REAL ESTATE AGENT / DEFINITIONS

Definition

Real estate agent software encompasses a broad range of digital tools designed to assist real estate professionals in managing their business operations more efficiently and effectively.

By: Joe Stephenson REALTOR®

Table of Contents

• Definition
• Types of Real Estate Management Software
• Commercial Real Estate Agent Software
• Types of Real Estate Software
• Popular Features
• Sign up for Our Newsletter

Uses

This type of software caters to the various needs throughout the property buying and selling process, including but not limited to customer relationship management (CRM), lead generation, transaction management, document handling, financial tracking, calculating commissions, and market analysis.

The primary objective of real estate agent software is to streamline and automate tasks that would otherwise consume a significant amount of time if done manually.

It helps agents focus more on the interpersonal aspects of their job—such as building client relationships and closing deals—while ensuring that the administrative side runs smoothly and without error.

Types of Real Estate Agent Management Software

1. Customer Relationship Management (CRM) Software

CRMs are pivotal for managing contacts, tracking client interactions, and automating communication.

They help real estate agents nurture leads and maintain relationships with past clients.

Examples include Contactually, Follow Up Boss, and Top Producer CRM.

2. Lead Generation and Management Software

This category focuses on tools that generate, capture, and manage leads from various sources.

They often feature integration with websites and marketing platforms.

Real Geeks, Zillow Premier Agent, and Market Leader are notable mentions.

3. Property Listing and Marketing Software

Software in this category assists agents in listing properties on multiple platforms, creating marketing materials, and promoting listings through social media and email campaigns.

Propertybase and Catalyze AI are examples of platforms that offer these capabilities.

4. Transaction Management Software

Transaction management tools streamline the process of managing real estate transactions, from contract to closing.

They help agents keep track of documents, deadlines, and tasks.

Qualia and Dotloop provide solutions for efficient transaction management.

5. Document and Contract Management Software

These tools are designed to help agents create, edit, store, and sign documents electronically.

They ensure compliance and efficiency in handling contracts and other important paperwork.

DocuSign and Zipform are key players in this space.

6. Market Analysis and Data Software

Real estate agents use these platforms to access real-time market data, trends, and analytics, which aid in pricing strategies and market positioning.

Tools like Wise Agent and IXACT Contact offer features for market analysis.

7. Open House and Showing Management Software

Dedicated to scheduling and managing property showings and open houses, this software enhances the viewing experience for buyers and streamlines feedback collection for sellers.

Spacio is an example of a platform catering to this need.

8. Financial and Commission Tracking Software

These applications help real estate professionals track their earnings, expenses, and commission payments, facilitating better financial planning and reporting.

Loft47 and BrokerKit are tailored to address these financial aspects.

9. Collaboration and Project Management Software

With the need for team collaboration and project tracking, tools like monday.com and Wrike offer real estate agents the ability to manage projects, tasks, and collaborations efficiently within their teams.

10. Communication and Messaging Software

To facilitate seamless communication with clients and teams, software such as Avochato provides messaging services that integrate with other platforms, ensuring that agents can maintain constant contact.

It’s important to have the right laptop or computer for your real estate business.

Check out our review of the best laptops for real estate agents in 2024 and stay up to speed.

Commercial Real Estate Agent Software

Commercial real estate agent software has become a game-changer in how properties are managed, marketed, and invested in.

Unlike residential real estate tools, these platforms are tailored to meet the unique demands of commercial properties, investors, and businesses.

Here’s a look at some ways this software can be utilized effectively.

For Investors

Commercial real estate software serves as a powerful resource for independent research.

Investors can delve into valuable information regarding market trends, property values, and potential returns on investment.

Also, the integration of financial tools allows for a thorough analysis of costs, expected income, and overall financial health of investments.

Consequently, investors can make informed decisions, potentially leading to significant growth in their portfolios.

Analyzing Properties

Moreover, the software provides tools for analyzing the viability and profitability of commercial properties.

Through detailed review features, users can assess various aspects such as location desirability, tenant demographics, and competitive positioning.

