Real Estate Broker
Definition and meaning of Real Estate Broker in real estate.
A real estate broker is a licensed professional who has completed advanced training beyond the agent level, allowing them to operate an independent real estate business, hire sales agents, and manage escrow accounts.
In more detail
Brokers hold the ultimate legal responsibility for transactions conducted by the agents under their supervision. They handle escrow accounts, draft complex contracts, and ensure that all agency practices comply with state laws. Brokers may work independently, manage a brokerage office, or choose to work as associate brokers under another broker.
Their commission is typically split between the brokerage and the individual agent who facilitated the sale, reflecting the broker's supervisory role.
Key facts
| Category | Buying & Selling |
|---|---|
| Required by | State licensing agencies |
| Who pays | Sellers or buyers via commission splits |
| Also known as | Principal broker or managing broker |
A property owner lists their commercial building with a real estate broker who oversees several agents and manages the legal documentation for the sale.
Frequently asked questions
Can a real estate broker work independently?
Yes, unlike real estate agents who must work under a broker, a broker is legally permitted to operate their own business and work independently.
What is an associate broker?
An associate broker is someone who has earned a broker's license but chooses to work under the supervision of another managing broker rather than running their own firm.
Related terms
Sources & references
See our sources and editorial standards.