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Bay State REALTOR September-October 2008 |
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| President's Message: Are You Keeping Pace? |
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By Susan M. Renfrew
The rate of change in our lives is intensifying and nowhere more so than in the area of technology.
Who would have believed that over the course of 20 or so years we would have made more strides in technology than were made over the past 100 years? This rate of change is unlikely to subside anytime soon, so we need to ask ourselves, particularly in our business lives-- are we keeping pace?
Technological advancements specific to the real estate industry are fast moving to say the least. We’re just getting used to the last hand-held device when a new, more advanced version emerges. While utilizing technology may never change the fact that our business depends on building relationships, it can definitely help us maximize our opportunities to do so. Technology is available to enhance our websites, manage and more effectively market our listings, keep us connected to our clients and customers, streamline our business systems and processes, and more. We may ask ourselves whether technology truly brings us more success, but the bottom line is that consumers are using technology. We need to understand how and why they use it - and how to take full advantage of the technological tools that are available to us.
In this issue’s feature on page 14, we broach the hot technology topic of today: “social networking.” We’ve heard the term but do we understand that this is an intricate communication system that will allow us to expand our reach to customers and clients like never before? Whether we think this form of communication is a better avenue than vehicles of the past, we cannot deny the fervor with which today’s culture embraces blogging, Internet-based networking such as Facebook, and the like. So what does social networking mean and how can we incorporate it in our industry? The feature analyzes the concept and helps you take steps to begin using the communication system in your daily business.
Your Association has jumped on board and already begun to embrace the new wave of communication. MAR has recently launched a group for members on Facebook and LinkedIn, providing opportunities to network and share ideas online with fellow members. We are working in cooperation with Boston.com to institute a Realtor® blog where Realtors® can share tips and insight to consumers on the real estate market. Our e-communication outreach has expanded in recent months to offer regular webinars as a way to inform and educate members on such topics as short sales and e-transaction management. MAR has launched BayStateRealtor.com, an online magazine that is updated in real time with informative articles and tips that will help you in your business practices. Additionally, the Association formed an advisory group in 2008 to explore the possibilities of offering online CE courses to the membership. The group is the midst of researching all aspects of the prospect in the hope of sharing the information with the Board of Directors later this year.
Through these technological initiatives, the Massachusetts Association of Realtors® is working to communicate more efficiently and effectively to its members, to enhance your participation in the organization and appreciation for the advantages of membership. We recognize that technology is moving swiftly and we are working to stay connected and to keep pace with our membership and consumers for the benefit of the real estate industry. Once again, I ask you – Are You Keeping Pace? |
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Social Networking: Sharpen Your Basic Skills to Build Success |
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By Michael Cutlip
As REALTORS®, staying in touch with clients throughout their home buying and selling life cycle is critical to repeat business and building your network of referrals. But why do past clients refer friends and family to you? A hint: it's not the delicious fruit basket you sent after closing the sale, nor is it the free calendar you send every Christmas. They refer others to you because of your reputation as an expert in your field.
The Internet has removed the geographic constraint that led many buyers and sellers to the nearest agent. Now they use the Web to find the best agent, which will likely be the one with a history of insightful opinion mixed with market facts. This expertise, and the positive reputation that comes from it, is your most valuable asset in the social networking world.
Your Menu of Online Options
While there are offline options for maintaining contacts and building your reputation, they cannot compare to the online options: email, message boards, blogs, instant messaging, social network websites, etc. These tools are much more valuable than their traditional counterparts because communications are stored and searchable online forever; you can easily see your social graph (your network of connections) to leverage your social capital (the value of that network), and you can build a quantifiable reputation.
When thinking about the power of storing conversations online, consider this simple example. A potential client asks your advice on why now is a good time to buy. You provide a concise yet thorough answer backed up by research you recently read in a MAR monthly housing data release. The prospect is convinced, and they become your client on the spot.... the problem with this scenario is that this conversation only took place between two people. Once the conversation ends, and memories fade, no one else gets to benefit from your expertise. However, if this conversation took place at an online message board or blog it could be found by anyone in the world with a similar question. The exceptional answer you provided could convince others of your expertise, giving you additional opportunities for building relationships having done little more than make your expertise available online.
Opportunities for Messaging
There are many online message boards that provide opportunities like these. ActiveRain.com, which provides free blogs and social networking for the real estate community, hosts a Q&A section where consumers (and even other agents) can post questions. Any member of ActiveRain can answer the questions and gain two advantages: a valuable contact with whomever submitted the question, as well as participation points.
