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Knowledge, responsibility, structure.
Stevens Point, WI
Guidence and responsibility.
Stevens Point, WI
In the state of TX a licensee must have a sponsoring broker to have an active license. That sponsoring broker is responsible for all the actions of the licensee. The licensee can only received compensation from their sponsoring broker.
Hella M. Rothwell, Bro...
Carmel by the Sea, CA
The principal broker has years of experience and is supposed to supervise the affiliates. That is the law in most states.
In Indiana, all Real Estate agents must be under a registered Managing Broker in the state, to even be able to work as a Real Estate Agent.
Because all agents are not considered to be able to manage real estate without the supervision of a broker. (Stock Answer)
In reality, it was a great way to set up a system for brokers to be able to make money from their agents, going back to the dark ages.
Amanda Brown most states require that the agent work with a broker before practicing real estate independently.
Amanda Brown In my state you cannot practice real estate without having a license and associated with a principal broker. The only exception is if you are a broker, then you have to get licensed as a sole proprietor or firm. The principal broker is responsible for all the activities of all sales persons within the office.
Illinois has removed license for sales agent. You now must be a broker or broker manager. Which means you can work for yourself and be self managed or if you do not take the extra course to be a broker manager then you must work for someone who has that license.
They must have a managing broker. An agent can be both their own managing broker and sales agent, but it is all a matter of licensing law. To be clear, that managing broker must have a managing broker's license; not only a real estate sales license. As Annette stated, it is law.
It is the LAW!
Read the details of the AR question posted this morning.