Monday, February 18, 2008

What it means to be an Associate Broker

When you see the term “Associate Broker” after my signature, what does that mean?

In each Real Estate sales company, there can be one, and only one, Broker. In my case, the Broker is “Real Estate One”, a Michigan corporation. Yes, an inanimate corporation can be a Broker – Michigan allows such a designation. For anyone else at Real Estate One who wishes to earn their Broker’s license, they must submit to being an “Associate Broker” of the primary Broker.

An Associate Broker is the term for the type of real estate license which I hold in Michigan. A real estate license, of some type, is required in the State of Michigan if you are to be involved in the business of real estate sales. Anyone can sell their own house without a real estate license, but to be involved as an agent of others in the sale of their real estate, a license is required.

So what does it take to become a real estate Broker?

According to the requirements of the Michigan Department of Labor & Economic Growth
Bureau of Commercial Services - Licensing Division, Board of Real Estate Brokers and Salespersons, the following are the requirements to become a Broker / Associate Broker:
1. Submit proof of 90 clock hours of approved classroom hours in real estate. Nine of the 90 clock hours must be instruction in civil rights law and equal opportunity in housing. The 90 hours are in addition to the hours required to obtain a real estate salesperson's license.
2. Submit proof of three years of real estate experience. Experience gained while licensed as a real estate salesperson is verified by past/present employing brokers.
3. Successful completion of the Broker’s Examination.
4. Candidates receive a Broker’s license application with their passing exam scores.
5. Once licensed, the licensee needs to complete at least 6 hours of continuing education each year. Thus, during the regular three-year renewal period the licensee will need 18 hours of courses.
6. There is no reciprocity between Michigan and any other states. All applicants must meet the full Michigan requirements.
7. Both real estate broker licenses and salesperson licenses expire on October 31st. They are valid for a three-year period. An agent may renew an agent license between November 1 and December 30 by paying a late penalty in addition to the regular renewal fee. They may not legally practice until the fees are paid and continuing education courses are completed.

What does this mean to you?

A Broker’s license demonstrates a long-term commitment to the business of real estate sales. With the additional experience (3 years) and education (90 hours) beyond just a salesperson’s license, you are assured of gaining the most advantage in your real estate experience. As I often say, “Let my experience make yours better”.

Be sure that your agent is an Associate Broker.

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