No, You Cannot Sell Pag-IBIG Acquired Assets as a Real Estate Broker/Salesperson (Here’s why)

I often get asked “Can I get accredited and sell Pag-IBIG Acquired Assets/Foreclosed properties as a broker/salesperson (agent)?” The answer is no! Find out why below.

Why Real Estate Brokers/Salespersons or agents are not allowed to sell Pag-IBIG acquired Assets?

Real Estate Brokers/Salespersons or agents are no longer allowed to sell the foreclosed properties of Pag-IBIG because they suspended “THE Pag-lBIG FUND REAL ESTATE BROKER’S ACCREDITATION PROGRAM” last September 30, 2019 as per Pag-IBIG Circular No. 430.

Here’s a full text copy of Pag-IBIG Circular 430

Pag-lBIG Fund

Corporate Headquarters

Petron MegaPlaza

358 Sen. Gil Puyat Ave.,

Makati City

Circular No. 430

TO :   ALL CONCERNED

SUBJECT:    GUIDELINES ON THE SUSPENSION OF THE Pag-lBIG FUND REAL ESTATE BROKER’S ACCREDITATION PROGRAM

Pursuant to the approval of the Senior Management Committee last 24 September 2019, the Guidelines on the Suspension of the Pag-lBIG Fund Real Estate Broker’s (REB) Accreditation Program is hereby issued:

1. The implementation of the Pag-lBIG Fund Real Estate Broker’s Accreditation Program shall be suspended starting 30 September 2019.
2. All pending applications for accreditation of REBs and renewal of Certificate of Accreditation for existing REBs shall no longer be processed.
3. All Offers to Purchase (OTP) submitted to the concerned branch/hub that are under the REB Program on or before 30 September 2019 shall be accepted and processed under the said program. For the said accounts, the discount to the buyer and commission to the REB shall still apply based on the guidelines. After the said date, all OTP received shall be processed under Negotiated Sale – Retail.

Pag-lBIG Fund Circular No. 372 entitled “Guidelines Implementing the Pag-lBIG Fund Real Estate Broker’s Accreditation (REB) Program”, memoranda, rules, regulations, and other issuances that are inconsistent herewith are hereby repealed, amended or modified accordingly.

This Circular takes effect after fifteen (15) calendar days following the completion of its publication in the Official Gazette or in a newspaper of general circulation.

(signed) ACMAD RIZALDY P. MOTI

Source: Pag-IBIG Circular No. 430

Why did Pag-IBIG suspend their Real Estate Broker’s Accreditation Program?

That is what I also want to find out. If the reason was disclosed, then we might have an idea if the suspension can get lifted in the future (or not).

As it is, no reason was given. If you or you know anyone who might know the reason, please let us know by leaving a comment below.

But I want to start selling foreclosed properties to make money, what should I do?

If you are an aspiring real estate broker/salesperson or agent, and you want to embark in selling foreclosed properties, then you can still do so by getting accredited with other sellers of foreclosed properties like banks, and other government financial institutions who are open to accreditation.

Remember, this suspension of brokers accreditation is only for Pag-IBIG.

So with the exception of Pag-IBIG, most entities that have foreclosed properties (at least those I have encountered so far) will gladly accredit brokers/salesperson and agents to sell their inventory of properties.

Impact to buyers of Pag-IBIG Acquired Assets

When a property is purchased with the help of a licensed real estate broker or salesperson/agent registered under a broker, the buyer can get advice from the broker with regard to the status of the title consolidation (if the title is not yet consolidated). Brokers can also provide assistance with the transfer of the title from Pag-IBIG to the buyer along with the legwork (when already fully paid).

With the suspension of the program, buyers will no longer get this value added service from licensed brokers who are very knowledgeable with the process. I believe this is the biggest impact because as a buyer, I find having a broker very helpful (which explains why I buy foreclosed properties with the help of a broker even if I am a licensed real estate broker myself).

Of course, without accredited brokers, buyers will be on their own when it comes to finding suitable properties. In the past, real estate brokers can assist buyers with finding properties based on their requirements, and they are rewarded with a professional fee (or broker’s commission). Which brings me to another possible impact to buyers…

Some unscrupulous people will say they are accredited with Pag-IBIG and victimize would-be buyers. Since Pag-IBIG does not accredit brokers/salespersons, where/how will these people make money? While they can say they will provide assistance for a fee, this is a form of misrepresentation and you might fall victim to a real estate scam.

What to do if a broker/salesperson or agent is selling Pag-IBIG foreclosed properties to me?

If you encounter someone who is offering their services to your as a broker/salesperson or agent for properties from Pag-IBIG, my advice is to just walk away.

You may even report them as stated in the following reminder from Pag-IBIG’s website:

Conclusion: Always transact with Pag-IBIG directly

As I always say when I share updated listings from Pag-IBIG, you should always transact with Pag-IBIG directly! I am not selling any of Pag-IBIG’s properties, I am just sharing their listings/ bidding schedules because so many people keep on asking for them, which I do for free. 🙂

If you are a real estate broker/agent, and you really want to sell foreclosed properties from Pag-IBIG, then I have two suggestions for you.

1. Just go to banks/other lending institutions who accredit licensed real estate brokers/salespersons and sell their foreclosed properties instead. It is easy to get accredited, there are so many foreclosed properties you can sell, and it is definitely rewarding. And then after gaining experience and capital, you might be open to my second suggestion below…
2. Why not just buy and sell Pag-IBIG foreclosed properties? What I mean is, you will actually purchase a property or properties from Pag-IBIG, renovate it, and then turn around and sell (flip it!). Please take note that you can only do a quick flip if the property’s title is already consolidated under the name of Pag-IBIG (as explained here: For Title Consolidation Meaning: Pag-IBIG Properties). If it is not yet consolidated, you can hold on to it as a rental until the consolidation is finished and then you can flip it.

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How about you, what are your thoughts with regard to the suspension of Pag-IBIG’s real estate broker’s accreditation program? Let me know through the comments below.

P.S. – I would like to thank Feliciano B. Tare for sharing his experiences with selling Pag-IBIG acquired assets/foreclosed properties. He’s one of the top licensed real estate brokers accredited under Pag-IBIG when the program was active. I remember we talked about this years ago, and I’m glad I still remember his inputs, which helped me add details in this article.