The Distinction Between a Real Estate Broker and a Real Estate Salesperson in the Philippines

The Distinction Between a Real Estate Broker and a Real Estate Salesperson in the Philippines

Many people use the terms real estate broker, real estate agent, and real estate salesperson interchangeably. You often see these titles on social media profiles, business cards, advertisements, and property listings. However, under Philippine law, these terms are not the same.

Republic Act No. 9646, otherwise known as the Real Estate Service Act (RESA), clearly distinguishes between a Real Estate Broker (REB) and a Real Estate Salesperson (RES). Understanding this distinction is important not only for real estate professionals but also for buyers, sellers, and property owners who want to ensure they are dealing with qualified and authorized practitioners.

One common misconception is that a real estate salesperson can operate independently as a “freelance agent.” Under RA 9646, this is not permitted. A Real Estate Salesperson must always be accredited under the supervision of a licensed Real Estate Broker and may perform real estate services only on behalf of that broker.

Likewise, the term “real estate agent” is commonly used in everyday conversation, but it is not a separate professional category recognized by the Professional Regulation Commission (PRC). The PRC officially recognizes the professional titles:

·         Real Estate Broker (REB) – a licensed professional who may independently practice real estate brokerage.

·         Real Estate Salesperson (RES) – an accredited practitioner who performs services exclusively under the supervision of a licensed broker.

Knowing the difference helps protect the public from unauthorized practitioners and promotes compliance with the Real Estate Service Act.

What Does the Law Say?

Real Estate Broker

Under Section 3(g)(4) of RA 9646, a Real Estate Broker is a duly registered and licensed natural person who, for a professional fee, commission, or other valuable consideration, acts on behalf of a party in a real estate transaction by offering, advertising, soliciting, listing, promoting, negotiating, mediating, or facilitating the sale, purchase, lease, mortgage, exchange, or other transactions involving real property or interests therein.

Simply put, a Real Estate Broker is an independently licensed professional authorized to practice real estate brokerage.

Real Estate Salesperson

A Real Estate Salesperson, on the other hand, is a duly accredited natural person who performs real estate services for and on behalf of a licensed Real Estate Broker.

Unlike brokers, salespersons are not licensed by examination. Instead, they are accredited by the PRC and must always work under the direct supervision and accountability of their supervising broker. They cannot independently enter into brokerage agreements or receive commissions directly from clients.

In short:

·         A Real Estate Broker is licensed to practice independently.

·         A Real Estate Salesperson works only under the authority of a licensed broker.

 By Gigi F. Bonquin REB REA REC

(Revised by ChatGPT from my previous blog on resaadvocates.com)