Furthermore, integration with market data feeds ensures that the analysis is based on up-to-date information, enhancing the accuracy of projections and forecasts.

Marketing and Tenant Management

Additionally, marketing tools within the software help agents create attractive listings for websites and social media platforms.

This not only helps in attracting more prospective tenants but also in securing higher-quality rentals. Meanwhile, tenant management features streamline the process of handling leases, payments, and maintenance requests, ensuring that both landlords and tenants are satisfied.

Importantly, this fosters a sense of security and trust among all parties involved.

Investing in Technology for Success

Investing in the right commercial real estate software can lead to substantial returns.

Not only does it save time and money by automating various tasks, but it also offers a competitive edge in a crowded market.

With features designed to serve businesses effectively, from security protocols to human resources integration, these tools support the success and growth of commercial real estate ventures.

Commercial real estate agent software offers a plethora of benefits that go beyond what traditional residential platforms provide.

By leveraging technology, agents and investors can achieve greater efficiency, better decision-making, and ultimately, enhanced profitability in their commercial real estate endeavors.

Other Types of Real Estate Software

The real estate management software landscape is varied, catering to different facets of property management, from residential and commercial properties to rental and leasing management.

Based on the information gathered, here is a summary of the different types of real estate management software available in 2024.

Residential Property Management Software for a REALTOR®

Tailored for residential properties, this REALTOR® software includes aspects such as tenant screening, lease follow-ups, handling of maintenance requirements, and financial control.

It’s a perfect tool for landlords and managers supervising single-family dwellings, apartments, and condos.

Commercial Property Management Software

This software addresses the necessitates of commercial property management. It covers areas such as office buildings, retail spaces, and warehouses.

The system includes lease administration, billing, and common area maintenance charges, integrated with tools for market research and facility maintenance.

Software for Managing Rental Properties

This software focuses on rental property management.

It simplifies rental agreement management, online rent collection, tenant interaction, and property upkeep.

It’s useful for property managers and landlords who oversee vacation leases or long-term properties.

Lease Management System

The lease management system offers tools to track tenure terms, renewals, and terminations, thereby simplifying lease oversight for property managers.

It usually incorporates features for document management and financial summarization.

Accounting and Financial Management Software

This software emphasizes managing the financial aspect of property.

It offers features like income and expense tracking, financial report generation, and trust accounting control.

It plays a vital role in maintaining the fiscal health of any real estate portfolio.

Software for Maintenance and Work Order Management

Dedicated to property upkeep, this software lets property managers follow up on maintenance requests, plan repairs, and manage vendor relations.

It helps keep properties in excellent condition, potentially extending their lifespan.

Property Inspection Management Software

This software makes scheduling and conducting property inspections easy, ensuring properties meet safety and quality benchmarks.

It generally includes checklists, options to upload photos, and generate reports.

Tenant and Lease Tracking Software

This software is useful in managing tenant data and following lease agreements, offering a centralized database for property managers to retrieve tenant information, lease conditions, and payment records.

Popular Features

Real estate agents prioritize software features that streamline their workload and enhance efficiency. Here are the key features they look for.

• Automated Customer Relationship and Sales Management – Saves significant time by handling repetitive tasks, allowing agents to concentrate on closing deals and engaging with clients.
• Verified User Reviews – Agents rely on feedback from other professionals to identify the most helpful and efficient tools, ensuring they invest in software that truly meets their needs.
• Website Builders with Templates – Enables quick and easy website setup, crucial for attracting potential customers and showcasing properties, without the high cost of custom web development.
• Inbuilt Training Modules – Offers agents the opportunity to gain industry-specific knowledge directly within the software, saving money and effort on external training resources.
• Task Management Systems – Keeps track of all daily activities, from scheduling property showings to following up on leads, ensuring nothing is overlooked.
• Referral Fee Tracking – Simplifies the process of tracking and collecting referral fees, providing peace of mind and financial transparency.

Through these features, real estate agent software not only minimizes the time and effort spent on administrative tasks but also adds significant value to the services provided to clients, ultimately contributing to the success and growth of their business.

