How does a broker differ from an agent in real estate?

The distinction between a broker and an agent in real estate is fundamentally rooted in their roles and responsibilities within the industry. A broker is typically a licensed professional who has completed additional education and training beyond what is required for an agent. This advanced training enables brokers to manage their own real estate business and to supervise agents working under them.

In this context, a broker's supervisory role involves overseeing the activities of agents, ensuring compliance with legal and ethical standards, and providing guidance and support to help agents succeed. This responsibility not only emphasizes the broker's higher level of expertise but also highlights the broker's role in maintaining the integrity and professionalism of the real estate transaction process.

The other options present misconceptions about the roles of brokers and agents. An agent cannot operate independently in the same way a broker can, as agents typically work under the authority of a broker. Furthermore, a broker is required to hold a specific license to conduct business, which is not the case for the incorrect assertion that brokers do not require a license. Lastly, while an agent may be involved in handling various aspects of transactions, the statement that an agent handles all financial transactions is an oversimplification, as financial responsibilities can be shared or coordinated under the broker’s supervision.