REAL ESTATE BROKERS- ALL YOU NEED TO KNOW
For most people, there is no distinction between a real estate broker and a real estate agent. However, if you work in the real estate industry, there is a very clear difference.
All real estate brokers were once licensed agents — but not all agents are brokers. Brokers assume legal responsibility for the agents and the real estate transactions being managed through their brokerage.
Agents hang their licenses with a brokerage, and the broker provides oversight, consultation, and direction to ensure transactions get managed according to the letter of the law.
A real estate broker is an individual with specialized expertise in the real estate industry. All real estate brokers were once licensed real estate agents — but not all real estate agents are licensed brokers. Brokers supply the people, process, and technology for real estate agents to carry out successful transactions for their clients.
The real property market is of peculiar nature and to serve as a common platform or as a link between the potential buyers and potential sellers, some agency is required. The state brokers or estate agents provide such agencies and with certain commission, they assist both the parties to reach upto the final sale.
For potential seller , the estate agent visits the property and studies its characteristics . he also assists in framing the subjective valuation of the seller and then, by advertising or other means, he tries to contact the potential buyers in search of such properties . He also arranges for the visits to the property for the interested buyers.
For potential buyer, the estate agent tries to know the type of property to be purchased and his subjective valuation , Then, by advertising or by other means, he comes into contact with the potential sellers of such properties . He then arranges for the visit of the potential buyer to the various sites.
It is thus seen that with the help of estate brokers, the potential buyers and potential sellers come in contact with each other. Ultimately, a potential seller is faced with the potential buyer. The estate broker acts as a intermediary between the two communicating offers and counter offers as in most of the cases, the haggling over the value is not uncommon. The estate broker also helps in arranging some of the preliminaries to a transaction such as amount of deposit, time limit for final deed, draft for agreement to sale, etc.
Duties of Real Estate Broker:
- Overseeing and assisting real estate agents with their transactions
- Guiding clients on how to prepare their property for listing
- Reviewing and editing important documents like purchase agreements and contracts
- Marketing listings to their client base and the general public
- Drafting and filing property-related paperwork
- Moving funds in and out of escrow accounts
- Mediating conflicts in a legal dispute
- Communicating with buyers and sellers to ensure all deadlines and industry standards are met
- Training real estate professionals and providing continuing education for promotion or advancement
- Witnessing contract signings and other legal transactions
Types of Real Estate Brokers
There are three categories of real estate brokers. Each has varying degrees of responsibility.
- Associate brokershave broker licenses but choose to work under another broker. In general, associate brokers do not supervise other agents. They also are known as broker associate, broker-salesperson or affiliate broker.
- Managing brokersoversee transactions and daily operations in the office. They also hire agents, train new hires, and manage administrative staff. Duties may include all licensing issues of agents in the brokerage, including onboarding, training and mentoring of new agents and leading continuing education opportunities for agents as well.
- Principal/designated brokerssupervise real estate agents to make sure they comply with state and national real estate laws. Each real estate office has one designated broker.