It would not be surprising to hear people use the words “Broker” and “Salesperson” interchangeably. However, let’s demystify the differences between these few words.
A Real Estate Licensed Salesperson is a real estate professional who have completed the school course, school exam, and state exam (Requirements shown below.) Being a Real Estate professional is by far the most popular of titles because it is the starting point for Real Estate professionals. A typical agent will usually represent the buyer or seller.
–Requirements to become a Real Estate Licensed Salesperson: 1)Enroll in a Real Estate Center and finish 75 hours of real estate courses (usually 20 courses, but may vary.)
2) Pass 2 Real Estate Exams: Real Estate Center School Exam and NY State Real Estate Salesperson Exam (Need to be 18+ to take the NY State Exam
A Real Estate Broker is capable of doing the same exact things as a Real Estate Salesperson, but can open up his/her own brokerage. Furthermore, they can work on their own if they choose to unlike a Salesperson. A Real Estate Salesperson MUST work under a broker. So technically a Real Estate Broker has the best of both worlds of becoming a boss and a worker at the same time.
–Requirements to become a broker: 1)Have a Real Estate Salesperson License
2)2 years of experience as a Real Estate Salesperson
3)Accumulate 3500 Points (You get a certain amount of points for closing different types of listings.)
4)Partake continuing education; a 120 hour Real Estate Broker course (technically 45 hours because it adds in the 75 hours from the salesperson course.)
In addition, a broker has a lot more responsibilities than a salesperson. They manage the real estate brokerage, provide listings, generate leads, and handle commission collection and splits, and much more.
An Associate Broker goes through the same process as a Real Estate Broker. However, an Associate Broker cannot open up his own brokerage/Real Estate Company. It has the same capabilities as a Real Estate Salesperson, but being an Associate Broker shows that they have experience, strong leads and networks, and could close quickly. A reason why a person would choose to become an Associate Broker over a Broker is that they have no interest in creating their own brokerage, and only wants to work under a brokerage.
Lastly folks, a Realtor is NOT exactly the same thing as a Real Estate Agent/Salesperson. A realtor is a Real Estate Salesperson who is a member of the National Association of Realtors. To become a member, an agent has to agree to abide by the association’s standards, and uphold the code of ethics.