REAL ESTATE MANAGEMENT

• Land - Property purposed for business and

- Specifically refers to the earth itself. commercial activities.
- Comes with natural resources like water, - Restaurants, malls, offices, gas stations,
trees, and vegetation. grocery stores, theaters, etc.
- The characteristics of land revolve around • Residential Real Estate
its “indestructibility, immobility, and the - Property primarily used for residential
geographical uniqueness between each purposes.
parcel of land.” - Duplexes, multifamily residences, condos,
• Real Property etc.
- Refers to a parcel of land and “any additions
that are permanently attached to the land.”
- The owner of real property has “all of the REAL ESTATE MANAGEMENT
rights or ownership”, and the “right to
➢ utilized buying, selling and investments of
lease, enjoy, possess, and sell the land in
different real estates.
discussion.”
➢ Manage the daily operations of the rental
• Real Estate
property or portfolio of properties in behalf of
- Defined as land with any and every
the landlord.
permanent improvement or structure
(houses and lots for sale or buildings) that is
installed to such land, whether man-made
History
or natural.
- Classified as a “form of real property”. ➢ Started as simple agency in the purchase, sale,
- The changes or addition made to the land and lease exchange of the real estate
which affect the value of a property is called properties.
improvements; o These agents are called real estate
o Can range from installed houses, brokers.
roads, or sewage systems. ➢ With increasing demand of the services of
middlemen or agents, more people began to act
as go between among buyers, sellers, and
MAIN KINDS OF REAL ESTATES: lessees and other interested parties.
➢ Based on the Manual on the Philippine Real
• Special Purpose
Estate Fundamentals and Practices by Mr.
- Public property that inhabitants of the
Antonio Varias, founder and first President of
community use.
the Philippine Association of Real Estate Boards,
- schools, parks, libraries, cemeteries, places
Inc. (PAREB), the first tangible organized
of worship, etc.
brokerage activities started after the World War
• Land
1 when some American and other foreigners
- Vacant land and underdeveloped property.
were attracted to make some investment in the
- Agricultural lands such as forms, ranches,
Philippines including real estate.
etc.
o the pioneer in the real estate brokerage
• Industrial Real Estate in the Philippines was Mr. Colin M.
- Property purposed for “storage,
Hoskins. Sometime in 1920, he started
distribution, production and
to engage in real estate and became his
manufacturing”.
whole/full time job.
• Commercial Real Estate
 ➢ When the Bureau of Commerce was created or professional identification cards for the
under Act No. 2728 in 1918, on of its powers practice of real estate service;
and duties was to license and regulate exchange d. Monitor the conditions affecting the practice of
agents, merchandise and ship brokers and real estate service and adopt such measures as
interpreters but did not include real estate may be proper for the enhancement of the
brokers. profession and/or the maintenance of high
➢ On November 7, 1938, Mr. Hoskins invited a professional, ethical and technical standards;
group of real estate brokers and organized the e. Adopt a national Code of Ethics and
Manila Real Estate Brokers Association. Responsibilities to be strictly observed by all
o Later, other brokers in the provinces licensed real estate service practitioners;
also organized their group. f. Hear or investigate any violation of this Act, its
➢ After World War 2, there was a proliferation of implementing rules and regulations, and the
many agents or intermediaries acting as real Code of Ethics and Responsibilities for real
estate brokers without any license from the estate service practitioners.
Bureau of Commerce. g. Safeguard and protect legitimate and licensed
➢ Fifteen year later, in 1975, it was felt that there real estate service practitioners and, monitor all
is a need to update the rules and regulations. forms of advertisements, announcements,
o the Department Administrative Order signboards, billboards, pamphlets, brochures
No. 1-75, Series of 1975 was again and others of similar nature concerning real
promulgated, estate.
o in 1985 or ten years later, Ministry h. Prescribe, in cooperation with the Commission
Order (MO) No. 39, Series of 1985, was on Higher Education (CHED) or the concerned
issued to replace Department state university or college, the essential
Administrative Order No. 1-75. requirements as to the curricula and facilities of
➢ The passage of MO No. 39 started the schools, colleges or universities seeking
professionalization of the realty service permission to open academic courses or already
practice. offering such courses in real estate service, and
➢ In 1992, DTI’s Department Administrative Order to see to it that these requirements, including
(DAO) No. 97 created the Realty Service Council the employment of qualified faculty members,
of the Philippines (RESCOP). It mandated the are properly complied with;
RESCOP as the consultative body of the DTI
Laws under REM in ph.
under the following actions:
• R.A. No. 9646
“Real Estate Service Act of the Philippines”.
Professional Regulatory Board of Real Estate Services - An act regulating the practice of real estate
and Functions: service in the Ph.

