What is the difference between a salesperson, broker, and broker of record?
A salesperson is an individual agent licensed to work under a broker's supervision, while a broker of record is the registered entity responsible for trust accounts and compliance. In Ontario, these represent two of three main registration levels, along with brokers.
Ontario's real estate regulation recognizes three distinct registration levels under the Real Estate Services Act. These tiers reflect different levels of responsibility and oversight within a transaction.
A salesperson holds the entry-level registration and must work under a broker's supervision. Salespersons represent clients and conduct negotiations but cannot hold trust accounts or run an independent brokerage. They operate within the compliance framework established by their brokerage.
A broker holds a higher registration level and may operate independently or work within a larger firm. Brokers maintain trust accounts and are responsible for trust account reconciliation and compliance with provincial regulations. They supervise salespersons and broker associates.
The broker of record is the specific broker designated as responsible for a particular real estate transaction or brokerage operation. This person or entity oversees trust account management, handles client funds, and bears legal responsibility for compliance during that transaction. Many Ontario real estate providers operate with a designated broker of record managing multiple transactions and staff.
Understanding these three levels matters because it clarifies who holds authority and accountability in a real estate deal. Buyers and sellers should know whether their agent is a salesperson (working under supervision) or whether a broker of record is directly managing their transaction. This distinction affects oversight, complaint procedures, and fund handling.