Common Misconception #2 = Real Estate Agent Vs. Real Estate Broker
There is another very common misconception around the term “Real Estate Broker”. There is the understanding of the word as a verb and also as a noun, both of which have two very different meanings.
I have heard it where real estate agents call themselves real estate brokers, and even people will call their real estate agent a broker as well. On one hand they are right in a sense that that is what they do.
Real estate agents do broker real estate transactions, but if you are using the term to describe their title, then you would be wrong. They are simply real estate agents.
The state licensing boards have an apprenticeship type setup when it comes to real estate licensing.
Every licensed agent must have a broker to sponsor them in order to become an active agent, and be able to practice real estate. And, even then the Broker owns all of the transactions; the agent is the facilitator while the broker is the one who is primarily responsible for the transaction.
In order to be a Real Estate Broker, a real estate agent must practice real estate for a set amount of years, and conduct a decent amount of transactions in those years. They must also complete about 5 times more education, and in Texas that is 900 classroom hours compared to 180 for the agent.
That is why there are a lot more agents than there are brokers. The hurdle is set pretty high, and I’m sure they have really good reasons why.
In any case you are more the wiser now that you have a clear understanding of the term Broker and how you can use it in casual conversations.