REAL ESTATE ACCREDITATION

FOR SALESPERSONS

Accreditation Seminar for

Real Estate Salespersons
 Cesar E. Santos
• Real Estate Broker (1981)
• Real Estate Appraiser (1995)
• Real Estate Consultant (1997)
• PRC Lecturer
• Real Estate Trainer for the past 25 years
• Real Estate Educator and Facilitator for broker’s appraiser’s examination
under DTI and PRC
• Service provider (past/current): Bank of the Philippine Islands, Manila
Water Corp., Ayala Land group, DPWH, BIR Zonal Value Technical
Committee.
• Founder and President of CESSON Group of Companies
• At least 40 years real estate professional experience
PURPOSE OF THIS SEMINAR:
➢ Professional Regulations Commission (Legal
Requirement for Accreditation)

➢ Housing and Land Use Regulatory Board (HLURB)

➢ Real estate developers need to accredit

salespersons

➢ Real estate dealers – buying and selling

 REAL ESTATE SERVICE ACT
(RESA LAW) RA 9646
!Date of Effectivity: July 30, 2009
!Purpose: Regulate the practice of real estate
service through Professional Regulatory Board
of Real Estate Service (PRBRES) “The Board”
!Registration, application, licensing, approval and
oath taking of applicants
REAL ESTATE SERVICE ACT

RA 9646
GENERAL RULE:

No practitioner can perform

real estate duties, activities or
transactions without a PRC license.
REAL ESTATE SERVICE ACT

RA 9646
Who are covered by RESA?

Brokers, Appraisers, Consultants,

Salespersons
REAL ESTATE SERVICE ACT

RA 9646
! Purpose of RESA Law
• Promoting the real estate market
• Stimulating economic activity
• Enhancing government income from real
property-based transactions
REAL ESTATE SERVICE ACT

RA 9646
How to do it?
Sec 2. Develop and nurture through proper and effective
regulation and supervision a corps of technically
competent, responsible and respected professional real
estate service practitioners whose standards of practice
and service shall be globally competitive and will
promo promote the growth of the real estate industry.
REAL ESTATE SERVICE ACT

RA 9646
Sec 3. "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.
REAL ESTATE SERVICE ACT

RA 9646
Sec 3.  "Real estate development project" means
the development of land for residential,
commercial, industrial, agricultural, institutional or
recreational purposes, or any combination of such
including, but not limited to, tourist resorts,
reclamation projects, building or housing projects,
whether for individual or condominium ownership,
memorial parks and others of similar nature.
REAL ESTATE SERVICE ACT

RA 9646
Sec 3.     "Real estate developer" refers to any
natural or juridical person engaged in the
business of developing real estate development
project for his/her or its own account and offering
them for sale or lease.
REAL ESTATE SERVICE ACT

RA 9646
Sec 3.  "Real property" includes all the rights, interests
and benefits related to the ownership of real estate.
 RESA LAW (RA 9646)
1. Real estate broker - 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
 RESA LAW (RA 9646)
2. Real estate appraiser- a duly registered and
licensed natural person who, for a professional fee,
compensation or other valuable consideration,
performs or renders, or offers to perform services in
estimating and arriving at an opinion of or acts as an
expert on real estate values, such services of which
shall be finally rendered by the preparation of the
report in acceptable written form.
 RESA LAW (RA 9646)
3. Real estate assessor - Real estate
assessor - a duly registered and licensed
natural person who works in a local
government unit and performs appraisal and
assessment of real properties, including plants,
equipment, and machineries, essentially for
taxation purposes.
 RESA LAW (RA 9646)
3. Real estate consultant - Real estate
consultant - a duly registered and licensed -natural
person who, for a professional fee, compensation
or other valuable consideration, offers or renders
professional advice and judgment on: (i) the
acquisition, enhancement, preservation, utilization
or disposition of lands or improvements thereon;
and (ii) the conception, planning, management and
development of real estate projects.
 SECTION 28: EXEMPTIONS
The following can perform real estate- related
activities, without a required license:

