What is a real estate agent? The difference between real estate salespersons, brokers, & Realtors

Summary

This video clarifies the distinctions among real estate professionals: agents, brokers, and realtors. A real estate agent is a licensed individual who works under a broker, facilitating transactions but cannot operate independently. Brokers have more advanced licenses, allowing them to manage agents or work solo. Realtors are agents or brokers who are members of the National Association of Realtors, adhering to a strict code of ethics. Understanding these roles is essential for effective communication in the real estate field, benefiting both professionals and clients seeking knowledgeable representation.

Takeaways

• 😀 Understanding terminology is crucial: Real estate agent, broker, and realtor have distinct meanings.
• 🏠 A real estate agent is a licensed professional who works under a broker to facilitate transactions.
• 📜 Passing the real estate exam allows you to become a licensed agent, but does not make you a realtor.
• 🤝 Realtors are members of the National Association of Realtors (NAR) and must adhere to their ethical standards.
• 💼 The term 'realtor' is often misused as a generic term for all real estate agents.
• 🔍 Realtors promise to operate with transparency, honesty, and integrity in their business dealings.
• 📈 Agents receive compensation from the brokerage, and it’s illegal for them to accept payment from other sources.
• 🧩 Brokers can operate independently or oversee agents, carrying more responsibility and stricter licensing requirements.
• 💡 Real estate professionals should be experts in their field to gain public confidence.
• 📚 For more information on preparing for the real estate exam, visit prepagent.com.

Q & A

What is the primary difference between a real estate agent and a realtor?

A real estate agent is a licensed professional who helps with transactions, while a realtor is a member of the National Association of Realtors and adheres to a strict code of ethics.

Can anyone call themselves a realtor?

No, only those who are members of the National Association of Realtors can use the title 'realtor.'

What are the licensing requirements for becoming a real estate agent?

To become a real estate agent, one must complete required real estate classes and pass a licensing exam in their state.

What role does a broker play in real estate transactions?

A broker is responsible for overseeing real estate agents and is legally accountable for their actions. They can work independently or manage a team of agents.

What happens when a real estate agent gets a listing?

The listing agreement is between the seller and the brokerage's principal broker, not directly with the agent.

Is it legal for real estate agents to accept payment directly from clients?

No, it is illegal for agents to receive payment directly from clients; all payments must go through their employing broker.

How does the public typically use the term 'realtor'?

The public often uses 'realtor' as a generic term for any real estate agent, though this is technically incorrect.

What are the ethical expectations for realtors?

Realtors are expected to operate with transparency, honesty, and integrity, always prioritizing the best interests of their clients.

What distinguishes a broker from an agent in terms of qualifications?

Brokers have more stringent licensing requirements than agents, which allows them to work independently and supervise agents.

Why might a client prefer to work with a realtor over a non-realtor agent?

Clients may feel more confident working with a realtor due to their commitment to ethical practices and adherence to a professional code.