A real estate agent is a licensed professional who arranges real estate transactions, putting buyers and sellers together and acting as their representative in negotiations. Real estate agents usually are compensated completely by a commission—a percentage of the property’s purchase price—so their income depends on their ability to close a deal. In almost every state a real estate agent must work for or be affiliated with a real estate broker (an individual or a brokerage firm), who is more experienced and licensed to a higher degree. Show
Real estate agents usually specialize in either commercial or residential real estate. Either way, they perform different duties, depending on whether they work for the buyer or the seller. Agents who work for the seller, also known as listing agents, advise clients on how to price the property and prepare it for a sale, including providing tips on last-minute improvements that can boost the price or encourage speedy offers. Seller agents market the property through listing services, networking, and advertisements. Agents who work for the buyer search for available properties that match the buyer’s price range and wish list. These agents often look at past sales data on comparable properties to help prospective buyers come up with a fair bid. Agents act as go-betweens for the principal parties, carrying offers and counteroffers and other questions back and forth. Once a bid is accepted, agents on both sides often continue to work, helping their clients through the paperwork, conveying communications, advising on inspections and moving, and generally shepherding the deal through to closing. It’s important for consumers to understand whether a real estate agent represents the buyer, the seller, or both parties; obviously, the agent’s loyalty can greatly affect several details of the transaction, including the final price. State laws regulate whether an agent can represent both parties in a real estate transaction, technically known as “dual agency.” Agents must disclose their representation, so that buyers and sellers are aware of any conflicts of interest.
Dual agency, in which one person represents both the buyer and seller in a real estate transaction, is illegal in eight states: Alaska, Colorado, Florida, Kansas, Maryland, Oklahoma, Texas, and Vermont. Traditionally, an agent is paid a commission that is a percentage of the property’s sale price. The more the house sells for, the more money an agent makes. However, with online listings allowing consumers to do much of the shopping on their own without help from an agent, the traditional payment structure is changing. Some brokerages charge a lower commission for more expensive houses, and some handle the entire transaction for a flat fee that’s much less than a regular commission. Other companies offer a fee-for-service pricing structure that lets sellers pay only for certain parts of the sale process, such as adding the property to a multiple listing service (MLS).
You may have heard people use the terms “real estate agent,” “real estate broker,” and “realtor” interchangeably. While overlap among the three definitely exists, there are key differences. The exact definitions of and distinctions between a real estate agent and a real estate broker vary among states. Generally, however, anyone who earns a basic real estate license (which involves taking a certain number of accredited courses and passing an exam) can be called a real estate agent. A real estate agent is essentially a salesperson, qualified to help consumers buy or sell a property. A real estate broker is a step up the professional food chain. Brokers have additional training and education that have qualified them to pass a higher licensing exam; most states also require them to have a certain amount of recent experience as an active real estate agent. Brokers handle the technical aspects of the real estate transaction. A client signs a contract with a brokerage, not the individual agent. In many states brokers' additional certification authorizes them to handle other legal and financial aspects of a deal, such as handling the earnest money deposit and establishing the escrow account. Brokers typically own a firm or a franchise. They can be solo practitioners, but they must attain another higher-level license if they want to hire agents or other brokers to work under them. As mentioned earlier, a real estate agent usually cannot work alone but instead must operate through a real estate broker; the exception is in states such as Colorado and New Mexico, which mandate that every real estate professional be licensed as a broker. Usually, though, agents work for brokers and split commissions