By Louella D. Desiderio (The
Philippine Star) | Updated May 6, 2015 - 12:00am
MANILA, Philippines - Foreign businessmen
in the country are pushing for the passage of a proposed measure seeking to
establish a regulatory framework for valuation of real estate, saying such move
will create greater confidence in the Philippine real estate industry.
In a letter to Sen. Juan Edgardo
Angara, chairman of the Senate Committee on Ways and Means, the Joint Foreign
Chambers (JFC) said it supports House Bill 5288 or the Real Property Valuation
and Assessment Reform Act which seeks to establish a regulatory framework to
serve as legal basis for valuation of real estate.
Under the proposal, the Department of
Finance’s Bureau of Local Government Finance through the Real Property
Valuation Service (RPVS), will develop as well as maintain valuation standards
and ensure compliance to such by local government units.
The RPVS will also provide technical
assistance on real property appraisal matters to government agencies and
conduct valuation and appraisal of special purpose properties, when requested.
The proposal has been approved by the
House of Representatives on third reading and is under consideration by the
Senate Committee on Ways and Means.
The JFC supports the proposal as a
professionally managed system of valuation is important for stability in the
market.
The valuation of real estate is vital
to commercial endeavors such as real estate financing, listing real estate for
sale, investment analysis, property insurance and taxation.
The proposal, the JFC noted, provides
a single real property valuation base which will not only support the
profession of appraisal practice but also establish an electronic data base for
transactions, conform with global standards and ensure transparency in
valuation.
“Current developments in the real estate
market create a great need for a stronger regulatory framework. Similarly,
opportunities created by ASEAN (Association of Southeast Asian Nations)
integration and other economic advances require that valuation of real estate
is carried out based on international standards. Confidence in Philippine real
property system can only be ensured through an appropriate legal paradigm,” the
JFC said.
As the Philippines is poised for
growth in the coming years, the JFC said the passage of HB 5288 would be an
important component in maintaining a vibrant and dynamic economy.
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