When you’re planning to buy or sell real estate in the Philippines, one of the most important decisions you’ll make is choosing the right professional to guide you through the process. But what exactly is the difference between a “real estate agent” and a “Realtor”? In many countries—most famously in the United States—these terms have distinct meanings. In the Philippines, however, the terms can sometimes be used interchangeably or misunderstood. This blog post will clear up the confusion, providing you with a detailed, fact-based, and highly informative guide that will help you decide who to work with to achieve your real estate goals.

In the sections that follow, we’ll explore how real estate professionals are licensed in the Philippines, the role of professional real estate organizations, and the specific standards that set Realtors apart. By understanding these distinctions, you’ll be in a better position to make an informed decision about the kind of representation and services you need, whether you’re buying, selling, or investing in property.

Defining Real Estate Professionals in the Philippines

Before diving into the specifics, let’s clarify the general terms used in the Philippine real estate industry:

  • Real Estate Agent/Salesperson: In Philippine context, a “real estate agent” or “salesperson” often refers to an individual who is authorized to engage in real estate service under the supervision of a licensed real estate broker. They must hold a government accreditation or be registered under a licensed broker, as per Republic Act No. 9646 (Real Estate Service Act of the Philippines).
  • Real Estate Broker: A broker has passed the licensure exam conducted by the Professional Regulation Commission (PRC). A broker can either work independently or manage multiple salespersons. This is the most recognized professional title in the Philippine real estate industry.
  • Realtor: In many parts of the world, especially in the United States, the word “Realtor” is a trademarked term used by members of the National Association of REALTORS® (NAR). In the Philippine setting, some licensed brokers and agents also carry the Realtor designation if they are members of a recognized real estate organization that is affiliated with NAR or a similar global body. They adhere to a strict code of ethics and higher professional standards.

Why the Terms Can Be Confusing

In everyday conversation, Filipinos often use “real estate agent,” “broker,” and sometimes even “Realtor” interchangeably. However, these terms are not synonymous. A licensed real estate broker in the Philippines may or may not be a Realtor. Conversely, someone who calls themselves a Realtor could be a licensed broker or agent who is part of a recognized real estate organization. Understanding the nuances can help you pick the right professional for your specific needs.

What Does It Mean to Be a Realtor?

Being a Realtor is not merely about having the right to sell properties. It signifies membership in a real estate association that enforces a stringent code of ethics and professional standards. In the United States, the Realtor mark belongs to the National Association of REALTORS®, but globally, various local and regional associations also use the designation under license or affiliation.

In the Philippine context, brokers or agents may become members of organizations such as:

  • The Philippine Association of Real Estate Boards Inc. (PAREB)
  • The Chamber of Real Estate & Builders’ Associations Inc. (CREBA)
  • The Real Estate Brokers Association of the Philippines (REBAP)

These groups may be affiliated with international Realtor associations. Members who qualify might adopt the Realtor designation if recognized by the relevant international body. Regardless of the specific organization, the key point is that Realtors subscribe to a higher level of accountability compared to non-affiliated real estate practitioners.

Advantages of Working With a Realtor

  • Stricter Code of Ethics: Membership in reputable associations often comes with ethical guidelines and professional standards.
  • Professional Network: Realtors usually have more extensive networks, which can help expedite property transactions and provide access to additional services such as legal advice, home inspection, and financing.
  • Ongoing Education: Many real estate boards require continuous training and seminars, ensuring their members stay updated on laws, market trends, and best practices.

Licensing and Regulation in the Philippines

Republic Act No. 9646 (Real Estate Service Act of the Philippines)

Under RA 9646, the real estate service practitioners in the Philippines are governed by the Professional Regulation Commission (PRC) and the Professional Regulatory Board of Real Estate Service (PRBRES). Here’s how it breaks down:

  • Real Estate Broker License: Individuals must pass the PRC licensure examination and fulfill other requirements such as relevant education and training. Brokers can supervise salespersons and establish their own real estate companies.
  • Real Estate Salesperson Accreditation: A salesperson must have a minimum number of units in real estate subjects and must work under a licensed broker. The salesperson’s accreditation is facilitated through the broker.
  • Continuing Professional Development (CPD): Licensed brokers are required to take CPD units to renew their licenses every three years, ensuring they remain knowledgeable about industry updates.

