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Historical Licensing Changes:

  • Some states have eliminated the salesperson's license, automatically granting all licensees a broker's license.

  • Lawyers can sometimes handle real estate transactions without being licensed as brokers if it is incidental to their legal practice.

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    Multiple Listing Service (MLS): Before MLS was introduced in 1967, the term "real estate salesperson" was more appropriate since brokers primarily represented sellers by providing legal documentation services.



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    Educational Requirements:

    • Continuing education is mandatory for renewing licenses; for example, California requires 45 hours of continuing education every four years in various topics such as agency law and ethics.

    • College graduates may apply directly for a broker's license in some states after completing required courses.



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  • National Association of Realtors (NAR): Founded in 1908 (though not mentioned in this text), NAR trademarked "Realtor" to refer to its members who adhere to its code of ethics.

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  • Real Estate Settlement Procedures Act (RESPA): Enacted in 1974, RESPA prohibits real estate brokers from receiving compensation from lenders for referring clients to specific lenders, ensuring transparency during settlements.

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  • Flat-Fee Services: Some modern variations include flat-fee real estate agents who charge a fixed amount rather than a percentage commission; they list properties on MLS while leaving direct negotiations up to sellers themselves.

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