a. Provide of the Board comprehensive policy

guidelines for the promotion and development
REAL ESTATE SERVICE PRACTITIONERS
of the real estate industry;
b. Conduct licensure examinations for the practice • Real Estate Consultant
of the real estate service profession and - offers or renders professional advice and
prescribe the appropriate, syllabi of the subjects judgment on:
for examination; o the acquisition, enhancement,
c. Issue, suspend, revoke or reinstate, after due preservation. utilization or
notice and hearing, certificates of registration disposition of lands or
improvements.
 o the conception, planning, • Good moral character and must not have been
management, and development of convicted of any crime involving moral
real estate projects. turpitude.
• Real Estate Appraiser
- offers to perform services in estimating and
arriving at an opinion of or acts as an expert Corporate Practice:
on real estate values.
• Authorization
- such services of which shall be finally
- Must be registered with the securities and
rendered by the preparation of the report
exchange commission (SEC).
in acceptable written form.
• Composition
• Real Estate Assessor
- At least 1 licensed real estate broker for
- works in a local government unit and
every 20 accredited salesperson.
performs appraisal and assessment of real
- Regularly submit a list of its real estate
properties.
service practitioners to the Commission and
- including plants, equipment, and
to the SEC as part of its annual reportorial
machineries. essentially for taxation.
requirements.
• Real Estate Broker
• Resignation
- acts as an agent of a party in a real estate
- Shall be reported to the Board within 15
transaction to offer advertise, solicit, list,
days from the date of effectivity of the
promote mediate, negotiate or effect the
resignation or termination.
meeting of the minds on the sale, purchase,
or other similar transactions on real estate
or any interest therein.
Professional Property Manager
• Real Estate Salesperson
- a real estate broker who is registered and Manages:
licensed by the Professional Regulatory
Board of Real Estate Service for or in • All aspects of their client’s properties, from
expectation of a share in the commission, screening prospective tenants to collecting rent.
professional fee, compensation, or other • All maintenance requests from the tenant and
valuable consideration. will hire the appropriate service to repair any
issues.
• Evictions and filling any paperwork associated
Qualification of Applicants for Examinations: with it or other gov’t programs.
• The one-stop shop for all of your landlord
• Citizen of the ph. needs.
• A holder of bachelor’s degree from a state
university or collage, or other educational
institution duly recognized by the CHED.

FILIPINO JOBS

• Worker • Employee
- Who works for an employer, whether under - Working under a contract of employment.
contract of employment, or any other • Self-employed
contract where an individual undertakes to - Do not have a contract of employment with
do personally any work or services. an employer.
History ➢ The increase rate of wholesaling industry job is
showing the minimum wages of the local
• 1987 – population 57M
workers.
- 20.8M workers employed
➢ The decreasing rate of agricultural occupations
• 2022 – population 102M, have nearly double
are representing low demand of agricultural
that, or 40M.
personel.
• 1987-2022
- Population grew 78% Common Issue:
- Domestic job generation grew by 92%
➢ Pandemic affected the economic status of the
- Unemployment rate from more than 9% to
country.
just 5.8% now
➢ Number of unemployed Filipino reach to 44M
- 419% increase of overseas Filipino workers
individuals from the highest paid job to the
from 449,000 to 2.33M.
lowest wages the opportunities are closed.
➢ Low local income and wages resulted of local
Based on latest labor and unemployment statistics, for employees to seek opportunities overseas.
every 100 employed Filipinos:
Development:
63 – earning wages and salaries
➢ 1.5M Filipinos joined force in June 2022 from
26 – self-employed the same month in 2021, bringing totak
employment to 46.6M.
3 – operating a business that employs others.
➢ Employment also grew across all sectors amidst
8 – unpaid family workers. the easing restrictions.
➢ In terms of hours of work, those who worked
➢ 10 years ago, the breakdown was 50, 33, 5 and for more than 40hours a week (full-time),
13. increased by 11% or an additional 3.0M
67 – works full time individuals,
o Part-time workers declined by 8% or
33 – works part time 1.4M.
➢ 10 years ago, the breakdown was 62 and 38. ➢ The proportion of employed persons working
less than 40hours in a week was estimated 9%
56 – works in services in July 2022.
27 – works in agriculture ➢ The Labor Force Participation (LFPR)
continuously remained higher among men at
17 – works in industrial jobs 76.4% in July 2022, than women at 53.9%
➢ 10 years ago, the breakdown was 48, 36 and 15. during the period.

