What is the role of a transaction broker?

The role of a transaction broker is to provide limited representation in a real estate transaction. This means that the transaction broker facilitates the transaction by assisting both the buyer and the seller but does not provide the full range of fiduciary duties that would be present in a traditional agency relationship. Instead, the transaction broker acts as a neutral intermediary who helps coordinate communications, paperwork, and important steps in the transaction process without advocating for the interests of either party.

This provides a level of support that can be beneficial, especially when both parties are motivated to reach an agreement but may not require or want full representation that would involve a fiduciary duty from one side. The limited representation helps manage the transaction efficiently while maintaining a degree of impartiality.

In contrast, other roles mentioned, such as representing one party in a fiduciary capacity, involves a greater commitment and loyalty to that specific party. Also, being a general agent for a principal suggests a broader scope of authority and responsibility than what a transaction broker typically has. Lastly, while representing both parties equally in all sales might seem appealing, it doesn't align with the practical and legal limitations that define the role of a transaction broker. The focus is significantly on limited representation, which is key to its function within real estate transactions.