Dear PAO,

I needed an additional income so my friend suggested that I become a real estate agent/ broker, which is what her acquaintances are also doing. Do I need a license to transact as such?

Aspen

Dear Aspen,

Please be informed that the State recognizes the vital role of real estate service practitioners in the social, political, and economic development and progress of the country by promoting the real estate market, stimulating economic activity, and enhancing government income from real property-based transactions. Relatedly, Republic Act 9646, otherwise known as the “Real Estate Service Act of the Philippines,” which was enacted in 2009, explicitly prohibits the unauthorized practice of real estate service, to wit:

“Section 12. Licensure Examination. – Every applicant seeking to be registered and licensed as a real estate service practitioner, except a real estate salesperson, shall undergo an examination as provided for in this Act. Examinations for the practice of real estate service in the Philippines shall be given by the Board at least once every year in such places and dates as the Commission may designate. x x x

“Section 29. Prohibition Against the Unauthorized Practice of Real Estate Service. – No person shall practice or offer to practice real estate service in the Philippines or offer himself/herself as real estate service practitioner, or use the title, word, letter, figure or any sign tending to convey the impression that one is a real estate service practitioner, or advertise or indicate in any manner whatsoever that one is qualified to practice the profession, or be appointed as real property appraiser or assessor in any national government entity or local government unit, unless he/she has satisfactorily passed the licensure examination given by the Board, except as otherwise provided in this Act, a holder of a valid certificate of registration, and professional identification card or a valid special/temporary permit duly issued to him/her by the Board and the Commission, and in the case of real estate brokers and private appraisers, they have paid the required bond as hereto provided. x x x x

“Section 31. Supervision of Real Estate Salespersons. – For real estate salespersons, no examination shall be given, but they shall be accredited by the Board: Provided, That they have completed at least two (2) years of college and have undergone training and seminars in real estate brokerage, as may be required by the Board. Real estate salespersons shall be under the direct supervision and accountability of a real estate broker. As such, they cannot by themselves be signatories to a written agreement involving a real estate transaction unless the real estate broker who has direct supervision and accountability over them is also a signatory thereto. No real estate salesperson, either directly or indirectly, can negotiate, mediate or transact any real estate transaction for and in behalf of a real estate broker without first securing an authorized accreditation as real estate salesperson for the real estate broker, as prescribed by the Board. A real estate broker shall be guilty of violating this Act for employing or utilizing the services of a real estate salesperson when he/she has not secured the required accreditation from the Board prior to such employment.x x x” (Emphasis and underscoring supplied)

Accordingly, you need to pass a licensure examination, be a holder of a valid certificate of registration and professional identification card, and pay the required bond to be able to practice as a real estate broker. On the other hand, if you intend to be a real estate salesperson, you have to secure accreditation from the Professional Regulatory Board of Real Estate Service before you can practice as such. Otherwise, you will incur legal responsibilities if you engage in the business of a real estate service practitioner without proper authorization. Take note that any violation of the above-mentioned law shall be penalized as follows:

“Section 39. Penal Provisions. – Any violation of this Act, including violations of implementing rules and regulations, shall be meted the penalty of a fine of not less than One hundred thousand pesos (P100,000.00) or imprisonment of not less than two (2) years, or both such fine and imprisonment upon the discretion of the court. In case the violation is committed by an unlicensed real estate service practitioner, the penalty shall be double the aforesaid fine and imprisonment.”

We hope that we were able to answer your queries. This advice is based solely on the facts you have narrated and our appreciation of the same. Our opinion may vary when other facts are changed or elaborated on.

Editor’s note: Dear PAO is a daily column of the Public Attorney’s Office. Questions for Chief Acosta may be sent to dearpao@manilatimes.net