Real Estate as a Professional Career

Real Estate
as a
Professional
Career
The Nova Scotia Association of REALTORS®
WELCOMES YOU... TO A CAREER
IN REAL ESTATE
“ Being a REALTOR
®
allows me to participate in one of the most important moments
in a person’s life, it allows me to protect these people’s interests, and be a person
in their life that they remember as a confidant.”
A NS REALTOR ®
A career in real estate can open the door to many opportunities. Today’s
fast-paced market offers REALTORS® a challenging career opportunity;
however, long hours, hard work, diligence, and perseverance are a must to
be successful.
Building a career in real estate, as with most professions, requires a great
deal of hard work. But with commitment, there is potential for great personal and financial rewards.
A new REALTOR® should not expect immediate results. Real estate is as
much about relationship building as it is about selling. Those who have
achieved significant success in the real estate industry do not only have a
strong knowledge of the industry, but they also maximize the benefits of
networking and continued education.
The Nova Scotia Association of REALTORS® provides the education and
support needed for REALTORS® to excel in their careers. This booklet was
designed to provide you with information that will point you in the right
direction as you consider a career in real estate. This guide offers detailed
information on what it takes to succeed in real estate and outlines the steps
to receive a license to trade in real estate in Nova Scotia.
YOUR PATH ...
TO A CAREER IN REAL ESTATE
NOTE: License application includes a criminal record check by the Nova Scotia Real Estate Commission.
Check with NSREC if you have any questions.
TABLE OF CONTENTS
Real Estate … Is This The Right Career For You?
PG 1
Working For Yourself, But Not By Yourself
PG 2
Are You Qualified To Trade In Real Estate?
PG 3
Core Competencies … Do You Have What It Takes? PG 4
Realities Of A Career In Real Estate
PG 5-8
Choices - In Real Estate
PG 9
Self-Assessment: Math, Computer and Language
PG 10-15
Business Plan - What You Should Consider
PG 16-17
A Matter Of Fees
PG 19
Salesperson Licensing Course Outline
PG 20
Exam
PG 21
Obtaining A License In Real Estate
PG 22-23
Continuing Professional Education
PG 24
Registering With A Broker
PG 25
REAL ESTATE ...
IS THIS THE RIGHT CAREER FOR YOU?
Your decision to undertake a career in real estate, as with the choice of any vocation,
demands very careful consideration. When shaping your future, you don’t want to be
confused between the facts and myths of the career you are about to consider. The best
way to become informed is to discuss this career opportunity with several experienced
real estate brokers or salespeople. They will be happy to share their thoughts and ideas
about the industry with you.
A career in real estate is extremely demanding and a personal commitment to excellence
is essential. Those who enter the profession will travel a challenging road. Be prepared to
invest time and money in a life-long learning exercise.
Completing the required licensing courses is just the beginning of a journey that requires
continuous learning to maintain your edge and professional credentials. Personal sacrifices are also a reality. Some practitioners point to long hours, high stress levels, and a
reduced social life.
Still, successful people in the profession are the first to say it’s a matter of perspective
and balance. Trade-offs must be made, but the personal freedom, career satisfaction and
the long-term benefits are well worth the effort.
As with any other profession, it takes time and effort in real estate to achieve success and
earn a comfortable income. Monetary rewards in real estate have a lot to do with sales
ability and people skills, but it is still hard to predict income levels. You need to start
with a business plan (pg. 16) to develop a proven track record and an understanding of
working in sales before you can begin banking on your performance.
Compensation for salespeople in real estate is usually based on a commission structure.
The commissions earned vary among brokerage offices and may depend upon the number of properties that are sold or leased.
Earnings can vary by area, type of property sold, local market conditions, and specific
brokerage policies.
As with most business ventures, an individual starting a real estate career
should have sufficient capital available to be financially independent, or to be
financially prepared if business goals do not immediately materialize.
(See Business Plan Pg. 16)
1
WORKING FOR YOURSELF ...
BUT NOT BY YOURSELF
NOVA SCOTIA ASSOCIATION OF REALTORS®
The Nova Scotia Association of REALTORS® (NSAR) represents over 1,600 brokers,
salespeople, and affiliate members (e.g., solicitors, appraisers, and bankers) throughout
the province. NSAR serves its members through a wide variety of educational programs,
publications, and special member services.
NSAR is made up of six regions and one member board: Cape Breton Region, HalifaxDartmouth Region, Highland Region, Northern Region, South Shore Region, Yarmouth
Region and the Annapolis Valley Real Estate Board.
The Association, through an agreement with the Nova Scotia Real Estate Commission,
provides all provincial real estate courses required for licensing as a salesperson, broker,
broker manager, or associate broker. It also provides the Continuing Professional
Education (CPE) courses required for annual license renewal.
