Updated on September 20, 2022 Show
Photo: Eric Audras / Getty Images A real estate broker works to negotiate and arrange real estate transactions. This licensed individual has daily duties that include writing contracts and overseeing transactions for sales and purchasing activities on homes, land and commercial properties. A broker has attained a higher-level license than a real estate agent and can hire real estate agents to work as a team under their supervision. Licensing LevelsIn some states, every real estate professional is licensed as a broker, such as in Colorado and New Mexico. However, even if you are licensed as an independent broker, you must attain another higher-level license if you want to hire agents or other brokers to work under you. There can be considerable risk involved if agents are not properly trained and supervised, particularly with regard to fair housing and environmental regulations. Brokers who allow agents to make major mistakes can end up sharing in the penalties, both financial and legal. Agents often set up their websites. A supervising broker assumes the responsibility of reviewing their agents’ websites periodically to make sure no regulation violations exist. Real Estate Brokers Working for SellersWhile an agent working on a broker's behalf will often take on the following duties, the broker handles transactions for sellers as well. In some states, all licensed individuals are brokers, though only some are licensed to supervise agents. Some of a broker's duties on behalf of sellers include:
Working with BuyersOn the other side of the transaction, brokers work with people wanting to buy a property by providing advice and services to help them to find a property that fits their needs and completing the steps of the transaction, such as:
Brokers and Supervising AgentsWhen a broker is licensed to have agents working under them, sometimes called a supervising or managing broker, their agents handle most or all of the brokerage transactions. As part of the supervisory responsibilities for agents, the broker:
Real estate brokers licensed at the highest state levels set standards of practice in the area and are tasked with maintaining high levels of customer/client service and compliance with all state-based real estate laws. Considerable risk exists in the operation of a brokerage. To minimize this risk, brokers assume the responsibility of educating and constantly monitoring their agents. Many agents are happy to work in that manner, but ambitious agents may choose to take advantage of the higher-level opportunities that come with working as a real estate broker. The Kansas Brokerage Relationships in Real Estate Transactions Act (referred to as BRRETA II) became effective on October 1, 1997. The following summary describes a seller's agent, a buyer's agent, and a transaction broker. SELLER'S AGENT The seller's agent is responsible for performing the following duties:
The seller's agent has no duty to:
BUYER'S AGENT The buyer's agent is responsible for performing the following duties:
The buyer's agent has no duty to:
TRANSACTION BROKER The transaction broker is responsible for performing the following duties:
The transaction broker protects the confidences of both parties. If the transaction is the sale of one to four residential units or the sale of agricultural real estate, the following information shall not be disclosed by a transaction broker without the consent of all parties:
If the transaction is the sale or lease of commercial property or residential property of more than four units, the transaction broker shall not disclose any information or personal confidences about a party to the transaction which might place the other party at an advantage unless failure to disclose such information would constitute fraudulent misrepresentation. The transaction broker may disclose the following information unless prohibited by the parties:
The transaction broker has no duty to:
STATEMENT OF REPRESENTATION Do not assume that an agent is acting on your behalf, unless you have signed a contract with the agent's firm to represent you. If you have not entered into a written agency agreement, you are considered to be a customer rather than a client. As a customer, you represent yourself. Any information that you, the customer, disclose to the agent representing another party will be disclosed to that other party. Even though licensees may be representing other parties, they are obligated to treat you honestly, give you accurate information, and disclose all known adverse material facts. BRRETAWhat does Brreta outline as a buyer broker's responsibility?What does BRRETA outline as a buyer broker's responsibility? The buyer's broker has a responsibility to disclose material adverse facts related to the buyer's financial situation. Disclose adverse facts related to the buyer's financial ability to meet the contract terms.
Which of the following items must be disclosed by a transaction broker?A transaction broker must disclose any adverse material facts which are actually know about the property.
When a licensee represents a seller which one of the following statements?When a licensee represents a seller, which one of the following statements is true about the licensee's ability to list other properties that are for sale? The licensee is permitted to list other properties for sale, even if they're competing properties.
In which of these transactions must a Michigan real estate licensee provide an agency disclosure?Agency disclosure is required for transactions involving the sale or lease of property with one to four residential dwelling units, or a building site intended for residential units (either on a lot or as part of a condo unit).
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