LAND, TITLE & DEEDS SECTION By. Atty. Eugenio L. Riego II, LLB, MPA, REB
“BENTA BENTA PERO BAWAL?”
Meet Pedro – serial entrepreneur, Facebook wizard, Shopee titan, part-time tiktoker, and now… aspiring real estate mogul. One day, while watching YouTube videos about how to become a millionaire through real estate, Pedro had an epiphany:
“Benta ng lupa! Easy money ito!”
Coincidentally, Pedro bumped into Juan, a landowner in their barangay with several idle lots. Pedro, oozing confidence and persuasive charm, said:
“Juan, I’ll sell your lots. You don’t need to do anything. Ako na sa marketing. Sa tradition ng real estate, may 5% commission ako, ha?”
Juan, who recently had trouble even selling barbecue sticks in his sari-sari store, nodded.
“Sige,” he said.
Fast forward 2 weeks later – thanks to Pedro’s Facebook ad campaigns, engaging reels, and “Buy 1 Lot, Free Good Vibes” promos – the ₱5 million property was sold!
The buyer was happy, Juan was rich… and Pedro? Well, Pedro was commissionless.
Why? Because Juan found out that Pedro was not a licensed real estate broker, and said:
“Sorry ‘tol, bawal ka pala. No license, no commission.”
Now Pedro is left wondering:
“Eh paano na yung effort ko? Hindi ba dapat bayaran ako? Trabaho pa rin ‘yun ah!”
The Legal Answer
In the Philippines, real estate service – including brokerage – is a regulated profession under Republic Act No. 9646, otherwise known as the Real Estate Service Act of the Philippines (RESA Law).
Section 28 of RA 9646 is clear:
“No person shall practice or offer to practice real estate service in the Philippines or offer himself/herself as real estate service practitioner without having previously obtained a license from the Board and the Commission.”
Worse, Section 39 penalizes the unauthorized practice of real estate service with fines and/or imprisonment.
So if Pedro is not licensed, not only is he prohibited from collecting a commission, but he may also be liable for violating the law. Even if there was an agreement or verbal contract, it is unenforceable, because the law forbids the act itself unless one is licensed.
One Relevant Case: Medrano, et al. v. Court of Appeals, et al.
The case involves a dispute over a 5% broker’s commission for the sale of a 17-hectare mango plantation. The petitioners refused to pay the respondents, who were licensed real estate brokers, the commission. The respondents were responsible for finding a buyer for the property. The trial court ruled in favor of the respondents, and the decision was affirmed by the Court of Appeals.
The Supreme Court’s Ruling:
The Supreme Court upheld the appellate court’s decision, stating that the respondents were the efficient procuring cause of the sale, and the petitioners were liable under the letter of authority issued. Therefore, the petition for review was denied.
“Armed with an authority to procure a purchaser and with a license to act as broker, we see no reason why the respondents cannot recover compensation for their efforts when, in fact, they are the procuring cause of the sale.”
A Quick Advice
So dear readers, the moral of the story is clear:
If you’re planning to dive into real estate, don’t dive headfirst into illegal practice like Pedro did. Just because you’re good with Canva, TikTok filters, or witty captions like “#LoteGoals” doesn’t mean you can claim commissions left and right.
Real estate is no joke – it’s a regulated profession.
So before you start “benta-benta,” make sure you have a license. Or else, like Pedro, you might end up with likes and shares… but no share in the sales.
Remember:
- No license = No commission.
- Worse? May kulong pa.
So if you’re thinking of joining the real estate game, check the law, get licensed, and avoid being the next Pedro in your barangay. Otherwise, your legal career might end before it even begins – in unpaid commissions and potential criminal complaints.
Final Word
Stay smart, stay legal, and always remember:
Ang lupa hindi pinipitas, kaya ‘wag mong basta-basta ibenta kung wala kang lisensya!
Till next time, kababayan.
Read the latest Blog – April 2025 Real Estate Brokers Licensure Examination Results
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