What is the difference between a Broker and a Principal Broker?

Here in Oregon, there are two types of agents that are allowed to sell real estate and represent purchasers in sales. Since the two sound so similar, I thought I would write a short article differentiating the two:

A Real Estate Broker is simply a salesperson, and they are often simply referred to as Brokers or Realtors. He or she has gone through the necessary training and passed a license test through the Oregon Real Estate Agency, passed a background check, and has their license “hung” with an office. All Brokers are required to have a Principal Broker as a supervisor.

A Principal Real Estate Broker or Principal Broker is someone who has additional training, and who is likely the manager of an office. A Principal Broker may or may not sell houses – some focus entirely on overseeing Brokers. A Principal Broker must have at least three years prior sales experience or a degree in real estate. A Principal Broker is sort of like the “boss” except that they do not regulate such things as office hours or dress code – rather, they over see conduct and verify that transaction details have been met.

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