for both the buyers and sellers of the real estate properties.

These issues and the ‘Bantay Colorum’ campaign were the focus of discussion during the board’s 2^nd Membership Meeting, Induction of the New Board of Director and 62nd anniversary celebration today, March 31, 2022.

Avenido-Neri bared that there are persons now who are not accredited as required by law who are involved in real estate transactions and this is very serious especially because there are unlicensed agents practicing real estate services.

She cited Section 29 of Republic Act 9646 or the Real Estate Service Act (RESA) that prohibits the unauthorized practice of real estate service.

Only those who passed the licensure examination given by the Philippine Regulatory Board of Real Estate Service (BRES) of the Professional Regulation Commission (PRC) are allowed to provide real estate service.  They are then issued by PRBRES and PRC valid certificates of registration, and professional identification card or a valid special/temporary permit, Avenido-Neri said.

Cañizares on the other hand revealed that some foreigners are now engaged in real estate transactions by using lawyers and real estate brokers although they are not allowed to do so.

She explained that under Section 24 of the RESA Law on Foreign Reciprocity, a foreign national can only be issued accreditation to practice the real estate profession in the Philippines if his/her country of origin allows Filipinos to engage in the real estate trade.

These foreign nationals are able to do so because they are condoned by some real estate brokers.  She added that some Koreans and Japanese are doing real estate transactions with their countrymen but coursing these through some real estate brokers.

“It can cost you, real estate brokers your license. It’s very specific in the law that brokers fee should never be shared with non-accredited real estate agents,” Cañizares stated.

Both CEREB officials prefer to address these issues and concerns through creating more awareness among the public and re-educating fellow real estate practitioners about the importance of following the RESA law.  They also urged those who would like to engage in real estate transactions to undergo required trainings to be accredited.  

Avenido-Neri also warned the public that there’s a risk in acquiring or selling real properties if they do so through unlicensed sales agents. There could be problems such as double sale or even triple sale, which meant that the property was already sold and then offered for sale again to other buyers.

She explained that responsible licensed brokers do due diligence on properties to be sold, to check if the property is really for sale or if one is dealing with the owner.

“PAREB-CEREB has been involved in the Bantay Colorum campaign before the pandemic. Our main mission is to revisit, realign ourselves with the purpose of really registering and accrediting, to do the professional way of venturing into real estate,” Avenido-Neri added.

Atty. Jovencio Cainong, PAREB Senior Vice President was its guest speaker who presented the PAREB Bantay Colorum Campaign to some 80 to 100 CEREB members via zoom.