Sunday, March 31, 2013

5 Tips for New Real Estate Brokers



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I remember the time when I passed the real estate brokers’ exam. I was still working in Makati then, and I didn’t really know what to do next. I never had sales experience and didn’t know where to start. So I thought of making some tips which I hope would help the new real estate brokers, based on what I have learned along the way during the past two years.
Advice Help Signpost

1. Get your PRC License

The best proof of your being a licensed real estate broker is your Professional Regulation Commission (PRC) license, so get this as soon as possible. You need this when you apply for accreditation with the different real estate developers, when you pay for your Professional Tax Receipt (PTR), and when you update your registration with the BIR. Here is a link to my post about my experience when I got my license last 2011.

2. Update your BIR registration

Before you get your commission, the seller will usually ask for an official receipt. You cannot give an official receipt if you have not updated your Bureau of Internal Revenue (BIR) registration as a licensed real estate broker. So, better do this now.
Atty. Ernesto “Jojo” Perez II has written an excellent e-book on how to register with the BIR as a real estate broker. You may get a copy of his e-book if you subscribe to his website through this link.
Take note that when you update your BIR registration, you need to decide whether you will be VAT-registered or not. Some developers (like Ayala Land Premier) require their brokers to be VAT-registered, so check the requirements of the developers you are eyeing. As a general rule, if your income will not exceed P1,919,500.00 in a year, you are not required to be VAT-registered. You will be subject to the 3% percentage tax instead.

3. Start with Project Selling

I sought advice from experienced brokers at the association I belong to (REBAP-LMP, more on this later), and they suggested that new real estate brokers start with Project Selling (i.e., selling units of projects of developers). So, your next step would be to get accredited with reputable developers.
This advice is very practical because before you can sell anything, you need sales training and product knowledge training, which developers provide for free. Plus, you instantly have several inventories to sell, and in different locations to boot.
Moreover, unlike in General Brokerage (or even foreclosures) where a unit you are selling is usually unique (meaning if it’s sold you would usually not be able to offer another one immediately in place of it), in Project Selling, you would have many other units to offer to a hot buyer.
Lastly, if the reputation of the developer is solid, and the projects are really good and in great locations, some buyers have already made the decision to buy and your job as a broker is only to facilitate the purchase and provide after-sales service.
All these reasons make Project Selling a good practice ground for new real estate brokers.
By the way, if you would like to be accredited with SMDC, my friend, Ruffa Eugenio is a Broker Manager at Local Broker Network Division 2. We were seatmates at the Oath-taking as we were both No. 4 in the 2011 exams. She is likewise a UP BAA grad and CPA like me. You may contact her at 0906-279-6704 or e-mail her at ruffa_eugenio@yahoo.com if you want to be accredited with SMDC.
For those who would like to be accredited with DMCI, I suggest that you course your sales through our group at REBAP-LMP because of our Unified Accreditation Program. You don’t need to be a member of REBAP-LMP to be part of our DMCI group.

