Sep 28, 2026 · by BalayHub Admin · 7 min read

Real Estate Broker Commission & PRC License Check (2026)

Real estate broker commission in the Philippines: 3% to 5% by custom, who pays, when it is earned, and how to verify a PRC license before you sign.

Real Estate Broker Commission & PRC License Check (2026)

The real estate broker commission in the Philippines is not set by any law. It is whatever the owner and the broker agree in writing, and by custom that means 3% to 5% of the selling price on a sale, toward 5% for raw land, and about one month's rent on a residential lease. What the law does regulate, strictly, is who may collect it: only a broker licensed by the Professional Regulation Commission, and the license can be checked online in a few minutes. This guide explains the going rates, who pays, when the fee is earned, and how to confirm that the person across the table is allowed to charge you at all.

Who may act as a broker

Republic Act 9646, the Real Estate Service Act, makes brokering a licensed profession. A real estate broker is a registered and licensed person who, for a fee or commission, acts as agent of a party to a sale, purchase, exchange, mortgage or lease. To get there a broker needs a relevant bachelor's degree and must pass the PRC licensure examination; to practice, the broker must hold a certificate of registration and a valid professional identification card.

A real estate salesperson is a different thing. Salespersons take no examination. They need at least two years of college plus training, they are accredited under a specific licensed broker, and they work under that broker's direct supervision. The law is explicit on two points that matter to clients: a salesperson cannot sign an agreement on a real estate transaction unless the supervising broker signs too, and a salesperson may receive compensation only from the employing broker, never directly from you. A brokerage firm must keep at least one licensed broker for every twenty accredited salespersons.

Owners are exempt. Anyone may sell or lease their own property without a license, which is why you can list your own property and deal with buyers directly.

The penalties explain why serious practitioners volunteer their license number. Violations of the Act carry a fine of at least ₱100,000 (about $1,590 / €1,400), imprisonment of at least two years, or both, and the penalty is doubled when the offender is an unlicensed practitioner.

How to check a PRC license

The PRC runs a public verification page at verification.prc.gov.ph. It has two routes. Verification by name asks for the profession, first name and last name; choose Real Estate Broker from the list of professions. Verification by license number asks for the profession, the license number and the professional's birthdate, which the broker will have to give you. The result shows the registered professional's details, and the page can also read the barcode on the PRC's electronic ID card.

Three practical notes. Ask for the PRC ID itself and compare the name, photo and expiry date with the person in front of you. If you are dealing with a salesperson, ask who the supervising broker is and verify that broker. And do not treat a failed search as proof of fraud on its own: the PRC states that errors and delays in posting are possible, so ask the broker to clear up a mismatch before you walk away, and walk away if they will not.

For pre selling condos and subdivision lots there is a second register. Under Presidential Decree 957, no broker or salesman may sell subdivision lots or condominium units without registering with the housing regulator, now the DHSUD, and that registration expires every December 31. It sits alongside the project's own license to sell, which our guide on how to verify a DHSUD license to sell covers.

What the commission usually is

On a resale, 3% to 5% of the gross selling price is the customary range, with raw land and farm lots at the upper end. On a ₱5,000,000 (about $79,700 / €70,200) house that is ₱150,000 to ₱250,000 (about $2,390 to $3,990 / €2,110 to €3,510). If the broker is VAT registered, 12% VAT is added on top, which turns a 5% fee into ₱280,000 (about $4,460 / €3,930), so ask whether a quoted rate is inclusive. On a residential lease the usual fee is one month's rent.

The party who engaged the broker pays. On a sale that is normally the seller, and the fee comes out of the proceeds at closing; on a lease it is normally the landlord. A buyer who hires a broker to search can agree to pay instead; a buyer who did not engage the broker has no fee to pay. On developer projects the developer pays the commission to its accredited sellers.

None of this is a legal ceiling or floor. Rates are negotiable. Our seller's guide to costs and process shows where the commission sits next to capital gains tax and the other costs of a sale.

