1. The RESA Law requires that you hire a Licensed and Registered Broker.
If you are engaging in the practice of real estate for properties you do not own, and you are not a licensed and registered real estate broker with the PRC, you are in for a big trouble.
The RESA Law of RA 9646, prohibits unlicensed/unregistered individuals from engaging in real estate practices for properties that they do not own. What then, can be considered as engaging in real estate practices?
Based on Section 27 of the RESA Law, acts constituting the practice of real estate service are as follows:
“Any single act or transaction embraced within the provisions of Section 3(g), Rule II hereof, as performed by real estate service practitioners, shall constitute an act of engaging in the practice of real estate service.”
Furthermore, Section 3(g) states that:
“g. “Real estate service practitioners” shall refer to and consist of the following:
(1) Real estate consultant – a duly registered and licensed natural person who, for a professional fee, compensation or other valuable consideration, offers or renders professional advice and judgment on: (i) the acquisition, enhancement, preservation, utilization or disposition of lands or improvements thereon; and (ii) the conception, planning, management and development of real estate projects.
(2) Real estate appraiser – a duly registered and licensed natural person who, for a professional fee, compensation or other valuable consideration, performs or renders, or offers to perform services in estimating and arriving at an opinion of or acts as an expert on real estate values, such services of which shall be finally rendered by the preparation of the report in acceptable written form.
(3) Real estate assessor — a duly registered and licensed natural person who works in a local government unit and performs appraisal and assessment of real properties, including plants, equipment, and machineries, essentially for taxation purposes.
(4) Real estate broker – 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, or other similar transactions on real estate or any interest therein
(5) Real estate salesperson – a duly accredited natural person who performs service for, and in behalf of a real estate broker who is registered and licensed by the Professional Regulatory Board of Real Estate Service for or in expectation of a share in the commission, professional fee, compensation or other valuable consideration.”
Those who are exempted are as follows:
“SEC. 28. Exemptions from the Acts Constituting the Practice of Real Estate Service. The provisions of R.A. No. 9646 and the IRR 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 who are regulated by and registered with the Housing and Land Use Regulatory Board (HLURB) pursuant to law and other resolutions/regulations such as but not limited to Presidential Decree (PD) 957, as amended, and Batas Pambansa Blg. 220 and their Implementing Rules and Regulations;
(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”
2. Their Education and Experience can help in governing your buying and selling decision.
With their background and experience, you don’t need to know the technical jargons, the nitty-gritty of buying and selling a property. The role of the broker is to explain everything to you in layman’s terms so you won’t need to know everything about buying and selling real estate.
3. They save time for you.
You save time from all those property showings and visits. If you’re a buyer, you save time by letting your broker screen your requirements. If you’re a seller, your broker can act as your front and filter inquiries that can lead to serious ones. We’re all looking for more precious time in our lives and hiring a professional gives us that time.
4. They can give you Comparable Pricing.
If you are cost-conscious or are looking for a profit, your broker either has first-hand knowledge of the comparable sales done within the vicinity of the property you’re buying or selling. That way, you’ll have an educated knowledge of the prevailing market price within the area.
5. They can guide you on Market prices.
When you give your broker a budget requirement, your broker can give you several options that are within your budget range. He can give you several offers that are close to your ideal price, even pointing out factors why the property is a bit off or above your target price.
6. They can provide prevailing Market Conditions Information.
Professional Brokers are usually updated with the latest market conditions giving you the privilege of gaining first-hand information. They can disclose market information such as the prevailing market rates, the latest availability, profile of owners and buyers and other pertinent market information that can govern your selling or buying process.
7. You can count on their Professional Networking.
The real estate industry is a vast industry. With the RESA law in effect, Real Estate practitioners are classified as follows:
1. Real Estate Consultant
2. Real Estate Appraiser
3. Real Estate Assessor
4. Real Estate Broker (of which I am one).
5. Real Estate Salesperson
Some brokers network with other professionals and your real estate requirements may not have anything to do with buying or selling a property immediately. Your broker can provide you a list of references with whom they have worked and provide a background information to help you make a wise selection if in case you would need a professional to do a property appraisal for you or if you need to hire someone to help facilitate transfer of ownership.
8. They have the Negotiation Skills and honors Confidentiality.
The real estate industry usually involves big money and in some cases, involve, big personalities or people who just want privacy when it comes to real estate transactions. The role of the professional broker is to front for that private person or big personalities to mediate, transact, negotiate, with the other party until a deal is in place. You should hire a professional who are trained to present their client’s interest in the best light and who can keep things confidential.
9. They can assist on the Documentation aspects.
Real estate documentation rests squarely on the professional broker. But this does not mean that you should not consult a lawyer for the wording or specific provision that you want to include in the contract. At best, Real Estate Brokers and Lawyers should work hand-in-hand to come up with a mutually agreed contract for both parties. Contracts are flexible. It is highly recommended that you hire a lawyer to draft a comprehensive contract to ensure that agreements are spelled out clearly to the mutual satisfaction of both parties. The role of the broker is to identify what documentation requirements are needed right from the beginning up to the final stage of the transaction. A professional broker is trained to organize the documentation aspect of every real estate transaction.
10. You can count on them even after Sale Transactions.
A good broker is one who stays with you even after the deal has been consummated. For one, he can even provide a copy of your documents for your reference, in case, you may have lost or misplaced a document. Or if you just need to straighten out something or must have been confused, a professional broker can explain a deal with more clarity by giving a more objective perspective in the recently-closed transaction.
11. Build a Relationship with them for Future Business.
When you have identified a broker you can trust and who can deliver, usually, a real estate investor takes 5 to 7 real estate transactions over a lifetime with the same broker on the average. Real Estate transaction is usually a referral’s game. A broker’s goal is always to make his client happy and satisfied by meeting his client’s property requirements whether it is buying or selling a property so that any chance of repeat business, the client would always go back to that broker. After all, the real estate business is the bread and butter of a successful Real Estate Broker.