Are you interested in becoming a real estate broker? A real estate agent? Is there even a difference between these two terms? If you’re unsure of what these different terms mean, you’re not alone. Real estate terminology can be challenging to comprehend, especially since what one word means in one state may mean something completely different in another.
This article explains each term, how they differ, and what they mean for those interested in starting a career in North Carolina real estate.
Key Takeaways
- In most states, entry-level real estate salespeople are called “real estate agents.” Experienced real estate agents may obtain their broker license by taking additional coursework and passing a test.
- In North Carolina, the lower-level license is called a broker license. An experienced agent who takes additional coursework in North Carolina is called a broker-in-charge.
What’s the Difference Between a Real Estate “Agent” and a Real Estate “Broker”?
The terms real estate agent and real estate broker are often used interchangeably, but they do not necessarily mean the same thing. In most states, a real estate agent is licensed to represent home buyers or sellers in a real estate transaction. A real estate broker manages agents and requires a higher license level and prior real estate experience.
However, in North Carolina, a real estate broker refers to the lower license level professional (e.g., real estate agent or salesperson), and a broker-in-charge relates to the higher license level professional (e.g., real estate broker).
Additionally, newly licensed North Carolina real estate brokers must be sponsored by a broker-in-charge until they complete 90 hours of post-licensing education. Until this time, the broker has a provisional license and needs to be supervised by a broker-in-charge.
What Is a Broker-in-Charge?
A broker-in-charge is responsible for managing other brokers in a brokerage. As with any managerial position, a broker-in-charge takes on more responsibility (e.g., administrative and compliance-related tasks) and accountability (e.g., ensuring the firm’s brokers comply with North Carolina real estate law and best practices).
As such, brokers-in-charge tend to earn more income than brokers. According to a recent survey, the average gross income for North Carolina real estate brokers in 2020 was $141,130, and the average gross income for brokers-in-charge was $154,396.
To be eligible to be a broker-in-charge, you must:
- Have an active broker’s license,
- Have at least two years of full-time (or four years of part-time) real estate brokerage experience within the past five years,
- Complete the self-paced, online 12-hour Broker-in-Charge course.
Once you meet these requirements, you can apply to the North Carolina Real Estate Commission (NCREC) for your broker-in-charge license.
What Does This Mean for People Interested in a North Carolina Real Estate Career?
For those interested in a career in North Carolina real estate, it’s essential to understand the nuances between these terms to understand one’s options better when it comes to choosing a career path. Whether you are interested in becoming a real estate broker or a broker-in-charge one day, Superior School of Real Estate hosts regular career nights in which you can ask industry-leading real estate instructors any questions you may have and help shed light on where a career in real estate can take you.
