All Information About Real Estate Agent
A real estate agent or a real estate broker is one who is the ubiquitous intermediary between the buyers and the sellers. In the United Kingdom, a person or organization acting as an intermediate in property marketing is known as ‘estate agent’. In the United States, ‘real estate agent’ is the most commonly used term. As per the U.S. laws, the real estate agent is deemed to have a fiduciary relationship with all his clients. Obtaining a proper license is a legally mandatory in most states of the U.S. However, in some states, lawyers are permitted to act as agents without getting any license.
Real estate salespersons
The first step in becoming a real estate agent is to obtain a license as a real estate salesperson. For this, the prospective candidate must study a specified coursework and pass a state exam. The exam is normally on real estate law & practice. After that, he/she must associate with a licensed real estate broker.
Real estate agent/broker
A real estate salesperson can become a real estate broker after an experience of a few years in real estate marketing. He/she can apply for and obtain a full-fledged real estate agent license by producing his/her credentials. After obtaining the license, he/she can start his/her own brokerage or he/she can continue to work for another agent. In the latter case, he/she is known as associate broker.
However, these requirements differ from state to state. In some states like New York, attorneys can act as real estate agents without taking exams but they have to obtain a license. In other states like Colorado, all licensees are designated as brokers and there is no salespeople category. A salesperson or agent, who has become a member of the National Association of Realtors, is officially called a realtor.
Types of real estate agents
Agency relationship of a real estate agent with a seller or buyer is created by a signed agreement, thus establishing a legal relationship with all the necessary fiduciary obligations. The legal relationship with a seller is done through a signed listing agreement. On the other hand, a buyer representation agreement establishes a legal relationship with the buyer.
In cases where the buyers or sellers work with an agent without any written agreement, a non-agency relationship is said to exist. Sub-brokers acting on behalf of principal agents are the best example for this. Further, in some states like Florida and Colorado, such non-agency relationships were also recognized as legal. Such brokers are called transaction brokers. In such cases, the broker manages a transaction between the buyer and the seller. Even though there are no fiduciary obligations in this system, transaction brokers have to follow all professional and ethical standards and also abide by the local laws.
There are situations when the same agent represents both the seller and the buyer. Such a broker is termed as dual agency broker. Several states have banned such dual agency status. In the states where they are still allowed, written disclosures duly signed by all the concerned parties, clearly specifying the duties and obligations, are mandatory.
