When it comes to buying or selling a property, getting professional help from a real estate agent or a real estate broker is essential. However, many people often need clarification about the roles of these two professionals. While agents and brokers are involved in buying and selling properties, their roles, responsibilities, and qualifications differ. Understanding the differences between a real estate broker and an agent can help you make informed decisions when working with a real estate professional.

Definition of a Real Estate Agent

A real estate agent is a licensed professional who helps buyers and sellers buy, sell, and rent properties. Agents work under the supervision of a licensed broker and are responsible for finding properties, preparing and negotiating offers, facilitating transactions, and handling paperwork, among other things. The agents earn a commission on the successful sales they make.

Definition of a Real Estate Broker

Real estate brokers are licensed professionals who have undergone further education and training beyond the requirements of an agent. Unlike agents, brokers can work independently, manage their brokerage firms or work with other brokers, and hire agents. Brokers oversee the agents working under them, maintain trust accounts, and ensure that transactions are conducted according to legal and ethical standards.

Educational Requirements

Real estate agents and brokers must complete pre-licensing education courses and take state exams before they can practice as professionals in the real estate industry. In most states, agents need to complete around 60 to 90 hours of coursework, while real estate brokers need about 200 hours of coursework in addition to experience working as a licensed agent.

Differences in Legal Liability

Agents work under the direct supervision of the broker and, therefore, have lower levels of legal responsibility than brokers. Regarding legal liability, brokers are responsible for ensuring their agents comply with state and federal legal requirements. If an agent violates any legal requirements, the broker is liable for any following legal action.

Compensation

Both agents and brokers earn commissions from successful real estate transactions. However, the percentage commission paid to brokers is higher than that paid to agents. In most cases, agents receive a commission of 3% of the sale price, while brokers receive 6% to 7%.

What is Real Estate Broking?

Real estate broking refers to the facilitation of buying, selling, or renting properties by licensed individuals or firms. As a subsector of the broader real estate industry, it is critical to connect buyers and sellers, provide valuable market insights, and assist clients with navigating complex legal and financial processes. 

Real estate brokers are licensed professionals representing buyers, sellers, or both, in real estate transactions. They work to market and advertise properties, connect interested parties, negotiate deals, and handle paperwork and contractual obligations. Brokers may work independently or as part of a larger agency, specializing in certain properties, such as residential, commercial, or industrial. 

Real estate broking is subject to various laws, regulations, and ethical standards. Brokers must adhere to strict codes of conduct, including honest and fair dealing, disclosure of material facts, and loyalty and confidentiality to their clients. They must also stay abreast of changes in market conditions, financing options, and legal requirements related to real estate transactions.

Conclusion:

In conclusion, the difference between a real estate broker and an agent is the level of education, responsibilities, and legal liability. While both are crucial in facilitating property transactions, brokers undergo further education and training, take on more responsibility, and earn higher commissions. Understanding these differences can help determine which professional to work with based on your real estate needs.