Why You Should Not Work with Unlicensed Real Estate Agents

Property Updates

In the Philippines, the average salary of licensed real estate brokers is Php 19,000, plus the commission. With real estate property buying and selling becoming a lucrative business at the present time, it appears that the number of unlicensed real estate brokers and agents is ballooning in number.

Unlicensed real estate brokers get as much as the salary (or even more) of registered ones.

There are three major reasons why sellers and buyers patronize the service of illegal property agents:

  • They offer cheaper service
  • They have lesser commission rates, and
  • Buyers and sellers can shun paying hefty taxes.

Despite these boons, the Philippine law outlaws such an agreement and describes the transaction as ‘dangerous’ because transacting with such unlicensed brokers offers no support from authorities in cases of fraudulent deals. Needless to say, we recommend you should not work with unlicensed real estate brokers and agents:

A bogus real estate broker has no license to protect

This means there is no way you can file for revocation or cancellation of his/her license in the event the unlicensed real estate broker swindles you.

A bogus real estate broker has no professional affiliation or organization

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Not like licensed brokers and agents, they do not own offices where you can easily find them. This implies that whenever a problem arises between your contract or agreement, you would not know where to hunt them.

A bogus real estate broker follows no professional standards

Not only they do not adhere to conducts and standards pertaining to the real estate industry, but a phony real estate service provider can easily operate without recognizing the moral and ethical benchmarks. People who deal with unlicensed real estate persons often receive no or poor information about the deal.

The transaction with a bogus real estate broker is illegal

Under the Republic Act 9646 (RESA Law), and dealing with or by an unlicensed real estate agent is liable to be punished by the said ruling. A fine of Php 200, 000.00 to 100,000.00, 2- to 4- year imprisonment or both will be imposed. Accomplices of unlicensed real estate brokers and agents also face legal punishment.

Dealing with a bogus real estate broker can actually entail more costs

Guarded by professional standards, licensed brokers are often paid by sellers of the real property. Thus, they’re less likely to ask for extra charges than fake agents who need to find a way to make money.

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Republic Act 9646 or the RESA Law states that real estate services should (only) be dealt with by licensed real estate service practitioners. The intent of the law is to protect the buying public against swindles and any form of fraudulent scams.

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  1. Just checked this agent, Jaye Stare, said in his page that he’s a licensed property specialist. verified in prc webpage, he has no records or he’s registered as broker, salesperson or consultant. He has 140 listings in his site. Pls check:


  2. Totoo to kng cnu pa ung mga unlicensed cla pa ung mas mtaas ang kita, sabagay may ksabhan nga na nanlalaglag cla.. At mron din nman n mga licensed na niloloko mga kapwa ahente nanlalaglag din. Bayd nga ng client nya hnd nya bnyad eh. Dapat yang mga yan pnparusahan eh, namimihasa.. Kaming mga licensed n ngtatrabaho ng tapat at hnd nanloloko ng kapwa, laging nilalaglag.. Gusto lang namin kumita ng tapat. Ng hnd nanloloko. San pwde magcomplain? Tpos imbestigahan nyo sana.


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