Many people think that real estate agents and brokers and associate brokers are one and the same. The truth is these three professions differ a lot from each other. Knowing these differences can really come in handy especially if you are considering to buy or sell a house.
Real Estate Brokers
In truth, brokers rank higher than agents in terms of education. They have to undergo a lot of training courses related to the real estate business before they can graduate. Brokers also have to take an exam first in order to get their professional license. Once they do, they can now handle business transactions with various buyers and sellers. Having a license also makes it legal for them to collect commissions from every successful transaction they make.
One of the main differences between brokers and agents is that brokers can start their own real estate company while agents cannot.
Real Estate Agents
In a nutshell, agents are salespersons. They are usually the ones who deal with potential buyers face to face and show them around the properties that are for sale.
The requirements in order to be an agent are more lax compared to that of brokers. You just need to be at least eighteen years old to qualify and finish at least three courses about real estate. The exams are also shorter and less difficult than brokers' exam.
Agents cannot work on their own and must be under the employment of a broker. Of course, this means that all the listing agreements are owned by the broker and not by the agent.
There are some professional brokers who choose to work for other brokers. These are called broker associates. These are usually fresh graduate brokers and are just starting out. Joining large real estate networks is usually what young brokers do in order to learn the ropes about the business.
The arrangement between an employing broker and a broker usually varies. In some cases the broker pays a flat fee to the employer broker while others earn a certain percentage with every transaction they make.
Hopefully this clears things up for you. Having the right knowledge about these professions and the corresponding scope of their job can really make a difference in dealing with your business transactions. Now that you know the difference between agents, brokers and associate brokers, you can now deal with them accordingly.
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