Few people realize that the word "Realtor" is a coined word, a trade-marked designation. In its proper form it should be written in all capital letters, with a little trademark symbol after it: REALTOR®.

All 50 states issue licenses--after required study and examinations--to real estate salespersons and real estate brokers. In most states the salesperson's license represents entry-level status, and the salesperson must work, almost in an apprenticeship position, under the supervision of a licensed broker.

A broker's license is usually issued only after additional study, examination and experience in the field.

Only the broker is allowed to charge the public for services, and all contracts (listings, buyer broker agreements) are made with the firm's principal broker, not with the individual salesperson.

One may be licensed by the state without being a Realtor, just as one may hold a physician's license without belonging to the American Medical Association.

Those brokers who do choose to join the local, state and national Associations (or Boards) of Realtors are properly called REALTORS®. Salespersons under their supervision usually join as Realtor-Associates.

Realtors subscribe to a Code of Ethics, constantly updated to meet changing conditions in the industry. They administer mediation and arbitration hearings to enforce their code, which often goes beyond state license regulations.

And they typically agree to share information about each other's listed properties, through a local or regional Multiple Listing System (MLS), which gives sellers' properties wide exposure, and offers buyers an efficient way to house-hunt.

The coined word has become so successful, though, that it threatens to slip into common speech. The National Association of Realtors is alert to protect its rights, like the makers of Coke, Band-aid and Xerox. The scary example of what can happen if the public accepts a word too thoroughly is what happened with "aspirin", which once belonged exclusively to the Bayer company.

So: every REALTOR® is licensed. But not every licensee is a Realtor.

Also See Real Times Articles On: Finding The Right REALTORŽ

Published: January 21, 1999

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