It is not just you asking this question, I am asked by first time home buyers and sellers in Fairfax and Prince William just as much as those seasoned pros that have bought and sold many homes in Northern Virginia. The real estate dictionary has over 500 pages of terms and understanding the difference between a Virginia broker and agent is one of the more important concepts. I find many agents do not understand the difference which may be the root of bigger problems, but I will save that for another blog. Below are the definitions important to know:

StoneHouse_logoReal Estate Brokerage Firm– A corporation, association, partnership, limited liability company, or sole proprietorship which is required to have a separate brokerage firm license to transact real estate.

Joey Remondino Real Estate Broker or Principle Broker– Any person holding a broker’s license designated by the firm, who, for compensation or valuable consideration (i) sells or offers for sale, buys or offers to buy, or negotiates the purchase or sale or exchange of real estate, including units or interest in condominiums, cooperative interest, or time-shares in a time-share program even though they may be deemed to be securities, or (ii) leases or offers to lease, or rents or offers for rent, any real estate or the improvements thereon for others. This person is also responsible for all activities of the firm to ensure compliance with all license law and rules by all the firms licensees to include agents and associate brokers.

Associate Broker– Any person holding a broker license other then the designated principle broker. This person has to meet the same educational and experience requirements as a principle broker but is subject to the same restriction of real estate activity as a salesperson.

Managing Broker- Any person holding a Broker License as an Associate Broker and not the principle broker but manages a specific branch or office for the Principle Broker and Firm. The large non-franchise firms normally have this title, like Long and Foster or Weichert Realtors in their individual offices.

Real Estate Agent– Any person licensed who for compensation or valuable consideration is employed either directly or indirectly by, or affiliated as an independent contractor with, a real estate broker, to sell or offer to sell, or to buy or offer to buy, or to negotiate the purchase, sale or exchange of real estate, or to lease, rent or offer for rent any real estate, or to negotiate leases thereof, or of the improvements thereon.

rlogoREALTOR– Any person or business entity who is a member of the local, state, and/or National Association of REALTORS. This is a trade organization that has a membership fee and has nothing to do with Virginia licensing laws or regulations and any of the above licensees can also be a REALTOR.

In simple term, normally you have a brokerage firm like StoneHouse Realty Inc that has a designated principle broker responsible for all the licensees with the firm. If the brokerage firm has multiple offices they may employ someone to manage each individual office as the managing broker. The associate brokers and agents are not employees and are normally independently contracted and are supposed to be monitored by the managing broker and Principle Broker. Breaking this concept down further, the only individual who can buy, sell, or lease and is ultimately responsible is the principle broker. Agents cannot buy, sell, or lease real estate in Virginia unless their license is under the supervision of a Principle Broker. As the Principle Broker of StoneHouse Realty Inc., I have the knowledge and experience to help you with your Northern VA real estate needs, please feel free to call me.