Real Estate Is Confusing

Wednesday, June 25th, 2025 – By Mike DelRose Jr.

Buying or selling a home in Massachusetts is already complex, but real estate agency relationships can make it even more confusing. Terms like broker, agent, salesperson, and Realtor are often used interchangeably, but they mean different things, and each comes with its own responsibilities and legal obligations.

This guide will help you understand the key differences between these titles, how brokerages operate, and what it all means for you as a homebuyer or seller. While we won’t dive into every detail of Massachusetts licensing law, we’ll reference the essentials so you know who you’re working with—and what to expect.

Real Estate Broker, Salesperson, Agent, Realtor

Let’s break down the main roles in a real estate transaction, starting at the top.

The Broker

A real estate broker is a licensed professional who has:

• Worked as a licensed salesperson for at least three years

• Completed additional coursework

• Passed a broker’s exam

• Obtained a surety bond

In Massachusetts, a broker can operate independently or run a brokerage, managing a team of licensed salespersons (also called agents). Every real estate office has a broker of record, and all agents in that office work under their supervision.

Some brokers actively work with clients, while others focus on running the business and supporting agents. In large firms, the broker may act as the operations lead. In smaller or solo practices, the broker may also be the only active agent.

✅ Note: A broker working under another broker is technically acting as a salesperson.

The Agent or Salesperson

Agent and salesperson are interchangeable terms in Massachusetts. These professionals are licensed to represent buyers and sellers—but must work under a broker’s license.

An agent can:

• Help clients buy and sell homes

• Host open houses

• Write offers and negotiate on your behalf

• Be a team leader within a larger brokerage

What they cannot do is operate independently or sponsor other agents without first becoming a licensed broker themselves.

All activities an agent performs are ultimately the legal responsibility of their supervising broker.

 

So What’s A Realtor®?

A Realtor is a real estate professional—broker or agent—who is a member of the National Association of Realtors (NAR). This title indicates that they follow NAR’s Code of Ethics, but it’s not a separate license.

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How This Affects You

When you hire a real estate professional, you’re technically hiring both the agent and their broker. The brokerage is the legal entity responsible for your transaction, and the agent is your day-to-day contact.

Understanding who’s who helps you know where the responsibilities lie—and ensures you’re working with a qualified expert.

The National Association of REALTORS® (NAR) is the largest trade association for real estate professionals in the U.S. It oversees state-level organizations like the Massachusetts Association of REALTORS® and regional chapters such as the Greater Boston Association of REALTORS® (GBAR), which is the one our team belongs to.

GBAR includes both staff and agent volunteers who serve on committees. These groups focus on improving contract language, setting professional standards, offering continuing education, and upholding the Realtor Code of Ethics. I personally serve on the Grievance Committee, where we review potential ethical violations and forward them for further review if needed.

❗ Important: Only members of NAR are bound by the Code of Ethics. Agents who aren’t members must still comply with Massachusetts licensing laws, but the ethics code isn’t enforceable for them.

Some agents place a high value on NAR membership; others don’t. While NAR has had its controversies since its founding in 1908, I believe strongly in the importance of ethics and education. If I’m going to belong, I feel a duty to contribute to improving the industry from within.

How A Brokerage Functions

Day-To-Day Operations

Even with today’s digital tools, brick-and-mortar real estate offices remain essential in many brokerages. Behind the scenes, agents and staff juggle a range of responsibilities to keep things running smoothly.

Here’s a look at the day-to-day operations of a typical real estate office:

• Agents: Search listings, write offers, coordinate showings, and create marketing materials like flyers and email campaigns.

• Admin staff: Manage escrow accounts, process commissions, schedule inspections, and help with agent training.

• Buyers and sellers: Rarely walk in off the street anymore, but if you did, an agent would still provide the Massachusetts Mandatory Relationship Disclosure before offering representation.

You’re not officially represented until you sign a buyer agency agreement or listing agreement.

Agency Relationships Explained

When working with a real estate agent in Massachusetts, your relationship to them (and their brokerage) matters. Let’s explore the different types of agency relationships.

Designated Agency

Designated agency means that your agent represents only you—not every client of the brokerage. This is the most common model in Massachusetts.

In this setup:

• You sign an agreement with one specific agent.

• That agent owes fiduciary duties only to you.

• Other agents in the same office may represent different clients in the same transaction.

This may seem counterintuitive since most clients choose their agent based on referrals or past experiences. However, Massachusetts law makes it clear that representation must be formalized.

For example, on our team (DelRose McShane):

• Team members sometimes co-list properties or co-represent buyers.

• If two of us are involved on opposite sides of the same transaction, each agent represents only their own client.

• Even family doesn’t get a pass—I’ve gone head-to-head in negotiations with my own father, Mike DelRose Sr.

📄 Every client receives a Mandatory Relationship Disclosure Form to make representation status clear. This form is also shared with the listing agent when presenting an offer.

Dual Agency

Dual agency is when one agent represents both the buyer and the seller in a transaction. This type of agency is legal in Massachusetts—but must be disclosed and consented to in writing by both parties.

Personally? I’m not a fan.

Why? Because in dual agency:

• The agent can’t advocate for one party over the other.

• There’s no negotiation strategy or fiduciary loyalty—just neutrality.

• It blurs the lines of trust and limits the services clients expect.

If one of my buyer clients wants to make an offer on one of my listings, and consent for dual agency isn’t given, we designate a different agent on the team to handle the buyer. That way, both parties receive full representation without conflict.

🧠 Pro Tip: One agent working with both sides doesn’t always equal dual agency. If a buyer is unrepresented and makes an offer on my listing, I disclose that I represent the seller—not both parties.

Designated Agency ≠ Dual Agency.

Facilitator

A facilitator is a licensed professional who helps both parties complete a transaction, but does not represent either.

In this role:

• The facilitator offers no advice on pricing, negotiation, or strategy.

• They simply help complete paperwork and move the deal forward.

• It’s a neutral role without fiduciary duty to anyone.

While legal in Massachusetts, this is a rare setup and not one I often practice. Most buyers and sellers want, and deserve, strong advocacy during what’s often the largest financial transaction of their lives.

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Final Thoughts

Understanding who represents you, and how, is essential in today’s real estate market. Whether you’re buying or selling a home in Massachusetts, knowing the difference between agents, brokers, and the types of agency relationships helps you protect your interests and make confident decisions.

Always ask your agent to explain their role, and don’t hesitate to ask questions before signing any agreement. Clear, ethical representation isn’t just good practice, it’s your right as a consumer.