Short answer: A real estate agent is licensed by the state to help people buy and sell property. A broker has a higher-level license and can run their own brokerage and supervise agents. A REALTOR® is an agent or broker who is a member of the National Association of REALTORS® and agrees to follow its Code of Ethics. In Texas, all agents and brokers are licensed by the Texas Real Estate Commission (TREC).
At a glance
| Agent | Broker | REALTOR® | |
|---|---|---|---|
| Licensed by TREC | Yes (sales agent) | Yes (broker) | Yes, as an agent or broker |
| Can work independently | No, must work under a sponsoring broker | Yes | Depends on license |
| Supervises other agents | No | Yes | If a broker |
| Member of NAR, follows Code of Ethics | Not necessarily | Not necessarily | Yes |
What is a real estate agent?
In Texas, a real estate sales agent has completed required education, passed the state exam and holds a license from TREC. Agents help clients buy, sell and lease homes, but they must work under a sponsoring broker, who is responsible for supervising them.
What is a broker?
A broker has more education and experience and a broker license from TREC. Brokers can:
- Own and run a real estate brokerage
- Sponsor and supervise agents
- Handle transactions on their own
You may also hear "broker associate," a licensed broker who works under another broker's company.
What is a REALTOR®?
REALTOR® is a trademark for members of the National Association of REALTORS®. Members agree to follow NAR's Code of Ethics, which covers duties to clients, the public and other agents. In Houston, most active agents also belong to the Houston Association of REALTORS® (HAR), which runs the local MLS.
Does it matter which one you work with?
What matters most is experience, local knowledge and how well they communicate and negotiate. A newer agent with a strong broker behind them can be great, and so can an experienced broker. Read how to choose the right listing agent in Houston or why first-time buyers should use a local agent.
Two Texas things to know
- Information About Brokerage Services (IABS): Texas agents must give you this TREC notice early on. It explains the ways an agent can represent you.
- License lookup: You can verify any agent's or broker's license on the TREC website.
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REALTOR® is a federally registered collective membership mark of the National Association of REALTORS®. This article is general information.
