RA-9646 fails to deter illegal, "colorum" real estate brokers

MINERVA BC NEWMAN

CEBU CITY – The Philippine Association of Real Estate Boards Inc. (PAREB) laments that despite Republic Act 9646 or the Real Estate Service Act, "colorums" and unscrupulous agents continue to dupe buyers.

PAREB Senior Vice President Engr. Jovencio Cainong noted this issue during the 2nd General Membership Meeting of the PAREB-Cebu Real Estate Board Inc. and 62nd Anniversary Celebration where he was the guest speaker.

“After 13 years of the implementation of RESA (Republic Act 9646 or the Real Estate Service Act), there is a continued proliferation of unlicensed practitioners or colorums.  Kun nagbaha ang licensed brokers, naglunop pod ang mga colorums bisan asa sa Marketplace, sa Facebook,” Cainong pointed out.Cainong pointed out.

According to him no persons shall practice real estate service unless licensed by the government while real estate sales person should be accredited and should transact business under the direct supervision of duly licensed real estate broker.

Those who are not working under a licensed broker violate R.A. 9646 and will be fined P100,000 or imprisonment of not less than two years or both.  A person who sells real estate without license commits a criminal offense, he added.

Unlicensed real estate practitioners include not only locals but also foreigners coming from China, Korea, India, Japanese and other countries. He also discussed the growth of the so-called Facebook agents in its marketplace competing licensed real estate brokers and registered salespersons

“Ninety percent of real estate sales persons on Facebook are unlicensed,” Cainong added that the continued operation of colorum agents have resulted in lost income for the licensed real estate practitioners as well as high risk for buyers.

Buyers are at risk of being offered fictitious properties or even problematic ones by unscrupulous agents, he said. These agents don’t work with licensed brokers who can advise them on the proper way of processing real estate transactions, he said.

Cainong noted that only a few portions of the population are aware that there are such professionals such as licensed real estate brokers, real estate appraisers and real estate consultants.  Few people are also aware that they should deal with licensed real estate brokers, appraisers and consultants to be safe with their real estate investment.

Aside from the risk of dealing with unlicensed real estate practitioners, buyers also have to be wary of illegal subdivisions. There’s a boom of illegal subdivisions from Aparri to Jolo, Cainong said.

Agricultural lands are also being developed into residential subdivisions, which grossly violate local government units’ zoning laws and affecting the country’s food security and threatening our climate, he added.

Batas Pambansa 220 authorizes the Department of Human Settlements and Urban Development (DHSUD), formerly Housing and Land Use Regulatory Board (HLURB) to establish different levels of standards and technical requirements for the development of economic and socialized housing projects.  PD 957 regulates the sale of subdivision lots and condominiums and provides penalties for any violations.  These two laws mandate developers to provide minimum standards. (Photos: Google Images)