NEWTOWN SQUARE PA – Panic has officially set in.
Only seven days remain before the Pennsylvania State Real Estate Commission‘s May 31 (2010; Monday) license renewal deadline arrives at midnight. That’s when all salesperson, associate broker, and broker licenses must be renewed, or they will automatically be swept into escrow.
An escrowed license effectively prohibits practice of the profession until it is reinstated. If you rely on the sale of real estate in Pennsylvania for your livelihood, it becomes imperative to complete required continuing education (CE) and renew your license before the deadline. Therein lies the panic.
Sources estimate that a substantial portion of the state’s more than 40,000 real estate licensees – some think the number is as high as 20 percent – have not yet renewed.
- Of those, a majority simply waited or were delayed until the last minute. Every straggler has a different reason, and many are valid. Their chief worry, however, is uniform: “What do you have left?” for CE, they call to ask.
A limited number of seats in classroom courses remain at Polley Associates’ four suburban Philadelphia locations. Of course, online CE courses with 24-7 accessibility are very popular now.
- Also of those, some licensees plan to renew, but not immediately. Given the recession and the decline of the housing market, business hasn’t been as good for them as it once was. They may be conducting only a transaction or two a year. They’re in no hurry to spend money for biennial CE, and more money for their two-year license. The state’s generous escrow policy – a license can stay inactive for up to five years – allows them to respond at their leisure.
They need to be aware, though, that the state will fine them $5 monthly, or $60 a year, for every month their license is in escrow without notifying the Real Estate Commission of their intent to deactivate it. The notice of intent to escrow must be in writing; sending it by certified mail is a good idea.
Be aware, too, that it will take time – figure a couple of weeks or more – to retrieve a license from escrow. Can you afford, in the interim, to let commission-producing deals pass by?
- And of those, a certain (and smaller) portion have no plans to renew at all … probably for the same reasons as those who will wait. Maybe they’re no longer interested in real estate. Maybe it’s no longer as easy or as profitable as they thought it would be.
That’s a shame, because active salespeople who work the business daily report they now see markets coming back. Mortgage rates are slowly declining, they are getting more inquiries about available inventory, and more potential sellers are asking about their services. In short, it’s NOT time to quit; it’s time to DIG IN!
Got an at-the-deadline continuing education need or question? Hey, that’s why we’re here! Call Polley toll free from Eastern Pennsylvania at 800-220-2789, or from Western Pennsylvania at 800-248-3004.
Filed under: Business, Continuing Education, Law, Polley Associates, Real Estate, Real Estate Commission