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REAL ESTATE AGENT / DEFINITIONS

By: Joe Stephenson REALTOR®

What are Real Estate Encumbrances?

Definition

An encumbrance is a liability, claim, or charge on real estate. It is a responsibility, obligation, or debt associated with the real estate. Although a liability doesn’t necessarily obstruct the title’s transfer to another individual, it could potentially devalue the property or impose limitations on its usage.

They can be imposed by a party who is not the property owner and they can create title transfer issues.

These encumbrances may come in the form of liens, easements, deed restrictions, or other claims on the property. Encumbrances can affect the property’s title, the physical condition of the property, or both.

Table of Contents

• Definition
• Easements
• Creation of an Easement
• Termination of an Easement
• Liens
• Priority of Liens
• Real Estate Tax Liens
• Other Types of Real Estate Liens

Easements

Liabilities are of two kinds

1. Encumbrances that solely impact the title, like judgments and liens.
2. Encumbrances that influence both the title and the property’s physical state, such as a deed restriction, encroachments, and easements.

Easements

An easement grants permission to use someone else’s land. This could involve utilizing the land’s surface or the airspace above it. Rights of way are regarded as non-possessory interests in real estate because the holder has the right to use the property but not to own it.

Categorizing Easements

These can be categorized in two manners:

1. Easements that are either appurtenant or in gross.
2. Easements that are either positive (permitting someone to perform an action) or negative (restricting someone from performing an action).

Appurtenant Easements

An appurtenant easement refers to a situation where the rights of property usage are given to an adjoining property owner. This type of easement is attached to the land and not to the property owner.

Thus, if the owner sells the property, the new owner will inherit the easement. A common example of this is when a homeowner grants a neighbor the right to cross their property to gain access to a road.

Positive Easements

Positive easements allow someone to perform a specific action on another person’s property. For instance, a utility company might have a positive easement to install power lines or other utilities across a person’s property.

These easements are typically written into the property’s title and are discovered during a title search conducted by a real estate professional or title company.

Negative Easements

Negative easements, on the other hand, restrict a property owner from using their property in certain ways.

This could involve environmental regulations, zoning laws, or deed restrictions. For instance, a negative easement might prevent a property owner from building certain structures on their land.

Creation of an Easement

By Written Agreement

A property owner may agree to give another person or entity an easement over their property. This agreement should be in writing to be enforceable.

By Express Grant in a Deed

An express grant is a type of easement that is explicitly stated in a property’s deed. This usually happens when the property is sold, and the new owner agrees to the easement.

By Express Reservation in a Deed

This occurs when a property owner sells a part of their property but retains an easement over the sold portion.

By Condemnation

In some cases, the government may create an easement on private property for public services like power lines or roads.

By Prescription

A prescriptive easement can be established if a person uses another person’s property openly, continuously, and without the owner’s consent for a certain period.

By Necessity

These are created when a property owner needs to use a part of a neighbor’s property to gain access to their own, and there’s no alternative.

Termination of Easements

Easements can end in several ways, such as through an agreement between the parties, by law, or by the purpose of the easement being fulfilled or no longer existing.

Understanding real estate encumbrances is crucial for both property owners and potential buyers.

They can affect property values, limit property usage, and even influence a decision to purchase a property.

Therefore, working with a knowledgeable real estate agent or professional is critical to ensure a thorough title search is done and all encumbrances are understood before any property transaction.

Liens: Encumbrances Real Estate

Description of Liens

In the world of real estate, a lien is a type of encumbrance that lays claim to an encumbered property as a security for a debt or obligation.

In simpler terms, it’s a legal claim against a property that allows a lender or creditor to recover their financial claim if the property owner defaults on their payments.

Classifying Liens

There are several ways to classify liens in real estate, and understanding each can help property owners to better manage their property ownership obligations.

Specific vs General

Specific liens are tied to a specific piece of real property. An example of this is a mortgage lien, where the property itself is collateral for the mortgage loan.

Should the property owner fail to fulfill the loan repayment, the mortgage lender has the right to seize and sell the property to recover their financial losses.

