One of the first things I’ve learned when I joined a review class to prepare for the Philippine brokers’ licensure examination is differentiating between the “business” and the “practice” of real estate.
Real estate as a business deals with investing money to acquire or improve land and anything attached to it–like a house or a building–and selling, leasing, or using them for other income-generating purposes. Think real estate developers or property investors.
Well, this blog is not about that.
This blog is about the aspect of real estate as a practice. Think real estate salesmen, brokers, appraisers, and consultants. They’re called real estate practitioners and they’re engaged in the realty service practice.
More specifically, though, this blog will be about real estate brokerage. Here in the Philippines, real estate brokerage is the business of brokers and salesmen licensed under them.
What exactly does a real estate broker do? A broker acts in behalf of a principal, which may be the owner of a property or someone looking for a property. To do what? Well, a host of things. Negotiate the sale, purchase, lease, exchange, and even mortgage of real estate. In turn, brokers get what is called a commission.
I’m hoping to go into the practice of real estate brokerage and I took the licensure examination for brokers last May 27 at the Cebu Normal University in Cebu City.
While I wait for the exam results, I’m writing down everything that I’ve learned in my review class about the business: licensing regulations of realty service practitioners; real estate taxation, including expanded value-added tax; aspects in sale, lease, and mortgage; effects of agrarian or urban land reform on real estate; and documenting contracts, among other things.
Can foreigners own real estate in the Philippines? Who supervises real estate practitioners? How much commission should you give your real estate broker? Who has the bigger right over a property sold to two or more buyers?
Continue to visit this blog for answers to these questions and more.