Real Estate License Law

By
Managing Real Estate Broker with Flexit Realty "Flexible Home Selling Solutions"

Real Estate License Law varies from state to state.

That is the first thing you should know as a home buyer or seller.  So dear ole dad living in Florida quoting Florida Real Estate how-to's won't hold much water in Michigan and vice verse.

When you relocate you should know that most things you know are going to be different.  Yes, different.  For example in Michigan we have a twisted thing called a Michigan turn that some traffic engineer came up with while sitting in an out-house.  I won't explain you'll just have to come here and experience it for yourself.

I went through Florida Broker licensing as well as Michigan.  I only maintain a Michigan broker license.  Forms are different, liability is different (the definition anyway) what the definition of a homes fixture means.  Even buyer possession, as a norm for the industry by state is different.

So when you are relocating, or just moving across the state you may find that how real estate is done can be quite different. 

For example, some areas list homes for sale but the agent representing you may not get paid for their work Real Estate License Law is Different From State To Stateunless they write in a commission amount on the contract.  Certain MLS (multiple listing service) listing services require, as a condition of listing a home the seller provide a compensation number.  The issue is, going outside your MLS does not guarantee your agent will be paid a commission by the seller's agent.  Your agreement is with your home MLS and those companies that are members of the MLS.

Not all states as the seller or buyer the same questions or afford the same protection unless it is a federally mandated right of protection.

For Example dual agency, where one agent handles both sides of a real estate transaction, may or may not be dual agency.  In Michigan we have a disclosure form to handle who represents whom.  I could be a seller's agent with my sign in the front yard and help you fill out all the buyer side paperwork, offer suggestions for inspection companies, lending and more without ever being your agent.  The form is called agency disclosure.  I write I am a seller's agent have you sign it and help you purchase the home.  I never represent you.  I help facilitate the sale on my client, the seller's behalf.

You can see how people relocating can become confused.  Banks are confused about Michigan's real estate laws, registration of loans, foreclosure rights and more.  Lenders are starting to use local attorney's and real estate agents when they are located out of state to facilitate a foreclosure, sheriff's sale and gaining access to property.

Real Estate License Law is not universal, just like not two homes are alike, not two people are alike, no two real estate transactions are alike.  

Check with the state you are in, typically you can go to the state website for real estate licensing to find a copy of the licensing law.  Additionally you can check to see if an agent or broker's license is active and in good standing, as well.

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Rainmaker
625,085
Brenda Mayette
Miranda Real Estate Group, Inc. - Glenville, NY
Getting results w/ knowledge & know-how!

An informative twist on the old adage "location, location, location".  :)

Feb 24, 2013 08:47 PM #1
Rainer
214,007
Richard Burge Realty/ Burge Homes
Richard Burge Realty/Burge Homes - Conway, SC
Broker in Charge/Owner

We cuss the Michigan turn arounds in our part of the state of North Carolina because we have adopted the this way to enter highway then get in the left lane and turn going in the other direction.  It is safer than just darting straight across.

Feb 24, 2013 09:02 PM #2
Rainmaker
1,073,964
Gary White~Grand Rapids Home Selling Pro Call: 616-821-9375
Flexit Realty "Flexible Home Selling Solutions" - Grand Rapids, MI
Real Estate Services You can Trust!

Hi Brenda, Thanks for the comments, I guess your location dictates your license law for sure.  Thanks for the comments Brenda.

Hi Richard, that is what the traffic engineers want you to think, go this way to get that way, but the studies only involve intersections.  It did not get redone to see if the merging into faster traffic has caused the same number of incidents or reduced them.  Timed specific turn arrows are designed to do the same thing as turn around and actually reduce gas consumption.  Less distance traveled, fewer starts and stops.  Thanks for the comments Richard, I jerking your chain a bit. :-)

Feb 24, 2013 10:56 PM #3
Rainmaker
264,436
Pat & Steve Pribisko
Keller Williams Greater Cleveland West - Westlake, OH

Gary, this is a good summary of points to look out for in various states, since state licensing law varies from state to state. 

Feb 24, 2013 11:57 PM #4
Ambassador
1,652,783
Jennifer Fivelsdal
JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571 - Rhinebeck, NY
Mid Hudson Valley real estate connection

Gary consumers really need to know this.  Many relocating to New York or shocked by the paperwork and the involvement of lawyers.

Feb 25, 2013 03:34 PM #5
Rainmaker
1,073,964
Gary White~Grand Rapids Home Selling Pro Call: 616-821-9375
Flexit Realty "Flexible Home Selling Solutions" - Grand Rapids, MI
Real Estate Services You can Trust!

Hi Pat and Steve, I don't know how many times I have heard they don't do it this way where I am from!  My response is,"that's probably true."  Thanks for the comments Pat and Steve.

Hi Jennifer, I have worded seller's that have only used attorney's to close sales in the past.  It may be faster than title companies.  Don't know about the cost comparision.  Thanks for the comments Jennifer, hope all is going well.

Feb 26, 2013 09:02 PM #6
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Rainmaker
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Real Estate Services You can Trust!
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