Definition of "Licensee"
In general terms, a licensee means a person or legal entity who has received authorization or permission to perform a particular activity through another party (the licensor in our case.) As a consequence, the licensee has certain obligations to meet. For instance, they have to pay a specific fee or share from their revenue for using the licensor’s permission.
You can find the term operating licensing agreement in various business domains, such as entertainment, media, and technology. Additionally, as stipulated in licensing agreements, a licensee is granted legal capacity in franchises, government, and brand licenses.
Who is a real estate licensee?
A real estate licensee lawfully retains a real estate salesperson or broker’s license. A licensee has satisfactorily passed a real estate salesperson’s or broker’s license examination and meets the real estate salesperson’s or broker’s license state legal requirements. In many states, the employing real estate broker can retain a real estate salesperson’s license.
Once the licensee obtained their real estate license, they can lawfully broker, sell, or rent properties to potential house buyers or tenants. Furthermore, they can perform their activity in various profitable real estate niches, representing a real estate brokerage. The US doesn’t allow realtors to perform this work without a real estate license.
By definition, a real estate licensee has permission to enter a property they represent, otherwise off-limits for the general public. The real estate’s owner provides the agent with this authorization to use the said land.
Real estate licensee as a creditor
Suppose the seller wishes in-depth assistance. Then, the licensee can aid the owner in deciding whether a potential buyer is certified for getting credit or a mortgage loan. You can consider a real estate licensee a “creditor” then. However, this rule applies to purchase-money mortgage sales or under a land contract. This type of contract refers to a seller who holds on to the property’s legal title. At the same time, they enable the buyer to use the land for various purposes.
The professional path of a real estate licensee
Students interested in acquiring a real estate license are expected to pass a real estate licensing exam. After the exam, which differs from state to state, they’ll become a real estate licensee or agent. Soon, they will be issued a pocket license card, proving their authority to represent clients legally. We highly recommend new real estate licensees join a real estate agency to get first-class mentorship and experience in the field. An excellent real estate agent can choose to dream big and pursue a broker’s career.
Popular Real Estate Terms
Approach to appraise rental property based on anticipated future earnings to be derived from it plus the estimated selling price at the end of he period held. ...
Statutes stipulating that the property of deceased individuals is distributed in a way that assumes that property during marriage is jointly owned and equally shared by the spouses ...
Similar property. Comparing like property. properties that are side by side but do not meet. They are in the same direction with a constant distance. ...
(1) Mildly convex arch built into a load bearing beam, girder, or truss to counteract any load bearing stress placed on it. (2) Slight slope designed into a structure such as a drive4way or ...
Statement filed with a governmental authority declaring property a homestead for the purposes of securing a homestead exemption. The declaration of homestead has no effect on the property ...
(1) Methods that involve discounting the future cash flows generated by an income property. These techniques are used primarily for valuation. (2) Methods of selecting and ranking ...
The meaning of the term tort outlines a wrongful act resulting in injury or damages. For example, trespassing on someone’s private property can end up destroying a part of it. ...
(1) Agreement where the broker and the seller agree to mutual performance. The broker agrees to advertise the property at the agreed sale terms with the intention of putting together buyer ...
Land that has poor income potential, usually used in an agricultural sense meaning that the land is untellable, has poor access, is extremely steep, has suffered serious erosion, is ...
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