Definition of "Licensee"
In general terms, a licensee means a person or legal entity who has received authorization or permission to perform a particular activity through another party (the licensor in our case.) As a consequence, the licensee has certain obligations to meet. For instance, they have to pay a specific fee or share from their revenue for using the licensor’s permission.
You can find the term operating licensing agreement in various business domains, such as entertainment, media, and technology. Additionally, as stipulated in licensing agreements, a licensee is granted legal capacity in franchises, government, and brand licenses.
Who is a real estate licensee?
A real estate licensee lawfully retains a real estate salesperson or broker’s license. A licensee has satisfactorily passed a real estate salesperson’s or broker’s license examination and meets the real estate salesperson’s or broker’s license state legal requirements. In many states, the employing real estate broker can retain a real estate salesperson’s license.
Once the licensee obtained their real estate license, they can lawfully broker, sell, or rent properties to potential house buyers or tenants. Furthermore, they can perform their activity in various profitable real estate niches, representing a real estate brokerage. The US doesn’t allow realtors to perform this work without a real estate license.
By definition, a real estate licensee has permission to enter a property they represent, otherwise off-limits for the general public. The real estate’s owner provides the agent with this authorization to use the said land.
Real estate licensee as a creditor
Suppose the seller wishes in-depth assistance. Then, the licensee can aid the owner in deciding whether a potential buyer is certified for getting credit or a mortgage loan. You can consider a real estate licensee a “creditor” then. However, this rule applies to purchase-money mortgage sales or under a land contract. This type of contract refers to a seller who holds on to the property’s legal title. At the same time, they enable the buyer to use the land for various purposes.
The professional path of a real estate licensee
Students interested in acquiring a real estate license are expected to pass a real estate licensing exam. After the exam, which differs from state to state, they’ll become a real estate licensee or agent. Soon, they will be issued a pocket license card, proving their authority to represent clients legally. We highly recommend new real estate licensees join a real estate agency to get first-class mentorship and experience in the field. An excellent real estate agent can choose to dream big and pursue a broker’s career.
Popular Real Estate Terms
Discounted value of net cash receipts to be obtained from a property. The present value calculation includes consideration of annual cash inflows plus the disposal value. ...
Device that cuts off an electric circuit when the current becomes to strong. ...
Type of mortgage, which is not based on a constant interest rate. ...
To understand what an abatement notice is, one needs to understand the concept of nuisance abatement. Abatement notice is the notice given to the owner (or occupier) of a property as ...
Nonload bearing layer of brick covering a wall of decorative purposes only. The wall is usually constructed of wood framing or masonry block. ...
Deficiency or defect existing in the way a home has been constructed. A flaw may be corrected by the builder or supplier, a refund in price given for the imperfection, or the item returned. ...
Nonprofit charitable entity, such as one providing housing for the homeless. ...
Each payment made by the borrower is equal each period, usually monthly. Each payment is comprised of principal and interest. Interest is based on the beginning balance. The cash paid less ...
That’s the name of the study a Real Estate Broker presents to home sellers when trying to turn them into clients. In it, by making a comparison with the available houses in the market ...
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