A Report On PhilRES Growth & Maturity as AIPO
26 September 2014
HON. TERESITA R. MANZALA
Chairperson
Professional Regulation Commission
Paredes Street, Sampaloc
City of Manila
Subject: A Report On PhilRES Growth & Maturity as AIPO
Dear Chairperson Manzala:
Please accept the warm greetings and highest esteem of the leaders and members of the Philippine Institute of Real Estate Service Practitioners (PhilRES), Inc.
As the duly Accredited and Integrated Professional Organization (AIPO) of the country’s real estate service practitioners, we take pride to present this Report, together with enclosures, to the Commission, through your good office.
I know that you have ample recollection of the problematic antecedents that led the PhilRES National Directorate to request me to assume the Presidency in midstream which I could not turn down being the principal author of the RESA Law.
THE IMPORTANCE OF PRC SUPPORT
You will recall that immediately upon my assumption as President on August 26, 2013, I lost no time in reaching out to key stakeholders in the industry for an honest dialogue. I also met with you and the PRBRES officials to clear the ground rules governing us all.
Fortunately, you re-affirmed the standing of PhilRES as the recognized AIPO based on an official Resolution issued in 2011 by both the PRC and the PRBRES. PRBRES Resolution No. 19, Series of 2011, reminded all licensed real estate service practitioners that they first had to obtain a Certificate of Membership in Good Standing (CMIGS) from the PhilRES in order to obtain or renew their PRC license.
It is noteworthy to mention that, after your landmark clarification, the number of PhilRES registrants swelled almost immediately from just a little over 300 members in the entire year of 2013 to more than 4,000 new members registered in a span of only seven (7) months from January to July 2014. This was in sharp contrast to the year immediately preceding whose dismal number of registrants was principally attributed to the Memorandum issued on 11 January 2013 by PRBRES Chairman Eduardo G. Ong delisting from the requirements for registration/renewal of PRC license the Certificate of Membership in Good Standing from the AIPO. If we add the 3,000 plus members that registered in the first two years (2011-2012), total PhilRES membership now stands at close to 8,000. Registration continues to increase by the hundreds every month. Thanks to your timely re-affirmation of PhilRES’ AIPO status, the tide has turned.
Much more, however, remains to be done in order to strengthen PhilRES and enable it to operate as envisaged in its amended Bylaws and in accordance with its role as the AIPO in the real estate service sector.
The above goal is our primordial objective at this time. The PhilRES national directorate is determined not to allow ourselves to be distracted or intimidated from this objective by misguided priorities, impractical guidelines, and arbitrary deadlines imposed by hostile oppositors and less than upright regulators.
MAKING UP FOR LOST TIME AND LOST GROUND
This year 2014, the PhilRES national directorate has resolutely pursued a series of positive steps to hasten the growth and stability of our organization.
1. Strategic Planning & Organizational Development
In January of 2014, we convened the 21 national directors and the presidents of more than 40 PhilRES chapters nationwide to a first-ever strategic planning session. This exercise produced clear priorities and key result areas as well as budgets and timelines for the entire organization.
Since then, the national directorate or board has met every month. Its decisions and policies are implemented by a management committee that meets as often as necessary. Various standing committees mandated by the by-laws have been organized. These include key committees like membership, continuing education, ethics, chapters, finance, public relations, complaints and arbitration/mediation, and the like.
Supporting the national directorate and the committee chairs as well as the chapters is an Executive Director and a professional national secretariat. The PhilRES national headquarters is based at the RGV Real Estate Center in Makati City.
2. Team-Building, Communication & Consultation
To rouse our general membership from the doldrums caused by successive setbacks in 2013, we convened a first ever general assembly of members in late February of 2014. More than 500 delegates filled the main ballroom of the iconic Club Filipino in Greenhills, San Juan City. They came from the various chapters around the country.
The Assembly combined a symposium on industry topics of interest and the formal admission of new members. It also became the occasion to recognize major development companies and institutions in the country that have strongly supported the implementation of the RESA, by presenting to them the “Friends of RESA” award. These entities not only allowed but encouraged their staff to take the licensure examinations and/or prepare for the accreditation of their salespersons.
3. Timely Service to the Members: CMIGS, CPD & Chapters
Among its various services, the secretariat electronically submits the list of certificates of membership in good standing (CMIGS) upon approval, and on a daily basis (except weekends and holidays), to the office of the PRC Chairperson. The CMIGS is a precondition to the renewal or release of every licensed practitioner’s PRC license number.
No less than the PRC Chairperson has requested this service and, therefore, sees to it that the CMIGS list is electronically forwarded to all the concerned PRC offices for their easy reference in dealing with PRC license applicants anywhere in the country.
