Many people believe that a Real Estate Agent and a Real Estate Broker are the same, but this is actually a mistake. So, what exactly is the difference between them? Below are some:
1. A RE Agent is a person who works under a licensed RE Broker.
2. Anyone who wants to become a Broker must either have years of experience, or adequate education in lieu of experience, take additional courses and pass a Broker's state exam. Such include RE Practice, RE Economics, Escrows, RE Appraisal, RE Finance, RE Law and Loan Brokering. Therefore, the RE Broker has more credentials to thir name.
3. While the Ðgents perform many of the same functions as the Broker, the Broker is the one that is ultimately responsible for the transaction to be completed properly. In a difficult situation, the success of the transaction may depend on the abilities of the Broker.
4. When someone lists a home for sale or agrees to have an Agent to help them buy a home, an Agency is created. ALL agency agreements are made between the clients and Brokers only, not with Agents. The RE office assigns the RE Agent to work directly with the seller or buyer on its behalf.
5. All Contract terms, commissions, etc. can be negotiated only with the RE Broker.
6. Each Agent is coverd by Broker's Error & Ommission insurance.