What is the primary distinction between a real estate broker and a real estate agent?

The primary distinction between a real estate broker and a real estate agent lies in their level of authority and the scope of their operations. A broker is a licensed professional who can operate independently and may also employ agents to work under them. This means brokers have completed additional education and training beyond that of a typical agent, allowing them to manage their own real estate business and provide oversight to agents.

This distinction is crucial because it underlines the varying responsibilities and capabilities within the real estate profession. Brokers typically handle more complex transactions, take on greater legal and financial responsibilities, and are ultimately accountable for the actions of the agents they supervise.

In contrast, agents must work under the supervision of a broker and cannot operate independently in the same capacity. This structure is designed to maintain professional standards and ensure that all real estate transactions are conducted in compliance with local laws and regulations.