Real Estate Titles Explained: Agent, Broker, REALTOR®
REALTOR® and other titles for real estate professionals can be confusing. Most people believe that everybody that sells real estate is a REALTOR®. They are not.
The real estate profession is regulated by state governments, which have different requirements for earning a license. In general, though, the titles you may come across include: real estate agent, real estate broker, affiliate broker, principal broker and REALTOR®.
In Tennessee, those that are commonly referred to as a real estate agents can be a person who holds one of three licenses issued by the Tennessee Real Estate Commission. They are:
- Affiliate broker: A licensee who has qualified for, taken and passed the examination to be licensed to sell real estate. Most states refer this position as a real estate sales person.
Those wishing to begin a career in real estate in Tennessee will for the most part enter as an affiliate broker. Affiliate brokers must be "affiliated" with a "Principal Broker" who is responsible for the affiliate’s actions as a licensee. Although an affiliate broker can be new to the industry, it is not uncommon for affiliate brokers to be seasoned agents with decades of experience.
- Real estate broker: A person who by meeting certain educational requirements and having at least 3 years active experience as an affiliate broker has qualified to take and pass the examination to be a broker. Unless the broker becomes a principal broker, they also have to affiliate with a "Principal Broker" who is responsible for the broker’s actions as a licensee. Many states refer to this position as an associate broker.
- Real estate principal broker: A person licensed as a broker, who has been designated as the principal broker in charge of a real estate firm. A "Principal Broker" is solely responsible to the Tennessee Real Estate Commission for the actions of every person including every affiliate broker and every broker whose license is affiliated with the firm which the "Principal Broker" is in charge.
- REALTOR®: An affiliate broker, broker or principal broker who is a member of the National Association of REALTORS®. Only members of the NAR can use the title REALTOR®. Not all licensees are REALTORS®. Joining the National Association of REALTORS® is optional. However, if a "Principal Broker" is also a REALTOR®, then it is required for all licensees affiliated with that "Principal Broker-REALTOR®" to also join the National Association of REALTORS® and become a REALTOR® as well.
The Association of REALTORS® is a three level organization. When becoming a member, a REALTOR® will belong to: The National Association of REALTORS®, the Tennessee Association of REALTORS® and one of 21 local Association of REALTORS® in Tennessee.
The following are the 20 local REALTOR® Associations in Tennessee and the Division they belong:
TENNESSEE REALTORS
Tennessee Association of REALTORS®
901 19th Avenue South
Nashville, TN 37212
(615) 321-1477 or (877) 321-1477
Legal Hotline: (800) 899-5297
About the REALTOR® Code of Ethics Training Requirement
REALTORS® are required to complete ethics training of not less than 2 hours, 30 minutes of instructional time within two-year cycles. The training must meet specific learning objectives and criteria established by the National Association of REALTORS®.
New licensees that join the National Association of REALTORS® generally meet this requirement during their REALTOR® orientation.
A new two-year cycle began January 1, 2017. The deadline for this cycle is December 31, 2018. The Career Institute offers Ethics and Professional Conduct #4427 which meets the requirements of NAR and provides four (4) hours of continuing education to renew your license.
Training may be completed through local REALTOR® associations or through another method, such as home study, correspondence, classroom courses, or online courses.
Do not confuse the required REALTOR® Code of Ethics education with the six hour (6) TREC 2017-2018 Core Course required by the Tennessee Real Estate Commission to renew your license. They are not the same
Tennessee REALTORS® Contracts and Forms
The Tennessee Association of REALTORS® has developed a set of contracts and forms to be used by their members in Tennessee real estate transactions. The 2017 forms are available to members online. As in past years, there are a number of updates to this year’s forms. To get up to speed a summary of the changes can be found by following our link to Tennessee REALTORS® Contracts and Forms.
Tennessee REALTORS® Contracts and Forms