Real estate brokers arrange transactions involving residential property and other types of real estate. In many countries, these individuals must pass a real estate broker exam before being able to start work. Those preparing to take this exam should familiarize themselves with local contract laws and rules pertaining to real estate sales.
To prevent individuals from fraudulently obtaining licenses, regulatory authorities in many areas conduct extensive background checks on applicants for the real estate broker exam. Therefore, examination entrants must gather together information that includes details of prior work experience and contact information for former employers. Additionally, regulatory bodies often need to know the exam entrant's current and former addresses. On the examination day, candidates must produce a valid form of government issued identification (ID) such as a driver’s license or passport; this should be acquired before the examination day.
Generally, real estate transactions are recorded at the local courthouse but the process for filing these documents varies between regions. Someone preparing to take a real estate broker exam must learn about the title recording procedures in the local area and about the kinds of administrative fees that brokers or property owners must pay in order to record documents. In some areas, property owners have the ability to cancel real estate transactions within a certain period of time after the sale occurs. An exam entrant must be familiar with the rights of property buyers and sellers to cancel a real estate transaction either before or after the transaction closing date.
In some countries, brokers are required to abide by a code of ethics which means that brokers must disclose certain pieces of information to other parties involved in transactions. The real estate broker exam typically includes ethics related questions and examination candidates must ensure that they are familiar with rules pertaining to disclosure and liability. Additionally, homeowners often rely on brokers for advice on ordering appraisals, home inspections or buying property insurance. Therefore, anyone wishing to become a broker must learn about the appraisal process and related topics since the broker's exam often includes questions on these subjects.
Brokers are normally paid on commission, but laws in some areas limit the commissions that a broker may receive. Additionally, some homeowners are required to deposit insurance premiums and property tax deposits into escrow accounts. Those preparing to take a real estate broker's exam should research up-to-date information on regional rules pertaining to escrow and commissions. Many brokers buy study guides that contain all of the information that the examination contains while other broker's rely on knowledge acquired while at college and personal research when they prepare for the exam.