Buying property isn’t like buying gadgets or clothes. The amounts are bigger, the paperwork is heavier, and one wrong step can become expensive—or irreversible—once money changes hands.

That’s why in many countries, buyers don’t rely only on one person ("the agent"). They also rely on the company behind that agent—a real estate brokerage or agency that adds another layer of accountability.

In the Philippines, we have regulation through the Real Estate Service Act (RESA), Republic Act No. 9646, which requires proper licensing and registration for real estate professionals. But the structure is different here: brokers can operate independently, while in many countries, agents are required to work under a brokerage.

Today I’ll share:

• What the Philippine system looks like (and where risk enters)
• How other countries structure real estate practice
• Why "Agent + Realty Company" creates stronger buyer protection
• What buyers should check before trusting an agent

The Core Issue: Buyers Need Two Layers of Accountability

If something goes wrong in a property transaction, the buyer’s biggest question becomes:

"If my agent disappears or commits a serious mistake, who do I hold responsible?"

In real estate, the safest setup is when buyers have two layers of accountability:

Safety Structure A: Agent is tied to a company

If the agent disappears or fails to deliver, the buyer can:

• escalate to the realty company
• reach the supervising broker or management
• access records and documentation
• demand accountability from an established institution

This is common in many countries.

Safety Structure B: Agent is acting independently

If the agent disappears:

• the buyer is chasing one person only
• there may be no office, no team, no management
• little or no formal supervision
• no internal systems or escalation path

This is more common in the Philippines because independent practice is allowed.

Philippines Context: What RESA Regulates — and What It Doesn’t Fully Solve

RESA provides legal requirements for real estate service practice. Under the law – no one can practice real estate services without proper authority. Real estate professionals are regulated through the PRC and the Professional Regulatory Board of Real Estate Service

Brokers can legally operate independently.

A licensed broker is a professional, so they can legally practice on their own. Many independent brokers are ethical and competent.

But from a buyer risk perspective, independence means there is no company management to intervene if problems happen. There are fewer controls and systems (checklists, documentation, recordkeeping). And buyers rely solely on that broker’s discipline and personal process

The bigger danger: unauthorized / "colorum" practice

Even with RESA, many unlicensed individuals still operate as agents, marketers and independent contractors. When buyers deal with unauthorized practitioners, they risk: zero regulatory accountability, no real company or office, no complaint path and higher scam/disappearance risk.

How Other Countries Protect Buyers Through Structure

Many countries require agents to work under a brokerage or estate agency. This creates safer transactions because there is always an institution behind the agent.

🇺🇸 United States

In most U.S. states sales agents must work under a sponsoring broker/brokerage and brokers can operate independently while agents cannot. This ensures supervision, compliance systems, documentation standards and an escalation path for buyers.

🇦🇺 Australia

In many states (ex. Western Australia) sales representatives must be supervised and they cannot operate independently or run an office.

🇸🇬 Singapore

Singapore’s system is very strict. Salespersons must be registered, they must be tied to a licensed estate agency and the public can verify professionals through a government registry.

In short: in these systems, agents aren’t freelancers — they operate under a regulated institution.

Why "Agent Backed by a Realty Company" Protects Buyers

Protection #1 — If the agent disappears, the buyer still has an "anchor"

One of the biggest risks in the Philippine real estate market is when the buyer deals with a person who is not tied to any realty firm.

This is a scenario some buyers have experienced:

The buyer pays a reservation fee and submits the required documents, then the agent promises to provide updates. But after a few weeks, the agent becomes unresponsive. The buyer can no longer contact them, and uncertainty sets in—what happened to the payment, the documents, and the reservation?

When an agent is backed by a realty company, the buyer has an "anchor"—a stable institution to run to. If your agent vanishes a realty company has an office, a supervising broker exists, records can be retrieved and management can intervene. With independent practitioners, buyers often lose leverage quickly.

Protection #2 — Better process discipline

In many property transactions, the biggest danger is not even fraud—it’s sloppiness. Buyers can experience issues like missing reservation forms, incomplete paperwork, incorrect names in contracts, wrong unit numbers, incorrect payment instructions, incomplete explanation on the computations especially about bank financing and undocumented promises.

This is where being assisted by an agent backed by a realty company becomes a huge advantage. Most professional realty companies enforce structured processes such as standard documentation, proper buyer profiling and recordkeeping, step-by-step transaction checklists, transaction monitoring and reporting, and reliable file systems like CRM tools, logbooks, organized file storage, and email trails. Because of these systems, even if an agent is new or forgetful, the company’s process helps prevent major mistakes and keeps the transaction properly documented.

