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Last Updated on January 3, 2022 by Lamudi
Becoming a real estate broker is a job that cannot be taken on a whim. As real estate brokers deal with important transactions that involve sizeable amounts of money, there is a standard process that aspiring real estate brokers need to follow to get the appropriate knowledge, skills, and requirements to do the job.
After the first batch of graduates from the Bachelor of Science in Real Estate Management (BS REM) program graduated in 2016, the Commission on Higher Education (CHED) issued Memorandum Order 28, adopting the program as the new educational prerequisite for taking the license exam. There are now stringent requirements to become a real estate broker, and this is how to meet them.
First, aspiring real estate brokers need to sign up for a program that provides a Bachelor of Science in Real Estate Management (BS REM), a requirement to enable real estate brokers to acquire the expertise required to work in the real estate sector.
As soon as a Bachelor’s degree and diploma are earned, graduates can visit the Professional Regulation Commission (PRC) and apply for the licensing exam.
Real estate brokers must be prepared to keep up with the constant changes in the real estate industry, which is why there are courses that focus on real estate careers. After completing such courses, real estate brokers must then apply for the appropriate license and certifications such as Professional Regulatory Commission (PRC) license and Housing and Land Use Regulatory Board (HLURB) license.
What Schools Offer Education on Real Estate Management?
If you are interested in becoming a real estate broker Philippines, you can enroll in a Bachelor of Science in Real Estate Management course.BS Real Estate Management is not available in all colleges and universities, so if you are interested in taking up BS Real Estate Management and becoming a real estate broker, here are some educational institutions that offer BS Real Estate Management:
Luzon
- Adamson University
- De La Salle-College of Saint Benilde
- Manila Business College Foundation
- Pamantasan ng Lungsod ng Maynila
- Trinity University of Asia
- Philippine Christian University
- Lyceum of Alabang
- ABE International Business College – Available in Las Piñas, Lucena, and Cainta Campus
- AMA University
Visayas
- University of San Carlos
- University of St. La Salle
- Central Philippine University
- ABE International Business College – Iloilo Campus
- University of Cebu
- Saint Paul School of Professional Studies
- Guimaras State College – Main
- Santa Isabel College of Iloilo City
- Hua Siong College of Iloilo
Mindanao
- Xavier University (Ateneo De Cagayan)
- University of Mindanao
- Saint Columban College
- Southway College of Technology
- New Era University- General Santos City
- VMC Asian College Foundation
- Misamis University
- Saint Joseph Institute of Technology
- Goldenstate College
- Southpoint College of Arts and Technology
Applying for an HLURB License
HLURB is a government agency responsible for assisting the local government units (LGUs) on land regulation and promote safer real estate transactions. Under Presidential Decree 957, HLURB is granted the power to register real estate brokers for transactions involving subdivision projects, memorial parks, farm lots, and condominiums to protect property seekers from fraudulent transactions.
Application Process
- Submit the required documents to the Records Section of the designated HLURB branch in your area.
- After submitting the documents, the officer will assess the legitimacy and completeness of the documents, then an assessment form will be issued.
- Go to the Accounting Department to pay for the necessary fees then secure a photocopy of the official receipt (O.R).
- Submit the O.R. to the Records Section for processing.
- Claim the HLURB certificate and ID on the day specified in the O.R. The HLURB ID and certificate are typically issued 15 days after filing.
Required Documents
- Accomplished Application Form
- One photocopy of 2×2 ID picture
- One photocopy of the latest PRC License (ID and certificate)
- One photocopy of O.R. and surety bond
- One letter of endorsement from the employer (must be a licensed broker)
- One photocopy of the latest PRC and HLURB certificates or company ID of the employer
- PhP 288 for processing fee
- PhP 1,000 cash bond (subject to change without prior notice)
For renewals, the same requirements and processes apply except for the processing fee. For renewals, the real estate broker is required to bring a copy of the latest HLURB ID and certificate and PhP 200 for a year of non-renewal.
Applying for a PRC License
These documents must be submitted to the PRC:
- NSO Certificate of birth or Philippine passport
- Transcript of records/college diploma
- Certificate of Registration, Professional Identification Card, or DTI license
- NBI Clearance
- Notarized certificate from training provider
- Community tax certificate
- Four colored passport-size pictures with white background
- Real estate brokers exam application form
Buying a house is a life-long dream for many people in the Philippines, but it involves a considerable amount of money. This is why many home-buyers are hesitant to transact with just anybody. This is exactly the reason why the government ensures that the real estate profession is well regulated, and that the people who are engaging in the business carry real estate broker licenses in the Philippines (similar to architects, lawyers, doctors, engineers, etc.). This is the primary objective of the Real Estate Service Act of the Philippines, more commonly known as the “RESA Law”.
Before the RESA Law was introduced in 2009, all real estate brokers were licensed under the Department of Trade and Industry (DTI). When the law was passed, the role of regulating the profession fell into the hands of the Professional Regulation Commission (PRC). However, those already licensed under the DTI are still eligible to get a license from the PRC without having to undergo the Real Estate Broker Licensure Examination (under the so-called grandfather clause).