Importance of Working With Licensed Professionals

  • Legal Compliance: Hiring licensed real estate practitioners safeguards you from legal complications. They are bound by law to follow proper procedures in drafting contracts, transferring titles, and other essential services.
  • Professional Accountability: Licensed brokers and accredited salespersons face consequences from the PRC if they violate regulations. This motivates them to adhere strictly to ethical and legal guidelines.
  • Market Expertise: Through their training and ongoing professional development, licensed brokers and agents possess up-to-date knowledge of the local property market.

Qualifications and Training

So, how do real estate agents and Realtors differ in terms of training and qualifications?

  1. Basic Educational Requirements
    • Real Estate Agent/Salesperson: At least second-year college completion (or its equivalent) with additional real estate units and practical experience under a licensed broker.
    • Real Estate Broker: A bachelor’s degree in any related field (often business, finance, or economics) or a specific four-year course in Real Estate Management (if applicable), plus passing the PRC licensure exam.
  2. Licensure Exam
    • Salesperson: There is no separate PRC exam for salespersons. They must be directly under the supervision of a licensed broker and accredited by the PRC.
    • Broker: Must pass the Broker Licensure Examination by the PRC.
  3. Professional Development
    • Real Estate Agent/Salesperson: May attend seminars and training offered by real estate companies or brokers.
    • Realtor: In addition to meeting all the requirements of a real estate broker or agent, a Realtor is typically bound by the rules of a real estate board, including ethical standards and continuing education programs.

Code of Ethics: Why It Matters

A critical factor that distinguishes Realtors from ordinary real estate agents or brokers is the adherence to a code of ethics. This code usually includes:

  • Honesty and Integrity: Realtors pledge to provide truthful information and uphold client interests above personal gain.
  • Disclosure: They must disclose material facts regarding a property, ensuring buyers and sellers can make informed decisions.
  • Confidentiality: Sensitive client information is safeguarded, and disclosures are made only when required by law.
  • Fair Treatment: Realtors must not discriminate against any party and should treat all clients fairly.

In the Philippines, licensed brokers also uphold professional standards set by the PRC. However, Realtors take it a step further by committing to the additional guidelines enforced by their respective real estate boards and the global Realtor community (if affiliated internationally).

Services Provided by Real Estate Agents vs Realtors

While both real estate agents (or brokers) and Realtors can help you buy, sell, or lease properties, there are some differences in the breadth and depth of services offered.

Real Estate Agents

  • Property Listing and Marketing: Agents can list your property in multiple channels, including local property portals, social media, and print advertisements.
  • Client Representation: They facilitate negotiations between buyers and sellers, aiming to arrive at mutually beneficial terms.
  • Documentation Assistance: They can help in preparing basic documents such as letters of intent, reservation forms, and offer sheets (subject to broker supervision if they are salespersons).

Realtors

  • Comprehensive Market Analysis: Realtors are trained to provide in-depth analyses, including comparative market studies, to establish accurate property values.
  • Expanded Network: They often have connections to a broader network of professionals (banks, appraisers, inspectors, etc.), given their participation in real estate boards or associations.
  • Strict Ethical Guidance: Realtors are obliged to place the client’s interest above all else, adhering to a universal standard of professionalism.
  • Access to Exclusive Listings: Membership in real estate boards may grant Realtors access to exclusive property listings and cooperative arrangements with fellow members.

Choosing the Right Professional for Your Needs

Now that you understand the distinctions, here are several factors to consider when deciding between a real estate agent and a Realtor in the Philippines:

  1. Scope of Service
    • If you need advanced market insights, ethical guarantees, and extensive industry connections, hiring a Realtor might be a better choice.
    • If your transaction is straightforward and you simply need assistance with paperwork and negotiation, an accredited real estate agent or broker might suffice.
  2. Budget
    • Realtors may charge slightly higher fees due to their additional qualifications and memberships. However, the added value often justifies the cost.
    • Real estate agents might be more flexible in their commission structures, especially if they are trying to build a reputation.
  3. Complexity of the Transaction
    • For high-value properties or complex deals involving legal intricacies, you may want a Realtor’s broader network and strict ethical framework.
    • For simpler real estate deals, a reputable licensed broker or agent can efficiently handle the process.
  4. Local Market Knowledge
    • Whether you choose an agent or a Realtor, make sure they have a proven track record in the specific location of the property. Local expertise can be invaluable in pricing and negotiations.
  5. References and Reviews
    • Ask for client testimonials, check social media reviews, and consult peers who have worked with the professional in question.
    • A solid reputation speaks volumes about competence, regardless of whether the practitioner is an agent or a Realtor.