! Attorney- in fact
• Authorized to perform business related transactions in
behalf of someone
• Must sign a power of attorney document to effect
• General Power of Attorney – can sign any document in
behalf of the principal
• Special Power of Attorney – can sign any document in
behalf of the principal only in specific situations
 SECTION 28: EXEMPTIONS
The following can perform real estate- related
activities, without a required license:
! Public Official in the performance of their duties
• Except government assessors

! Receiver, assignee or trustee in bankruptcy or insolvency

proceedings
• A person or company appointed by court to manage the financial
affairs of a business/person that has gone bankrupt
• Given control or power of administration or property in trust
 SECTION 28: EXEMPTIONS
The following can perform real estate- related
activities, without a required license:
! Any person acting pursuant to the order of any court of
justice
! Any person, natural or juridical, directly performing acts
mentioned in Section 3 (broker, appraiser, consultant,
salesperson) with reference to his/its own property. (not
habitually engaged)
 RESA – SANCTIONS & PENALTIES

! Procurement of ID/Certificate of Registration by Fraud or

Deceit
! Allowing an unqualified person to advertise or to
practice the profession by using one’s certificate or
professional id card.
! Unprofessional or unethical conduct
! Malpractice of the provisions of RA 9646, IRR and Code
of Ethics
! Engaging in practice during the period of one’s
suspension.
 SEC. 39: 

PENALTY FOR VIOLATION
!Licensed practitioner:
(P100k/2 years imprisonment or both)

!Unlicensed practitioner / “colorum” :

(P200k/4 years imprisonment or both)
SEC 3: THE SALESPERSON
a duly accredited natural person (not
licensed – no exam needed) who
performs service for or in behalf of a
real estate broker for or in expectation
of a SHARE in the commission,
professional fee, etc.
 SECTION 31: 

SUPERVISION AND REGISTRATION
OF SALESPERSONS

Published: August 15, 2011

Effective: August 31, 2011
SEC 31: SUPERVISION OF REAL
ESTATE SALESPERSON
➢ No examination, provided, he/she has
completed at least 2 years or 72 units in
college.
!They have undergone training and seminars in
real estate brokerage, as may be required by
the Board

Published: August 15, 2011

Effective: August 31, 2011
SEC 31: SUPERVISION OF REAL
ESTATE SALESPERSON
Real estate salespersons shall be under the direct
supervision and accountability of a real estate broker:
! Cannot be signatories to a written agreement involving a real
estate transaction unless the real estate broker is also a signatory.
! Cannot negotiate, mediate, or transact for and in behalf of the real
estate broker unless accredited to the latter thru PRC registration
! Cannot receive or demand a commission of any kind from any
person, other than the duly licensed broker any services rendered.

Published: August 15, 2011

Effective: August 31, 2011
Housing and Land Use Regulatory Board
Board Resolution 921 (PD 957 Sec 19) and 922 (PD 957 Sec 11 & 12)
HLURB is a national government
agency tasked as the planning,
regulatory and quasi-judicial body for
land-use development and real estate
and housing regulation.

- regulates the activities of real estate brokers,

salespersons, dealers and developers.
 HLURB Board Resolution No. 921
(PD 957 Sec. 19)

Section 3: Public and prospective buyers are

fairly & truthfully informed of the:
Development, construction, sales and
operations and other facts or activities.
SHOULD NOT BE MISLED THROUGH
MISREPRESENTATIONS.
 HLURB Board Resolution No. 921

Section 5: Truth in Advertising. Must reflect real

facts on project’s payment & financing scheme,
design and standards, amenities, facilities, and other
privileges connected with the sale of lots, including
any building or improvement thereon.
 HLURB Board Resolution No. 921

Section 6: Only the ‘Developer/Owner’ of the

‘Project’ may make an announcement prior to
release of license to sell.

