馃攳
Agent-Broker Relationship | Real Estate Exam Prep Videos - YouTube
Channel: The Real Estate Classroom
[1]
[Music]
[6]
everybody my name is Paul fat Chesky and
[8]
welcome to the real estate class from
[10]
YouTube channel real quick do me a favor
[11]
give this video a thumbs up hit that red
[13]
subscribe button click that notification
[15]
bell and share this with somebody that's
[17]
studying for the real estate exam
[19]
alright so in today's video we're going
[22]
to discuss the salesperson or the agent
[25]
broker relationship and it is an
[28]
important concept that you have to
[30]
realize or know because it's going to
[32]
help you be better prepared for your
[34]
real estate licensing exam so we're
[36]
going to talk about not only the
[39]
relationship but also the structure of a
[42]
company and the difference between an
[45]
employee and an independent contractor
[49]
which 99% of all real estate
[51]
professionals are alright so the first
[54]
thing I want to talk about is kind of
[55]
outline or give you the 50000 a looks
[60]
like so it all starts what we call the
[62]
designated broker the designated broker
[66]
now the designated broker is the one
[69]
person of a real in a real estate
[70]
company that's in charge they have a
[72]
broker's license they typically have a
[74]
trust account because that's going to be
[76]
mandated by the state real estate
[78]
commission now this designated broker
[80]
this one person can be lunch one person
[85]
shop so this could just be their own
[87]
real estate brokerage firm or they can
[90]
take on sales persons and associate
[93]
brokers alright so they're either one
[96]
person or they can take on a supervisory
[100]
role of let's say sales persons and
[103]
associate brokers now I do want to
[105]
clarify for those that work in states
[109]
where there's only one license many
[113]
states have two licenses they'll have
[115]
the salespersons license and then one
[118]
level higher is what's called an
[120]
associate brokers license other states
[123]
like Colorado they only have one license
[125]
and that is a broker's license either
[127]
way there's only one designated broker
[130]
and then anybody that works under
[133]
the designated broker is a salesperson
[135]
or Associate Broker the point is is this
[137]
one person supervises the activities of
[140]
all the other licensees below them now
[145]
the designated broker keep this in mind
[148]
does not have to be the owner of the
[151]
company so a non licensed person or
[154]
corporation can own the real estate
[156]
company but they have to hire a broker
[159]
to fill that role as the designated
[162]
broker all right so this is typically
[165]
how it's set up now understand there are
[168]
companies out there that have hundreds
[170]
thousands of sales associates working
[173]
under one designated broker all right so
[175]
that's a concept that you have to know
[177]
the other thing you have to know is this
[179]
real estate firm or the designated
[182]
broker can be managing other entities as
[185]
well and so it's not uncommon in today's
[187]
real estate world where real estate
[189]
companies have what we call ancillary
[192]
revenue streams so they might have title
[195]
companies or abstract companies that
[197]
they own they might have a mortgage
[199]
company that they own or they have a
[201]
business relationship with it could be
[204]
inspection companies these are all
[206]
service type related industries that a
[210]
company can either own under their
[212]
umbrella or that they have financial
[216]
relationships with and we are going to
[218]
discuss that financial relationship in a
[221]
different video because it is a concept
[223]
that you do need to know for your exam
[227]
as well as a practitioner in this
[229]
business alright so the next thing I
[231]
want to talk about here is the
[233]
relationship specifically between let's
[237]
say a salesperson and the designated
[239]
broker or an Associate Broker and the
[241]
designated broker
[242]
there is there's some things that you
[244]
need to know first of all what's their
[247]
employment status all right so we might
[250]
have a I'm going to do this over here
[252]
the difference between an employee and
[257]
what we call an independent contractor
[262]
now in
[264]
every state all 50 states real estate
[269]
professionals are considered an
[271]
independent contractor now I would say
[274]
there's there's probably 1% of the
[277]
licensed agents that are out there that
[280]
are actually employees of the broker the
[284]
my experience with that has been in new
[286]
construction some brokers that are also
[289]
a new construction company they will
[292]
have sales associates that are required
[294]
to be licensed and they are actual
[296]
employees but that is very very rare
[299]
all right so most real estate agents are
[302]
independent contractors the down line
[305]
here all right so what's the difference
[307]
here's what you need to know number one
[308]
employees receive salaries or pay and
[313]
that could be monthly it can be every
[316]
two weeks weekly whatever the case may
[317]
be but the employer pays the employee a
[321]
salary independent contractors they
[324]
collect what's called a commission a
[326]
commission the second thing is the
[331]
employer is paying the social security
[336]
tax the income tax the unemployment tax
