By Carla Calleja, MBA, REB
Quiz: guess the year
When did real estate brokers in the Philippines become professionals regulated by the Professional Regulation Commission (PRC)? A) 1992, B) 2001, or C) 2009?
The answer: C) 2009
Republic Act No. 9646, the Real Estate Service Act of the Philippines (RESA), was approved on June 29, 2009. It made real estate service a regulated profession under the PRC, with a Professional Regulatory Board of Real Estate Service.
What it was like before RESA
According to the Supreme Court, before RA 9646 real estate service practitioners “were under the supervision of the Department of Trade and Industry (DTI)” as part of its consumer-regulation work. Separately, dealers, brokers and salesmen of subdivision lots and condominium units registered with the housing regulator under PD 957. Business reporting from that time also describes broker licensing as a DTI matter before 2009.
What changed in 2009
- Who is covered: real estate brokers, appraisers, consultants and salespersons.
- Before practicing, brokers and private appraisers need to pass the licensure exam, hold a certificate of registration and a professional ID, and post a bond (Sec. 29, as summarized by the Supreme Court).
- Companies offering real estate services must be registered with the SEC, and the persons who act for them must be licensed (Sec. 32).
- Developers’ sales teams must be headed by full-time licensed brokers, with one licensed broker for every 20 salespersons (Sec. 32).
Myth vs fact
Myth: “Big developers don’t need licensed brokers to sell their own projects.”
Fact: Developers challenged exactly this. In Remman Enterprises, Inc. and CREBA v. Professional Regulatory Board of Real Estate Service and PRC, G.R. No. 197676, February 4, 2014, the Supreme Court En Banc upheld the law. It found no violation of the one-title, one-subject rule, no conflict with PD 957, and no violation of due process or equal protection. The Court said developers already regulated by the housing regulator “are now further required to comply with” RESA’s licensure requirements.
Why this matters to you
- Before you pay a reservation fee or sign anything, ask for the broker’s PRC ID and check that it is current.
- A salesperson must work under a licensed broker. Ask who the supervising broker is.
- Licensed brokers handle all kinds of real estate concerns, not only buying: selling, leasing, titling questions, estate properties and valuation.
FAQ
Can I sell my own house without a broker?
Yes. The law exempts persons acting on their own property. The exemption does not cover real estate developers.
What is the difference between a broker and a salesperson?
A broker is a licensed professional who passed the PRC exam. A salesperson is accredited and works under a licensed broker’s supervision.
How do I verify a license?
Ask to see the PRC ID, then check it with the PRC’s online verification service.
Ask Broker Carla
Comment BROKER with your answer to the quiz, send your “Broker Carla, …” question on facebook.com/carlacallejabrokerphilippines, or email buyrentph@gmail.com.
