After reading, On the Practice of Real Estate Service Under Republic Act No. 9646 or the “Real Estate Service Act of the Philippines”, read also Issuance of the Certificate of Registration and Professional Identification Card Under Republic Act No. 9646
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All real estate brokers and private real estate appraisers shall be required to post a professional indemnity insurance or cash or surety bond
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Every registered and licensed real estate service practitioner shall establish and maintain a principal place of business
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Every registered and licensed real estate service practitioner shall conspicuously display the original and/or certified true copies of certificate of registration in his or her office
A ll successful examinees qualified for registration and all qualified applicants for registration without examination as well as accredited salespersons shall be required to take an oath before any member of the Professional Regulatory Board of the Real Estate Service (Board) or any officer of the Professional Regulation Commission (Commission) duly authorized by the Commission to administer oaths prior to entering into the practice of real estate service in the Philippines.
In addition to oath, all real estate brokers and private real estate appraisers shall be required to post a professional indemnity insurance/cash or surety bond, renewable every three (3) years, in an amount to be determined by the Board, which in no case.
shall be less than Twenty thousand pesos (P20,000.00), without prejudice to the additional requirement of the client.
Take note that no person shall practice or offer to practice real estate service in the Philippines or offer himself or 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 or she has satisfactorily passed the licensure examination except as otherwise provided in the Real Estate Service Act of the Philippines.
In relation to real estate salespersons, is a licensure examination a requirement before they can practice real estate service?
The law says:
For real estate salespersons, no examination shall be given, but they shall be accredited by the Board. This is on the condition 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 to the written agreement.
Also, 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 the Real Estate Service Act for employing or utilizing the services of a real estate salesperson when he or she has not secured the required accreditation from the Board prior to such employment.
No salesperson shall be entitled to receive or demand a fee, commission or compensation of any kind from any person, other than the duly licensed real estate broker who has direct control and supervision over him, for any service rendered or work done by such salesperson in any real estate transaction.
Furthermore, please bear in mind that every registered and licensed real estate service practitioner shall establish and maintain a principal place of business and such other branch offices as may be necessary, and shall conspicuously display the original and/or certified true copies of his or her certificate of registration as well as the certificates of registration of all the real estate service practitioners employed in such office.
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
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