Who Does Your Real Estate Agent Represent?

Understanding Agency Relationships in Florida Real Estate

When you're buying or selling real estate, you probably spend a lot of time thinking about price, inspections, financing, repairs, and closing.

But there's another question worth asking very early:

What is my relationship with the real estate professional I'm working with?

Florida law recognizes different brokerage relationships, and they don't all provide the same level of representation.

Under Florida law, a real estate licensee may work as a Single Agent or Transaction Broker, or may work with someone under No Brokerage Relationship. Florida does not permit a licensee to act as a dual agent—meaning the broker cannot simultaneously represent both buyer and seller as a fiduciary in the same transaction.

Single Agent

This is the traditional agency relationship many people picture when they hear the words my agent.

A Single Agent represents either the buyer or the seller as a fiduciary—not both.

Florida law imposes duties including loyalty, confidentiality, obedience, full disclosure, accounting for funds, skill, care and diligence, timely presentation of offers and counteroffers, and disclosure of certain known material facts affecting residential property.

That word loyalty matters.

If I'm representing you as a Single Agent, I'm representing your side of the transaction.

Transaction Broker

This is where Florida is a little different from what many consumers expect.

Florida law actually presumes that a licensee is operating as a Transaction Broker unless Single Agency or No Brokerage Relationship has been established in writing.

A Transaction Broker provides limited representation and does not represent either party as a fiduciary.

That doesn't mean there are no responsibilities.

Transaction Broker duties include dealing honestly and fairly, accounting for funds, using skill, care and diligence, timely presentation of offers and counteroffers, disclosure of certain known material facts, and limited confidentiality.

For example, without authorization, a Transaction Broker generally cannot disclose that a seller would take less than the asking price, that a buyer would pay more than the amount offered, or a party's motivation for buying or selling.

A Transaction Broker may provide limited representation to the buyer, seller, or both in the same transaction. That is different from dual agency because the Transaction Broker is not acting as a fiduciary to both parties.

No Brokerage Relationship

Sometimes a licensee assists someone without representing that person.

The duties are much narrower but aren't nonexistent. Florida law still requires the licensee to deal honestly and fairly, account for entrusted funds, and disclose certain known facts materially affecting the value of residential property that aren't readily observable to the buyer.

In other words, assistance isn't necessarily representation.

And that's an important distinction.

Can the relationship change?

Yes.

A Single Agent relationship can transition to Transaction Brokerage, but Florida law requires the principal's prior written consent to that change.

That is why those brokerage relationship forms shouldn't simply become another piece of paperwork you sign without reading.

They're telling you something important:

Who represents me? What duties does that person owe me? And what information can I expect to remain confidential?

Real estate transactions involve large amounts of money and some very personal decisions. Before discussing your bottom line, motivation for moving, negotiating strategy, or how badly you want a particular property, know what relationship exists with the person sitting across from you.

A good real estate professional shouldn't mind explaining it.

In fact, you should expect them to.

DISCLAIMER:  This post is for general educational purposes and is not legal advice. Brokerage relationships and disclosure requirements can depend upon the type of transaction.

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