Real Estate Agents and Business Brokers Battle it out in Nevada

Nevada is the first state to issue a special license for business brokers in addition to having a real estate license, but the effort is running into trouble.

Most states require business brokers to possess a real estate license in order to sell businesses.  (For larger businesses the issue gets a little murky, and M&A advisors either need a real estate license and/or a SEC license to sell stock.)  In some ways it doesn’t make much sense, because selling real estate is very different from selling businesses.  In fact, I remember taking the real estate exam, and there really wasn’t much on it that applied to selling businesses.

So it makes sense to have a separate license for brokers, although it is such a small industry compared to real estate I suppose that is why it hasn’t happened before.  However last year, Nevada brokers were able to implement a separate license (requiring you to sit for a separate exam) that has to be held in addition to a real estate license. 

But the two disciplines do mix, don’t they?  Most businesses own or lease real estate, and in some cases the real estate is worth more than the business.  In addition, in this down market many real estate agents are looking to get into business brokerage, for obvious reasons. 

I’ve heard through the grapevine that real estate agents have complained about not being able to sell businesses, and in the following article, it seems like the Nevada division of real estate is not enforcing the new broker’s licensing.

Las Vegas Business Press Article

It will be interesting to see how this turns out.  I know other broker organizations from many states are also watching.