NSAR also represents the real estate industry in dealings with the government and the
general public. It assists in the development of policy for the real estate industry.
NSAR continually strives to improve the image and professionalism of its members
through continuing professional education and the active promotion of high professional
standards.
NOVA SCOTIA REAL ESTATE COMMISSION
The Nova Scotia Real Estate Commission
(NSREC), created under a provincial statute, is
an independent, non-government agency,
responsible for the regulation of the real estate
industry. The industry consists of several market
areas including residential, commercial, leasing,
property management, and business brokerage.
The NSREC has a mandate to protect consumers
by establishing standards for applicants and
licensees in the real estate industry, which promote high standards of professionalism, competence, and integrity.
2
ARE YOU QUALIFIED …
TO TRADE IN REAL ESTATE?
There is a provincial statute known as the Real Estate Trading Act, which regulates
“trading” in real estate and restricts “trading” to only licensed individuals. Anyone entering the real estate profession must meet the licensing requirements as a salesperson. In
order to become licensed, an applicant must:
• Be at least nineteen (19) years of age;
• Be able to legally work in Canada;
• Complete the three-week classroom Salesperson Licensing Course,
the correspondence version, or the online version;
• Pass a written examination (70 per cent)
“ I am proud to show the public that I truly love my job and I get excited for my
buyers and sellers when they complete a transaction, just as if it were my own. I
am proud to take the time to do the job right so that my clients have a great
transaction with no complications. This gives me a feeling of accomplishment ”
A NS REALTOR ®
3
CORE COMPETENCIES ...
DO YOU HAVE WHAT IT TAKES?
Self-Discipline & Self-Motivated - The ability to work independently in order to get the
job done. Real estate sales demands self-motivation, discipline and personal commitment.
Organization & Planning Abilities - The ability to organize personal affairs as well as conduct business activity in a logical, efficient manner is a necessary skill. This is useful in
obtaining listings, showing properties, handling offers and conducting negotiations. Your
reliability in this area is essential for success.
Ability To Relate To Clients - Each REALTOR® takes their own unique personality and a
briefcase full of services offered to each client encounter. The ability to connect with
prospective clients on a personal level may ultimately be the only thing that differentiates
one REALTOR® from the next.
Ability To Prioritize - You will need to review the goals you will establish in your business
plan. The most basic rule is that every activity you undertake should help you meet your
goals. To determine the priority of an activity, consider two criteria: importance and
urgency.
Professionalism - All real estate industry members must be familiar with and adhere to
all applicable federal and provincial legislation including the provincial Real Estate Trading
Act. Legislation frames the standards for your basic professional responsibilities. Beyond
these responsibilities, practitioners act according to their own set of personal ethics. Your
personal ethics should set the highest possible standard for your conduct. This will speak to
your integrity and professionalism, and may differentiate you from your competition.
Negotiation & Problem-Solving - You must handle problems quickly and credibly, particularly when negotiating an offer to purchase. In order to close a deal, you must bring sellers
and buyers to a mutually acceptable and successful agreement. This is fundamental to any
real estate transaction. Salespeople are routinely called upon to negotiate on behalf of a
buyer or seller to arrive at agreeable terms.
Effective Oral & Written Communication Techniques - Salespeople are required to
understand, draft, and explain real estate agreements, listings, and other forms used by the
profession. Real estate practitioners also play a vital role in ensuring that documents are
correctly prepared and properly reflect the wishes of the parties. The ability to communicate well is a quality that successful real estate salespersons possess and value. An important part of communicating well is building rapport with clients and establishing their
needs.
4
REALITIES ...
OF A CAREER IN REAL ESTATE
A. Expenses Involved With Becoming A Real Estate Salesperson
The cost of entering the real estate sector can be expensive. This includes the fee
for the Salesperson Licensing Course, textbooks, licensing exam, license fee, and your
Board (Annapolis Valley Real Estate Board if applicable) and Nova Scotia Association of
REALTORS® joining fees. However, you also need to take into account the additional cost
and time needed to establish a practice in real estate.
Also, be aware that there are ongoing industry expenses for such things as the Multiple
Listing Service (MLS®), mandatory Continuing Professional Education courses, lock
boxes, display keys and advertising. Other costs to be considered include vehicle operation and maintenance, telephone and paging services and photocopy/fax services.
Know what to expect! Sit down and calculate all the costs involved in pursuing an education and starting a new career.
Commission income represents gross earnings, which must cover your business expenses. To arrive at net income before taxes, you must deduct all relevant business expenses.
