Have you ever found yourself lost in trying to learn the lingo of real state? Don't feel bad. There are a many very formal sounding terms and "verbiage" we all had to learn to work in this profession, and we didn't learn it all overnight. One of the first things everyone needs to know however, is what type of agent you are working with.
Let's Break Down The Differences
***Before anyone can begin representing sellers or buyers with a real estate transaction for a commission, all must be licensed, other than a very select few exemptions which are listed in the Texas Occupations Code 1101.005.
- Real Estate Licensee or Sales Agent
A real estate licensee is a licensed person who acts on behalf of a real estate broker and the brokers clients. Depending on the state you live in, the requirements to become a licensee vary in terms, education hours, and exams. For instance, here in Texas, 180 classroom hours in specific courses are needed with an additional 90 hours SAE and 8 Legal Update hours are mandatory after licensing but before renewal. The Texas Real Estate Commission is the licensing authority here and has a list of requirements such as age, citizenship, submitting an application, passing exams for national and state, fingerprinting, etc. Even after one completes all the TREC requirements, one still must find a sponsoring broker to work under that is accepting agents. A sales agent can not represent anyone in a real estate transaction until their license is accepted by a broker.
- Real Estate Broker
A real estate broker must meet all the requirements of a sales agent, plus an additional 630 classroom hours in qualifying courses as well as having taken the Real Estate Brokerage course within two years of application. To apply for a broker's license, one must also have enough experience points on their report and have at least four years active experience as a licensed sales agent during the 60-month period before filing of the application. After all these required items are completed, passing of state and national broker exams are the next step. Real estate brokers are liable for the supervision, training, and transactions of any sales agents under them that they choose to sponsor.
Check out this link for more information on sales agents and brokers on TREC's Consumer Guide to the Texas Real Estate Commission.
- REALTOR®
This term is commonly coined for anyone who works in real estate, which isn't accurate. A very important distinction that everyone should be aware of is that REALTOR® is a trademark of the National Association of REALTORS® (NAR) and is a symbol that only active members of the National Association REALTORS® can use. Now, here is where some of the confusion may be coming in.
All REALTORS® are real estate agents/sales agents or real estate brokers, but not all real estate agents/sales agents and real estate brokers are REALTORS®.
GOOD GRIEF! What does that mean?
GOOD GRIEF! What does that mean?
Well, real estate agents/sales agents and real estate brokers who are a member of the National Association of REALTORS® must take additional hours of training and abide by a strict Code of Ethics. When a sales agent has that "REALTOR®" behind their name, it signifies to the public that they hold a membership to NAR and are committed to adhering to the Code of Ethics they have studied and agreed to uphold.
Well, real estate agents/sales agents and real estate brokers who are a member of the National Association of REALTORS® must take additional hours of training and abide by a strict Code of Ethics. When a sales agent has that "REALTOR®" behind their name, it signifies to the public that they hold a membership to NAR and are committed to adhering to the Code of Ethics they have studied and agreed to uphold.
After reading up on what all is in that Code of Ethics and what an agent is agreeing to as a member of REALTORS®, as opposed to an agent who is not a member, it should be very eye opening to all consumers. I would recommend everyone who is looking to hire a seller's or buyer's agent, to scroll through the Code of Ethics here, and get informed. At least you will know ethically speaking what all the agent must do, or doesn't have to do for that matter, depending on the type of agent you choose of course.
Long story short, REALTORS® adhere to a higher set of standards.
- Designated & Certified
Basically, all the abbreviations behind your local agent's name displays all the education and additional training they have invested in their career. These could be designations or certifications either one. Most of the time, the designation or certification an agent goes for, is tailored to the market they work, what they specialize in for their clients, or it could be just something that interests them, that they would like to branch out and utilize one day.
It is worth mentioning that any sales agent or broker that takes additional classes above the required minimum amount, has chosen to raise the bar for their profession. Staying on top of the ever-changing legal contracts and addenda, keeping aware of all the new rules being handed down, and knowing market conditions, only provides better protection for all clients.
At this time, there is only 18 hours needed every two years for Texas real estate agents to renew their licenses, and real estate brokers have the same 18 hours plus a 6-hour broker responsibility course. All Texas real estate agents and real estate brokers education is public information and available for review on the Texas Real Estate Commission website or by clicking here. All that is needed is a name or license number and hit search. This option will also show if there have been any disciplinary actions taken against them by TREC.
FUN FACT!
If you want to say "REALTOR®" correctly... pronounce it like this "REAL-TOR", and not "REAL-A-TER". Totally up to you though, I know when I'm talking fast, I just run it all together myself like "REALTER"! :)
About The Author
Melissa Summers
Hi there! I am the Broker & Owner of Country Roots Realty, and I love to help sellers or buyers with all of their real estate needs here in the heart of the Pineywoods of East Texas.