with them. So every real estate broker is a real estate agent (or has been), but not every real estate agent is a broker. How do realtors fit into the equation? A realtor is a member of the National Association of Realtors (NAR), a trade association. Both agents and brokers can be realtors, along with property managers, appraisers, and other real estate industry professionals. Realtors are expected to be experts in their field and must follow the NAR’s code of ethics, which requires agents to uphold specific duties to clients and customers, the public, and other realtors. In addition to NAR, realtors must belong to a state or local real estate association or board. All realtors are real estate agents or brokers (or something related), but not all agents or brokers are realtors. As of July 2020, NAR reported that it had nearly 1.4 million members. Roughly two-thirds of them held real estate agent licenses. Skip to Content
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return to top §535.57 Examinations
return to top §535.58 License for Military Service Members, Veterans, or Military Spouses
return to top Subchapter F Requirements for Education Providers, Courses and Instructors for Qualifying Education§535.60 Definitions
return to top §535.61 Approval of Providers of Qualifying Courses
return to top §535.62 Approval of Qualifying Courses
return to top §535.63 Qualifications for Instructors of Qualifying Courses
return to top §535.64 Content Requirements for Qualifying Real Estate Courses
return to top §535.65 Responsibilities and Operations of Providers of Qualifying Courses
return to top §535.66 Credit for Courses Offered by Accredited Colleges or Universities
return to top §535.67 Qualifying Education: Compliance and Enforcement
return to top Subchapter G Requirements for Continuing Education Providers, Courses and Instructors§535.70 Definitions
return to top §535.71 Approval of CE Providers
return to top §535.72 Approval of Non-elective Continuing Education Courses
return to top §535.73 Approval of Elective Continuing Education Courses
return to top §535.74 Qualifications for Continuing Education Instructors
return to top §535.75 Responsibilities and Operations of Continuing Education Providers
return to top §535.77 CE Providers: Compliance and Enforcement
return to top Subchapter H Recovery Fund§535.82 Proration of Payments from the Recovery Trust Account
return to top §535.83 Association of Designated Broker on Claim
return to top Subchapter I License Renewal§535.91 Renewal of a Real Estate License
return to top §535.92 Continuing Education Requirements
return to top §535.93 Late Renewal Applications
return to top Subchapter J Fees§535.101 Fees
return to top Subchapter L Inactive License Status§535.121 Inactive Salesperson License
return to top §535.122 Reactivation of Salesperson License
return to top §535.123 Inactive Broker Status
return to top Subchapter M Nonresidents§535.131 Unlawful Conduct; Splitting Fees
return to top §535.132 Eligibility for Licensure
return to top §535.133 Consent To Be Sued; Exception to Requirements
return to top Subchapter N Suspension and Revocation of Licensure§535.141 Initiation of Investigation; Order Requirements
return to top §535.142 Consumer Complaint Processing
return to top §535.143 Fraudulent Procurement of License
return to top §535.144 When Acquiring or Disposing of Own Property or Property of Spouse, Parent or Child
return to top §535.145 False Promise
return to top §535.146 Maintaining Trust Money
return to top §535.147 Splitting Fee with Unlicensed Person
return to top §535.148 Receiving an Undisclosed Commission or Rebate
return to top §535.149 Lottery or Deceptive Trade Practice
return to top §535.153 Violating an Exclusive Agency
return to top §535.154 Registration and Use of Alternate, Team and Assumed Business Names Used in Advertisements
return to top §535.155 Advertisements
return to top §535.156 Dishonesty; Bad Faith; Untrustworthiness
return to top Subchapter P Enforcement Action for Unlicensed Activity§535.181 Investigation and Actions
return to top Subchapter Q Administrative Penalties§535.191 Schedule of Administrative Penalties
return to top Subchapter R Real Estate Inspectors§535.201 Definitions
return to top §535.206 The Texas Real Estate Inspector Committee
return to top §535.208 Application for a License
return to top §535.209 Examinations
return to top §535.210 Fees
return to top §535.211 Professional Liability Insurance, or Any Other Insurance that Provides Coverage for Violations of Subchapter G of Chapter 1102
return to top §535.212 Education and Experience Requirements for a License
return to top §535.213 Qualifying Real Estate Inspector Instructors and Courses
