Real Estate Broker

Also known as: Licensed Broker · Real Estate Agent · Property Broker

Definition

Real Estate Broker, in the Philippines, is a licensed professional who acts as an agent in real estate transactions, facilitating the sale, purchase, exchange, lease, or mortgage of real property. Under the Real Estate Service Act (RESA) or Republic Act No. 9646, brokers must hold a Bachelor of Science in Real Estate Management (BS REM), pass the PRC licensure examination, and be registered with the Professional Regulatory Board of Real Estate Service (PRBRES). Brokers are responsible for supervising real estate salespersons and ensuring that transactions conform to local laws. (Wikipedia, Broker Govt)

Identities

Source Type	Identity
Wikipedia	Real estate broker
Wikidata	Q869687
DBpedia	Real_estate_broker
ProductOntology	N/A
Wiktionary	broker
Library of Congress Subject Headings (LCSH)	Real estate agents
MeSH	N/A
NCBI Taxonomy	N/A
AGROVOC	N/A
Google Scholar	real estate broker RESA law PRBRES licensure BS REM Philippines
ConceptNet	broker
OpenCyc	N/A

Also Known As

Licensed Broker
Real Estate Agent
Property Broker

Examples and Analogies

Independent Broker: A licensed professional who operates their own brokerage firm, listing and selling residential and commercial properties.
Corporate Broker: A valuer or broker employed by a major real estate developer to manage the sale of vertical condominium units.

Usage Scenarios

1. Closing a Property Sale

A licensed broker drafts the Deed of Absolute Sale, coordinates tax payments at the BIR, and secures the transfer of title for a client.

2. Supervising Salespersons

A broker registers their accredited salespersons with the PRC, reviewing their transaction documents to ensure legal compliance.

Strategies

Hire only PRC-licensed real estate brokers to facilitate property transactions to protect against fraud and legal disputes.
Verify the broker’s active registration card and HLURB/DHSUD accreditation before signing any broker agreements.

Security and Safety Measures

Ensure that all broker commission agreements and transaction terms are in writing and notarized.
Utilize secure escrow accounts or manager’s checks for property payments, avoiding cash handovers to agents.

Historical Context

Prior to 2009, real estate brokerage was practiced informally under various DTI regulations. The enactment of the RESA Law (RA 9646) in 2009 professionalized the practice, making a college degree in Real Estate Management (BS REM) and a PRC board exam mandatory to practice. This led to standardized practices and codes of ethics aligned with international standards, protecting buyers from unlicensed practitioners. (Wikipedia)

Challenges and Controversies

Unlicensed Practice (‘Colorum’)

Numerous unlicensed agents facilitate property sales, bypassing regulatory controls and exposing buyers to fraud risks.

Sales Commission Disputes

Navigating commission splits and developer payout delays, which can impact the broker’s business cash flow.