5 JUNE 2017
The Role of the BROKER
A real estate broker is essentially the person who acts as an intermediary between sellers and buyers of real estate / real property and attempts to match up sellers who wish to sell and buyers who wish to buy . His financial relationship is defined by a payment called a commission , due usually once a sale completes . This commission can be divided up with other participating real estate brokers or agents when applicable . In most developed countries a real estate broker must be licensed . Ideally having a written agreement between the broker and the client protects them both , but in many situations an oral agreement is used to “ enforce ” the arrangement but this could be come confusing if the relationship between parties is not “ exclusive ”. Under the concept of Dual agency where the broker represents both buyer and seller it is ethical that the broker disclose to both parties whom he represents as a client and whom he represents as a customer . Some services offered by a broker can include such activities as estimating the property selling value , guiding either the buyer or the seller through the purchase and selling process , working with legal representatives to ensure the necessary contractual paperwork is undertaken , advertising and showing properties , conducting open houses and even giving advice that ensures the seller ’ s or buyer ’ s property requirements are met . With the rapid pace at which technology is impacting the ease to information , it can at times seem that a broker is not required . However even with the ease by which buyers can come into contact with sellers there is always the issue of qualifying buyers ; which a broker can serve to do to avoid the waste of the sellers time . Also an experienced broker can aid in facilitating the closing process as it pertains to the legal issues involved in closing the sale on purchase . Even the recent trend of online bidding for example has its disadvantage ; where the highest bids can be from buyers who turn out to be unqualified or unreliable . A further justification for a broker is reinforced in terms of viewing properties where sellers are hesitant to take on showing strangers their homes without industry support . In general the broker is an essential role in the buying and selling of properties but it is still important that some form of government regulation exist , not only for the purpose of protecting brokers and realtors but more so the consumers of property .