Many people tend to mix up between a real estate agent and a broker. Primarily, a real estate agent is someone who has obtained a certified real estate license, while a real estate broker is an agent that has passed the required exams for their broker license. The main difference between the two is that the real estate broker can be an independent contractor or own a firm while the real estate agent has to work under a broker’s supervision. Here are the differences of the real estate broker vs agent as understanding can help you in your process of buying a new home, especially for first-time owners.
Functions of A Real Estate Broker
The real estate broker’s main role is to engage in negotiations and arrange transactions for the properties involved. They are allowed to function as independent entities or at a brokerage firm where real estate agents work under them. Their tasks can vary according to their role but their responsibilities typically include:
- Communicating with government and professional associations
- Supervising real estate transactions
- Managing the brokerage office and staff
- Writing contracts
- Recruiting, training and managing real estate agents
Types of Real Estate Brokers
Each real estate broker’s license requirements and responsibilities will vary by state. In general, there are three roles that a broker may perform:
The responsibilities and license requirements of a real estate broke can change depending on the various states. Generally, brokers can perform the roles below:
- Managing broker
- Associate broker
- Designated broker
Functions of A Real Estate Agent
Generally, the real estate agent represents and assists their client during the process of buying, renting or selling. A large majority of real estate agents work full-time under a licensed brokerage firm but there are others that choose becoming a part-time real estate agent, especially those that have just retired or only at the beginning of their careers.
The agent’s tasks can vary according to state but are mostly responsible for:
- Facilitating contract negotiations
- Providing guidance through the overall process
- Organizing and submitting documentation
Types of Real Estate Agents
In a broad sense, real estate agents have four main roles with various responsibilities according to the state you’re in. They include:
- Buyer’s agent
- Listing agent
- Referral agent
- Dual or transactional agent
Work with the Best Realtors from NJLUX Real Estate
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