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Aren’t all Agents the Same?

Clients often ask me to explain the difference between a Licensee, Real Estate Agent and a Real Estate Broker, or say, “Aren’t all Agents the same?”. The difference is not as clear as you may think.

A Real Estate Licensee is defined as an individual who has satisfied all the requirements of a state licensing agency as authorized by specific state legislation. The requirements include meeting course hours and/or work experience and passing a state-mandated Real Estate exam.

An Affiliate Broker is an individual who has completed all of the State requirements of a Real Estate Licensee. However, they must be members of a local, state and a national association. Furthermore, they must complete an additional 30 hours of required coursework beyond completing the licensee portion. This person is associated with a Broker to perform brokerage activities on behalf of the Broker and must be supervised directly by the Broker for three years.

A Broker is defined as a person or company licensed to buy, sell, exchange or lease, real property for others and to charge a fee for these services. This requires additional classroom training and the passing of an additional state exam. A Real Estate Broker is the only person who can employee other agents to work on their behalf.

The evolution of of a basic licensee to a broker is long process based in on-the-job real estate experience and training. Its not something gained by merely passing exams for a fee. According to National Association of Realtors (NAR) only 1% of licensees actually remain active agents after 10 years. It can be a lifelong and rewarding career for those who love to continually learn and help educate others. As your Real Estate Broker, if you need any clarifications or need more information, please feel free to give me a call at 615-830-2153.

Cindy Harding, Broker, ABR, C-RCS, CMRS

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