[340]
and so on and so forth for their
[344]
employee so an independent contractor
[349]
they pay all these taxes they are
[352]
responsible for paying those taxes that
[355]
the employer normally would the next one
[358]
is the employer can require an employee
[361]
to work certain hours all right they can
[365]
determine their employees schedules and
[369]
on the independent contractor side the
[372]
broker cannot set hours they can't set
[377]
any kind of work hours or mandate any
[379]
kind of hours they can't do that all
[382]
right
[382]
the next major one is they can require
[385]
training certain types of training over
[388]
here the agent or the independent
[391]
contractor is responsible for any kind
[394]
of training now understand the brokerage
[397]
firm
[397]
might have their in-house training
[400]
program but independent contractors
[402]
cannot be required to attend some or all
[406]
that's why many brokers will incentivize
[408]
an agent to come to training but on the
[412]
other hand think about it you're getting
[413]
in the business because this is your own
[415]
business and you want to do well so
[418]
typically it's not a big issue - for the
[420]
broker to get the the agents to come to
[422]
training and then the last thing I want
[424]
to talk about because this for whatever
[425]
reason seems to be becoming more and
[427]
more popular in today's world dress code
[429]
and that is they can require certain
[432]
dress codes as an employer employee
[434]
relationship over here no dress code no
[438]
dress code whatsoever that's the other
[442]
part of it the biggest one though is
[445]
setting hours paying taxes and how they
[448]
receive compensation those are the
[450]
biggest differences between an
[452]
independent contractor which the
[455]
downline of a designated broker that's
[457]
what they are the salespeople and the
[459]
associate brokers all right all right so
[461]
the next thing I want to talk about is
[463]
the relationship here between the
[466]
salesperson or the Associate Broker and
[468]
the designated broker there's a legal
[470]
relationship that we have to know for
[472]
our real estate licensing exam and then
[475]
also it will clarify why we do certain
[478]
things in the industry the way that we
[480]
do moving forward all right so the
[482]
relationship here so the relationship
[485]
between these two parties is what we
[487]
call a general agency general agency now
[495]
I did a video on agency relationships
[499]
not too long ago I'm gonna leave a link
[501]
right up here in the upper right-hand
[503]
corner and if you want to go check out
[505]
that video after this one is done I
[506]
encourage you to do and I actually
[508]
explain all how this is but the reason
[511]
it's a general agency is because the
[513]
salesperson or the Associate Broker can
[515]
literally speak on behalf of their
[518]
designated broker and they can bind
[520]
their designated broker to the decisions
[524]
that they make let me give you an
[525]
example the listing contract the listing
[529]
contract is the contract that we use to
[531]
put a
[531]
a home up for sale it is for the you
[537]
have to understand that the listing
[538]
contract is between the seller and the
[541]
designated broker even though the
[543]
designated broker didn't go on the
[545]
listing appointment they've never met
[547]
the seller
[548]
it's the listing agent it's the
[550]
salesperson or the Associate Broker that
[553]
is the one that went out and procured
[555]
that seller and it's the salesperson or
[558]
the Associate Broker that's going to
[560]
actually sign the listing contract so
[563]
they are signing the listing contract on
[565]
behalf of the designated broker that's
[568]
why it's a general agency relationship
[572]
and you have to know that for your real
[573]
estate licensing exam one other thing I
[576]
want to point out I gave you the
[578]
difference between employee and an
[580]
independent contractor it is very
[583]
important that that in that real estate
[586]
licensees sign what's called an
[589]
independent contractor agreement it is a
[596]
contract between the designated broker
[599]
and the the Associate Broker the
[604]
salesperson that basically establishes
[606]
in case there's audits and those type of
[608]
things that in fact the agent is an
[611]
independent contractor in not an
[613]
employee and it'll have the terms and
[616]
conditions and everything laid out based
[618]
on specific state laws and regulations
[621]
but it's very important that once you
[623]
end up passing your licensing exam and
[625]
you go to work for your your first
[626]
broker that you sign an independent
[629]
contractors agreement so we don't
[630]
jeopardize that whole relationship here
[634]
between you and your broker so very
[637]
important that you do that now don't
[640]
forget if you don't understand the
[641]
general agency concept here that I
[644]
discuss that relationship between the
[646]
designated broker and the licensee make
[649]
sure you check out this video right here
[651]
it's going to help you better understand
[653]
that
[654]
nation ship hey do me a favor if you
[656]
have not subscribed to our channel
[658]
please do so click the little circle to
[660]
my left I would totally appreciate that
[662]
we'll see you in the next video
Most Recent Videos:
You can go back to the homepage right here: Homepage