Guidelines Implementing the Pag-IBIG Fund Real Estate Broker's Accreditation Program

January 19, 2017

HDMF CIRCULAR NO. 372-17

 

Pursuant to the approval of the Pag-IBIG Fund Board of Trustees, the "Guidelines Implementing the Pag-IBIG Fund Real Estate Broker's (REB) Accreditation Program" is hereby issued:

I. OBJECTIVE

This REB's Accreditation Program aims to achieve the following objectives:

1. To encourage participation of eligible REBs in the disposal of Pag-IBIG Fund Real and Other Properties Acquired (ROPA);

2. To establish accreditation and performance evaluation criteria for selecting, pooling and retaining eligible REBs;

3. To accredit eligible REBs and provide them with corresponding commission for the sale of Pag-IBIG Fund ROPA;

4. To establish and strengthen the partnership between the Fund and REBs in the implementation of the various Pag-IBIG Fund housing programs; and

5. To immediately dispose of and to institute faster financial recovery from Pag-IBIG Fund non-performing assets through disposal of ROPA.

II. COVERAGE

This Guidelines shall provide the terms and conditions in the accreditation and retention of able REBs for the disposal of the Pag-IBIG Fund's ROPA.

III. DEFINITION OF TERMS

In this Guidelines, the following terms shall, unless the context suggest otherwise, have the following meanings:

1. Accredited and Integrated Professional Organization (AIPO) — refers to the national integrated organization of natural persons duly registered and licensed as Real Estate Service Practitioners approved by the Professional Regulation Commission (Rule I, Section 3.h, IRR of R.A. 9646).

2. Accredited Real Estate Broker — refers to a natural person duly registered and licensed as Real Estate Service Practitioners approved by the Professional Regulations Commission, who have undergone evaluation and was given authority by Pag-IBIG Fund to offer, advertise, solicit, list, promote, mediate, negotiate or effect the meeting of the minds on the sale of its acquired assets.

3. As Is, Where is Basis — refers to the manner by which the buyer accepts the physical condition of the subject property including whether it is occupied or not.

4. Bulk sale — refers to the sale of more than one acquired asset with aggregate appraised value of at least Ten Million Pesos (P10,000,000.00) in one transaction.

5. Commission — refers to the amount given to the accredited broker of the Fund in the sale of its ROPA.

6. Conflict of Interest — is defined as any situation in which a REB has a personal relationship or a financial or other interest that could interfere with his/her obligation to act solely in the best interest of the Fund, or when he/she uses his/her position as accredited REB of the Fund for personal gain.

7. Exclusive Authority — refers to the specific authority granted by Pag-IBIG Fund to its accredited REBs under single assignment to market and offer for sale the acquired assets assigned to them within the prescribed holding period.

8. First Come, First Serve Basis — refers to a service policy in the sale of Pag-IBIG Fund's ROPA where buyers are attended to in the order that they arrived, without biases or preferences.

9. Good Track Record — refers to the track record of an accredited REB at least two (2) years prior to the date of application for single assignment, as evidenced by its past and current dealings with other financial institutions/banks/developers and the Fund relative to marketing of real estate properties. Such accredited REB must have disposed at least sixteen (16) units/month in a given period and has not been delisted/blacklisted by the institutions/banks/developers it has dealt with.

10. Mode of Payment — refers to the manner by which the buyer shall pay the property that is in cash, short-term installment or through long-term installment.

11. Net Selling Price — refers to the appraised value of the subject property less applicable discount based on the prevailing guidelines on the disposal of the Fund's ROPA.

12. Non-Exclusive Authority — refers to the general authority granted by Pag-IBIG Fund to its accredited REBs to market and offer for sale its ROPA (exclusive of acquired assets under single assignment) without assigning specific property/ies to a REB.

13. Real Estate Broker — refers to 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, list, promote, mediate, 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 (Article I, Section 3.G.4 of R.A. 9646). CAIHTE

14. Real and Other Properties Acquired (ROPA) — refers to all properties acquired by the Fund by virtue of cancellation of Contract-to-Sell (CTS)/Deed of Conditional Sale (DCS), voluntary surrender of property that is subject of a CTS/DCS, Dacion en Pago or foreclosure of Real Estate Mortgage.

