A real estate broker is a licensed professional who has completed advanced education and state licensing requirements beyond those of a standard agent, granting them the legal authority to operate an independent real estate business and supervise other agents.
In transactions, brokers may represent buyers or sellers directly or oversee a team of agents working under their license. Their elevated credentials carry greater legal and ethical responsibility, particularly around contract compliance, escrow handling and agency disclosure. A broker of record is often the accountable party when disputes or licensing violations arise.
Loan originators may encounter broker-of-record information during transaction review, particularly in complex or multi-party deals. Appraisers and valuation professionals should understand that brokerage relationships, including in-house transactions where the same brokerage represents both sides, can be a relevant factor when evaluating whether a sale reflects open-market conditions.