Arizona real estate brokers vs. agents

… what’s the difference between an Employing Broker, Designated Broker, Associate Broker, Salesperson, and Agent?

Employing Broker …  an entity, usually a LLC, that is registered with the State and authorized to engage in specific real estate activities. All commission are paid to the Employing Broker.

Designated Broker …  the individual that is licensed as a broker in the State of Arizona and is specifically responsible to the State for all real estate activities conducted by the Employing Broker. This person is “the boss” … who must review and approve all documents involved and answer to the State for problems and complaints. Technically it is the Designated broker who represents all clients of the Employing Broker.

Salesperson … the designation used by the State for an “agent” or “sales associate” … is hired as an independent contractor by the Employing Broker to interact with the public and facilitate real estate transactions. The Employing Broker pays compensation to the Salesperson based on an employment contract between them. Technically, the Salesperson represents the Designated Broker … not the client.

Associate Broker … is a person who holds a fully qualified Arizona Broker license but is working simply as a Salesperson.

An Employing Broker may have hundreds of both salespersons and “associate” brokers, but only one “designated” broker.

 

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