| Literal meaning of broker is a person, | | | | brokers. But they assist you to take advice |
| entity, or party who takes intermediary | | | | and coordinate with the appropriate |
| commission during the deal between seller and | | | | specialist in these fields. |
| buyer. Real state and land brokers are the | | | | |
| terms use for the brokers who act between | | | | There are several listing contracts between |
| buyer and seller while dealing in real state | | | | seller and broker, which is essential part of |
| or land property. | | | | fair dealing. These contracts are listed |
| | | | below- |
| The relationship of these real estate and | | | | |
| land brokers with buyer and seller were | | | | 1. Exclusive Agency- In this kind of dealing, |
| originally established under the English | | | | broker have the rights to sell the property |
| common law in USA. In UK, these brokers are | | | | with no commission is ever given to other |
| known as Estate agents. | | | | broker. In this case, property will never be |
| | | | listed in MLS. |
| What kind of work these agents are required | | | | |
| to do? | | | | 2. Exclusive Right to sell the property- In |
| | | | this type of contract, broker will enjoy the |
| These real estate and land brokers with their | | | | rights to marketing the property and will |
| salesmen are responsible to carried out the | | | | represent the seller exclusively to buyer. |
| deal between seller and buyer. They will | | | | Brokers may offer some part of its brokerage |
| guide sellers in marketing and selling their | | | | to other brokers who help them to show the |
| properties with highest possible rates while | | | | property or to find the potent buyer of the |
| acting towards seller's broker. They will | | | | property. |
| also assist buyers to purchase good property | | | | |
| at nominal rates and best terms and | | | | 3. Open listing- This is the type of contract |
| conditions. In this case they are said to be | | | | in which, brokers have right to advertise, |
| a buyer's agents. They will take commission | | | | negotiate the sale. Whoever broker first |
| legally from the parties engaged in dealing. | | | | bring the appropriate offer would receive |
| Some real estate and land brokers also | | | | commission. Real estate will required the |
| collaborated with loan or finance officers, | | | | written contract for open listing to be |
| who can help buyer to get finance for their | | | | signed by the seller. This will ensure |
| purchase. For that purpose several terms and | | | | commission to broker if the deal takes place. |
| conditions would be subjected for change. | | | | |
| | | | What is brokerage commission? |
| Services are not the integral part of the | | | | |
| service provided by these real estate and | | | | After the deal between buyer and seller |
| land brokers. | | | | finally gets over, broker received the |
| | | | brokerage or commission for their services |
| There are few title services, for example, | | | | and efforts for completing the deal. This |
| title search, title insurance etc. along with | | | | commission ranges from few percent of the |
| the survey and formal appraisals and acting | | | | amount given by buyer to seller. In North |
| as the lawyers for parties are few services | | | | America, generally 5 to 7 percent is given to |
| which are not being offered by these kinds of | | | | real estate broker after transaction. |