I took classes online and am preparing to take my real estate broker exam. However, I feel that I do not have a clear understanding of the real estate process.

What forms or documents am I supposed to give to the client when I represent the buyer or seller?

I know the Buyer/Broker agreement must be given to the buyer, but are there more forms that need to be given to the buyer?

Also, when I present the buyer’s offer do I have to send the offer to the seller’s agent? Or can I present the offer to the owner? Do I just fax in or email the offer? Or am I supposed to call the seller's agent or owner?

Does the broker have to attend escrow with the buyer and seller? Or does the broker just send the necessary forms and documents to escrow?

Basically, I don’t understand the forms to give from the beginning of the contract to the end?

Any tips, advice, or feedback would be helpful!

Thank you!

From your post, I assume you're submitting your application to the DRE with the intent of bypassing the salesperson's licensing requirement.

A very basic word of advice from one broker to another prospective broker... If you don't know the answers already, please please PLEASE start out as a broker-associate before trying to practice independently. You'll do a HUGE favor to yourself, your clients, and the other agents with whom you will be interacting.


That depends on many different factors. Is it a short sale? Trust sale? REO? Is the buyer financing FHA? Is the buyer contingent? Does the buyer want the seller to pay for termite work? There are some basic things that need You really, really should know the basics by the time you take your broker's exam. However, the California Association of Realtors does have forms advisors/tutors that can guide you. This is available both in the online forms program as well as in static format on the CAR website. I believe the static forms are available in the members-only section, so you won't be able to view them til you join.


Actually, there is no requirement that a buyer/broker agreement be given to the buyer. But yes, there are other forms (you may be thinking of the Disclosure Regarding Real Estate Agency Relationships form). See my response above.


That's up to the listing agent's preference. I always instruct buyers' agents to email offers to me. I, for one, have never submitted an offer directly to a seller when I've represented the buyer.


At least in Southern California, escrow handles most of the stuff remotely. I make a personal point of always meeting the escrow officer for each transaction, but I've never really needed to do so. Around here, the actual closing is a non-event, and doesn't really require anyone (even the buyer or the seller) to be present.

At least, if you had taken the class, in a real classroom, with other students and an actual instructor, you might have learned many of these things, plus, the interaction of questions, inquiries within the class itself would have been an immeasurable education. Each state, each county, each market is different in what is required and what is customary.

Please tell me that California doctors and attorneys, at least, can't take an online class in order to take a medical or bar exam.

I'd highly recommend you find a brokerage that gives LOTS of classes within their company b/c you're going to be lost otherwise; and, as Andy recommends, do NOT go out on your own at this point - you'd be a sitting duck for lawsuits.

One thing we all dislike out here is having to do the work of the other agent in the transaction and yet still PAY that agent.

I'm trying to be 'nice' guys - three weeks of clouds and rain gets to a person after awhile.

Agreed. Want to see how quickly your income can evaporate? Go ahead and make a couple "rookie" mistakes...

This is a scary thread.

California: "It's like a whole other Country !"

Bella, do you really mean "Broker" or "Agent" exam? I can't imagine even wanting to run my own real estate business with no "real world" experience.

I consider myself a pretty "common sense" guy, but until I worked with buyers and sellers a couple of years (under a BROKER), I was just a glorified tour guide, until it finally clicked that I was to be a problem solver. That only comes from experience. Get the experience first, then decide if you have the desire and talent to go out on your own!

Maybe she does mean agent, in some states, they are called brokers.

Which, IMHO, is dumb. I know that they are "brokers" in Oregon...

California has both, and does allow some applicants to be unleashed upon the Public, skipping the normal "apprenticeship" requirement for practicing under the supervision of another Broker for some period of time, or first completing a certain number of transactions. It's so much more efficient, don't you think ?

With certain book learning, specific college classroom courses, or a JD/LLB, California will allow the General Public to be subjected to "Brokers" who are obtaining their real world experience OJT (on the job training); so sometimes the Buyers or Sellers have more real experience under their belts than do the "Broker" Licensees. What fun is that ?

In both California law and practice, the distinction between broker and salesperson is quite clear (as opposed to, say, Colorado, where everyone takes the same exam). On that basis, if someone were to state they were taking the broker's exam here, I would assume they specifically meant that exam.

Earlier this year, I represented a buyer (an attorney who had a broker's license but had never practiced real estate) in a transaction. The seller/listing agent (one and the same) was also a licensed broker but who had only been licensed for the purpose of being broker-of-record for a now-defunct development company.

Silly me, I thought "they're all brokers, this should be easy." Ha. Guess who wound up doing all the work?

I had heard that in NC every agent gets a broker's license - whether they can go right off and work independently, I have no idea. Perhaps someone on the forum can shed some light.

In VA, you have to have, I believe, three years under your belt. Possibly some transactions and possibly your broker has to certify that you did those transactions. It's only been six years ago for me and I can't remember all the requirements without looking it up.

Really Perky - it is scary. I don't think alot of people who jump into the real estate band wagon realize it. You say one thing wrong (which is why I try to get everything on email) or a client 'claims' you said something, or, you don't have a conversation documented or a document signed saying your client's waiving their right to this or that, they can have you in front of the r.e.board...which is why I document, document, document, document. Which is why, for the past couple of days I have been converting my emails from a short sale transation into pdf form to put on flashdrive because I need to make sure I'm protected not just from the buyer (who I didn't represent) but also from the buyer's agent. B/A did something REAL stupid and if it EVER hits the buyer in the brain, he'll be complaining about fiduciary duties not being met by his agent. There were over 200 emails - THAT'S how messy this situation was.

