Brokerage Options For Sellers:

Seller’s Agent or 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 sellers as either Seller’s Agents or Transaction-Brokers in the listing 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 will NOT negotiate on behalf of or act as an advocate of the seller. They simply assist the buyer and seller in the transaction without any loyalty extended to either party. The one legal advantage to sellers is that the seller is not legally responsible for the actions of transaction brokers acting within the scope of the transaction.

Advantages of Using a Seller’s Agent

At Advantage Real Estate, we prefer to work with sellers in the agency capacity of Seller’s Agent. We believe this provides numerous advantages to our clients, while allowing us to utilize and extend our expertise to the client in the greatest possible manner.

It is our observation that most local brokers choose to represent sellers 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 seller’s agent. It is no wonder that most brokers prefer to act as Transaction Brokers.

You must remember that Transaction Brokers are not representing your interests. Their responsibility is only to assist the seller 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 themselves 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 sellers prefer to engage our brokers as Transaction Brokers, as there is no vicarious liability associated with this option. Other sellers prefer the advantages of hiring our brokers as seller’s agents that provides them with an advocate who owes duties to the seller which include utmost good faith, loyalty, and fidelity. This is all part of our effort to offer our clients better choices.

Situations where we represent both the buyer and the seller

Sometimes, the situation arises where one of our company brokers shows a buyer a home which is listed by a broker with Advantage Real Estate. In this situation, it is impossible to represent the interests of both the buyer and the seller at the same time. Therefore, our company policy calls for our broker(s) to switch the brokerage agency relationships to act as transaction brokers for both the buyer and the seller. This assures that the buyer and seller are treated fairly and equally. Brokers are required to provide complete disclosure, due diligence, and the care and accountability that they would always provide. Neither agent may disclose personal information (like how much a buyer would be willing to pay or how low a seller would be willing to sell) to the other.

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