A transaction broker is a licensed real estate professional who acts as a neutral facilitator in a property sale or purchase. Unlike traditional agents who owe fiduciary duties to a client, a transaction broker provides limited, non-advocacy representation to both buyer and seller and focuses on keeping the deal moving smoothly and compliantly rather than negotiating for either side.
Transaction brokers are legally neutral. Their role is to coordinate the transaction, prepare paperwork, and disclose known material facts about the property, but they do not provide fiduciary services such as loyalty, confidential advocacy, or strategic negotiation. The service is designed for situations where both parties want professional support with the mechanics of a deal without full agent representation.
| Role | Represents | Duties | Negotiation/Advocacy |
|---|---|---|---|
| Buyer’s agent | Buyer only | Fiduciary duties (loyalty, confidentiality, advocacy) | Yes — for buyer |
| Seller’s agent | Seller only | Fiduciary duties (loyalty, confidentiality, advocacy) | Yes — for seller |
| Dual agent | Both buyer and seller | Fiduciary duties to both (can create conflicts) | Yes, but limited |
| Transaction broker | Neither (neutral) | Limited representation; does not act as fiduciary | No — focuses on coordination |
Unlike a dual agent, a transaction broker avoids fiduciary duties to prevent conflicts of interest. They also differ from a dedicated buyer’s agent or seller’s agent, who negotiate and advocate for one client.
The transaction broker option is allowed in some U.S. states (for example, Florida and Colorado) but not in others. Specific duties and required disclosures vary by state law, so it’s important to confirm local rules before choosing this representation model.
Advantages
Limitations
Choose a transaction broker if you want professional administration—contract preparation, disclosure compliance, inspection coordination, and closing support—without agent advocacy. This works well for experienced buyers/sellers, amicable private sales, or cost-conscious parties in states where the model is permitted. If you want negotiation strategy, confidentiality, or someone legally obligated to advocate for your interests, a traditional buyer’s or seller’s agent is a better choice.
A transaction broker provides neutral, limited representation focused on transaction mechanics rather than client advocacy. It’s a practical, often cost-effective option when both sides want administrative and compliance support but do not require fiduciary negotiation or strategy. Always verify local real estate laws to understand how transaction brokerage is defined and permitted in your state.
