Who Do You Represent?

Transaction broker

Transaction brokerage is Florida's presumed relationship unless a single-agent or no-brokerage relationship is established in writing.

A transaction broker provides limited representation. The licensee may assist the buyer, seller, or both, but does not represent either person in a fiduciary capacity.

• Deal honestly and fairly.
• Account for all funds.
• Use skill, care, and diligence.
• Disclose known facts that materially affect residential property value and are not readily observable.
• Present offers and counteroffers promptly unless instructed otherwise in writing.
• Provide limited confidentiality.

Single agent

A single agent represents either the buyer or the seller with full fiduciary duties. The agent owes loyalty, confidentiality, obedience, full disclosure, accounting, and skill, care, and diligence.

The disclosure must generally be made before or when entering the representation agreement, or before showing property—whichever happens first.

• C — Confidentiality
• O — Obedience
• L — Loyalty
• D — Disclosure
• A — Accounting
• C — Care

No brokerage relationship

Here, the licensee does not represent the customer. However, the licensee must still deal honestly and fairly, disclose hidden material facts affecting residential property value, and account for entrusted funds.

The required written disclosure must generally be given before showing the property.

The dual-agency trap

Florida prohibits both disclosed and undisclosed dual agency. A licensee cannot be a fiduciary for both buyer and seller in the same transaction.

A single agent may transition to transaction broker only after obtaining the principal's prior written consent.

Worked scenario

Sean lists Marcia's house as her single agent. A buyer represented by the same brokerage submits an offer, and Sean wants to assist both parties as a transaction broker.

Sean cannot simply change relationships. He must explain the transition and obtain Marcia's prior written consent. The consent confirms that she accepts limited representation and gives up undivided loyalty.