Real Estate as a Professional Career

The Nova Scotia Association of REALTORS

WELCOMES YOU... TO A CAREER

IN REAL ESTATE
Being a REALTOR
allows me to participate in one of the most important moments in a persons life, it allows me to protect these peoples interests, and be a person in their life that they remember as a confidant.
A NS REALTOR

A career in real estate can open the door to many opportunities. Todays fast-paced market offers REALTORS a challenging career opportunity; however, long hours, hard work, diligence, and perseverance are a must to be successful. Building a career in real estate, as with most professions, requires a great deal of hard work. But with commitment, there is potential for great personal and financial rewards. A new REALTOR should not expect immediate results. Real estate is as much about relationship building as it is about selling. Those who have achieved significant success in the real estate industry do not only have a strong knowledge of the industry, but they also maximize the benefits of networking and continued education. The Nova Scotia Association of REALTORS provides the education and support needed for REALTORS to excel in their careers. This booklet was designed to provide you with information that will point you in the right direction as you consider a career in real estate. This guide offers detailed information on what it takes to succeed in real estate and outlines the steps to receive a license to trade in real estate in Nova Scotia.

YOUR PATH ...

TO A CAREER IN REAL ESTATE

NOTE: License application includes a criminal record check by the Nova Scotia Real Estate Commission. Check with NSREC if you have any questions.

TABLE OF CONTENTS
Real Estate Is This The Right Career For You? Working For Yourself, But Not By Yourself Are You Qualified To Trade In Real Estate? PG 1 PG 2 PG 3

Core Competencies Do You Have What It Takes? PG 4 Realities Of A Career In Real Estate Choices - In Real Estate Self-Assessment: Math, Computer and Language Business Plan - What You Should Consider A Matter Of Fees Salesperson Licensing Course Outline Exam Obtaining A License In Real Estate Continuing Professional Education Registering With A Broker PG 5-8 PG 9 PG 10-15 PG 16-17 PG 19 PG 20 PG 21 PG 22-23 PG 24 PG 25

REAL ESTATE ...

IS THIS THE RIGHT CAREER FOR YOU?

Your decision to undertake a career in real estate, as with the choice of any vocation, demands very careful consideration. When shaping your future, you dont want to be confused between the facts and myths of the career you are about to consider. The best way to become informed is to discuss this career opportunity with several experienced real estate brokers or salespeople. They will be happy to share their thoughts and ideas about the industry with you. A career in real estate is extremely demanding and a personal commitment to excellence is essential. Those who enter the profession will travel a challenging road. Be prepared to invest time and money in a life-long learning exercise. Completing the required licensing courses is just the beginning of a journey that requires continuous learning to maintain your edge and professional credentials. Personal sacrifices are also a reality. Some practitioners point to long hours, high stress levels, and a reduced social life. Still, successful people in the profession are the first to say its a matter of perspective and balance. Trade-offs must be made, but the personal freedom, career satisfaction and the long-term benefits are well worth the effort. As with any other profession, it takes time and effort in real estate to achieve success and earn a comfortable income. Monetary rewards in real estate have a lot to do with sales ability and people skills, but it is still hard to predict income levels. You need to start with a business plan (pg. 16) to develop a proven track record and an understanding of working in sales before you can begin banking on your performance. Compensation for salespeople in real estate is usually based on a commission structure. The commissions earned vary among brokerage offices and may depend upon the number of properties that are sold or leased. Earnings can vary by area, type of property sold, local market conditions, and specific brokerage policies.

As with most business ventures, an individual starting a real estate career should have sufficient capital available to be financially independent, or to be financially prepared if business goals do not immediately materialize.
(See Business Plan Pg. 16)

WORKING FOR YOURSELF ...

BUT NOT BY YOURSELF

NOVA SCOTIA ASSOCIATION OF REALTORS

The Nova Scotia Association of REALTORS (NSAR) represents over 1,600 brokers, salespeople, and affiliate members (e.g., solicitors, appraisers, and bankers) throughout the province. NSAR serves its members through a wide variety of educational programs, publications, and special member services. NSAR is made up of six regions and one member board: Cape Breton Region, HalifaxDartmouth Region, Highland Region, Northern Region, South Shore Region, Yarmouth Region and the Annapolis Valley Real Estate Board. The Association, through an agreement with the Nova Scotia Real Estate Commission, provides all provincial real estate courses required for licensing as a salesperson, broker, broker manager, or associate broker. It also provides the Continuing Professional Education (CPE) courses required for annual license renewal. NSAR also represents the real estate industry in dealings with the government and the general public. It assists in the development of policy for the real estate industry. NSAR continually strives to improve the image and professionalism of its members through continuing professional education and the active promotion of high professional standards.

