Brokers, Realtors and Real Estate agents are often confused. The distinction is an important one.
All three designations are required to be licensed by their respective State of licensing. This post will be specific to the State of Texas as each state may have different requirements.
A Broker may own a Brokerage firm and sponsor both real estate agents and Realtors within their firm. The Broker oversees the work of their sponsored agents and Realtors and is ultimately responsible for their actions. They typically carry Errors and Omissions insurance in the case of negligence or misrepresentation by agents and Realtors. A Broker is required to have more training and pass more stringent testing of their knowledge base as well as provide evidence that they have not committed acts unbecoming of their position. They are held to a higher standard and usually handle the more technical aspects of a transaction. They are bound by a code of ethics, and must be experts in their fields and provide advice and direction to their agents and Realtors and clients.
Real estate agent is an industry professional who serves as the facilitator of real estate transactions. They are ultimately responsible to bring buyers and sellers together and are paid a commission which is usually a percentage of the sale price. They report directly to their sponsoring Broker.
Realtor, refers to a real estate agent that is also a member of the realtors’ association. They too report directly to their sponsoring Broker.
This is a brief summary of the differences. Should you need more information, please contact my office.
Now that you know some of the key differences, read on to find out what each professional does, their qualifications, and their place in the real estate industry.