Table of Contents
- Real Estate Transaction Coordination and Agency
- Agency Requires a License
- What a Transaction Coordinator Can and Can’t Do and Why
- AgentUp’s Real Estate Transaction Coordination
Real estate transaction coordination is a crucial aspect of any property sale, encompassing the finalization of the sales contract.
Ready to hand off your real estate paperwork, but unsure what a transaction coordinator can legally handle? Understanding the difference between an agent’s role and that of a TC is crucial for a smooth and compliant transaction.
This post highlights the legal aspects of real estate transaction coordination and reviews what a transaction coordinator can and cannot do under the law.
To answer this question correctly, we must first discuss the concept of agency in real estate sales.
Real Estate Transaction Coordination and Agency👨💼
In real estate, agency is a legal relationship where a licensed real estate professional, the agent, agrees to represent a client, the principal, in a real estate transaction.
This relationship is fiduciary, meaning the agent is legally and ethically obligated to act in their client’s best interests.
An agency relationship is created through a written agreement, usually a listing agreement for sellers or a buyer agency agreement for buyers.
Once established, the agent owes their client a set of fiduciary duties. These duties form the basis of the agency relationship and include:
- Loyalty: The agent must put their client’s interests above all others, including their own
- Confidentiality: The agent must maintain the strictest confidentiality regarding all private information about their client, including financial details and reasons for buying or selling
- Disclosure: The agent must reveal all known facts that could influence the client’s decision-making process
- Obedience: The agent must adhere to all lawful and ethical instructions from the client
- Accounting: The agent must accurately account for all money and property entrusted to them
- Reasonable Care and Diligence: The agent must apply their professional knowledge and skill to offer competent advice and service
Now that you understand the basics of agency, the next topic is licensing. Every state in the US requires anyone involved in an agency relationship during a real estate sale to have a real estate license.
Agency Requires a License 🪪
A real estate license is necessary in every U.S. state to provide agency services. Real estate is regulated by state laws rather than federal laws, so each state has its own specific rules and licensing requirements.
In most states, real estate transaction coordinators are not required to hold a license.
A person must have a license to legally act as an agent, whether they are assisting a client in buying, selling, or leasing property. This is an essential legal and consumer protection measure.
The main goal of licensing is to safeguard the public. An unlicensed individual acting as a real estate agent could provide incorrect advice, mishandle a client’s funds, or commit fraud, with limited to no legal options available to the client.
The state’s licensing authority ensures that agents meet a minimum level of knowledge and adhere to ethical standards.
What Agency Allows an Agent to Do
The agency legal relationship grants a licensed real estate professional the authority to carry out a broad range of actions on behalf of their client.
Without this relationship, a real estate agent can only serve as a neutral third party, offering general information but not specific advice or representation.
Once an agency relationship is established, the licensee is empowered to:
| Negotiate on the Client’s Behalf: | The agent can negotiate prices, terms, and conditions of a sale or purchase directly with other parties. For example, a buyer’s agent can counter a seller’s offer to get a better price, or a listing agent can negotiate the closing date. |
| Conduct Research and Due Diligence: | The agent can research a property’s history, compare sales to estimate market value, and examine zoning laws or other factors that might influence the client’s decision. This is an essential part of an agent’s service, as they rely on their expertise to uncover information the client might not know. |
| Facilitate Contracts: | While an agent cannot legally draft a contract (that’s the practice of law), they can fill out pre-printed agreements and legal forms with the client’s information. They ensure that all necessary documents are properly completed, signed, and submitted promptly. |
| Provide Financial and Pricing Advice: | An agent can advise a seller on the best listing price for their property or help a buyer determine a fair offer price. This advice is based on their analysis of the market, property condition, and the client’s goals. They can also explain the financial implications of different decisions throughout the process. |
Market Leading
Real Estate Transaction Coordinators
Hand off your transactions, media, and marketing to a real estate TC.
What a Transaction Coordinator Can and Can’t Do and Why ❌✅
A transaction coordinator (TC) is a professional who handles the paperwork and logistics of a real estate deal after a contract is signed.
Unlike a licensed real estate agent, a TC does not have a legal agency relationship with the buyer or seller. Their role is to support the agent, not to represent the client.
They are an impartial party focused on the process, not on the negotiation or financial results.
What a Real Estate Transaction Coordinator Can Legally Do✅
A real estate transaction coordinator manages the behind-the-scenes administrative tasks that are essential for a smooth closing. They act as the project manager for the transaction, making sure everything stays on schedule.
