Licensed Real Estate Broker

A Licensed Real Estate Broker is a PRC-licensed professional who acts as an intermediary between buyers and sellers (or lessors and lessees) of real property. Brokers facilitate real estate transactions by matching properties with buyers, negotiating terms, and guiding parties through the purchase process. In the Philippines, only licensed brokers can legally engage in real estate brokerage as a business.

Real estate brokers: list and market properties for sale or rent, screen and qualify potential buyers or tenants, conduct property viewings, negotiate prices and terms, prepare and explain contracts, coordinate with lawyers, banks, and government agencies, guide buyers through the documentation process, and ensure compliance with legal requirements. Brokers also provide market analysis, investment advice, and property valuation guidance (though formal appraisals require a separate appraisal license).

Broker commissions in the Philippines are typically 3-5% of the selling price for sales transactions, and 1 month's rent for residential leases. The commission is usually paid by the seller, though arrangements vary. Commissions are negotiable but standard rates prevail in most markets. For pre-selling properties, developers typically pay the broker's commission directly. Commission rates must be disclosed and agreed upon before engagement.

Real estate brokerage is regulated by RA 9646 (Real Estate Service Act / RESA Law) and the Professional Regulation Commission (PRC). The law requires brokers to pass a licensure examination, complete CPE (continuing professional education), and register with the PRC. Practicing without a license is punishable by fine and imprisonment. The RESA Law was enacted to professionalize the industry and protect consumers from unqualified practitioners. Brokers must display their PRC license and DTI business registration.

Real Estate Appraiser, RESA Law, Reservation Fee, Bank Housing Loan, Property Purchase