Buyer's Broker
Definition and meaning of Buyer's Broker in real estate.
A buyer's broker is a licensed real estate broker who represents a buyer in a transaction and holds a higher-level broker license, allowing them to manage their own firm or employ other agents.
In more detail
While a buyer's agent works under a supervising broker, a buyer's broker can work independently or run an entire brokerage that represents buyers. They owe fiduciary duties exclusively to the buyer, including loyalty, confidentiality, and full disclosure. These brokers assist with property searches, evaluation, negotiation, and closing logistics.
Compensation typically comes from the transaction commission split, though some brokers charge flat fees or retainers directly to the buyer depending on their service agreement.
Key facts
| Category | Buying & Selling |
|---|---|
| Also known as | Buyer's representative |
| Who pays | Often paid via commission split from the seller, or directly by the buyer |
| Required by | Buyers seeking direct representation from a brokerage owner |
An investor hires a buyer's broker who owns an independent brokerage to represent them in purchasing a multi-unit apartment complex.
Frequently asked questions
What is the difference between a buyer's agent and a buyer's broker?
A buyer's broker holds a broker's license and can operate independently, whereas a buyer's agent must work under a broker.
Does a buyer's broker have fiduciary duties?
Yes, they owe full fiduciary duties to the buyer, including confidentiality, loyalty, and reasonable care.