Broker & Agent

Definition of Broker:
Generally Real Estate broker is a person who help buying & selling the real estate/real property. In the business sense, a real estate broker is a person or corporation engaged primarily in the marketing of one or more of the various rights in real property.

• Basic function of broker is to negotiate price
  
• Success or failure of a broker depend on his ability to bring together a buyer and a seller who are ready, willing and able

A broker business consists of:

• Selling or leasing property or space in a building
• Placing a mortgage
• Collecting rent
• Performing other services for a certain percentage of the money of the transaction.
  

Definition of Agent:

Anyone who is legally competent to enter into a contract may be an agent. A person capable of acting in ones owns behalf is capable of acting for another if proper authority has been given.

Kinds of Agents:

In terms of business to be transacted, Agents are 3 types:

1. General Agent: A general agent is authorized by the seller to transact all affairs in connection with a particular kind of business or trade or to transact all business at a certain place
2. Special Agent: It is authorized by the principal (seller) to transact a business affair or to do a special act. In real estate, for example, when a broker is authorized to purchase a particular house, the broker is designated as the special agent of the principal (seller)
3. The Universal Agent: It is authorized to do all acts that can be lawfully delegated to a representative.

Duties of the Broker as Agent:

1. Loyalty
2. Must account for money and property
3. An agent control delegate authority
4. Duty to obey instruction
5. Must not be negligent
6. The fiduciary concept
7. May not act for both parties
8. May not misrepresent the fact
9. Extravagant statements (Spending a lot of money)