15. Sales Agent — refers to a 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 of Real Estate Service for in expectation of a share in the commission, professional fee, compensation or other valuable consideration (Article I, Section 3.G.5 of R.A. 9646).

16. Selling Price — refers to the appraised value of the subject property.

17. Single Assignment — refers to the assignment of multiple acquired assets to an accredited and eligible REB who will have exclusive authority to market and offer for sale the identified Pag-IBIG Fund ROPA within the prescribed holding period.

18. Type of Sale — refers to the manner of the disposal of property either that is retail or bulk sale.

19. Unethical or Unprofessional Conduct — refers to any act or behavior that violates the professional standards set under Republic Act No. 9646, otherwise known as the "Real Estate Service Act of the Philippines," and its Implementing Rules and Regulations.

IV. ACCREDITATION

1. An individual REB, or a juridical entity represented by a licensed REB may apply for accreditation as Real Estate Broker subject to the eligibility criteria set by the Fund.

2. For an individual REB, the following are the criteria for accreditation:

2.1 Must be a Filipino Citizen;

2.2 Must have passed the Licensure Examination required under Rule III, Section 12 of R.A. 9646;

2.3 Must be covered by a Professional Indemnity Insurance/Cash or Surety Bond as required under Rule IV, Section 26 of the IRR of R.A. 9646;

2.4 Must be registered with Housing and Land Use Regulatory Board in accordance with Sections 11 and 12 of P.D. 957;

2.5 Shall maintain a principal place of business and shall conspicuously display therein the original and/or certified true copies of his/her certificate of registration and professional identification card as required under Rule IV, Section 33 of R.A. 9646;

2.6 Must be an active Pag-IBIG Fund member or member-employer;

2.7 Must be an active member of an Accredited and Integrated Professional Organization (AIPO) recognized by the PRC;

2.8 Must show proof of latest payment of Professional Tax;

2.9 Must not have violated the Code of Ethics and Responsibilities for Real Estate Practitioners; and

2.10 Must certify that, to the best of his knowledge and belief, there are no facts and circumstances which would give rise to a conflict of interest to Pag-IBIG Fund as an entity, to Pag-IBIG Fund officers or employees, any relative of a Pag-IBIG Fund employee or officer within second (2nd) civil degree of affinity and/or consanguinity; and, disclose if such conflict of interest appears at any given time.

3. For a juridical entity, the following are the criteria for accreditation as REB: aScITE

3.1 Must be limited to partnerships and corporations only;

3.2 Must be compliant with the nationality and ownership requirements prescribed under the Constitution and other applicable laws and issuances;

3.3 Must be duly registered as a juridical entity with the Securities and Exchange Commission (SEC) as required under Rule IV, Section 32 of the IRR of R.A. 9646;

3.4 The persons authorized by the partnership/corporation to do transaction with Pag-IBIG Fund are duly registered and licensed real estate brokers as required under Rule IV, Section 32 of the IRR of R.A. 9646;

3.5 The persons authorized by the partnership/corporation to do transaction with the Pag-IBIG Fund are duly registered with the Housing and Land Use Regulatory Board in accordance with Sections 11 and 12 of P.D. 957;

3.6 The representative must be duly authorized by the corporation or partnership;

3.7 The partnership/corporation shall regularly submit a list of its Real Estate Brokers to the Professional Regulations Commission and to the SEC as part of its annual reportorial requirements, as required under Rule IV, Section 32 of the IRR of R.A. 9646;

3.8 Divisions or departments of partnerships and corporation engaged in marketing or selling any real estate development project in the regular course of business must be headed by full time registered and licensed real estate brokers, as required under Rule IV, Section 32 of the IRR of R.A. 9646;

3.9 The corporation/partnership has all the required business permits and licenses to operate the business; and

3.10 The partnership/corporation must certify that, to the best of their knowledge and belief, there are no facts and circumstances which would give rise to a conflict of interest to Pag-IBIG Fund as an entity, to Pag-IBIG Fund officers or employees, any relative of a Pag-IBIG Fund employee or officer within second (2nd) civil degree of affinity and/or consanguinity; and, disclose if such conflict of interest appears at any given time.

