Traditionally it was common to refer to your Realtor as your "agent", without even thinking about it. In the mid 1990's a new form of representation emerged known as a "transaction broker". Several states, including New Mexico, now widely use "transaction broker" (TB) when engaging the services of a Realtor. You can find numerous articles online debating the pros and cons of these two different forms of representation. The reasoning behind using a TB is one of liability to the principal (buyers and sellers). Under "agency" the buyer/seller has empowered the Realtor to speak and in some instances sign for them. This is a significant amount of authority...[your attorney doesn't even have this power unless you give them "power of attorney"]. If a Realtor errs under "agency", the courts have assigned additional liability to the buyer/seller who gave such authority. Conversely, liability to the buyer/seller is limited when a realtor errs when acting as a TB.
Those against using a TB argue that the Realtor has foregone their "fiduciary" responsibilities and do not promote the interests of the individual they are working with. This is debatable due to the strict responsibilities imposed by our industry's Code of Ethics and the Broker's Duties imposed by State law. Regardless, you want to work with the most ethical and knowledgeable Realtor you can find.
