| Editor's note: This is the second part of "Who Was That Transaction Broker Anyway?," an editorial that explains transaction brokerage from the standpoint of the selling agent, the dual agent and split agency and what duties are allowable under the concept of transaction brokerage. |
Ok, so there are these Transaction Brokers out there. What can they do?
Duties
- Take listings: requires a real estate license, not an agency
relationship in many states. I currently am the seller under the terms of a TB listing for 19
properties. The listing broker is not my agent but he is my broker. Duties, similar to but not fiduciary
duties, govern the relationship.
- Assist buyers with showing properties: requires a real estate
license, not an agency relationship in many states. Show buyers who do not desire to enter into an
agency relationship at this time, properties that are for sale.
- Write contracts: requires a real estate license, not an agency
relationship in many states. All licensees only put in the contract what the buyer or seller
designate. No one is actually drafting contracts for the public without setting forth the client's position.
- Negotiate: many states allow this for their licensees and a TB is a
licensee. Just like a dual agent, that is neutral.
- Take documents to closing.
- Assist with the lender.
- Draft counter proposals: Remember, even agents write only what the
public wants written. They don't make things up.
- Never suggest price: Just like agents, TB's never suggest price.
That is not an agency function nor a licensee function nor a TB function. Price is for buyers and
sellers to determine.
- Provide comparables: TB's provide comparable listed and sold properties
as those given by agents.
- Show and sell their own listings: Can a TB show and sell their own
listing? Sure. That is what the seller thought you were doing when they listed with you.
Misconceptions.
- TB's are not licensed;
- TB's can't write contracts;
- TB's can't show and sell their own listings; and
- TB is illegal. TB is not illegal - that is why people have licenses. In
many states people are not licensed as "agents" since an "agency" relationship is created between the
seller and the broker under such terms as they determine. States license people as licensees.
So, who is that Transaction Broker anyway? Probably the person next door at
the office. It is the neutral person in any transaction, acting like a broker and not an
"agent" in the true sense of the word. Is it for everyone? No. Is it an alternative? Yes.
Remember, as my good friend John Wendt says, "Practice safe agency" Decide
what you are and stick to it. Avoid confusion. Sell real estate. It is the buyer and
seller's deal anyway; we are just the people that sell the property.
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