When it comes to buying a house, one of the most important things is finding a trustworthy Realtor in Florida who can guide you from start to finish. One of the first questions we often receive is: What is the difference between Realtors, Real Estate Agents, and Brokers?
We understand that in many countries around the world, there is no clear distinction between these roles. That's why we provide a guide to help our clients choose the type of expert they need to represent them. You can also find more detailed information on this topic in your copy of "Your Florida Real Estate Investing Guide for Global Clients."
1) Realtor
This term is an exclusive brand of the National Association of Realtors (NAR). This means that only those real estate agents who are registered with NAR can be called Realtors. And only Realtors have access to the MLS (Multiple Listing Service), have signed an ethical document of the Association, and participate in regular training and continuing education.
Most real estate agents in Florida are members of the National Association of Realtors. If you find an agent you like and he is not a member of NAR, we recommend asking them why. Realtors have access to more information, support networks, and listings that non-members cannot access.
To become a member of NAR, you need to be a member of your local real estate council or association. New members of NAR must complete an online professional ethics course and pass with a score. Active members must complete an online ethics course every four years and adhere strictly to the practice standards.
The code of ethics is reviewed annually to reflect the latest changes in real estate law and practice, and its core message is to "treat all parties honestly." We think you'll agree with us on the value that this training and code of ethics bring, and we always recommend choosing a Realtor over a real estate agent for this reason.
2) Real Estate Agent
This is an expert who has completed a test in the real estate field and is licensed as a real estate agent. Their task is to support and advise buyers and sellers in marketing and buying/selling real estate. If someone only has a real estate agent license and is not registered as a Realtor, they do not have access to the MLS and therefore do not have access to the information provided through the internet. As MLS is the most reliable and comprehensive source of real estate information, this would be a disadvantage in our opinion.
Both real estate agents and Realtors are not allowed to receive cash payments for a real estate transaction, meaning handling transactions in cash, for which a licensed Broker is required. Real estate agents assist in negotiating on behalf of the Broker. So, a real estate agent can only sell real estate if they work for a real estate broker or a real estate company.
Agents cannot publicly advertise houses for sale, they can only help and advise in buying and selling and marketing those houses. The work of an agent includes assisting with inspections, structuring contracts, and negotiating in your best interest, so they need to have experience and knowledge in all these areas.
3) Broker or Real Estate Intermediary
A real estate broker or intermediary is an expert who is licensed to handle all the elements mentioned above, as well as the financial aspects of real estate transactions. A broker is a real estate agent (meaning they also participate in sales and marketing) who has a higher level of formal education and a higher ranking. Real estate agents and Realtors must work under the supervision of a real estate broker, and the broker is legally responsible for any actions of the agents.
Any mistakes or legal violations by agents fall under the legal responsibility of the broker. Typically, brokers earn more money than agents and often work under their own management, with agents working under their company. But they also have more legal responsibilities and obligations. Once again, it is important to note that while all brokers must be licensed real estate agents, they are not necessarily Realtors. If you choose to work with a broker, make sure they are also a Realtor.
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