Updated over 4 years ago on . Most recent reply
REALTOR® VS. REAL ESTATE AGENT VS. BROKER
What's the difference?
This is going to be a short blog; the explanation is very simple and sweet. In the Real estate industry, we run into tons of new acronyms and words that sound similar and confusing. There is also some confusion, when it comes to certain professional roles. I am here to put that confusion to rest and differentiate the words REALTOR®, Real Estate Agent, and Broker.
First, I will start with the difference between a REALTOR® and a Real Estate Agent. To start, a REALTOR® is a trademark term that refers to members of the National Association of Realtors. Not all Realtors are licensed. There are options for non-licensed people to join the NAR. The NAR is responsible for creating and improving ways to own, buy, and sell real property. It's a voluntary membership, which you must pay a fee to join. In order to join, you must take (and pass) a code of ethics course and the exam, along with an orientation course and exam. Let me know if you want me to dig into deeper detail in regard to the NAR.
Next, Real Estate Agent. An agent is someone who took and passed the pre-licensing exam, the state exam and paid for licensure. Once you become licensed, you are NOT automatically a REALTOR®, you still need to take the courses and exams and pay the fee to become a member.
Lastly, Real Estate Broker. Brokers have taken their education beyond agent level. A Real Estate Broker is someone who has been licensed as a real estate agent for at least five years and worked actively as an agent for three of the five years. A broker has also taken the brokers licensing exam. A broker’s role is to take responsibility for his/her subordinate agents’ actions.
Conclusively, I admit that real estate terminology can be overwhelming and confusing. Upon taking my pre-licensing course, I realized how much information I did not know. I am glad to finally be at the point to where I am able to lend a helping hand and help others understand the terminology. If you have any questions in regard to real estate or investments, call or email me! Find me on social media and let me know if there is anything specific you want me to discuss. Talk to you soon!