Faced with a real estate dilemma?
Sometimes, the answer might be right in front of you in the form of your managing broker.
The Legal Hotline receives a lot of calls from brokers who are seeking educated suggestions on how to resolve issues with other brokerages. Often, the answer lies in involving the assistance of their respective managing brokers to open up the lines of communication between the companies who are representing the parties to the transaction.
In order to become a managing broker, a licensee must have been licensed at least two years as a broker. In addition to “life experiences” acquired during that time frame, a managing broker must also complete at least 45 more credit hours than a broker licensee and pass a managing broker’s examination.
As a result, managing brokers often have a bit more real estate experience which gives them perspective on issues that may arise in a transaction or between brokers.
Managing brokers can also draw upon their own experiences to help their licensees employ creative problem-solving methods. The managing broker in charge of the office wears a “hat” of authority and may have more success than a broker in convincing another managing broker or broker to be receptive to working out an issue.
It may also be valuable to remember that, particularly in larger brokerages, the managing broker has most likely gone through a competitive process to be selected by the company as the managing broker.
Presumably, the managing broker competed with other applicants and they were selected by the company as the best person to lead the company.
Under the Act, the managing broker is charged with supervising “the activities of licensee and unlicensed assistants working in offices or branch offices managed by the named managing broker.” In that supervisory role, they are the ones responsible for implementing and communicating company policies and procedures established by the sponsoring broker.
They are also responsible for training licensed and unlicensed assistants and supervising all advertising. These roles require them to maintain a working knowledge of the industry. As a result, the managing broker sits in the perfect position to offer practical advice to their sponsored licensees, and to act as company representative to other sponsoring brokers.
It is important to recognize that on any occasion a real estate broker has an issue which may lead to the need for legal advice or counsel, the managing broker should be made aware of the situation. In many cases, that disclosure is required under your independent contractor agreement.