Section 7: Approval of advertisement

only after release of license to sell, however,
approval may be suspended in case of violation
of the terms and conditions of the ads.
 HLURB Board Resolution No. 921

Section 8: State material facts

- must endeavor to present the full disclosure of
pertinent and material facts on the subject property in
advertisements.

• Home condition and repair issues

• Murder or death in the home
• Case of haunted house
 HLURB Board Resolution No. 922
(PD 957 Sec 11 and 12)

Section 5: PRACTICE OF REAL ESTATE SERVICE

ALL PERSONS engaged in the practice of real estate

service must FAITHFULLY COMPLY and not commit any
act or presentation tending to MISLEAD, DEFRAUD or
UNFAIRLY INDUCE another to purchase a property in a
project under any mode or scheme of payment or
acquisition, or demonstrate unworthiness to engage in the
practice of real estate service.
 HLURB Board Resolution No. 922
(PD 957 Sec 11 and 12)

Section 8: Bonds - Brokers P5,000 / Salespersons

P1,000 / Business Firms P20,000

Section 10: Administrative Fines and Penalties:

1st offense – P5,000

2nd offense – P10,000 &
REVOCATION of HLURB registration
 CONDOMINIUM CONCEPT
(REPUBLIC ACT NO. 4726)

CONDOMINIUM – is an interest (separate or common)

▪horizontal or vertical
▪sometimes referred as “vertical subdivision”
▪can be residential, commercial or industrial

UNIT – part of the condominium project intended for

any type of independent use
COMMON AREAS – the entire project except units
reserved for independent use
 CONDOMINIUM CONCEPT

LEASEHOLD OWNERSHIP - concept of an

owner (ex. Manila Peninsula Hotel)

MASTER DEED WITH DEED OF RESTRICTION

- contains all the details of the project and all its
restrictions.
 CONDOMINIUM CONCEPT

1. Master Deed
2. Deed of Conveyance or Assignment
3. Unit owners are stockholders of condo. Corp.
4. Foreigners are not allowed to own up to 40 %
interest
5. Life of condominium corp is co terminus with
the life of the project
6. Management body- managers the affairs of
the condo project.
 CONDOMINIUM CONCEPT

Sec. 6 (g)   Each condominium owner has

also the absolute right to sell or dispose of
his condominium unless the master deed
contains a requirement that the property be
first offered to the condominium owners
within a reasonable period of time before
the same is offered to outside parties;
 ADVANTAGES
• Affordability
• Common areas – facilities, amenities, utilities,
services
• Economy in land space
• Marketability – provision for alien ownership
• Multiplicity of saleable or rentable floor areas
• Elimination of routinely chores – daily
maintenance, security, garbage collection
LAWS ON INSTALLMENT BUYERS

.
1. MACEDA LAW or The Installment
Buyer’s Protective Act (RA 6552)

- Residential lot, house and lot and

condominium
- Under contract to sell
- Installment sale with minimum 24
months payment
 REFUND ( Maceda Law )

Downpayment 100,000
Total Installment inclusive of 400,000
penalty
Penalty 50,000
Years Paid 4 years
Grace Period 4 months
Rate of refund 50%
(100k +400k) – 50k =450k
Refund amount 225,000
Less: Commission Case to case basis
 II. PD 957 (Subdivision and Condominium
Buyer’s Protective Decree)

- Subdivision
- Condominiums
- 100% refund plus interest at legal rate

https://hlurb.gov.ph/wp-content/uploads/laws-and-issuances/policies/pd_957.pdf
GET STARTED!
GENERAL
REQUIREMENTS
• TRANSCRIPT OF RECORD - AT LEAST 72 UNITS
• BIRTH CERTIFICATE
• MARRIAGE CERTIFICATE (WOMEN)
• NBI CLEARANCE
• RESIDENCE CERTIFICATE
• APPLICATION FORM WITH BROKERS SIGNATURE
• COPY OF BROKER’S LICENSE
• ID PICTURE
 FORMS USED IN REAL ESTATE

