What is a Transaction Broker in Florida?

The purpose of this blog is to show you what is meant by the term, "Transaction Broker" as defined by Florida Statute 475.278 (2)

Transactional Brokerage creates a limited form of representation (see below), while Single Agency brings establishes a much tighter fiduciary relationship. If you want no representation, there is Non-Representation and its own disclosure.

In my experience, Transactional Brokerage is the cleanest way to work -- without the typical animosities, mistrust, liability, and misunderstandings created by single agency and its easy potential slide into undisclosed, illegal dual agency.

Initially, of course, you have NO business relationship with a Realtor, so one must be immediately established by explanation and possibly disclosure. There are certain exceptions to this rule, such as casual conversations at open houses or in social settings.

It becomes your duty to ask, "How do you work?" Because it's really another way of asking, "Who do you work for?"

As of July 1, 2008, Florida Realtors operating as Transaction Brokers no longer had to present a Transaction Broker Disclosure to clients, customers, or prospects. Transaction Brokerage is now the default relationship between Realtors and buyers or sellers.

The two other types of relationships -- Single Agency and Non-Representation -- still require written disclosure, which must be presented 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.

(Note: Choosing Transaction Brokerage has no effect on compensation or the source of real estate commissions.)

TRANSACTION BROKER RELATIONSHIP.

(a)  Transaction broker-duties of limited representation.--A transaction broker provides a limited form of representation to a buyer, a seller, or both in a real estate transaction but does not represent either in a fiduciary capacity or as a single agent. The duties of the real estate licensee in this limited form of representation include the following: 
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 mutually agreed to with a party.