Professional Roles: Broker, Salesperson, and Appraiser
Understand the different real estate professional roles under RA 9646. Learn the scope of practice, licensing requirements, and legal boundaries for each profession.
The Real Estate Broker
“A real estate broker is a duly registered and 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 of real estate.”
What This Means
The broker is the principal professional in real estate transactions. Only brokers can: (1) independently represent clients, (2) sign exclusive authority to sell agreements, (3) receive commission directly from sellers/developers, (4) supervise salespersons, and (5) negotiate and close deals on behalf of clients. To become a broker: pass the PRC licensure exam (requires a 4-year degree + prescribed real estate subjects or a master's degree in real estate), register with PRC, and maintain an active license through Continuing Professional Development (CPD). A broker is personally liable for their professional acts.
- ONLY brokers can independently represent clients in transactions
- Can receive commission directly from sellers/developers
- Supervises and takes responsibility for their salespersons
- Licensing: PRC exam + college degree + real estate subjects
- Must maintain CPD credits for license renewal every 3 years
Real-World Scenario
Maria just passed the PRC Real Estate Broker licensure exam and received her license. She wants to start practicing immediately. A friend offers to let Maria sell his property for a 5% commission.
What does Maria need before she can legally practice?
The Real Estate Salesperson
“A real estate salesperson is a natural person duly accredited by a licensed real estate broker to perform any of the acts of a real estate broker but only in behalf of and under the direct supervision of the broker. A real estate salesperson shall perform real estate service for or in behalf of a licensed real estate broker only.”
What This Means
A salesperson works UNDER a licensed broker. they cannot operate independently. Key limitations: (1) Cannot receive commission directly from sellers/developers (must go through their broker), (2) Cannot sign contracts on behalf of clients without broker authorization, (3) Cannot hold earnest money (broker must handle), (4) Must be accredited with ONE broker at a time. To become a salesperson: complete a PRC-accredited salesperson training program (minimum 120 hours) and register with the PRBRES. Salespersons do not take a licensure exam but must still register and maintain their accreditation.
- Works ONLY under a licensed broker. cannot practice independently
- Commission must be paid THROUGH the broker (not directly)
- Accredited to ONE broker at a time. cannot work for multiple brokers
- Requirements: 120-hour PRC-accredited training + PRBRES registration
- No licensure exam required. but must complete the accredited program
Real-World Scenario
Salesperson Juan finds a buyer for a developer project. The developer offers to pay Juan's P300,000 commission directly to his personal bank account to "speed things up." Juan's broker, Broker Torres, is on vacation.
Can Juan receive the commission directly?
Appraisers, Consultants, and Other Real Estate Professionals
“A real estate appraiser is a duly registered and licensed natural person who, for a professional fee, compensation or other valuable consideration, performs appraisal and renders or issues such appraisal for any of the following purposes: to determine the market value, investment value, insured value, assessed value and other defined value of a specific parcel of property.”
What This Means
Beyond brokers and salespersons, RA 9646 recognizes other real estate professionals: (1) Appraiser. determines property values for banks, courts, and tax purposes; requires a separate PRC exam. (2) Consultant. provides advice on real estate investments, feasibility studies, and project development; requires a separate PRC exam. (3) Assessor. a government employee who determines assessed values for taxation. The key rule: you can only practice the profession for which you are LICENSED. A broker cannot issue a formal appraisal report (that requires an appraiser license). However, a broker can perform a Comparative Market Analysis (CMA) for listing purposes. this is not the same as a formal appraisal.
- Appraiser: determines formal property values (separate PRC license required)
- Consultant: provides investment/development advice (separate PRC license)
- Assessor: government role for tax assessment (not a private practice role)
- Each role requires its OWN license. cannot cross-practice
- Broker can do CMA (informal) but NOT a formal appraisal report
Real-World Scenario
A bank asks Broker Santos to provide a "formal appraisal report" for a property they are considering as loan collateral. Broker Santos has extensive market knowledge and can easily determine the property's value.
Can Broker Santos provide the formal appraisal?
Frequently Asked Questions
Can someone practice real estate without a license?
No. Section 29 of RA 9646 states: "No person shall practice or offer to practice real estate service in the Philippines or offer himself as a real estate service practitioner, or use the title, word, letter or any sign tending to convey the impression that one is a real estate service practitioner, unless he is duly registered and holds a valid certificate of registration and professional identification card." Violations carry fines (P100,000-P1,000,000) and imprisonment (2-4 years).
How do I upgrade from salesperson to broker?
To become a broker: (1) Complete a 4-year college degree (any course) + take the prescribed real estate subjects (if your degree didn't include them), OR complete a master's degree in real estate. (2) Apply for and pass the PRC Real Estate Broker Licensure Exam (given twice a year). (3) Register with PRC and PRBRES. Your salesperson experience counts as practical knowledge but does not substitute for the exam. Many brokers start as salespersons to gain experience before taking the exam.
Can a broker practice as both broker and appraiser?
Only if they hold BOTH licenses. A person can take both the broker and appraiser PRC exams and hold dual licenses. However, they should be careful about conflicts of interest. appraising a property they are also selling creates a bias. In practice, most professionals focus on one specialization. Banks typically require that the appraiser be INDEPENDENT (not the same person as the selling broker) to ensure unbiased valuations.