Real Estate Agents vs. REALTORS®: What’s the Difference?

Often in conversation, you may hear people say “Realtor” when talking about real estate professionals. Well, there’s actually a difference between real estate agents and REALTORS®. In fact, the difference has gotten some people into legal trouble.

Let me explain.

A real estate agent is a licensed professional who helps people buy, sell, or otherwise transact real estate. Real estate agents must meet the licensing requirements of the state where they practice and follow the laws and regulations that apply to their work. Depending on their role, an agent may represent a buyer, a seller, or both parties in a real estate transaction.

A Realtor® is a member of the National Association of REALTORS® (NAR). Every Realtor® is a real estate agent, but not every real estate agent is a Realtor®. A Realtor® is just a real estate agent who joined the NAR, plain and simple.

You may have noticed the trademark I write in “Realtor®”, and that’s because the NAR doesn’t want their trademark to be just another household name in the dictionary, like yo-yo or frisbee (yeah, those are brand names!). Watch this video published by the NAR titled “Why NAR Protects the REALTOR® Trademark”. Because REALTOR® is a protected trademark, NAR has rules governing who may use the mark and how it may be used.

NOTE: DebitEarn does not speak for the NAR. We are only reiterating what was said in the video published by the NAR.

In 2010, the NAR filed a lawsuit against a brokerage for continuing to use their trademark after discontinuing their NAR membership. The NAR also has sent cease and desists to those who misused their trademarks, including real estate agents that have never been members of the NAR, media misusing the trademark, and former members of the NAR who continue to use their trademark in a way that is not allowed.

You can read more about the NAR’s enforcement efforts on their Trademark Protection Program page.

Realtors® have to pay dues to the NAR, while real estate agents that aren’t Realtors® don’t have to. The biggest distinction between the two is the NAR’s Code of Ethics.

While all real estate agents have to follow national and state laws, NAR members must also follow the NAR Code of Ethics. Realtors® are held to an additional standard of conduct.

So, should you choose a real estate agent who is a REALTOR®?

Well, it’s really just up to you. No matter whether a real estate agent is a member of the NAR or not, a good real estate agent should be knowledgeable, transparent, and dedicated to your needs. A membership with the NAR doesn’t make the agent better than any other real estate agent by default. When choosing who to work with, ask questions which are important to you. Is experience important to you? Availability? Strategy? Communication style?

	Real Estate Agent	REALTOR®
Licensed to practice real estate	✓	✓
Must follow state & federal laws	✓	✓
NAR member	Not necessarily	✓
Pays NAR dues	Not necessarily	✓
Bound by NAR Code of Ethics	Not necessarily	✓
Authorized to use the REALTOR® mark under NAR rules	Not necessarily	✓
Can be equally skilled & trustworthy	✓	✓

The most important thing is to find someone you trust, someone who knows the market, and has your best interests at heart.