What is required by law when transitioning to a transaction broker?

Transitioning to a transaction broker requires a written disclosure and consent from the principal. This ensures that all parties involved understand the role of the transaction broker and the responsibilities that come with it. A transaction broker acts as a neutral facilitator in a real estate transaction, providing no fiduciary duties to either party, which necessitates clear communication and agreement from the principal.

Having a written document serves multiple purposes: it provides evidence that both parties are aware of and agree to this change in representation, it helps protect the transaction broker from potential conflicts of interest, and it fosters transparency throughout the real estate transaction process. This requirement aligns with the legal standards governing real estate practices, ensuring that principals are fully informed and consenting to the change in their representation.