In the Philippine real estate industry, the relationship between a real estate salesperson and a real estate broker is strictly governed by Republic Act No. 9646, otherwise known as the Real Estate Service Act of the Philippines (RESA Law). This legislation was enacted to professionalize the service, protect the public from fly-by-night practitioners, and establish clear lines of authority and accountability.

Under the law, a real estate salesperson is not an independent practitioner but a subordinate professional who functions as an extension of a licensed real estate broker.

1. Legal Definition of a Real Estate Salesperson

According to Section 3(g) of RA 9646, a Real Estate Salesperson is a duly accredited natural person who performs any of the acts of a real estate broker for and on behalf of the latter, for or in expectation of a share in the commission, professional fee, compensation, or other valuable consideration.

The most critical element of this definition is the phrase "for and on behalf of." Legally, a salesperson has no independent standing to practice real estate service without being attached to a licensed broker.

2. Qualifications and Accreditation

Unlike real estate brokers, salespersons are not required to pass a licensure examination. However, they must meet specific statutory requirements to be legally "accredited" by the Professional Regulatory Board of Real Estate Service (PRBRES) and the Professional Regulation Commission (PRC):

Educational Attainment: Must have completed at least two (2) years of college or accumulated at least 72 units of college-level education.
Training: Must complete relevant Credit Units in Real Estate Service (currently 12 units of Continuing Professional Development or CPD) from an accredited provider.
Broker Supervision: Must be under the direct supervision and accountability of a licensed real estate broker.
Registration: Must be issued an Accreditation Card by the PRC, which must be renewed periodically.

3. The Scope of Authority and Limitations

The authority of a salesperson is strictly derivative. Their power to act is sourced entirely from the broker they represent. This leads to several legal limitations:

A. Prohibition on Independent Practice

A salesperson cannot practice real estate service independently. They cannot sign any real estate document (such as a Listing Agreement, Authority to Sell, or Offer to Purchase) as the sole professional. The supervising broker’s name and license number must always appear on such documents.

B. Limitation on Direct Compensation

A salesperson is legally prohibited from receiving any fee, commission, or compensation of any kind from any person other than the broker under whom they are registered. Any payment intended for the salesperson must flow through the broker, who then compensates the salesperson based on their internal agreement.

C. Maximum Number of Salespersons

To ensure effective supervision, the law provides a cap on the number of salespersons a broker can manage. Under current regulations, a licensed real estate broker may only supervise a maximum of twenty (20) accredited real estate salespersons.

4. Accountability and Liability

The RESA Law establishes a "command responsibility" framework regarding the conduct of salespersons.

Civil Liability: The broker is primarily responsible for the acts of the salesperson performed within the scope of their assigned tasks. If a salesperson commits an error or misrepresentation that causes damage to a client, the broker may be held civilly liable for damages.
Administrative Liability: If a salesperson violates the Code of Ethics or the RESA Law, the broker may face administrative sanctions, including the suspension or revocation of their own license, if it is proven that they failed to exercise "due supervision."
Criminal Liability: Under Section 39 of RA 9646, any violation of the Act or its Implementing Rules and Regulations (IRR) is punishable by a fine of no less than P100,000 or imprisonment of no less than two (2) years, or both. If the violator is unlicensed (or if a salesperson acts without a broker), the penalties are doubled (minimum P200,000 fine and/or four years imprisonment).

5. Mandatory Disclosures

In all dealings, salespersons are legally mandated to disclose the identity of the broker they represent. They must indicate their PRC accreditation number and the broker's license number on all advertisements, calling cards, and brochures. Failure to do so constitutes a violation of the transparency requirements of the law.

6. Termination of Relationship

When the relationship between a broker and a salesperson is severed, the broker has the legal obligation to notify the PRC/PRBRES. The salesperson's accreditation is tied to the specific broker; therefore, if the salesperson moves to a different brokerage, they must undergo a "change of broker" process with the PRC to ensure their acts remain legal and authorized.

In summary, the salesperson acts as the "hands and feet" of the broker. While they are vital to the industry's operations, the law ensures that every transaction is ultimately overseen by a licensed broker who carries the professional, civil, and administrative weight of the practice.