Real estate broker

A real estate broker is a term in the United States and Canada that describes a party who acts as an intermediary between sellers and buyers of real estate (or real property as it is known elsewhere) and attempts to find sellers who wish to sell and buyers who wish to buy. In the United States, the relationship was originally established by reference to the English common law of agency with the broker having a fiduciary relationship with his clients. Estate agent is the term used in the United Kingdom to describe a person or organization whose business is to market real estate on behalf of clients, but there are significant differences between the actions and liabilities of brokers and estate agents in each country. Beyond the US, other countries take markedly different approaches to the marketing and selling of real property. In the US, real estate brokers and their salespersons (commonly called "real estate agents" or, in some states, "brokers")[1] assist sellers in marketing their property and selling it for the highest possible price under the best terms. When acting as a Buyer's agent with a signed agreement (or, in many cases, verbal agreement, although a broker may not be legally entitled to his commission unless the agreement is in writing), they assist buyers by helping them purchase property for the lowest possible price under the best terms. Without a signed agreement, brokers may assist buyers in the acquisition of property but still represent the seller and the seller's interests.

     Real estate economics is the application of economic techniques to real estate markets. It tries to describe, explain, and predict patterns of prices, supply, and demand. The closely related fields of housing economics is narrower in scope, concentrating on residential real estate markets as does the research of real estate trends focus on the business and structural changes impacting the industry. Both draw on partial equilibrium analysis (supply and demand), urban economics, spatial economics, extensive research, surveys and finance.

Buyer brokerage

    A buyer brokerage or buyer agency is the practice of real estate brokers and their agents representing a buyer in a real estate transaction rather than, by default, representing the seller either directly or as a sub-agent. In the United Kingdom and Australia, the most common term is buying agent.In most U.S. states and Canadian provinces, until the 1990s, buyers who worked with an agent of a real estate broker in finding a house were customers of the brokerage, since, by most common law of most states at the time, the broker represented only sellers. It is only since the early 1990s that states passed statute law to create buyers' agency.Buyer agency can exist exclusively (where a brokerage firm chooses to only represent buyers and never sellers, as an exclusive buyer agent) or, in a full service company, by offering buyer agency to buyers who become clients. Buyers would have to agree to some form of dual agency in the event that they wished to buy a home which that company has listed for sale and for which it represents the seller.Today, if the buyer is working with a broker other than the brokerage listing the property, he or she may choose to enter into a buyer-brokerage agreement to be represented. (In some cases where dual agencyis permitted by law, even the listing broker may represent the buyer). If the buyer does not enter into this agreement, he/she remains a customer of the broker who is then the sub-agent of seller's broker.Contents [hide]1 Buyers as clients2 Buyer agency agreements3 See also4 Notes5 External links[edit]Buyers as clientsWith the increase in the practice of buyer agency in North America, especially since the late 1990s in most areas, agents (acting under their brokers) have been able to represent buyers in the transaction with a written "buyer agency agreement" not unlike the "listing agreement" between brokers and sellers (often referred to as a sellers agency). The real estate licensee, upon entering into a written agreement with a buyer, agrees to work solely for the buyer and in return, the buyer agrees to exclusive representation.
At this point, a real estate brokerage owes the buyer the duties of:Loyalty to the buyer by acting in the buyer's best interest.Confidentiality by not disclosing facts that could influence the buyers ability to negotiate the best terms.Disclosure to other parties in the transaction that the licensee has been engaged as a buyer's agent.The broker negotiates price and terms on behalf of the buyers and prepares standard real estate purchase contract by filling in the blanks in the contract form. The buyer's agent acts as a fiduciary for the buyer[edit]Buyer agency agreementsLike the listing agreement with sellers, the agreements with buyers must have a starting and ending date as well as specifying how the buyer's broker is to be paid (by the seller or by the buyer himself). In addition, it should spell out the duties and obligations of all parties.The agreement should also specify how a conflict of interest will be handled. A conflict of interest can occur when a buyer represented by a conventional firm becomes interested by a seller who is also represented by that firm.Another potential conflict of interest can occur when the same firm finds itself representing two buyers who are competing for the same property.A real estate agency should have a written, objective policy for how it will handle conflicts of interest and this policy should be disclosed to any potential client in advance.

Real estate development

    Real estate development is a multifaceted business, encompassing activities that range from therenovation and re-lease of existing buildings to the purchase of raw land and the sale of improved parcels to others. Developers are the coordinators of the activities, converting ideas on paper into real property. They create, imagine, fund, control and orchestrate the process of development from the beginning to end. Developers usually take the greatest risk in the creation or renovation of real estate—and receive the greatest rewards. Typically, developers purchase a tract of land, determine the marketing of the property, develop the building program and design, obtain the necessary public approval and financing, build the structure, and lease, manage, and ultimately sell it. Developers work with many different counterparts along each step of this process, including architects, city planners, engineers, surveyors, inspectors, contractors, leasing agents and more. In the Town and Country Planning context of the UK, 'development' is defined in the Town and Country Planning Act 1990 s55.