FLORIDA AGENCY EXPLAINED

(Florida Statutes)

There are 3 types of brokerage relationships a buyer can have in the state of Florida

  • Single Agent - represents one party in a transaction
  • Transaction Brokerage - provides a limited form of representation
  • No Brokerage Relationship - no brokerage relationship with either or both parties

The State of Florida defaults to: Presumption of transaction brokerage.—It shall be presumed that all licensees are operating as transaction brokers unless a single agent or no brokerage relationship is established, in writing, with a customer.

Dual Agency - A real estate licensee may not operate as a disclosed or non-disclosed dual agent. The term “dual agent” means a broker who represents as a fiduciary both the prospective buyer and the prospective seller in a real estate transaction. A realtor can facilitate a transaction with both buyer and seller as a transaction broker as they are committed to the transaction rather than the buyer or seller.

SINGLE AGENT RELATIONSHIP

Single agent; duties.—The duties of a real estate licensee owed to a buyer or seller who engages the real estate licensee as a single agent include the following:

(a) Dealing honestly and fairly;
(b) Loyalty;
(c) Confidentiality;
(d) Obedience;
(e) Full disclosure;
(f)  Accounting for all funds;
(g) Using skill, care, and diligence in the transaction;
(h) Presenting all offers and counteroffers in a timely manner, unless a party has previously directed the licensee otherwise in writing; and
(i) Disclosing all known facts that materially affect the value of residential real property and are not readily observable.

TRANSACTION BROKER RELATIONSHIP

A transaction broker provides a limited form of representation to a buyer, a seller, or both in a real estate transaction but does not represent either in a fiduciary capacity or as a single agent. The duties of the real estate licensee in this limited form of representation include the following:

(a) Dealing honestly and fairly;
(b) Accounting for all funds;
(c) Using skill, care, and diligence in the transaction;
(d) Disclosing all known facts that materially affect the value of residential real property and are not readily observable to the buyer;
(e) Presenting all offers and counteroffers in a timely manner, unless a party has previously directed the licensee otherwise in writing;
(f) Limited confidentiality, unless waived in writing by a party. This limited confidentiality will prevent disclosure that the seller will accept a price less than the asking or listed price, that the buyer will pay a price greater than the price submitted in a written offer, of the motivation of any party for selling or buying property, that a seller or buyer will agree to financing terms other than those offered, or of any other information requested by a party to remain confidential; and
(g) Any additional duties that are mutually agreed to with a party.

The differences are in bold - Single Agent is a higher level of service for buyers and sellers. Many large brokerages are not able to offer Single Agency or would have to transition to a transaction brokerage if another realtor/agent in their brokerage was representing the other party.

Example:

Listing broker has a transaction brokerage relationship with seller. Buyer has a single agent relationship with their brokerage. Listing realtor tells the buyers realtor "Seller is really motivated to sell and will accept $500,000 but don't tell your buyer just yet. See if your buyer will counter to $525,000 first." As a single agent, your duty is full disclosure to your buyer and you can disclose what the listing realtor has told you. You are a single agent and your loyalty is with your buyer, period.