Real estate transactions often
involve significant amounts of money. As a result, it's common for both buyers
and sellers to enlist the services of a host of professionals with real estate
experience.
Both buyers and sellers may work
with real estate agents and/or real estate brokers en route to buying or
selling their homes. Agents and brokers are not one and the same, and there are
some important distinctions between the two.
Real estate agent
According to Realtor.com, real
estate agents are professionally licensed individuals who can help both buyers
and sellers. Agents also may help property owners rent their homes. The amount
of training real estate agents need to earn their licenses varies by state.
Once individuals finish their required training, they must take a written exam
that tests their knowledge of federal real estate laws and general principles
as well as the laws specific to the state in which they want to become licensed.
Only after passing this exam do individuals become recognized real estate
agents. Investopedia notes that achieving agent status is the starting point
for most real estate professionals.
Real estate broker
Real estate brokers are those
professionals who have continued their education past the agent level and
obtained a broker's license. Each state has its own requirements in regard to
becoming a licensed broker, but education and examinations are necessary
regardless of where a person lives.
Realtor.com notes that the extra
coursework to earn a broker's license focuses on various topics, including
ethics, contracts, taxes, and insurance. Agents may learn about these topics as
well, but coursework for prospective brokers goes into more depth than it does
at the agent level.
Brokers also will study and learn
about legal issues in regard to real estate. The legal issues brokers may learn
about include brokerage operations, real estate investments, construction, and
property management. Requirements vary, but Realtor.com notes that brokers
often must work as licensed real estate agents for no less than three years
before they can earn their broker's license.
There is more than one type of real
estate broker. Principal/designated brokers oversee all agents at a given firm
and ensure the agents act in compliance with all real estate laws. Managing
brokers tend to focus on the hiring and training of agents. Associate brokers
have their broker's license but work directly under a managing broker.
Real estate agents and brokers can
help buyers, sellers and investors successfully navigate real estate
transactions, and each can serve their clients in different ways.
This article was sponsored by Greg Swander, real estate
professional with Coldwell Banker Team Real Estate in Windham. He can be
reached at 207-650-1095 or email gdswander@gmail.com
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