What is the primary difference between a real estate agent and a real estate broker?

The primary difference between a real estate agent and a real estate broker lies in their roles and the level of responsibility they hold in real estate transactions. A broker has obtained additional education and licensing beyond that of a real estate agent, allowing them to operate independently. They can run their own brokerage firm and supervise the activities of agents.

Real estate agents are typically required to work under the supervision of a broker to conduct transactions. This structure ensures that agents benefit from the broker's experience and guidance, while brokers take on more extensive responsibilities, including providing oversight and ensuring compliance with the law. The distinction in authority and independence is fundamental to the operation of real estate practices.

In contrast, the other options inaccurately represent the relationship and differences between agents and brokers. For example, it is not true that an agent has more education than a broker; rather, brokers complete further training and education. Additionally, brokers are not limited to commercial real estate; they are involved in both commercial and residential transactions. Lastly, agents cannot independently operate their own agency; that capability is reserved for licensed brokers.