4. For an accredited REB who will apply for single assignment, the Fund shall evaluate and use the following additional criteria for eligibility:

4.1 Good track record; and/or

4.2 Minimum of five (5) licensed brokers juridical entity.

V. MECHANICS

1. Interested REBs shall attend a briefing on the Pag-IBIG Fund ROPA disposal program prior to the submission of their applications.

2. The interested broker shall submit his/her application for accreditation together with the documentary requirements to Pag-IBIG Fund for evaluation and processing. Only complete documents shall be accepted by the Fund.

3. The Fund shall issue a Certificate of Accreditation to qualified REBs, granting authority to market and offer for sale on a 'non-exclusive' authority, 'as is, where is', 'first come, first serve' and 'first to register' basis on the available ROPA inventories of the Fund.

4. The Certificate of Accreditation shall be valid for two (2) years from the date of its issuance. Renewal of accreditation shall be made within the month prior to the expiration of the Certificate of Accreditation.

5. Holding Period

5.1 Acquired assets that will be endorsed for single assignment shall have a holding period of six (6) months, reckoned from the date of issuance of the list of properties for disposal under single assignment. Extension of the holding period shall be on a case-to-case basis subject to the approval of appropriate signing/approving authority.

5.2 However, if after the expiration of the holding period, the REB has an acquired asset with pending transaction, said REB shall be given a maximum period of thirty (30) calendar days to finalize/complete the sale of the acquired asset. Failure of the REB to finalize/complete the sale of the acquired asset within the said period shall cause the Fund to take over the said transaction.

6. The Fund shall evaluate the performance of its accredited REB annually. In case of REBs under single assignment, evaluation shall take place at the end of the holding period or its extension, if any. Said evaluation shall be in accordance with Section IX. 1 of this Guidelines.

7. The Fund shall allow disposal of its acquired assets through accredited REBs only upon exhausting all the disposal processes under the prevailing guidelines on the disposal of the Fund's ROPA.

VI. ROLE OF Pag-IBIG FUND

1. The Fund shall accredit REBs based on the eligibility requirements set forth in this Guidelines.

2. The Fund shall compensate accredited REBs, in the form of commission, for facilitating the sale of the Fund's ROPA.

3. The Fund may likewise extend assistance to REBs, upon request, in determining the status of the particular acquired assets.

4. The Fund shall update the accredited REBs with its latest policies and programs on the disposal of ROPA, whenever necessary.

VII. ROLE OF AN ACCREDITED REB

The Pag-IBIG Fund accredited REBs, including its/his agents/sub-agents, shall undertake the following duties and responsibilities:

1. Market and offer for sale the Fund's ROPA based on their selling prices on a 'non-exclusive' authority, 'as is, where is', 'first come, first serve', and 'first to register' basis. This may include conduct of housing fairs in various areas/subdivisions and other related activities.

 REBs under single assignment shall market and offer for sale the Fund's ROPA based on their selling price on an 'exclusive' authority and 'as is, where is' basis.

2. Inform the prospective buyers of the Fund's terms and conditions of the sale.

3. Assist the buyers in complying with the documentary requirements. The buyer is given thirty (30) calendar days from submission of Offer to Purchase and payment of reservation fee to comply with the terms and conditions of the chosen mode of payment.

4. Require the buyer or his authorized representative to appear and to pay the reservation fee, down payment, incidental and other miscellaneous fees directly to the Fund.

