What is the main difference between a real estate broker and a real estate agent?

The main difference between a real estate broker and a real estate agent is that a broker has the ability to operate independently, while an agent is required to work under the supervision of a broker. This distinction is significant because it highlights the additional qualifications that brokers must possess, which include obtaining a higher level of education, completing additional training, and passing a more comprehensive licensing exam.

Brokers can manage their own real estate businesses and can also employ agents to work for them. This level of independence allows brokers to handle transactions directly with clients without needing a supervising broker, thus increasing their level of responsibility and potential for income.

In contrast, agents are typically restricted to operating under a broker's license and cannot conduct real estate transactions on their own. Their role often involves assisting brokers in various tasks related to buying, selling, or renting properties, but they lack the authority to operate a standalone real estate firm.

This fundamental structure in the real estate industry ensures oversight and adherence to regulations while allowing for a progression of responsibilities and capabilities from agents to brokers.