Band-Aid. Google. REALTOR® .
Sometimes the names of companies and designations become shorthand for entire industries or actions, and the original meaning of the word gets a little lost. When talking about real estate, however, there are important distinctions between those who are REALTORS® and those who are not.
A REALTOR® is a member of the National Association of REALTORS® (NAR), a private trade organization that has been in existence for over 100 years. If a real estate licensee is not a member of NAR, they cannot call themselves a REALTOR®.
To become a REALTOR®, a real estate agent must have BOTH an active real estate license and meet other membership requirements. REALTORS® agree to abide by the REALTOR® Code of Ethics, which can extend further than what state laws prescribe. If a REALTOR® violates the Code of Ethics, the REALTOR® can be sanctioned or in extreme cases, expelled from membership in NAR. A sanction for violating the Code of Ethics does not necessarily impact the licensee’s ability to continue to practice as a real estate professional.
For a quick look at what additional qualifications it takes to be a REALTOR®, see the chart below.
REALTOR® Qualifications
REAL ESTATE SALESPERSON | REALTOR® | |
| Licensed by a government agency | & | Membership in trade association (NAR) |
| Must meet pre-licensing requirements | & | Must meet membership requirements |
| Follows state laws and regulations | & | Follows the NAR Code of Ethics and Standards of Practice |
| Regulated by Real Estate Commission | & | Regulated by REALTOR® Associations |
| Complaints investigated by Commission | & | Complaints heard by REALTOR® Association |
| Sanctions impact ability to practice | & | Sanctions affect membership in NAR |
For more information on the differences between REALTORS®, real estate brokers and real estate salespersons, see our Difference Between a REALTOR, Real Estate Agent, and Broker blog.
