Real Estate Principles

Ninth Edition

Real Estate:
An Introduction to the Profession
Ninth Edition

By Charles J. Jacobus
South-Western Publishing©2002

South-Western Publishing©2002
 Chapter 19

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Licensing Laws
and Professional Affiliation

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 License
• A person who, for compensation or promise of
compensation, lists or offers to list, sells or
offers to sell, buy or offers to buy, negotiates
or offers to negotiate either directly or
indirectly for the purpose of bring about a sale,
purchase or option to purchase, exchange,
auction, lease, or rental of real estate, or any
interest in real estate
• is required to hold a valid real estate license.

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 Licensee Classes

• Real Estate Broker

– A person licensed to act independently in
conducting real estate brokerage business.
• Real Estate Salesperson
– A person employed by a broker.

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Real Estate Regulation

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 Broker Affiliation

• Training – complement, enhance, and

encourage your personal development.
• Compensation – usually a percentage of
earned commissions.
• Support – what services do they offer.
• Franchise offices

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 Independent Contractor

• paid only if a sale produces a commission and

is responsible for income taxes and social
security.

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 REALTOR®

• Registered trade name

• Member of NAR and not synonymous with
real estate agent
• Code of ethics first adopted in 1913
• GRI designation by taking sponsored
education courses by NAR

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 Key Terms
• Broker • Principal broker
• Independent contractor • Real estate commission
• License revocation • REALTOR®
• License suspension • Recovery fund
• Licensee • Sales associate
• 100% commission • Salesperson

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