If you feel lost as a home buyer or seller, you’re not alone. Learning about various kinds of real estate professionals will help you pick the best services and make better decisions. Yet, there’s a lot of confusion about what real estate brokerages do and how they differ from other real estate businesses.
Be confused no longer. Read this handy article to learn more about brokerages and how they work.
Other Real Estate Professionals Work for Brokerages
There are several kinds of brokers in real estate brokerages: principal, managing, and associate brokers.
Principal brokers head brokerages and enforce laws in-office. Managing brokers train agents and keep offices running. Principal brokers may be managing brokers or their bosses.
An associate broker is the lowest level of a broker. One is often still in training, but has a broker license and bond. They may have started as an agent with a basic real estate license and are taking the next step.
Brokers don’t all work for multi-person brokerages. A solo real estate broker can fill all the roles. One can also get sponsorship that promotes independence from companies like Broker Breakup.
Brokerages split commissions, so each broker gets less than if they were solo. The upside is that they don’t have to do as much work for each job. They can have more clients with lower burdens and get help from coworkers.
Real Estate Brokerages Mediate Home Sales
Any level of broker can be a transaction broker where it’s legal. A transaction broker manages home sales without favoring one party or the other.
Most brokers don’t work only as transaction brokers. The average broker sometimes also helps sellers and buyers separately.
Brokerages Have Both Bonds and Licenses
One vital feature of real estate brokerages is that all their brokers hold bonds. They’re a kind of insurance that protects licensing authorities, lenders, buyers, and sellers who work with real estate brokers. If the brokerage or one of their agents makes a big mistake, the bond pays claimants.
While bonds are a sort of insurance, “real estate insurance” by that name is another product. That insurance protects real estate professionals, not clients.
Along with a bond, a real estate broker needs a broker license, like any real estate agent needs a real estate license. Broker licenses are harder to get since they show who handles funds and key documents.
Another reason brokers follow strict rules is that they can be managers. More responsibility leads to more liability. Yet, a solo broker also needs a broker license and a bond to handle all funds and documents on their own.
Discover Real Estate Tips, Work Advice, and Ways to Relax
This information about what real estate brokerages do, makes you a more informed buyer or seller when you pursue your next real estate transaction.
You’re in the perfect place if you need more real estate tips, work advice, or want to forget all that and learn about ways to relax. Click on another one of our articles to wise up and enrich your life.