Initially, you will need sufficient capital to be financially independent while you are
working to establish yourself. Additional costs may include:
•
•
•
•
•
•
•
•
•
Monthly Supplies
Administration Fees
Business Liability Insurance
Home Office Insurance
Marketing
Computer Equipment
Electronic Communication Devices
Entertainment
Personal Attire
B. Commission
Compensation for salespersons is usually based on a commission structure. Commission
arrangements vary among brokerage offices. Some brokerages pay a high commission
percentage but also charge a monthly services fee that must be paid regardless of
whether commissions are earned. Other brokerages pay a lower split of the commission
but do not charge for monthly services. Earnings may also depend upon the number of
properties that are sold or listed, and can vary by area, type of property sold, and local
market conditions. Because of the wide range of brokerage compensation plans and
management models, new salespersons must do their homework and choose a brokerage
that meets their need for services, training and mentoring.
5
REALITIES ...
OF A CAREER IN REAL ESTATE
(continued ...)
C. Activity-Based Business
Real estate is an activity-based business. As mentioned earlier, it is important to establish career goals, including an annual income goal. Once you have set a goal, you must
decide which sales-related or prospecting activities you will undertake in order to meet
this goal. Review these activities with your broker to ensure you are complying with the
legislation and the brokerage’s policies regarding marketing and advertising. Your broker might also provide some tips to improve your plan. If you find you are falling short
of your goal as the year progresses, you must be flexible and make changes to your activities and/or activity levels.
D. Prospecting
Prospecting activities vary, but some of the most common ones include: contacting people you know and asking for referrals, joining organizations and clubs, writing and delivering neighborhood newsletters, developing and distributing personal flyers, visiting ForSale-By-Owners (FSBOs), knocking on doors, and cold calling. The more prospecting
activities you do, the more leads you will get and the greater your income will be. You
must also be self-motivated - there won’t be anyone insisting that you prospect every
day. Don’t expect your leads to come from anyone but you.
E. Day-to-Day Activities
There are very few typical days for most real estate practitioners. Morning routines can
involve reviewing the previous day’s work, keeping up to date on notices from the brokerage, preparing advertisements, logging on to the MLS® database, checking out new
listings and sales, touring new properties for sale, and contacting prospective clients.
As the day unfolds, plans turn into action. Listings are prepared and offers drafted. This
is time consuming, detailed work that demands legal accuracy. Often, buyers and sellers
wrestle with decision-making late into evening hours. To keep a healthy balance in your
life and enough time for family and friends, you will need to plan carefully.
Obtaining listings is one of the biggest day-to-day challenges. Listing a property requires
a systematic, knowledgeable approach, along with perseverance and determination. At
first, your listings may come from relatives, friends or business associates. As your ability and confidence gradually grow, you will make new contacts. Over time, you will enjoy
a more reliable source of business through referrals and repeat customers.
6
REALITIES ...
OF A CAREER IN REAL ESTATE
7
(continued ...)
REALITIES ...
OF A CAREER IN REAL ESTATE
(continued ...)
F. Conduct and Trade Practices: Disclosures to Prospective Licensees by a
Brokerage
All brokerages are required to provide the following disclosures to prospective licensees
who are considering being licensed with that brokerage prior to that person making any
commitment to that brokerage:
A) a copy of the contract, in its entirety, the industry member would be required to sign,
if any;
B) all expenses the industry member would be required to pay or reimburse during the
time they are licensed with that brokerage; and
C) all fees, changes in commission splits, or penalties that the industry member would be
responsible for when the industry member’s license terminates with that brokerage.
D) the disclosures must be made in writing and receipt thereof acknowledged in writing,
prior to engagement of the prospective industry member by the brokerage.
E) a prospective industry member shall have a seven day period after execution of th
contract to withdraw, without penalty, by giving written notice of the withdrawal to
the brokerage.
F) it is the responsibility of the brokerage to ensure that the industry member fully
understands the terms of the engagement prior to entering into any written
agreement.
Provided your application meets the Commission’s eligibility criteria, you will be issued a
license.
G. Questions to Ask Your Broker
a)
b)
c)
d)
e)
f)
What is my commission? How does it work?
How many house transactions (ends) do you expect from me?
What marketing activity do I perform and what marketing activity do you perform?
What training will you provide?
Will I have a mentor?
What expenses will I be expected to pay?
8
CHOICES ...
IN REAL ESTATE
Unlike other careers, this field offers a great deal of flexibility in terms of job opportunities. Through experience and continued education, real estate practitioners can qualify
for, or branch out into a variety of specialties. Some of the many opportunities include:
RESIDENTIAL RESALE
Residential resale involves the trading of existing homes and is perhaps the most peopleoriented and popular of all specialties. The ability to communicate effectively and work
independently must be complemented with a number of technical skills. Most people
entering the profession begin with residential sales and build on this foundation when
seeking other opportunities in real estate.
