Agent vs. Broker vs. REALTOR®: what each actually does.

Quick definitions

Real estate agent (salesperson)

A real estate agent is someone who has passed their state's salesperson licensing exam and holds an active license. In most states, agents cannot work independently—they must be sponsored by and work under a licensed broker.

What they do: Show homes, list properties, write offers, negotiate contracts, coordinate inspections and closings. The agent is the person you interact with day-to-day, but their broker is legally responsible for their actions.

Common titles: Real estate agent, sales agent, associate agent, buyer's agent, listing agent.

Real estate broker

A broker has completed additional education and passed a higher-level state exam. Brokers can work independently, supervise agents, and own a real estate brokerage.

What they do: Everything an agent can do, plus supervise other agents, manage brokerage operations, and assume legal responsibility for transactions. Some brokers still work directly with clients (selling agent); others focus on management (managing broker).

Common titles: Broker, managing broker, principal broker, broker-owner, associate broker (broker license but working under another broker).

REALTOR®

REALTOR® is a trademarked term owned by the National Association of REALTORS® (NAR). An agent or broker becomes a REALTOR® by joining NAR and agreeing to follow their Code of Ethics.

What it means: Membership in a professional organization, not a separate license. REALTORS® pay annual dues, complete ethics training, and can be disciplined by NAR for ethics violations (separate from state licensing discipline).

What it does not mean: Higher competence, better service, or additional legal authority. It is branding and a commitment to NAR's rules. Many excellent agents are not REALTORS®; many mediocre agents are.

Note: REALTOR® must be capitalized and include the ® symbol on first use per NAR trademark rules.

Licensing & pathways (U.S.)

Real estate licensing is regulated at the state level. Requirements vary, but the general path is:

Becoming an agent (salesperson)

1. Complete pre-licensing education (40-180 hours depending on state)
2. Pass state salesperson exam (national portion + state-specific portion)
3. Find a sponsoring broker (required in most states to activate license)
4. Submit fingerprints and background check
5. Pay licensing fees and obtain errors & omissions (E&O) insurance

Timeline: 2-6 months from start to licensed agent, depending on state and study pace.

Becoming a broker

1. Work as a licensed agent for 1-3 years (state-specific requirement)
2. Complete additional broker-level education (60-90 hours)
3. Pass state broker exam
4. Decide whether to work independently, manage agents, or both

Timeline: 1-3 years of agent experience + 3-6 months of broker prep and exam.

State-specific nuances

• California: Requires 135 hours of pre-licensing education for salesperson, 8 additional college-level courses for broker.^[1]
• Texas: 180 hours for salesperson, 900 hours for broker (can be completed in 270 classroom hours or equivalent).^[2]
• Florida: 63 hours for salesperson, 72 hours post-licensing + 60 hours broker pre-licensing.^[3]
• New York: 77 hours for salesperson, 120 hours for broker + 2 years of agent experience.^[4]

Check your state real estate commission website for exact requirements.

Duties & obligations

What agents and brokers owe you depends on your state and the type of relationship you establish.

Fiduciary duties (most states)

When you hire a listing agent or buyer's agent under a traditional representation agreement, that agent owes you fiduciary duties. The common law fiduciary standard includes:

• Loyalty: Agent must put your interests above their own and avoid conflicts of interest.
• Obedience: Agent must follow your lawful instructions.
• Disclosure: Agent must disclose all material facts that affect the transaction.
• Confidentiality: Agent cannot disclose your confidential information (e.g., your bottom-line price) without permission.
• Accounting: Agent must account for all funds (earnest money, deposits) properly.
• Reasonable care and diligence: Agent must be competent and act with reasonable skill.

Transaction-broker duties (some states)

States like Florida and Colorado use a transaction-broker model by default, shifting the relationship from fiduciary to facilitator.^[5][6] In this model, the agent provides services but does not owe full fiduciary duties. Instead, they owe:

• Honesty and fair dealing
• Disclosure of known material defects
• Accounting for funds
• Skill, care, and diligence
• Compliance with applicable laws

Key difference: Transaction brokers do not owe loyalty or confidentiality to the same degree. They facilitate the deal but do not advocate exclusively for one party.

