Difference Between a Real Estate Broker and Real Estate Agent – When we talk about the real estate industry, people use the term broker and agent interchangeably. Most of us don’t understand or know the difference between a real estate broker and a real estate agent. Similarly, there are a lot of buyers who don’t know if they are working with a broker or agent – as the Ocoee Realtors suggest.
Whether you are an investor, a buyer or seller, real estate is a serious business. Hence, it is important to understand such technicalities. This will help you in hiring the right professionals, who can handle your real estate matters proficiently.
However, to assist you with that, here are the different types of brokers or agents which belong to the real estate industry.
Real Estate Agent
Real estate agents are licensed salespersons. They work for brokers as they cannot work independently. Moreover, the responsibility of an agent’s actions lies in the employing broker. According to Clermont Florida Realtors, the licensing requirements of real estate agents depend on the state. Different states have different requirements whether the agent is a state resident or not.
Real Estate Broker
Take the agent a step above and you have a broker. Typically, a broker holds more professional knowledge of the real estate business than an agent, but this is not always the case. However, a broker can run an independent real estate business and may hire agents to work with him/her.
When we talk about broker associate we refer to a broker who works with another broker. A broker associate can also work independently but they usually work with a large network of real estate, hence known as a broker associate. An associate broker earns in two distinct ways: either they get a fee from the employing broker or they may choose to receive a fixed percentage for every completed transaction.
An agent who represents both the seller and buyer is called a dual agent. An agency may also be called dual agency when both the buyer and seller’s agents work with the same broker. This is because an agency is actually created by brokers themselves. However, not every state in the U.S considers dual agency as legal.
Any listing agent who does not represent either of the party but simply facilitates the transaction is a transaction agent. According to the Clermont Florida Realtor, this is only applicable in the U.S States where dual agency is strictly prohibited.
This is generally a title which can be given to both – the real estate broker and the real estate agent. However, the brokers or agents are only entitled to receive this title when they are associated with NAR – National Association of REALTORS®. Also, their annual dues must be cleared and they must hold the Code of Ethics’ subscription.
Since you are now aware of the different types of brokers and agents, choose the right broker and agent to handle your real estate matters. Make sure you work only with qualified professionals such as those offered by Megan Dowdy Realty.