What is a transaction broker?
A real estate transaction broker is an individual who provides third-party assistance to buyers and sellers, according to PropertyClub. This broker does not offer legal representation during the transaction and cannot negotiate prices for any of the parties.
The legal representation is assumed by a real estate attorney and real estate agents. Each transaction has a seller’s agent and a buyer’s agent. There are times where an agent can represent bother a seller and buyer of the property. In this case, the agent plays a dual agency‘s role.
Transaction brokers offer advice and facilitate real estate transactions. In addition, they can work with both sellers and buyers of properties at the same time.
Transaction brokers functions
As noted by Saad Legal, the following are some of the functions of a real estate transaction broker.
- Submitting offers and counteroffers on time
- Disclose information that can affect the sale of the property
- Following confidentiality rules, being fair, and honesty as noted by the contract, etc
- Provide assistant based on the contract
What is the difference between a real estate agent and a transaction broker?
Although there are similarities between a transaction broker and a real estate agent, the nature of the work they do is somehow different. As noted by the Down Town Real Estate Partners and TRELORA, the following are some of the many differences between a real estate agent and a transaction broker.
| Real estate agent | Transaction broker |
| Works in the interest of buyer or seller | He/she can only give advice and suggestions |
| Can represent only one party: Dual agent can sometimes represent both parties | Can represent a buyer and seller at the same time |
| He/she can negotiate prices and advocate for the party they are representing | He/she cannot negotiate prices |
| Is a legal representative of the buyer or seller | Is not a legal representative of any involved parties |
| Lean on the side they are representing | Act as a neutral liaison in the transaction |
| Has the responsibility to protect the buyer’s or seller’s interest | Does not have the responsibility in your interests |
