Brokers License in NYS: What Else Do I Need?

Question

I am considering getting my Broker's license so that I can shave down closing costs when buying a rental property. Since I'm a licensed attorney I just have to pay a small fee so its no sweat. However, once you get the Brokers license what else is there to do? How do you get access to the MLS? If I only use Zillow will the seller's broker deal with me?

Let me know!

David M. · Answer

@Jacob Lamar

While I am in NJ, the general process should be the same.  You have to join your local Realtor association, through them sign up for the MLS, and to activate your Broker's license you should have to create a Realty Brokerage.  In NJ, that requires having a publically available space for prospective clients to walk in.  I guess as an attorney you could use your offices.  You might want E&O insurance (if you are only representing yourself may not matter).  As an active Broker/Agent, you shouldn't be able to list only on Zillow.  The recent clear policy(the actual name escapes me) prevents publically advertising without putting in a listing in the MLS within 24 hours.

I don't know how segmented the City is with regards to their MLS'.  You may need to budget to sign up for more than one.  NJ has some 12 MLS I believe.

Agents have annual fees and dues generally $2k-$3k.  Brokers should be similar, but just with different / added costs.  Don't forget accounts for something like DotLoop or Docusign (maybe you already have something similar for your law practice) and whatever NY approved accounting system (I know our Brokerage uses something provided by the local Realtor association?).  Don't forget to keep the paperwork on everything in case you get audited.

In the end, its may not be worth the trouble.  Unless you are doing a fair number of transactions, or perhaps a few high dollar transactions, it won't cover all your time and costs for having the license and creating/maintaining your own solo brokerage.  If you understand its part of the cost of doing business, then I guess its okay.

I hope that helps.  Good luck.