Real Estate Agent Vs Broker Vs Realtor®

Real Estate Agents Vs Real Estate Brokers Vs Realtors®

Is there a difference between a real estate agent, real estate broker and a Realtor®? The answer is, Yes! Generally speaking, the public at large is unaware of the differences – or even the fact that there is a difference between real estate agents, real estate brokers and Realtors®. A real estate agent is simply a “state licensed salesperson” that MUST work under the license of a real estate broker. A real estate broker is an individual who has advanced his/her career beyond that of a real estate agent and has earned the right and is authorized to manage real estate agents. A “REALTOR®” is a designation that’s assigned to either a real estate broker or a real estate agent. In order to call yourself a “REALTOR®” or use the REALTOR® logo in your advertising, you must pay yearly membership dues to the National Association of REALTORS®, otherwise referred to as NAR.

What Is A Real Estate Agent?

A real estate agent is a salesperson who has successfully completed their state’s licensing requirements. Once you have completed your state licensing requirements and have successfully passed the exam, you are now a “state licensed real estate agent,” which enables you to assist clients (only in the state you are licensed) who wish to buy, sell or rent real property (residential or commercial) on behalf of your designated real estate Broker.

What Is A Real Estate Broker?

A real estate broker is a real estate agent that has furthered his/her education and has successfully passed the state of Ohio Real Estate Broker Exam. An Ohio real estate broker has the option of registering and opening a real estate brokerage, working independently, or hiring and employing real estate agents. Ohio real estate brokers negotiate with buyers and sellers and are paid a commission. A broker can also determine what commission structure real estate agents that work under his/her license will receive.

What Is A Realtor®?

A Realtor® is either a real estate agent or real estate broker that has chosen to pay hefty membership dues to the National Association of Realtors, The Ohio Realtors, and a Local Board of Realtors in order to use the “REALTOR®” logo and advertise his/her services using the “REALTOR®” trademarked designation. All REALTORS® are agents, but not all agents are REALTORS®. The National Association of Realtors has had some major legal issues of late with the most recent being a billion dollar lawsuit the organization lost for “colluding to artificially inflate agent commissions.” The jury ultimately agreed that there was a conspiracy among Realtors to keep their fees artificially high. If this isn’t bad enough, the National Association of Realtors has recently apologized for their past racist policies. For these reasons and many others, we choose to NOT associate ourselves with the National Association of Realtors (NAR). If you are interested in learning more about NAR’s legal issues, you can read a recent article that we posted by clicking HERE.

How To Get A Real Estate Agent License in Ohio?

It’s important to understand that real estate licensing requirements vary from state to state. With that being said, we are located in Dayton Ohio, so we will specifically discuss the requirements that you must meet in order to get a real estate license in Ohio. Any person wanting to become a licensed real estate agent in the state of Ohio must be a U.S. citizen 18 years of age or older, with a high school diploma or GED, and must not have any felony convictions or have been convicted of a crime of moral turpitude. Any candidate seeking an Ohio real estate license must not have violated any civil rights laws regarding real estate within the past two years as determined by a court of law or violated any rules of the Ohio Division of Real Estate.

Once you have successfully passed the Ohio real estate licensing exam, you now have the ability to practice real estate in the state of Ohio under a licensed real estate broker. Once you are a licensed practicing real estate agent, you will work with your broker to determine which role within the brokerage you are best suited for and will have the most success performing. Generally speaking, you can choose to be a listing agent, buyer’s agent, dual agent, or a salaried real estate assistant.

Are New Construction Home Builders Sales Associates Licensed Agents?

If you are interested in becoming a sales associate for a home builder, you DO NOT have to be a licensed real estate agent in the state of Ohio to sell new construction homes or work as a sales associate for a custom homebuilder. But, if you are thinking about buying a newly constructed home from a local builder, you will definitely want to have a real estate agent accompany you before visiting any new subdivisions or new construction communities. Home builders are not held to the standards that a licensed real estate agent is held to and, because of this, they will sometimes take advantage of buyers that do not have proper representation. As a licensed real estate agent in Dayton Ohio, I refuse to send clients that are looking to purchase new construction homes to any home builder that is not willing to pay a real estate agent commission (there are a few in Dayton Ohio and surrounding areas).

Listing Agent (Listing Real Estate Agent in Dayton Ohio)

A listing real estate agent in Dayton Ohio will assist homeowners wishing to sell a property. As a listing agent, you have a fiduciary duty to represent the best interests of the seller(s) in compliance with rules and regulations set forth in Ohio real estate licensing law. Once a listing real estate agent is contacted by a homeowner that is interested in listing and selling their home, a listing agent will first provide sellers with pertinent documents needed to list a home for sale. These documents, which are sometimes referred to as a “listing package” or “listing packet,” will include the following documents:

• Real Estate Listing Agreement (Real Estate Listing Contract)
• Consumer Guide to Agency Agreement
• Residential Property Disclosure Forms
• Sellers Consent to Disclose
• Lead Based Paint Disclosure
• FEMA Flood Zone Disclosure
• Affiliated Business Arrangement Disclosure
• Estimated Sellers Net Proceeds Document

Buyer’s Agent (Buyer’s Real Estate Agent in Dayton Ohio)

A buyer’s agent in Dayton Ohio is a state licensed real estate agent who represents the buyer during the home buying process. As a buyer’s real estate agent, you will have a fiduciary duty to act in a way that will benefit your clients’ best interests. As a licensed Ohio real estate agent, you will adhere to the following six categories that fiduciary duties fall into: loyalty, confidentiality, accounting, disclosure, obedience, and reasonable care and diligence. The general duties of a buyer’s agent include assisting potential home buyers in their search for a property that matches a price point acceptable by the buyer(s). Once your clients (potential home buyers) have found a home that they would like to make an offer on, you will gather and prepare the proper documents, prepare an offer to purchase, have your clients sign the offer and then present the offer to purchase to the listing agent in a timely manner. Now that you have submitted the buyer’s offer to purchase, you must be prepared to accept, present and negotiate any counter offers. Once you have a fully signed and accepted contract to purchase, you will need to collect the buyer’s earnest money and then immediately deposit the buyer’s earnest money into your real estate brokerage’s designated trust account. After you have deposited the buyer’s earnest money, you should immediately schedule inspections, making sure that you adhere to the agreed-upon inspection period in the purchase contract. When assisting a potential home buyer, the documents you will need in order to write an offer are sometimes referred to as a “buyer’s package” or “buyer’s packet” and will include the following documents:

• Real Estate Purchase Agreement (Real Estate Purchase Contract)
• Buyer Agency Agreement (Exclusive Right To Represent)
• Consumer Guide to Agency Agreement
• Residential Property Disclosure Forms
• Lead Based Paint Disclosure
• FEMA Flood Zone Disclosure
• Affiliated Business Arrangement Disclosure
• Earnest Money Accountability Form
• Buyer’s Pre-Approval Letter From Their Bank or Lender