What Is a Real Estate Broker?

A real estate broker is a licensed professional who helps people buy, sell, or lease real property. Unlike real estate agents, brokers have completed additional education and licensing requirements and can own or manage their own brokerage firm.

🏡 How a Real Estate Broker Works

  • A broker lists properties for sale and assists clients through the negotiation and closing process.
  • They oversee licensed agents working under their supervision within the brokerage office.
  • Brokers can represent sellers, buyers, or both—earning a commission when a transaction closes.
  • They ensure compliance with state laws, contracts, and ethical standards in all real estate transactions.

In many cases, the broker acts as the responsible party for the agents in their office, handling paperwork, training, and client disputes.

🔑 Types of Real Estate Brokers

  • Principal or Managing Broker: Owns or manages the brokerage firm and supervises agents.
  • Associate Broker: Holds a broker license but works under another managing broker.
  • Designated Broker: The legally responsible party named for compliance and oversight.

Each state has specific licensing levels and continuing education requirements for brokers and their agents.

🏠 Real Estate Broker vs. Real Estate Agent

A real estate agent must work under a licensed broker, while a broker can work independently or supervise other agents. Brokers have more responsibility and can open their own brokerage, handle escrow accounts, and manage client trust funds.

FSBO sellers using Brokerless can access the MLS through a licensed broker for a one-time flat fee—without paying traditional listing commissions.

Want MLS exposure without paying 6% commission?

đź“‹ View Flat Fee MLS Packages

Explore more plain-English real estate terms in our Real Estate Glossary .