Hundreds of thousands of real estate transactions are recorded every day. Despite the frequency with which they occur, these transactions are usually very complex. Potential agents must be qualified and licensed by the state or districts where they plan to conduct business. Licensed agents or brokers are generally used to represent a specific party in a transaction that involves the purchase or sale of real property. An agent assigned to a particular service or contract is called the broker of record (BOR). These specialized agents are in increasingly high demand in apartment management. Here are three common ways apartment management professionals use a broker of record.
1- Buyers and Owners
A broker of record may be called upon to represent a potential buyer, acting as a crucial advocate and intermediary in the complex world of real estate transactions. This is more common in densely populated urban and suburban areas. Brokers can negotiate pricing and submit contracts or purchase agreements on behalf of their clients. Additionally, brokers can assist their clients throughout the search for a perfect property. Experienced brokers have a well-established network of professional relationships and have insight into upcoming vacancies and property listings.
2- Building Developers
Brokers of record may work independently with or be employed by property developers. New residential, commercial, or mixed-use developments are successful when they have a high percentage of expected occupancy upon opening. Assigned brokers may align with marketing campaigns and sales professionals to ensure high occupancy. These activities are often planned even before groundbreaking begins. Real estate professionals such as a BoR have the knowledge and capacity to effectively communicate the benefits and potential of a new company under development. They can represent developers in local real estate markets to facilitate transactions with potential tenants or property managers.
3- Property Management
Some brokers may work exclusively with or as a buyer and seller dual agent. Because a broker of record must identify with whom they agree, all parties are aware and can be assured that due diligence is performed on both sides of the transaction. When it comes to apartment management companies, high-volume transactions are to be expected. Experienced brokers can quickly identify the potential for a new contract or series of contracts and swiftly represent the apartment management organization by closing out transactions and recoding all necessary documents with local agents.
A growing number of apartment management professionals rely on a staff that contains one or more brokers of record to act on their behalf. Real estate processes are very specific based on demographic regions, and laws could change without much notice. Because the real estate market is heavily regulated, mistakes could be costly and should not be entered without proper representation. Brokers of record can represent apartment management companies and ensure that all the details are handled promptly and in good order. Apartment management firms do not have to have a broker on staff, but many choose to keep a few in the workforce or as independent contractors.
Published by Mark V.
