Dear Michael: Our Realtor says he has a Broker’s license. What is the difference between a real estate agent and a real estate broker?
Answer: In the interest of protecting the public, the state of California requires that any person wishing to represent clients in real estate transactions obtain a valid real estate license. A real estate salesman license can be obtained with a minimal number of mandated classes and no prior sales experience, but requires that the holder work under the supervision of an experienced broker.
A real estate broker license requires experience and additional training, but allows the holder to perform as his/her own real estate agent without working under the supervision of another real estate broker. As such, a real estate agent is a licensee that works for or under a real estate broker’s license. In California, for example one may not obtain a RE broker’s license until they’ve been licensed as a RE Agent for at least two years and then complete a separate Broker training and testing requirement. Separately, a real estate licensee who is a member of the national lobby called the NATIONAL ASSOCIATION of REALTORS (NAR) is a real estate agent who has permission to use the name “Realtor” due to being a card-carrying / dues paying member.
Dear Michael: We are closing escrow on our new home. At closing does the seller or buyer pay the property taxes?
Answer: Taxes are typically pro-rated to the date of closing. The seller pays the days for the current tax year that he or she owned the house up to the close of escrow. The buyer pays any remaining days left for the current property tax bill until June 31 (property tax bill is from July 1 until June 31st). The buyer will receive, approximately 3 months after the property is transferred a supplemental tax bill from the tax assessor for the difference between the seller’s tax bill and the buyers new tax bill at the new assessed value. The following year the tax bill will be consolidated into one bill.
Dear Michael: Can you please tell me what I need to do to make sure title is clear on my home before it can be sold?
Answer: When a home is in escrow a title search must be completed in order to protect the buyer and the lender. Clouds and Liens in the chain of title can affect ownership and maybe associated with: property line disputes, easements, tax liens, IRS liens, mortgage liens and material liens. For clear title the escrow company will order a Preliminary Title Report, to ensure that there are no liens. If there is, these items must be cleared and proof of clearance must be provided before the lender will commit to a loan or the title company will insure. Even if no lender is involved, a title search should be done so all the parties are protected and clear title can be issued.
Michael Kayem is a Realtor with Re/max Estate Properties serving Culver City and the Westside since 2001. You can contact Michael with your questions at 310-390-3337 or e-mail them to him at: homes@agentmichael.com