It'd be alot easier if we were just paper-pushers, but, we're not.

I agree with you on the statement above. I suggest joining a brokerage where you will have lots of training/mentorship. Best of luck in your real estate career.

Thank you everyone for your suggestions! I have a lot to learn! Just to clarify I am studying for the brokers exam. I was able to bypass the salesperson experience requirement.

I have another question:

I am still trying to understand the real estate process. For example, if I represent the buyer what are the steps from beginning to end? Below is what I have learned so far.
Steps:
1. Explain and discuss agency relationships
2. Have the buyer sign agency relationship form
3. Determine buyer’s expectations
4. Qualify the buyer, or get buyers in touch with a lender
5. Research properties according to buyer’s needs
6. After buyer’s interest in a home, write an offer
7. If accepted, arrange for property inspections and title search
8. Provide all documents to lender
9. Complete the residential purchase agreement
10. Arrange closing date

What are the required disclosures that need to be made to the buyer or seller?
Could anybody list the main steps that you take when working with the buyer until closing? (In a normal real estate transaction not short sale, not REO etc.)

I will definitely work with a brokerage first! Just trying to understand the real estate process to better prepare for the broker’s exam.

Thank you for your help!

the most important aspect of the prep for the broker's exam is the real estate law portion. with a good understanding of RE law, you will be able to make competent decisions about real world transactions. you also need to be competent in the math portion of the exam. the state exam contains quite a few short scenario questions, some of which can be tricky. scan the question quickly to identify what answer it is looking for, then go back and do the calculation, or apply your knowledge to arrive at the answer. also, make sure you monitor your time per question, so you don't fall behind. answer easy/obvious questions first, then go back and do the tougher questions, so you will be skipping around the question numbers.

a good source for required disclosures is CAR, as they have all of the pre-printed contracts and disclosure forms. you can obtain that information online, prior to joining CAR/NAR.

If you join a brokerage, you don't necessarily have to join the local Association of Realtors. you can join the MLS only, if the MLS allows it, and if the broker is not a Realtor member.

once you are licensed, beware of the plethora of companies offering leads, seminars and other related services. most are a waste of money.

I'm generally not a patient guy, but even I know how dangerous it can be to jump in with both feet AND be the one responsible.

The best piece of advice offered so far is, when you pass the exam, do not try and go into business on your own right away. Without a rudimentary knowledge of the basics, you are just opening yourself and your clients up to failure, disappointment and you could both lose a lot of time and money in the process.

Find a firm that will train you and nurture that knowledge in you.

Out of curiosity, why did you go straight for broker and bypass the salesperson experience requirement? And, with NO experience or process knowledge, how did you get the state to waive it in the first place?

Here's a link to that material on the California DRE's WebSite:

Requirements in lieu of Experience

Why should I care? Like many other jurisdictions, Vermont has a reciprocal relationship with California honoring their Broker's Licenses; so I've discovered that I've often had to "carry" some of these people when they come here . . . . and they don't bring any real experience with them.

So, when co-broking with one of these transplants, we wind up paying someone to make our job more difficult. Surprise, surprise! (It's a cruel world, isn't it?)

So do you go your entire life putting the cart before the horse?

The best advice anyone can give you is to take the sales associate/agent exam first. And then go practice being an agent for a couple of years and then take the broker's exam.

Please do tell us how you skipped ahead to the broker's course?

You are in no way ready to become a broker at this point.
If reading that hurts your feelings, well, it will be doing your customers a favor.

Barb, read Vermont's link two posts above yours. It's easy to bypass the salesperson's exam; anyone with so much as an undergraduate degree can do it.

I see nothing inherently wrong with bypassing the salesperson's exam...IF (and that's BIG "if") the applicant doesn't intend to practice independently. I'd much rather hire a newly minted (but inexperienced) broker than a newly minted (and equally inexperienced) salesperson to work in my firm. Here in CA, the salesperon's exam is a joke; three classes (one of which is so utterly worthless I was actually offended I had to study it) and a 3-hour, multiple-guess test hardly teach you anything. I would much prefer the model used in Colorado and a few other states, where ALL applicants are required to take the broker's exam, but can't practice independently for at least the first couple of years.

Andy, I read Vermont's post before I posted. I still think bypassing the agent level and going straight to broker is a mistake.

Of course, now I'll caveat that with this: it may depend on what state you're in.

Here in Oklahoma, you couldn't bypass the sales associate level if you wanted to, it's not allowed. Our sales associate exam is pretty thorough. The major difference with the broker exam is adding in more of state law and some on business structure.

From an Oklahoma standpoint, if a person can't do a sales or listing contract from start to finish - and I'm not saying it's not permissible to have questions, I'm just talking knowing all the fundamentals - then that person has no business becoming a broker.

And believe me, we have Realtors here who can't write a listing contract, a sales offer, a counteroffer worth a hoot. We have several who are not motivated enough to get photos of their listed property on the MLS.

Having said all that, yes, I think there are brokers here who should provide more oversight of their sales agents than what they do. (and we don't have any companies here with even 50 sales associates, so it's not like there are 2 or 3 hundred Realtors to be managed.)

if you meet the education requirements, and are confident you can pass the broker's exam, go ahead and do it. it would be silly to do the moron-level salesperson's exam first, and wait for two years. success is about making the most of your time. skip ahead whenever possible.