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Home Real Estate WHAT IS AN INDEPENDENT REAL ESTATE AGENT?

WHAT IS AN INDEPENDENT REAL ESTATE AGENT?

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An independent real estate agent is a real estate professional who acts as an intermediary between the seller and the buyer of real estate. He is the main point of contact between the different parties when monitoring a sale, including the notary who will formalize the sale for him with the signing of the authentic deed. The independent real estate agent supports his clients on several points: the valuation of goods, the signing of mandates, visits, participation in financial negotiations, the publication of real estate advertisements on sites . In this profession, there are several independent sub-structures. Usually the independent real estate agent is a commercial agent. He can also practice as an independent real estate negotiator, or as a self-employed person. Unlike a traditional real estate agency, the independent real estate agent works from home and is paid according to the transactions he carries out.

THE ADVANTAGES OF THIS TRADE:

Independence: The main advantage of an independent real estate agent is precisely his independence. Indeed, he works from home, he is autonomous for his organization and his functions: he thus manages his own work schedule and his schedule of visits for example. In addition, he has no relationship of subordination whatsoever with his clients or real estate agencies, no more prioritization!

The strength of the network: one of the strengths of the profession of independent real estate agent is the strength of its network: indeed, he can share his ads on the largest ad portals with powerful tools such as online valuation tools. line. On the other hand, we must pay attention to the choice of the real estate network, because only a few independent real estate networks are reputable and recognized in USA. It is therefore advisable to compare the different networks beforehand.

Control of remuneration: the independent actor is the sole master of his remuneration. The more he works, the more real estate transactions he carries out and thus the more his income will be important. You should know that a real estate agent (a commercial agent) can receive 70 to 99% of the agency fees compared to 40 to 45% if he is employed in a traditional real estate agency.

Proximity to clients: the independent real estate agent can hope to obtain a large portfolio of clients. In addition, he will have more proximity with potential customers by focusing on relationships and direct contacts.

DISADVANTAGES OF THE INDEPENDENT REAL ESTATE AGENT:

The complexity of the statutes: the profession of independent real estate agent also has some drawbacks. Indeed, there are several legal statuses to be a self-employed real estate agent: commercial agent, wage portage or self-employed person. This is why it is strongly recommended that you contact a professional for these legal steps.

Relative autonomy: the total autonomy of the independent agent is sometimes utopian. Indeed, with the status of independent real estate negotiator, he will have to contract with a real estate agency. His independent status is therefore retained, but he is employed by an agency.

Limited turnover: you should know that the status of auto-entrepreneur or micro-entrepreneur sees its turnover limited to ceilings. Indeed, in 2018, the threshold doubled to $66,400, if this threshold is exceeded, the auto-entrepreneur must transform his status. This forces good real estate negotiators to change their legal status and therefore pay more taxes.

Solid knowledge: the independent real estate agent must manage his accounts and have legal knowledge.

BECOMING INDEPENDENT REAL ESTATE AGENT: THE PROCEDURES!

Once you have chosen your legal status, you will need to:

1) Drafting of the statutes: after having chosen the legal statute which seems to you to be the best, it is necessary to proceed to the drafting of the statutes. The articles of association are complex to achieve, which is why it is advisable to have a professional accompany you in this process: such as a lawyer, an accountant or another support for the creation of a business.

2) Publication of a notice in a journal of legal notices: in order to promote the creation of the chosen legal form, it is mandatory to make an advertisement in an official newspaper.

3) Sending of the registration file:

To finally proceed with registration, you have to go to a business training center in a chamber of commerce. This center will carry out all the formalities to create your status as an independent real estate agent by collecting the essential documents. or you can be a broker in a real estate company .for example Al Hartman.

4) Application for the professional real estate agent card

Subsequently, an application for a T card is required in order to obtain authorization to exercise your activity as a real estate agent, for this it is necessary to:

Complete then sign the administrative request form
Gather the required supporting documents: copy of your diploma or other proof of your professional qualification
Send your file to the Chamber of Commerce and Industry on which your place of practice depends
If the request is validated, a professional card will be sent to you within two months. You should know that this card is valid for 10 years, so it will eventually have to be renewed.

5) Obtaining a financial guarantee

Financial security is mandatory when you intend to manage funds on behalf of your clients. You don’t only need it if you swear on your honour that you will not be managing your clients’ funds at any time. However, this will limit your activity as an independent real estate agent. If you manage funds on behalf of your clients, you must contact an insurance company.

6) Subscription to professional liability insurance

Subsequently, it is also mandatory to take out professional liability insurance to cover bodily injury, financial risks, and material damage related to the activity. Its good ! You can now fully exercise your activity.

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Nick Statman

Nicholas Statman has been buying, selling and developing property since 2001, Nicholas 'Nick' Statman entered the property industry in 2001 and set up a property buying company that quickly established itself as one of the biggest in the sector. During this time the Company successfully transacted on thousands of residential properties across the UK. Nicholas Statman was an early pioneer of the 'quick sale' niche market which has since grown considerably with a multitude of companies now operating in the sector. Nicholas Statman has strategically built a sizeable residential and commercial property portfolio with a view to holding for optimum capital growth and a long term passive income. Nicholas Statman has been involved in almost every aspect of the property sector over a 20 year period - this includes buying and selling, development, letting and management and is now involved in the fast growing online/ hybrid Estate Agent industry.

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