General liens, on the other hand, are claims against all of a debtor’s assets, both current and future. A tax lien is a common example of a general lien. If a property owner fails to pay their taxes, the government can place a lien on all real estate owned by that individual until the debt is paid off.

Voluntary vs Involuntary

Voluntary liens are those that the property owner agrees to, such as a mortgage lien. The owner voluntarily enters into a contract with the mortgage lender, agreeing to the lien on the property.

Involuntary liens are imposed without the consent of the property owner. These often come in the form of tax liens or mechanic’s liens, which are placed on a property when a contractor does work on the property but isn’t paid.

Creation of Liens

Liens can be created in several ways.

Contractual

Contractual liens are created through a contract between the property owner and another party. The most common example is a mortgage lien.

Statutory

Statutory liens are created by law. A tax lien is a type of statutory lien, placed on a property when the owner fails to pay their property taxes.

Equitable

Equitable liens are imposed by a court to ensure fairness, typically in cases where payment for services rendered on a property hasn’t been made.

Priority of Liens

The priority of liens determines who gets paid first when a property is sold.

Generally, the lien recorded first has priority over those recorded later.

Some liens, like property tax liens, typically take precedence regardless of when they were filed.

Understanding liens is crucial for anyone involved in real estate transactions. They can significantly impact property ownership rights and the ability to transfer property title.

Therefore, it’s essential to do your due diligence when buying or selling real estate to ensure there are no unexpected financial encumbrances.

Real Estate Tax Liens

Definition

A real estate tax lien is a legal claim against a property for unpaid property taxes. It is one of the most common types of encumbrances that ensures municipalities collect property taxes.

General (Ad Valorem) Real Estate Tax

• Ad valorem taxes are based on the assessed value of a property.
• They fund local services such as schools, roads, and public utilities.
• The homeowner pays these taxes annually.

The Ad Valorem Tax Process

Step 1: Budget and Appropriation

• Municipalities determine their budgetary needs.

Step 2: Assessment

• Properties are assessed to distribute tax obligations fairly.

Step 3: Enforcement

• Unpaid taxes result in a lien against the property.

Redemption Rights

Homeowners have a period during which they can pay the owed taxes plus interest to remove the lien.

Other Types of Property Tax Liens

• Special Assessment – For improvements benefiting the property directly, like sidewalks.
• Tax Incremental Financing (TIF) – Used to fund redevelopment in specific areas.
• Special Service Areas – Additional taxes for services benefiting a neighborhood, like security.

Other Types of Encumbrances

Mortgage Liens

• A lender places a lien on a property when a mortgage is taken out.
• If the homeowner fails to meet their financial obligation, the lender can foreclose.
• Common with almost all property purchases involving a mortgage.

Mechanic’s Lien

• Contractors can place a lien for unpaid work on a property.
• It ensures payment for services rendered.
• Examples include renovations or repairs by plumbers, electricians, or builders.

Judgment Lien

• Arises from a court ruling that awards monetary damages.
• The winning party can place a lien on the debtor’s property as a means of collection.
• Remains until the financial obligation is satisfied.

Liens Against a Deceased Person’s Estate

• Ensures debts of the deceased are paid from the estate before distribution to heirs.
• Can involve utilities, credit cards, and medical bills.

Income Tax Lien

• The government can place a lien for unpaid income taxes.
• Affects both federal and state levels.

Municipal Utilities Lien

• Local governments may place liens for unpaid utility bills.
• Common utilities involved include water, sewer, gas company, and electric company services.

LIS Pendens – Pending Litigation

• Indicates litigation involving the property is pending.
• Alerts potential buyers to ongoing legal disputes.

In addition to these specific liens, it’s crucial to be aware of other encumbrances like restrictive covenants, which limit how a property can be used (e.g., HOA rules), and easements, which grant others a legal right to use a part of the property (e.g., a neighbor’s fence crossing a person’s property lines).

Title insurance is often purchased to protect against unforeseen encumbrances.

