The law that defines the practice of real estate in the Philippines is Republic Act 9646. It is also known as the Real Estate Service Act or RESA. Among its provisions are the definitions of professionals legally authorized to practice real estate in the country. The four practitioners are the following: salesperson, broker, appraiser, and consultant. The layman may simply understand their functions if he relates them to selling and purchasing (salesperson and broker), valuation of property (appraiser), and technical advising (consultant).
Brokers and Salespeople Buy and Sell
One may ask the difference between a broker and a salesperson. In colloquial contexts, the two terms are interchangeable. However, RESA provides a clear explanation as to their difference. A salesperson, according to law, is one registered in the Professional Regulation Commission (PRC) as such and is under the direct supervision of a licensed broker. No examination is required to be recognized as a salesperson since one only needs to finish at least two years of college education and complete a minimum of 12 units of any course on real estate brokerage. On the other hand, a broker is a natural person (not an organization or a corporation) who has successfully passed the licensure examinations administered by the PRC. Effective this year, an individual who intends to take the examinations for brokers must finish a bachelor's degree on real estate service.
If a broker intends to participate in the real estate market as a juridical entity (organization or corporation), the company must follow the 1:20 rule in organizing its brokers. This means that every broker may only accredit under him a maximum of 20 salespersons.
Appraisers Estimate the Value of Realty
Other countries may call appraisers "assessors" or "valuators." In the RESA, assessors are differentiated from appraisers in that the former is commonly under the employ of government -- typically at assessors' offices and financial institutions.
An appraiser is qualified to estimate the value of real properties for various purposes. They assist in the purchase and disposition of realty, ascertain values for loans, or simply inform the owner of the present worth of a property. Using valuation standards, the appraiser makes an educated declaration of the value of a real property and reports the same to his principal.
Appraisers can also give expert opinions and testimonies at judicial proceedings. Some may remember the role of the appraiser in the recent Senate hearings investigating the market value of certain properties owned by local personalities.
The Real Estate Consultant Does Not Sell
Contrary to the abuse of the term "consultant" by the typical marketer of realty, buying and selling is not the province of the licensed real estate consultant. The market is quite familiar with well-dressed subdivision and condo sellers handing out leaflets at malls and calling themselves by various species of the term "consultants." There are "sales consultants," "marketing consultants," "realty consultants," and other various flavors of the noun "consultant." One detergent soap even had a fake "real estate consultant" vouch for their brand on TV. After complaints from a group of legitimate real estate consultants, the ad was discontinued.
Section 29 of the Implementing Rules and Regulations (IRR) of RESA even states that "(N)o person shall practice or offer to practice real estate service in the Philippines or offer himself/herself as real estate service practitioner, or use the title, word, letter, figure or any sign tending to convey the impression that one is a real estate service practitioner, or advertise or indicate in any manner whatsoever that one is qualified to practice the profession, or be appointed as real property appraiser or assessor in any national government entity or local government unit, unless he/she has satisfactorily passed the licensure examination given by the Board (i.e., the real estate regulatory board of the PRC)..."
In the same law, a real estate consultant is defined as 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.
The real estate consultant renders advice and conducts studies to ascertain the feasibility of a proposed project. He is not a salesperson or a broker. Among the requirements of being a licensed consultant are at least ten years of experience as a licensed broker or five as an appraiser, completion of a feasibility study, 120 units of training, passing of a written examination, and a formal defense of the feasibility study before all members of the Board.
In the declaration of its policies, the RESA has the intent of effectively regulating and supervising "a corps of technically competent, responsible and respected professional real estate service practitioners whose standards of practice and service shall be globally competitive and will promote the growth of the real estate industry."
Trust only the professionals.
#titullo
Brokers and Salespeople Buy and Sell
One may ask the difference between a broker and a salesperson. In colloquial contexts, the two terms are interchangeable. However, RESA provides a clear explanation as to their difference. A salesperson, according to law, is one registered in the Professional Regulation Commission (PRC) as such and is under the direct supervision of a licensed broker. No examination is required to be recognized as a salesperson since one only needs to finish at least two years of college education and complete a minimum of 12 units of any course on real estate brokerage. On the other hand, a broker is a natural person (not an organization or a corporation) who has successfully passed the licensure examinations administered by the PRC. Effective this year, an individual who intends to take the examinations for brokers must finish a bachelor's degree on real estate service.
If a broker intends to participate in the real estate market as a juridical entity (organization or corporation), the company must follow the 1:20 rule in organizing its brokers. This means that every broker may only accredit under him a maximum of 20 salespersons.
Appraisers Estimate the Value of Realty
Other countries may call appraisers "assessors" or "valuators." In the RESA, assessors are differentiated from appraisers in that the former is commonly under the employ of government -- typically at assessors' offices and financial institutions.
An appraiser is qualified to estimate the value of real properties for various purposes. They assist in the purchase and disposition of realty, ascertain values for loans, or simply inform the owner of the present worth of a property. Using valuation standards, the appraiser makes an educated declaration of the value of a real property and reports the same to his principal.
Appraisers can also give expert opinions and testimonies at judicial proceedings. Some may remember the role of the appraiser in the recent Senate hearings investigating the market value of certain properties owned by local personalities.
The Real Estate Consultant Does Not Sell
Contrary to the abuse of the term "consultant" by the typical marketer of realty, buying and selling is not the province of the licensed real estate consultant. The market is quite familiar with well-dressed subdivision and condo sellers handing out leaflets at malls and calling themselves by various species of the term "consultants." There are "sales consultants," "marketing consultants," "realty consultants," and other various flavors of the noun "consultant." One detergent soap even had a fake "real estate consultant" vouch for their brand on TV. After complaints from a group of legitimate real estate consultants, the ad was discontinued.
Section 29 of the Implementing Rules and Regulations (IRR) of RESA even states that "(N)o person shall practice or offer to practice real estate service in the Philippines or offer himself/herself as real estate service practitioner, or use the title, word, letter, figure or any sign tending to convey the impression that one is a real estate service practitioner, or advertise or indicate in any manner whatsoever that one is qualified to practice the profession, or be appointed as real property appraiser or assessor in any national government entity or local government unit, unless he/she has satisfactorily passed the licensure examination given by the Board (i.e., the real estate regulatory board of the PRC)..."
In the same law, a real estate consultant is defined as 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.
The real estate consultant renders advice and conducts studies to ascertain the feasibility of a proposed project. He is not a salesperson or a broker. Among the requirements of being a licensed consultant are at least ten years of experience as a licensed broker or five as an appraiser, completion of a feasibility study, 120 units of training, passing of a written examination, and a formal defense of the feasibility study before all members of the Board.
In the declaration of its policies, the RESA has the intent of effectively regulating and supervising "a corps of technically competent, responsible and respected professional real estate service practitioners whose standards of practice and service shall be globally competitive and will promote the growth of the real estate industry."
Trust only the professionals.
#titullo