Practicing Real Estate Brokerage With Pending License

Clip Art by Erica Garcia-Lavin (

With the recent approval of the RA 9646 last June 29, 2009, and the subsequent release of the Implementing Rules and Regulation (IRR) of the same law through Resolution No. 2 Series of 2010 (dated July 21, 2010), the practice of real estate brokerage has indeed became truly professionalized.

Henceforth, the issuance of the licenses of brokers will now be done by the Professional Regulation Commission (PRC).

There is a also heftier penalty for illegal practice of real estate brokerage : a maximum of four (4) years imprisonment, or P 200,000.00 fine, or both such fine and imprisonment. We hope that the other professions moonlighting into the real estate service practice should take note! Ditto to some unscrupulous regulatory government officers who regularly dips their hands into this profession with impunity.  🙂

If one wants to practice this profession, then he should get a proper license just like everyone else.

Take note also that issuing a Special Power of Attorney (SPA) to a friend, relative, or other people to sell ones property is still okay – provided that the SPA should not specify any commission or professional fee for that service – otherwise it shall clearly be a practice of real estate brokerage -which under RA 9646 is illegal if one is not duly licensed.

Hopefully to be finally gone will be the days of fly-by-night sales persons who preys on unsuspecting property owners, and charges more than the standard industry practice for their commissions (now also called under RA 9646 as professional fee) – and whose unprofessionalism  gives legit brokers a bad name.

During the interim period when the existing brokers has already applied for their license with the PRC, can they already practice their profession?

Yes, of course! While it is still under process they can already proceed with practicing their profession. However, after July 30, 2011 this is no longer allowed. This is contained in the joint DTI and PRC Memo dated 14 January 2010, as follows:




“Pending the appointment of the Chairman and Members of the Professional Regulatory Board of Real Estate Service (PRBRES), pursuant to Republic Act No. 9646, all Real Estate Brokers, Real Estate Appraisers and Real Estate Consultants, whose licenses issued by the Department of Trade and Industry (DTI) expired on December 31, 2008 and onwards, are required to file their application for registration without examination under Section 20, Article III of R.A. No. 9644 [sic? 9646] from January 12, 2010 to July 30, 2011, stamped received by the Professional Regulation Commission and/or the PRBRES. Such application shall be deemed proof of authority for the lawful exercise of their profession until such time that the PRC and the PRBRES shall have approved it.

For the guidance of all concerned, the contact address of the PRC is P. Paredes St., Sampaloc, Manila,

Attention : Office of the PRB Secretary

Manila, 12 January 2010

(Sgd. ) NICOLAS P. LAPEŇA, JR.                                  (Sgd.)VICTORIO MARIO A. DIMAGIBA

Chairman                                                                                                    Director

Professional Regulation Commission                       Bureau of Trade Regulation & Consumer Protection

Department of Trade and Industry ”

Several Real Estate Brokers from Iligan City has already applied for their license with the PRC last year. The undersigned has also joined the herd and applied last October 29, 2010 also with the PRC.

Like the rest, we are just waiting with bated breath for the processing, and God willing for the approval of our licenses.

A new profession at any stage of life is like adventure. And just as Capt. Kirk said in Star Trek  to boldly go where no man has gone before, so we also say (tongue-in-cheek, lol) ad eundum quo nemo ante iit.

Yeah, sort of !  🙂


11 thoughts on “Practicing Real Estate Brokerage With Pending License

  1. Hi ,
    Just want to ask .
    How can the licensed real estate salesperson protected from a dishonest
    licensed broker ? Where can they seek for help?


  2. Hi bhevs,

    First, under RA 9646 you will be only accredited as a real estate salesperson under the supervision of a licensed and registered Real Estate Broker (REB). You can’t have a license as a Real Estate Salesperson as it is the RE Brokers who will be given the license by the PRC and what you will have is only accreditation. You cannot also deal directly with a client without the knowledge of your REB. There is a Code of Ethics to be followed by all real estate service practitioners – and one of them is that you cannot go directly to just any REB you want without the knowledge and consent of your REB.

    Second, if there is a conflict between you and your REB or any other REB, then in my opinion, you can complain administratively to the PRC who has the power to remove or suspend the license of that particular REB. For more serious situations, you can file a case in the court, of course.