1. Authority to sell (ATS) – proof that the broker/agent

is authorized to represent the owner in selling the
property

- Open Authority to Sell

- Exclusive Authority to Sell
…. Authority to sell (ATS)

Together with authority to sell, secure the following:

➢ Photocopy of certified true copy of title – to check if there are
any encumbrances or liens at the back of the title
Encumbrances – claim, limitation, liability. Includes liens, deed
restrictions, easements, encroachments or licenses.
• Lien – samples are tax lien, mortgage lien, mechanics lien
• Deed of restrictions – like in subdivision or condominium
projects, passed on from owner to owner
• Easements – roads, streets taking up some of the property
lines.
…. Authority to sell (ATS)

➢ Photocopy of CTC of Tax Declaration – to check if

there are any improvements on the property

➢ Lot plot – use informatik mapdraw (offline free

program for MS Windows only) – to determine the
shape of the lot and to check the accuracy of the
size of the lot.
…. Authority to sell (ATS)

Selling Price
- Seller and agent/broker must agree on the
selling price before signing the authority to sell

- The broker/agent can suggest a selling price

based on his/her research or market data

- It is the duty of the broker agent to orient/

educate the seller on the expenses of sale
…. Authority to sell (ATS)

Selling Price = P1,000,000

Capital Gains Tax = 6% of SP = P60,000
Broker’s Comm = 5% of SP = P50,000
Net to owner = P890,000

100% = 6% + 5% + 89%
SP = CGT + BC + Owner
1,000,000 = 60,000 + 50,000 + 890,000
 FORMS USED IN REAL ESTATE

2. Offer to Buy – prospective buyer expresses in

writing his interest to buy the property and makes an
offer with a proposed price, terms and mode of
payment with other conditions.

3. Offer to Sell – owner/seller expresses in writing his

interest to sell the property and makes an offer with a
proposed price, terms and mode of payment with
other conditions.
 FORMS USED IN REAL ESTATE

4. Reservation Agreement
– a non-refundable ‘earnest money’ to
demonstrate a buyer’s serious interest in
acquiring a property. Usually effective within a
period of 30 days.
 FORMS USED IN REAL ESTATE

5. Contract to Sell 
- refers to an agreement between a seller and
a buyer. The contract  shows that the seller
promises to  sell  something to the buyer and
the buyer also promises the seller the buy the
property. However, the  contract  does not
instantly transfer the right to the buyer even
when this contract is signed

https://attorney.org.ph/legal-news/220-philippine-legal-forms-contract-to-sell
 FORMS USED IN REAL ESTATE

6. Deed of Sale

- This legal form transfers  property  to one

party including  property  rights. Once you
have signed the documents, it means you
have fully understood that all rights to
the  property  will be transferred from the
seller to the buyer.
https://attorney.org.ph/legal-news/217-philippine-legal-forms-deed-of-absolute-sale
 FORMS USED IN REAL ESTATE

7. Deed of Assignment/Transfer of Rights

- an Agreement between the Seller and a

Buyer of a real estate property  showing
evidence that the Seller has transferred all
his rights, his title, his interest and ownership
of that land to that the Seller that has just
bought land.
http://omonilelawyer.com/what-is-a-deed-of-assignment-and-the-risk-your-taking-for-not-having-a-deed-of-assignment-for-your-land/
 FORMS USED IN REAL ESTATE

8. Deed of Sales with Mortgage

9. Deed of Sale with Assumption of Mortgage

http://omonilelawyer.com/what-is-a-deed-of-assignment-and-the-risk-your-taking-for-not-having-a-deed-of-assignment-for-your-land/
PROOF OF OWNERSHIP:

1. Certificate of Title (TCT/OCT/CCT)

2. Tax Declaration
3. Contract to Sell
4. Deed of Sale
5. Tax Receipts
6. Sometime possession or continuous
occupancy
 WHY SELL REAL ESTATE

