Real estate agents and real estate brokers are people who represents sellers or buyers of real estate or real property. While a broker may work independently, an agent usually works under a licensed broker to represent clients.[1] Brokers and agents are licensed by the state to negotiate sales agreements and manage the documentation required for closing real estate transactions. Buyers and sellers are generally advised to consult a licensed real estate professional for a written definition of an individual state's laws of agency.
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A real estate broker typically receives a real estate commission for successfully completing a sale. Across the U.S, this commission can generally range between 5-6% of the property's sale price for a full-service broker but this percentage varies by state and even region.[2]
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In most jurisdictions in the United States, a person must have a license to perform licensed activities, and these activities are defined within the statutes of each state.
Some other states have recently eliminated the salesperson's license, instead, all licensees in those states automatically earn their broker's license.
The term "agent" is not to be confused with salesperson or broker. An agent is simply a licensee that has entered into an agency relationship with a client.
In all states, the real estate licensee must disclose to prospective buyers and sellers the nature of their relationship [4]
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