Kindly, Carrie Holmes
Coldwell Banker Residential Brokerage
Buyers Agent : A buyers agent works solely on behalf of the buyer to promote the interests of the buyer with the upmost good faith, loyalty and fidelity. The agent negotiates on behalf of and acts as an odvocate for the buyer...
Transaction Broker : A tranaction broker assists the buyer or seller or both throughout the real estate transaction by performing terms of any written or oral agreement, fully informing the parties, presenting all offers, and assisting the parties with any contract, including closing of the transaction, without being an agent or advocate for any of the parties...
This is all taken off of the "Definitions of Working Re;ationships" form from the Colorado Real Estate Commission.
What this mean to a buyer is simply that tranaction broker is not working for you as a client, but is just trying to get the deal to closing. For the most part, you want to work with someone that wants to be your agent, that way you know they are looking out for you, the buyer. Not just trying to get the deal to close to collect their commission. You as a buyer want to feel that your broker is on your side, and if they will only work a transaction broker, they are on everyones side, you have to wonder why?
Please feel free to call me with questions
There is a reason the Real Estate Commission requires the Definitions of Working Relationships Disclosure....because brokers were and ARE blurring the line between the two. I have seen it, and it's an ugly but common place misrepresentation.
Do you want someone advocating for your interest or not? For peace of mind be assured a Transaction Broker (TB) cannot deceive either party or hide any material defects but they won't be advocating for your best interest. Examples of advocating are given in the previous two responses.
And, yes there are agencies and agents that will only work in a TB capacity. As a consumer I would definitely ask WHY??? See if you are comfortable with the answer you receive from such agents and keep Carrie's answer in mind.
If by some chance you found/find a house without a buyer agent and go directly through the listing agent then one of two things occurs depending on the agents listing agreement with the seller. Either you become a customer and the listing agent only advocates for the seller or they become a Transaction Broker. The law assumes it is impossible to fairly advocate for and be loyal to separate parties in the same transaction, which is why if the listing agreement allows the agent becomes a TB.
The state of CO recognized many years ago that buyers need representation and gives you the right to a buyer broker to advocate for your best interest, so think carefully before you choose not to use an agency the state says you have right to.
Best of luck,