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    Why this matters: Watch our new mini-series to understand how recessions impact broker and agent licensing. Remember, never let a good recession go to waste.

    A recession is an ideal time for agents to learn quickly about real estate. During these times, owners face reduced profits due to buyer scrutiny, forcing experienced agents to provide detailed explanations to new ones. This leads to a thoughtful orchestration of economic fundamentals involving owners, buyers, tenants, local governments, and service providers like mortgage loan originators and escrow officers.

    Recovery periods, on the other hand, are marked by personal tension fading, exactness in transactions decreasing, and a lack of information and advice for consumers. Transaction volume increases, but so does the risk of misconduct by agents. In contrast, recessions position talented new licensees to excel during recovery phases.

    To become licensed, aspiring agents must pass the state exam after completing three DRE-approved courses. Once licensed, they represent their broker in real estate transactions, generating fees for services like leasing and property management. Employing brokers are responsible for supervising their agents, as neglect can lead to DRE licensing sanctions.

    During recessions, astute brokers step up supervision and oversight to prevent risky conduct by their staff. This effort mitigates risks commonly associated with liability in a recession. In contrast, misconduct by agents is more frequent during recovery periods but often neutralized due to increasing property values.