How to Become a Real Estate Broker in the Philippines

Selling real estate in the Philippines can be a lucrative and successful career. Philippines real estate industry is one of the most successful industries in comparison to any other Asian country, according to the Business Philippine Registry website. Selling real estate in the Philippines can be a lucrative career for a savvy and knowledgeable real estate broker who desires to tap into this real estate market. The practice of Real Estate Profession in the Philippines is governed by:

Republic Act No. 9646 -   AN ACT REGULATING THE PRACTICE OF REAL ESTATE SERVICE IN THE PHILIPPINES, CREATING FOR THE PURPOSE A PROFESSIONAL REGULATORY BOARD OF REAL ESTATE SERVICE, APPROPRIATING FUNDS THEREFOR AND FOR OTHER PURPOSES which took effect on June 29, 2009 and,

Presidential Decree No. 957 - REGULATING THE SALE OF SUBDIVISION LOTS AND CONDOMINIUMS, PROVIDING PENALTIES FOR VIOLATIONS THEREOF which took effect on July 12, 1976.

Step 1 Eligibility

Every applicant seeking to be registered and licensed as a real estate service practitioner need a report of rating for the Licensed Real Estate Broker examination (which is given once a year), a simple report is showing whether you passed or failed the exam and what your final score is. For complete set of requirements for examination, see checklist below;

Checklist of Requirements (ORIGINAL and PHOTOCOPY)

1. Transcript of records (TOR) – with scanned picture, and noted “For Board Exam Purposes”
2. 4 pcs. Passport size colored pictures with full name tag.
3. NSO Birth Certificate
4. NSO Marriage Certificate (for married women)
5. Community Tax Certificate (Cedula)
6. Notarized Certificate of Completion of 120 hours
7. NBI Clearance

Scope of examination

For real estate brokers - fundamentals of property ownership; code of ethics and responsibilities; legal requirements for real estate service practice; real estate brokerage practice; subdivision development; condominium concept; real estate finance and economics; basic principles of ecology; urban and rural land use; planning, development and zoning; legal aspect of sale, mortgage and lease; documentation and registration; real property laws; and any other related subjects as may be determined by the Professional Regulatory Board of Real Estate Service (PRBRES). 

The examination items above are subdivided into;

I General/Fundamentals of Real Estate Service (25%)
· Fundamentals of Property Ownership
· Code of Ethics and Responsibilities
· Legal Requirements for Real Estate Service (RA 9646 / IRR)
· Real Estate Laws and Taxation (Agri Law, CARPER, RA 7160 / 8424, etc)

II Special and Technical Knowledge (25%)
 

· Subdivision Development (includes PD 957, BP 220, RA 7279, etc)
· Condominium Concepts and Other Types of Real Estate Holdings
· Legal Aspect of Sale, Mortgage and Lease
· Documentation and Registration

III Professional Practice (50%)

· Real Estate Brokerage Practice
· Real Estate Finance and Economics
· Urban and Land Use
· Planning, Development and Zoning
· Basic Principles of Ecology
· Basic Appraisal for Real Estate Brokers

In order to be admitted to the licensure examination for real estate service, a candidate shall, at the time of filing his/her application, establish to the satisfaction of the Professional Regulatory Board of Real Estate Service (PRBRES) that he/she possesses the following qualifications:

(a) A citizen of the Philippines;

(b) A holder of a relevant bachelor's degree from a state university or college, or other educational institution duly recognized by the CHED: Provided, That as soon as a course leading to a Bachelor's degree in Real Estate Service is implemented by the CHED (The course is known as Bachelor's in Science in Real Estate Management - BSRM), the Board shall make this course a requirement for taking the "licensure examination; and

(c) Of good moral character, and must not have been convicted of any crime involving moral turpitude: Provided, That an applicant for the licensure examination for real estate consultants must show proof that he/she has at least ten (10) years’ experience as a licensed real estate broker or an assessor, or as a bank or institutional appraiser or an employed person performing real property valuation, or at least five (5) years’ experience as a licensed real estate appraiser.

Registration Without Examination, - Upon application and payment of the required fees, the following shall be registered, and shall be issued by the Board and the Commission a certificate of registration and a professional identification card without taking the prescribed examination: 

(a) Those who, on the date of the affectivity of RESA LAW of 2009), are already licensed as real estate brokers, real estate appraisers or real estate consultants by the Department of Trade and Industry (DTI) by virtue of Ministry Order No. 39, as amended: Provided, That they are in active practice as real estate brokers, real estate appraisers and real estate consultants, and have undertaken relevant CPE to the satisfaction of the Board; 

Foreign Reciprocity. - A foreign real estate service practitioner shall be admitted to the licensure examination or be given a certificate of registration or a professional identification card, or be entitled to any of the privileges under RESA Law if the country of which he/she is a citizen specifically allows Filipino real estate service practitioners to practice within its territorial limits on the same basis as citizens of such foreign country.

