What is the Difference Between a Realtor and a Real Estate Agent?

Realtor vs Real Estate Agent

Many people use the terms “Realtor” and “real estate agent” interchangeably when discussing property transactions. While the two roles are related, a critical distinction separates them. Answering the question, “What is the Difference Between a Realtor and a Real Estate Agent?” is important for anyone preparing to buy or sell a home. Understanding this difference helps you make an informed choice about the professional you hire to guide you through one of life’s most significant financial decisions.

All Realtors are licensed real estate agents, but not all real estate agents are Realtors. The primary difference lies in professional affiliation. A Realtor is a member of the Canadian Real Estate Association (CREA). This membership binds them to a strict Code of Ethics that goes beyond provincial licensing requirements. This commitment to a higher ethical standard directly impacts the level of service and accountability you receive as a client, offering you greater peace of mind during the real estate process.

The Foundation: Becoming a Real Estate Agent

The first step for any individual who wants to trade in real estate is to become a licensed real estate agent. This process is governed and mandated by provincial law. It ensures that every professional has a fundamental level of knowledge and competence to represent clients. The journey begins with extensive coursework. Aspiring agents must complete a rigorous educational program that covers property law, contract law, property valuation, and the principles of real estate trading.

After successfully completing the required courses, the candidate must pass a comprehensive licensing examination. This exam tests their understanding of the legal and practical aspects of the job. Once they pass the exam, they must register with the provincial real estate regulatory body. This organization oversees the industry and protects consumer interests. The agent must also secure employment with a licensed real estate brokerage, as agents cannot operate independently. This licence legally permits them to help clients buy, sell, or lease residential and commercial properties within their province.

Click here to learn more about how Shelburne real estate agents can help you
Related Article: What Are Some Real Estate Agent Services and Basics?
Related Article: What Are the Biggest Complaints About Realtors?

The Code of Ethics: A Commitment to Clients

The Realtor Code is more than just a document; it is a pledge of professional honour and responsibility. It ensures Realtors conduct business in a way that serves the best interests of their clients and the public. The Code is built on a foundation of honesty, fairness, and professional integrity, providing consumers with a tangible level of protection. It establishes clear rules that members must follow or face disciplinary action from their real estate board. This accountability framework is a key benefit for anyone who works with a Realtor.

The principles within the Code translate into specific duties that protect you during your transaction. These standards ensure you receive dedicated and transparent service.

• Duty to Clients

  A Realtor pledges to protect and promote the interests of their client above all else. This primary duty requires them to act as a loyal advocate. At the same time, it does not remove their obligation to treat every party to the transaction with honesty.

• Duty of Full Disclosure

  Realtors must disclose all pertinent facts related to a property or a transaction. They have an obligation to avoid exaggeration, misrepresentation, or the concealment of relevant information. This ensures clients can make decisions based on complete and accurate details.

• Duty of Cooperation

  The Code promotes cooperation among Realtors to best serve the interests of clients. This collaborative spirit helps create an efficient marketplace. It ensures that buyers see all available properties and sellers get broad exposure for their listings.

Practical Advantages of Working with a Realtor

Choosing a Realtor provides you with tangible benefits that can directly impact the success of your real estate journey. The most significant advantage is exclusive access to the Multiple Listing Service (MLS) system. Only members of local real estate boards can post properties for sale on the MLS. This powerful database is the largest and most comprehensive source of property listings available. It is the primary tool that professionals use to find homes for buyers and market homes for sellers.

For sellers, having your home listed on the MLS means it gets maximum exposure to a wide audience of potential buyers and their agents. For buyers, it means your Realtor can show you nearly every available home in your desired area that fits your criteria. Another key advantage is the enhanced accountability. If you feel a Realtor has not acted ethically, you can file a complaint with their local real estate board. The board has the authority to investigate the issue and enforce the Code of Ethics, providing a clear path for recourse that complements the provincial regulatory system.

Do All Real Estate Agents Become Realtors?

While the vast majority of practicing real estate agents are Realtors, membership in CREA is voluntary. An individual can hold a valid real estate licence from the provincial regulator and legally trade in real estate without being a Realtor. This means they are not a member of their local board, provincial association, or the national association. As a result, they are not bound by the Realtor Code of Ethics and do not have access to the MLS system.

An agent might choose this path for a few reasons. Some work exclusively for a single home builder, selling new construction homes directly to the public. In this niche, they may not need the broad market access that the MLS provides. Others may wish to avoid the annual membership fees associated with the real estate boards and associations. However, it is important to recognize that these professionals represent a small fraction of the industry. Most real estate brokerages require their agents to become Realtors to ensure a uniform standard of practice and to access the essential tools of the trade.

How to Verify a Professional’s Credentials

Confirming the credentials of the professional you plan to work with is a simple and prudent step. To verify if an individual is a Realtor, you can look for the official Realtor logo. Members of CREA use this trademarked symbol on their business cards, websites, and marketing materials. The presence of this logo signifies their membership and their commitment to the Code of Ethics. You can also ask the person directly about their professional affiliations. A proud Realtor will be happy to confirm their membership.

It is also wise to check their basic licence status. Every province has a public database managed by its real estate regulator. You can use this online registry to confirm that your agent holds a valid and active licence to trade in real estate. This search will also show their brokerage affiliation and any disciplinary history. Taking a few moments to perform these checks ensures you are working with a qualified and accountable professional. It empowers you to begin your real estate transaction with confidence.

Conclusion

The key difference between a real estate agent and a Realtor is the Realtor’s membership in the Canadian Real Estate Association. This membership holds them to a strict Code of Ethics that surpasses the basic legal requirements of a real estate licence. While every Realtor is a licensed agent, the reverse is not true. The Realtor designation represents a pledge to uphold higher standards of professionalism, integrity, and client service. It provides you, the consumer, with an added layer of assurance and protection.

When you decide to buy or sell a property, making an informed choice about your representative is crucial. By selecting a Realtor, you partner with a professional who has access to the powerful MLS system and is accountable to a strong ethical code. This decision ensures you have a dedicated advocate who is committed to protecting your interests throughout the entire process. Look for the Realtor name to guarantee you receive the highest standard of care in your real estate transaction.