Difference Between Realtors and Brokers

Many people hear the term realtor and think that it is the same as the term real estate agent. However, you may be shocked to know that they are not and actually have very distinct differences which both home sellers and buyers should be aware of.

What is a real estate agent?
A real estate agent is someone who is the middle link between the seller and buyer. Their job description includes assisting both sellers and buyers with the entire process. For sellers they help them market the home to potential sellers while they assist buyers with finding the homes they’re searching for.

Some of the other duties they have include looking at the homes in advance, handling all the paperwork and contracts associated with the sale, advising clients of information that they might need about the process, handling the arrangement of inspections and appraisals, and being the middle man for all contacts with other individuals.

Licensing requirements for individuals vary based on the state but usually it isn’t too complicated and individuals need to complete a number of hours in the fieldwork and after completion a state exam is required in order to get licensed. The exam includes information all real estate agents should know such as the best ways to market and the laws such as the Fair Housing Laws and Real Estate Settlement Procedures Act.

Some states also have a requirement that the agents need to complete certain requirements to stay fresh on the rules and regulations each year. There is nothing set in stone so the courses and their information and the number of them required can vary between the states and also it may depend on how long the agent has been working. A real estate agent and real estate salesperson have different requirements for licensing that may have different educational requirements.

What is a realtor?
A realtor is able to do everything that a real estate agent does. They have the same education and licensing requirements but they actually belong to the National Association of Realtors and the name is trademarked by this organization. The National Association of Realtors was created in 1908 and currently over 1.3 million people are members of it across the country. The members must adhere to a strict ethical code that is limited.

This pledge is actually the major difference between a real estate agent and a realtor. The ethical code is strictly enforced on all members of the NAR. If this 17 point code is violated, they may be subject to a hefty penalty. The members of NAR are required to pay a fee each year in order to be included as a part of it.

What is a real estate broker?
Sometimes people toss the term broker around just like the term agent in real estate. Brokers can do a variety of tasks depending on the state they’re in but the general they are the same. The term broker is used to describe people who can legally practice real estate or watch over other real estate agents. Many agents are not legally allowed to practice unless under a registered real estate broker.

A real estate broker can also be considered an agent since they require licensing in order to practice. The agent acts as the agent to the broker themselves while the real estate broker is for both the buyer and seller. Depending on the state brokers may be titled as qualifying brokers and the agents are considered brokers.

A real estate agent needs a certain number of years of experience to be qualified as a broker. Brokers also have additional coursework required in order to pass the exam.

Lori English is a Los Angeles real estate agent, broker and internet business woman. As a web expert, she writes about LA homes for sale, as well as for other websites. With her experience, certificates, and degrees, she understands real estate, the internet business, and how to invest in properties.