Distinction Between a Real Estate Agent and a Realtor

In the Nigerian real estate market, the terms “real estate agent” and “Realtor” are often used interchangeably. However, they are not the same. Understanding the distinction between these two roles is crucial, especially for property buyers, sellers, and investors looking to navigate the complexities of the market.

A Real Estate agent is a licensed professional who assists clients in buying, selling, or renting properties. They act as intermediaries between buyers and sellers, helping negotiate deals, manage paperwork, and

guide clients through the legal and financial aspects of transactions. In most cases, real estate agents earn commissions based on the value of the property they help sell or lease. Their duties may include marketing properties, arranging viewings, and ensuring that transactions comply with local regulations.

The key responsibilities of a real estate agent include:

1. Property Listings and Marketing: Creating and promoting property listings through various platforms, such as online portals, social media, and print ads, to attract potential buyers or tenants.
2. Client Representation: Acting as a representative for either buyers, sellers, or renters, ensuring their interests are protected throughout the transaction process.
3. Property Viewings: Scheduling and conducting property tours or open houses for prospective buyers or tenants, providing detailed information about the properties.
4. Negotiation: Facilitating negotiations between buyers and sellers (or landlords and tenants) to ensure both parties reach a favorable agreement on price, terms, and conditions.
5. Contract Management: Assisting in the preparation, review, and execution of legal contracts, including purchase agreements, rental agreements, and disclosure forms.
6. Market Analysis: Providing clients with information on current market trends, property values, and pricing strategies to guide informed decision-making.
7. Legal and Regulatory Compliance: Ensuring that all transactions follow local real estate laws and regulations, including zoning, financing, and contract requirements.
8. Client Consultation: Advising clients on property investments, offering insights into location, future property value, and potential returns.
9. Closing Assistance: Coordinating with lawyers, mortgage brokers, and other professionals to facilitate smooth property closings, ensuring that all paperwork is complete and accurate.
10. Ongoing Communication: Keeping clients informed throughout the process, providing updates on negotiations, market conditions, and any issues that may arise.

A Realtor is a licensed real estate professional who is also a member of the National Association of Realtors (NAR), an industry organization that requires its members to adhere to a strict Code of Ethics. While all Realtors are real estate agents, not all real estate agents are Realtors. Realtors commit to maintaining high professional standards, providing ethical and fair service to clients, and staying up-to-date on industry regulations and practices.

Being a Realtor often signals to clients that the agent is dedicated to upholding best practices in real estate and is bound by the NAR’s ethical guidelines. Realtors can specialize in various areas of real estate, such as residential, commercial, or industrial properties, and their responsibilities are similar to those of real estate agents, but with an added focus on ethical practices and continuous professional development.

The key responsibilities of a Realtor include:

1. Client Representation: Acting in the best interest of clients, whether they are buying, selling, or renting property, and providing expert advice throughout the process.
2. Adherence to the Code of Ethics: Upholding the strict ethical standards set by the National Association of Realtors (NAR), which emphasizes honesty, integrity, and professionalism in all transactions.
3. Property Listings and Marketing: Creating professional property listings, using advanced marketing techniques, and leveraging the Realtor network to attract potential buyers or renters.
4. Market Research and Analysis: Providing clients with in-depth knowledge of current market conditions, including property values, trends, and investment opportunities, to help them make informed decisions.
5. Negotiation: Serving as a skilled negotiator between buyers and sellers (or landlords and tenants), working to secure favorable terms for their clients while maintaining fairness in the deal.
6. Contract Preparation and Management: Overseeing the drafting, review, and execution of contracts, ensuring compliance with legal requirements, and that all documentation is accurate and complete.
7. Compliance with Laws and Regulations: Staying informed about local real estate laws and regulations to ensure all transactions adhere to legal standards, including zoning, financing, and disclosure rules.
8. Education and Professional Development: Continuously attending training, workshops, and educational programs to stay updated on industry trends, laws, and emerging practices as part of the commitment to NAR’s standards.
9. Professional Networking: Leveraging connections within the real estate industry, including other Realtors, lenders, inspectors, and legal professionals, to provide clients with a comprehensive service.
10. Client Communication and Support: Maintaining clear, consistent communication with clients, offering guidance, updates, and support from the start of a transaction to its successful completion.

The key differences between a real estate agent and a Realtor are as follows:

1. Membership and Affiliation:

• Real Estate Agent: A licensed professional who assists clients in buying, selling, or renting properties. They are not required to belong to any specific organization.
• Realtor: A real estate agent who is a member of the National Association of Realtors (NAR) and adheres to its Code of Ethics. Membership is voluntary, but it holds the Realtor to higher ethical and professional standards.

1. Code of Ethics:

• Real Estate Agent: While they must follow local and national laws, they are not bound by the NAR’s Code of Ethics.
• Realtor: Must strictly adhere to NAR’s Code of Ethics, which ensures they provide honest and transparent service to clients, promoting fairness and integrity in transactions.

1. Professional Standards:

• Real Estate Agent: Typically operates based on local real estate laws and general practices. Standards can vary depending on the region and regulatory authority.
• Realtor: Is committed to continuous professional development and maintaining a higher standard of practice, ensuring that they are up-to-date on industry regulations, trends, and best practices.

1. Perception of Trust:

• Real Estate Agent: Their level of professionalism may vary, and they are not necessarily part of any organization that provides extra oversight.
• Realtor: Often viewed as more trustworthy due to their commitment to ethical practices and professional development. Many clients prefer working with Realtors for this reason.

1. Training and Education:

• Real Estate Agent: Must meet licensing requirements but may not have additional education beyond state or local requirements.
• Realtor: Typically invests in ongoing education to remain knowledgeable about the latest industry changes, market trends, and laws, as required by NAR.

1. Scope of Work:

• Real Estate Agent: Can provide services such as buying, selling, or renting properties, but without the additional layer of ethical oversight.
• Realtor: Offers the same services but with a stronger focus on ethical conduct, consumer protection, and higher professional standards, due to their NAR membership.

In summary, while both real estate agents and Realtors perform similar functions, Realtors are held to a higher ethical and professional standard due to their affiliation with the NAR.