April 2, 2019

The Technical Education and Skills Development Authority (TESDA), in a bid to professionalize and standardize the training for and qualifications of salespersons, has promulgated the new training regulations (TR) for real estate service providers.

“There are times when we get approached by real estate salespersons offering us properties and we do not know whether they are really knowledgeable with what they offer or the offer is even legitimate,” said TESDA Director General Secretary Isidro Lapeña.

The new TR on Real Estate Services NC II was promulgated last January. This will help ensure that certified real estate service practitioners have the necessary competencies required by their profession.

"This will prevent or even eliminate the guess work when companies or individuals require the services of these agents,” adds the TESDA chief.

The Real Estate Service Act of the Philippines or RA 9646 requires the state to “develop and nurture through proper and effective regulation and supervision a corps of technically competent, responsible and respected professional real estate service practitioners whose standards of practice and service shall be globally competitive and will promote the growth of the real estate industry”.

RA 9646 also recognizes the vital role of real estate service practitioners “in the social, political, economic development and progress of the country, promoting the real estate market, stimulating economic activity and enhancing government income from real property-based transactions”.

The Training Regulations for Real Estate Services NC II was developed in partnership with the Philippine Association of Real Estate Boards, Inc. (PAREB), the largest national real estate service organization in the Philippines with some 68 local member boards and a membership of about 5,000 real estate practitioners.

The TR aims to professionalize the ranks of real estate salespersons, protect the public in real estate transactions, eliminate or discourage illegal practitioners, enhance government revenue and address the shortage of qualified salespersons in real estate practice.

According to the new TR, the scope of work of certified real estate salespersons involves sales and marketing, documentation, loans processing, and property and management functions.

The TR also requires that entrants to Real Estate Services training programs have at least 10 years of basic education or an ALS certificate, and have good communications and mathematics skills.

Data presented by the PAREB to TESDA revealed that, as of October 2018, the country has 32,346 real estate brokers, 10,648 real estate appraisers, 226 real estate consultants and 15,375 real estate salespersons.

However, R.A. 9646 requires that there be 20 salespersons per real estate broker, which brings the ideal number of real estate salespersons to 646,920.

Further, the Department of Trade and Industry (DTI) estimates that by 2030, various housing needs in the country will reach to more than 6 million units.