Property buyers warned about ‘colorum’ agents

CEBU, Philippines —  The Philippine Association of Real Estate Boards Inc.- Cebu Real Estate Board (PAREB-CEREB) warned property buyers of the proliferation of unlicensed or “colorum” sales agents, and calls on public to be vigilant.

PAREB-CEREB 2022 president Marianne Avenido-Neri, together with past president/adviser Marilou Cañizares, cautioned that there’s a risk in acquiring or selling real properties if they do so through unlicensed sales agents.

“There’s a risk if you deal with unlicensed agents, such as double sale or even triple sale, which meant that the property was already sold and then offered for sale again to other buyers,” Neri and Cañizares warned.

The organization will tackle on this crucial issue during the 2nd General Membership Meeting, Induction of the New Board of Director and 62nd anniversary celebration slated on March 31, 2022 via zoom.

The group expects to gather 80 to 100 members to join on the said event, where in the group’s thrust and programs during the year will be presented, as well as it plans to intensify the fight against existence of unlicensed real estate agents.

The promotion of ethical practices and professionalism among realtors and real estate salespersons will be given utmost focus this year, she added.

Both Neri and Cañizares stressed the importance of professional and ethical standards as a protection for both the buyers and sellers of the real estate properties.

During the said event, guest speaker Atty. Jovencio Cainong, PAREB Senior Vice President, will focus on PAREB Bantay Colorum, which he chairs. He will be introduced by Ms. Daisy Kokseng, PAREB-CEREB past president and PAREB past national president.

Neri explained that PAREB-CEREB has been involved in the Bantay Colorum campaign before the pandemic, saying “the main mission is to revisit, realign ourselves with the purpose of really registering and accrediting, to do the professional way of venturing into real estate,” she said.

According to Neri, there are now persons who are not accredited as required by law who are involved in real estate transactions.

“It’s very serious now especially there are unlicensed agents who are practicing real estate services,” she noted.

Section 29 of Republic Act 9646 or the Real Estate Service Act (RESA) prohibits the unauthorized practice of real estate service.

Only those who passed the licensure examination given by the Philippine Regulatory Board of Real Estate Service (BRES) of the Professional Regulation Commission (PRC) are allowed to provide real estate service.

They are then issued by PRBRES and PRC valid certificates of registration, and professional identification card or a valid special/temporary permit.

Cañizares also disclosed that some foreigners are now engaged in real estate transactions by using lawyers and real estate brokers although they are not allowed to do so.

Cañizares explained that under Section 24 of the RESA Law on Foreign Reciprocity, a foreign national can only be issued accreditation to practice the real estate profession in the Philippines if his/her country of origin allows Filipinos to engage in the real estate trade.

“These foreign nationals are able to do so because they are condoned by some real estate brokers,” noted  Cañizares adding that some Koreans and Japanese are doing real estate transactions with their countrymen but coursing these through some real estate brokers.

“It can cost you (real estate brokers) your license. It’s very specific in the law that brokers fee should never be shared with non-accredited real estate agents,” Cañizares added.

Both Neri and Cañizares prefer to address this concern through creating awareness among the public and re-educating their fellow real estate practitioners about the importance of following the RESA law.

They also urged those who would like to engage in real estate transactions to undergo required trainings to be accredited.