As we (Jimmy Jr. and Michelle) talk to the attendant of one of the Computer Shop & Printing Press in the city asking whether they produce dry deal, another customer heard us what we are asking. The said shop & printing press does not produce dry seal so the customer (in his late 30’s) who heard us recommends another printing press which produces such. Our conversation with the customer went on until such he asked where we will use the dry seal. “We will use it in our appraisal and realty services,” we answered back. “Are you licensed brokers?” he continues. “Yes, both we are. Also, both licensed real estate appraiser where we definitely use the dry seal,” we replied. He responded with astonishment, “You are still young yet you do such professions. (Well, it is not just him whom we heard such thing.) I also took the Board Exam for Real Estate Broker but unfortunately, did not make it. I have deals also with prospective buyers before but did not close the sale. I was dejected so I would not take the exam anymore to become licensed. I already accepted, it is not the line of my passion and which, not a profession apt to me is. Like this computer shop and printing press owned by my former teacher, this kind of business is what they are well-matched at.” We asked him, “Where do you work, sir?” He replied, “I used to work in an office. Now, I am with house construction. I realized, if I work in an office, I work 8 hours a day with a fixed monthly salary. That’s all. FIXED. For example, if I am receiving 10,000Php as monthly salary, it is only limited until there; until 10,000Php only. In contrast with where I am working now, I have a flexible time and earn much more than that.” Our conversation went along until we separated ways.
For the information of some if not all, what is real estate? What is real property? We often hear these. Real Estate shall refer 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 while Real property includes all the rights, interests and benefits related to the ownership of real estate.
Real Estate Practitioners as defined by Real Estate Service Act (RESA) shall refer to the following: Real Estate Consultant, Real Estate Appraiser, Real Estate Assessor and Government Appraiser, Real Estate Broker, and Real Estate Salesperson. But for now, we will distillate on Real Estate Broker, Real Estate Salesperson, and Real Estate Dealer. Seems the three terms are the same. How do they differ from each other?
As well-defined, Real Estate Broker is 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, promote, meditate, 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. On the other hand, Real Estate Salesperson is defined as duly accredited natural person who performs service for, and in behalf of, a real estate broker who is registered and licensed by the Professional Regulatory Board Service (PRBRES) for or in expectation of a share in the commission, professional fee, compensation or other valuable consideration.
How about Real Estate Dealer? Real Estate Dealer is any person, natural or juridical, who is engaged in the trade of selling buying or leasing his own real properties or interests therein, using his own funds and with the purpose of realizing profit. Just take note that Real Estate Dealers are not covered in the licensing requirements under RESA.
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(The writers are both Investment Adviser and Advocate of Personal Finance. They are engaged in Stock Market Investing. Also, they are active Licensed Real Estate Practitioners. For financial planning and speaking engagements, you may contact them with CP # 0919-376-2922 or Tel. No. (074) 244-4026).
