In Texas, real estate professionals hold either the role of Agent or Broker. An agent has completed the state licensing requirements set forth by the Texas Real Estate Commission. To attain the level of Broker, additional coursework, years in business, and testing are required to attain the Broker designation.
The reason for this post is to simply delineate the differences between the two roles. I often hear the term "broker" being used improperly, especially from my commercial counterparts. Many commercial licensed agents refer to themselves and their colleagues as "brokers". Unless they have completed the required work and the TREC site deems them a broker, they are an agent.
While this may seem unimportant to many, it is important to make sure that we are representing our profession properly. Additionally, we need to make sure that our clients understand the role that we play in this industry. Transparency is key.
For those agents who decide they want to take the next step to become a broker, there are some considerations you might want to think about.
- Assuming the role of a broker brings additional responsibility. The buck stops with the broker, so making sure you are ready for this is key.
- If you decide to sponsor agents, your role becomes even more important.
- E & O insurance rates increase for brokers.
- Licensing expenses increase for brokers.
- Ongoing education for brokers is an ongoing additional layer.
If you determine you want to take the next step to become a broker, make sure that you have assessed the additional requirements and responsibilities. The rewards are numerous as well. I have enjoyed being a broker since 2008. I like having the ability to run my own real estate business.
For many, however, the additional liabilities and responsibilities are not something they wish to take on. Before investing in becoming a broker, take some time to visit with established brokers and make sure this is the direction you desire to go with your career.
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