What is it called when a broker is not compensated by the seller?

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When a broker is not compensated by the seller, it often involves specific terms in their agreement or the relationship between the broker and the client. The correct term for this scenario typically refers to a situation where the broker's compensation structure does not rely on a commission from the seller, but rather is based on alternative arrangements, which could be defined within the context of consulting or independent agreements.

In many cases, brokers may agree to work on a consulting basis, which is a professional relationship where they provide expertise and advice without earning a commission from property sales. This structure allows the broker to earn a fee for their services rather than a share of the transaction sales price, thus not receiving compensation directly from the seller.

The term "independent contractor" is relevant in real estate as many brokers operate as independent contractors and control how they structure their compensation, but it doesn’t specifically address the absence of compensation from the seller.

Ultimately, the scenario presented aligns best with a consulting arrangement where the broker provides specialized advice or services rather than actively representing the seller in a transaction for a commission.

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