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Brokerage Options For Buyers: Transaction Broker
The Colorado Real Estate Commission allows for a variety of brokerage
agency relationships to be entered into between brokers and their clients.
Click Definition
of Real Estate Broker Relationships for definitions of these
agency options. The company
policy of Advantage Real Estate permits our brokers to represent buyers
as either Buyer’s Agents or Transaction-Brokers
in the purchase of real property. There
are advantages and disadvantages of each type of agency, and we prefer
to offer our clients as many options as possible to suit their desires
and needs.
What is a Transaction Broker?
- A transaction broker is not your agent, but they assist the buyer throughout a real estate transaction.
- A transaction broker can assist the buyer in pricing the property, can help the buyer and seller negotiate a contract, and will assist the buyer and seller in fulfilling the obligations of the contract towards a successful closing.
- They must treat you honestly and fairly and use reasonable skill and care in the performance of any oral or written agreement, but they do not owe you the utmost good faith, loyalty, and fidelity.
- They must disclose any material facts about the property known to the broker as well as offer the property without regard to race, creed, sex, religion, national origin, handicap, or familial status.
A transaction broker will NOT negotiate on behalf of or act as an advocate of the buyer. They simply assist the buyer and seller in the transaction without any loyalty extended to either party. The one legal advantage to buyers is that the buyer is not legally responsible for the actions of transaction brokers acting within the scope of the transaction.
It is our observation that most local brokers choose to represent buyers as Transaction Brokers. There is less responsibility and liability associated with being a transaction broker compared to being an agent of the seller. It generally takes more time and work to properly represent a client as a buyer’s agent. It’s no wonder that most brokers prefer to act as Transaction Brokers.
Please remember that Transaction
Brokers are not representing your interests.
Their responsibility is only to assist the buyer throughout a real
estate transaction with communication, advice, negotiation, writing the
contract, and closing of a transaction.
This is performed without being an agent or advocate for any of
the parties. As a result, the
Transaction Broker is essentially working for themself to earn a commission. They are a neutral party and have no responsibility
to protect your interests, aside from a number of statutory obligations
and responsibilities, including using reasonable skill and care in the
performance of any oral or written agreement.
At Advantage Real Estate, we let
our clients decide what type of agency relationship they would like to
enter into with our brokers. Some
buyers prefer to engage our brokers as Transaction Brokers, as there is
no vicarious liability associated with this option.
Others sellers prefer the advantages of hiring our brokers as buyer’s
agents that provides them with an advocate who owes duties to the buyer
which include utmost good faith, loyalty, and fidelity.
This is all part of our effort to offer our clients better choices.
Are You Buying a Property and desire the Unique Benefits of an Appraiser/Broker?
Use Our Response Form, or call Advantage Real Estate at 970 / 926-1155.
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