17/04/2026
โ๏ธโ๏ธโ๏ธAUTHORITY TO SELL (ATS): โSaka na kami magbibigay ng authority kapag may buyer na.โ This is not allowedโ๏ธ
A MANDATORY DOCUMENT IN REAL ESTATE BROKERAGEโ๏ธโ๏ธ
ATS Must Come BEFORE Marketing Not After a Buyer Is Found
A common but legally wrong practice is when property owners say:
โSaka na kami magbibigay ng authority kapag may buyer na.โ
This is not allowedโ๏ธ
KVP LEGAL TAKE : Authority to Sell Is NOT OPTIONAL, It Is MANDATORY
In Philippine real estate practice, an Authority to Sell (ATS) is not a mere formality or courtesy document. It is a legal prerequisite before any act of brokerage may be undertaken, including offering, marketing, promoting, listing, introducing, negotiating, or presenting a property to prospective buyers.
A property owner cannot lawfully expect a broker or agent to market the property first, find a buyer first, or wait for the buyer before issuing the ATS.
That practice is legally INCORRECT, professionally improper, and regulatory noncompliant.
KVP LEGAL TAKE : Before anything else, the property owner must first issue an Authority to Sell.
KVP LEGAL TAKE: Authority to Sell Must Be IN WRITING (Civil Code Basis)
Under the Civil Code of the Philippines, agency is governed by clear rules.
a. Article 1868 defines agency as a contract whereby a person binds himself to render some service or to do something in representation or on behalf of another, with consent.
b. Article 1874 expressly provides that when the sale of real property is involved, the agentโs authority must be in writing; otherwise, the sale is void.
KVP LEGAL TAKE: No written authority = no valid agency = no lawful brokerage act.
Thus, any act of selling, offering, or negotiating without a written Authority to Sell is legally defective from the outset.
KVP LEGAL TAKE: Authority to Sell Is PRC-MANDATED Under RA 9646
Under Republic Act No. 9646 (The Real Estate Service Act of the Philippines), real estate brokerage is a regulated profession.
The Professional Regulation Commission and its Professional Regulatory Board of Real Estate Service (PRBRES) have repeatedly emphasized through resolutions, advisories, and enforcement actions that:
A. A written Authority to Sell is a basic compliance requirement;
B. Brokers and salespersons must not market or offer a property without ATS;
C. Transactions without ATS expose brokers to administrative liability, including:
1. suspension or revocation of license,
2. fines,
3. and disciplinary sanctions.
In short: No ATS = violation of RA 9646.
KVP LEGAL TAKE: ATS May Be Given ONLY to a LICENSED REAL ESTATE PROFESSIONAL
An Authority to Sell โ๏ธCANNOT be validly issued to:
1. unlicensed persons,
2. โconnectors,โ
3. fixers,
4. relatives,
5. friends,
6. or so-called โmarketing representativesโ with no PRC license.
KVP LEGAL TAKE : Under RA 9646, only the following may LAQFULLY RECEIVE an ATS:
1. Licensed Real Estate Brokers
2. Accredited Real Estate Salespersons (under a broker)
โ๏ธIssuing an ATS to an unlicensed person is illegal.
KVP LEGAL TAKE: Illegal Object = Void Contract (Civil Code + RA 9646)
Under the Civil Code, contracts whose object or purpose is illegal are void and inexistent.
โ๏ธWhen a property owner issues an ATS to an unlicensed person, or allows someone to act as a broker without a PRC license, the object of the contract (real estate brokerage) becomes illegal, because brokerage is regulated by law, and RA 9646 prohibits unlicensed practice.
KVP LEGAL TAKE: The Result would be that The Authority to Sell is void, The brokerage engagement is unenforceable, Both parties may be exposed to legal and administrative consequences.
KVP LEGAL TAKE: ATS Must Come BEFORE Marketing Not After a Buyer Is Found
A common but legally wrong practice is when property owners say:
โSaka na kami magbibigay ng authority kapag may buyer na.โ
This is not allowed.
Why?
1. Offering or introducing a property without authority already constitutes brokerage activity;
2. The law does not recognize conditional or retroactive authority once marketing has already occurred;
3.Authority must precede, not follow, the act.
KVP LEGAL TAKE: Authority to Sell is a condition precedent, not a follow-up document.
Beyond legal compliance, the ATS:
1. clearly defines scope of authority,
2. protects the property owner,
3. protects the broker/agent,
4. avoids multiple unauthorized sellers,
5. prevents commission disputes,
6. ensures accountability and professionalism.
To be unequivocally clear:
โ Authority to Sell is mandatory
โ It must be in writing
โ It must be issued before any marketing or offering
โ It may be given only to licensed real estate professionals
โ Issuing it to others is illegal and void
โ Acting without it violates Civil Code provisions and RA 9646
