What’s the Difference Between a Realtor and an Agent?
Requirements for Realtors
A Realtor can be a real estate agent, a broker-associate, a managing broker, or an exclusive buyer’s agent, and this is just the beginning of the list. What sets them apart is that they must subscribe to the Realtor Code of Ethics for membership, and this includes 17 separate articles that contain various underlying Standards of Practice.
The NAR Code of Ethics
The NAR Code of Ethics was adopted in 1913 and is strictly enforced by local real estate boards. It’s not just a bunch of rules that agents swear to uphold and adhere to because their brokers made them join the Association. The standards are much more restrictive and confining than the state guidelines that govern agents. There’s no evidence that all Realtors are morally or ethically “better” than unaffiliated real estate agents, but the Code of Ethics is an attempt by the industry to regulate them. Even non-NAR “real estate agents” are held to the same legal standard.
The 17 Articles
Each of the 17 Articles carries weight, but one article—the first—stands above the rest. It’s the basis for the way a Realtor must operate. It doesn’t state that a Realtor must be fair to all parties, such as a listing agent when dealing as a buyer’s agent, but rather that a Realtor must be honest. These are the 17 standards that a Realtor must promise to uphold:
Requirements for Agents
Real estate agents must meet certain age and education requirements in the state where they want to work, although these aren’t usually stringent. For example, a four-year college degree is rarely or ever required. Agents must then attend state-approved education courses and apply for and pass the state’s licensing exam. They can then apply for a real estate license. Some states have ongoing certification requirements. A Realtor must meet all these standards, but must additionally pass a course on the NAR Code of Ethics and do so again every four years to maintain certification.
The Bottom Line
The National Association of Realtors was founded in 1908 and its members numbered more than 1.5 million as of May 2021. If an agent isn’t a member, it’s often because they don’t do enough business to justify the expense of membership.
