In view of the effectivity of the Real Estate Service Act of the Philippines, Republic Act No. 9646, last July 30, 2009, the licensing of real estate service practitioners shall now be governed by said RA 9646 under the Professional Regulation Commission.
For details, please read Republic Act No. 9646.
No person shall directly or indirectly engage in the real estate service, practice, or represent himself as a real estate salesman, broker, appraiser or consultant without having first secured the corresponding license from the Director in accordance with these rules. (Sec. 1, Art. V, DTI Ministry Order No. 39, Series of 1985, as amended )
WHO is a real estate broker ?
A REAL ESTATE BROKER is any person, natural or juridical, who is an agent of another person and for or in expectation of a fee, commission or other valuable consideration, shall perform any of the following acts : offers, advertises, solicits, lists, promotes, mediates, negotiates or effects the meeting of the minds on the sale, purchase, exchange, mortgage or lease of, or joint venture or other transactions in real estate or any interest therein. ( Sec. 3, Article III, MO 39, Series of 1985, as amended )
Is it required that a person who wants to engage in real estate brokerage be licensed before he can sell or lease real estate, or act as a real estate broker ?
Yes, it is required that one must first be licensed before he or she can start selling real estate as provided under the above Sec.1, Art. V of M.O. No. 39, Series of 1985, as amended.
What are the qualifications to be licensed as a Real Estate Broker ?
An applicant for license as a real estate broker must have the following qualifications :
- At least 21 years of age
- Not convicted of any offense involving moral turpitude
- Educational Requirements : He must have satisfactorily completed at least one hundred forty-four (144 ) units of college undergraduate study or must have finished seventy-two ( 72 ) units in college provided he has been a licensed salesman for a period of four years and duly recommended by a licensedbroker.
- Must pass the written examinations for real estate brokers
- Has or will be able to establish an office with facilities necessary to satisfactorily render the services expected of a broker
Does someone who wants to be a licensed Real Estate Broker have to take any licensure examinations ?
One must take and pass the written broker’s examinations being conducted by the Department of Trade and Industry (DTI) , and which are presently held on the last Sunday of May and November of each year, throughout the Philippines, in selected areas determined by the DTI.
Are there any requirements to take the written real estate broker’s examinations ?
Aside from the above qualifications as to educational attainment, it will now be required that a person who desires to take the examinations should attend an accredited comprehensive seminar and review (also referred to as, CRESAR) which are conducted by different local real estate brokers’ associations. The seminar consists of at least 24 hours and the schedules would depend on the local board or association which are conducting the same.
What are the subjects or topics covered in the real estate broker’s examinations ?
The following subjects are covered by the seminar and review :
- FUNDAMENTALS OF PROPERTY OWNERSHIP;
- LEGAL REQUIREMENTS FOR REAL ESTATE PRACTICE;
- REAL ESTATE BROKERAGE PRACTICE;
- SUBDIVISION DEVELOPMENT;
- CONDOMINIUM CONCEPT;
- REAL ESTATE FINANCING, TAXATION, ECONOMICS;
- BASIC PRINCIPLES OF ECOLOGY, URBAN AND RURAL LAND USE, PLANNING, DEVELOPMENT AND ZONING;
- LEGAL ASPECT OF SALE, MORTGAGE, LEASE;
- DOCUMENTATION AND REGISTRATION.
How long is the real estate broker’s examinations ?
The examinations are normally conducted in the morning from 8 a.m. to 12:00 noon or a 4-hour examination.
Where does one apply for a license as a real estate broker ?
The application is filed with the Department of Trade and Industry, or through its Regional Offices and application forms may be obtained from said offices along with requirements to accompany the application form.
What about if the real estate broker is also selling real estate subdivisions, condominium projects and the like, is a separate license still required?
The license which is issued by the Department of Trade and Industry is sufficient but, in addition, the real estate broker must register with the Housing Land Use Regulatory Board (HLURB) if he or she will also sell subdivision lots or condominium units. Under Sec. 11 of Presidential Decree No. 957 (Subdivision and Condominium Buyer’s Protective Decree), no real estate broker or salesman shall engaged in the business of selling subdivision lots or condominium units unless he has registered himself with the Authority or the Housing Land Use and Regulatory Board.
What happens if someone engages in selling real estate but does not have a license as a real estate broker?
Any person who shall engage in real estate service practice, such as a real estate broker without first having secured a license shall be liable administratively with the Department of Trade and Industry and may be subject to penalties, such as fine and shall likewise be criminally liable. Any person on who is engaging in practice as a real estate broker without the required license may be reported to the DTI Offices.