Applicants must submit a portfolio that substantiates specific levels of volume achieved in land sales or in providing real estate services related to land.
Definition of Land Transaction: The value of the land, including improvements that are agricultural in nature, must account for at least 51% of the total sale of the transaction in order for the transaction to be eligible. Agricultural improvements include, but are not limited to, barns, livestock operations, equine facilities, etc. All transactions submitted in a portfolio, including residential transactions, must meet the land definition criteria.
Timeline for Transactions: Transactions must have been completed no more than five years prior to the submission of the ALC portfolio, unless otherwise noted in specific specialty categories below.
Residential Definition: For the purpose of the ALC portfolio, a residential transaction is defined as a single-family parcel with at least five acres. The 51% rule on land value still applies.
Volume Calculations: For volume calculations in the Sales, Auctioneer, and Broker Management categories, the buyer side is equal to the full sales volume, the seller side is equal to the full sales volume, and if one agent represents both sides, you may double the volume of the transaction for the purpose of fulfilling the volume requirements. If one side is unrepresented, you must clearly explain how you assisted both sides in order to claim double the volume of the transaction. For example, if John Doe is the listing agent on a $1 million-dollar sale, count $1 million; for the buyer side, count $1 million for the seller side; and if one agent represents both sides (or clearly explains how they assisted both sides if one side is unrepresented), count $2 million for the purpose of fulfilling the transaction requirement.
Limitation on Personal and Family Dealings: No more than 20% of the transactions submitted in an ALC portfolio may be personal or immediate family dealings (meaning any transaction that requires disclosure in the state in which the transaction occurred.)
Transaction Supporting Documentation: Applicants must verify their participation in each transaction by either submitting a title/closing company verification as outlined in the Transaction Narrative Form or two forms of supporting documentation per transaction, which may include, but is not limited to:
- A redacted HUD-1 closing statement with buyer’s/seller’s proprietary information removed
- Proof of commission payment or verification of commission paid
- MLS closing statement
- Copy of executed contract or lease with all proprietary information redacted
- Recorded and signed deeds
Variance Request Form: Land is different all across the country. As such, it is difficult to create hard rules that apply to all. The Request for Variance from ALC Designation Criteria form is to be used BEFORE an ALC application is submitted to request a variance in the ALC Designation rules and criteria stated below.
Please note: Variance Requests may only be submitted by applicants who have held a real estate license for at least five years. The rationale is that RLI allows applicants to submit transactions within the last five years before the date of their application. Therefore, it does not make sense to request a variance from the rules if the applicant has not given themselves at least five years to achieve the requirements within the existing rules.
Specific Requirements for Qualifying Categories
Sales, Brokerage, Development, Consulting, Investing
The portfolio must substantiate that the applicant’s participation and material involvement as a broker, agent, consultant, Investor/Developer or employee directly resulted in at least five closed land transactions totaling $15 million, or 25 separate land transactions. For applicants submitting 25 transactions, no more than 20% of transactions submitted may be from one residential development/subdivision/project and if one buyer closes multiple parcels with the same seller on one closing statement on the same day, those transactions are counted as one transaction for the purpose of the ALC portfolio.
Appraisers
Appraiser applicants must be a licensed state certified general appraiser and submit a portfolio substantiating at least 30 land appraisals/valuations in the previous three-year period totaling at least $15 million. For each appraisal submitted, the appraiser applicant must submit an appraisal narrative form with supporting documentation.
Farm or Forestry Managers
Farm or forestry managers must submit a portfolio that substantiates proof of a minimum of 30 management agreements, timber sales agreements, active leases, or combination thereof, within the five years prior to applying.