realestate broker

What Is The Difference Between Real Estate Agent And Broker?

Last Updated: November 19, 2021By

We usually take real estate agents and a broker for the same meaning, but both are far different in their nature, duties, and responsibilities. A broker is a person who holds a specialized license to operate his work independently. He hires the brokers to work under his sponsorship. However, the brokers also have a real estate license to perform their work under the real estate flag. Every broker must have support from a registered broker in the form of sponsorship. There are more differences than this basic one. Let’s have a detailed overview of the differences.

The real estate agents buy, sell, or rent out the properties on the customer’s behalf and charge a commission as a salary. But the broker arranges, negotiates and oversees all the real estate transactions. They are independent in their deals and work.

Types of Real Estate Brokers:

Real estate brokers have different responsibilities and work of nature as compared to an agent. That depends on the way they take to proceed with their career in the real estate industry. He can be managing, designated, and associate broker.

There are three types of Real Estate Broker in Arlington, Texas:

Managing Real Estate Brokers:

This kind of broker works under the supervision of a firm and is responsible for managing day-to-day activities.

Designated Real Estate Brokers:

They are called the owner brokers. They are responsible for all the activities of agents working under him. He will be liable for all legal actions.

Associate Real Estate Brokers:

These agents have upgraded their licenses, but they don’t have any additional managerial or operational responsibilities.

Types of Real Estate Agents:

There are different kinds of Real Estate agents as they can act as sellers agents and as buyer’s agents. They can also act as both that depending on their contract. They can work as a listed agent also. Sometimes they operate under a broker’s firm. So an agent is a person who performs different kinds of responsibilities and actions throughout his career. There are four major types of real estate agents.

Transaction agent:

When a buyer doesn’t hire a real estate agent, the listing agent acts as a transaction agent to fill the formalities to write the offer for the buyer.

Buyer’s agent:

A real estate agent acts as the agent of the buyer. He performs all the actions to fill the buyer’s need, like searching for a new home, guiding the buyer about the market trends, and getting the ideal home for the buyer at the most reasonable price.

Listing agent:

The listing agent acts as the seller’s agent. He makes sure that the homeowner gets the best price for his home.

Dual agent:

An agent that acts as both buyers and sellers agent at the same time. He agrees on both parties to some mutual ground for a deal.

Responsibilities of Real Estate Brokers vs. Agents:

The primary difference between the real estate broker and the agent is the difference of ownership. A real estate broker can own the real estate firm and can manage agents working under him. On the other hand, an agent works for the buyers and sellers only. They need a sponsorship from a broker, and they have to work under the supervision of a sponsoring broker. Brokers also work the same, but along with selling and purchasing, they manage contracts, training, and marketing campaigns for real estate projects.

Advantages of Being a Real Estate Broker vs. Agent:

Despite additional education and licenses, a broker has lots of perks over the agents. A broker has more opportunities to grow in this field. At the same time, an agent has limited scope for growth and opportunities. There are the five benefits a broker can enjoy but a real estate not;

Own brokerage:

A real estate broker can work as an independent person that means they will have more commissions. They don’t have to split their commissions with someone like agents. They have leverage that they can be a mentoring or trainer broker. It’s a significant position for brokers who have ample experience in this field. Agents don’t have such opportunities to flourish in their work areas.


Most agents try to be Real Estate brokers not because they have more opportunities and responsibilities but they do generate more money. Brokers don’t have to share their commissions with others. But the agents have to share a portion of their commissions with the sponsored broker.

Management companies:

A broker can run a property management company and can earn more money. Leasing and running properties on rent need a broker’s license. Therefore a broker is required for a management company as a staff member. Nowadays, people rely on property management companies more than agents.

Mentorship services:

An experienced broker can be a mentor who can train or manage other agents. The professional broker can get a senior position in a property management firm on a handsome salary. However, despite experience, an agent cannot act as a mentor because of the absence of a license.

Limited financial liability:

Agents don’t have any legal, financial liability to other agents. They are responsible for their work and actions. On the other hand, A broker is responsible for all the agents working under their supervision.

If you want to sell your home quickly in Arlington, Texas, then you should hire a broker who has an authentic license for brokerage. In Texas, a broker must have to take a 900h broker relicensing course. Real Estate Brokers have more experience, get more training, and make more money than real estate agents. They are the only professionals that can hire agents and own their property firm. However, agents have fewer responsibilities and limited liabilities. If an agent wants to be a broker, he has to upgrade his license to make more money and get more opportunities. He has to own some properties and have to manage them. There are lots of schools and universities that offer courses to be a real estate broker. Anyone can pick according to his ease.