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Freeman Cebu Business

Is RESA Law anti-poor, anti-pinoy, anti-tech, anti-progress? (Part 1)

INVESTING ON THE GO - Iggy Go - The Freeman

Is RESA Law anti-poor, anti-pinoy, anti-tech? The question has been a hot issue in the real estate practitioners & industry lately. Although there’s a separate issue regarding this question and its relation to illegal or colorum practitioners, we will simply focus on answering the question.

A little history

The RESA Law brought to the limelight a segment of the real estate industry that was poorly monitored. From the perspective of the lawmakers, this legislation on real estate service has been long overdue. The intention is clear: to elevate the profession by ensuring that the practitioners are technically competent, responsible and respected professional real estate service practitioners.

The law is meant to prevent the practice of “colorum” agents and brokers. The said law will improve the tax collection system involving the brokers, appraisers and salespersons.

The uproar against RESA

The “Scholastic requirements” are deemed discriminatory for real estate brokers, moreover for the salespersons. A tertiary education is not a guarantee that you will be able to sell.

The argument is that this provision will deprive a lot of individuals the chance to partake in the economic benefits of real estate. Hence, anti-poor, anti-Filipino and the law being antiquated or so they say.

There is also a push to amend certain parts of the law and reducing licensing requirements is one of them.

Let's answer the questions

Is RESA Law anti-technology?

I don’t think so, there’s not even a mention of tech. As someone who has worked in the tech industry, here’s a simple analogy: If you automate inefficient processes, you increase the likelihood of an inefficient outcome – plain and simple.

Is RESA Law anti-poor and anti-Filipino?

NO. RESA is one of the major Consumer/Buyer Protection legislation. In fact, it is to protect all Filipinos, whether rich or poor.

The requirements are not there to filter the ‘poor’ but to uphold a standard capability. Real Estate practice is not simply about selling, but also includes ethics, economics, knowledge of the law, tax calculations, and environmental stewardship.

The current requirements are already quite reasonable, accessible or even more affordable compared to other professionals such as Engineers, CPAs, Medical Doctors & other specialists.

Why is it better to deal with licensed brokers?

Buying and selling real property is not like buying from or selling candy at the neighborhood sari-sari store. Definitely, given the amounts and legal processes and documents involved, I believe it is best to have a licensed professional on your side.

Not all lands can be sold. For example, Lands with ancestral domain, Forest Land and all lands of the public domain. An illegal broker/salesperson will not care or does not care to know this. A landowner may not know things about their own land title as well.

Why you should not work with unlicensed real estate professionals

Bogus property sales-persons do not have code of ethics, conducts and standards, otherwise they won’t be practicing real estate service illegally in the first place!

The law exist to protect you from scams, fraudulent and dubious practices such as: Misleading information, fake property titles, bogus real estate appraisals, phony property mortgage processing, forgery, tampered Extra-judicial settlement of property, miscalculation of taxes, fees, and many more!

Under the Republic Act 9646 (RESA Law), dealing with or by an unlicensed real estate agent is liable to be punished by a fine of Php200,000.00 to 100,000.00, 2 to 4 year imprisonment or both will be imposed. Accomplices of unlicensed real estate brokers and agents also face legal punishment.

RESA LAW
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