NOVA SCOTIA REAL ESTATE COMMISSION

The Nova Scotia Real Estate Commission (NSREC), created under a provincial statute, is an independent, non-government agency, responsible for the regulation of the real estate industry. The industry consists of several market areas including residential, commercial, leasing, property management, and business brokerage. The NSREC has a mandate to protect consumers by establishing standards for applicants and licensees in the real estate industry, which promote high standards of professionalism, competence, and integrity.

ARE YOU QUALIFIED

TO TRADE IN REAL ESTATE?

There is a provincial statute known as the Real Estate Trading Act, which regulates trading in real estate and restricts trading to only licensed individuals. Anyone entering the real estate profession must meet the licensing requirements as a salesperson. In order to become licensed, an applicant must: Be at least nineteen (19) years of age; Be able to legally work in Canada; Complete the three-week classroom Salesperson Licensing Course, the correspondence version, or the online version; Pass a written examination (70 per cent)

I am proud to show the public that I truly love my job and I get excited for my
buyers and sellers when they complete a transaction, just as if it were my own. I am proud to take the time to do the job right so that my clients have a great transaction with no complications. This gives me a feeling of accomplishment
A NS REALTOR

CORE COMPETENCIES ...

DO YOU HAVE WHAT IT TAKES?

Self-Discipline & Self-Motivated - The ability to work independently in order to get the
job done. Real estate sales demands self-motivation, discipline and personal commitment.

Organization & Planning Abilities - The ability to organize personal affairs as well as conduct business activity in a logical, efficient manner is a necessary skill. This is useful in obtaining listings, showing properties, handling offers and conducting negotiations. Your reliability in this area is essential for success.

Ability To Relate To Clients - Each REALTOR takes their own unique personality and a
briefcase full of services offered to each client encounter. The ability to connect with prospective clients on a personal level may ultimately be the only thing that differentiates one REALTOR from the next.

Ability To Prioritize - You will need to review the goals you will establish in your business
plan. The most basic rule is that every activity you undertake should help you meet your goals. To determine the priority of an activity, consider two criteria: importance and urgency.

Professionalism - All real estate industry members must be familiar with and adhere to
all applicable federal and provincial legislation including the provincial Real Estate Trading Act. Legislation frames the standards for your basic professional responsibilities. Beyond these responsibilities, practitioners act according to their own set of personal ethics. Your personal ethics should set the highest possible standard for your conduct. This will speak to your integrity and professionalism, and may differentiate you from your competition.

Negotiation & Problem-Solving - You must handle problems quickly and credibly, particularly when negotiating an offer to purchase. In order to close a deal, you must bring sellers and buyers to a mutually acceptable and successful agreement. This is fundamental to any real estate transaction. Salespeople are routinely called upon to negotiate on behalf of a buyer or seller to arrive at agreeable terms.

Effective Oral & Written Communication Techniques - Salespeople are required to

understand, draft, and explain real estate agreements, listings, and other forms used by the profession. Real estate practitioners also play a vital role in ensuring that documents are correctly prepared and properly reflect the wishes of the parties. The ability to communicate well is a quality that successful real estate salespersons possess and value. An important part of communicating well is building rapport with clients and establishing their needs.

REALITIES ...

OF A CAREER IN REAL ESTATE

A. Expenses Involved With Becoming A Real Estate Salesperson

The cost of entering the real estate sector can be expensive. This includes the fee for the Salesperson Licensing Course, textbooks, licensing exam, license fee, and your Board (Annapolis Valley Real Estate Board if applicable) and Nova Scotia Association of REALTORS joining fees. However, you also need to take into account the additional cost and time needed to establish a practice in real estate.
Also, be aware that there are ongoing industry expenses for such things as the Multiple Listing Service (MLS), mandatory Continuing Professional Education courses, lock boxes, display keys and advertising. Other costs to be considered include vehicle operation and maintenance, telephone and paging services and photocopy/fax services. Know what to expect! Sit down and calculate all the costs involved in pursuing an education and starting a new career. Commission income represents gross earnings, which must cover your business expenses. To arrive at net income before taxes, you must deduct all relevant business expenses. Initially, you will need sufficient capital to be financially independent while you are working to establish yourself. Additional costs may include: Monthly Supplies Administration Fees Business Liability Insurance Home Office Insurance Marketing Computer Equipment Electronic Communication Devices Entertainment Personal Attire

B. Commission
Compensation for salespersons is usually based on a commission structure. Commission arrangements vary among brokerage offices. Some brokerages pay a high commission percentage but also charge a monthly services fee that must be paid regardless of whether commissions are earned. Other brokerages pay a lower split of the commission but do not charge for monthly services. Earnings may also depend upon the number of properties that are sold or listed, and can vary by area, type of property sold, and local market conditions. Because of the wide range of brokerage compensation plans and management models, new salespersons must do their homework and choose a brokerage that meets their need for services, training and mentoring.

