Agent, Realtor®, Broker? Choose Carefully. There are Differences!

Agent, Realtor®, Broker? Choose Carefully. There are Differences!

Real Estate Agent:

A person who has passed a state required test in order to obtain a license to sell real estate. The California Department of Real Estate (DRE) says this about an agent’s license:

This license is required of individuals who are to be employed as salespersons under the supervision of a licensed broker. A license may be obtained by a person who does not immediately intend to be employed by a broker. However, in that instance, no non-licensed real estate activity may be performed.

The license authorizes real estate activity only if the salesperson is in the employ of a licensed broker. (Information on what constitutes licensed real estate activity can be found in the Real Estate Law Book.)

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Realtor®:

A person who has passed a state required test in order to obtain a license to sell real estate, and who then becomes a member of NAR, the National
Association of Realtors®.

Orange County members of NAR also generally belong to the California and Orange County Associations of Realtors® in order to have the
privilege of fully using the Orange County Multiple Listing Service.

Most Realtors® also belong to other professional organizations as well. I have friends who belong to the National Council of (Property) Exchangors, Real Estate CyberSpace Society, Allen Hainge CyberStars, Heritage of San Clemente Foundation, San Clemente Downtown Business Association, and many more national and local groups. Relationships that are fostered with others in such diverse groups help a Realtor® learn more and make wider business/personal contacts to serve you better.

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Real Estate Broker:

A person who has passed a state required test in order to obtain a license to sell real estate and who ALSO has fulfilled considerable additional training, experience requirements, and initial and continued testing in order to secure and keep the difficult-to-obtain real estate Broker’s license. Lawyers and college graduates may waive certain requirements, but still must pass the very difficult Broker’s test.

All three types of real estate professional are licensed representatives who may assist the buyer or seller with advice, information about current market conditions, and help to negotiate the sale. However, there can sometimes be a large gap of knowledge and experience between licensed agents, agents who have joined NAR and become Realtors®, and Real Estate Brokers.

NAR, CAR, and OCAR provide worlds of courses, seminars, and Internet programs that Realtors® use to gain specific additional designations, such as ones for working with seniors, luxury, and vacation homes, 1031 property exchanges and dozens more.

Note: Persons buying and selling bulk REO properties and notes do not necessarily have to have ANY real estate license of any kind.

To get a sense of the large body of information that real estate Brokers must know to obtain and continue to retain a State of California Broker’s license, go here.

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You May Want a Broker if Your

Transaction is beyond Typical

As you can see on Wikipedia, there can be a big difference between a
licensed real estate agent, a Realtor®, and a licensed real estate Broker.

BTW, at the DRE website you can look up any real estate professional to ensure that their license is valid and that they lack any disciplinary actions in their record.

I studied hard for my Broker’s License more than 21 years ago after having already been a Realtor® for 14 years. Why? Because like many of my realty professional peers, I wanted to know as much as I could in helping my clients properly make what for most is the largest, scariest investment they will ever make.

Hopefully, here, I have cleared up the murkiness that most people seem to have about the different designations of people who all seem to be doing the same job in real estate.

Do you still have Questions? Just contact me: Debbie Ferrari, General Manager of Nextage Realty – The Mantelli Group’s offices in both San Clemente and San Juan Capistrano. Debbie@DebbieFerrari.com | 949-463-4111.