If you want to work in the real estate industry, you can become a real estate agent and a broker at the same time. The difference between the two is the level of responsibility. Agents must follow the rules of a real estate broker, whereas brokers are not required to follow those rules. Real estate agents can be a licensed broker, but they are not principal brokers.
When accepting dual agency, a real estate agent becomes a neutral party. In dual agency, a real estate agent can’t perform their usual tasks as buyers’ or sellers’ agents. That means they can’t provide counseling or advice to either buyer or seller, but their role is still crucial in completing a real estate transaction. One of the most common complaints from consumers is lack of communication. It is unprofessional to lack communication when dealing with your clients’ largest financial asset.
It’s important to note that the licensing requirements for real estate brokers vary from state to state. For example, Colorado agents must hang their license in the office of a managing broker, who oversees the agents’ activities. Colorado agents must hang their licenses for two years in their managing broker’s office. Each broker requires different education requirements for their licensees. Some may allow candidates to skip the pre-licensing education.
A real estate broker also has additional advantages. As a broker, you’ll be responsible for hiring and managing other real estate agents. You’ll also earn a large commission when a transaction is closed, but your broker will still earn 100% of the commission. You can also work for yourself or hire agents to share the workload, and you can split the commissions. You can even choose to create a firm in which all agents earn 100% of the commission.