"Favorites List" is a general section that automatically collects all the listings and publications that you have added to your favorites.
"Folders" are personalized collections that allow you to group several properties and share them with other users via the "Share" function. For example, agents can use folders to create a list of properties for a specific client. The folder name will be visible to other users if you decide to share this collection.
Please note: Collections from your account are attached with a referral link. Thus, if a user leaves a request by going to the site from your collection, you automatically become a referral.
💡May help: How to create a new folder?