ActiveRain uses a point system to identify the most active members of their website. Posting or commenting to a blog gives you points. Inviting new members gives you points. Even fleshing out your online profile gives you points. With online tools it’s very easy to see who the most active members of a community are, and these members will have a far-reaching reputation built on their consistent involvement and contributions.
Another site with a very active community is Trulia’s Voices - trulia.com/voices. Lured by Trulia’s home searches, buyers and sellers post hundreds of questions a day. Much like ActiveRain’s Q&A section, agents can answer these questions which not only build connections to potential clients but also contribute toward their reputation in the community. Trulia also uses a points system to track their most active members who are listed in their Top Voices section. In addition, all answers an agent provides on Voices are also included in their profile, giving a consumer an instant history of that agent’s expertise. The more numerous and helpful the answers, the more valuable that agent looks to the consumer.
Blogging Anyone?
One of the easiest ways to get your knowledge online is with a blog, which is a simple tool to create a newsletter-style website; however, blogs are much easier to start than they are to maintain. A recent survey from Carlson Analytics found roughly 70% of new blogs are abandoned in the first month. One strategy to avoid this fate is to start with very defined goals and follow them to the letter. What is your blog about? Who will write the posts and how often? Will you have guest writers, etc.? Most blogs are free and have a few key features, such as: the ease of posting new content; a variety of plug-ins for adding audio; video and other media; a system for submitting visitor comments; and the ability to automatically create a Really Simple Syndication (RSS) feed. Using an RSS reader you can “subscribe” to a website and be notified when new information is posted so you can quickly and easily find what's relevant to you. (You can read more about RSS feeds in the July 2008 Technology Tuesday Newsletter on BayStateRealtor.com.)
A blog can cover any topic imaginable, but the best blogs are those that maintain a specific focus with timely, relevant information posted on a regular basis. Blogs are written in a conversational style as opposed to websites, which tend to be more of a marketing vehicle. Successful blogs highlight the writer's personality while providing information; then engage readers to post their own opinion in the comment areas. As visitors contribute comments, blogs give you, the agent and author, a chance to further connect with that consumer on what interests them. If that consumer values your content they may “subscribe” to your blog with RSS, giving you an instant way to deliver them news without the downsides of e-mail.
The Power of Social Websites
Social networking websites like MySpace, Facebook, and LinkedIn are probably the most visible products of the Web 2.0 revolution. The power of these sites, besides finding long-lost friends from high school, lies in there ability to expose your social graph and leverage those extended connections. These connections are made through “friend requests” where you ask someone to approve you into their networks and, once connected, you can access more information about them, view and connect with their friends and more, depending on which social network site you’re using.
Next comes leveraging those connections. Think of it this way… you have a question about staging a home. You know Sally, and Sally knows Tom who is an expert on the subject. You can see in Tom’s profile that he’s an expert and contact him directly with your question, possibly making a new connection in the process. Another example is the classic referral. You are a Realtor® and your friend Sally knows John is looking to sell his home. Since you’re already friends with Sally, John is instantly more likely to trust you as his agent, so he contacts you for more information. This is an example of leveraging your social capital: the ability to turn your social graph (your friends, their friends, and beyond) into tangible benefits. All social network sites do this, but in different ways.
Which Site is Which?
• MySpace
MySpace is the largest social network website in the US. The site is known for an anything-goes approach to profiles and friend relationships; personal pages have almost unlimited branding options and there are no restrictions on friendship requests. Although MySpace can be somewhat visually overwhelming, it is still a valuable Internet property for connecting to clients and posting your photos, video, audio and more.
• Facebook
Now the largest social network site in the world, Facebook has seen explosive growth over the past few years since the introduction of their “apps.” These apps (applications) allow you to add a variety of content like RSS feeds, videos and photos into your Facebook profile as well as play games, send reminders, and even list items for sale.
Facebook profiles are more standardized than MySpace, and personal information is visible only to approved friends. Facebook also has a business tool called “Pages” that allows companies to create a presence on Facebook, track visits, post videos and other media, as well as send special messages to the “fans” of their page.
• LinkedIn
LinkedIn is about getting business done. The average age is far higher than most social networks and the median income is above $100K. Connections are highly guarded, and highly regarded, on LinkedIn because of the community’s culture and the fact you can only send friend requests to people within 3 degrees of separation. Outside that, you need an “Introduction” or you may connect through LinkedIn’s own message tool called InMail.
