When you are thinking about what real estate career path to follow, you might get some headaches.There are so many types of real estate agents and it’s becoming very confusing even for them but most of all for your clients. In order to do your job, it’s obvious that you must understand what you have to do and then you can work on how you do it:
Real Estate Agent
Agents are salespersons with a license. A real estate agent must work for a broker and cannot work independently. Brokers are responsible for their real estate agents’ actions.This sounds great right?
Requirements for a real estate salesperson license vary from state to state.
Now this is confusing! A REALTOR® can be a real estate broker or a real estate agent. The title means that the he belongs to the National Association of REALTORS® (NAR), follows and respects its Code of Ethics and pays annual dues. Not every real estate agent belongs to NAR so this is like a superior agent.
Real Estate Broker
A real estate broker generally has more experience, certifications and it is said that he knows more than an agent, but this doesn’t always apply (that’s why there are good brokers and bad brokers). In California, a broker can get his licence in three different ways.
Those who have a four-year degree and have completed eight college-level real estate courses can qualify to take the broker’s real estate exam.
The others, Without a four-year degree the Department of Real Estate, must have two years of real estate sales experience, and completion of eight college-level real estate courses.
The broker’s exam is generally longer and more difficult than a salesperson’s exam. Brokers are must have higher standards of knowledge.
A broker associate is a real estate broker who works for another real estate broker, of course!A broker associate could work for himself but many choose to join a larger real estate network (it’s a sure thing – days go by, money comes, no stress and no headache. Some pay a flat fee to the employing broker, and others earn a percentage of each transaction.
Listing agents are also known as seller’s agents representing the seller, of course. A listing agent can be a real estate broker or a real estate agent. (Still following? Good!) The listing agents owe a fiduciary responsibility to the seller under a listing agreement and must protect that interest.
A buyer’s agent is known as a selling agent (not to be confused with a seller’s agent). Exclusive buyer’s agents do not work for sellers but most of them work with both sellers and buyers (not in the same transaction). Buyer’s agents may or may not require a buyer to sign a buyer’s broker agreement, depending on local custom.
They represent both the seller and the buyer. A dual agency can happen if the there are two agents involved (a listing agent and a buyer’s agent) if both agents work for the same broker. That’s because it is the real estate broker who creates the agency. Dual agency is not legal in all 50 states.
In those 50 states where dual agency is not legal, listing agents who find themselves in the position of writing an offer for the buyer may choose to become a transaction agent. This agent does not represent either party but simply facilitates the transaction.