4. Join a reputable organization of real estate brokers

One of the best things that a new real estate broker can do to jumpstart his or her career is to join a reputable association of real estate brokers. You can learn from experienced and seasoned brokers and you can also tap their extensive network.
For newbies who know very little about life in the “real world,” advice from “elders” are invaluable. Really, you don’t have to reinvent the wheel when faced with situations you have not encountered before – chances are, someone in the group has already experienced it. Your learning will be accelerated if you have mentors to guide you.
In practice, too, it is very important to deal with reputable licensed co-brokers that are trustworthy. I have heard of many stories about commissions not being shared, “sulutan,” etc. (not a pretty sight, believe me). Deal only with reputable and licensed real estate brokers. Remember this because if you don’t, you will really regret it. This little piece of advice will save you a lot of heartache.
FYI, Jay and I are members of the LMP (Las Pinas, Muntinlupa, Paranaque) Chapter of the Real Estate Brokers of the Philippines (REBAP), and we are very happy to be part of this group. (By the way, Jay used to be with REBAP Marikina but he had to transfer to REBAP-LMP when we left Marikina because of our Ondoy experience).
If you are not yet decided which association to join, I would like to invite you to attend the 1st National General Membership Meeting (NGMM) of REBAP which will be held on April 4, 2013, Thursday, at Palacio de Maynila, Roxas Blvd., Malate, Manila. Registration starts at 1:00 pm. Please come in business attire. Check out REBAP and decide if you would like to join. Our home chapter, LMP, will be the host and the theme is “Cashing In On The Philippine Economic Boom”.
Our keynote speaker, Atty. Romell Antonio O. Cuenca, Director of the Public-Private Partnership (PPP) Center, will be talking about PPP and real estate. Prof. Roland Angeles will discuss the Philippine Economic Outlook for 2013 and other matters which will help real estate brokers maximize their income during the current economic boom. Real estate brokers will have the opportunity to learn about the latest projects of, and get accredited with, several reputable developers.
The learning investment for non-REBAP members is a very reasonable P600.00 inclusive of a sumptuous dinner and CPE credits. Definitely, the learning, earning, and networking opportunities for real estate brokers far outweigh the cost.
Those interested to attend may pre-register with Ms. Michelle Almoguera of the REBAP National Secretariat at telephone number 373-2281 or 374-2496 by April 1, 2013. Those who will pay before the event will have reserved seats. We hope to see you there!

5. Invest in a cellular phone, internet connection, and a laptop

I have no background in sales so selling is really a challenge for me. Since I am a bookworm, I turned to books and online resources, aside from learning from mentors. I still have a lot to learn and I try to improve everyday.
One thing I noticed that a real estate broker needs in order to sell is to be easily contacted. It would be good to invest in a reliable cellular phone and internet connection. I have a Globe line with SuperDuo so I have a wireless landline with unlimited calls to Globe and landlines. Other brokers have lines with all major networks (Globe, Smart, and Sun), plus Magic Jack, Skype, Viber, etc.
Jay suggests using an Android phone because you can easily access and sync your g-mail account with your phone. Aside from syncing your emails for offline reading, you can also sync  all your contacts’ telephone numbers, which can easily be “restored” if needed (think of “accidentally” deleted contacts), or if your phone got lost. It would be a nightmare if you lost your phone or if it gets stolen, and all your clients’ contact details get lost with it forever. This is no longer a problem if you use an android phone with syncing to g-mail enabled.
For internet connection, we have a Sun Pocket WiFi. We can bring it anywhere we go, and we can use it when we use our cellphones and laptops to access our e-mails (you can tell we are heavily dependent on the internet). Any cellphone with internet connection can also be used as a wifi modem and as back-up when our Sun Pocket WiFi’s internet connection fails or is too slow. A good DSL connection is also highly recommended.
Lastly, a good laptop is very important for a real estate broker, so it would be good to invest in one. Some brokers use Ipads or tablets as they are easier to carry and are sufficient for purposes of presentations and accessing the internet and e-mails.
Speaking of the internet, you will definitely need a computer for internet marketing for real estate, that is assuming you already know how to do internet marketing. Anyway, I won’t discuss internet marketing as Jay should be the one discussing it as he is more experienced with it.
I hope this helps! Once again, congratulations to the new real estate brokers! Cheers!

Cherry Vi M. Saldua-Castillo

Real Estate Broker, Lawyer, and CPA
PRC Real Estate Broker License No. 3187
PRC CPA License No. 0102054
Roll of Attorneys No. 55239
2013 Internal Education Head, REBAP-LMP


When in Cebu City, please visit http://www.gregmelep.com for your real estate and retirement needs. Avail of the opportunity to own a condominium unit in Cebu City at the low amount of only P9,333.33 and House and Lot @ P 7,306.81/month only. Hurry while supply of units still last. Just call the Tel. Nos. shown herein: (053)555-84-64/09155734856/099222737836.

Tuesday, March 12, 2013

Certified True Copies Of Titles And Documents Now Require “Proper Identification/Authority” – Quezon City Registry Of Deeds


Last March 11, 2013, we went to the Quezon City Registry of Deeds to request for a certified true copy of the TCT of a foreclosed property located in Quezon City, and we were surprised by a memorandum which prevented us from making the request.

