The Difference between a Realtor and a Broker or Agent
Is a realtor synonymous with a real estate agent? And what about a broker? Are these three terms all one and the same? The answer is no, and when people think it's yes, that's when there's a problem. What in particular are their differences then?
Realtors and Their Code
A realtor is a member of the National Association of Realtors (NAR), and unlike a broker and an agent, is obliged to observe a strict Code of Ethics. The Code is a program that consists of 17 articles covering standards of practice.
In short, a realtor is most likely to offer you not just expertise in the industry, but also his honesty, integrity and sincerity. The NAR Code of Ethics is considered as the measure of professionalism in the real estate business.
Becoming a realtor comes with a few requirements, including finishing an ethics training within the year of joining the association. NAR members have to continue their training by finishing an ethics course, which is usually equivalent to 2.5 hours of instructional time once every four years. Only qualified realtors will be able to use the REALTOR(R) registered trademark on their advertising materials, including business cards.
Real Estate Brokers
A broker is a real estate agent in Franklin TN who has completed extra coursework that allows him to open and manage his own brokerage firm. Thus, in comparison to agents, brokers have greater influence, responsibility and expertise in real estate law. Brokers can also perform appraisals and manage other real estate professionals, among many other rights.
Additionally, brokers are committed to a higher standard of knowledge. A broker's exam is more extensive and difficult than an agent's. The broker is responsible for keeping the transaction smooth to the end. Not each real estate agent is a broker, and not each broker has his own brokerage firm. A lot of brokers like to continue their work at real estate companies or franchises in order to expand their networks and expertise.
Real Estate Agents
The best realtor in Franklin TN is basically a professional who has been licensed by the government to sell real estate. However, he cannot work independently or without a broker. A real estate agent can be a realtor and thus a member of the National Association of Realtors and committed to uphold the Realtor Code of Ethics. Remember though that not all agents are realtors, and one way of knowing if your prospective agent is a realtor is by checking if he uses the registered REALTOR(R) trademark on his business cards or any other marketing materials.
Real estate agents have the same work as brokers, but are not legally allowed to have their own brokerage firm. A person has to be at least 18 years old to become a real estate agent, and should have completed a course and exam on basic real estate transactions. Coursework can range from 40 to 90 hours, depending on requirements at the local and state levels.
The real estate industry can indeed be confusing to outsiders, but it's wise to know who you're dealing with when you have buy or sell a property.
