What is a Real Estate Broker?
*Please note: this is not meant to be legal advice. This blog post is purely informational. Please double check all sources.
When you’re buying or selling property, you may come across the term real estate broker, sometimes alongside agent or Realtor®. While these roles are closely related, they are not the same. Understanding what a real estate broker does can help you make more informed decisions in any real estate transaction, especially for land purchases.
Definition of a Real Estate Broker
A real estate broker is a licensed real estate professional who has completed additional training, education, and state licensing requirements beyond those of a real estate agent【1】. Brokers are legally authorized to work independently, open their own brokerages, or manage other licensed agents.
Brokers oversee transactions to ensure they comply with legal and ethical standards, often providing more advanced services than an agent can on their own.
Note: Licensing requirements vary by state. Some states require several years of experience as an agent, specific coursework, and passing a broker’s exam before obtaining a broker’s license.
What Real Estate Brokers Do
1. Oversee Transactions
Brokers guide clients through the entire buying or selling process. They help draft and review contracts, coordinate offers and counteroffers, and ensure that legal requirements are met at closing.
2. Supervise Other Agents
Many brokers manage teams of real estate agents who work under their license. They provide oversight, ensure compliance with state laws, and offer marketing and negotiation support.
3. Maintain Legal and Ethical Standards
Brokers carry greater responsibility than agents. They make sure transactions are legal, transparent, and properly documented, helping protect clients from potential issues.
4. Offer Market Expertise
With more training and experience, brokers bring valuable knowledge about pricing, zoning regulations, financing options, and market trends. This is particularly useful for land transactions, which often involve additional legal considerations.
Types of Real Estate Brokers
Principal Broker: The main broker responsible for a brokerage’s compliance and overall operations.
Managing Broker: Oversees day-to-day activity, including supervising agents and legal compliance.
Associate Broker: Holds a broker’s license but works under another broker instead of running their own firm.
Depending on the state, these roles may have slightly different titles or responsibilities.
Why Work with a Real Estate Broker
Advanced Training & Experience: Brokers often have deeper knowledge of contracts, laws, and negotiations.
Legal Protection: They ensure transactions follow state laws and help prevent costly mistakes.
Negotiation Power: Their experience can help secure better prices and terms.
Flexibility: Brokers can work independently or with a team, often giving clients more options.
Real Estate Broker vs. Real Estate Agent vs. Realtor®
A real estate agent is licensed to help clients buy and sell property but must work under a broker’s supervision.
A real estate broker can do everything an agent can — plus operate independently, manage agents, and open a brokerage.
A Realtor® is a broker or agent who is a member of the National Association of Realtors (NAR) and follows its Code of Ethics【3】.
Not all agents or brokers are Realtors®, but all Realtors® are licensed real estate professionals.
When It Makes Sense to Work with a Broker
While both agents and brokers can help with a property transaction, brokers can be especially valuable if:
You’re buying or selling large acreage or rural land
You need help with complex zoning or legal requirements
You want more direct oversight of your transaction
You prefer working with someone who can negotiate and handle issues in-house
Final Thoughts
A real estate broker plays a key role in ensuring property transactions are handled legally, efficiently, and strategically. While licensing requirements vary by state, brokers generally offer advanced knowledge, legal oversight, and flexibility that can be a major benefit to buyers and sellers alike.
Whether you’re purchasing land, a home, or commercial property, working with a qualified broker can make your experience smoother, safer, and more successful.