What’s the Difference Between a Transaction Broker and an Agent?

A Transaction Broker is not a representative for either party. Simply put, a transaction broker is engaged to facilitate a deal that has already been negotiated by the buyer and seller.

In this role, the broker’s responsibility is limited to:

• Writing the contract
• Executing the agreement
• Ordering title work
• Coordinating the closing process
• In some cases, facilitating a 1031 exchange

A transaction broker does not negotiate terms, does not advise on pricing, and does not act on behalf of either party. They also must not share information that could give one side an advantage over the other. The role is administrative and procedural—to get the deal done, not to influence it.

This is a practice I have personally performed many times. Often, a buyer and seller will come to me after they have already agreed on terms and simply need professional help navigating the paperwork and closing process. In those cases, I act strictly as a transaction broker—neutral, efficient, and focused on execution. Because no representation or advocacy is involved, this service is typically provided at a significantly lower cost than traditional brokerage fees.

Where Transaction Brokerage Doesn’t Belong

What transaction brokerage was not designed for is listing property.

If you understand fiduciary duty and the responsibilities of true agency, the question becomes obvious:
Why would a seller hire an agent only to have that agent waive representation?

A transaction broker cannot advise on pricing, negotiations, strategy, or market positioning—precisely the things most sellers believe they are hiring an agent to do. Yet, this practice has become increasingly common.

In my opinion, transaction brokerage is often used by agents as a way to avoid responsibility and liability, while still collecting a fee. That may be convenient for the agent—but it does not serve the client seeking representation.

This is the core reason for this series on agency: to help the public understand what to look for, what to avoid, and how to ensure they are truly represented—not simply processed through a transaction.

Final Thoughts

There are countless stories I could share, but I’ll spare you the novel.

My goal is simple: to help people make better decisions in their real estate ventures—whether buying, selling, or investing. Education has always been the foundation of what we do at Results, and that remains unchanged.

Representation matters.
Knowing the difference protects you.