What's the Difference Between a Realtor and a Real Estate Agent?

One of the biggest misconceptions about real estate professionals is that Realtor and real estate agent mean the same thing. These terms are often used interchangeably and sound similar, but they have different meanings.

This post further explains the difference between a Realtor and a real estate agent. The information will help you understand which title(s) you need to have to practice real estate.

What Is the Difference Between a Realtor Designation and a Real Estate Agent License?

Real Estate Agent License Basics

A real estate agent license is a state-issued license that allows the license holder to legally assist the general public in buying and selling real estate. You can’t call yourself a real estate agent without having an active state-issued license. Aceable can help you get your real estate license online, at your own pace.

A real estate license is only applicable in the state where it’s issued. However, some states allow for portability — when out-of-state licensed agents can take part in local transactions.

It’s also possible to hold real estate licenses in multiple states. In many cases, once you hold a real estate license in one state, it’s easier to earn another license since you may be exempt from some licensure requirements.

Requirements for a Real Estate License

The typical requirements for obtaining a state-issued real estate license include:

• Being at least 18 years old

• Being a US citizen or legal resident

• Completion of a specific number of hours of real estate education, usually somewhere between 30-90 hours (passing a final course exam may also be required)

• Successful completion of a state real estate exam (typically a national portion and a state portion)

• Pay a licensing fee

• Get sponsorship from a licensed real estate broker

Every state makes its own requirements for obtaining a real estate license. One thing that’s fairly consistent from state to state is that you need to complete real estate education at an accredited university, college, or state-approved real estate school.

Once a person has earned a real estate license, they must complete continuing education and go through the renewal steps to maintain their active licensed status. Typically, licenses have to be renewed every 2-4 years.

Real estate agents also have to continue to work under the supervision of a licensed broker. Although licensed real estate agents manage their own micro-businesses and handle all the day-to-day duties, they technically work for their broker.

Realtor Designation Basics

The term Realtor is a federally registered trademark that applies specifically to real estate professionals who are active members of the National Association of Realtors® (NAR). Real estate agents who are not active NAR members cannot call themselves Realtors.

NAR was established in 1908 and is one of the largest professional organizations in the world today. As of January 2025, there are 1.5 million members and 1,200 associations/boards. There are also 87 cooperating associations across 66 countries.

Something worth noting is the NAR organization doesn’t actually grant any official “license” to its members. So, interestingly, the term “Realtor license” is a misnomer. But the industry needed a shorthand way of saying “a real estate agent license held by someone who’s also a member of the NAR”. So that’s what the Realtor designation has come to represent.

In addition to licensed real estate agents, licensed brokers, associate brokers, property managers, real estate counselors, and appraisers can also be Realtors. Therefore, all Realtors are licensed real estate professionals, but not all licensed agents are Realtors.

One of the biggest differences between a Realtor and a real estate agent is the NAR Code of Ethics. Realtors have to follow the code, while real estate agents do not. The Code includes 17 ethics points and 71 supporting Standards of Practice. The NAR Code of Ethics sets a very high standard for professionals and gives consumers peace of mind. This is one big reason why NAR has such a stellar reputation and many people prefer to work with a Realtor.

Requirements for the Realtor Designation

The typical requirements for obtaining membership in NAR include:

• Having an active real estate license

• Active engagement in the industry

• Having a clear civil and criminal legal history for the 7 prior years

• Having no pending bankruptcy

• Having no professional sanctions

• Agreement to abide by the NAR Code of Ethics

• Completion of an orientation course

• Payment of membership dues

Another caveat is that the principal of a real estate firm must be a member of NAR before a non-principal can join. Many firms will have a designated Realtor to meet the qualifications so their agents can join.

For many people, the Realtor designation represents a commitment to a career in the real estate industry and working with integrity. It’s not uncommon for buyers and sellers to choose one agent over another simply because they are a Realtor.

Additional NAR Certifications and Designations

Another unique aspect of NAR membership is that it allows Realtors to earn additional NAR certifications and designations.

The current selection of NAR designations includes:

• Accredited Buyer Representative (ABR)

• Accredited Land Consultant (ALC)

• Certified Commercial Investment Member (CCIM)

• Certified International Property Specialist (CIPS)

• Certified Property Manager (CPM)

• Certified Real Estate Brokerage Manager (CRB)

• Certified Residential Specialist (CRS)

• Counselors of Real Estate® (CRE)

• General Accredited Appraiser (GAA)

• NAR's Green Designation (GREEN)

• Graduate Realtor Institute (GRI)

• Performance Management Network (PMN)

• REALTOR® Association Chief Executive (RCE)

• Residential Accredited Appraiser (RAA)

• Seller Representative Specialist (SRS)

• Society of Industrial and Office Realtors (SIOR)

• Seniors Real Estate Specialist (SRES®)

The current selection of NAR certifications includes:

• At Home With Diversity (AHWD)

• Broker Price Opinion Resource (BPOR)

• Certified Real Estate Team Specialist (C-RETS)

• Digital Marketing: Social Media

• e-PRO®

• Home Finance Resource (HFR)

• Inside Sales Agent

• Luxury Homes Certification (LHC)

• Military Relocation Professional (MRP)

• Pricing Strategy Advisor (PSA)

• Real Estate Investing (REI)

• Real Estate Negotiation Expert (RENE)

• Resort & Second-Home Property Specialist (RSPS)

• Short Sales & Foreclosure Resource (SFR)

• Smart Home

All of these additional certifications and designations are powerful marketing tools that help set an agent apart, especially if they want to make a name for themselves in a particular niche. There’s also a REALTOR University Graduate School and Green Resource Council that provide additional education.

Bottom line: Being a Realtor gives an agent access to more education that can significantly further their career.

Do You Need You Need a License and the NAR Designation?

The short answer: you only need a state license to legally work as a real estate agent. However, if you plan to build a career in real estate you should probably get both.

If you’re serious about your real estate career, you should start with a real estate agent license, then soon after, become a member of NAR to market yourself as a Realtor. Aceable Agent is an online education company that can help you pass your state licensing exam.