LinkedIn also tracks “Recommendations” about members and includes a Q&A section. Similar to the message boards discussed previously, LinkedIn’s Q&A allows you to highlight your expertise in a variety of topics while building your reputation and potential connections/referrals. On its Q&A homepage, LinkedIn features a weekly “Top Experts” list of members who have answered the most questions correctly.
The dynamic nature of social networks ensures that no one site will dominate forever, but online social networks are here to stay. As professional networkers, Realtors® must be aware of where their client base interacts online and meet them there. If your clients move to a new site, you must move with them to maintain those contacts. Take that with a grain of salt, though, because the quality of interaction on a few choice online communities will be more valuable for your social capital than having a presence on many different sites. But wherever social networking takes you online, you must stay engaged with your network, prove your worth, and build a reputation as an expert in the community in order to thrive.
Mike Cutlip is IT Director of for the Massachusetts Association of REALTORS®.
What’s the best tool to use?
I would say it is both Facebook and LinkedIn. They are both valuable tools but aim at different audiences and offer different features.
Gerry Bourgeois, Towne & Country Realtors®, Leominster
How do you prospect?
I post frequently to online newsgroups and respond to posts from others often using a screen name that points out I am an agent and happy to help.
Lisa Johnson, Coldwell Banker, Haverhill
What advice would you give REALTORS® new to social networking?
You don’t have to learn it all or do it all in one day. Choose one site, whether it’s you own personal blog or a large site like TruliaVoices, ActiveRain, or Facebook, and write about topics that interest and excite you.
Deb Agliano, ERA Andrew Realty, Medford |
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| Dos & Don'ts of Web Video For Real Estate |
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By Benjamin Wayne, CEO of Fliqz
Virtual walkthroughs and video tours immerse the buyer in the experience of the property, and result in shorter sales cycles, higher conversion rates, and better qualified prospects. In fact, real estate sites using video report buyers exposed to video are up to four times more likely to act than those presented with words and images alone.
There are a few dos and don’ts to consider:
DO shoot with lots of light
Daylight is best, but if you have to shoot in artificial light, make sure it’s as brightly lit as possible.
DON’T zoom or pan
Move very slowly and keep the camera as still as possible.
DO fill the frame
Try to fill the entire frame with the subject.
DON’T hide your video
Make sure your video is clearly labeled and placed on your home page.
DO keep it short
Videos with shorter than two minutes tend to have much higher viewership.
DON’T rely on YouTube
You are driving traffic away from your site, and to a place where Internet users may lose sight of your video as they get distracted by the “clip of the day”.
DO take as few steps as possible when implementing a solution
Take the time to research video service providers to ensure that they have everything it takes to roll out a robust and easy to use solution; uploading, encoding, storage, and high quality playback in a plug and play manner.
About Fliqz
Fliqz provides the tools that power video, enabling sites of all sizes to increase traffic, interactivity, and revenue. Fliqz can be found online at www.fliqz.com
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| Website Contest Winners 2008 |
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The Massachusetts Association of REALTORS® Website Design Contest for 2008 saw 75 competitive entries from across the state in both the office and individual agent categories. Three winners were chosen from each category based on criteria ranging from the quality and originality of content to the visual design, interactivity, and use of multimedia in the website.
Judging this year’s contest was the distinguished pair of Michael Russer, aka “Mr. Internet”, a nationally renowned speaker and technology educator, and David Friedman, the CEO of the successful and pioneering web design firm Boston Logic, Inc. The winners will be recognized at the 2008 MAR Professional Awards and Recognition Dinner on September 22nd during the 2008 MAR Conference and Tradeshow at the DCU Center in Worcester.
Office Website Category
Winner
BowesRE.com - BOWES GMAC Real Estate, Arlington
With top-notch branding and design, excellent use of integrated video, plentiful buyer and seller resources and a comprehensive, user-friendly property search, BowesRE.com is this year’s top site in the office website category. Broker-owner Bob Bowes says of the site, “Prior to building this website we had encountered a problem...our own clients would search for properties on our competitors’ websites. Our objective was to build a first-rate real estate website which: (1) used state-of-the-art property search and mapping technology; (2) would be used as a resource by both buyers and sellers for a multitude of information before, during and after their real estate transaction; while (3) maintaining our user-friendly, neighborhood look and feel.”
