Can You Explain the Types of Brokers?
THE AGENT | is a broker who consents to represent the interest of another person
THE BROKERAGE | business is an agency; the broker is hired by the principal to become her or his agent.
THE CLIENT | is the principal to whom the agent gives counsel and advice.
THE PRINCIPAL | is the buyer or seller who employs and delegates to the agent the responsibility of representing the principal’s interests. The principal is obligated to compensate the agent unless otherwise agreed as well as cooperate with and not hinder the agent’s ability to fulfill the fiduciary obligations.
AGENCY | refers to the fiduciary relationship between the agent and the principal.
designated agency | real estate agent is designated as the agent for one of the clients when the the real estate agency represents both buyer & seller
DUAL AGENCY | an agency relationship in which a brokerage firm and all the brokers and salespersons for the firm act in fiduciary capacity for both the buyer and the seller in the same real estate transaction with the informed written consent of both parties
EXCLUSIVE AGENCY LISTING | a written listing agreement between a property owner and a real estate broker whereby the owner appoints the broker as his/her agent for a specific period of time and promises to pay a fee or commission to the real estate broker if the owner’s property is sold during the listing period. However, the owner reserves the right to sell the property and not pay a commission to the broker if the buyer has not been introduced to the property by the broker. (seller finds buyer without using any of brokers tools)
EXCLUSIVE RIGHT TO SELL LISTING | a written listing agreement between a property owner and a real estate broker whereby the owner appoints the broker as his/her agent for a specific period of time and promises to pay a fee or commission to the real estate broker if the owner’s property is sold during the listing period whether or not the broker is the cause of the sale
FIDUCIARY | means the relationship of trust and confidence that the agent has with the principal.
OPEN LISTING | a written authorization to a real estate broker/agency by a property owner, stating that a commission will be paid to that broker/agency upon closing if that broker/agency procures the buyer (not a favorable listing agreement for the broker, when a broker advertises and markets a property he/she would like to get paid for their effort, in an open listing many brokers will market the property but the only broker that gets paid is the one who brings in the buyer). In most cases open listings don’t get put on the MLS (multiple listing service) and have less advertising.