The proper duties of a real estate transaction coordinator include:
- Document Management: Organizing and tracking all paperwork, including contracts, disclosures, inspection reports, and loan documents
- Deadline Tracking: Keeping track of key dates and deadlines (such as inspection periods and appraisal dates) to ensure compliance and prevent delays
- Communication: Serving as the main contact point between the agent, clients, lenders, title companies, and inspectors to share updates and coordinate tasks
- Scheduling: Arranging inspections, appraisals, and the final walk-through
- File Compliance: Ensuring the transaction file is complete and organized for the brokerage is essential for both legal and regulatory compliance
What a Real Estate Transaction Coordinator Cannot Do?❌
Since a TC is not an agent, they are legally barred from performing any activities that require a real estate license. These activities are part of the agency-client relationship.
For example, a TC cannot do the following:
- Negotiate: They cannot discuss prices, terms, or conditions with any party. This includes negotiating repairs after an inspection
- Provide Advice: They are not authorized to give legal, contractual, or financial advice. All questions needing expert opinions should be directed to the agent
- Represent a Client: They are not a fiduciary and cannot advocate for the best interests of either the buyer or the seller
- Show Properties: They cannot show homes to potential buyers or host an open house
- Answer Substantive Questions: They cannot respond to questions that require an opinion, such as “Is this a good offer?” or “What’s the best way to handle this inspection issue?”
In summary, real estate transaction coordination is not an agency relationship. Therefore, as long as a TC avoids acting in an agency capacity, there should be no legal issues.
Moreover, real estate transaction coordination is a crucial part of the industry, and skilled TCs are highly valued partners.
Finding an excellent and affordable real estate transaction coordinator can be difficult. We have a recommendation that can assist.
Market Leading
Real Estate Transaction Coordinators
Hand off your transactions, media, and marketing to a real estate TC.
AgentUp’s Real Estate Transaction Coordination ⭐
Elevate your real estate business with AgentUp’s outstanding transaction coordination services.
We’re the top provider of solutions that deliver unmatched efficiency and value to real estate agents in the following states:
- Washington
- Oregon
- California
- Florida
- Georgia
- Virginia
- Maryland
Here are some compelling reasons to choose AgentUp:
- Full-Service Transactions: We handle every step of the transaction for a completely stress-free experience
- Knowledgeable Team: Our coordinators complete an intensive 40-hour U.S. real estate training, bringing you the market insights and dependable assistance you need to succeed
- High Value, Low Cost: We believe in making quality accessible, providing top-tier service at a price that works for you
- Secure Platform: Our safe, customized technology ensures smooth closings and easy-to-manage documents every time
AgentUp’s services are affordable with budget-friendly rates:
- Transaction Coordination – from $399 per file
- Listing Coordination – from $249 per listing
Our skilled and experienced team ensures your closings are precise and error-free, empowering you to succeed.
But AgentUp offers more than just excellent transaction coordination. We also provide a comprehensive suite of real estate marketing solutions to help you expand your business.
Digital Real Estate Marketing With AgentUp
AgentUp offers real estate professionals unmatched value with our cutting-edge marketing solutions.
With over ten years of experience in marketing, communications, and digital skills, our team creates custom tools that attract clients and give properties a distinctive appeal.
Our marketing tools help agents stand out by blending bold design with strategic expertise, including:
- Virtual tours
- Property websites
- Home flyers
- House portraits
- AI real estate photo editing
- And virtual staging
Our experienced and skilled team guarantees your closings are accurate and error-free, and our marketing solutions produce results that help you succeed.
Take the first step on the path to success and increased sales.
Call and speak with an AgentUp TC at (888) 982-4368 or schedule a complimentary TC consultation.
Also, sign up for a free AgentUp account today and explore all that we offer — it’s free and takes less than a minute.
We hope this blog post explained the legal aspects of real estate transaction coordination and what a TC can and cannot do. Before you go, check out these additional related posts:
- Why Solo Agents Need a TC Coordinator More Than They Think
- From Chaos to Clarity: How a Transaction Coordinator Streamlines Real Estate Deals
- 5 Red Flags to Watch for When Hiring a Transaction Coordinator
- How to Scale Your Real Estate Business With a Transaction Coordinator
- How TCs Collaborate With Escrow, Lenders, and Attorneys to Simplify Closings
