April 4, 2014
Congratulations to Pat Pullara! After 29 years of service to the Greater Northwest Indiana Association of REALTORS® and a career dedicated to the real estate industry spanning four decades, GNIAR Chief Operating Officer Pat Pullara has announced her pending retirement. Send your congratulations and best wishes to email@example.com. IAR will certainly miss Pat’s steadfast involvement and commitment to making us better.
Focus on Education:
License Action Required of All Before June 30
In 2012, at the urging of a task force convened by the Indiana Real Estate Commission, members of the state legislature approved a bill that changed the way real estate professionals are licensed.
Because the legislation contained sweeping reform, implementation was set to happen in stages. This meant that a majority of those already licensed were not immediately impacted once the bill was signed into law. But, the two-year transition period is quickly coming to an end and this summer’s deadline matters to all real estate licensees.
The following details what current Salespersons, Transition Brokers and Legacy Brokers, including Principal Brokers and Branch Managing Brokers, must do before June 30, 2014 to stay in business. Please do not delay in reading this information and understanding what is expected. The consequences for inaction or late action are serious.
Kathy Harbaugh is happy to answer your transition questions: firstname.lastname@example.org. And RECP can help with any and all of your education needs: RECP.org or 800-742-4067. Curious as to why the changes were made in the first place? Here’s a memo from Charlie Shook, the 2012 IAR President and current IREC member, as well as member of the aforementioned IREC task force.
Salespersons Encouraged to Act Now -
Courses Filling Up, Applications Already Backlogged
According to IREC and its companion the Indiana Professional Licensing Agency, there are 6,300 real estate Salespersons who need to upgrade their license to Broker status before June 30, 2014. There are roughly three months until the deadline, but the state is already experiencing a backlog in processing Broker license applications. And, many education providers are reporting the required 24-hour Broker Transition courses to be filling up to capacity. Salespersons are encouraged to act now or risk an expired/non-renewable license on July 1, which would not only prevent participation in a transaction, but also require a 90-hour pre-licensing Broker course for reinstatement. The exception is for those Salespersons who completed a Broker Transition course before June 30, 2014 but did not apply for a Broker license in time and/or apply in time for the new license to be granted by June 30. Their license will expire on July 1, thus preventing them from participation in a transaction, but they can apply for a Broker license within a year of completing the Broker Transition course without having to take the 90-hour pre-licensing Broker course for reinstatement.
Transition Brokers to Check Expiration Date -
May Need to Renew *New* License Before June 30
Former real estate Salespersons who have already upgraded their license to Broker status during this license law transition period are currently known by the state as Transition Brokers. Transition Brokers need to check the expiration date of their new Broker’s license ASAP via the Indiana Professional Licensing Agency’s website. If the expiration date is June 30, 2014, Transition Brokers must renew their license before then in order to participate in a transaction on and after July 1. Watch for a renewal notice email from IREC. Now is a good time to check and/or update the email address IREC and IPLA have on file by logging into the license renewal area and clicking on “Address Changes Without Renewal”. Last, please report your Broker license number to your Principal Broker and local REALTOR® association.
CE Confusion Cleared for Legacy Brokers -
Must Complete 24 Hours, Renew License by June 30
Much of the focus of this license law transition period has been on the need for real estate Salespersons to upgrade their license to Broker status. But Legacy Brokers, or those who were licensed as a Broker on June 30, 2012, need to do two things before June 30 of this summer: 1) complete 24 hours of continuing education and 2) renew their license. There has been confusion within the Broker community on the CE requirement, so here is a breakdown of the 24 hours -
16 hours of the old curriculum, specifically 6 mandatory and 10 elective hours, taken between July 1, 2011 and June 30, 2014. This is the same CE requirement Brokers had prior to enactment of the 2012 legislation that changed the way real estate professionals are licensed. The license renewal deadline was just extended by 1 year.
8 hours of the new curriculum taken between July 1, 2013 and June 30, 2014. This includes the 2-hour updated Indiana license law class that details the 2012 legislation and the reasons for its enactment.
After July 1, if a Legacy Broker completes the to do list above, they will continue being licensed as a real estate Broker and placed on a 3 year license renewal cycle with a specific 12 hour CE requirement to be completed each year of that cycle for a total 36 hours.
Are you the Principal Broker of your firm? You must complete the to do list above before June 30, 2014. After July 1, the term Principal Broker is eliminated. You will be licensed as a real estate Managing Broker and placed on a 3 year license renewal cycle with a specific 12 hour CE requirement to be completed each year of that cycle for a total 36 hours.
Are you a Branch Managing Broker of your firm? You must complete the to do list above before June 30, 2014. A Managing Broker course is not necessary. After July 1, you will be licensed as a real estate Broker but known as a Branch Manager and placed on a 3 year license renewal cycle with a specific 12 hour CE requirement to be completed each year of that cycle for a total 36 hours.