Brokers and sales agents are clearly different in the real estate business. Many home buyers and sellers don’t know the difference between an agent and a broker. Both brokers and sales agents help their clients with the purchase, sale, lease, and rental of properties, but brokers are licensed to run their own businesses, while sales agents must work with a broker.
In California, a sales agent must be at least 18 years of age, with proof of legal presence in the U.S. Then they must have successfully completed three college-level courses: Real Estate Principles, Practice, and one of twelve classes, such as Property Management or Economics. These classes must be three semester units of four quarter units each. Classes must also be completed at an institution accredited by the Western Association of Schools and Colleges, by a regional accrediting agency recognized by the US Department of Education, or by a private school that has been approved by the California Commissioner. The agent must then pass a supervised written exam. Those who pass the exam have one year to submit an application to the Department of Real Estate for a California Real Estate License. A seller must obtain a license to carry out any activity. They must also work under the supervision of a licensed broker. The agent cannot contract in his own name, only in the name of the broker who employs him. Also, a sales agent can only receive compensation for his jobs from the broker who employs him.
The California Department of Real Estate has recently stepped up the requirements for a broker’s license. Before applying for the broker exam, the agent must have worked a minimum of two years full time, in the last five years. Applicants for a broker license must have passed all of these law-required college-level courses: Real Estate Practice, Real Estate Legal, Finance, Appraisal, Economics, or Accounting. They must also complete three classes of eleven offered, such as: Advanced Legal Aspects of Real Estate and Brokerage and Mortgage Loan. The applicant must then pass a supervised written exam. This means that to become a broker you must have experience as an agent, as well as more college-level courses in this field.
While an experienced salesperson can handle your needs as a client, a broker is supposed to have a greater understanding of the intellectual aspects of real estate.
