 | The examples and perspective in this article may not represent a worldwide view of the subject.(December 2014) |
A real estate license is an authorization issued by a government body to give agents and brokers the legal authority to represent a home seller or buyer in a real estate transaction. Real estate agents and real estate brokers are required to be licensed when conducting real estate transactions in the United States and many other countries.
In the United States, each state specifies a mandatory education - completing this allows prospective agents to become eligible to receive a real estate license. This involves completing a pre-licensing education from an institution accredited by the state and passing an exam. The real estate exam is often considered difficult by many aspiring real estate agents and brokers. This is because the exam is intentionally designed to be difficult to pass, as a way to filter out those who may not have the required skills and knowledge to be successful as a real estate professional. [1]
Additionally, to maintain a real estate license, states require a continuing education program to be completed every two years. [2]
Through a complicated arrangement, the National Association of Realtors (NAR), a trade and lobbying group for agents and brokers, sets policies for most of the multiple listing services. As the Internet gained widespread use in the late 1990s, NAR created regulations allowing Information Data Exchanges (or Internet Data Exchanges ) (IDX) whereby brokers would allow a portion of their data, such as listings of homes for sale, to be seen online via brokers' or agents' websites. [3]
The association attempted to limit online access to some or all of that data, particularly by brokers operating solely on the Internet. The Department of Justice brought an antitrust lawsuit against the NAR trade group in 2005. [4] [5] The complaint accused the association of unfairly limiting access to the multiple listing service (MLS), which effectively prevented online brokerages from competing with traditional brick-and-mortar offices. The Justice Department accused the NAR of conspiring to restrain trade.
Some U.S. states have reciprocity agreements in place allowing licensees from other states to become licensed in that state. [6] Details of each reciprocal agreement vary from state to state. States vary greatly, each State has its own definition of "reciprocity," along with their own requirements for obtaining a reciprocal license. [7] Some states have education requirements that must be met by the agent while others require only that the agent fills out a reciprocal license application with the State. [8]
A stockbroker is an individual or company that buys and sells stocks and other investments for a financial market participant in return for a commission, markup, or fee. In most countries they are regulated as a broker or broker-dealer and may need to hold a relevant license and may be a member of a stock exchange. They generally act as a financial advisor and investment manager. In this case they may also be licensed as a financial adviser such as a registered investment adviser.
This aims to be a complete list of the articles on real estate.
A multiple listing service is an organization with a suite of services that real estate brokers use to establish contractual offers of cooperation and compensation and accumulate and disseminate information to enable appraisals. A multiple listing service's database and software is used by real estate brokers in real estate, representing sellers under a listing contract to widely share information about properties with other brokers who may represent potential buyers or wish to work with a seller's broker in finding a buyer for the property or asset. The listing data stored in a multiple listing service's database is the proprietary information of the broker who has obtained a listing agreement with a property's seller.
The National Association of Realtors (NAR) is an American trade association for those who work in the real estate industry. As of December 2023, it had over 1.5 million members, making it the largest trade association in the United States including NAR's institutes, societies, and councils, involved in all aspects of the residential and commercial real estate industries. The organization holds a U.S. trademark over the term "Realtor". NAR also functions as a self-regulatory organization for real estate brokerage. The organization is headquartered in Chicago.
Real estate agents and real estate brokers are people who represents sellers or buyers of real estate or real property. While a broker may work independently, an agent usually works under a licensed broker to represent clients. Brokers and agents are licensed by the state to negotiate sales agreements and manage the documentation required for closing real estate transactions. Buyers and sellers are generally advised to consult a licensed real estate professional for a written definition of an individual state's laws of agency.
Property management is the operation, control, maintenance, and oversight of real estate and physical property. This can include residential, commercial, and land real estate. Management indicates the need for real estate to be cared for and monitored, with accountability for and attention to its useful life and condition. This is much akin to the role of management in any business.
For sale by owner (FSBO) is the process of selling real estate without the representation of a broker or agent. Homeowners may employ the services of marketing, online listing companies, or market their own property. Typically, they represent themselves with the help of a lawyer or solicitor throughout the sale. As in most areas, there are detailed legal requirements pertaining to sellers and disclosures they must make.
Business brokers, also called business transfer agents, or intermediaries, assist buyers and sellers of privately held businesses in the buying and selling process. They typically estimate the value of the business; advertise it for sale with or without disclosing its identity; handle the initial potential buyer interviews, discussions, and negotiations with prospective buyers; facilitate the progress of the due diligence investigation and generally assist with the business sale.
An insurance broker is an intermediary who sells, solicits, or negotiates insurance on behalf of a client for compensation. An insurance broker is distinct from an insurance agent in that a broker typically acts on behalf of a client by negotiating with multiple insurers, while an agent represents one or more specific insurers under a contract.
A Virtual Office Website (VOW) is a web site that is used to conduct business activities. One example is a VOW used as a real estate property search site allowing the public to conduct searches of approved multiple listing service properties in a given area under certain conditions. Also see Virtual company.
An Internet Data Exchange refers to the agreement between listing (Selling) Agents or Brokers and Buyers' Agents to display Multiple Listing Service properties online, across multiple websites.
Internet Listing Display (ILD) was a set of rules put forth by the National Association of National Association of Realtors in 2005 to regulate how homes and properties can be displayed on internet sites. The ILD policy was intended to consolidate and replace both the Virtual Office Website (VOW) and Internet Data Exchange (IDX) policies to create one set of rules.
Flat-fee multiple listing service or flat-fee MLS refers to the practice in the real estate industry of a seller entering into an "à la carte service agreement" with a real estate broker who accepts a flat fee rather than a percentage of the sale price for the listing side of the transaction. A flat-fee MLS brokerage typically unbundles the services a traditional real estate brokerage offers and lists the property for sale in the local multiple listing service (MLS) à la carte without requiring the seller to use all services.
Stefan J. M. Swanepoel, is an American business executive, author and real estate businessperson. He has served as president of two non-profit organizations and seven companies, including a New York-based global franchise network. He is most known as a business and trends author, having written more than 20 books and reports. His books have been listed on the New York Times and Wall Street Journal bestseller lists.
Metropolitan Regional Information Systems, Inc. provides a multiple listing service in the United States. As of mid-July 2010, it served 51,171 real estate professionals in Baltimore-Washington Metropolitan Area including Maryland, Washington DC, Northern Virginia, and parts of West Virginia and Pennsylvania.
A real estate trend is any consistent pattern or change in the general direction of the real estate industry which, over the course of time, causes a statistically noticeable change. This phenomenon can be a result of the economy, a change in mortgage rates, consumer speculations, or other fundamental and non-fundamental reasons.
Real Estate Transaction Standard (RETS) is a deprecated data standard that was used by the real estate industry in Canada and the United States to facilitate the exchange of data. RETS was launched in 1999 by the National Association of Realtors and related groups.
An exclusive buyer agent (EBA) (also known as an exclusive buyer broker (EBB)) is a U.S. real estate firm (or an agent or broker who works in such a company) that represents only buyers of real estate. EBA firms never take listings and, therefore, never represent the seller in a real estate transaction.
Homes.com, Inc. is the second-largest real estate portal by traffic market share in the USA in 2023. Headquartered at 501 S. 5th Street Richmond, Virginia, United States, Homes.com maintains additional offices in Boca Raton, Florida; Tallahassee, Florida and San Diego, California. The company also provides real estate marketing and media services including brand advertising, property listing syndication, reputation management and lead generation.