Unit 1 - Nebraska Real Estate License Law

Randall Study

Associate Broker?

Has broker’s license but works under another broker

Broker?

Helps list, sell, buy, trade, rent/lease real estate, negotiate any of those transactions, finds prospects or brings prospects to someone, collects/attempts to collect rent, give BPO or CMA, presents themselves to one who does these things for money

How many types of brokers are there in Nebraska and what are they?

2, associate and designated broker

What is Broker’s Price Opinion (BPO)?

Written estimate of what a property is worth. Opinion given about value of a specific property and used for setting price, helping lender start/renew/etc., supporting property owner in RE tax appeal.

Is appraisal and BPO the same?

NO, BPO is not an appraisal but still an official pricing tool allowed under license law

What is commission?

Refers to Nebraska State Real Estate Commission, agency that is responsible for real estate license law. Regulates licensees, issues licenses, enforces law, investigates complaints and protects public

What is Comparative Market Analysis (CMA)?

Price estimate by an agent. Compares specific property to other similar properties that have been sold recently or on market currently

What is designated broker?

One individual in a real estate company who has full legal authority to run the business and oversee all real estate activities. Responsible for supervising every associate broker and salesperson.

How is the designated broker chosen?

Depends on business structure. Sole proprietorship: the owner- or a broker chosen by owner - is designated broker. Partnership, LLC, or Corporation; Partners, members, or board of directors must officially name designated broker.

What is federal financial institution regulatory agency?

Any federal government agency responsible for supervising and regulating banks, credit unions and other financial institutions

What does the federal financial institution regulatory agency do?

Helps ensure safe lending practices, inclusion those connected in real estate transactions

What does the federal financial institution regulatory agency include?

Federal Reserve, FDIC, OCC, CFPB, NCUA

What is federally related transactions?

Real estate transaction that meets two conditions: requires an appraiser. regulated, contracted for, or overseen by federal financial institution regulatory agency

What is inactive buyer?

Someone who holds a broker license but is not allowed to perform any real estate activities because license is not active

How does a broker/salesperson license become inactive?

Their designated broker returned their license to commission, asked commission to place license inactive, newly licensed but not yet chosen an employing broker or requested to operate, license became inactive because of law, rule, regulation.

What is inactive salesperson?

Holds a salesperson license but can’t perform any real estate activities because license isn’t active

What is “Person”?

When the law refers to a “person” who is licensed, it always means an individual human being not a business entity.