NEW HOME SALES
New home sales, which is somewhat similar to residential resale, typically involve selling
exclusive products for one or more builders. This field demands a high level of technical
knowledge concerning housing construction, ranges of models, options and available
upgrades.
CONDOMINIUM SALES
Condominium sales require specialized knowledge of applicable legislation and unique
ownership factors.
RECREATIONAL AND RURAL SALES
Rural and recreational sales cover property types ranging from seasonal cottages to yearround fully winterized homes. Extensive knowledge is required in areas such as planning
requirements; municipal regulations, environmental legislation, and other unique
restrictions that can impact these properties.
COMMERCIAL SALES AND LEASING
Commercial sales and leasing (including industrial, retail, office, and business operations) is probably the most demanding specialty field given heavy reliance on technical
knowledge, investment calculations, and extremely complex transactions. Commercial
sales can involve millions of dollars, lengthy negotiations, and critical closing dates.
9
SELF-ASSESSMENT ...
DO YOU HAVE WHAT IT TAKES TO
COMPLETE THE COURSE?
The main purpose of this career booklet is to introduce you to the real estate industry
and to help you make a decision about whether to proceed with a career in real estate.
This section gives you three tools to help you assess your suitability – a math proficiency
test, a language proficiency test and a Computer Skills Assessment. Remember, while the
testing approach can provide useful information, nothing can replace a frank face-to-face
discussion with a person who already works in real estate!
It is highly recommended that you have a solid understanding of basic mathematical
skills, the English language and computer competencies. The following assessment,
although not a complete or thorough evaluation, may give you an indication of the level
of math, reading skills and computer competencies you will require to successfully
become a REALTOR®.
(Note: This test is only an indication of the academic difficulty of the Salesperson
Licensing Course materials. It is not a test of real estate knowledge).
Part A. Math
1. $1500 is deposited in a bank account for one year. If the annual interest rate is 11%,
how much money will be in the account at the end of the year?
a) $1575
b) $1635
c) $1665
d) $1755
2. A real estate salesperson earns $240 for an eight-hour day, under an hourly contract.
How much does he earn in three hours?
a) $45
b) $40
c) $30
d) $90
3. 187,959 rounded off to the nearest hundred is?
a) 187,000
b) $187,900
c) 187,920
d) 188,000
b) 0.099
c) 0.009
d) 0.0099
4. 0.4007 – 0.3908 =
a) 0.99
5. What is the area of this rectangular lot?
a) 6 m2
c) 30 m2
b) 14 m2
d) 40 m2
10
SELF-ASSESSMENT ...
DO YOU HAVE WHAT IT TAKES TO
COMPLETE THE COURSE?
Part A. Math (continued ...)
6. If your commission plus HST (13%) = $5650, your commission would be?
a) 4900
b) 5000
c) 5650
d) 6000
7. If a well recovered 1.2 gallons of water after 2 minutes and later recovered the same
amount in 1.5 minutes, what % did the water recovery time improve?
a) 25%
b) 50%
c) 75%
d) 100%
8. If a house priced at $238,500 is reduced 3%, the new price of the house will be?
a) $166, 950
b) $214, 650
c) $237, 785
d) $231, 345
b) 59
c) 62
d) 64
b) 2
c) 36
d) 10
b) 55
c) 40
d) 30
b) 4/5
c) 20
d) 25
b) .48
c) 4.8
d) 48
9. What is the average of 102, 68 and 7?
a) 48
10. 8(2+4) – (8+4) =
a) 0
11. 75 is 125% of ____________
a) 60
12. If 5/x = .25, then x =
a) 1/20
13. 16% of 3 =
a) .048
11
SELF-ASSESSMENT ...
DO YOU HAVE WHAT IT TAKES TO
COMPLETE THE COURSE?
Part B. Computer Skills
Place a Y (for Yes) or N (for No) in the appropriate column below to indicate your ability
to accomplish the technology objective.
12
Part B. Computer Skills (continued ...)
Review your responses. For each question to which you answered “No”, you should
determine how to find the answer or develop the skill.
13
SELF-ASSESSMENT ...
DO YOU HAVE WHAT IT TAKES TO
COMPLETE THE COURSE?
Part C. Language
First, read the statement carefully; then select the one answer that most corresponds to your
understanding of the statement. Base your answer solely on the statement.
1. The real estate industry in Nova Scotia has long recognized the need for a
comprehensive education program for all practitioners. The introductory course was
developed as a result of that recognition. It would be a mistake, however, to leave the
impression that a graduate of the introductory program is an instant real estate expert.
Experience, it has been said, is the best teacher. Newcomers to the real estate business
will grow in confidence as they acquire experience. However, experience can only
become the best teacher when the experience includes the acquisition of knowledge in
a more formal way.
