Many homebuyers (and homesellers) often use the above terms interchangeably, without any real understanding of the key differences.  These differences are significant, and can be harmful to consumers if not understood.

A REALTOR (pronounced real-tor, not real-i-tor)  is a member of the National Association of Realtors, as well as a member of the local Board of Realtors.  Only a Realtor member has access to the Multiple Listing Service (MLS).  Only real estate brokers & salespersons who are Realtor members have MLS access for listings or sales data.  Non-member real estate brokers & salespeople do not have access to MLS listed property.

A Real Estate Broker (principal broker) is usually the owner or manager of a real estate company, and is responsible for the actions of his/her salespersons working under that broker’s direction and license. 

 The Broker is actually the ‘Agent’ hired by a seller when listing a home for sale, or is the ’Agent’ for a buyer in a buyer agency relationship.  All other agents in the broker’s company are considered ’subagents’ to the Client with the same legal duties owed. 

A ‘Client’ is a buyer or seller who has agency representation and protection.  An Agent works for clients.

A ‘Customer’ is a buyer or seller who does not have agency representation and protection.  A Salesperson works with customers.  A buyer customer should not tell a salesperson anything he/she doesn’t want the seller to know.

An ‘Agent’ represents the best interests and goals of the Client (known also as a ‘principal’) and owes the Client fiduciary duties of undivided loyalty, full disclosure, confidentiality, reasonable care & due diligence, accounting/accountability, and lawful obedience. 

‘Agency’ describes the legal relationship and duties owed between the real estate company as ‘Agent’, and the buyer or seller as ‘Client’, and should be in writing. 

Seller’s agents have legal duties to procure the best buyer and negotiate for the highest possible price at the best possible terms for their Client, the Seller.

Buyer’s agents have legal duties to procure the best property and negotiate for the lowest possible price at the best possible terms for their Client, the Buyer.