What is A Broker of Record? |
The term "broker of record" can describe multiple functions in real estate.
1. Broker of Record can be the top level licensed real estate broker of a firm who is ultimately responsible for all licensed real estate agents involved in the brokerage whether representing buyer or seller real estate transactions. In some states this is also called "designated broker," "Principal Broker" or "Broker in Charge." Regardless, Brokers of Record typically supervise all actions a brokerage takes.
2. Broker of Record could also mean the main broker for a transaction. When an out-of-state broker works with an in-state broker on a specific transaction, the in-state broker is the Broker of Record for that transaction because the in-state broker is the only broker legally able to be paid.
When transacting in another state, an out-of-state broker would use an (in-state) Broker of Record in that State to transact a deal.
