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What’s a broker’s role in a real estate transaction?

On Behalf of | Jun 7, 2018 | Firm News, real estate transactions | 0 comments

If you’re selling your home, then you’ve likely heard the words “realtor” and “broker” thrown around. While you may readily think of the person who you contact to either buy or sell a home as a realtor, you may not know what the role of the broker is.

A real estate broker can do many of the same things that a realtor can. They are licensed to list homes, draft purchase contracts for both commercial and residential properties and land to negotiate deals.

In some jurisdictions, realtors may even be brokers themselves. In states where that’s not the case, brokers are licensed to hire realtors to work under their supervision. One of their many responsibilities is to ensure that all state and federal environmental and fair housing regulations are followed by agents working under them.

As managing broker, they’re also required to ensure that the realtors that they hire maintain active licenses to carry out their duties. They’re responsible for providing necessary training and continuing education opportunities for their agents as well. They’re also responsible for overseeing the actions of their agents to ensure that they maintain legally compliant behavior and meet performance standards.

Brokers are responsible for maintaining a brokerage website that agents can market themselves on. They’re responsible for providing them with other marketing resources as well.

Perhaps more importantly, though, is that brokers are required to oversee the entire transactional process of their agents.

Brokers are required to ensure that homes that their agents agree to sell are properly listed with both local and Multiple Listing Services (MLS). They’re required to share the listing with other brokers that they know in an effort to generate interest in the property. They also ensure that commissions gets paid to these brokers.

They are also charged with making sure that the seller of a home knows what to expect of the showing process and how to best prepare their homes for them.

An important role of brokers is to make sure that the realtor submits all offers to sellers. They supervise all purchase negotiations. They’re required to ensure that all necessary documents are prepared and ready for a closing. It’s their responsibility to ensure sellers move from their home once the sale is completed.

If you’re considering selling your home or commercial property, then a Trenton attorney can guide you through the process.

Source: The Balance Small Business, “Duties and responsibilities of real estate broker,” James Kimmons, accessed June 07, 2018