Real Estate Agent

Definition

A real estate agent is a licensed professional who assists clients in buying, selling, or managing real estate properties. Frequently, the term “real estate agent” specifically refers to a licensed salesperson, whereas a “broker” is a more experienced licensed individual who oversees salespersons. Generally, obtaining a broker’s license requires additional experience and education beyond that required for a salesperson license. A salesperson must operate under the sponsorship of an active, licensed broker.

Examples

Residential Sales: Jennifer, a licensed real estate agent, lists a property for sale, arranges showings, and negotiates offers on behalf of homeowners.
Leasing Agent: Mark works as a leasing agent for a property management company, finding tenants for rental properties and overseeing lease agreements.
Commercial Real Estate: Sarah is a commercial real estate agent specializing in office spaces. She helps businesses find suitable office locations and negotiate lease terms.

Frequently Asked Questions (FAQs)

What differentiates a real estate agent from a broker?

A real estate agent is typically a licensed salesperson working under the supervision of a licensed broker. A broker, on the other hand, has more advanced training and education and can operate independently, manage a brokerage, and sponsor salespersons.

What qualifications are needed to become a real estate agent?

Qualifications vary by state but generally include completing state-approved education courses, passing a licensure exam, and obtaining sponsorship from a licensed broker.

How does a real estate agent get paid?

Real estate agents typically earn a commission, which is a percentage of the property’s sale price. The commission rate can vary but is usually split between the listing agent and the buyer’s agent.

Is a real estate agent the same as a REALTOR®?

Not necessarily. While all REALTORS® are licensed agents, not all agents are REALTORS®. A REALTOR® is a member of the National Association of REALTORS® (NAR) and adheres to its ethical standards.

Can a real estate agent work independently?

No, a licensed real estate agent must be sponsored by a licensed broker to practice.

Broker: A real estate professional who has met more stringent educational and experience requirements and is licensed to operate a brokerage and manage agents.
Salesperson: A licensed individual who performs real estate activities under the supervision of a broker.
Exclusive Agency Listing: A listing agreement where the agent has the exclusive right to sell the property but the owner can sell it themselves without owing commission.
Listing Agreement: A contract between a property owner and a real estate broker authorizing the broker to act as the owner’s agent in the sale of the property.
REALTOR®: A member of the National Association of REALTORS® which signifies adherence to a strict code of ethics and conduct.

Online Resources

References

“Modern Real Estate Practice” by Fillmore W. Galaty, Wellington J. Allaway, and Robert C. Kyle.
“Principles of Real Estate Practice” by Stephen Mettling and David Cusic.

Suggested Books for Further Studies

“Your First Year in Real Estate: Making the Transition from Total Novice to Successful Professional” by Dirk Zeller.
“The Millionaire Real Estate Agent: It’s Not About the Money…It’s About Being the Best You Can Be!” by Gary Keller, Dave Jenks, and Jay Papasan.
“Principles of Real Estate Practice in New York” by Stephen Mettling and David Cusic.

Real Estate Basics: Agent Fundamentals Quiz

### Who can operate a real estate agency without sponsorship? - [ ] Salesperson - [x] Broker - [ ] Realtor® - [ ] Appraiser > **Explanation:** Only a licensed broker can operate a real estate agency without the requirement of being sponsored by another professional. ### Are all real estate agents members of the National Association of REALTORS® (NAR)? - [ ] Yes, all agents are automatically members. - [ ] No, only those who sell a minimum number of properties. - [x] No, only those who choose to be members and follow the NAR’s ethical guidelines. - [ ] Yes, once they earn a license. > **Explanation:** Not all agents are members of the NAR. Only those who choose to join and adhere to the NAR's ethical standards are designated REALTORS®. ### What is typically required before someone can take the licensure exam to become an agent? - [ ] No prior education - [ ] A college degree in real estate - [x] Completion of state-approved education courses - [ ] Citizenship in the U.S. > **Explanation:** Most states require aspiring real estate agents to complete state-approved real estate education courses as part of the licensing process. ### On what basis do real estate agents generally earn their income? - [ ] Hourly wage - [x] Commission - [ ] Annual salary - [ ] Payment per property shown > **Explanation:** Real estate agents typically earn their income via commission, which is a percentage of the property's sale price. ### Which title refers to a real estate professional with more rigorous educational and experience requirements? - [x] Broker - [ ] Salesperson - [ ] Realtor® - [ ] Assistant > **Explanation:** A broker has met more stringent education and experience requirements compared to a salesperson and is licensed to oversee a brokerage. ### What must a salesperson have to legally practice real estate activities? - [ ] Their own office - [ ] A bachelor's degree - [x] Sponsorship from a licensed broker - [ ] Membership in the National Association of Realtors® > **Explanation:** A salesperson must be sponsored by a licensed broker to legally practice real estate activities. ### What is an exclusive agency listing? - [ ] An agreement where only the owner can sell the property. - [x] An agreement where the agent has exclusive rights to sell the property, but the owner can also sell it independently. - [ ] An agreement without any exclusive rights given to the agent. - [ ] An agreement that requires monthly fees to the agent. > **Explanation:** An exclusive agency listing allows the agent exclusive rights to sell the property, but the owner retains the right to sell it independently without paying a commission. ### What agency would one reference for state-specific licensure requirements? - [ ] National Association of REALTORS® - [ ] Multiple Listing Service (MLS) - [x] Bureau of Real Estate or equivalent state agency - [ ] Department of Housing and Urban Development (HUD) > **Explanation:** Each state's Bureau of Real Estate, or equivalent agency, oversees licensure requirements and regulations for real estate professionals in that state. ### Which book is useful for beginners transitioning into real estate? - [ ] "Principles of Real Estate Practice" - [x] "Your First Year in Real Estate" by Dirk Zeller - [ ] "Real Estate Finance & Investments" - [ ] "Professional Real Estate Development: The ULI Guide" > **Explanation:** "Your First Year in Real Estate" by Dirk Zeller is specifically geared towards helping novices make the transition to successful real estate professionals. ### What is a primary educational resource for real estate practices and principles? - [x] "Modern Real Estate Practice" - [ ] "The Millionaire Real Estate Agent" - [ ] "Rich Dad Poor Dad" - [ ] "How to Win Friends and Influence People" > **Explanation:** "Modern Real Estate Practice" by Fillmore W. Galaty, Wellington J. Allaway, and Robert C. Kyle is a foundational educational resource for learning real estate practices and principles.