Broker of record

Definition

The licensed broker legally responsible for an office and its agents.

Why It Matters

Most states license business and real-estate brokers individually and require an office to operate under one designated licensee. That reaches a buyer in two places. Under a franchise or office-network brand, the person answering your inquiry may be an agent whose accountability runs to a local principal rather than to the national name on the sign, so it is worth asking who that principal is. And in any argument about disclosure or commission, that is the party a state regulator will name.

In numbers: A $3M sale handled by an agent still settles a 10% commission dispute with the office's designated licensee rather than with the national brand.