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Realtor: Who They Are and What They Do

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Updated March 25, 2024

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What Is a Realtor?

A realtor is a real estate professional and a National Association of Realtors (NAR) member. The NAR defines the term realtor as a federally registered collective membership mark that identifies a real estate professional who is a member of the association and subscribes to its code of ethics.

Key Takeaways

A realtor is a real estate professional and a National Association of Realtors (NAR) member.
Professionals who may hold the title of realtor include agents who work as residential and commercial real estate brokers, salespeople, and property managers.
Realtors follow the NAR’s code of ethics, which requires agents to uphold a certain standard when working with clients.

NAR Requirements

Realtors are licensed professionals who facilitate transactions between buyers and sellers and are members of NAR. All realtors are licensed real estate professionals, but not all real estate agents are considered realtors. Professionals who hold the title of realtor include agents who work as residential and commercial real estate brokers, salespeople, property managers, appraisers, counselors, and other real estate professionals. The term realtor is a registered trademark.

In 2024, 1.5 million members of the NAR include real estate agents, brokers, and associate brokers. Realtors must belong to a local association or board and a state association.Realtors are expected to be experts in their field and must follow the NAR’s code of ethics with clients, customers, the public, and other realtors.

Among its many requirements, the code of ethics says that realtors "shall avoid exaggeration, misrepresentation, or concealment of pertinent facts relating to the property or the transaction.” Realtors must “pledge themselves to protect and promote the interests of their client.”

New rules for the National Association of Realtors, expected to take effect in July 2024, may lower commissions for home buyers and sellers. If a federal court approves the changes, the standard 6% commission ends and sellers no longer have to propose compensation to prospective buyers and their agents. NAR will also require brokers to enter into written agreements with their buyers to help consumers understand what services will be provided, and at what cost.

Using the Realtor Trademark

The NAR maintains stringent rules on the use of the realtor trademark. Professionals who hold membership as a realtor or realtor-associate on a member board are licensed to use realtor trademarks in connection with their name and the name of their real estate business.

The realtor trademark is prohibited from being used as part of the legal corporate name of members. According to the NAR, this is done to avoid the legal issues involved with a corporate name change if a member were suspended or expelled from the association and lost the right to use the trademark.

NAR’s guidelines state that if a qualified member uses the realtor trademark as part of their name, it must appear in all capital letters and be set off from the member’s name by punctuation. The NAR does not use the realtor trademark with descriptive terms or as a description of the vocation the way terms such as real estate broker, agent, and licensee are used. The association also says that realtor trademarks are not to be used as a designation of the licensed status of a professional.

When Was the National Association of Realtors Started?

The NAR was founded as the National Association of Real Estate Exchanges in 1908. At the time, it had 120 members, 19 boards, and a single state association.

What Is the Realtor Code of Ethics?

The Code of Ethics & Professional Standards is a set of rules focused on fair and honest behavior that members pledge to abide by. The Code of Ethics holds members to a high moral standard.

How Are Real Estate Agents Different From Realtors?

Real estate agents are licensed by their state to help people buy and sell real estate. Realtors are real estate agents who have opted to become members of the National Association of Realtors.

The Bottom Line

A realtor is a National Association of Realtors (NAR) member. Professionals who may hold the title of realtor include agents who work as residential and commercial real estate brokers, salespeople, and property managers. Realtors must abide by the NAR’s code of ethics.

Article Sources

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National Association of Realtors. "About NAR."
National Association of Realtors. "NAR by the Numbers."
National Association of Realtors. "How to Join NAR."
National Association of Realtors. "2024 Code of Ethics & Standards of Practice."
National Association of Realtors. "National Association of REALTORS® Reaches Agreement to Resolve Nationwide Claims Brought by Home Sellers."
National Association of Realtors. "Use of the MARKS With a Member’s Firm Name."
National Association of Realtors. "Membership Suspension Information."
National Association of Realtors. "Use of the MARKS With a Member’s Name."

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