First Runner-Up
SandPiperRealty.com - Sandpiper Realty, Inc., Edgartown
A cleanly-designed site with a wealth of local information helps SandPiperRealty.com sell not only their listings, but the entire island of Martha’s Vineyard. Well-produced video tours of the island’s communities provide a vivid background for the homes on the island.
Second Runner-Up
PineAcresRealty.com - Pine Acres Realty, Chatham
Easy navigation, multiple property search options with Google map integration, and a prominent blog for distributing content with RSS, edges PineAcresRealty.com into the top three office websites in MAR’s contest. Broker-owner Lori Smith points out that “As a smaller, independent office, the web creates a more level playing field. We are able to compete on a larger scale.”
Individual Agent Website Category
Winner
DebontheWeb.com – Deb Agliano - ERA Andrew Realty, Medford
With free software from Wordpress, the popular blogging platform, some technical skills and a lot of elbow grease, Deb Agliano takes the top spot in our agent website category. Her homepage welcomes visitors with a video introduction to both her personal real estate philosophy and the important areas of her website. Leveraging new technologies to good effect, Deb maintains a quality blog with frequent posts on her listings, the market and local topics; she produces a podcast that can be listened to live before being archived on her site; and her website updates are available for distribution using RSS, a powerful Web 2.0 technology for sending information to clients and beyond. She also blends marketing savvy with technology skills using tie-ins like an online quiz titled, “Why Didn’t My House Sell?” presented with her podcast on the same topic.
First Runner-Up
JoeSchutt.com – Joe Schutt - Gibson Sotheby's International Realty, Boston
Using a combination of out-of-the box tools as well as custom content, JoeSchutt.com is a quality site. Joe gives some background on the creation process with, “Trying to stay within the Point 2 Agent template was difficult, but I like the features they offer. We used an outside host to get around that. We have content pages hosted at Blue Gravity and then framed into the P2A site. I get the features and functionality with the look and feel that I want.”
Second Runner-Up
BostonianLofts.com – Mara Tamaroff - Gibson Sotheby's International Realty, Boston
With laser-focus on the loft market, BostonianLofts.com clinches the third spot in the agent website category. Contest judge Mike Russer gave the site high marks for “targeted content” and a layout that’s “smart and consistent.” An extensive catalog of new loft developments in the Boston area separates her site from the competition, according to agent Mara Tamaroff. This unique aggregation of content contributes to the fact that over 75% of her business comes from her website.
The 2009 Website Contest is open for entries on January 1, 2009. Visit the “Technology for REALTORS®” section of marealtor.com for more information.
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| Legal Hotline: Internet Policies, Offers on Lender-Owned Property and Pet Deposits |
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By Stephen J. Ryan, Esq.
MAR General Counsel
Here are a few recent questions posed on the MAR Legal Hotline, which should provide some direction on how to deal with complex real estate issues.
Internet Brokerage Policies
Q. I have heard that a number of offices have adopted policies for Internet usage. Where can I get information on creating a policy and is there a sample I can review?
A. The National Association of REALTORS® has recently put together some excellent information for brokerages looking to create Internet policies for their offices. These policies help to establish guidelines for appropriate (and inappropriate use) of technology equipment. Included in this information is a sample policy and tips for creating effective policies regarding Internet usage. To review this information, go to http://www.realtor.org/letterlw.nsf/pages/rminternetpolicy
Offers on REOs
Q. I am working with a buyer and I have submitted a written offer to the listing broker on a lender-owned property. I have called the listing broker several times asking if the lender has accepted my client’s offer and he has said they are still looking at it and haven’t made a decision. My buyer is getting frustrated and wants an answer quickly. What can I tell him?
A. Lenders typically have a specific, internal process that they follow in reviewing and considering all offers. In addition, they may have certain forms such as counteroffer documents, purchase and sale agreements, addendums or other documents that they may require to be used. These and other requirements can sometimes add delays to the home sale process of lender-owned or real estate-owned (REO) property.
Conversely, there can be situations where some lenders may want an accelerated process for closing a transaction and buyers should be prepared to adjust to those issues as well. As always, buyers with legal questions or concerns in documents that are part of the home buying process-whether it is an REO property or not-should be advised to speak with an attorney.
It is also important to remember that the listing broker does have an obligation under both state regulation as well as the Realtor® Code of Ethics to present all offers. Specifically, state regulation 254 CMR 3.00(11)(d) says that all offers must be presented forthwith. This requirement, however, does not preclude the seller from instructing the broker to hold all offers until a certain point for presentation.
