Is your real estate agent licensed?

If you are going to be buying or selling a home or other real estate soon, you may be meeting with prospective real estate agents.  Because of regulatory changes, you should ask your proposed real estate agent a new question:  Are you still licensed?

In 2009, the state revamped how real estate agents are categorized.  Before, we had salespersons, brokers and managing brokers.  Now the state has eliminated the salesperson category.  To be a licensed real estate agent, you must be a broker now.  Moreover, if you are running your own office, you must be a managing broker. 

The state also increased the minimal education and continuing education requirements.  For example, an entry-level real estate salesperson must now take 120 hours of classes, instead of 45. 

The deadline is looming near — April 30, 2012 — and as of the end of March, only 35% of salespersons have completed the educational requirements and transitioned to a broker’s license.  Moreover, only 26% of brokers have complied with the new requirements.  With only a few weeks to go, a lot of real estate agents have a lot of catching up to do.  If they miss the deadline, they have to start from scratch, even if they have been in the real estate profession for years.

So if you’re in the market for a real estate agent, make sure you confirm that he or she is licensed!