Brokerage: General Issues and Relevant Topics

Summary

This practice note discusses licensing requirements for real estate brokers, general issues relating to real estate brokerage, and provides an introduction to the most common types of brokerage agreements. In most jurisdictions, only licensed persons (including real estate brokers and real estate sales agents acting under a real estate broker, or other more specialized licenses recognized by the applicable state) are permitted to provide services in connection with buying, selling, leasing (including subleasing, tenant relocation or an assignment of a leasehold interest), exchanging, auctioning or otherwise transferring any interest in real estate (as used herein, "Real Estate Transactions"), with limited exceptions, such as owners, attorneys, receivers or bankruptcy trustees and public officials. The following tasks related to Real Estate Transactions may be considered real estate brokerage services, requiring the applicable license in order to perform the same: