The Real Estate Service Act (RA 9646), known as RESA, professionalizes and regulates real estate service in the Philippines. It requires that real estate brokers, appraisers, consultants, assessors, and salespersons be licensed and registered with the Professional Regulatory Board of Real Estate Service under the Professional Regulation Commission, generally after passing the required licensure examination (with some exemptions and transitory provisions). A real estate salesperson must be accredited under and supervised by a licensed broker. The law protects the public by ensuring that those who broker, appraise, or sell real estate meet competence and ethics standards. Practicing real estate service without the proper license — for example, brokering a sale for a commission without being a licensed broker — is unlawful and can subject the person to penalties, and it can also affect the enforceability of the broker's claim to a commission. Buyers and sellers dealing with a broker should verify that the broker is licensed. Certain acts, like an owner selling their own property, do not require a license, but those who make a business of brokering for others must be licensed.
What RESA Requires
RA 9646 (RESA) requires real estate brokers, appraisers, consultants, and salespersons to be licensed and registered with the Professional Regulatory Board under the PRC, generally after passing the licensure exam. A salesperson must be accredited under and supervised by a licensed broker.
Why It Matters
It protects the public by ensuring those who broker, appraise, or sell real estate meet competence and ethics standards.
Unlicensed Practice
Brokering a sale for a commission without a license is unlawful, can carry penalties, and can affect the broker's claim to a commission. An owner selling their own property does not need a license.
Practical Takeaways
- Real estate brokers, appraisers, and salespersons must be licensed under RESA;
- Verify a broker's license before transacting;
- Unlicensed brokering is unlawful and may void a commission claim.
Frequently Asked Questions
Who must be licensed under RESA? Real estate brokers, appraisers, consultants, assessors, and salespersons must be licensed and registered with the Professional Regulatory Board of Real Estate Service under the PRC.
Can anyone broker a real estate sale? No. Practicing real estate service, such as brokering a sale for a commission, requires a proper license. Unlicensed practice is unlawful and can carry penalties.
Does an owner need a license to sell their own property? No. An owner selling their own property does not need a license. Licensing is required for those who make a business of brokering, appraising, or selling for others.
What happens to an unlicensed broker's commission? Unlicensed brokering can affect the enforceability of the broker's claim to a commission, in addition to exposing the person to penalties.
This commentary is for general informational purposes only and does not constitute legal advice. For guidance specific to your situation, please consult a licensed attorney.
If you have questions about your rights or options under Philippine law, our firm is available to assist. You may reach us via Viber or WhatsApp, call us at 0995 433 5550, or send an email to vivasnobles@gmail.com. We look forward to hearing from you.