What role does a transaction broker play?

A transaction broker serves as an intermediary in a real estate transaction but does not represent either party as a fiduciary. This means that the transaction broker assists the buyer and the seller in the transaction while maintaining a neutral position. By not having fiduciary duties, the transaction broker provides support such as facilitating communication, aiding in negotiations, and ensuring compliance with legal requirements, all while remaining impartial.

This role is particularly valuable in situations where both parties are looking for assistance in moving the deal forward without the complexities of representing one party over the other. The lack of fiduciary responsibility differentiates a transaction broker from other types of real estate agents, who typically have a fiduciary duty to either the buyer or seller. This neutrality allows for a smoother communication channel between both parties.

In contrast, the other options involve responsibilities or roles that a transaction broker does not fulfill. For example, having a fiduciary duty implies a commitment to acting in the best interest of one specific party, which contradicts the transaction broker's neutral position. Similarly, acting as a legal advisor or representing only the seller also mischaracterizes the function of a transaction broker, who does not take on those responsibilities.