Legal Definitions - Realtor

A Realtor is a licensed real estate professional—either a real estate agent or a real estate broker—who is also a dues-paying member of the National Association of Realtors (NAR). The term "Realtor" is a registered trademark and signifies that the individual adheres to NAR's strict Code of Ethics and Standards of Practice, in addition to their state licensing requirements. While all Realtors are real estate agents or brokers, not all real estate agents or brokers are Realtors.

Here are some examples illustrating the term:

• Example 1: Residential Home Purchase
  When Sarah and Tom decided to buy their first home, they specifically looked for a professional who identified as a Realtor. They felt reassured knowing that their agent, by being a member of the National Association of Realtors, was bound by a comprehensive Code of Ethics, which provided an extra layer of protection and professional conduct during their significant financial transaction.

  How this illustrates the term: Sarah and Tom's choice highlights that a Realtor is not just any real estate agent, but one who has chosen to affiliate with NAR and adhere to its ethical standards, which often influences client trust and selection.

• Example 2: Commercial Property Sale
  A local business owner, Mr. Henderson, needed to sell his office building. He interviewed several real estate brokers specializing in commercial properties. He ultimately chose a broker who was a designated Realtor, believing that this affiliation indicated a higher level of professionalism, access to a broader network of potential buyers through NAR's resources, and a commitment to fair dealing in a complex commercial sale.

  How this illustrates the term: This scenario demonstrates that the Realtor designation applies to both residential and commercial real estate professionals and is often sought after for the perceived benefits of professionalism, ethical conduct, and network access that come with NAR membership.

• Example 3: Rural Land Transaction
  The Miller family decided to sell a large parcel of undeveloped land they owned outside the city. They contacted a real estate professional who specialized in rural properties and proudly displayed the Realtor logo on their website and business cards. The Millers appreciated that this professional, as a Realtor, was committed to ongoing education and ethical practices, which was particularly important for navigating the unique challenges of selling agricultural or recreational land.

  How this illustrates the term: This example shows that the Realtor designation extends to various types of real property, including rural land. It underscores that membership in NAR signifies a commitment to professional development and ethical standards across diverse real estate sectors.