Too Many Unlicensed Real Estate Agents: What Government Must Do to Make RA 9646 Work

A call for stronger enforcement, public protection, and accountability in Philippine real estate

For a Filipino family, buying a property may involve decades of savings, years of overseas work, or a loan that will take much of their working life to repay. Yet the person persuading them to buy may be someone whose identity, qualifications, and authority they have never verified.

This is the danger of unauthorized real estate practice. When anyone can present themselves as an “agent,” advertise properties, negotiate transactions, and expect commissions without proper credentials, consumers must distinguish professional service from convincing sales talk.

Concerns about the number of illegal agents deserve serious attention. However, without a reliable nationwide count, we should avoid inventing figures. More useful questions are: How easily can unauthorized practitioners operate, and how consistently does the government respond?

The Philippines already has Republic Act No. 9646, the Real Estate Service Act. What the public needs is an enforcement system that makes its protection visible and accessible.

Understanding who is authorized to practice

The word “agent” alone does not establish legal authority. Under RA 9646, brokers must be registered and licensed, while salespersons must be accredited and work under a licensed broker’s direct supervision and accountability. Section 29 prohibits unauthorized practice and representations of professional qualification. Section 28 contains exemptions, including owners dealing directly with their own property, except developers, and certain uncompensated attorneys-in-fact. Enforcement must respect these distinctions. lawphil.net

Someone selling their own home should therefore not automatically be accused of illegal brokerage. Equally, calling oneself a “property consultant,” “freelance agent,” or “marketing partner” should not prevent authorities from examining the actual services performed.

Unauthorized practice and fraud are also different issues. A person need not commit a separate scam before suspected unauthorized practice deserves investigation. Conversely, having professional credentials does not excuse deception or misconduct.

The law already assigns enforcement responsibilities

The Professional Regulation Commission (PRC) and its Professional Regulatory Board of Real Estate Service have central responsibilities. Section 5 empowers the Board to investigate violations, maintain an updated register, and monitor real estate advertising. Section 37 provides for PRC legal support and assistance from government authorities. Section 39 establishes criminal penalties, with doubled penalties for unlicensed practitioners. lawphil.net

Evidence shows coordinated action is possible. In March 2026, the NBI reported an operation in Koronadal involving alleged unauthorized property selling. Its investigation included PRC verification, and the suspect faced charges under RA 9646 and other laws. Charges are allegations, not convictions, but the case illustrates how verification and investigation can work together. National Bureau of Investigation

The following proposals would help turn individual enforcement actions into a consistent national system.

1. Make credential verification simple and reliable

The government should provide an accessible verification service that lets the public check a practitioner’s name, professional category, registration or accreditation number.

For salespersons, verification should also establish the supervising broker. Consumers should be able to distinguish an accredited salesperson from someone merely claiming to belong to a brokerage.

The service should work well on mobile phones and disclose only information needed for verification. A photograph of an ID or a number typed into an advertisement should never be the end of the checking process.

2. Establish one clear complaint pathway

A consumer or broker reporting suspected illegal practice should receive a reference number, instructions on supporting evidence, and a clear explanation of what happens next.

An effective reporting system should accept:

• Advertisement links and dated screenshots.
• Messages showing the services offered.
• Claimed identities and credential numbers.
• Commission demands, payment instructions, and relevant documents.
• A factual account of the transaction.

Anonymous information could help identify patterns, while formal proceedings may require identified witnesses and authenticated evidence. Complainants should be told the difference.

Reports must lead to assessment and follow-through. A reporting form alone is insufficient if nobody is assigned to act on it.

3. Monitor online advertising proactively

Enforcement should cover where property marketing now happens: social media, online marketplaces, websites, and messaging communities.

The PRC should develop a regular monitoring program and seek cooperation from platforms. A proposed advertising standard should identify whether the advertiser is an owner, broker, accredited salesperson, or another person acting under a lawful exemption.

Broker and salesperson advertisements should display verifiable credentials, with the supervising broker identified where appropriate. Government should distinguish voluntary platform policies from requirements that need a valid regulation or legislative change.

An alias or missing credential is a reason to check further. It is not, by itself, proof of a criminal offense.

4. Investigate the people who enable unauthorized practice

Enforcement should examine brokerage offices, developer sales operations, and supervisors—not only the individual answering inquiries.

Compliance checks should test whether credentials are genuine, accreditation is current, and supervision actually occurs. A broker’s name should never become a decorative shield for an independently operating, unauthorized sales network.

Investigators should examine suspected credential lending, fabricated broker relationships, and arrangements designed to conceal who performed the regulated services. Any administrative or criminal action must be supported by evidence and follow due process.

5. Coordinate agencies around a shared procedure

The PRC should lead professional regulation, supported by a practical coordination protocol involving the NBI, PNP, prosecutors, DHSUD, and relevant local government offices within their respective mandates.

That protocol should explain who verifies credentials, preserves digital evidence, investigates possible offenses, refers cases, and updates complainants.

Where a report also involves suspected fraud or unlawful project selling, agencies should coordinate those issues without losing sight of the professional-practice complaint.

A business permit or company registration should never be presented to consumers as proof of professional qualifications.

6. Fund enforcement and publish meaningful results

Government should assign staff, legal support, and a measurable enforcement budget. Congress should examine whether resources match the scale of the responsibility.

The PRC should publish aggregate information on complaints received, investigations completed, administrative outcomes, criminal referrals, and case disposition where available. Reports should distinguish allegations, pending proceedings, and final findings.

Success should be measured by consistent case handling and improved compliance. Arrest totals alone cannot show whether consumers are better protected.

7. Teach the public what to verify before paying

Public education should reach buyers, sellers, landlords, tenants, and OFWs through barangays, government offices, banks, developers, and digital campaigns.

The message should be practical:

Before paying a reservation fee or handing over documents, verify the person, their authority, the property, and the payment recipient.

Consumers should ask for the practitioner’s full identity and credentials, confirm any supervising broker, and establish authority to market the property. Professional verification should accompany checks on ownership, documents, and applicable project approvals.

A legitimate professional should welcome reasonable questions.

8. Provide a lawful route into the industry

People who want to work in real estate should receive clear guidance on salesperson accreditation, broker supervision, and the education and licensing pathway for brokers.

Accessible compliance guidance can help willing participants enter the profession properly. It should accompany firm action against continued unauthorized practice.

The goal is a profession in which opportunity comes with competence and accountability.

Where PRED contributes

PRED – Real Estate Philippines supports this effort by helping people discover identifiable professionals and promoting the habit of verification.

Its advocacy can encourage brokers to use their real identities, educate consumers, and help communities understand what credentials mean. Private directories should clearly explain their verification process and encourage users to confirm current status through official channels.

Government enforcement and responsible technology can reinforce each other. Public protection strengthens when professional identity is easier to establish and suspected violations are easier to report.

A homebuyer should not discover the importance of professional regulation only after losing money.

RA 9646 must be felt in everyday transactions: in the advertisement a buyer sees, the credentials they check, the complaint they submit, and the government response that follows.

Verify Before You Trust.
Be Found. Be Verified. Be Trusted.
PRED.PH