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
A liability that does not go beyond the owner's investment in a real estate business. A corporation and limited partners have this benefit. The stockholders of a corporation usually have ...
Mortgagor's signed statement that the stated remaining balance of a mortgage is correct and it is a property lien. This prevents a mortgagor from later stating the facts were ...
A notice, usually in writing, in which notice of termination is given by one individual or business to another. It is pursuant to a cancellation provision in a contract to forestall ...
North-south lines that encircle the earth and used as references in mapping land. ...
The endorser stipulates something such as that the transferee cannot use the funds for six months. ...
Correcting depreciation by making improvements at less cost than the value added. For example, the management of an aging strip shopping center makes a decision to refurbish the windows and ...
The definition of the Environmental Protection Agency can be explained by what the agency does. This independent executive agency works for the United States federal government and is ...
Construction materials from stone, brick, and concrete block. Masonry materials play an important role in providing structural support as well as being used as decorative finish surfaces. ...
Legal right or privilege, such as that arising from a contract, to use land owned by another person or business for a specific purpose. The use should be reasonable for the circumstances. ...
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