Broker Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Broker, written in plain English, along with examples of how it is used.

What is Broker?

(n) Broker is the person who arrange the parties to a contract interested in offering or accepting a property, article, service etc for a commission on the transfer value as his charges . Eg. Real estate brokers arranges parties interested in selling the property or parties interested in buying it.

History and Meaning of Broker

The term broker has been in use for centuries, originally derived from the Old French word "broceur", meaning small trader or dealer. A broker is someone who acts as a middleman between two parties, facilitating a transaction or negotiation for a fee or commission. Brokers can be found in various industries including real estate, stock market trading, insurance, and commodities trading. The role of a broker is to ensure both parties are satisfied with the outcome of the transaction while earning a profit for their services.

Examples of Broker

  1. Real Estate Broker - A person who arranges the buying and selling of properties between two parties.

  2. Stock Broker - Individuals who work for brokerage firms and execute trades for clients in return for a fee or commission.

  3. Insurance Broker - A person who acts as an intermediary between the insured and the insurance companies, providing advice on the best insurance policies for their clients and negotiating favorable terms on their behalf.

Legal Terms Similar to Broker

  1. Agent - An individual or entity authorized to act on behalf of another.

  2. Intermediary - A person or institution that acts as a mediator between two parties.

  3. Facilitator - A third party who assists in the negotiation or transaction between two parties.