At present, there are more than 50 PhilRES chapters nationwide, with many more provinces and cities requesting to organize their own respective chapters. The formation of chapters is pursuant to Sections 94 and 95, Article XV of the Amended PhilRES By-Laws duly approved by PRBRES, PRC and the Securities & Exchange Commission (SEC)
PhilRES has also successfully conducted a number of CPD seminars that were duly accredited by the PRC for key cities and provinces where our chapters are located. Requests from other chapters continue to be received by the PhilRES CPD Committee which strictly imposes the criteria and guidelines laid down by the PRC.
GEARING UP FOR GLOBAL COMPETITION
The PhilRES objective is to develop a cadre of licensed, well-trained, constantly updated, and ethical Filipino professionals that real estate investors and developers in the Philippines can count on to help sustain the real estate boom that has driven the Philippine economy since 2004. As we all know, the economic bull run has now extended beyond the traditional 7-year cycle, which is a rule of thumb in the global real estate business. No wonder, every now and then, observers and analysts speculate when the bubble might burst.
Not surprisingly, the extended run has caught the eye of property investors from many parts of the globe. In addition to unit sales, bulk purchases are being recorded for many of the high-rise residential and office condominiums that continue to transform the skyline of Metropolitan Manila as well as that of Cebu and Davao in the south. Some of the big purchases are being traced to foreign buyers coming from the real estate property capitals of the world.
This is good news for the industry. But it brings up some concerns for the real estate service sector.
Which brokers are negotiating the sales?
Are these brokers local or foreign?
Are they licensed? If not licensed, what are the liabilities involved? Whether licensed or not, are there reciprocal arrangements between the host country and the home country?
Are the laws and regulations similar or compatible in both countries?
In light of the forthcoming ASEAN Economic Integration, what are the policy areas and best practices that need to be looked into in order to ensure reciprocity and a level playing field in the real estate service sector?
In addition to the legal and regulatory concerns, we are concerned about the readiness of our realtors to keep in step with our foreign counterparts, particularly those from the more progressive countries.
We note glaring gaps between professional practice in the real estate capitals of the world and in the Philippines. This has to do with the quality of professional competency and familiarity with state-of-the-art technology that is now widely used by reputable realty firms worldwide.
Are our professional education and development programs up to par with global standards?
How predominant is the use of appropriate, not to say state-of-the-art, technology among our local practitioners?
For globalized marketing and transactions, how adequate are our telecommunication and broadband facilities in the country?
Why is it that foreign companies that operate in our country tend to go to a handful of real estate service companies owned and operated by expatriates rather than to Filipino-owned service companies?
These are just a few examples of concerns that must be effectively addressed in order to shape the Philippine real estate service sector in accordance with global standards. The PhilRES organization resolves to address these needs gradually but steadfastly through its operating committees and high-powered group of advisors and consultants.
THINKING OF THE NATIONAL TEAM
We in PhilRES think that the onset of global business opportunities and competition from the more advanced economies brought about by regional agreements such as the ASEAN Economic Integration should serve as a welcome spur. But much work remains to be done.
With all due courtesy, we are convinced that precious time, energy, and resources are better spent on preparing the national team for global competition, rather than on parochial and divisive issues that merely delay, or worse, bring down the quality and image of our industry players.
As the highest regulatory body for all licensed professionals, we wish to assure the PRC that PhilRES will do all it can to make certain that our real estate professionals are ready and able for the challenges posed by the growth of our national economy as well as the ASEAN economic integration.
THE PHILRES WEBSITE
FOR TIMELY & REGULAR SHARING OF USEFUL INFORMATION
To further facilitate timely communication, the design and installation of a state-of-the-art PhilRES website has been commissioned to an I.T. solutions company.
It aims to ensure quick and regular dissemination of information regarding AIPO concerns and organizational plans and activities, as well as professional and business opportunities for members through an up-to-date Multi-Listing Service and appropriate guidance for Continuing Professional Education.
The website shall provide easy and timely access to important official PhilRES documents, official communication from the national president and officers and the various chapters throughout the country, as well as financial reports – all in the spirit of transparency and accountability. It will also link PhilRES members to the websites of national associations and institutions that are important to the real estate business. An important feature will be a regularly updated Real Estate Monitor of the latest economic and real estate developments in the Philippines and other parts of the globe.
The website will, therefore, serve as a vehicle for opportunities available only to the PhilRES members that address professional development, business and revenue-generating activities.
AMENDING THE CONTROVERSIAL AMENDED BYLAWS
Certain provisions of the present PhilRES Amended Bylaws, as duly approved by the PRBRES, PRC and SEC, have drawn persistent opposition from certain quarters in the real estate service sector. Giving due recognition to the validity and legality thereof, the PhilRES National Directorate, at its meeting held on November 12, 2013, unanimously adopted Resolution No. FAIPO-1213-143 to amend anew its present Bylaws.
The much criticized PhilRES Bylaws were, therefore, subjected to a thorough review in several dialogues with stakeholders. Even the outspoken critics of PhilRES were consulted. The amendment effort has resulted in the trimming and compression of the original ponderous document. Certain provisions that tended to promote divisiveness and conflict rather than goodwill and amity among current and potential members have been expunged or completely revised.
