July 13, 2018
Contrary to popular belief, real estate brokers and salespeople have different roles and responsibilities. A broker is someone who guides clients through the potentially arduous process of a real estate transaction.
Brokers can represent a home seller and help with listing properties for sale as well as advertising properties and overseeing open houses and viewings. Brokers can also represent home buyers by working with the client to determine their needs and locating properties for them. A real estate broker can also employ sales agents to work for them and take care of day-to-day tasks like those mentioned above.
But with all the responsibilities included in being a broker, there comes potential risk of errors. To cover this, brokers can look out for Real Estate Broker Insurance, which provides protection in the event of real estate mistakes.
Read on to discover some of the basics that real estate brokers have to adhere to in terms of requirements, and how they can serve as potential liabilities in their field.
Just like real estate agents, brokers must be licensed by their state. Brokers need to qualify for a license by holding a valid real estate sales agent license first. Depending on the state the years they have to pay their dues as an agent can vary. In general, the average length of time is about two years.
Additionally, prospective brokers must complete a training course that has been approved by their state. There are broker training courses that can be taken; these can last several weeks to complete, but run the gamut of what it means to be a broker. Certain topics covered included real estate law, finance, agency law, contracts, and property management. The end of the course offers potential brokers the opportunity to take their licensing exam.
Real estate brokers operate at a much faster rate than agents in that they potentially have a lot more to take care of. Besides just showing off listings and coordinating viewings, they have to oversee their own staff or work alongside other brokers.
To stay on top of their clients’ desires in a property they have to consider a number of things like area, type of home, and style, among others. Not to mention, brokers have to also keep their ear to the ground for trends in the market that may affect their clients’ decisions. Brokers also have to lead mediation in dealings between sellers and buyers and ensure good conduct and an honest exchange of information.
Real estate brokers do have a lot on their plate, but by the time they become brokers they already know the landscape of their industry and can expect what they’re preparing for in the role. Having at least two years of experience as an agent will prepare for the pace and workload, as well as the pitfalls, that come with the job.
About Associations Liability Insurance Agency (ALIA)
The ALIA Team (part of the Riverton Insurance Agency Corporation), specializes in helping real estate professionals find the affordable and comprehensive coverage they need, without the hassle. ALIA dates its roots to 1991 with the founding of FREA, Foundation of Real Estate Associates. In 2013, ALIA was created to work with multiple insurance companies thereby broadening the portfolio of products to customers. In 2017, ALIA was purchased by Riverton Insurance Agency Corp.