Do We Need Separate Licenses?

Should commercial real estate agents and residential real estate
agents have 2 separate licenses?–
Daniel Rothamel, REALTOR, ABR, SRES
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  1. I am a commercial Realtor and I like the idea of separate licenses for residential and commercial real estate. Having practiced both in my 10 year career, I can tell you they are completely different skill sets to succeed. Commercial is much more analytical and finance based (Cap Rates, IRR, NOI, etc…) and contracts are much more complicated. Commercial licensing courses should focus on financial analysis of real estate and contract law.

  2. Saraota 11/25/2007


    I am Daniel Kijner a FL. Lic.Real Estate Broker and a French European Union Lic. Real Estate broker “holding” there also “2” licenses : Transaction and Property Management, as well as Wealth Management (equivalent to Insurance broker & series 6 & 7 from SEC in the US).

    You can dub from the above that as I was looking to our common point of contact Tim Kinzler through Facebook (give you also how connections come in), I was intrigued and also wondering why the Virginia Association of Realtors would “only” approached the “separate licensing issues” between “commercial” and “residential” transaction.

    As French I can attest also that it may or may not make sense if you do not have experience, knowledge and skill. That is certainly where education, training, and apprenticeship should come to play in the public client and industry interest.

    The main issue “potentially” people in the business would say it may preclude free access, anti-trust and hidden anti-competitive behaviors for some to defend their turf. Others would argue that it is in the best interest of the public, as well as clean and lower risks and allow people to work on fields they understand as well with common minimum knowledge top work on same page between practitioners and able to give accurate assistance and information to the public.

    Back to the French, some of the ideas that were implemented on this were to create a mandatory insurance mutualized funding to cover and guarantee the public (individual as well as corporate clients) and not only errors and omissions that are also imposed at $ 2.3 M per year per issue along a base $ 175 K E&O policy per activity or license (transaction AND Property Management).

    Also wa svoted to have on each specialty (specialties as brokers can have dual licenses there) providing proof of practice, theoretical as well as academic level and knowledges sanctioned by at least bachelor degree in certain areas recognized by the government: marketing, property and real estate laws (attorneys), architecture, fiscal counselors, CPA with auditing diploma, surveyors, general appraisers, French equivalent of IRS inspector turning back to the private sector, and so on.

    The other specific level was to impose per year through the FNAIM National Federal French association of Brokers owners – some 12 000 entities – (that is the main difference: our boards are only with brokers and no employees, even independent sales people and contractors): have all specialties and licensed brokers follow every year 2 days (16 h) of continuous education,in what ever topics (preferably in their fields). I will be glad to share more if interest.

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