What kind of representation does a transaction broker provide?

A transaction broker provides limited representation in real estate transactions. This means that the broker assists both parties—typically the buyer and the seller—without being an advocate for either side. Unlike full representation, where the broker would owe fiduciary duties such as loyalty and full disclosure to one party, the role of a transaction broker is more neutral.

In a transaction brokerage, the broker helps facilitate the transaction by providing services such as preparing paperwork and guiding the parties through the process, but does not engage in negotiations or make decisions on behalf of either party. This limited representation helps to ensure impartiality, which can be beneficial in situations where the interests of both parties need to be balanced without favoring one over the other.

Understanding the nature of limited representation is crucial for both buyers and sellers, as it clarifies the expectations regarding the broker's duties and the level of support they can anticipate during the transaction process. This distinction is significant when comparing it to exclusive representation, where a single party would receive dedicated guidance, or dual agency, which would involve representing both parties equally.