5. Disclose to buyers necessary information about the subject ROPA for sale which include but not limited to:

5.1 Selling Price

5.2 Applicable Discount

5.3 Location of the Property

6. Provide the Fund with the list of its/his authorized brokers/sales agents.

VIII. BROKER'S COMMISSION

1. The accredited REB shall be given commission on the sale of acquired asset based on the following schedule:

 

Mode of Disposal	Mode of Payment	Broker's Commission
Retail Sale	Cash/Short-Term Installment 1	6% of the Selling Price of the Subject Property
Long-Term Installment	6% of the Net Selling Price of the Subject Property
Bulk Sale	Cash/Short-Term Installment 1	5% of the total Selling Price of the Subject Properties

1 More than 30 calendar days up to 24 months installment period.

 

For Cash/Short-Term Installment payment, the commission of the REB shall form part of the discount to the buyer.

2. Schedule for Release of Commission

2.1 One time release of full commission to the accredited REB shall be made based on the following schedule:

 

Type of Sale	Mode of Payment	When to Release Commission
Retail Sale	Cash/Short-Term Installment 1	Payment of at least 30% of the selling price
Long-Term Installment	Loan takeout
Bulk Sale	Cash/Short-Term Installment 1	Payment of at least 30% of the selling price

1 More than 30 calendar days up to 24 months installment period.

 

2.2 Commission for sales as of the last business day of the current month shall be released on the following month.

3. The commission shall be made payable in the name of the accredited REB.

4. In the following circumstances, the real estate brokers shall not be entitled to commission: HEITAD

4.1 If the broker has no authority to sell from Pag-IBIG Fund;

4.2 In case of negotiated sale to any of the following:

4.2.1 A government institution;

4.2.2 A Pag-IBIG Fund employee, or his relative within the second civil degree of consanguinity or affinity; or

4.2.3 Former owner(s) of the subject ROPA to whom invitation to purchase were previously issued but failed to purchase the same within the prescribed period.

4.3 If the broker violated the Terms and Conditions of the program.

IX. PERFORMANCE EVALUATION

1. REBs' performance shall be evaluated based on the following:

 

Transaction Type	Basis of Performance Evaluation
Retail	At least twelve (12) units disposed during the covered evaluation period
Single Assignment	Disposed at least fifty percent (50%) of the total number of assigned units, but shall in no case be less than the required monthly average of sixteen (16) units disposed during the covered holding period including its extension, if any.

 

Any REB who disposed less than the required number of units during the covered evaluation period shall be recommended by the department/group handling the performance evaluation of accredited REBs for delisting from the Fund's roster of accredited REBs subject to the approval of the appropriate signing/approving authority involved in the disposal of the Fund's acquired assets.

Accordingly, REBs under single assignment who disposed below fifty percent (50%) of the total assigned units and less than the required monthly average of sixteen (16) units disposed during the covered holding period or its extension, if any, shall be recommended by the department/group handling the performance evaluation of accredited REBs for delisting from the Fund's roster of accredited REBs eligible for single assignment subject to the approval of the appropriate signing/approving authority involved in the disposal of the Fund's acquired assets.

2. REBs delisted from the Fund's roster of accredited REBs may apply for reaccreditation subject to the following:

2.1 The reaccreditation of REB shall be subject to the prevailing evaluation criteria upon application;

2.2 The REB may apply for reaccreditation one (1) year after the date of cancellation of his accreditation with the Fund;

2.3 The reaccreditation shall only be allowed if the reason for delisting the REB is due to unfavorable performance evaluation result. As such, if the reason for the cancellation of REB's accreditation is due to any of the grounds enumerated under Section X Item No. 1 of this Guidelines, the said application shall be denied.

3. An entity that was delisted from the Fund's roster of accredited REBs under single assignment may only transact under retail sale thereafter. The said entity may reapply under single assignment after three (3) months from the issuance of the notice of delisting and upon compliance of the required average number of units disposed per month (i.e., 16 units).