Solutions:

Observation: ➢ Focusing on developing and improvement of

different local resources.
➢ Employment rate in August 2022 was estimated ➢ Training / education
94.7%. ➢ Technological development
➢ Higher than the recorded employment rate in ➢ Better management methods
the same period last year which was 91.9%. ➢ Reforming education system
➢ Consistent implementation of the labor code of
the ph.
 POVERTY IN THE PHILIPPINES

Poor – individuals and families whose income fall below • Workers in the formal sector and migrant
the poverty threshold and cannot afford in a sustained workers
manner to provide their minimum basic needs of life. • Youth and students
• Persons with disability
- R.A. No. 8425 “Social Reform and Poverty
• Victims of disasters and calamities
Alleviation Act”.
• Senior citizens
Poverty Incidence is Computed through: • Non-government organizations (NGOs)
1. Count of poor population divided by the total • Children
population. • Cooperatives
2. Two estimates needed for computation:
a. Per capital income – coming from the
family income and expenditure survey. ➢ 21.9M or 21.6% of Filipino are income poor
b. Poverty threshold – estimated cost to ➢ 12.6M or 49% of Filipino families are poor.
meet the minimum basic needs. ➢ Population: 113, 006, 665 (2022)
3. Minimum basic needs:
a. Min. food requirements – 2000
kilocalories per person. CAUSES OF POVERTY
b. Basic non-food expenditure (clothing
• Lack of Quality Education
and footwear, lighting and water,
- Families below poverty line cannot let their
housing maintenance, etc.)
children go to school.
10 Basic Needs of Filipinos: - 1 to 10 Filipino has never gone to school.
o 70% can read, write, compute
• Food and land reform o 30% who cannot.
• water - Learning poverty was already at 90.0% in
• shelter the pre-pandemic.
• work • High Unemployment Rate
• health - No job opportunities = no income.
• education - Vulnerable to poverty.
• social protection - 3.71M out of 47.70M were unemployed.
• healthy environment o Which resulted to the country’s
• peace unemployment rate at 7.8% in
• participation 2021.
• Low Salary Income
- The Ph is one of the worst countries to live
14 Basic Sectors: for minimum wage earners. (E-commerce
firm Picodi)
• Farmers and landless rural workers
• Episodes of Food Inflations Increase
• Artisan fisherfolk
- Damped the positive impact of economic
• Urban poor
growth on poverty.
• Indigenous cultural communities, indigenous
- Inflation in Ph continued to uptrend to 7.7%
people
in Oct. 2022, from 6.9% in Sep. 2022.
• Workers in the informal sector o Highest recorded inflation since
• Women Dec. 2008.
 • Failure to Manage Population Growth • Homelessness
- Larger family size is associated with higher - 4.5M homeless people, including children,
poverty incidence, gap and severity. which has a population total of 106M.
- Ph is among the world’s fastest urbanizing - Families end up homeless for many reasons,
countries and overcrowded cities. including:
o Some 47% of the population living o Poverty
urban areas. o Domestic violence
- Natural resources are slowly running out o Human trafficking
because of the increasing consumption rate. o Natural disasters
• Regular Shocks and Exposure to Risk • Illness
- Areas frequently hit by natural disasters - 4, 001, 625 conformed cases of Covid-19
may lead to poverty traps. with 64, 298 deaths as of Oct. 2022.
- Ranks 4th in the global climate risk index.
- 60% of the Ph population living in costal
areas, and sensitivity to the El Niño SOLUTIONS:
phenomenon.
• Greater Access to Healthcare
• Family Aid
• Build, Build, Build
EFFECTS OF POVERTY
• Economic Improvement
• Hunger • Greater Access to Education
- (Apr. 2022) 12.2% or 3.1M of Filipino
families experiences involuntary hunger.