From the preceding, we can conclude:
a) Confidence in one’s ability leads to acquisition of knowledge
b) The graduate of the introductory course has been through a comprehensive
education program
c) The acquisition of experience is part of the learning process
d) Experience, only when combined with the introductory course, makes the graduate
an expert
2.The compensation of salespersons is a problem that must be faced and solved on a
mutually satisfactory basis if the broker expects to stay in business with the help of a
sales force. Policies and methods of compensating salespersons vary widely throughout
the province and even within a local area. Much depends upon specialization,
competition between brokerage firms to attract and hold good salespersons, the
business philosophy of the broker and the personal relationship between the broker
and the sales staff.
Therefore, it can be said that compensation of salespersons:
a) Is determined by mutual agreement amongst brokers
b) Depends on many variables
c) Is solved by competition
d) Is what allows a broker to stay in business
3.Fee simple estate is the most extensive estate or quality of land ownership. The rights
of ownership are most extensive and the limitations are the smallest of any estate
in land.
Based solely on the above, which of the following statements is true?
a) Fee simple estate implies a large amount of land
b) Fee simple provides the owner with the greatest value of land to him/her
c) Someone who has extensive quantity of land has virtually unlimited ownership
d) Fee simple estate implies ownership with the fewest restrictions
14
SELF-ASSESSMENT ...
DO YOU HAVE WHAT IT TAKES TO
COMPLETE THE COURSE?
Part C. Language (continued ...)
4.It is part of the salesperson’s function to “qualify” every prospect by gathering
information as to the prospect’s needs, wants and ability to pay. It may not be possible
to fulfill both the needs and wants in light of the third factor, so one thing the
salesperson does is help the prospective buyer sort out their priorities.
Which of the following statements best reflects the true meaning of the above?
a) One function of a salesperson is to find prospects with priorities as to needs,
wants and ability to pay.
b) Salespersons should determine what buyers’ needs/wants are in relation to the
ability to pay.
c) Needs and wants are not the same, but come before ability to pay.
d) By sorting out priorities, a salesperson determines which prospects are the best
candidates to actually purchase a home.
5. Each parcel of real estate is unique. None is perfect. Its desirability may be affected by
some adverse land use nearby. It could be a little too old. It could be too big or too
small. It may not be in the path of development. The design may not suit your taste.
There are some construction mistakes that could easily be prevented.
In other words, each parcel of real estate:
a) Is unique because of nearby land use;
b) While not perfect, is desirable as long as it is not too old;
c) While not perfect, has its own characteristic that makes it unique;
d) Is desirable provided it is not in the path of development.
* Answers to all questions located on last page of booklet.
15
BUSINESS PLAN ...
WHAT YOU SHOULD CONSIDER
A real estate business plan determines your choice of brokerage, budget, sources of
working capital, equipment and office setup, financial record system, marketing plan,
and whether you will work on your own or with someone.
The following are areas that every business person should consider before going into a
real estate career:
A. BUSINESS PROFILE
What product or service will you provide?
• Common areas of specialization include residential resale, condominiums, new home
sales, rural, commercial sale and lease, business brokerage, property management,
seller broker age or buyer brokerage. Learn a little bit about each area.
• Practice in the area(s) in which you have experience. Otherwise, further your education
and experience to gain the knowledge you need.
• Consider joining a brokerage specializing in that area to provide you additional
guidance.
How large is the market?
• Who are your prospective clients and major competitors?
• What share of the market will be yours?
• Why will prospects prefer your product or service to that of your competitors?
The best way to arrive at the answers is to conduct a market study. This involves compiling detailed market information to determine your market niche and the revenue you
can anticipate. A market study includes a map and overview of the service area, competitor overview, market penetration information, and so on.
What is your mission statement?
• A mission statement is a concise declaration of your business’s overall purposes and
direction. It should embody and promote your business values and, at the same time,
provide a central reference point for the develop ment of specific operating objectives.
• Your vision and mission statement should address what your goals are and how you
plan to achieve these goals.
How will economic, political, social, technological and
environmental factors affect your business?
What are your business strengths and weaknesses?
“ (Real Estate is) a profession where I can set guidelines, accomplishments in
sales, help my clients obtain their dream, each day is different.”
A NS REALTOR
®
16
BUSINESS PLAN ...
WHAT YOU SHOULD CONSIDER
(continued ...)
B. FINANCING NEEDS
• Will you need to borrow money?
Determine how much money you will need and research sources of working capital.
Sources of funding include personal financial resources, institutional financing, and
outside sources, such as partners, investors, family shares, cooperatives
and syndicates.
• What will your loan or line of credit be used for?
• How will you repay your loan or line of credit?
