Real Estate Broker
Definition of "Real estate broker"
One of the most recurring real estate doubts is regarding what is a broker in comparison to what is a real estate agent.
Well, it depends from state to state to tell exactly what a Broker can and cannot do, but it’s safe to say that, in every state, a Real Estate Broker is someone with more real estate education and experience than a real estate agent. To become one, you have to attend a certain number of Real Estate classes and pass the state exam. The duration of those classes is longer than the ones an agent goes through and the exam they take is more difficult to pass too. Summing up: although all Brokers can act also as Agents, not every Agent can act as a Broker.
In general, you could say that a Broker is the person with the certification necessary to list the property and sign the papers and overview the transaction between the home seller and the home buyer. But there is a large variety of other services he/she provides for home sellers and home buyers, like Comparative Market Analysis (CMA), preparing contracts and acting as the guardian of the escrow. Sometimes, the home seller or buyer doesn’t even meet the Broker, but a real estate agent that works under him/her.
The Broker is the one who collects the commission once the sale is made and he/she divides the value to all participating parts like the buyer’s agent and the seller’s agent – most of the times an employee of his, but, depending on the type of listing agreement (like an Open Listing) it can be someone independent from him/her.
Popular Real Estate Terms
Inverted gable roof design where the two side slope upward from the center to the eaves with a valley in the middle. The roof resembles the wings of a butterfly, hence, the name. ...
Deed used to convey property back to the original property owner. Normally a reconveyance deed is issued upon the satisfaction of a property's mortgage. ...
Law enacted by a local authority applicable to the action of people or things. An example is a fine of $5,000 for littering vacant real estate. ...
Generic name given for any association of property owners sharing an interest in commonly owned property. Community associations may be developed in condominium, cooperative, or housing ...
Gentrification is an urban development phenomenon wherein a specific area changes its population profile by way of an economic appreciation of its real estate. The best way to understand ...
Funds that are retained in an account until a certain event occurs. For example, a downpayment on a contract held until full payment is received whereupon the holding funds are credited to ...
The largest financial intermediaries directly involved in the financing of real estate. Commercial banks act as lenders for a multitude of loans. While they occasionally provide financing ...
Using beams on an interim basis while a structure is being built. Reinforcing a building with supports. A property. ...
All the costs involved in constructing a development project including the cost of acquiring a parcel of land, paying for contractors labor, materials as well as taxes and development loan ...
Have a question or comment?
We're here to help.