Difference Between Agent, Broker, & Realtor?
While real estate agents, brokers, and Realtors serve similar functions, learn the differences between each.
Real Estate Agent
A real estate agent is anyone who holds a real estate license. A real estate agent is licensed to help people buy and sell property. A real estate salesperson is the same as a real estate agent and these terms may be used interchangeably. Without a license an individual can represent themselves in a real estate transaction but not others.
Real estate licenses are managed at the state level. In order to obtain a real estate license, agents must complete courses and pass a state mandated examination. A real estate agent must work for an employing broker to be able to practice real estate. Agents “hang” their license under an employing broker who is responsible for the real estate agents’ work and actions.
Real Estate Broker
A real estate broker is a step above a real estate agent. A real estate broker has completed additional continuing education and passed further examination. Unlike real estate agents, brokers can run their own business and do not need to work for anyone else other than themselves. Brokers also have the option to hire other real estate agents, thus becoming the agent’s employing broker.
While the requirements to become a broker vary by state, they are lengthier and require a higher standard of knowledge than the agent licensing requirements.
Realtor
Not every real estate agent or broker is a Realtor, however all Realtors are either a broker or agent. A Realtor is any licensed agent or broker who is a member of the National Association of Realtors® (NAR). Realtors are held to a higher ethical standard than licensed agents and must adhere to a Code of Ethics. NAR members pledge to uphold the association’s code of ethics and must pay annual membership dues.
The benefits of being a REALTOR include access to property resources, databases, training opportunities, representation in NAR’s lobbying efforts, and other industry related information.
If you have questions about deciphering real estate titles, want to learn how to get your license, or want to learn how you can verify which designation an individual may hold feel free to call or text at 805.900.3000.
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