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Broker, Agent, Realtor ??
Not Remotely Synonymous
Very few people, whether or not they have ever utilized the professional services of a person to assist them in purchasing real estate, have a clear understanding or clarification of the distinction between a Broker, Agent, or Realtor. What is the difference in the three?
An agent has taken the basic , minimal courses required to be allowed to take a state real estate exam. Then, after taking the real exam, the State, Texas Real Estate Commission, issues a license to that person, which then allows that person to be an independent contractor with & beneath the authority of a Real Estate Broker. The license is required by the State to be held by and under a Broker & the Broker’s license. As a Real Estate Agent, an agent can assist in the sale or purchase of property, only under the auspices of that Broker who holds his or her license. Even when an Agent is responsible for a transaction, it is actually, by State law, representation by the Broker with whom their license is held. The Agent is acting as a sub-agent of the Broker. No minimum length of time in the business nor minimum additional training is required to be allowed to assist in the real estate transaction. Although additional education is required each year, fewer hours are required than for a Broker. There is no requirement to be a REALTOR to be allowed to perform real estate services, as far as the relationship of state-required education.
A Broker is required to have many more hours of education & a minimum two years, full-time, in the Real Estate services profession. Obviously, the Broker holds his or her own license, as well as can hold licensees of agents whom they would like to have working with them as independent contractors. It is much more expensive to maintain a license each year & obviously Brokers have more expenses to maintain the Brokerage business. A greater number of hours of education is required for license renewal. Neither is a Broker required by law to be a REALTOR.
REALTOR (pronounced “reel tore”) is a professional designation of the National Association Of Realtors. It should be written in all capital letters or be followed by the copyright emblem. This designation may not be utilized by anyone who is not a member of the National Association of Realtors, who in turn requires these members to also belong to the State Association, Texas Association of Realtors, as well as to the local real estate association, such as the MetroTex Association of REALTORS or the Colllin County Association of REALTORS. By virtue of these memberships, REALTORS have access to listings of all properties for sale through REALTOR members, as-well-as other information not accessible to non-REALTOR members. The most important aspect of this designation is that these member Real Estate Brokers & Agents subscribe to a higher, written standard of ethics & fiduciary responsibility, even including advertising standards. They are required by the Associations to meet these standards. When it is learned that a REALTOR has not met those standards, he or she is disciplined, including fines & possibly even termination of a license. REALTOR associations also make available, at a cost to the REALTOR, additional education. These BROKER / REALTORS (not the agents) also have access to a legal hotline at the Texas Association. In other words, the REALTOR should be a better, more qualified representative for the client than a non-member.
In conclusion, Broker, Agent, & REALTOR are definitely & absolutely not synonymous with one another. Being a Broker & a REALTOR should offer many more benefits & knowledge to assist the client. The size of the firm with whom a Broker, Agent, or Realtor is associated is NOT the determinate factor in selecting your Real Estate representative. The Broker’s or Agent’s ability & willingness to think, professionalism, communication skills, a broad-based knowledge of the industry, (real estate brokerage, mortgages, appraisals, inspectors, builders, title companies, etc.), negotiation skills & ability (& determination & courage to do so for the benefit of the client), how all these come together, & the ability to bring your transaction to a close without any residual issues, are most critical. There is not one single benefit that a large firm can offer you if your individual, specific Broker or Agent does not perform to the greatest possible extent. It is that Broker’s responsibility to remove as much of the burden from the client as possible. However, that does not mean leave parts of the transaction incomplete or undone or poorly transacted. It means, do the work necessary to make the transaction fun, pleasurable & profitable for the client, no matter what is legally & ethically required of the Broker to do so. The client should walk away from the closing table with a complete transaction, in which all issues were resolved before ever going to the closing table. That equates to a job well done & a client who is thrilled to own a new property.
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