• No employee-employer relationship
• Work on your preferred time
• Chance to earn big income in just one deal
• Unlimited opportunities not just in selling
 WHY INVEST REAL ESTATE??
• Addresses a basic necessity – food, shelter, clothing (see
handouts on the importance of real estate)

• Hedge against INFLATION

“To take steps to limit the reduction of the value of an due to 
inflation. Inflation decreases the value of money such that an 
investment's return is not worth as much as it might have been
 when the investment was made originally. Hedging against 
inflation helps reduce this pressure.”
Marikina Heights – Residential Lot

1993 - P360 per square meter

27 years

2020 - P20,000 per square meter

 WHY INVEST REAL ESTATE??

• Source of wealth (transferrable/inheritance)

• Speculation / Source of income / profit (rental
income/dealership)
• Spark plug of the economy
• Law of supply and demand (scarcity of land)
• Land is not a wasting asset
 JUMPSTART YOUR CAREER
➢Part-time or Full time
➢Developers usually give allowance tied up with a
monthly or quarterly target
➢Associate yourself with fellow successful and
reputable salespersons
➢Check your attitude in life and in selling
➢Do you have aspirations to improve your life status
➢Are you willing to talk and to engage (this can be
developed, skill)
➢Hardwork. Guts. Enthusiasm (recipe for success)
 JUMPSTART YOUR CAREER

➢Communication – sometimes, its not what you say

but how you say it
➢Even a small working area in your home to begin
the business
➢Working capital
➢Establish relationship, connections, clients,
government offices
➢This can be later – in this industry, sometimes, its
WHO not what you know.
 SALES COMPONENTS

- What do you want to sell?

Project Selling or General Brokerage
- Get basic knowledge on the
documents needed in real estate
transactions
- Always conduct Due Diligence
 SALES PROCESS
Step 1. Secure listings/real estate properties for
sale
 
SOURCES OF LISTINGS:

a. Real estate developers

b. Banks and other financial institutions
c. Individual owners or company-owned real estate
d. From fellow practitioners (exchange listing)
 SALES COMPONENTS

STEP BY STEP ON GENERAL BROKERAGE

(letters b, c, and d)
 
Step 1: Get an authority to sell
Step 2: Ocular inspection
Step 3: Photocopies of TCT, tax declaration,
lot plan/location/vicinity map
 
 SALES PROCESS

Create lot plan using Informatik Mapdraw

(download for free)
- Determination of shape and true area of lot
- If there is an encroachment
- If there is error in the technical description
 
Step 4: Conduct initial due diligence of the property
 SALES PROCESS

Some of the factors to consider before selling a property:

- Are you dealing with the registered owner? Or his/her
representative?
- Is the owner still living or the property is already subject
to estate tax
- Is the realty tax up dated?
 - Are there encumbrances in the title that might become
deterrent to consummation of the sale?
 SALES PROCESS

Some factors to consider before selling a property:

- Do not trust the back of the title presented by the owner –
there might be some encumbrances at the original title at the
Register of Deeds.
- Study the expenses of sale (Sellers account and buyers
account) BIR, Treasurer’s Office, Reg. of Deeds, Assessor,
Broker’s commission, etc.
- Legal use of the property
- f dealing with a fellow agent – commission sharing
 SALES PROCESS
Step 2: Prospecting thru:

• Traditional Marketing
 

Networks – family, relatives, friends, colleagues,

acquaintances, social networks, business circles, etc.
Generate leads thru saturation activities:
- Flyering (Saturation activities)
- Booth, site or showroom manning

• Digital Marketing
 SALES PROCESS

Step 3: Briefing or Step 4: Demonstration

Presentation of the or Viewing of the property
property
 SALES PROCESS
Step 5: Closing – Meeting of the minds (Perfection of
Contract)
 Project Selling
Vs.
General Brokerage
 Mo. Amortization Factor Formula
 
