Real Estate Brokers

Real Estate Broker is a person who arranges the purchase or sale of property for a buyer or seller in return for a commission. Brokers may help arrange financing of the purchase through contacts with banks, savings and loans, and mortgage bankers. Brokers must be licensed by the state to buy or sell real estate.

Real Estate Agents have been licensed by their state to help people buy and sell property. Typically, agents are required to complete courses in real estate, including coursework in real estate law, real estate financing and listing.

Real-estate agents are the people you deal with face to face when buying or selling property. These are the people on the front lines of the real-estate market and perform such tasks (amongst others) as showing homes to perspective buyers and negotiating transactions on behalf of their client. Real-estate agents often work on a 100 percent commission basis, their income dependent upon their ability to find property suitable for their clients and closing transactions.

The difference between a broker and an agent. When a person first becomes licensed to become a real estate agent, he or she obtains a real estate salesperson's license (or some states use the alternative term, "broker") from the state in which he or she will practice. To obtain a real estate license, the candidate must take specific coursework (of between 40 and 90 hours) and then pass a state exam on real estate law and practice. In order to work, salespersons must then be associated with (and act under the authority of) a real estate broker.

After gaining some years of experience in real estate sales, a salesperson may decide to become licensed as a real estate broker (or principal/qualifying broker) in order to own, manage or operate his or her own brokerage. Commonly more course work and a broker's state exam on real estate law must be passed. Upon obtaining a broker's license, a real estate agent may continue to work for another broker in a similar capacity as before (often referred to as a broker associate or associate broker) or take charge of his or her own brokerage and hire other salespersons (or broker) licensees. Becoming a branch office manager may or may not require a broker's license. Some states such as New York allow licensed attorneys to become real estate brokers without taking any exam. In some states, such as Colorado, there are no "salespeople," as all licensees are brokers.

Subagent is an agent who works with you to purchase a house but is paid by the seller. Sub agency is an implied contract between the listing agent and other agents who show or otherwise participate in the marketing of that listing. Subagents must also represent the best interests of the seller even though they are working with a buyer to identify suitable properties, but not under contract to that buyer.

Realtor®. Registered trade name that can be used only by members of state and local real estate boards affiliated with the National Association of Realtors (NAR). Realtors are trained and licensed to assist clients in the purchase and/or sale of their properties. Realtors must follow a strict code of ethics and receive ongoing training from the NAR. All Realtors are brokers/salespersons, but not all brokers/salespersons are Realtors.