A career in real estate is one of the most enjoyable but in many cases most challenging pursuits an individual may tackle broker sponsorship. With many new laws and regulations coming into play in the the past few years it’s difficult to stay on top of it all. Thankfully though the fundamental licensing rules for agents has remained mainly unchanged. This write-up attempts to explain the different types of licenses you can acquire.
Real estate regulations and licensing specifications aren’t universal. Every state has their particular requirements, so make certain that you are looking into the rules and requirements regarding the state in which you want to be licensed. There is no national standardized licensing or testing system so it is important to focus your efforts specifically on the states you wish to work in.
Agent license designation: This is the most common license designation and also the easiest to get. In most states, you cannot license as a broker at the beginning of your career, which means that you’ll be studying for and taking the real estate test to become an agent. Agents are actually “sponsored by” or “affiliated with” a broker. Most states have some minimum length of time that you need to be a real estate agent under the umbrella of the broker before you take the broker test. The broker is accountable for agent actions.
Broker license designation: When eligible, an agent could test to acquire their broker’s license. Brokers are expected to possess a much higher level of knowledge and consequently are in charge of the actions of agents that work for their brokerage. Brokers must also usually take a real estate exam that focuses on more in-depth knowledge of the business and the rules and regulations surrounding it..
The Associate Broker status: Quite a few agents opt to obtain a broker license when they are qualified, but don’t wish to be a sponsoring broker. They will do it for the heightened status a broker’s license provides them with clients. With this status, they will still hang their license with a sponsoring (qualifying) broker and fall under that broker’s control and responsibility.