Difference Between Real Estate Agent and Real Estate Broker
Basis |
Real Estate Agent |
Real Estate Broker |
---|---|---|
Licensing Requirements |
Must pass state exams and meet state requirements. | Need additional schooling and experience to pass broker exam. |
Scope of Work |
Work directly with buyers and sellers as clients. | Oversee transactions and manage a team of sales agents. |
Management Responsibilities |
There are no managerial responsibilities. | Manage agents, ensure compliance, handle finances, and oversee closings. |
Commission Splits |
Share a portion of earned commission with the broker. | Earn from commission splits when agents close deals. |
Ability to Open Office |
Cannot independently open or own a brokerage. | Can fully and independently open or own a brokerage. |