In some states laws have been passed to allow brokers to represent neither the buyer nor the seller in a real estate transaction, but that broker can still help close a transaction and receive a payment. Those brokers are called transaction brokers.
What exactly would the broker be doing in this scenario? Well he would simply assist with the details of the real estate transaction – the contracts/paperwork, arranging meetings between the buyer and seller, etc. But, the broker does not act as an agent to either the buyer or seller’s interests. Another way of saying this is that the broker does not have a fiduciary or agency duty to either the buyer or the seller – meaning that the broker does not have to act solely in one party’s interests.
Which states allow for a transactional brokerage?
Both Florida and Colorado are two states which allow for the practice of transactional brokerage.