For a person to be involved in the real estate industry, obtaining a real estate license is a requirement. In most states, a person may only collect a commission for the sale of real estate if they are a licensed salesperson or broker. The requirements for obtaining a real estate salesperson's license will vary from state to state, but at a minimum a person must attend classes, study various aspects of real estate law and pass a certification test. Salespeople work for brokers and are paid on a commission basis as the homes they have sold go through settlement. Of the total commission paid to the agency, the salesperson is paid a percentage for bringing about the sale.

In order to become a broker, a person must have been a salesperson for a number of years, and go through a more advanced certification process. Brokers are business people, managing the agency, hiring sales people, handling the administrative duties and advancing the costs of advertising the properties until the commissions are paid. A broker's real estate license also may require the broker to maintain an escrow account, to hold deposits on behalf of sellers, until formal contracts can be executed. In some states, where real estate procedure is done via escrow, brokers may also serve as escrow agents for the purchase and sale of properties.