Tennessee Realtor State Practice Exam

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What is the role of a transaction broker in real estate?

To represent only the seller
To facilitate the transaction without representing either party
To offer legal advice to both parties
To handle all negotiations

The correct answer is: To facilitate the transaction without representing either party

The role of a transaction broker in real estate is to facilitate the transaction without representing either party. This means that the transaction broker acts as a neutral intermediary who assists both the seller and the buyer in navigating the real estate process, ensuring that all necessary procedures are followed and that both parties have access to the information they need. Unlike a traditional broker who represents one party's interests, the transaction broker does not advocate for either the buyer or the seller; instead, they focus on ensuring a fair and smooth transaction. This impartial role allows them to provide services such as arranging showings, negotiating terms, and managing paperwork while remaining neutral. The other options suggest roles that involve partiality or expert advisory positions that are not suitable for a transaction broker's function. For instance, representing only the seller indicates a clear bias, offering legal advice implies a level of expertise beyond the transactional focus, and handling all negotiations suggests a commitment to one side, which contradicts the neutral stance of a transaction broker.