While the terms real estate agent and realtor are frequently used interchangeably, they are not synonymous. A “real estate agent” is a broad term that refers to anyone who is licensed to assist in the sale or lease of real estate. The term “realtor,” on the other hand, is a trademarked term that should only be applied to real estate agents who are members of the National Association of Realtors. In fact, it was a member of an earlier version of this organization who coined the term “realtor.”
Before 1916, those who assisted in the sale of real estate were known as real estate men. This indicated that they were in the real estate or realty business, which involved actual land and houses. The National Association of Real Estate Exchanges was an organization of real estate men founded in Chicago in 1908 with the goal of increasing the influence of their trade. The association’s other goals included standardizing and regulating real estate practices. Members were required to follow a code of ethics known as the Golden Rule in order to achieve this goal. The name of the organization was changed to the National Association of Real Estate Boards in 1916. In the same year, Minneapolis member Charles N. Chadbourn proposed that those who belonged be distinguished from those who didn’t a title. Realtor was his suggestion, and it was accepted. His proposal to patent the word was also rejected, though it did so decades later, in 1949.
The Realtors Association of America, which changed its name to the National Association of Realtors in 1978, capitalizes the word and adds a registered trademark sign after it. However, “realtor” does not appear with any special marks and is not normally capitalized elsewhere. It does, however, have a distinct meaning. Despite their widespread use, the US Patent and Trademark Office ruled in 2004 that the terms “realtor” and “realtors” remained the property of the National Association of Realtors and could only be legally applied to its members.
To become a realtor, a person must first complete the courses and pass the test that will grant him a real estate license. A little more than half of all real estate agents in the United States apply for membership in the National Association of Realtors through their local board. Annual dues must be paid and additional classes must be taken at least every four years to maintain membership. The members are still governed the code of ethics.