What are the differences between an agent and a broker?
An agent and a broker are both involved in business transactions, but serve different roles. An agent is a person or entity who is employed by a principal to represent them in business transactions. The agent must act in accordance with directions from the principal and to obey their instructions, and in return, they receive compensation in the form of a fee, commission, or salary. A broker is an independent person who acts as an intermediary between a buyer and seller in a business transaction. They provide advice and services to buyers and sellers in areas such as negotiation, legal compliance, and advertising and promotion. The broker generally charges a fee for their services, and their role is to facilitate a successful transaction between the two parties. In Rhode Island, agents and brokers must be licensed by the Department of Business Regulation in order to practice. The state also requires that they participate in the Rhode Island Real Estate Commission, which provides education and regulation of real estate industry professionals. Ultimately, the key difference between an agent and a broker is that an agent is employed by a principal, while a broker is an independent individual who acts as an intermediary between a buyer and seller. Agents must act according to the instructions of their principal, while brokers provide advice to buyers and sellers and facilitate the transaction.
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