• Agent: A licensed person who represents participants in real estate transactions.
  
• Appraisal: An estimate of the market value of a property, made by a qualified professional.
  
• Broker: A state licensed real estate professional who represents one or more parties in a real estate transaction. A broker helps clients to determine market values, lists properties for sale, advertises properties for sale, shows properties to prospective buyers, prepares offers and counter offers, negotiates on behalf of their clients, and ensures that their client(s) comply will all applicable laws governing the transfer of property. A broker may employ other brokers or agents.
  
• Commission: Payment to a broker, usually from the seller, for finding a buyer and facilitating the sale. The commission is usually based on a percentage of the sale price.
  
• Listing Agreement: An agreement between a real estate broker (agent) and a property owner employing the agent to find a buyer for the property.
  
• MLS: Abbreviation for Multiple Listing Service---a computer database of properties for sale, maintained by a local real estate board. The MLS is composed of property descriptions submitted by member brokerages.
  

A client is a party to a real estate transaction with whom the broker has a brokerage relationship because such party has engaged or employed the broker as either an agent or a transaction-broker.

A customer is a party to a real estate transaction with whom the broker has no brokerage relationship because such party has not engaged or employed the broker as either an agent or a transaction-broker.

A transaction broker assists the buyer or seller or both throughout a real estate transaction with communication, advice, negotiation, contracting and closing without being an agent or advocate for any of the parties. A transaction-broker must use reasonable skill and care in the performance of any oral or written agreement, and must make the same disclosures as agents about adverse material facts concerning a property or a buyer's financial ability to perform the term of a transaction and whether the buyer intends to occupy the property. No written agreement is required.

A seller's agent works solely on behalf of the seller and owes duties to the seller which include the utmost good faith, loyalty and fidelity. The agent will negotiate on behalf of and act as an advocate for the seller. The agent must disclose to potential buyers or tenants all adverse material facts about the property actually known by the broker. A separate written listing agreement is required which sets forth the duties and obligations of the parties.