© 2010 by cengage learning chapter 19 ________________ licensing laws and professional affiliation
TRANSCRIPT
© 2010 by Cengage Learning
Chapter 19
________________Licensing Laws and Professional Affiliation
© 2010 by Cengage Learning
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.
RATIONALE FOR LICENSING
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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.
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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.
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Real Estate Regulation
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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
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Independent Contractor Paid only if a sale produces a commission
and is responsible for income taxes and social security.
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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
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Broker Independent contractor License revocation License suspension License Principal broker
Real estate commission REALTOR® Recovery fund Sales associate Salesperson
Key Terms