While ratified for several years now, the RESA Law changes the direction of local real estate once again with new educational requirements for those applying for a broker’s license.
In an effort to professionalize the real estate service industry, Republic Act No. 9646, also known as the Real Estate Service Act (RESA), was signed into law in 2009. One of its main purposes is to ensure that all practitioners be registered and licensed in conjunction with its objective of “enhancing government income” through taxation.
While in place for almost a decade now, RESA has once again affected major change in the landscape of local real estate, particularly in how aspiring brokers are licensed.
Broker License Applicants Are Now Required to Have Graduated from BS REM
Before - Section 14 of RESA lists having earned at least 120 units of Continuing Professional Development (CPD) education from an accredited real estate service training provider and passing the Professional Regulation Commission (PRC) licensure examination as requirements for a broker’s license.In terms of other scholastic attainments, holding a relevant bachelor’s degree from a state university or college, or
In terms of other scholastic attainments, holding a relevant bachelor’s degree from a state university or college, or other educational institution duly recognized by the Commission on Higher Education (CHED) was enough to make a licensure application.
After - However, as of May 2016, only Bachelor of Science in Real Estate Management (BS REM) degree holders are now qualified to take the broker’s licensure exam. This is due to the additional condition in the RESA Law that should a course resulting in a bachelor’s degree in real estate service be implemented by the CHED, it subsequently become one of requirements for taking the licensure exam.In October 2011, CHED issued Memorandum Order No. 28, which had guidelines for the implementation of BS REM, a course aimed to develop real estate practitioners that are globally competitive and in pace with the business environment. As it was initially offered in select schools in 2012, a BS REM degree officially became a requirement for examinees upon the graduation of the course’s first class in 2016
In October 2011, CHED issued Memorandum Order No. 28, which had guidelines for the implementation of BS REM, a course aimed to develop real estate practitioners that are globally competitive and in pace with the business environment. As it was initially offered in select schools in 2012, a BS REM degree officially became a requirement for examinees upon the graduation of the course’s first class in 2016.
How to Become a Licensed Real Estate Broker in the Philippines
The eligibility for a real estate broker license has more or less remained the same, save for the change in the educational background requirement. The current requirements are:
- A degree in Bachelor of Science in Real Estate Management
- Good moral character as certified by not having been convicted of any crime
- Completed application with the PRC, which in turn will assess the said application. Upon approval, the Board of Real Estate Service of the PRC issues the permit to the applicant, which is necessary to be able to take the real estate broker exam.
After passing the exams, applicants are then required to submit the following documents to the PRC:
- Photocopy of birth certificate or valid passport
- Transcript of records and BS REM diploma
- Clearance from the National Bureau of Investigation
- Community tax certificate
- Four passport sized pictures
The new requirement for a BS REM graduate to be eligible for the real estate broker exam has resulted to slight changes in the aforementioned requirements. For obvious reasons, no longer included are the original and photocopy of a duly notarized certificate from accredited CPD seminar or training providers.
There is also no longer a need to submit the original and photocopy of a notarized certification of the applicant’ years of experience by his employer or a prerequisite Certificate of Registration, Professional Identification Card, or DTI license.
For the time being, the BS REM diploma supersedes all previous educational, training, or experience requirements to take the broker’s exam.
Education Over Experience and Less Licensed Brokers
Groups such as the Professional Regulatory Board of Real Estate Service (PRBRES) and the Chamber of Real Estate and Builders’ Associations (CREBA), Inc. are seeking to re-evaluate RESA’s educational requirement.
They share the opinion that those who have long practiced the broker profession, harking back to the time where licenses were not yet required, are left in the cold by the new provision, as having to take BS REM would be too consuming and puts their livelihood on hold.
Also, there are very few BS REM graduates, with only 39 taking the initial BS REM-only exam in May 2016, and only 21 of them passing. Online searches show 20 schools presently offering BS REM, with other institutions reportedly applying to also offer the course. An additional challenge on the schools’ part is how to keep BS REM appealing enough to be taken by prospective college students.
All in all, the provision in the RESA, is seen by real estate insiders as not allowing many to partake in the economic benefits of the industry, and that limiting brokers means limiting the growth of local real estate. Toward the end of 2016, an estimated 40,000 licensed brokers are said to be working in Philippine real estate since it had been professionalized in 2010.
Future Real Estate Broker Licensure Exams
At present, there is no word if non-BS REM graduates will again be allowed to take real estate broker’s licensure exam. However, toward the end of 2016, the PRBRES proposed to CHED a new curriculum in BS REM that will cater to “second coursers” or individuals who already earned a degree in another field.This new curriculum is reportedly designed to
This new curriculum is reportedly designed to fast track BS REM for the aforementioned second coursers, where they will no longer have to start from the first year level of the course, but instead only be required to complete the professional subjects of the program which totals just under 40 units. While presently still subject for approval, the new curriculum is reportedly slated for implementation for the 2017-2018 academic year
Sources: PRC, Creba, CHED, Business Inquirer, Manila Times
Main image via Shutterstock
This article was originally posted on Lamudi Philippines.