Decoding Real Estate: Licenses vs. REALTOR® Membership – What Everyone Should Know
Have you ever heard someone mention a "REALTOR® license"? If so, you’re not alone! It’s a common misconception, and it’s time to set the record straight. Spoiler alert: there’s no such thing as a specific REALTOR® license. Even more surprising, only about 52% of licensed real estate agents and brokers in Florida are members of the National Association of REALTORS® (NAR).
This blog post will break down some key differences between a real estate license and REALTOR® membership, clearing up confusion and offering valuable insights for consumers and both new and experienced agents.
The Foundation: Your Real Estate License
Let’s start with the basics: your real estate license. This is the foundation of your real estate career. Each state has its own requirements and process for obtaining a license, which grants you the legal right to practice real estate in that state. Think of it as your permission slip to help people buy, sell, and rent properties.
In Florida, for example, the rules governing real estate licenses are outlined in the Florida Statutes and enforced by the Florida Real Estate Commission (FREC). These statutes hold licensees accountable to operate within the bounds of state law.
What Is a REALTOR®?
So, what exactly is a REALTOR®? A REALTOR® is a real estate professional who has voluntarily joined the National Association of REALTORS® (NAR). This membership is optional and available to licensed brokers and sales associates.
When a licensee becomes a REALTOR®, they agree to follow not only their state’s real estate laws but also the national rules imposed by NAR. In some cases, national brokerage brands may also impose additional requirements on their agents.
For Florida real estate professionals, choosing a non-NAR, Florida-only brokerage can offer more flexibility and benefits, especially given Florida’s unique real estate laws.
Clearing Up the Misconceptions: How It Works
Here’s a simplified breakdown of the typical career path in real estate:
- Get Licensed:
You earn your real estate license by meeting your state’s requirements. - Work Under a Broker:
Most new agents work under a licensed broker as a sales associate. After gaining experience, you can pursue a broker’s license if you wish to run your own brokerage. However, many agents find that obtaining a broker’s license isn’t necessary for a successful career and therefore choose to work as a real estate sales associate. - REALTOR® Affiliation (Optional):
If your broker is a REALTOR®, you’ll be required to join NAR.
If your broker is not a REALTOR®, you’re not obligated to become a member of NAR.
My "Aha!" Moment: Discovering the Alternative Path
As a top-producing real estate professional and NAR member from 2015 to 2024, I once believed that REALTOR® membership was the only way to succeed. But in 2024, I discovered an alternative.
My research led me to the landmark Thompson v. Metropolitan Multi-List, Inc. lawsuit in 1991. This case made it possible for Florida real estate professionals to access the MLS without being NAR members. Some brokerages even refer to themselves as "Thompson Brokerages" in honor of this legal victory.
The Current Landscape: By the Numbers
Curious about how many Florida real estate professionals are REALTORS®? I went straight to the source—the Department of Business and Professional Regulation—and here’s what I found (as of March 12, 2025):
- Active Real Estate Licensees: 320,661
- Inactive Real Estate Licensees: 100,970
Of the active licensees, approximately 219,000 are members of NAR. That means around 52% of Florida real estate license holders are REALTORS®, while 48% are not. Of the non-NAR members, about 100,000 are actively working in the field.
Interestingly, many low-producing NAR members allow their licenses to go inactive to avoid paying the high fees associated with REALTOR® membership. This trend has been consistent over the years.
Exploring Options: Thinking Outside the REALTOR® Box
The real estate industry is evolving, and agents now have more options than ever before. For example, Slice of Florida Realty offers agents in the Stellar MLS area the opportunity to join a non-NAR brokerage. They also provide great options for license holders who prefer to work as referral agents, earning income by connecting buyers and sellers with other agents.
The Bottom Line
Understanding the difference between a real estate license and REALTOR® membership is crucial for making informed decisions about your career. While REALTOR® membership offers some resources and networking opportunities, it’s not the only path to success. In fact, it can sometimes limit the freedom a broker might otherwise have to provide desired services to the client.
If you’ve made it this far, it’s time to take the next step! Call (941) 894-9800 to find out if Slice of Florida Realty is the right fit for you. Your real estate journey is yours to shape—make it one you’re proud of!
Steve Martin Smith, Broker
Slice of Florida Realty
