Brokerage Relationships & Duties

The presumption

In Florida, every licensee is presumed to be operating as a transaction broker unless a single agent or no brokerage relationship is established in writing with a customer (§ 475.278, Fla. Stat.(1)(b)). Dual agency is prohibited: a licensee may not represent both buyer and seller as a single agent in the same transaction.

Transaction broker

A transaction broker provides limited representation to a buyer, a seller, or both, but is not a fiduciary. The statutory duties are:

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 directed otherwise in writing;
6. Limited confidentiality, unless waived in writing: the broker may not reveal that the seller will accept less than the asking price, that the buyer will pay more than the offered price, the motivation of any party, or that a party will agree to financing terms other than those offered, or any other information requested by a party to remain confidential; and
7. Any additional duties mutually agreed to with a buyer or seller.

Single agent

A single agent represents either the buyer or the seller, but not both, as a fiduciary. The nine single-agent duties are:

1. Dealing honestly and fairly;
2. Loyalty;
3. Confidentiality;
4. Obedience;
5. Full disclosure;
6. Accounting for all funds;
7. Skill, care and diligence;
8. Presenting all offers and counteroffers in a timely manner, unless directed otherwise in writing;
9. Disclosing all known facts that materially affect the value of residential real property and are not readily observable.

Single agent duties must be disclosed in writing before, or at the time of, entering into a listing or representation agreement, or before showing property, whichever occurs first (see the statute for the required form).

Changing from single agent to transaction broker

A licensee may change from single agent to transaction broker only with the principal's written consent before the change, using the statutory "Consent to Transition to Transaction Broker" disclosure (§ 475.278, Fla. Stat.(3)(b)2. and (3)(c)).

No brokerage relationship

A licensee with no brokerage relationship still owes duties: dealing honestly and fairly, disclosing known facts that materially affect the value of residential real property and are not readily observable, and accounting for all funds. Disclosure is required before showing property.