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A Transaction Broker doesn’t have any clients …

By
Real Estate Agent

... but they may have lots of customers.  In FL, the distinction is important.  Transaction brokers provide limited representation to a buyer, a seller, or both in a single transaction, but it is NOT a fiduciary relationship and buyers/sellers are called customer, not client or principal. The state guidelines help clarify the role so that the agent doesn't unwittingly create an implied agency, resulting in a serious violation of license law known as undisclosed dual agency, which is illegal in FL.

woman sitting at deskTransaction Broker is the most common form of brokerage relationship in FL and is assumed unless the agent has established a different agreement in writing with their buyer/seller.  The Transaction Broker facilitates the transaction without representing one party to the detriment to the other. Once a firm's broker (or any agent in the firm) establishes a Transaction Broker or Single Agent relationship with a seller/buyer, all agents in the firm are required to have the same relationship with that seller/buyer.

Regardless of the relationship and even if there is no brokerage relationship, a broker/agent must

  • Deal Honestly and Fairly,
  • Disclose all known facts that affect value of residential property,
  • Account for all funds.

In addition, the Transaction Broker owes the following duties to their customers:

  • Use skill, care, and diligence
  • Present all offers and counteroffers
  • Exercise limited confidentiality
  • Perform additional duties that are mutually agreed to

The advantages to the customer in a Transaction Broker relationship are:

  • All agents in the firm may show property listed by the real estate firm to their buyers. If the property is listed as a single agent, none of the firm's agents can show that property.
  • Reduced liability for the customer - they are not responsible for anything that may be incorrect or misleading that any agent in the firm may say about that property

The Transaction Broker relationship seems to work well in FL and allows the broker/agent to provide impartial assistance and good service to both parties to a transaction.

Comments (2)

Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

In Virginia this isn't a common occurance...yet.  I just signed an agreement with a seller (FSBO) and their tenant to handle the paperwork for them but each signed documents that I am not representing either party.  Could be a new niche in my area.

Feb 28, 2011 12:11 AM
Charita Cadenhead
eXp Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)

Transactions brokers are most common here when working with investors.  Otherwise agents usually want a committment from the buyer or seller.  The only other case where it would be acceptable is when working with FSBOs like Cindy.

Mar 04, 2011 11:22 PM