real estate broker and real estate agent are often confused . Although they complement each other, there is always doubt about the specific functions of each and what exactly distinguishes them.
According to the Royal Spanish Academy, a broker is an intermediary in financial or commercial transactions who receives a commission for their services. In the case of an agent, it refers to a real estate agent, defining it as a company or corporation that builds, leases, sells, and manages properties.
Wikipedia defines a real estate agent or property broker as a natural person who is dedicated to providing mediation, advice and management services in real estate transactions related to the purchase, sale, rental, exchange or transfer of real estate.
What is a Real Estate Broker?
The Spanish Study Center explains that the real estate broker is a common professional in the United States, originating in the financial and stock market world. "The real estate broker manages real estate transactions and handles economic, urban planning, and legal aspects, as well as the transactions between the seller and the buyer. Generally, they own a real estate business structure (one or more agencies) with several agents associated with or working for their company. Real estate agents, among other functions, are responsible for acquiring properties for sale and managing relationships with buyers. The broker's job is to oversee this entire process and continues after the agent's work with the buyer and seller is complete," the Center states.
He adds that, in general, real estate brokers have a broad understanding of the profession and prior experience as real estate agents, which qualifies them to oversee the appraisal, purchase, and sale phases carried out by real estate agents. It's common for many of these real estate brokers to start as agents themselves until they gain a certain level of experience and then recruit other agents to do the heavy lifting, while they handle the more administrative or office-based tasks.
Real estate broker functions
Business structures may vary from one company to another, however there are a number of functions that are their responsibility or that they should at least know in depth.
- Real estate management.
- Real estate marketing.
- Contracts, typologies, obligations and rights.
- Real estate law.
- Consumer rights in the sector.
- Property records.
- Mortgage
- Leases.
- Horizontal property.
- Real estate appraisals and valuations
- Appraisal certificates.
Functions of a real estate agent
The functions of a real estate agent overlap in many aspects with those of a real estate broker, especially in Spain, where the role of the real estate broker is not as prominent as it is in the United States. In many cases, it is the manager or a similar figure in a real estate agency who performs the functions that, in the American market, are the responsibility of the broker.
Its main functions are:
- They are prospecting the market
- Real Estate Acquisitions
- They perform a property valuation
- They negotiate the price
- They prepare the apartment for the photo shoot
- They verify the documentation and process the identity card
- They communicate and advertise the property
- They conduct a study of the buyer's needs and economic feasibility
- They arrange visits and show the property to potential buyers
- They follow up and keep the potential buyer informed
- They sell it
- They prepare the contracts
- They close all documentation and calculation of taxes and expenses
- They provide advice on loans and real estate credits
- They arrange to sign the purchase agreement at the notary's office
- They provide after-sales customer service follow-up
