Transaction Brokerage (Part two of a three-part series)

Transaction Brokerage was designed, and is used, as an alternative to dual agency in that when an agent is faced with representing both sides, he or she can “convert” his existing brokerage relationship from agency to transactional brokerage and change the agent’s fiduciary relationship from one in which he represents a person to one in which he represents the transaction itself.

We know – we may have lost you there. Let’s use an example. Sharon has a listing on Smith Street. She has an open house and a buyer visits and likes the property well enough to write an offer. Sharon now has three options. She can represent only the seller, since she has a pre-existing agency relationship with the sellers. She could also enter into a buyer agency agreement with the buyer and therefore be a dual agent (her pre-existing agency relationship with the sellers plus her new agency relationship with the buyers) as discussed in the last post. Sharon may also become act under transaction brokerage and assist both sides without creating agency to the buyer and therefore “converting” her relationship with the sellers to transaction brokerage.

It may sound a little more complicated than it is. The bottom line here is that some people just don’ t think that an agent can adequately and fairly represent the interests of both sides, and by using transaction brokerage, she is, at a minimum, telling both parties that she will be working to get the deal closed, but won’t necessarily be working for anyone’s interests except the transaction.

If you have more questions about transaction brokerage or in purchasing your first home, visit our website at www.springfieldfirsthome.com or by calling or texting 417.872.9222.