Definitions Of A Real Estate Brokerage Relationships

Buyer's Agent:
A Buyer's Agent is engaged as a limited agent and works SOLELY on behalf of the buyer.

- Owes duties to the buyer which include the utmost good faith, loyalty and fidelity;
- Will negotiate on behalf of and act as an advocate for the buyer;
- Must disclose to potential sellers all adverse material facts concerning the buyer's financial ability to perform the terms of the transaction and whether the buyer intends to occupy the property.

-Buyer shall not be vicariously liable for the acts of Broker that are not approved, directed or ratified by Buyer.

-A separate written buyer agency agreement is required which sets forth the duties and obligtions of the parties.

Seller's Agent:
A Seller's Agent is engaged as a limited agent and works SOLELY on behalf of the seller.

- Owes duties to the seller which include the utmost good faith, loyalty and fidelity;
- Will negotiate on behalf of and act as an advocate for the seller;
- Must disclose to potential buyers or tenants all adverse material facts about the property actually known by the broker.

-Seller shall not be vicariously liable for the acts of Broker that are not approved, directed, or ratified by Seller.

-A separate written listing agreement is required which sets forth the duties and obligations of the parties.

Transaction Broker:
A transaction broker assists the buyer or seller or both throughout a real estate transaction with communication, advice, negotiation, contracting and closing without being an agent or advocate for any of the parties;

- A transaction broker does owe the parties a number of statutory obligations and responsibilities, including using reasonable skill and care in the performance of any oral or written agreement;

- Must also make the same disclosures as agents about adverse material facts concerning property or a buyer's financial ability to perform the terms of a transaction and whether the buyer intends to occupy the property.

-The Parties to a transaction are not legally responsible for the actions of a transaction-broker and a transaction-broker does not owe those parties the duties of an agent.

-No written agreement is required.

Customer:
A customer is a party to a real estate transaction with whom the broker has no brokerage relationship because such party has not engaged or employed the broker, either as the party's agent or as the party's transaction broker.

Client:
A client is a party to a real estate transaction with whom the broker has a brokerage relationship because such party has engaged or employed the broker as either an agent or a transaction broker.