A broker is considered to be a transaction broker unless:
- an agency relationship between the broker and the party to be represented
is established; or
- a broker works with a buyer or tenant as a subagent of the seller
or landlord by accepting an offer of subagency.
An Example
A licensee who shows property to an unrepresented buyer is a transaction
broker until one of the following occurs:
- The licensee shows a company listing--where the company has an agency
agreement with the seller AND there is no designated agent for the
seller. The licensee is then acting as a seller's agent. {If the seller
has a designated agent, only the designated agent represents the seller;
other affiliated licensees would be acting as a transaction broker.}
- Subagency is accepted on another company's listing. The licensee
is then acting as a seller's agent.
- An agency agreement is signed with the buyer. The licensee is then
acting as an agent for the buyer.
IF YOU SHOW A PROPERTY TO AN UNREPRESENTED
BUYER
AND YOUR COMPANY HAS AN AGENCY AGREEMENT
WITH THE OWNER OF THE PROPERTY
AND THERE IS NO DESIGNATED AGENT FOR
THE SELLER
YOU ARE ACTING AS A SELLER'S AGENT.
YOU ARE NOT ACTING AS A TRANSACTION
BROKER.
