What is a no brokerage relationship?

A no brokerage relationship or non representation takes place when the broker is not directly involved in buying or selling of the property. he/she just facilitates the listing of the property for which he/she can be paid a certain amount.

In a no brokerage relationship, the broker has to be honest and perform his duties with loyalty. He/she must chart out all the details of the property and not keep the information to himself or herself.

The broker in this arrangement is paid the pre-decided amount. Usually, the party and broker sign a document beforehand about the finances which will be paid to the broker if the job is done. As soon as the party avails facilities during the transaction, they have to pay the said amount to the broker.

I hope now you know what is a no brokerage relationship.

When I was looking for a property, I kept seeing the phrase "no brokerage relationship". But what does no brokerage relationship mean? Initially I thought it meant that no brokers were involved at all. However, after some research and firsthand experience, I discovered that it's actually a legal phrase that refers to a particular type of relationship between myself and a real estate agent. This relation is one that provides neither personal representation nor loyalty.

When there is no brokerage relationship, the agent or broker:

1. does not speak for me personally.

2. is not required to behave in my best interests.

3. only offers limited, basic services.

4. must be truthful and reveal information that is known.

5. cannot provide guidance or assistance with negotiations

An official (trusted) relationship is not established; the broker's role is essentially limited to facilitating the transaction. I discovered that I needed to be extra attentive in these kinds of circumstances, carefully examining documentation and not thinking the broker was "on my side." This configuration is common when working directly with developers or sellers.

Get a Property without Paying LAKHS on Brokerage Via NoBroker Buyer Plan

Read More:

How to Avoid Brokerage Problem?

A brokerage relationship in real estate is a relationship between buyer and broker who helps the buyer to get his/her dream house. There are various types of brokerage relationships and the most common relationship is No brokerage relationship. Now as a buyer you must be thinking what is a no brokerage relationship. Here I have described about no brokerage relationship.

• No  Brokerage relationship is a term when the seller or the buyer choose not to represent to the broker.

• A broker working on the no brokerage relationship can enter a listing agreement and get paid by both the parties seller and buyer.

• Deal with honesty

• Disclose all the facts to the buyer that may affect his/her deal. 

• Should be honest and not take bribes from the buyer to coat the high price of the property.