ASPIRING real estate agents and brokers in Davao City are urged to undergo proper training and secure licenses before engaging in selling properties. This is part of an industry-wide push for compliance and integrity in the sector.
Diosdado Mahipus Sr., chairman of the Davao Chapter of the Chamber of Real Estate and Builders Association (Creba), stressed the need for greater awareness of the Real Estate Service Act (Resa) or Republic Act No. 9646, during the recent Business Matters media forum on April 11, 2025.
RA 9646 regulates real estate practices in the Philippines.
“Selling real estate without the proper credentials is a violation of the law,” Mahipus said in a vernacular. “Many have unknowingly committed this offense, only to face fines and legal consequences after the fact.”
He explained that individuals planning to enter the industry as brokers must complete a combination of formal training, practical experience, and passing the licensing examination administered by the Professional Regulation Commission (PRC). Licensed brokers are also required to register and post a bond as part of their legal responsibilities.
Mahipus noted that penalties for unauthorized practice can range from a minimum fine of P5,000 to possible imprisonment, even for first-time offenders.
He added that Creba is working to bring brokers and salespersons under one organized body in Davao to better enforce industry standards and ensure ethical conduct.
In addition to licensing concerns, Mahipus addressed ongoing confusion surrounding raw land sales. He clarified that the sale of undeveloped land is generally restricted under current regulations, with exceptions made for certain intra-family transactions.
“Real estate sales typically involve residential or commercial properties like condominiums and subdivision lots,” he explained. “Selling raw land is not allowed in most cases, particularly when multiple lots are involved. These restrictions are in place to prevent unregulated development and protect buyers.”
As a key organization representing real estate developers and builders in the region, Creba-Davao continues to advocate for responsible urban development and accessible housing solutions.
Mahipus emphasized that compliance with national laws not only protects clients but also elevates the professionalism of agents and brokers. He also expressed hope that new entrants into the industry will choose to follow the correct path — by getting licensed, staying informed, and contributing to a more ethical and transparent real estate environment. DEF