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Friday, May 28, 2010

Brokers ~ Agents or Licensees, No Broker Affiliation Required !

If you looked at a State's categories of licensed professionals or trades, you will find that nearly all other licensed professionals or trades can operate independently or individually if they so chose; appraisers, home inspectors, lawyers, CPA's, beauticians, cosmetologists, contractors, etc.  There is no requirement for example for an attorney or lawyer to be affiliated with a managing legal "broker" firm as an "Associate" - they are free to open their own practice regardless of years of experience or years licensed.  


The purpose and goal of real estate boards is to require real estate practitioners to be licensed or become a "licensee" and to protect the public by requiring their licensure and other requirements; no felons, convictions, criminal records, need to take continuing education, etc.  Real Estate licensees (Realtors) are also required to carry "E&O" (Errors & Omissions) professional liability insurance; as do attorneys.

I'd say with the basis of these basic requirements the public at large IS protected and there is no real direct or tangible benefit to a client or end user of real estate services for the person to be affiliated with a broker.  I would like to see legislation introduced to repeal this requirement and allow real estate licensees (Realtors) to work or practice independently, as do other licensed professionals.  

I always get a kick out of a person invariable asking who I work for or what broker I am affiliated with.  This seems to be more important; the brand recognition than the actual experience of the agent for some inexplicable reason.  I tell people I do not work for them; that I pay them and bring my deals to them, and that the broker is not the one who will be out driving you around, showing you properties, writing contracts, listing or marketing your house for sale.  In fact you'll more than likely never even see them or meet them.  My "office" is actually my car, my home office; my laptop, telephone, GPS and other tools of the trade. We'll probably almost always be meeting at either my home office or your home to meet and sign any documents, or somewhere out on the street mutually convenient or sitting down together to discuss things meeting over coffee or a bite to eat.  We will rarely, if ever, really be basing our operations from the broker's office.

This is another compelling argument for allowing agents, licensees or "Realtors" to practice independently without being tethered to a broker, who does little to nothing anyway.  I can hear a broker up in arms now over reading or hearing what I've just said saying how much "oversight" is required and how these levels "checks and balances" are required.  The only checks that most brokers ever do is to take a cut of the agent's commission and deposit that "check" into their bank account.  

The public is still protected by a broker's absence from the equation... 

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