REALITIES ...

OF A CAREER IN REAL ESTATE

(continued ...)

C. Activity-Based Business
Real estate is an activity-based business. As mentioned earlier, it is important to establish career goals, including an annual income goal. Once you have set a goal, you must decide which sales-related or prospecting activities you will undertake in order to meet this goal. Review these activities with your broker to ensure you are complying with the legislation and the brokerages policies regarding marketing and advertising. Your broker might also provide some tips to improve your plan. If you find you are falling short of your goal as the year progresses, you must be flexible and make changes to your activities and/or activity levels.

D. Prospecting
Prospecting activities vary, but some of the most common ones include: contacting people you know and asking for referrals, joining organizations and clubs, writing and delivering neighborhood newsletters, developing and distributing personal flyers, visiting ForSale-By-Owners (FSBOs), knocking on doors, and cold calling. The more prospecting activities you do, the more leads you will get and the greater your income will be. You must also be self-motivated - there wont be anyone insisting that you prospect every day. Dont expect your leads to come from anyone but you.

E. Day-to-Day Activities
There are very few typical days for most real estate practitioners. Morning routines can involve reviewing the previous days work, keeping up to date on notices from the brokerage, preparing advertisements, logging on to the MLS database, checking out new listings and sales, touring new properties for sale, and contacting prospective clients. As the day unfolds, plans turn into action. Listings are prepared and offers drafted. This is time consuming, detailed work that demands legal accuracy. Often, buyers and sellers wrestle with decision-making late into evening hours. To keep a healthy balance in your life and enough time for family and friends, you will need to plan carefully. Obtaining listings is one of the biggest day-to-day challenges. Listing a property requires a systematic, knowledgeable approach, along with perseverance and determination. At first, your listings may come from relatives, friends or business associates. As your ability and confidence gradually grow, you will make new contacts. Over time, you will enjoy a more reliable source of business through referrals and repeat customers.

REALITIES ...

OF A CAREER IN REAL ESTATE

(continued ...)

REALITIES ...

OF A CAREER IN REAL ESTATE

(continued ...)

F. Conduct and Trade Practices: Disclosures to Prospective Licensees by a Brokerage

All brokerages are required to provide the following disclosures to prospective licensees who are considering being licensed with that brokerage prior to that person making any commitment to that brokerage: A) a copy of the contract, in its entirety, the industry member would be required to sign, if any; B) all expenses the industry member would be required to pay or reimburse during the time they are licensed with that brokerage; and C) all fees, changes in commission splits, or penalties that the industry member would be responsible for when the industry members license terminates with that brokerage. D) the disclosures must be made in writing and receipt thereof acknowledged in writing, prior to engagement of the prospective industry member by the brokerage. E) a prospective industry member shall have a seven day period after execution of th contract to withdraw, without penalty, by giving written notice of the withdrawal to the brokerage. F) it is the responsibility of the brokerage to ensure that the industry member fully understands the terms of the engagement prior to entering into any written agreement. Provided your application meets the Commissions eligibility criteria, you will be issued a license.

G. Questions to Ask Your Broker

a) b) c) d) e) f) What is my commission? How does it work? How many house transactions (ends) do you expect from me? What marketing activity do I perform and what marketing activity do you perform? What training will you provide? Will I have a mentor? What expenses will I be expected to pay?

CHOICES ...

IN REAL ESTATE

Unlike other careers, this field offers a great deal of flexibility in terms of job opportunities. Through experience and continued education, real estate practitioners can qualify for, or branch out into a variety of specialties. Some of the many opportunities include:

RESIDENTIAL RESALE
Residential resale involves the trading of existing homes and is perhaps the most peopleoriented and popular of all specialties. The ability to communicate effectively and work independently must be complemented with a number of technical skills. Most people entering the profession begin with residential sales and build on this foundation when seeking other opportunities in real estate.

