By Kevin Hogencamp, Contributing Writer
Ensuring that real estate sales associates and brokers are properly licensed and adhere to the profession’s policies and ethical standards is the sausage-making part of a Realtor association’s responsibilities.
It’s also among the organization’s most vital tasks.
Northeast Florida Association of Realtors compliance administrator Angela Meeks continually culls through online documents to ensure members have an active Florida Department of Business and Professional Regulation license.
The compliance administrator also audits NEFAR records to ensure they match DBPR, Florida Realtors and National Association of Realtors requirements.
As of Aug. 29, NEFAR had 1,006 designated Realtors (brokerage company members) and 6,637 broker associate and sales associate members.
When information about members is missing, fees aren’t paid, discrepancies are found or it’s otherwise clear they aren’t properly licensed, the NEFAR administrator notifies the broker.
Then, Meeks follows through until the matter is resolved.
NEFAR’s checks-and-balances process includes ensuring the same number of each sponsoring brokerage’s sales associates is listed on NEFAR and DBPR records.
State real estate licenses are valid for two years and expire March 31 or Sept. 30. Licensure is a NEFAR membership requirement.
“A lot of behind-the-scenes work goes into our compliance program,” said Glenn East, NEFAR’s CEO. “I think a lot of people would be surprised by what all is involved in it.”
East said the compliance program is a service for NEFAR members and is particularly popular with brokers.
“The brokers get busy the same as agents do and don’t always follow up on agents’ licensing,” he said. “This (compliance program) helps reduce their liability, especially if they get audited (by DBPR).”
In the United States, real estate professionals are typically subject to two sets of rules: laws and regulations administered by state real estate commissions and, if they choose to join after obtaining a license, the local Realtor association and the NAR Code of Ethics.
Broker associates and sales associates who have placed their license with a NEFAR-member broker are required to join the association.
Realtor associations aim to promote the profitability and success of its members and ensure members adhere to the NAR’s code of ethics. When real estate professionals join a local association, they automatically become members of the state and national associations.
NAR requires members to be actively engaged in the real estate business, have no record of official sanctions involving unprofessional conduct and have no recent or pending bankruptcy.
Real estate firm principals must first join a Realtor association before any non-principal can join.
The Florida Real Estate Commission’s primary role is to protect the public from unqualified real estate practitioners through licensing, enforcement, auditing trust accounts and requiring continuing education.
Applicants must pass an exam that covers state real estate law, standards and practices.
Once licensed, they may help people buy and sell property as a sales associate, broker associate or broker.
“If we find that anything is incorrect, if there is a compliance issue, we notify the broker to give them the heads-up,” East said. “I’m sure they’d rather hear from us than the (state).”
Licenses may be inactive for various reasons, including issues related to brokerage changes or violations of rules or laws. Still, sales professionals must be properly licensed to list or sell property.
“The only caveat to that is they are able to close transactions that were already pending when their license became inactive,” East said.
The state also requires sales associates, broker associates and brokers who use the term “Realtor” are current members of a Realtor association.
Realtor is a trademarked term that refers to a real estate agent who is an active member of NAR, which is among the world’s largest trade associations.
“Unless we allow provisional use of (Realtor) until they get through orientation, they are unlawfully representing themselves as being a member of an organization they’re not in,” East said.
Brokers are given 10 days to comply with licensing and other membership requirements before NEFAR undertakes formal enforcement action, starting with a certified letter, East said.
Sometimes, compliance monitoring can be particularly tricky, especially when brokerages have multiple offices.
“A broker that is out of compliance in any other geographic area is out of compliance with us,” East said.
Nearly all compliance issues are satisfactorily resolved, East said.
Effective Jan. 1, NAR’s Code of Ethics course requirement must be completed every two years, rather than every four years as previously required.
When NEFAR members fail to complete the ethics training, their membership is suspended until the training is completed.
Florida Realtors can view their continuing education information at MyFloridaLicense.com.