Finding out if someone has a valid real estate license is an important process that can save you money by preventing illegal practice of selling or negotiating property. You will also want to make sure that no one using this license is involved in any fraudulent activity.
There are several ways to verify whether or not someone has a broker’s license, seller’s permit, or agent license. Some states require only that you check their records within a year of buying a house from them, while others ask for more thorough investigations like asking neighbors, looking at social media posts, and performing background checks.
In this article, we will talk about some easy ways to confirm that your potential sellers have legal rights to sell their home and to negotiate a fair price.
Check your insurance policy
It is very important to make sure that your current insurance policy contains adequate coverage for real estate agents. There are several types of policies that can cover you as an agent, so it makes sense to check into all of them.
Most companies offer professional liability insurance which covers lawsuits due to negligent actions done while representing a client. This includes things like suing over faulty work or selling properties without proper disclosures.
They also may have business income insurance, personal use car insurance, homeowner’s insurance, etc. Consult your insurer about whether these coverages apply to licensed realtors in your state.
You should make sure your policy has at least $1 million in total coverage as well. Some states require much more, but this is still quite generous.
Confirm the address of the real estate company
It’s very important to confirm that you have the correct address for the real estate brokerage firm. Some companies will use multiple addresses, or even no official address at all!
If you find that their address has changed, it may be a sign that they lost trust in themselves or are looking to start over. You can also check out their social media pages to make sure those match up with what business he/she mentions them being part of.
Be wary if there is mention of different agencies under one name, or none at all. This could be due to changing licenses, or perhaps the person leaving the agency is taking over for them. Make sure his or her accounts are gone as well before buying into this theory.
Running your own real estate agent license test is easy to do! Simply visit Realtor.com and choose Your State then Agent Test. Then, you will see an option to take the exam for either broker or salesperson.
Call the real estate company to confirm the license information
It is very important to verify that your seller’s broker has their professional licensing before you agree to purchase a home.
It is also essential to check that they are licensed during the transaction, not just when you start looking at houses!
Because if they aren’t then there may be something fishy going on like them acting as brokers without the proper licenses or using fake documents.
Look up the real estate agent on the government’s website
Recent changes to federal regulations require that all professional sellers (or brokers as they are called in Canada) be registered with the National Association of Realtors or NAR. This organization can perform some basic checks to see if there are any issues with your registration, but you must do your own research beyond what the NAR provides to ensure it is indeed authentic.
There are several ways to verify that your license is valid, active, and not expired. Some agencies and organizations will submit formal documents directly from the state board of realtors or broker association which verifies your credentials, while others may ask for direct proof such as a copy of your license or an official letter stating it has been verified.
Get their license number
The next step in verifying your real estate agent’s legitimacy is to get their license number. You can do this by going onto the state government website for your area, or you can call them directly and ask!
Most states offer both online and phone tools to look up agents. These sites let you search not only for an agent’s individual license, but also if they are licensed at all. They will even tell you how long they have been licensed!
Make sure to check out these sites before hiring anyone. In fact, make it a rule that you will never hire someone if their license has expired!
Once again, professionals must be able to prove their credentials so don’t assume just because someone says they are “licensed” that they really are.
Check with the local government
It is your responsibility as an investor to make sure that you are licensed before buying or investing in real estate. If you are not, then you will need to find a way to get this license first!
It is very important to have proof of your real estate licence before buying property. You can do this by talking to people around you who know about licenses, such as friends, family members, and even the police if necessary.
If someone close to you has been doing business with landlords and/or agents and they say everything was okay, then you should believe them and look past their relationship when looking for a home.
Real estate investors are only too aware of how easy it is to be scammed out of money so try to avoid being one of these victims!
Be careful online where individuals advertise properties or themselves as professionals. Never pay any fees to anyone outside of your own personal connections unless you are 100% confident in them – just like never buy anything online without checking it thoroughly!
Legal regulations vary from state to state and area to area so make sure you understand what laws apply to you before buying anywhere.
Get a letter confirming the agent is licensed
It’s your right as a consumer to verify that an individual is legally allowed to sell real estate in your area, and he or she should have proper licensing.
Many states require you to confirm that agents are licensed before you agree to work with them. Some even require it within 24 hours!
Some ways to do this include calling the state agency directly, looking up their records online, or using another broker‘s listing to see if they can vouch for the agent.
Keep copies of all of your documents
It is your responsibility as a real estate agent to make sure you are not representing someone else while acting in their best interest, or using their license. If you are asked to provide proof that you have a license, you should be able to easily find it.
It’s important to remember that if you can’t produce this information, then you shouldn’t be putting yourselfor others in risk by offering professional services.
Real estate agents must also register with both your state board and the National Association of Realtors (NAR). While neither requires an official document, most members are required to at least include their driver’s license when applying for membership.