    Third, I encourage you to take the board exam for REB yourself. Why be a Salesperson, when you are qualified to take the exam? There will be an exam this coming November 2011 (see the PRC announcement in their website).

    Fourth, I suggest that you take the seminar for Real Brokers given by an accredited service provider – to answer all of your questions regarding real estate brokerage in the Philippines.

    I hope I have answered your question adequately. God bless.

  3. What do we do with people who practice real estate brokerage without a license? If we know of someone who practice real estate without a license, do we have to report them? Where?

    • KV,

      In reply to your question, I will post here the relevant provision of RA 9646:

      ” SEC. 37. Enforcement Assistance to the Board. The Board shall be assisted by the Commission in carrying out the provisions of this Act and its implementing rules and regulations and other policies. The lawyers of the Commission shall act as prosecutors against illegal practitioners and other violators of this Act and its rules. The duly constituted authorities of the government shall likewise assist the Board and the Commission in enforcing the provisions of this Act and its rules.”

      Just like in Medicine, or Engineering, illegal practitioners of real estate brokerage shall be also dealt with in similar manner. The hard part here is to get somebody to testify. However, with the incoming organization of the Accredited Professional Organization (APO) for brokers, etc… a professional organization will have to be in the forefront of protecting this fledgling profession.

  4. Hi!
    I’m a DTI licensed real estate saleman for 14 years now and also a merchandize broker for 5 years and concentrate the brokerage of real estate and merchandize. I attended 4 comprehensive real estate seminars and review since 1996 but was not able to take the exam due to reasons cant be avoided. I also attended several Continuing Education Seminars conducted by PAREB CEBU REALTORS BOARD1996,REBAB 1997,REAL ESTATE EDUCATION CENTER 1999,PAREB-CENTRAL CEBU BOARD OF REALTORS 2003, and in NREA in 2008, 2010 and 2011.
    Are my old training certifications qualify for the accreditation for the number of credit units and for the renuwal of my salesmans license and later for Brokers license?

    • I think the seminars you have taken as a Real Estate Salesperson might be accredited by the PRC provided the one giving the CPE are duly accredited service providers until July 31, 2011. After that date they have to apply for accreditation with the PRB-RES and the PRC. Regarding the Broker’s license, you have to take the examination as you are not a REB as of now – and one of the requirements for you to be allowed to take the exam for Brokers is to undergo a 120 credit units of real estate subjects from accredited service providers.
      Some small distinctions I would like to point out (as mentioned to us during one of our latest seminar) a) A Real Estate Salesperson is not issued a license by PRC but is only accredited in behalf of a Real Estate Broker who is the one registered and licensed by the PRB-RES. In the old MO 39 of the DTI (Section 2), a Real Estate Salesman is licensed. This is one of the key difference between RA 9646 and the MO 39 – which is already superseded. b) The licensing without examination is only for those who are already REBs under the DTI – and not for those Real Estate Salesman, regardless of their experience, or seminars taken.

      By the way, some unverified grapevine news within the industry (please confirm with the PRC in your area), says that the deadline for the registration of the RE Salespersons may be moved from July 30, 2011 to December 31, 2011 – by the PRB RES. If this is true, and please do verify this, then RE Salespersons can still register up to that date by complying with the requirements of RA 9646.

  5. Hi Sir what is the requirements to take a brokers license exam? if you have not completed your units in College? pwede years of experienced in real estate and seminars (cpe) attended?

    • jm,
      Under the IRR of RA 9646 here’s the requirement:
      ” Section 14. B) A holder of relevant bachelor’s degree from a state university or college, or other educational institution duly recognized by CHED: Provided, That he/she has completed at least one hundred twenty (120) credit units of real estate subjects and training from accredited service providers, as may be determined by the Board; Provided, further, That as soon as a course leading to Bachelor’s Degree in Real Estate Service is implemented by the CHED, the Board shall make this course a requirement for taking the licensure examination

      Years of experience is not enough – as the law requires a relevant Bachelor’s Degree. This is related to the professionalization of the real estate industry.

  6. Hello,

    do i have to go to a real estate school to get a real estate license? If so, is there a school in cebu that i can go to? thanks for your help…

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.