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
Passageway existing from property. An agree may lead to a roadway or some other form of exit. ...
The legal right of a widow to a portion of her deceased husbands real property. ...
Concrete with steel rods inserted into it to provide additional working load support. The premise is that both materials will act together in resisting loan stress. ...
Space reserved for specified vehicles. For example, an office building may have space available for automobiles of tenants, clients of tenants, and other visitors. Parking facilities may be ...
Present worth of the property which is different than the price paid for it or its book value (cost less accumulated depreciation). The current value may be determined through appraisal. ...
lease computed as a percentage of the underlying appraised property value. Under the terms of a reappraisal lease, the rent is periodically adjusted using an independent appraisal of the ...
Loan mandating equal periodic payments to pay off the loan subsequent to the last payment. ...
Housing where affirmative action is actively pursued encouraging people of all races, nationalities, and religions to purchase or rent the facilities. ...
The term foraging comes from the old germanic language, which passed through Old French “fuerre” and “fourrage” and it means the search for wild food resources. ...
Have a question or comment?
We're here to help.