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How to Get Your Real Estate Broker’s License
In the world of real estate there are licensed sales people, usually called real estate agents, and then there are brokers. The difference between the two is very basic – a real estate agent has performed the necessary studies and taken their State Board exam; the broker has gone a bit farther and taken the State Board exam that qualifies them to open and operate their own real estate brokerage or firm. Real estate brokers can only make this choice, however, if they have some experience as a real estate agent or if they are a college graduate with the appropriate background. Additionally, some states permit attorneys to also become brokers.
The majority of real estate brokers will have either taken further course work outside of the real estate agent classes, or graduated from college, and then passed the State Board exam on real estate law. After that they can continue working for their original firm, or they can open their own brokerage. Most states do not consider it a conflict of interest to participate in the industry in both ways – as an agent for one firm and broker for yourself.
Some states are a bit stickier about the function of certain people in a brokerage, for example there are states that require a brokerage manager to have their licensing, and in other states, such as Colorado, there are no such things as real estate agents and everyone must become a broker.
If someone wants to be a broker and a Realtor they can. This means they simply take membership with the National Association of Realtors. This is not a bad idea because Department of Labor statistics demonstrate that Realtors, whether they are brokers or agents, tend to make measurably larger incomes than traditional agents and brokers. Why this is so is unknown, but it could have a great deal to do with the credentials, networking and interaction that occurs in the large organization.
It is also important to note that a broker license will need renewal every one to two years and many states have a requirement for ongoing education in order to obtain renewal. Some states have also begun to look at online brokerage firms and now many areas demand multi-state licensing in order for a broker to be able to sell to those who find their properties in this unique manner.