The terms real estate agent and broker are different from each other, even though you might have seen them being used interchangeably.
A broker has more responsibilities to fulfill than a real estate agent does in real estate transactions. This article highlights what a broker is and what duties he has to perform in real estate transactions.
What is a broker?
A broker arranges real estate transactions between buyers and sellers. He receives a separate designation and license by taking additional education apart from the standard real estate exam in his state. With this license, he can either have other agents working under him or he can work independently as well. You may simply say that a broker is a step above an average real estate agent.
Moreover, the term “designated broker” is used for a specified real estate broker. A designated broker has to oversee every real estate transaction of agents who work under him.
Licensing Levels for a Broker
Every real estate professional has to be licensed as a broker, in some states, such as in New Mexico and Colorado. But, in those states, if such a broker wants to hire agents to work under him, he has to attain another higher-level license. For example, a real estate broker Toronto is licensed to work independently, but he must attain another higher-level license in order to have agents working under him.
Responsibilities of real estate brokers who work for sellers
They mostly have to perform the following duties:
- To give advice to the home sellers such as how they should prepare their homes for listings and showings.
- To list homes for sale on the local as well as Multiple Listing Service (MLS).
- To submit offers to the seller for consideration.
- To work on the seller’s behalf in order to coordinate the transaction process.
- To work with the sellers through the closing and their move-out from the home.
- To help the sellers in negotiating offers in order to try and execute a purchase contract with a buyer.
Responsibilities of real estate brokers who work with buyers
You may expect a real estate broker in Toronto who works with buyers to perform the following duties in most cases:
- To coordinate with buyers and help them to visit and view properties.
- To help buyers in locating all such properties in their desired area that meet their criteria for buying properties.
- To deliver and explain documents in the transaction process.
- To help a buyer in crafting his initial offer and purchasing agreement when a decision is made to attempt a purchase.
- To coordinate the transaction process on the buyer side once a purchase contract is executed.
Responsibilities of a designated broker
A real estate broker who is licensed to have agents working under him has the following duties to perform:
- To verify the licenses of all brokerage agents.
- He’s responsible for an agent’s performance, behavior, and legal compliance.
- To instruct or train the agents working under him.
- To maintain a brokerage website for agent marketing.
- To provide his agents with marketing resources.