RESA LAW 9646
The advent of the RESA Law (Real Estate Service Act) Law which was approved on June 29, 2009, was a game changer in professionalizing & to regulate the practice of real estate brokers in the realm of the real estate industry in the Philippines.
At the onset, being a Broker was formerly under Department of Trade & Industry (DTI), the big move to professionalize practice of real estate took a monumental shift when RESA LAW 9646 was enacted, Brokers now fall under Philippine Regulatory Commission (PRC).
It clearly defines that a Broker, is now a professional and licensed to practice. In the same token that doctors, lawyers, engineers and the like are called professionals. Brokers accrued the same status, i.e. professional.
What is a Licensed Professional Broker
A duly registered & 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, or other similar transactions on real estate or any interest therein (Sec.3. G.4 of RESA LAW 9646)
Benefits of engaging a licensed real estate broker
A licensed real estate broker undergoes thorough training, is required to update their knowledge and know how in the areas, such as documentation, applying the applicable laws and tax compliance relative to the handling and disposition of properties, to include but not limited to the sale or lease, joint venture sale and such other transactions involving the disposition of properties. A seasoned professional broker brings a wealth of experience to the table for the benefit of the transacting parties which helps in streamlining the transaction process and avoid common pitfalls not usually known to the transacting parties, thereby preventing instances of law suits between the transacting parties.
Red Flags… Beware!
When engaging or sourcing a real estate broker, prudence dictates that we check if they are indeed licensed by requesting a copy of their PRC ID and if the card carrying members or affiliates of established Real Estate Organizations sanctioned by the SEC and other government agencies such as HLRUB and the like.
When dealing with unlicensed agents or would be brokers, there is always the risk that the requisite steps to ensure a smooth flow in a real estate transaction or deal is not done as would be brokers/agents are not bound by established code of ethics and best practices done by licensed professional brokers. Most common concerns by property owners either as buyers or sellers are when dealing with unlicensed brokers and agents - after sellers receipt of payment has been made and they get their fees, follow up services such as the payment of taxes and fees to various government agencies, LGU's included and the title transfer are left with the property owners when in practice it should be done by the procuring party which should be a licensed broker.
What to expect from Licensed Professional Brokers
A licensed Broker, is bounded by Code of Ethics to practice its profession.
Brokers, who are now licensed and professionals should behave in a manner expected of such, i.e. professional in dealings, well informed as to their craft.
Conduct their profession and business honorably......wouldn’t you want to be represented by a legit person, professional and licensed, who can very much give you a sound advise and recommendations on your real estate interests (?). Check out more details on this in Section 29 of RESA LAW 9646.
Faced with an opportunity to earn big margin or windfall, one can get excited and be carried away after determining the fair market value in the sale of amount of the property. Hence, prudence dictates to always be wary with dealing with just anybody, or even someone who comes as highly recommended without first checking the person’s background if indeed you’re dealing with a legit licensed professional Broker.
When choosing a Broker to deal with, either to sell or lease out your property, it is recommended to do a bit of research to check his / her background and credentials. It’s best to get a Broker who is an authority / expert of an area and field. Meaning, is he a Broker who specializes in residential and in the area where your property is located?
Afterall, you should be well represented by a licensed and professional real estate Broker, who is competent & knowledgeable… licensed and professional Broker?
On a personal note, our clients evolve with us, as their real estate purchase optimize in capital appreciation, we transcend from clients to friends. We believe in building relationships that transcends time and transactions.