What is the difference between a Broker, a Realtor, and a real estate agent?
This is based on Indiana laws and regulations. Your state may vary.
In 2014 all real estate agents are required to get their Brokers license. All new agents will get their Brokers license from the beginning. The state of Indiana is doing away with the basic licensing for an agent. It used to be that to manage other agents you had to have a brokers license. Getting a Brokers license requires more training and a more in depth understanding of real estate as a business.
The terms REALTOR® and real estate agent or broker are not interchangeable titles. In fact, real estate agents or brokers can only use the title REALTOR® if they are members of the National Association of REALTORS® (NAR) and subscribes to its strict Code of Ethics.
REALTOR® Code of Ethics
The Code establishes time-honored and baseline principles that come from the collective experiences of REALTORS® since the Code of Ethics was first established in 1913. Those principles can be loosely defined as:
- Loyalty to clients;
- Fiduciary (legal) duty to clients;
- Cooperation with competitors;
- Truthfulness in statements and advertising; and non-interference in exclusive relationships that other REALTORS® have with their clients.
Since the word REALTOR® is a registered trademark with the word itself being in all caps, only its membership can use the title and logo in their marketing and advertising collateral.