Real Estate Titles Explained:
Agent, Broker, or REALTOR® What is the difference?
If you’re entering the real estate market for the first time, you may find real estate professionals’ various titles a little confusing. Sometimes consumers use these titles interchangeably, but there are some important differences between the roles of the various professionals, as well as different requirements for using particular titles.
Titles for Real Estate Professionals - The real estate profession is regulated by state governments, which have different requirements for earning a license. In general, though, the titles you may come across include:
Real estate agent: Anyone who earns a real estate license can be called a real estate agent, whether that license is as a sales professional, an associate broker or a broker. State requirements vary, but in all states you must take a minimum number of classes and pass a test to earn your license.
REALTOR®: A real estate agent who is a member of the National Association of REALTORS®, which means that he or she must uphold the standards of the association and its code of ethics.
Real estate broker: A person who has taken education beyond the agent level as required by state laws and has passed a broker’s license exam. Brokers can work alone or they can hire agents to work for them.
Real estate salesperson: Another name for a real estate agent.
Real estate associate broker: Someone who has taken additional education classes and earned a broker’s license but chooses to work under the management of a broker.
Working With a Real Estate Professional - While you are more likely to work directly with a real estate salesperson or an associate broker, some brokers provide services for buyers and sellers themselves. If you have hired a real estate agent to help you buy or sell a home, that agent reports to a broker. The broker handles the earnest money deposit and establishes the escrow account. In addition, the broker bears responsibility for the actions of the real estate agents under his or her supervision. While the majority of real estate transactions go through without any glitches, a broker will step in if there are any problems with your home purchase or sale.
Experience and Education - Real estate brokers not only have higher education requirements than real estate salespersons, they also must have experience working as an agent. For example, in Georgia the license requirements are as follows:
A salesperson must take 75 hours of classes and pass the Salesperson Pre-license Course at a school approved by the Georgia Real Estate Commission and successfully passes the salesperson licensing examination administered by AMP and approved by the Commission.
A Broker must take an additional 60 hours of broker-specific classes, pass the Salesperson Pre-license Course at a school approved by the Georgia Real Estate Commission and successfully passes the broker licensing examination administered by AMP and approved by the Commission and have an active salesperson license for at least 36 months.
When you are looking for a real estate professional, it is wise to work with a member of the National Association of REALTORS® who is committed to maintaining the professionalism of the real estate business.