The thorough review of the PhilRES Bylaws that were originally approved by the regulatory agencies has uncovered a number of factors that made it unnecessarily difficult and complex to ratify needed amendments to the By-Laws and establish election rules that are just and fair but practical and easy to implement.
We have considered it our obligation to correct these structural impediments to the smooth and unfettered operation and growth of PhilRES now and in the future.
On this and other matters, we have sought appropriate legal advice on our position. We are sparing no effort to ensure that our plans to obtain ratification of all needed amendments and prepare for the proper conduct of our national election in the not too distant future both stand on solid legal and ethical grounds.
We look forward to the favorable acceptance and approval of the second PhilRES Amended Bylaws by PRBRES and PRC before these are formally registered with the SEC. Thereafter, PhilRES will then be ready to prepare to elect its new set of officers.
We wish to point out that, as records will bear out, this election had actually been scheduled at least six times earlier on the basis of the original Bylaws. Each time, official intervention from the PRBRES and PRC prevented the holding of the election. At every instance, and in the interest of the real estate service professionals, PhilRES graciously displayed cooperation and obedience to the PRBRES and PRC
Ironically, these setbacks seem to have provided a convenient excuse to the oppositors from the ranks of the real estate service professionals to resurrect the issue on the interpretation of Section 34 of RA 9646 vis-à-vis Section 3(h) of the Implementing Rules and Regulations (IRR) of the said law.
These oppositors continue to defy House Resolution No. 299 adopted on October 17, 2012 by the House of Representatives in the 15th Congress of the Philippines which gave credence to the arguments raised by PRC in its Position Paper, that only a natural person can be a real estate service practitioner who can meet the prerequisites for licensure examination under Section 14 of the said law.
It is amplified in the said resolution that the AIPO cannot be an umbrella organization of all existing real estate associations in view of its fundamental difference in personality and governing bylaws which may cause conflict and create confusion rather than facilitate regulation by the State as declared in the policy of the RESA law.
Notwithstanding the stubborn opposition by some stakeholders to the official PRC position and the Congressional clarification on this policy matter, PhilRES has patiently affirmed its general preference for friendly dialogue even on clashing organizational positions rather than adversarial legal actions.
Recognizing, however, the need to uphold the truth and officially promulgated policy against the continuing misinformation and sometimes vicious challenges by our oppositors, PhilRES has also engaged a reputable and experienced legal counsel to help ensure the integrity of the PhilRES position on any legal issue brought before it.
Should there be a need for further clarification on any or all parts of this report, we shall be glad to personally meet with you at our mutual convenience.
God bless and more power!
Very truly yours,
RODOLFO G. VALENCIA
National President
Enclosures:
(01) PRC Position Paper on RA 9646 and its IRR dated March 26, 2012
(02) House Resolution No. 299 adopted on 17 October 2012
(03) PRBRES Resolution No. 19, Series of 2011 adopted on 21 October 2011
(Recognition and Accreditation of PhilRES as the AIPO)
(04) Memorandum of PRBRES Chairman Eduardo G. Ong dated 11 January 2013
(Delisting the Certificate of Membership in Good Standing from the AIPO among the Requirements for Renewal of License of Real Estate Practitioners)
(05) RGV letter to PhilRES General Membership dated 28 August 2013
(Acceptance of the position as PhilRES National President)
(06) RGV letter to PRC Chairperson Teresita R. Manzala dated 23 September 2013
(07) RGV letter to PhilRES Chapter Presidents dated 18 October 2013
(08) RGV letter to PRBRES dated 11 November 2013
(PhilRES & PARA-PAREB Comparative Election and Membership Framework)
(09) RGV confidential letter to PRC Chairperson Manzala dated 14 November 2013
(10) Justice Edilberto G. Sandoval demand letter to PRC dated 26 December 2013
(11) Memorandum of PRC Chairperson Manzala dated January 11, 2014
(Requirements for Renewal of License of Real Estate Practitioners)
(12) RGV letter to PhilRES General Membership dated 17 February 2014
(Invitation to the First PhilRES General Membership Assembly)
(13) PhilRES National President’s Report dated 27 February 2014
(First PhilRES General Membership Meeting)
(14) RGV letter to PRC Chairperson Manzala dated 07 March 2014
(Acknowledgment on the Re-Affirmation of Resolution No. 19)
(15) Atty. Joselito S.D. Generoso letter to the Solicitor General dated 7 April 2014
(Quo Warranto Process to Remove Usurpers Sitting in the Board of PRBRES)
(16) RGV letter to PRC Chairperson Manzala dated 08 April 2014
(Update on the Amendment of PhilRES Amended By-Laws)
(17) RGV Speech during Investiture of PhilRES Isabela Chapter on 25 April 2014
(18) RGV Speech during PAMAS Regional Conference (Baguio City) on 17 June 2014
(19) PhilRES National President’s Report during AIPO Leaders’ Summit held at the World Trade Center, Pasay City on 05 September 2014