Home Buying in 73013>Question Details

Elaine, Real Estate Pro in 73013

What is the difference between Transaction Broker and Single Party Broker?

Asked by Elaine, 73013 Fri Mar 9, 2012

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Elaine, those are good answers that probably caused more confusion so I'll put it in terms you may better be able to understand. Using a sports analogy, the Transaction Broker is likend to the referee - they lay the ground rules, give you left and right limits and "guide" you through the process, essentially leaving you on your own. The Single Party Broker, however is likened to the Coach - one who gives advice, establishes a plan, knows the ins/outs, strengths and weaknesses and basically holds your hand to victory. We work with all our clients on a SPB basis and believe in the KISS method. Hope this was useful and feel free to call me for a one on one consult and dont be afraid to share me with your friends.
2 votes Thank Flag Link Fri Aug 17, 2012
Great explanation Jessie! What a simple way to understand the two roles, I might have to use that analogy when I'm explaining it in the future.
Flag Wed Dec 12, 2012
Transaction Brokers handle the paperwork, provides feedback, gives the buyer/seller options, gives the buyer/seller situations, and lets the buyer/seller make the decision, the number one thing about a transaction broker is that neither the broker nor the client are vicariously liable for each other's actions.

Single Party Broker, speaks openly to their clients about their personal thoughts and the client (buyer or seller) is vicariously liable for their Broker's actions and the Broker is vicariously liable for the client's actions.

Brokers need to ask themselves, do I want to be liable for the buyer's or seller's actions if they, their clients do something illegal? Especially if you have, a contract w/ that client whos actions are outside the broker's control the broker could end up paying for their clients fraud as a single party broker.

Hope this helps,

Josh
1 vote Thank Flag Link Fri Mar 9, 2012
Hi Elaine:
The two previous Realtors have answered the question to a tee> Just to let you know I live in Edmond and I know all the neighborhoods in the city: Yes Elaine I would most likely work for you as a Single Party Broker. I will work for you honestly and be truthful on all aspects of the deal: If you do not have a Mortgage Co. I can help you find one.
Please contact me if I can help you in any way;
You can call for references:
Thank You
John Phillips
ReMax Preferred Properties
405 413 0791
0 votes Thank Flag Link Fri Mar 9, 2012
Excellent answer from Josh regarding the vicarious liability aspect. Only applies under Single Party Agreement when associates from the same office are on the buy and sell side of a deal. Classic example, an associate lists a house with a pool as a Single Pary Broker. Another associate from the same office shows the house as a Transaction Broker. Buyer asks how deep the pool is. Associate claims pool to be 10 feet deep. House closes and buyer finds pool is only 8 feet deep. Buyer associate made a statement, the 'act', that placed the Seller in a situation to be liable for making that pool ten feet deep. Same Broker, two associates working under them, but the Broker owns all listings so that Single Party for the seller has caused them a problem. There may also be legal remedy to the Buyer against Buyer's associate under promissory estoppel, but that would be for the lawyers to determine.

There are few ways for the Buyer to be held liable on Single Party Agreements, but I can give you one example. Once again the listing has a pool. The Seller has a Transaction Broker Agreement with the listing to avoid vicarious liability. Single Pary Buyer sees the house and while in the back looking at the pool they leave the gate open. Neighborhood kid wanders into the back yard and drowns. The Buyer becomes vicariously liable for the 'act or omission' of not properly securing the pool by the associate (Broker). This time the Seller will probably be looking at a legal matter regarding an attractive nuisance.

I want to add that the Single Pary Brokerage agreement is a CONTRACT between the client and Broker. Please pay special attention to section H. The broker will "perform all brokerage activities to the benefit of the party". So it is not an option, but a contractual requirement to operate to the clients benefit. If the Realtor on the other side tells you something that would be a benefit to your client that you would definately pass that along as a Single Party Broker. As a Transaction Broker you would not because you cannot operate to "benefit" your client. As stated in section b of the Transaction Broker disclosure, "treat ALL parties to the transaction with honesty and exercise reasonable skill and care". You must not work to benefit your side or you would be working in a Single Party capacity and that requires a Single Party Agreement.

If the Broker is 'double siding' the deal and one side is Single Party be sure to get the proper disclosures signed.

This is should be covered EXTENSIVELY in your broker training class. It was in mine.
0 votes Thank Flag Link Fri Mar 9, 2012
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