Question 1

What's the difference between a broker and a salesperson?

Accepted Answer

A real estate broker has passed the PRC board exam and can operate independently, hire salespersons, and receive commissions directly. A salesperson works under a licensed broker's supervision and cannot transact independently. Brokers have higher educational requirements (BS REM since 2017) and broader legal responsibilities for transactions.

Question 2

Why should I work with a licensed broker?

Accepted Answer

Licensed brokers are regulated by the PRC and bound by the Real Estate Service Act (RESA). They carry professional liability, must complete continuing education, and follow a strict Code of Ethics. Working with unlicensed agents ("colorum") offers no legal protection, no recourse for disputes, and may expose you to fraud. Verify license status before any transaction.

Question 3

What are the benefits of working with an experienced broker?

Accepted Answer

Experienced brokers bring years of market knowledge, established networks, and proven negotiation skills. They've navigated various market conditions and can provide insights from handling diverse transactions. Their track record often includes relationships with developers, banks, and other industry professionals that can benefit your transaction.

Question 4

What is the BS REM degree requirement for brokers?

Accepted Answer

Since May 2017, aspiring real estate brokers must hold a Bachelor of Science in Real Estate Management (BS REM) degree before taking the licensure exam. This requirement ensures brokers have formal education in property valuation, real estate law, property management, and real estate finance. The BS REM curriculum is regulated by the Commission on Higher Education (CHED).

Question 5

What does passing a difficult board exam indicate?

Accepted Answer

Passing a board exam with a low passing rate (under 45%) demonstrates exceptional preparation and competence. These examinations are among the most rigorous in recent history, making successful licensees highly tested professionals. This reflects strong foundational knowledge in real estate law, property valuation, and ethical practice.

Emily O. Nuguid

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December 2017 Board Exam

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