The terms real estate agent, real estate salesperson, and REALTOR® are often confused and misused by the general public in reference to who can do what. The terms refer to different roles and different qualifications. Let’s break each of them down for better understanding as to why the differences are important to understand while buying, selling, or investing in real estate.
What is a Real Estate Agent?
A real estate agent is sometimes used to refer to a person who is involved with the buying, selling, or leasing of properties. This term is usually a catch-all and refers to both real estate salespeople and real estate brokers.
Real estate in Ontario is governed by the Real Estate and Business Brokers Act, 2002 (REBBA), which outlines the standards of qualification for this profession. A real estate salesperson is someone who has successfully finished the prerequisites in education and training, examinations, and is registered with the Real Estate Council of Ontario (RECO).
On the other hand, a real estate broker is someone who has received more education and passed more examinations compared to the salesperson. With this additional training, he or she can manage or even own a real estate brokerage, establishing greater responsibility and authority for him or her within the industry.
So, while “real estate agent” is a general term, it should be noted that both the salesperson and the broker can be referred to as agents; the difference lies in education and the extent of their responsibilities.
What is a Real Estate Salesperson?
A real estate salesperson is licensed under a real estate brokerage; he or she helps clients in buying, selling, and leasing properties but does not own a brokerage. In Ontario, future salespeople must take the mandatory real estate education courses and exams, and then register with RECO to practice legally.
They are trained on the legal aspects of a real estate transaction, including contracts, market analysis, and property law, to ensure that the clients will receive professional advice and guidance from the salespeople.
What is a REALTOR®?
A REALTOR® is a special designation given to real estate professionals who are members of the Canadian Real Estate Association (CREA). It’s important to note that the term REALTOR® is a trademark and not a job title like “real estate agent” or “salesperson”.
To become a REALTOR®, a real estate salesperson or broker must first be registered with RECO, and then become a member of CREA. Members of CREA who are REALTORS® must abide by a stringent Code of Ethics and professional standards that exceed those basic requirements defined in REBBA.
In other words, all REALTORS® are licensed real estate professionals, but not all licensed real estate professionals are REALTORS®. The REALTOR® designation is an indication that a real estate broker subscribes to a strict code of ethics and extraordinary service to clients.
Top Differences Between a Real Estate Agent and a REALTOR®
Membership: A real estate agent can be a salesperson or a broker, but a REALTOR® is a member of CREA.
Ethics: REALTORS® follow CREA’s Code of Ethics, a standard of practice much above the basic regulatory framework that is required of non-REALTOR® agents. Access to MLS®: REALTORS® have access to the Multiple Listing Service® (MLS®), a powerful tool that helps them list properties for sale and access up-to-date information on available homes.
Training and Knowledge: REALTORS® are not only licensed professionals; they also have access to special training and resources through CREA, which gives them the knowledge and tools to better serve clients.
Why the Difference Matters
Consumers need to know the difference between a real estate agent and a REALTOR®. While the former may be able to help you with a sale or purchase of a real estate property, the latter guarantees you more benefits, such as a commitment to higher moral and ethical standards and access to the Multiple Listing Service, as well as networking with other business professionals. Buyers and sellers of property in Ontario can take comfort in the knowledge of dealing with a REALTOR®: they realize that they are bound to high professional standards and part of a national organization dedicated to the protection of the consumer and excellence in real estate.
Conclusion
In other words, while the term “real estate agent” is used to refer to both salespeople and brokers, a REALTOR® is a licensed professional who is a member of CREA and follows a higher ethical code. These are the distinctions that consumers should be concerned with, as they need to be sure that the professional they are dealing with is one who would provide services according to their needs and at the highest level. Whether buying, selling, or investing, it would always be very important to choose a real estate professional who has the experience, qualifications, and commitment to helping you hit your targets.