What is the difference between a Broker and a Realtor?
REAL ESTATE BROKER
A real estate broker is someone who has taken education beyond the agent level as required by state laws and passed a broker’s license exam.
Similar to real estate agent exams, each state sets its own broker education and exam requirements. The extra coursework covers topics such as ethics, contracts, taxes, and insurance—at a more in-depth level than what’s taught in a real estate pre-licensing course.
Prospective brokers also learn about real estate legal issues and how the law applies to operating a brokerage, real estate investments, construction, and property management.
To sit for the broker’s exam and obtain licensure, real estate agents must already have a certain level of experience under their belt—typically, four years as licensed real estate agent with the prior two years being full time.
A real estate broker is someone who has taken education beyond the agent level as required by state laws and passed a broker’s license exam.
Similar to real estate agent exams, each state sets its own broker education and exam requirements. The extra coursework covers topics such as ethics, contracts, taxes, and insurance—at a more in-depth level than what’s taught in a real estate pre-licensing course.
Prospective brokers also learn about real estate legal issues and how the law applies to operating a brokerage, real estate investments, construction, and property management.
To sit for the broker’s exam and obtain licensure, real estate agents must already have a certain level of experience under their belt—typically, four years as licensed real estate agent with the prior two years being full time.
THE 3 TYPES OF BROKERS
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PRINCIPAL / DESIGNATED BROKER
Each real estate office has a principal/designated broker. This person oversees all licensed real estate agents at the firm and ensures that agents are operating in compliance with state and national real estate law. |
MANAGING BROKER
This person oversees the day-to-day operation and transactions of the office and typically takes a hands-on approach to hiring agents, training new agents, and managing administrative staff. (Some principal/designated brokers also serve as managing brokers.) |
ASSOCIATE BROKER (Stephen's Title)
This real estate professional—sometimes called a broker-associate, broker-salesperson, or affiliate broker—has a broker’s license but is working under a managing broker. This person typically is not responsible for supervising other agents. |
REALTOR®
In order to become a Realtor®—a licensed agent with the ability to use that widely respected title—an agent needs to be a member of the National Association of Realtors® (NAR). NAR is America’s largest trade association, representing 1.3 million members. Members of the National Association of Realtors® are also members of the California Association of Realtors® (CAR). Both of these organizations aim to preserve, protect, and advance the right to real property for all. As a result, they are involved in many issues which affect property ownership and rights. As a member, a person subscribes to the standards of the association and its code of ethics.
In order to become a Realtor®—a licensed agent with the ability to use that widely respected title—an agent needs to be a member of the National Association of Realtors® (NAR). NAR is America’s largest trade association, representing 1.3 million members. Members of the National Association of Realtors® are also members of the California Association of Realtors® (CAR). Both of these organizations aim to preserve, protect, and advance the right to real property for all. As a result, they are involved in many issues which affect property ownership and rights. As a member, a person subscribes to the standards of the association and its code of ethics.
REAL ESTATE SALESPERSON
A real estate salesperson is someone who has taken the minimum education required by state laws and passed a real estate salesperson license exam. You do not have to be a Realtor® to be a real estate agent. Salespersons and Realtors® both need to be employed by, and work under the supervision of a licensed broker.
A real estate salesperson is someone who has taken the minimum education required by state laws and passed a real estate salesperson license exam. You do not have to be a Realtor® to be a real estate agent. Salespersons and Realtors® both need to be employed by, and work under the supervision of a licensed broker.
