Principal Broker
To understand what a principal broker is, we have to go back up the family tree of real estate.
You do understand all brokers can be real estate agents, but not every real estate agent can be a broker, right? That’s because, to obtain a broker’s license, the real estate agent has to attend additional broker’s classes and, in some states, have some proven experience in the real estate market.
Ok, with that in mind, you must also understand that most of the states prohibit real estate agents from working without brokerage supervision. They can do everything, but once a deal is set in place, the real estate agent will need a broker to close things properly. However, there are some individuals that do possess a broker license but still work as real estate agents under another broker. They are brokers that prefer not having the heavy costs of running an office and/or the responsibilities of having their name on the billboard.
So, finally, the Principal Broker is the fearless one who puts his name on the billboard and carry the burden of maintaining a business. The big boss. El Jefe. The Principal Broker.
Also known as managing broker or qualifying broker, the principal broker is the one with the legal authority to sign agency contracts with a home buyer or a home seller and the one who supervises all agents working on a brokerage firm. He/she is the supervisor, and sometimes the home buyer or home seller doesn't even get to meet him/her!
How does the principal broker earn a living?
Well, because his/her existence allows the real estate agent to close deals and profit from it, the principal broker normally receives an override on the sales of all the licensees working under his/her license.
Popular Real Estate Terms
Person or business that benefits from the work of another person or business. The recipient has not compensated the other party for this gain. In law, the one being enriched at the ...
Not attached to any parcel of land but merely a personal right to use the land of another. ...
External top of a structure such as for an office building or house. ...
Body o law relating directly to condominiums and cooperative developments. Most property law provides vertical ownership of property in the sense that property owners own mineral rights as ...
Any gain or loss from selling of capital assets. The gain or loss is the difference between the net selling price and cost basis. The two types of capital gains or losses for tax purposes ...
Projecting structure or part of a building. For example, a home was built with balconies jutting out from the sides of the building or a large rock formation constructed out into the ocean ...
Fan with an opening to the outside air that lets stale or hot air exit the structure; usually used in a kitchen when cooking or in a bathroom that does not have a window. It is used for ...
Implied assurance from a landlord to a prospective tenant that an apartment is safe and void of health problems. ...
Money set aside for a possible loss, such as from a fire. ...
Comments for Principal Broker
Are Real Estate agents in Arkansas automatically Brokers? Also, how would I search to find out if someone is a licensed broker in the state of Arkansas?
Feb 17, 2020 19:45:42Hi Sharice!
the answer to your question is no, not necessarily. In Arkansas, a person can be a real estate agent without a real estate broker's license, as long as they are under the auspices of a licensed broker.
Feb 21, 2020 10:56:44Have a question or comment?
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