NEW HOME SALES

New home sales, which is somewhat similar to residential resale, typically involve selling exclusive products for one or more builders. This field demands a high level of technical knowledge concerning housing construction, ranges of models, options and available upgrades.

CONDOMINIUM SALES
Condominium sales require specialized knowledge of applicable legislation and unique ownership factors.

RECREATIONAL AND RURAL SALES

Rural and recreational sales cover property types ranging from seasonal cottages to yearround fully winterized homes. Extensive knowledge is required in areas such as planning requirements; municipal regulations, environmental legislation, and other unique restrictions that can impact these properties.

COMMERCIAL SALES AND LEASING

Commercial sales and leasing (including industrial, retail, office, and business operations) is probably the most demanding specialty field given heavy reliance on technical knowledge, investment calculations, and extremely complex transactions. Commercial sales can involve millions of dollars, lengthy negotiations, and critical closing dates.

SELF-ASSESSMENT ...

DO YOU HAVE WHAT IT TAKES TO COMPLETE THE COURSE?

The main purpose of this career booklet is to introduce you to the real estate industry and to help you make a decision about whether to proceed with a career in real estate. This section gives you three tools to help you assess your suitability a math proficiency test, a language proficiency test and a Computer Skills Assessment. Remember, while the testing approach can provide useful information, nothing can replace a frank face-to-face discussion with a person who already works in real estate! It is highly recommended that you have a solid understanding of basic mathematical skills, the English language and computer competencies. The following assessment, although not a complete or thorough evaluation, may give you an indication of the level of math, reading skills and computer competencies you will require to successfully become a REALTOR. (Note: This test is only an indication of the academic difficulty of the Salesperson Licensing Course materials. It is not a test of real estate knowledge).

Part A. Math
1. $1500 is deposited in a bank account for one year. If the annual interest rate is 11%, how much money will be in the account at the end of the year? a) $1575 b) $1635 c) $1665 d) $1755

2. A real estate salesperson earns $240 for an eight-hour day, under an hourly contract. How much does he earn in three hours? a) $45 b) $40 c) $30 d) $90

3. 187,959 rounded off to the nearest hundred is? a) 187,000 4. 0.4007 0.3908 = a) 0.99 b) 0.099 c) 0.009 d) 0.0099 b) $187,900 c) 187,920 d) 188,000

5. What is the area of this rectangular lot? a) 6 m2 c) 30 m2 b) 14 m2 d) 40 m2

10

SELF-ASSESSMENT ...
Part A. Math (continued ...)

DO YOU HAVE WHAT IT TAKES TO COMPLETE THE COURSE?

6. If your commission plus HST (13%) = $5650, your commission would be? a) 4900 b) 5000 c) 5650 d) 6000

7. If a well recovered 1.2 gallons of water after 2 minutes and later recovered the same amount in 1.5 minutes, what % did the water recovery time improve? a) 25% b) 50% c) 75% d) 100%

8. If a house priced at $238,500 is reduced 3%, the new price of the house will be? a) $166, 950 b) $214, 650 c) $237, 785 d) $231, 345

9. What is the average of 102, 68 and 7? a) 48 10. 8(2+4) (8+4) = a) 0 b) 2 c) 36 d) 10 b) 59 c) 62 d) 64

11. 75 is 125% of ____________ a) 60 12. If 5/x = .25, then x = a) 1/20 13. 16% of 3 = a) .048 b) .48 c) 4.8 d) 48 b) 4/5 c) 20 d) 25 b) 55 c) 40 d) 30

11

SELF-ASSESSMENT ...
Part B. Computer Skills

DO YOU HAVE WHAT IT TAKES TO COMPLETE THE COURSE?

Place a Y (for Yes) or N (for No) in the appropriate column below to indicate your ability to accomplish the technology objective.

12

Part B. Computer Skills (continued ...)

Review your responses. For each question to which you answered No, you should determine how to find the answer or develop the skill.

13

SELF-ASSESSMENT ...
Part C. Language

DO YOU HAVE WHAT IT TAKES TO COMPLETE THE COURSE?

