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.

Published: June 9, 1999

Use of this article without permission is a violation of federal copyright laws.