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When a broker-dealer acts as a principal in a securities transaction, it means they are trading securities for their own account, rather than on behalf of a client. This principle implies a different set of responsibilities and risk exposure. Investors engaging in transactions related to the Arizona Agreement with Developer to Sell Membership in Cooperative along with Dwelling Unit Allocated to Membership should be mindful of the role the broker-dealer plays.
The term brokerage relationship refers to the legal connection between a broker and a client during a real estate transaction. A brokerage relationship establishes the responsibilities, rights, and obligations of both parties. Understanding these terms is key, especially when considering specific agreements like an Arizona Agreement with Developer to Sell Membership in Cooperative along with Dwelling Unit Allocated to Membership.