• What are your insurance needs?
• What major business purchases will you be making?
• How do you plan to fund your business to support future growth?
C. FINANCIAL SYSTEMS
• Which accounting system or software will you use?
You may need advice from an accountant to choose the ongoing financial reporting
system that presents your financial data in ways that are most useful to you.
Accountants can also provide instruction in proper budgeting and forecasting
techniques. Every month, the budget should be compared to actual performance.
• What is your contingency plan if you experience negative cash flow?
• Do you have contingency funds available?
• Will you cut expenses or increase revenue, or both?
D. PERSONAL FINANCIAL STATEMENTS
• What are your assets, e.g., cash, savings, investments, general and business insurance,
professional liability insurance, pension plan, property?
• What are your liabilities, e.g., loans, line of credit, credit card balances, mortgages?
• What is your net worth?
• What is your employment history?
E. BUSINESS FINANCIAL STATEMENTS
• What are your current assets, e.g., cash, equipment, supplies / inventory?
• What are your liabilities, e.g., loans, line of credit, lease payments, taxes?
• What are your future income projections based on estimated sales and expenses for
each quarter of the next year?
• What kind of cash flow will you have for the next 12 months?
F. ACCESSING SUCCESS
• Do you have goals that can be used as a benchmark by which to measure success?
• Are your goals “SMART”?
S
M
A
R
T
Specific
Measurable
Attainable
Realistic
Time Framed
If you choose goals that can be measured, you will be able to assess success by comparing your current status with the goals established at the beginning of the business year.
17
PLANNING ...
FINANCES, MARKETING AND TIME
The following steps will give you a realistic appreciation for the financial analysis and
planning that are required for you to take on your career in real estate based on a commission income.
STEP 1
Calculate your personal balance sheet in order to determine your net worth. This will tell
you what funds you have available to invest in your real estate career. It will also show
you your potential for acquiring secured loans should you need them.
STEP 2
Analyze your market area for potential listing and sales income.
STEP 3
Calculate your personal expense sheet.
STEP 4
Calculate your business expense sheet.
STEP 5
Determine the minimum listing and sales activity commission to cover your personal and
business expenses and income tax.
STEP 6
Create a marketing activity plan to generate the listing and sales activity required from
Step 5.
STEP 7
Schedule time to perform the sales and marketing activity from Step 6.
“ I love real estate! When I'm talking with someone I let them know I am a
REALTOR . Chances are they know someone who's going to buy or sell.”
®
A NS REALTOR ®
“ I am a valuable service provider, assisting in the largest investment involved in
some people’s lives. I am proud to have this opportunity.”
A NS REALTOR ®
18
STEP ONE
Personal Balance Sheet
By filling out a personal balance sheet, you will be able to determine your net worth.
Finding out your net worth is an important early step in the process of becoming an
independent contractor because you need to find out what assets are available to you for
investment in your business and to get you through the first six months of your real
estate career.
Statement of Financial Condition __________________ 20____
19
STEP TWO
Your Real Estate Marketing Input Sheet
Note: All figures supplied are for sample purposes only. You would need to confirm the
actual figures based on your market and commission split arrangements with your broker.
20
STEP THREE
Personal Expense Worksheet
21
STEP THREE
Personal Expense Worksheet (continued ...)
22
STEP FOUR
Business Expense Worksheet
23
STEP FIVE
Business Needed To Break Even
Note: All figures supplied are for sample purposes only. You would need to confirm the actual figures
based on your market and commission split arrangements.
24
STEP SIX
Real Estate Marketing Plan
The following is a typical list of marketing activities available to you to meet your financial goal.
As you gain personal experience you would soon determine the marketing activities that
generate the most income for you and you could tailor your marketing plan for
maximum efficiency.
25
STEP SEVEN
Weekly Prospecting Plan
The following schedule will need to be developed to support your marketing plan.
26
A MATTER OF FEES
Visit the NSAR website, www.nsar-mls.ca and click on Become A REALTOR® and
then click on Education/Licensing for a list of current fees.
The following are fees to consider:
One Time Fees
Annual Fees
Per Use Based Fees
SLC
Exam Fee
NSREC – New Licensees
Licensing Fee
Recovery Fund
Record Check
NSAR Joining Fee
CREA Joining Fee
One Time Lockbox Charge
NSAR Annual Member Fee
CREA Annual Member Fee
CREA Annual Adv. Campaign Fee
CREA Technology Assessment Fee
REIA Insurance Costs
Lock Box Fee
MLS® Fee
This is in addition to your brokerage fees.
Payment of Fees
All fees payable by new members joining the Nova Scotia Association of REALTORS®
must be paid at the time of obtaining membership. Personal cheque, company cheque,
VISA, MasterCard, debit card and cash will be accepted.
