REPRESENTATIVES of the real-estate sector have pushed for the amendments of Republic Act (RA) 9646 or the Real Estate Service Act (Resa) of 2009 to help address the housing backlog in the country which is currently pegged at 6.75 million units.
The members of A Better Real Estate Philippines (Abrep), a movement that seeks to promote inclusivity and the use of technology in the industry, recently filed a class-action appeal at the Makati Regional Trial Court.
“Our intent with the filing of the Petition for Declaratory Relief is to start overhauling the industry’s regulatory framework to make the profession more inclusive and accessible,” Abrep partner and legal advisor Atty. Estrella Elamparo told reporters during their recent webinar. For Abrep President Anthony Leuterio, the provisions of the law are “anti-poor, anti-Pinoy, and anti-technology.”
He cited, for instance, Section 14 of Resa that requires applicants for the Professional Regulation Commission’s (PRC) broker licensure exam to have a four-year degree in Bachelor of Science in Real Estate Management (BSREM).
Since this course can cost up to P300,000 to complete, this is a nonessential educational prerequisite, according to him.
“Resa is anti-poor because it forces unnecessary educational requirements that drive the cost of becoming a practitioner astronomically high,” Leuterio said, while recommending the lowering of BSREM’s units to those that are required to practice.
Another burden for potential practitioners is the overlapping regulatory authority between the PRC and Department of Human Settlements and Urban Development (DHSUD) created by Resa that makes registration costs redundant.
“It will take you six months to one year to get licensed and there is a large amount of money involved. To comply with the accreditation for salespersons, it will cost up to P30,000 if you are far from any DHSUD or PRC offices,” he said.
While the logjam is a major problem in the country that could balloon to about 22 million by 2022 if left unsolved, National Real Estate Association (NREA) President Benny Cabrieto noted that there is a lack of salespersons to sell enough dwelling units.
“There are less than 100 BSREM graduates per year, and not all pass the board. Even the good schools do not offer this course,” he said.
With fewer possible practitioners, Section 32 of the Resa law that requires corporations to have at least one licensed broker for every 20 accredited salespersons becomes irrational.
This is not the first time that RA 9646 has been challenged. The Chamber of Real Estate Builders’ Association (Creba) also tried to get lawmakers to pay attention to changes in previous years.
“We are not anti-regulatory, but the problem lies in the 1-is-to-20 provision. Where did you get that number?” Creba National President Noel Cariño said, while emphasizing that the provisions also affect developers. “Now, we are saying tech will allow you to reach as many people as you want, but how can you say that the ‘magic 20’ will ensure optimal real-estate marketing?”
What the industry needs today are people to sell, pointed out Bria Homes President Red Rosales. He said: “Hindi lahat ng bayan may brokers [Not all of the towns have brokers]. There are towns without licensed brokers. Paano natin mabebenta ang mga prinoduce namin na mass housing if walang magbebenta? [How will we sell the mass housing that we produced if there’s no seller].”
The 1-is-to-20 rule also has an impact on the development and use of technology in the property sector, per Leuterio. He shared that there have been instances that web platforms designed to link salespersons to buyers have been misconstrued as being structured the same as traditional brokerage firms. Hence, salespersons have allegedly been wrongly accused of violating the 1-is-to-20 rule.
“Resa is anti-technology as it was crafted in the pre-automation era, at a time where we couldn’t imagine the level of technology we have now,” the Abrep president said.
Leuterio, likewise, emphasized that law’s failure to promote equal opportunity for local real-estate practitioners, stating that the law’s stringency has ended in much of the industry going underground, resulting to a breeding ground for colorums.
“It is anti-Pinoy because it fails to promote equal opportunity for Filipinos while unauthorized foreign agents continue to operate unchecked,” said Leuterio, noting that informal buyer-get-buyer referral programs have become commonplace, leading in some foreign property sellers to illegally reap incentives that should have compensated their local counterparts.
“We are not anti-Resa, we are pro-Pinoy. The law needs to be amended, not abolished. But for any change in this law to be meaningful, it must be a united effort from all stakeholders. We call upon both our fellow industry practitioners and those in the government who align with our beliefs to help make this law a better law for the Philippines,” Leuterio stressed.
#realestateblogph | #realestateblogphpropertynews | #REBPH | #realestate | #RESALaw | #RESAConcerns
Article and Photo originally posted by Business Mirror last December 1, 2020 and written by Roderick Abad.
About Post Author
More Stories
Banks’ total assets up at P26.2 trillion end-June
Lamudi sees heightened developer confidence with rise in ad spending
Phase 1 of PHINMA’s Bacolod township to finish by next year