Brokers Requirements (California Estate)

A minimum of two years full-time licensed salesperson experience within the last five years or the equivalent is required. Following are acceptable methods of documenting the experience requirement for the broker examination.

• Full-time salesperson activity means at least 40 hours per week devoted to activities that require a real estate license. No additional credit will be given for more than 40 hours of activity.
• Part-time activity as a real estate salesperson will be given credit on a prorated basis.
• For example, 20 hours of activity per week would be given credit as half time employment, and four years of such employment would be required to qualify for a broker license. No credit is given for less than 10 hours of activity per week.
• Salespersons who claim full-time employment for 40 hours per week, but who are employed as full-time employees in another industry, will not, ordinarily, be credited in excess of 20 hours per week maximum (or half-time employment in the real estate business).

An applicant with a four-year degree from an accredited college may be exempt from the two-year salesperson experience requirement. This may be verified by submitting either a copy of the diploma or transcript showing the degree earned.

Regardless of the degree, the applicant must show evidence (transcripts) of having completed the eight required college-level courses at the time of filing the application. The eight required courses, which is considered the equivalent of a minor in Real Estate, may be part of the degree requirements or they may be completed separately from the degree course work.

Purchasing real estate

The purchase of real estate is the largest single investment most Californians make during their lifetimes. Subdivision laws enforced by the Department help ensure that subdividers deliver to buyers what was agreed to at the time of sale.

These laws cover most standard subdivisions and various types of common interest developments (of 5 or more lots or units), time-shares, certain undivided interest developments, and out-of-state time-share subdivisions offered for sale in California.

Before real property which has been subdivided can be marketed in California, the subdivider must obtain a public report from the DRE. The public report discloses to prospective buyers pertinent information about a particular subdivision. Prior to the issuance of a public report, the subdivider must file an application along with supporting documents with respect to representations made in the application. If improvements to the subdivision are not complete at the time of filing the application, the subdivider must also submit evidence to the Department that adequate financial arrangements have been made for their completion.

Real estate brokers and sellers

Services provided to seller as client

Upon signing a listing contract with the seller wishing to sell the real estate, the brokerage attempts to earn a commission by finding a buyer for the sellers' property for highest possible price on the best terms for the seller. In Canada, most provinces' laws require the real estate agent to forward all written offers to the seller for consideration or review.

To help accomplish this goal of finding buyers, a real estate agency commonly does the following:

• Listing the property for sale to the public, often on a Multiple Listing Service, in addition to any other methods.
• Based on the law in several states, providing the seller with a real property condition disclosure form, and other forms which may be needed.
• Preparing necessary papers describing the property for advertising, pamphlets, open houses, etc.
• Generally placing a "For Sale" sign on the property indicating how to contact the real estate office and agent.
• Advertising the property. Advertising is often the biggest outside expense in listing a property.
• In some cases, holding an Open house to show the property.
  Being a contact person available to answer any questions about the property and to schedule showing appointments
• Ensuring buyers are prescreened so that they are financially qualified to buy the property; the more highly financially qualified the buyer is, the more likely the closing will succeed.
• Negotiating price on behalf of the sellers. The seller's agent acts as a fiduciary for the seller. This may involve preparing a standard real estate purchase contract by filling in the blanks in the contract form.
• In some cases, holding an earnest payment cheque in escrow from the buyer(s) until the closing. In many states, the closing is the meeting between the buyer and seller where the property is transferred and the title is conveyed by a deed. In other states, especially those in the West, closings take place during a defined escrow period when buyers and sellers each sign the appropriate papers transferring title, but do not meet each other.

Real estate agent's education

A person may attend a pre-license course (often 60 actual hours) and be tested by the state for a real estate agent's license. Chapters of Alison Rogers' book Diary of a Real Estate Rookie describes the author's experience taking a 75-hour pre-license course in New Jersey and a 75-hour pre-license course in New York.

Upon passing, the new licensee must place their license with an established real estate firm, managed by a broker. Requirements vary by state but after some period of time working as an agent, one may return to the classroom and test to become a broker. Brokers may manage or own firms. Each branch office of a larger real estate firm must be managed by a broker.

States issue licenses for a multi year period and require real estate agents and brokers to complete continuing education prior to renewing their licenses. Many states recognize licenses from other states and issue licenses upon request to existing agents and firms upon request without additional education or testing however the license must be granted before real estate service is provided in the state.