Qualifying Broker
Knowledge is Power: Building Your Company
We have all heard the parable of building your home on rock versus sinking sand. One withstands the battering of the rain, wind and floods and the other does not. The only distinction is the foundation and yet that makes all the difference. The strongest foundation one can have when deciding to be a qualifying broker is knowledge. If you start with knowledge as your foundation your brokerage, or “company,” will be on solid ground. Without knowledge it is likely to crumble. Knowledge is defined by the New Oxford American Dictionary as facts, information and skills acquired by a person through experience or education. This entire issue of The Update newsletter provides a blueprint for a foundation built on knowledge for qualifying brokers to follow.
KNOW YOUR ROLE. When I began working at the Alabama Real Estate Commission, I had a lot to learn in a compressed time. I formed a word association immediately to qualifying broker to better help me understand their position. This probably came from seeing it written as qualifying broker so many times. That word is quarterback and I think it is a perfect illustration of what you are. You are the team leader, the one they all depend on and the one, ultimately, giving the press conference and accepting the responsibility for the loss or the glory of the win. Being a quarterback is not a bench job nor is being a qualifying broker. Section 34-27-34 clearly states that you “shall be in a position to actually supervise the real estate activities of your associate broker and salesperson on a full- time basis.” It does not say part-time, it says full-time. We all know the hours required of a full-time job.
KNOW YOUR AGENTS, OR “LICENSEES”. A real estate brokerage is a place where quantity should surely take a back seat to quality. Your agent s not only are a reflection of you, but you can literally be held accountable for their actions. Section 34-27-34(2) states that, a “qualifying broker shall be held responsible to the commission and to the public for all acts governed by this chapter of each salesperson and associate broker licensed under him or her and of each brokerage for which he or she is the qualifying broker. It shall be the duty of the qualifying broker to see that all transactions of every licensee engaged by him or her or any brokerage for which he or she is the qualifying broker comply with this chapter. Additionally, the qualifying broker shall be responsible to an injured party for the damage caused by any violation of this chapter by any licensee engaged by the qualifying broker.” These words should make you pause and make sure you know who you are allowing to work for and represent you. The salespeople you choose hold both your license and the success of your brokerage in their hands.
KNOW YOUR AGENTS ARE EQUIPPED WITH THE KNOWLEDGE THEY NEED. Make certain they are meeting their required CE hours. Encourage them to go beyond the required CE hours and absorb all the knowledge they can. Host an educational event at your office. We are always happy to come and talk to companies. Take the time to educate, educate, and educate. The limitation of their knowledge can, ultimately, lead to the revocation of your license. Make certain they understand office policy and procedures. Explain to your agent s what will happen if they leave your brokerage. Have this conversation at the beginning of their tenure and not the day they tell you they are leaving, and they expect to take all their listings with them. This knowledge imparted early can ease contentious departures that can hurt your brokerage.
KNOW LICENSE LAW VIOLATIONS. Ignorance of the law is not a defense. If you know what the violations are then it is easier to avoid them. There are 31 violations listed in Section 34-27-36. Memorize these and make certain your salespeople do as well.
KNOW HOW TO PROPERLY HANDLE OTHER PEOPLE’S MONEY. If you do not have this knowledge, I guarantee you that it is only a matter of time until your foundation fails. If there is nothing else you take from this article please educate yourself on trust accounts before you ever take a penny of consumers’ money. There is not a more certain road to revocation than the mishandling of other people’s money. Take every class you can find on this subject. Read through old articles on our website that discuss this topic. Our auditors are always happy to answer any questions that you may have regarding trust funds.
Know that the Real Estate Commission wants you to be a successful qualifying broker. We want nothing more than for you to build a brokerage, or “company,” on solid ground and I believe that knowledge is the strongest foundation. Benjamin Franklin did as well when he stated “an investment in knowledge always pays the best interest.”
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