First, read the statement carefully; then select the one answer that most corresponds to your understanding of the statement. Base your answer solely on the statement. 1. The real estate industry in Nova Scotia has long recognized the need for a comprehensive education program for all practitioners. The introductory course was developed as a result of that recognition. It would be a mistake, however, to leave the impression that a graduate of the introductory program is an instant real estate expert. Experience, it has been said, is the best teacher. Newcomers to the real estate business will grow in confidence as they acquire experience. However, experience can only become the best teacher when the experience includes the acquisition of knowledge in a more formal way. From the preceding, we can conclude: a) Confidence in ones ability leads to acquisition of knowledge b) The graduate of the introductory course has been through a comprehensive education program c) The acquisition of experience is part of the learning process d) Experience, only when combined with the introductory course, makes the graduate an expert

2.The compensation of salespersons is a problem that must be faced and solved on a mutually satisfactory basis if the broker expects to stay in business with the help of a sales force. Policies and methods of compensating salespersons vary widely throughout the province and even within a local area. Much depends upon specialization, competition between brokerage firms to attract and hold good salespersons, the business philosophy of the broker and the personal relationship between the broker and the sales staff. Therefore, it can be said that compensation of salespersons: a) Is determined by mutual agreement amongst brokers b) Depends on many variables c) Is solved by competition d) Is what allows a broker to stay in business

3.Fee simple estate is the most extensive estate or quality of land ownership. The rights of ownership are most extensive and the limitations are the smallest of any estate in land. Based solely on the above, which of the following statements is true? a) Fee simple estate implies a large amount of land b) Fee simple provides the owner with the greatest value of land to him/her c) Someone who has extensive quantity of land has virtually unlimited ownership d) Fee simple estate implies ownership with the fewest restrictions

14

SELF-ASSESSMENT ...

DO YOU HAVE WHAT IT TAKES TO COMPLETE THE COURSE?

Part C. Language (continued ...)

4.It is part of the salespersons function to qualify every prospect by gathering information as to the prospects needs, wants and ability to pay. It may not be possible to fulfill both the needs and wants in light of the third factor, so one thing the salesperson does is help the prospective buyer sort out their priorities. Which of the following statements best reflects the true meaning of the above? a) One function of a salesperson is to find prospects with priorities as to needs, wants and ability to pay. b) Salespersons should determine what buyers needs/wants are in relation to the ability to pay. c) Needs and wants are not the same, but come before ability to pay. d) By sorting out priorities, a salesperson determines which prospects are the best candidates to actually purchase a home.

5. Each parcel of real estate is unique. None is perfect. Its desirability may be affected by some adverse land use nearby. It could be a little too old. It could be too big or too small. It may not be in the path of development. The design may not suit your taste. There are some construction mistakes that could easily be prevented. In other words, each parcel of real estate: a) Is unique because of nearby land use; b) While not perfect, is desirable as long as it is not too old; c) While not perfect, has its own characteristic that makes it unique; d) Is desirable provided it is not in the path of development.

* Answers to all questions located on last page of booklet.

15

BUSINESS PLAN ...

WHAT YOU SHOULD CONSIDER

A real estate business plan determines your choice of brokerage, budget, sources of working capital, equipment and office setup, financial record system, marketing plan, and whether you will work on your own or with someone. The following are areas that every business person should consider before going into a real estate career:

A. BUSINESS PROFILE
What product or service will you provide? Common areas of specialization include residential resale, condominiums, new home sales, rural, commercial sale and lease, business brokerage, property management, seller broker age or buyer brokerage. Learn a little bit about each area. Practice in the area(s) in which you have experience. Otherwise, further your education and experience to gain the knowledge you need. Consider joining a brokerage specializing in that area to provide you additional guidance. How large is the market? Who are your prospective clients and major competitors? What share of the market will be yours? Why will prospects prefer your product or service to that of your competitors? The best way to arrive at the answers is to conduct a market study. This involves compiling detailed market information to determine your market niche and the revenue you can anticipate. A market study includes a map and overview of the service area, competitor overview, market penetration information, and so on. What is your mission statement? A mission statement is a concise declaration of your businesss overall purposes and direction. It should embody and promote your business values and, at the same time, provide a central reference point for the develop ment of specific operating objectives. Your vision and mission statement should address what your goals are and how you plan to achieve these goals. How will economic, political, social, technological and environmental factors affect your business? What are your business strengths and weaknesses?

(Real Estate is) a profession where I can set guidelines, accomplishments in sales, help my clients obtain their dream, each day is different. A NS REALTOR

16

BUSINESS PLAN ...

B. FINANCING NEEDS

WHAT YOU SHOULD CONSIDER

(continued ...)

Will you need to borrow money? Determine how much money you will need and research sources of working capital. Sources of funding include personal financial resources, institutional financing, and outside sources, such as partners, investors, family shares, cooperatives and syndicates. What will your loan or line of credit be used for? How will you repay your loan or line of credit? What are your insurance needs? What major business purchases will you be making? How do you plan to fund your business to support future growth?

