agency

transaction broker

A licensee who assists one or both parties in a real estate transaction without representing either as a fiduciary agent. Transaction brokers provide limited duties defined by state law, such as honesty, reasonable skill and care, and accounting for funds, but not full loyalty or advocacy. Availability and the exact duties vary by state, and some states use different names such as facilitator.

Exam tip: Key exam point: a transaction broker is not an agent and owes limited statutory duties, not full fiduciary duties.
Example: In a state allowing it, a broker helps both a buyer and seller complete paperwork as a transaction broker, negotiating for neither side.

1. A licensee acts as a transaction broker (facilitator) in a state that allows it. Which statement is most accurate?

Answer & explanation

Answer: C. A transaction broker is a non-agent facilitator who owes baseline duties like honesty and care but not the advocacy and loyalty of an agency relationship. Saying full fiduciary duties run to both parties confuses this role with dual agency.

Related terms & state variants

agency disclosure designated agency dual agency single agency

Sources

Source verification pending. Confirm current requirements with your state regulator.

Last verified: 2026-10-23