HOUSING LAWS

• MACEDA LAW month grace period for every 1 year of

- “The Realty Installment Buyer Act.” installment payments made”.
- By senator Ernesto M. Maceda. - Seller must restore 50% of the cash
- Guaranteeing protection to real estate surrender value of the buyer’s payments, if
buyers on an installment basis. the contract is cancelled during the 5 years.
- Approved before martial law was declared. - After 5 years of installments, an extra 5% up
to 90% per year of the total payments
Provisions:
made, becomes payable.
- Section 3. Provides protection for the buyer
who has paid at least 2 years of
installments, he is entitled to the following LAWS AND EXECUTIVE ISSUANCES
rights if he fails to make further installment.
• R.A. No. 11201
Who is qualified? - “Department of Human Settlements and
Urban Development Act.”
- In accordance to the Section 3 of the law,
- Composed of physical components of
the gives him the right “to pay, without
shelter and infrastructure services to which
additional interest, the unpaid installments
the physical aspects offer support, such as
due within the total grace period earned by
community services;
him, which is hereby fixed at the rate of 1
o eg. Education, health, culture,
welfare, recreation and nutrition.
 - The process of occupying and using land or • R.A. No. 8501
space for activities necessary to carry out - “Penalty Condonation of 1998”
the functions of urban living, such as; - Act to rescue the national shelter program
o Residential, industrial, commercial, of the gov’t by condoning the penalties on
etc. all outstanding housing loan accounts.

• R.A. No. 9653 • R.A. No. 8368

- “Rent Control Act of 2009” - “Repeal of Presidential Decree No. 772
- Sum paid for the use of a residential unit (1997)”
and is typically paid on a monthly basis. - Entitled ‘Penalizing squatting and other
- Residential classified as a standalone home. similar acts.’

• R.A. No. 9507 • R.A. No. 8437

- “Socialized and Low-cost Housing Loan - “Rent Control Law (1997)”
Restructuring and Condonation Act of - Act further extending the rent control
2008” period for certain residential units
- Providing mechanisms, and for other amending thereby Batas Pambansa Blg.
purposes be it enacted by the senate and 877.
house of representatives of the Ph in o “Anc act providing for the
congress assembled. stabilization and regulation of
rentals of certain residential units,
• R.A. No. 9397 and for other purposes, as
- “Disposition of Lands for Socialized Housing amended.”
of 2006”
- National Housing Authority and Local Gov’t • R.A. No. 7835
Units must work together to develop and - CISFA (1994)
make available variety of alternative plans - Act providing comprehensive and
for the disposition of lands to the program’s integrated shelter and urban development
beneficiaries. financing program.
- NHA handling lands owned by the national
gov’t. • R.A. No. 7279
- LGU handling other lands located within - “Urban Development and Housing Act
respective localities. (1992)”
- These plans is restricted to those involving - Certain gov’t-owned properties may be sold
the transfer of ownership in fee simple. or used for socialized housing purposes
under the Lina Law.
• R.A. No. 9341 o R.A. No. 7279
- “Rent Control Act of 2005” o Urban Dev’t Housing Act of 1992.
- Establishing reforms in the regulation of o To alleviate the nation’s housing
rent certain residential units, providing the problem.
mechanism. - By Senator Jose “Joey” D.
- Establishes the framework for an extensive
The Corpus Juris
and ongoing program for housing and urban
- Reforms in the regulation of rent of certain dev’t.
residential units, providing the mechanisms.
Implementing rules and Regulations of RA. No. 7279: constituting the presidential commission for
mass housing (1999).
• Acquisition, Valuation and Disposition of Lands
- Section 10, 13, 12 E.O. No. 170
- To enable the equitable utilization of
- Establishing the revolving funds for housing
residential lands in urban areas with
projects of local gov’t units (1999).
particular attention to the needs of the
underprivileged and homeless and not
• E.O. No. 71
merely based on market forces.
- Devolving the powers of the housing and
• Balanced Housing Dev’t Requirement
land use regulatory board. (1993)
- Section 18
- To further increase the low-cost housing ADMINISTRATIVE ORDER
stock available to underprivileged families
• A.O. No. 44
and homebuyers.
- Streamlining the process of issuance of
- This was amended to include the residential
permits, certifications, clearances and
condominium projects in complying with
licenses for housing and resettlements
the balanced housing requirement.
projects.

MEMORANDUM CIRCULAR
EXECUTIVE ORDERS
• M.C. No. 87, Series of 2015
• E.O. No. 272 - Directing all national gov’t agencies and
- Authorizing the creation of the Social instrumentalities, including gov’t-owned or
Housing powers and functions of the controlled corporations.
National Home Mortgage Finance • M.C. No. 112, Series of 2006
Corporation to the Social Housing Finance - Housing fair for employees in the public
Corporation (2004) sector.

