A real estate broker and a real estate listing agent are both professionals who work in the real estate industry, but there are some differences in their roles and responsibilities.
A real estate broker is licensed to run their own brokerage firm and can hire and manage real estate agents to work for them. They are responsible for overseeing the real estate transactions and ensuring that all legal requirements are met. Brokers often have more experience and training than listing agents and may have additional certifications or designations.
On the other hand, a real estate listing agent is a licensed agent who works for a broker or brokerage firm. Their primary responsibility is to help sellers list and market their properties for sale. Listing agents typically work with sellers to determine the best listing price, prepare the property for sale, and market the property to potential buyers.
In summary, a real estate broker has a higher level of responsibility and authority in the real estate industry, while a real estate listing agent focuses on helping sellers list and sell their properties. (everything up to here is general state of affairs in the US and Europe but DOES NOT APPLY TO ESTONIA please read further)
The regulation of real estate market in Estonia is primarily done by the Law of Property Act, which sets out the legal framework for the transfer of property rights in Estonia. The Law of Property Act does not mention in a single instance either broker or real estate agent (link to the official government of Estonian legislation https://www.riigiteataja.ee/en/eli/ee/Riigikogu/act/511012023003/consolide) The whole management of the real estate brokerage services is done only through § 620 of Law of Obligations Act includes provisions related to real estate brokerage, such as the requirement that brokers provide accurate and complete information to their clients and the obligation to maintain client confidentiality. This is only valid if you are under contractual obligation with the broker or real estate brokerage company here is the full text of that paragraph (26.02.2023 at 8:03 Estonian Time)
§ 620. Diligence of mandatary upon performance of mandate
(1) Upon the performance of a mandate, the mandatary shall act in a loyal manner with respect to the mandator and exercise the necessary level of diligence commensurate with the nature of the mandate.
(2) A mandatary shall perform the mandate to the maximum benefit of the mandator in the light of and according to the mandatary’s knowledge and abilities and shall prevent any damage to the property of the mandator. In addition, a mandatary who is acting for the purposes of the mandatary’s economic or professional activities shall apply the generally recognised skills of the mandatary’s profession.
In addition to the Law of Property Act, there are other relevant laws and regulations that apply to real estate brokers in Estonia, including the Consumer Protection Act and the Code of Good Conduct of Real Estate Brokers (https://maakleritekoda.ee/code-of-good-conduct), which is adopted by the Estonian Chamber of Real Estate Brokers.
According to the Estonian law, there are no mandatory licensing requirements for real estate brokers in Estonia.
While there are professional associations, such as the Estonian Chamber of Real Estate Brokers, that offer voluntary certification and professional development programs for real estate brokers, the law does not require brokers to obtain any specific licenses or certifications.
According to the Estonian Chamber of Real Estate Brokers, a person must meet the following requirements to become a licensed real estate broker in Estonia:
- Have a higher education degree or a professional qualification in a relevant field.
- Have at least 3 years of work experience in the field of real estate brokerage.
- Pass an examination on the legal and ethical principles of real estate brokerage and the requirements of the Real Estate Brokerage Act.
- Have professional indemnity insurance to cover any damages caused to clients.
In addition to these requirements, the Estonian Chamber of Real Estate Brokers also requires brokers to adhere to a code of ethics and professional conduct https://maakleritekoda.ee/code-of-good-conduct , which includes maintaining the confidentiality of client information, providing accurate information about properties, and avoiding conflicts of interest.
