Condosource - Buyers - Different Types of Brokers

home > buyers > finding a broker > types of brokers

Different Types of Brokers

The real estate industry has different types of brokers. Following are descriptions of the 3 types of real estate brokers and their different roles.

Seller’s Broker: The selling broker represents the interest of the seller. They are bound by law to represent the interests of the seller (even if their client is buying the property) because the broker has signed a written agreement (attached PDF) with the seller and the seller is paying the commission.

Buyer’s Broker: When a broker exclusively represents a buyer, the buyer signs a buyer’s agreement (see attached PDF). By this agreement, the broker is bound to represent your interests and be your eyes, ears and legs in the marketplace.

Dual Agent: A dual agent represents both the buyer and the seller in the transaction. One of the benefits of dual agency is the agent is familiar with both parties and has intimate knowledge of where each side stands. Make sure you have complete confidence in and trust your broker before giving them permission to act as a dual agent.

	Buyer's Agent	Seller's Agent	Dual Agent
Who an agent represents in a transaction	Buyer	Seller	Buyer and Seller
Who pays agent's commission or fee	Buyer	Seller	Buyer and Seller
Agent's typical responsibilities	Select and show suitable properties; present offer; negotiate terms on behalf of buyer; assist with escrow requirements	Market home under terms of listing contract; negotiate terms on behalf of seller; assist with escrow requirements	Market home for seller; qualify and show home to potential buyers; negotiate terms on behalf of buyer and seller; assist with escrow requirements
Suggestions	Have your contract with a buyer's agent specify an expiration date and fee.	Keep you listing contracts to 60- 90 days. Talk to prospective agents beforehand about alternative sales strategies as the listing period progresses.	Understand that dual agency arrangements must be disclosed and agreed to by both parties. In California, dual agents are legally obligated to both buyer and seller.