The next available type of real estate license is that of a principal broker. Once a real estate agent has a few years of experience as a licensee, they may seek to become a broker. A broker may create a new company and hire other agents to work for them in selling real estate.
In order for an agent to become a broker, they must complete the required qualifications. Becoming a broker also involves another education requirement, as brokers have more rules and regulations to know and follow as they supervise other agents. Brokers must also pass another state exam to prove that they are competent to become a broker.
The following are characteristics of Principal Brokers:
Principal Brokers are considered to be the main broker for a real estate company and are in charge of the real estate office. There may only be one principal broker per real estate office.
Principal Brokers are the actual parties that enter into agency agreements with buyers and sellers of real estate.
Principal Brokers are responsible to supervise the agents and associate brokers that work in their office.