The said memorandum stated that we should have proper authorization, along with proper identification of the authorizing party, in order for us to request for a certified true copy of the TCT (Transfer Certificate of Title).
Since they were distributing a copy of the memo to everyone like us, I scanned the said memo and posted a copy below for easy reference for everyone who would need certified true copies of titles of properties located in Quezon City.
Quezon City Registry of Deeds memorandum for certified true copies of titles and documents
Quezon City Registry of Deeds Memorandum for certified true copies of titles and other documents (click to download)
If you can’t read the memo above, I have pasted the full text of the contents below:
Republic of the Philippines
Department of Justice
LAND REGISTRATION AUTHORITY
REGISTRY OF DEEDS OF Quezon City
East Avenue cor. NIA Road
Quezon CIty

MEMORANDUM

To: ALL CONCERNED
FROM: ATTY. CARLO V. ALCANTARA
SUBJECT: PROPER IDENTIFICATION/AUTHORITY
DATE: FEBRUARY 28, 2013
You are hereby reminded that under “LRA Circular 05-2006″ “Proper identification including written authority must be required of the presenter before issuing electronic certified true copies of all titles and documents”. If requesting party has an adverse interest, his/her alleged interest must be supported by a document to prove same.
Violation of the subject circular shall be dealt with accordingly.

[SGD.]ATTY. CARLO V. ALCANTARA
Acting Register of Deeds

I hope this saves all concerned of the trouble of going to the Quezon City Registry of Deeds only to find out that they need to get proper authorization from the owner of a property.
With the memo above, you will have to get proper authorization, and a copy of their ID(s) BEFORE requesting for certified true copies at the Quezon City Registry of Deeds.
For someone like us who came all the way from Las Pinas City, think of the time, effort, and gasoline which we could have wasted. I’m just glad we also inspected a number of foreclosed properties in the area and the 1.5 hour trip from Las Pinas to Quezon City (that’s one way and with minimal traffic!) did not go to waste, although this means we will have to go back to the Quezon City RD one of these days.
Keep in mind that after making a request for a certified true copy of a TCT/CCT, you will have to come back again after several days to pick it up… bummer!

LRA Circular 05-2006

By the way, I searched for a copy of LRA Circular 05-2006 but I couldn’t find one. I only found an excerpt which states the following:
“that the Register of Deeds will only release the owner’s duplicate of the title to the presentor of the transaction, who normally is the registered owner or a party to the instrument. If the owner’s copy of the title is to be claimed by a person or party other than the presentor of the document, then he/she must have written authority from the registered owner or the party to the instrument. Only under such condition will the Register of Deeds release the owner’s copy to that person other than the presentor.”
This is totally understandable for the owner’s duplicate of the title. But how about for certified true copies? What do you think?

What if the owner of a property does not wan’t to give proper authorization/identification?

It’s common knowledge that you have to get a certified true copy of a property’s title as part of due diligence. But just in case the owner is reluctant to give you proper authorization and identification, what can you do?
I would suggest you show a copy of the memo above to the owner, and explain that you need the authorization to get a certified true copy of the title as as part of due diligence.
But what if they still do not want to give you authorization? Then I guess you have found a seller who does not really want to sell their property, and you can just walk away.
Heck, I’ve heard of private sellers who don’t even want to show a photocopy of the title, pretty strange in my opinion… makes me ask “How the heck can they sell that property if they won’t let you do your due diligence?!”.
I’m just glad that this is not a problem with banks as they would readily give authorization and proper identification.
Anyway, if you are doing your due diligence for properties located in Quezon City, better keep this memo in mind and save yourself the hassle… get proper authorization/identification from the owner before making that trip to the QC RD!

How about other cities / municipalities?

I too wonder if other Registry of Deeds in other cities/municipalities have issued a similar memo. If you know of other RD’s who have implemented something similar, please do let us all know by leaving a comment below. Thanks!
When in Cebu City, please visit http://www.gregmelep.com for your real estate and retirement needs. Avail of the opportunity to own a condominium unit in Cebu City at the low amount of only P9,333.33 and House and Lot @ P 7,306.81/month only. Hurry while supply of units still last. Just call the Tel. Nos. shown herein: (053)555-84-64/09164422611/09173373687.