I know--what is agency, and why do you need to know. Here in Florida, and in my area--Jacksonville Florida agency reflects what you can expect from your agent. There are three types, and you should know the difference as they will effect (possibly) your purchase.
- In the State of Florida it is presumed that all agents are operating as transaction brokers. You, as a buyer, can safely assume this unless the agent gives you the option of single agent or no brokerage. To take either of those options there is a form, and it must be in writing.
- Transaction Broker Relationship. This is a type of limited representation to buyer, seller, or both. Neither party is in a fiduciary relationship (your agent cannot make a decision for you). The following is the responsibilities:
- Dealing honestly and fairly-- the agent must be both honest and fair to both buyer and seller.
- Accounting for all funds -- keep track of all monies received, billed, etc.
- Using skill, care, and diligence within the transaction-- your agent needs to make sure they are acting appropriately and as required by Florida law.
- Disclosing all known facts that materially affect the value of the property and are not readily observable to the buyer--if we see what can be a roof issue that you may not notice, we need to mention it. Bottom line.
- Presenting all offers/counter offers in a timely manner, unless a party has previously directed the agent otherwise, in writing--timely manner is generally 24-48 hours, depending on your agent. Ask them to get a better idea.
- Limited confidentiality. This limited confidentiality means that I will not tell you what the seller MAY take if I represent you both, but rather will encourage you to offer what you feel is the best offer possible. Same the reverse, your agent should not tell the seller that you can afford more/less but rather discuss the offer and how it benefits them. In the middle--limited confidentiality.
- Any additional duties that are mutually agreed upon.
- Single Agent Relationship. This is a fiduciary relationship defined as below:
- Dealing honestly and fairly. (see above)
- Loyalty. This person is for your interests only. As such you can expect them to work for you directly.
- Confidentiality. This agent is your agent and does not represent the other side at all. You have a high confidentiality rating.
- Obedience. The single agent will be doing exactly what you direct them to do. Obedience is exactly that--carrying out your wishes.
- Full disclosure. You will know everything, and this agent has a responsibility to make sure that they disclose all facts in full.
- Accounting for all funds. This is a fiduciary relationship.
- Skill, care, and diligence. (see above)
- Presenting all offers, counteroffers in a timely manner unless directed in writing to do otherwise.
- Disclosing all known facts materially affecting the value of the property and that is not readily observable.
- NO brokerage relationship.
- This is an agent that has no relationship to you but will act as your agent for the transaction.
- Dealing honestly and fairly
- Accounting for all funds entrusted to the agent
- Disclosing all known facts materially affecting the value of the property and that is not readily observable.
As a transaction broker I have the responsibility to make sure both sides have limited confidentiality. In Florida the brokerage relationship needs to be disclosed before entering into any type of transaction. If the type of agency is not brought up then it can be assumed that the form by that agent is transaction!
It is my greatest hope that as you begin your search for a new, or next home that this information will provide greater insight and education. And, if confusing please call or email. I am happy to chat about real estate all day, and would welcome the opportunity!
Good night, and God bless----
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