Step-by-Step Guide: Starting a Real Estate Agency in the Philippines

The Philippines' real estate industry has experienced remarkable growth in recent years. With this, it has emerged as one of the most promising sectors in the country. Recognizing this potential, the government has introduced the Philippines Real Estate Services Act (RESA). This is to establish a regulatory framework for launching a real estate agency and pursuing a career in real estate.

In this comprehensive guide, we will explore the steps to initiate a real estate agency in the Philippines and delve into becoming a licensed real estate agent. This article aims to provide valuable insights while maintaining a style and tone that resonates with the reader.

Becoming a Real Estate Agent

Real estate agents play a pivotal role in facilitating property transactions assisting individuals in buying, selling, and renting real estate properties. Unlike in some countries, a qualifying degree in the Philippines is not required to become a real estate agent. However, certain requirements and steps exist to become accredited and legally practice as a real estate agent.

To embark on this path, aspiring agents must:

Fulfill the Educational Requirements:

To become a real estate agent, you need to complete a minimum of 120 hours of training from an accredited real estate training provider. This training covers various topics such as real estate laws, property valuation, marketing, and ethics.

Prepare the Required Documents:

Gather the necessary documents for your accreditation application, including a government-issued ID, a passport-size photo with a white background, a name tag showing your complete name, and the accomplished application form for real estate agent accreditation.

Submit the Application and Documents:

Take your completed application form and required documents to the Application Division at the Professional Regulation Commission (PRC) Central Office or Regional Offices processing counters for pre-evaluation. Ensure that you follow the provided instructions and submit all necessary paperwork.

Notarize the Application:

After pre-evaluation, proceed to the Legal Division on the 2nd Floor of the Main Building to have your application notarized. This step ensures the authenticity and legality of your application.

Pay the Accreditation Fee:

Head to the cashier located on the Ground Floor of the Main Building or the Cashier's Window at the Regional Offices to pay the accreditation fee of Php450.00. Keep the receipt as proof of payment.

Submit the Application and Documents (Again):

Return to the Application Division or set counter at the Regional Offices to submit your accomplished application form and required documents. Double-check that you have included all the necessary paperwork.

Verify the Status of Your Application:

After submitting your application, you can visit the PRC website to check the status of your application. This will provide updates on whether your accreditation has been approved or if there are any additional requirements or steps to follow.

Remember that practicing as a real estate agent without proper accreditation is illegal. Once you have obtained your accreditation, you can start practicing as a real estate agent and enjoy the benefits that come with it.

Benefits of Being a Real Estate Agent in the Philippines:

Client Referrals and Networking: Real estate agents have the opportunity to build a strong network of professionals and clients in the industry. Satisfied clients may refer you to their friends and relatives, expanding your network and potentially bringing in more business.

Convenient Accreditation Process: Unlike other professions that require a college degree, becoming a real estate agent in the Philippines is more accessible. As long as you fulfill the minimum educational requirements and training, you can become accredited and start your career in real estate.

Growth in the Profession: Being an accredited real estate agent opens up possibilities for growth in your career. With experience and dedication, you can expand your network, improve your skills, and even pursue further licensure to become a licensed real estate broker.

Becoming a real estate agent in the Philippines can be a rewarding career choice. By following the necessary steps and fulfilling the requirements, you can embark on a journey in the thriving real estate industry and enjoy the benefits that come with it.

Registering a Real Estate Business in the Philippines

The initial steps for registering a real estate company in the Philippines are similar to those of any other business. Foreign investors are strongly advised to carefully select their preferred business structure and engage the services of reputable company registration representatives in the Philippines to efficiently prepare and file the required paperwork with the Business Register.

Once the Business Registry approves the incorporation of the company, a crucial step follows – obtaining a business license from the Ministry of Trade and Industry. It's essential to note that this license is distinct from the real estate license, which is also necessary and must be acquired from the same ministry.

To navigate the complexities of company registration effectively, it's prudent to seek guidance from local consultants who specialize in initiating real estate agencies in the Philippines.

Obtaining a Real Estate Broker's License

Under the Real Estate Service Law, individuals aspiring to enter the real estate market in the Philippines must obtain a broker license from the Department of Trade and Industry. Before applying for the license, prospective brokers must successfully pass the Licensed Real Estate Broker exam.

To secure a real estate broker license in the Philippines, you will need to submit the following documents:

1. Proof of passing the Licensed Real Estate Broker exam.
2. Clearance from a regional court in the Philippines.
3. Lease agreement for the location of your company.
4. Completed application form.
5. Proof of payment of registration fees.

Upon obtaining the license, Filipino real estate agencies must also register with the Housing Land Use Regulatory Board and the National Association of Realtors.

Foreign applicants can seek assistance from immigration lawyers in the Philippines for more information on the application process.

Financial Requirements and Compliance

Real estate companies operating in the Philippines are mandated to collaborate with certified and independent accountants. These professionals play a pivotal role in preparing annual financial statements, subject to rigorous auditing as part of regulatory compliance.

Two Types of Real Estate Professionals (Commercial vs. Residential Real Estate Agents)

There are two main types of real estate professionals: commercial real estate agents and residential real estate agents.