Online Examination Application. - Link

Step 2 After Passing the Examination  

Ratings in the Examination. - In order that a candidate may be deemed to have successfully passed the examination, he/she must have obtained an average of at least seventy-five percent (75%) in all subjects, with no rating below fifty percent (50%) in any subject.

All successful examinees qualified for registration and all qualified applicants for registration without examination as well as accredited salespersons shall be required to; 

(a) take an oath before any member of the Board or any officer of the Commission duly authorized by the Commission to administer oaths prior to entering into the practice of real estate service in the Philippines. 

(b) 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. 

Step 3 Practice 

Every real estate broker must first register with Professional Regulatory Board of Real Estate Service and Housing and Land Use Regulatory Board (HLURB). In addition, he must pay a corresponding professional tax in his place of business. Please click the links below for details of registration. 

Registration Link for HLURB - Link 

Registration Link for PRC - Link

A single act or transaction embraced within the provisions of Section 3(g) or RESA Law hereof, as performed by real estate service practitioners, shall constitute an act of engaging in the practice of real estate service. 

Issuance of Special/Temporary Permit. - Upon application and payment of the required fees and. subject to the approval of the Commission, the Board may issue special/temporary permit to real estate service practitioners from foreign countries whose services are urgently needed in the absence or unavailability of local real estate service practitioners for the purpose of promoting or enhancing the practice of the profession in the Philippines. 

Real estate service practitioners shall be required to indicate the certificate of registration, professional identification card, PTR number, and APO receipt number, and the date of issuance and the duration of validity on the documents he/she signs, uses or issues in connection with the practice of his/her profession. 

Corporate Practice of the Real Estate Service. 

(a) No partnership or corporation shall engage in the business of real estate service unless it is duly registered with the Securities and Exchange Commission (SEC), and the persons authorized to act for the partnership or corporation are all duly registered and licensed real estate brokers, appraisers or consultants, as the case may be. The partnership or corporation shall regularly submit a list of its real estate service practitioners to the Commission and to the SEC as part of its annual reportorial requirements. There shall at least be one (1) licensed real estate broker for every twenty (20) accredited salespersons. 

(b) Divisions or departments of partnerships and corporations engaged in marketing or selling any real estate development project in the regular course of business must be headed by full-time registered and licensed real estate brokers. 

Register at the National Association of Realtors. The National Association of Realtors has a huge database of educational tools to offer real estate professionals for advancement in the real estate industry, including educational programs and certifications and free marketing tools. Some educational certification programs include Certified Commercial Investment Member/CCIM, Certified Real Estate Brokerage Manager/CRB, Certified International Property Specialist/CIPS, and much more. These programs assist you in increasing your skills, proficiency and knowledge. 

Step 4 Renewal of License 

Licensed Real Estate Service Practitioners shall renew their license once every three (3) years to legally continue practice the profession. 

RENEWAL AT PRC CENTRAL AND REGIONAL OFFICES 

1. Prepare the following requirements: 

• Passport-sized photos with nametag on white background
• Original and photocopy of any government ID
• Original and photocopy of PRC license
• Surety bond (premium worth P20, 000.00 valid for 3 years: PRC and HLURB for broker; PRC for appraiser; no surety bond for consultants, assessors and salespersons)
• Notarized Continuing Professional Education (CPE) certificate of 60 units from a PRC-accredited CPD provider
  
• Certificate of Membership and in Good Standing from PHILRES

2. Get a renewal stub form from the Standards and Inspection Division of PRC. Fill up the required fields and attach your photo. 

3. Go to the Application Division and submit your documents/requirements. Once approved, pay renewal fee to the cashier. 

4. Claim your new ID on the scheduled date by presenting your claim stub and official receipt. 

RENEWAL AT SM MALLS  

Because of some internal concerns, PRBRES has advised the satellite renewal centers in all SM Malls to NOT ACCEPT any renewal for real estate professions: broker, appraiser, consultant, assessor and salesperson.  Register at the Housing Land Use Regulatory Board to sell low-cost housing properties and condominium projects. To register, you need to download the application form from their website (see Resources). You will need a copy of the application form, 1 x 1 ID pictures, an updated Real Estate Broker Certificate, Surety Bond Proof of Education Attainment or the latest National Bureau of Investigation or Regional Trial Court clearance Cash Bond and the processing fee (see Resources).

RENEWAL BY REPRESENTATIVE

A representative that is duly-authorized, by presenting a letter of authority or Special Power of Attorney (SPA) from the professional may be allowed to renew the license at PRC.

Good Luck!!!

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