The Brokerage Process
A broker acts as a liaison between a buyer and a seller handling all intermediary duties required to complete a sales transaction between the two parties. Brokers can be found in the fine arts, real estate, insurance and financial services industries. In all these industries, the brokerage process basics are the same.
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Framework
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The broker and client must agree on a target date for completion of the transaction and sign a contract or letter of intent outlining the specifics of the broker-client relationship.
Services
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A broker assists the sales process by working to find a buyer or a seller for their client. Offers to purchase are handled through the seller's brokerage firm. It is the duty of the broker to protect the interests of their client and to secure the best possible deal.
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Negotiation
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Negotiation is often necessary to close price gaps between the buyer and seller. A broker may need to educate one or both parties on fair market value to complete the sale.
Due Diligence
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The broker or brokerage firm must address due diligence and ensure that legal requirements are identified and addressed. These issues may range from accounting accuracy to tax liabilities. A broker must ensure all terms of the purchase agreement are met prior to the buyer taking possession.
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References
- Photo Credit contract b image by Andrey Kiselev from Fotolia.com