Please note that offices may be billed only with written authorization from the
Broker or Manager.
After obtaining membership and paying the above fees, all future monthly and annual
fees will be billed directly to the office or the salesperson’s account (Halifax - Dartmouth
Region ONLY). All invoices will be sent to their office and payment is due 30 days from
the date of invoice.
The tuition fee for the classroom and correspondence courses is payable by certified
cheque, money order, brokerage cheque, cash, Visa, MasterCard or debit card. Payment
in full must be received to guarantee registration.
27
OUTLINE ...
SALESPERSON LICENSING COURSE
Unit 1
The Real Estate Profession
Session 1
Session 2
A Career in Real Estate
Professional Associations and Regulatory Controls
Unit 2
The Real Estate Market
Session 1
Session 2
Market Dynamics
Market Value
Unit 3
Legislation
Session 1
Session 2
Session 3
Session 4
Real Estate Ownership
Planning, Land Use and Taxation
Real Estate Trading
Other Provincial and Federal Legislation
Unit 4
Agency & Contract Law
Session 1
Session 2
Agency Relationships and Disclosures
Basics of Contract Law
Unit 5
Mortgages & Financial Calculations
Session 1
Session 2
Mortgages
Mortgage Financing & the Closing Process
Unit 6
Property Valuation
Session 1
Session 2
Session 3
The Appraisal Process
Direct Comparison Approach
Cost and Income Approaches
Unit 7
Construction & New Houses
Session 1
Session 2
House Construction
New Houses
Unit 8
Professional Conduct
Session 1
Session 2
Standards, Trade Practices and Discipline
Risk Management and Professionalism
Unit 9
Representing Buyers & Sellers
Session 1
Session 2
Seller Representation and The Listing Process
Buyer Representation and Negotiations
Unit 10
Drafting Agreements
Session 1
Session 2
Session 3
Session 4
Drafting the Residential Resale Agreement
Conditional Offers and Selected Forms
Condominium Resale Agreement
Tenancy Agreement
28
EXAM
The licensing examinations are held on the first Friday of the month. Candidates must apply to
the Nova Scotia Real Estate Commission and pay the required exam fee to register. Registration
cut off is 4:00 p.m. on the Friday prior to the writing. Examinations can be written at the following
locations:
Nova Scotia Real Estate Commission
Burnside
7 Scarfe Court
Access Nova Scotia
Bridgewater
Kentville
Yarmouth
Truro
Sydney
77 Dufferin Street
28 Aberdeen Street
10 Starrs Road
35 Commercial Street
380 Kings Road
Results
Examination results are available 10 days after writing. You can find out your pass/fail
status by calling the Commission at 468-3511 or 1-800-390-1015. Candidates may also
come into the NSREC office, with their code (provided on the exam) to pick up their
actual mark. The results are mailed out as soon as they have been marked by the
Commission. About 30 per cent of applicants fail the licensing examination on the first
attempt. Should you fail the exam, you will have two additional opportunities to write the
exam. Please visit www.nsar-mls.ca and click on “Become A REALTOR®” and
“Education/Licensing” for the current exam fee. The applicant may have their examination reviewed by contacting the Nova Scotia Real Estate Commission.
Candidates are allotted three (3) hours to write the examination.
A pass mark of 70 per cent is required in order to apply for a real estate license.
If an applicant has failed to pass the exam after three attempts, and chooses to write the
exam again, they must first re-take the Salesperson Licensing Course.
In the event that a student has to re-take the Salesperson Licensing Course,
full tuition will be charged.
29
OBTAINING A LICENSE IN REAL ESTATE
Applicants must successfully complete the required Salesperson Licensing Course and
pass the exam (70 per cent minimum). The appropriate license application must be completed with the broker’s recommendation and sent to the Nova Scotia Real Estate
Commission (NSREC) along with the applicable license and Real Estate Recovery Fund
fees. The broker must complete part of the form to confirm that, if a licence is granted,
the applicant will be authorized to work for that brokerage. The Nova Scotia Association
of REALTORS® (NSAR) administers the Salesperson Licensing Course.
Salesperson Licensing Course
The course curriculum is designed to prepare individuals to enter the real estate profession with an acceptable level of technical knowledge, competence, and skills. The program utilizes an integrated learning design/system, which includes a Salesperson
Licensing Course Workbook, Forms & Solutions Booklet, Real Estate EncyclopediaCanadian Edition, and Nova Scotia Provincial Reference Manual. The Salesperson
Licensing Course Workbook consists of ten units and 25 sub-units (sessions) and is
designed for either classroom or correspondence delivery (See pg. 20 for full course
outline).