For example, if a buyer pays a reservation fee, a realty-backed agent is usually required to issue an acknowledgement, submit proof to the office, log the transaction in the CRM or tracker, forward documents to the developer or seller through correct channels, and report updates to their Unit Manager. In short, the transaction does not remain "asa ra sa chat"—it becomes structured, traceable, and professionally managed.

This matters even more in the Philippines because many independent agents don’t have proper transaction trackers, compliance checklists, formal document storage, internal audits, or accountability partners. As a result, buyers often suffer from excuses like "wala na nasend sir," "nalimtan nako maam," "na delete nako ang file," or "di nako makita ang screenshot." A realty company’s system significantly reduces these risks and gives buyers more peace of mind throughout the transaction.

Protection #3 — Reputation creates pressure to behave ethically

Another important layer of buyer protection is something many people don’t notice immediately: a realty company has a reputation to protect. In the Philippine market, reputation is everything because realty companies depend heavily on long-term client trust, repeat business, referrals, strong partnerships with developers, access to exclusive inventory and promotions, and the ability to attract and retain good agents. Because of this, a professional realty company is far less likely to tolerate unethical behavior. One scandal can damage the whole brand, one client complaint can spread quickly online, developers may stop trusting the company, and credibility can be lost overnight.

That’s why company-backed agents are under stronger pressure to avoid false promises, disclose information properly, comply with agreements, handle disputes fairly, and follow correct payment processes—simply because the company is watching and standards must be maintained. This matters especially in the Philippines where buyers often get burned by common lines such as "reservation daw but di diay official," "promo daw but di diay real," "last unit daw but daghan man," or "sir dali na, pay now, later na ang docs." With a legitimate realty company behind the agent, there is internal discipline that helps prevent these risky practices.

Protection #4 — A clear escalation pathway

Disputes can happen in real estate. Common issues include delays in developer turnover, confusion about inclusions, changes in payment terms, documentation problems, misunderstandings regarding refunds, punchlisting or unit defects, and unit upgrades. The key difference is not whether problems happen, but how quickly they get solved.

When you work with a realty-backed agent, you have a clear escalation ladder: you can raise concerns not only with the agent, but also with the team leader, supervising broker, and company management. Independent operators usually have no one above them.

Why This Matters More in the Philippines

🇵🇭 The real estate market in the Philippines is highly informal and social-media driven. A lot of transactions begin through Facebook postings, Marketplace, and thru referrals and informal contacts. This increases the risk of dealing with unverified individuals. This now becomes the responsibility of the buyer to verify the license of who you’re dealing with.

Enforcement and buyer recovery can be slow

Even if laws exist, buyer remedies can be time-consuming, expensive and stressful. So the best protection is prevention, not just legal action.

Practical Buyer Guide: How to Protect Yourself (Philippines)

Here’s a practical checklist buyers can follow:

Step 1: Verify PRC license

Ask for:

• full name
• PRC license number
• PRC ID photo
• expiration date

Step 2 Ask: "What company are you with?"

A legitimate professional should give:

• company name
• office address
• supervising broker’s name
• official email / company contact channels

Red flags:

• "freelance lang ko"
• "independent marketer ra ko"
• "wala koy company / I work alone"

Step 3 : If they’re a salesperson, confirm supervision

Salespersons should be under a licensed broker and properly accredited.

Step 4: Never pay reservation to personal accounts without proof

Always require:

• official acknowledgement
• proper documentation
• receipts or official payment instructions

This is where many scams start.

Step 5: For developer projects, request DHSUD compliance documents

For example:

• License to Sell (LTS)
• relevant project registrations

Conclusion: The Safer Choice for Buyers

In many countries, agents are required to operate under brokerage firms. That structure provides real consumer protection through:

• institutional accountability
• supervision
• paper trails
• escalation options
• a company buyers can hold responsible

In the Philippines, even with RESA:

• unauthorized practice still exists
• processes vary widely
• informal transactions are common
• dealing with a lone individual increases buyer risk

The safest choice for buyers is to work with a PRC-licensed broker or properly accredited salesperson who is backed by a legitimate realty company with a verifiable office and supervisory structure.

Because buying property isn’t just about choosing the right unit— it’s also about protecting your money, documents, and peace of mind.

Want to invest in Philippine Real Estate?

To know more about the buying process in the Philippines – you can send me an email or message me on WhatsApp for a property consultation.

Book a viewing or consultation: 📲WhatsApp +63 917 851 2752 📩 Email: [email protected]