Both positions require individuals to take courses and to pass separate state licensing exams. The broker owns the firm and may be an individual, a corporation or a partnership. The broker's salespeople must be individuals. Those salespeople, of course, are the real estate agents, and they cannot sell anything unless they are associated with a broker. The broker provides salespeople with a desk, a phone and clerical services.
Brokers also pay for newspaper ads and other expenses associated with selling a property.
In return, they typically receive half of the commission the real estate agent collects on each sale. Real estate agents make a point of knowing lots of people so that when those people want to buy or sell a house, they already have a relationship. When they list with a brokerage, sellers often sign an agreement giving the broker the exclusive right to list the property for a set period of time. Multiple listing services Of course, any real estate agent can show you and sell you any house, regardless of which broker has the listing. These are local organizations whose broker members have agreed to share their listings.