Most people have heard the term "Real Estate Agent" and some have heard of "Real Estate Broker". But what is really the difference? Is there any difference between the two as far as buyers and sellers are concerned? Read on to discover that there is.

The basic difference is experience, training and licensing.

In order to become a "Real Estate Agent", an individual is required to take one real estate class and a state mandated exam. In that exam, a score of 70% or better is required to pass. The applicant then commits to taking two more classes within 18 months after getting their real estate license. As of October 7, 2007, the laws will be changed to require aspiring real estate agents to take all three courses before sitting for the real estate exam. Here is an article I wrote on this new law .

Once you are a licensed Real Estate Agent, you can go to work for a Real Estate Broker. Agents cannot simply go out and start working as an agent, they can only do so if they are working under someones brokers license. The broker oversees the agents providing them with the support they need to perform their job.To become a Real Estate Broker, let me quote directly from the Department of Real Estate website:

"...Experience: A minimum of two years full-time licensed salesperson experience within the last five years or the equivalent is required.

Education: Applicants for a real estate broker license examination must have successfully completed the following eight statutorily required college-level courses:

• Real Estate Practice
  
• Legal Aspects of Real Estate
  
• Real Estate Finance
  
• Real Estate Appraisal
  
• Real Estate Economics or Accounting
  
• And three* courses from the following group:
  
• Real Estate Principles
  
• Business Law
  
• Property Management
  
• Escrows
  
• Real Estate Office Administration
  
• Mortgage Loan Brokering and Lending
  
• Advanced Legal Aspects of Real Estate
  
• Advanced Real Estate Finance
  
• Advanced Real Estate Appraisal
  
• Computer Applications in Real Estate
• Common Interest Developments"

In addition to the requirements listed above, a Broker must pass another exam. The brokers exam is longer (over 5 hours versus the agents exam of 3 hours), covers more difficult content and must be passed with 75% correct instead of the 70% for the agents exam.

The last time I checked the numbers, over 50% of examinees failed the agents exam on a regular basis. For the brokers exam, I have heard that over 70% of examinees fail the exam.

As you can see, there is a pronounced difference between what it takes to be a Broker and an Agent.

Once you are a Broker, you can start your own office and have Agents working for you. Or you can simply work alone.

So when you are looking for someone to represent your interests in real estate, at least you can count on a higher level of training, experience and verified knowledge when working with a licensed real estate broker.