What does co-brokerage mean in real estate?

Co-brokerage in real estate refers to a collaboration between two brokerage firms in the process of selling property. This arrangement allows multiple brokerages to work together to market and sell a property, which can lead to a greater pool of potential buyers and expedite the sale process. In co-brokerage, one brokerage typically represents the seller (listing broker) while the other represents the buyer (selling broker), and they often split the commission earned from the transaction. This partnership can enhance the sales efforts by combining resources, expertise, and client networks, ultimately benefiting all parties involved.

The other choices provided do not accurately define co-brokerage. An agreement between buyer and seller to trade properties pertains more to a general transaction agreement rather than the cooperative efforts of brokerages. A contract between the broker and the property owner is indicative of a listing agreement, which is not the essence of co-brokerage itself. Lastly, a method of collecting rental income pertains to property management practices and does not involve the collaborative selling aspect that defines co-brokerage.