In Maine, every real estate licensee must clearly understand the role they are serving in a transaction. A licensee may act as a seller's agent, buyer's agent, disclosed dual agent, transaction broker, or subagent. The role is established after reviewing the Maine Real Estate Brokerage Relationships Form and discussing representation options with the consumer. Here's an important point many licensees overlook: No written brokerage agreement? No client relationship. |
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As a Transaction Broker, you represent neither party. Your duties include honesty, accounting, disclosure of material defects, and performing ministerial acts necessary to facilitate the transaction. However, you do not provide fiduciary representation, confidential advice, advocacy, or information analysis on behalf of a consumer. A consumer who has not signed a brokerage agreement remains a customer, not a client. This distinction matters because client representation in Maine cannot be created verbally, implied through conduct, or assumed by either party. Representation exists only through a written brokerage agreement. Understanding when someone is a customer versus a client helps protect consumers, reduces risk, and keeps licensees in compliance with Maine law.
| Friday Finding: No written brokerage agreement? No client relationship. If you're providing brokerage services without representing the consumer, Maine law presumes the brokerage agency is acting as a Transaction Broker - subject to your company's policies. Know your role before you provide the service. Reference: Maine Revised Statutes, Title 32, Chapter 114, §§ 13177-A, 13282–13283 |
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