What is a Principal Broker?
Real Estate Agent
Real estate agent is the most commonly used and understood term in the public sphere to refer to someone who helps people buy and sell homes, but “real estate agent” is not typically the license term or official term the local governments use.
Real Estate Broker
Real estate agent is not the licensed term or the official term in Oregon and in most states.
In Oregon someone who is licensed to sell homes or represent buyers purchasing homes is called a Broker. All of these Brokers will still typically refer to themselves as real estate agents because that is what the public easily understands (but these Brokers in their advertising requirements still need to refer to themselves by their proper licensing term – as Brokers or Principal Brokers). To become a Broker in Oregon applicants must complete 150+ hours of education and must pass a national and state exam.
The Oregon Real Estate Agency governs real estate Brokers.
Realtor is a membership term for a real estate Broker. Most real estate Brokers are members of the National Association of Realtors and will also be members of their local state Realtor association, in Oregon it is simply called the Oregon Association of Realtors. Realtor memberships promote education among its members, and advocate for the real estate industry in general. OAR says, “The Association’s core purpose is to advance the ability of Oregon REALTORS to practice the real estate profession in an ethical, profitable and successful manner.”
What is a Principal Broker?
A Principal Broker in Oregon is a Broker who became a Principal Broker by taking additional education courses and passing a higher level test. The Principal Broker license is a “higher” licensed than Broker and Principal Brokers can supervise Broker’s real estate activity. You’ll notice I emphasized “can” because many Principal Brokers do not supervise any other Broker’s activity, they simply have obtained the higher level of real estate licensing.
So, in Oregon there are Principal Brokers who are acting as independent Brokers, then there are Principal Brokers who supervise the activity of a local real estate team, and finally there are Principal Brokers who supervise activity within a larger licensed Realty Brokerage. If you are curious as to what a Principal Broker is up to, you’ll have to ask them. The Principal Broker has increased education, different recurring educational requirements, and the ability to supervise other Brokers.
Portland Principal Broker
At the Stephen FitzMaurice Team with eXp Realty, we have multiple Principal Broker members, some who are supervising other team members and some who are not, but just wanted the higher level education. We then are also supervised by eXp Realty Principal Brokers often referred to as “reviewing Principal Brokers” who supervise many Brokers under the same agency. This quick example is typical of the real estate market in Portland and hopeful can bring some clarity to questions you might have. And yes, finally I am also a Principal Broker and I obtained the license for the higher education and to assist in supervising my team Brokers.June 25, 2018