Real Estate Broker and Sales Agent Differences

Brokers and sales agents are distinctly different in the real estate business. Many home buyers and sellers do not know the difference between an agent and a broker. Both brokers and sales agents help their clients with the buying, selling, leasing, and renting of properties, but brokers are licensed to manage their own businesses, whereas the sales agents must work with a broker.

In California, a sales agent must be at least 18 years old, with proof of legal presence in the U.S. They must then have successfully completed three college-level courses: Real Estate Principles, Practice and one of twelve classes, such as Property Management or Economics. These classes must be three semester units of four quarter units each. The classes must also be completed at an institution accredited by the Western Association of Schools and Colleges, by a regional accrediting agency recognized by the U.S. Department of Education or by a private school that has been approved by the California Commissioner. Then the agent must pass a proctored written examination. Those passing the exam, have one year to submit an application to the Department of Real Estate for a California Real Estate License. A salesperson must obtain a license in order to conduct any activities. They must also work under the supervision of a licensed broker. The agent can’t contract in his own name, only in the name of his employing broker. Also, a sales agent can only receive compensation for his jobs from his employing broker.
The California Department of Real Estate has recently intensified the requirements of a broker’s license. Before applying for the broker’s examination, the agent must have worked a minimum of two years full-time, in the last five years. Applicants for a broker’s license must have passed all of these statutorily required college level courses: Real Estate Practice, Legal Aspects of Real Estate, Finance, Appraisal, Economics or Accounting. They must also complete three classes of eleven offered, such as: Advanced Legal Aspects of Real Estate and Mortgage Loan Brokering and Lending. The applicant must then pass a proctored written examination. This means that in order to become a broker one must have experience as an agent as well as more college level courses in this field.
While an experienced salesperson can handle your needs as a client, a broker is supposed to have a greater understanding of the intellectual aspects of real estate.

Written by Trenton Jansen
Jansen Team Real Estate
Visit my website at the link above to learn more information about real estate market reports or if you are looking for a knowledgeable Realtor in Orange County.

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