Understanding the various types of liens and encumbrances is essential for anyone involved in real estate transactions. These legal claims can significantly affect the ownership and use of property, and being well-informed can help navigate the complexities of buying, selling, or owning property.

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REAL ESTATE AGENT / DEFINITIONS

Author: Joe Stephenson REALTOR®

What is a Listing in Real Estate?

When it comes to the real estate industry, one term you’ll often come across is “listing”. But what is a listing in real estate?

Listing Real Estate Definition

A real estate listing refers to a property that is for sale, lease, or rent and is represented by a real estate agent or broker.

Real estate professionals use listings to organize properties in an alphabetical listing to streamline the process for home buyers and sellers.

An exclusive authorization often requires an employment contract with a buyer’s agent to manage the home sale for a specific period, during which they can accept offers.

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Table of Contents

• Definition
• What is a Listing Agreement?
• Types of Listings
• Buyer Agency Agreements
• How to Create a Listing
• How to Terminate a Listing

What is a Listing Agreement?

In the broadest sense, a listing is an agreement between a property owner and a real estate broker. This agreement authorizes the broker to act on behalf of the owner in the sale or lease of a property. Some properties can have multiple real estate agents, co-listers, and more. Let’s learn more about it.

Types of Listings Agreements

There are several types of real estate listings agreements, each with its own specific terms and conditions.

Buyer Agency Agreements

Types

• Exclusive Buyer Agency Agreement – The buyer works exclusively with one broker.
• Exclusive Agency Buyer Agreement – The buyer works with one broker, but if they find a property independently, they don’t have to pay the broker.
• Open Buyer Agency Agreement – The buyer can work with multiple brokers and only pays the broker who finds the property they purchase.

Information Included in Buyer Agency Agreements

• The Term of the Agreement – How long the agreement is in effect.
• General Characters of the property being sought by the buyer – Details about the type of property the buyer is looking for.
• A list of the broker’s duties during the term of the agreement – What the broker is expected to do under the agreement.
• Compensation and Method of Payment – How much and how the broker will be paid.

Whether you’re a buyer, seller, or aspiring real estate agent, understanding these terms can help you navigate the real estate market more effectively.

How to Create a Listing

Creating a real estate listing is a crucial step for any real estate agent looking to sell a residential real estate property (or any other type for that matter). Here’s a basic guide to help you through the process. If you have any specific questions, remember you can speak to your broker for guidance.

Step 1). Establish an Agency Relationship

As a real estate agent, your first step will be to establish an agency relationship with the seller. This relationship is typically established through a listing agreement, which outlines your responsibilities and duties to the client.

Step 2). Gather Information about the Property

Visit the property and gather all necessary information. This includes details about the property’s size, number of rooms, unique features, and any recent renovations or upgrades.

Step 3). Set a Price

After gathering all the information, set a price for the property. To do this, you can compare similar properties in the area, consider the condition of the property, and take into account any price changes in the market.

Step 4). Prepare the Listing

Now, it’s time to prepare the listing. Include all the information gathered about the property and make sure to highlight its selling points to attract potential buyers. Photos and videos are crucial here; they allow buyers to visualize the property before visiting it. This is why it’s important to choose the best camera for real estate photography.

Step 5). Post the Listing

Once the listing is prepared, post it on various platforms where potential buyers are likely to see it. This could include your company’s website, national association websites, or other real estate listing sites.

How to Terminate a Listing

There may come a time when you or your client want to terminate a listing. The process can vary depending on the specifics of the contract, but here’s a general guide.

Step 1). Review the Listing Agreement

The first step in terminating a listing is to review the agreement you have with the seller. This document should outline the terms and conditions under which the listing can be terminated.

Step 2). Communicate with the Seller

If you’re the one initiating the termination, communicate your intentions clearly with the seller. Explain your reasons and reassure them that their best interests remain a priority.

Step 3). Prepare a Termination Agreement

Once both parties agree to terminate the listing, prepare a termination agreement. This document should state that all obligations under the original listing agreement are now void.

Step 4). Submit the Termination Agreement

Submit the termination agreement to either the broker or your company for approval. Once approved, provide a copy to the seller.

