Real Estate Titles Explained: Agent, Broker, REALTOR®

If you’re entering the real estate market for the first time, you may find real estate professionals’ various titles a little confusing. Sometimes consumers use these titles interchangeably, but there are some important differences between the roles of the various professionals, as well as different requirements for using particular titles.

The real estate profession is regulated by state governments, which have different requirements for earning a license. In general, though, the titles you may come across include:

• Real estate agent: Anyone who earns a real estate license can be called a real estate agent, whether that license is as a sales professional, an associate broker or a broker. State requirements vary, but in all states you must take a minimum number of classes and pass a test to earn your license.
• REALTOR®: A real estate agent who is a member of the National Association of REALTORS®, which means that he or she must uphold the standards of the association and its code of ethics.
• Real estate broker: A person who has taken education beyond the agent level as required by state laws and has passed a broker’s license exam. Brokers can work alone or they can hire agents to work for them.
• Real estate salesperson: Another name for a real estate agent.
• Real estate associate broker: Someone who has taken additional education classes and earned a broker’s license but chooses to work under the management of a broker.

Working With a Real Estate Professional

While you are more likely to work directly with a real estate salesperson or an associate broker, some brokers provide services for buyers and sellers themselves. If you have hired a real estate agent to help you buy or sell a home, that agent typically reports to a broker. The broker handles the earnest money deposit and establishes the escrow account.

In addition, the broker bears responsibility for the actions of the real estate agents under his or her supervision. While the majority of real estate transactions go through without any glitches, a broker will step in if there are any problems with your home purchase or sale.

If you are unhappy with your real estate agent and cannot resolve the issues directly, your next step should be to talk with the broker to ask for help and perhaps another agent for you to consult.

Experience and Education

Real estate brokers not only have higher education requirements than real estate salespersons, they also must have experience working as an agent. For example, in Florida the license requirements are as follows:

Real Estate Associate Requirements for licensure in the State of Florida

1. Successfully complete a FREC-approved pre-licensing course for sales associates consisting of 63 classroom-hours and covering the topics required by the FREC. The course is valid for licensure purposes for 2 years after the course completion date. Licensees with a permanent physical disability, as defined by FREC Rule 61J2-3.013(2), may qualify for a correspondence pre-licensing course if unable, due to a permanent physical disability, to attend the site where the course is conducted.
2. Submit a completed application, electronic fingerprints, and appropriate fee.
3. Pass the Florida Real Estate Sales Associate Examination with a grade of at least 75 or pass the Florida Real Estate Law Exam with a grade of at least 30.
4. Activate the license, otherwise the license is issued in an inactive status. This can be done using the DBPR RE 11-Become Active - Sales Associate or Broker Sales Associate form. Alternatively, once the new license number is issued, the broker can activate the sales associate using the broker's online account.
5. Whether holding an active or inactive license, successfully complete a FREC-approved post-licensing course for sales associate consisting of at least 45 classroom-hours, prior to the expiration of the initial sales associate license.

Real Estate Broker Requirements for licensure in the State of Florida

1. Hold an active real estate sales associate license and complete 24 months (effective 7/1/08) real estate experience during the 5 year period preceding becoming licensed as a broker or a licensed real estate sales associate or broker who has real estate experience in another state may apply the experience toward a Florida real estate broker license if the applicant has held an active sales associate or a valid broker license for at least 24 months during the preceding 5 years. If the applicant is claiming experience from a jurisdiction other than Florida, attach to the application a current certification of real estate license history (not more than 30 days old) from the licensing agency of that jurisdiction. The real estate license must have been obtained from the real estate licensing authority by completing its education and examination requirements. NOTE: If the applicant holds a Florida real estate sales associate license (s)he must fulfill the sales associate post-licensing education requirement before being eligible to obtain a broker license. This method does not exempt a sales associate who holds a Florida sales associate license from successfully completing the sales associate post-licensing course.
2. Successfully complete a FREC approved pre-licensing course for brokers consisting of 72 classroom hours and covering the topics required by the FREC. The course is valid for licensure purposes for two years after the course completion date. Applicants with a permanent physical disability, as defined by FREC Rule 61J2-3.013(2), may qualify for a correspondence pre-licensing course if unable, due to a permanent physical disability, to attend the site where the course is conducted.
3. Submit a completed application, electronic fingerprints, and appropriate fee.
4. Pass the Florida Real Estate Broker Examination with a grade of at least 75.
5. Submit a completed DBPR RE 13 Broker Transactions form to activate the license, otherwise the license is issued in an inactive status.
6. Successfully complete a FREC-approved post-licensing course for brokers consisting of at least 60 classroom hours prior to the expiration of the initial broker license.

Whether holding an active or inactive license, successfully complete a FREC-approved post-licensing course for sales associate consisting of at least 45 classroom-hours, prior to the expiration of the initial sales associate license. When you are looking for a real estate professional, it is wise to work with a member of the National Association of REALTORS® who is committed to maintaining the professionalism of the real estate business. You can choose to work with a salesperson or a broker, but in any case you should take the time to interview your agent and ask for references.

If you want to work with someone new to the profession, you may want to ask to meet the broker as well so you can feel comfortable that someone with experience will be representing your interests.

Source: http://www.realtor.com/advice/buy/whats-difference...