What is the difference between a real estate brokerage and a real estate agency?

In California, a real estate brokerage is the business entity that a licensed broker operates, employing salespersons to conduct real estate transactions under the broker's supervision. "Agency" refers to the fiduciary relationship between the broker or salesperson and the client they represent, governed by California's laws of agency and fiduciary duties. A licensed salesperson may not perform acts requiring a real estate license without a responsible broker, so all licensed activity flows through the brokerage.

Sources: CA DRE — Salesperson Exam Content; CA DRE — Taking the Exam.

A real estate broker is licensed to work independently and may hire and supervise salespersons, while a real estate salesperson must work under a licensed broker and cannot operate alone. In Connecticut, a brokerage operating as a business entity such as an LLC or corporation must obtain a separate broker license in the name of that entity. The term "agency" in real estate refers to the fiduciary relationship between a licensee and a client, not to a business structure; every licensee who represents a client acts as an agent of that client under a broker's supervision.

Sources: CT DCP — RE Salesperson Initial Exam; CT DCP — RE Salesperson Licensing.

In Idaho real estate, a brokerage is the business entity that a licensed broker operates, while an agent (salesperson) is licensed to act on behalf of a broker and may not work independently. A broker may work independently, hire agents, and own a brokerage, whereas a salesperson must be affiliated with an active broker who supervises their activities and holds responsibility for compliance with licensing law. The term "agency" in real estate also refers to the legal relationship in which the agent represents a client's interests in a transaction.

Sources: Idaho DOPL — RE Education Applicants; Idaho DOPL — REC FAQs & Consumer Info.

In Illinois real estate law, a brokerage refers to the business entity through which real estate services are provided. A sponsoring broker operates this entity as a corporation, LLC, partnership, or sole proprietorship and must hold a managing broker license. Agency, by contrast, refers to the legal relationship of representation between a licensee and a client. The Illinois broker pre-license curriculum devotes 6 hours to the structure of agency, plus additional hours to seller and buyer relationship duties, covering the fiduciary obligations that arise when a broker represents a party in a transaction.

Sources: IDFPR CE Fact Sheet – 2026 Real Estate Broker License Renewal.

In real estate, agency is the legal relationship in which a broker or salesperson represents a client in a property transaction. A brokerage is the business entity that holds a real estate firm license and conducts those transactions. Under Iowa law, partnerships, corporations, professional corporations, and professional LLCs must obtain a real estate firm license from the Iowa Real Estate Commission, and at least one partner, officer, or member must hold an Iowa broker's license. Real estate agents must work under a licensed broker, while brokers can operate independently, hire agents, and oversee the firm's compliance and trust accounts.

Sources: Iowa DIAL — Real Estate Salesperson and Brokers License by Exam; Iowa DIAL — PSI Licensing Information Bulletin (Iowa Real Estate Commission).

A real estate broker in Massachusetts negotiates agreements to sell, exchange, purchase, rent, or lease real property for a fee or commission, accepts and escrows all funds, and supervises transactions conducted by salespersons. Agency refers to the representative relationship between a licensee and a client; Massachusetts recognizes four types: seller's agent, buyer's agent, disclosed dual agent, and facilitator. Agency disclosure must be made in writing at the first personal meeting to discuss a specific property. A salesperson must affiliate with a broker and work under the broker's supervision, and a salesperson cannot operate independently or control escrow funds.

Sources: MA DPL — Real Estate License Fees; Mass.gov — RE License Exam Guide.

In real estate, the terms "brokerage" and "agency" are commonly used interchangeably to describe a firm that facilitates property transactions under the supervision of a licensed broker. A broker has completed additional education and experience requirements beyond those of a salesperson and is licensed to work independently, hire agents, and oversee compliance. Real estate salespersons, often called agents, must work under a licensed broker and cannot operate independently. In Minnesota, a salesperson must be associated with an actively licensed broker, who submits the salesperson's license application through the state's PULSE portal. Brokers may also employ other brokers at different tiers, including associate brokers who work under another broker, managing brokers who oversee operations, and principal or designated brokers who supervise agents for compliance.

Sources: MN Commerce — Licensing Education; MN Commerce — RE License Guide PDF.

In real estate, a brokerage is the business entity through which a licensed broker operates, while an agency refers to the legal relationship in which a broker or agent represents a client in a transaction. A real estate broker is licensed to work independently and may employ agents, whereas agents must work under a licensed broker. In New Mexico, the state does not issue separate firm licenses; individual brokers must include their business information as part of their license application. Associate brokers work under the authority of a qualifying broker, who is responsible for the management and operation of the brokerage.

Sources: NM RLD — RE Commission Licensing (Apply for License); NM RLD — Real Estate Commission FAQs.

In Oregon, the Real Estate Agency (OREA) is the state regulatory body that licenses and oversees real estate professionals, while a real estate brokerage is a registered business where licensed brokers conduct professional real estate activity under the supervision of a managing principal broker. The Agency approves education providers, contracts with PSI to administer licensing exams, and enforces Oregon Revised Statute Chapter 696 and Oregon Administrative Rule Chapter 863. A brokerage, by contrast, is the business entity a broker must join to hold an active license; the managing principal broker associated with that business supervises the brokers working there.

Sources: Oregon REA — Get Broker License; Oregon REA — Approved Pre-License Schools.

A real estate brokerage is a licensed business entity that employs or supervises agents and brokers to conduct real estate transactions, while "agency" refers to the legal relationship in which a licensee represents a client in a transaction. Real estate agents must work under a licensed broker, whereas brokers can work independently, hire agents, and hold additional education and licensing qualifications. In Utah, the Division of Real Estate licenses brokerage entities through company and branch applications, and a principal broker must supervise agents for compliance.

Sources: Utah DRE — Sales Agent Licensing; Utah Commerce — RE Fee Schedule.

In Virginia, a brokerage is the business entity, also called a firm, that the Real Estate Board licenses to represent others in property transactions. Agency is a required topic in Virginia real estate education, included in the 30-hour post-license curriculum as 3 hours of Agency Law and in continuing education as 2 hours of real estate agency for licenses expiring on or after June 30, 2026. Brokers may operate independently and sponsor salespersons, while salespersons must work under a broker.

Sources: VA DPOR — Real Estate Board; VA DPOR — Real Estate Post-License; VA DPOR — Continuing Education.