GO LEGIT as a PROPERTY DEVELOPER!!

As people strive to meet one fundamental need, many Filipinos have started looking into affordable and trusted house agents. The latest data from December 2021 marked a statistic of 6.7 million units sold in the Philippines.

In the day when demand for housing is exponentially increasing, many dealers have surfaced with promises of innovation and authenticity. However, it is too good to be true to be swayed by promises under pretenses. As the demand for real estate properties continually spikes, so are the fake brokers waiting to exploit homebuyers.

How can you stand out amidst these bogus brokers and dealers and establish a reputation that will attract homebuyers to choose you?

The only sole answer is to abide by the laws and procedures set by the government. Thus, the following requirements are necessary to build an atmosphere of authenticity:

LICENSE TO SELL

Under Section 5 of Presidential Decree No. 957, a License to Sell (LTS) is a permit issued to owners or sellers as an authorization to sell a property, such as condominiums and subdivision lots, within two weeks of registering the project. This ensures the reputation of the seller or dealer, that their business is stable financially and not fraudulent.

Having a license to sell aims to promote an initiative to prevent scams and malpractice in the Philippines. The regulations are set by the Department of Human Settlements and Urban Development (DHSUD), which is also in charge of the main issuance of the license. In order to obtain a license as a real estate salesperson, the following requirements should be accomplished as imposed by the Revised Implementation Rules and Regulations for PD 957:

1. Sworn Registration Statement (HLURB Form 001 for Corporation/HHLURB Form 003 for Single Proprietorship)

2. Certified True Copy (CTC) of Original/Transfer Certificate of Title with stamp and seal by the Register of Deeds

(Note that projects with more than 20 titles are subjected to more additional requirements.)

3. Duly audited balance sheet (CTC or original)

4. Articles of Incorporation (or of Partnership or Association), by-laws, or authorization from the Securities and Exchange Commission (SEC)

5. Copies of brochures and other advertisement materials for public offering

6. Sample copy of the Contract to Sell

7. CTC of Environmental Compliance Certificate (ECC)/Certificate of Non-coverage (CNC), issued by the Department of Environmental and Natural Resources (DENR)

8. Zoning Certificate from HLURB Regional Office

9. CTC of the DAR conversion order

10. Electrical Plan and Specifications

11. Permit to operate a deep well/submission of a confirmed water resistivity test from the National Water Resources Board (NWRB). Water potability test results from concerned government agencies such as Maynilad.

WHY GO LEGIT?

In order to build the best reputation in the industry, providing assurance and building trust towards your target clients will be of pivotal importance. Consequently, compliance with government mandates and orders will testify to your commitment and ethics as a dignified real estate salesperson. On the other hand, failure to comply with government mandates may result in the following penalties and punishments:

- Article 1338 of the Civil Code of the Philippines

- Fraud or deception may render the contract voidable if the seller is proven to have engaged in deceptive practices.

- Estafa (Fraud) under Article 315 of the Revised Penal Code

- Committing fraud in selling properties may lead to criminal charges, fines, or even imprisonment.

- Republic Act No. 7394, the Consumer Act of the Philippines

- This law safeguards the rights of the consumers against deceptive and unfair sales acts.

- Department of Trade and Industry: Consumer Protection Group

- A platform for consumers that addresses complaints and violations against deception.

- Section 39 of RA 9646: Penal Provisions

- An act established to regulate the practice of real estate professionals under the Philippine Regulatory Commission (PRC). Violations of this mandate may result in penalties and fines, not lower than a hundred thousand pesos or imprisonment of up to two years.

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