Getting Familiar with Real Estate Licenses

When working with an agent it is imperative that they are licensed to conduct real transactions in the state that business is being conducted in. Individual states may issue licenses independent of one another, but all 50 states and many different countries require that an agent have a valid real estate license before they can legally handle any business. The National Association of Realtors is the governing board and controls the policies that are made for most Multiple listings services. Shortly before 2000 regulations were passed that allowed brokers to put some of their listing information on their websites or on personal agents' websites.

Each state has its own licensing board and tests that are necessary to take before obtaining a license in that state. However, there are accommodations made for those who have licenses from other states, in most cases a refresher test is administered, or a test that covers the state specific laws. Having an out of state license allows you to bypass the pre license course that would typically be required before any testing could occur.

Once a license is issued you are free to buy and sell homes as a Realtor. You will also be granted access to a national database known as the MLS. Their is two different real estate licenses that you can test for, an agent license and a broker license. Typically there will be multiple agents working under a single broker in a real estate office. Agents tend to do most of the leg work, listing the homes, doing open houses, showing the homes, they are the cogs that keep the machine going. Brokers usually serve as the go between for banks and listing agents, they do the actual brokering of the final deal, hence the name Broker. Although real estate agents and brokers are often seen as the same thing there are subtle differences that are recognized in the industry. A broker will usually have more training and experience, whereas a person who simply shows the homes on behalf of the broker can be referred to as an agent, they need only minimal education and no license unless they are involved with the paperwork aspect of the deal. There are some states that will allow for lawyers, especially those familiar with property law, to handle real estate sales and accept a commission for doing so. That is the only loop hole in the strict licenses laws that govern real estate transactions in the United States and abroad. Unless you are a lawyer the only way to legally accept a commission for brokering the purchase or sale of a home is to obtain a NRA recognized license.