As the dawn approaches, with new trade and professional agreements brought about by the integration of the ASEAN Professional practice, we in the Real Estate Service will experience a change in the road map of our profession.
However, this will bring about business opportunities; due to trade agreements of APEC come this 2015. Therefore, I strongly advise that our Real Estate Practitioners consider forming Corporations or Partnerships.
Sec. 32 of the Real Estate Service Act (9646) provides the necessary legal guidelines and framework in the professional practice of real estate service, under a juridical personality.
The advantage of being registered with the Security and Exchange Commission (SEC) will enhance the personality, character and best practice compliance of real estate service.
After all the necessary prudent, diligent and meticulous selection and choice of partners and / or professional real estate practitioners as incorporators; I suggest the need to have on board experts in corporate law, finance, and CPA’s.
Just last May 18, 2013, I attended my third seminar for this year with the Center for Global Best Practices. This way I get to advance in my education and learn from experts on how to enhance global competitiveness through best practices.
Just like in real estate, we often look into the highest and best use of the property, to get optimal value, returns and worth. So, in the same manner, our profession needs to develop and gain prestige with proper training and education.
Thanks to the Founder of the Center for Global Best Practices, Mr. Henry B. Aquende. I am motivated to invest time, effort, money and study in learning new ideas, skills and advancing in knowledge of business , real estate and its allied disciplines , such as law, accounting, management, and the like.
Our first speaker, the very talented expert on Corporate Governance, was Atty. Justina Fernandez- Callangan. She is the Director for Corporate Finance of the Security and Exchange Commission.
In her about six hour extensive lecture, of about 67 slides, during the morning session and another 28 slides in the afternoon class, Atty. Callangan, in a simple yet brilliant manner, shared deep insights about Corporate Governance and the ASEAN scorecard, were we in the Real Estate Practice need to be familiar with.
Filipino Professionals and we Real Estate Practitioners have to urgently shape up, raise the bar of our Standards of Practice and take very seriously the competition that we face with the ASEAN integration.
We are required by the Real Estate Service Act, to be globally competitive, whose standards of practice are at par with international best practice, code of ethics , responsibilities and conduct.
In the corporate practice of real estate service, it is imperative, to adhere to the practice of Corporate Governance. This is the framework from which the rules, systems and procedures of the corporation are governed. (Slide 2, Atty. Callangan)
Corporate Governance is the best guide to check on the performance of the Board and Management, and their respective Duties and Responsibilities to the stockholders, stakeholders , clients , the government and the public in general.
This is the main reason why, the Professional Board of Real Estate Service, will soon be coming out with a specific Resolution, Order and Directives on the Corporate Practice of the Real Estate Service, as stated Sec. 32, so as to be compliant with the Law, Republic Act, 9646.
The Professional Regulation Commission – Real Estate Service will start its implementation on the campaign against colorum practice of real estate brokerage, appraisal and consultancy. In Sec. 29, of the RESA Law, it clearly states the prohibition against the unauthorized practice of real estate service.
In the case of a violation, committed by a partnership, corporation or any other juridical person, the partners, president, directors and managers shall be held directly liable and responsible for the acts as principal or co- principal with the other participants, if any. (Sec. 39 , Article V, RA , 9646)
Noteworthy, outstanding and exemplary real estate practitioners who attended the seminar with me were husband and wife, Atty. Dennis Joseph D. Judan , and Mrs. Ma. Michelle Tibon-Judan, who were both one of the top placers in the real estate brokers and appraisal exams.
Atty. Judan and his wife practice Law and run a Real Estate corporation, Property Finder.
Atty. Judan is a graduate of the School of Law, Ateneo de Manila University, where he obtained a Juris Doctor degree in 1998 and was ranked 10th in his graduating class. He worked in the biggest law firm in the Philippines, SyCip Salazar Hernandez & Gatmaitan, where he specialized in the field of labor law, immigration law, litigation (civil, criminal and administrative) and maritime practice. His current practice also includes estate law, foreign investments, natural resources and other branches of corporate and commercial law, as well as immigration and labor law. He is also a licensed real estate broker, having garnered 6th place in the 2011 Board Examinations for Real Estate Brokers conducted by the Professional Regulation Commission (PRC). Aside from this he is also a licensed real estate appraiser, having garnered 5th place in the 2011 Board Examinations for Real Estate Appraisers conducted by the PRC. He is presently pursuing his Master’s Degree in Business Economics (MBE) at the University of Asia & the Pacific (UA&P).
Mrs. Judan is a Certified Public Accountant (CPA, cum laude), a holder of a Masters Degree in Finance (MSFin), and a lawyer (Ll.B). She finished her degrees in B.S. Business Administration and Accountancy (BAA), M.S. Finance and Bachelor of Laws at the University of the Philippines. After her stint at SyCip Gorres Velayo & Co., she was a faculty member of the College of Business Administration of the University of the Philippines for six (6) years. She has held various positions (in accounting, finance and marketing) for Arms Corporation of the Philippines and Squires Bingham Co., Inc.; was Vice-President for Comptrollership of Filinvest Land, Inc. and is presently the Chief Financial Officer of ACM Landholdings, Inc. She has very strong expertise in business, taxation law, accounting and management. She is also a licensed real estate broker, having garnered 8th place in the 2011 Board Examinations for Real Estate Brokers conducted by the Professional Regulation Commission (PRC). Aside from this she is also a licensed real estate appraiser, having garnered 6th place in the 2011 Board Examinations for Real Estate Appraisers conducted by PRC. She advises the Firm in estate planning and settlement, property law, as well as taxation matters.
There are many more professional real estate practitioners who I recommend and encourage forming corporations so as to prepare for global competition and to be at par with international best practice.
That way they my utilize their areas of specialization, expertise, talent and network, which will be indispensable for foreigners who are in need of local partners , so they too may benefit from the real estate boom in the Philippines.
This article is but the first part of a series on Best Practice and Governance, in the Practice of Corporate Real Estate Service. In the next article we shall look into the details of Corporate Governance and how we ought to prepare for the Market Integration of the ASEAN Capital Forum.