What is the primary difference between a "broker" and an "agent"?

The primary difference between a broker and an agent lies in the level of licensing and the responsibilities that come with that designation. A broker must meet more extensive education and experience requirements compared to an agent. Brokers are authorized to manage real estate firms, oversee agents, and handle transactions on a larger scale. They can operate independently or employ agents to work for them.

In contrast, an agent typically works under the supervision of a broker, executing real estate transactions and representing clients in the buying or selling process, but they do not have the same breadth of authority as a broker. This distinction in licensing also signifies the level of knowledge, responsibility, and fiduciary duties that each role carries within the real estate industry.