Dual agency (controversial)

Dual agency occurs when one agent (or two agents in the same brokerage) represents both buyer and seller in the same transaction. Florida law prohibits dual agency outright, and Colorado replaces it with designated brokerage/transaction brokerage; other states impose their own limits.^[5][6]

Problem: How can an agent be loyal to both parties when their interests conflict (buyer wants lowest price, seller wants highest)? In practice, dual agents often act more like transaction facilitators than fiduciaries.

Disclosure: If dual agency is legal in your state, the agent must disclose it in writing and obtain consent from both parties.

Compensation, agreements & 2024+ changes

Traditionally, sellers paid a total commission (5-6% of sale price) that was split between the listing agent's brokerage and the buyer's agent's brokerage. This model is changing.

2024 NAR settlement changes

In August 2024, NAR agreed to a settlement in antitrust lawsuits that changes how buyer agents are compensated.^[7] Key shifts include:

• No more blanket buyer agent offers on MLS: Listing brokers can no longer advertise buyer agent commission on the MLS. Compensation must be negotiated separately between buyers and their agents.
• Buyer broker agreements required: Buyer agents must have a written agreement with buyers before showing homes, making commission arrangements explicit upfront.
• Sellers still can (and often do) pay buyer agent fees: Sellers can offer to pay the buyer's agent as a concession, but it is no longer automatic or MLS-advertised.

Impact: More negotiation, more transparency, potentially lower total commissions as buyers push back on 2.5-3% buyer agent fees.

Listing agreements

When you hire a listing agent, you sign an exclusive right-to-sell or exclusive agency agreement. Key terms:

• Commission rate: Typically 2.5-3% (listing side only, post-2024). Negotiable in some markets.
• Duration: 3-6 months is common. Avoid agreements longer than 6 months unless you trust the agent completely.
• Termination clause: Some agreements allow early termination; others lock you in. Read carefully.

Buyer broker agreements

Post-2024, buyer agents must have written agreements with buyers before showing homes.^[7] Key terms:

• Compensation: Typically 2.5-3%, either paid by seller (as a concession) or by buyer directly.
• Exclusivity: Some agreements are exclusive (you cannot work with other buyer agents); others are non-exclusive.
• Duration: 30-90 days is common.

When each is involved (scenarios)

Scenario 1: Traditional home sale with full representation

Setup: You hire a listing agent (who works under a broker). Buyer hires a buyer's agent (who also works under a broker). Both agents are REALTORS®.

Roles:

• Your listing agent markets your home, coordinates showings, negotiates offers, manages paperwork.
• Your listing agent's broker supervises the transaction and holds legal responsibility.
• Buyer's agent shows properties, writes offers, negotiates on buyer's behalf.
• Buyer's agent's broker supervises and holds legal responsibility.

Cost: You pay 5-6% total commission (split between both sides), roughly $20K-$24K on a $400K home.

Scenario 2: FSBO (For Sale By Owner)

Setup: You sell your home yourself. No listing agent. You may still offer compensation to buyer agents to attract buyers.

Roles:

• You handle pricing, marketing, showings, negotiations, and paperwork.
• Buyer may have an agent (you negotiate their fee) or may be unrepresented.
• No broker supervising you—you assume all risk and responsibility.

Cost: $0 listing commission, but you may pay buyer agent 2.5-3% ($10K-$12K on $400K). Plus your time and execution risk. See our FSBO guide for full breakdown.

Scenario 3: Flat-fee MLS (Meydomo)

Setup: You use Meydomo to list on MLS and get professional execution (24/7 AI call answering, showing coordination, offer intelligence) without hiring a traditional listing agent.

Roles:

• Meydomo's licensed partners list your home on MLS and handle compliance.
• You control pricing, offer selection, and negotiation strategy.
• Meydomo's AI agents handle calls, showings, and logistics 24/7.
• Buyer may have an agent (you set the buyer agent fee).

Cost: $199 + $999 at close ($1,198 total). Plus buyer agent fee if offered (2.5-3%). Total savings vs. traditional: $10K-$14K.

Scenario 4: Discount or limited-service brokerage

Setup: You hire a discount broker who charges 1-1.5% or a flat fee ($2K-$4K) but provides limited services (MLS listing only, no showings or negotiation help).