Aspect	Commercial Real Estate Agents	Residential Real Estate Agents
Property Focus	Commercial properties such as office spaces, hotels, retail spaces, and industrial properties.	Residential properties, including houses, apartments, condos, and townhouses.
Client Base	Primarily business clients, investors, and corporations looking for office spaces or commercial investments.	Individual homebuyers and sellers, often families or individuals searching for a place to live.
Skillset Required	In-depth knowledge of commercial real estate laws, finance, and market trends. Understanding of business needs and zoning regulations.	Knowledge of residential property market trends, local neighborhoods, and the ability to match clients with suitable homes.
Deal Complexity	Deals often involve large sums of money, complex contracts, and negotiations. Longer sales cycles are common.	Typically involves smaller transactions with shorter sales cycles.
Income Potential	Potential for significant income, especially with large commercial deals.	Income potential varies based on the housing market and the number of transactions completed.
Networking Opportunities	Networking with businesses, property developers, and commercial property owners.	Networking with local residents, other real estate agents, and home builders.
Marketing Approach	Targeted marketing to businesses and investors. Often involves online listings, property tours, and market analysis.	Marketing to individuals and families, focusing on property features, neighborhood amenities, and lifestyle.
Commission Structure	Commissions may be higher due to the larger deal sizes but may also involve longer payout wait times.	Commissions are typically lower per transaction but may involve more deals.
Education and Licensing	Requires specific education and licensing for commercial real estate transactions, including a broker's license.	Requires education and licensing for residential real estate transactions, often with different licensing requirements.
Market Factors and Trends	Influenced by economic trends, business growth, and local development projects.	Affected by housing market conditions, interest rates, and population demographics.
Property Valuation and Appraisal	Often involves more complex property valuation methods, such as income capitalization, for commercial properties.	Typically uses standard appraisal methods for residential properties based on comparable sales.

The Highest Real Estate Paying Job

In the realm of real estate, several opportunities cater to individuals based on their training and skillset. The entry point to becoming the highest income earner in the industry often involves venturing into property development, particularly as a home builder.

This endeavor is notably more accessible and profitable for those native to the Philippines. Filipinos enjoy certain advantages not extended to foreign investors, given the restrictions on land ownership by non-nationals. While foreigners can reap financial benefits, they are constrained by the 40% limit on land ownership. It's essential to be aware of the specific requirements when establishing a business overseas.

Once you can muster the requisite capital and knowledge, you can yield substantial profits in your real estate venture. The industry offers diverse roles, including real estate manager, home inspector, escrow officer, foreclosure specialist, property accountant, and, of course, real estate agent, among others.

Notably, real estate mortgage officers frequently rank as some of the highest-paid professionals in the real estate sector. Data compiled by indeed.com indicates that Real Estate Mortgage Officers often enjoy monthly earnings exceeding $20,000.

Real Estate Marketing License Requirements

The real estate landscape in the Philippines is subject to strict government regulations. Regardless of your intended role in the market, it's imperative to thoroughly understand these regulations and comply with government guidelines.

Whether you aspire to be a real estate agent or broker in the Philippines, technical skills are essential prerequisites. Licensing is mandatory and granted upon successful completion of the required examination. Marketing properties in the country without the necessary license, obtained through a recognized law enforcement agency, is unlawful.

Both the Professional Regulations Commission (PRC) and the Housing and Land Use Regulatory Board (HLURB) are overseeing bodies responsible for regulating real estate activities in the Philippines. Consider enrolling in real estate courses offered by esteemed institutions like Adamson University or the University of San Carlos to acquire the requisite knowledge and skills.

Minimum Age to Become a Real Estate Broker

Most universities offering real estate courses typically admit candidates aged 18 and above. However, there's a standard age requirement of at least 21 years before the regulatory body can issue a broker license following a successful licensure examination.

Distinguishing between the roles of a real estate broker and a real estate agent is essential. In many cases, agents operate under the purview of brokers, with brokers often commanding higher compensation. Brokers typically possess more advanced technical knowledge and expertise than agents. As you embark on your journey in this dynamic industry, it's vital to be aware of the challenges confronting the real estate market.

Registering with the Professional Regulation Commission (PRC)

The path to becoming a licensed real estate agent in the Philippines involves adhering to specific requirements set by the Professional Regulation Commission (PRC). Visit the PRC website to access a comprehensive list of essential documentation that must be submitted to gain eligibility for the Real Estate Licensure Examinations.

Here's a breakdown of the documents required:

1. Bachelor’s degree in Real Estate Management (BS REM)
2. NSO / PSA Birth Certificate
3. NSO / PSA Marriage Contract (For Married Female Applicants)
4. Transcript of Records with Scanned Picture “For Board Examination Purposes”
5. Payment
6. Valid NBI Clearance (First Timers & Repeaters)

Once your application is approved, the PRC's Board of Real Estate Service will issue you a permit, a crucial document that grants access to the licensure examination.

How to Check the Real Estate Agent License

Verifying a realtor's license in the Philippines can be done through the Philippine Regulation Commission's website. Access the “VERIFICATION OF LICENSES” section and click on “VERIFICATION LICENSE BY NAME.”

Select “REAL ESTATE BROKER” as the profession, then input the individual's first and last names in the respective fields. If the broker holds a valid license, their name will appear in a pop-up window. You can also ascertain the validity of their PRC ID through the website.

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Conclusion

In conclusion, embarking on a career as a licensed real estate agent in the Philippines requires thorough planning and a commitment to following the regulations set by government bodies. One of the notable advantages of choosing this path is the flexibility it affords – you can operate as an independent agent or join a reputable brokerage firm.

A standard diploma certificate qualifies you for employment as a real estate company agent. However, consider honing your marketing and communication skills to thrive in this competitive field. As you navigate the exciting real estate landscape of the Philippines, remember that preparation and guidance are key to achieving success.

By following the steps outlined in this comprehensive guide, you can set yourself on the path to a fulfilling and rewarding career in the thriving Philippine real estate industry.