The exact definitions of and distinctions between a real estate agent and a real estate broker vary among states. Generally, however, anyone who earns a basic real estate license (which involves taking a certain number of accredited courses and passing an exam) can be called a real estate agent. A real estate agent is essentially a salesperson, qualified to help consumers buy or sell a property.


Brokers typically own a firm or a franchise. They can be solo practitioners, but they must attain another higher-level license if they want to hire agents or other brokers to work under them. As mentioned earlier, a real estate agent usually cannot work alone but instead must operate through a real estate broker; the exception is in states such as Colorado and New Mexico, which mandate that every real estate professional be licensed as a broker.  Usually, though, agents work for brokers and split commissions with them.
The exact definitions of and distinctions between a real estate agent and a real estate broker vary among states. Generally, however, anyone who earns a basic real estate license (which involves taking a certain number of accredited courses and passing an exam) can be called a real estate agent. A real estate agent is essentially a salesperson, qualified to help consumers buy or sell a property.
The simple answer is, “it depends.” It mostly depends on where an individual wants to practice real estate. Becoming a real estate agent requires a state license. Each state regulates their own real estate licensing process, and each state’s regulations or rules are slightly different. But, there are a few basic requirements that are always consistent.

The exact definitions of and distinctions between a real estate agent and a real estate broker vary among states. Generally, however, anyone who earns a basic real estate license (which involves taking a certain number of accredited courses and passing an exam) can be called a real estate agent. A real estate agent is essentially a salesperson, qualified to help consumers buy or sell a property.

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A real estate broker is a step up the professional food chain. Brokers have additional training and education that have qualified them to pass a higher licensing exam; most states also require them to have a certain amount of recent experience as an active real estate agent. Brokers handle the technical aspects of the real estate transaction. A client signs a contract with a brokerage, not the individual agent. In many states brokers' additional certification authorizes them to handle other legal and financial aspects of a deal, such as handling the earnest money deposit and establishing the escrow account.
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The course will teach you real estate principles (terms like "lien," "escrow," and "encumbrance"), real estate practices (like how to determine a property's value), and the legal aspects of the business. Go to your state real estate commission's website to find information on licensing requirements and a list of accredited pre-licensing institutions.
Pay for membership to the local multiple listing service. Membership in your local MLS is essential, since you must use the system to list properties, which are then dispersed to websites like realtor.com®. The service also enables you to easily pull a property's tax information, analyze market trends, and see listings before they go on the market. Costs vary greatly: Membership for Maryland, Virginia, and Washington, DC, agents to the Metropolitan Regional Information Systems, for example, costs $1,136 per year; while on the low end are areas like California's Southwest Riverside County, which charges MLS dues of $220 per year.
Brokers typically own a firm or a franchise. They can be solo practitioners, but they must attain another higher-level license if they want to hire agents or other brokers to work under them. As mentioned earlier, a real estate agent usually cannot work alone but instead must operate through a real estate broker; the exception is in states such as Colorado and New Mexico, which mandate that every real estate professional be licensed as a broker.  Usually, though, agents work for brokers and split commissions with them.
Revisit your state real estate commission's website for instructions on how to sign up to take the licensing exam. (Most states outsource administration of the exams to third-party testing centers.) Exams are typically divided into two portions: one on federal real estate laws and general real estate principles, the second on state-specific laws. Both typically consist of 60 to 100 multiple-choice questions, including math questions that require you to use a calculator (e.g., prorating taxes for a specific property). Most pre-licensing courses provide students with sample tests, and many real estate commissions publish sample questions online.
A real estate agent is a licensed professional who arranges real estate transactions, putting buyers and sellers together and acting as their representative in negotiations. Real estate agents usually are compensated completely by a commission—a percentage of the property’s purchase price—so their income depends on their ability to close a deal. In almost every state a real estate agent must work for or be affiliated with a real estate broker (an individual or a brokerage firm), who is more experienced and licensed to a higher degree.
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