Why You Should Always Work With a Licensed Real Estate Broker in the Philippines

Anyone can post a listing. Not everyone can legally broker the sale. Here's how to check, and what an unlicensed agent can cost you.

Is the person handling your property deal a licensed real estate broker in the Philippines? It is worth asking, because a great many people who call themselves "brokers" or "agents" online have no license at all. The listing looks real, the photos look real, and the confidence certainly looks real. None of that is a license.

This matters for more than paperwork. Working with an unlicensed agent can cost you a deposit, a fair price, or a clean title, and it can leave you with no one accountable when things go wrong. This guide covers who the law requires to be licensed, what can go wrong when they're not, and how to check in five minutes before you share a single document.

Anyone Can Post a Listing

Lamudi, Carousell, and Facebook are open to anyone with an account. A polished photo, a quick reply, and a long list of properties prove nothing about whether the person behind them is allowed to broker a sale.

The same goes for a page with thousands of followers or a viral house tour. Popularity is not a license. Before money or documents change hands, ask who is really handling the transaction, and whether the law allows that person to do it.

What the Law Says

The practice of real estate service is regulated by the Real Estate Service Act of the Philippines, Republic Act No. 9646, often called RESA. Under it, no one may practice or offer to practice as a real estate broker, appraiser, or consultant without a valid license from the Professional Regulation Commission (PRC).

Here's what many buyers and sellers don't know: real estate salespersons are not licensed brokers. A salesperson must be accredited and must work under the direct supervision of a licensed broker, who is accountable for them. So when someone says "I'm an agent," the real question is: which licensed broker do you work under?

RESA treats unlicensed practice as a crime, not a technicality. Its penal provisions allow a fine, imprisonment, or both. The law takes it this seriously because the public can be badly hurt by it.

There are narrow exemptions. An owner selling their own property, for example, does not need a license. But a cousin, a friend, or a "referral" who takes a cut on someone else's property is a different matter.

What Can Go Wrong With an Unlicensed Agent

The most serious risk is losing your money. News reports and viral posts have described people posing as agents who collected reservation fees, deposits, or even full payments, then vanished. Often the property was not theirs to sell or lease, or it didn't exist at all.

The quieter risks are more common, and just as costly.

Overpricing. An unqualified agent may price a property far above the market to make the listing look attractive to the owner, or pad the price to fatten a commission. The seller waits months with no offers, or the buyer overpays without ever realizing it.

Skipped due diligence. Someone has to confirm that the title is genuine and clean, that real property taxes are paid, that the seller actually has the right to sell, and that the property matches its documents. When this is skipped, problems surface late, usually after money has changed hands.

Wrong computations. A sale involves capital gains tax, documentary stamp tax, transfer tax, and registration fees, and someone has to work out who pays what. If the figures are wrong or never explained, the surprise arrives at closing, sometimes big enough to kill the deal.

No one accountable. If an unlicensed agent disappears or makes a costly mistake, there is no license on the line and no professional board to answer to.

Licensed Broker vs. Unlicensed Agent

A licensed broker is allowed by law to broker a sale, can be verified with the PRC, and answers to a professional board that can suspend or revoke their license. They supervise and answer for their salespersons, check the title and documents, and prepare the tax and cost computations in writing when you ask.

An unlicensed "agent" has none of that. Their credentials cannot be verified, there is no standard for the checks they do, and the computations are often never prepared at all. If something goes wrong, your only real option is usually the courts.

How to Check an Agent in Five Minutes

You don't need to be suspicious of everyone. You only need to ask the questions a real professional will be glad to answer.

Start with their full name and PRC license number. If they are a salesperson, ask for their accreditation and the name of their supervising broker.

Then verify the license yourself through the PRC's online verification service, rather than relying on a screenshot or a business card.

Ask which brokerage they belong to and where its office is. Ask for a written breakdown of the price, taxes, and fees before you commit, and ask to see the title and tax declaration before paying any reservation fee.

A genuine professional will answer all of these without fuss. Someone who dodges them has told you what you need to know.

Red Flags to Walk Away From

Pressure and secrecy are the two signs that show up in almost every property scam. Be cautious when someone pushes you to pay a reservation fee today because "many buyers are interested," or asks you to send money to a personal bank or e-wallet account instead of the developer, the seller, or a company account.

Walk away, too, if they won't let you see the title or other documents, only send blurry photos of them, refuse to meet at an office or at the property, or change the figures every time you ask about costs.

As a habit, meet in person, get every cost in writing, and keep a record of every payment. A professional broker will welcome all of this, because it protects everyone in the deal.

What a Licensed Broker Brings to the Table

A licensed broker is accountable. They work within a regulated profession, and their license can be affected if they act improperly. That accountability gives you somewhere to turn if something goes wrong.

A good broker also does the unglamorous work that keeps a deal from falling apart: pricing the property realistically, checking documents, spotting title issues early, computing the taxes and fees, and walking you through the transfer. This matters even more for technical transactions, such as inherited properties, titles with problems, co-owners living abroad, or properties owned by corporations.

Talk to REMAX Core Before You Commit

If you are planning to buy, sell, or lease, or someone has approached you whose credentials you can't confirm, talk to our team at REMAX Core in Makati. We'll gladly show you our licenses, walk you through how the process usually works, and help you take the next step with confidence.

This article is general information and not legal advice. Laws, penalties, and procedures may change, so consult a professional about your specific situation.

By Atty. Jill Gerodias Borja.

This article is general information, not legal or tax advice. Every situation is different; talk to us about yours.