*** It is important to note that the Salesperson Licensing Course serves to teach
students about the real estate industry and provides them with a licence to practice
real estate in Nova Scotia. The course DOES NOT provide students with knowledge
of sales, marketing and business planning. That is why it is essential that prior to
choosing real estate as a career, one must be sure that they either possess this
critical sales and marketing knowledge or are willing to learn it once registered
with a brokerage, in order to succeed in real estate.
Option A: Classroom Course
Courses are offered once a month at our Burnside location at 7 Scarfe Court. The course
is three weeks in length and 100 per cent attendance is required. The program represents
a mixture of formal instruction, self evaluation, and problem-solving. Students are frequently asked to evaluate circumstances, make suggestions, correct errors and learn
important lessons in their pursuit of knowledge and skills. There will be required precourse reading as well as homework during the course.
Option B: Online Course (Coming soon)
The online version of the Salesperson Licensing Course (SLC) is highly interactive and
engaging. The aim of the online SLC is to advance student learning through interactivity
and discovery.
30
OBTAINING A LICENSE IN REAL ESTATE (continued ...)
Option C: Correspondence Course
This same course is available to candidates through correspondence. There are three
assignments that candidates will be asked to complete and submit to the NSAR
Education Department for marking. The pass requirement for each assignment is 70 per
cent. Students may be asked to complete additional work if their mark is below the pass
requirement.
Before being able to write the licensing exam, all correspondence assignments must
be completed and have received a pass mark one week prior to the exam date.
Students will be given six months from the registration date to complete the correspondence course.
31
CONTINUING PROFESSIONAL EDUCATION …
The Nova Scotia Real Estate Commission (NSREC) requires all licensees to complete nine
hours of Continuing Professional Education (CPE) between July 1st and June 30th of each year
to qualify for license renewal. Courses taken for credit must be a minimum of three hours,
which equates to three credits. Six or more hours will receive a maximum of six credits.
Licensees completing more than the minimum requirement may carry forward a maximum of
three credit hours to the next licensing cycle (July 1 – June 30).
Should a licensee fail to complete the requirements, their license will not be renewed until
proof that the requirements have been met is provided to the NSREC Registrar.
REGISTERING …
WITH A BROKER
In order to receive your actual license after passing the licensing examination, candidates must
be registered with a licensed real estate brokerage. We suggest contacting various companies of
your choice, before or after writing the examination, to discuss working arrangements.
Licensing Procedure
Candidates are issued a certificate, which remains in effect for ninety days from your examination date. You must apply for a license through the Nova Scotia Real Estate Commission. You
will need verification of successful completion of the licensing exam, the application for a salesperson’s license form completed by both you and your broker, and the payment for the licensing fee. You will also be required to provide a copy of your Birth Certificate and Driver’s
License. Once you are registered with a brokerage, you must join the Real Estate Recovery
Fund, which is a protection plan for the public.
32
REGISTERING …
WITH A BROKER
(continued ...)
Record Check
The Nova Scotia Real Estate Commission, as part of the licensing process, checks the
credit record and the criminal record of applicants. Applicants must sign authorization
for this process and pay a fee. While a single incident of bankruptcy or criminal conviction may not be sufficient reason to refuse a license, such factors can affect a decision.
To register for any version of the Salesperson Licensing Course contact:
Education Course Registrar
Nova Scotia Association of REALTORS®
7 Scarfe Court, Ste. 100
Dartmouth, Nova Scotia, B3B 1W4
Telephone:
Fax:
E-mail:
Website:
(902) 468-2515; 1-800-344-2001
(902) 468-2533; 1-877-220-2533
[email protected]
www.nsar-mls.ca
“ All my clients have thanked me for my help in buying and selling their homes.
They felt I did a good job and I am proud of that.”
A NS REALTOR ®
“ Being a REALTOR
®
allows me to participate in one of the most important moments
in a person’s life, it allows me to protect these people’s interests, and be a person in their life that they remember as a confidant.”
A NS REALTOR ®
33
SELF-ASSESSMENT ANSWERS
Part A
Part C
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
1.
2.
3.
4.
5.
C
D
D
D
D
B
A
D
B
C
A
C
B
C
A
D
D
D
If you had two or more questions wrong in either section, you may wish to consider
additional training in English or mathematical skills before proceeding with the
Salesperson Licensing Course. There is a Math Primer issued with the Salesperson
Licensing Course.
If you scored well (less than two questions wrong in either section), this is an indication that you may possess the academic skills to comprehend the course material.
7 Scarfe Court
Dartmouth, Nova Scotia
B3B 1W4
Phone 902.468.2515 or 1.800.344.2001
Fax 902.468.2533 or 1.877.220.2533
Member Canadian Real Estate Association
SEPTEMBER 2008
www.nsar.ca