REAL ESTATE TOPICS

Real Estate Salesperson Vs. Broker

Learn how real estate salespeople and brokers differ

By Cassie Daniels

Real estate salespeople and brokers play different roles in the real estate industry. What are the main differences between these parties, and what should you expect from one and not from the other? Both brokers and salespeople are real estate agents. A real estate agent is anyone who is licensed to advise the public on real estate issues. You should never take formal advice on real estate from someone who isn't a licensed agent. Brokers and real estate salespeople will have taken formal real estate courses and appropriate real estate exams or brokers exams.

Positions on the hierarchy

Real estate salespeople work for brokers. While a broker is an independent fee earner, a salesperson must work under the umbrella of a broker. Brokers are permitted to work for themselves or for other brokers. Salespeople can gain experience and take courses and exams in order to become brokers. Many real estate salespeople will choose to become brokers in order to become their own bosses.

Education

A real estate salesperson will usually have to take an exam and some compulsory real estate courses. In California, real estate agents must be at least 18 years old and they must pass a minimum of three college level real estate courses. In Connecticut, in order to get a real estate license you must take 60 hours of real estate principles and practices courses at an approved school. Real estate salespeople have the legal and ethical side of real estate as the focus of their education, whereas brokers have management as the key focus to their courses. There are three main paths to becoming a broker: 

1. A degree in real estate (four years) and passing a brokers exam
2. Two years' experience as an agent, plus eight college-level courses at an approved real estate school, plus the brokers exam
3. Membership to the legal bar and passing the brokers exam. The brokers exam is usually longer and more difficult than the agent's exam.

Liability

Brokers are more qualified than salespeople. With this in mind, it is easy to understand that brokers are more liable or legally responsible for any mistakes made when dealing with clients. A broker is legally responsible for any mistakes made by agents or salespeople who work for them. While brokers will often earn more money, they also take more legal responsibility.

Roles

Real estate salespeople work under the guidance and the legal protection of their broker. Brokers rarely engage directly in the real estate transactions of buyers or clients, and their role is mainly managerial. In any case, as a client, the buyer should look to the salesperson or the broker for:

• Help making offers and bargaining
• Help in applying for financing
• Arrangement of inspections
• Help finding a variety of suitable properties
• The writing and editing of necessary legal documents
• Only brokers will be able to handle "earnest money," which is a deposit handed up front, during a sale. The broker should also make sure that all escrow accounts are in correct order so that sales can go smoothly.

Professional relations

People often think that brokers are better than salespeople at advising buyers. This is not necessarily true. As a buyer, what you really need is an experienced agent you can trust. Knowing a little about how brokers and salespeople work together can help you get the most out of your relationship with them.

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