Recently, I was asked what the
difference is between a Real Estate Agent and a Realtor and a Broker.
Here’s the answer and why it is important
for you to know this.
- Real estate agent:
Anyone who earns a real estate license can be called a real estate agent,
whether that license is as a sales professional, an associate broker or a
broker. State requirements vary, but in all states you must take a minimum
number of classes and pass a test to earn your license.
- REALTOR®: A real
estate agent who is a member of the National Association of REALTORS®, which
means that he or she must uphold the standards of the association and its
code of ethics.
- Real estate broker: A
person who has taken education beyond the agent level as required by state
laws and has passed a broker’s license exam. A Broker is a Realtor with more experience and knowledge. Brokers can work alone or
they can hire agents to work for them.
Legal and Ethical Obligations of a Realtor
/ Broker
A Real Estate Broker is a
Fiduciary. So…What the heck is
that?? A fiduciary manages another party's
assets and has a legal and ethical
obligation to put the other party's interests first. For a Real Estate
Broker, this means helping clients make decisions that are in his/her best
interest. Even if it means reduced
compensation – or no compensation – for the Realtor
A Broker must abide by a strict Code of Ethics. This includes:
- Realtors protect and promote their clients' interests
while treating all parties honestly.
- Realtors refrain from exaggeration, misrepresentation,
or concealment of pertinent facts related to property or transactions.
- Realtors cooperate with other real estate professionals
to advance their clients' best
interests.
· Realtors make sure that contract details are spelled out in
writing and that parties receive copies.
This is not the job of the attorney here in NC as it may be in other
states.
- Realtors give equal professional service to all clients
and customers irrespective of race, color, religion, sex, handicap,
familial status, national origin, or sexual orientation.
- Realtors paint a true picture in their advertising,
marketing, and other representations.
Experience and education
Real estate brokers not only have
higher education requirements than real estate salespersons, they also must
have experience working as an agent. For example, in North Caroline the license
requirements are as follows:
- Realtors in other states take 60 hours of classes and pass an
exam with both state and national sections.
- Brokers must take 180 hours of broker-specific classes and pass
an exam with both state and national sections. These classes cover contract law, fiduciary
responsibilities, ethics and all the minute details that are required.
Buying or selling a home is the
single most complex, important and expensive investment you will ever
make. Why go it alone? I am a professional
Realtor and a Broker. Contact me for
all the info you need for a smooth and successful transaction.
Elizabeth
Elizabeth Scott, Realtor®, Broker
Diamond Award – High Sales Volume
e-PRO,
Strategic Pricing Specialist
Fathom
Realty NC, LLC
Phone: 919.306.9699
http://www.thesmartrealestateagent.com/contact/
Email: Elizabeth@TheSmartRealEstateAgent.com
