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Real Estate License Renew

Importance of Background Checks to Renew Real Estate License

It takes a lot of skill, studying and time to obtain a real estate license and become a realtor. This dedication and effort is also spent when it comes time to renew your license. Each state has different rules when it comes to their real estate licenses; for instance, licenses distributed in California are valid for four years before they need to be renewed. While renewing a license is relatively easy, there is also another important step that must be done before it can be totally renewed: a background check. While background checks are performed prior to issuing a real estate license in the first place, they are equally as vital when it comes time to renew them. These are just some of the reasons that background checks are such an important part of the renewal process.

Reasons for background check

  • Determine Quality of Character– Just about every background check is used as a means of judging someone’s character either by checking financial history, arrest records or other pertinent information. It only makes sense that you want the person in charge of selling your home or finding you a new one to be an upstanding citizen that you can count on and trust. There are of course background checks conducted prior to even receiving the license but continued dependency on background checks will encourage good behavior and prevent real estate agents from any dishonest tendencies.
  • Protect Home Owners– Considering real estate agents are in control of a huge amount of money and their clients’ home, it’s important to keep them honest for the sake of protecting these home owners. Some states have even adopted background checks as part of the renewal process requiring it every two years, citing homeowners’ protection as the primary reason for doing so.
  • Protect the Company and Employees– There’s a reason so many companies run background checks either during the hiring process or during the tenure of an employee: they work. Protecting the name of your company and the employees that work with you is extremely important to a long lasting business and when it comes to real estate agents, a tight knit group will help work wonders for an agency so utilizing regular background checks during the license renewal process will help bring to the surface any potentially harmful behavior or employees.
  • They Save You Money– Any issues with employees that lead to allegations of harassment are hard on a company and legal action taken leads to high expenses. Factor in the cost of any and all training needed and vacation or break time and it’s clear that knowing who you can count on and trust is valuable for far more than just one reason.
  • Limit and Prevent Fraud or Misconduct– Background checks tend to dig up tons of information both good and bad, accessing an entire life’s worth of moments and instances. As such, requiring a background check before renewing a real estate license is completed is a great way to make sure that the real estate agent is honest and trustworthy. Fraud and misconduct can take buying a home from being a couple’s dream to their worst nightmare in the event something goes wrong or is done improperly. Reducing the chances of this or removing them altogether by background checking each real estate agent every time they need to renew their license will help ensure that only quality real estate agents are working and handling such important aspects of a person’s finances and life.

Online Background Checking

In conclusion

You may not realize just how much power a real estate agent has when it comes to your home and money, when trying to sell or buy a home you depend on them to be open, honest and helpful as much as possible and any discrepancy can cause large issues that take years to recover from. By utilizing background checks during the real estate license renewal process, homeowners are being better protected and real estate agencies and employees are able to focus on doing their job and not worrying about any incidents or misconducts. While not a law in every state quite yet, background checks are an important part of the real estate license renewal process and can make a world of difference for potential homeowners.

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Gavin Muirhead

Gavin Muirhead has been involved in developing products for background checks and improving online experiences in the background screening industry since 2012. He is the lead author and editor of Affordable Background Checks.