A real estate broker is an individual or firm that acts as intermediary between the seller and buyer in a real estate transaction for a commission. The relationships between brokers and their clients can differ greatly from market to market due to differences between markets in the activities and liability of brokers and in the marketing and selling of real estate.
In the US market, a realtor is a real estate agent, broker or appraiser who is a member of the National Association of Realtors. A “broker” is a licensed real estate market intermediary who can work on its own to list, sell, buy or rent real estate on behalf of the parties to a real estate transaction. An “agent” is an associate broker who works under a licensed broker and can share in the broker’s profits.
A US real estate broker may operate as a sole proprietor, a limited liability partnership (LLP), a limited liability company (LLC) or a corporation. Individual real estate agents and brokers often operate as sole proprietorships. If a real estate license is held as an LLP, LLC or corporation, a licensed natural person must serve as the entity’s designated broker and be LLP partner, LLC member or manager, or a corporate officer, respectively.