1. © 2010 by Cengage Learning Chapter 19 ________________ Licensing Laws and Professional Affiliation

2. © 2010 by Cengage Learning  Does the public have a vested interest in seeing that real estate salespersons and brokers have the qualifications of honesty, truthfulness, good reputation, and real estate knowledge before they are allowed to negotiate real estate transactions on behalf of others?  It was this concern that brought about real estate licensing laws as we know them today.  Until 1917, no state required real estate agents to be licensed. Anyone who wanted to be an agent could simply hang up an agent’s sign. RATIONALE FOR LICENSING

3. © 2010 by Cengage Learning  A person who, for compensation or promise of compensation, lists or offers to list, sells or offers to sell, buy or offers to buy, negotiates or offers to negotiate either directly or indirectly for the purpose of bringing about a sale, purchase or option to purchase, exchange, auction, lease, or rental of real estate, or any interest in real estate  Is required to hold a valid real estate license.

4. © 2010 by Cengage Learning  Real Estate Broker ◦ A person licensed to act independently in conducting real estate brokerage business.  Real Estate Salesperson ◦ A person employed by a broker.

5. © 2010 by Cengage Learning

6.  http://www.arello.org http://www.arello.org

7. © 2010 by Cengage Learning  Training – complement, enhance, and encourage your personal development.  Compensation – usually a percentage of earned commissions.  Support – what services do they offer.  Franchise offices

8. © 2010 by Cengage Learning  Paid only if a sale produces a commission and is responsible for income taxes and social security.

9. © 2010 by Cengage Learning  Registered trade name  Member of NAR and not synonymous with real estate agent  Code of ethics first adopted in 1913  GRI designation by taking sponsored education courses by NAR

10. © 2010 by Cengage Learning  http://www.realtor.org http://www.realtor.org

11. © 2010 by Cengage Learning Broker Independent contractor License revocation License suspension License Principal broker Real estate commission REALTOR® Recovery fund Sales associate Salesperson Key Terms