Real Estate Brokerage Glossary
Broker of Record
The licensed individual or firm named on a real estate transaction or a brokerage entity's license as the party legally responsible for that activity in a given state.
Managing Broker
Statutory term (Colorado, Washington, Illinois) for the licensee who supervises salespersons and associate brokers within a firm.
Designated Broker
Statutory term (Arizona, California, Nevada, Texas, Washington, Wisconsin) for the individual named on a brokerage firm's license as legally accountable for the entity's activity in that state.
Broker in Charge
Statutory term used in North Carolina and South Carolina. Every physical office location of a brokerage must have a broker-in-charge.
Principal Broker
Statutory term used in New York, Oregon, Kentucky, and Tennessee for the designated broker of a firm.
Broker Reciprocity
A bilateral or unilateral agreement between two state real estate commissions to recognize each other's licenses. Almost always still requires a state-portion exam, certification of licensure, and a background check.
Trust Account
A state-regulated bank account a brokerage uses to hold client funds — earnest money, security deposits, or rents — separate from operating funds.
MLS
Multiple Listing Service. A regional cooperative database of real estate listings, comparable sales, and lockbox access shared among member brokerages.
BPO
Broker Price Opinion. A written valuation of a property prepared by a licensed broker, used by lenders, servicers, and investors as a lower-cost alternative to a full appraisal.
REO
Real Estate Owned. Property owned by a lender after an unsuccessful foreclosure auction. Disposition requires a licensed broker in the state where the property sits.