The Difference Between a Real- estate Agent and Broker

Sometimes people can get confused with all the different terms that are being used. Sometimes they can sound similar but represent totally different things, other times they can have different names but mean the same thing. The same is true in real- estate management and we want to straighten some things out so you won’t be confused anymore.

Have you ever wondered what exactly is the difference between a real estate managing broker and a real- estate agent? The answer is, of course, simple for those of us who are in the business but it does not mean that we will not try and help you understand the difference.

A Broker

People generally think that real estate brokers are in some way less important than the agents, but this is far from the truth. Brokers are independent factors in the real estate market and they have a state issued a license to performs their jobs.

That means that brokers are the ones that have the right to open real estate companies and to perform different types of jobs associated with the sales, renting and maintenance of housing properties. Their job is to recognize potentially lucrative property markets and to get the right to work on them, afterward, they can use agents to get the properties sold.

The Agent

The real- estate agent has to rent out the right, so to say, to sell properties from the broker. This is the main difference. Agents need to work from a company that in a sense extends their right to sell real- estate to the agent. But the owners of the licenses are the brokers.

Agents are less independent in this way and they have to rely on other companies or on brokers to keep their workflow. Most people who want to work by themselves in the industry do not opt to become agents, that option is usually reserved for those people who are just starting of in the business.

A Realtor

Now, this last category is in a seance a mix of the previous two. How? Realtors are actually real- estate agents but they are more independent like the brokers. This is because they have to be part of the National Association of Realtors and they must abide by the organization’s rules and ethics but if they do they will have full mobility on the market.


Making sure you have all of the categories in order is a great start for any business venture, there is no difference in the sales and management of a real- estate in that regard. Learning about the differences can start through short definitions like the ones mentioned above because they will give you a clear picture of the different aspects of the market. As you learn more you can build upon that and know all the minute differences, not to mention the ones that are present in the law.