What are the differences between an agent and a broker?
An agent and a broker are both professionals who help people buy and sell goods and services. However, there are several differences between the two. In California, an agent is a person who acts on behalf of a principal, such as an investor or a company, and is legally responsible for the decisions made on behalf of the principle. Agents typically represent one party in a transaction and their duties include providing advice, negotiating contracts, and buying or selling products. Agents may also be responsible for providing services such as advertising and market research. A broker, on the other hand, is an individual who operates independently of any investor or company. Brokers handle the sale and purchase of goods and services, but they do not have the same legal responsibilities as agents. Brokers are considered facilitators rather than decision makers. They help buyers and sellers find the best deal available and offer guidance and advice through the entire transaction. Overall, agents are held to a higher standard of legal responsibility, provide services beyond just the transaction itself, and are typically working for one party. Brokers, however, act as facilitators for the sale and purchase of goods and services and are more cost-effective than agents.
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