C. FINANCIAL SYSTEMS
Which accounting system or software will you use? You may need advice from an accountant to choose the ongoing financial reporting system that presents your financial data in ways that are most useful to you. Accountants can also provide instruction in proper budgeting and forecasting techniques. Every month, the budget should be compared to actual performance. What is your contingency plan if you experience negative cash flow? Do you have contingency funds available? Will you cut expenses or increase revenue, or both?

D. PERSONAL FINANCIAL STATEMENTS

What are your assets, e.g., cash, savings, investments, general and business insurance, professional liability insurance, pension plan, property? What are your liabilities, e.g., loans, line of credit, credit card balances, mortgages? What is your net worth? What is your employment history?

E. BUSINESS FINANCIAL STATEMENTS

What are your current assets, e.g., cash, equipment, supplies / inventory? What are your liabilities, e.g., loans, line of credit, lease payments, taxes? What are your future income projections based on estimated sales and expenses for each quarter of the next year? What kind of cash flow will you have for the next 12 months?

F. ACCESSING SUCCESS
Do you have goals that can be used as a benchmark by which to measure success? Are your goals SMART?
S M A R T Specific Measurable Attainable Realistic Time Framed

If you choose goals that can be measured, you will be able to assess success by comparing your current status with the goals established at the beginning of the business year.

17

PLANNING ...

FINANCES, MARKETING AND TIME

The following steps will give you a realistic appreciation for the financial analysis and planning that are required for you to take on your career in real estate based on a commission income.

STEP 1
Calculate your personal balance sheet in order to determine your net worth. This will tell you what funds you have available to invest in your real estate career. It will also show you your potential for acquiring secured loans should you need them.

STEP 2
Analyze your market area for potential listing and sales income.

STEP 3
Calculate your personal expense sheet.

STEP 4
Calculate your business expense sheet.

STEP 5
Determine the minimum listing and sales activity commission to cover your personal and business expenses and income tax.

STEP 6
Create a marketing activity plan to generate the listing and sales activity required from Step 5.

STEP 7
Schedule time to perform the sales and marketing activity from Step 6.

I love real estate! When I'm talking with someone I let them know I am a REALTOR . Chances are they know someone who's going to buy or sell.

A NS REALTOR

I am a valuable service provider, assisting in the largest investment involved in some peoples lives. I am proud to have this opportunity.
A NS REALTOR

18

STEP ONE
Personal Balance Sheet
By filling out a personal balance sheet, you will be able to determine your net worth. Finding out your net worth is an important early step in the process of becoming an independent contractor because you need to find out what assets are available to you for investment in your business and to get you through the first six months of your real estate career. Statement of Financial Condition __________________ 20____

19

STEP TWO
Your Real Estate Marketing Input Sheet

Note: All figures supplied are for sample purposes only. You would need to confirm the actual figures based on your market and commission split arrangements with your broker.

20

STEP THREE
Personal Expense Worksheet

21

STEP THREE
Personal Expense Worksheet (continued ...)

22

STEP FOUR
Business Expense Worksheet

23

STEP FIVE
Business Needed To Break Even

Note: All figures supplied are for sample purposes only. You would need to confirm the actual figures based on your market and commission split arrangements. 24

STEP SIX
Real Estate Marketing Plan
The following is a typical list of marketing activities available to you to meet your financial goal.

As you gain personal experience you would soon determine the marketing activities that generate the most income for you and you could tailor your marketing plan for maximum efficiency.

25

STEP SEVEN
Weekly Prospecting Plan
The following schedule will need to be developed to support your marketing plan.

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A MATTER OF FEES
Visit the NSAR website, www.nsar-mls.ca and click on Become A REALTOR and then click on Education/Licensing for a list of current fees. The following are fees to consider: One Time Fees
SLC Exam Fee NSREC New Licensees Licensing Fee Recovery Fund Record Check NSAR Joining Fee CREA Joining Fee One Time Lockbox Charge

Annual Fees
NSAR Annual Member Fee CREA Annual Member Fee CREA Annual Adv. Campaign Fee CREA Technology Assessment Fee REIA Insurance Costs

Per Use Based Fees

Lock Box Fee MLS Fee

This is in addition to your brokerage fees.

Payment of Fees
All fees payable by new members joining the Nova Scotia Association of REALTORS must be paid at the time of obtaining membership. Personal cheque, company cheque, VISA, MasterCard, debit card and cash will be accepted.