return to top §535.214 Education and Experience Requirements for a License
return to top §535.215 Inactive Inspector Status
return to top §535.216 Renewal of License
return to top §535.217 Mailing Address and Other Contact Information
return to top §535.218 Continuing Education Required for Renewal
return to top §535.219 Schedule of Administrative Penalties
return to top §535.220 Professional Conduct and Ethics
return to top §535.221 Advertisements
return to top §535.222 Inspection Reports
return to top §535.223 Standard Inspection Report Form
return to top §535.224 Practice and Procedure
return to top §535.226 Sponsorship of Apprentice Inspectors and Real Estate Inspectors
return to top §535.227 Standards of Practice: General Provisions
return to top §535.228 Standards of Practice: Minimum Inspection Requirements for Structural Systems
return to top §535.229 Standards of Practice: Minimum Inspection Requirements for Electrical Systems
return to top §535.230 Standards of Practice: Minimum Inspection Requirements for Heating, Ventilation, and Air Conditioning Systems
return to top §535.231 Standards of Practice: Minimum Inspection Requirements for Plumbing Systems
return to top §535.232 Standards of Practice: Minimum Inspection Requirements for Appliances
return to top §535.233 Standards of Practice: Minimum Inspection Requirements for Optional Systems
return to top §535.240 Proration of Payments from the Real Estate Inspection Recovery Fund
return to top Subchapter S Residential Rental Locators§535.300 Advertising by Residential Rental Locators
return to top Subchapter T Easement or Right-of-way Agents§535.400 Registration of Easement or Right-of-Way Agents
return to top §535.401 Required Notices
return to top §535.402 Complaints, Disciplinary Action and Appeals
return to top §535.403 Renewal of Registration
return to top §535.404 Fees
return to top §535.405 Employee of Owner or Purchaser
return to top Chapter 537 Professional Agreements and Standard Contracts§537.11 Use of Standard Contract Forms
return to top §537.20 Standard Contract Form TREC No. 9-15
return to top §537.21 Standard Contract Form TREC No. 10-6
return to top §537.22 Standard Contract Form TREC No. 11-7
return to top §537.23 Standard Contract Form TREC No. 12-3
return to top §537.26 Standard Contract Form TREC No. 15-5
return to top §537.27 Standard Contract Form TREC No. 16-5
return to top §537.28 Standard Contract Form TREC No. 20-16
return to top §537.30 Standard Contract Form TREC No. 23-17
return to top §537.31 Standard Contract Form TREC No. 24-17
return to top §537.32 Standard Contract Form TREC No. 25-14
return to top §537.33 Standard Contract Form TREC No. 26-7
return to top §537.35 Standard Contract Form TREC No. 28-2
return to top §537.37 Standard Contract Form TREC No. 30-15
return to top §537.39 Standard Contract Form TREC No. 32-4
return to top §537.40 Standard Contract Form TREC No. 33-2
return to top §537.41 Standard Contract Form TREC No. 34-4
return to top §537.43 Standard Contract Form TREC No. 36-9
return to top §537.44 Standard Contract Form TREC No. 37-5
return to top §537.45 Standard Contract Form TREC No. 38-7
return to top §537.46 Standard Contract Form TREC No. 39-8
return to top §537.47 Standard Contract Form TREC No. 40-9
return to top §537.48 Standard Contract Form TREC No. 41-2
return to top §537.51 Standard Contract Form TREC No. 44-2
return to top §537.52 Standard Contract Form TREC No. 45-2
return to top §537.54 Standard Contract Form TREC No. 47-0
return to top §537.55 Standard Contract Form TREC No. 48-1
return to top §537.56 Standard Contract Form TREC No. 49-1
return to top §537.57 Standard Contract Form TREC No. 50-0
return to top §537.58 Standard Contract Form TREC No. 51-0
return to top §537.59 Standard Contract Form TREC No. 52-0
return to top §537.60 Standard Contract Form TREC No. 53-0
return to top Chapter 541 Rules Relating to the Provisions of Texas Occupations Code, Chapter 53§541.1 Criminal Offense Guidelines
return to top §541.2 Criminal History Evaluation Letters/Determination of Fitness
return to top Chapter 543 Rules Relating to the Provisions of the Texas Timeshare Act§543.1 Registration
return to top §543.2 Amendments
return to top §543.3 Fees
return to top §543.4 Forms
return to top §543.5 Violations
return to top §543.6 Complaints and Disciplinary Proceedings
return to top §543.7 Contract Requirements
return to top §543.8 Disclosure Requirement
return to top §543.9 Exemptions
return to top §543.10 Escrow Requirements
return to top §543.11 Maintenance of Registration
return to top §543.12 Renewal of Registration
return to top §543.13 Assumed Names
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