Common Misconceptions About Real Estate Agent vs Realtor

Misconception 1: Realtors Are Only Found in the United States

Although the “Realtor” trademark is owned by the National Association of REALTORS® in the U.S., the designation is also used internationally through affiliated organizations. Some Filipino brokers and agents can be accredited as Realtors if they meet the criteria set by those organizations.

Misconception 2: Real Estate Agents Are Always Less Qualified

In the Philippines, some real estate agents have extensive experience and market knowledge despite not having the Realtor designation. The key is ensuring that your agent is accredited by the PRC and is supervised by a licensed broker if they are not a broker themselves.

Misconception 3: The Code of Ethics Is Optional

Both licensed brokers and Realtors are bound by ethical standards—brokers by PRC rules and Realtors by their association’s code. However, the latter often involves additional guidelines that go beyond the country’s regulatory requirements.

Misconception 4: All Agents in the Philippines Are Realtors

Not all Filipino real estate professionals hold the Realtor title. Many are licensed brokers or salespersons accredited by the PRC without being members of a real estate board affiliated with international Realtor organizations.

Frequently Asked Questions About Real Estate Agent vs Realtor

Is it necessary to hire a Realtor when buying property in the Philippines?

Not necessarily. You can work with a competent licensed broker or agent. However, a Realtor may offer added benefits, such as a global network, stricter ethical standards, and advanced market analyses.

How do I verify if someone is a licensed broker or salesperson?

You can check the PRC website for a list of licensed real estate professionals. Always ask for a PRC ID number or accreditation documents to confirm their legitimacy.

Will working with a Realtor cost me more?

Realtors may charge standard commission rates (usually ranging from 3% to 6% in many cases) or sometimes higher depending on the scope of services and property value. However, they often provide comprehensive services, which might justify the fees.

Can a salesperson handle the entire transaction alone?

No. Salespersons in the Philippines must operate under a licensed real estate broker. While they can handle most day-to-day tasks (listing, showing properties, etc.), the broker typically oversees the entire transaction for legal accountability.

What if I want to sell my property directly without an agent or Realtor?

Selling “For Sale by Owner” (FSBO) is possible. However, navigating pricing, marketing, legal paperwork, and negotiations can be challenging. A licensed professional can help you avoid costly mistakes and expedite the process.

Does the Philippines have a Multiple Listing Service (MLS)?

Unlike the U.S. where MLS is common, the Philippines does not have a universally adopted MLS. Some real estate organizations maintain private listing databases for their members. Being a Realtor can grant access to a larger pool of listings and potential buyers.

Key Takeaways

  1. Terminology Matters: Understand that in the Philippines, “Real Estate Agent,” “Broker,” and “Realtor” are not identical terms. A broker is licensed by the PRC. A Realtor has membership in a real estate board with additional ethical and professional standards.
  2. Legal Requirements: Under RA 9646, real estate service providers must be accredited or licensed by the PRC, ensuring baseline qualifications and ongoing education requirements.
  3. Membership Benefits: Realtors often offer expanded networks, comprehensive market analysis, and a globally recognized code of ethics.
  4. Professional Accountability: Both brokers and Realtors are bound by ethical guidelines, but Realtors usually adhere to an extra layer of ethical standards enforced by real estate boards.
  5. Choose Based on Your Needs: Evaluate the complexity of your real estate transaction, your budget, and the professional’s local market expertise. Whether you hire a broker or a Realtor, do your due diligence to ensure credibility.

Disclaimer: This blog post is intended for general informational purposes only and does not constitute professional advice. The author has endeavored to provide accurate and up-to-date information; however, real estate laws, regulations, and practices may change over time. Always consult qualified professionals for guidance specific to your situation.