Please note that offices may be billed only with written authorization from the Broker or Manager.
After obtaining membership and paying the above fees, all future monthly and annual fees will be billed directly to the office or the salespersons account (Halifax - Dartmouth Region ONLY). All invoices will be sent to their office and payment is due 30 days from the date of invoice. The tuition fee for the classroom and correspondence courses is payable by certified cheque, money order, brokerage cheque, cash, Visa, MasterCard or debit card. Payment in full must be received to guarantee registration.

27

OUTLINE ...
Unit 1
Session 1 Session 2

SALESPERSON LICENSING COURSE

The Real Estate Profession
A Career in Real Estate Professional Associations and Regulatory Controls

Unit 2
Session 1 Session 2

The Real Estate Market

Market Dynamics Market Value

Unit 3
Session 1 Session 2 Session 3 Session 4

Legislation
Real Estate Ownership Planning, Land Use and Taxation Real Estate Trading Other Provincial and Federal Legislation

Unit 4
Session 1 Session 2

Agency & Contract Law

Agency Relationships and Disclosures Basics of Contract Law

Unit 5
Session 1 Session 2

Mortgages & Financial Calculations

Mortgages Mortgage Financing & the Closing Process

Unit 6
Session 1 Session 2 Session 3

Property Valuation
The Appraisal Process Direct Comparison Approach Cost and Income Approaches

Unit 7
Session 1 Session 2

Construction & New Houses

House Construction New Houses

Unit 8
Session 1 Session 2

Professional Conduct
Standards, Trade Practices and Discipline Risk Management and Professionalism

Unit 9
Session 1 Session 2

Representing Buyers & Sellers

Seller Representation and The Listing Process Buyer Representation and Negotiations

Unit 10
Session 1 Session 2 Session 3 Session 4

Drafting Agreements
Drafting the Residential Resale Agreement Conditional Offers and Selected Forms Condominium Resale Agreement Tenancy Agreement

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EXAM
The licensing examinations are held on the first Friday of the month. Candidates must apply to the Nova Scotia Real Estate Commission and pay the required exam fee to register. Registration cut off is 4:00 p.m. on the Friday prior to the writing. Examinations can be written at the following locations:

Nova Scotia Real Estate Commission

Burnside 7 Scarfe Court

Access Nova Scotia

Bridgewater Kentville Yarmouth Truro Sydney 77 Dufferin Street 28 Aberdeen Street 10 Starrs Road 35 Commercial Street 380 Kings Road

Results
Examination results are available 10 days after writing. You can find out your pass/fail status by calling the Commission at 468-3511 or 1-800-390-1015. Candidates may also come into the NSREC office, with their code (provided on the exam) to pick up their actual mark. The results are mailed out as soon as they have been marked by the Commission. About 30 per cent of applicants fail the licensing examination on the first attempt. Should you fail the exam, you will have two additional opportunities to write the exam. Please visit www.nsar-mls.ca and click on Become A REALTOR and Education/Licensing for the current exam fee. The applicant may have their examination reviewed by contacting the Nova Scotia Real Estate Commission. Candidates are allotted three (3) hours to write the examination. A pass mark of 70 per cent is required in order to apply for a real estate license. If an applicant has failed to pass the exam after three attempts, and chooses to write the exam again, they must first re-take the Salesperson Licensing Course. In the event that a student has to re-take the Salesperson Licensing Course, full tuition will be charged.

29

OBTAINING A LICENSE IN REAL ESTATE

Applicants must successfully complete the required Salesperson Licensing Course and pass the exam (70 per cent minimum). The appropriate license application must be completed with the brokers recommendation and sent to the Nova Scotia Real Estate Commission (NSREC) along with the applicable license and Real Estate Recovery Fund fees. The broker must complete part of the form to confirm that, if a licence is granted, the applicant will be authorized to work for that brokerage. The Nova Scotia Association of REALTORS (NSAR) administers the Salesperson Licensing Course.

Salesperson Licensing Course

The course curriculum is designed to prepare individuals to enter the real estate profession with an acceptable level of technical knowledge, competence, and skills. The program utilizes an integrated learning design/system, which includes a Salesperson Licensing Course Workbook, Forms & Solutions Booklet, Real Estate EncyclopediaCanadian Edition, and Nova Scotia Provincial Reference Manual. The Salesperson Licensing Course Workbook consists of ten units and 25 sub-units (sessions) and is designed for either classroom or correspondence delivery (See pg. 20 for full course outline). *** It is important to note that the Salesperson Licensing Course serves to teach students about the real estate industry and provides them with a licence to practice real estate in Nova Scotia. The course DOES NOT provide students with knowledge of sales, marketing and business planning. That is why it is essential that prior to choosing real estate as a career, one must be sure that they either possess this critical sales and marketing knowledge or are willing to learn it once registered with a brokerage, in order to succeed in real estate.

