What's the difference? Real Estate Broker, REALTOR®, Agent

I know some of you may find this subject to be Real Estate 101, but I come across a lot of people, including agents, who don't understand the difference between a real estate broker, salesperson/agent, and REALTOR®.

REAL ESTATE AGENT

First, a real estate agent is a person who is licensed by their state to sell, lease, or manage real estate. Each state has a real estate commission that oversees the education, conduct, and issuance of real estate licenses. The Texas Real Estate Commission calls agents salespersons. TREC's (pronounced, TREK) website outlines criteria to get a license.

REAL ESTATE BROKER

In order to practice real estate, a salesperson must be sponsored by (work for) a real estate broker. In some states, including Texas, a broker has to have been an active real estate salesperson for at least two years, pass a longer exam, and meet additional educational requirements. Once the broker license is issued, the real estate practitioner may start their own company or continue working for another broker. In my case, I have continued to work with Keller Williams Realty because they have a structure that allows me to form my own team (mini-brokerage) within their franchise.

REALTOR®

The most confusion comes from people using REALTOR® in a general sense to describe a licensee who sells real estate. Often pronounced, REAL-A-TOR, this use is a violation of the copyright that the National Association of REALTORS® (NAR) has. NAR is a professional association of real estate brokers and agents. REALTORS®, unlike real estate agents, have subscribed to follow a code of ethics and will most likely have MLS access, a perk of joining the organization. You can find out if an agent is a REALTOR® by checking with your local board or association of REALTORS. In Austin, it's the Austin Board of REALTORS® (ABOR).

WHERE TO GO WHEN AGENTS ARE BAD

Consumers often want to know where to complain or find out if their agent acted inappropriately. If the agent is a member of their local board or association, you can contact them. They can issue fines for issues such as bad MLS data, not following the code of ethics, settle commission disputes, etc.

The real estate commission is where you'd go if your agent violated licensee law, which is often posted on their website. If it's not on their site, you can call to ask. They don't handle commission disputes, but can issue penalties and fines for violating the law. Penalties may even include revoking or suspending a license.