20/05/2026
FYI : PRC ACCREDITED REAL ESTATE SALES PERSONS
What are the liabilities of a Real Estate Salesperson who procures an Authority To Sell for himself from the owner sold it to a buyer and was paid 5% commission without the knowledge of the supervising Real Estate Broker?
Answer:
Under Philippine law—specifically Republic Act No. 9646, otherwise known as the Real Estate Service Act (RESA Law)—a real estate salesperson cannot operate independently.
They are legally required to work under the direct supervision and accountability of a licensed Real Estate Broker.
By procuring an Authority to Sell for himself, closing the deal, and pocketing the 5% commission without the knowledge or involvement of the supervising broker, the salesperson has committed serious statutory and ethical violations.
The specific liabilities and consequences of these actions include:
1. Administrative Liabilities under the RESA Law
Suspension or Revocation of Accreditation:
Under Section 31 (Supervision of Real Estate Salespersons), no salesperson can practice real estate service without being attached to a licensed broker.
Acting independently is a direct ground for the Professional Regulation Commission (PRC) and the Professional Regulatory Board of Real Estate Service (PRBRES) to revoke or suspend the salesperson’s official accreditation.
Disqualification from Future Broker Examinations:
A serious violation of the RESA Law's rules can lead to the salesperson being barred from taking future licensure examinations to become a registered broker.
2. Criminal Liabilities
Unauthorized Practice of a Profession:
Under Section 39 (Penal Provisions) of RA 9646, any violation of the Act or its Implementing Rules and Regulations (IRR) is subject to criminal penalties.
Because the salesperson acted outside the scope of their legal capacity (acting as a de facto broker), they can be charged criminally.
Penalties:
If found guilty, the penalty for an un-accredited individual or someone violating RESA provisions is a fine of not less than ₱100,000 or imprisonment of not less than one (1) year, or both, at the discretion of the court.
Note: If the person is completely unlicensed/unaccredited, the fine doubles to no less than ₱200,000 and/or imprisonment of not less than two (2) years.
3. Civil and Financial Liabilities
Forfeiture and Restitution of Commission:
The 5% commission was collected illegally. Legally, all commissions must be paid to the supervising broker, who then distributes the agreed-upon share to the salesperson.
The supervising broker can sue the salesperson to recover the full 5% commission.
Damages:
If the secret transaction causes legal issues, clouding of titles, or financial loss to either the property owner or the buyer, the salesperson can be held personally liable for actual, moral, and exemplary damages under the Civil Code.
4. Breach of Contractual and Fiduciary Duties
Violation of Agency:
A salesperson's loyalty and fiduciary duty flow to their supervising broker, who in turn owes a duty to the client.
By bypassing the broker, the salesperson breached the agency agreement.
Invalidity of the Authority to Sell:
Because a salesperson lacks the independent legal capacity to enter into real estate service contracts, the Authority to Sell procured solely under his name is legally infirm and can be voided, as it should have been executed by or with the explicit conformity of the supervising broker.
Impact on the Supervising Broker
While the salesperson bears the primary brunt of the violation, Section 31 of RA 9646 dictates that brokers face potential "joint and solidary liability" for the damages caused by their salespersons if it can be proven that the broker had prior knowledge, consented to, or failed to exercise proper supervision over the salesperson's unauthorized activities.
However, since the salesperson acted entirely without the broker's knowledge, the broker can use this lack of knowledge and unauthorized concealment as a defense to mitigate or avoid liability, and can actively file a complaint against the salesperson before the PRC.
