Warning -- bore factor.
This weekend a couple of different people asked me the difference between a Realtor® and a Broker. I think what they are ultimately asking is the difference between a licensed Salesperson vs. a Realtor® vs. a Broker. While terms and definitions may be the most mind numbing thing I can think of to write about, here are some zzzzzzzzzzzzzz for you in case you are having trouble sleeping at night.
Here are some of the terms consumers don't understand easily as evidenced by the series of questions this weekend:
Salesperson = real estate agent = licensee = licensed real estate agent = agent
That person is someone who took classes and passed an exam and became licensed with the state to act on behalf of consumers in a real estate transaction. That person must work under the guidance of a real estate broker. That person carries out the duties of the broker as the broker's agent. All "deals" and all "pay" belong to the brokerage, not the salesperson. It's ok if you don't know the difference and call me a salesperson, although I am much more than that!
Real estate broker = licensed broker = broker (ME)
That person is someone who took classes and passed an exam and became licensed with the state to become a licensed salesperson (above) first, then went on to gain at least 2 years experience as a salesperson (in Texas it is 2 years) and then went on to take more classroom hours and pass a brokerage exam and became licensed with the state to act on behlaf of consumers in a real estate transaction as a real estate Broker vs. simply a Salesperson. That person can have Agents (above) work for their brokerage if they choose. That person does not necessarily have to work for a large brand, although many licensed brokers choose to work with another licensed brokerage. For example, many brokers could work indpendently, but they choose to work with a national or international brand like Re/Max or Century 21. I choose to work independently.
REALTOR® = Realtor® = Member of the National Association of Realtors®
That person is someone who took the extra step not only to become licensed, but to join their professional association a.k.a. local board of Realtors®. That person is usually a member of the local board (here it is DFWRealtors) and state board as well as the national association, making them a REALTOR® as well as holding one of the above licenses. One can be a licensed agent and not become a REALTOR® although it is fairly uncommon. Using licensed salesperson or agent and Realtor® for the same "thing" is not really accurate.
That boring little tid bit is just because you asked! Now ask me something juicy! Like have I ever shown a home and walked in on people sleeping or something even more whacky? YIP!
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