Question

A couple is interested in purchasing residential investment property, and they have informed their sales associate that they want limited representation but do not want to be legally held responsible for the acts of a licensee. Which brokerage relationship is best suited to this couple?No brokerage relationship B) Single agency C) For sale by owner D) Transaction broker

Answer 1

Answer:

The correct answer is D) Transaction broker.

Explanation:

A transaction brokerage provides third-party real estate services for both buyers and sellers. A real estate agent is required, by law, to legally assist only one of the parties in a real estate transaction. This is also called a single agency. However, a transaction intermediary is legally neutral and can help the buyer and seller in a transaction. Instead of acting as an agent for the buyer or seller, the transaction broker can be described as a professional assistant. Instead of a percentage of the sale, the intermediary of the transaction often charges a fixed fee.

A transaction broker can assist the buyer in preparing his offer for purchase, assist the seller in deciding what price to ask, facilitate communications between buyer and seller, write the contract and help buyer and seller to comply with the conditions of the contract and facilitate closing. Although they are not legally responsible to the buyer or seller, transaction brokers are required by law to act honestly and impartially in all transactions and to give due care and skill in their work.

Answer 2

Answer:

option (D) Transaction broker

Explanation:

According to the given statements it can be concluded that the best brokerage relationship suited to this couple is

" option (D) Transaction broker "

In a brokerage involving the transaction broker relationship, both the main parties involved in the transaction i.e the buyer and the seller are not responsible for the act of licensee.

The transaction broker acts as an inter mediator for the whole transaction for the negotiations and the exchange of information.