1 / 11

Understanding Real Estate Licensing Laws and Professional Affiliations

This chapter explores the rationale behind real estate licensing laws and the importance of qualifications such as honesty, truthfulness, and real estate knowledge for agents and brokers. It highlights the historical context, noting that until 1917, no licensing was required. The chapter details the roles of licensees, distinguishing between real estate brokers and salespersons, and discusses the significance of professional affiliations like REALTOR®. Additionally, it outlines state license requirements, training, compensation structures, and the ethical codes governing real estate practitioners.

keene
Télécharger la présentation

Understanding Real Estate Licensing Laws and Professional Affiliations

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Chapter 19________________Licensing Laws and Professional Affiliation

  2. RATIONALE FOR LICENSING • Does the public have a vested interest in seeing that real estate salespersons and brokers have the qualifications of honesty, truthfulness, good reputation, and real estate knowledge before they are allowed to negotiate real estate transactions on behalf of others? • It was this concern that brought about real estate licensing laws as we know them today. • Until 1917, no state required real estate agents to be licensed. Anyone who wanted to be an agent could simply hang up an agent’s sign.

  3. Licensee • A person who, for compensation or promise of compensation, lists or offers to list, sells or offers to sell, buy or offers to buy, negotiates or offers to negotiate either directly or indirectly for the purpose of bringing about a sale, purchase or option to purchase, exchange, auction, lease, or rental of real estate, or any interest in real estate • Is required to hold a valid real estate license.

  4. License Types • Real Estate Broker • A person licensed to act independently in conducting real estate brokerage business. • Real Estate Salesperson • A person employed by a broker.

  5. Real Estate Regulation

  6. State License Requirements • http://www.arello.org

  7. Broker Affiliation • Training – complement, enhance, and encourage your personal development. • Compensation – usually a percentage of earned commissions. • Support – what services do they offer. • Franchise offices

  8. Independent Contractor • Paid only if a sale produces a commission and is responsible for income taxes and social security.

  9. REALTOR® • Registered trade name • Member of NAR and not synonymous with real estate agent • Code of ethics first adopted in 1913 • GRI designation by taking sponsored education courses by NAR

  10. NAR Code of Ethics • http://www.realtor.org

  11. Key Terms • Real estate commission • REALTOR® • Recovery fund • Sales associate • Salesperson • Broker • Independent contractor • License revocation • License suspension • License • Principal broker

More Related