Consumer Alerts

Here are some facts about real estate licensing laws in most states:

1.) To accept fees for listing or referring real estate in most of the 50 states requires a license in the state where the property is located. In some cases a reciprocal license is acceptable but most states require you to be locally licensed.

2.) When a national broker referral website operator takes funds from you to list a home, it is usually illegal because the national website is typically not licensed in the state where the property is located. If dealing with a national site, only deal with one that puts you directly in touch with the local licensee before taking your money. Check your credit card bill and verify that the funds went directly to the licensee in the jurisdiction where the property is located; not a referral firm.

3.) When any website takes fees for listing real estate located in most states without first giving you an approved agency disclosure for the state in which the property is located, the listing is illegal. An agency disclosure tells you who the broker is working for and where his/her loyalty lies.

4.) Some states also have fair housing documentation that must also be provided to you prior to taking fees.

5.) Some states also require that the broker walk through your property or measure the exterior of the property before placing it in the MLS.

6.) ANY LISTING WHICH IS TAKEN IN AN ILLEGAL MANNER CAN BE DELISTED BY THE STATE OR THE MLS. While the legal violations are being sorted out, you could lose valuable marketing time. State licensing agencies and competing brokers know which out of state firms have websites that do not comply with their laws but because these sites are often located outside their jurisdiction, instead of prosecuting the national referral website, their less complicated recourse is to invalidate the listing.

7.) Ask the website operator that takes your credit card; not their affiliate whether they are licensed in your state. To check out whether an individual or firm is licensed in your state click this link for list of State Real Estate Licensing Boards. In most cases, if a listing website was willing to take your money without being licensed (or licensed through reciprocity) in the state where your property is located, they are most likely unscrupulous as they are violating the law.

All of Broker Direct MLS member brokers have been certified as licensed real estate brokers in good standing in the states which they represent. By choosing a Broker Direct MLS member broker, you have the confidence of your state's Real Estate Licensing Commission that your local MLS listing is valid and will remain for the duration of your listing term. To select a licensed Broker Direct MLS broker for your state, return to the home page and select your state from the map or drop down menu.

Make sure your website owner is licensed in your state. Click here to check for state licensing information.
REMEMBER - DON'T LIST YOUR HOME WITH A BROKER OR WEBSITE OWNER NOT LICENSED IN YOUR STATE.