Answers to FAQs
Q: What is the difference between licensing in Professional Regulations Commission (PRC) and licensing in Realter Society.
A: The key terminologies that differentiate the two are “License to Operate” versus “License to Use a Patented Professional Title”. Only government can grant license to operate a government-regulated real estate practice or profession. In fact, within the government, there are also several other regulating agencies other than PRC that the individual needs to get license and registration from in order to get license to operate — examples are Bureau of Internal Revenue (BIR) for official receipts, City/Municipal Hall for business permits, and Housing and Land Use Regulatory Board (HLURB) for permit to sell real estate development projects (condominium, subdivisions, burial lots).
Realter Society registers in the Trademarks Department of the Intellectual Property Office Philippines (IPOPHIL) to get the patent of the Realter and Rltr professional titles. IPOPHIL grants Rltr. John R. Petalcorin (aka the Rltr Realter patent inventor, registrant, patent owner, and founder of Realter Society) the exclusive license to commercially operate the manner of use of the Rltr Realter service mark. The identity of all individual persons who are granted an extension of Right to Use the Patented Professional Title are recorded by the patent owner in the Realter Society Registry. The registry is necessary so that government (particularly BIR) will have a reference to determine how much Tax on Royalties should the patent owner correctly pay each year.
Even if a person has license to operate, he/she cannot use the Rltr Realter professional title if he/she will not get license to use the patented professional title from Realter Society. On the other hand, even if a person has a license to use the patented Rltr professional title being a genuine registered member of Realter Society, he/she cannot operate a particular government-regulated profession if he/she will not get license to operate from the government agencies.
Compliance to requirements of government license to operate will cost an individual real estate practitioner at least P5,000 if the cost is equally distributed per year. If you prefer icing on the cake, get yourself a license to use the Rltr Realter professional title — Realter Society membership is reasonably priced at P730 per year.
The bottom line is, licensing is part of the regular cost of doing business.
Q: How is Realter Society taxed?
A: Payments to Realter Society is under the classification of Royalties. The patent owner declares it as Royalties (passive income) in his Income Tax Return to the Bureau of Internal Revenue. In Philippines, the tax rate for Royalties is twenty percent (20%). For example, when you pay Realter Society membership fee of P2.00 (per day), the 40 Centavos go to government in form of tax on royalties. Insignia products in the catalogue are exclusive for members only (not for public). The price of products that carry Realter insignia is non-profit and your payment goes into an internal fund to replenish the minimum stock to ensure timely delivery to the next member who needs it.