The Difference Between a Broker and Managing Broker in Indiana

So, you’re ready to become a real estate agent in Indiana.  But wait, as you’re researching your next career move, you keep seeing the terms broker and managing broker.  What are those and how do they fit into the real estate industry?  Today we will explore those roles and what they mean as you investigate this career path.
 

When we think about real estate and the professionals who aid others in the process of buying and selling property, the most common term we hear is “real estate agent” or “Realtor.”  Did you know that the term for this professional can vary by state?  Some other common terms are salesperson and broker, both referring to the same position and responsibilities a real estate agent has.

If you were to look up the term “broker” on Google, you would find something such as this, “A broker is someone who has passed a broker’s license exam and received education beyond what the state requires of real estate agents.”  The individual that is described in this definition, would be referred to as a “managing broker” in Indiana.  The managing broker can perform all the same functions as a real estate agent, broker, or salesperson.

The difference for the managing broker is the added responsibilities.  Basically, at the end of the day, the managing broker is the person legally responsible for the activities of all agents within a real estate brokerage.  The managing broker is responsible for stepping in and correcting any situations that may need assistance regardless of who created the problem.  



A broker in Indiana is different from a managing broker.  A broker is synonymous with a salesperson or real estate agent.  You can replace the term real estate agent with real estate broker because there is no difference. According to Indeed.com, if you are a broker in Indiana, you will have duties such as: 

• Maintain a good relationship with lenders, appraisers, home inspectors, and escrow companies.
• Help prepare necessary paperwork such as closing statements, contracts, purchase agreements, and leases.
• Compile lists of real estate properties with details regarding their location, square footage, and features.
• Promote the sale of properties through open houses, engagement in multiple listing services, and advertisements.
• Establish a network of mortgage lenders, contractors, and attorneys to whom you can refer clients.
• Inspect condition of premises and organize for necessary maintenance or inform property owners of maintenance needs.
• Evaluate clients’ financial abilities and research properties within their buying power.

These terms can become confusing, just remember in Indiana, broker = real estate agent and managing broker = broker in charge. As you explore your options for becoming a broker or managing broker, remember to keep us in mind!  Check out our Indiana Broker page to learn if our course is right for you.