Sunday, May 3, 2009

Licensing and Expertise Are Not the Same

Author: Lambert Munz

Frankly, the real estate licensing system in California is outdated. Sales agents, property managers, mortgage brokers, and business brokers all have the same license. There are two licenses, 1) Agent Licenses and 2) Broker's Licenses. Other than that, all of the above-mentioned categories have the same license, whether an agent or broker.

The license indicates only one thing and that is these individuals are legal to practice real estate in different categories, but does not indicate their expertise. The license is weighted toward residential sales because that is the group holding the majority of licenses.
I strongly feel (with many others in the business) that each practice should be licensed separately. This way, a licensee would receive some education regarding each type of business category they have chosen.

The Department of Real Estate even states in its real estate reference book that "a licensee should not offer services to the public unless they have received training in that category"
Before hiring anyone to serve you, ask to see their license. I have been asked twice in 44 years for evidence of my license.

Secondly, you should check the agent/broker's evidence of expertise. Do they hold a designation in the field they are practicing? For example, NARPM (National Association of Residential Property Managers) offers two individual designations: RMP (Residential Management Professional) and MPM (Master Property Manager).


Generally, the public doesn't know what these designations mean and that is the purpose of this article. They are indicators that the person earning a designation has disciplined him/herself to commit to advanced training in their industry. It costs a lot of money and time. Besides the cost of the courses, most courses are held in another town (time away, travel, hotel, meals, etc). It means contributing to the industry by serving as an officer of a chapter or a committee - and attending local or national conventions.
Shouldn't these be the people you want handling your business?

Don't shop only by the fees charged, but more importantly the person's training and experience. Those that have the lowest fees usually have to ask for the lowest fees because they have nothing else to offer.

My name is Lambert Munz and I have been licensed as a Real Estate Broker for 44 years with the CA Department of Real Estate. I currently am President of Arbour Real Estate Management, Inc.. Background was as a commercial broker. Currently a property manager and have been for 27 years. We offer residential and commercial management services.

I hold two designations - RMP Residential Management Professional and MPM Master Property Manager. Awarded by NARPM National Association of Residential Managers.
Past President of NARPM Sacramento chapter.

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