When the commission is earned

A broker earns the fee by being the procuring cause of the deal, meaning the broker's efforts brought buyer and seller to an agreement. The consequence is the one owners dislike: if a buyer introduced by the broker later deals with you directly, the broker can still claim the commission, and will win if the link between the introduction and the sale can be shown.

Timing is a matter of contract. The fee can fall due on signing, on receipt of the down payment, on full payment or on transfer of title, and an agreement that says nothing invites a dispute. Many Authority to Sell documents also carry a holdover clause giving the broker the commission if a registered buyer purchases within a set period after the authority ends; one published sample clause sets it at six months.

An unlicensed person stands on much weaker ground. Someone who performs a broker's work without a license may be unable to enforce a claim for commission at all, which is one more reason to check the license before anyone starts showing your property.

Put it in writing

The document is the Authority to Sell, or an authority to lease. It names the property, the asking price, the commission rate and its base, whether VAT is included, when the fee is due, the term, and whether the authority is exclusive. An exclusive authority gives one broker the sole right to sell for a fixed period; a non exclusive one lets several brokers work at once and pays only the one who closes. Our guide to the Authority to Sell explains each clause, and the free contracts tool generates a draft in English or Tagalog.

Keep two limits in mind. The authority lets a broker market and negotiate; it does not let the broker sign the deed or receive the price for you unless you grant that separately. And every peso of the price should be paid to the seller named on the title, not to an agent's personal account, a rule that also protects tenants, as our guide on fake rental listings explains.

A short checklist

Verify the PRC license before the first viewing. Ask a salesperson for the supervising broker's name and check that broker's license. For a project, ask for the DHSUD registration as well. Agree the rate, the base, VAT and the due date in a signed authority with an end date. Pay the price to the owner, and pay the commission to the broker against an official receipt. You can also start from the agents on BalayHub or compare what a sale will cost you overall in our guide to closing costs.

This article is general information, not legal advice. Commission rates are customary figures, not rules, and tax treatment depends on the broker's registration; read the authority before you sign it.

Dollar and euro figures are approximate conversions at ₱62.7 per US dollar and ₱71.2 per euro (ECB reference rates, 2026-09-30).

Frequently asked questions

How much is the real estate broker commission in the Philippines?

There is no rate fixed by law. By custom the commission on a sale is 3% to 5% of the gross selling price, toward 5% for raw land, and about one month's rent on a residential lease. On a ₱5,000,000 (about $79,700 / €70,200) sale that is ₱150,000 to ₱250,000 (about $2,390 to $3,990 / €2,110 to €3,510), plus 12% VAT if the broker is VAT registered. The rate is negotiable and should be written into the Authority to Sell.

Who pays the broker's commission, the buyer or the seller?

The party who engaged the broker. On a sale that is normally the seller, and the fee is taken from the proceeds at closing; on a lease it is normally the landlord. A buyer who hires a broker to search for a property can agree to pay instead. On developer projects, the developer pays its accredited sellers. Whatever is agreed should be stated in writing before marketing starts.

How do I verify a real estate broker's PRC license?

Go to the PRC verification page at verification.prc.gov.ph. Verification by name asks for the profession, first name and last name; verification by license number asks for the profession, the license number and the birthdate. Choose Real Estate Broker as the profession and compare the result with the PRC ID the broker shows you. If you are dealing with a salesperson, verify the supervising broker instead.

Can a real estate salesperson collect a commission from me directly?

No. Under the Real Estate Service Act a salesperson is accredited under a licensed broker, works under that broker's supervision and may receive compensation only from that broker. A salesperson also cannot sign a real estate agreement alone; the supervising broker must sign as well. If an agent asks you to pay a commission to them personally, ask for the broker and pay the broker against an official receipt.

What happens if I deal with an unlicensed broker?

The unlicensed person carries the legal risk: violations of the Real Estate Service Act are punished with a fine of at least ₱100,000 (about $1,590 / €1,400), imprisonment of at least two years, or both, doubled for unlicensed practitioners, and an unlicensed broker may be unable to enforce a claim for commission. Your own risk is practical: no professional accountability if the sale goes wrong. Owners selling their own property need no license.

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