03/05/2025
LIMITATIONS AND RESTRICTIONS OF REAL ESTATE SALESPERSON
According to Republic Act 9646, Real Estate Salesperson shall be under the supervision of a Real Estate Broker. A Real Estate Broker, in the Philippines, owns a brokerage firm and is responsible for the management of ventures and activities that include writing contracts, managing a back-office, supervising financial transactions, hiring, and accepting salespeople or agents to represent buyers and sellers of real estate. Real Estate Brokers are more experienced as they can directly transact with the buyers and sellers and have undergone a licensure exam at PRC.
Being under the supervision of a Real Estate Broker, the Real Estate Salespeople as per RA 9646 have the following limitation and restrictions:
Real Estate Salespeople cannot by themselves be signatories to a written agreement involving a real estate transaction unless the real estate broker who has direct supervision and accountability over them is also a signatory thereto.
No real estate salesperson, either directly or indirectly, can negotiate, mediate, or transact any real estate transaction for and on behalf of a real estate broker without first securing an authorized accreditation as a real estate salesperson for the real estate broker, as prescribed by the Board.
A real estate broker shall be guilty of violating this Act for employing or utilizing the services of a real estate salesperson when he/she has not secured the required accreditation from the Board prior to such employment.
No salesperson shall be entitled, to receive or demand a fee, commission, or compensation of any kind from any person, other than the duly licensed real estate broker who has direct control and supervision over him, for any service, rendered or work done by such salesperson in any real estate transaction.
Violation of the provision shall be a cause for cancellation or suspension of the certificate of registration of the real estate broker unless:
1. There was actual knowledge of such a violation.
2. The broker retains the benefits, profits, or proceeds of a transaction wrongfully negotiated by the salesperson.