Owning a house is a dream for many Filipinos.
Many properties are for sale out there, but every transaction involves a big amount of money. And with many reported cases of property transactions gone awry due to many factors such as lack of understanding, non-disclosure of a fine yet significant part of a deal, hidden costs, and other forms of miscommunication between the buyer and seller or deception on the part of people who represent property owners.
As a result, home buyers who have limited knowledge about the property market are often hesitant to transact with just anybody.
That is why just like engineers, nurses, or doctors, people who are involved in the real estate business tasked to bridge the transaction between an owner and a buyer should also be authorized or licensed. For this reason, the Real Estate Service Act of the Philippines or the RESA Law was established.
Prior to the setup of RESA Law in 2009, real estate brokers were licensed by the Department of Trade and Industry. When the law was passed, Professional Regulation Commission became responsible for the regulation of the profession. While those who hold a license issued by the DTI are eligible to obtain a license without taking the Real Estate Broker Licensure Examination.
Real Estate Broker License Requirements
To be eligible to be a licensed real estate broker in the Philippines, one must meet the following requirements:
- 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.
- Documents that Must be Submitted to the PRC
In addition to the above requirements, the applicant is required to submit the following documents:
- Original and photocopy of the certificate of birth from the National Statistics Office or a valid Philippine passport
- Original and photocopy of transcript of records or college diploma
- Original and photocopy of a notarized certification of the applicant’s years of experience by his employer or a prerequisite Certificate of
- Registration, Professional Identification Card, or DTI license
- Clearance from the National Bureau of Investigation
- Original and photocopy of a duly notarized certificate from the accredited seminar or training provider
- Community tax certificate
- Four colored passport-size pictures with white background and complete nametag
- Real estate brokers exam application form
Note that other documents in accordance with the requirements set by the PRC may be requested.
These documents must be submitted to the PRC so the applicant can pay the required fees, after which the PRC will issue a permit to take the exam. The exam is scheduled every March and is held in testing centers in several cities across the Philippines (Manila, Baguio, Cagayan De Oro, Cebu, Davao, Iloilo, Legazpi City, and Lucena).
Real Estate Broker Responsibilities
A real estate broker also known as a property agent is the person with whom a buyer or tenant will transact should he or she decides to buy or lease a property — subdivision house, condominium unit, commercial space, or other similar properties. He or she is licensed and authorized by the PRC to facilitate the sale, exchange, or lease of a piece of real estate.
A broker’s main task is to act as a conduit or agent of either the buyer or the seller in a real estate transaction. It is also important to note that a real estate broker must work in their client’s best interest, so being a “double agent” or working for both parties is considered unethical. He or she also facilitates the processing of property titles, deed of sale, lease contract, or other necessary documentation upon the consummation of the sale or rent of a real estate property.