If you are just starting to look into a real estate career, the titles can be confusing. Agent, salesperson, sales associate, broker, associate broker, provisional broker, managing broker. Some of these mean different things in different states, and a few states don't issue a "salesperson" license at all.
This guide explains the basic difference between the two levels of license, how the requirements compare in several large states, and the states where the entry-level license is called "broker."
Key takeaways
- In most states, you start with a salesperson license and must work under a supervising broker.
- A broker license usually requires more education, licensed experience and a separate exam. The requirements vary widely by state.
- Several states, including Colorado, Illinois, Indiana, Oregon and Washington, call their entry-level license "broker." North Carolina's entry license is provisional broker.
- In those states, the license that lets you run a brokerage has another name, such as managing broker or broker-in-charge.
- "Agent" is a general term, not a license type. "Realtor" is a trademark for members of the National Association of REALTORS®.
The basic difference
The two levels exist because of supervision.
A salesperson (called a sales associate in Florida and a sales agent in Texas) is licensed to help people buy, sell or lease real estate, but only while affiliated with a broker. You cannot work independently. Your commissions are paid to your broker, who then pays you under your agreement. Your broker is responsible for supervising your work.
A broker can operate independently. A broker can open a brokerage, hire and supervise salespeople, hold client funds in a trust or escrow account and be paid commissions directly. Many brokers still work under another broker, sometimes called an associate broker, but they have the option to run their own firm.
In practice, the day-to-day work of a new salesperson and a new broker can look very similar: listing homes, working with buyers, holding open houses. The difference is legal responsibility and independence.
How the requirements compare
Becoming a broker typically requires three things beyond the salesperson license:
- More prelicense education
- A period of active licensed experience
- A separate broker exam (most states, not all)
Here is how several large states compare. These figures come from our licensing dataset, drawn from each state regulator's published requirements. Confirm current rules with your regulator before you plan, since requirements change.
| State | Salesperson prelicense hours | Broker prelicense hours | Experience required for broker | |---|---|---|---| | California | 135 | 360 | 2 years | | Texas | 180 | 900 total | 4 years active (within the last 60 months) | | Florida | 63 | 72 | 24 months (within the prior 5 years) | | New York | 77 | 152 total | 2 years as a licensed salesperson, plus a points requirement | | Pennsylvania | 75 | 240 | 3 years | | New Jersey | 75 | 150 | 3 years | | Virginia | 60 | 180 | 36 of the last 48 months |
A few things stand out.
- The gap varies a lot. Florida's broker course (72 hours) is only a little longer than its sales associate course. Texas requires 900 total hours for a broker license, though a bachelor's degree offsets 300 hours under TREC rules, and the experience requirement is four years plus an experience-points threshold that took effect January 1, 2026 (TREC).
- Experience is the real gate. In every state above, you can't skip straight to broker. You need years of active licensed practice first.
- The broker exam is a different test. California's broker exam, for example, is 200 questions over five hours with a 75% passing score (California DRE). That is longer and has a higher cut score than its 150-question salesperson exam, which requires 70%.
States where the entry license is "broker"
This is the part that confuses people moving between states or reading national advice. In a number of states, there is no salesperson license. Everyone starts as a broker of some kind, and a higher-level license is required to run a firm.
- Colorado: there is no salesperson license. New licensees get a broker license after 168 hours of prelicense education and work under an employing broker. To become an employing or independent broker, you need two years of active broker experience and a 24-hour brokerage administration course, with no additional exam (Colorado Division of Real Estate).
- Illinois: the entry license has been "broker" since 2011, after 75 hours of prelicense education. Running a brokerage requires a managing broker license, with additional education, experience and a separate exam (IDFPR).
- Indiana: the entry license is "broker," after 90 hours of prelicense education (Indiana Professional Licensing Agency).
- North Carolina: new licensees are provisional brokers. The provisional status is removed by completing 90 hours of postlicensing education (three 30-hour courses) within 18 months. There is no separate broker exam. To run an office, you need to qualify as a broker-in-charge, which takes two years of full-time (or four years of part-time) experience within the prior five years plus a 12-hour course (NCREC).
- Oregon: the entry license is "broker." A principal broker license is the higher level (Oregon Real Estate Agency).
- Washington: the entry license is "broker," after a 60-hour fundamentals course and a 30-hour practices course. A managing broker license is the next level (Washington DOL).
Similar naming shows up in New Mexico (associate broker), South Dakota (broker associate) and Tennessee (affiliate broker). In each of these, the new licensee still works under a supervising or managing broker. The title is different, but the supervision rule is the same as for a salesperson elsewhere.
Why it matters: If you hold a "broker" license in Illinois and move to Pennsylvania, you can't assume you qualify as a broker there. License titles do not translate directly between states. Check the new state's reciprocity or license-recognition rules with its regulator.
Other terms you will hear
- Agent: a general term for anyone licensed to represent clients. It is not a license type.
- Realtor®: a member of the National Association of REALTORS®. Membership is optional and separate from your state license.
- Associate broker: in many states, a person who holds a broker license but chooses to work under another broker instead of running a firm.
- Managing broker / broker-in-charge / designated broker / principal broker: the licensee responsible for supervising an office or firm. The title depends on the state.
Which one should you aim for?
Almost everyone starts at the entry level. You don't have a choice: the broker license in most states requires experience you can only earn after getting licensed.
Reasons people later go for the broker license include:
- Opening their own brokerage
- Managing an office and supervising agents
- Keeping a larger share of commission by working independently
- Professional credibility and more advanced training
Reasons people stay at the entry level:
- They prefer to focus on sales, not on supervision or compliance
- Their brokerage provides support, branding and leads they value
- Running a brokerage adds liability, trust-account responsibilities and costs
There is no wrong answer. Many successful agents never get a broker license.
What this means for your exam
Whatever your state calls it, your first exam is the entry-level exam: salesperson, sales associate, or broker in states like Colorado or Illinois. Your state's guide lists the exact name, format, question count and passing score from the official candidate handbook.
Start with your state's guide, such as Illinois, Colorado or North Carolina. To see what the entry-level license costs and how long it typically takes, check real estate license cost by state. When you are ready to test yourself, try a state practice test or browse all practice tests. Full state question banks are included in REEX Prep plans.