Pet Deposits
Q. My landlord wants to rent to a tenant who is extremely qualified with great references but has a large dog. The landlord has stated that, in addition to the security deposit and the first and last month’s rent, he would be happy to rent to this person if they would pay a “pet deposit” of $1,000 to allay any concerns about damage to the unit. Is this a problem?
A. Yes. Chapter 186: Section 15B of the Massachusetts General laws precludes a landlord from requiring a tenant to pay any amounts in excess of first month’s rent, last month’s rent, a security deposit equal to one month’s rent and a change of lock fee. However well-intentioned, requiring a tenant to pay a pet deposit fee would be inconsistent with Massachusetts law.
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| Legal Realtor®: Don't Become a Target for a Chapter 93A Claim |
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By Robert S. Kutner, Esq.
For nearly 40 years Massachusetts real estate agents have been plagued with lawsuits alleging violation of the Massachusetts Consumer Protection Act, commonly known as “Chapter 93A.” Realtors® who pride themselves on honesty and integrity have been forced to defend against such claims. Having represented real estate agents against whom more than 800 Chapter 93A claims have been asserted, my law firm has helped establish important legal precedents that reduce the risk to real estate agents. This is the first of two articles that will describe the duties owed by Massachusetts real estate agents and methods to reduce risk.
Legal Duties Before Chapter 93A
Before passage of Chapter 93A in 1968, a buyer, seller, landlord or tenant, who was not informed of a problem with a property being purchased, was usually limited to asserting a claim for fraud or misrepresentation at “common law.” The reference to “common law” means that there was no specific statute upon which the right to relief was asserted, but that the lawsuit was intended to recover for a misrepresentation under existing case law and precedents.
The problem for many consumers was that Massachusetts common law did not impose an affirmative obligation on a seller or broker to volunteer negative information about a property being sold. An example is the Swinton v. Whitinsville Savings Bank case of 1942, in which a seller of a home had been sued by the buyer for fraud for failing to disclose a termite problem about which the seller was aware. The Court found no liability, since the seller had made no false or misleading statement and the buyer had not asked about termites. The Court concluded that a claim for common law fraud required proof of more than “bare nondisclosure” by the seller.
Protections Added By Chapter 93A
In an effort to protect consumers the Massachusetts legislature enacted Chapter 93A in 1968. That statute expressly prohibits any “unfair or deceptive act or practice in the conduct of trade or commerce.” It applies to all forms of business, not just real estate transactions. Therefore, the law’s wording is intentionally broad. Regulations of the Attorney General, however, attempt to provide detail, but also do so with wide strokes. Those regulations state that an “unfair or deceptive act” is committed if a person acting in trade or commerce “. . . fails to disclose to a buyer or prospective buyer any fact, the disclosure of which may have influenced the buyer or prospective buyer not to enter into the transaction.”
Originally, only by the Attorney General could enforce Chapter 93A. In l969 Chapter 93A was amended to allow lawsuits by consumers. According to the amendment, the amount recoverable by a successful consumer was to include monetary damages to compensate for a loss. Unlike common law claims, Chapter 93A also authorizes recovery of attorneys’ fees and, if a violation is “willful,” the statute permits an award of punitive damages that double or triple the compensatory damages. These remedies made it more advantageous for an unhappy buyer to sue for violation of Chapter 93A than for misrepresentation.
Not Applicable To Private Sellers
Until l978 it was uncertain whether or not Chapter 93A applied only against businessmen. In Lantner v. Carson, the Supreme Judicial Court (SJC) ruled that a private individual who sold his own home was not subject to Chapter 93A, since the private individual was not acting for a business purpose. Later decisions have clarified that owner occupants of two and three family houses are generally not subject to Chapter 93A either in their dealings with their tenants or when selling their properties, since their primary purpose in owning the property is for personal use. Lantner placed the burden imposed by Chapter 93A squarely on persons engaged in business, such as real estate professionals.
Refinement Of Disclosure Standard
Because the regulations issued by the Attorney General were so broad, in the 1970s and 1980s numerous claims were asserted by buyers against real estate agents, alleging that the agents should have discovered and disclosed all problems with a property. For example, buyers claimed that the agents should have discovered basement water problems, roof leaks, structural problems, lead paint, septic system problems, insect infestation, zoning violations and building code infractions, since disclosure would have “influenced the buyer . . . not to enter into the transaction.” The cost of defending such claims often forced agents to settle even when they had not known about the problem. In an effort to protect its members, MAR sought a test case to clarify the duties owed by agents. That test case, Underwood v. Risman, came along in 1993.