PROCLAMATION
• E.O. No. 105
- Approving and directing the • Proclamation No. 662
implementation of the program for - Declaring the month of October as the
“Provision of group home for neglected, national shelter month (1995)
abandoned, abused, detached and poor
PRESIDENTIAL DECREE
older persons and PWD” (2022)
• P.D. No. 957
• E.O. No. 20 - Regulating the sale of subdivision lots and
- Reaffirming mass housing as a centerpiece condominiums.
program in the poverty alleviation efforts of - Providing penalties for violation (1976)
the gov’t. (2001) • Presidential Act No. 46
- Making it punishable for public officials and
• E.O. No. 258 employees to receive, private persons to
- Prescribing time standards in the issuance give gifts on any occasion, including
of permits for housing projects (2000) Christmas (1972)
E.O. No. 159 • P.D. No. 749
- Granting immunity from presecution to
- Declaring mass housing as centerpiece givers of bribes and other gifts to their
program of the Estrada admin and accomplices in bribery (1975)
 • P.D. No. 1606 - Revising PD No. 1486 creating a special
- Amended by RA. No. 7975 and court to be known as “SANDIGANBAYAN”
RA No. 8249 and for other purposes.

PHILIPPINE ECONOMY

Economy - an area of the production, distribution, and • Secondary (Industrial)

trade, as well as consumption of goods and services. - Concerned with manufacturing.
- Taking materials from primary sector and
converting them into new products.
SECTORS OF ECONOMY - Eg. Car manufacturers, food production or
building companies.
• Private Sector
• Tertiary (Service)
- Type of organizations:
- Concerned with providing a service.
o Sole trader
- Eg. Hairdressers, banks, supermarkets or
o Partnership
cinemas.
o Private limited company
- Such as a local newsagent or large
supermarket chain are owned and
Government and the Economy
controlled by private individuals.
- Primary aim is to survive and make a profit. ➢ Economic conditions often inform the policy
• Public Sector changes that governments elect to enact.
- Type of organizations:
o National gov’t
o Local gov’t 6 Economic Functions of the Government:
- Owned and controlled by the gov’t.
- Maintain the legal and social framework
- Aim to provide a service to the public and
- Maintain competition
are funded by taxes.
- Provide public goods and services
• Third Sector
- Correct for externalities
- Type of organizations:
- Stabilize the economy
o Charities
- Redistribute income
o Voluntary organization
o Social enterprises
- Are set up to help a cause or provide a
POLICIES
service to members.
- Aim to raise money and increase awareness • Fiscal Policy
for good causes. - measures employed by governments to
stabilize the economy, specifically by
manipulating the levels and allocations of
3 MAIN SECTORS taxes and government expenditures.
• Monetary Policy
• Primary (Agriculture)
- A key role of central banks to achieve price
- Concerned with the extraction of raw
stability and to help manage economic
materials or natural resources.
fluctuations.
- Eg. Farming, mining, fishing or oil
production.
 • Privatization HOUSING
- To promote an orderly, coordinated, and
➢ Philippine housing sector has enormous
efficient privatization of remaining
potential for growth, as demand for living
government corporations, assets, activities
spaces continue to increase.
and idle properties.
Towards this vision, the industry’s objectives are:
Current Data of PH Economy and Effects of Recent
Pandemic 1. Increase housing production capacity to sustain
12% annual volume growth.
• Ph Economy Effect on Housing
2. Implement a comprehensive government
- When economic times are good, certain
housing subsidy for targeted segments.
parts of the housing market usually see
3. Improve the regulatory environment for
healthy growth, and vice versa.
housing.
• Housing Starts Tell a Tale
4. Generate and mobilize funds for end-user
- housing market has two major segments:
financing.
o Housing starts - tracked by the
number of new residential
construction projects that begin in
any month.
- Vital indicators of healthy
Economies.
o Home sales
• Home Sales Mirror the Economy
- Usually are directly tied to an economy ' s
health and rise and fall with economic
activity.
- As economies slow, the supply of money
tends to become more restrictive, and vice
versa.
• Money Supply Affects Housing Sales
- supply of money in an economy is critical to
its overall health and especially to housing
market health.
- If money ' s too difficult to borrow, housing
starts, and home sales can dry up.
• Foreclosure Reflect a Market Crash
- During a strong economy, the housing
market is usually healthy. Then when
interest rates rise, fewer people buy.
• Economic Slowdowns Slow Home Sales
- Economic slowdowns affect housing
markets, which in turn affect the economy
as housing-related activities decline and
slow overall economic activity.
• Expected/ Estimated Economic Growth