New License Act

 Effective 1-1-2010
(except some licensing and CE provisions)

The  new license act has finally been passed (it’s been going on for three years). 

What’s it mean for Salesperson Licensees?

By April 30, 2012, all Salesperson Licensees will have to become Broker Licensees. 

How will a Salesperson become a Broker?

Salesperson licensees can take a proficiency exam or take 30 hours of class before April 30, 2012. 

 How many times can a Salesperson attempt to pass the exam?

Only once. If they fail, they must take the 30 hour course and pass the exam.

What’s Information Professionals Real Estate School going to do to get you to pass?

We’re not sure yet. We only know as much as you! But, we’ll make things as easy and convenient as possible. We promise it won’t be that bad. Currently there is no course, no test, no body of knowledge to be covered. Just a new law that  says you’ll have to do this.

When I get my new Broker’s License will I be able to open my own office, sponsor other licensees or manage an office?

No.  To do any of these you will need to get a Broker Manager Certificate.  So, for all its worth, the State just really changed the names of the licenses from Salesperson and Broker to Broker and Broker Managers.

What about CE?

CE’s a mess! Broker CE right now is the same as it was last year. Next year (April 30, 2011 their previously scheduled renewal year) Salespersons will not renew. They will not  renew until April 30, 2012.  By April 30, 2012, they must be brokers.  Remember they can become a Broker by challenging the test or taking the 30 hour class and then testing. If they get their license by challenging the test they must take 18 hours of CE to renew in 2012 (6 core, 6 elective, 6 hours broker management). If they get their license by taking the 30 hour class – they take no CE to renew in 2012. 

What about CE for those renewing a Broker Manager Certificate?

They must take the usual 18 hours (6 core, 6 elective, 6 hours broker management) to renew their Broker’s license plus another 12 hour Broker Management course to renew their Broker Manager Certificate..

What about new people coming into the business?

Starting April 30, 2011, They will have to take 90 class hours before passing the State exam and then a 30 hour post licensing class before their first renewal.

OTHER CHANGES AFFECTING EVERYDAY BUSINESS

 Brokerage companies or entity must have an office policy manual. The only exception to this is a sole proprietorship with no sponsored licensees.  Topics that might be included: agency, fair housing, nondiscrimination, harassment, confidentiality of client information, advertising, training and supervision of sponsored licensees, disclosures, handling of risk assessment matters, handling of earnest money and escrows.

If an agent is making contemporaneous offers or contracts to purchase or lease on the same property the licensee must provide a written disclosure to all clients making the offers and if the client requests, refer the client to a another designated agent. 

All agency requirements apply to all lease transactions.

 A licensee must give a consumer the name or names of his designated agent in writing and explain the designated agency relationship that will exist before beginning to work for the consumer.

 Before beginning to work for the consumer, the licensee representing the consumer must discuss with the consumer the sponsoring broker’s compensation and  policy with regard to cooperating with brokers who represent other parties in a transaction.

 In Internet advertising a licensee cannot use a deceptive or misleading URL; deceptively frame a site or frame a site or the MLS without authorization;  use deceptive Meta tags, keywords or other devices to drive or divert Internet traffic.

 Referrals made by tenants. A broker can pay an unlicensed tenant $1500 (was $1000). Still can refer only 3 prospective tenants.

 Sponsoring broker no longer needs to send sponsor cards to the State certified mail return receipt requested or any other signatory service.

 Renewal forms for licensing will be mailed to the sponsoring broker’s address.

 Applicants for licensure can fail the state exam 4 (was 3) times before completing the course work required to sit for the exam.

 Transcripts from prelicensing classes are good for 4 (was 3) years before expiring.