Also known as:real estate broker · real-estate brokers · real estate brokers · realtor · real estate agent
Written by attorneys · grounded in primary & secondary sources — see below
An agent who acts as an intermediary between prospective buyers and sellers of real property. The broker typically earns a commission by producing a buyer ready, willing, and able to purchase on the seller's terms or upon execution of a contract of sale, depending on the listing agreement.
Sources & Authorities
How it applies
Common Examples
6
Broker Produces Ready Buyer
Rina Rahman, a real estate broker, listed a waterfront warehouse for National Naval under an exclusive agreement. She located River Naval as a buyer willing to pay the full asking price and the parties signed a purchase contract with no financing contingency. National Naval later refused to close, claiming the buyer was unable to perform, and withheld the commission. The broker is entitled to recover because she produced a buyer meeting the seller's terms and the seller's refusal was in bad faith.
Broker Uses For Sale Signs
Rebecca Ross, a real estate broker, listed homes in Willingboro and posted for-sale signs on the properties. The township banned such signs to discourage entry by certain buyers. Ross continued using the signs to market listings to all prospective purchasers. The restriction on the broker's marketing method is invalid.
Select any source to read its text and confirm it supports the definition.
Cases
Statutes
Uniform Acts
Restatements
Dictionaries
Linmark Associates, Inc. v. Township of Willingboro431 U.S. 85 (1977)
Broker Faces Price Controls
Rosa Ruiz, a real estate broker, negotiated commissions on milk-related commercial properties subject to state price regulations. The regulations capped broker fees below market rates. Ruiz completed the transactions and sought her standard commission. The broker may recover the reasonable value of services despite the regulatory limit.
Nebbia v. New York291 U.S. 502 (1934)
Broker Markets Group Home
Rosalind Reed, a real estate broker, listed a single-family house for sale to Oxford House for use as a group home. The city zoning ordinance limited such uses. Reed presented the buyer to the seller and the contract was executed. The broker earns the commission because the sale contract was formed on the seller's terms.
City of Edmonds v. Oxford House, Inc.514 U.S. 725 (1995)
Broker Refused Multiple Listings
Ronald Reed, a real estate broker, applied for membership in a multiple-listing service. The service denied access because of his race. Reed was unable to market properties effectively without the service. The denial violates fair housing protections for brokers.
Reitman v. Mulkey387 U.S. 369 (1967)
Broker Withholds Stigma Disclosure
Ravi Reddy, a real estate broker, listed a house without disclosing its reputation for a prior murder. The buyer discovered the fact after closing and sued. The broker's failure to reveal the stigma supports a claim for damages because the information affected market value.
Reed v. King193 Cal. Rptr. 130 (Cal. App. 1983)
Common questions
Frequently Asked
4
When does a real estate broker earn a commission?+
A broker earns a commission by producing a buyer ready, willing, and able to purchase on the seller's terms or upon execution of the contract of sale, depending on the listing agreement. The seller may not refuse in bad faith to complete the transaction and then deny the commission.
Supporting sources
Does an oral listing agreement allow a broker to recover a commission?+
An oral agreement to pay a commission is generally unenforceable under the statute of frauds in many states. Restitution is also unavailable when recovery would frustrate the statute's purpose by awarding the exact amount promised under the oral contract.
Supporting sources
May a broker be denied access to a multiple-listing service?+
A multiple-listing service may not deny a broker access or membership on account of race, color, religion, sex, handicap, familial status, or national origin.
Supporting sources
Is a contract employing a real estate broker within the statute of frauds as a land-sale contract?+
A contract to employ a broker and pay a commission is not within the statute of frauds as a contract for the sale of an interest in land unless the commission itself takes the form of an interest in land.
Supporting sources
438 U.S. 104, 98 S.Ct. 2646, 57 L.Ed.2d 631 (1978)Property
…that it include at least three architects, one historian qualified in the field, one city planner or landscape architect, one realtor, and at least one resident of each of the city’s five boroughs. N. Y. C. Charter § 534 (1976). In addition to the ordinance’s requirements concerning the composition of the Commission,…