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Office Policy for License Verification

By Angie Ridley

Real Estate Broker/Owner with Complete Realty, LLC

April 29, 2007 03:49 AM

Please feel free to copy, paste and tweak to meet your needs.

I have found 2 people in the past month schedule showings and write offers that were not legal agents.

Complete Realty, LLC New Office Policy: Every agent that calls to see a home, the state license # must be verified through the state of Michigan website.
State of Michigan License and Verification On-line Service The persons license must match the business they are stating they are with.

It doesn't matter if you know this agent or not. The license must be verified. If you find the license is with a school, the person probably is not able to practice real estate. The school must be notified of the request and approve that the person is able to conduct business.

Since you are on your system confirming this information, save the page to your listing file, or email the information to me to save in the office listing file. For every offer written on a property listed with Complete Realty, LLC license verification must be attached.

Law suites are flying because of agents practicing illegally. This is a service to your client, your broker and the real estate industry.

Angie Ridley, Broker / Notary

http://www.completerealtyllc.com/

Angie@AngieRidley.com

Office 810 744 4600

Fax 810 936 4395

Flint Area Association Member, Board of Directors

This Week In Real Estate, Board of Directors

Flint Chapter Women's Council of Realtors 2007 Local Chapter President

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Thesa Chambers

West + Main - Bend, OR

Principal Broker - Licensed in Oregon

I am completely unaware of how a non-licensed person would have access to your listings or keys for showing. I understand why this would be a huge problem - but am at a loss of how they would have access we have an easy site to verify licenses I am trying to figure out if I should tell our Principal Broker about this being an issue here also.

Apr 29, 2007 04:17 AM

Angie Ridley

Complete Realty, LLC - Flint, MI

Broker, ABR, CRS, PMN, WCR, At Home With Diversity

What is happening here is old or non renewed agents are calling to set showings. Some have their license in escow. They know the process. They have clients that don't know their license is lapsed or inactive. It's easy to go to Realtor.com, get listing agent information, call the listing agent and whalla, they have access.

Schemers will always find away and there is no sure proof method, but I want my agents to document they went directly to the state to verify the license. I don't know how accurate and updated each office is, I believe you go to the source.

This additional step, protects your seller client, the broker and the real estate community.

In case of a lawsuit, I believe documentation is the best. I have submitted these people to Michigan Board of Real Estate.

Apr 29, 2007 04:27 AM

Laurie Mindnich

Centennial, CO

While I don't anticipate this problem, I'm glad to be aware of it. You never know, right? Unbelievable. What's so scary/pathetic is that our industry PROVIDED the opportunity for these people- UCK.

Apr 29, 2007 04:37 AM

Thesa Chambers

West + Main - Bend, OR

Principal Broker - Licensed in Oregon

I see - wow I would have never thought of this - thank you - one more question - I have never heard of having your license in escrow - what does that mean? As far as I know in Oregon you have a license or you don't.

Apr 29, 2007 04:38 AM

Angie Ridley

Complete Realty, LLC - Flint, MI

Broker, ABR, CRS, PMN, WCR, At Home With Diversity

In Michigan an agent can put their license in "escrow" by putting their license with a school or broker that does not belong to a board. They don't have to pay dues that way. When a person puts their license with a school, they must give any client they recieve to the school and then rec. a referral fee. Not allowed to practice real estate.

I had a case where the person license was with a school, on the purchase agreement he made up a fake brokerage on the pa, verbally said he was the broker. He wanted the check made out to the fake brokerage and he had a bank account set up in this fake name.

I just happen to get a yucky feeling about this person. I looked on line for the brokerage, it wasn't listed. I looked up his name, his license was with a school. Well, I called the school, they said he wasn't suppose to be actively selling real estate, then I turned himinto the board for fraud.

The second person, called me to set up a showing for one of my listings. I checked the state site for his license, his license had lapsed. I had to call the office he was doing business out of and yadda yadda yadda.

Apr 29, 2007 04:48 AM

R. B. "Bob" Mitchell - Loan Officer Raleigh/Durham

Bank of England (NMLS#418481) - Raleigh, NC

Bob Mitchell (NMLS#1046286)

I wouldn't have thought this was an issue, but we had it happen to us not that long ago. "Agent" showed the property, wrote the contract and while the deal was being processed, my agent found out that the guy didn't have a license and never did. We didn't want to ruin the transaction for the seller, so we redid the contract and pointed out to the supposed "agent" that she needed to go to real estate school and to get a license.

R.B. "Bob" Mitchell

ValueList Real Estate Services, Inc.

Apr 29, 2007 04:54 AM

Thesa Chambers

West + Main - Bend, OR

Principal Broker - Licensed in Oregon

ahh haaa - we can keep our license as inactive with the State Agency - that and are not allowed to practice while it is inactive - thank you so much for clearing this up. Each quarter we receive a newsletter that shows a lot of agents practicing with their license expired so now I understand and will bring it to our Principal Broker's attention - thank you for your patience in answering my questions - there was a blog a couple days ago about how communication and information varies from state to state - boy was it right on. You were very kind to answer me and so quickly at that.

Apr 29, 2007 04:58 AM

Angie Ridley

Complete Realty, LLC - Flint, MI

Broker, ABR, CRS, PMN, WCR, At Home With Diversity

Thank you for your questions. Each state is different, it's just important to make sure the person you are doing business with can practice real estate.

Apr 29, 2007 05:05 AM

Angie Ridley

Complete Realty, LLC - Flint, MI

Broker, ABR, CRS, PMN, WCR, At Home With Diversity

Our board of Realtors is getting Bookashowing. The agents must be licensed to belong to the board and the board supplies bookashowing with the list of agents. For non board agents we must still verifiy on the state license look up. I probably will maintain looking on the state sight until I know bookashowing is solid. www.Bookashowing.com .

Apr 30, 2007 03:25 PM

Alix Pinzon

Open Mortgage, LLC NMLS # 2975 - Downey, CA

(562)743-6086

I agree. I always check out the people that I'm doing business with, especially their license status. Here in Southern California, we're flooded with licensees, and also with non-licensees acting as if their licensed. Nothing gives me more satisfaction (well maybe a couple of things), than reporting these folks to the DRE.

Nov 27, 2007 03:48 PM