From understanding the role of a broker to obtaining the necessary licenses and qualifications. Here’s all you need to know
Have you ever wondered what it takes to become a successful real estate broker? Here’s a guide.
STEP-BY-STEP GUIDE TO BECOMING A REAL ESTATE BROKER:
1 Understand the role of a broker
Brokers are licensed professionals who manage real estate transactions between buyers and sellers, just like real estate agents. However, real estate brokers can work independently and start their firms. They have additional responsibilities compared to real estate agents, including overseeing agents in their firm, managing real estate offices (if any), and ensuring compliance with laws and regulations.
2 Research
“ The first step would be to understand the licensing requirements in your area of operation. These typically include education and experience prerequisites, “.
3 Educational requirements and qualifications
To start your career as a real estate broker, you must complete the pre-licensing course. “The pre-licensing course typically covers topics such as real estate principles, property management, real estate finance, and real estate law. The number of hours required varies from state to state, but it usually ranges from 60 to 120 hours of coursework,”.
4 Gain practical experience
Most states require you to work as an agent for two to three years and successfully close a specified number of transactions.
“Internships and entry-level positions provide invaluable hands on learning and exposure to the day-to-day operations of real estate transactions. This experience helps aspiring brokers understand market trends, client management, and the nuances of property transactions.”
5 Pass the broker’s license examination
“You must pass a broker licensing exam administered by the state’s real estate commission or licensing board. Aspiring real estate brokers must adhere to the licensing procedures set by the state’s rera authority. The exam typically covers topics related to real estate laws, regulations, contracts, and practices.
6 Eligibility criteria
Applicants must meet the eligibility criteria set by RERA, which typically include being at least 18 years old, having a minimum educational qualification (often a Class 12 or equivalent and higher), and being of sound mind”.
7 Obtain your broker’s license
After passing the exam, you can apply for your?broker’s?license.?This?involves applying to your?state’s?real estate regulatory authority, along with?proof of your education, experience, and exam results.?There may also be a licensing fee.
8 Background check
Before you get your?broker’s?license, you must undergo a background check.?This?may involve police verification?as well as?verification of criminal records, if any.?
9 Obtain errors and omissions insurance
“Real estate brokers in Maharashtra are required to obtain errors and omissions insurance to protect themselves and their clients against potential errors or negligence,”?states Jain. Similar process may also be carried out in other states.?Once this process is complete, you will receive your real estate broker license, allowing you?to legally operate as a broker.?However, brokers must renew their licenses every few months?as per RERA policy.?
10 Effective networking strategies or real estate brokers
To officially start practising as a broker, you can?either?join an existing brokerage company or start?your independent brokerage firm.?And while you build an independent brokerage firm, networking is?a?critical?component of?success.?Join professional associations, attend industry events to network, leverage social media marketing, as well as ensure continuous learning to stay updated with new trends.
