According to Bankrate, there are three different tiers under the broader title of real estate broker. These are principal real estate brokers, managing real estate brokers, and associate real estate brokers. There are some key differences in the specific role each of these brokers plays during the house-buying process.
A principal broker is a brokerage’s managing broker and can hold the authority to sign off on major financial decisions and client transactions. They are also responsible for providing direction and supervision for the agents and brokers within a brokerage. They make sure all of these agents comply with state and local real estate laws and act in more of a management role.
Managing brokers also take on a supervisory role. However, rather than providing oversight for the entire brokerage, they supervise day-to-day activities and needs. Some of the responsibilities of a managing broker include hiring agents and providing training. Managing brokers often take on the role of a real estate agent as well, showing their clients properties or helping them sell a home.
Associate brokers have completed the necessary requirements to obtain a broker’s license. However, rather than operating their own brokerage, they have decided to continue their real estate work under a different broker. Their responsibilities will look the same as those of a real estate agent, as they generally do not act in any supervisory role.