What’s the difference between real estate broker and real estate sales licensees?

There are two practical differences.

Differences In Sales And Broker LicensesFirst, the relationship between a broker and salesperson is much the same as that of a boss and worker. A broker operating his or her own office under state law must supervise and oversee all sales licensees working from that office or on the broker’s behalf.

Second, a broker is the only individual empowered by state law to conduct a real estate transaction. Sales persons have no legal authority to participate in a transaction without their broker’s involvement.

Individuals who hold a Pennsylvania broker’s license but work in the office of, and on behalf of, another broker are known by the state as “associate brokers.” They too are subject to supervision.

Under state law, sales persons and associate brokers are deemed to be independent contractors of the supervising broker.

It’s more difficult and takes longer to get a broker’s license.

First, you must hold a PA real estate sales license for at least three years. Then you need to take significantly more education. You need to pass another licensing exam. Unless you intend to work with another broker as an associate broker, you’ll need to start up your own office and meet the state’s requirements for it.

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Last updated 20180912