What is a Transaction Broker in Florida Real Estate?

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.

A transaction broker is the default agency relationship status for Florida real estate agents in most transactions. 

If you are working with a buyer’s agent or listing agent in Florida, chances are that your agent is acting in the capacity of a ‘transaction broker’.

In lieu of being a transaction broker, a real estate licensee in Florida may act as either a ‘single agent’ or may elect ‘no brokerage relationship’ status. Dual agency is not permitted in the state of Florida.

If you don’t sign anything that references ‘single agent’ or ‘no brokerage relationship’, then the presumed agency relationship is transaction brokerage.

Thinking of buying or selling in Florida? Learn how to save with Hauseit.

What are the duties of a transaction broker in Florida?

A Florida real estate agent who acts as transaction broker has the following duties:

(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.

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.

A transaction broker does not have the duties of loyalty, obedience and full disclosure as is the case with a single agent.

What is a single agent agency relationship status in Florida?

A single agent is a Florida real estate agent who represents either the buyer or the seller in a transaction, but not both.

A Florida real estate agent who acts in the capacity of a single agent has the following duties to buyer or seller:

  1. Dealing honestly and fairly

  2. Loyalty

  3. Confidentiality

  4. Obedience

  5. Full disclosure

  6. Accounting for all funds

  7. Skill, care, and diligence in the transaction

  8. Presenting all offers and counteroffers in a timely manner, unless a party has previously directed the licensee otherwise in writing; and

  9. Disclosing all known facts that materially affect the value of residential real property and are not readily observable.

Florida Statute 475.278 requires an agent to fully describe and disclose the duties of a single agent in writing to a prospective buyer or seller prior to initiating the relationship, as outlined below:

475.278 Authorized brokerage relationships; presumption of transaction brokerage; required disclosures.

3) SINGLE AGENT RELATIONSHIP.
(b) Disclosure requirements.

1. Single agent disclosure. Duties of a single agent must be fully described and disclosed in writing to a buyer or seller either as a separate and distinct disclosure document or included as part of another document such as a listing agreement or other agreement for representation.

The disclosure must be made before, or at the time of, entering into a listing agreement or an agreement for representation or before the showing of property, whichever occurs first. When incorporated into other documents, the required notice must be of the same size type, or larger, as other provisions of the document and must be conspicuous in its placement so as to advise customers of the duties of a single agent, except that the first sentence of the information identified in paragraph (c) must be printed in uppercase and bold type.

This disclosure provision requires agents to include the following information in the following form:

SINGLE AGENT NOTICE

FLORIDA LAW REQUIRES THAT REAL ESTATE LICENSEES OPERATING AS SINGLE AGENTS DISCLOSE TO BUYERS AND SELLERS THEIR DUTIES.

As a single agent,   (insert name of Real Estate Entity and its Associates)   owe to you the following duties:

  1. Dealing honestly and fairly;

  2. Loyalty;

  3. Confidentiality;

  4. Obedience;

  5. Full disclosure;

  6. Accounting for all funds;

  7. Skill, care, and diligence in the transaction;

  8. Presenting all offers and counteroffers in a timely manner, unless a party has previously directed the licensee otherwise in writing; and

  9. Disclosing all known facts that materially affect the value of residential real property and are not readily observable.

Date

Signature

An agent may change from a single agent relationship to a transaction brokerage relationship during the course of a transaction with prior written consent of the buyer or seller.

A Full Service Listing for 1%

Sell your home with a traditional full service listing for just one percent commission.

What disclosures are required for a listing agent acting as a single agent in FL?

If a listing agent is acting in the capacity of a single agent, the agent must disclose the duties of a single agent in writing to the seller prior to initiating the relationship. This disclosure is typically included within the listing agreement.

If a direct (unrepresented) buyer requests to view the property, the listing agent has two options for satisfying Florida agency  law:

  1. Present the unrepresented buyer with a NO BROKERAGE RELATIONSHIP NOTICE to sign.

  2. Transition to a transaction broker by receiving written CONSENT TO TRANSITION TO TRANSACTION BROKER

What is a no brokerage relationship agency status in Florida?

A Florida real estate agent who elects no brokerage relationship status still has a limited set of duties to a potential buyer or seller. These include:

  1. Dealing honestly and fairly;

  2. Disclosing all known facts that materially affect the value of the residential real property which are not readily observable to the buyer; and

  3. Accounting for all funds entrusted to the licensee.

Per Florida law, these duties must be fully described and disclosed in writing to the buyer or seller before the showing of the property.

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.

Additionally, “When incorporated into other documents, the required notice must be of the same size type, or larger, as other provisions of the document and must be conspicuous in its placement so as to advise customers of the duties of a licensee that has no brokerage relationship with a buyer or seller, except that the first sentence of the information identified in paragraph (c) must be printed in uppercase bold type.”

