Key Takeaways
Roles & Qualifications Differ: Real estate agents, brokers, and Realtors each have distinct licensing requirements, responsibilities, and levels of expertise, knowing these differences helps you choose the right partner.
Brokers Offer Advanced Oversight: Brokers carry higher-level training and can operate independently, manage firms, and supervise agents, providing deeper transaction guidance and legal compliance support.
Realtors Follow a Higher Ethical Standard: Realtors are licensed agents or brokers who belong to the National Association of Realtors and must follow a strict Code of Ethics.
Designations matter in real estate, but many first-time homebuyers, new investors, and even seasoned property owners struggle to understand the differences between industry professionals.
Terms like Realtor, broker, and real estate agent are often used interchangeably, but they aren’t the same. Each refers to a professional with distinct qualifications, responsibilities, and legal roles.
Knowing these differences helps you choose the right level of guidance and representation when buying, selling, or investing.
In this article from KRS Holdings, we break down the key distinctions between real estate agents, brokers, and Realtors.
Understanding the Real Estate Industry
Professional oversight is necessary during real estate transactions due to the complexities involved in legal, financial, and contractual matters.
The industry has a regulatory structure supervised by state licensing boards and professional associations to ensure high standards of practice and protect consumers.
According to this structure, real estate professionals are divided into three major categories:
Real estate agents
Real estate brokers
Realtors
These categories have varying levels of certification, education, and affiliations. Even when they may collaborate, each of them plays a unique role in the real estate ecosystem.
What is a Real Estate Agent?
A real estate agent is a state-licensed professional who helps clients buy, sell, and rent properties, including investment homes, multifamily units, and commercial spaces.
For landlords and investors, agents are often the first point of contact when evaluating deals, marketing rentals, or navigating a transaction.
Real estate agents must follow state laws regarding professional conduct, disclosures, and agency relationships, and they always work under the supervision of a licensed real estate broker.
Typical Responsibilities of a Real Estate Agent Include:
Showing properties to potential buyers or tenants
Hosting open houses
Representing your interests during purchase, sale, or leasing transactions
Negotiating pricing and contract terms
Preparing and presenting offers
Marketing investment properties through photos, online listings, and MLS platform.
Recommending pricing strategies based on market data
Coordinating inspections, appraisals, and closings
Agents typically earn commissions, which are a percentage of the final sale or lease amount.
Limitations of Real Estate Agents
Although agents manage most day-to-day transaction tasks, they cannot operate independently. By law, they must work under a licensed broker who oversees and is legally responsible for their actions.
What is a Real Estate Broker?
A real estate broker is a higher-level real estate professional with advanced training, experience, and licensing. Unlike real estate agents, brokers can operate independently, manage their own firms, and supervise other agents.
For landlords and investors, brokers often provide deeper expertise in transactions, investment strategy, and legal compliance.
Brokers are legally responsible for the real estate agents under their supervision and must follow strict state rules regarding disclosures, contracts, and trust accounts.
What brokers can do (beyond a real estate agent) include:
Higher-level transaction guidance
Oversight and management of escrow and trust accounts
Direct supervision or training of agents working on your transaction
Review of contracts and disclosures for accuracy and compliance
Expertise in investment analysis, business operations, and property management
Brokers typically earn commissions, but they may also charge additional fees for certain services, depending on the structure of their brokerage.
Types of Real Estate Brokers
While all brokers hold advanced credentials, their roles vary:
Associate Broker: Fully licensed broker who chooses to work under another broker rather than operate independently.
Managing Broker: Oversees agents, daily office operations, and contract review within a brokerage.
Designated or Principal Broker: The highest-level broker responsible for the entire firm’s legal compliance, including all agents and associate brokers.
These distinctions matter because the level of oversight and expertise involved in your transaction often depends on the brokerage structure and the professionals supporting you.
What Is a Realtor?
A Realtor is a licensed real estate agent or broker who is a member of the National Association of Realtors® (NAR). Only members of this organization can use the title “Realtor,” which is a federally registered trademark.
For landlords and investors, the key distinction is that Realtors must follow NAR’s strict Code of Ethics, property standards that go beyond state laws and require higher levels of professionalism, honesty, and client advocacy.
Realtors have access to additional tools and resources that can directly benefit investors, including:
Ongoing education and ethics training
Detailed market reports and industry research
Professional support and networking opportunities
Access to multiple listing services (MLS), which helps market properties and analyze deals more effectively
Why These Differences Matter for Investors
Understanding these distinctions helps you:
Choose the right professional with the expertise your transaction requires
Know who holds legal responsibility in a deal
Evaluate the ethical standards of the person representing you
Identify the property value and insight they can bring to your investment strategy
Final thoughts
Understanding the differences between real estate agents, brokers, and Realtors helps ensure smoother, more efficient transactions, whether you’re purchasing a property, managing rentals, or expanding your investment portfolio.
As technology continues to reshape the real estate landscape, these roles are evolving, but each still provides a unique level of expertise and support.
The right professional for you will depend on your goals and the complexity of your transaction. When you clearly understand these distinctions, you’re better equipped to choose the level of guidance that aligns with your investment strategy.
In many cases, agents, brokers, and Realtors work together on the same transaction to ensure compliance, accuracy, and a streamlined experience.
If you’re a landlord or investor looking for expert guidance throughout the process, KRS Holdings can help connect you with the right professionals and provide the property management support needed to protect and grow your investment.