Step 5). Remove the Listing

Remove the property from all platforms where it was listed. This signals to potential buyers that the property is no longer available for sale.

Terminating a listing is a serious matter and should not be taken lightly. It’s always advised to consult with your broker if you’re unsure about any part of the process.

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As real estate agents and REALTORS®, it’s our duty to ensure the best outcome for our clients, whether their properties are sold or removed from the market.

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REAL ESTATE AGENT / DEFINITIONS

Understanding Agency Relationships in Real Estate

By: Joe Stephenson REALTOR®

Table of Contents

1. What is Agency is Real Estate?
2. Types of Agency
3. Differences
4. Common Types
5. NAR Designations
6. Dual Agency
7. Duties
8. Contact

Definition

Agency in real estate refers to the relationship between a real estate professional and their client.

This relationship authorizes the agent to act on behalf of the client during a real estate transaction.

Key aspects of this relationship include the following.

• The agent owes fiduciary duties to the client, such as loyalty and confidentiality.
• This relationship can be established through an agreement, which could be written or implied.
• Agency relationships can vary, with different agency relationships offering distinct levels of responsibility and authority.

Types of Agency in Real Estate

• Single Agency: Within this arrangement, a real estate professional, either an agent or broker, exclusively represents one party in the transaction – it could be the buyer or the seller. This person could serve as an agent for the buyer or the seller.
• Dual Agency: Unlike single agency, in a dual agency relationship, a licensed real estate agent or broker represents both the buyer and the seller in the same transaction. This requires written consent from both parties and can lead to conflicts of interest.
• Designated Agency: In a designated agency, two agents from the same brokerage firm represent the buyer and the seller separately. Each designated agent provides guidance and representation to their respective client throughout the selling process.
• Sub Agency: A sub agency occurs when a real estate agent isn’t the listing broker but still brings a buyer to the table. The sub agent generally works with the buyer but owes fiduciary duties to the seller.
• Universal Agency: A universal agent has broad authority to act on behalf of their client, given through a power of attorney. This type of agency is not common in real estate business.
• General Agency: A general agency relationship often exists between brokers and their agents. The licensed agents are authorized to represent their broker in real estate transactions.
• Special Agency: A special agent is authorized to perform a specific duty for their client. In real estate, this usually involves a broker helping a client to buy or sell property.
• Seller (Listing) Agents: Seller agents, also known as listing brokers, represent the seller in a real estate transaction. They help set the sales price, market the property, and negotiate deals.
• Buyer’s Agents: Buyer’s agents represent the buyer in a real estate transaction. They help find properties, negotiate deals, and guide buyers through the purchasing process. The buyer’s agent’s commission is usually paid by the seller.

• Exclusive Agent: An exclusive agent represents either the buyer or the seller exclusively in a real estate transaction. This agency relationship is established through a written agreement.
• Non-Agency (Transaction Broker): Unlike real estate agents in agency relationships, non-agents do not represent either the buyer or the seller. They facilitate the transaction and help both parties with the necessary paperwork.

Please note that agency laws may vary by state, and an agency disclosure form is typically provided to clients to clarify the agency relationship.

All real estate agents and brokers involved should hold a valid professional license.

The Difference Between a Broker vs. Real Estate Agent vs. Realtor

In the real estate industry, it’s essential to understand the difference between a broker, agent, and Realtor.

• A real estate agent is a certified professional who aids clients in the process of purchasing or selling real estate properties.
• A real estate broker has completed additional training and can own or manage a real estate firm.
• A Realtor is a real estate professional who is a member of the National Association of Realtors (NAR) and adheres to its strict code of ethics.

Real Estate Broker

A real estate broker is a professional who has obtained a broker’s license following extensive training and examination. Brokers can work independently or hire agents to work for them. Their responsibilities typically include:

• Overseeing real estate transactions.
• Negotiating sales prices.
• Ensuring all parties involved in the transaction meet their obligations.