This disclosure provision requires agents to include the following information in the following form:

NO BROKERAGE RELATIONSHIP NOTICE

FLORIDA LAW REQUIRES THAT REAL ESTATE LICENSEES WHO HAVE NO BROKERAGE RELATIONSHIP WITH A POTENTIAL SELLER OR BUYER DISCLOSE THEIR DUTIES TO SELLERS AND BUYERS.

As a real estate licensee who has no brokerage relationship with you,   (insert name of Real Estate Entity and its Associates)   owe to you the following duties:

1. Dealing honestly and fairly;

2. Disclosing all known facts that materially affect the value of residential real property which are not readily observable to the buyer.

3. Accounting for all funds entrusted to the licensee.

  (Date)         (Signature)

What is the difference between single agent and transaction broker Florida?

A single agent is a stronger form of agency relationship compared to a transaction broker. A transaction broker is a much more limited form of representation to a buyer, a seller, or both in a real estate transaction.

A transaction broker does not represent either party in a fiduciary capacity.

Compared to a transaction broker, a single agent has the following additional duties: loyalty, confidentiality, obedience and full disclosure.

Under Florida law it is presumed that all licensees are operating as transaction brokers unless a single agent or no brokerage relationship is established, in writing, with a customer.

The limited representation nature of a transaction broker means that a buyer or seller is not responsible for the acts of the licensee. Additionally, parties are giving up their rights to the undivided loyalty of the licensee. 

This aspect of limited representation allows a licensee to facilitate a real estate transaction by assisting both the buyer and the seller, but a licensee will not work to represent one party to the detriment of the other party when acting as a transaction broker to both parties.

A single agent relationship may be switched to a transaction brokerage relationship with prior written consent of the buyer or seller.

How can a broker switch from a single agent to a transaction broker in Florida?

A single agent relationship may be switched to a transaction brokerage relationship at any time provided the agent first obtains the buyer or seller’s written consent to the change in relationship.

The rules for switching from a single agent to a transaction broker are outlined in Florida Statute 475.278 (3)(b)(2):

2. Transition to transaction broker disclosure.

A single agent relationship may be changed to a transaction broker relationship at any time during the relationship between an agent and principal, provided the agent first obtains the principal’s written consent to the change in relationship. This disclosure must be in writing to the principal either as a separate and distinct document or included as part of other documents such as a listing agreement or other agreements for representation. When incorporated into other documents, the required notice must be of the same size type, or larger, as other provisions of the document and must be conspicuous in its placement so as to advise customers of the duties of limited representation, except that the first sentence of the information identified in subparagraph (c)2. must be printed in uppercase and bold type.

This disclosure provision requires agents to include the following information in the following form:

CONSENT TO TRANSITION TO
TRANSACTION BROKER

FLORIDA LAW ALLOWS REAL ESTATE LICENSEES WHO REPRESENT A BUYER OR SELLER AS A SINGLE AGENT TO CHANGE FROM A SINGLE AGENT RELATIONSHIP TO A TRANSACTION BROKERAGE RELATIONSHIP IN ORDER FOR THE LICENSEE TO ASSIST BOTH PARTIES IN A REAL ESTATE TRANSACTION BY PROVIDING A LIMITED FORM OF REPRESENTATION TO BOTH THE BUYER AND THE SELLER. THIS CHANGE IN RELATIONSHIP CANNOT OCCUR WITHOUT YOUR PRIOR WRITTEN CONSENT.

As a transaction broker,   (insert name of Real Estate Firm and its Associates)  , provides to you a limited form of representation that includes the following duties:

1. Dealing honestly and fairly;

2. Accounting for all funds;

3. Using skill, care, and diligence in the transaction;

4. Disclosing all known facts that materially affect the value of residential real property and are not readily observable to the buyer;

5. Presenting all offers and counteroffers in a timely manner, unless a party has previously directed the licensee otherwise in writing;

6. 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

7. Any additional duties that are entered into by this or by separate written agreement.

Limited representation means that a buyer or seller is not responsible for the acts of the licensee. Additionally, parties are giving up their rights to the undivided loyalty of the licensee. This aspect of limited representation allows a licensee to facilitate a real estate transaction by assisting both the buyer and the seller, but a licensee will not work to represent one party to the detriment of the other party when acting as a transaction broker to both parties.

I agree that my agent may assume the role and duties of a transaction broker. [must be initialed or signed]

A Full Service Listing for 1%

Sell your home with a traditional full service listing for just one percent commission.

Disclosure: Hauseit® and its affiliates do not provide tax, legal, financial or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, financial or accounting advice. No representation, guarantee or warranty of any kind is made regarding the completeness or accuracy of information provided.

Leave a Comment

Your email address will not be published.

Scroll to Top