Buyer Agent vs Transaction Broker
Definition
A buyer agent owes full fiduciary duties to the buyer, while a transaction broker facilitates the transaction without representing either party and owes limited duties to both.
Example
In a buyer agency relationship, the agent tells the buyer that the seller seems motivated and might accept a lower offer. A transaction broker could NOT share this information because it would disadvantage the seller.
Exam Tip
Exam questions test the duties owed: buyer agent = full fiduciary (OLD CAR); transaction broker = limited duties (honesty, fairness, accounting, disclosure of material facts). Transaction brokers do NOT owe loyalty or obedience.
Related Buyer Rep Terms
Buyer Broker Duties
The fiduciary obligations a buyer's agent owes to their client, including loyalty, obedience, disclosure, confidentiality, accounting, and reasonable care.
Buyer Representation Disclosure
A form that explains to the buyer the types of agency relationships available and the duties associated with each, required to be provided before substantive discussions begin.
Cooperative Compensation
The practice of a listing broker sharing commission with a buyer's broker, historically offered through the MLS but now prohibited from MLS display under the 2024 NAR settlement.
Buyer Consultation
An initial meeting between a buyer and agent to discuss the buyer's needs, explain agency relationships, review representation agreements, and establish expectations for the home-buying process.
Buyer Loyalty Obligation
The duty of a buyer's agent to act solely in the buyer's best interest, avoiding any conflicts of interest and putting the buyer's needs above the agent's own financial interests.
Termination of Buyer Agency Agreement
The legal ending of a buyer representation agreement, which can occur through expiration, mutual consent, breach, or specific termination provisions outlined in the contract.
Frequently Asked Questions
Test Your Buyer Rep Knowledge
Practice with exam-style questions to make sure you can apply Buyer Agent vs Transaction Broker and other buyer rep concepts.