difference between a real estate agent and real estate broker?

Question

can someone give me a thorough answer regarding this? I am new here and im looking into obtaining my real estate license, but I would like to know the  major differences between these two. Thank you

James Syed · Answer

@Andrew Kala

It varies state by state as some of the posts have suggested.

Now in Illinois, it is the same thing.

Hope it helps.

John Mimms · Answer

A few more classes, different insurance and time as an agent.

Brie Schmidt · Answer

Depends on the state.  IL is a broker only state so that is the minimum license you can hold, then you need to have a managing broker's to have your own office.

Karin Crompton · Answer

The above two answers addressed it quite well. To summarize a bit, if you are looking at getting your r.e. license, you will become licensed as a salesperson (i.e. agent) first. After a specified number of years as a licensed salesperson - 2 years in CT, and I don't recall whether it's the same nationally - you can then pursue a broker's license. A broker has additional education and qualifications, not to mention liability. A salesperson has to "hang" their license with a broker in order to be truly licensed and to practice real estate. Simply taking the classes and passing the test is not enough - you need to be affiliated w/a brokerage.

In CT, a salesperson is never a direct employee of a broker; they are always independent contractors, though there are certainly office rules. My understanding is that that's how it works nationally. All money - commissions, for example - passes through the brokerage and then on to the salespeople. Typically, the broker gets a cut of all commissions; that percentage varies among brokerages and salespeople.

Daren H. · Answer

As Jon stated, differs from state to state but in general terms an RE Agent (also referred to as RE Salesperson) actually acts as an agent on behalf of the RE Broker (the Broker is actually the agent). For instance, in Texas, a RE Agent cannot provide RE services to the public without a sponsoring Broker. Different Brokers have their own individual brokerage rules (within the confines of the regulating agency rules). After so many years, and completion of regulating agency requirements (usually education and exam requirements) the RE Agent can become a Broker (and open their own brokerage as Jon mentioned). Some RE Agents are employees of the Broker but generally most are independent contractors.

Jon Holdman · Answer

Details vary from state to state.  Typically an agent must work for a broker for some period of time before being eligible to become a broker.  A broker can open their own office.  A broker has higher financial obligations than an agent.