Real estate brokers in the Philippines have been requesting the Professional Regulations Commission (PRC) to create a dedicated national organization for real estate professionals, similarly how lawyers (Integrated Bar of the Philippines) and accountants (Philippine Institute of Certified Public Accountants) have their respective regulating organizations.
After we talked about the RESA Law and its importance for agents and brokers in our previous blog, we have enumerated and established what are considered as real estate services and professionals; a provision that explains why there’s a need for classification in Philippine Real Estate.
Considering how real estate contributes to the economy and is no longer considered as an informal sector, changes need to be adapted in order to professionalize the industry.
One of the ways to do that is the acquisition of a license as a real estate broker.
WHY IS IT SO IMPORTANT TO BE LICENSED?
- Having credentials are proof that you are qualified for the profession and field that you work in. This is much more apparent particularly for difficult disciplines like medicine, law and engineering.
- When working with someone or a company, you have more chances of building trust and credibility because of the background that supports you.
- You become an investment for yourself and your employer/career. There are more chances of earning more money because you are skilled and accredited.
- Depending on the year that you acquired your license and how recent it was, can be an indicator that you are up-to-date with the industry’s best practices. Although, having a license for a long time can also be advantageous that dictates the amount of experience you may have on the field.
By now you must be curious, “how can I become a Licensed Real Estate Broker in the Philippines?”
HOW IT WAS BEFORE
Before we jump into the present-day let’s take a short trip into the past. Before 2009, Real estate was not regulated by the government, with the exception of the Department of Trade and Industry (DTI) that licenses real estate professionals who plans to start a brokerage firm.
As for actual real estate transactions, it can be done by anybody at any given time and place. It was the definition of an informal profession that outsiders never took seriously; saying that it was all based on luck, effort and trends.
The only qualifications to become an established real estate professional back then, was to pass the Real Property Assessing Officer Exam by the Civil Service Commission; completed at least 120 hours of accredited training and have at least 5-10 years of experience in their practice.
After the RESA Law was implemented to professionalize real estate, the property market also enters a phase of flourish, as more and more people wanted to establish profitable business ventures. Since demand and supply were also proportionately growing, there needs to be some sort of control among the practitioners who wish to market and sell real estate in the Philippines.
Today, there are minimum qualifications that need to be met, in order to be identified as a real estate professional or become eligible to take the Real Estate Brokers Licensure Examination. As we have mentioned in our RESA Law blog, you must be:
- A Filipino Citizen (not stated whether naturalized or natural-born)
- A graduate of the course BS Real Estate Management
- Not convicted by a court of law for any criminal offense
- Not found guilty of immoral or dishonorable conduct by the PRC
- Psychologically fit for the profession
THE MOST PREVALENT FACTOR
Formerly, any bachelor’s degree or equivalent taken from an educational institution that is recognized by the Commission on Higher Education (CHED) can be considered for licensure exam eligibility.
Since the only way to become a licensed real estate broker is to take and pass the Real Estate Licensure Examinations, the RESA Law has specified that all applicants and candidates are required to have a 4-year degree, Bachelor of Science in Real Estate Management.
Take a look at this open directory for schools that offer real estate courses. It also includes their contact details so you can send them inquiries to confirm what they offer, document requirements and corresponding fees.
With this new requirement of educational attainment set in place, previously required documents are no longer asked for, such as:
- Certificate from an Accredited Training Provider
- Proof showing Years of Experience
- Prerequisite Certificate of Registration
- Professional License from Department of Trade and Industry (DTI)
This is why a lot of unlicensed practitioners who are not BS REM graduates submitted a plea for the Professional Regulatory Board of Real Estate Services to create an alternative accreditation program. However, this issue is yet to be addressed.
TAKING THE EXAM – BEFORE, DURING & AFTER
In order to apply for a license there are some requirements that need to be submitted, prior to taking the exam and needing to pass. The Real Estate Brokers Licensure Exam is only scheduled once a year by the Professional Regulatory (PRC) with the supervision of the Board of Real Estate Service (PRBRES).
According to Edukasyon.ph, remember to bring the following for submission:
- Bachelor of Science in Real Estate Management from an accredited school
- Original and photocopies of NSO birth certificate or valid passport
- Original and photocopies of Transcript of Records (TOR) with Special Order, Date of Graduation, school seal, photo, and remarks “For Board Examination Purposes Only”
- Original and photocopies of NBI clearance
- Original and photocopies of NSO Marriage Certificate (for married women)
- Community tax certificate or cedula
- 4 pcs. colored passport photos (should have been taken with a full name tag)
- Completed exam application form
- Metered documentary stamps
- Examination fee of PHP900
Once application is done, the permit to take the exam will be released. There’s also an option to apply online. About two weeks after the examination, the list of board passers, topnotchers, and the top performing schools on the PRC official website. You may access your results with an online verification and login credentials.
BECOMING A LICENSED REAL ESTATE BROKER
Once you pass the real estate brokers licensure exam, applying for a license is easy. All you have to do is accomplish a form online, pay fees and prepare documents for submission to the PRC Central Office.
The fact that there is a standard procedure that needs to be followed, are signs of the real estate industry becoming more professionalized and relevant in the Philippine economy.
Real Estate Brokers are by law, eligible to facilitate offers, advertisement, solicitation, listing, promotion, mediation, negotiation, or the actual meeting of minds between parties on the sale, exchange, mortgage, lease, joint venture, or any similar transaction involving real properties.
Tech Guy & Real Estate Investor super passionate about helping real estate agents, brokers and developers grow their business to reach new levels of success.