Agent, Broker or Salesperson. What’s the difference?
It might seem like these terms refer to the same role, but there are actually some important distinctions.
“Agent” is often incorrectly used to refer to the individual real estate professional who helps you buy or sell your home, but that’s not technically accurate. Agent is actually the term for the brokerage (the company) that represents you. When you sign a representation agreement, you are forming an agency agreement with the brokerage, not the individual salesperson.
Brokers and salespersons are individuals employed by the brokerage. They’re both real estate professionals who are subject to regulation and must be registered with the Real Estate Council of Ontario (RECO) to trade in real estate in Ontario. The level of education distinguishes a broker from a salesperson. A salesperson can become a broker by taking additional courses and exams.
A broker designation also allows someone to manage a brokerage. If they do take on that role, they are known as the Broker of Record. Brokers of Record generally don’t deal with buyers and sellers directly, but they will be in the background managing the business, reviewing transaction details and serving as a resource to your real estate professional. In the unlikely event that you have questions or concerns that your salesperson or broker can’t address, you can speak with the Broker of Record.
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