Designated Broker Within a Real Estate Firm
In any real estate brokerage, there is a designated broker that has legal responsibility for the actions of all other brokers within the company. While the exact role of a designated broker may vary by state, this professional is typically responsible for overseeing all transactions and activities that take place within the company.
They are involved in many of the same operations as the firm’s managers, but they often work directly with clients to facilitate the sales process. For example, they help buyers find properties that meet their requirements, negotiate offers, and assist them in closing the deal.
The designated broker is also in charge of the firm’s overall marketing efforts. This can include creating and managing a company’s social media presence, developing marketing strategies, and tracking the effectiveness of marketing campaigns.
A designated broker also is in charge of hiring new agents and training them to sell real estate. They are involved in the interviewing process and make personal assessments of candidates’ applications, ensuring they are the right fit for the firm.
Their duties are similar to those of a managing broker, but they are often paid by commission rather than salary. This compensation enables them to be focused on sales and other company-wide objectives.
As a designated broker, you will have the ability to review and initial all contracts, property data sheets, disclosure forms, and market analyses prepared by your licensed sales agents. You will also conduct compliance training and ensure that all agents are fully aware of the company’s policies, rules, and procedures, as well as state licensing laws.
What is the Role of a Designated Broker Within a Real Estate Firm?
In addition, you will be responsible for implementing a system of supervision of the agency’s affiliated licensees and unlicensed persons. This includes maintaining a written company policy that identifies and describes the types of relationships in which a designated broker and his or her affiliated licensees may engage as part of their real estate brokerage activities. This policy should include the procedures to prevent mishandling of information through both formal and informal sharing of information within the real estate brokerage agency, the arrangement of agency office space and the personal relationships of affiliated licensees who are representing buyers or sellers with adverse interests.
This position requires strong interpersonal skills to satisfy clients, effectively manage agents and resolve conflict. It is important that you are knowledgeable of all legal issues pertaining to real estate.
Managing Brokers Versus Designated Brokers
A managing broker is a mid-level broker who reports to a designated broker. They are typically more involved with daily tasks, such as scheduling meetings, reviewing current client listings, completing transactions for their agents and other contractors, and documenting any financial and business activity within their scope of duties.
They may oversee some of the firm’s marketing efforts, but they rarely create new campaign ideas or manage the marketing team members who execute them. They may suggest minimal changes to marketing language or imagery, and they occasionally review the effectiveness of a marketing campaign.
