Differences between Real Estate Agents, Brokers, and Brokers Associates

There are many types of real estate terms, such as real estate agent, associate, consultant, or  REALTOR, broker and broker associate.

What do they all mean? 

A real estate broker generally has more education than an agent, but not always.   A real estate broker must be 18 years of age and must reside in Massachusetts at least  one year prior to the issuance of the license.  The applicant needs to submit proof of having been actively affiliated with a Massachusetts real estate broker as a salesperson for at least one year.  The broker is required to take 30 hours of approved broker real estate courses before taking the broker exam.

A real estate broker can work independently or hire real estate agents.  The broker's exam is generally longer and more  difficult than a salesperson's exam.  Brokers are held to higher standards of knowledge.

A broker associate is  a real estate broker who works for another real estate broker.  Although the broker could work for himself, many choose to join a larger real estate network.  Some pay a flat fee to the employing broker and others earn a percentage of each transaction.

Agents are licensed salespersons.  They are not brokers.  A real estate agent must be at least 18 years old and complete 24 classroom hours of approved real estate courses by an authorized real estate school.   They must then pass the real estate exam.   A real estate agent must work for an employing broker.   They cannot work independently.  Brokers are responsible for their real estate agents' actions.

A REALTOR can be a real estate broker or agent.  It means the individual belongs to the National Association of REALTORS  (NAR), follows its extensive Code of Ethics and pays annual dues.  Not every real estate agent belongs to NAR.

A Listing Agent is a seller's agent.  They can be a real estate agent or broker and represent the seller.  These agents owe a fiduciary responsibility to the seller according to the listing agreement.

A buyer's agent works with the buyer to select a house.  Buyer's agents may require a buyer to sign a buyer's broker agreement.  This agent owes his fiduciary responsibility to the buyer.

Most agents and brokers can be listing or buyer's agents in various transactions.  Some agents may only do one or the other exclusively.

Visit us at www.agentrising.com for more information on a real estate career or our real estate school.




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