Definition of "REALTOR®"
The two terms used to describe professionals in the real estate industry are “realtor” and “real estate agent”. These two terms are used interchangeably or as synonyms. Using them as synonyms can create confusion as there are differences between real estate agents or REALTORS®. While their professional activity is so similar, their status is different. Confusion can happen because a REALTOR® is a real estate agent that is licensed and is also a member of the National Association of REALTORS® (NAR), which is the largest trading group in the US. The meaning of REALTOR®, according to NAR, is a membership mark that is federally registered, through which a real estate professional can be identified as a part of the association and also as a person that adheres to their code of ethics.
As we mentioned that a REALTOR® is a real estate agent, it is easy to see where the confusion comes from, but a real estate agent can be a REALTOR® or not. The definition of the term REALTOR® comes from their license of REALTOR®, hence the ® that comes with the term.
REALTORS® are considered higher on the payroll than real estate agents and are also held to a higher ethical standard even when compared to licensed real estate agents. REALTORS® can specialize in various fields but choosing a REALTOR® depends on what you need.
Being a REALTOR®
In order to keep their title, REALTORS® need to belong to a local association or board, while at the same time also belonging to a state association. It is expected of REALTORS® to be the best in their respective fields. Because of their membership in the National Association of REALTORS®, a REALTOR® must always respect the Code of Ethics that underlines various duties towards clients, the public, or other real estate professionals. The use of the trademark for REALTORS® is strictly regulated and controlled by the NAR under specific guidelines and strict rules.
What can REALTORS® become
REALTORS® don’t necessarily work as real estate agents, but that is among the most common professions for them. Another option would be to work as a real estate broker at a company. Brokers are in charge of running the agency, and they employ real estate agents to work for them. They can also have assistants. Most importantly, they operate a much more sustainable system through which they can limit their time on the road as real estate agents and delegate tasks to their employees to maximize profit. Brokers can own real estate brokerage businesses or entrusted to run a franchise operation.
Some other job opportunities for REALTORS® are property managers, counselors, appraisers, as well as other professions related to the real estate market.
Real estate tips:
Learn more by visiting several other terms on our Real Estate Glossary!
Find a real estate agent: we have tons of REALTORS® in our agent directory!
Popular Real Estate Terms
An Option Listing agreement is one of the many specificities of a Listing Agreement. Here’s what happens when the house seller signs an Option Listing: he gives someone (a home buyer, ...
A roof forming a triangle from the eaves to the ridge of the roof. ...
Conversion of a rental apartment house to individual condominium ownership of a portion of the minimum ownership of a portion of the building. Often, the tenant is given an opportunity to ...
Lender (such as a bank) that has the property of the borrower as collateral (security, lien). If the mortgage is not paid, the property may be sold to make payment on the outstanding ...
Geographic location where a court action and trial takes place. The legal proceedings should occur in the place where jurisdiction applies. A "change of venue" may occur in a criminal ...
Timber wood situated on the exteriors of a loading deck to safeguard it from damage resulting when trucks unload and load. ...
A recorded plat defines a subdivision map that you have to file in the county recorder’s office. It will show the location and boundaries of your parcels of land. Knowing this, we can ...
In real estate, Attractive Nuisance is how insurance companies classify something that is inherently dangerous and particularly enticing to children. A hazard located within a property that ...
Interest rate on a mortgage that moves up or down based on some variable such as an index of lender's cost of funds, inflation rate, or prime rate. ...
Have a question or comment?
We're here to help.