What Is a Transaction Broker in Real Estate?
A transaction broker in real estate is a neutral third party who assists both the buyer and seller in completing a transaction — without representing either side as an agent. Instead of advocating for one party, a transaction broker helps facilitate the deal and ensures all paperwork and disclosures are handled correctly.
⚖️ How a Transaction Broker Works
- Provides impartial assistance to both buyer and seller.
- Prepares and explains documents such as offers, counteroffers, and disclosures.
- Helps coordinate inspections, appraisals, and closing details.
- Does not provide fiduciary advice or advocate for either party’s best interests.
Many states use transaction brokerage as an alternative to dual agency, where conflicts of interest can arise if one agent represents both sides.
✅ Pros and ⚠️ Cons of Transaction Brokerage
- ✅ Pro: Both sides receive professional guidance without legal conflicts.
- ✅ Pro: Simplifies communication and coordination.
- ⚠️ Con: No fiduciary duty — the broker can’t give specific pricing or negotiation advice.
- ⚠️ Con: May not be available in all states or for all types of transactions.
🏡 Transaction Brokers and FSBO Sellers
If you’re selling For Sale By Owner (FSBO), a transaction broker can help streamline the closing process by managing documents and timelines without taking a commission on your behalf. However, most flat fee MLS listings already include professional broker support — making it easier to stay compliant while saving thousands in commissions.