02/11/2025
❗️⚖️ AUTHORITY TO SELL vs. SPA in Real Estate are they the same? Know more❗️⚖️
What is an Authority to Sell?
An Authority to Sell is a document executed by a property owner in favor of a licensed real estate broker, empowering them to market, advertise, and find a buyer for a specific property. It is not a general legal instrument like a Special Power of Attorney (SPA), but a professional engagement contract governed by real estate regulatory law.
Key Features:
Only granted to Licensed Real Estate Brokers (under PRC and RESA Law).
May be exclusive or non-exclusive.
Specifies:
✔️Property details
✔️Selling price
✔️Commission or professional fee
✔️Duration of authority
Legal Basis: RESA LAW (R.A. No. 9646)
Section 28. Penal Provision. – No person shall practice real estate service in the Philippines without a license. Only licensed real estate brokers may act as intermediaries in real estate transactions and receive commission.
Section 29. Prohibition Against Unauthorized Practice – No unlicensed person, including lawyers, shall act as real estate broker unless they are duly licensed.
Therefore:
Only licensed brokers can validly be given an “Authority to Sell” and earn a commission as a professional fee. Even if someone has an SPA, they are not entitled to broker’s commission unless they are licensed.
❌ Common Misconception
“I have an SPA so I’m entitled to commission.”
Wrong.
• The SPA allows someone to sign or act in legal capacity, but not to act as a real estate broker.
• Commission for brokering requires an Authority to Sell + a PRC license.
• Under RESA Law, even a lawyer cannot receive real estate commission unless licensed.
Can SOMEONE (Family member, lawyer, realty secretary) with an SPA sell property?
Yes, but only as the legal representative, not as a broker.
Example:
A lawyer receives an SPA from a client to sell property and signs the deed of sale. But:
• He cannot receive commission for facilitating the sale unless he is a licensed broker.
• He may be compensated through attorney’s fees, not broker’s commission.
Why Does This Matter?
Legal and Regulatory Implications:
A sale brokered by someone with no Authority to Sell and no license may be questioned or invalidated.
A seller or buyer can refuse to pay commission to someone not legally entitled.