Special Agents

In real estate, special agents are authorized to perform specific tasks for their clients. They have limited authority and their agency relationship ends once the task is complete. Examples of special agents include:

• Listing agents: These agents represent sellers and are responsible for marketing the property and negotiating the best price.
• Buyer’s agents: These agents represent buyers and are tasked with finding suitable properties and negotiating favorable purchase terms.

Common Types of Real Estate Agents

There are various types of real estate agents, each specializing in different areas of the real estate market. These include:

• Seller’s agents: Also known as listing agents, they represent the seller in a real estate deal.
• Buyer’s agents: They represent the buyer and help them navigate the buying process.
• Dual agents: These agents represent both the buyer and seller in the same transaction.

What is a Seller’s Agent?

A seller’s agent, or listing agent, represents the seller in a real estate transaction. Their main role is to market the property and negotiate the best possible price for the seller. Their responsibilities include:

• Listing the property on multiple listing services.
• Marketing the property to prospective buyers.
• Negotiating the terms of sale with the buyer’s agent.

What is a Buyer’s Agent

A buyer’s agent represents the buyer in a real estate transaction. They are tasked with finding suitable properties that meet the buyer’s needs and budget. Their duties include:

• Searching for properties that match the buyer’s criteria.
• Arranging property viewings.
• Negotiating the purchase price with the seller’s agent.

General Agents

General agents have broad authority to act on behalf of their clients over an extended period. This could include managing a client’s property or entire real estate portfolio. Responsibilities of a general agent often include:

• Making financial decisions related to the property.
• Hiring property managers or other necessary personnel.
• Overseeing property maintenance and repairs.

Universal Agents

Universal agents have the most comprehensive level of authority in agency relationships. They can make all decisions and take all actions that the principal could take themselves.

• Making all real estate decisions on behalf of the client.
• Managing all aspects of the client’s real estate portfolio.
• Making financial decisions on behalf of the client.

NAR Designations

NAR designations are professional certifications awarded by the National Association of Realtors. These designations acknowledge agents who have completed additional training in specific areas of real estate. Some NAR designations include the following.

• Accredited Buyer’s Representative (ABR)
• Certified Residential Specialist (CRS)
• Seller Representative Specialist (SRS)

Dual Agent vs. Designated Agent

Dual agency occurs when a real estate agent represents both the buyer and seller in the same transaction. A designated agent, on the other hand, represents only one party in a transaction. Key differences include:

Dual agents must balance the interests of both parties, which can lead to conflicts of interest.

Designated agents owe their fiduciary duties to one party, ensuring more focused representation.

Why You Should Avoid Dual Agency as a Buyer or Seller

Dual agency can bear inherent risks due to the possible conflicts of interest, as the agent is obliged to act in the best interests of both the seller and purchaser.

Here are some reasons why dual agency might be best avoided.

• Lack of advocacy: A dual agent cannot advocate fully for either party.
• Limited negotiation: Dual agents cannot negotiate price or terms aggressively on behalf of either party.

Specialized Real Estate Professionals

The real estate industry includes professionals who specialize in different areas. These can include:

• Property managers: They manage rental properties on behalf of landlords.
• Commercial real estate agents: They specialize in commercial properties.
• Real estate appraisers: They determine the market value of properties.

What is a Facilitator, Non-agency or Transaction Brokerage

A facilitator, also known as a non-agent or transaction broker, assists both the buyer and seller in a real estate transaction without representing either party. Their role involves:

• Assisting with paperwork and administrative tasks.
• Ensuring the transaction process runs smoothly.
• Providing objective advice and information to both parties.

Principal’s Duties to the Agent

In a real estate agency relationship, the principal also has duties to the agent. These include:

• Cooperation: The principal should work with the agent to achieve their mutual goal.
• Compensation: The principal agrees to pay the agent for their services.
• Indemnification: The principal should protect the agent from financial loss due to the principal’s actions.

Protecting Your Best Interests With Representation

Having representation in a real estate transaction can protect your best interests. Here’s why:

• Expertise: Real estate professionals have the knowledge and experience to navigate the complex real estate market.
• Negotiation: Agents can negotiate on your behalf to secure the best terms and price.
• Peace of mind: Knowing you have a professional looking out for your interests can make the process less stressful.