Roles:

• Broker lists your home on MLS.
• You handle showings, calls, negotiations, and paperwork.
• Buyer may have an agent.

Cost: $2K-$4K listing fee + buyer agent fee (2.5-3%). Cheaper than full-service but less support than Meydomo.

How Meydomo fits alongside agents

Meydomo is not trying to replace all agents or brokers. We replace the listing agent function with a flat-fee, tech-enabled alternative that saves you $10K-$15K while maintaining professional execution.

What Meydomo does (listing-side services)

• Lists your home on MLS (via licensed broker partners)
• Syndicates to Zillow, Realtor.com, Redfin, and all major portals
• Provides 24/7 AI call answering and showing coordination
• Delivers weekly momentum reports (traffic, feedback, pricing signals)
• Offers offer intelligence (side-by-side comparison, financing strength analysis)
• Ensures compliance with state disclosure and contract requirements

What you control

• Pricing decisions
• Buyer agent commission (you set the rate)
• Offer selection and negotiation strategy
• Final approval on all terms

What buyer agents do (unchanged)

Buyer agents still represent buyers, show your home, write offers, and negotiate. They get paid the buyer agent fee you offer (typically 2.5-3%, negotiated separately post-2024). Meydomo works seamlessly with buyer agents—they just coordinate through our AI system instead of calling your listing agent.

Why this works

The listing agent's job breaks into two parts: execution (marketing, calls, showings, paperwork) and strategy (pricing advice, negotiation tactics). Meydomo automates execution and provides data-driven strategy support. You make the final calls. Cost: $1,198 instead of $12,000.

Learn more: Start Here guide | Flat-Fee MLS guide

FAQs

Glossary

Agent (Real Estate Agent)

Licensed salesperson who must work under a broker. Handles listings, showings, contracts.

Broker (Real Estate Broker)

Higher license level; can work independently, supervise agents, own a brokerage.

REALTOR®

Trademarked term for NAR members who follow the Code of Ethics. Not a separate license.

Fiduciary Duty

Legal obligation to act in client's best interest (loyalty, confidentiality, disclosure, care).

Transaction Broker

Agent who facilitates a deal but does not owe full fiduciary duties. Common in FL, CO, OK.

Dual Agency

One agent represents both buyer and seller. Banned in some states, controversial everywhere.

Listing Agreement

Contract between seller and listing agent specifying commission, duration, and terms.

Buyer Broker Agreement

Contract between buyer and buyer's agent specifying compensation and representation terms.

MLS (Multiple Listing Service)

Database of homes for sale, accessible to licensed agents and brokers. Syndicates to Zillow, etc.

Flat-Fee MLS

Service that lists your home on MLS for a flat fee instead of percentage commission.

Related Meydomo guides

• Meydomo: Start Here — understand the four-step system our AI agents run.
• Flat-Fee MLS: What It Is, What It Isn’t — dig deeper into the alternative to listing-side commissions.
• FSBO 101: What You Take On, What You Save — weigh the DIY path once you know what agents do.
• Staging That Pays: Under $500 — prep your home so any representation choice starts from strength.
• Photos That Sell: Smartphone Listing Photos — capture the assets buyer agents expect in MLS.

Sources

1. 1. California Department of Real Estate — “Real Estate Salesperson Licensing Requirements”
2. 2. Texas Real Estate Commission — “Education Requirements for a Real Estate Sales Agent or Broker License”
3. 3. Florida Department of Business & Professional Regulation — “Real Estate Licensee Information”
4. 4. New York Department of State — “Real Estate Broker License Requirements”
5. 5. Florida Statutes §475.278 — Brokerage Relationships Between Broker and Customer
6. 6. Colorado Division of Real Estate — “Brokerage Relationship Options”
7. 7. National Association of REALTORS® — “Settlement Agreement Fact Sheet” (2024)

Not legal advice

This guide provides general information about U.S. real estate roles, licensing, and practices. It is not legal advice. Real estate laws vary by state, and regulations change frequently. Consult a licensed real estate attorney or your state real estate commission for advice specific to your situation. Meydomo is a technology-enabled flat-fee MLS service, not a law firm or traditional brokerage.