Principal Broker
To understand what a principal broker is, we have to go back up the family tree of real estate.
You do understand all brokers can be real estate agents, but not every real estate agent can be a broker, right? That’s because, to obtain a broker’s license, the real estate agent has to attend additional broker’s classes and, in some states, have some proven experience in the real estate market.
Ok, with that in mind, you must also understand that most of the states prohibit real estate agents from working without brokerage supervision. They can do everything, but once a deal is set in place, the real estate agent will need a broker to close things properly. However, there are some individuals that do possess a broker license but still work as real estate agents under another broker. They are brokers that prefer not having the heavy costs of running an office and/or the responsibilities of having their name on the billboard.
So, finally, the Principal Broker is the fearless one who puts his name on the billboard and carry the burden of maintaining a business. The big boss. El Jefe. The Principal Broker.
Also known as managing broker or qualifying broker, the principal broker is the one with the legal authority to sign agency contracts with a home buyer or a home seller and the one who supervises all agents working on a brokerage firm. He/she is the supervisor, and sometimes the home buyer or home seller doesn't even get to meet him/her!
How does the principal broker earn a living?
Well, because his/her existence allows the real estate agent to close deals and profit from it, the principal broker normally receives an override on the sales of all the licensees working under his/her license.
Popular Real Estate Terms
Cost excluded from the minimum lease payments to be made by the lessee in a capital lease. The lessee reimburses the lessor for the lessor's expense payments. ...
Outside of a structure covering a lower quality or cheaper surface to make the structure look better. Examples of veneer exteriors are bricks covering concrete, or a thin surface layer of ...
Civil rights acts passed by the U.S. Congress includes those of 1866, 1870, 1871, 1875, 1964, and 1968. The first two acts gave blacks the rights to be treated as citizens in legal actions, ...
Heated structure needed to raise fowl. ...
Being an administrator in the state where an individual was domiciled at the time of death. The domiciliary administrator is considered the primary and principal estate administrator. ...
What Is a Real Estate Bubble? One definition for a real estate bubble is the fast increase in prices, usually driven by investors and speculators in major urban areas. Properties are ...
Proportionate share of an item to total items in the population. ...
Provision in a lease agreement in which the lessee is given the right to buy the property at the end of lease term. In many cases, the option price is attractive to encourage acquisition. ...
Contractual provision describing the terms under which coverage may be terminated. An insured or insurer may cancel a policy before its expiration date. Generally, a written notice of ...
Comments for Principal Broker
Are Real Estate agents in Arkansas automatically Brokers? Also, how would I search to find out if someone is a licensed broker in the state of Arkansas?
Feb 17, 2020 19:45:42Hi Sharice!
the answer to your question is no, not necessarily. In Arkansas, a person can be a real estate agent without a real estate broker's license, as long as they are under the auspices of a licensed broker.
Feb 21, 2020 10:56:44Have a question or comment?
We're here to help.