What is the difference between an agent and a broker?

The distinction between an agent and a broker is fundamental in the real estate industry. An agent typically operates under the license and supervision of a broker and cannot conduct real estate transactions independently. This relationship is crucial because it ensures that agents work within the regulatory framework established by the broker, who takes on a higher level of responsibility and oversight.

Agents assist clients in buying, selling, or renting properties but must do so while affiliated with a broker. This means they operate under the broker's brand, using the broker's resources and guidance. Conversely, brokers have met additional education and experience requirements, allowing them to own their own firms and directly engage in real estate transactions without needing to work under someone else's oversight.

In this context, the other options fail to accurately capture the regulatory and operational relationships between agents and brokers. For instance, the idea that an agent can operate independently while a broker works under an agent misrepresents the hierarchical structure in which brokers supervise agents. The correct understanding is that agents require the supervision of a broker and that the broker has the authority to list properties and manage agents.