← Glossary
Agents and brokerages
E&O insurance
Insurance that covers agents if a client sues over a mistake. Most brokerages require it and charge it per deal or per year. Some states require it.
Also called: errors and omissions, errors and omissions insurance, E and O
Related terms
Transaction fee
A flat fee per closed deal, charged to the agent or the client depending on the brokerage. It's separate from the split.
Managing broker
The broker legally responsible for a brokerage or office. They oversee agents, review files and hold escrow funds. The title varies by state.
Fiduciary duty
The legal duty an agent owes their client: loyalty, obedience, disclosure, confidentiality, accounting and reasonable care.