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Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
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I have noticed that many states now refer to all licensees as "Brokers". On a personal level, I think it cheapens the title as defined in CA where a broker is supposed to be more knowledgeable than a salesperson. I also have issues with internet brokerages that allow salespersons to operate their own "branch" office under some guise of supervision from a home office 700 miles away.
I worked hard to become a broker, and I worry about all the things I should as the broker/owner of the company all the time.
My question is; does the public, in states where every licensee is a broker, understand the difference between a "broker" and the person that holds the responsibility for those under their supervision? Does it matter?
I have noticed that many states now refer to all licensees as "Brokers". On a personal level, I think it cheapens the title as defined in CA where a broker is supposed to be more knowledgeable than a salesperson. I also have issues with internet brokerages that allow salespersons to operate their own "branch" office under some guise of supervision from a home office 700 miles away.
I worked hard to become a broker, and I worry about all the things I should as the broker/owner of the company all the time.
My question is; does the public, in states where every licensee is a broker, understand the difference between a "broker" and the person that holds the responsibility for those under their supervision? Does it matter?
Opinions?
Skillful, ethical performance matters most, and no title is a guarantee of skill, ethics, or performance.
Speaking from North Carolina,
I like the elimination of "salesperson." It is a throwback to subagency and all agents working for the seller. So, elimination of "salesperson" is a needed semantic device, IMO.
Next, we need to strike "I sold my buyers a house," because we are supposed to serve as consultants and fiduciaries. It is not my job to close on a sale with my client.
It is so easy here to be a "full broker," with a bit of course work and a test within 3 years of becoming a "Provisional Broker." I like that people who do not become full brokers within 3 years have their licenses terminated and they start over again.
And, even a "BIC," i.e., "Broker In Charge," is an extremely easy title to gain. After working as a broker for 2 years under a BIC, it amounts to a 12 hour class and the licensee is allowed to supervise provisional brokers and brokers.
I surely agree with you that it has to be very difficult to impossible for a BIC to meet the intent of the law/regulations from 700 miles away.
In MA, we still have the distinction. A salesperson is a real estate agent and is a representative of the broker. The broker conversely is the entity that enters into contracts. The pre-licensing requirements for a broker in MA are larger than that of a salesperson and you cannot become a broker without first having your salesperson license and having it actively hung with a broker for a certain number of years.
The public however has absolutely no idea what the difference is and most people think we're all brokers.
Quote:
Originally Posted by MikeJaquish
Skillful, ethical performance matters most, and no title is a guarantee of skill, ethics, or performance.
Texas also still has the different distinctions of salesperson and Broker. The majority of Brokers are underneath other brokers, so they're called Broker Associates to differentiate from not being the actual Broker of the company.
Also, to become a Broker, you must be a salesperson for at least 4 years and have so many "points". The points are calculated by how many sales you've had over the years and how many within a 12 month period. You can no longer just have a license for 4 years and then become a Broker. The state keeps track of these points by what your broker submits to them as they only want Brokers with actual real-life experience and no longer people without actual experience.
New York also has both, Salespersons and Brokers. If you have a Broker license and you're not the Broker/Owner/Manager, you work as Associate Broker under the "Broker/Owner/Manager". We also have a point system, same as Texas.
One big difference between NY and most other States is the fact that we are prohibited from writing contracts, attorneys get paid to do that.
Out here we have brokers and principal brokers. Principal Brokers are the ones that can supervise other brokers. We don't have the salesperson designation here.
I don't think most people know the difference between the two, and don't really care. Here it is 3 years experience and you have to take a class (40 hours) and pass the test.
One big difference between NY and most other States is the fact that we are prohibited from writing contracts, attorneys get paid to do that.
That's crazy! Our state Promulgated contracts are created by the Broker/Lawyer Committee which is made up of 6 Brokers and 6 Lawyers. Because Lawyers are creating the forms, and we're just filling in blanks, it's not considered practicing law for us to fill them out as we're not an attorney state. We close with Title Companies.
That's crazy! Our state Promulgated contracts are created by the Broker/Lawyer Committee which is made up of 6 Brokers and 6 Lawyers. Because Lawyers are creating the forms, and we're just filling in blanks, it's not considered practicing law for us to fill them out as we're not an attorney state. We close with Title Companies.
My understanding is that NY is a little different from most other states in the way they conduct their transactions. In most states, there is one purchase contract. However, in much of the northeast two contracts are used. First is the offer contract which is a boiler plate document, then typically we go to inspection, renegotiate, and enter into a second contract called the Purchase & Sale Agreement and that is written by an attorney. My understanding is that unlike in some other NE states that the offer is not considered a binding contract so the only actual contract in NY is the P&S which is written by an attorney in most states that use it. So in NY, agents write offers but the actual contract is written by the attorney.
Personally, this sounds like the wild west to me. How can you ask a buyer to spend hundreds of dollars on an inspection when another party can swoop in and offer more money and get the house?
In SC we have the provisional first year license which you get with a 60 hour course and passing the state exam. There is then a final sales license which requires an additional 30 hours, no test. After 3 years the salesperson can become a Broker by taking a 60 hour course and passing a state broker exam.
There was some push to do a process similar to NC requiring agents to become Brokers but so far it hasn't been approved. Right now it looks to be a dead issue.
Colorado is a Broker only state. 168 hours for pre-licensing.
Three license levels: Broker Associate, Independent Broker (no supervisory capacity) and Employing Broker. You can hold an employing broker's license and work under another employing broker, as I do. We need 24 hours of CE credits every renewal cycle. There is a class and a test to go from Broker Associate to Employing Broker, it's a 24 hours class.
We see a lot of Broker/Owner on cards and contracts, and Managing Broker. People don't care so much.
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