| A real estate broker performs a variety of | | | | protected classes of people (minorities, for |
| functions to facilitate the consummation of a | | | | example) in providing services or in |
| real estate sales transaction between a buyer | | | | advertising, they may not attempt to direct |
| and a seller. A real estate broker usually | | | | potential buyers to particular areas based on |
| works for the seller, not the buyer. Perhaps | | | | their race, and they may not attempt to |
| the most important among her functions is to | | | | trigger "panic sales" by spreading rumors in |
| locate a potential buyer for the seller and | | | | a particular neighborhood that people of the |
| solicit that buyer to make an offer to buy | | | | "wrong" color are moving in. Federal and |
| the property. A real estate broker does not | | | | state civil rights statutes govern these |
| "make an offer" to sell the property on | | | | obligations. |
| behalf of the seller and is not entitled to | | | | |
| enter into real estate sales contracts with a | | | | (2) They may not practice law (unless they |
| buyer as the seller's agent. Real estate | | | | are licensed attorneys). Statutes prohibiting |
| brokers earn commissions by introducing | | | | the unauthorized practice of law govern here. |
| potential buyers to sellers of real estate. | | | | Generally, that means they may not draft |
| If the buyer makes a purchase offer, the real | | | | contracts, mortgages, deeds, etc. In many |
| estate broker earns a commission whether or | | | | states, however, they may fill out standard |
| not the seller accepts the offer. | | | | legal forms that are related to their |
| | | | services. Traditionally, the presence of a |
| There are two contracts typically used in | | | | licensed attorney was required at every real |
| real estate sales transactions - the contract | | | | estate closing, but now some states are |
| between the seller and the real estate broker | | | | allowing closings to be performed without the |
| setting forth the terms on which the broker | | | | presence of a lawyer. |
| will earn a commission (the "listing | | | | |
| agreement"), and the contract between the | | | | (3) They may not engage in price fixing or |
| seller and the buyer for the sale of the real | | | | other anti-competitive behavior that violates |
| estate. | | | | antitrust law. |
| | | | |
| Real estate brokers are subject to a number | | | | DISCLAIMER: The following is intended for |
| of legal obligations: | | | | reference purposes only and not as legal |
| | | | advice. |
| (1) They may not discriminate against | | | | |