What Is A Real Estate Broker? - 100 Things to do in Retirement
People in the real estate profession go by various names. They can be called real estate brokers. agents, associate brokers, or realtors; to mention a few. One thing is for sure, the list goes on!
The various titles of real estate professionals can get a bit confusing. There are times when the titles are used interchangeably. Nonetheless, there are crucial differences in the roles of various real estate professionals.
Furthermore, there are different requirements for using various titles. Continue reading to learn what a real estate broker is.
Requirements To Become A Real Estate Professional
If there’s one thing you should know as early as now is that the various state governments regulate the real estate profession. What this means is that each state has its own set of requirements for earning a license. State requirements vary but you must take a minimum number of classes and pass a test to earn your license.
Another thing worth knowing is that licenses are given out for both salespersons and brokers. Nonetheless, there are differences between these two licenses.
Nonetheless, these two licenses are different from each other. Furthermore, there is no such thing as a licensed agent. That’s just something everybody says but it’s really just between a licensed salesperson and a broker.
A real estate broker is someone who has taken courses beyond the sales person’s level. He or she is compliant with the requirements of the state laws and has passed a broker’s exam.
The passing rate for a broker’s exam is usually higher than that of a salesperson’s exam. While the salesperson exam requires a passing rate of 70%, the broker’s exam requires a passing rate of 85. The questions in a broker’s exam can be a little bit harder and more challenging.
Nonetheless, a broker’s license can stand on its own as compared to a salesperson’s license. The reason for that is because a licensed salesperson has to be sponsored by a broker to be able to make a sale and to earn commissions.
It’s also worth mentioning that real estate brokers must have experience working as a salesperson.
What Exactly Does A Real Estate Broker Do?
The real estate broker bears responsibility for the actions of the salespersons under his or her supervision. Needless to say, the real estate transactions should go through seamlessly.
The broker also handles the earnest money deposit by establishing the escrow account. Furthermore, the real estate broker will step in if there are any problems with the transaction.
If there is a misunderstanding between the home buyer and the salesperson, the real estate broker comes in to resolve the issue. It’s safe to say that a broker is someone who is the liable party for the actions that the salespersons take.
The Advantages Of Being A Real Estate Broker
As previously mentioned, a real estate broker can stand alone. Whereas a salesperson needs to be sponsored by a real estate broker.
Another advantage of being a broker is that he or she can actually recruit salespersons to work for his or her brokerage. These salespersons can do transactions on behalf of their broker. Most importantly, a real estate broker can build a business with the help of the salespersons.
It’s definitely critical for homebuyers to know the differences between real estate salespersons and brokers. Not knowing the major differences between the two can either delay or jeopardize a sale.
Even if the titles are often interchanged, the major differences matter a lot when purchasing a real estate property.