QUESTION: Sir John, what is the difference between a Real Estate Broker from a Real Estate Salesperson?
ANSWER: A Broker is the manager and supervisor of Salespersons. Salespersons are field operatives who hunt buyers and present the properties for sale or lease. Clients pay the commission to Brokers. Brokers share the commission to Salespersons.
Brokers pass the board exam and they have higher educational requirement to become licensed. Salespersons are trained the same way as Brokers but they don't have board exam and the required educational attainment is slightly lower compared ...to the broker.
Brokers are licensed and they have professional performance bond. Salespersons are registered under the license of the Broker.
Brokers can sign contracts and listing agreements and can receive/handle money from clients for the payment of the properties sold. Salespersons are not allowed to do these.
Brokers spend much time in office, supervising salespersons, and closing contracts with clients. Salespersons spend most of their time outside the office looking for buyers and presenting the properties in the listing.
Salespersons are not allowed to make an independent real estate agency operation outside the knowledge, direct control, and supervision of the Broker.