Types of Real Estate Practitioners
Learn about the five types of real estate service practitioners recognized under RA 9646: brokers, salespersons, appraisers, assessors, and consultants. their roles, qualifications, and scope of practice.
Brokers and Salespersons
“Real estate salesperson - a duly accredited natural person who performs service for, and in behalf of a real estate broker who is registered and licensed by the Professional Regulatory Board of Real Estate Service for or in expectation of a share in the commission, professional fee, compensation or other valuable consideration.”
What This Means
Brokers and salespersons are the transaction-focused practitioners. The key distinction: brokers are "registered and licensed" while salespersons are "accredited." Salespersons work "for, and in behalf of" a broker, expecting a share of the broker's commission. The broker is the principal; the salesperson is the broker's representative.
- Brokers: registered and licensed, can practice independently
- Salespersons: accredited (not licensed), work for a broker
- Salespersons earn a share of the broker's commission, not direct client fees
- Brokers take the PRC licensure exam; salespersons are accredited by the Board
- There must be at least 1 licensed broker for every 20 accredited salespersons (Section 32)
Real-World Scenario
A realty firm has 2 licensed brokers and 50 accredited salespersons operating under them.
Is this compliant with RA 9646?
Real Estate Appraisers
“Real estate appraiser - a duly registered and licensed natural person who, for a professional fee, compensation or other valuable consideration, performs or renders, or offers to perform services in estimating and arriving at an opinion of or acts as an expert on real estate values, such services of which shall be finally rendered by the preparation of the report in acceptable written form.”
What This Means
Appraisers specialize in determining real estate values. Their work must result in "the preparation of the report in acceptable written form". an oral opinion is not enough. They estimate values, arrive at opinions, and act as experts. Their written reports carry legal weight and are used by banks, courts, and government agencies.
- Must be "registered and licensed" (pass PRC appraiser exam)
- Services: estimating values, arriving at opinions, acting as expert
- Must produce a written report in "acceptable written form"
- Used for bank loans, estate settlements, tax assessments, court cases
- Must post a professional indemnity bond (Section 26)
Real-World Scenario
A bank requires an appraisal for a property being offered as loan collateral. The loan applicant's cousin is a licensed real estate appraiser. The cousin offers to appraise the property at a "favorable" value to help secure the loan.
What are the issues here?
Consultants and Assessors
“Real estate consultant - a duly registered and licensed natural person who, for a professional fee, compensation or other valuable consideration, offers or renders professional advice and judgment on: (i) the acquisition, enhancement, preservation, utilization or disposition of lands or improvements thereon; and (ii) the conception, planning, management and development of real estate projects.”
What This Means
Consultants provide advisory services. professional advice and judgment on acquisition, development, and management of real property. They don't transact properties (that's the broker's role). Assessors are the government counterpart: they work in local government units performing appraisal and assessment for taxation purposes. Both require separate licenses.
- Consultants: advise on acquisition, preservation, utilization, disposition of land
- Consultants: advise on conception, planning, management of real estate projects
- Assessors: work in LGUs, appraise and assess properties for taxation
- Consultant exam requires 10+ years as broker/assessor/appraiser, or 5+ years as licensed appraiser
- Each license type has its own PRC exam (except salespersons)
Real-World Scenario
A developer wants to build a mixed-use complex. They hire a licensed real estate consultant to do a feasibility study. After the study, the consultant wants to also handle brokerage. selling the units to buyers.
Can the consultant also sell the units?
Frequently Asked Questions
Can one person hold multiple real estate licenses in the Philippines?
Yes. A person can hold licenses as broker, appraiser, and consultant simultaneously, provided they pass the respective PRC licensure exams and maintain all registrations current.
What is the difference between a real estate appraiser and assessor?
An appraiser is a private practitioner who estimates real estate values for a professional fee. An assessor works in a local government unit (LGU) and performs appraisal and assessment of real properties for taxation purposes. Both require PRC licenses.
What experience is needed to become a real estate consultant?
Under Section 14(c), a consultant applicant must show at least ten (10) years experience as a licensed real estate broker, assessor, bank/institutional appraiser, or person performing real property valuation. or at least five (5) years as a licensed real estate appraiser.