4. In case the accredited REB, whether retail or under single assignment, has not sold any unit for three (3) consecutive months, he shall be subject to the following sanctions without prejudice to additional disciplinary sanctions deemed appropriate by the Fund:

4.1 1st Violation — Suspension for one (1) month

4.2 2nd Violation — Revocation of REB's accreditation

X. CANCELLATION OF ACCREDITATION

1. The accreditation of a REB shall be cancelled under any of the following grounds:

1.1 Malpractice or violation of any provision of the terms and conditions of the accreditation;

1.2 Misrepresentation or fraud as to the authenticity of the documents submitted to the Fund;

1.3 If the REB lease out the ROPA to any person or entity;

1.4 Appropriating the subject property for himself;

1.5 Collection of any amount or sum of money from the prospective/interested buyers relative to the sale of the Fund's ROPA;

1.6 Allowing another person to use his Certificate of Accreditation;

1.7 Unethical or unprofessional conduct as to its dealings with the Fund or Fund members; aDSIHc

1.8 Commission of a crime involving moral turpitude;

1.9 Revocation of his PRC license as a REB or expiration of his registration with HLURB as REB;

1.10 Any other acts and circumstances of similar nature and analogous to those above mentioned/enumerated.

2. The accredited REB and/or entity shall be liable for any acts of its sales agents. The commission by the sales agent of any of the prohibited acts mentioned in the immediately preceding section shall also serve as a ground for the cancellation of the accreditation of the REB and/or entity.

3. Pag-IBIG Fund shall automatically cancel the accreditation upon confirmation of violation of the rules provided in this Guidelines and the related prevailing policies on the sale and disposal of the Fund's ROPA.

4. The Fund shall report all its accredited REB, including its sales agents, who committed any of the foregoing violations (except for Item No. 1.9 herein) to the AIPO for their appropriate action, without prejudice to any disciplinary actions that the PRC may impose upon the recommendation of the Professional Regulatory Board of Real Estate Service (PRBRES) and to any legal actions that Pag-IBIG Fund may take against the concerned REB.

XI. RENEWAL OF ACCREDITATION

1. The accredited REB shall be required to renew his accreditation with the Fund and submit the required documents within the month prior to the expiration of his accreditation with the Fund.

2. The Fund shall assess the accredited REB based on the following parameters:

2.1 Non-commission of any prohibited act as stipulated in Section X. Item Nos. 1 and 2 hereof; and

2.2 Performance Evaluation Result.

XII. OTHER PROVISIONS

1. For accredited REBs with one (1) or more authorized brokers/sales agent registered with the Fund, the name of the accredited REB (individual or entity) shall be indicated in the reservation form upon submission of the documentary requirements to the Fund.

2. After the expiration of the REB's accreditation and there exist pending and unfinished disposal transactions, the REB is given fifteen (15) calendar days to finalize/complete the sale of the acquired asset/s. Otherwise, the Fund shall take over and assume the disposal of the pending and other unsold acquired assets.

3. All Fund ROPA inventories available for sale shall be disposed of on a 'non-exclusive' authority, 'as is, where is', 'first come, first serve' and 'first to register' basis, except those acquired assets for single assignment agreement.

 The accredited REB under single assignment may sell the Fund's ROPA under bulk sale or retail sale pursuant to the prevailing Guidelines on the Disposal of ROPA.

4. If the REB's accreditation is cancelled due to any reasons stated under Section X, Item No. 1 of this Guidelines, the Fund shall take over and finalize/complete the sale of the acquired assets. The broker shall no longer be entitled to the corresponding commission.

5. If a buyer transacts directly to the Fund and is interested to purchase a property enrolled under single assignment, the Fund shall accept and process the buyer's offer to purchase subject to the prevailing guidelines on the disposal of the Fund's ROPA. The foregoing transaction however shall be considered in the broker's performance evaluation and computation of corresponding commission thereof depending on the chosen mode of payment of the buyer. The commission of the REB and corresponding discount to the buyer shall be in accordance to Section VIII Item No. 1 of this guidelines.

XIII. RESOLUTION OF ISSUES

Any issue in the interpretation and implementation of these guidelines shall, as much as possible, be resolved by the concerned officer. Matters that are not thereby satisfactorily resolved shall be escalated to the next higher approving authorities.

XIV. EFFECTIVITY

This Guidelines shall take effect upon this issuance. ETHIDa

Makati City, January 19, 2017.

 

(SGD.) ATTY. DARLENE MARIE B. BERBERABEChief Executive Officer

Published in the Official Gazette, Vol. 113, No. 23, Page 4255 on June 5, 2017.