A game changer in professionalizing & regulating the practice of real estate brokers in the real estate industry in the Philippines was approved on June 29, 2009. This game changer was called the RESA Law or Real Estate Service Act.
Before, being a broker was under the Department of Trade and Industry (DTI), but since a big move to professionalize the practice of real estate took a monumental shift when RESA Law 9646 was approved, brokers are now under the Philippine Regulatory Commission (PRC). This clears that a broker is now a professional and licensed to practice.
What is a licensed professional broker
According to section 3 of RESA Law 9646, a licensed professional broker is a duly registered & licensed natural person, who for a professional fee, commission or other valuable consideration, acts as an agent, of a party in a real estate transaction to offer, advertise, solicit, list, promote, mediate, negotiate or effect the meeting of the minds on the sale, purchase, exchange, mortgage, lease or joint venture, or other similar transactions on real estate or any interest therein.
Benefits of engaging a licensed real estate broker
A licensed real estate broker undergoes training in order to update their knowledge and expertise in the different processes like documentation, applying the applicable laws and tax compliance, etc.
When engaging or sourcing a real estate broker, you must be sure that he/she really is a licensed and professional to practice real estate. By doing that, you can request a copy of their PRC ID and check if the card carrying members or affiliates of established Real Estate Organizations sanctioned by the Securities & Exchange Commission (SEC).
A licensed broker is bound by the Code of Ethics to practice its profession. Because of this, they are required to behave in a professional manner.