What is the Difference Between a Real Estate Agent and Broker?

A real estate agent (also called a salesperson) and a broker are both licensed real estate professionals, but they differ in education, licensing requirements, responsibilities, and authority. A real estate agent holds a salesperson license, which is the entry-level license in real estate. Agents must work under the supervision of a licensed broker and cannot operate independently.

They can perform real estate activities such as listing properties, showing homes, writing offers, and negotiating transactions, but all activities must be conducted under their sponsoring broker's authority. A real estate broker holds a higher-level license that requires additional education (typically 60-90 additional course hours beyond the salesperson requirement), more experience (usually 1-3 years as a licensed agent), and passing a more comprehensive broker exam. Brokers can work independently, open their own brokerage firm, hire and supervise agents, and hold earnest money deposits in trust accounts.

There are several types of brokers: a designated broker (or principal broker) is responsible for the entire brokerage operation, an associate broker holds a broker's license but works under another broker, and a managing broker oversees daily operations. The term "Realtor" is distinct from both — it refers to any licensed agent or broker who is a member of the National Association of Realtors (NAR) and agrees to abide by its Code of Ethics. Not all agents or brokers are Realtors.