Dear Monty: I have a serious problem with a real estate transaction. We came across a state agency called the “Real Estate Commission.” When I researched the fees, I found out that all of the fees were real estate agents. We are reluctant to contact them. It’s like a fox guarding a chicken coop. Do you have any information about real estate brokerage fees?
Monty’s Answer: Two rules apply to real estate agents. One is regulation by state real estate commissions, which issue licenses to brokers and real estate agents and enforce state real estate laws. The second rule comes from your local real estate agent board. Licensees who become real estate agents must follow the rules of their local real estate agent board. Home sellers and buyers who buy and sell directly without a real estate agent are not regulated by either organization.
committee rules
The purpose of the Real Estate Commission is to protect consumers of real estate services from brokers and agents. The state Legislature relinquishes to the Real Estate Commission the authority to enact and enforce real estate licensing laws for real estate brokers and agents. The laws include:
—Issuance and revocation of licenses.
—Establish rules regarding continuing education.
-suspension.
– Surveillance agent.
– Leveling of fines.
– The violator’s license will be revoked.
Real estate agent rules
After obtaining a state license, many real estate agents join local real estate agent boards. One of the main reasons so many people join is because local boards of real estate agents have formed separate companies to operate multiple listing services (MLS). Real estate agent membership is required to access the joint listings of agent members. When a licensee joins a real estate agency that is a real estate agent member, he is subject to two different rules: the rules of the Realtor Code of Ethics and the MLS rules that brokers and agents must abide by. Masu. Entering properties into the MLS, advertising, marketing, collaborating with other members during negotiations, removing contingencies, and closing real estate transactions. The Board of Realtors has similar powers to state regulations, but only regarding codes of ethics. They cannot revoke state licenses.
cause and effect
Your observations are accurate. Decades ago, the National Association of Realtors (NAR) lobbied Congress to pressure states to adopt licensing laws. Only a handful of states adopted state regulations during this period, and all early states established boards of real estate agents to oversee the adoption of rules. Later, states that enacted real estate laws and real estate commissions followed the lead of earlier states and appointed real estate agents. This new authority allowed NAR to enact legislation that tilted the playing field in her favor in a variety of ways. You’re not alone in noticing this. The Consumer Federation of America (CFA) states: “Practice real estate brokers should be prohibited from holding any regulatory position. Instead, they should be allowed to serve as state insurance commissioners and utility commissioners. Similarly, regulators should be appointed (or elected) from a pool of candidates.” Candidates from outside the industry should be asked first and foremost to protect consumers, not brokers. ” The CFA report goes on to say that the newly appointed commissioner should “correct the tilt” to protect consumers. The CFA link above is a link to the full report.
Richard Montgomery is the founder of PropBox, the first advertising platform to directly connect home sellers and buyers to negotiate and close sales online. He provides readers with a choice of solutions to real estate questions. Follow him on Twitter (X) @rmpropbox or at DearMonty.com.
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