A Real Estate Broker Job - Essay Example

Real E Broker Introduction A real e may be defined as piece of land, the air above the land and the ground underneath it, and not limited to any buildings or structures on it. It may include business and/or residential properties, and are generally sold either by an agent (realtor) or directly by the individual who owns the property . (investorword.com) A real estate broker or otherwise known as realtor is a person, licensed to arrange the buying and selling of real estate for a fee. He or she acts as an intermediary between the parties selling and buying the real estate. Realtor can also be called real estate salespersons, and the people who assist them in the process of selling and buying are generally called real estate agents and normally not required to register. A Real estate contract would refer to a contract for the purchase, sale, exchange, or conveyance of real estate between parties (buyer or seller). Generally a real estate broker, agent is a party or a person who acts as an intermediary normally between the sellers and the buyers of real estates and whose duty is to attempt to find out sellers who wish to sell and buyers who wish to buy the real estate property in question. The difference between salespersons and brokers The term sales person and broker in many ways have been used interchangeably depending on where such a person is. For instance in USA originally the relationship between the two were made under English common law of agency and that the broker had fiduciary relationship with his or her client. Whereas in UK the term estate agent describes a person or an organization whose duty is to market real estate on behalf of clients, there are quite a lot of difference as far as actions and liability of a broker and estate agent in each country is concerned. The diversity in the terms as used in many countries and the desire to understand the concept of sales person and broker allows this paper to concentrate mainly in USA. For one to become real estate agent he or she must take some minimum classes before sitting for a state license exams which are provided by real estate brokerages. Real estate agent acts as agent of broker so in one way or the other the broker is the “master” and the real estate agent is the “servant”. To expand on the difference it is better to look at the two levels of real estate professional license; Real estate salesperson A person intending to become a real estate sales person must first take course work and must pass state exam on real estate law and practices. After these conditions have been met they obtain a real estate sales person’s license. Further to the above the real estate sales person are required to be associated with a real estate broker for whom they act under their authority. It is important to note that these words are used interchangeably across the United States. Real estate broker Under this step a real estate sales person may advance to a real state broker by obtaining or being licensed as real estate broker. This is usually after gaining some years of experience in real estate sales to allow him or her own, manage or operate their own brokerage. There are some exceptions to some states where college graduates are allowed to apply for a broker license without years of experience. For instance, California, allows licensed attorneys to become brokers upon passing the broker exam, without having to take the requisite courses required of agent while in New York licensed attorneys become real estate brokers without taking any exam. Agency relationships with clients versus non-agency relationships with customers The agency relationship here as was in the tradition involves; first the broker provides a conventional full-service which was commission-based brokerage relationship under a signed listing agreement with a seller or agreement with a buyer, this therefore created under common law an agency relationship with fiduciary obligations between the parties under the contract with the seller or buyer being the client of the broker. Generally in an Agency relationship in suburban real property transactions, entail the legal representation by a real estate broker of the principal, whether either that person or persons is a buyer or a seller as highlighted in the transaction. The broker in this case whether represented with his/her licensed real estate agents becomes the agent of the principal. Under Non-agency relationship that is where there is neither written agreement nor does fiduciary relationship exist, a real estate broker and or his or her agent’s works with a principal who is then known to us as the brokers customer. It should be noted here that when a buyer, who has not entered into a Buyer Agency agreement with the broker, buys a property, then that broker act as the sub-agent of the sellers broker. In situations where a seller chooses to work with a transaction broker, then there is no agency relationship created. Transaction brokers This occurs where there is neither agency nor fiduciary relationship between brokers and sellers or buyers. Here the transaction broker’s function is to merely facilitate. That is to say transaction brokers assist buyers or sellers, or even both during the transaction without their interests at heart. In this case the buyer or seller is regarded as a customer. Dual or limited agency This occurs when the same brokerage represents both the seller and the buyer under written agreements that bind them. Types of services that a broker can provide Conducting Comparative Market Analysis which refers to an estimation of the homes value compared with other properties that have previously been dealt with. Exposure; which refers to marketing the real property to prospective buyer, this ensures that buyers are aware of the existence of a property being offered in the market. Facilitating a Purchase; this involves guiding a buyer through the process of analyzing the property to be bought. Facilitating a Sale; this involves guiding a seller through the selling process to ensure necessary steps are followed. The broker also provide full residential appraisal only if the broker is also licensed as an appraiser. The broker can also provide guidance on Home Selling Kits that is on how to market and sell a property at a given situation. Generally brokers deal with the Property Management to ensure such properties are in good condition as is required. The broker also deals with the auctioning of property in case where there is default in meeting the condition within the contract. Listing the property for sale to the public is yet another function of the broker. This is done in accordance with the laws and regulation of each state. The broker also engages in preparation of necessary papers describing the property for advertising in pamphlets, open houses, for interested buyer to make their bids. Brokerage commissions Upon satisfactorily finding a buyer for the property, a broker is entitled to receiving a commission for the services the brokerage has provided. Reference Real estate, Oxford English Dictionary online: Retrieved December 9, 2011 Real estate. The American Heritage Dictionary of the English Language, Fourth Edition. Houghton Mifflin Company, 2004. Dictionary.com Retrieved December 9, 20011 Real Estate and Mortgage Glossary / Definitions - terms beginning with "R"" Real Estate ABC - Information on Buying and Selling A Home. Web. 9th December, 2011 http://www.realestateabc.com/glossary/glossaryR.htm. Retrieved on 9th December. 2011 Read More