12-Hour Managing Broker ... - McKissock Learning

12-Hour Managing Broker Correspondence Renewal Package with NAR Ethics

McKissock Sponsor Code: CE10600460/CE10500067

License Renewal Information

Brokers are required to complete 12 hours of CE every year from July 1st to June 30th for a total of 36 hours at time of renewal. Licensees who hold a managing broker designation, including managing broker eligibility, are required to complete at least 4 of the 12 hours in an approved managing broker course. Brokers initially licensed on or after June 30, 2014, are required to complete 30 hours of approved postlicensing education during the first 2 years after the license was issued. Brokers are not required to obtain continuing education until the third continuing education year after the broker is initially licensed. Please note the courses within are not postlicensing education.

How to complete your continuing education

Read and study the enclosed courses. When you have finished studying the enclosed courses, purchase the 12-Hour Managing Broker Correspondence Renewal Package with NAR Ethics by clicking here. After your purchase the courses will be added to your dashboard. Click "Take Test" and follow the instructions to access the final exam. When the final exam is completed, you will be able to print your certificate. You'll need to repeat this process for each course in the package to get credit for each course.

Click here to purchase the 12-Hour Managing Broker Correspondence Renewal Package with NAR Ethics

i

McKissock Sponsor Code: CE10600460/CE10500067

Table of Contents

Managing a Real Estate Brokerage [4 contact hours]................................................................ Page 1 This course identifies the responsibilities of the managing broker regarding forming the real estate company, recruiting agents, and complying with Indiana license law in the operation of the company. The course begins with determining the legal organization of the business and identifying licensing and responsibilities of the company and the managing broker. The next chapter of the course focuses on launching the business from strategic planning and the logistics of operating a business. The material then concentrates on agency and responsibilities of the managing broker in managing licensees who represent buyer and sellers. The final section of the course covers recruiting licensees and additional license law requirements.

What Everyone Should Know About Their Credit History [2 contact hours]........................... Page 29 Can you imagine paying cash for all your purchases? Saving up to purchase property with 100% down? Up until relatively recently, that was the way purchasing occurred. Credit was not handed out or even solicited, and purchasing property came after years of diligent saving. Today, most consumer goods, and property is purchased with mortgage credit. It is estimated that 80% of consumer goods, and 70% of all residential properties are purchased with credit. Even with the prevalence of credit, recent events and changes in credit availability have led to many potential property buyers being unable to afford the property they desire. Being able to counsel people on improving their financial standing can not only improve your service to current clients, it can also be used as a marketing tool to attract and help new clients!

Going Green: Elements of an Eco-friendly Home [3 contact hours]....................................... Page 47 In recent years, green building has become more than just a trend. Nearly 40% of home buyers consider energy efficient features to be "very important". This is not simply because home buyers wish to reduce their environmental footprint. The cost of sustainable materials and products is low, making green building one of the most cost-effective types of construction. Therefore, knowledge of the green building market segment will allow you a competitive advantage in the real estate industry.

NAR: May the Code Be With You [3 contact hours]................................................................ Page 71 This continuing education course addresses the specifics of the National Association of REALTORS? Code of Ethics and ethical practices and decision making for real estate professionals. Additionally, this course may potentially be approvable for REALTORS? who wish to fulfill Code of Ethics requirement from the National Association of REALTORS?. Check with your local REALTORS? association.

NAR Ethics Cycle 6 deadline is extended to 12/31/2021. This course meets the REALTORS? Code of Ethics Training Requirement and will be accepted by associations within MI, IN and WI, per NAR policy. McKissock is partnered with Southeastern Border Association of Realtors (MI).