Real Estate Broker Philippines License Requirements
To be eligible to be a licensed real estate broker in the Philippines, one must meet the following requirements:
- A bachelor’s degree in any college or university accredited by the Commission on Higher Education (CHED)
- Must have earned 120 units of the required Continuing Professional Education (CPE) at an accredited real estate service training provider
- Good moral character as evidenced by not having been convicted of any crime
- Completed application with the PRC, who in turn will assess and approve the said application. Upon approval, the Board of Real Estate Service of the PRC will issue the permit to the applicant, in order for him or her to take the exam.
- Must take and pass the real estate broker Philippines exam
Documents That Must Be Submitted to the PRC
In addition to the above requirements, an aspiring PRC real estate broker in the Philippines must submit the following documents:
- Original and photocopy of certificate of birth from the National Statistics Office or a valid Philippine passport
- Original and photocopy of transcript of records or college diploma
- Original and photocopy of a notarized certification of the applicant’ years of experience by his employer or a prerequisite Certificate of Registration, Professional Identification Card, or DTI license
- Clearance from the National Bureau of Investigation (NBI)
- Original and photocopy of a duly notarized certificate from the accredited seminar or training provider
- Community tax certificate
- Four colored passport-size pictures with white background and complete nametag
- Real estate brokers exam application form
Note that other documents in accordance with the requirements set by the PRC may be requested.
After these real estate broker exam requirements are submitted, the applicant will pay
pay the required fees. Then, the PRC will issue a permit to take the exam. The exam is scheduled every March and is held in testing centers in several cities across the Philippines (Manila, Baguio, Cagayan De Oro, Cebu, Davao, Iloilo, Legazpi City, and Lucena).
Real Estate Broker Role and Responsibilities
A real estate broker in the Philippines is the go-to person of a property buyer or seller. He or she is registered and licensed by the Professional Regulation Commission (PRC) to facilitate the sale, exchange, or lease of a piece of real estate be it a house, a condominium unit, an industrial lot, or a commercial space. The commissions earned from selling these promising assets forms part of the real estate broker’s salary.
A broker’s main task is to act as an agent of either the buyer or the seller in a real estate transaction. Hence, good negotiating skills are absolutely necessary. It is also important to note that respectable real estate brokers in the Philippines must work in their client’s best interest, so being a “double agent” (i.e., working on behalf of both the seller and the buyer) is considered unethical.
In addition, many Filipinos may encounter people who introduce themselves as a real estate salesperson. Although these professionals are not licensed by the PRC, they are accredited to work under a licensed real estate broker. The salesperson usually performs the day-to-day task of a real estate transaction (such as property viewings); however, they are not allowed to sign any legal documents related to the transaction.
Do you need to apply for both an HLURB License and PRC License?
A real estate broker and a real estate salesperson are very different from one another. In order to be a real estate salesperson, you only need an HLURB license. However, to be a real estate broker, you need a bachelor’s degree and a PRC license. Obtaining a Bachelor of Science in Real Estate Management degree, also known as a BSREM, and passing the board test are prerequisites for becoming a licensed real estate broker.
On the other hand, a real estate salesperson needs to be authorized by the PRC, be registered with a real estate broker, and have their accreditation renewed annually. Real estate salespeople are not required to operate independently or declare themselves self-employed. There is not a single free agent in RA 9646. Real estate service professionals may sell only assets that your REB has permission to sell on your behalf, and brokers should be held accountable.
Real Estate Salesperson Limitations
Real estate salespeople frequently have a broker as their immediate supervisor and point of accountability. Additional significant elements are contained in the RESA Law IRR regarding real estate salespeople acting as subagents for licensed real estate brokers, such as the practice’s limitations and prohibitions. Here are some of the rules and regulations that real estate salespersons must follow:
- Only a real estate broker with direct oversight and accountability for a real estate salesperson may sign a written agreement regarding a real estate transaction. Real estate salesperson is not permitted to sign a formal agreement on the purchase or sale of real estate by themselves.
- According to the Professional Regulatory Board of Real Estate Service, or PRB-RES, no real estate salesperson may negotiate, mediate, or carry out any real estate transaction on behalf of real estate brokers without obtaining an authorized accreditation as a real estate salesperson for the real estate broker.
- A real estate broker will be in violation of the new real estate laws if they employ or use accredited real estate salespersons’ services without first getting the necessary accreditation from PRB-RES.
- No salesperson shall be entitled to receive or seek compensation of any kind from any person other than the supervising licensed real estate broker who has direct supervision over him for any service or job provided by such salesperson in any real estate transaction.
A career in the property industry may be fitting for you. As you explore this career path and know more about how to be a real estate broker in the Philippines, make it a habit to visit our Broker Hub page. You’ll find plenty of resources that can help you in this rewarding job. Due to the current health protocols and strict regulations, always check the PRC website on any announcement on cancellation and rescheduling of examinations.
