North Carolina Provisional Broker vs Broker: What’s The Difference?
If you are not familiar with North Carolina real estate, learning all of the real estate terms thrown around can be difficult. This is particularly true if you move to North Carolina from a different state; you will quickly come to see that real estate transactions are not universal.
In a previous article we talked about some of the real estate titles that often get confused. Real Estate Agent. Realtor®. Referral Agent. So many titles! Even real estate licensees struggle with keeping up with all of the titles used to describe themselves.
Let’s clear up some of the confusion by focusing on two of the terms used to describe real estate professionals in North Carolina: Provisional Broker and Broker. How are they the same? How ae they different? Is one better than the other?
Let’s find out!
North Carolina is a broker only state
One of the first things you will notice when familiarizing yourself with North Carolina real estate is that every real estate licensee is a broker. That’s right, North Carolina is a broker-only state.
This means you won't hear a real estate licensee calling themselves a Real Estate Salesperson Real Estate Sales Associate, or Real Estate Sales Agent. Though these titles are used in some other states like Florida and Texas, that’s not the case in North Carolina.
How it works in North Carolina
In North Carolina, real estate licensees are governed by NCREC (North Carolina Real Estate Commission). After meeting basic requirements, including passing an approved real estate pre-licensing course and state exam, real estate license applicants are issues an initial license, the Provisional Broker license. This is what people usually envision when they think of a real estate agent.
North Carolina Provisional Broker
The Provisional Broker license is the entry level license in North Carolina. It allows a licensee the ability to assist customers in the buying, selling, and exchange of real estate for compensation. Provisional Brokers work as listing agents, buyer’s agents, showing agents, referral agents, and property managers, and help customers buy and sell commercial property (with specialized training and supervision).
North Carolina Provisional Brokers (Realtors® or otherwise) must always work under the supervision of a licensed broker-in-charge, and may not own a real estate firm.
The caveat with a North Carolina Provisional Broker is that they must complete broker post-licensing requirements within 18 months of initial licensure. Once this happens, the “provisional” is dropped, and licensee become a “full” broker.
If post-licensing is not completed within that 18-month time frame, the license becomes inactive, and must cease engagement in real estate activities.
North Carolina Brokers
North Carolina Brokers have received additional education that qualifies them for the broker upgrade. Florida Real Estate Brokers have additional education and experience that qualifies them to not only engage in real estate transactions, but also supervise others. As previously mentioned, all Florida Real Estate Sales Associate must work under the supervision of a broker.
This broker, often referred to as a Broker-In-Charge or Managing Broker, is responsible for ensuring all licensees under their supervision follow laws, policies, and procedures when working with clients and completing transactions.
Because of their levels of experience, Florida brokers are able work on their own without associating with a brokerage. in this instance, they are required to provide their own “supervision” without someone else to rely on.
License Comparison
Now let’s take a more in-depth look at the 3 Florida Real Estate license types to differentiate between the titles licensees use.
Provisional Broker
Entry level
Completed a 75-hour pre-licensing course
Passed both parts of the North Carolina Real Estate exam
Works under the supervision of a broker
Can complete most real estate transactions
Can not own or operate a brokerage
Can not supervise others
Can refer to themselves as a Real Estate Agent, Provisional Broker or Realtor® (only if a member of NAR)
Can not refer to themselves as a Real Estate Broker
“Full” Broker
Completed 75-hour pre-licensing & 90-hour post-licensing education
Can work independently as a sole proprietor
Can own and operate a brokerage
Can apply for BIC (Broker-in-Charge) eligibility
Can affiliate with more that one real estate form/brokerage with permission
Can refer to themselves as a Real Estate Agent, Real Estate Broker or Realtor® (only if a member of NAR)
Is one better than the other?
Contrary to what one might think, having a “full” broker license isn’t better than having a provisional license. It’s simply a matter of timing. Provisional Broker licensees are meant to be temporary in nature, almost forcing a licensee to upgrade to a full license before the 18-month mark.
But having a full brokers license does not necessarily equate to more experience. And here are two reasons why:
There is no experience requirement in North Carolina. Though states like Florid require a Sales Associate to have at least 2 years of active licensure before being eligible to upgrade to a broker license, this requirement does not exist in North Carolina. You simply must meet the post licensing education requirements.
The18 month deadline is the MAX. Though NCREC gives a licensee 18 months to meet post licensing requirements before a provisional licensee goes inactive, there is no minimum time frame.
This means that licensees can complete the 90-hour post license education requirement right after obtaining provisional status, granting them a “full” broker license with little to no eperience.
For example, when I moved to North Carolina and was issued my provisional license, I was able to complete the 90-hour post-licensing requirement in about 2-3 weeks.
Is my agent a Provisional Broker, or “Full” Broker?
Most North Carolina consumers don’t know they can easily check the license status of the real estate agent they are interviewing or currently working with. Because they don’t know that there are differences in real estate license types, they don’t think to check.
Luckily, the North Carolina Real Estate Commission (NCREC) has a handy dandy tool the public can use to check a licensee’s status.
To access the search and verify the status of any North Carolina real estate licensee, go to ncrec.gov , scroll down, and click on one of the options under “Search The Licensee Database”.
If you are looking to buy or sell a property in North Carolina, and are in need of a Realtor® referral, contact Mint Refer by sending us a message, or emailing us as info@mintbrokerage.co.
If you would like to join Mint Refer as a Referral Agent, please visit mintrefer.com/join or email us at join@mintbrokerage.co.