There is a distinct difference between a real estate broker and a real estate agent; both in terms of the levels of responsibility and the expertise each have within their respective roles. In both cases they need to be licensed by the state before they can operate.

A real estate broker is the person who owns the real estate business and is therefore one who would be committed to a strategy of success for the enterprise. In addition to the state requirements to enable operation in this market, he or she would be expected to have the necessary experience to be able to competently manage a business of this nature. Therefore a real estate broker would be expected to know the real estate movement and prospects within their local area and have a reasonable idea of current market trends.

Furthermore, the real estate broker is responsible for the selection of and the activities and conduct of the real estate agents who work for them. To maintain their license, brokers have to ensure that, in all dealings with their clients, the business is trustworthy and honest, providing a quality service for a reasonable return. To this end it is in the broker's interests to ensure that he or she employs the highest caliber of personnel to work for them.

A real estate agent is an individual person employed as an integral part of a broker's sales force. As with a broker, an agent has to undergo formal training and be state licensed. A real estate agent has to work for a broker and therefore cannot set himself or herself up as independent worker within the real estate business. In effect the agent acts as a negotiator between the seller and the buyer. What has to be remembered however is that normally the agent will be an independent contractor who is working under contract to the broker on a commission basis. As a result, he or she will be keen to complete a sale so that they can make their income targets.

In effect this real estate business structure offers the consumer a double layer of protection. The agent's license protects the consumer from adverse actions being undertaken by the agent and the brokers' license means that there is a monitoring of the agents work and an added protection for the consumer against detrimental acts performed by the business. Thus it is essential for your own piece of mind that, when buying or selling a property, you engage the services of a suitably qualified real estate broker and agent.