Do You Need an Office to Open a Real Estate Brokerage?
One of the things about becoming a real estate broker that appeals to many who enter the business is the fact that you need not be tied down to an office all day long. Real estate is one of those businesses that, by its very nature, keeps people on the move.
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Legal Obligations of a Broker
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States real estate boards or commissions require that a broker have a physical address where contracts and records are kept and can be reviewed. This does not mean that the broker has to maintain an office open to the public, but the records the broker is required to keep must be available at the official physical address that is supplied to the regulatory agency.
Working Under a Managing Broker
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In most states, new real estate brokers are required to work under the supervision of a managing broker for the first two years. The managing broker is the person responsible for maintaining the records of transactions of those brokers who work under them, so this fulfills the requirement of having a physical address. New agents often take advantage of the office space made available by their managing broker so that they do not have to maintain their own office.
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Advantages of a Brick and Mortar Office
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Larger real estate brokerages often make desk space, with office equipment such as a phone, copier and fax machine, available to their associate brokers for a "desk fee," a split of their commission or a transaction fee when a deal closes. Managing brokers often encourage new brokers to take advantage of the office space with the understanding that being in a working environment can be beneficial to people just entering the business.
Working Virtually
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Brokers who have learned the ropes may find that they can get along without an office, choosing instead to meet with new clients in the client's home or at a coffee shop. An effective website, a cell phone and a small portable computer make it easy to stay in touch and conduct the research necessary to operate on the fly. No formal office means reduced expenses, which adds to the bottom line.
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