Transaction Broker Relationships

Under Florida law, it is presumed that all licensees are operating as transaction brokers unless a single agent or no brokerage relationship is established, in writing, with the customer.

− A transaction broker is a broker who provides limited representation to a buyer, a seller or both in a real estate transaction, but who does not represent either party in a fiduciary capacity or as a single agent.

In a transaction broker relationship, the seller or the buyer is called a customer, not a principal. The (customer) is not responsible for the acts of a licensee.  Transaction brokers may represent both buyer and seller in a real estate transaction.

Chapter 475 defines Customer to mean a member of the public who is or may be a buyer or a seller of real property and may or may not be represented by a real estate licensee.

There are seven duties of the transaction broker;
1) Deal honestly and fairly
− Licensee owes a duty of good faith and honesty to customers.  A broker’s customers are entitled to rely on any material statement related to a real estate transaction.

2) Account for all funds
− Money and valuables entrusted to a broker must be kept separate from the broker’s funds. 
− The broker is not entitled to any trust or escrow funds until the transaction has closed.
− Brokers are required to keep complete records of all transactions and funds as well as to make all records available to the DBPR.

3) Use Skill, care, and diligence in the transaction.
− The broker must keep informed of current zoning and other developments that may affect the value of the property.
− Must use diligence (constant and earnest effort) in facilitating the transaction.

4) Disclose all known facts that materially affect the value of residential property and are not readily observable to the buyer.
− For Example; Cracks in the tile floor  under the carpet caused from the foundation settling.
− The fact that an occupant of real property is infected or has been infected with HIV, or that a property may have been the site of a homicide, suicide, or death is not a material fact in a real estate transaction. This is personal medical information and must not be A course of action will not arise against a property owner or real estate licensee for failure to disclose the events listed above.

5) Present all offers and counteroffers in a timely manner.
− Unless a party has previously directed the licensee otherwise in writing, the licensee must present all oral and written offers and counteroffers in a timely manner even if a valid contract exists.

6) Exercise limited confidentiality, unless waived in writing by a party.
 (Disclosing the following violates the duty of Limited Confidentiality)
− 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.
− The motivation of any party for selling or buying.
− That a seller or buyer will agree to financing terms other than those offered.
− Any other information requested to remain confidential.

7) Perform any additional duties that are mutually agreed to with a party.
− A Real Estate license must be careful not to accept duties beyond the scope of limited representation.  To do so might create an unintended fiduciary relationship with a customer.

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For infomation on Rowlett Real Estate School and our classes in Panama City, Fort Walton, Pensacola and Destin, visit our website at www.rowlettrealestateschool.com .  Or give Captain Wayne a call at 850-547-1333

Rowlett Real Estate School is a full service Florida Real Estate School offering classroom training in Panama Ctiy Beach Florida and Destin Florida, Fort Walton Beach and Pensacola.  We offer a full line up of courses online and in classroom for all your Sales Associate and Broker real estate license requirements.