Definition of "Cooperating broker"

Christiana  Aldag real estate agent

Written by

Christiana Aldagelite badge icon

Voro Llc

A cooperating broker or agent defines a real estate broker who helps another broker in a private property transaction. Typically, the cooperating broker represents the seller and is responsible for finding a buyer. The client will offer to purchase real estate, which, however, was listed with a different listing broker

Assisting brokers can also represent buyers, tenants, or even landlords. In short, they facilitate the sale and purchase of a house. 

Cooperating broker’s compensation

Cooperating agents receive their commissions after the closing day. Generally, cooperating brokers don’t sign a contract with the seller, so they have no contractual relationship. By definition, the cooperating broker can’t ask for a commission from the seller, only the listing broker or agent. 

Listing brokers negotiate with property sellers about their share after a successful sale. After negotiations, they sign the listing agreement. For this reason, listing brokers have the upper hand in determining the amount of compensation for cooperating realtors, either in the form of a substantial sum or percentage from the sale.  

In other words, terms of payments and premiums should be stipulated in an agreement with the listing broker. Negotiations between the listing and cooperating brokers should not affect thecontract between the broker and the seller.

 

Need help as a:

I'm interested to:

Buy
Sell
Rent

I work in:

Residential
Commercial
Rental
Reach out to the local professionals for help
 
I agree to receive FREE real estate advice.

Agents, get listed in your area. Sign up Now!

Here's what you'll get:

1. Full zipcodes coverage for the city of your choice for 3 months

2. The ability to reach a wider audience

3. No annual contract and no hidden fees

4. Live customer support/No robo calls

$75 - Any City - 3 Months Coverage
 
loader gif

Please wait ...

I agree to receive FREE real estate advice
I agree with Terms & Conditions and Section 5-5.9.

Cooperating vs. listing brokers

As a result of nowaday’s increased buyers’ demand and a booming real estate market, a heated debate commenced centering on the topic of cooperating brokers’ fair compensation. After all, their input in finding a clientele is essential, while often listings aren’t entirely satisfactory. 

All parties agree that there are specific differences in buyers’ and listing agents’ marketing strategies. Still, a listing is an essential element of doing business in real estate.

Marketing strategies for brokers

In a digital age, practical marketing tools assist listing agents in engaging a large clientele. Still, cooperating agents can pursue leads by hosting open houses or testing creative ways to generate more leads. They will argue that they accomplished a considerable part of a successful transaction by themselves.

However, a cooperating broker is disposed to give up a part of their commission under exceptional circumstances. For example, the listing agent invested significant effort and time in marketing the property. 

Responsibilities of brokers’ involved

Local real estate agents and brokers must, under all circumstances, representtheir customers’ very best interests. A selling client has the right to be informed about the cooperating brokerage’s compensation before signing a listing contract and registering their property on the multiple listing service. In addition, cooperating brokers must not withhold relevant information from a buyer based on their payment amount. This unprofessional behavior constitutes a breach of Article 1 of the real estate Code of Ethics

Comments for Cooperating Broker

Charline Charline said:

What is the definition of a cooperating broker?

Dec 21, 2020  18:45:52

 
Real Estate Agent

Hey, Charline!

A cooperating broker finds a buyer for a property that was not listed by him. In this case, he acts as a non-listing third-party broker. This occurrence happens very frequently in the real estate industry when you hire a real estate agent or broker since it is in the broker’s interest to locate buyers for the property. The commission distribution from closing the transaction is agreed upon between the two brokers, the one listing the property and the cooperating broker.

Dec 24, 2020  08:19:58
 
Gretchen D Chatman Gretchen D Chatman said:

Who does a corporate broker represent?

Feb 16, 2020  16:07:16

 
Real Estate Agent

Hey, Gretchen! A corporate broker is not something common in the USA. It is a very UK specific role and outside of the UK it is an unfamiliar concept. Corporate brokers represent companies and their job mainly focuses on assessing market conditions, the demand for the company shares and market them to potential investors. They guarantee equity research coverage of the stock and have an advisory role in relationship with the management of the company if they want to raise capital or if the company needs a rescue rights issue.

Apr 09, 2020  12:46:15
 
 
image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Real Estate Terms

The adjudication definition is a legal ruling or judgment used in the justice system when a case is settled or finalized. To define adjudication, we must look at the justice system and how ...

A rectangular area bordered on all sides by buildings. Often, a quadrangle is grassy with decorative landscaping. A quadrangle can be found in a central business district or on the site ...

Aluminum or metal treated barrier that is placed between the concrete and wood of the foundation of a newly constructed building to prevent termites from infesting the wood. Many experts ...

The appraisal approach is used to estimate the value of an asset, based on various factors to reach the closest educated guess of the asset. While an appraisal approach does consider the ...

There’s a lot of confusion regarding the hazard insurance definition. Many people think it’s a synonym for homeowners insurance but they’re wrong. Hazard insurance is ...

Amount the taxpayer gets back when he or she files the tax return at the end of the reporting year because taxes were overpaid for that year. The tax overpayment equals the tax payments ...

Funds of property bestowed upon a person or an institution. The income is used to serve a specific purpose for which the endowment was intended. ...

Category of property zoning that designates property to be used for industrial purposes. Industrial zoning allows manufacturing, research and development purposes, factory office and ...

Part of something such as the units making up a heating or air conditioning system in a building. ...

Popular Real Estate Questions