The Difference Between a REALTOR® and a Real Estate Agent
There is one key difference Between a REALTOR® and real estate agent.
Did you know not every real estate agent is a REALTOR® and every REALTOR® is not a real estate agent?
People often use the terms REALTOR® and real estate agent interchangeably, but the fact of the matter is there are key differences between the two. So, what is the difference between a REALTOR® and real estate agent?
Anyone who takes the real estate exam and passes can be referred to as a real estate agent; however, anyone who wants to be a REALTOR® has to do much for than pass the exam. A real estate agent is a job title while a REALTOR® is a term of distinction which must be earned through the National Association of REALTORS® (NAR).
Commercial REALTOR®, Mike Ferrer, CCIM, MCR explains in the video below:
REALTORS® must meet the strict standards of the National Association of REALTORS® Code of Ethics, a list of ethical duties adopted in 1913 which requires agents and brokers to pledge to practice ethical, professional, and honest services and ensure their consumers best interests are ahead of their own.
To be recognized as a REALTOR®, agents and brokers must pledge to protect the public through 17 codes and standards of practice:
Duties to Clients & Customers
REALTORS® protect and promote their clients’ interests while treating all parties honestly.
REALTORS® refrain from exaggeration, misrepresentation, or concealment of pertinent facts related to property or transactions.
REALTORS® cooperate with other real estate professionals to advance their clients’ best interests.
When buying or selling on their own account or for their families or firms, REALTORS® make their true position or interest known.
REALTORS® do not provide professional services where they have any present or contemplated interest in property without disclosing that interest to all affected parties.
REALTORS® disclose any fee or financial benefit they may receive from recommending related real estate products or services.
REALTORS® accept compensation from only one party, except where they make full disclosure to all parties and receive informed consent from their client.
REALTORS® keep the funds of clients and customers in a separate escrow account.
REALTORS® make sure that details of agreements are spelled out in writing whenever possible and that parties receive copies.
Duties to the Public
REALTORS® give equal professional service to all clients and customers irrespective of race, color, religion, sex, handicap, familial status, national origin, sexual orientation, or gender identity. REALTORS® do not discriminate in their employment practices.
REALTORS® are knowledgeable and competent in the fields of practice in which they engage or they get assistance from a knowledgeable professional, or disclose any lack of expertise to their client.
REALTORS® are honest and truthful in their communications and present a true picture in their advertising, marketing, and in other public representations.
REALTORS® do not engage in the unauthorized practice of law.
REALTORS® willingly participate in ethics investigations and enforcement actions.
Duties to REALTORS®
REALTORS® make only truthful, not misleading, comments about other real estate professionals.
REALTORS® respect the exclusive representation or exclusive brokerage relationship agreements that other REALTORS® have with their clients.
REALTORS® arbitrate and mediate financial disagreements with other REALTORS® and with their clients.
Becoming a REALTOR® opens a plethora of possibilities for real estate agents and brokers and allows them access to a wide array of benefits, business tools, real estate market data, and educational opportunities designed to help them reach success in today’s market.
Click here to learn more about becoming a member of the National Association of REALTOR®’s in your area.
Charleston Commercial Real Estate Agent
Mike Ferrer, CCIM, MCR is a Principal with Ferrer Commercial Real Estate Advisors, LLC. He has written several white papers on the Charleston industrial real estate market. He can be reached via e-mail at: Mike.Ferrer@FerrerCREA.com.
He has over 15 years of commercial real estate Brokerage and Development experience. With a focus on warehouses, manufacturing, office buildings, vacant land, and Investment Sales. He opened his own brokerage in 2015, and has completed over $225,000,000 in transactions throughout the Lowcountry.
Mike is the past president of the Commercial MLS for the state of South Carolina and has served on many other civic and philanthropic boards. Mike has a plethora of commercial real estate knowledge and established ties to the local community both statewide and stretching across the entire southeast.