Who is defined as an individual or business entity that may act independently as a real estate professional?

The appropriate term for an individual or business entity that may act independently as a real estate professional is a broker. A broker is typically a licensed real estate professional who has acquired a higher level of education and has passed specific examinations allowing them to operate independently or manage their own real estate business.

This distinction is crucial because, while agents often work for brokers and operate under their supervision, they do not have the same level of autonomy and legal standing. In the real estate industry, the broker is responsible for all transactions and can hire agents to represent clients, but the ability to act independently is a defining characteristic of being a broker.

For the other choices, an agent is typically someone who represents buyers or sellers in real estate transactions and must work under a broker’s license. A realtor is a member of the National Association of Realtors, which can include agents and brokers, but being a realtor does not inherently grant independent operational status. An associate is often used to describe an agent working under a broker, highlighting their role rather than denoting independent status.