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Transaction Broker Addendum





Guidelines & Helpful Information


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A Transaction Broker Addendum is used to amend an agency agreement with a seller client and with a buyer client. Therefore, if a brokerage firm does not practice both SELLER and BUYER agency, it will have no use for any of the Transaction Broker Addendum forms (see BRRETA II forms).

In-house transactions; no designated agents

A Transaction Broker Addendum is used for in-house transactions where designated agents have not been appointed.

For example:

  • Home Realty has a written agency agreement with SELLER.
  • Home Realty also has a written agency agreement with BUYER.
  • There is no designated agent for either SELLER or BUYER.
  • BUYER wants to see SELLER'S property.

Since Home Realty has an agency agreement with both SELLER and BUYER, Home Realty would be acting as a dual agent in a transaction between SELLER and BUYER unless the agency status is changed.

The purpose of the Transaction Broker Addendum is to amend both of the agency agreements to provide that the broker will function as a transaction broker instead of functioning as seller's agent and buyer's agent.

Which TBA addendum do Seller and Buyer sign in the above example?

This depends on the type of property being sold:

  • TBA-RES for sale of residential property of four or fewer units
  • TBA-AG for agricultural land
  • TBA-COMM for sale or lease of commercial property or sale of residential property of more than four units

In-house transaction; same designated agent

A Transaction Broker Addendum form is also used if a buyer who is represented by a designated agent is interested in property owned by a seller who is represented by the same designated agent. A Transaction Broker Addendum (TBA-DA) is used to obtain the informed consent of the buyer and seller for the designated agent to act as a transaction broker.

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