The difference between a realtor and a broker is very minimal. The education level increases when a person goes from associate broker, to managing broker, to principal broker. But each of these levels of brokers can also be realtors.

A realtor, aka real estate agent, is someone who is a member of a realtor association. A realtor needs to pass a state and federal test on real estate laws and principles. For example, in Colorado you need to complete 168 hours of education to take the test. A realtor is also a member of the National Association of Realtors and abides by their ethics code.

A broker is someone who has taken education beyond passing state and federal real estate tests. They must complete extra coursework and go in depth into many of the topics covered in the base level tests. In Colorado, every agent is an associate broker once they pass the test. You need to work in the field as a broker for 2 years minimum to go off on your own.

Types of Broker

There are three levels of real estate brokers:

Associate Broker: This broker has a broker’s license but is working under a managing broker. They typically are not responsible for supervising other real estate agents. This person can go outside of an established firm and work alone while someone who is just a realtor can not.

Managing Broker: The broker oversees the daily operations and transaction of the office they manage. Managing brokers are typically involved in hiring and training new real estate agents.

Principal Broker: Each real estate office had a principal broker. This broker oversees all real estate agents in the firm and ensures they are operating within state and national laws. These brokers normally get paid off the commissions of the real estate agents they are supervising. The principal broker has the highest level of real estate education.

In the end, the two terms are basically interchangeable. Technically, someone can be a broker and not be a realtor because they are not part of an association.