The History Of Real Estate Profession In The United States
- By Tin Lam
- Published 12/16/2011
- Real Estate
- Unrated
Everyone knows that you need to have a real estate license to sell property in the United States unless you are selling your own home or you have a written agreement that someone has asked you to assist them in selling their own home. We also know that there are real estate licenses for an agent and a separate real estate license for a broker. In the United States the individual states control the requirements, fees and exams for getting a real estate license. OK but how did all this come about? What is the history of the profession in the United States?
The term "real estate" is a legal term in the United States referring to property to be bought, sold or rented. The real estate profession is governed by a body of regulations and legal codes which in the United States are determined by each individual state. Each individual state is responsible for setting the requirements and offering the exam to acquire a real estate license. All of the terms and principles come from English common law and have been institutionalized in the United States.
Here real estate agents or brokers with a real estate license in the state they are working in, assist sellers in marketing and selling their property for the highest price. Recently the profession of "buyer's agent" has surfaced and the agent, with a real estate license, assists the buyer in finding the property they want and buying it at the lowest possible price. A real estate agent is required to disclose if they are representing the seller or the buyer or both. In all 50 states it is illegal to act as a real estate agent or broker without a real estate lice
nse. However a homeowner or other property owner may buy and sell property on their own without a real estate license. In several states lawyers are allowed to act as agents without a real estate license.
In 1908 The National Association of Real Estate Boards was formed in Chicago. There were 120 founding members with real estate licenses and 19 boards and 1 state association. The mission of the NAREB at that time was "to unite the real estate men of America for the purpose of effectively exerting a combined influence upon matters affecting real estate interests." In 1913 they adopted the Code of Ethics and the term "realtor" came into being that same year. A "realtor" was and still is an agent or broker with a real estate license that belongs to NAR and adheres to the code of ethics. The terms "Realtor" and "Realtors" are patented by the association. In 1972 the association changed its name to The National Association of Realtors. Today the association has over 1.2 million members who hold a real estate license.
The National Association of Real Estate Boards created the Multiple Listings Service in the 1960's so that agents and brokers with a real estate license could share with each other all the properties that they have listed for sale. This allowed all agents and brokers to sell each other's listings more easily. Now every agent with a real estate license could look to the MLS to help his client find the property they wish to buy. Also in the 1960's the Federal Housing Association FHA came into existence and later in that decade discrimination in housing was outlawed. After this many of the familiar real estate companies were formed to allow agents with a real estate license to work together in larger groups and share profits.
The term "real estate" is a legal term in the United States referring to property to be bought, sold or rented. The real estate profession is governed by a body of regulations and legal codes which in the United States are determined by each individual state. Each individual state is responsible for setting the requirements and offering the exam to acquire a real estate license. All of the terms and principles come from English common law and have been institutionalized in the United States.
Here real estate agents or brokers with a real estate license in the state they are working in, assist sellers in marketing and selling their property for the highest price. Recently the profession of "buyer's agent" has surfaced and the agent, with a real estate license, assists the buyer in finding the property they want and buying it at the lowest possible price. A real estate agent is required to disclose if they are representing the seller or the buyer or both. In all 50 states it is illegal to act as a real estate agent or broker without a real estate lice
In 1908 The National Association of Real Estate Boards was formed in Chicago. There were 120 founding members with real estate licenses and 19 boards and 1 state association. The mission of the NAREB at that time was "to unite the real estate men of America for the purpose of effectively exerting a combined influence upon matters affecting real estate interests." In 1913 they adopted the Code of Ethics and the term "realtor" came into being that same year. A "realtor" was and still is an agent or broker with a real estate license that belongs to NAR and adheres to the code of ethics. The terms "Realtor" and "Realtors" are patented by the association. In 1972 the association changed its name to The National Association of Realtors. Today the association has over 1.2 million members who hold a real estate license.
The National Association of Real Estate Boards created the Multiple Listings Service in the 1960's so that agents and brokers with a real estate license could share with each other all the properties that they have listed for sale. This allowed all agents and brokers to sell each other's listings more easily. Now every agent with a real estate license could look to the MLS to help his client find the property they wish to buy. Also in the 1960's the Federal Housing Association FHA came into existence and later in that decade discrimination in housing was outlawed. After this many of the familiar real estate companies were formed to allow agents with a real estate license to work together in larger groups and share profits.
Tin Lam
Thinking about getting your license in the real estate field? Get the low down on the best real estate license courses now in our guide to real estate license classes online.
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