What is a brokerage agreement?
A brokerage agreement is a type of contract wherein one party agrees to act as a sales agent of another, who is called the principal.
What is the difference between a brokerage and an agent?
Real estate agents have a professional license to help people buy, sell, and rent real estate. ... Brokers are real estate agents who have completed additional training and licensing requirements. They can work independently and hire other real estate agents to work for them.
What is an agent to a broker?
What's the difference between a real estate broker and an agent? In real estate, an agent is an individual who is licensed to sell property in their state. A broker is someone who is licensed to own their own real estate firm. A real estate agent cannot work on their own, they must work under a licensed broker.
Do brokers make money from agents?
Brokers earn money two ways: A percentage of the commission earned by the agents they sponsor. One hundred percent of the commission from their own deals.