Real estate agents are sales persons who usually work for a broker in exchange for a portion of the commission earned by the agent on the sale or purchase of real estate. Brokers usually work out of an independent business and arrange for the sales of real estate. Brokers can help buyers and sellers obtain title insurance, surveys and financing in order to complete the sale. As a result of those business activities, brokers usually have significant contacts in their own communities. Some brokers also manage rental property.

The closing

In some states, a lawyer handles the preparation of legal documents and the closing itself. In other states, a broker may have primary responsibility for the real estate closing. In those states, the laws are clear as to which actions a broker can safely assume without being in danger of practicing law without a license.

Licensure

Every state requires a person to obtain a license in order to work as a real estate broker or sales agent. According to the U.S. Department of Labor, the general license requirements are that an applicant for an agent's license must be at least 18 years old and a high school graduate, and pass a written licensure examination after completing a certain amount of classroom instruction. As one might expect, the test for a broker is more complex. In addition to the agent's qualifications, a broker must complete additional instruction and have experience in selling real estate.

Copyright 2007 LexisNexis, a division of Reed Elsevier Inc.