Licensing PA: Differences In Sales And Broker Licenses

What’s the difference between real estate brokers and real estate sales licensees?

There are two practical differences.

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First, the relationship between a broker and a salesperson is much the same as that between a boss and an employee. A broker operating his or her own office under state law must supervise and oversee all sales licensees working from that office or on the broker’s behalf.

Second, a broker is the only individual empowered by state law to conduct a real estate transaction. Salespersons have no legal authority to participate in a transaction without their broker’s involvement.

Individuals who hold a Pennsylvania broker’s license but work in the office of, and on behalf of, another broker is known by the state as “associate brokers.” They too are subject to supervision.

Under state law, salespersons and associate brokers are deemed to be independent contractors of the supervising broker.

It’s more difficult and takes longer to get a broker’s license.

To become a broker in Pennsylvania applicants must have three (3) years of experience as a real estate salesperson and earn 16 credits which are equal to 240 hours of pre-broker instruction. Applicants may take courses in the classroom, via live-stream, or self-paced online. Unless you intend to work with another broker as an associate broker, you’ll need to start up your own office and meet the state’s requirements. Learn more about Broker Requirements.

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