What’s the difference between a broker and an agent in California

TL;DR

• Brokers hold a higher license and can work independently or manage agents

• Agents must work under a broker and cannot operate solo

• As of Jan 1, 2025, written agreements are required between buyers and their brokers

• Your choice impacts how commissions, responsibilities, and services are handled

What Exactly Is the Role of a Real Estate Agent in California?

Real estate agents in California are licensed professionals who help buyers and sellers navigate property transactions. However, they cannot operate independently. By law, agents must work under the supervision of a licensed real estate broker.

Agents are the ones most clients interact with. They show properties, write offers, and guide clients through the escrow process. However, all legal responsibility for those transactions ultimately falls on their supervising broker.

Core Tasks of an Agent:

• Helping clients buy, sell, or rent homes

• Conducting open houses and showings

• Preparing contracts and offers

• Communicating with lenders, escrow officers, and appraisers

Agents are great for hands-on guidance, but they are not allowed to work solo or collect commissions directly.

So, What Makes a Broker Different?

In contrast, a broker has completed additional education, passed a more rigorous exam, and often has years of experience as a real estate agent first.

A broker can:

·         Work independently

·         Supervise one or more agents

·         Open and manage their own brokerage

·         Collect commissions directly

Think of brokers as the managers of real estate offices. In fact, if you are working with a large brokerage like Compass or Coldwell Banker, there is always a designated broker on file even if you never meet them.

A Quick Comparison Table:

Real-Life Story: Why One San Diego Buyer Chose a Broker

Mark, a first-time homebuyer in Clairemont, initially worked with an agent from a big-name team. After three failed offers and poor communication, he reached out to me directly. I stepped in as his broker, offering direct oversight and a more strategic approach.

“I realized I wasn’t even the agent’s client, I was the broker’s client. Once I got a direct broker, the whole process was faster and more transparent.”

That shift made all the difference. Mark found a home within weeks, and the transaction was smooth from offer to close.

What’s Changing in 2025: New Buyer and Broker Agreement Rules

Starting January 1, 2025, California law requires that all buyers must sign a written agreement with a broker before seeing homes. This law aims to:

• Clarify representation

• Prevent dual agency confusion

• Make fee structures transparent

This means buyers can no longer casually browse homes with an agent without signing paperwork first. It is essential to understand who legally represents your interests, especially since some brokerages still try to serve both sides of a deal.

Why This Matters for You

If you’re actively house hunting, this new rule will change how quickly you can schedule showings. You’ll need to have representation agreements in place ahead of time, which could delay your home search if you’re not prepared. Make sure to interview a few professionals early so you feel confident signing with someone who understands your goals.

What About REALTORS? Are They the Same?

Not quite. A REALTOR is a member of the National Association of REALTORS (NAR). Both agents and brokers can become REALTORS by joining NAR and following their Code of Ethics.

In California, most agents are also REALTORS, but not all brokers are, and vice versa. It is a professional affiliation, not a separate license.

Pros and Cons: Should You Hire a Broker or Agent?

Pros of Hiring a Broker:

• Higher level of experience

• Can provide direct representation

• Better oversight and problem-solving

Cons:

• May cost more in commission

• Fewer brokers operate solo

Pros of Hiring an Agent:

• Often more available and hands-on

• Part of larger teams

Cons:

• Must go through their broker

• May lack experience

Quick Tips: How to Choose Between a Broker and an Agent

When interviewing real estate professionals, here are five things to ask:

1.    Are you a licensed broker or agent?

2.    How long have you been in the business?

3.    Do you work solo or as part of a team?

4.    Will I be communicating directly with you or someone else?

5.    How do you structure your fees and commissions?

These questions help you compare experience, accountability, and client focus. Someone who can answer these clearly and confidently is more likely to provide a smooth transaction.

Extra FAQs Based on Forum Discussions

Why do agents have to work under brokers?

It is a California licensing requirement. Brokers are held to a higher standard and are legally liable for the agent’s actions.

Can a broker act as an agent too?

Yes. Brokers can choose to work with clients directly, acting in the same capacity as an agent, but with more autonomy.

What is an exclusive buyer agent?

This is a broker or agent who only represents buyers, never sellers. They are rare but growing in demand in cities like San Diego.

Ready to Choose the Right Representation?

Whether you are buying your first condo in North Park or selling a luxury home in La Jolla, knowing who represents you matters. Brokers offer experience and independence, while agents often bring energy and responsiveness.

Want expert guidance from the best San Diego broker or best San Diego realtor for your situation? Let us match you with a trusted local professional who puts your goals first, no strings attached.

Call or text (858) 405-0002 or email scott@scottchengteam.com to speak with someone who understands your needs and puts your success first.