Who Must Be Licensed Under RA 9646
Learn which real estate practitioners are required to hold a PRC license under the Real Estate Service Act, who is exempt, and the penalties for practicing without one.
Who Is Covered by RA 9646
“No person shall practice or offer to practice real estate service in the Philippines or offer himself/herself as real estate service practitioner, or use the title, word, letter, figure or any sign tending to convey the impression that one is a real estate service practitioner, or advertise or indicate in any manner whatsoever that one is qualified to practice the profession, or be appointed as real property appraiser or assessor in any national government entity or local government unit, unless he/she has satisfactorily passed the licensure examination given by the Board, except as otherwise provided in this Act, a holder of a valid certificate of registration, and professional identification card or a valid special/temporary permit duly issued to him/her by the Board and the Commission, and in the case of real estate brokers and private appraisers, they have paid the required bond as hereto provided.”
What This Means
The law requires anyone who practices real estate services. including selling, buying, leasing, or appraising real property for others. to hold a valid PRC license. This covers real estate brokers, salespersons, appraisers, consultants, and assessors. Even using a title that implies you are a practitioner is prohibited without a license.
- All real estate service practitioners must pass the PRC licensure exam
- Covers brokers, salespersons, appraisers, consultants, and assessors
- A valid certificate of registration and professional ID card are required
- Brokers and private appraisers must additionally post a bond
- Even advertising or implying you are a practitioner is prohibited without a license
Real-World Scenario
Mario has been helping his neighbors sell their properties for years. He collects a "referral fee" for each successful transaction. He has never taken the PRC licensure exam and does not hold any license.
Is Mario violating RA 9646?
Who Is Exempt from Licensing
“The provisions of this Act and its rules and regulations shall not apply to the following: (a) Any person, natural or juridical, who shall directly perform by himself/herself the acts mentioned in Section 3 hereof with reference to his/her or its own property, except real estate developers; (b) Any receiver, trustee or assignee in bankruptcy or insolvency proceedings; (c) Any person acting pursuant to the order of any court of justice; (d) Any person who is a duly constituted attorney-in-fact for purposes of sale, mortgage, lease or exchange, or other similar contracts of real estate, without requiring any form of compensation or remuneration; and (e) Public officers in the performance of their official duties and functions, except government assessors and appraisers.”
What This Means
Property owners dealing with their own property are exempt. but real estate developers are explicitly excluded from this exemption. An attorney-in-fact (SPA holder) can transact on an owner's behalf, but only if they do it without compensation. Court-appointed receivers/trustees and public officers acting in official capacity are also exempt.
- Owners dealing with their own property are exempt, EXCEPT real estate developers
- Attorneys-in-fact are exempt only if they receive NO compensation
- Court-appointed receivers, trustees, and assignees in insolvency are exempt
- Public officers in official duties are exempt, except assessors and appraisers
- If you receive compensation for real estate acts on behalf of others, you need a license
Real-World Scenario
Elena owns three condominium units. She personally advertises them for rent on Facebook and negotiates lease terms directly with tenants. Her friend Pedro, who is not a broker, helps sell one unit for a P50,000 "thank you" fee under an SPA.
Are Elena and Pedro both exempt?
Penalties for Practicing Without a License
“Any violation of this Act, including violations of implementing rules and regulations, shall be meted the penalty of a fine of not less than One hundred thousand pesos (P100,000.00) or imprisonment of not less than two (2) years, or both such fine and imprisonment upon the discretion of the court. In case the violation is committed by an unlicensed real estate service practitioner, the penalty shall be double the aforesaid fine and imprisonment.”
What This Means
RA 9646 carries serious criminal penalties. The base penalty is a fine of at least P100,000 or imprisonment of at least 2 years, or both. For unlicensed practitioners, the penalty is DOUBLE. meaning at least P200,000 fine or at least 4 years imprisonment, or both. The law sets minimum penalties with no stated upper limit, leaving the maximum to the court's discretion.
- Base penalty: at least P100,000 fine or at least 2 years imprisonment, or both
- For unlicensed practitioners: penalty is DOUBLED
- Court has discretion on the exact amount/duration
- Corporate violators: the partner, president, director, or manager is personally liable
- Both criminal fine and imprisonment can be imposed simultaneously
Real-World Scenario
A property developer hires "sales agents" who are not PRC-licensed or accredited salespersons. These agents directly negotiate prices and close deals with buyers on behalf of the developer.
Who is liable and what are the penalties?
Frequently Asked Questions
Do I need a license to sell my own house in the Philippines?
No. Under Section 28(a) of RA 9646, persons dealing with their own property are exempt from the licensing requirement. However, real estate developers are explicitly excluded from this exemption.
What is the penalty for practicing real estate without a license in the Philippines?
Under Section 39 of RA 9646, the penalty for unlicensed practice is DOUBLE the base penalty. at least P200,000 fine or at least 4 years imprisonment, or both, at the court's discretion.
Can someone with a Special Power of Attorney (SPA) sell property without a license?
Only if they do it without any form of compensation or remuneration. Section 28(d) exempts attorneys-in-fact, but the exemption explicitly requires that it be done "without requiring any form of compensation or remuneration."