Legal Definitions - broker-agent

A broker-agent refers to an individual or entity that is authorized to act in a dual capacity: both as an agent representing specific companies or principals, and as an independent broker facilitating transactions between clients and various providers. In this role, the broker-agent can offer products or services from the companies they represent directly, while also having the flexibility to search the broader market to find the best options for their clients. This dual function is particularly common in industries like insurance and financial services.

• Example 1 (Insurance): Sarah is an insurance professional. She is licensed to sell specific health insurance plans directly from "HealthSure Inc.," acting as an agent for that particular company. However, she also has agreements with several other insurance carriers, allowing her to compare plans from "SecureLife Co." and "Global Health Solutions" to find the best fit and price for a client, Mr. Chen, who needs comprehensive family coverage. In this scenario, Sarah is acting as a broker for Mr. Chen, searching the market on his behalf. Because she fulfills both roles, Sarah operates as a broker-agent.

• Example 2 (Financial Services): David is a financial advisor who helps clients manage their investments. He is an authorized representative for "Growth Investments LLC," a firm that offers its own proprietary mutual funds and wealth management services, meaning he acts as an agent for Growth Investments LLC when recommending their products. At the same time, David also advises clients on purchasing stocks, bonds, and other investment vehicles from a wide range of different financial institutions and exchanges, always seeking the most advantageous options for his clients' portfolios. In this capacity, he acts as a broker for his clients. David's ability to serve both a specific firm and independent clients makes him a broker-agent.

• Example 3 (Commercial Real Estate Leasing): Maria specializes in commercial property leasing. She is exclusively contracted by "Downtown Office Towers Inc." to find tenants for their new high-rise building, effectively acting as an agent for Downtown Office Towers Inc. Simultaneously, she also represents various businesses looking for office space across the city, searching for suitable properties from multiple landlords and developers, and negotiating lease terms on behalf of her client businesses. Her ability to serve both a specific landlord and independent tenants makes her a broker-agent in the commercial leasing market.