Associate Broker and Managing BrokerĪn associate broker is an industry professional who has completed the same requirements necessary to become a principal broker which may or may not include supervisory and management responsibilities. By law, a principal broker is held to a higher standard of accountability and responsibility. A principal broker will also have a trust or escrow account which ensures the safe-keeping of the earnest money deposit and any monies due to the brokerage firm. A principal broker oversees a transaction between a buyer and seller and affiliated agents for which a commission is paid to the brokerage firm once the transaction has been closed and recorded.
A principal broker represents the brokerage firm and is the person legally authorized to enter into agency contracts with clients and is responsible for supervising the real estate agents who work for the agency. Typically, a broker must complete 180 hours of broker-specific classes, pass a broker exam and have actively worked as a real estate salesperson for 36 of the previous 48 months, and complete at least 36 hours of continuing education course work every two years.
Real estate principal definition plus#
Principal BrokerĪ principal broker is an industry professional who has taken all the required real estate classes plus additional education classes required by state and national laws. Let’s discuss the roles and responsibilities of each. People tend to use the terms interchangeably, however, each role requires specific classes, tests and licenses, and continuing education requirements. Principal broker, associate broke and managing broker, and a real estate salesperson – what’s the difference between these agents? For many homebuyers, figuring out the various roles and responsibilities for these real estate job titles can be confusing.