All Florida Realtors must disclose to buyers and sellers the type of business relationship they intend to establish. 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.
Clients and customers must agree to the proposed type, and their signatures on a disclosure form indicate that the nature of such a proposed relationship has been explained to them. The two principal choices are Transaction Broker, which is presumed for all Realtors, and Single Agent (buyer's agent or seller's agent). If you want no representation, there is a Non-Representational disclosure
Initially, of course, you have NO business relationship with a Realtor, so one must be immediately established by explanation and disclosure. There are certain exceptions to this rule, such as casual conversations at open houses or in social settings. Although producing a disclosure form up front is required by law, some Realtors let it slip their minds. It then becomes your duty to ask, "How do you work?" Because it's really another way of asking, "Who do you work for?"
The purpose of this page is to show you what is meant by the term, "Transaction Broker" as defined by Florida statutes. It is not meant to put visitors on notice or to replace a formal disclosure that will be presented and discussed at an initial meeting.
In my experience, this is the cleanest way to work -- without the typical animosities, mistrust, and misunderstandings created by single agency and its easy slide into undisclosed, illegal dual agency.
Note: Choosing Transaction Brokerage has no effect on compensation or the source of real estate commissions.
TRANSACTION BROKER NOTICE
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.