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REAL ESTATE AGENT / DEFINITIONS

By: Joe Stephenson REALTOR®

Table of Contents

1. What is a transaction coordinator?
2. Roles and Duties
3. Examples of Transaction Fees
4. Benefits
5. Transaction Coordinator vs. Real Estate Agent
6. Common Issues
7. Transaction Fee vs. Broker Service Fee
8. Contact Us

Definition

A transaction coordinator in real estate is a neutral third party who helps navigate the complexities of a real estate deal.

This professional provides much-needed administrative assistance throughout the home buying and selling process. Here are some key points.

• They focus on coordinating with all parties involved in the transaction.
• They handle the lengthy paperwork involved with a real estate sale.
• They are responsible for all of the communication and documentation involved in a real estate transaction.
• They help both the buyer and seller through the entire real estate transfer process.

Role and Duties of Transaction Coordinators

The role of a transaction coordinator is to streamline every step of a real estate transaction, from the contract to closing.

Their duties typically include the following.

• Processing paperwork and ensuring all documents meet regulatory requirements.
• Communicating with all parties involved, including the title company.
• Meeting deadlines and keeping track of important dates.
• Coordinating inspections, appraisals, and other necessary appointments.

Examples of Transaction Fees

Transaction fees are costs incurred by the buyer or seller for the actual services rendered by the transaction coordinator.

Here are some examples.

• Administrative fees: These fees cover the cost of document storage and processing paperwork.
• Broker service fees: These are fees that many real estate brokerages charge to offset costs.
• Other fees: These may include costs for courier services, notary services, or other necessary tasks.

Benefits of a Transaction Coordinator

Having a transaction coordinator can offer numerous benefits for both buyers and sellers.

• Time-saving: They take care of all the administrative tasks, freeing up time for the client.
• Error reduction: They ensure all paperwork is filled out correctly and submitted on time.
• Smooth process: They keep everything on track, making the home buying or selling process less stressful.

How Brokerages Make Their Money

Real estate brokerages make their money in several ways. Here are a few examples:

• Commissions: These are paid by the seller and split between the seller’s agent and buyer’s agent.
• Transaction fees: These are fees paid by either the buyer or seller for services rendered.
• Recruiting agents: Some brokers tie their earnings to the number of agents they recruit.

What Does a Transaction Coordinator Cost?

The cost of a transaction coordinator can vary, but they typically bill a flat fee for their services.

This fee covers all the administrative tasks they perform and is usually paid at closing.

Factors that can influence the cost include the following.

• The complexity of the transaction.
• The amount of paperwork involved.
• The region or market in which the property is located.

Transaction Coordinator vs. Real Estate Agent

While both play crucial roles in a real estate transaction, there are notable differences.

• A real estate agent focuses on finding or selling property for their clients.
• A transaction coordinator handles the administrative tasks involved in a transaction.
• An agent negotiates the deal, while a coordinator ensures the deal goes through smoothly.

Common Issues with Transaction Coordinators

Like any profession, there can be issues with transaction coordinators.

• Miscommunication: This can lead to missed deadlines or errors in paperwork.
• Inexperience: A less experienced coordinator may not handle complex transactions smoothly.
• Overbooking: If a coordinator takes on too many clients, it can lead to delays and mistakes.

Difference Between Transaction Fee vs Broker Service Fees

A transaction fee and a broker service fee are two distinct costs in real estate transactions.

The transaction fee, often paid by either the buyer or seller, is related to the administrative tasks involved in closing a real estate deal, such as document processing and storage.

On the other hand, a broker service fee, also known as an administrative fee, is a charge that many real estate agents and brokerages levy to cover costs associated with providing their services.

For example, if a house is sold for a high price, the seller’s agent might pay the transaction fee, considering it a small expense relative to the large commission they receive.

However, in cases where home prices are lower, this extra fee might be passed on to the client.

It’s important to note that these fees should be tied to actual services rendered and costs incurred, as advised by the National Association of Realtors.

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