People often use the terms “REALTOR®” and “real estate agent” interchangeably, but they are actually not the same!
A person that goes through the training, passes an exam and receives a real estate license from the state, is a real estate licensee and can work as a real estate agent. But that person is not a REALTOR®.
What is a Realtor®?
A REALTOR® is a member of the National Association of REALTORS® (NAR), the largest professional association for real estate licensees in the country. The word REALTOR® is a registered trade mark of NAR and can only be used by members of NAR. a REALTOR® can be a real estate agent or a real estate broker. The term REALTOR® does not signify the type of license a real estate licensee has but rather that person’s affiliation with the National Association of REALTORS®.
And what about a real estate licensee?
A person receiving a real estate license is authorized by the state to work as a real estate agent. The official term states typically use for a real estate agent is real estate “salesperson”. A real estate agent can become a REALTOR® by applying for membership to their local association of REALTORS®. One may not become a member of the National Association of REALTORS® directly, but rather through their local association. Every state has a state association of REALTORS® as well as several local or regional associations.
For example, in Northern Virginia, for a real estate licensee to become a REALTOR® one must apply for membership to the Northern Virginia Association of REALTORS® (NVAR). The licensee pays dues to NVAR and automatically becomes a member of the Virginia Association of REALTORS® as well as the National Association of REALTORS®. In turn, NVAR shares the licensees dues with the state and national associations.
Ok, so why does association membership matter?
As a real estate licensee, one is bound only by the laws of the state he/she operates in. On the other hand, REALTORS® have to follow a strict code of ethics, which if they don’t, can be fined and penalized. The REALTOR® Code of Ethics imposes more requirements and in certain cases sets higher standards than state laws do.
It is worth reading the Code of Ethics to understand the responsibilities REALTORS® have to the clients, customers, other REALTORS® and the public.
In the D.C. metro area the majority of real estate licensees are REALTORS®, so as a real estate buyer or seller you are most likely to work with a person who subscribes to this higher standard of practice. In rural areas however, that is not always the case. Not being a REALTOR® does not mean that one is not honest and ethical, however being a REALTOR® shows that one has made that extra commitment.
When planning to buy or sell a home, don’t hesitate to contact me for highly ethical, committed representation.