In Underwood the SJC held that there was no Chapter 93A liability of a landlord/rental agent for failing to disclose to prospective tenants the agent’s suspicion that the apartment probably contained lead paint. In Underwood there had been no specific discussion of lead paint with the tenants and there was no proof that the landlord had actual knowledge that lead paint was present, since no test had ever been made. As an experienced REALTOR® the landlord suspected there was lead paint, but had never tested and had no actual knowledge. The SJC overturned a $2 million judgment against the landlord for lead poisoning of the tenants’ child, ruling that there was no liability under Chapter 93A for the landlord’s failure to disclose suspicions. Only facts need be disclosed, adopting the reasoning contained in the amicus curiae brief that I filed on behalf of the Massachusetts Association of REALTORS®. (Unlike the duties imposed by Chapter 93A, Massachusetts lead laws now require landlords of residential properties built before 1978 to test for lead paint.)
Two years later another important precedent was obtained in Fernandes v. Rodrigues where it was held that my client, the listing broker, was not liable for innocently passing along erroneous information obtained from town records concerning acreage of a listed property. In 1995 the Massachusetts Appeals Court (one level below the SJC), affirmed dismissal of all claims against a listing broker who had advised buyers that the property they were purchasing contained 4 acres. After the closing the buyers discovered that the property contained only 2.8 acres. This was too small to build the furniture warehouse they had intended. The source of the broker’s information that the parcel was 4 acres had been the town assessor. The Court ruled that the broker should not bear liability for the error, since there was no evidence that a broker who exercised due care should have known of the correct acreage. Of particular significance, the Court ruled that it was not necessary for the broker to have informed the buyers that the town was its source to utilize this defense.
In Summary, Chapter 93A imposes an obligation on each agent to volunteer information about defects in a property to a prospective buyer about which the agent has actual knowledge, even if the buyer does not ask. When providing factual information about a listed property, an agent will have no liability for passing along facts from a reliable source.
The next article will focus on procedural issues under Chapter 93A and will offer suggestions on how to reduce the risk of becoming the target of a claim.
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License Law: The State of Being "Inactive" |
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By Joseph Autilio
Executive Director, Board of Registration
Below the Massachusetts Board of Registration of Real Estate Brokers and Salesperson answers a query by an agent in the field regarding real estate licensing laws on brokerage in Massachusetts
Changing a License from Active to Inactive
Q. Can I change my license status from active to inactive?
A. No. General Laws of Massachusetts Chapter 112, Section 87XX 1/2 only permits the Board to change the status of a licensed real estate agent from inactive to active. Essentially this is to protect the right of the agent to fully work.
The active versus inactive status is a component of the continuing education law; and, in essence, it provides that the Board must record and report as inactive the license status for those licensed agents who fail to complete all twelve hours of continuing education by the time their license is scheduled for renewal. Inactive licensees cannot work but can continue to renew their license every two years as inactive or complete the twelve hours of continuing education and report that to the Board in between license renewal times. Once doing so the license will either be renewed as active or changed from inactive to active. No examinations are required nor is the continuing education requirement cumulative.
While the Board gets very few inquiries on the change of status from active to inactive they usually arise when salespeople wish to do referrals but not affiliate with a broker. Remember the basic licensing law requires salespeople to affiliate with brokers if they wish to work. However, the continuing education law treats inactive licensees as if they are not licensed and, therefore, inactive licensees cannot affiliate with brokers pursuant to law. In other words, inactive licensees cannot work and are not obtaining countable work experience should they wish to become brokers in the future.
The continuing education statute permits inactive agents to be paid referrals by licensed active brokers for the referrals made to such brokers and, occasionally, a situation arises where an licensed active salesperson wants to change their license status to inactive thereby not affiliating with a broker so that they can just earn referral fees. However, once renewed as an active licensed salesperson the Board cannot change that status. Salespeople who wish to be inactive so that they can just do referrals need to think about this at the time they renew their license.
Inactive Brokers Renewing Their Surety Bond
Q. Do licensed inactive brokers need to renew their surety bond?
A. Yes they must renew the surety bond since they can change their status from inactive to active by completing the 12 hour continuing education requirement. Also that bond covers the acts of the broker for the period that the license was active.
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