Salesperson

Definition

A Salesperson in real estate is an individual licensed to conduct real estate transactions and other related activities under the supervision of a broker. Their responsibilities and authority are governed by state real estate laws, which require them to operate under the guidance and sponsorship of a certified broker.

Examples

Listing Arrangement: A real estate salesperson arranges a 90-day listing for a house, securing the agreement from the property owner. The listing is then approved and managed by their supervising broker.
House Showing: Another salesperson takes potential buyers to tour the listed property, providing insights and answering questions.
Closing a Sale: Upon finalizing the transaction, the sale proceeds, and commissions are earned by the broker. The broker then distributes a share of these commissions to the respective salespersons involved in the listing and showing of the property.

Frequently Asked Questions

What is the main difference between a real estate salesperson and a broker?

A real estate salesperson is required to work under the supervision of a licensed broker. In contrast, a broker can work independently, manage their own real estate business, and oversee multiple salespersons.

How does one become a real estate salesperson?

To become a real estate salesperson, an individual must typically complete state-mandated pre-licensing courses, pass a licensing exam, and apply for a license through their state’s real estate regulatory body.

What activities are salespersons authorized to perform?

Salespersons can perform various real estate-related activities such as listing properties, showing properties to potential buyers, facilitating transactions, assisting in negotiations, and participating in closings. However, all activities must be undertaken with broker supervision.

How are commissions distributed among salespersons and brokers?

Commissions are usually earned by the brokerage firm upon the successful closing of a transaction. The broker then distributes a portion of the commissions to the salespersons based on internal agreements and participation in the transaction.

Are salespersons allowed to operate independently?

No, salespersons cannot operate independently. They must be affiliated with and work under a licensed broker.

Broker: A licensed professional who may work independently or employ salespersons to perform real estate activities.
Commission: A fee paid for services in a real estate transaction, typically a percentage of the property’s sale price.
Listing: A formal agreement between a property owner and a broker authorizing the broker to act as the seller’s agent in marketing the property.
License: Permission granted by a state’s regulatory body to engage in certain real estate activities.
Real Estate Law: The body of regulations overseeing the practice of real estate transactions and licensing within a state.

Online Resources

National Association of Realtors (NAR): www.nar.realtor Provides resources, training, and networking opportunities for real estate professionals.
Real Estate Licensing and Regulation Authorities by State: Comparative Guide
Real Estate Education Nemours Schools: Online Real Estate Courses
Investopedia: Real Estate Basics: Investopedia Real Estate Guide

References

“Principles of Real Estate Practice” by David C. Revzan
“Your First Year in Real Estate” by Dirk Zeller
“Real Estate License Exams For Dummies” by John A. Yoegel

Suggested Books for Further Studies

“The Book on Managing Rental Properties” by Brandon Turner and Heather Turner
“Real Estate Success in 5 Minutes a Day” by Karen Briscoe
“Mastering the Art of Commercial Real Estate Investing” by Doug Marshall
“The Millionaire Real Estate Agent” by Gary Keller, Dave Jenks, and Jay Papasan
“Real Estate Investing for Dummies” by Eric Tyson, Robert S. Griswold

Salesperson Fundamentals Quiz

### Who must a real estate salesperson operate under? - [ ] Another salesperson - [x] A licensed broker - [ ] The property owner - [ ] The real estate exam board > **Explanation:** A real estate salesperson must work under the supervision of a licensed broker, as dictated by state real estate laws. ### How can a salesperson earn commissions in a real estate transaction? - [ ] Directly from clients - [ ] Through third-party entities - [x] Distributed by the broker - [ ] Via an app > **Explanation:** Commissions are earned by the brokerage firm upon closing and then distributed to the salesperson by the broker. ### Can salespersons perform real estate activities independently? - [ ] Yes, they can operate on their own - [x] No, they need broker supervision - [ ] Only in certain states - [ ] Alongside other salespersons > **Explanation:** Salespersons cannot independently perform real estate activities and must operate under the guidance of a licensed broker. ### Essential requirement to become a real estate salesperson includes: - [ ] Owning a property - [ ] Having a college degree - [x] Completing state-mandated pre-licensing courses - [ ] Working in real estate for 2 years > **Explanation:** To become a real estate salesperson, one must complete state-mandated pre-licensing courses before taking the licensing exam. ### What is an example of a task a real estate salesperson might undertake? - [ ] Enforcing zoning laws - [x] Showing homes to prospective buyers - [ ] Designing real estate logos - [ ] Issuing building permits > **Explanation:** Salespersons often show homes to potential buyers as part of facilitating real estate transactions. ### How is an agreement for property listing formalized? - [x] Through a listing agreement - [ ] Verbal handshake - [ ] Email confirmation - [ ] Text message consent > **Explanation:** A formal listing agreement is signed between the property owner and the broker to list a property for sale. ### What differentiates a broker from a salesperson? - [ ] A salesperson manages brokers - [x] A broker can operate independently - [ ] A salesperson handles only rentals - [ ] A broker cannot manage salespersons > **Explanation:** Brokers can operate their own business and manage multiple salespersons, while salespersons work under broker supervision only. ### The process of becoming a real estate salesperson includes passing what? - [x] A licensing exam - [ ] A developer's course - [ ] Fitness assessment - [ ] Marketing seminar > **Explanation:** After completing pre-licensing education, aspiring salespersons must pass a state-administered licensing exam. ### Which body typically regulates real estate licensing in the United States? - [ ] Local housing associations - [x] The state's real estate regulatory body - [ ] National Real Estate Commission - [ ] Zoning and planning departments > **Explanation:** State real estate regulatory bodies are responsible for issuing licenses and overseeing real estate activities. ### Which activity is NOT typically performed by a real estate salesperson? - [x] Issuing mortgages - [ ] Facilitating property viewings - [ ] Assisting in property negotiations - [ ] Listing properties for sale > **Explanation:** Salespersons do not issue mortgages; this is typically done by financial institutions or mortgage brokers.