In the world of real estate it pays to assist buyers in their dealings with the sellers, this is done by linking the two sides in a professional manner through selective matching and negotiation.
Real estate brokers market property services on behalf of their clients by pursuing and clinching the best deal in the final agreement, while the buyer’s agents work tirelessly to help their clients obtain the lowest purchase price possible.
In many cases individuals are required to obtain an agent license to receive their real estate earnings although buyers and sellers acting as principals in the real estate transactions can operate without a license.
And in some instances lawyers assume such roles f or compensation, despite being unlicensed as brokers or agents. Real estate brokerages often provide training required for one to become a licensed broker, as a way of recruiting new agents.
In the US several states use reciprocal agreements with other states which allow licensed brokers from a qualified state to undertake a second state’s exam without completing the course requirements or take only a state law exam.
Experienced real estate salespeople may opt to become real estate brokers so they can operate their own brokerage, and realtors are real estate professionals who are members of the National Association of Realtors (NAR).
Under normal circumstances a broker enters into conventional full services commission based brokerage relationship through a mutual agreement with a seller buyer representation agreement, automatically assuming an agency relationship with fiduciary obligations.
Agency relationships pertaining to residential real estate transactions entail the legal representation by a real estate broker (on behalf of a real estate company) of a buyer or seller.
In the event of a seller opting to work with a transaction broker, ultimately there is no agency relationship emanating from such an arrangement, while a buyer who has not entered into a buyers agency agreement with the broker, and goes on to purchase a property – the broker in this case assumes the role of sub-agent of the seller’s broker.
Dual agency can be interpreted as the representation of both seller and buyer under mutual agreements, but in many states only transaction brokerage is permitted which presents the buyer and seller with a limited structure of representation without any fiduciary obligations. Whenever state law permits a single agent to represent both buyer and seller in a single transaction, the brokerage/agent is typically referred to as a dual agent.