Brokerage is the act of bringing together principals (buyer-seller, landlord-tenant, etc.) for a fee. A brokerage can also involve principals in non-real estate contexts, like bringing together the buyer and seller of stocks, for example.
In real estate, brokerage refers to the professional activity of facilitating transactions by bringing together principals (such as buyers and sellers or landlords and tenants) in exchange for compensation (typically a commission or fee). This role is carried out by licensed real estate brokers and their agents, who act as intermediaries by marketing properties, identifying and qualifying prospective clients, negotiating terms, and guiding parties through the contractual and closing processes. Brokerage services are governed by state licensing laws and fiduciary duties, which may include obligations of loyalty, disclosure, confidentiality, and reasonable care, depending on the type of agency relationship established. The broker does not usually take ownership of the property but instead adds value by providing market expertise, access to listings, and transactional oversight to help ensure a lawful and efficient exchange.
