Before the Multiple Listing Service (MLS) was introduced in 1967, when brokers (and their licensees) only represented sellers, the term “real estate salesperson” may have been more appropriate than it is today, given the various ways that brokers and licensees now help buyers through the process rather than merely “selling” them a property. Legally, however, the term “salesperson” is still used in many states to describe a real estate licensee.
Real estate education
To become licensed, most states require that an applicant take a minimum number of classroom hours before taking the state licensing exam. Such education is often provided by real estate firms or by education companies, either of which are typically licensed to teach such courses within their respective states. The courses are designed to prepare the new licensee primarily for the legal aspects of the practice of real estate and to pass the state licensing exam.
Once licensed, the licensee in most states is initially designated a salesperson and must work under a broker’s license. Some other states have recently eliminated the salesperson’s license and instead all licensees in those states automatically earn their broker’s license.
A salesperson must place their license under a managing broker. Typically there may be multiple licensees holding broker’s licenses within a firm but only one broker or the firm itself, it the managing or principal broker and that individual or firm is then legally responsible for all licenses held under their license.
The term agent is not to be confused with salesperson or broker. An agent is simply a licensee that has entered into an agent relationship with a client. A broker can also be an agent for a client. It is commonly the firm that has the actual legal relationship with the client through one of their sales staff, be they salespersons or brokers.
In all states, the real estate licensee must disclose to prospective buyers and sellers the nature of their relationship within the transaction and with the parties. See below for a broker/licensee relationship to sellersand their relationship to buyers.
In the United States, there are commonly two levels of real estate professionals licensed by the individual states but not by the federal government:
Real estate salesperson (or, in some states, Real estate broker)
When a person first becomes licensed to become a real estate agent, they obtain a real estate salesperson’s license (some states use the term “broker”) from the state in which s/he will practice. To obtain a real estate license, the candidate must take specific coursework (between 40 and 90 hours) and pass a state exam on real estate law and practice. To work, salespersons must be associated with (and act under the authority of) a real estate broker. In Delaware, for example, the licensing course requires the candidate to take 99 classroom hours in order to qualify to sit for the state and national examination. In each successive year thereafter, the license holder must participate in continuing education in order to remain abreast of state and national changes.
Many states also have reciprocal agreements with other states, allowing a licensed individual from a qualified state to take the second state’s exam without completing the course requirements or, in some cases, take only a state law exam.
Real estate broker (or, in some states, qualifying broker)
After gaining some years of experience in real estate sales, a salesperson may decide to become licensed as a real estate broker (or Principal/qualifying broker) in order to own, manage, or operate their own brokerage. In addition, some states allow college graduates to apply for a broker’s license without years of experience. College graduates fall into this category once they have completed the state-required courses as well. California allows licensed attorneys to become brokers upon passing the broker exam without having to take the requisite courses required of an agent. Commonly more course work and a broker’s state exam on real estate law must be passed. Upon obtaining a broker’s license, a real estate agent may continue to work for another broker in a similar capacity as before (often referred to as a broker associate or associate broker) or take charge of his/her own brokerage and hire other salespersons (or broker) licensees. Becoming a branch office manager may or may not require a broker’s license. Some states allow licensed attorneys to become real estate brokers without taking any exam. In some states, there are no “salespeople” as all licensees are brokers.[3]
In the United States, Realtor(r) (capitalized) is a registered trademark of the National Association of Realtors (NAR). There are 1.3 million Realtors, mostly in the United States, and an additional 1 million licensed real estate agents who are not members of NAR and cannot use the trademarked title of “realtor”.[4] However, the U.S. Bureau of Labor Statistics claims only about 600,000 working brokers/salespersons.[5]
testing507.wordpress.com 