MAF = Si / S – 1 ( Based on the above)
 

Where: S = ( 1 + i)n
i = interest per period ( one month in the above)
n = no. of paying period
Solution:
 

MAF = ( 1.01)60 x 0.01 / (1.01)60 - 1

= 1.817 x 0.01 / 1.817 - 1
= 0.01817 / 0.817

= 0.0222399

Amortization is periodic reduction of loan that includes interest

based on diminishing balance of principal.
Sample computation of installment sale
 
Formula: Example – sale of lot only
 
60 months to pay ( no. of periods of payment)
Interest per annum is 12% / In-house financing
 
Selling Price (200sqm. x P6K) = P1,200,000.00
Less: Downpayment say 200,000.00
Balance to be paid in 60mos. 1,000,000.00
 
Multiply by: M.A.F. (Formula: MAF = Si/S-1) 0.0222399
MA for 60 mos. P22,239.90
 
Interest = Principal x rate x time (1,000,000 x (12%/12mos) x 1 month)
Interest = 1,000,000 x 1% (12%/12mos) x 1 month = P10,000 (1st month)
 Commission Computation (with WT)

Contract Price 2,000,000

Gross commission, 5% 100,000
Less: 10%Withholding Tax 10,000
Net Commission 90,000
Commission Computation (with disc and WT)

Contract Price 2,000,000

Less: discount say, 10% 200,000
Net Selling Price 1,800,000
Gross commission, 5% 90,000
Less: 10%Withholding Tax 9,000
Net Commission 81,000
Commission Computation (VAT/Discount/WT)

Selling Price 7,000,000

Net of VAT (SP/1.12) 6,250,000
Rate of commission 3%
Commission before WT 187,500
Less: 15% Withholding Tax 28,125
Net Comm after WT 159,375
PITFALLS IN REAL ESTATE
 
1. selling without authority to sell is risky
2. selling without seeing the original title in the
registry
3. dealing with an agent who is not authorized
4. too much trust to fellow agent, seller or buyer
5. you are dealing with hard to handle seller or
buyer
6. seller is not disclosing material facts about the
property
7. selling or pinpointing a wrong property
PITFALLS IN REAL ESTATE
 
8. lack of knowledge in the expenses of sale
9. listing broker went directly to the buyer without the
consent of the selling broker and vice versa – VERY
UNETHICAL
10. no due diligence conducted
11. selling inherited property when there is no settlement
of estate yet
12. giving consent with unethical practices like
Undervaluation Forgery, Portraying that the owner is still
living
13.listing and selling broker has no formal arrangement
on commission sharing
and many
more . . . .
 
 DECLARATION OF PRINCIPLES (CODE OF
ETHICS)
Sec 1. A noble profession, calling or occupation
- shall abide by and comply with all laws promulgated by duly
constituted authorities
Sec 2. Utmost fidelity, sincerity, respect for colleagues
- honesty shall be observed by those and in relation with their
client, community and nation
Sec 3. Adequate knowledge, competence and expertise
- shall be maintained
- upgrade of the standards when need arises
Sec 4. Camaraderie, cooperation and professional relationship
- respecting the rights of other practitioners
- organizations shall have aims and purpose
DECLARATION OF PRINCIPLES (CODE OF
ETHICS)

Sec 5. Fair honest and just dealings with

colleagues

Sec 6. The Golden Rule

“Treat others as you like them to treat you”

Skills Development:
- Takes time
- Practice, practice, practice
- Master the Art of Selling

Maintain your interest or enthusiasm in real

estate

Develop the habit of offering

Concentration of Purpose
- FOCUS

Work Hard/Work Smart

PERSEVERE
The difference between success and failure
is PERSEVERANCE

Maintain a positive outlook

Not what you earn, but what you save

Q&A
 Thank you
and
Enjoy Selling!