Practical broker authority guide
Know the broker's role before relying on the recommendation.
A broker may introduce, market, coordinate or negotiate within a defined relationship. Customers should not infer exclusive loyalty from friendly communication or assume that every commercial connection is obvious.
Quick answer
Ask who appointed the broker, which party the broker represents, who pays commission, whether the same office or person has another role and whether a developer, owner or referral arrangement affects the options presented.
Reviewed: 12 July 2026
Criteria to define before the conversation
A broker may introduce, market, coordinate or negotiate within a defined relationship. Customers should not infer exclusive loyalty from friendly communication or assume that every commercial connection is obvious.
- The appointing party and scope are identified
- Commission and referral interests are disclosed in writing
- The broker distinguishes coordination from independent advice
- Negotiation instructions and confidential information are controlled
Questions that test the expertise
Ask for specific answers that can be connected to your brief and later evidence.
- 1Who appointed you for this property or search?
- 2Whose instructions do you follow in negotiation?
- 3Who pays you and is another fee or referral involved?
- 4Which relationship could affect the shortlist?
Evidence to retain
Separate what you observed, what the broker stated and what a document or official source proves.
- Relevant brokerage agreement or written scope
- Named payer and commission trigger
- Documented disclosure of material commercial connections
- Separate independent advice where interests are not aligned
A practical decision process
Use the steps in order and pause commitment when a material gap appears.
- 1Ask the role question before detailed negotiation
- 2Read the agreement and fee terms
- 3Record conflicts and information boundaries
- 4Use an independent adviser for decisions outside brokerage scope
A disclosed commercial relationship is not automatically improper. The practical issue is whether the customer understands it and can evaluate the recommendation with that context.
Frequently asked questions
Can one brokerage be involved with both sides?
Different arrangements may exist. Ask for the exact roles, disclosures, consent and safeguards relevant to the transaction.
Does paying commission make the broker my adviser?
Not necessarily. The written role and applicable duties matter; payment alone should not be used to infer a wider advisory obligation.
Must a developer relationship be disclosed?
Ask directly about material commercial relationships and how the broker is compensated, then assess the recommendation with independent evidence.
Official sources and references
Procedures and fees can change. Confirm the latest position with the official source before a transaction.