The difference between a REALTOR® and a real estate agent: explained

A real estate agent is about to show a property to prospective buyers

Did you know that REALTOR® is not exactly synonymous with real estate agent? If you didn’t, you’re not alone. In fact, many REALTORS® don’t even know the difference. Allow me to break it down for you.

All REALTORS® are real estate agents, but not all real estate agents are REALTORS®. To call oneself a REALTOR®, they must be a licensed real estate agent that belongs to the National Association of REALTORS® (along with at least one local and state REALTOR® association) and adhere to a strict Code of Ethics. It is a trademark infringement for a non-member real estate agent to use the REALTOR® designation.

If a REALTOR® violates the high standards imposed by the Code of Ethics, any REALTOR® or member of the public can file an ethics complaint which can result in penalties ranging from letter of reprimand to loss of membership. However, while fines can be assessed, punitive damages are never awarded in ethics cases.

Another option local and state REALTOR® associations offer is informal mediation between consumers and REALTORS®. The ombudsman program provides trained mediators to help solve differences that may arise between REALTORS® and the public, and boasts a very high satisfaction rate.

Licensed real estate agents that are not REALTORS® are not subject to the Code of Ethics and the disciplinary and mediation processes of the REALTOR® associations. That, of course, does not mean non-REALTORS® are unethical, but it does mean that the only recourse a consumer, in dispute with a non-REALTOR® licensee, has is civil court or the state regulatory board.

The better consumer protection offered and greater commitment to the industry is why, referring real estate agents, particularly for residential transactions, I generally refer REALTORS® over non-REALTORS®.

Howard Handler is a real estate matchmaker. He connects real estate buyers and sellers with highly qualified real estate professionals -- all at no cost. A licensed real estate broker since 2004, for 12 years he served as an exclusive lobbyist for the Illinois Association of REALTORS®. If you need the services of a highly qualified real estate agent, please visit www.AgentMatch.realestate for more information.