Click here to purchase the 12-Hour Managing Broker Correspondence Renewal Package with NAR Ethics

ii

MANAGING A REAL ESTATE BROKERAGE

CHAPTER 1: REAL ESTATE BROKERAGE OWNERSHIP AND INDIANA LICENSE LAW

Course Overview

Course Description

The following course identifies a managing broker's responsibilities for running a successful real estate business. These managerial responsibilities include understanding the available legal structures for a real estate business, the recruitment of company agents, and the importance of remaining compliant with Indiana license law during the operation of the business. The course offers guidance that helps a managing broker decide which legal business structure would be most beneficial in managing a real estate brokerage based upon an anticipated `business model.' The course work in "Managing a Real Estate Brokerage" demonstrates the licensing responsibilities of a real estate company (as a whole) and those licensing responsibilities that rest squarely on the shoulders of the managing broker. The course then focuses on the steps required to launch the business, to implement strategic plans, and to use and optimize the logistics of a profitable business.

Course Learning Objectives

Upon completion of the course, the participant will be able to:

Establish a plan for launching the real estate company and understand the related license law requirements

Understand the duties and responsibilities of the managing broker, including succession planning in the event of the managing broker's death

Determine processes for cash management, office policies, and budgeting

Understand the difference between an independent contractor and an employee along with responsibilities for hiring, training, and supervising

Develop plans for document management and for protecting private information

Identify types of agency along with the role of the managing broker and licensees in complying with regulations

Licensing Requirements of the Brokerage

One of the first issues to consider when opening a real estate brokerage is to determine how to legally organize the company. Should you choose a sole proprietorship? Or organize as a Partnership, a Limited Liability Company, or a Corporation?

Before deciding on how to structure your business, you are strongly encouraged to consult with an attorney and an accountant to seek the legal and financial advice that will help define the future success of your business.

The real estate industry is complex, and there is no way to avoid the rapidly changing, underlying marketplace and governmental forces. It is therefore recommended that as you begin to grow your business, you also choose to establish a professional relationship with an attorney and an accountant to ensure that you reduce your exposure to violations, fines, lawsuits, and unnecessary taxes.

Indiana statutes require that a real estate company be directed, supervised, and managed by an individual licensed broker. If the business is structured as:

A Sole Proprietorship - The sole proprietor will be the acting managing broker.

A Partnership, a Limited Liability Company, or a Corporation - The managing broker must be selected, designated, and then reported to the Indiana Real Estate Commission (IREC).

Each type of company organization must follow specific legal guidelines and bookkeeping standards. Some differences are noted below:

For Partnerships:

Only individuals who are licensed brokers can be partners

Have at least one partner who is a:

Resident of Indiana

Managing broker

(1) Each employee of the Partnership who acts as a broker must be licensed.

MANAGING A REAL ESTATE BROKERAGE

1

(2) Submit the license fee established by the commission. An application is available from the Indiana Professional Licensing Agency (IPLA). The Fee Schedule is as follows: .

For Corporations

Have a licensed broker:

Residing in Indiana who is either an officer of the corporation or, if no officer resides in Indiana, the highest ranking corporate employee in Indiana with authority to bind the corporation in real estate transactions

Who is a managing broker

Each employee of the corporation who acts as a broker must be licensed

Each employee of the corporation who acts as a broker must submit the license fee established by the commission, an application setting forth their name and residence address, a copy of the certificate of incorporation, and a certificate of good standing of the corporation issued by the secretary of state

Member-Managed Limited Liability Company

Have as members only individuals who are licensed brokers

Have at least one (1) member who is a:

Resident of Indiana

Managing broker

Manager-Managed Limited Liability Company

Have a licensed broker:

Residing in Indiana who is either a manager of the company or, if no manager resides in Indiana, the highest ranking company officer or employee in Indiana with authority to bind the company in real estate transactions

Who is a managing broker

All employees of the limited liability company who are acting as managing brokers must be licensed

All employees of the limited liability company who act as brokers must submit the license fee established by the IREC and an application from the IPLA:

If a member-managed company, the name and residence address of each member

If a manager-managed company, the name and residence address of each manager, or of each officer if the company has officers

Licenses granted to partnerships, corporations, and limited liability companies are effective on the same terms as licenses granted to individual brokers, except the expiration or revocation of the license of:

Any partner in a partnership or all individuals in a corporation

A member in a member-managed limited liability company or all individuals in a manager-managed limited liability company

Once an applicant complies with licensing requirements, the IREC grants the license and issues an identification card certifying the validity of the license and the expiration date.

