Why Real Estate Laws Matters for every Professional
In real estate, success isn’t just about closing deals or knowing the latest market trends. It’s also about understanding the law. Whether you’re a seasoned broker or just starting out, mastering the legal framework can save you from costly mistakes—and boost your credibility with clients.
Here are the essential Philippine laws that every real estate professional should know by heart:
1. Real Estate Service Act of 2009 (RA 9646)
This law professionalizes the real estate industry in the Philippines. It states that anyone practicing as a real estate broker, appraiser, assessor, or consultant must be licensed and registered with the Professional Regulation Commission (PRC).
Why it matters:
If you’re selling properties without a license, you’re not only breaking the law—you’re also putting your client’s trust and your livelihood at risk.
Example:
You can’t just start selling condominiums because your cousin works at a developer. You must be licensed under PRC and accredited by the Professional Regulatory Board of Real Estate Service.
2. The Condominium Act (RA 4726)
This governs the ownership of individual units in a condominium project. It outlines the rights of condo unit owners, management rules, and the concept of common areas.
Why it matters:
You should be able to explain to buyers the limitations and advantages of condo ownership, such as shared ownership of common areas and restrictions on modification.
Example:
If your client wants to buy a unit and turn it into a karaoke bar, you should advise them this may violate the condominium corporation’s rules.
3. Maceda Law (RA 6552)
Also known as the Realty Installment Buyer Protection Act, this law protects buyers of real estate on installment, especially in cases of default.
Why it matters:
You must inform buyers of their rights—especially if they’ve already paid a significant amount of the property’s price.
Example:
If a buyer has already paid at least two years’ worth of installments, the developer must give a 60-day grace period and refund a portion of the payments if the contract is cancelled.
4. National Building Code of the Philippines (PD 1096)
This law sets standards for building construction, ensuring safety, proper zoning, and accessibility.
Why it matters:
Understanding this helps you advise clients on whether a property complies with zoning and building requirements, especially in commercial or mixed-use developments.
Example:
If your client wants to build a small restaurant in a residential area, you should know whether the zoning allows it—and whether the building permits align with code.
5. Anti-Dummy Law (Commonwealth Act No. 108, as amended)
This prohibits foreign ownership of land in the Philippines, except in special circumstances.
Why it matters:
If you’re working with foreign clients, it’s critical to explain that while they can buy condominium units (up to 40% of a building’s total units), they cannot directly own land.
Example:
A foreigner may ask you to buy land under a Filipino spouse’s name—this could be flagged as a “dummy” arrangement, which is illegal.
Read Commonwealth Act No. 108 here
6. Rent Control Act (RA 9653)
This protects tenants from unreasonable rent increases. It covers residential units with monthly rent of up to ₱10,000, depending on location.
Why it matters:
If you manage or lease rental units, you need to inform both tenants and landlords of their limits and rights.
Example:
Landlords can only raise rent by up to 7% annually, and they must give 30 days’ written notice.
Final Thoughts (Taglish Time!)
Sa totoo lang, hindi lang sipag at galing sa benta ang kailangan sa real estate. Kailangan din ng utak at alam sa batas. Kapag bihasa ka sa legal side ng real estate, you become more than just a seller—you become a trusted professional.
So, next time you close a deal or advise a client, make sure you’re legally armed and ready. Kasi sa industriya na ‘to, ignorance of the law is not just an excuse—it’s a liability.
Be smart, stay legal, and sell with confidence!
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