Information About Brokerage Services

Types of real estate license holders:
A broker is responsible for all brokerage activities, including acts performed by sales agents sponsored by the broker. A sales agent must be sponsored by a broker and works with clients on behalf of the broker.

A broker’s minimum duties required by law (a client is the person or party that the broker represents): put the interests of the client above all others, including the broker’s own interests; inform the client of any material information about the property or transaction received by the broker; answer the client’s questions and present any offer to or counter-offer from the client; and treat all parties to a real estate transaction honestly and fairly.

A license holder can represent a party in a real estate transaction:
As agent for owner (seller/landlord): the broker becomes the property owner’s agent through an agreement with the owner, usually in a written listing to sell or property management agreement. An owner’s agent must perform the broker’s minimum duties above and must inform the owner of any material information about the property or transaction known by the agent, including information disclosed to the agent by the buyer or buyer’s agent.

As agent for buyer/tenant: the broker becomes the buyer/tenant’s agent by agreeing to represent the buyer, usually through a written representation agreement. A buyer’s agent must perform the broker’s minimum duties above and must inform the buyer of any material information about the property or transaction known by the agent, including information disclosed to the agent by the seller or seller’s agent.

As agent for both — intermediary: to act as an intermediary between the parties the broker must first obtain the written agreement of each party to the transaction. The written agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker’s obligations as an intermediary. A broker who acts as an intermediary must treat all parties to the transaction impartially and fairly.

Written agreements are required in certain situations: to avoid disputes, all agreements between you and a broker should be in writing and clearly establish the broker’s duties and responsibilities to you, and the amount or rate of compensation the broker will receive and how this amount is determined.