The Philippines is experiencing a boom in property development. New buildings were constructed to accommodate the demand for office spaces, shop stalls, residential dwellings, and even parking spaces. All of these signals point to a flourishing career in real estate.
If you’re fed up with your job or simply wish to change lifestyles or acquire new knowledge, becoming a licensed real estate broker is not a bad decision.
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What is a real estate broker?
A real estate broker is a person authorized to represent another person in performing functions, specifically offering, advertising, soliciting, promoting, mediating, and negotiating during sales, purchases, exchanges, mortgages, or leases of real estate or any interest therein.
How much does a real estate broker make in the Philippines?
The amount that a real estate broker can make in the Philippines can vary depending on factors such as experience, the types of properties being sold, and the current state of the real estate market.
In general, real estate brokers in the Philippines earn a commission, which is usually a percentage of the property’s selling price, ranging from 3% to 6%. For example, if a property is sold for Php 5 million and the commission is set at 5%, the broker’s fee would be Php 250,000.
However, it’s important to note that this commission is typically split between the seller’s and buyer’s brokers, and the broker would have to pay for expenses such as transportation and advertising. As such, the actual earnings of a real estate broker in the Philippines can vary widely and is not fixed.
Importance of being a licensed real estate broker
A license is required to engage in real estate brokerage in the Philippines. A license ensures that you are legally permitted to conduct real estate transactions and to provide professional services to clients.
Licenses provide credibility and aid in establishing trust with potential clients. Your license demonstrates that you are qualified to handle real estate transactions and provide professional advice.
Real estate brokers are required to adhere to certain ethical and professional standards, which can protect their clients from fraudulent activities and unethical behavior. Licensed brokers are also entitled to legal protection and recourse in the event of a dispute.
In order to obtain a license, real estate brokers in the Philippines are required to undergo training and pass an exam to demonstrate their knowledge and understanding of real estate laws, regulations, and best practices. This can help ensure that licensed brokers are equipped with the knowledge and skills needed to effectively serve their clients.
Institutions that offer real estate broker course
Bachelor of Science in Real Estate Management course is a pathway to becoming a real estate agent.
- Adamson University
- De La Salle-College of Saint Benilde
- Manila Business College Foundation
- Pamantasan ng Lungsod ng Maynila
- Trinity University of Asia
- Philippine Christian University
- Lyceum of Alabang
- ABE International Business College – Available in Las Piñas, Lucena, and Cainta Campus
- AMA University
- University of San Carlos
- University of St. La Salle
- Central Philippine University
- ABE International Business College – Iloilo Campus
- University of Cebu
- Saint Paul School of Professional Studies
- Guimaras State College – Main
- Santa Isabel College of Iloilo City
- Hua Siong College of Iloilo
- Xavier University (Ateneo De Cagayan)
- University of Mindanao
- Saint Columban College
- Southway College of Technology
- New Era University- General Santos City
- VMC Asian College Foundation
- Misamis University
- Saint Joseph Institute of Technology
- Goldenstate College
- Southpoint College of Arts and Technology
Requirements to become a licensed real estate broker
If you wish to obtain a real estate brokerage license, you must meet the following qualifications:
- You must be at least 21 years old.
- You must not be convicted of any offense.
- You must have completed at least 144 units of college undergraduate studies, or 72 units in college provided that you have been a licensed salesman for a period of 4 years and duly endorsed by a licensed broker.
- You must pass the written exam for real estate brokers.
- You must be able to establish an office with the amenities needed to deliver the services expected of a broker.
Licensure exam for real estate brokers
You must pass the exam for real estate brokers administered by the Professional Regulation Commission (PRC). Previously, the process was under the auspices of the Department of Trade and Industry.
Documentary requirements to take real estate broker licensure exams
Before an applicant can take the licensure exams at PRC, he or she is required to submit the following documents:
- NSO Certificate of birth or Philippine passport
- Transcript of records/college diploma
- Certificate of Registration, Professional Identification Card, or DTI license
- NBI Clearance
- Notarized certificate from a training provider or educational institution
- Community tax certificate / cedula
- Four colored passport-size pictures with white background
- Real estate brokers exam application form
Requirements for the written real estate broker’s exam
All applicants must meet the basic requirements before taking the exams:
- A bachelor’s degree in any college or university accredited by the Commission on Higher Education (CHED)
- Must have earned 120 units of the required Continuing Professional Education (CPE) at an accredited real estate service training provider
- Good moral character as evidenced by not having been convicted of any crime
- Completed application with the PRC, who in turn will assess and approve the said application. Upon approval, the Board of Real Estate Service of the PRC will issue the permit to the applicant, in order for him or her to take the exam.
- Must take and pass the real estate broker exam in the Philippines
Coverage of the real estate broker’s exam
The following subjects are discussed during the seminar and review:
- Basic Principles of Ecology, Urban and Rural Land Uses, Preparation, Improvement, and Zoning;
- Basics of Property Ownership;
- Concept of Condominium;
- Development of a Subdivision;
- Legal Aspects of Real Estate Leases, Mortgages, and Sales;
- Legal Prerequisites and Requirements for Real Estate Practice;
- Real Estate Brokerage System;
- Real Estate Economics, Financing, and/or Taxation
- Registration and Documentation
How long is the real estate broker’s exam?
The exam usually concludes after 4 hours and is usually administered from 8 a.m. to 12noon.
Where to submit the application for real estate broker exams?
The application is filed at DTI, or through their regional offices. Application forms may also be obtained from these offices with prerequisites to supplement the application forms.
What if the real estate broker also sells condominium projects real estate subdivisions, is a separate license necessary?
The real estate brokerage license is sufficient. However, the real estate broker needs to be registered with the Housing Land Use Regulatory Board if he/she wishes to sell.
What if an unlicensed person engages in real estate sales?
That person will face administrative charges and may be penalized. He/she shall face criminal liability and be charged with fines.
Working with a trustworthy and knowledgeable real estate property agent is crucial in transacting within the property market. Buying a property involves huge investments, and personal knowledge may not be enough to guide in decision-making. Therefore, a duly licensed real estate broker will be helpful in navigating through the entire process which can be cumbersome and complicated.