Hi Jennifer, nicely here with Pinnacle Real Estate Academy. Today, I want to talk to you a little bit about the new License Law Reform Act that is going to take place in January 2017. There has been a lot of talk about this new act, and many people are questioning how different things are going to work, what was taken away, and what was added. So, today I just want to touch base with you on a couple of concepts about agency. Firstly, let's talk about what was removed. They have dissolved the sub-agency concept in our law, which is fantastic. It was very difficult for students to understand how agency works, and not many people used it. Brokers in charge didn't support it, insurance didn't allow it, and no broker in charge wanted to be responsible for another broker in charge's agent. So, dissolving sub-agency is a positive change. Now, let's focus on what was added to our license law - transaction brokerage. With transaction brokerage, you can now get paid for representing a customer in a transaction. This means that if you show someone around town and they buy something without signing an agency agreement, you can still get paid for driving them around and helping them find a home. If you have a buyer and you show them a home listed on the MLS, you don't need a signed compensation addendum because the listing agent is required to pay the person who brings the buyer. However, you would still want to have a transaction brokerage agreement signed by the buyer customer, stating that they understand and agree that you will be paid. If you have a buyer and they want to buy a for sale by owner property, you can facilitate their offer and the entire transaction process. In this...
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Video instructions and help with filling out and completing Form 843 Broker
