What's in a Name?

 I often find when working with clients, that there is some confusion about what the differences are between various Real Estate license designations, as well as some of the key players in a transaction. So here is just a brief description of what and whom you might work with in a typical transaction.

 All Brokers and Real Estate Agents will have taken formal real estate courses and appropriate real estate or broker licensing exams given by the state where they want to work. Additionally the State of NJ now requires Continuing Education courses for all Agents and Brokers to maintain their licenses.

 Brokers- A Broker must pass a separate Brokers Exam, requiring more courses than Agents. Brokers usually own and operate a Real Estate Business (Agency or Brokerage), but they may act for another Broker as managers or just as agents. As Brokers they are more liable or legally responsible for any mistakes made by their agents or salespeople who work for them.

 Agent/Associate/Salesperson- Agents must take education courses and pass a licensing exam. They can work in a several ways- Listing Agents, represent just sellers, Buyers Agents just a Buyer, but they can also do both as a “Disclosed Dual Agent”, in which they can function in both ways on a property they are listing. Many Agents will choose to work in all these capacities with various clients. All Real Estate Agents/Salespeople must work under the guidance and the legal protection of their broker.

 Attorney- While no longer mandatory for a closing in NJ, hiring a Real Estate attorney is still pretty standard practice. Many Attorneys specialize in Real Estate transactions but it is not required for them to do so.  The attorney will review the contract, explain it and may suggest legal modifications. They will work with you and your agent to negotiate inspection items and key dates such as the closing date. They will obtain all other legal documents required from other sources such as title, mortgage, surveys, taxes and deeds.

 Title Company-A Title Company makes sure that the title (ownership document) for a piece of real estate property is legitimate and then issues title insurance for that property. Title insurance protects the lender and/or owner against lawsuits or claims against the property that may result from dispute. They can also do complete Real Estate closings or work with your attorney to provide all the necessary documentation, collect closing costs and distribute monies. The title company will ensure that the new titles, deeds and other documents are filed with the appropriate entities.

Home Inspector- Educated, Trained and licensed in NJ, Home inspectors will examine a home for potential or existing problems. They may or may not be engineers, if structure is in question make sure they have Structural Engineering certifications. It is money well spent whether to negotiate for repairs or just to establish condition prior to completing a purchase or for a future sale in order to determine what repairs should be made ahead of time.

Appraiser- An appraisal of your home is done for a property tax appeal, to secure a mortgage from a lender or sometimes for insurance purposes. They use the local MLS (Multiple Listing Service) to gather data on sales and listings as well as a visual inspection of the property. They must be take courses, be trained and licensed in NJ.

 Lastly, not all Agents are the same!  ONLY a real estate professional who is a member of the NATIONAL ASSOCIATION OF REALTORS® and abides by its strict Code of Ethics can use this designation.