Option A: Classroom Course

Courses are offered once a month at our Burnside location at 7 Scarfe Court. The course is three weeks in length and 100 per cent attendance is required. The program represents a mixture of formal instruction, self evaluation, and problem-solving. Students are frequently asked to evaluate circumstances, make suggestions, correct errors and learn important lessons in their pursuit of knowledge and skills. There will be required precourse reading as well as homework during the course.

Option B: Online Course (Coming soon)

The online version of the Salesperson Licensing Course (SLC) is highly interactive and engaging. The aim of the online SLC is to advance student learning through interactivity and discovery.

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OBTAINING A LICENSE IN REAL ESTATE (continued ...)

Option C: Correspondence Course
This same course is available to candidates through correspondence. There are three assignments that candidates will be asked to complete and submit to the NSAR Education Department for marking. The pass requirement for each assignment is 70 per cent. Students may be asked to complete additional work if their mark is below the pass requirement. Before being able to write the licensing exam, all correspondence assignments must be completed and have received a pass mark one week prior to the exam date. Students will be given six months from the registration date to complete the correspondence course.

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CONTINUING PROFESSIONAL EDUCATION

The Nova Scotia Real Estate Commission (NSREC) requires all licensees to complete nine hours of Continuing Professional Education (CPE) between July 1st and June 30th of each year to qualify for license renewal. Courses taken for credit must be a minimum of three hours, which equates to three credits. Six or more hours will receive a maximum of six credits. Licensees completing more than the minimum requirement may carry forward a maximum of three credit hours to the next licensing cycle (July 1 June 30). Should a licensee fail to complete the requirements, their license will not be renewed until proof that the requirements have been met is provided to the NSREC Registrar.

REGISTERING

WITH A BROKER

In order to receive your actual license after passing the licensing examination, candidates must be registered with a licensed real estate brokerage. We suggest contacting various companies of your choice, before or after writing the examination, to discuss working arrangements.

Licensing Procedure
Candidates are issued a certificate, which remains in effect for ninety days from your examination date. You must apply for a license through the Nova Scotia Real Estate Commission. You will need verification of successful completion of the licensing exam, the application for a salespersons license form completed by both you and your broker, and the payment for the licensing fee. You will also be required to provide a copy of your Birth Certificate and Drivers License. Once you are registered with a brokerage, you must join the Real Estate Recovery Fund, which is a protection plan for the public.

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REGISTERING
Record Check

WITH A BROKER

(continued ...)

The Nova Scotia Real Estate Commission, as part of the licensing process, checks the credit record and the criminal record of applicants. Applicants must sign authorization for this process and pay a fee. While a single incident of bankruptcy or criminal conviction may not be sufficient reason to refuse a license, such factors can affect a decision.

To register for any version of the Salesperson Licensing Course contact: Education Course Registrar
Nova Scotia Association of REALTORS 7 Scarfe Court, Ste. 100 Dartmouth, Nova Scotia, B3B 1W4 Telephone: Fax: E-mail: Website: (902) 468-2515; 1-800-344-2001 (902) 468-2533; 1-877-220-2533 education@nsar.ns.ca

www.nsar-mls.ca

All my clients have thanked me for my help in buying and selling their homes. They felt I did a good job and I am proud of that.
A NS REALTOR

Being a REALTOR

allows me to participate in one of the most important moments in a persons life, it allows me to protect these peoples interests, and be a person in their life that they remember as a confidant.
A NS REALTOR

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SELF-ASSESSMENT ANSWERS

Part A
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. C D D D D B A D B C A C B

Part C
1. 2. 3. 4. 5. C A D D D

If you had two or more questions wrong in either section, you may wish to consider additional training in English or mathematical skills before proceeding with the Salesperson Licensing Course. There is a Math Primer issued with the Salesperson Licensing Course. If you scored well (less than two questions wrong in either section), this is an indication that you may possess the academic skills to comprehend the course material.

7 Scarfe Court Dartmouth, Nova Scotia B3B 1W4 Phone 902.468.2515 or 1.800.344.2001 Fax 902.468.2533 or 1.877.220.2533 www.nsar.ca
SEPTEMBER 2008

Member Canadian Real Estate Association