For a minimum of two years after its date of issuance, a real estate license must be assigned to a managing broker. The new license issued must be displayed at a broker's place of business. An individual who applies for a broker's license after June 30th, 2014 must, during the first two years after the license is issued, take and pass at least 30 hours of post-licensing education focused on the practical matters of real estate transactions.

Unless the license is renewed, a broker license expires for individuals on the date specified by the IREC--three (3) years after the initial issue date.

An applicant up for renewal must submit an application to the IPLA and pay the renewal fee on or before the renewal date specified by the IREC (pla.). If the holder of a license does not renew the license by the date specified, the license expires and becomes invalid without the IREC taking any action.

If the license is not renewed on or before the date specified by the licensing agency, the license may be reinstated by the commission no later than three years after the expiration of the license. The applicant must also submit the required IPLA documentation and pay the required fees.

2

MANAGING A REAL ESTATE BROKERAGE

Identifying the Managing Broker

After a determination is made regarding how your real estate company will be structured and all applicable requirements mandated by federal and state law have been met, the managing broker should be selected and IREC should be notified as to who will be managing the brokerage. Residency Requirements for Managing Brokers Any individual who is a managing broker or has been designated by a partnership, corporation, or a limited liability company must be a resident of Indiana. A nonresident managing broker must be:

1. An individual broker 2. An individual designated by a partnership, corporation, or limited liability company if all the licensees affiliated with the broker, partnership,

corporation, or limited liability company are not residents of Indiana

Licensing Requirements for Managing Brokers

To be a managing broker one must meet the following eligibility requirements: 1. One must hold a broker license for at least 2 years preceding the date of application 2. One must complete and pass 24 hours of broker management courses 3. One must submit to the commission proof that the required coursework has been completed

If an individual was issued a broker license after July 1, 2014 (but is still within the first two years after the license was issued) then the individual must take and pass 30 hours of IREC-approved continuing education as provided for in Section 3 of this rule. Failure to complete the 30 hours of IREC-approved continuing education will leave the licensee potentially subject to action by the IREC. Completion of 30 hours of continuing education satisfies any other typical continuing education requirements that would have been required for a two-year period. The "continuing education year" during which the broker is initially licensed is not used when calculating the two continuing education year requirements. A licensee is not required to complete continuing education until they reach the third year after the year their license was initially issued. An individual with a salesperson's license who then earns a broker's license on or after July 1st, 2014 may not perform an act that requires a managing broker's license unless this individual has:

1. Completed at least twenty-four hours of the education for managing brokers 2. Met the requirements to be a licensed broker 3. Attested to the IREC that they have completed the required 24 hours of education

Scenario 1 - Don't Lose Sight of Your Goals

Sara has decided that she wants to leave the traditionally managed real estate company that she has been affiliated with for the last fifteen years because it has always been her professional goal to start her own real estate company. Sara currently holds a broker-associate license and knows that she will need additional education before she can submit her application and fees to the IREC.

After seeking both legal and accounting advice, Sara decides that her new company will be structured as a sole proprietorship. She files the appropriate forms with the Secretary of State of Indiana and the IRS. Sara becomes excited at the prospect of her future and soon begins to look for an office location. She begins to negotiate a new lease for the premises. The entire experience is arduous and takes several months to complete.

Sara then becomes preoccupied with creating a name for her new company, designing its logo, and meeting with franchise representatives to begin investigating potential opportunities. She orders furnishings and office equipment. Sara interviews candidates for an administrative assistant and begins to recruit sales agents. She spends time training these new hires.

However, Sara is also a wife and a mother who is now finding it increasingly difficult to balance her home life and work life.

Soon after, she receives a notice from the IREC regarding her incomplete managing broker license training. Sara suddenly realizes that she has been so sidetracked setting up the new real estate company that she failed to plan the completion of her required training.

MANAGING A REAL ESTATE BROKERAGE

3

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download