Understanding the Distinction Between a Realtor and a Real Estate Agent

Understanding the Distinction Between a Realtor and a Real Estate Agent

Real Estate Agent License Overview

A real estate agent is a professional licensed by the state to assist individuals in purchasing, selling, or renting properties. Without an active state-issued license, one cannot legally operate as a real estate agent. It's important to note that a real estate license is valid only in the state where it's obtained, though some states offer reciprocity agreements allowing agents to practice in multiple jurisdictions.

Steps to Obtain a Real Estate License

The general requirements to secure a real estate license include:

• Age and Residency: Being at least 18 years old and a U.S. citizen or legal resident.
• Educational Coursework: Completing a designated number of hours in real estate education, typically ranging from 30 to 90 hours.
• Examination: Passing a state-administered real estate exam that covers both national and state-specific laws.
• Licensing Fees: Paying the required fees for licensing.
• Broker Sponsorship: Securing sponsorship from a licensed real estate broker.

Once licensed, agents must engage in continuing education and renew their licenses as mandated, usually every 2 to 4 years. Additionally, agents operate under the supervision of a licensed broker, managing daily tasks while the broker oversees their professional activities.

Realtor Designation Explained

The term "Realtor" refers to a real estate professional who is an active member of the National Association of Realtors® (NAR). This membership distinguishes them from non-member agents and signifies a commitment to uphold NAR's stringent Code of Ethics. It's noteworthy that NAR membership doesn't confer a separate license but serves as an additional credential.

Criteria for Becoming a Realtor

To earn the Realtor designation, one must:

• Hold an Active Real Estate License: Ensuring legal authority to practice.
• Industry Engagement: Being actively involved in real estate activities.
• Clean Legal Record: Maintaining a clear civil and criminal history for the past seven years.
• Financial Stability: Having no pending bankruptcies.
• Professional Standing: Being free from professional sanctions.
• Ethics Commitment: Agreeing to adhere to the NAR Code of Ethics.
• Orientation Completion: Finishing an introductory course about NAR's standards and practices.
• Membership Dues: Paying the necessary fees for national, state, and local association membership.

It's essential that the principal broker of a firm is a NAR member before other agents in the firm can join. Many agencies designate a Realtor to fulfill this requirement, enabling their agents to access the benefits of NAR membership.

Additional Certifications and Designations

Realtors have the opportunity to pursue further certifications and designations through NAR, enhancing their expertise in specialized areas. These credentials can set an agent apart in the marketplace and demonstrate a higher level of commitment to their profession.

Do You Need Both a License and the Realtor Designation?

Legally, practicing real estate requires only a state-issued license. However, obtaining the Realtor designation can be advantageous for advancing their careers. Membership in NAR offers access to extensive resources, networking opportunities, and a reputation for adhering to elevated ethical standards, which can appeal to clients.

In summary, while all Realtors are licensed real estate agents, not all agents become Realtors. Understanding this distinction is crucial for both professionals in the field and consumers seeking real estate services.

For personalized assistance in your real estate journey, feel free to contact me, Scott Miller, at (760) 264-3501 or via email at scottmiller@epique.me. Visit my website at www.homeswithscottkmiller.com for more information.