Ep. 22: Real Estate Agent, Realtor, Broker | What Is The Difference?

Hello everybody, Robert Rico here at CA Realty
Training. Thank you for coming to our weekly video blog. So glad to see you here, we’re hoping that
today we can shed some light on you. Some education. Some real estate education so you can understand
the world of real estate just a little bit better. Today I want to discuss a little bit about
real estate titles and designations. A lot of times people are out there and they
get confused. They’re not sure what the difference is between
a realtor and a real estate agent. The difference between a broker and a broker
associate. And there are so many titles out there, that
we want to make sure that everybody is on the same page. Everybody understands what each one means. So let’s start off with the first one. The first one, is of course, a real estate
agent. This is an individual who takes the 3 courses
and passes the 3 courses, they receive the 3 certificates and it entitles them to take
the California Bureau of Real Estate exam. They pass the state exam, then they become
a Real Estate Agent. Next one, a real estate Salesperson. Now a real estate salesperson is the same
thing as a real estate agent. Just different wording. Next, we have a realtor – an actual designation
of a realtor. Now that’s kind of special, a realtor. A realtor is somebody who’s joined the National
Association of Realtors. NAR. Now what’s the benefit of that? I will tell you the benefit. By joining the National Association of Realtors,
an agent must abide by a very strong and strict code of ethics. This is what entices real estate agents to
become realtors. Because with that realtor designation, they’re
going to pledge the best performance they can for them. Now, by becoming a realtor, by having that
designation of a realtor, there are 17 articles – when you are a realtor, 17 articles within
that code of ethics. 17 stipulations that the realtor must follow
at all times. These 17 articles, these 17 stipulations,
these 17 code of ethics- it explains how the realtor must treat their clients, how the
realtor must treat the general public, and how the realtor must treat their colleagues. Very big of a program, National Association
of Realtors. This is why it’s very popular and a lot of
real estate agents decide to go from becoming a real estate agent transferring to becoming
a member of the National Association of Realtors. Then we have, of course, a real estate Broker. A real estate Broker, very simple. A Real Estate Broker is somebody who has a
real estate license, regular real estate license, and they’ve taken additional courses, additional
courses above and beyond what was taken to become a real estate agent. They’ve taken additional courses and of course
they pass a broker’s exam. The real estate broker exam is more difficult,
of course, than the regular real estate exam. But by passing the real estate broker exam,
you now have the designation of a broker. Last but not least, we have what we call a
real estate associate broker. Now, this is kind of an interesting, yet unique,
title. An associate broker- wait for it, this is
slightly confusing but I’m going to make it as simple as possible. An associate broker is somebody who decided
to get their real estate broker’s license.They are a broker. But they don’t want to open up their own brokerage. They don’t want to manage other realtors below
them. They don’t want to be the umbrella. They don’t want to be the broker and have
all the expenses and having to manage a company. A real estate company. So what they decide to do is, the broker,
the new broker decides to work for an umbrella, for another broker. So you have a broker, who has a license, a
licensed broker, working under the umbrella of another broker. This way the broker that is underneath the
umbrella- the associate broker doesn’t have the responsibilities or accountabilities for
the business and office. Not a bad thing to do. Go out, get your real estate broker’s license,
work for another broker. Let them take all the responsibilities and
accountabilities. Ladies and gentlemen, listen, there’s a whole
bunch of, whole bunch of titles out there. And it’s good to know what they are and what
the difference is. But the majority of you watching this, step
number 1, you’re going to go out and get that real estate agent license. Thanks for coming to our video blog. If you have any topics you’d like for us to
cover, do us a favor and go ahead and leave a comment down below. Don’t forget to subscribe to our page. Hope to see you next week!

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