What is the primary difference between a real estate salesperson and a broker?

The salesperson-broker hierarchy is fundamental to real estate licensing. Salespersons (sometimes called agents or sales associates) hold the entry-level license and must work under a broker's supervision; they cannot operate independently or hold client funds in their own name. Brokers hold the higher-level license and can: operate independently as a sole proprietor, partner, or corporation; supervise salespersons and associate brokers; hold listing agreements in the brokerage's name; hold escrow/trust accounts; conduct real estate business in their own name. Broker requirements typically include: 2-3 years of active salesperson experience, additional 60-90 hours of broker-specific education, passing the broker exam (covering material beyond the salesperson exam), and meeting any state-specific requirements. Associate brokers are licensed at the broker level but work under another broker. Managing/principal brokers run the brokerage and bear regulatory responsibility.