I think one of the most misunderstood titles is that of Realtor. I know it doesn't matter to other real estate agents, but this blog is written to explain a few commonly and frequently misunderstood terms in real estate:
Sales Associate: This is probably the most common type of real estate agent the public comes in contact with. A sales associate can also be called a Salesperson, or simply a Real Estate Agent (although this last term is deceiving). In California, a Sales Associate is anybody who is at lease 18 years old, and takes 3 college level real estate courses, one of which has to be Real Estate Principles, and one has to be Real Estate Practice. The third can be any other real estate course offered at the college level. The applicant then takes the state Salesperson exam and if passes, applies for a real estate license from the state. Once licensed, the Sales Associate can not work for themselves, they have to work under the supervision of an employing broker. The Sales Associate can perform most real estate services which mostly include showing property, taking listings, writing contracts, and negotiating for a client.
Broker: A Broker,most commonly, started out as a sales associate, although there are several exceptions (such as lawyers). Once a sales associate has 2 years of experience, they need to complete the following additional college level real estate courses: Real Estate Finance, Real Estate Appraisal, Real Estate Economics, and three other courses out of a possible eleven choices. Some examples are Property Management, Real Estate Law, Accounting etc. The applicant than takes the state broker's exam which is longer, and harder then the salesperson exam. The applicant then applies for a Broker license. Once licensed, a Broker can work for themselves without supervision. They can work under a name other than their real name assuming they have filed a DBA (Doing Business As). Real Estate Brokers have greater responsibility. For example, they can manage and broker real estate loans. They can sell real estate investment such as mineral rights etc., and can handle their own escrows.
Realtor: Realtor is the most commonly misused real estate term. Realtor is a trade name. A Realtor is a real estate professional, such as a broker or a sales associate who applies for membership with the National Association of Realtors (NAR). The NAR reviews the application, and if accepted, issues the applicant an annual membership card. They can then call themselves a "Realtor". The California Real Estate Commissioner takes this term and membership very seriously, and can revoke a licensees license for calling themselves Realtors if they are not indeed a member of the NAR. There are a lot of benefits to joining the NAR. They offer superior real estate courses, for example GRI (Graduate Realtor Institute) which is a year long course, and CRS (Certified Residential Specialist), E-pro (a real estate technology course) and many more.
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