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